Document:

Exhibit
10.4

December 4, 2006

Mr. Steve Roe

Akron Riverview Corn Processors, LLC

4808 F Avenue

Marcus, Iowa  51035

RE:         Proposal
for Environmental Permitting Support

Akron, IA Ethanol Plant

Dear Steve:

Air Resource
Specialists, Inc. (ARS) is pleased to provide the enclosed proposal and cost
estimate for consideration by Akron Riverview Corn Processors, LLC
(Akron).  ARS understands that Akron is
interested in constructing a grain-to-ethanol plant (approximately 110 MM gal/yr
capacity) at a site in Akron, IA.  ARS is
providing this proposal for consulting services to obtain the necessary storm
water and wastewater discharge permits for the project.  ARS is well qualified to assist Akron and ARS
staff are knowledgeable about ethanol production processes, the resultant
effluent streams, and the applicable environmental control regulations.

Coverage under the
storm water permit for construction activities needs to be obtained prior to
starting project construction and is usually one of the critical components for
facility development.  ARS’ proposal
addresses acquiring this permit as well as the storm water permit for
industrial activities, the Spill Prevention Control and Countermeasure (SPCC)
Plan, Facility Response Plan (FRP), and the wastewater discharge permit
required under the National Pollutant Discharge Elimination System (NPDES).

ARS recommends
initiating environmental permitting activities early in the project in order to
minimize any potential adverse impacts on the project development
schedule.  The proposed scope-of-work and
budget is provide below.

Scope-of-Work

Construction Storm Water Permit Application Activities

Typically at an
ethanol plant, two storm water permits are required; one covering construction
activities and another covering industrial (manufacturing) activities.  This particular proposal and cost estimate
covers applicable storm water permitting requirements for both activities.  The industrial storm water (ISW) permit is
covered later in the following section of this proposal.  The ISW permit is not required by Akron until
plant start-up.

Most states,
including Iowa, cover construction sites under a General Construction Storm
Water Discharge Permit.  Iowa refers to
their permit as the State of Iowa NPDES General Permit Number 2.  Data inputs for a storm water permit
application include site location, physical characteristics of the surrounding
area, and identification of the receiving waters.  A description of the site-specific sediment
and erosion control practices is also needed for inclusion in the required
Storm Water Pollution Prevention Plan (SWPPP).

ARS will work
closely with Akron and the selected design/construction firm to assemble the
required information for the permit application and SWPPP.  Storm water pollution prevention measures
typically used during ethanol plant construction have already been developed by
ARS for other projects. Since most plants employ similar storm water controls,
much of this existing information can be reused for Akron.

The following
summary is provided to cover activities associated with obtaining coverage
under the Iowa Construction Storm Water General Permit.

SW Task 1 – Review Site Information, Applicable Requirements,
and Controls

ARS will review
the facility plans and site information to initiate storm water planning
activities.  As necessary, ARS will
request from Akron any site-specific data necessary to fulfill IDNR
requirements.

ARS will provide
an assessment of construction storm water issues specific to the site, based on
requirements of the Iowa General Construction Storm Water Discharge
Permit.  ARS will work with Akron and the
design/construction firm to provide a comprehensive, yet cost-effective, storm
water runoff control plan.  The
assessment will include preparing storm water runoff coefficient estimates,
pollution prevention procedures, and recommending pollution prevention devices
that focus on reducing soil erosion and sedimentation.

SW Task 2 – Storm Water Pollution Prevention Plan Preparation

In order for Akron
to obtain coverage under a general storm water discharge permit, a site
specific Storm Water Pollution Prevention Plan (SWPPP) needs to be
written.  ARS will prepare a SWPPP that
incorporates information regarding the site and surrounding areas, such as
nearby waterways and construction/operating procedures for minimizing storm
water pollution potentials.

In addition to
SWPPP preparation, the general permit for construction storm water discharges
requires periodic inspection and monitoring during the plant construction phase.  ARS has not included storm water inspection
and monitoring activities in the current budget since they are most efficiently
completed by one-site or a local contractor.

 2
 

SW Task 3 – Notice of Intent (NOI)

To obtain coverage
under the application general permit for construction storm water discharges, a
Notice of Intent (NOI) must be completed on a set of standardized forms and
provided to Iowa Department of Natural Resources (IDNR).  In Iowa, a public notice must also be
submitted for publication in two newspapers of general circulation for the
project location.  ARS will assist in
drafting the public notice and arranging for its publication.  ARS will complete the NOI forms and attach
the required proofs of publication for the public notice.

The NOI will be
provided to Akron and the design/construction firm for review, and approval
prior to submittal to the appropriate regulatory authority.  Any permit fees required by the agency and to
publish the public notices are not part of the project budget and will be the
responsibility of Akron.

SW Task 4 – Agency Questions and Follow-Up

Sometimes,
questions may occur during review of a storm water permit application.  ARS will provide continuing support to Akron
during the review to ensure that the construction storm water permit is
processed in a timely fashion.  ARS has
included a small budget to cover these services.  However, the scope and nature of such
questions cannot always be predicted in advance.  If certain questions necessitate additional
technical studies or the agency determines that an individual storm water
permit is needed, the resulting work may require a change order to ARS’
contract.  ARS will notify Akron if these
circumstances arise and provide a revised project cost estimate.  However, our experience is that receipt of
significant agency questions regarding a construction storm water permit is not
likely.

Industrial Storm Water Permit Application Activities

A Storm Water
Pollution Prevention Plan (SWPPP) Associated with Industrial Activities must be
prepared in accordance with the IDNR Industrial Storm Water General
Permit.  The Industrial Storm Water
General Permit has been authorized by IDNR under the State of Iowa NPDES,
General Permit Number 1.  This permit is
required once construction activities are complete and Akron plans to start
operations at the plant.  ARS will
prepare the SWPPP and associated NOI on behalf of Akron.  ARS will provide Akron with a Draft NOI for
review and approval prior to the submission of the NOI.

The industrial discharge
SWPPP is designed to minimize potential storm water impacts from plant
operations.  ARS will work closely with
Akron to include feasible pollution prevention activities in the SWPPP that
maintain compliance with applicable regulations and the General Permit.

A public notice
for the NOI must also be published in two highly circulated newspapers in the
area.  The NOI with proof of public
notice must be submitted to IDNR at least 24-hours prior to the discharge of
storm water from the site once operations have commenced.  Work on the NOI and SWPPP should begin
approximately 3 to 6 months prior to construction completion to allow for
sufficient time to complete with activities prior to start-up.  ARS will work closely

 3
 

with Akron to complete
SWPPP activities in accordance with IDNR requirements and under a schedule
conductive to Akron’s project plans.

Once Akron has
started operations and obtained coverage under IDNR’s General Permit 1 for
storm water discharges associated with industrial activities, ARS will assist
Akron in discontinuing coverage under their construction storm water
permit.  This includes sending a Notice
of Discontinuation (NOD) to the IDNR once the soil on the site is stabilized
and sedimentation and erosion control structures have been removed.

Spill Prevention, Control, and Countermeasure Plan and
Facility Response Plan

A Spill Prevention
Control and Countermeasure (SPCC) Plan is normally required for an ethanol
facility based on denaturant storage.  A
Facility Response Plan (FRP) is also required when a facility stores more than
one million gallons of oil or oil containing products and when a spill has the
potential to cause substantial environmental harm.  Recent interpretations of the FRP rules
indicated that denatured ethanol storage is subject to these requirements if
the total storage exceeds the FRP threshold because of the presence of
denaturant (a regulated “oil” substance) in the final product tanks.  Proximity to a nearby water body, fish and
wildlife sensitive environment, and public drinking water intakes also play a
role in determining FRP applicability.

ARS will complete
the FRP and SPCC in accordance with applicable federal and IDNR
requirements.  The plans can be
incorporated into a single document and should be completed and implemented
prior to start-up.  ARS will begin work
on this plan several months prior to the completion of the construction
activities.  A review and certification
by a licensed professional engineer (P.E.) is required and ARS expects that
Fagen, Inc. can provide the P.E. supervision and certifications associated with
these plans.

NPDES Wastewater Discharge Permit

The discharge of
pollutants is wastewater is controlled by IDNR through a permit issued pursuant
to the federal NPDES.  Permit
requirements are dependent on the pollutants contained within the wastewater
effluent streams, the quality of the receiving water (surface and/or
groundwater), and other site-specific data. 
ARS recommends initiating the NPDES permitting activities early in the
project.  Generally, the NPDES permit
must be in-hand prior to discharging any wastewater, so this work usually
occurs soon after the construction commences. 
Experience shows that NPDES permits require a minimum of 180 days (6
months) to be issued, after the application is received.

Usually, an
ethanol plant has several wastewater discharges which are commingled into a
single effluent.  The anticipated
discharges are non-contact cooling water blowdown, filter backwash, and reverse
osmosis regeneration.  Boiler blowdown
and minor discharge associated with water softener regeneration may also be
released.  In ethanol plants, any
wastewater that

 4
 

contacts the ethanol
production process is usually treated by the biomethanator system and recycled
back to the process.

Based on ARS’
experience, wastewater discharges can be handled in a number of ways, and each
method presents different permitting challenges.  If the ethanol plant is located in an area
with a municipal wastewater collection and treatment system, non-process
wastewater can be directed to this system and discharged under the authority of
the municipality’s NPDES permit. 
However, under this option, a “pretreatment permit” is required in order
to allow IDNR to confirm that the additional volume and pollutant load can be
treated by the municipal wastewater treatment plant.  Under this discharge scenario, Akron would
pay fees to the municipality based on the quantity and characteristics of their
wastewater discharge.  Usually, a “pretreatment
permit” is the most straightforward NPDES permitting option provided that the
municipal system has adequate capacity to handle the additional discharge
generated at the ethanol plant.  It is
ARSs presumption that the Akron plant will be likely too far away from a
municipal system for this to be permitting option.

Other wastewater
options used by ethanol plants include “direct discharge” to a nearby stream, “land
application” (perhaps by discharge wastewater to agricultural lands through a
center pivot irrigation system), or “underground injection”.  All of these options require an NPDES
discharge permit.

Based on prior
experience at ethanol plants, ARS has developed the following work scope for
the NPDES wastewater permit.  The budget
presumes that “direct discharge” to a nearby stream is the method of wastewater
disposal and that only non-processs cooling waters will be discharged (no
wastewater with significant organics contamination).  ARS’ view is that “direct discharge”
represents the worst-case scenario with regards to NPDES permitting, but is a
common method of wastewater disposal for ethanol plants.

WW Task 1 – Facility Effluent Evaluation and Regulatory
Review

ARS will evaluate
the facility’s wastewater effluent, including an analysis of effluent flow,
contaminants and loading issues, and baseline ground water and surface water
characteristics.  This analysis will b
specific to each discharge as well as the combined water effluent stream.  ARS will couple the effluent evaluation with
a review of applicable IDNR requirements to determine site-specific compliance
issues related to facility wastewater discharges, including necessary
permitting requirements.

In order to
complete this task, ARS will need information with respect to the expected
wastewater discharges, including volume, flow, contaminant loading, and point
of discharge.  Most of this information
is typically provided in a water balance and process flow diagram.  In addition, ARS will require Material Safety
Data Sheets (MSDSs) for any chemicals added to cooling towers, boilers,
etc.  This information is normally
provided by the design engineering firm. 
Water samples from nearby source wells are also necessary and provide a
basis for comparison to the quality of the effluent.  ARS will rely on the design firm to provide
the

 5
 

necessary engineering
diagrams and other support documentation for the NPDES wastewater permit
application.

ARS also
recommends that Akron invite IDNR representatives responsible for NPDES
wastewater discharge permitting to the initial air quality pre-application
meeting in order to discuss issues specific to the NPDES permit application.

WW Task 2 – NPDES Discharge Permitting Package

ARS will prepare
the NPDEA permit application for submittal to IDNR.  This includes completing any standard IDNR/EPA
application forms and compiling the supporting information, water balance,
etc.  ARS has anticipated that a single,
combined non-process wastewater stream will be discharged and our NPDES permit
application costs reflect this assumption. 
ARS will work closely with Akron and the design engineering firm to
obtain the necessary information regarding the planned wastewater discharges
for inclusion within the permit application.

WW Task 3 – Permit Review and Agency Negotiations

ARS will provide
continuing assistance to Akron during the NPDES application review.  As with the other permits, ARS has included a
small budget to cover these services. 
However, actual costs will depend on the nature and scope of any IDNR
questions.  If certain questions
necessitate additional technical studies, the resulting work may require a
change order to ARS’ contract.  ARS will
notify Akron if these circumstances arise and provide a revised work scope and
cost estimate.

If requested, ARS
will review and provide comments on the draft NPDES permit.  ARS will also assist Akron in negotiating any
final permit terms and conditions.  Once
a final NPDES permit is issued, ARS will provide a permit summary to assist
Akron with implementation and compliance.

At this time, ARS
has not included permit compliance assistance, such as water sampling,
analysis, and reporting.  The specific
monitoring requirements will not be known until the final NPDES permit is
issued.  ARS will work closely with Akron
to provide the assistance necessary to comply with all wastewater discharge
requirements.  Once the specific NPDES
permit requirements are known, ARS will provide Akron with a proposal for
ongoing NPDES compliance services, if desired.

General Tasks

Project Management & Administration

These tasks cover
ARS project management and administrative expenses for each activity, such as
contract booking and invoicing.  ARS will
provide a technical and financial

 6
 

progress report each
month describing the work accomplished and outlining the objectives for the
next period.

Other Environmental Regulations

In addition storm
water and NPDEA permitting requirements described above, other environmental
permits and approvals may be required for the proposed ethanol plant.  Eventually, Akron will likely require additional
environmental studies, such as a Risk Management Plan (RMP) and other
site-specific permitting and compliance activities associated with the plant’s
air emissions. In addition, a water appropriation permit may be required.  ARS understands that a separate company will
be addressing construction-related regulatory requirements associated with the
plant’s air emissions.  However, ARS can
provide a proposal to assist with future air compliance activities at Akron’s
request.

Budget,
Schedule & Contract Items

ARS’ proposed
budget for the construction storm water permit is $7,124.  The estimated budget for the industrial storm
water permit is $6,252.  The estimated
budget for the SPCC Plan and FRP is $6,385. 
The estimated budget for the NPDES wastewater permit is $12,379.  These costs are quoted on a Time and Materials
basis following ARS’ attached rate sheet and commercial terms dated June
2005.  Itemized breakdowns of the budgets
are included with this proposal.  ARS has
provided separate budgets for each activity, in order to provide Akron with
maximum flexibility.  As a current ARS
customer, Akron will receive ARS’ Preferred Customer Discount, which reduces
standard labor rates by 5 percent.  Akron
must be current with payment of all invoices in order to continue receiving
this discount.

As with all
current ARS projects, Akron will receive invoices monthly for work performed
during the prior billing month.  Each
invoice will be accompanied by a technical and financial progress report
describing the work performed in the past month and anticipated work in the
upcoming month.

Project costs
assume that a General Permit is appropriate for storm water discharges, and an
individual NPDES permit is needed for direct discharge.  As noted previously, agency permitting fees
have not been included and will be the separate responsibility of Akron.  The design engineer will also need to provide
the required P.E. certifications for the FRP and the SPCC Plan.

The construction
SWPPP and NOI will be complete within 4 weeks of receiving all of the technical
information from the project team, such as preliminary site construction plans,
storm water pollution prevention measur3s, and outfall locations.  The construction SWPPP/NOI will generally not
begin until the air permit application is submitted.  Once the air permit is issued and
construction activities commence, ARS will begin work on the NPDES permit
application.  The industrial SWPPP/NOI
and FRP and SPCC Plan will be started several months prior to the completion
off the plant’s construction.

 7
 

Closing

ARS appreciates
the opportunity to provide this proposal and cost quotation to Akron.  ARS is extremely well qualified to assist in
securing the required environmental permits for the proposed facility.  ARS’ technical strength is our extensive
ethanol industry experience, past working relationship with Akron, and our
broad understanding of environmental control requirements and regulations.  I am confident that ARS will provide the necessary
technical and regulatory skills to help make your new ethanol plant a success.

Akron can signify
its acceptance of this proposal by signing and returning the attached work
authorization forms, or by providing a purchase order or other authorization
method of your choosing.  I would urge you
to provide the work authorization at your earliest convenience so ARS can start
the project work quickly and keep the project schedule on-track.

If there are any
questions regarding our proposal, you may contact me at 970-484-7941 or by
email at jwu@air-resource.com. 
Thank you for considering ARS for this work.

	
  

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  James Wu,
  Assistant Manager

  
	
   

  	
  Environmental
  Compliance Section

  

 

 8

Project
Budget – Environmental Permitting Support

Construction
Storm Water Permit and SWPPP

	
  Akron Riverview Corn Processors, LLC

  	
   

  	
  4-Dec-06

  
	
  New Facility Permitting Assistance (Akron, IA)

  	
   

  	
   

  
	
  Budget prepared by Air Resource Specialists, Inc.;
  Fort Collins, CO

  	
   

  	
   

  

 

	
  Tasks

  	
   

  	
   

  	
  Proj Manager

  	
   

  	
   

  	
  Tech Staff

  	
   

  	
   

  	
  Clerical Staff

  	
   

  
	
  SW Task 1 – Review
  Applicable Regs and Controls

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8

  	
   

  	
   

  	
   

  	
   

  
	
  SW Task 2 –
  Construction SWPPP

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  40

  	
   

  	
   

  	
  4

  	
   

  
	
  SW Task 3 – NOI and
  Supporting Information

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20

  	
   

  	
   

  	
  4

  	
   

  
	
  SW Task 4 – Agency
  Questions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
   

  	
   

  	
   

  
	
  Management &
  Administration

  	
   

  	
   

  	
  6

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  6

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Totals

  	
   

  	
   

  	
  6

  	
   

  	
   

  	
  70

  	
   

  	
   

  	
  14

  	
   

  

 

	
  Labor Summary

  	
   

  	
   

  	
  Hours

  	
   

  	
   

  	
  Rate

  	
   

  	
   

  	
  Budget

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Project Manager

  	
   

  	
   

  	
  6

  	
   

  	
   

  	
  $

  	
  120.00

  	
   

  	
   

  	
  $

  	
  720

  	
   

  
	
  Tech Staff

  	
   

  	
   

  	
  70

  	
   

  	
   

  	
  $

  	
  75.00

  	
   

  	
   

  	
  $

  	
  5,250

  	
   

  
	
  Clerical

  	
   

  	
   

  	
  14

  	
   

  	
   

  	
  $

  	
  40.00

  	
   

  	
   

  	
  $

  	
  560

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Subtotal

  	
   

  	
   

  	
  90

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  6,530

  	
   

  
	
  Less 5% Preferred Customer
  Discount (if applicable)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  327

  	
   

  
	
  Subtotal

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  6,204

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Computer

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  540

  	
   

  
	
  Communications

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  180

  	
   

  
	
  Miscellaneous (maps,
  etc.)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  200

  	
   

  
	
  Travel (See below for
  detail)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Estimated Project Budget

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  7,124

  	
   

  

 

Project
Budget – Environmental Permitting Support

Industrial
Storm Water Permit and SWPPP

	
  Akron Riverview Corn Processors, LLC

  	
   

  	
  4-Dec-06

  
	
  New Facility Permitting Assistance (Akron, IA)

  	
   

  	
   

  
	
  Budget prepared by Air Resource Specialists, Inc.;
  Fort Collins, CO

  	
   

  	
   

  

 

	
  Tasks

  	
   

  	
   

  	
  Proj Manager

  	
   

  	
   

  	
  Tech Staff

  	
   

  	
   

  	
  Clerical Staff

  	
   

  
	
  SWPPP – Site
  Information and Reg Review

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4

  	
   

  	
   

  	
   

  	
   

  
	
  SWPPP – Plan Preparation

  	
   

  	
   

  	
  4

  	
   

  	
   

  	
  32

  	
   

  	
   

  	
  4

  	
   

  
	
  SWPPP – Facility
  Implementation Assistance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8

  	
   

  	
   

  	
   

  	
   

  
	
  SWPPP – NOI Preparation
  and Submission

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8

  	
   

  	
   

  	
  2

  	
   

  
	
  Constr. SWPPP – NOT and
  NOD Prep and Submission

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
   

  	
   

  	
   

  
	
  Management &
  Administration

  	
   

  	
   

  	
  6

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  6

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Totals

  	
   

  	
   

  	
  6

  	
   

  	
   

  	
  54

  	
   

  	
   

  	
  12

  	
   

  

 

	
  Labor Summary

  	
   

  	
   

  	
  Hours

  	
   

  	
   

  	
  Rate

  	
   

  	
   

  	
  Budget

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Project Manager

  	
   

  	
   

  	
  10

  	
   

  	
   

  	
  $

  	
  120.00

  	
   

  	
   

  	
  $

  	
  1,200

  	
   

  
	
  Tech Staff

  	
   

  	
   

  	
  54

  	
   

  	
   

  	
  $

  	
  75.00

  	
   

  	
   

  	
  $

  	
  4,050

  	
   

  
	
  Clerical

  	
   

  	
   

  	
  12

  	
   

  	
   

  	
  $

  	
  40.00

  	
   

  	
   

  	
  $

  	
  480

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Subtotal

  	
   

  	
   

  	
  76

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  5,730

  	
   

  
	
  Less 5% Preferred Customer
  Discount (if applicable)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  287

  	
   

  
	
  Subtotal

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  5,444

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Computer

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  456

  	
   

  
	
  Communications

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  152

  	
   

  
	
  Miscellaneous (maps,
  etc.)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  200

  	
   

  
	
  Travel (See below for
  detail)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Estimated Project Budget

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  6,252

  	
   

  

 

Project
Budget – Environmental Permitting Support

Spill
Prevention Control and Countermeasure Plan and Facility Response Plan

	
  Akron Riverview Corn Processors, LLC

  	
   

  	
  4-Dec-06

  
	
  New Facility Permitting Assistance (Akron, IA)

  	
   

  	
   

  
	
  Budget prepared by Air Resource Specialists, Inc.;
  Fort Collins, CO

  	
   

  	
   

  

 

	
  Tasks

  	
   

  	
   

  	
  Proj Manager

  	
   

  	
   

  	
  Tech Staff

  	
   

  	
   

  	
  Clerical Staff

  	
   

  
	
  FRP & SPCC Plan –
  Site Information and Reg Review

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8

  	
   

  	
   

  	
   

  	
   

  
	
  FRP & SPCC Plan –
  Plan Preparation

  	
   

  	
   

  	
  4

  	
   

  	
   

  	
  40

  	
   

  	
   

  	
  2

  	
   

  
	
  FRP & SPCC Plan –
  Facility Implementation Assistance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  10

  	
   

  	
   

  	
   

  	
   

  
	
  Management &
  Administration

  	
   

  	
   

  	
  6

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  6

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Totals

  	
   

  	
   

  	
  10

  	
   

  	
   

  	
  58

  	
   

  	
   

  	
  8

  	
   

  

 

	
  Labor Summary

  	
   

  	
   

  	
  Hours

  	
   

  	
   

  	
  Rate

  	
   

  	
   

  	
  Budget

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Project Manager

  	
   

  	
   

  	
  10

  	
   

  	
   

  	
  $

  	
  120.00

  	
   

  	
   

  	
  $

  	
  1,200

  	
   

  
	
  Tech Staff

  	
   

  	
   

  	
  58

  	
   

  	
   

  	
  $

  	
  75.00

  	
   

  	
   

  	
  $

  	
  4,350

  	
   

  
	
  Clerical

  	
   

  	
   

  	
  8

  	
   

  	
   

  	
  $

  	
  40.00

  	
   

  	
   

  	
  $

  	
  320

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Subtotal

  	
   

  	
   

  	
  76

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  5,870

  	
   

  
	
  Less 5% Preferred Customer
  Discount (if applicable)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  294

  	
   

  
	
  Subtotal

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  5,577

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Computer

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  456

  	
   

  
	
  Communications

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  152

  	
   

  
	
  Miscellaneous (maps,
  etc.)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  200

  	
   

  
	
  Travel (See below for
  detail)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Estimated Project Budget

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  6,385

  	
   

  

 

Air
Resource Specialists, Inc.

Environmental
Compliance Section

Labor
Rates and Commercial Terms

Effective June 1, 2005

Labor
Categories & Billing Rates (Labor is billed in 1/4 hour increments)

	
  Expert Witness

  	
   

  	
  $

  	
  150.00

  	
   

  
	
  Senior
  Consultant/Dept Manager

  	
   

  	
  $

  	
  120.00

  	
   

  
	
  Senior
  Consultant/Asst Dept Manager

  	
   

  	
  $

  	
  110.00

  	
   

  
	
  Project
  Engineer/Scientist V

  	
   

  	
  $

  	
  95.00

  	
   

  
	
  Project
  Engineer/Scientist IV

  	
   

  	
  $

  	
  85.00

  	
   

  
	
  Project
  Engineer/Scientist III

  	
   

  	
  $

  	
  75.00

  	
   

  
	
  Project
  Engineer/Scientist II

  	
   

  	
  $

  	
  65.00

  	
   

  
	
  Project
  Engineer/Scientist I

  	
   

  	
  $

  	
  55.00

  	
   

  
	
  Administrative/Clerical
  Assistant

  	
   

  	
  $

  	
  40.00

  	
   

  

 

Preferred
Customer Discounts

ARS
provides qualified preferred customers with a discount of 5% on labor
charges.  Preferred customers are those
clients who provide ARS with technical work on a non-competitive basis and who
authorize such work within 30 days of receipt of a project budget from
ARS.  A minimum work order size may be
required to receive the preferred customer discount.  Preferred customer discounts are also
provided to clients whose annual labor billings exceed $50,000.  Volume discounts are applied to any labor
billings that exceed the qualifying minimum amount.  Client payment on accounts must be current to
quality for any discount.

Computer
Charges

Computer
time for word processing, spreadsheet calculations, computer graphics, etc. is
billed at $6.00 per labor hour.  Also,
specialized computer work such as dispersion modeling is assessed an additional
software fee to cover costs of maintaining these programs.  These fees may vary depending on the
particular software program.  Software
fees, where applicable, are stated in the proposal and/or project budget.  Software fees are billed only once per
project.

Communications
Charges

Charges
for project communications are billed at $2.00 per labor hour.  This fee covers ARS costs for telephone and
fax, e-mail access, in-house photocopies, normal office supplies, and
postage.  Upon request, clients may be
billed for project communications based on actual expenditures plus a 10%
administrative fee.  However, clients who
make such a request will be responsible for all labor charges associated with
compiling and tracking this information.

Other
Direct Costs

Other
project reimbursable costs are billed at actual cost plus a 10% fee.  Examples of outside expenses include travel,
outside photocopying, maps, topographic and/or meteorological data, overnight
shipping, subcontract labor, and other project supplies provided by third
parties.

Ambient
Air & Meteorological Monitoring Equipment Charges

Capital
equipment for air monitoring may be purchased on behalf of client at actual
cost plus 10% handling or leased to client for a monthly fee of 10% capital
cost (12-month minimum lease).  Leasing
fees beyond the 12th month
are reduced to 5% of capital cost per month. 
Expendable supplies associated with monitoring equipment are billed at
actual cost plus a 10% fee.

Warranties

ARS
warrants that all work will be performed using the care and diligence equal to
or superior to industry standard work practices.  All work is warranted to be free of
calculation errors and other similar errors. 
ARS will replace any and all defective work at no charge to the client
upon notification by the client that such errors exist within 30 days of
receipt of such work from ARS.

Insurance

ARS
carries standard insurance coverage, including general liability, auto
liability, and workman’s compensation. 
Upon request, ARS agrees to provide certificates documenting insurance
coverage to clients and meet other requests such as naming client as an insured
on each policy.  Costs incurred by ARS to
meet any client specified insurance requirements will be billed to client.

Limitations
on Liability

In
all cases, the liability for warranties and other claims against ARS are
limited to no greater than the contract value.

Confidential
Information

ARS
will maintain confidentiality of all project technical information provided by
the client during the course of this project. 
ARS will not disclose such information to third parties without prior
approval of the client.  This
confidentiality agreement excludes any information that is disclosed directly
by client to other outside parties or becomes public information through no
fault of ARS.  The client agrees that ARS
may use client’s name and a description of the work, for use in soliciting work
from other clients.

Terms
of Payment

Terms
of payment are Net 30 days.  Unpaid
invoices are subject to interest charges at the rate of 11⁄2 % per month on the
unpaid balance.  Interest charges are
waived for any questioned billings provided that the client provides written
notification to ARS challenging the basis for such billings within 30 days of
receipt of the invoice.

For further information contact:

D.
Howard Gebhart

Manager,
Environmental Compliance Section

Air
Resource Specialists, Inc.

1901
Sharp Point Drive Suite E

Fort
Collins, CO  80525

Telephone:
970-484-7941  Fax: 970-484-3423

e-mail:  hgebhart@air-resource.com

 

	
  Air Resource

  	
   

  
	
  Specialists, Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
  1901 Sharp Point Drive

  
	
   

  	
  Suite E

  
	
   

  	
  Fort Collins, Colorado 80525

  
	
   

  	
  970-484-7941

  
	
   

  	
  FAX: 970-484-3423

  

 

WORK
AUTHORIZATION FORM

	
  Client:

  	
   

  	
  Akron Riverview Corn Processors, LLC

  	 

	
   

  	
   

  	
  c/o Mr. Steve Roe

  	 

	
   

  	
   

  	
  4808 F Avenue

  	 

	
   

  	
   

  	
  Marcus, Iowa 51035

  	 

	
   

  	
   

  	
   

  	 

	
  Description:

  	
   

  	
  Spill Prevention Control and Countermeasure Plan and
  Facility Response Plant for dry-mill ethanol plant located near Akron, IA.

  	 

	
   

  	
   

  	
   

  	 

	
  Budget:

  	
   

  	
  $6,385

  	 

	
   

  	
   

  	
   

  	 

	
  Terms:

  	
   

  	
  Time & Materials basis. ARS labor rates and
  commercial terms dated June 1, 2005 apply (attached). ARS agrees not to
  exceed the authorized budget without prior approval by Client. ARS will
  invoice Client monthly for project expenses accrued during the previous
  month. Invoices are payable in 30 days. Late payment is subject to interest
  at 1.5 percent per month on the unpaid balance.

  	 

	
   

  	
   

  	
   

  	 

	
  Approved by:

  	
   

  	
  AKRON RIVERVIEW CORN PROCESSORS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature:

  	
  /s/ Stephen G. Roe

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  General Manager

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
  12/6/06

  	
   

  
									

 

 

	
  Air Resource

  	
   

  
	
  Specialists, Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
  1901 Sharp Point Drive

  
	
   

  	
  Suite E

  
	
   

  	
  Fort Collins, Colorado 80525

  
	
   

  	
  970-484-7941

  
	
   

  	
  FAX: 970-484-3423

  

 

WORK
AUTHORIZATION FORM

	
  Client:

  	
   

  	
  Akron Riverview Corn Processors, LLC

  	 

	
   

  	
   

  	
  c/o Mr. Steve Roe

  	 

	
   

  	
   

  	
  4808 F Avenue

  	 

	
   

  	
   

  	
  Marcus, Iowa 51035

  	 

	
   

  	
   

  	
   

  	 

	
  Description:

  	
   

  	
  Industrial stormwater permit application for a
  dry-mill ethanol plant located near Akron, IA.

  	 

	
   

  	
   

  	
   

  	 

	
  Budget:

  	
   

  	
  $6,252

  	 

	
   

  	
   

  	
   

  	 

	
  Terms:

  	
   

  	
  Time & Materials basis. ARS labor rates and
  commercial terms dated June 1, 2005 apply (attached). ARS agrees not to
  exceed the authorized budget without prior approval by Client. ARS will
  invoice Client monthly for project expenses accrued during the previous
  month. Invoices are payable in 30 days. Late payment is subject to interest
  at 1.5 percent per month on the unpaid balance.

  	 

	
   

  	
   

  	
   

  	 

	
  Approved by:

  	
   

  	
  AKRON RIVERVIEW CORN PROCESSORS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature:

  	
  /s/ Stephen G. Roe

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  General Manager

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
  12/6/06

  	
   

  
										

 

 

	
  Air Resource

  	
   

  
	
  Specialists, Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
  1901 Sharp Point Drive

  
	
   

  	
  Suite E

  
	
   

  	
  Fort Collins, Colorado 80525

  
	
   

  	
  970-484-7941

  
	
   

  	
  FAX: 970-484-3423

  

 

WORK
AUTHORIZATION FORM

	
  Client:

  	
   

  	
  Akron Riverview Corn Processors, LLC

  	 

	
   

  	
   

  	
  c/o Mr. Steve Roe

  	 

	
   

  	
   

  	
  4808 F Avenue

  	 

	
   

  	
   

  	
  Marcus, Iowa 51035

  	 

	
   

  	
   

  	
   

  	 

	
  Description:

  	
   

  	
  Construction stormwater permit application for a
  dry-mill ethanol plant located near Akron, IA.

  	 

	
   

  	
   

  	
   

  	 

	
  Budget:

  	
   

  	
  $7,124

  	 

	
   

  	
   

  	
   

  	 

	
  Terms:

  	
   

  	
  Time & Materials basis. ARS labor rates and
  commercial terms dated June 1, 2005 apply (attached). ARS agrees not to
  exceed the authorized budget without prior approval by Client. ARS will
  invoice Client monthly for project expenses accrued during the previous
  month. Invoices are payable in 30 days. Late payment is subject to interest
  at 1.5 percent per month on the unpaid balance.

  	 

	
   

  	
   

  	
   

  	 

	
  Approved by:

  	
   

  	
  AKRON RIVERVIEW CORN PROCESSORS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature:

  	
  /s/ Stephen G. Roe

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  General Manager

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
  12/6/06Exhibit
10.8

DISTILLER’S
GRAIN MARKETING AGREEMENT

THIS
DISTILLER’S GRAIN MARKETING AGREEMENT (the “Agreement”), is
entered into effective as of 3-20-07, 20 07, by Akron Riverview
Corn Processors, LLC, an Iowa Limited Liability Company (“Seller”), and Commodity
Specialist Company, a Delaware Corporation (“Buyer”).

W I T N E S S E T
H:

WHEREAS, Seller
desires to sell and Buyer desires to purchase the Distiller’s Dried Grains with
Solubles (“DDGS”) (hereinafter DDGS is sometimes referred to as the “Products”)
output of the ethanol production plant which Seller owns in Akron, Iowa and
which is to be shipped by railcar; and

WHEREAS, Seller
and Buyer wish to agree in advance of the sale and purchase of the Products to
the price formula, payment, delivery and other terms thereof in consideration
of the mutually promised performance of the other;

NOW, THEREFORE, in
consideration of the promises and the mutual covenants and conditions herein
contained, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged by both parties, it is hereby agreed:

1.             BUYER PERFORMANCE.  Buyer agrees to perform the services that it
provides for Seller in a professional and competent manner.

2.             PURCHASE AND SALE.  Seller agrees to sell to Buyer and Buyer
agrees to purchase from Seller the entire bulk feed grade DDGS output from the
Plant which is to be shipped by railcar, subject to all terms and conditions
set forth in this Agreement.  Buyer shall
label all Products that are sold by Buyer and shall register all labels with
the states where such Products are sold. All DDGS that is to be shipped by any method other than railcar shall
be sold by Seller and Buyer shall have no responsibility with respect to such
DDGS.

3.             TRADE
RULES.  All purchases and sales made
hereunder shall be governed by the Feed Trade Rules of the National Grain and
Feed Association unless otherwise specified. 
Said Trade Rules, a copy of which is appended hereto as Exhibit A,
shall, to the extent applicable, be a part of this Agreement as if fully set
forth herein.

4.             TERM AND TERMINATION.

A.            The initial term of this Agreement shall be for one year commencing as
of substantial completion and start-up of production of the Plant (the “Effective
Date”).  Start-up is anticipated to occur
in 2008.  Unless earlier
terminated in accordance with this 

Agreement, this Agreement shall be automatically
renewed for successive one (1) year terms thereafter unless either party gives
written notice to the other party of its election not to renew not later than
60 days prior to the expiration of the then current term.

B.            In the event that during the term of
this Agreement, or any renewal thereof, Seller materially changes the quality
of the Products produced at the Plant through the application of new technology
and equipment, either Seller or Buyer shall have the right to terminate this
Agreement upon 60 days notice. Notwithstanding such termination, Seller shall
remain liable to provide Products to Buyer in sufficient quantities, either
through the Plant or buying such product, to honor any sales contract that
Buyer may have to which Seller has consented.

5.             DELIVERY AND TITLE.

A.  The place of delivery for all Products sold
pursuant to this Agreement shall be FOB Plant. 
Buyer and Buyer’s agents shall be given access to Seller’s Plant in a
manner and at all times reasonably necessary and convenient for Buyer to take
delivery as provided herein.  Buyer shall
schedule the loading and shipping of all outbound Products purchased hereunder which
is shipped by rail.  All labor and
equipment necessary to load rail cars shall be supplied by Seller without
charge to Buyer.  Seller agrees to handle
all Products in a good and workmanlike manner in accordance with Buyer’s
reasonable requirements and in accordance with normal industry practice.  Seller shall maintain the rail loading
facilities in safe operating condition in accordance with normal industry
standards.

B.  Seller shall be responsible at all times for
the quantity, quality and condition of any Products in storage at the Plant.
Seller shall not be responsible for the quantity, quality and condition of any
of Products stored by Buyer at locations other than the Plant.

C.  Buyer shall give to Seller a schedule of
quantities of the Products to be removed by rail with sufficient advance notice
reasonably to allow Seller to provide the required services.  Seller shall provide the labor, equipment and
facilities necessary to meet Buyer’s loading schedule and, except for any
consequential or indirect damages, shall be responsible for Buyer’s actual
costs or damages resulting from Seller’s failure to do so.  Buyer shall order and supply rail cars as
scheduled for rail shipments.  All
freight charges shall be the responsibility of Buyer and shall be billed
directly to Buyer.

D.  Buyer shall provide loading orders as
necessary to permit Seller to maintain Seller’s usual production schedule,
provided, however, that Buyer shall not be responsible for failure to schedule
removal of the DDGS unless Seller shall have provided to Buyer production
schedules as follows:  Five (5) days
prior to the beginning of each calendar month during the term hereof, Seller
shall provide to Buyer a tentative schedule for production in the next calendar
month which is to be shipped by railcar. 
Seller shall inform Buyer daily of inventory and production status. For
purposes of this paragraph,

 2
 

notification will
be sufficient if made by e-mail or facsimile as follows:

If to Buyer, to
the attention of Steve Markham, Facsimile number 612-330-9894 or email to smarkham@csc-world.com,
and

If to Seller, to
the attention of Steve Galles, Facsimile number 712-376-2815 or email to
steve.galles@littlesiouxcornprocessors.com,

Or to such other
representatives of Buyer and Seller as they may designate to the other in
writing.

E.  Title, risk of loss and full shipping
responsibility shall pass to Buyer upon loading the DDGS into rail cars and
delivering to Buyer of the bill of lading for each such shipment.

6.             PRICE AND PAYMENT

A.  Buyer agrees to pay Seller as follows:  for all Products removed by Buyer from the
Plant a price equal to ninety eight (98%) of the FOB Plant price actually
received by Buyer from its customers, with 2% to be retained by Buyer as its
service fee, provided, however, that Buyer’s service fee shall not be less
$1.50 per ton nor shall it exceed $2.00 per ton.  The calculation on the minimum and maximum
fee payable to Buyer shall be made with respect to each weekly payment and will
not be carried over to any subsequent payments. By way of illustration, if the
2% to be retained by Buyer for any given week is less than $1.50 per ton, the
fee to be retained by Buyer shall then be $1.50 per ton.  If in subsequent
weeks the 2% is greater than $1.50 but less than $2.00, the fee shall be the
2%.  Conversely, if the 2% for any period exceeds $2.00, the fee shall
then be $2.00 per ton. If in subsequent weeks the 2% is less than $2.00 but
greater than $1.50, the fee shall be the 2%.  For purposes of this
provision, the FOB Plant price shall be the actual sale price, less all freight
costs incurred by Buyer in delivering the Product to its customer.

B.            Buyer agrees that it shall not sell
Products for delivery without the prior oral or written consent of Seller.  Buyer agrees to use commercially reasonable
efforts to achieve the highest resale price available under prevailing market
conditions.  Seller’s sole and exclusive
remedy for breach of Buyer’s obligations hereunder shall be to terminate this
Agreement. Buyer shall collect all applicable state tonnage taxes on Products
sold by Buyer and shall remit to the appropriate governmental agency.

B.  Within ten (10) days following receipt of
certified weight certificates, which certificates shall be presented to Buyer
each Thursday for all shipments during the preceding week, Buyer shall pay
Seller the full price, determined pursuant to paragraph 6(A) above, for all
properly documented shipments.  Buyer
agrees to maintain accurate sales records and to provide such records to Seller
upon request.  Seller shall have the
option to audit Buyer’s sales invoices at any time during normal business hours
and 

 3
 

during the term of
this Agreement.  If any such audit
reveals a deficiency in payment due Seller, Buyer shall immediately pay Seller
the amount of such deficiency plus interest calculated from the date such
payment should have been made at the prime rate then in effect as represented
in the Wall Street Journal.

7.             QUANTITY
AND WEIGHTS.

A.  It is understood that the output of Products
shall be determined by Seller’s production schedule and that no warranty or
representation has been made by Seller as to the exact quantities of Products
to be sold pursuant to this Agreement.

B.  The quantity of Products delivered to Buyer
from Seller’s Plant shall be established by weight certificates obtained from
scale at the Plant which is certified as of the time of weighing and which
complies with all applicable laws, rules and regulations or in the event that
the scale at the Plant is inoperable then at other scales which are certified
as of the time of weighing and which comply with all applicable laws, rules and
regulations. The outbound weight certificates shall be determinative of the
quantity of Products for which Buyer is obligated to pay pursuant to Section 6.

8.             QUALITY.

A.  Seller understands that Buyer intends to sell
the Products purchased from Seller as a primary animal feed ingredient and that
said Products are subject to minimum quality standards for such use.  Seller agrees and warrants that the Products
produced at its Plant and delivered to Buyer will comply with current industry
standards in the feed trade.

B.  Seller warrants that all Products, unless the
parties agree otherwise, sold to Buyer hereunder shall, at the time of delivery
to Buyer, conform to the following minimum quality standard:

	
  

  	
   

  	
  Protein

  	
   

  	
  Fat

  	
   

  	
  Fiber

  	
   

  	
  Moisture

  	
   

  	
  Ash

  	
   

  
	
   

  	
   

  	
  Min

  	
  Max

  	
   

  	
  Min

  	
  Max

  	
   

  	
  Min

  	
  Max

  	
   

  	
  Min

  	
  Max

  	
   

  	
  Min

  	
  Max

  	
   

  
	
  DDGS

  	
   

  	
  25

  	
   

  	
   

  	
  9

  	
   

  	
   

  	
   

  	
  15

  	
   

  	
   

  	
  12

  	
   

  	
   

  	
  6

  	
   

  

 

The standard for DDGS will be determined on an “as
is” basis rather than a dry weight basis. Minimum quality standards for
Solubles shall be agreed upon by the parties at a subsequent date.  Buyer may amend the foregoing minimum
quality standard upon 90 days written notice to Seller; provided, however, such
amended minimum quality standards are acceptable under current industry
standards in the feed trade industry at the time of amendment.

C.  Payment of invoice does not waive Buyer’s rights if goods do not comply
with terms or specifications of this Agreement. Unless otherwise agreed
between the parties to this Agreement, and in addition to other remedies
permitted by law, the Buyer may, without 

 4
 

obligation to pay,
reject either before or after delivery, any of the Products which when
inspected or used fail in a material way to conform to this Agreement.  Should any of the Products be seized or
condemned by any federal or state department or agency for any reason except
noncompliance by Buyer with applicable federal or state requirements, such
seizure or condemnation shall operate as a rejection by Buyer of the goods
seized or condemned and Buyer shall not be obligated to offer any defense in
connection with the seizure or condemnation. When rejection occurs before or
after delivery, at its option, Buyer may:

(1) Dispose of the
rejected goods after first offering Seller a reasonable opportunity of
examining and taking possession thereof, if the condition of the goods
reasonably appears to Buyer to permit such delay in making disposition; or

(2) Dispose of the
rejected goods in any manner directed by Seller which Buyer can accomplish
without violation of applicable laws, rules, regulations or property rights; or

(3) If Buyer has
no available means of disposal of rejected goods and Seller fails to direct
Buyer to dispose of it as provided herein, Buyer may return the rejected goods
to Seller, upon which event Buyer’s obligations with respect to said rejected
goods shall be deemed fulfilled.  Title
and risk of loss shall pass to Seller promptly upon rejection by Buyer.

(4) Seller shall
reimburse Buyer for all costs reasonably incurred by Buyer in storing,
transporting, returning and disposing of the rejected goods. Buyer shall have
no obligation to pay Seller for rejected goods and may deduct reasonable costs
and expenses to be reimbursed by Seller from amounts otherwise owed by Buyer to
Seller.

(5) If Seller
produces Products which comply with the warranty in Section C above but which
do not meet applicable industry standards, Buyer agrees to purchase such
Products for resale but makes no representation or warranty as to the price at
which such Products can be sold.  If the
Products deviates so severely from industry standard as to be unsalable, then
it shall be disposed of in the manner provided for rejected goods in Section C
above.

D.  If Seller knows or reasonably suspects that
any of the Products produced at its Plant are adulterated or misbranded, or
outside of industry quality standards, Seller shall promptly so notify Buyer so
that such Products can be tested before entering interstate commerce.  If Buyer knows or reasonably suspects that
any of the Products produced by Seller at its Plant are adulterated, misbranded
or outside of industry quality standards, then Buyer may obtain independent
laboratory tests of the affected goods. If such goods are tested and found to
comply with all warranties made by Seller herein, then Buyer shall pay all
testing costs; and if the goods are found not to comply with such warranties,
Seller will pay all testing costs.

 5
 

9.             RETENTION OF SAMPLES.  Seller will take an origin sample of Products
from each rail car before it leaves the Plant using standard sampling
methodology.  Seller will label these
samples to indicate the date of shipment and the railcar number involved.  Seller will also retain the samples and
labeling information for no less than one year.

10.           INSURANCE.

A.  Seller warrants to Buyer that all employees
engaged in the removal of the Products from Seller’s Plant shall be covered as
required by law by worker’s compensation and unemployment compensation
insurance.

B.  Seller agrees to maintain throughout every
term of this Agreement comprehensive general liability insurance, including
product liability coverage, with combined single limits of not less than
$2,000,000.  Seller’s policies of
comprehensive general liability insurance shall be endorsed to require at least
thirty (30) days advance notice to Buyer prior to the effective date of any
decrease in or cancellation of coverage. 
Seller shall cause Buyer to be named as an additional insured on Seller’s
insurance policy and shall provide a certificate of insurance to Buyer to
establish the coverage maintained by Seller not later than fourteen (14) days
prior to completion and start-up of production of the Plant.

C.  Buyer agrees to carry such insurance on its
vehicles operating on Seller’s property as Seller reasonably deems
appropriate.  The parties acknowledge
that Buyer may elect to self insure its vehicles.  Upon request, Buyer shall provide certificate
of insurance to Seller to establish the coverage maintained by Buyer.

D.  Notwithstanding the foregoing, nothing herein
shall be construed to constitute a waiver by either party of claims, causes of
action or other rights which either party may have or hereafter acquire against
the other for damage or injury to its agents, employees, invitees, property,
equipment or inventory, or third party claims against the other for damage or
injury to other persons or the property of others.

11.           REPRESENTATIONS AND WARRANTIES

A.  Seller represents and warrants that all of
the Products delivered to Buyer shall not be adulterated or misbranded within
the meaning of the Federal Food, Drug and Cosmetic Act and may lawfully be
introduced into interstate commerce pursuant to the provisions of the Act.  Seller further warrants that the Products
shall fully comply with any applicable state laws governing quality, naming and
labeling of product.  Payment of invoice
shall not constitute a waiver by Buyer of Buyer’s rights as to goods which do
not comply with this Agreement or with applicable laws and regulations.  EXCEPT AS
SPECIFICALLY STATED IN THIS AGREEMENT, SELLER MAKES NO WARRANTY OR
REPRESENTATION, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY WARRANTY
OF MERCHANTABILITY OR

 6
 

FITNNESS
FOR A PARTICULAR PURPOSE.

B.  Seller represents and warrants that the
Products delivered to Buyer shall be free and clear of liens and encumbrances.

12.           EVENTS OF DEFAULT.  The occurrence of any of the following shall
be an event of default under this Agreement: 
(1) failure of either party to make payment to the other when due; (2)
default by either party in the performance of the covenants and agreements set
forth in this Agreement; (3) if either party shall become insolvent, or make a
general assignment for the benefit of creditors or to an agent authorized to
liquidate any substantial amount of its assets, or be adjudicated bankrupt, or
file a petition in bankruptcy, or apply to a court for the appointment of a
receiver for any of its assets or properties with or without consent, and such
receiver shall not be discharged within sixty (60) days following appointment.

13.           REMEDIES.  Upon the happening of an Event of Default,
the parties hereto shall have all remedies available under applicable law with
respect to a Event of Default by the other party.  Without limiting the foregoing, the parties
shall have the following remedies whether in addition to or as one of the
remedies otherwise available to them; (1) to declare all amounts owed
immediately due and payable; and (2) immediately to terminate this Agreement
effective upon receipt by the party in default of the notice of termination,
provided, however, the parties shall be allowed 10 days from the date of
receipt of notice of default for to cure any default. Notwithstanding any other
provision of this Agreement, Buyer may offset against amounts otherwise owed to
Seller the price of any product which fails to conform to any requirements of
this Agreement.

14.           FORCE MAJEURE.  Neither Seller nor Buyer will be liable to
the other for any failure or delay in the performance of any obligation under
this Agreement due to events beyond its reasonable control, including, but not
limited to, fire, storm, flood, earthquake, explosion, act of the public enemy,
riots, civil disorders, sabotage, strikes, lockouts, labor disputes, labor
shortages, war stoppages or slowdowns initiated by labor, transportation
embargoes, failure or shortage of materials, acts of God, or acts or
regulations or priorities of the federal, state or local government or branches
or agencies thereof.

15.           INDEMNIFICATION.

A.  Seller shall
indemnify, defend and hold Buyer and its officers, directors, employees and
agents harmless, from any and all losses, liabilities, damages, expenses
(including reasonable attorneys’ fees), costs, claims, demands, that Buyer or
its officers, directors, employees or agents may suffer, sustain or become
subject to, or as a result of (i) any misrepresentation or breach of warranty,
covenant or agreement of Seller contained herein or (ii) the Seller’s
negligence or willful misconduct.

B.  Buyer shall
indemnify, defend and hold Seller and its officer, directors, employees and
agents harmless, from any and all losses, liabilities, damages, expenses 

 7
 

(including
reasonable attorneys’ fees), costs, claims, demands, that Seller or its
officers, directors, employees or agents may suffer, sustain or become subject
to, or as a result of (i) any misrepresentation or breach of warranty, covenant
or agreement of Buyer contained herein or (ii) the Buyer’s negligence or
willful misconduct.

C.  Where such personal injury, death or loss of
or damage to property is the result of negligence on the part of both Seller
and Buyer, each party’s duty of indemnification shall be in proportion to the
percentage of that party’s negligence or faults.

D.  Seller acknowledges that in order to maximize
the total revenue to be generated through the sale of the Products, Buyer may
take positions by selling Products in anticipation of Seller providing the
Products provided the Seller has given verbal or written consent.  Notwithstanding the fact that Seller’s
obligation is to provide Buyer with the output of the Plant the parties
acknowledge that Buyer may suffer losses as a result of positions taken by Buyer
if Seller discontinues operations for any reason whatsoever including Force
Majeure.  Therefore, Seller shall
indemnify, defend and hold Buyer and its officers, directors, employees and
agents harmless from any and all losses, liabilities, damages, expenses
(including reasonable attorney’s fees), costs, claims, demands that Buyer or
its officers, directors, employees, or agents may suffer, sustain or become
subject to as a result of any sale or purchase of Products taken by Buyer in
anticipation of Seller delivering the Porducts hereunder, provided Buyer has
taken commercially reasonable steps to avoid the loss.  Seller shall not be liable for any loss
resulting from Seller discontinuing operations related to a position taken by
Buyer for deliverywithout the consent of Seller.

16.           GOVERNMENTAL ACTION.  The parties recognize that the value of the
Products could change as a result of various governmental programs, be they
foreign or domestic.  In the event that a
significant value change of the Products as a result of any such governmental
program, Buyer may request re-negotiation of the contract price for the
Products by providing written notice to Seller. 
Buyer shall be required to demonstrate that the value of the Products
has significantly changed in the market. 
Should such a change take place, the parties agree to negotiate, in good
faith, a revised sale price for the Products. 
If, after a good faith effort, the parties are unable to agree on a new
price within the 90 day period immediately following notice to the other party,
then in such event and notwithstanding the other provisions hereof, Buyer may
terminate this Agreement upon 90 days prior written notice.

17.           RELATIONSHIP OF PARTIES.  This Agreement creates no relationship other
than that of buyer and seller between the parties hereto.  Specifically, there is no agency,
partnership, joint venture or other joint or mutual enterprise or undertaking
created hereby.  Nothing contained in
this Agreement authorizes one party to act for or on behalf of the other and
neither party is entitled to commissions from the other.

 8
 

18.           MISCELLANEOUS.

A.  This writing is intended by the parties as a
final expression of their agreement and a complete and exclusive statement of
the terms thereof.

B.  No course of prior dealings between the
parties and no usage of trade, except where expressly incorporated by
reference, shall be relevant or admissible to supplement, explain, or vary any
of the terms of this Agreement.

C.  Acceptance of, or acquiescence in, a course
of performance rendered under this or any prior agreement shall not be relevant
or admissible to determine the meaning of this Agreement even though the
accepting or acquiescing party has knowledge of the nature or the performance
and an opportunity to make objection.

D.  No representations, understandings or
agreements have been made or relied upon in the making of this Agreement other
than as specifically set forth herein.

E.  This Agreement can only be modified by a
writing signed by all of the parties or their duly authorized agents.

F.  The paragraph headings herein are for
reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement.

G.  This Agreement shall be construed and
performed in accordance with the laws of the State of Iowa.

H.  The respective rights, obligations and
liabilities of the parties under this Agreement are not assignable or delegable
without the prior written consent of the other party.

I.  Notice shall be deemed to have been given to
the party to whom it is addressed ninety-six (96) hours after it is deposited
in certified U.S. mail, postage prepaid, return receipt requested, addressed as
follows:

	
  

  	
  Buyer:

  	
   

  	
   

  	
  Commodity Specialist Company

  
	
   

  	
   

  	
   

  	
   

  	
  310 Grain Exchange Bldg.

  
	
   

  	
   

  	
   

  	
   

  	
  400 South Fourth Street

  
	
   

  	
   

  	
   

  	
   

  	
  Minneapolis, Minnesota 55415

  
	
   

  	
   

  	
   

  	
   

  	
  ATTN: Steve J. Markham

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Seller:

  	
   

  	
   

  	
  Akron Riverview Corn Processors, LLC

  
	
   

  	
   

  	
   

  	
   

  	
  4808 F. Avenue

  
	
   

  	
   

  	
   

  	
   

  	
  Marcus, Iowa 51035

  
	
   

  	
   

  	
   

  	
   

  	
  ATTN: Steve Roe

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Copy To:

  	
   

  	
   

  	
  Amy Piepmeier, Esq.

  
	
   

  	
   

  	
   

  	
   

  	
  Brown, Winick, Graves, Gross

  

 9
 

 

	
  

  	
  Baskerville and
  Schoenbaum, PLC

  	
   

  
	
   

  	
  Suite 2000 Ruan
  Center

  	
   

  
	
   

  	
  666 Grand Avenue

  	
   

  
	
   

  	
  Des Moines, Iowa
  50309

  	
   

  

 

IN WITNESS
THEREOF, the parties have caused this Agreement to be executed the day and year
first above written.

	
  

  	
   

  	
  COMMODITY SPECIALISTS COMPANY

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  By

  	
  /s Philip Nindau

  	 

	
   

  	
   

  	
  Title 

  	
  Co-President

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  AKRON RIVERVIEW CORN PROCESSORS, LLC

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  By 

  	
  /s/ Stephen G.
  Roe

  
	
   

  	
   

  	
  Title

  	
  President

  
						

 

 10

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