Document:

exv10w9

 

Exhibit 10.9

Project Development Agreement/LOI

Rev 06 30 06

PROJECT DEVELOPMENT AGREEMENT

BETWEEN

MINNERGY, LLC

AND

DELTA-T CORPORATION

     This Agreement is entered into this 25th day of August  , 2006 by and between DELTA-T
Corporation, a Virginia corporation located at 323 Alexander Lee Parkway, Williamsburg, Virginia
23185, USA (hereinafter “DELTA-T”), and MinnErgy, LLC, a Minnesota limited liability company
(hereinafter “Client”), which parties may be referred to individually as a “Party” or jointly as
the “Parties.”

WITNESSETH

     WHEREAS, DELTA-T is in the business of developing, designing, and supplying commercial
technologies, equipment and manufacturing facilities to perform a wide range of process industry
applications, including, without limitation, grain processing, ethanol production, evaporation,
distillation, dehydration, adsorption, solvent recovery and waste treatment; and

     WHEREAS, Client intends to develop an ethanol plant having the capacity to produce
approximately 50 million gallons per year at a site to be located in or near Eyota, Minnesota
(hereinafter “Plant”); and

     WHEREAS, Client wishes to retain DELTA-T to provide professional advice, business and
technical information, design and engineering, and related services in order to assist Client in
assembling all of the information, permits, agreements and resources necessary for construction of
Plant (hereinafter “Project”), and DELTA-T is willing to provide such services for a fixed fee,
provided that Client enters into this Agreement on the terms and conditions set forth herein; and

     WHEREAS, Client and DELTA-T intend to enter an EPT Agreement or an EPC Agreement as
defined herein within 30 days from the execution of this document,

     WHEREAS, Client recognizes that DELTA-T is foregoing other significant business
opportunities in order to perform such services, and that the provisions of this Agreement
concerning exclusivity are essential to this Agreement and that DELTA-T would not be willing to
enter into this Agreement without those provisions;

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

ARTICLE 1

SCOPE OF PROJECT DEVELOPMENT AND

PRELIMINARY ENGINEERING SERVICES

Client hereby retains DELTA-T, and DELTA-T hereby agrees, to provide per the terms of this
Agreement, the services described in this Section 1.1 to help Client develop the Project.

     1.1 Basic Project Development Services: DELTA-T shall:

	 	 	 	 	 	 	 
	 
	DELTA-T CORPORATION

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1.1.1 Help Client develop and analyze feasible Project alternatives, including
potential facility sites, and assist in the selection of the most appropriate
technical and site options in conjunction with the needs of the Project;

1.1.2 Provide projected plant operating cost factors and assist Client with
profitability and sensitivity analyses for selected Project alternative(s);

1.1.3 Work with Client to define Plant specifications, and assist in developing
Project roles and responsibilities for all participating parties;

1.1.4 Develop a preliminary general arrangement drawing for the Plant based on the
selected alternatives and site physical and geo-technical data provided by the
Client;

1.1.5 Provide process emissions data for environmental permitting activities in
support of the environmental permitting firm to be retained by Client;

1.1.6 Utilize DELTA-T’s experience in ethanol plant operation, products marketing,
and industry economics to help Client develop a business plan;

1.1.7 Provide technical and economic data and strategic guidance to assist Client
in making presentations to potential equity investors and financial institutions;

1.1.8 Cooperate with Client to form a bankable design-build
team.

1.1.9 Create a task schedule.

DELTA-T shall continue to develop and make modifications to each of the services referenced
under Section 1.1 as necessary in accordance with changing or evolving Project plans.
DELTA-T shall perform such services at such times, and according to such schedule, as
reasonably necessary to support effective development of the Project. Mutually agreed
project development tasks not addressed in Section 1.1 above, will be engaged by separate
agreements such as a compensated scope of work which may be appended to this Agreement.
All such modifications shall be written and signed by the parties.

1.2 Client’s Responsibilities: The entity that will own the Project, whether it is
the Client or another entity, shall hereinafter be referred to as “Owner.” Client shall
perform, or cause Owner to perform, the following tasks to assure development of the
Project, and such other tasks as may be required to achieve funding for the Project:

1.2.1 Promptly provide to DELTA-T, upon its request, such design decisions and
information related to site selection, plant size, interface of the Plant to other
sections of the Project, and other key project design parameters as DELTA-T may
reasonably request from time to time;

1.2.2 Create a Project development strategy and timeline, in cooperation with
DELTA-T, (the “Plan”), for the purposes of fully defining the Project its
specifications and of obtaining one or more letter(s) of commitment for financing

	 	 	 	 	 	 	 
	 
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in an amount and on terms and conditions sufficient to enable Client or Owner to
execute the Project, and on terms otherwise acceptable to Client (“Financing”);

1.2.3 Execute the Plan in a diligent manner;

1.2.4 Cooperate with DELTA-T to define Project specifications, and define Project
development roles for all participating parties;

1.2.5 Develop a business plan, in cooperation with DELTA-T, based on the
information provided by DELTA-T under Section 1.1 above; and

1.2.6 Otherwise cooperate with DELTA-T in the development of the Project as
mutually agreed between the Parties.

Client, or Owner, shall perform such tasks within sufficient time to allow DELTA-T to
fulfill its obligations under Section 1.1 above in a timely manner. Client will designate
Daniel H. Arnold, an individual, to serve as DELTA-T’s primary contact for the work
performed under this Agreement. DELTA-T shall be entitled to rely on, and shall proceed
according to the directions of, that individual, or such other individual as Client may
from time to time appoint in writing with respect to this Agreement.

1.3 Project Control Responsibilities: Client shall notify DELTA-T promptly of any
plan or intent on the part of any actual or potential investors in the Project to form an
Owner, or alter the equity or voting structure of an Owner, in such a way that Client would
not have sufficient control over such Owner to require it to perform the obligations of
Owner described in this Agreement, and to assist DELTA-T in causing such Owner to become a
party to this Agreement, or another similar agreement acceptable to DELTA-T. Client agrees
that it shall not assist Owner in any way, directly or indirectly, in working with anyone
other than DELTA-T in connection with the Project, except as expressly permitted under this
Agreement. Client acknowledges that if it were to provide any Confidential Information (as
described in Article 2 below) of DELTA-T to any Owner over which it did not have control,
that such Owner would benefit significantly from such information, and Client acknowledges
that it understands and will comply strictly with the prohibition on such disclosures set
forth in Article 2 below. In the event that Owner, for any reason other than termination
of this Agreement for breach by DELTA-T, fails to honor the exclusivity provisions of
Article 5 below, Client shall, in addition to any other damages that DELTA-T may have, pay
DELTA-T the entire amount due to DELTA-T and remaining unpaid under Sections 3.1 and 3.2
below.

ARTICLE 2

CONFIDENTIAL INFORMATION

“Confidential Information” shall mean (i) all inventions, whether patentable or not, all processes,
designs, know-how, copyrights and any and all other intellectual property of any kind
(“Intellectual Property”) and financial and other business information provided by either Party
(the “Disclosing Party”) to the other Party (the “Recipient”) under this Agreement, which shall be
deemed Confidential Information of the Disclosing Party.

Neither Party shall (i) use any Confidential Information of the other except for development of the
Project as provided under this Agreement, or (ii) disclose any part of the Confidential Information
of the other to any person or entity other than its employees who need to have access

	 	 	 	 	 	 	 
	 
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to such data
and who are bound to comply with the confidentiality terms of this Agreement, and as otherwise
authorized by the Party providing the Confidential Information. Notwithstanding the foregoing
Client may disclose information of the type provided by DELTA-T under Section 1.1 above to third
parties to whom it needs to disclose such information to develop the Project, provided that it
first obtains a written confidentiality agreement from such party to protect such information to at
least the same degree as provided under the agreement. Client shall provide a copy of each such
agreement to Delta-T promptly upon execution of the same. Furthermore, Client may disclose
Confidential Information, if any, that it needs to disclose in order to comply with any applicable
law, rule or regulation provided that it takes whatever steps are necessary to protect the
confidentiality of such information to the full extent allowed by such law, rule or regulation.

In particular, but without limitation, under no circumstances may Client use any of the
Confidential Information to assist it in negotiating or entering into an agreement with any third
party to provide any services or technology related to the Project in violation of this Agreement.

Neither Party shall disclose any Confidential Information of the other pursuant to court order or
other legal process unless: (i) it is advised by its legal counsel that it is legally required to
do so, (ii) it has promptly given the other notice of such order or process so that the other can
obtain a secrecy order or other applicable remedy and (iii) it has used all other reasonable means
to ensure the confidential treatment of such information, other than seeking a judicial order or
other judicial relief.

Notwithstanding anything set forth above, however, neither Party shall have any obligation under
this Article 2 with respect to Confidential Information of the other which the receiving Party can
show through documentary evidence falls under one or more of the following exclusions: (a) that
such information was in its possession prior to receipt from the other; (b) such information was in
the public domain at the time of disclosure or thereafter enters into the public domain through no
breach of this Agreement by Recipient or is in general use in the trade without violation by
Recipient of this Agreement, or (c) the information is disclosed to the receiving Party by a third
party who is under no obligation to the other party not to disclose it.

The provisions of this Section shall survive termination of this Agreement until such time, if
ever, that it falls under one of the exclusions described in the preceding paragraph.

ARTICLE 3

COMPENSATION

3.1 Project Development Services: For the services described in Section 1.1 above,
Client shall pay DELTA-T a fee equal to $75,000.00. Client shall pay to DELTA-T Client
shall pay to DELTA-T 70% of such fee within ten (10) days of signing this
Agreement and the remaining balance within ten (10) days of air permit submittal by Client
to the State of Minnesota.

3.2 Travel and Related Expenses: Client shall bear the cost of all travel, room
and board and related expenses reasonably incurred in connection with providing on site
services to the extent provided under Article 1 above, with reimbursement based on actual
costs. Client shall pay DELTA-T’s reasonable costs incurred in connection with all other
such expenses incurred with Client’s prior consent, except that DELTA-T will be responsible
for one site visit by two people without charge to Client.

	 	 	 	 	 	 	 
	 
	DELTA-T CORPORATION

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3.3 Late Payment Penalty: Client shall pay DELTA-T a late charge at the lesser of
1% per month or the highest amount permitted by applicable law on all payments past due.

ARTICLE 4

LIMITED LICENSE OF DELTA-T CONFIDENTIAL INFORMATION

DELTA-T is and shall remain the sole owner of the Confidential Information provided by DELTA-T
hereunder, and of the copyrights in all the drawings and other documents provided by DELTA-T under
this Agreement. DELTA-T hereby grants Client a limited, non-exclusive, non-transferable license,
without right to sublicense, to use the Confidential Information of DELTA-T solely for Client’s use
in connection with development and financing of the Project during the term of this Agreement.
DELTA-T reserves to itself all rights not expressly granted under this Article 4. In particular,
but without limitation, this license does not include the right to use any of the Confidential
Information to procure bids for development or construction of a plant, or to design or operate a
plant or facility based on any of such Confidential Information.

ARTICLE 5

EXCLUSIVE RELATIONSHIP

5.1 The Plant: If Client, or Owner as the case may be, elects to build the Plant, then the
Parties shall employ best efforts to negotiate and enter into an EPC Agreement or an EPT Agreement
as defined in Article 6 below. During the term of this Agreement Client shall not, and shall not
permit Owner or any other party associated with the Project, to enter into, any agreement for
provision of the technology, services or equipment to be provided by Delta-T under the Technology
Agreement to be entered into under Article 6 below, or any turnkey engineering, procurement and
construction agreement for the entire Plant (“EPC Agreement”), without first complying with
Sections 6 and 7 below.

5.2 Other Plants: If the Parties do not enter into an EPC Agreement or and EPT Agreement with
respect to the Plant, and Client or Owner intends to develop another ethanol plant, Client or Owner
shall notify DELTA-T of its intent to do so and provide DELTA-T at least sixty (60) days to
negotiate and enter into an agreement for development and design of such plant, on mutually agreed
terms, before entering into such an agreement with another party. This provision shall remain in
effort for a period ending five years after the date of this Agreement, or until the Parties enter
into an EPT Agreement or an EPC Agreement for another ethanol plant.

ARTICLE 6

TECHNOLOGY TRANSFER, ENGINEERING AND

PROCUREMENT SERVICES AGREEMENT

Upon Client’s obtaining the Financing for the Project or at such earlier time as Client and DELTA-T
may agree, Client and DELTA-T shall employ best efforts to negotiate and enter into either a
turnkey EPC agreement to provide the entire Plant under mutually agreeable terms (“EPC Agreement”),
or a technology transfer, engineering and procurement services agreement (“EPT Agreement”) whereby
DELTA-T shall, as a minimum, (a) provide engineering services in addition to that provided under
Section 1.1 above that may be required to complete the basic process engineering design suitable
for capital investment determination and all detail design; (b) review all detailed engineering
performed by others in order to assure that it conforms to such suitable process engineering
design; (c) provide the procurement services for plant equipment as

	 	 	 	 	 	 	 
	 
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determined by DELTA-T; (d)
provide construction observation assistance, operations and maintenance manuals, training and start
up assistance services to be specified in the EPC or Technology Agreement; (e) provide a license of
the Plant process technology embodied in the basic process engineering design provided by DELTA-T
for the purpose of operating the Plant. Such Technology Agreement shall include the following
provisions, and such other provisions as the parties deem reasonably appropriate:

	 	a.	 	DELTA-T shall be paid an agreed detailed engineering, startup and training
services fee, plus a one-time technology license fee. Such fees will be quoted by
DELTA-T upon substantial completion of Basic Project Development Services listed in
Section 1.1 herein.
	 
	 	b.	 	In addition, DELTA-T shall be paid an agreed fee based on the purchase price
of all equipment for which DELTA-T is to provide procurement services.
	 
	 	c.	 	DELTA-T shall provide Plant process performance warranties that are typical
for the industry based on the final plant configuration and selected energy-saving
options.
	 
	 	d.	 	DELTA-T shall be liable for an agreed amount as liquidated damages in the
event of breach of the Plant process performance warranties on a pro rata basis,
depending upon the extent to which such warranty is breached as determined by a
performance test protocol to be included in the Technology Agreement;
	 
	 	e.	 	The maximum amount of DELTA-T’s total liabilities in the Technology Agreement
may be limited to an agreed amount.

ARTICLE 7

FIRST RIGHT OF REFUSAL

If the Parties enter into an EPT Agreement, Owner shall not enter into a construction agreement
with any other party without providing DELTA-T at least sixty (60) days to enter into an EPC
Agreement on mutually agreed terms.

ARTICLE 8

INDEPENDENT CONTRACTOR

DELTA-T and Client are independent contractors, and nothing in this Agreement shall be deemed to
make either Party an agent or partner of the other, or to give either Party the right to bind the
other in any way.

ARTICLE 9

TERM AND TERMINATION

This Agreement shall commence on the date first above written and shall continue for a period of
five (5) years unless earlier terminated as provided in this Article 9. This Agreement may be
terminated by agreement of the Parties, or upon written notice:

	 	(i)	 	By either Party in case of material breach by the other if such breach is not
cured within thirty (30) days after receipt of the breaching party of notice of such
breach;
	 
	 	(ii)	 	By DELTA-T if a) payment is not received by DELTA-T as provided in Article 3
of this Agreement and such breach is not cured with thirty (30) days after receipt of
DELTA-T’s notice of such breach, or b) Project Financing is not obtained within
eighteen (18) months of the date first above written.

	 	 	 	 	 	 	 
	 
	DELTA-T CORPORATION

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Upon termination of this Agreement for any reason, the license granted under Article 4 above shall
immediately cease, and each Party shall (i) immediately cease use of all Confidential Information
of the other, (ii) immediately deliver to the disclosing Party all Confidential Information
provided to it by the other, including all copies of the same, and destroy all materials developed
by it or any third parties to whom it disclosed such information which was based upon such
information, and (iii) certify to the disclosing Party that it has done so. In particular, but
without limitation, Client shall promptly advise all actual and potential investors and lenders for
the Project and all regulatory authorities to which Confidential Information of DELTA-T has been
provided of the termination hereof, and shall withdraw any applications for financing or permits
that were based on the use of DELTA-T’s Confidential Information or modify such applications to
remove any such Confidential Information and any reliance on such Confidential Information.

ARTICLE 10

DISPUTE RESOLUTION

In the event of any dispute arising under or in connection with this Agreement or with the
existence, validity, interpretation, breach or enforcement thereof, either before or after the
termination or expiration of this Agreement, the Parties shall, upon the written request of either
of them, enter into mediation of such dispute pursuant to the applicable rules of the American
Arbitration Association, or such other rules or procedures as they may agree. Neither party shall
file suit unless it has first complied with this provision and attempted to resolve such dispute
for a period of at least thirty (30) days. Nothing herein contained, however, shall be deemed to
prevent either Party from seeking injunctive relief from any court of competent jurisdiction,
without necessity of posting bond, in case of a breach of Articles 2, 4, 5, 6 or 7 above. Should
litigation arise after complying with the provisions of this paragraph, the losing party will pay
legal expenses of the prevailing party in such litigation.

ARTICLE 11

LIMITATION OF DAMAGES AND REMEDY

Client’s sole remedy with respect to uncured breach by DELTA-T of any provision of this Agreement
(other than breach of Article 2), or with respect to services performed by DELTA-T under this
Agreement shall be termination of this Agreement and refund of the portion of the fee, if any,
allocable to services not properly performed. In no case shall DELTA-T be liable for any other
damages of any kind, direct, indirect, incidental, consequential, reliance, exemplary or otherwise,
with respect to any services performed by it, or to its failure to perform services, under this
Agreement.

DELTA-T’s sole remedy with respect to uncured breach by Client of any provision of this Agreement
(other than breach of Article 2 or 4), shall be termination of this Agreement and payment of the
fee set forth in paragraph 3.1. In no case shall Client be liable for any other
damages of any kind, direct, indirect, incidental, consequential, reliance, exemplary or otherwise,
with respect to this Agreement.

ARTICLE 12

GENERAL TERMS

12.1 Waiver: The failure of either Party to insist on strict performance of any of the
provisions of this Agreement or to exercise any right it grants will not be construed as a
relinquishment of any right or a waiver of any provision of this Agreement. No waiver of

	 	 	 	 	 	 	 
	 
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any provision or right shall be valid unless it is in writing and signed by a duly
authorized representative of the Party granting the waiver.

12.2 No Assignment: Neither Party may assign or convey this Agreement or its obligations
hereunder without the other’s prior written consent, except that either Party may assign
this Agreement to a purchaser of a controlling interest in its capital stock or of
substantially all of its assets as long as the purchaser agrees to comply with all the
selling Party’s obligations set forth herein.

12.3 Governing Law: This Agreement shall be governed and construed in accordance with the
laws of the state of Minnesota, without regard to its choice of law rules.

12.4 Notices: Notices and other communications required or allowed by this Agreement shall
be in writing and sent by U.S. mail, express carrier, by hand, or by facsimile transmission
as follows:

	 	 	 
	      If to DTC, to:

	 	DELTA-T Corporation,
	 

	 	323 Alexander Lee Parkway
	 

	 	Williamsburg, Virginia 23185
	 

	 	FAX: (757) 229-1705
	 

	 	Attn: Mr. Robert L. Swain, Vice President
	 
	 	 
	      If to CLIENT, to

	 	MinnErgy, LLC
	 

	 	4455 Theurer Blvd
	 

	 	PO Box 186
	 

	 	Winona, MN 55987
	 
	 	 
	 

	 	FAX 507-452-7970

Attn: Mr. Daniel H. Arnold

or such other addresses as a Party may specify by proper notice.

Each notice so given shall be deemed delivered, if by mail upon the third business day
after mailing, if by courier, upon delivery by the courier, and otherwise upon receipt by
the Party to whom notice is sent.

12.5 Survival: The provisions of Articles 2, 10 and 11 above shall survive termination or
expiration of this Agreement, and Articles 5.2 and 7 shall survive except in case of
termination by Client for material breach by DELTA-T.

12.6 Severability: If a court of competent jurisdiction determines that any portion of
this agreement is illegal, unenforceable or invalid, then that portion shall be considered
to
be removed from this agreement, the remainder shall remain in full force and effect, and
the Parties shall cooperate to modify the Agreement to cause it to conform to the original
language of the Agreement to the extent consistent with the finding of the court.

12.6 Entire Agreement: This Agreement constitutes the entire agreement between the Parties
relating to its subject matter, and supersedes all prior representations, understandings
and agreements, written or oral, express or implied. The Agreement can be modified only by
written agreement executed by authorized representatives of each Party.

	 	 	 	 	 	 	 
	 
	DELTA-T CORPORATION

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IN WITNESS whereof the Parties have executed this Agreement on the dates set forth below.

	 	 	 	 	 	 	 	 	 	 	 
	DELTA-T CORPORATION	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Alan Belcher
 

	 	 	 	By:
	 	/s/ Daniel H. Arnold
 

	 	 
	Printed Name:

	 	Alan Belcher
	 	 	 	Printed Name:
	 	Daniel H. Arnold	 	 
	Title:

	 	Vice President Project Development
	 	 	 	Title:
	 	Chair	 	 
	Date:

	 	9/1, 2006
	 	 	 	Date:
	 	8/25, 2006	 	 

	 	 	 	 	 	 	 
	 
	DELTA-T CORPORATION

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Exhibit 10.10

YAGGY

COLBY

                                                                           
                                          

August 31, 2006

Mr. Chris Arnold

Minnergy

			
	RE:	 	Proposal for Professional Services

Proposed Ethanol Plant Design Survey

Eyota, Minnesota

Dear Mr. Arnold:

Thank you for the opportunity to submit this proposal for design survey services for the above
ethanol plant project. It is our understanding that Minnergy intends to construct an ethanol
production facility on land described as approximately 330 acres located in the West Half, Section
15 and part of the Southwest Quarter, Section 10, Township 106 North, Range 12 West.

The scope of services for your project will be broken into two phases: design survey and land
survey. The design survey includes gathering detailed topographic surface and utility features to
provide the basis of design for the project. The land survey leads to the legal documents which
described the boundaries of the property. More specifically, the scope of work for the above is as
follows:

	1.	 	Design Survey

	 	•	 	Detailed survey of land surface features including roads, railroad tracks, fences,
culverts, vegetation and structures.
	 
	 	•	 	Detailed survey of utilities as located by the locating service.
	 
	 	•	 	Drafting of survey data.
	 
	 	•	 	Electronic file package to be sent to your site engineer for design.

	2.	 	Land Survey

	 	•	 	Property research.
	 
	 	•	 	Determination of property boundaries.
	 
	 	•	 	Setting property pins.
	 
	 	•	 	Certificate of Survey.

All above work is performed with state of the art equipment including GPS.

 

 

Mr. Chris Arnold

August 31, 2006

Page 2

The firm;s standard terms and conditions have been included as a part of this proposal.
Authorization of this proposal is for approval of costs only. Please feel free to call with any
questions.

Sincerely,

	 	 	 
	YAGGY COLBY ASSOCIATES
	 	 
	 
	 	 
	/s/ Christopher D. Munn

	 	/s/ Thomas K. Madden, PE
	 
	 	 
	Christopher D. Munn

	 	Thomas K. Madden, PE
	Assistant Surveyor

	 	Project Engineer

CDM:bsd

Attachment

AUTHORIZATION

I hereby authorize Yaggy Colby Associates to proceed with the work identified herein.

	 	 	 
	/s/ Daniel H. Arnold

	 	9/20/06
	 

	 	 
	Authorized Signature

	 	Date

 

 

YAGGY COLBY ASSOCIATES

2006 COMPENSATION SCHEDULE

HOURLY LABOR RATES

 

	 	 	 
	Senior Principal 

Prinicpal Engineer, Architect, Planner, Surveyor, Landscape Architect 

Senior Associate Engineer, Architect, Planner, Surveyor, Landscape Architect 

Senior Project Engineer, Architect, Planner, Surveyor, Landscape Architect 

Project Engineer, Architect, Planner, Surveyor, Landscape Architect 

Design Engineer, Architect, Planner, Surveyor, Landscape Architect 

Assistant Engineer, Architect, Planner, Surveyor, Landscape Architect 

Intern Engineer, Planner, Surveyor 

Senior Technician Design, Survey, Clerical 

Technician I Design, Survey, Clerical 

Technician II Design, Survey, Clerical 

Technician III Design, Survey, Clerical 

Technician IV Design, Survey, Clerical 

Technician V Design, Survey, Clerical 

Technician VI Design, Survey, Clerical

	 	$135/hour

$125/hour

$115/hour

$105/hour

$95/hour

$85/hour

$75/hour

$65/hour

$75/hour

$68/hour

$61/hour

$53/hour

$46/hour

$39/hour

$34/hour

REIMBURSABLE EXPENSES

 

	 	 	 	 	 
	Mailings, Plots, Prints, Copies
	 	Cost + 10%
	 
	 	 	 	 
	Mileage: Personal Vehicle
	 	$0.50/mile
	 
	 	 	 	 
	Survey and Inspection Vehicles
	 	$0.60/mile
	 
	 	 	 	 
	Field Equipment and Materials
	 	 	 	 
	 
	 	 	 	 
	Robotic Total Station
	 	$37.00/hour
	G.P.S. Equipment
	 	$37.00/hour
	G.P.S. Rover
	 	$25.00/hour
	Total Station/Data Collector
	 	$10.00/hour
	Stakes, Pipe, Lath, Survey Materials
	 	       Cost + 10%
	 
	 	 	 	 
	Outside Services, Project Fees, or Permits
	 	      Cost + 10%
	 
	 	 	 	 
	Additional Expenses
	 	Cost + 10%

 

 

YAGGY COLBY ASSOCIATES (YCA)

TERMS AND CONDITIONS

ARTICLE
1 —PAYMENT TO YCA

1.01 Other Provisions Concerning Payments

A. Preparation of Invoices. Invoices will be prepared monthly in accordance with YAGGY COLBY
ASSOCIATES’ standard invoicing practices and will be submitted to OWNER by YCA, unless otherwise
agreed. The amount billed in each invoice will be calculated as set forth in Proposal.

B. Payment of Invoices. Invoices are due and payable upon receipt. If OWNER fails to make any
payment due YCA for services and expenses within 30 days after receipt of their invoice therefore,
the amounts due YCA will be increased at the rate of 1.5% per month (or the maximum rate of
interest permitted by law, if less.) In addition, YCA may after giving seven days written notice
to OWNER, suspend services under this Agreement until YCA has been paid in full all amounts due for
services, expenses, and other related charges. Design professionals shall not have any liability
whatsoever to the client for any costs or damages as a result of such suspension caused by any
breach of this Agreement by the Client. Payments will be credited first to interest and then to
principal.

C. As required by the Construction Lien Law, YCA hereby notifies Owner that persons or companies
furnishing labor or materials for the construction on Owner’s land may have lien rights on Owner’s
land and buildings if not paid.

D. Disputed Invoices. If the Client objects to any portion of an invoice, the Client shall so
notify the Design Professional in writing within 30 calendar days of receipt of the invoice. The
Client shall identify the specific cause of the disagreement and shall pay when due that portion of
the invoice not in dispute. Interest as stated shall be paid by the client on all disputed
invoiced amounts resolved in the Design Professional’s favor and unpaid for more than 30 calendar
days after date of submission.

E. Payments Upon Termination. In the event of any termination under Paragraph 2.04, YCA will be
entitled to invoice OWNER and will be paid in accordance with Proposal for all services performed
or furnished and all Reimbursable Expenses incurred through the effective date of termination.

ARTICLE
2 — GENERAL CONSIDERATIONS

2.01 Standards of Performance

A. The standard of care for all professional services and related services performed or furnished
by YAGGY COLBY ASSOCIATES under this Agreement will be the care and skill ordinarily used by
members of their profession practicing under similar circumstances at the same time and in the same
locality. YCA makes no warranties, expressed or implied, under this Agreement or otherwise, in
connection with their services.

B. YCA shall perform or furnish professional services and related services in phases of the Project
to which this Agreement applies. YCA shall serve as OWNER’s prime professional for the Project.
YCA may employ such Subconsultants as they deems necessary to assist in the performance or
furnishing of the services. YCA shall not be required to employ any Subconsultant unacceptable to
them.

C. YCA and OWNER will endeavor to comply with applicable Laws or regulations. This Agreement is
based on these requirements as of its Effective Date. Changes to these requirements after the
Effective Date of this Agreement may be the basis for modifications to OWNER’s responsibilities or
to YCA’s scope of services, times of performance, or compensation.

D. OWNER shall be responsible for, and YCA may rely upon, the accuracy and completeness of all
requirements, programs, instructions, reports, data, and other information furnished by OWNER to
YCA pursuant to this Agreement. YCA may use such requirements, reports, data, and information in
performing or furnishing services under this Agreement.

E. OWNER shall make decisions and carry out its other responsibilities in a timely manner and shall
bare all costs incident thereto so as not to delay the services of YCA.

2.02 Use of Documents

A. All Documents are instruments of service in respect to this Project, and YAGGY COLBY ASSOCIATES
shall retain an ownership and property interest therein (including the right of reuse at the
discretion of YCA) whether or not the Project is completed.

B. Copies of Documents that may be relied upon by OWNER are limited to the printed copies (also
known as hard copies) that are signed or sealed by YCA. Files in electronic media format of text,
data, graphics, or of other types that are furnished by YCA or OWNER are only for convenience of
OWNER. Any conclusion or information obtained or derived from such electronic files will be at the
user’s sole risk.

C. OWNER may make, and retain, and reuse copies of Documents for information and reference
in connection with use on the Project by OWNER with written permission from YCA. Such Documents
are not intended or represented to be suitable for reuse by OWNER or others on extensions of
Project or on any other project. Any such reuse or modification without written verification or
adaptation by YCA, as appropriate for the specific purpose intended, will be at OWNER’s sole risk
and without liability or legal exposure to YCA or to its Subconsultants. OWNER shall indemnify and
hold harmless YCA and its Subconsultants from all claims, damages, losses, and expenses, including
attorneys’ fees arising out of or resulting therefrom.

D. If there is a discrepancy between the electronic files and the hard copies, the hard copies
govern.

 

 

2.03 Insurance

A. YAGGY COLBY ASSOCIATES shall procure and maintain Professional Liability, General Liability,
Workers Compensation, and Automotive Liability which are applicable to the Project.

B. OWNER shall procure and maintain General Liability or Property Insurance policies which are
applicable to the Project.

2.04 Termination

A. The obligation to provide further services under this Agreement may be terminated.

1. For cause, by either party upon 30 days written notice in the event of substantial failure by
the other party to perform in accordance with the terms hereof through no fault of the terminating
party.

2. For convenience, by OWNER effective upon the receipt of notice by YCA.

2.05 Dispute Resolution

A. OWNER and YAGGY COLBY ASSOCIATES agree to negotiate all disputes between them in good faith for
a period of 30 days from the date of notice, prior to exercising their rights under provisions of
this Agreement, or under law.

B. Mediation — In an effort to resolve any conflicts that arise during the design or construction
of the project or following the completion of the project, the Client and the Design Professional
agree that all disputes between them arising out of or relating to this Agreement shall be
submitted to nonbonding mediation unless the parties mutually agree otherwise. The Client and the
Design Professional further agree to include a similar mediation provision in all agreements with
independent contractors and consultants retained for the project and to require all independent
contractors and consultants also to include a similar mediation provision in all agreements with
subcontractors, subconsultants, suppliers or fabricators so retained, thereby providing mediation
as the primary method for dispute resolution between the parties to those agreements.

2.06 Hazardous Environmental Condition

A. OWNER represents to YAGGY COLBY ASSOCIATES that to the best of its knowledge, a Hazardous
Environmental Condition does not exist.

B. OWNER has disclosed to the best of its knowledge to YCA the existence of all Asbestos, PCB’s
Petroleum, Hazardous Waste, or Radioactive Material located at or near the Project site, including
type, quantity, and location.

C. It is acknowledged by both parties that YCA’s scope of services does not include any services
related to asbestos or hazardous or toxic materials. In the event the Design Professional or any
other party encounters asbestos or hazardous or toxic materials at the jobsite, or should it become
known in any way that such materials may be present at the jobsite or any adjacent areas that may
affect the performance of the Design Professional’s services, the Design Professional may, at his
or her option and without liability for consequential or any other damages, suspend performance of
services on the project until the Client retains appropriate specialist consultants or contractors
to identify, abate and/or remove the asbestos or hazardous toxic materials, and warrant that the
jobsite is in full compliance with applicable laws and regulations.

D. The Client agrees, notwithstanding any other provision of this Agreement, to the fullest extent
permitted by law, defend, to indemnify and hold harmless the Design Professional, his or her
officers, partners, employees, agents and consultants from and against any and all claims, suits,
demands, liabilities, losses, or costs, including reasonable attorneys’ fees and defense costs,
resulting or accruing to any and all persons, firms, and any other legal entity, caused by, arising
out of or in any way connected with the detection, presence, handling, removal, abatement, or
disposal of any asbestos or hazardous toxic substances, products or materials that exist on, about
or adjacent to the jobsite, whether liability arises under breach of contract or warranty, tort,
including negligence, strict liability or statutory liability or any other cause of action.

2.07 Allocation of Risk

A. Indemnification

1. To the fullest extent permitted by law, YAGGY COLBY ASSOCIATES shall indemnify and hold harmless
OWNER, OWNER’s officers, directors, partners, and employees from and against any and all costs,
losses, and damages (including but not limited to all fees and charges of engineers, architects,
attorneys, and other professions, and all court or arbitration or other dispute resolution costs)
caused solely by the negligent acts or omissions of YCA or its officers, directors, partners,
employees in the performance and furnishing of YCA’s services under this Agreement.

2. To the fullest extent permitted by law, OWNER shall indemnify and hold harmless YCA, its
officers, directors, partners, employees, and Subconsultants from and against any and all costs,
losses, and damages (including but not limited to all fees and charges of engineers, architects,
attorneys, and other professionals, and all court or arbitration or other dispute resolution costs)
caused solely by the negligent acts or omissions of OWNER or OWNER’s officers, directors, partners,
employees, and OWNER’s Consultants with respect to this Agreement or the Project.

3. To the fullest extent permitted by law, YCA’s total liability to OWNER and anyone claiming by,
through, or under OWNER for any cost, loss, or damages caused in part by the negligence of YCA and
in part by the negligence of OWNER or any other negligent entity or individual, shall not exceed
the percentage share that YCA’s negligence bears to the total negligence of OWNER, YCA, and all
other negligent entities and individuals.

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