Document:

exv10w10

 

Exhibit 10.10

PIPELINE PROTECTION AGREEMENT

     This Pipeline Protection Agreement (this “Agreement”) is entered into as of this 5th day of
October, 2006, between Natural Gas Pipeline Company of America, a Delaware corporation, whose
address is: 370 Van Gordon Street, Lakewood, CO 80228 (“Company”), and E Energy Adams, LLC, a
Nebraska corporation, whose address is: 510 Main Street, P.O. Box 49, Adams, NE 68301
(“Developer”).

     Company and Developer together may be referred to herein as the “Parties”, or individually as
a “Party.”

RECITALS

WHEREAS, Developer is developing certain real property in Section 17, Township 06 North, Range 08
East, Gage County, NE near Adams, NE and has requested that Company protect existing 26-inch and
36-inch high pressure natural gas pipelines for the installation of railroad spurs and access road;
and,

WHEREAS, Company is willing to accommodate Developer’s request and has advised Developer of what is
and would be involved for Company to protect its pipeline facilities; and,

WHEREAS, Developer agrees to compensate Company, in advance, for the full, actual cost of
protecting Company’s pipeline facilities; and,

WHEREAS, the Parties desire to set forth their respective rights and responsibilities with respect
to the work for the protection of Company’s pipeline facilities;

NOW, THEREFORE, in consideration of the premises and the mutual covenants and conditions herein
contained, and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the Parties hereby agree as follows:

AGREEMENT

	1.	 	Protection of Pipeline. The Company agrees to protect the pipeline facilities, which
construction and placement into service of the pipeline facilities is set forth on Exhibit
“A”, attached to this Agreement and made a part hereof. The new pipeline facilities will
protect the pipeline facilities from the rail spurs being constructed for the Developer’s new
ethanol plant and agreed to by Company.
	 
	2.	 	The protection of the pipeline facilities, as more fully set forth on Exhibit “A” and all the
work associated therewith, will hereafter be referred to as the (“Pipeline Protection”)
	 
	3.	 	Cost Reimbursement, Invoicing and Payment.

 

 

	 	a.	 	The estimated cost for the Pipeline Protection, as well as the Developer’s
responsibility for such costs, is also set forth on Exhibit A to this Agreement.
Developer shall pay to Company, in advance, the full estimated cost for the Pipeline
Protection. Company shall have no obligation to protect its pipeline facilities until
such time that Developer has paid to Company the full estimated cost of the Pipeline
Protection.
	 
	 	b.	 	An advance payment is required of Developer by Company (set
forth on Exhibit A attached hereto) and if it is not made within ninety (90) days of the date
hereof, this Agreement shall become null and void, and neither Party shall be obligated to
proceed with the Pipeline Protection.
	 
	 	c.	 	Developer expressly acknowledges and agrees that Company has no obligation to proceed
with the Pipeline Protection until the estimated cost is paid in full. After receipt of
the payment for the estimated cost of the Pipeline Protection and all such other
approvals, permits or authorizations, whether private or governmental as deemed required
by Company, then Company shall perform the necessary work with diligence and within a
reasonable time period. Company shall have no liability to Developer in the event Company
is delayed in meeting the proposed in service date for the protection of the pipeline at
this location.
	 
	 	d.	 	When the final cost of the Pipeline Protection is determined, Company shall refund to
Developer any payment made by Developer based on the estimate amount which exceeds the
actual cost, or, in the event the actual cost exceeds the estimated cost, then Developer
shall be obligated to and shall pay to Company the difference between the actual cost and
the estimated cost. Developer expressly acknowledges and agrees that Developer shall be
obligated to pay to Company the full amount of the actual costs incurred by Company to
protect its pipeline facilities in this location.
	 
	 	e.	 	Developer shall not be entitled to any refund or repayment by Company of the payment
made by Developer to Company under this Agreement other than that set forth above.

	4.	 	Rights-of-Way, Easements, Ingress and Egress. Developer grants, convey and confirms
to Company, its successors and assigns, without cost, ingress and egress to the location for
the protection of pipelines and attendant facilities as a part of the Pipeline Protection as
needed for current and future operation and maintenance; including for the purpose of
installing, maintaining, inspecting, repairing, surveying, removing or reclaiming Company’s
pipelines, facilities and appurtenances.
	 
	5.	 	Indemnification. Each Party (an “Indemnifying Party”) shall indemnify and save
harmless the other party and its affiliates, as well as their respective directors,

 

 

	 	 	officers, employees and agents (each an “Indemnified Party”) from all liability, loss, claims,
suits, actions, costs and damages (including reasonable attorney’s fees and court costs),for
injury to or death of persons or environmental impacts, arising from any act or omission by the
Indemnifying Party in connection with the Pipeline Protection, except to the extent of any the
same are attributable to the negligence or willful misconduct of the Indemnified Party.

	6.	 	Regulatory Approvals. This Agreement and the obligations of the Parties hereunder
are subject to the receipt of all necessary regulatory approvals (“Required Approvals”), if
any, such Required Approvals to be in a form reasonably acceptable to both Parties.
	 
	7.	 	Effective Date. Developer agrees that the Pipeline Protection work shall not
commence until: (1) all Required Approvals have been received in a form reasonably acceptable
to the Parties, (2) this Agreement has been executed by both Parties, and (3) Company has
received payment from Developer of any amount due as provided for in this Agreement and
Exhibit A hereto.
	 
	8.	 	Further Assurances. Each of the Parties shall execute and deliver any and all
additional papers, documents, and other assurances, and shall do any and all acts and things
reasonably necessary in connection with the performance of their obligations hereunder and to
carry out the intent of this Agreement.
	 
	9.	 	Notices. Notices and communications regarding this Agreement shall be sent or
made to the Parties at the addresses set forth below, and shall be effective upon actual
receipt, if delivered personally, by facsimile or by overnight delivery service, or five (5)
days after deposit in the U.S. Mail, postage prepaid, return receipt requested:

     If to Company:

 

 

Natural Gas Pipeline Company of America

ATTN: G. E. Smith

P.O. Box 281304

370 Van Gordon Street

Lakewood, CO 80228-8304

Telephone: (303) 914-7848

Fax: (303) 984-3432

     If to Developer:

E Energy Adams, LLC

ATTN: Jack L. Alderman

P. O. Box 49

Adams, NE 68301

Telephone: (402) 988-4655

Fax: (402) 988-5205

Either Party may change its address for notices hereunder by written notice to the
other Party, delivered in accordance with this Section 10.

	10.	 	Governing Law.

	 	a.	 	This Agreement shall be governed by and construed, as to interpretation and
performance hereof, in accordance with the laws of the State of Nebraska,
excluding those conflicts-of-law rules or principles which would compel the application of
the laws of another state.
	 
	 	b.	 	This Agreement is subject to all present future valid orders, rules and
regulations of any body of the Federal, State or any other governmental

body having or asserting jurisdiction in the premises.

	11.	 	Assignment. This Agreement shall be binding upon and inure to the benefit of the
Parties, their respective successors and their permitted assigns. Further, it is agreed that
either Party may, upon notice to but without the consent of the other, grant a security
interest in this Agreement and its rights hereunder as collateral in connection with a
financing of its business or facilities. Neither Party shall otherwise assign their interest
hereunder, except to a wholly owned subsidiary, a commonly owned affiliated company, or a
constituent partner or successor partner, without the written consent of the other Party.
However, such consent shall not be unreasonably withheld, conditioned or delayed.
	 
	12.	 	Recitals Incorporated. All recitals to this Agreement are incorporated herein as
enforceable terms of this Agreement by this reference.
	 
	13.	 	Entire Agreement. This Agreement constitutes the entire agreement between the
Parties with regard to its subject matter, and supersedes any prior written or oral
understanding or agreement relative thereto. Exhibit A is by this reference made a part of
this Agreement.

 

 

     IN WITNESS WHEREOF, the Parties have duly executed this Agreement to be effective on the day
and year first above written.

	 	 	 	 	 	 	 	 
	NATURAL GAS PIPELINE COMPANY OF AMERICA

(“Company”)

 	 	 	 	 
	By:  	/s/ Richard C. Jones
 	 	 	 	 
	 	Name:  	Richard C. Jones 	 	 	 	 
	 	Title:  	Director, Project Management 	 	 	 	 
	 
	E Energy Adams, LLC

(“Developer”)

 	 	 	 	 
	By:  	/s/ Jack L. Alderman  	 	/s/ Mark Weber,
	 	Name:  	Jack L. Alderman  	 	Board Member
	 	Title:  	President/CEO 	 	 	 	 

 

 

	 	 	 	 	 

EXHIBIT A

PIPELINE PROTECTION AGREEMENT

between

NATURAL GAS PIPELINE COMPANY OF AMERICA

and

E Energy Adams. LLC

	1.	 	Cost of Pipeline Protection: The cost of the Pipeline Protection to be
constructed pursuant to this Agreement is estimated to be one million, eighty-seven
thousand, two hundred and forty-six and No/100 dollars ($1,087,246.00).
	 
	2.	 	Payment.

	 	a.	 	Advance Payment: Developer shall pay to Company in advance
the full estimated cost of the Pipeline Protection. Company and Developer agree
that the Pipeline Protection and Company’s obligation therefore shall not begin
until Developer has paid to Company the estimated cost of the Pipeline Protection
and this Agreement has been executed by both Parties.
	 
	 	b.	 	Summary Billing: Upon completion of construction, Company
will submit to Developer a summary billing of Company’s actual costs, including
but not limited to the cost of materials and installation as shown above. In the
event the actual cost differs from the estimated cost, payment will be made by
Company or Developer as stated in Section 4.d of the Agreement.
	 
	 	c.	 	Invoice Terms: Payment of the invoice issued pursuant to this
Agreement shall be made within thirty (30) days of the receipt thereof.exv10w11

 

Exhibit 10.11

EJCDC

STANDARD FORM OF AGREEMENT

BETWEEN OWNER AND CONTRACTOR

ON THE BASIS OF A STIPULATED PRICE

THIS AGREEMENT is by and between

E Energy Adams, LLC, 510 Main Street, Adams, Nebraska, 68301

 
 (hereinafter called OWNER) and

Longfellow Foundations, Inc. , 225 South Washington Street, Hutchinson,

Kansas 67501

 
 (hereinafter called CONTRACTOR).

OWNER and CONTRACTOR, in consideration of the mutual covenants hereinafter set forth,
agree as follows:

ARTICLE 1 — WORK

1.01 CONTRACTOR shall complete all Work as specified or indicated in the Contract
Documents. The Work is generally described as follows:

	 	A.	 	Construction relating to and consisting of work associated with “Auger
Cast Grout Pile Construction” as designed by Fagen, Inc., including placement of
reinforcing steel and stockpiling of spoils for removal from site by others.

ARTICLE 2 — CONTRACT TIMES

2.01 Time of the Essence

	 	A.	 	All time limits for Milestones, if any, Substantial Completion, and
completion and readiness for final payment as stated in the Contract Documents
are of the essence of the Contract.

2.02 Dates for Substantial Completion and Final Payment

	 	A.	 	As indicated by exceptions to the completion dates that were submitted by
Contractor through a Schedule submitted as a part of the Bid package and further
discussed prior to Notice of Award that Bidder agrees that the Work associated with
the Auger Cast Grout Pile Construction will begin on or before August 7, 2006 and two
(2) of the Fermentation Tank foundations Auger Cast Grout Piles will be complete and
ready for Design Builder to begin work no later than August 28, 2006 with the
remaining work completed as indicated on Contractor schedule submitted with bid.

ARTICLE 3 — CONTRACT PRICE

3.01 OWNER shall pay CONTRACTOR for completion of the Work in accordance with the
Contract Documents an amount in current funds equal to the sum of the amounts determined
pursuant to paragraphs 3.01.A below:

	 	 	 	 	 
	Adopted from EJCDC Standard Form

of Agreement between Owner and Contractor

	 	00500-1
	 	 

 

 

	 	A.	 	For all Work, an amount equal to the sum of the established lump
sum bid as indicated in this paragraph 3.01.A:

TOTAL BASE BID (See attached Bid Form, pages 00410-1 to 00410-5):

	 	 	 	 	 
	Three Hundred Eighty-Four Thousand Eight Hundred and 00/100

	 	 	($384,800.00	)
	 
	(Spelled out in Words)
	 	 	 	 

As provided in paragraph 11.03 of the General Conditions, estimated quantities are not
guaranteed, and determinations of actual quantities and classifications are to be made
by ENGINEER as provided in paragraph 9.08 of the General Conditions. Unit prices have
been computed as provided in paragraph 11.03 of the General Conditions.

ARTICLE 4 — PAYMENT PROCEDURES

4.01 Submittal and Processing of Payments

     A. CONTRACTOR shall submit Applications for Payment in accordance with Article 14
of the General Conditions. Applications for Payment will be processed by ENGINEER as
provided in the General Conditions.

4.02 Progress Payments; Retainage

     A. OWNER shall make progress payments on account of the Contract Price on the basis
of CONTRACTOR’s Applications for Payment on or about the 1st day of each month during
performance of the Work as provided in paragraphs 4.02.A.1 and 4.02.A.2 below. All such
payments will be measured by the schedule of values established in paragraph 2.07.A of
the General Conditions (and in the case of Unit Price Work based on the number of units
completed) or, in the event there is no schedule of values, as provided in the General
Requirements:

1. Prior to Substantial Completion, progress payments will be made in an amount
equal to the percentage indicated below but, in each case, less the aggregate of
payments previously made and less such amounts as ENGINEER may determine or OWNER
may withhold, in accordance with paragraph 14.02 of the General Conditions:

     a. 90% of Work completed (with the balance being retainage).

     b. 90% of cost of materials and equipment not incorporated in the Work
(with the balance being retainage).

2. Upon Substantial Completion, OWNER shall pay an amount sufficient to increase
total payments to CONTRACTOR to 95% of the Work completed, less such amounts as
ENGINEER shall determine in accordance with paragraph 14.02.B.5 of the General
Conditions and less 90% of ENGINEER’s estimate of the value of Work to be
completed or corrected as shown on the tentative list of items to be completed or corrected.

	 	 	 	 	 
	Adopted from EJCDC Standard Form

of Agreement between Owner and Contractor

	 	00500-2
	 	 

 

 

4.03 Final Payment

	 	A.	 	Upon final completion and acceptance of the Work in accordance with
paragraph 14.07 of the General Conditions, OWNER shall pay the remainder of
the Contract Price as recommended by ENGINEER as provided in said paragraph
14.07.

ARTICLE 5 — INTEREST

5.01 Not Used.

ARTICLE 6 — CONTRACTOR’S REPRESENTATIONS

6.01 In order to induce OWNER to enter into this Agreement CONTRACTOR makes the
following representations:

	 	A.	 	CONTRACTOR has examined and carefully studied the Contract
Documents and the other related data identified in the Bidding Documents.
	 
	 	B.	 	CONTRACTOR has visited the Site and become familiar with and is
satisfied as to the general, local, and Site conditions that may affect cost,
progress, and performance of the Work.
	 
	 	C.	 	CONTRACTOR is familiar with and is satisfied as to all federal,
state, and local Laws and Regulations that may affect cost, progress, and
performance of the Work.
	 
	 	D.	 	CONTRACTOR does not consider that any further examinations,
investigations, explorations, tests, studies, or data are necessary for the
performance of the Work at the Contract Price, within the Contract Times, and
in accordance with the other terms and conditions of the Contract Documents.
	 
	 	E.	 	CONTRACTOR is aware of the general nature of work to be performed
by OWNER and others at the Site that relates to the Work as indicated in the
Contract Documents.
	 
	 	F.	 	CONTRACTOR has correlated the information known to CONTRACTOR,
information and observations obtained from visits to the Site, reports and
drawings identified in the Contract Documents, and all additional
examinations, investigations, explorations, tests, studies, and data with the
Contract Documents.
	 
	 	G.	 	CONTRACTOR has given ENGINEER written notice of all conflicts,
errors, ambiguities, or discrepancies that CONTRACTOR has discovered in the
Contract Documents, and the written resolution thereof by ENGINEER is
acceptable to CONTRACTOR.
	 
	 	H.	 	The Contract Documents are generally sufficient to indicate and
convey understanding of all terms and conditions for performance and
furnishing of the Work.

	 	 	 	 	 
	Adopted from EJCDC Standard Form

of Agreement between Owner and Contractor

	 	00500-3
	 	 

 

 

ARTICLE 7 — CONTRACT DOCUMENTS

7.01 Contents

	 	A.	 	The Contract Documents consist of the following:

	 	1.	 	This Agreement (pages 00500-1 to 00500-6, inclusive);
	 
	 	2.	 	Performance Bond (pages 00610-1 to 00610-2, inclusive);
	 
	 	3.	 	Payment Bond (pages 00615-1 to 00615-2, inclusive);
	 
	 	4.	 	General Conditions (pages 00700-1 to 00700-41,
inclusive);
	 
	 	5.	 	Supplementary Conditions (pages SC-1 to SC-7, inclusive);
	 
	 	6.	 	Bid Documents as listed in the table of contents of the
Project Manual;
	 
	 	7.	 	Drawings consisting of 11 sheets bearing the following
general title: Pile & Mat Construction Package.
	 
	 	8.	 	Addenda (numbers 1 to 2, inclusive);
	 
	 	9.	 	Exhibits to this Agreement (enumerated as follows):

	 	a.	 	Notice of Award.
	 
	 	b.	 	Notice to Proceed.
	 
	 	c.	 	CONTRACTOR’s Bid (pages 00410-1 to 00410-5, inclusive);
	 
	 	d.	 	Documentation submitted by CONTRACTOR prior to
Notice of Award;
	 
	 	 	 	                                                                                
 ;

	 	10.	 	The following which may be delivered or issued on or
after the Effective Date of the Agreement and are not attached hereto:

	 	a.	 	Written Amendments;
	 
	 	b.	 	Work Change Directives;
	 
	 	c.	 	Change Order(s).

	 	B.	 	The documents listed in paragraph 6.01.A are attached to this
Agreement (except as expressly noted otherwise above).
	 
	 	C.	 	There are no Contract Documents other than those listed above in this Article 7.
	 
	 	D.	 	The Contract Documents may only be amended, modified, or
supplemented as provided in paragraph 3.05 of the General Conditions.

	 	 	 	 	 
	Adopted from EJCDC Standard Form

of Agreement between Owner and Contractor

	 	00500-4
	 	 

 

 

ARTICLE 8 — MISCELLANEOUS

8.01 Terms

	 	A.	 	Terms used in this Agreement will have the meanings indicated in the General
Conditions.

8.02 Assignment of Contract

	 	A.	 	No assignment by a party hereto of any rights under or interests in
the Contract will be binding on another party hereto without the written
consent of the party sought to be bound; and, specifically but without
limitation, moneys that may become due and moneys that are due may not be
assigned without such consent (except to the extent that the effect of this
restriction may be limited by law), and unless specifically stated to the
contrary in any written consent to an assignment, no assignment will release
or discharge the assignor from any duty or responsibility under the Contract
Documents.

8.03 Successors and Assigns

	 	A.	 	OWNER and CONTRACTOR each binds itself, its partners, successors,
assigns, and legal representatives to the other party hereto, its partners,
successors, assigns, and legal representatives in respect to all covenants,
agreements, and obligations contained in the Contract Documents.

8.04 Severability

	 	A.	 	Any provision or part of the Contract Documents held to be void or
unenforceable under any Law or Regulation shall be deemed stricken, and all
remaining provisions shall continue to be valid and binding upon OWNER and
CONTRACTOR, who agree that the Contract Documents shall be reformed to replace
such stricken provision or part thereof with a valid and enforceable provision
that comes as close as possible to expressing the intention of the stricken
provision.

	 	 	 	 	 
	Adopted from EJCDC Standard Form

of Agreement between Owner and Contractor

	 	00500-5
	 	 

 

 

IN WITNESS WHEREOF, OWNER, and CONTRACTOR has signed this Agreement in quadruplicate.
One counterpart each has been delivered to OWNER, CONTRACTOR, CONTRACTOR’S BONDING
COMPANY and ENGINEER. All portions of the Contract Documents have been signed,
initialed or identified by OWNER and CONTRACTOR or identified by ENGINEER on their
behalf.

This Agreement will be effective on August 17, 2006 (which is the Effective Date of the Agreement).

	 	 	 	 	 	 
	OWNER:

	 	CONTRACTOR:
	 
	E Energy Adams, LLC 

510 Main Street 

Adams, Nebraska 68301

	 	Longfellow Foundations, Inc.

225 South Washington Street 

Hutchinson, Kansas 67501
	 
	 	 
	By: 	/s/ Jack L. Alderman

	 	By: 	/s/ Jason Hoy
	 	 

	 	 	 
	 	[CORPORATE SEAL]

	 	 	[CORPORATE SEAL]
	 
	 	 
	Attest 	 
	 	Attest 	 /s/ Don Lane
	 	 
	 	 	 
	 
	 	 
	Address for giving notices:

	 	Address for giving notices:
	 
	 	 
	 

	 	Same as above
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 	License No. N/A
                 (Where applicable) 
	 
	 	 
	 

	 	 	Agent for service of process: Holmes, Murphy,
and Associates, Des Moines, Iowa
	 
	 	 
	 

	 	 	(If CONTRACTOR is a corporation or a
partnership, attach evidence of authority to
sign.)
	 
	 	 
	 

	 	 	Designated Representative:
	 
	 	 
	 

	 	 	Name: Jason Hoy
	 
	 	 
	 

	 	 	Title: Vice President
	 
	 	 
	 

	 	 	Address: Same as above
	 
	 	 
	 

	 	 	Phone: (620) 662-1228
	 
	 	 
	 

	 	 	Facsimile: (620) 662-3885

	 	 	 	 	 
	Adopted from EJCDC Standard Form

of Agreement between Owner and Contractor

	 	00500-6

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