Document:

Exhibit 10.6

 

AGREEMENT BETWEEN

Illini Bio-Energy. and

TRANSYSTEMS CORPORATION

FOR PROFESSIONAL SERVICES

 

THIS AGREEMENT is made this 15th day of
September, 2005, by and between Illini Bio-Energy. (hereafter referred to as
“CLIENT”) and TranSystems Corporation (hereafter
referred to as “TRANSYSTEMS”).

 

Whereas CLIENT intends to design and
construct the following described project:

 

Provide conceptual
design layout of track structure for the proposed Ethanol Facility in Hartsburg
Ill. (hereinafter collectively called the
“Project”).

 

Whereas CLIENT desires to engage TRANSYSTEMS
to provided and perform certain professional services in connection with the
Project and TRANSYSTEMS desires to provide and perform said professional
services, all on the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the
foregoing and their mutual covenants hereinafter set forth, CLIENT and
TRANSYSTEMS agree as follows:

 

SECTION 1

BASIC SERVICES OF TRANSYSTEMS

 

Section
1.1                                   Basic Services. In connection with
the Project, TRANSYSTEMS shall provide for CLIENT the professional services and
perform, furnish or obtain from others the work and services expressly
described in, referred to and limited to those set forth in Exhibit A, attached
hereto and incorporated herein by reference (collectively the “Basic
Services”). TRANSYSTEMS shall provide the Basic Services for CLIENT in all
phases of the Project to which this Agreement applies, all as more particularly
set forth in Exhibit A.

 

Section
1.2                                   TRANSYSTEMS’ Duties. In addition
to the general duties, obligations and responsibilities set forth elsewhere in
this Agreement, the specific duties and responsibilities of TRANSYSTEMS in
performing the Basic Services under this Agreement are set forth in Exhibit A.
In addition to the specific duties and responsibilities of TranSystems in
performing the basic services under this Agreement as set forth in Exhibit A,
the following specific provisions shall apply to TranSystems’ duties.

 

SECTION 2

ADDITIONAL SERVICES OF TRANSYSTEMS

 

Section
2.1                                   Additional Services. In connection
with the Project, TRANSYSTEMS may be called on to perform, provide, furnish or
obtain from others services or work which are not part of, or are in addition
to, the Basic Services (“Additional Services”). If authorized in writing by
CLIENT and agreed to by TRANSYSTEMS, TRANSYSTEMS shall perform, provide,
furnish or obtain from others the agreed upon Additional Services. TRANSYSTEMS
shall not be obligated to perform, provide, furnish or obtain any Additional
Services without the 

 

 

prior written authorization of CLIENT. Except
to the extent expressly provided otherwise in Exhibit A or as otherwise agreed
in writing by the parties hereto, compensation to TRANSYSTEMS for Additional
Services will be paid for by CLIENT as indicated in Section 5.

 

Additional Services may be any service or
work not included as part of the Basic Services and may include, but are not
limited to, services or work in connection with environmental or funding
assistance, investigations not specifically required herein, services resulting
from changes in the scope, extent or character of the project providing
renderings or computer models, services to develop alternate bids or sequencing
of work, outside CONSULTANT services not specifically required herein,
out-of-town travel, and preparing to serve or serving as a CONSULTANT or
witness in any litigation, arbitration or other legal or administrative
proceeding. “Basic Services” and “Additional Services” are sometimes collectively
referred to herein as “Services”.

 

Section 2.2                                   Changes in the
Services.

 

Section
2.2.1                         Agreed Upon Changes in the Services. It
is the desire of the parties to keep changes in the Scope of Services at a
minimum, but the parties recognize that such changes may become necessary and
agree that CLIENT may initiate deletions, modifications or changes to the
Services by advising TRANSYSTEMS in writing of the change believed to be
necessary. As soon thereafter as practicable, TRANSYSTEMS shall prepare a cost
estimate of the change and shall inform CLIENT of the adjustment in the
compensation due TRANSYSTEMS under Section 5 hereof (“TRANSYSTEMS’
Compensation”) and/or the Completion Date set forth in Section 4 hereof, if
any, applicable to such requested change. CLIENT shall then advise TRANSYSTEMS
in writing of its approval or disapproval of the change. If CLIENT approves the
change, a written contract amendment shall be executed by both parties and
TRANSYSTEMS shall perform the Services as changed and the adjustment in
TRANSYSTEMS’ Compensation and/or the Completion Date set forth in the executed
contract amendment shall become effective. TRANSYSTEMS may initiate changes in
the Services by advising CLIENT in writing that in its opinion a change is
necessary. If CLIENT approves, it shall so advise TRANSYSTEMS and, thereafter,
the change shall be handled as if initiated by CLIENT. If a change is not
approved, or if a written contract amendment is not executed, by both CLIENT
and TRANSYSTEMS, the change shall not become effective and TRANSYSTEMS shall
not be obligated to perform the change.

 

Section
2.2.2                         Changes and Other Additional Costs. In
the event of (1) the CLIENT’s addition to, modification or change of or
deletion from the Services to be performed by TRANSYSTEMS (other than
additions, modifications, changes or deletions handled through the provisions
of Section 2.1 or Section 2.2.1 above); (2) a request for or approval from
CLIENT of performance of Services in excess of TRANSYSTEMS’ standard work day
or work week or such shorter times as are provided by applicable collective
bargaining agreements, or on a holiday customarily observed by TRANSYSTEMS; (3)
the discovery of any subsurface or other conditions, which differ materially
from those shown in or reasonably inferable from the documents or other
information on which this Agreement is based and/or those ordinarily
encountered and generally recognized as inherent in the locality of the
Project; (4) a modification of applicable law by which TRANSYSTEMS is required
to pay increased or additional taxes, 

 

 

government-regulated transportation costs,
insurance or other amounts which are not required as of the date of this
Agreement; (5) delay, suspension of, acceleration of or interference with,
TRANSYSTEMS’ performance of the Services by CLIENT or by any other person or
entity including, but not limited to national, state or local governments; (6)
wage, benefit or payroll tax increases due to governmental action or area
agreements; (7) modification to or delay in furnishing design criteria or other
information supplied by any person or entity, other than TRANSYSTEMS, if
TRANSYSTEMS’ performance of the Services under this Agreement depends upon such
criteria or information; and/or (8) any other increase in TRANSYSTEMS’ costs,
or the time required for completion of the Services due to “Force Majeure
Event” as set forth in Section 4 hereof, a change in applicable law or any
other cause beyond TRANSYSTEMS’ reasonable control, then the TRANSYSTEMS’
Compensation and/or the Completion Date, if any, shall be equitably adjusted
and TRANSYSTEMS shall be paid, and TRANSYSTEMS’ Compensation shall be adjusted
by, an amount equal to the additional costs to TRANSYSTEMS resulting therefrom.

 

SECTION 3

CLIENT’S RESPONSIBILITIES

 

Client shall do the following in a timely
manner so as not to delay the performance of the Services by TRANSYSTEMS:

 

Section
3.1                                   Client Representative. Designate a
person to act as Client’s representative with respect to the Services to be
rendered under this Agreement. Such person shall have complete authority to
transmit instructions, receive information, interpret, and define CLIENT’S
policies and decisions with respect to TRANSYSTEMS’ Services for the Project.

 

Section
3.2                                   Project Information. Provide all
criteria, all available information pertinent to the Project, and full
information as to CLIENT’S requirements for the Project. CLIENT agrees that
TRANSYSTEMS shall be entitled to rely upon the accuracy and completeness of all
such information.

 

Section
3.3                                   Project Access. Arrange for access
to and make all provisions for TRANSYSTEMS to enter upon public and private
property as required for TRANSYSTEMS to perform services under this Agreement.
All such access shall be provided without condition or restriction unacceptable
to TRANSYSTEMS nor shall TRANSYSTEMS be required to indemnify or insure any
third party as a condition to such access.

 

Section
3.4                                   Client Participation. Examine all
studies, reports, sketches, drawings, specification, proposals, and other documents
presented by TRANSYSTEMS, obtain advice of an attorney, insurance counselor and
other CONSULTANT as CLIENT deems appropriate for such examination and render in
writing decisions pertaining thereto within a reasonable time so as not to
delay the services of TRANSYSTEMS.

 

Section
3.5                                   Notices. Give prompt written
notice to TRANSYSTEMS whenever CLIENT observes or other wise becomes aware of
any development that affects the scope or timing of TRANSYSTEMS’ Services, or
any defect or non-conformance in the Services by 

 

 

TRANSYSTEMS (or its independent professional
associates or CONSULTANTS) or in the work of any contractor or other party
performing or providing work or services in connection with the Project.

 

Section
3.6                                   Additional Services. When CLIENT deems
it necessary or appropriate for Additional Services to be performed in
connection with any phase of the Project, CLIENT shall furnish or direct
TRANSYSTEMS to provide, Additional Services as stipulated in Section 2 of this
Agreement or other services as required.

 

Section
3.7                                   Licenses, Permits, etc. Provide
TRANSYSTEMS with any necessary governmental allocations or priorities, obtain
all permits and licenses required to be taken out in the name of CLIENT which
are necessary for the performance of the Services and, except where such
permits, processes or licenses are by the terms of Exhibit A the responsibility
of TRANSYSTEMS, obtain any permits, processes and other licenses which are
required for the Project or the Services.

 

Section
3.8                                   Other Duties. Perform any other
duties, obligations or responsibilities of the CLIENT set forth elsewhere in
this Agreement, including, but not limited to, the obligation to make the
payments called for under Section 5 hereof and perform any responsibilities and
duties of the Client which may identified on Exhibit B, if any.

 

Section
3.9                                   Defects in Services. The Client
shall promptly report to TRANSYSTEMS any defects or suspected defects in
TRANSYSTEMS’ services of which the Client becomes aware, so that TRANSYSTEMS
may take measures to minimize the consequences of such a defect. The Client
further agrees to impose a similar notification requirement on all contractors
in its Client/Contractor contract and shall require all subcontracts at any
level to contain a like requirement. Failure by the Client and the Client’s
contractors or subcontractors to notify TRANSYSTEMS shall relieve TRANSYSTEMS
of the costs of remedying the defects above the sum such remedy would have cost
had prompt notification been given when such defects were first discovered.

 

Section
3.10                            Taxes. Pay for and be responsible
for all taxes incurred in connection with the Project, regardless of whether
such taxes are assessed against CLIENT, TRANSYSTEMS or others.

 

Section
3.11                            Contractor Insurance and Indemnity
Requirements. The Client agrees, in any construction contracts in
connection with this Project, to require all contractors of any tier to carry
statutory Workers Compensation, Employers Liability Insurance and appropriate
limits of Commercial General Liability Insurance (CGL). The Client further
agrees to require all contractors to have their CGL policies endorsed to name
the Client, TRANSYSTEMS and its subconsultants as Additional Insureds and to
provide Contractual Liability coverage sufficient to insure the hold harmless
and indemnity obligations assumed by the contractors. The Client shall require
all contractors to furnish to the Client and TRANSYSTEMS certificates of
insurance as evidence of the required insurance prior to commencing work and upon
renewal of each policy during the entire period of construction. In addition,
the Client shall require that all contractors will, to the fullest extent
permitted by law, indemnify and hold harmless the Client, 

 

 

TRANSYSTEMS and its subconsultants from and
against any damages, liabilities or costs, including reasonable attorneys’ fees
and defense costs, arising out of or in any way connected with the Project,
including all claims by employees of the contractors.

 

Section
3.12                            Unauthorized Changes. In the event
the Client, the Client’s contractors or subcontractors, or anyone for whom the
Client is legally liable makes or permits to be made any changes to any
reports, plans, specifications or other construction documents prepared by
TRANSYSTEMS without obtaining TRANSYSTEMS’s prior written consent, the Client
shall assume full responsibility for the results of such changes. therefore the
Client agrees to waive any claim against TRANSYSTEMS and to release TRANSYSTEMS
from any liability arising directly or indirectly from such changes.

 

In addition, the Client agrees, to the
fullest extent permitted by law, to indemnify and hold harmless TRANSYSTEMS
from any damages, liabilities or costs, including reasonable attorneys’ fees
and costs of defense, arising from such changes.

 

In addition, the Client agrees to include in
any contracts for construction appropriate language that prohibits the
Contractor or any subcontractors of any tier from making any changes or
modifications to TRANSYSTEMS’ construction documents without the prior written
approval of TRANSYSTEMS and that further requires the Contractor to indemnify
both TRANSYSTEMS and the Client from any liability or cost arising from such
changes made without such proper authorization.

 

Section
3.13                            Construction Management. If the
Client elects to employ a construction manager, the Client will promptly notify
TRANSYSTEMS of the duties, responsibilities and authority of the construction
manager and their relationship to the duties, responsibilities and authority of
TRANSYSTEMS.

 

If the employment of such construction
manager by the Client results in additional time or expense to TRANSYSTEMS to
prepare for, coordinate with or respond to the construction manager.
TRANSYSTEMS shall be entitled to an equitable adjustment in fees and time for
performance of these services.

 

Section
3.14                            Costs. Bear all costs incident to
compliance with the requirements of this Section 3.

 

SECTION 4

PERIODS OF SERVICE, COMPLETION DATE, FORCE MAJEURE

 

Section
4.1                                   Period of Service. The provisions
of this Section 4 and the various rates of compensation for TRANSYSTEMS’
Services provided for elsewhere in this Agreement have been agreed to in
anticipation of the orderly and continuous progress of the Project.
TRANSYSTEMS’ obligation to render Basic Services hereunder will extend for a
period which may reasonably be required for the Project including any
Additional Services, extra or changed work and required extensions thereto.

 

 

Section
4.2                                   Completion Date. It is estimated,
but not guaranteed, that the Basic Services will be completed on or about 31
October 2005 (the “Completion Date”). If the Completion Date is exceeded
through no fault of TRANSYSTEMS, all rates, measures and compensation provided
herein shall be subject to equitable adjustment. The Completion Date (and
TRANSYSTEMS’ obligation to complete the Basic Services by such date) is subject
to reasonable extensions for the performance of Additional Services,
Constructive Changes or other extra work and is subject to reasonable extensions
for a Force Majeure Event.

 

Section
4.3                                   Timeliness of Performance. The
Client and TRANSYSTEMS are aware that many factors outside TRANSYSTEMS’ control
may affect TRANSYSTEMS’ ability to complete the services to be provided under
this Agreement. TRANSYSTEMS will perform these services with reasonable
diligence and expediency consistent with sound professional practices.

 

Section
4.4                                   Notice of Delay. If TRANSYSTEMS
becomes aware of delays due to time allowances for review and approval being
exceeded, delay by the Contractor, the Client, TRANSYSTEMS or any other cause
beyond the control of TRANSYSTEMS, which will result in the schedule for
performance of TRANSYSTEMS’ services not being met, TRANSYSTEMS shall promptly
notify the Client. If the Client becomes aware of any delays or other causes
that will affect TRANSYSTEMS’ schedule, the Client shall promptly notify
TRANSYSTEMS. In either event, TRANSYSTEMS’ schedule for performance of its
services shall be equitably adjusted.

 

Section
4.5                                   Force Majeure. For purposes
hereof, a “Force Majeure Event” shall mean the occurrence of a failure or delay
due to circumstances beyond TRANSYSTEMS’ control including, without limitation,
acts of God, acts of a public enemy, fires, floods, earthquakes, wars, civil
disturbances, sabotage, accidents, insurrection, blockages, embargoes, storms,
explosions, catastrophes, epidemics, damage to the Project, lack of access to
Project, unavailable utilities and power, water, labor disputes, CLIENT’s
failure to timely perform its obligations under this Agreement or other causes
beyond TRANSYSTEMS’ control.

 

SECTION 5

TRANSYSTEMS’ COMPENSATION

 

Section 5.1                                   Compensation for
Services and Expenses of TRANSYSTEMS in connection with Basic Services

 

Section
5.1.1                         For Basic Services. As compensation
for the performance of the Basic Services rendered by TRANSYSTEMS under Section
1, CLIENT shall pay TRANSYSTEMS, in accordance with the provisions of Section
5.4, as follows:

 

Section 5.2                                   Compensation for
Services and Expenses of TRANSYSTEMS in connection with Additional Services

 

Section
5.2.1                         For Additional Services. As
compensation for the performance of the Additional Services rendered by
TRANSYSTEMS under Section 2, CLIENT shall pay TRANSYSTEMS, in accordance with
the provisions of Section 5.4, as follows:

 

 

Additional Services of
TRANSYSTEMS principals and employees engaged directly on the Project and
rendered pursuant to Section 2, on the basis of TRANSYSTEMS’ Schedule of Rates
and Expenses then in effect.

 

Section
5.2.2                         For Reimbursable Expenses in connection with
Additional Services. In addition to payments provided for in
paragraph 5.2.1., CLIENT shall pay TRANSYSTEMS for all Reimbursable Expenses
incurred in connection with all Additional Services at the rates or in amounts
set forth on TRANSYSTEMS’ Schedule of Rates and Expenses in effect at the time
such Additional Services are performed.

 

Section
5.3                                   TranSystems’ Schedule of Rates and Expenses. TRANSYSTEMS’
initial Schedule of Rates and Expenses is attached hereto as Schedule 1. The
rates and expense provisions set forth on this initial Schedule of Rates and
Expenses shall be the rates and expense provisions in effect from the date of
this Agreement until December 31 of this year. TRANSYSTEMS will revise the
Schedule of Rates and Expenses annually and will submit the revised Schedule of
Rates and Expenses to CLIENT in December of each year that this Agreement is in
effect and such revised Schedule of Rates and Expenses shall automatically
become effective with regard to this Agreement and the Services performed under
this Agreement on January 1st of the next calendar year.

 

Section
5.4                                   Monthly Invoices. TRANSYSTEMS
shall submit monthly statements for Basic and Additional Services rendered and
for Reimbursable Expenses incurred. The project will be based on a lump sum
basis. The statements will be based upon TRANSYSTEMS’ estimate of the
proportion of the total services actually completed at the time of billing.
CLIENT shall make prompt monthly payments in response to TRANSYSTEMS’ monthly
statements.

 

Section 5.5                                   Other Provisions
Concerning Payments.

 

Section
5.5.1                         Interest, Suspension of Services. If
CLIENT fails to make any payment due TRANSYSTEMS for services and expenses
within thirty (30) days after receipt of TRANSYSTEMS’ statement therefor,
TRANSYSTEMS shall be entitled interest on the unpaid amounts due TRANSYSTEMS at
the lesser of: i) 1.5 % per month; or, ii) the highest rate of interest allowed
under applicable law. The entire unpaid balance due TRANSYSTEMS shall bear said
rate of interest from the thirtieth day after CLIENT’s receipt of TRANSYSTEMS’
statement, until the entire unpaid balance has been paid to TRANSYSTEMS. In
addition to being entitled to interest, TRANSYSTEMS may, after giving seven (7)
days written notice to CLIENT, suspend services under this Agreement until
TRANSYSTEMS has been paid in full all amounts due for Services, expenses, and
charges.

 

Section
5.5.2                         Payments after Termination by Client. In
the event of termination by CLIENT under paragraph 7.1 upon the completion of
any phase of the Basic Services, payments due TRANSYSTEMS for all Services
rendered and expenses incurred through such phase shall constitute total
payment for such Basic Services. In the event of such termination by CLIENT
during any phase of the Basic Services, TRANSYSTEMS will be paid for Services
rendered and expenses incurred during that phase through the date of
termination on the basis of TRANSYSTEMS’ Schedule of Rates and Expenses. In the
event of any such 

 

 

termination (whether at the completion of a
phase or otherwise), TRANSYSTEMS shall also be reimbursed for the charges of
independent professional associates and CONSULTANTS employed by TRANSYSTEMS to
render Basic Services or Additional Services and all reasonable demobilization
costs incurred by TRANSYSTEMS, including any cancellation charges by
independent professional associates, CONSULTANTS and others performing or
furnishing Services on the Project through TRANSYSTEMS, and TRANSYSTEMS shall
be paid for all Additional Services performed and unpaid Reimbursable Expenses
incurred through the date of the termination.

 

Section
5.5.3                         Payments after Termination by TranSystems. In
the event of termination by TRANSYSTEMS under paragraph 7.1, TRANSYSTEMS will
be paid for all Services rendered and expenses incurred during that phase
through the date of termination on the basis of TRANSYSTEMS’ Schedule of Rates
and Expenses. In addition, TRANSYSTEMS shall also be reimbursed for the charges
of independent professional associates and CONSULTANTS employed by TRANSYSTEMS
to render Basic Services or Additional Services and all reasonable
demobilization costs incurred by TRANSYSTEMS, including any cancellation
charges by independent professional associates, CONSULTANTS and others
performing or furnishing Services on the Project through TRANSYSTEMS, and
TRANSYSTEMS shall be paid for all Additional Services performed and unpaid
Reimbursable Expenses incurred through the date of the termination.

 

Section
5.5.4                         Records. Records of TRANSYSTEMS’
salary costs pertinent to TRANSYSTEMS’ compensation under this Agreement will
be kept in accordance with generally accepted accounting practices. If Client
desires to have copies of such records, copies will be made available to CLIENT
upon Client’s request prior to final payment for TRANSYSTEMS’ services.
TRANSYSTEMS shall be reimbursed the cost of any such copies by CLIENT.

 

Section
5.5.5                         Cost Factors. Whenever a factor is
applied to salary costs or other expenses in determining compensation payable
to TRANSYSTEMS that factor will be adjusted periodically and equitably to
reflect changes in the various elements that comprise such factor. All such
adjustments will be in accordance with generally accepted accounting practices
as applied on a consistent basis by TRANSYSTEMS and consistent with
TRANSYSTEMS’ overall compensation practices and procedures.

 

SECTION 6

OPINIONS OF COST AND SCHEDULE

 

Section
6.1                                   Opinions of Cost and Schedule. Since
TRANSYSTEMS has no control over the cost of labor, materials, equipment or
services furnished by others, or over the resources provided by others to meet
construction or other Project schedules, or over the methods of others in
determining prices, or over competitive bidding or market conditions,
TRANSYSTEMS’ opinions of probable costs (including probable Total Project Costs
and Construction Cost) and of Project schedules shall be made on the basis of
TRANSYSTEMS’ experience and qualifications and represent TRANSYSTEMS’ best
judgment as an experienced and qualified professional engineer, familiar with
the construction industry; but TRANSYSTEMS cannot and does not guarantee that
proposals, bids or actual Project costs (including Total Project Costs or 

 

 

Construction Costs) will not vary from
opinions of probable cost prepared by TRANSYSTEMS or that actual schedules will
not vary from the projected schedules prepared by TRANSYSTEMS. TRANSYSTEMS
makes no warranty, express or implied, that the bids or the negotiated cost of
the work will not vary from TranSystems’ opinion of probable construction cost.

 

SECTION 7

GENERAL CONSIDERATIONS

 

Section
7.1                                   Termination. The obligation to
provide further services under this Agreement may be terminated by either party
upon thirty (30) days written notice to the other party 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.

 

Section
7.1.1                         Replacement of TranSystems. If
TRANSYSTEMS for any reason is not allowed to complete all the services called
for by this Agreement, TRANSYSTEMS shall not be held responsible for the
accuracy, completeness or constructability of the construction documents
prepared by TRANSYSTEMS if used, changed or completed by the Client or by
another party. Accordingly, the Client agrees, to the fullest extent permitted
bylaw, to indemnify and hold harmless TRANSYSTEMS, its officers, directors,
employees and subconsultants (collectively, TRANSYSTEMS) from any damages,
liabilities or costs, including reasonable attorneys’ fees and defense costs,
arising or allegedly arising from such use, change or completion by any other
party of any construction documents prepared by TRANSYSTEMS.

 

Section
7.2                                   Reuse of Documents. All documents,
drawings, sketches, studies, analysis, information, schedules, estimates, reports
and other items prepared or furnished by TRANSYSTEMS (or TRANSYSTEMS’
independent professional associates and CONSULTANTS) pursuant to this
Agreement, including, but not limited to Drawings and Specifications, are
instruments of service in respect of the Project and TRANSYSTEMS shall retain
an ownership and property interest therein whether or not the Project is
completed. Provided, however, that such documents, drawings, sketches, studies,
analysis, information, schedules, estimates, reports and other items are not
intended or represented to be suitable for reuse by CLIENT or others on
extensions of the Project or on any other project. Any reuse without written
verification or adaptation by TRANSYSTEMS for the specific purpose intended
will be at CLIENT’s sole risk and without liability or legal exposure to
TRANSYSTEMS, or to TRANSYSTEMS’ independent professional associates or
CONSULTANTS, and CLIENT does hereby, to the fullest extent permitted by law,
indemnify and hold harmless TRANSYSTEMS, TRANSYSTEMS’ officers, employees and
agents and TRANSYSTEMS’ independent professional associates and CONSULTANTS
from all claims, suits, demands, damages, liabilities, losses, expenses and
costs, including but not limited to reasonable attorney’s fees and other costs
of defense, arising out of or resulting therefrom. The provisions of this
Section 7.2 shall survive the termination of this Agreement.

 

Section
7.3                                   Delivery of Electronic Files. In
the event that Client requests any electronic deliverables under this agreement,
TRANSYSTEMS and Client shall execute a separate CADD agreement. Otherwise, in
accepting and utilizing any drawings, reports and data 

 

 

on any form of electronic media generated and
furnished by TRANSYSTEMS, the Client agrees that all such electronic files are
instruments of service of TRANSYSTEMS, who shall be deemed the author, and
shall retain all common law, statutory law and other rights, including
copyrights.

 

The Client agrees not to reuse these
electronic files, in whole or in part, for any purpose other than for the
Project. The Client agrees not to transfer these electronic files to others
without the prior written consent of TRANSYSTEMS. The Client further agrees to
waive all claims against TRANSYSTEMS resulting in anyway from any unauthorized
changes to or reuse of the electronic files for any other project by anyone
other than TRANSYSTEMS.

 

Electronic files furnished by either party
shall be subject to an acceptance period of sixty (60) days during which the
receiving party agrees to perform appropriate acceptance tests. The party
furnishing the electronic file shall correct any discrepancies or errors
detected and reported within the acceptance period. After the acceptance
period, the electronic files shall be deemed to be accepted and neither party
shall have any obligation to correct errors or maintain electronic files.

 

The Client is aware that differences may
exist between the electronic files delivered and the printed hard-copy
construction documents. In the event of a conflict between the signed
construction documents prepared by TRANSYSTEMS and electronic files, the signed
or sealed hard-copy construction documents shall govern.

 

In addition, the Client agrees, to the
fullest extent permitted bylaw, to indemnify and hold harmless TRANSYSTEMS, its
officers, directors, employees and subconsultants (collectively, TRANSYSTEMS)
against all damages, liabilities or costs, including reasonable attorneys’ fees
and defense costs, arising from any changes made by anyone other than TRANSYSTEMS
or from any reuse of the electronic files without the prior written consent of
TRANSYSTEMS.

 

Under no circumstances shall delivery of
electronic files for use by the Client be deemed a sale by TRANSYSTEMS, and
TRANSYSTEMS makes no warranties, either express or implied, of merchantability
and fitness for any particular purpose. In no event shall TRANSYSTEMS be liable
for indirect or consequential damages as a result of the Client’s use or reuse
of the electronic files.

 

Section
7.4                                   Standard of Practice, Warranties. Services
performed by the TRANSYSTEMS under this Agreement will be conducted in a manner
consistent with the level of care, diligence and skill ordinarily possessed and
exercised by members of the profession currently practicing in the same locality
under similar conditions. Except as expressly set forth above, no other
representations, expressed or implied, and no warranty or guarantee, express or
implied, is included in this Agreement, or in any document, drawing, sketch,
study, analysis, schedule, estimate, report, opinion, specification and other
item prepared or furnished by TRANSYSTEMS (or TRANSYSTEMS’ independent
professional associates and TRANSYSTEMSs) pursuant to this Agreement.

 

Section
7.5                                   Limitation of Responsibility, Job Site
Safety/Techniques. Neither the professional activities of
TRANSYSTEMS, nor the presence of TRANSYSTEMS or its 

 

 

employees and subconsultants at a
construction/project site, shall relieve the General Contractor of its
obligations, duties and responsibilities including, but not limited to,
construction means, methods, sequence, techniques or procedures necessary for
performing, superintending and coordinating the Work in accordance with the
contract documents and any health or safety precautions required by any regulatory
agencies. TRANSYSTEMS and its personnel have no authority to exercise any
control over any construction contractor or its employees in connection with
their work or any health or safety programs or procedures. The Client agrees
that the General Contractor shall be solely responsible for jobsite safety, and
warrants that this intent shall be carried out in the Client’s contract with
the General Contractor. The Client also agrees that the Client, TRANSYSTEMS and
the TRANSYSTEMS’ subconsultants shall be indemnified by the General Contractor
and shall be made additional insureds under the General Contractor’s policies
of general liability insurance. In addition, TranSystems shall not be
responsible for (i) the failure of any other project party to fulfill their
respective contractual responsibilities and obligations to client or to comply
with Federal, State or local laws, rules, regulations or codes; (ii) for the
schedules of any of the other project parties or the failure of any of the
other project parties to carry out their work in accordance with their
respective agreements. TranSystems shall not have control over or charge of and
shall not be responsible for acts or omissions of the other project parties, or
their agents or employees, or of any other persons performing portions of the
work on the project.

 

Section 7.6                                   Insurance.

 

Section
7.6.1                         TranSystems Insurance. TRANSYSTEMS
shall maintain throughout the duration of this Agreement insurance in the
following amounts and will, upon request of the CLIENT furnish a copy of
certification thereof:

 

(a)          Worker’s Compensation
and Employer’s Liability

Worker’s Compensation Statutory

Employer’s Liability

$500,000/$500,000/$500,000

 

(b)         Comprehensive Automobile
Liability

$1,000,000 combined single limit Bodily Injury and Property Damage

 

(c)          Comprehensive General
Liability

$1,000,000 - per occurrence

$2,000,000 - annual aggregate

$2,000,000 - product / completed operations
per occurrence

$1,000,000 - personal injury / advertising
liability

 

(d)         Umbrella/Excess Liability

$1,000,000 - per occurrence

$1,000,000 - annual aggregate

 

(e)          Professional Liability
Insurance in an amount of $1,000,000 per claim and annual aggregate.

 

 

Section
7.6.2                         Client Insurance. If, pursuant to
the provisions of Exhibit B, CLIENT is required to obtain certain insurance
coverages, CLIENT agrees to obtain and maintain throughout the duration of this
Agreement (or, as applicable, cause its contractors to obtain and maintain)
such insurance in the coverages and the amounts specified on Exhibit B. CLIENT
will furnish TRANSYSTEMS with a copy of certification of such insurance.
TRANSYSTEMS’ interests shall be covered under any such insurance coverage.

 

Section 7.7                                   Liability and
Indemnification.

 

Section
7.7.1                         General. Having considered the potential
liabilities that may exist during the performance of the Services, the benefits
of the Project, and TRANSYSTEMS’ Compensation for the performance of the
Services, and in consideration of the promises contained in this Agreement,
CLIENT and TRANSYSTEMS agree to allocate and limit such liabilities in
accordance with the provisions of this Section 7.7.

 

Section
7.7.2                         TranSystems
Indemnification.

 

TRANSYSTEMS agrees, to the fullest extent
permitted by law, to indemnify and hold the CLIENT harmless from any damage,
liability or cost (including reasonable attorney’s fees and costs of defense)
to the extent caused by TRANSYSTEMS’ negligent acts, errors or omissions in the
performance of professional services under this Agreement and those of its
subconsultants or anyone for whom TRANSYSTEMS is legally liable. TRANSYSTEMS is
not obligated to indemnify the CLIENT in any manner whatsoever for the CLIENT’S
own negligence.

 

Section
7.7.3                         Client Indemnification. The CLIENT
agrees, to the fullest extent permitted by law, to indemnify and hold
TRANSYSTEMS harmless from any damage, liability or cost (including reasonable
attorney’s fees and costs of defense) to the extent caused by the CLIENT’S
negligent acts, errors or omissions and those of its contractors, subcontractors
or consultants or anyone for whom the CLIENT is legally liable, and arising
from the project that is the subject of this Agreement. The CLIENT is not
obligated to indemnify TRANSYSTEMS in any manner whatsoever for TRANSYSTEMS’
own negligence.

 

Section
7.7.4                         Contractors Indemnification. CLIENT
agrees to cause each of its other contractors on the Project to include an
indemnification provision in CLIENT’s contract with each such contractor that
indemnifies and holds harmless TRANSYSTEMS and any of its officers or employees
from all loss, damage, cost or expense to the extent caused by such contractors
(or its employees or subcontractors) negligence or willful misconduct.

 

Section
7.7.5                         Employee Claims. TRANSYSTEMS shall
indemnify CLIENT against any loss, damage, cost or expense arising out of
claims by TRANSYSTEMS’ employees (unless such claim arises out of or as a
result of the negligence of CLIENT, its employees, agents or contractors).
CLIENT shall indemnify TRANSYSTEMS against any loss, damage, cost or expense
arising out of claims by CLIENT’S employees (unless such claim arises out of or
as a result of the negligence of TRANSYSTEMS, it’s employees, agents or
subcontractors).

 

 

Section
7.7.6                         Consequential Damages. To the
fullest extent permitted by law, TRANSYSTEMS shall not, in any event, be liable
to CLIENT for any special, indirect, incidental or consequential damages,
including, but not limited to, damages from delay, distribution, loss of
product, loss of use, loss of profits or revenue or increased cost of
operation, the cost of capital or the cost of purchased or replacement
equipment, systems or power.

 

Section
7.7.7                         Limitation of Liability. To the
fullest extent permitted by law, TRANSYSTEMS’ total liability to CLIENT for all
claims, losses, damages and expenses resulting or arising in any way from the
performance of the Services (including TRANSYSTEMS’ indemnity obligations
hereunder) shall not exceed the total compensation received by TRANSYSTEMS
under this Agreement or the limits of any professional liability requirements
set forth in Section 7.6.1(e) whichever is less.

 

Section
7.7.8                         Survival. The terms and conditions
of this Section 7.7 shall survive the termination of this Agreement and/or the
completion of the Services.

 

Section
7.7.9                         Betterment. If, due to
TRANSYSTEMS’s negligence, a required item or component of the Project is
omitted from TRANSYSTEMS’s construction documents, TRANSYSTEMS shall not be
responsible for paying the cost required to add such item or component to the
extent that such item or component would have been required and included in the
original construction documents. In no event will TRANSYSTEMS be responsible
for any cost or expense that provides betterment or upgrades or enhances the
value of the Project.

 

Section
7.7.10                  Protection From Supplanting Consultant.
In consideration of the risks and rewards involved in this Project, the Client
agrees, to the maximum extent permitted by law, to indemnify and hold harmless
TRANSYSTEMS from any damages, liabilities or costs, including reasonable
attorneys’ fees and defense costs, arising or allegedly arising from any
negligent acts, errors or omissions by any prior consultants employed by the
Client on this project and from any claims of copyright or patent infringement by
TRANSYSTEMS arising from the use of any documents prepared or provided by the
Client or any prior consultants of the Client. The Client warrants that any
documents provided to TRANSYSTEMS by the Client or by the prior consultants may
be relied upon as to their accuracy and completeness without independent
investigation by the supplanting consultant and that the Client has the right
to provide such documents to the supplanting consultant free of any claims of
copyright or patent infringement or violation of any other party’s rights in
intellectual property.

 

SECTION 8

SPECIAL PROVISIONS, EXHIBITS AND SCHEDULES

 

Section
8.1                                   Special Provisions. This Agreement is subject
to no special provisions. All terms are identified in the contract and the
attached proposal letter.

 

Section
8.2                                   Contract Documents. This Agreement
consists of this contract document and the following Exhibits and Schedules,
which are attached to and made a part of this Agreement:

 

 

Exhibit A -
Project Description and Basic Services

Exhibit B -
CLIENT’s Duties

Schedule 1 -
TRANSYSTEMS’ Schedule of Rates and Expenses

 

Section
8.3                                   Entire Agreement. This Agreement
together with the Exhibits and Schedules identified above constitute the entire
agreement between CLIENT and TRANSYSTEMS and supersede all prior written or
oral understandings. This Agreement and said Exhibits and Schedules may only be
amended, supplemented, modified, or canceled by a duly executed written
instrument.

 

Nothing contained in this Agreement shall
create a contractual relationship with or a cause of action in favor of a third
party against either the Client or TRANSYSTEMS. TRANSYSTEMS’ services under
this Agreement are being performed solely for the Client’s benefit, and no
other party or entity shall have any claim against TRANSYSTEMS because of this
Agreement or the performance or nonperformance of services hereunder. The
Client and TRANSYSTEMS agree to require a similar provision in all contracts
with contractors, subcontractors, subconsultants, vendors and other entities involved
in this Project to carry out the intent of this provision.

 

TRANSYSTEMS shall not be required to execute
any documents subsequent to the signing of this Agreement that in any way
might, in the sole judgment of TRANSYSTEMS, increase the Consultant’s
contractual or legal obligations or risks, or adversely affect the availability
or cost of its professional or general liability insurance.

 

Section
8.4                                   Hazardous Materials. Unless
otherwise provided in this Agreement, TRANSYSTEMS shall have no responsibility
for the discovery, presence, handling, removal or disposal of or exposure of
persons to hazardous materials in any form at the Project site. However,
TRANSYSTEMS shall report to CLIENT the presence and location of any hazardous
material which it notices or which an engineer of similar skill and experience
should have noticed.

 

Section
8.5                                   Attorneys Fees. In the event that
either party hereto employs an attorney to enforce any provision of this
Agreement or to collect damages for default or breach of this Agreement, or
pursue claims in litigation or arbitration, the prevailing party in any such
action shall be entitled to recover from the other such attorneys’ fees and
costs of collection as the prevailing party may expend or incur with respect
thereto. In the event that a settlement is reached between the parties before a
final decision in any such litigation or arbitration, then neither party shall
be entitled to recover its attorneys fees or costs from the other and neither
party shall be responsible for the other party’s attorney’s fees or costs,
unless otherwise agreed by the parties.

 

Section
8.6                                   Disputes. In the event a dispute
arises between TRANSYSTEMS and CLIENT regarding the application or
interpretation of any provision of this Agreement, or quality of Services by
TRANSYSTEMS, the aggrieved party shall promptly notify the other party to this
Agreement of the dispute, but in no event more than 20 days after such dispute
arises. If the parties fail to resolve the dispute within 20 days after receipt
of such notice, each 

 

 

party shall, within five days thereafter,
proceed to non-binding mediation, with each party to bear its own costs and
attorneys’ fees (except as otherwise provided in Section 8,5 above) and the
parties shall share equally in the cost of the mediator. In the event that the
mediation is unsuccessful, the aggrieved party may elect to litigate its
dispute with the other party. All disputes shall be governed by the laws of the
State of Missouri and the jurisdiction and venue for litigation between the
parties shall be solely and exclusively in Jackson County, Missouri, or the
United States District Court for the Western District of Missouri.

 

It is intended by the parties to this
Agreement that TRANSYSTEMS’ services in connection with the Project shall not
subject TRANSYSTEMS’ individual employees, officers or directors to any
personal legal exposure for, the risks associated with this Project. Therefore,
and notwithstanding anything to the contrary contained herein, the Client agrees
that as the Client’s sole and exclusive remedy, any claim, demand or suit shall
be directed and/or asserted only against TRANSYSTEMS, an interstate
corporation, and not against any of TRANSYSTEMS’ individual employees, officers
or directors.

 

Section
8.7                                   Independent Contractor. TRANSYSTEMS
shall be an independent contractor with respect to the Services to be performed
hereunder. Neither TRANSYSTEMS, nor its independent professional associates,
CONSULTANTS or subcontractors, nor the employees of any of the foregoing, shall
be deemed to be the servants, employees or agents of CLIENT.

 

Section
8.8                                   Representations
and Remedies. TRANSYSTEMS makes no representations, covenants, warranties or
guarantees, express or implied, other than those expressly set forth herein.
IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE
SPECIFICALLY EXCLUDED. The parties’ rights, liabilities, responsibilities and
remedies with respect to the Services, whether in contract or otherwise, shall
be exclusively those expressly set forth in this Agreement.

 

Section
8.9                                   Assignment, Subcontractors. This
Agreement shall not be assignable by either party without the prior written
consent of the other party hereto, except that it may be assigned without such
consent to the successor of either party, or to a person, firm or corporation
acquiring all or substantially all of the business assets of such party or to a
wholly owned subsidiary of either party, but such assignment shall not relieve
the assigning party of any of its obligations under this Agreement. No
assignment of this Agreement shall be valid until this Agreement shall have
been assumed by the assignee. This Agreement shall be binding upon and shall
inure to the benefit of the TRANSYSTEMS’ and CLIENT’s respective successors and
assigns. Nothing in this Section 8.9 shall prevent or be deemed to prevent
TRANSYSTEMS from employing, contracting with or engaging independent
professional associates, CONSULTANTS and other subcontractors to perform or
assist in the performance of the Services.

 

Section
8.10                            Notices. All notices or
communications pertaining to this Agreement shall be in writing and shall be
sufficient when mailed or delivered to the address specified below:

 

 

If to CLIENT:

Illini
Bio-Energy

3600 Wabash Ave.
Suite C

Springfield,
Illinois 62711

Attn: David
Ramsey

 

If to TRANSYSTEMS:

TranSystems
Corporation

2400 Pershing
Road, Suite 400

Kansas City,
MO 64108

Attn: Paul
Hentschke

 

Nothing in this Section 8.10 shall be
construed to restrict the transmission of routine communications between
representatives of CLIENT and TRANSYSTEMS.

 

Section 8.11                            Interpretation.

 

(a)                                                                                                                                                                                  This
Agreement shall be governed by and interpreted in accordance with the laws of
Missouri.

 

(b)                                                                                                                                                                                 Headings
and titles of sections, paragraphs and other subparts of this Agreement are for
convenience of reference only and shall not be considered in interpreting the
text of this Agreement.  Modifications or
amendments to this Agreement must be in writing and executed by duly authorized
representatives of each party.

 

(c)                                                                                                                                                                                  Unless
specifically stated to the contrary therein, indemnities against, releases from
and limitations on liability expressed in this Agreement shall apply even in
the event of the fault, negligence or strict liability of the party indemnified
or released or whose liability is limited and shall extend to the officers,
directors, employees, agents, licensors and related entities of such party.

 

(d)                                                                                                                                                                                 In
the event that any portion or all of this Agreement is held to be void or
unenforceable, the parties agree to negotiate in good faith to reach an
equitable agreement which shall effect the intent of the parties as set forth
in this Agreement.

 

Section
8.12                            Certificates, Guarantees And Warranties. TRANSYSTEMS
shall not be required to sign any documents, no matter by whom requested, that
would result in TRANSYSTEMS having to certify, guarantee or warrant the
existence of conditions whose existence TRANSYSTEMS cannot ascertain. The
Client also agrees not to make resolution of any dispute with TRANSYSTEMS or
payment of any amount due to TRANSYSTEMS in any way contingent upon TRANSYSTEMS
signing any such certification.

 

As used herein, the word “certify” shall mean
an expression of TRANSYSTEMS’ professional opinion to the best of its
information, knowledge and belief, and does not constitute a warranty or
guarantee by TRANSYSTEMS.

 

Section
8.13                            Execution of Documents. TRANSYSTEMS
shall not be required to execute any documents subsequent to the signing of
this Agreement that in any way might, in the 

 

 

sole judgment of TRANSYSTEMS, increase the
TRANSYSTEMS’ risk or the availability or cost of its professional or general
liability insurance.

 

 

IN WITNESS WHEREOF, the parties
hereto have made and executed this Agreement as of the 16th day of
Sept. 2005.

 

 

	
  Illini Bio-Energy

  	
  TranSystems Corporation

  
	
   

  	
   

  
	
  By: 

  	
  /s/ David
  Ramsey

  	
   

  	
  /s/ Timothy
  P. Rock

  	
   

  
	
   

  	
   

  
	
  Printed
  Name: David Ramsey

  	
  Printed
  Name: Timothy P. Rock

  
	
   

  	
   

  
	
  Title:
  Vice-President

  	
  Title:
  Assistant Vice President

  
					

 

 

EXHIBIT “A”

 

Basic Services

 

 

September 15, 2005

 

Mr. David Ramsey

Illini Bio-Energy

3600 Wabash Ave. Suite C

Springfield, Illinois 62711

 

RE:                            Proposal for
conceptual design layout of track structure for Illini Bio-Energy Ethanol
Facility located in Hartsburg, Illinois.

 

Dear Mr. Ramsey:

 

TranSystems is pleased to
submit this proposal to provide conceptual engineering services for the above
referenced project. We understand that Illini Bio-Energy would like to look at
putting an ethanol plant in Hartsburg Illinois with rail service to the
facility coming off the CN main line.

 

This letter describes the
services TranSystems proposes to perform in connection with the project, the
fee at which TranSystems proposes to perform the services, and the assumptions
on which the proposal is based. If the proposed outline in this letter is
acceptable to Illini BioEnergy, TranSystems requests that you indicate
acceptance of this proposal by executing this letter agreement

 

SCOPE OF SERVICES

 

In connection with the above
referenced project, Transystems shall perform the following described services:

 

•                  Set
the proposed track alignments to hold 25 cars each.

•                  Have
a track in, a track out and a loaded track.

•                  Set
these proposed tracks to be able to expand to 75 cars each in the future.

•                  An
exhibit, cost estimate and car movement narrative will be delivered.

 

Assumptions:

 

•                  CN
will not do a 75 car unit train at this time

•                  CN
will do 25 cars at a time right now.

•                  When
I set this design I am planning on starting with a 75 car loop and backing it
off to 25 cars per track.

 

 

COMPENSATION

 

As compensation for the
performance of the above described Services, TranSystems will be reimbursed by
Illini Bio-Energy by payment of a lump sum fee of $3,500.00. A Schedule of
Rates is attached to this proposal. Invoices will be sent monthly and will be
based on TranSystems’ estimate of the total services completed at the time of
billing.

 

We sincerely appreciate the
opportunity to work with you on this Project. If you concur with the proposal
outlined in this Letter Agreement, please execute the enclosed copy and send it
to TranSystems. Unless otherwise instructed by Illini Bio-Energy in writing,
TranSystems will consider the executed Letter Agreement as our notice to
proceed. Please let us know if you have any questions or need any further
information.

 

If you have any questions or
would like to discuss this proposal, please don’t hesitate to call me at (816)
329-8645 (office) or (913) 915-1988 (mobile).

 

Sincerely,

TranSystems Corporation

 

 

	
  /s/ Paul R.
  Hentschke

  	
   

  
	
   

  
	
  Paul R.
  Hentschke

  
	
  cc: File

  

 

 

EXHIBIT “B”

 

Schedule Of Rates And Expenses

 

	
   

  	
   

  	
  2005 Hourly Rates

  	
   

  
	
  Principal/Engineer
  V

  	
   

  	
  $

  	
  216

  	
   

  
	
  Engineer
  IV

  	
   

  	
  $

  	
  159

  	
   

  
	
  Engineer
  III

  	
   

  	
  $

  	
  114

  	
   

  
	
  Engineer
  II

  	
   

  	
  $

  	
  93

  	
   

  
	
  Engineer
  I

  	
   

  	
  $

  	
  78

  	
   

  
	
  Architect
  IV

  	
   

  	
  $

  	
  155

  	
   

  
	
  Architect
  III

  	
   

  	
  $

  	
  103

  	
   

  
	
  Planner
  IV

  	
   

  	
  $

  	
  161

  	
   

  
	
  Planner
  III

  	
   

  	
  $

  	
  119

  	
   

  
	
  Planner
  II

  	
   

  	
  $

  	
  77

  	
   

  
	
  Planner I

  	
   

  	
  $

  	
  67

  	
   

  
	
  Scientist
  IV

  	
   

  	
  $

  	
  159

  	
   

  
	
  Scientist
  III

  	
   

  	
  $

  	
  98

  	
   

  
	
  Scientist
  II

  	
   

  	
  $

  	
  77

  	
   

  
	
  Scientist
  I

  	
   

  	
  $

  	
  67

  	
   

  
	
  Technician
  V

  	
   

  	
  $

  	
  132

  	
   

  
	
  Technician
  IV

  	
   

  	
  $

  	
  90

  	
   

  
	
  Technician
  III

  	
   

  	
  $

  	
  76

  	
   

  
	
  Technician
  II

  	
   

  	
  $

  	
  63

  	
   

  
	
  Technician
  I

  	
   

  	
  $

  	
  54

  	
   

  
	
  Surveyor
  IV

  	
   

  	
  $

  	
  105

  	
   

  
	
  Surveyor
  III

  	
   

  	
  $

  	
  76

  	
   

  
	
  Surveyor
  II

  	
   

  	
  $

  	
  55

  	
   

  
	
  Surveyor
  I

  	
   

  	
  $

  	
  47

  	
   

  
	
  Three-Person
  Survey Crew

  	
   

  	
  $

  	
  180

  	
   

  
	
  Two-Person
  Survey Crew

  	
   

  	
  $

  	
  128

  	
   

  
	
  Inspector
  V

  	
   

  	
  $

  	
  162

  	
   

  
	
  Inspector
  IV

  	
   

  	
  $

  	
  102

  	
   

  
	
  Inspector
  III

  	
   

  	
  $

  	
  76

  	
   

  
	
  Inspector
  II

  	
   

  	
  $

  	
  63

  	
   

  
	
  Inspector
  I

  	
   

  	
  $

  	
  53

  	
   

  
	
  Administrator
  IV

  	
   

  	
  $

  	
  158

  	
   

  
	
  Administrator
  III

  	
   

  	
  $

  	
  120

  	
   

  
	
  Administrator
  II

  	
   

  	
  $

  	
  59

  	
   

  
	
  Administrator
  I

  	
   

  	
  $

  	
  51

  	
   

  
	
  Clerical
  III

  	
   

  	
  $

  	
  67

  	
   

  
	
  Clerical
  II

  	
   

  	
  $

  	
  57

  	
   

  
	
  Clerical
  I

  	
   

  	
  $

  	
  45

  	
   

  

 

Sub-contracted labor, material testing equipment, printing and
technical photography and all other direct job costs to be paid at cost.

 

Vehicle mileage to be paid at the current IRS
rate per mile.

 

The rates set forth on this initial Schedule
of Rates shall be the rates provisions in effect from the date of this
Agreement until December 31 of this year.

 

TranSystems
will revise the Schedule of Rates annually and will submit the revised Schedule
of Rates which shall automatically become effective with regard to this
Agreement and the Services performed under this Agreement on January 1st
of the next calendar year.Exhibit 10.7

 

[U.S. Energy Logo]

 

ENERGY MANAGEMENT AGREEMENT – ELECTRIC

 

(Site Development and Operations)

 

The purpose of this Agreement is to set forth
the understanding and agreement between U.S. Energy Services, Inc. (“U.S.
Energy”) and Illini Bio-Energy, LLC (“Client”) related to the provision of
energy management services for electric procurement.

 

PROJECT DESCRIPTION:
Client is developing a 50 million gallon per year ethanol plant (“Plant”)
to be located in Logan County, IL. The Plant will have approximately a 6 MW
peak usage in electricity.

 

U.S. ENERGY RESPONSIBILITIES:
U.S. Energy will provide consulting and energy management services for the
supply of electricity for the Plant. These services will be provided during the
construction of the Plant (“Construction Period”), and after the Construction
Period when the Plant has been placed in service (“Completion Date”). The
Completion Date shall be determined when the Plant begins producing ethanol.
These services will be provided to Client upon request:

 

A.            Energy
Infrastructure Advisory Services During the Construction Period

 

1.               Analyze the
electric service proposals along with primary, secondary and generation options
and recommend an electric sourcing strategy and plan. The plan may include a
combination of electric supplier agreement and/or installation of on-site
generation

 

2.               Analyze the
electric service proposals along with primary, secondary and generation options
and recommend an electric sourcing strategy and plan. The plan may include a
combination of electric supplier agreement and/or installation of on-site
generation.

 

3.               Negotiate final
electric service agreements that meet the pricing and reliability requirements
of Client.

 

4.               Prepare and
implement a regulatory strategy, if required and, if an alternative power
supplier is selected. Any attorney fees required for the specific purpose of
obtaining regulatory approval for an alternative power supplier, if any, will
be over and above U.S. Energy’s monthly fee herein, and must be pre-approved by
Client.

 

5.               Evaluate the
proposed electric distribution infrastructure (substation) for reliability,
future growth potential and determination of the division of ownership of
facilities between the utility and the Plant.

 

6.               Investigate
economic development rates, utility grants, equipment rebates and other utility
programs that may be available.

 

 

B.            On-Going
Energy Management Services Following the Completion Period

 

U.S. Energy will provide the following
services at Client’s request:

 

1.                                       Provide electricity
information to minimize the cost of electricity purchased. This will include
acquiring multiple supply quotes and reporting to Client the various supply
index and fixed prices. U.S. Energy will not take title to Client electricity
supplies, but will communicate supply prices and potential buying strategies.

 

2.                                       Negotiate with
utilities and suppliers to provide supply agreements that meet Client’s
performance criteria at the lowest possible cost.

 

3.                                       Develop and
implement a price risk management plan that is consistent with Client’s pricing
objectives and risk profile.

 

4.                                       Provide a
consolidated monthly invoice to Client that reflects all electric energy costs.
U.S. Energy will be responsible for reviewing, reconciling and paying all
shipper, supplier and utility invoices.

 

6.                                       Provide a
monthly usage report of electric energy consumption and costs. Also, where
applicable and available from the utility, obtain monthly interval electric
load data and provide monthly load profile graphs.

 

7.                                       On-going review
and renegotiation of electric service costs, as required. This may include:

 

a.               Completing and evaluating annual
proposals to identify the most reliable and economic third party electric
energy supply.

 

b.              Identifying new service tariffs or
opportunities to renegotiate the service agreement to provide lower costs.

 

c.               Identifying
on-site generation opportunities as market conditions change.

 

d.              Provide
a monthly projection of electricity and annual summaries.

 

8.                                       Provide
electric energy operating budgets for the Plant.

 

9.                                       Perform initial
sales tax exemption audits for energy consumption costs as required and allowed
by state tax laws.

 

TERM:  The initial term of this Agreement shall
commence on August 1, 2005 and continue until twelve (12) months after
that date. The Agreement shall be month-to-month after the initial term. This
Agreement may be terminated by either party effective after the initial term
upon thirty (30) days prior written notice. Following termination, Illini Bio
Energy shall remain responsible for payment and performance associated with any
and all supply transactions entered into by U.S. Energy and authorized by
Illini Bio Energy during the term of this Agreement.

 

 

FEES:  U.S. Energy’s fee for services described
above during the term of this Agreement shall be $1,600 per month, plus
pre-approved travel expenses. If Client experiences significant delays in its
project timeline, after the initial term, and it is necessary for U.S. Energy
to delay work on Client’s energy management activities, U.S. Energy will
suspend its activities and suspend invoicing Client until U.S. Energy’s
activities resume.

 

U.S. Energy’s fee will increase 4% per year
on the annual anniversary date of the effective date of this Agreement.

 

BILLING AND PAYMENT:  On the first of the month, U.S. Energy shall
invoice Client for appropriate energy costs from the previous month and for the
U.S. Energy retainer for the current month. Client shall pay U.S. Energy within
ten (10) days of receipt of invoice.

 

TAXES:  Client will be responsible for payment of all
taxes including, but not limited to, all sales, use, excise, BTU, heating value
and other taxes associated with the purchase and/or transport of electricity
and the provision of services hereunder.

 

CONFIDENTIALITY:  U.S. Energy shall not divulge to any other
person or party any information developed by U.S. Energy hereunder or revealed
to U.S. Energy pursuant to this Agreement, unless such information is (a) already
in U.S. Energy’s possession and such information is not known by U.S. Energy to
be subject to another Confidentiality Agreement, or (b) is or becomes
generally available to the public other than as a result of an unauthorized
disclosure by U.S. Energy, its officers, employees, directors, agents or its advisors,
or (c) becomes available to U.S. Energy on a non-confidential basis from a
source which is not known to be prohibited from disclosing such information to
U.S. Energy by legal, contractual or fiduciary obligation to the supplier, or (d) is
required by U.S. Energy to be disclosed by court order, or (e) is
permitted by Client. All such information shall be and remain the property of
Client unless such information is subject to another Confidentiality Agreement,
and upon the termination of this Agreement, U.S. Energy shall return all such
information upon Client’s request. Notwithstanding anything to the contrary
herein, U.S. Energy shall not disclose any information which is in any way
related to this Agreement or U.S. Energy’s services hereunder without first
discussing such proposed disclosure with Client.

 

NOTICES:  Any formal notice, request or demand which a
party hereto may desire to give to the other respecting this Agreement shall be
in writing and shall be considered as duly delivered as of the postmark date
when mailed by ordinary, registered or certified mail by said party to the
addresses listed below. Either party may, from time-to-time, identify alternate
addresses at which they may receive notice during the term of this Agreement by
providing written notice to the other party of such alternate addresses.

 

	
  Client:

  	
   

  	
  Illini Bio-Energy, LLC

  
	
   

  	
   

  	
  Attn: Ernest Moody

  
	
   

  	
   

  	
  Suite C

  
	
   

  	
   

  	
  3600 Wabash Avenue

  
	
   

  	
   

  	
  Springfield, IL 62711

  

 

 

	
  U.S. Energy:

  	
   

  	
  U.S. Energy Services, Inc.

  
	
  (Payment)

  	
   

  	
  c/o US Bank SDS 12-1449

  
	
   

  	
   

  	
  Account #: 173100561153

  
	
   

  	
   

  	
  P.O. Box 86

  
	
   

  	
   

  	
  Minneapolis, MN 55486

  
	
   

  	
   

  	
   

  
	
  (Notices):

  	
   

  	
  U.S. Energy Services, Inc.

  
	
   

  	
   

  	
  1000 Superior Blvd, Suite 201

  
	
   

  	
   

  	
  Wayzata, MN 55391

  
	
   

  	
   

  	
  Attn: Contract Administration

  

 

ASSIGNMENT OR AMENDMENT:  The Agreement may not be assigned or
amended without the written consent of U.S. Energy and Client.

 

APPLICABLE LAW:  The Agreement shall be construed in
accordance with the laws of the State of Minnesota.

 

ENTIRE AGREEMENT:  This Agreement constitutes the entire
Agreement among the parties pertaining to the subject matter hereof and
supersedes all prior Agreements and understanding pertaining hereto.

 

Agreed to and Accepted by:

 

	
  Illini Bio-Energy, LLC

  
	
   

  
	
  By:

  	
   /s/ Ernest D. Moody

  	
   

  
	
   

  
	
  Name: Ernest D. Moody

  
	
  (Print)

  
	
   

  
	
  Title: President

  
	
  Date: August 10, 2005

  
	
   

  
	
  U.S. Energy Services, Inc.

  
	
   

  
	
  By:

  	
   /s/ Todd D. Overgard

  	
   

  
	
   

  
	
  Name: Todd D. Overgard

  
	
  (Print)

  
	
   

  
	
  Title: VP-Operations

  
	
  Date: 8/17/05

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]