Document:

Exhibit 10.8

 

[Flolo-Thompsin, Inc.
logo]

 

January 16,
2004

 

Consulting Agreement

 

Flolo-Thompson, Inc.
hereby agrees to supply consulting services to Illini Bio Energy.  This agreement is effective immediately and
will remain in effect until cancelled or amended in writing.

 

Services provided by Flolo-Thompson, Inc.
include:

•                  Railroad
infrastructure analysis

•                  Logistics
planning

•                  Market
analysis

•                  Grain
movement analysis

•                  Railroad
rate and contract negotiations

 

Fee structure

•                  $75.00
per hour

•                  $750.00
per day

•                  Out-of-pocket
expenses will be charged back

 

Flolo-Thompson, Inc.
will issue an invoice at the end of each month.

 

We look
forward to furthering your business goals. 
Thank you.

 

	
  Signed,

  	
  Signed,

  
	
   

  	
   

  
	
   /s/
  David E. Thompson

  	
   

  	
  /s/ David Ramsey

  
	
   

  	
   

  
	
  David E. Thompson

  	
  Dave Ramsey

  
	
  Flolo-Thompson, Inc.

  	
  Illini Bio Energy

  
	
  25 Park Lane Suite #2

  	
  332 North Park

  
	
  Glenwood, MN 56334

  	
  Rochester, IL 62563

  
	
  320-634-3309

  	
  217-836-8284Exhibit
10.9

 

November 10, 2005

 

Ernest Moody

Illini Bio-Energy

3600 Wabash Ave

Suite C

Springfield, IL 62711

 

Subject:  Proposal to assist Illini Bio-Energy in
obtaining their Illinois EPA permits

 

Dear Mr. Moody:

 

As we have previously discussed, Illini Bio-Energy intends to construct
a 50+ million gallon per year ethanol plant in Illinois and will require a
permit from the Illinois EPA for the air emissions. I believe that I can be of
assistance in guiding Illini Bio-Energy and its team through this process and
all of its various requirements given that I have over 30 years of experience
working in the Illinois EPA’s Bureau of Air, most recently as Chief of the
Bureau. I left the Illinois EPA at the end of 2004 and now provide the type of
assistance to business and industry that I propose to provide Illini
Bio-Energy. My resume is attached.

 

My understanding from various discussions with you and Illini
Bio-Energy’ Board of Directors is that Illini Bio-Energy plans to construct a
nominal 55 million gallon per year ethanol plant in Logan County which will
market this product in Illinois and elsewhere in the Country for use as a clean
burning transportation fuel. In addition, the process will produce a marketable
co-product in the form of ~170,000 tons annual of distillers dried grains that
can be used as a feed supplement for livestock and poultry. The plant will be
coal-fired and will be categorized by the USEPA and the Illinois EPA as a major
source of air pollutants and will need to be permitted accordingly. Since the
Logan County area is designated as in attainment for all of the criteria air
pollutants for which the USEPA has issued National Ambient Air Quality
Standards, the USEPA’s Prevention of Significant Deterioration (“PSD”) program
requirements will apply. This increases the complexity of the permitting
process but provides much greater operating flexibility. The Illinois EPA is
delegated authority by the USEPA to implement the PSD program in Illinois and
will issue a construction permit for the plant that incorporates all of the
federal and State air permitting requirements. One requirement of the
permitting process that will need to be addressed as part of the permitting
process is to consult with the Illinois Department of Natural resources and the
US Fish and Wildlife Service to evaluate the potential impact that the plant
might have on threatened and endangered species.

 

The Illinois Environmental Protection act requires the Illinois EPA to
issue this type of permit in 6 months from the time a complete permit
application is received. In practice, the time is often exceeded. The Illinois
EPA’s processing time will depend upon a number of factors only some of which
are fully and directly within the control of Illini Bio-Energy. The quality and
completeness of the permit application itself will be vital and Illini
Bio-Energy will need to be prepared to quickly respond to any Illinois EPA
questions or information requests. Illinois EPA’s ability to process this
permit will also depend upon the way they staff this permit application review
and the speed with which they begin their review. If the Illinois EPA
understands the 

 

 

time critical nature of this permit transaction, they are capable of
taking steps to expedite the processing.

 

I have reviewed the Illinois EPA’s approach to several other ethanol
plant permit applications and have a broad overview from my prior experience of
factors and events that could influence the processing time for the permit.
From this basis, I have outlined a scope of the services that I could provide
to aid Illini Bio-Energy in obtaining their air permit.

 

The rest of this correspondence provides a brief scope of the services
I could provide.

 

OBJECTIVE

 

To assist Illini Bio-Energy to obtain, from the Illinois EPA, the air
pollution control permit for their ethanol plant on a schedule and in a
timeframe compatible with the overall timeline and goals of the project.

 

SCOPE OF SERVICES

 

1.               Assist in developing a strategy for
obtaining the permit.

 

2.               Provide information and advice on
various aspects of the Illinois EPA permitting process sufficient to develop an
informed and reasonable approach to timely acquiring the permit.

 

3.               Communicate with the Board of Directors
and their team of consultants regarding any procedural or technical questions
regarding the preparation of the permit application or supporting documents.

 

4.               Arrange meetings, as necessary or
required, with appropriate Illinois EPA personnel, Department of Commerce and
Economic Opportunity staff, or pertinent Governor’s Office staff.

 

5.               Review the permit application, draft
permit, and other pertinent information and provide expert advice as warranted.

 

6.               Monitor the progress of the permit
review process with key Illinois EPA staff to ensure that progress is ongoing
and the project schedule is maintained. As necessary, this can include
on-site visits with keep Illinois EPA permit staff to review progress but will
also include telephone calls and E-mails structured and timed in such a way to
maintain steady progress without being a nuisance.

 

7.               Assist in communicating the plans for
this project and their benefits to local, State, and federal officials.

 

8.               Work with appropriate individuals to
determine and mitigate any concerns regarding threatened and endangered species
for this permitting transaction.

 

2

 

9.               Provide strategic planning and technical
consulting advice on any matters regarding air compliance or enforcement issues
associated with the planned Illini Bio-Energy facility.

 

10.         Aid in the preparation for the public hearing
that will be held for this project.

 

PROFESSIONAL FEES

 

All services will be provided at the rate of $100 per hour. Any travel
expenses beyond 25 miles of Springfield, IL will be billed at actual cost.
Monthly invoices will be provided identifying the date, hours spent, and a
brief description of the work performed for each day worked on this matter.
Such invoices will include any costs or expenses incurred that are related to
this project.

 

Thank you for the opportunity to provide this proposal for your
consideration. This is an exciting project that will provide various benefits
to the people of Illinois while helping to address the serious energy concerns
facing this country. I believe I can provide valuable assistance in bringing
the permitting component of the project to a successful and timely conclusion.
Please let me know if you have any questions.

 

Sincerely,

 

	
  /s/ David J. Kolaz

  	
   

  
	
   

  
	
  David J. Kolaz

  
	
  800 N. Allen Drive

  
	
  Athens, IL 62613

  
	
  (217) 636-8748

  
	
  (217) 971-3357 mobile

  
	
  davekolaz@gcctv.com

  

 

 

Proposal Acceptance

 

 

	
  /s/ Ernest Moody

  	
   

  
	
  Ernest Moody

  
	
  Illini Bio-Energy

  
	
  3600 Wabash Ave

  
	
  Suite C

  
	
  Springfield, IL 62711

  

 

3Exhibit 10.10

 

CONSULTING AGREEMENT.

 

This
Consulting Agreement (the “Agreement”) is made this 28th day of September ,
2004 (the “Effective Date”), by and between BioEnergy
Capital Consultants, LLC, a South Dakota limited liability company,
with an address of 44095 212th Street, Lake Preston, South Dakota
57249 (“BioEnergy”), and Illini Bio-Energy,
an Illinois cooperative, with an address of Suite C, 3600 Wabash Avenue,
Springfield, Illinois 62711 (“Client”).

 

RECITALS:

 

A.                                   Client intends to
develop, finance and construct an ethanol plant in or near Springfield,
Illinois (the “Project”).

 

B.                                     BioEnergy has a
background in the development of value-added agriculture projects and is
willing to provide services to Client based on this background.

 

NOW,
THEREFORE, in. consideration of the mutual promises and agreements contained
herein, Client engages BioEnergy, and BioEnergy accepts engagement, upon the
terms and conditions hereinafter set forth.

 

1.                                       Term.  BioEnergy’s engagement with Client shall
commence as of the Effective Date and shall continue at least through the first
day after the Loan Closing Date (as defined in Section 3), unless properly
terminated as provided herein.  BioEnergy
may terminate its services upon fourteen (14) days prior written notice to Client.  Client may only terminate BioEnergy’s
services for “Cause.”  For purposes of
this Agreement, “Cause” means BioEnergy’s gross negligence or intentional
misconduct in the performance of its duties under this Agreement, a known
violation of the law, or a material breach of this Agreement by BioEnergy.

 

Upon
termination, neither Client nor BioEnergy shall have any further rights or
obligations under the terms of this Agreement other than delivery of payments
for services and/or bonus payments to which BioEnergy may be entitled through
the date of termination.

 

2.                                       Services.  BioEnergy shall serve as Client’s Project
consultant.  “BioEnergy’s service
providers (described in Section 7 of this Agreement) shall perform the
following duties incident to that service subject to Client’s approval:

 

a.                                       Assist
negotiations of contracts with various service and product providers;

 

b.                                      Assist the
planning of the Clients’ equity marketing effort, including, without
limitation, preparation of written and visual equity marketing materials
(including, but not limited to, a power point presentation), and training
Client’s officers and directors to conduct Client’s equity marketing effort;

 

c.                                       Assist the
securing of debt financing for the commencement of construction of the Project;

 

 

d.                                      Assist the
education of local lenders including, without limitation, the preparation of a ““banker’s
book” tailored to the Project; and

 

e.                                       Perform such
other reasonably necessary duties as Client may request for the timely and
successful securing of debt financing and commencement of construction of the
Project, including without limitation, cooperating with the Client’s personnel
similarly engaged.  Notwithstanding the
forgoing, neither BioEnergy, its members, managers, officers, employees, nor
agents shall itself or themselves be asked to, or actually, solicit an offer to
buy, or accept an offer to sell, any equity security to be issued by Client.

 

For purposes
of this Agreement, the parties agree that the figures set forth in Schedule A
to this Agreement represent the equity goal and debt financing goal of Client
for the Project.  Client may adjust the
equity goal and debt financing goal downward upon notice to BioEnergy.  Any increase in the equity goal and debt
financing goal is subject to the mutual consent of both parties.

 

Subject to
Client’s approval, BioEnergy shall determine the manner in which the services
are to be performed and the specific hours to be worked by BioEnergy.  Client shall rely on BioEnergy to work as
many hours as may be reasonably necessary to fulfill BioEnergy’s commitments
under this Agreement.

 

3.                                       Payment.

 

a.                                       Client shall pay
to BioEnergy a one-time commitment fee of Twenty Five Thousand Dollars
($25,000.00) on the Effective Date.

 

b.                                      Client shall pay
to BioEnergy One Thousand Five Hundred Dollars ($1,500.00) per week as payment
for services commencing upon the Effective Date and continuing through the
first date after Client’s equity drive for the Project has been closed and the
parties mutually agree that all administrative details related thereto have
been concluded (the “Equity Drive Closing Date”).  The Equity Drive Closing Date shall be at
least two full weeks following the end of the week in which Client receives the
subscription agreement that achieves the equity goal necessary for the
successful completion of the Project, as set forth in Schedule A.  Fees required to be paid under this paragraph
3b may be interrupted during “seasonal events” such as planting, harvesting and
major holiday periods to include Thanksgiving week and the Christmas and New
Years’ holidays (December 20 through January 5).  The planning season is generally identified
as April 17 through June 10, and the harvesting season is generally
identified as September 20 through October 31.  “Seasonal events” shall also occur at such
other times as the parties may mutually agree. 
During these periods, Client shall pay to BioEnergy Three Hundred
Seventy Five Dollars ($375.00) per day for the days that services are rendered,
not to exceed One Thousand Five Hundred Dollars ($l, 500.00) 

 

2

 

per week (Sunday through Saturday) even though BioEnergy may perform
services for more than four days during such weeks.

 

c.                                       After the Equity
Drive Closing Date and continuing through the first date after Client closes a
loan transaction to finance construction of the Project (the “Loan Closing Date”),
Client shall pay BioEnergy Three Hundred Seventy Five Dollars ($375.00) per day
for specifically identified services rendered on certain dais.  Payments shall be payable within fourteen
(14) days of Client’s receipt of a detailed invoice from BioEnergy which
outlines the services provided during the pay period.  Upon termination of this Agreement, payments
under this subsection shall cease; provided, however, that BioEnergy shall
be entitled to payments for periods or partial periods that occurred prior to
the date of termination for which BioEnergy has not been paid, and for the
bonus payment or portion thereof described in subsection 3d of this
Agreement.

 

d.                                      Client shall pay
to BioEnergy a one-time conditional bonus of One Hundred Twenty Five Thousand
Dollars ($125,000.00) on the Loan Closing Date. 
In the event of an early termination of this Agreement, the following
shall apply with respect to the Bonus:

 

(i)                                     If Client
terminates this Agreement for Cause prior to the Equity Drive Closing Date,
Client shall pay to BioEnergy a percentage of the Bonus equal to the percentage
of the equity goal that has been subscribed to as of the date of
termination.  Such partial Bonus shall be
payable on the Loan Closing Date.

 

(ii)                                  If the Client
terminates this Agreement for Cause after the Equity Drive Closing Date, but
prior to the Loan Closing Date, Client shall pay to BioEnergy 100% of the Bonus
on the Loan Closing Date.

 

(iii)                               If BioEnergy terminates
this Agreement prior to the Equity Drive Closing Date, Client shall not owe
BioEnergy any portion of the Bonus.

 

(iv)                              if, at any time, Client
terminates this Agreement in bad faith or without Cause, Client shall
immediately pay BioEnergy l00% of the Bonus.

 

Notwithstanding
the foregoing, Client shall have sole discretion in determining whether to
accept a loan commitment or close a loan, and Client shall not become liable to
pay the Bonus, or any portion thereof, if it elects in good faith to not accept
a loan commitment or close a loan.

 

4.                                       Expenses.  Client shall reimburse BioEnergy for all
reasonable, ordinary and necessary expenses incurred by BioEnergy in
performance of its duties hereunder, including without limitation,
reimbursement for automobile mileage at the rate 

 

3

 

periodically set by the Internal Revenue Service.  However, in no case shall any such expense
reimbursements exceed One Thousand Dollars ($1,000.00) average per person per
week averaged over three consecutive weeks.

 

5.                                       Support
Services.  Client shall provide the
following support services for the benefit of BioEnergy, as approved by
Client:  office space, secretarial
support, and office supplies.

 

6.                                       Relationship
of the Parties.  The parties
understand that BioEnergy is an independent contractor with respect to Client,
and not an employee of Client. Client will not provide fringe benefits,
including health insurance benefits, paid vacation, or any other employee
benefits for the benefit of BioEnergy.

 

7.                                       Service
Providers.  Paul Casper and Jack
Porter shall provide the majority of BioEnergy’s services under this
Agreement.  Jack Porter’s duties shall
include assisting in the development of the Project and the organization of
investor meetings.  Paul Casper’s duties
shall include assisting in the organization of investor meetings.  Notwithstanding the foregoing, BioEnergy may
substitute its other personnel to provide BioEnergy’s services under this
Agreement on a limited basis as needed, with Client’s consent.  BioEnergy’s employees, members, or agents who
perform services for Client under this Agreement shall be bound by the terms of
this Agreement.

 

8.                                       Insurance.  BioEnergy and Client shall each obtain,
maintain and keep in full force and effect during the term of this Agreement
the following insurance coverages:

 

a.                                       Commercial
general liability insurance with policy limits that have a combined single
limit of One Million Dollars ($1,000,000.00); and

 

b.                                      Business
automobile liability insurance, covering owned, non-owned and hired vehicles
with a combined single limit of One Million Dollars ($l, 000,000:00).

 

All insurance
provided for in this Section 8 shall be effective under valid and
enforceable policies issued by insurers of recognized responsibility, licensed
to do business in states where the respective parties currently conduct
business.  Each party shall name the
other as an additional insured with respect to each policy.  Each party shall furnish the other with proof
of the payment of all premiums due on said policies of insurance and that the
policies of insurance are in full force and effect.  Each policy or certificate of insurance shall
contain an agreement by the insurer that coverages shall not be cancelled for
any reason without at least 30 days prior written notice to the other party.

 

9.                                       Indemnification.  Client shall indemnify and defend BioEnergy
and its employees, members, managers, officers, and agents against expenses
actually and reasonably incurred in connection with the defense of any
threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative, arbitrative or investigative (a “Proceeding”), in
which BioEnergy and/or its employees, 

 

4

 

members, managers, officers or agents are made a party by reason of
performing services for Client or acting in any manner pursuant to this
Agreement, except that Client shall have no obligation to indemnify and defend
BioEnergy and/or its employees, members or agents for its and/or their act or
omission that involve gross negligence, intentional, misconduct or a known
violation of the law.  BioEnergy shall
indemnify and defend Client and its employees, members, directors, officers and
agents against expenses actually and reasonably incurred in connection with the
defense of any Proceeding in which Client and/or its employees, members,
directors, officers or agents are made a party by reason of BioEnergy and/or
its employees, members, managers, officers or agents commit an act or omission
that involves gross negligence, intentional misconduct or a known violation of
the law.

 

10.                                 Taxes.  Client shall be solely responsible for payment
of all taxes and charges, now or hereafter imposed (whether by federal, state,
municipal or other public authority), by reason of this Agreement or its
performance, including but not limited to, sales or use taxes, but excluding
any income tax imposed upon the net profits of BioEnergy.

 

11.                                 Copyright License.  BioEnergy will author written and visual
equity marketing materials, PowerPoint presentations, advertisements, a “banker’s
book”, training materials and other literary works and audio visual works (the “Proprietary
information”) in fulfillment of its duties hereunder, BioEnergy hereby grants
Client a non-exclusive right and license to use the Proprietary Information for
its business and operations only.  Client
shall not have or acquire any proprietary or other right whatsoever in the
Proprietary Information, except as provided herein, all of which rights belong
exclusively to BioEnergy.  Client shall
not sell, assign, gift, sublicense or otherwise transfer to any third party any
rights in the Proprietary Information without the prior written consent of
BioEnergy, with the granting of said consent to be in BioEnergy’s sole
discretion.

 

12.                                 Successors and
Assigns.  This Agreement shall be
binding upon Client and BioEnergy, their respective heirs, executors,
administrators, successors in interest or assigns, including without limitation
any partnership, corporation or other entity into which Client may be merged or
by which it may be acquired (whether directly, indirectly or by operation of
law), or to which it may assign its rights, under this Agreement.  Notwithstanding the foregoing, any assignment
by BioEnergy of this Agreement or of any interest herein, or of any money due
to or to become due by reason of the terms hereof without the prior written
consent of Client shall be void, unless such assignment is made to Paul Casper
or Jack Porter, or any entity in which either Paul Casper, Jack Porter or
BioEnergy own a majority ownership interest.

 

13.                                 Waiver.  The waiver by either party of its rights under
this Agreement or the failure of a party to promptly enforce any provision
hereof shall not be construed as a waiver of any subsequent breach of the same
or any other covenant, term or provision.

 

5

 

14.                                 Notices.  Any notice required to be given hereunder
shall be in writing and shall be deemed to be sufficiently served by either
party on the other party if such notice is delivered personally or is sent by
certified or first class mail addressed as follows, or such substitute street
addresses as the parties may provide in writing:

 

	
  To
  BioEnergy:

  	
   

  	
  BioEnergy
  Capital Consultants, LLC

  Attn: Paul Casper

  44095 212th Street

  Lake Preston, SD 57249

  
	
   

  	
   

  	
   

  
	
  To Client:

  	
   

  	
  Illini
  Bio-Energy

  Suite C

  3600 Wabash Avenue

  Springfield, Illinois 62711

  

 

15.                                 Applicable Law.  This Agreement and all obligations created
hereunder or required to be created hereby shall be governed by and construed
and enforced in accordance with the laws of the State of Illinois, and the
parties hereby consent that the District court situated in Rock Island County,
Illinois, shall be the exclusive jurisdiction and venue of any disputes
relating to this Agreement.

 

16.                                 Defaults.  In the event of the failure of either of the
parties to comply with any of the terms and provisions of this Agreement, or in
the event either party has violated any of the warranties and representations
made herein by that party, then such party shall be deemed to be in default
hereunder and the other party shall be given written notice of such
noncompliance and shall give the defaulting party seven (7) days from the
date of such notice within which to correct such noncompliance.  If such default has not been corrected, or an
arrangement satisfactory to the complaining party has not been made by the end
of the notice period, then the complaining party may take whatever action is
necessary, and exercise all remedies available in order to protect the
complaining party’s rights under the terms and conditions of this
Agreement.  The parties agree that the
remedies set forth in this Section 15 shall not be exclusive, but they
shall be cumulative with all other rights and remedies available, at law or in
equity, to the parties.  In the event of
any dispute between the parties resulting from this Agreement or any provisions
hereunder, the prevailing party in any such dispute shall be entitled to
recover reasonable attorneys’ fees and such other costs incurred therewith.

 

17.                                 Severability.  In the event that any term, condition, or
provision of this Agreement is held to be invalid by any court of competent
jurisdiction, such holding or holdings shall not invalidate or make
unenforceable any other term, condition or provision of this Agreement.  The remaining terms, conditions and
provisions shall be fully severable, and shall be construed and enforced as if
such invalid term, condition or provision had never been in this Agreement
initially.

 

6

 

18.                                 Entire Agreement.  This Agreement constitutes the entire
Agreement between the parties hereto with regard to the subject matter hereof,
and there are no agreements, understandings, specific restrictions, warranties
or representations relating to said subject matter between the parties other
than those set forth herein or herein provided for.  No amendment or modification of this
Agreement shall be valid or binding unless in writing and signed by the party
against whom such amendment or modification is to be enforced.

 

19.                                 Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be considered an original document, but all
of which shall be considered one and the same agreement and shall become
binding when one or more counterparts have been signed by each of the parties.

 

(Signature Page Follows)

 

7

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement on the Effective Date.

 

	
  BIOENERGY CAPITAL 

  	
  ILLINI BIO-ENERGY

  
	
  CONSULTANTS, LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Paul
  Casper 

  	
   

  	
  By:

  	
  /s/ Ernest
  D. Moody 

  	
   

  
	
   

  	
  Paul Casper, Member

  	
   

  	
  Its:

  	
  President

  	
   

  
	
   

  	
  9/28/04

  
	
  And

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ John T.
  Porter 

  	
   

  	
   

  
	
   

  	
  John T.
  Porter, Member

  	
   

  
	
  10/4/04

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