Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.34

 

Futures Brokerage & Consulting

12810 Kings Forest

San Antonio, TX 78230

Local (210) 493-3353

Toll Free (800) 245-6408

John Stewart & Associates

RISK MANAGEMENT AGREEMENT

FOR

GRAIN PROCUREMENT AND BYPRODUCT MARKETING

This Risk Management Agreement (the Agreement”) is entered into this 16th
day of July, 2007 by and between John Stewart & Associates, an Introducing Broker for
Iowa Grain Company (“JS&A”), and Cardinal Ethanol, LLC (“Cardinal”).

WHEREAS Cardinal Ethanol is developing an ethanol plant near Harrisville, Indiana (the
“Ethanol Plant”);

WHEREAS JS&A is in the business of providing risk management services related to commodities;

WHEREAS Cardinal Ethanol and JS&A desire that JS&A provide certain risk management services to
Cardinal Ethanol upon the terms as set forth in this Agreement.

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration,
the receipt of which is hereby acknowledged, the parties agree as
follows:

1. Risk Management Services. JS&A will provide risk management and related services
pertaining to grain hedging, grain pricing information, aid in purchase of grain, and assistance in
risk management as it pertains to ethanol and other by-products as set forth on Exhibit A attached
hereto and incorporated by reference. JS& A understands and acknowledges that the primary intent
of engaging its professional services is for the benefit of Cardinal Ethanol.

2. Designation of Authorized Representative. In connection with the services provided
by JS&A, the parties may agree to enter into certain hedging or other futures agreements and
transactions from time to time. All such transactions shall be executed upon specific approval and
direction by a client representative. Cardinal Ethanol will designate, by resolution, those persons
who will have authority to make risk management decisions on behalf of Cardinal Ethanol when
dealing with JS&A.

3. Commencement of Services; Fees. JS&A’s services shall commence upon execution of
this Agreement. In exchange for the services, a fee of $2500.00 per month will be charged.
Provided however, that the monthly fee shall not begin to accrue more than 90 days prior to start
up of the Ethanol Plant. In addition, no fees shall be due and owing from Cardinal Ethanol to JS&A
until the Ethanol Plant is in operation. It is also understood that payment for these services is
dependant upon JS&A being the clearing broker for Cardinal Ethanol at a rate of $15.00 per contract
plus clearing and exchange fees.

 

 

 

4. Independent Contractor. JS&A is an independent contractor providing services to
Cardinal Ethanol. No employment relationship, partnership, or joint venture is intended, nor shall
any such relationship be deemed created hereby. Each party shall be solely and exclusively
responsible for its own expenses and costs of performance. Cardinal Ethanol acknowledges that JS&A
provides similar services to its competing firms and this agreement shall not abridge those
services in any way.

5. Confidentiality.

(a) As used in this Agreement, “Confidential Information” means any information, technical
data, or know-how (including, but not limited to, information relating to research,
products, software, services, development, inventions, processes, engineering, marketing,
techniques, customers, pricing, internal procedures, business and marketing plans or
strategies, finances, employees and business opportunities) disclosed by one party to the
other in any form whatsoever (including, but not limited to, in writing, in machine
readable or other tangible form, orally or visually): (i) that has been marked as
confidential; (ii) the confidential nature of which has been made known by the disclosing
party to the recipient, in writing or orally, and if orally, with specific written
notification to the recipient of such oral disclosure within three days thereafter; or
(iii) that due to its character, nature, or method of transmittal, a reasonable person
under like circumstances would treat as confidential. The parties each agree to keep in
confidence and prevent disclosure to any person outside its respective organization, or any
person within its organization not having a reasonable need to know, all Confidential
Information.

(b) Information shall not be deemed to be Confidential Information to the extent that it
is: (i) in the public domain at the time of disclosure or is subsequently made available by
the disclosing party to the general public without restriction; (ii) known to the receiving
party at the time of disclosure without restrictions on its use or independently developed
by the receiving party and there is adequate documentation to demonstrate either condition;
or (iii) used or disclosed with the prior written approval of the disclosing party.

(c) The receiving party may disclose the other party’s Confidential Information pursuant to
a statutory or regulatory requirement or a court order; provided, however, that (i) the
receiving party will notify the other party of the obligation to make such disclosure in
advance of the disclosure in order that the other party will have reasonable opportunity to
object to such disclosure; and (ii) the receiving party requests confidential treatment of
such disclosed Confidential Information.

(d) The receiving party’s obligations under this Agreement with respect to Confidential
Information that it has received shall continue for a period of two years after the
expiration or termination of this Agreement.

 

 

 

(e) Nothing in this Agreement is intended to restrict or prevent Cardinal Ethanol from
disclosing the terms hereof to pursuant to any disclosures necessary to comply with certain
statutory and regulatory requirements of the Securities and Exchange Commission and state
securities regulators, or disclosures made to credit analysts, rating agencies, bond
insurers, and prospective lenders and investors. Nothing in this Agreement is intended to
limit or restrict JS&A’s ability to respond to regulatory requests or third party audit
requests as required by the Commodity Exchange Act and the rules and regulations of the
Commodity Futures Trading Commission.

This provision shall survive the termination or expiration of this Agreement.

6. Licenses, Bonds, and Insurance. JS&A and Cardinal Ethanol shall maintain during
the term of the Agreement all necessary state and federal licenses, bonds, and insurance required
for the conducting its business in accordance with applicable state and/or federal laws and
regulations.

7. Indemnification; Attorney Fees. JS&A will indemnify and hold the other and its
directors, officers, employees, and agents harmless from losses, claims, liability, damages or
expense, including attorney fees and other litigation expenses, suffered as a result of gross
negligence, willful misconduct, misrepresentation or breach of a warranty, covenant or agreement
between the parties. This provision shall survive the termination or expiration of this Agreement.

8. Term; Termination. This agreement shall remain in effect for one year and continue
on a month to month basis thereafter. This Agreement may be terminated by either party for any
reason upon written notice even during the initial one year period. Upon termination of this
Agreement, JS&A will have no further rights under the terms of the Agreement other than to any fees
for service to which its may be entitled through the date of termination.

9. Notice. Any notice permitted or required hereunder shall be in writing, signed by a
duly authorized officer of the party giving such notice, and shall either be hand delivered, sent
by recognized overnight delivery service, or mailed to the designated representatives of the other
parties. If mailed, notice shall be sent by certified, first-class, return receipt requested mail
to the address shown below, or any other address subsequently specified by notice from one party to
the other. All notices and other communications hereunder shall be deemed given upon the earlier of
(i) delivery thereof if by hand, or (ii) upon receipt if sent by mail (registered or certified,
postage prepaid, return receipt requested), or (iii) on the next business day after deposit if sent
by a recognized overnight delivery service to the to the appropriate party at the address below:

	 	 	 
	Cardinal Ethanol LLC

	 	John Stewart & Associates
	2 OMCO Square, Suite 201

	 	12810 Kings Forest
	P.O. Box 501

	 	San Antonio, TX 78230
	Winchester, IN 47394
	 	 

 

 

 

10. Validity. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law. In case any one or
more of the provisions contained herein shall, for any reason, be held to be invalid, illegal, or
unenforceable in any respect, such provision shall be ineffective to the extent, but only to the
extent, of such invalidity, illegality, or unenforceability without invalidating the remainder of
such invalid, illegal, or unenforceable provision or provisions or any other provisions hereof,
unless such a construction would be unreasonable.

11. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Indiana without regard to the conflicts-of-laws rules thereof.

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

13. Entire Agreement. This Agreement embodies the entire agreement and understanding
of the parties with respect to the subject matter contained herein. There are no other agreements,
representations, warranties, or covenants other than those expressly set forth, or referred to,
herein. This Agreement supersedes all prior agreements and understandings among the parties with
respect to such subject matter. The provisions of this Agreement shall in no way eliminate, amend
or otherwise alter any of the provisions of the Iowa Grain Company Customer Agreement and
accompanying documents in the new account application packet.

14. Assignment. This Agreement shall be binding upon and inure to the benefit of the
parties and the successors and assigns. No party may assign this Agreement without the express
consent of the other parties except that (i) no such consent shall be required in connection with a
sale, merger, or any acquisition of the entire business of any party; (ii) JS&W expressly consents
that Cardinal Ethanol’s rights and other interests hereunder may be pledged or assigned as security
in connection with financing for the Ethanol Plant.

	 	 	 
	John Stewart & Associates

	 	Cardinal Ethanol, LLC
	 
	 	 
	/s/ Tom Tucker

	 	/s/ Jeffrey L. Painter
	 

	 	 
	By: Tom Tucker

	 	By: Jeffrey Painter
	 
	 	 
	President

	 	General Manager
	 

	 	 
	Title: President

	 	Title
	 
	 	 
	7-9-07

	 	July 16, 2007
	 

	 	 
	Date
	 	 

 

 

 

Exhibit A

JS&A will work with Cardinal Ethanol providing advice regarding the hedging of grains, milling
by-product owned or expected to be owned by it and Ethanol, in order to reduce the price risk of
such ownership, and provide information related to the hedged position to respond to all management
requirements.

JS&A will provide, with the assistance of Cardinal Ethanol management, a complete written Risk
Management policy or plan to help guide or assist Cardinal Ethanol at certain intervals over the
course of this Agreement, and particularly during the period before the plant commences operations.

JS&A will provide both current and future grain pricing information to Cardinal Ethanol. JS&A will
on an ongoing basis bring recommendations, of trades to be executed, to Cardinal Ethanol’s
designated personnel as to the cash corn and or futures and options positions to be established.
Following Cardinal Ethanol’s approval of and agreement, JS&A will execute the necessary futures and
options to the best of its ability. JS&A will continue to advise as to any adjustments that need
to be made to this position and execute them following Cardinal Ethanol’s approval.

JS&A will also be available and provide the necessary counsel to Cardinal Ethanol’s risk committee
and or board as to the rational for the proposed position, its risk parameters and an estimate of
the capital required.

JS&A does not view risk management in a processing environment to be a function of picking the
highs and lows of individual commodity prices at a given point in time. But rather as an ongoing
function comprised of formulating a studied opinion of price based upon historical perspectives of
the current Supply and demand factors and then employing that opinion in a system of “Asset
Management” based on processing margins and profitability.

Tools employed to accomplish this include but are not limited to JS&A’s analysis and projection of
futures highs and lows, regional grain S/D’s specific to Cardinal Ethanol’s location, regional
basis histories relating back to the S/D’s and the employment of a Risk Management Matrix that
enables JS&A to build a history of processing margins for the individual facility, evaluate
projected forward margins by individual components: corn, by-products, and ethanol, and also track
and evaluate the corn by-product spread. This information is employed to evaluate current margins
and develop an opinion as to future margins and when to lock margin in. JS&A, through its
resources, will make available daily and monthly reports detailing the trades associated with this
Agreement.

The basic tools for risk management are forward cash contracts, buying and selling futures
contracts and buying and selling put and call options. All of these can be employed.

 

 

 

In addition JS&A will make available its proprietary resources for price forecasting, regional
S/D’s, basis analysis and margin management and analysis.

Additionally, JS&A will instruct all relevant personnel as to its use.

Upon Cardinal Ethanol’s recommendation JS&A will manage the execution of the necessary positions
and continually advise Cardinal Ethanol management of any necessary adjustments.

JS&A will provide a Level Two PRX Complete Grain Market and Grain Transportation Outlook which is
the complete PRX service (excluding customer reports). Also provided is paid attendance for up to
two people to a maximum of three PRX seminars throughout the year.Filed by Bowne Pure Compliance

 

Exhibit 10.35

RAILROAD CONSTRUCTION CONTRACT

	 	 	 
	Project:

	 	Track Construction
	 
	 	 
	Contractor:

	 	Amtrac of Ohio, Inc., an Indiana corporation with its
principal offices in Orrville, Ohio
	 
	 	 
	Owner:

	 	Cardinal Ethanol, LLC, an Indiana limited liability company

with its principal offices in Winchester, Indiana

This Railroad Construction Contract (the “Agreement”) is made and entered into as of the
13th day of July, 2007 by the Owner and Contractor, as identified above, who hereby
agree as follows:

ARTICLE 1. WORK TO BE PERFORMED

Except as otherwise provided herein, Contractor shall furnish all labor, materials, tools,
equipment, supervision and services necessary to prosecute and complete the work identified and
described on Schedule A attached hereto (the “Work”).

ARTICLE 2. TIME OF COMMENCEMENT AND COMPLETION

a. The Contractor shall commence the Work on or after July 23, 2007.

b. The Contractor shall cause Final Completion of the Work to occur no later than May 31,
2008.

c. Completion of the Work and its several parts within the time allotted under this Contract
is of the essence. Contractor shall provide the materials, equipment, laborers and supervision
necessary to perform the Work at such time and in such order and sequence as is required for the
best possible progress of the Work whenever such Work, or any part of it, becomes available, and
under such circumstances as may exist from time to time.

d. Should the Contractor be delayed in the prosecution of the Work by any damage caused
by fire, lightning, earthquake, cyclone or for any other causes shown to the satisfaction of the
Owner to be without fault or neglect of the Contractor, then the time for completion shall be
extended for such reasonable period of time as the Owner shall determine. No such extension of
time shall be allowed unless the Contractor gives the Owner written notice of the delay and claim
for extension of time within five (5) days of the occurrence thereof. The extension of time herein
provided for shall be the Contractor’s sole and exclusive remedy for any delay, and Contractor
shall have no claim for damages against the Owner.

 

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e. Final Completion shall be deemed to have occurred only when the Work shall have been fully
and finally completed in accordance with the Contract Documents.

ARTICLE 3. CONTRACT SUM

a. Contractor shall perform the items of Work as set forth on Schedule B for the respective
unit prices stated and the parties agree that the quantities of Work as shown on the Project
Drawings as referenced on Schedule A are estimates subject to increase or decrease. Owner shall
pay Contractor for the increased or decreased quantities at the unit prices set forth on Schedule
B.

b. The Contract Sum includes all taxes of every kind imposed, levied, or assessed by any
governmental authority and with respect to the Work, including taxes for labor, materials and
equipment utilized in connection therewith and all sales, use, personal property, excise and
payroll taxes. Upon request by Owner, Contractor shall furnish satisfactory evidence of payment of
such taxes.

ARTICLE 4. PAYMENTS

a. Except as otherwise indicated on Schedule B, and except for material delivered to the job
site (which will be paid for by Owner in full upon delivery), the Owner shall make payments on
account of the Contract Sum as follows: On or before the first (1st) day of each month, the
Contractor shall submit to the Owner’s Agent an itemized progress statement showing the amount of
labor and materials incorporated in the Work as of the twenty-fifth (25th) day of the preceding
month. The Owner shall thereupon check such statement and, if found correct, the Owner shall pay,
within fifteen (15) days of such approval of the invoice, the Contractor ninety (95%) percent of
the amount thereof, less the aggregate of previous payments. The maximum amount of retained funds
shall be $100,000. Retainage will be separately invoiced at Final Completion and will be paid no
later than 30 days after approval by Owner and its designates.

b. As a condition precedent to all payments hereunder, the Contractor shall submit a
sworn statement setting forth all subcontractors, material suppliers and laborers who have
theretofore performed Work or provided materials for the Contractor under this Contract, together
with sworn statements from all such subcontractors and material suppliers; waivers of lien from
Contractor and each subcontractor, material supplier and laborer (and any and all of their
suppliers) for all work, labor and materials theretofore supplied or performed; and such further
evidence as may be required by the Owner to prove that all labor, materials and equipment supplied,
used or incorporated in the Work has been paid for in full.

c. Owner shall have the right to withhold payment for defective work not remedied. If any
such deficiencies are not promptly corrected after written notice, the Owner may rectify same at
Contractor’s expense and deduct all costs and expenses incurred thereby from such withheld
payments.

 

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d. If Contractor shall fail to pay and discharge when due any amounts of any kind or nature
incurred by the Contractor in the performance of this Contract, or if at any time there shall be
evidence of any lien or claim against the Owner as a result of Contractor’s operations, or if there
shall be claims of the owner or any other person against the Contractor, the Owner shall have the
right to retain, out of any amount due or to become due to Contractor hereunder, an amount
sufficient to completely indemnify the Owner against any such lien or claim, including attorneys
fees incurred by reason thereof.

e. In the event of any dispute between Owner and Contractor, Owner shall be obligated to make
all payments due to Contractor over which there is no good faith dispute and Contractor shall not,
if it receives such payments, stop the Work or terminate this Contract.

f. No payments made under this Contract, including final payment, shall be construed to be an
acceptance of defective or improper workmanship or materials or certificate of waiver of any
claims by the Owner.

g. Because Owner shall pay for material as it is delivered to the job site, title to such
material shall vest in Owner upon payment. This provision shall be sufficient to serve as a Bill of
Sale.

ARTICLE 5. INSURANCE

a. Contractor shall maintain and pay for insurance coverage of the types and with the
limits set forth on Schedule C attached hereto and incorporated herein by reference. Such coverage
shall be maintained in form and with companies acceptable to the Owner and shall, notwithstanding
the requirements of Schedule C, meet the applicable requirements of any governmental authority
having jurisdiction over the Work. Each policy of insurance shall name the Owner as an additional
named insured and shall provide for thirty (30) days notice of cancellation to Owner. Certificates
evidencing such insurance shall be delivered to Owner prior to commencing the Work. In lieu of
naming the Owner as additional named insureds, the Contractor may provide an Owner’s/Contractor’s
Protective Policy providing equivalent coverage.

b. Contractor shall be responsible for any desired coverage against damage or loss to its own
materials, facilities, tools, equipment, scaffolds and similar items not covered by the Owner’s
fire policy.

c. Owner, Owner’s Agent and Contractor waive all rights against each other for damages caused
by fire and other perils to the extent covered by the insurance required to be maintained
hereunder.

d. Contractor shall procure railroad protective insurance per CSX Right of Entry Agreement.

 

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ARTICLE 6. INDEMNITY

Contractor agrees to indemnify, defend and hold harmless the Owner, and its agents, assigns,
assignors, and employees, from and against any claim, cost, expense or liability (including
attorneys’ fees), whether arising before or after completion of the Contractor’s Work caused by,
arising out of, resulting from or occurring in connection with the performance of the Work by the
Contractor, or its Subcontractors, agents and employees, whether or not caused in part by the
active or passive negligence or other fault of a party indemnified excepting only claims, cost,
expense or liability caused by the sole negligence of a party indemnified hereunder. In the case
of claims against the Owner, or its agents, assigns, assignors, and employees by any employee of
the Contractor, anyone directly or indirectly employed by it or anyone for whose acts it may be
liable, the indemnification obligation under this Article shall not be limited in any way by any
limitation on the amount or type of damages, compensation or benefits payable by or for the
Contractor under workmen’s compensation acts, disability benefit acts or other employee benefit
acts.

ARTICLE 7. WARRANTY

Contractor guarantees that the Work shall be free from defects and shall conform to and
meet the requirements of the Contract and the Contract Documents and shall furnish any separate
guarantee for the Work or portions thereof required under the Contract or the Contract Documents.
Contractor agrees to make good, to the satisfaction of the Owner, any portion or portions of the
Work which prove defective within one (1) four (4) years (or such longer period as may be specified
in the Contract or the Contract Documents) from the date of acceptance of the Project by the Owner.
RB/JP

ARTICLE 8. REMOVAL OF DEBRIS

Unless otherwise provided herein, removal of rubbish and debris caused by the Contractor’s
Work shall be done by the Contractor whenever required by the Owner. If such removal is not done
by the Contractor as directed, the Owner may do so at the Contractor’s expense. The Project site
shall be maintained in an orderly and clean condition and the Contractor shall leave the Project
site, at the completion of the Contractor’s Work, free of all rubbish and debris caused by the
Contractor and in a condition satisfactory to the Owner. The Owner reserves the right to cause all
unidentifiable debris to be removed from the Project site and allocate the cost thereof, by way of
back charge or otherwise, among the responsible parties.

ARTICLE 9. INSPECTION OF SITE AND CONTRACT DOCUMENTS

a. Contractor represents that it has carefully inspected the Contract Documents and examined
the Plans and Specifications and is familiar with and has satisfied itself as to the nature,
location and amount of the Work, the Contractor’s access thereto and ability to perform the Work,
the terms of this Contract and all incorporated documents as well as the quality, quantity and
availability of labor, materials, equipment and facilities and other items required for the
performance
of the work and the limiting physical and other conditions which may be encountered in the
performance of the Work and assumes all risks therefrom.

 

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b. Prior to initiating any of the Work, the Contractor shall carefully study and compare the
Contract Documents and shall at once report to the Owner any (i) error, inconsistency or omission
occurring therein or (ii) any failure to comply with applicable laws, ordinances, rules,
regulations, codes or orders of any public authority that come to the attention of the Contractor
or would have come to its attention with the exercise of due care. If the Contractor performs, or
allows any Subcontractor to perform, any of the Work knowing, or when with the exercise of due care
it would have known, it to be subject to an error, inconsistency or omission in the Plans And
Specifications, or contrary to applicable laws, ordinances, rules, regulations, codes or orders of
any public authority, and fails to give the Owner notice thereof prior to performance thereof, the
Contractor shall bear all costs arising therefrom.

ARTICLE 10. DEFAULT

If the Contractor (i) fails to supply the labor, materials, equipment and supervision
in sufficient time and quantity to meet the schedule; (ii) causes stoppage or delay of or
interference with the Project; (iii) fails to pay its laborers, suppliers, materialmen and
employees for work on the Project promptly; (iv) fails to pay workers’ compensation or other
employee benefits, withholding or any other taxes; (v) fails in the performance or observance of
any of the provisions of the Contract; or (vi) shall file a voluntary petition in bankruptcy; be
adjudicated insolvent; obtain an order for relief under Section 301 of the Bankruptcy Code; file
any petition or fail to contest any petition filed seeking any reorganization or similar relief
under any laws relating to bankruptcy, insolvency or other relief for debtors; or seek or consent
to or acquiesce in the appointment of any trustee, receiver or liquidator of any of its assets or
property; make an assignment for the benefit of creditors; or make an admission in writing of its
inability to pay its debts as they became due, then Owner, after giving the Contractor notice of
such default and forty-eight (48) hours within which to cure such default, shall have the right to
exercise any one or more of the following remedies:

a. Require that Contractor utilize, at its own expense, overtime labor (including Saturday and
Sunday work) and additional shifts as necessary to overcome the consequences of any delay
attributable to Contractor’s default;

b. Remedy the default by whatever means the Owner’s Agent may deem necessary and appropriate,
including, but not limited to, correcting, furnishing, performing or otherwise completing the Work,
or any part thereof, by itself or through others (utilizing where appropriate any materials and
equipment previously purchased for that purpose by Contractor) and deducting the cost thereof from
any monies due or to become due to Contractor hereunder; and

c. Recover from Contractor all losses, damages, penalties and fines, whether actual or
liquidated, direct or consequential, and all reasonable attorneys’ fees suffered or incurred by
Owner by reason of or as a result of Contractor’s default.

 

5

 

The foregoing remedies shall be considered separate and cumulative and shall be in addition to
every other remedy given hereunder or now or hereafter existing at law or in equity.

ARTICLE 11. REMEDIES IN THE EVENT OF BANKRUPTCY

The Owner and the Contractor acknowledge and agree that successful completion within the time
and financial parameters anticipated by the terms of the Contract will require prompt and continued
administration and performance by Contractor and it Subcontractors and that any delay therein for
any reason, including a bankruptcy proceeding respecting Contractor would create immediate and
irreparable harm to the Owner. To that end, this Contract contains a right to terminate in the
event of bankruptcy of the Contractor, it being recognized that such action would be necessary to
avoid and minimize such delay and consequent damage to all concerned.

ARTICLE 12. ASSIGNMENT BY CONTRACTOR

Contractor shall not assign, transfer, or further sublet this Contract, nor assign any monies
due or to become due hereunder, except with the prior consent of Owner. Any assignment of the
Contract consented to by Owner shall not operate to relieve Contractor of primary responsibility to
Owner for the due and full performance hereof, and Contractor shall be liable to Owner for all acts
and omissions of Contractor’s subcontractors and assignees.

ARTICLE 13. ENVIRONMENTAL

a. Contractor shall secure or ascertain that all necessary NPDES construction permits have
been secured prior to the commencement of construction. Contractor shall prepare or have prepared
a Storm Water Pollution Prevention Plan (“SWPPP”) or shall seek to amend any existing SWPPP for
Owner’s site to account for Contractor’s work on the site and shall provide a copy to Owner of any
such SWPPP or amendments. Contractor shall secure the agreement of all subcontractors working
under Contractor to abide by the terms of the SWPPP. RB/JP

b. Contractor shall obtain any necessary permits for the temporary installation of any
fueling stations or tanks for Contractor’s equipment or the equipment of Contractor’s
subcontractors. Contractor shall take all reasonable and necessary precautions to prevent fuel
spills and to contain any overfilling or other fuel losses from contaminating soil, groundwater, or
surface waters.

c. Unless caused by the sole negligence of Owner, Contractor shall indemnify and hold
harmless Owner for the release of any hazardous substances on or near the Job Site caused by
Contractor or Contractor’s subcontractors or agents working for Contractor that is part of the
scope of this Contract. The right of indemnity shall include testing, attorney fees, engineering
costs, waste disposal costs, site assessments, response costs, natural resource damages, monitoring
costs, personal injury or property damage claims by third parties, and penalties and fines levied
against Owner. This subparagraph shall not provide any third party any rights against either
Contractor or Owner. This
subparagraph shall not restrict any rights of Owner or Contractor against any Subcontractor, agent,
or third party.

 

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ARTICLE 14. Omitted.

ARTICLE 15. MISCELLANEOUS

a. Contractor shall obtain all necessary permits and licenses and comply with all statutes,
ordinances, rules, regulations and orders of any federal, state, or local governmental or
quasi-governmental authority applicable to the performance of the Work, including the construction
and placement of any track, and be responsible for and correct any violations thereof. Contractor
shall comply with the Safety Rules of Cardinal Ethanol. The Contractor shall provide such evidence
of compliance with the foregoing as the Owner may request.

b. Contractor shall be responsible for providing reasonable security for the site and its
equipment.

c. This is not a prevailing wage or union required labor contract.

d. Contractor shall repair, at its sole cost and expense, all damage to the Work or property
of others caused by Contractor.

e. The Contractor shall be as fully responsible to the Owner for the acts and omissions of its
Subcontractors, their agents and persons directly or indirectly employed by them, and other persons
performing any of the work as it is for the acts and omissions of persons directly employed by
Contractor.

f. This Contract shall be binding upon and shall inure to the benefit of the parties hereto
and their successors and permitted assigns.

g. This contract may be amended only by a written agreement executed by the party to be
charged.

h. This Contract shall be governed by and construed in accordance with, the laws of the State
of Indiana.

i. Contractor acknowledges receipt of CAD files of project drawings. These drawings are to be
treated as confidential documents.

ARTICLE 16. ENTIRE AGREEMENT

This Contract and the documents incorporated herein set forth the entire Agreement between the
Owner and the Contractor.

 

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ARTICLE 17. SCHEDULES

The following Schedules are attached to and made a part of this Contract:

Schedule A      CONTRACT DOCUMENTS

Schedule B      CONTRACT SUM

Schedule C      INSURANCE REQUIREMENTS

IN WITNESS WHEREOF, the parties have executed this Contract as of the date set forth on Page 1
hereof.

CONTRACTOR:

/s/ Robert Bielski 
Name: Robert S. Bielski

Title:Vice-President/General Manager

OWNER:

/s/ Jeffrey L. Painter 
Name:Jeffrey L. Painter

Title:General Manager

     Cardinal Ethanol

     7/16/07

 

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SCHEDULE A

CONTRACT DOCUMENTS

(reference drawings)

(attach April 13, 2007 letter from Amtrac of Ohio, Inc.)

(attach or reference any scope of work or engineering descriptions of job)

 

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SCHEDULE B

CONTRACT SUM

(Attach page 5 of 6 from Bid)

 

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SCHEDULE C

INSURANCE REQUIREMENTS

	 	 	 	 	 
	TYPE	 	LIMITS	 
	GENERAL LIABILITY
	 	 	 	 
	General Aggregate
	 	$	2,000,000	 
	Products Aggregate
	 	$	1,000,000	 
	Personal Injury
	 	$	1,000,000	 
	Each Occurrence
	 	$	1,000,000	 
	Fire Damage
	 	$	500,000	 
	Medical Expense
	 	$	5,000	 
	AUTO/EQUIPMENT LIABILITY
	 	 	 	 
	Combined Vehicle Limit
	 	$	1,000,000	 
	EXCESS LIABILITY (UMBRELLA)
	 	 	 	 
	Each Occurrence
	 	$	2,000,000	 
	Aggregate
	 	$	1,000,000	 
	WORKMEN’S COMP./ EMPLOYER’S LIABILITY
	 	 	 	 
	Each Accident
	 	$	1,000,000	 
	Policy Limit
	 	$	1,000,000	 
	Each Employee
	 	$	1,000,000	 

In addition, Contractor agrees to secure railroad protective insurance per CSX Right of Entry Agreement.

 

11

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