Document:

exv10w15

 

Exhibit 10.15

YAGGY

              COLBY

December 4, 2006

Mr. Ron Scherbring

MinnErgy, LLC

4455 Theurer Boulevard

			
	RE:	 	Professional Services — Traffic Study

Proposed Ethanol Plant — Eyota, MN

Dear Mr. Scherbring:

Yaggy Colby Associates would like to thank you for the opportunity to submit this professional
services proposal for a traffic study regarding the proposed ethanol plant to be located in Eyota,
MN. Per your request, this letter will serve to explain the firm’s scope of services, schedule and
fee proposal.

The proposed traffic study will consider a new ethanol plant to be located in the southeast
quadrant of the intersection of Township Road (110th Avenue SE) and 19th
Street SE. Based on the provided site plan, one access point is assumed on Township Road at
20th Street SE. It is assumed that all truck traffic related to the site is expected to
utilize TH 14 and Township Road to access the site.

SCOPE OF SERVICES

1.) Obtain and review information from the client and/or other parties related to the project
and/or study area. Includes a site visit to determine existing intersection characteristics,
including number of lanes, sight distance, traffic control, etc. It is assumed that CAD layouts
will be provided by the client for report figures.

2.) Conduct AM, Midday and PM weekday peak hour traffic counts at the intersection of TH 14 and
CSAH 42. Automated (48-hour) tube counts will also be conducted at four locations: TH 14, CSAH 42
and Township Road (north and south of TH 14). Balance traffic between study intersections. Fee
proposal includes a single setup of the road tubes.

Based on discussions with the Minnesota Department of Transportation (Mn/DOT), it is anticipated
that the study area will include the following study intersections:

	•	 	TH 14 and CSAH 42 — Unsignalized

	•	 	TH 14 and Township Road — Unsignalized

	•	 	Township Road and 20th Street SE/Site Driveway — Unsignalized

	•	 	Drainage Report

	•	 	On-site Septic Design (domestic only)

3.) Yaggy Colby Associates will work closely with the client to determine trip generation for the
proposed development and assign the site trips to the study intersections. This includes
determining the types of vehicles that will access the ethanol plant, as well as assigning the
vehicles to the adjacent roadway network. The origin and destination of the trucks is a critical
element in this study and it is assumed the client will be assist in determining these attributes.

4.) Analyze the study intersections for one year after build out and ten years beyond (11 years
after build out). Intersection analyses will be completed using Synchro and HCS+ software.
Analyses will be completed for each scenario during the AM, Midday and PM weekday peak hours.
Recommendations will

 

 

be provided for any intersections that operate at unacceptable levels of service under any
scenario. Conduct a constructability evaluation of the recommended traffic control and
intersection geometrics.

Analyze the TH 14 and Township Road intersection in regards to Mn/DOT’s access spacing guidelines
and the Long Range Transportation Plan 2035.

5.) Summarize the analysis results in a report, complete with recommendations, to be submitted as
part of the development plan for the site. Provide an appropriate number of copies of the report
to the client.

6.) Discuss the findings of the study with the client and agencies as needed (assume phone
conversations and e-mails).

SCHEDULE

Based on our current and future workload for the winter of 2006, Yaggy Colby can assure Mr.
Sherbring that we will be able to complete the study in a timely manner given appropriate agency
involvement and support. Yaggy Colby Associates is committed to completing the study in an
expedient manner to effectively meet the objectives of the client. Yaggy Colby Associates is ready
to commence work on the project immediately upon your authorization to proceed.

FEE PROPOSAL

Listed below is the estimated fee for each of the proposed scope of work items listed above:

	 	 	 	 	 	 	 
	1.)

	 	Obtain Information
	 	$	600	 
	 
	 	 	 	 	 	 
	2.)

	 	Conduct Traffic Counts
	 	$	1,200	 
	 
	 	 	 	 	 	 
	3.)

	 	Trip Generation
	 	$	800	 
	 
	 	 	 	 	 	 
	4.)

	 	Analyze Study Intersections
	 	$	2,100	 
	 
	 	 	 	 	 	 
	5.)

	 	Report
	 	$	2,900	 
	 
	 	 	 	 	 	 
	6.)

	 	Discuss Findings
	 	$	300	 
	 
	 
	 	 	 	 	 	 
	Total Estimated Fee	 	$	7,900	 

Since our proposal is based on hourly rates for work completed, the above totals are an estimated
maximum amount for the scope of work indicated. This amount will not be exceeded without prior
authorization on any scope changes, and Yaggy Colby Associates will strive to provide these
services to your full satisfaction, at a minimal cost. The scope of services does not include any
meetings; meetings will be considered extra work.

The attached Terms and Conditions shall be considered part of this proposal. This proposal is
being submitted in duplicate. If you accept this proposal and wish to proceed with the work,
please sign both Authorization blocks, retain one proposal for your records and return one proposal
to Yaggy Colby Associates. Your signed authorization will initiate the described services.

If you have any questions regarding this proposal or need additional information, please feel free
to contact me.

 

 

Sincerely,

YAGGY COLBY ASSOCIATES

/s/ Chad
Schuman

Chad Schuman, PE, PTOE

CWS/cws

			
	Attachments:	 	YCA Terms and Conditions

YCA 2006 Compensation Schedule

AUTHORIZATION

I have reviewed the above proposal and agree with its terms. I hereby authorize Yaggy Colby
Associates to proceed with the work described herein.

	 	 	 
	/s/ Daniel H. Arnold

	 	12/6/06
	 

	 	 
	Authorized Signature

	 	Date
	 
	 	 
	 
	 	 
	Daniel H. Arnold
	 	 
	 

	Printed Name
	 	 

 

 

YAGGY COLBY ASSOCIATES

2006 COMPENSATION SCHEDULE

HOURLY LABOR RATES

 

	 	 	 	 	 
	Senior Principal
	 	$135/hour
	 
	 	 	 	 
	Prinicpal Engineer, Architect, Planner, Surveyor, Landscape Architect
	 	$125/hour
	 
	 	 	 	 
	Senior Associate Engineer, Architect, Planner, Surveyor, Landscape Architect
	 	$115/hour
	 
	 	 	 	 
	Senior Project Engineer, Architect, Planner, Surveyor, Landscape Architect
	 	$105/hour
	 
	 	 	 	 
	Project Engineer, Architect, Planner, Surveyor, Landscape Architect
	 	$95/hour
	 
	 	 	 	 
	Design Engineer, Architect, Planner, Surveyor, Landscape Architect
	 	$85/hour
	 
	 	 	 	 
	Assistant Engineer, Architect, Planner, Surveyor, Landscape Architect
	 	$75/hour
	 
	 	 	 	 
	Intern Engineer, Planner, Surveyor
	 	$65/hour
	 
	 	 	 	 
	Senior Technician Design, Survey, Clerical
	 	$75/hour
	 
	 	 	 	 
	Technician I Design, Survey, Clerical
	 	$68/hour
	 
	 	 	 	 
	Technician II Design, Survey, Clerical
	 	$61/hour
	 
	 	 	 	 
	Technician III Design, Survey, Clerical
	 	$53/hour
	 
	 	 	 	 
	Technician IV Design, Survey, Clerical
	 	$46/hour
	 
	 	 	 	 
	Technician V Design, Survey, Clerical
	 	$39/hour
	 
	 	 	 	 
	Technician VI Design, Survey, Clerical
	 	$34/hour

REIMBURSABLE EXPENSES

 

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

 

 

YAGGY COLBY ASSOCIATES (YCA)

TERMS AND CONDITIONS

ARTICLE 1 —PAYMENT TO YCA

1.01 Other Provisions Concerning Payments

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

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

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

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

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

ARTICLE 2 — GENERAL CONSIDERATIONS

2.01 Standards of Performance

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

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

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

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

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

2.02 Use of Documents

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

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

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

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

 

 

2.03 Insurance

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

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

2.04 Termination

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

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

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

2.05 Dispute Resolution

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

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

2.06 Hazardous Environmental Condition

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

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

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

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

2.07 Allocation of Risk

A. Indemnification

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

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

3. To the fullest extent permitted by law, YCA’s total liability to OWNER and anyone claiming by,
through, or under OWNER for any cost, loss, or damages caused in part by the negligence of YCA and
in part by the negligence of OWNER or any other negligent entity or individual, shall not exceed
the percentage share that YCA’s negligence bears to the total negligence of OWNER, YCA, and all
other negligent entities and individuals.exv10w16

 

Exhibit 10.16

AGREEMENT TO TERMINATE PROJECT 

DEVELOPMENT AGREEMENT AND MUTUAL RELEASE

     THIS AGREEMENT TO TERMINATE PROJECT DEVELOPMENT AGREEMENT AND MUTUAL RELEASE, (the
“Termination Agreement”) made and entered into this 13 day of February, 2007, by and
between Delta-T Corporation, a corporation having its principal offices at 323 Alexander Lee
Parkway, Williamsburg, Virginia 23185 (“Delta-T”) and MinnErgy, LLC (“MinnErgy”), a Minnesota
limited liability company having it principal offices at 4455 Theurer Blvd., Winona, Minnesota
55987.

     WHEREAS, Delta-T and MinnErgy are parties to that certain Project Development Agreement dated
August 25, 2006 (the “Project Development Agreement”);

     WHEREAS, the parties now mutually desire to terminate the Project Development Agreement; and

     WHEREAS, the parties have agreed to enter into this Termination Agreement to establish the
terms and conditions under which the Project Development Agreement is to be terminated; and

     WHEREAS, the parties hereto desire to release and discharge each other from any and all
liability arising from or in any manner relating to the Project Development Agreement, upon the
terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, and
for other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties do hereby agree as follows:

1. Termination of Project Development Agreement. Except as hereinafter expressly provided,
from and after the date hereof, (the “Termination Date”) the Project Development Agreement and all
of the parties’ respective rights and obligations thereunder are terminated. MinnErgy acknowledges
that this includes, but is not limited to, termination of the limited license granted in Article 4
to MinnErgy. In addition, notwithstanding Article 12.5 of the Project Development Agreement, the
parties agree that no provisions of the Project Development Agreement shall survive unless
specifically provided herein.

2. Survival of Confidentiality Provision. Pursuant to Article 2 of the Project Development
Agreement the parties agreed to be bound by certain terms regarding confidentiality. This
Termination Agreement shall not affect the respective obligations of the parties under Article 2
which shall remain in full force and effect. MinnErgy also agrees that upon execution of the
Termination Agreement, it will: a) immediately cease use of Delta-T’s Confidential Information (as
defined in the Project Development Agreement); b) return to Delta-T all Confidential Information,
if any, provided to MinnErgy and destroy all materials developed that were based upon such
Confidential Information; and c) promptly advise all actual and potential investors and lenders for

1

 

the project and all regulatory authorities to which Confidential Information of Delta-T has been
provided of the termination of the Project Development Agreement and withdraw any applications for
financing or permits that were based on the use of Delta-T’s Confidential information.

3. Survival of Fee Provision. Pursuant to Article 3.1 of the Project Development
Agreement, MinnErgy was obligated to pay Delta-T a fee equal to $75,000. A total of $52,500 has
already been paid to Delta-T pursuant to the Project Development Agreement, and this Termination
Agreement shall not affect MinnErgy’s obligation under Article 3.1 of the Project Development
Agreement to pay the Delta-T the remaining balance of $22,500 upon the parties’ execution of this
Termination Agreement.

4. Release by Delta-T. Delta-T, for and on behalf of itself and its officers, directors,
partners, investors, employees, agents, representatives successors and assigns, and for and on
behalf of any other party claiming by, under or through any such party, hereby irrevocably and
unconditionally releases and forever discharges MinnErgy, from any and all actions, causes of
action, suits, debts, charges, complaints, claims, liabilities, obligations, judgments, damages and
expenses, whether known or unknown, which any such party has now, has ever had, or may hereafter
have, against or concerning MinnErgy arising from or in any manner relating to the Project
Development Agreement except with regard to those actions, causes of action, suits, debts, charges,
complaints, claims, liabilities, obligations, judgments, damages and expenses related to the
surviving obligations of the parties described in Section 2 and 3 of this Agreement.

5. Release by MinnErgy. MinnErgy, for and on behalf of itself and its officers, directors,
partners, employees, agents, representatives successors and assigns, and for and on behalf of any
other party claiming by, under or through any such party, hereby irrevocably and unconditionally
release and forever discharge Delta-T, from any and all actions, causes of action, suits, debts,
charges, complaints, claims, liabilities, obligations, judgments, damages and expenses, whether
known or unknown, which any such party has now, has ever had, or may hereafter have, against or
concerning Delta-T arising from or in any manner relating to the Project Development Agreement
except with regard to those actions, causes of action, suits, debts, charges, complaints, claims,
liabilities, obligations, judgments, damages and expenses related to the surviving obligations of
the parties described in Section 2 and 3 of this Agreement.

6. Captions. The captions herein are inserted only as a matter of convenience and in no
way define, limit, construe or describe the scope or intent of such sections nor in any way affect
this Termination Agreement.

7. Binding Nature. This Termination Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective heirs, representatives, successors and assigns.

8. Counterparts. This Termination Agreement may be executed in one or more counterparts,
all of which shall together constitute one and the same instrument and shall become effective when
one or more counterparts have been signed by Delta-T and delivered to MinnErgy and one or more

2

 

counterparts have been signed by MinnErgy and delivered to Delta-T. Each individual signing this
Termination Agreement certifies that he or she is authorized to sign the Termination Agreement on
behalf of the party he or she represents and to bind that party to the terms and conditions herein
stated.

9. Integrated Agreement. This Termination Agreement constitutes the entire understanding
between the parties concerning the subject matter hereof, and no other prior or contemporaneous
representations, inducements, promises, or agreements, oral or otherwise, between the parties with
reference thereto and not embodied in this Termination Agreement shall be of any force or effect.

     IN WITNESS WHEREOF, the parties have duly executed this Agreement to Terminate Project
Development Agreement and Mutual Release as of the day and year first above written.

	 	 	 	 	 	 	 	 
	MinnErgy, LLC

	 	Delta-T Corporation
	 
	 	 
	 
	 	 
	By:  	/s/ Daniel H. Arnold	 	By:  	/s/ Mark A. Shmorhun
	 

	 	 
	 	Name: 
	Daniel H. Arnold	 	 	Name: 
	Mark A. Shmorhun
	 	Title:
	 Chairman	 	 	Title:
	 VP Business Development

3

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