Document:

Exhibit 10.19

PHASE I AND PHASE II

ENGINEERING
SERVICES AGREEMENT

THIS PHASE I AND PHASE II
ENGINEERING SERVICES AGREEMENT (the “Agreement”) is
made as of May 25, 2006, (the “Effective Date”) by and between Ethanol
Grain Processors, LLC a Tennessee Limited Liability Company (the “Client”)
and Fagen Engineering, LLC a Minnesota Limited Liability Company (the “Engineer”).
Each of the Client and Engineer are referred to herein individually as a “Party”
and collectively as the “Parties.”

RECITALS

WHEREAS, Client
is developing a 100 million gallons per year dry grind ethanol production
facility to be located in Obion, TN (the “Plant”) to be owned and
operated by Client; and

WHEREAS, Client
and Fagen, Inc. (“Design - Builder”) intend to enter into that certain Lump-Sum
Design-Build Agreement (“Design-Build Agreement”) under which Fagen,
Inc., an affiliate of Engineer, will serve as the design-builder for the Plant
and provide design, engineering, procurement and construction services for the
development and construction of the Plant; and

WHEREAS, Client
wishes to retain an entity in advance of entering into the Design-Build
Agreement to perform certain engineering and design work that will be required
under the Design-Build Agreement on the terms and conditions set forth in this
Agreement, and Engineer desires to act as such entity upon the terms and
conditions set forth in this Agreement.

NOW, THEREFORE, in
consideration of the mutual promises contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound by this Agreement, the parties
do hereby agree as follows:

Article 1

Definitions;
Rules of Interpretation

1.1          Rules
of Construction.

The capitalized terms
listed in this Article 1 shall have the meanings set forth herein whenever the
terms appear in this Agreement, whether in the singular or the plural or in the
present or past tense. Other terms used in this Agreement but not listed in
this Article shall have meanings as commonly used in the English language and,
where applicable, in generally accepted construction and design-build industry
standards. Words not otherwise defined herein that have well known and
generally accepted technical or trade meanings are used herein in accordance
with such recognized meanings. In addition, the following rules of
interpretation shall apply:

(a)          The
masculine shall include the feminine and neuter.

 

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(b)                            References
to “Articles,” “Sections,” “Schedules,” or “Exhibits” shall be to Articles,
Sections, Schedules or Exhibits of this Agreement.

(c)                             This
Agreement was negotiated and prepared by each of the Parties with the advice
and participation of counsel. The Parties have agreed to the wording of this
Agreement and none of the provisions hereof shall be construed against one
Party on the ground that such Party is the author of this Agreement or any part
hereof. The following definitions will apply in this Agreement:

1.2          Defined
Terms.

In addition to
definitions appearing elsewhere in this Agreement, the following terms have the
following meanings:

Agreement will have the meaning given to such term in the Preamble to this
Agreement.

Applicable Law means

(a)                             any
and all laws, legislation, statutes, codes, acts, rules, regulations,
ordinances, treaties or other similar legal requirements enacted, issued or
promulgated by a Governmental Authority;

(b)                            any
and all orders, judgments, writs, decrees, injunctions, Governmental Approvals
or other decisions of a Governmental Authority; and

(c)                             any
and all legally binding announcements, directives or published practices or interpretations,
regarding any of the foregoing in (a) or (b) of this definition, enacted,
issued or promulgated by a Governmental Authority;

to the extent, for
each of the foregoing in (a), (b) and (c) of this definition, applicable to or
binding upon (i) a Party, its affiliates, its shareholders, its members,
it partners or their respective representatives, to the extent any such person
is engaged in activities related to the Services; or (ii) the property of
a Party, its affiliates, its shareholders, its members, its partners or their
respective representatives, to the extent such property is used in connection
with the Services or an activity related to the Services.

Client will have
the meaning given to such term in the Preamble to this Agreement.

Client’s Representative will have the meaning given to such term in Section 4.1

Design-Build Agreement will have the meaning given to such term in the Recitals to this
Agreement.

Effective Date will have the meaning given to such term in the Preamble to this
Agreement.

Engineer will have
the meaning given to such term in the Preamble to this Agreement.

Engineer Responsible Parties will have the meaning given to such term in Section 4.10.

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Governmental
Approvals will mean any material authorizations or
permissions issued or granted by any Governmental Authority to the Project, the
Client, the Engineer, subcontractors and their affiliates in connection with
any activity related to the Services.

Governmental
Authority will mean any federal, state, local or municipal
governmental body; any governmental, quasi-governmental, regulatory or
administrative agency, commission, body or other authority exercising or
entitled to exercise any administrative, executive, judicial, legislative,
policy, regulatory or taxing authority or power; or any court or governmental
tribunal; in each case having jurisdiction over the Client, the Engineer, the
Plant, or the Site.

Monthly
Invoice will have the meaning given to such term in Section
5.7.

Party or
Parties will have the
meaning given to such term in the Preamble to this Agreement.

Phase I
Deliverables will mean the Client’s deliverable obligations
pursuant to Exhibit C attached to this Agreement.

Phase I Design Package will have
the meaning given to such term in Section 3.2.

Phase II
Deliverables will mean the
Client’s deliverable obligations pursuant to Exhibit C

Phase II Design Package will have the meaning given to such term in Section 3.4 attached
to this Agreement.

Plant
will have the meaning given to such term in
the Recitals to this Agreement.

Project will
mean the Plant, together with all equipment, labor, services and materials
furnished under the Design-Build Agreement.

Services will have the meaning
given to such term in Section 3.1.

Site will mean the land or
premises on which the Plant is located.

Subcontractor
will mean any person or entity, including but not limited to
independent engineers, associates, and consultants, retained by Engineer, or by
any person or entity retained directly or indirectly by Engineer, in each case
as an independent contractor, to perform a portion of the Services.

Work Product will have the meaning given to such term in Section 8.1.

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Article 2

Retention
of the Agent

2.1          Retention
of Services. On the terms and subject to the conditions
hereinafter set forth, Client hereby retains Engineer to perform, and Engineer
hereby agrees to perform, the Services. Engineer will provide such Services
solely pursuant to the terms and conditions set forth herein including any
indemnifications and limitations on liability.

Article 3

Engineer
Responsibilities

3.1          Services.
Engineer shall perform the Phase I Design Package and Phase
II Design Package engineering services necessary to facilitate Client’s
completion of the Phase I and Phase II Site work required of Client prior to
the issuance of a Notice to Proceed pursuant to the Design-Build Agreement
(collectively, the “Services”).

3.2          Phase I Design Package.
(Grading and Drainage). The Phase I Design Package to be provided by
Engineer shall consist of the engineering and design of the Plant Site and
shall include the following drawings:

a) Cover Sheet

b) Property Layout
Drawing

c) Grading, Drainage and
Erosion Control Plan Drawing (Multiple Drawings if Required)

i. Used for
Land Disturbance Permitting

ii. Site
grading is held 6-inches low for topsoil and seeding

d) Roadway Alignment
Drawing

e) Culvert Cross Sections
and Details (Multiple Drawings)

f) Seeding and
Landscaping (If Required)

g) Geometric layout drawing (includes contractor’s trailer, parking and
laydown areas)

Plan sets along
with a Bid Tabulation Sheet will be supplied to the Client so all contractors
bid the same quantities. A telephone conference call for a Phase I pre-bid
meeting will be provided upon Client’s request.

3.3          Delivery
of Phase I Design Package. Engineer shall deliver the completed
Phase I Design Package no later than 60 days after the receipt of all the Phase
I Owner Deliverables, however, the 60 day time frame will commence no sooner
than August 1, 2006.

3.4          Phase
II Design Package. The Phase II Design Package to be provided
by Engineer shall provide the engineering and design of Site work and utilities
for the Plant, all within the property line of Plant, and shall consist of the
following:

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a) Cover Sheet

b) Property Layout
Drawing

c) Site Grading and
Drainage Drawing (Final Interior Plant Grading)

d) Roadway Alignment

e) Utility Layout (Fire
Loop)

f) Utility Layout
(Potable Water)

g) Utility Layout (Well Water)
if using on-Site wells

h) Utility Layout
(Sanitary Sewer)

i) Utility Layout
(Utility Water Blowdown)

j) Utility Layout
(Natural Gas)

i. Fagen
Engineering provides a preferred routing through the Site, line size and pipe
specifications are typically provided by the gas supplier.

k) Geometric Layout (For
Project Control Verification)

1) Site Utility Piping
Tables Drawing

m) Tank Farm Layout
Drawing

n) Tank Farm Details
Drawing

o) Sections and Details
Drawing (If required)

p) Miscellaneous Details Drawing (If required)

A telephone conference
call for a Phase II pre-bid meeting will be provided upon Client’s request.

3.5          Delivery
of Phase II Design Package. Engineer shall deliver the
completed Phase II Design Package no later than 60 days after the receipt of
all Phase II Deliverables.

3.6          Delays.
The Parties agree that Engineer shall not be responsible for delays in
providing the Services under this Agreement due to factors beyond Engineer’s
control.

3.7          Utility
Routing and Design Services Limited. The
Parties agree that Engineer shall provide the routing and design for the
utilities necessary for the Plant only within the Plant property line and up to
the Plant property line, and that, for purposes of this Agreement, Engineer
assumes a tie-in point to a city utility. The Parties agree that, if there is
no city tie-in point, Engineer will route the utilities to the Plant property
line and stop. Any special tie-in requirements necessary to connect the
utilities at the Plant property line are not included in the compensation or
the scope of this Agreement and shall only be designed and engineered by
Engineer as change in the Project which affects the Services hereunder.

Article 4

Client
Responsibilities

4.1          Client’s
Representative. Client shall, prior to the commencement of
Services by Engineer, name a representative (“Client’s  Representative”)
with authority to receive information and transmit instructions for Client.
Client’s Representative shall be vested with

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authority to act on
behalf of Client and Engineer shall be entitled to rely on Client’s
Representative’s communications with regard to the Services.

4.2          Client’s
Requirements. Client shall, prior to the commencement of
Services by Engineer, provide Engineer with Client’s requirements for the
Project, including objectives and constraints, design and construction
standards, bonding and insurance requirements, and contract forms.

4.3          Other
Information. Prior to the commencement of Services by
Engineer, Client shall provide Engineer with all other information available to
Client and pertinent to the Project and the Services including, but not limited
to, all items required pursuant to Exhibit C. The items required by Client
pursuant to this Section 4.3 shall be furnished at Client’s expense, and
Engineer shall be entitled to rely upon the accuracy and completeness thereof.

4.4          Access
to Property. Prior to the commencement of Services and as
necessary during the performance of Services, Client shall arrange for access
by Engineer upon public and private property, as required for the performance
of the Services under this Agreement.

4.5          Review
of Documents. As related to the performance of Services
hereunder, Client shall examine documents presented by Engineer, obtain legal
and other advice as Client deems appropriate, and render written decisions
within reasonable time. The items required by Client pursuant to this Section
4.5 shall be furnished at Client’s expense, and Engineer shall be entitled to
rely upon the accuracy and completeness thereof.

4.6          Consents,
Approvals, Licenses and Permits. Prior to the commencement of
Services and as necessary during the performance of the Services, Client shall
obtain all consents, approvals, licenses, permits, and other Governmental
Approvals necessary for the Project and for the performance of the Services.
The items required by Client pursuant to this Section 4.6 shall be furnished at
Client’s expense, and Engineer shall be entitled to rely upon the accuracy and
completeness thereof.

4.7          Bids.
Client shall advertise for and open bids when scheduled.

4.8          Other
Services Client shall furnish all legal, accounting and
insurance counseling services as may be necessary at any time for the Services,
including auditing services the Client may require to verify the monthly
invoices or to ascertain how or for what purposes the Engineer and/or
Subcontractors have used the money paid by or on behalf of the Client.

4.9          Service
Outside Scope of Engineer’s Services. Client shall, at its
own expense, as necessary for the performance and completions of the Services,
provide any additional services necessary for the Project that are outside the
scope of the Services provided by Engineer under this Agreement. Engineer shall
be entitled to rely upon, as applicable, the completeness and accuracy of such
additional services.

4.10       Deviation
from Design. Client shall indemnify and hold harmless
Engineer, its employees, its agents, its affiliates, and any other persons or
entities within its control or for

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whom Engineer
would otherwise be responsible (“Engineer Responsible Parties”) against
claims arising out of Engineer’s design, if there has been, in the completion
of the Phase I and Phase II Site work required of Client prior to the issuance
of a Notice to Proceed pursuant to the Design-Build Agreement, a failure to
follow Engineer’s recommendation and such deviation or failure caused the
claims.

4.11       Developments
Affecting Scope or Timing of Services. Client shall promptly
notify Engineer, in writing, when Client learns of contractor error or any
development that affects the scope or timing of Engineer’s Services.

Article 5

Compensation
and Payment

5.1          Compensation.
In consideration of its performance of the Services, Client
shall pay Engineer for Engineer’s time in the performance of the Services at a
fixed fee of $92,500 (“Fixed Fee”) as compensation. Engineer’s compensation
under this Section 5.1 shall be pursuant to the Fee schedule attached hereto as
Exhibit A, as such schedule may be modified from time to time. The full amount
of compensation paid by Client under this Section 5.1 shall be included in and
credited to the Design-Build Agreement’s contract price if entered into upon
payment in full by Client.

5.2          Reimbursement
of Engineer Expenses. In addition to the fixed fee in 5.1,
Client shall reimburse Engineer for its expenses related to the performance of
the Services in accordance with Engineer’s current reimbursable expense
schedule attached hereto as Exhibit B.

5.3          Reimbursement
of Subcontractor Expenses.

5.3.1   Subcontractor
charges related to time spent in the performance of the Services shall not be
marked-up by Engineer. Client shall reimburse Engineer for costs related to
Subcontractors’ time in accordance with the Subcontractors’ invoices for the
work.

5.3.2   Subcontractor
reimbursable expenses will be marked up in accordance with the current
reimbursable expense schedule attached hereto as Exhibit B.

5.4          Fees
for Work Outside Scope of Services. Fees for all work outside
the scope of Engineer’s responsibilities described in Article 3, including
change order work, shall be computed in accordance with Engineer’s current fee
schedules, attached hereto as Exhibits A and B, as such schedules may be
revised from time to time, unless otherwise agreed to in writing.

5.5          Collection
of Unpaid Amounts. If any amount due is not paid in
accordance with this Agreement and Engineer must collect that amount, Engineer
shall be entitled to recover, in addition to the amount due, the cost of
collection, including reasonable attorney’s fees in connection with those
collection efforts.

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5.6          Reimbursement
Schedules Subject to Change. Engineer’s reimbursement
schedule and reimbursable expense schedule attached hereto as Exhibits A and B
are subject to change on January 1 of each year.

5.7          Invoices.
Engineer shall submit a monthly invoice (“Monthly Invoice”)
for Services provided and for reimbursable expenses incurred by Engineer and
any Subcontractors.

5.8          Payment.
Within thirty (30) days after Client’s receipt of each
Monthly Invoice, Client shall pay Engineer all amounts due.

5.9          Late
Payment and Interest. If Client fails to make payment within
thirty (30) days after receipt of Monthly Invoice, interest at the maximum
legal rate or at an annual rate of 18%, whichever is less, shall accrue

5.10       Suspension
for Failure to Pay. If Client fails to make payment within
thirty (30) days after receipt of Monthly Invoice, Engineer may, at its option,
after giving seven (7) days’ written notice, suspend Services until all amounts
due to Engineer by Client have been paid in full.

5.11       Payments
from Lawful Sources. Client shall provide for payment from
one or more lawful source of all sums to be paid Engineer.

5.12       Withholding
Payments. Engineer’s compensation shall not be reduced on
account of any amounts withheld from payment to Subcontractors.

5.13       Purchase
Orders. If Client issues a purchase order or other document
to initiate the commencement of Services hereunder, it is expressly agreed that
any terms and conditions appearing thereon shall have no application and only
the provisions of this Agreement shall apply.

5.14       Changes
in Project. If Client requests changes in the Project which
affect the Services, compensation for and time of performance of Engineer’s
services shall be adjusted appropriately.

Article 6

Construction
Cost and Cost Estimates

6.1          Cost
Estimates. Client and Engineer acknowledge that Engineer has
no control over cost of labor, materials, equipment or services furnished by
others, over contractors’ methods of determining prices, or other competitive
bidding or market conditions and that Engineer’s estimates of Project
construction cost will be made on the basis of its employees’ experience and
qualifications and will represent Engineer’s employees’ best judgment as
experienced and qualified professionals, familiar with the construction
industry. Engineer does not guarantee that proposal, bids, or actual
construction cost will not vary from its estimates of Project cost and Client
acknowledges the same.

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Article 7

Termination

7.1          Termination
Upon Default. Either party may terminate this Agreement upon
twenty (20) days’ written notice if the non-terminating party has defaulted
through no fault of the terminating party.

7.2          Termination
Upon Abandonment of Plant. Client may terminate Engineer’s
obligation to provide further services upon twenty (20) days’ written notice if
Client abandons development of the Plant. In such event, all past due amounts
for services rendered (including Subcontractor’s fees, if any) and any unpaid
reimbursable expenses shall be immediately due and payable by Client.

Article 8

Ownership
of Work Product

8.1          Work
Product. All tangible items prepared by Engineer, including
but not limited to all drawings, specifications, calculations, data, notes and
other materials and documents, including electronic data furnished by Engineer
to Client and to Subcontractors under this Agreement (“Work Product”)
shall be instruments of service, and Engineer shall retain the ownership and
property interests therein, including the copyrights thereto.

8.2          Copies
Provided to Client. Client may retain copies of Work Product
for reference; provided, however, that Client may not make copies of the Work
Product available without Engineer’s written permission, and, granted such
permission, may only do so to the extent the use of such copies of the Work
Product directly pertains to the Services, the Plant, or the construction
thereof. Pursuant to Section 8.1 of this Agreement, Engineer retains ownership
of and property interests in any Work Product made available and/or copied.

8.3          Prohibited
Use of Work Product. Reuse of the Work Product on any another
Project without Engineer’s written consent is prohibited. Client shall
indemnify and hold harmless Engineer Responsible Parties against claims
resulting from such prohibited reuse. Said items are not intended to be
suitable for completion of this Project by others.

8.4          Derogation
of Engineer’s Rights to Work Product. Submittal or
distribution of Work Product in connection with the performance and completion
of the Services and the construction of the Project does not constitute
publication in derogation of Engineer’s rights and does not in any way diminish
Engineer’s Work Product rights established herein.

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Article 9

Successors
and Assigns

9.1          Successors.
The Parties intend that the provisions of this Agreement are binding upon the
Parties, their employees, agents, heirs, successors and assigns.

9.2          Written
Consent Required. Neither Party shall assign, sublet, or
transfer any interest in this Agreement without written consent of the other;
provided, however, that Engineer may employ such Subcontractors as it may deem
appropriate and may transfer or assign any interest in this Agreement or the
Work Product to Design-Builder without consent of Client.

9.3          No
Third-Party Beneficiaries. None of the provisions of this
Agreement will be for the benefit of or enforceable by any person other than
the Parties hereto, their successors and permitted assigns and legal
representatives

Article
10

Warranty

10.1       No
Warranty Extended. Engineer shall use reasonable care to
reflect requirements of all Applicable Laws, rules, or regulations of which
Engineer has knowledge or about which Client specifically advises in writing,
which are in effect on the date of this Agreement. ENGINEER INTENDS TO
RENDER SERVICES IN ACCORDANCE WITH GENERALLY ACCEPTED PROFESSIONAL STANDARDS,
BUT NO OTHER WARRANTY IS EXTENDED, EITHER EXPRESS OR IMPLIED, IN CONNECTION
WITH SUCH SERVICES. Client’s rights and remedies in this Agreement are exclusive.

10.2       No
Responsibility for Construction. Engineer shall not be
responsible for construction of the Plant, contractors’ construction means,
methods, techniques, sequences, or procedures, or for contractors’ safety
precautions and programs, or for contractors’ failure according to contract
documents.

Article
11

Indemnification

11.1       Engineer’s
Indemnification. To the fullest extent permitted by law,
Engineer shall indemnify and hold harmless Client, Client’s officers,
directors, partners, employees, and agents from and against any and all claims
for bodily injury and for damage to tangible property caused solely by the
negligent acts or omissions of Engineer or Engineer Responsible Parties and
Engineer’s Engineers in the performance and furnishing of Engineer’s Services
under this Agreement. Any indemnification shall be limited to the terms and
amounts of coverage of the Engineer’s insurance policies.

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11.2       Client’s
Indemnification. To the fullest extent permitted by law,
Client shall indemnify and hold harmless Engineer, Engineer’s officers,
directors, partners, employees, and agents and Engineer’s Engineers from and
against any and all claims for bodily injury and for damage to tangible
property caused solely by the negligent acts of omission of Client or Client’s
officers, directors, partners, employees, agents, and Client’s Engineers with
respect to this Agreement or the Project.

11.3       Hazardous
Materials Indemnification. In addition to the indemnity
provided under this section, and to the fullest extent permitted by law, Client
shall indemnify and hold harmless Engineer and its officers, directors,
partners, employees, and agents and Engineer’s Engineers from and against all
claims, 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 by, arising out
of, or relating to the presence, discharge, release, or escape of asbestos,
PCBs, petroleum, hazardous waste, or radioactive materials at, on, under, or
from the Site.

Article
12

Dispute
Resolution

12.1       Arbitration.
In an effort to resolve any conflicts that arise out of or
relate to this Agreement, the Client and the Engineer agree that all disputes shall
be submitted first to nonbinding mediation. If mediation does not resolve the
conflicts, the controversy shall be decided by final and binding arbitration
conducted in Minneapolis, Minnesota in accordance with the Construction
Industry Arbitration Rules of the American Arbitration Association then in effect, unless the Parties mutually agree otherwise.

The award of the
arbitrator(s) shall be final and binding upon the Parties without the right of
appeal to the courts. Judgment may be entered upon it in accordance with
Applicable Law by any court having jurisdiction thereof.

Engineer and
Client expressly agree that any arbitration pursuant to this Section 12.1 may
be joined or consolidated with any arbitration involving any other person or
entity (i) necessary to resolve the claim, dispute or controversy, or (ii)
substantially involved in or affected by such claim, dispute or controversy.
Both Engineer and Client will include appropriate provisions in all contracts
they execute with other parties in connection with the Services to require such
joinder or consolidation.

The prevailing
Party in any arbitration, or any other final, binding dispute proceeding upon
which the Parties may agree, shall be entitled to recover from the other Party
reasonable attorneys’ fees and expenses incurred by the prevailing Party.

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Article
13

Confidentiality

13.1       Non-Disclosure
Obligation. Except as required by court order, subpoena, or
Applicable Law, neither Party shall disclose to third parties any confidential
or proprietary information regarding the other Party’s business affairs,
finances, technology, processes, plans or installations, product information,
know-how, or other information that is received from the other Party pursuant
to this Agreement or the Parties’ relationship prior thereto or is developed
pursuant to this Agreement, without the express written consent of the other
Party, which consent shall not be unreasonably withheld. The Parties shall at
all times use their respective reasonable efforts to keep all information
regarding the terms and conditions of this Agreement confidential and shall
disclose such information to third Persons only as reasonably required for the
permitting of the Project; financing the development, construction, ownership,
operation and maintenance of the Plant; or as reasonably required by either
Party for performing its obligations hereunder and if prior to such disclosure,
the disclosing Party informs such third Persons of the existence of this
confidentiality obligation and only if such third Persons agree to maintain the
confidentiality of any information received. This Article 13 shall not apply to
information that was already in the possession of one Party prior to receipt
from the other, that is now or hereafter becomes a part of the public domain
through no fault of the Party wishing to disclose, or that corresponds in
substance to information heretofore or hereafter furnished by third parties
without restriction on disclosure.

13.2       Publicity
and Advertising. Neither Client nor Engineer shall make or
permit any of their subcontractors, agents, or vendors to make any external
announcement or publication, release any photographs or information concerning
the Project or any part thereof, or make any other type of communication to any
member of the public, press, business entity, or any official body which names
the other Party unless prior written consent is obtained from the other Party,
which consent shall not be unreasonably withheld.

13.3       Term
of Obligation. The confidentiality obligations of the Parties
pursuant to this Article 13 shall survive for a period five (5) years following
the later to occur of termination of this Agreement or completion of the Plant.

Article
14

Miscellaneous

14.1       Governing
Law. This Agreement shall be governed by and construed and
enforced in accordance with, the substantive laws of the state of Minnesota,
without regard to the conflict of laws provisions thereof.

14.2        Severability.
If any provision or any part of a provision of the Agreement shall be finally
determined to be superseded, invalid, illegal, or otherwise unenforceable
pursuant to any applicable Legal Requirements, such determination shall not
impair or otherwise affect the

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validity,
legality, or enforceability of the remaining provision or parts of the
provision of the Agreement, which shall remain in full force and effect as if
the unenforceable provision or part were deleted.

14.3        No
Waiver. The failure of either Engineer or Client to insist,
in any one or more instances, on the performance of any of the obligations
required by the other under this Agreement shall not be construed as a waiver
or relinquishment of such obligation or right with respect to future
performance.

14.4        Captions
and Headings. The table of contents and the headings used in
this Agreement are for ease of reference only and shall not in any way be
construed to limit, define, extend, describe, alter, or otherwise affect the
scope or the meaning of any provision of this Agreement.

14.5        Engineer’s
Accounting Records. Records of Engineer’s personnel time,
reimbursable expenses, and accounts between parties shall be maintained on a
generally recognized accounting basis.

14.6        Counterparts.
This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original and all of which together shall be
deemed one and the same Agreement, and may be executed and delivered by
facsimile signature, which shall be considered an original.

14.7        Survival.
Notwithstanding any provisions herein to the contrary, the
Work Product provisions set forth in Article 8 and the indemnity obligations
set forth herein shall survive (in full force) the expiration or termination of
this Agreement, and shall continue to apply to the Parties to this Agreement
even after termination of this Agreement or the transfer of such Party’s
interest in this Agreement.

14.8        No
Privity with Client’s Contractors. Nothing in this Agreement
is intended or deemed to create any legal or contractual relationship between
Engineer and any Client contractor or subcontractor retained to perform the
Phase I and Phase II Site work required of Client prior to the issuance of a
Notice to Proceed pursuant to the Design-Build Agreement.

14.9        Amendments.
This Agreement may not be changed, altered, or amended in any
way except in writing signed by a duly authorized representative of each Party.

14.10      Entire
Agreement. This Agreement consists of the terms and
conditions set forth herein, as well as the Exhibits hereto, which are
incorporated by reference herein and made a part hereof. This Agreement sets
forth the full and complete understanding of the Parties as of the Effective
Date with respect to the subject matter hereof.

14.11      Notice.
Whenever the Agreement requires that notice be provided to a
Party, notice shall be delivered in writing to such party at the address listed
below. Notice will be deemed to have been validly given if delivered (i) in
person to the individual intended to receive such notice, (ii) by
registered or by certified mail, postage prepaid to the address indicated in
the

 Ethanol Grain Processors, LLC
 Phase I and Phase II Engineering Agreement
 5/25/06
 13
 

 

 

Agreement within
four (4) days after being sent, or (iii) by facsimile, by the time stated in a
machine-generated confirmation that notice was received at the facsimile number
of the intended recipient.

If to Engineer, to:

Fagen Engineering LLC

501 W. Highway 212

P.O. Box 159

Granite Falls, MN 56241

Attention: John Austgen

Fax: (320) 564-4861

with a copy to:

Fagen, Inc.

501 W. Highway 212

P.O. Box 159

Granite Falls, MN 56241

Attention: Bruce Langseth

Fax: (320) 564-3278

If to Client, to:

Ethanol Grain Processors, LLC

Jim Patterson

308 Windemere Woods Dr

Nashville, TN 37215

14.12      Extent
of Agreement. This Agreement and the Exhibits incorporated
therein represent the entire agreement between the Parties and may be amended
only by written instrument signed by both Parties.

14.13      Subrogation
Waiver. The Parties waive all rights against each other, and
against the contractors, Engineers, agents, and employees of the other for
damages covered by any property insurance during construction, and each shall
require similar waivers from their contractors, Engineers, and agents.

 Ethanol Grain Processors, LLC
 Phase I and Phase II Engineering Agreement
 5/25/06
 14
 

 

 

IN WITNESS WHEREOF, the Parties
hereto have caused their names to be hereunto subscribed by their officers
thereunto duly authorized, intending thereby that this Agreement shall be
effective as of this May 25, 2006.

	
  ETHANOL GRAIN PROCESSORS, LLC

  	
   

  	
  FAGEN ENGINEERING, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ JAMES K.
  PATTERSON

  	
   

  	
  By:

  	
  /s/ JOHN R. ANSTGEN

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Chief Executive
  Officer

  	
   

  	
  Title:

  	
  Sr. Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address for
  giving notices:

  	
   

  	
  Address for giving notices:

  
	
   

  	
   

  	
   

  
	
  308 Windemere
  Woods Dr.

  	
   

  	
  501 West Highway 212

  
	
  Nashville, TN
  37215

  	
   

  	
  PO Box 159

  
	
   

  	
   

  	
  Granite Falls, MN 56241

  
							

 

 Ethanol Grain Processors, LLC
 Phase I and Phase II Engineering Agreement
 5/25/06
 15Exhibit
10.20

ICM
License Agreement

THIS LICENSE AGREEMENT (this “License
Agreement”) is entered into and made effective as of the 25th day of August, 2006 (“Effective Date”)
by and between Ethanol Grain Processors, LLC, a Tennessee limited liability
company (“OWNER”), and ICM, Inc., a Kansas corporation (“ICM”).

WHEREAS, OWNER has entered into that certain Design-Build Lump Sum
Contract dated August 25, 2006 (the “Contract”) with Fagen, Inc., a Minnesota
corporation (“Fagen”), under which Fagen is to design and construct a 100
million gallon per year ethanol plant for OWNER to be located in or near Obion,
Tennessee (the “Plant”);

WHEREAS, ICM has granted Fagen the right to use certain proprietary
technology and information of ICM in the design and construction of the Plant;
and

WHEREAS, OWNER desires from ICM, and ICM desires to grant to OWNER, a
license to use such proprietary technology and information in connection with
OWNER’s ownership, operation, maintenance and repair of the Plant, all upon the
terms and conditions set forth herein;

NOW, THEREFORE, the parties, in consideration of the foregoing premises
and the mutual promises contained herein and for other good and valuable
consideration, receipt of which is hereby acknowledged, agree as follows:

1.     Upon substantial completion
of the Plant by Fagen pursuant to the terms of the Contract or, if later,
payment by OWNER of all amounts due and owing to Fagen under the Contract, ICM
grants to OWNER a limited license to use the Proprietary Property (hereinafter
defined) solely in connection with the ownership, operation, maintenance and
repair of the Plant, subject to the limitations provided herein (the “Purpose”).

2.     The “Proprietary Property”
means, without limitation, documents, Operating Procedures (hereinafter
defined), materials and other information that are furnished by ICM to OWNER in
connection with the Purpose, whether orally, visually, in writing, or by
any other means, whether tangible or intangible, directly or indirectly
(including, without limitation, through Fagen) and in whatever form or medium including, without limitation, the design,
arrangement, configuration, and specifications of (i) the combinations of
distillation, evaporation, and alcohol dehydration equipment (including, but
not limited to, pumps, vessels, tanks, heat exchangers, piping, valves and
associated electronic control equipment) and all documents supporting those
combinations; (ii) the combination of the distillers grain drying (DGD), and
heat recovery steam generation (HRSG) equipment (including, but not limited to,
pumps, vessels, tanks, heat exchangers, piping and associated electronic
control equipment) and all documents supporting those combinations; and (iii)
the computer system, known as the distributed control system (DCS and/or PLC)
(including, but not limited to, the software configuration, programming,
parameters, set points, alarm points, ranges, graphical interface, and system
hardware connections) and all documents supporting that system.  The “Operating Procedures” means, without
limitation, the process equipment and specifications manuals, standards of
quality, service protocols, data collection methods, construction
specifications, training methods, engineering standards and any other
information prescribed by ICM from time to time concerning the Purpose.  Proprietary Property shall not include any
information or materials that OWNER can demonstrate by clear and convincing
written evidence:  (i) was lawfully in
the possession of OWNER prior to disclosure by ICM or Fagen; (ii) was in the
public domain prior to disclosure by ICM or Fagen; (iii) was disclosed to OWNER
by a third party other than Fagen having the legal right to possess and
disclose such information or materials; or (iv) after disclosure by ICM or Fagen
comes into the public domain through no fault of OWNER or its members,
directors, officers, employees,

 1
 

 

 

agents, contractors, consultants or other representatives (hereinafter
collectively referred to as “Representatives”). 
Information and materials shall not be deemed to be in the public domain
merely because such information is embraced by more general disclosures in the
public domain, and any combination of features shall not be deemed to be within
the foregoing exceptions merely because individual features are in the public
domain if the combination itself and its principles of operation are not in the
public domain.

3.     OWNER shall not use the
Proprietary Property for any purpose other than the Purpose.  OWNER shall not use the Proprietary Property
in connection with any expansion or enlargement of the Plant.  ICM and its Representatives shall have the
express right at any time to enter upon the premises of the Plant to inspect
the Plant and its operation to ensure that OWNER is complying with the terms of
this License Agreement.

4.     OWNER’s failure to
materially comply with the Operating Procedures shall void all guarantees,
representations and warranties, whether expressed or implied, if any, that were
given by ICM to OWNER, directly or indirectly through Fagen, concerning the
performance of the Plant that ICM reasonably determines are materially affected
by OWNER’s failure to materially comply with such Operating Procedures.  OWNER agrees to indemnify, defend and hold
harmless ICM, Fagen and their respective Representatives from any and all
losses, damages and expenses including, without limitation, reasonable
attorneys’ fees resulting from, relating to or arising out of Owner’s or its
Representatives’ (a) failure to materially comply with the Operating Procedures
or (b) negligent use of the Proprietary Property.

5.     Any and all modifications
to the Proprietary Property made by OWNER or its Representatives shall be the
property of ICM.  OWNER shall promptly
notify ICM of any such modification and OWNER agrees to assign all right, title
and interest in such modification to ICM; provided, however, OWNER shall retain
the right, at no cost, to use such modification in connection with the Purpose.

6.     ICM has the exclusive right
and interest in and to the Proprietary Property and the goodwill associated
therewith.  OWNER will not, directly or
indirectly, contest ICM’s ownership of the Proprietary Property.  OWNER’s use of the Proprietary Property does
not give OWNER any ownership interest or other interest in or to the
Proprietary Property except for the limited license granted to OWNER herein.

7.     OWNER shall pay no license
fee or royalty to ICM for OWNER’s use of the Proprietary Property pursuant to
this License Agreement, the consideration for the limited license granted
herein is certain payments by Fagen to ICM, which is funded by and included in
the amounts payable by OWNER to Fagen for the construction of the Plant under
the Contract.

8.     OWNER may not assign the
limited license granted herein, in whole or in part, without the prior written
consent of ICM, which will not be unreasonably withheld or delayed.  Prior to any assignment, OWNER shall obtain
from such assignee a written instrument, in form and substance reasonably
acceptable to ICM, agreeing to be bound by all the terms and provisions of this
License Agreement.  Any assignment of
this License Agreement shall not release OWNER from (i) its duties and
obligations hereunder concerning the disclosure and use of the Proprietary
Property by OWNER or its Representatives, or (ii) damages to ICM resulting
from, or arising out of, a breach of such duties or obligations by OWNER or its
Representatives.  ICM may assign its
right, title and interest in the Proprietary Property, in whole or part,
subject to the limited license granted herein.

9.     The Proprietary Property is
confidential and proprietary.  OWNER
shall keep the Proprietary Property confidential and shall use all reasonable
efforts to maintain the Proprietary Property as secret

 2
 

 

 

and confidential for the sole use of OWNER and its Representatives for
the Purpose.  OWNER shall retain all
Proprietary Property at its principal place of business and/or the Plant.  OWNER shall not at any time without ICM’s
prior written consent, copy, duplicate, record, or otherwise reproduce the
Proprietary Property, in whole or in part, or otherwise make the same available
to any unauthorized person provided, OWNER shall be permitted to copy,
duplicate or otherwise reproduce the Proprietary Property in whole or in part
in connection with, and to the extent it is necessary and essential for, the
Purpose so long as all such copies, duplicates or reproductions are kept at its
principal place of business and/or the Plant and are treated the same as any
other Proprietary Property.  OWNER shall
not disclose the Proprietary Property except to its Representatives who are
directly involved with the Purpose, and even then only to such extent as is
necessary and essential for such Representative’s involvement.  OWNER shall inform such Representatives of
the confidential and proprietary nature of such information and, if requested
by ICM, OWNER shall obtain from such Representative a written instrument, in
form and substance reasonably acceptable to ICM, agreeing to be bound by all of
the terms and provisions of this License Agreement to the same extent as
OWNER.  OWNER shall make all reasonable
efforts to safeguard the Proprietary Property from disclosure by its
Representatives to anyone other than permitted hereby.  OWNER shall notify ICM immediately
upon discovery of any unauthorized use or disclosure of the Proprietary
Property, or any other breach of this License Agreement by OWNER or its
Representatives, and shall cooperate with ICM in every reasonable way to help
ICM regain possession of the Proprietary Property and prevent its further
unauthorized use or disclosure.  In the event that OWNER or its
Representatives are required by law to disclose the Proprietary Property, OWNER
shall provide ICM with prompt written notice of same so that ICM may seek a
protective order or other appropriate remedy. 
In the event that such protective order or other appropriate remedy is
not obtained, OWNER or its Representatives will furnish only that portion of
the Proprietary Property which in the reasonable opinion of its or their legal
counsel is legally required and will exercise its reasonable efforts to obtain
reliable assurance that the Proprietary Property so disclosed will be accorded
confidential treatment.

10.   OWNER agrees to indemnify
ICM for any and all damages (including, without limitation, reasonable
attorneys’ fees) arising out of or resulting from any unauthorized disclosure
or use of the Proprietary Property by OWNER or its Representatives.  OWNER agrees that ICM would be irreparably
damaged by reason of a violation of the provisions contained herein and that
any remedy at law for a breach of such provisions would be inadequate.  OWNER agrees that ICM shall be entitled to
seek injunctive or other equitable relief in a court of competent jurisdiction
against OWNER or its Representatives for any unauthorized disclosure or use of
the Proprietary Property without the necessity of proving actual monetary loss
or posting any bond.  It is expressly
understood that the remedy described herein shall not be the exclusive remedy
of ICM for any breach of such covenants, and ICM shall be entitled to seek such
other relief or remedy, at law or in equity, to which it may be entitled as a
consequence of any breach of such duties or obligations.

11.   The duties and obligations
of OWNER under this License Agreement, and all provisions relating to the
enforcement of such duties and obligations shall survive and remain in full
force and effect notwithstanding any termination or expiration of the Contract
or this License Agreement.

12.   ICM may terminate this
License Agreement upon written notice to OWNER if OWNER willfully or wantonly
(a) uses the Proprietary Property for any purpose, or (b) discloses the
Proprietary Property to anyone, in each case other than permitted herein.  Upon termination of this License Agreement,
OWNER shall cease using the Proprietary Property for any purpose (including the
Purpose) and, upon request by ICM, shall promptly return to ICM all documents
or other materials in OWNER’s or its Representatives’ possession that contain
Proprietary Property in whatever format, whether written or electronic,
including any and all copies or reproductions of the Proprietary Property.  OWNER shall permanently delete all such Proprietary
Property from its computer hard

 3
 

 

 

drives and any other electronic storage medium (including any backup or
archive system).  OWNER shall deliver to
ICM a written certificate which certifies that all electronic copies or
reproductions of the Proprietary Property have been permanently deleted.

13.   The laws of the State of Kansas, United States of America (or US),
shall govern the validity of the provisions contained herein, the construction
of such provisions, and the interpretation of the rights and duties of the
parties.  Any legal action brought to
enforce or construe the provisions of this License Agreement shall be brought
in the federal or state courts located in Wichita, Kansas, and the parties
agree to and hereby submit to the exclusive jurisdiction of such courts and agree
that they will not invoke the doctrine of forum non conveniens or other similar
defenses in any such action brought in such courts.  Notwithstanding the foregoing, nothing in
this License Agreement will affect any right ICM may otherwise have to bring any
action or proceeding relating to this License Agreement against OWNER or its
properties in the courts of any jurisdiction. 
In the event the Plant is located in, or OWNER is organized under the
laws of, a country other than the US, OWNER hereby specifically agrees that any
injunctive or other equitable relief granted by a court located in the State of
Kansas, US, or any award by a court located in the State of Kansas, shall be
specifically enforceable as a foreign judgment in the country in which the Plant
is located, OWNER is organized or both, as the case may be, and agrees not to
contest the validity of such relief or award in such foreign jurisdiction,
regardless of whether the laws of such foreign jurisdiction would otherwise
authorize such injunctive or other equitable relief, or award.

14.   OWNER hereby agrees to waive all claims against ICM and ICM’s
Representatives for any consequential damages that may arise out of or relate
to this License Agreement, the Contract or the Proprietary Property whether
arising in contract, warranty, tort (including negligence), strict liability or
otherwise, including but not limited to losses of use, profits, business,
reputation or financing.  OWNER further
agrees that the aggregate recovery of OWNER and Fagen (and everyone claiming by
or through OWNER and Fagen), as a whole, against ICM and ICM’s Representatives,
collectively, for any and all claims that arise out of, relate to or result
from this License Agreement, the Proprietary Property or the Contract, whether
arising in contract, warranty, tort (including negligence), strict liability or
otherwise,  shall not
exceed One Million US Dollars ($1,000,000).

15.   The terms and conditions of
this License Agreement constitute the entire agreement between the parties with
respect to the subject matter hereof and supersede any prior understandings,
agreements or representations by or between the parties, written or oral.  Any rule of construction to the effect that
any ambiguity is to be resolved against the drafting party shall not be
applicable in the interpretation of this License Agreement.  This License Agreement may not be modified or
amended at any time without the written consent of the parties.

16.   All notices, requests,
demands, reports, statements or other communications (herein referred to
collectively as “Notices”) required to be given hereunder or relating to this
License Agreement shall be in writing and shall be deemed to have been duly
given if transmitted by personal delivery or mailed by certified mail, return
receipt requested, postage prepaid, to the address of the party as set forth
below.  Any such Notice shall be deemed
to be delivered and received as of the date so delivered, if delivered
personally, or as of the third business day following the day sent, if sent by
certified mail.  Any party may, at any
time, designate a different address to which Notices shall be directed by
providing written notice in the manner set forth in this paragraph.

17.   In the event that any of the
terms, conditions, covenants or agreements contained in this License Agreement,
or the application of any thereof, shall be held by a court of competent
jurisdiction to be invalid, illegal or unenforceable, such term, condition,
covenant or agreement shall be deemed void ab initio and shall be deemed
severed from this License Agreement.  In
such event, and except if such

 4
 

 

 

determination by a court of competent jurisdiction materially changes
the rights, benefits and obligations of the parties under this License
Agreement, the remaining provisions of this License Agreement shall remain
unchanged unaffected and unimpaired thereby and, to the extent possible, such
remaining provisions shall be construed such that the purpose of this License
Agreement and the intent of the parties can be achieved in a lawful manner.

18.   The duties and obligations
herein contained shall bind, and the benefits and advantages shall inure to,
the respective successors and permitted assigns of the parties hereto.

19.   The waiver by any party
hereto of the breach of any term, covenant, agreement or condition herein
contained shall not be deemed a waiver of any subsequent breach of the same or
any other term, covenant, agreement or condition herein, nor shall any custom,
practice or course of dealings arising among the parties hereto in the
administration hereof be construed as a waiver or diminution of the right of
any party hereto to insist upon the strict performance by any other party of
the terms, covenants, agreement and conditions herein contained.

20.   In this License Agreement,
where applicable, (i) references to the singular shall include the plural and
references to the plural shall include the singular, and (ii) references to the
male, female, or neuter gender shall include references to all other such genders
where the context so requires.

IN WITNESS WHEREOF, the parties hereto have
executed this License Agreement, the Effective Date of which is indicated on
page 1 of this License Agreement.

	
  OWNER:

  	
  ICM:

  
	
   

  	
   

  
	
  Ethanol
  Grain Processors, LLC

  	
  ICM, Inc.

  
	
   

  	
   

  
	
  By:

  	
  /s/ James K.
  Patterson

  	
   

  	
  By:

  	
  /s/ Dave Vander Griend

  	
   

  
	
   

  	
   

  
	
  Title: CHIEF
  EXECUTIVE OFFICER

  	
  Title: President & CEO

  
	
   

  	
   

  
	
  Date Signed:
  AUGUST 26, 2006

  	
  Date Signed: 9/1/2006

  
	
   

  	
   

  
	
  Address for
  giving notices:

  	
  Address for giving notices:

  
	
   

  	
   

  
	
  308 Windemere
  Woods Dr.

  Nashville, TN 37215

  	
  301 N First Street

  Colwich, KS 67030

  
						

 

 5

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