Document:

Exhibit 10.6

 

June 10,
2010

 

Mr. Bruce
Nordin

Whitebox
Advisors, LLC

3033
Excelsior Blvd., Suite 300

Minneapolis,
MN  55416

 

Dear
Bruce:

 

Aventine
Renewable Energy Holdings, Inc., a Delaware corporation (the “Purchaser”)
is pleased to set forth below a preliminary outline of the terms under which
Purchaser would enter into an asset purchase agreement (the “Purchase Agreement”)
with New  CIE Energy Opco, LLC d/b/a Riverland
BioFuels  (“Riverland BioFuels” or “Seller”) to
acquire all or substantially all of the assets of Seller comprising the ethanol
production facility situated in Canton, Illinois (the “Canton Facility”).   We understand that Whitebox  Credit Arbitrage Fund, L.P. and Whitebox Credit Arbitrage
Fund, Ltd.  (collectively, “Whitebox”)
indirectly hold, collectively, a controlling interest in Riverland BioFuels and
are empowered to cause the consummation of the transactions contemplated hereby
and Whitebox is prepared to execute and deliver the Whitebox Guaranty (as
defined below) simultaneously with the signing of the Purchase Agreement as
contemplated hereby.

 

Except
as otherwise provided in the “Binding Provisions” below, this Term Sheet is
non-binding and summarizes the proposed terms and conditions of the transaction
and shall be used for discussion purposes only.

 

Until
the execution of a definitive Purchase Agreement in a form approved in writing
by Seller and Purchaser, either party shall have the right to withdraw from the
transaction contemplated by this Term Sheet in their sole and absolute discretion
without liability or obligation to any party by virtue of such withdrawal,
except as otherwise provided in the “Binding Provisions” below.

 

Term Sheet

 

1.               Purchaser.   Aventine Renewable Energy Holdings, Inc.,
a Delaware corporation.  Purchaser may
assign its rights and obligations under this letter agreement and the Purchase
Agreement to an affiliate, provided that, in the event of such assignment,
Purchaser shall guaranty and remain primarily liable for all of the obligations
of Purchaser under this letter agreement and the Purchase Agreement.

 

2.               Seller.   New CIE Energy Opco, LLC, a Delaware limited
liability company d/b/a Riverland BioFuels.

 

3.               The
Canton Facility.     The
Canton Facility consists of an approximate 30 acre site on which the 37 mgpy
nameplate ethanol plant and associated CHP power plant is situated, including
all plant, equipment and storage tanks thereon, permits, licenses, approvals,
contracts, easements and intellectual property associated with the ownership
and operation of the Canton Facility, and also includes an associated 259 acre
parcel owned by Seller.

 

4.               Purchase
Price.   The
purchase price shall be $16,500,000 (the “Purchase Price”), plus the assumption
of assumed obligations (as defined below), payable as follows:

 

a.               $11,000,000 shall be payable
in cash on the Closing Date (the “Closing Payment”);

 

 

b.              the Deposit (as defined
below), which shall be credited against the amount of the Closing Payment; and

 

c.               $500,000 shall be deposited
in an interest bearing escrow account as a holdback (the “Escrow Holdback”)
against Seller’s indemnity obligations for representations, warranties and/or
covenant breaches (with such provisions to be negotiated and included in the
Purchase Agreement), and it being expressly understood that any such Seller
indemnity obligations shall not include those certain EPA obligations to be
assumed by Purchaser under Paragraph 6 (c) below.  Provided that there are no indemnity claims
asserted by Purchaser on or before the one (1) year anniversary of the
Closing Date, such Escrow Holdback, including all accrued interest thereon,
shall be released to Seller.

 

5.               Purchase
Agreement.   As soon as
practicable after mutual execution of this Term Sheet, Purchaser (through its
legal counsel) shall deliver to Seller a draft Asset Purchase Agreement (the “Purchase
Agreement”).  Purchaser and Seller shall
thereafter work in good faith to finalize the terms of such Purchase Agreement
and execute the same, with the intent of mutually executing such Purchase Agreement
on or before June 18, 2010 or as soon thereafter as the parties, in the
exercise of good faith, can reach agreement on such Purchase Agreement terms
and finalize and execute the same. The parties agree to work in good faith and
use their respective commercially reasonable efforts to structure the
transaction so as to maximize tax efficiency for each of the parties.

 

6.               Assumed
Obligations.   In
addition to the Purchase Price, Purchaser shall only assume the following
obligations associated with the Canton Facility or, as the case may be, take
title subject to such obligations (collectively, the “Assumed Obligations”):

 

a.               A mortgage in favor of the
USDA in the approximate amount of $500,000 and affecting the 259 acre parcel.

 

b.              Certain equipment leases
which Seller identifies as the “capital leases” and which consist of (a) the
Nebraska Package (boiler equipment); (b) the IFC Credit Corp. lease (steam
turbine generator); and (c) the U.S. Waters lease (water treatment
equipment).

 

c.               The funding of the cost of
certain environmental obligations, as reflected in a consent agreement or other
instrument between Seller and the Illinois Environmental Protection Agency,
related to waste water and storm water discharge issues affecting the Canton
Facility and the 259 acre parcel.

 

d.              The funding of the cost of
the disposal or other processing of certain process waste water (estimated to
be approximately 2.4 million gallons) associated with the Canton Facility
operations.

 

7.               Deposit
to Seller.    The
parties acknowledge that Seller has significant accounts payable and/or vendor
obligations (the “Payables”) which Seller needs to address pending the closing
of the transaction contemplated hereby. 
Purchaser is prepared to and shall deposit with Seller the sum of $5,000,000
as non-refundable deposit (the “Deposit”) which Seller shall use pursuant to
Paragraph 7(c) on the following terms:

 

a.               As promptly as reasonably
practicable following the mutual execution and delivery of this letter by the
parties, and upon delivery to Purchaser of the fully executed Whitebox 

 

2

 

Guarantee (as defined below), the sum of $5,000,000 shall be wired or
otherwise delivered to Seller by Purchaser as U.S. dollar certified or
collected funds.

 

b.              In addition to all remedies
which Purchaser may have as to Seller under the Purchase Agreement or
otherwise, Whitebox (as the controlling equity holder of Seller) agrees that,
in exchange for and simultaneous with payment by Purchaser of the Deposit,
Whitebox shall execute and deliver to Purchaser an agreement in form and
substance reasonably satisfactory to Purchaser (the “Whitebox Guaranty”) under
which Whitebox covenants that it will act as guarantor of Seller’s obligations
under this letter to return or refund to Purchaser the full amount of the
Deposit in the event of a Bankruptcy Filing (as defined below) or a Seller
Breach (as defined below) and Purchaser’s election to demand a return of the
Deposit in accordance with this Paragraph 7(b). 
The parties acknowledge and understand that the Whitebox Guaranty
hereunder is expressly limited in scope and applies only the return or refund
of the Deposit under the conditions herein described and nothing herein is
intended to create any other guaranty obligation by Whitebox as to any other
obligation of Seller under the Purchase Agreement.

 

c.               The Deposit may only be used
by Seller to extinguish existing third party liabilities of Seller or for
working capital expenditures to meet Seller’s payroll and overhead obligations
associated with the Canton Facility, in each case that are due and
payable.  Seller has provided to
Purchaser a list of current accounts payable, a copy of which is attached as Exhibit A
hereto. Seller may use the Deposit to pay any account payable set forth on such
list and for current accounts payable incurred in the ordinary course of
business consistent with past practice. 
Any other use of any material portion of the Deposit shall be subject to
Purchaser’s prior written approval, which approval shall not be unreasonably
delayed or withheld.

 

d.              The Purchase Agreement shall
contain a clause providing that the Deposit shall be a credit against the
Purchase Price at closing, and the Deposit shall  be non-refundable to Purchaser except upon (i) a
filing by which Seller and/or the assets of the Seller are placed under the
jurisdiction of the U.S. Bankruptcy Court, whether under a Chapter 7 or Chapter
11 proceeding and whether voluntarily filed by Seller or as an involuntary
proceeding instituted by any creditor of Seller, and such proceeding is not
dismissed within 30 days of filing 
(collectively, a “Bankruptcy Filing”), (ii) use by Seller or its
affiliates of any material portion of the Deposit in the manner other than as
set forth in Paragraph 7(c), (iii) the incurrence by Seller of any
additional material indebtedness or suffering of any additional material lien
on any of its assets other than in the ordinary course of business, consistent
with past practice, (iv) any material diminution in value of the assets to
be acquired in the Canton Facility as a result of a casualty loss with respect
to the fixed assets located at the Canton Facility, or (v) a refusal by or
the inability of Seller to close this transaction in accordance with the Purchase
Agreement, or to satisfy a material condition of closing contained in the
Purchase Agreement that is the obligation of Seller, or upon a breach of any of
Seller’s material obligations contained in the Purchase Agreement
(collectively, the items in clauses (ii) — (v)  a “Seller Breach”).   Upon either a Bankruptcy Filing or upon
Purchaser’s delivery to Seller of written notice of a Seller Breach (“Notice of
Breach”) and Seller’s subsequent failure to cure such Seller Breach within 7
days after receipt of such Notice of Breach and, provided that Purchaser is not
in breach of any of Purchaser’s material obligations contained in the Purchase
Agreement and/or has not refused to close this transaction in breach of the
Purchase Agreement, Purchaser shall thereafter have the right, in Purchaser’s
discretion, (a) to demand a return of the Deposit and Seller shall return
such Deposit within two (2) 

 

3

 

business days after such demand for return of the Deposit is delivered
to Seller in writing  (including but not
limited to enforcing its rights under the Whitebox Guaranty) or (b) to
enforce its remedy of specific performance as shall be provided in the Purchase
Agreement.

 

8.               Due
Diligence Period.   Prior to
the execution of the Purchase Agreement, Purchaser shall perform all due
diligence inspections, evaluations and feasibility assessments of the Property
which Purchaser elects to complete in its sole and absolute discretion.  Seller will use its commercially reasonable
efforts to cooperate with Purchaser and its representatives in conducting such
diligence.

 

9.               Closing
Date.  The
Purchase Agreement shall contain a clause providing that, subject to the
extension provisions of Paragraph 12, Closing shall be targeted to occur on or
before June 30, 2010, and in any event not later than July 30, 2010
(provided the Closing has be extended in accordance with Paragraph 12), in each
case provided that all Conditions to Closing have been satisfied (the “Closing
Date”).

 

10.         Conditions to Closing.   The Purchase Agreement shall contain a
clause providing that Purchaser’s obligation to purchase the Canton Facility
shall be subject to the following conditions, which conditions are for the
benefit of Purchaser and may be waived by Purchaser at any time in writing and
satisfaction of which shall be in Purchaser’s sole and absolute discretion:

 

a.               The assignment or transfer
to Purchaser of all necessary licenses, permits and approvals for the operation
of the Canton Facility, the execution and delivery of all deeds, bills of sale,
assignments of leases, assignment of contracts and other closing documentation
necessary to effect the transfer of the Canton Facility to Purchaser as
contemplated herein, unless any of the foregoing are not assignable according
to their terms.

 

b.              The material compliance of
the Canton Facility with all applicable laws and regulations.

 

c.               Such other conditions as
shall be set forth in the Purchase Agreement and which are typical and standard
for asset acquisitions similar to the transaction contemplated hereby.

 

11.         Site Access.   The Seller shall provide Purchaser with
reasonable access to the Property and to Seller’s personnel during the period
prior to the Closing Date to perform any non-invasive physical inspections and
investigations and otherwise determine that all Conditions to Closing have been
satisfied.   If not sooner or otherwise
provided,  Seller shall also provide
Purchaser upon request and/or make available for inspection copies of all
financial records, contracts, leases, agreements, surveys, reports,
environmental audits, appraisals, permits, licenses,  engineering reports, soils reports and such
other information which is in Seller’s possession to allow Purchaser to
evaluate the Canton Facility and the related 259 acre parcel.

 

12.         Extension.   The Purchase Agreement shall contain a
clause providing that upon notice provided by Purchaser to Seller in writing,
Purchaser shall be entitled to an extension of the Closing Date of up to 30
days (until July 30, 2010), in which case the Purchaser shall pay to
Seller $300,000 as a nonrefundable extension fee; provided that (a) Seller
shall grant Purchaser’s request for the extension contemplated hereby without
any associated fee in the event that the parties are not able to consummate the
transaction on or before the Closing Date as a result of the material acts or
material failures to act of Seller or its affiliates, (b) such fee, if
paid, shall be refunded (on the same terms as the Deposit) in the event that
the Deposit is required to be refunded in accordance with Paragraph 7 and (c) if
the parties consummate the transaction on or before the 15th day of the 

 

4

 

extension period, Seller will credit $100,000 of the extension fee paid
by Purchaser, dollar for dollar, toward the Purchase Price.

 

13.         Closing Costs.   Seller shall pay all customary transfer
taxes, documentary stamp taxes and recording fees.   All real property taxes shall be prorated in
a customary manner between the parties as of the Closing Date.

 

14.         Confidentiality.    This Term Sheet and its contents are
confidential and each party agrees not to disclose this Term Sheet or its
contents to third parties without the prior written approval of the other
party, other than (a) to its investors and advisors, (b) to the
extent required by applicable law, regulation or court order, or (c) in
connection with the enforcement of the “Binding Provisions”.

 

15.         Brokerage Fees.    Each party represents and warrants to the
other that it has not engaged or dealt with any brokers or finders in
connection with the transaction described in this Term Sheet.  Each party will indemnify, defend and hold
the other party harmless from any claim, liability, loss, or damage resulting
from the indemnifying party’s breach of the foregoing representation and
warranty.

 

16.         No Solicitation.  Upon delivery by Purchaser to Seller of the
Deposit within 24 hours of the acceptance of this letter of agreement by
Seller, Seller shall not, and shall cause its officers, directors, employees,
representatives and affiliates not to, solicit or accept any offers nor engage
in any discussions regarding the sale and purchase of any equity interest in
Seller, the Canton Facility, or any material portion of the assets comprising
the Canton Facility, including the related 259 acre parcel, except with
Purchaser and its representatives. 
Seller agrees to terminate, or cause to be terminated, any current discussions
regarding the foregoing with any person or entity other than Purchaser and its
representatives. Provided that the full Deposit of $5,000,000 has been
delivered to Seller in accordance with the provisions of Paragraph 7(a), such
exclusivity shall be extended through the Closing Date (as may be extended in
accordance with the provisions of Paragraph 12) in accordance with the
provisions of the Purchase Agreement. 
Until the receipt of the Deposit by Seller, Seller shall be under no
obligation of exclusivity or non-solicitation with respect to the sale and
purchase of the Canton Facility. To the extent, there is a breach of this
Paragraph 16, Purchaser shall be entitled to specific performance with respect
to the consummation of the Canton Facility acquisition.

 

17.         Governing Law.  This letter shall be governed by and
construed under the internal laws of the State of Delaware, without giving
effect to conflicts-of-laws provisions of any jurisdiction.

 

17.  Binding Provisions.   Notwithstanding the nonbinding nature of
this Term Sheet, the parties agree that the sections entitled “Deposit to
Seller”, “Confidentiality”, “Brokerage Fees”, “Non Solicitation”, “Governing
Law”, and “Binding Provisions”  shall be
binding on the parties.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

5

 

If
the foregoing terms and conditions are acceptable to you, please execute this
Term Sheet where indicated below and return the same to the undersigned.  This Term Sheet may be executed in
counterparts (including execution by facsimile or .PDF delivered via email),
each of which shall be deemed to be an original.  We look forward to working with you on this
transaction and achieving a successful closing.

 

 

	
   

  	
  AVENTINE RENEWABLE ENERGY

  
	
   

  	
  HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas Manuel

  
	
   

  	
  Name:
  Thomas Manuel

  
	
   

  	
  Title:
  CEO

  

 

 

6

 

	
  Approved and accepted this 10th day of June, 2010:

  	
   

  
	
   

  	
   

  
	
  New CIE Energy Opco, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Jaime
  Lynch

  	
  CFO

  	
   

  
	
   

  	
  Name

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Whitebox Credit Arbitrage Fund,
  L.P.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Bruce
  Nordin

  	
  COO/CFO

  	
   

  
	
   

  	
  Name

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Whitebox Credit Arbitrage
  Fund, Ltd.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Bruce
  Nordin

  	
  Director

  	
   

  
	
   

  	
  Name

  	
  Title

  	
   

  

 

7

 

EXHIBIT A

 

Certain Accounts Payable

 

[Attached]Exhibit
10.7

 

	
   

  	
  AVENTINE
  RENEWABLE ENERGY — AURORA WEST, LLC

  	
   

  
	
   

  	
  2103
  Harvest Drive Avenue; Aurora, NE 68818  (402) 694-3454

  	
  CONTRACT
                             

  
	
   

  	
  SHORT
  FORM CONTRACT

  	
   

  
	
   

  	
  (AGREEMENT WITH INDEPENDENT
  CONTRACTOR)

  	
                                    ,
                

  

 

	
  AGREEMENT BETWEEN Fagen, Inc.,
  a Minnesota corporation with offices at 501 W. Highway 212, Granite Falls, MN
  56241 (hereinafter called “CONTRACTOR”) and AVENTINE RENEWABLE ENERGY —
  AURORA WEST, LLC, (hereinafter called “COMPANY”).

  
	
   

  
	
  DESCRIPTION OF WORK:   Contractor to provide labor and
  construction equipment, construction consumables, and other items as set
  forth on Exhibit E, attached hereto and incorporated herein, necessary
  to complete ethanol facility in Aurora, Nebraska per Company’s design and
  specifications.

  
	
   

  
	
  TAX STATEMENT:  Contractor’s FEIN: 41-1604605. 
  Contractor is a Minnesota subchapter S corporation.

  
	
   

  
	
  All work must be performed in
  accordance with AVENTINE RENEWABLE ENERGY, INC. GENERAL CONDITIONS B-241
  and AVENTINE RENEWABLE ENERGY, INC., OUTSIDE CONTRACTORS SAFETY
  REQUIREMENTS SH-100

  
	
   

  
	
  Above work shall be performed at the direction of                                                                                                                                      

  
	
   

  
	
  MATERIALS, EQUIPMENT,
  FACILITIES, SERVICES, ETC. TO BE FURNISHED BY COMPANY Company shall
  provide other equipment, materials, and facilities including those already
  present at the jobsite (but specifically excluding those items set forth on Exhibit E),  and such other services and equipment as
  the parties may mutually agree.

  
	
   

  
	
  TARGET PRICE   $*****

  TARGET FEE:  $*****

  
	
   

  
	
   

  	
  Price not to exceed
                                                                                                                                                                         
  All invoices must itemize labor, materials, transportation and taxes paid on
  materials.  Waiver(s) of lien must
  be submitted with invoices for materials used and for all subcontracted work.

  
	
   

  	
   

  
	
   

  	
  Payment Terms:
                                                                                                                                                                             
  

  
	
   

  	
   

  
	
  PERIOD OF PERFORMANCE

  	
  Contractor shall begin work on the
                  
  day of
                                          ,
                         

  and fully complete the same by
                        
  day of
                                          ,
                         .

  
	
   

  	
   

  
	
  INSURANCE COVERAGE

  	
  Contractor shall comply with
  Aventine Renewable Energy, Inc. Insurance Requirements Form    C-2C   

   

  
	
   

  	
   

  
	
  RENDERING OF INVOICES

  	
  Render all invoices to:  AVENTINE RENEWABLE ENERGY, INC., P.O. BOX 10,
  PEKIN, IL 61555

  ATTN:
  ACCOUNTS PAYABLE

  
	
   

  	
   

  
	
  OTHER TERMS AND PROVISIONS

  	
  All provisions on the reverse side
  hereof and Exhibits A-D attached hereto and included by reference, whether
  printed, typewritten and/or written are hereby made part of this
  agreement.  In the event of any
  conflict between the provisions of this Agreement as set forth on the reverse
  side hereof and the provisions of any attachments hereto, the provisions of
  this Agreement shall govern.

  
	
   

  	
   

  
	
  Executed in the State of
  Nebraska on the date first hereinabove written.

  
			

 

	
   

  	
   

  	
  FOR

  	
  AVENTINE RENEWABLE ENERGY —
  AURORA WEST, LLC  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BY

  	
  /s/ Thomas Manuel

  	
  CEO

  
	
  WITNESS OR SEAL

  	
   

  	
   

  	
   

  	
  (TITLE)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FOR

  	
  Fagen, Inc.

  	
   

  
	
   

  	
   

  	
   

  	
  (CONTRACTOR)

  	
   

  
	
  WITNESS OR SEAL

  	
   

  	
  BY

  	
  /s/
  Evan Fagen

  	
  EVP

  
	
   

  	
   

  	
   

  	
   

  	
  (TITLE)

  

 

AVENTINE G/L Charge Code                                                                                                                   

 

 

Exhibit A

 

ADDITIONAL PROVISIONS OF
AGREEMENT

 

1.               Company and Contractor acknowledge and agree that this Short
Form Contract, and all exhibits and appendices hereto, is being entered
into to accommodate Company’s schedule and that it does not reflect the full
and final agreement of the parties, if any, with respect to the project to
which the work relates. The parties will negotiate in good faith for the
execution of a complete and final construction agreement which will include
such additional and other terms customary to a project of this type and
magnitude.  In the event Company and
Contractor are unable to agree upon such additional terms on or before May 10,
2010, then Contractor has the right to terminate this agreement, be paid for
all costs incurred to date plus a fee in the amount of 15% of all such costs,
and the aggregate liability of Contractor, its subcontractors, vendors,
suppliers, agents and employees,  to
Company (or any successor thereto or assignee thereof) for any and all claims
and/or liabilities arising out of or relating in any manner to the work or to
Contractor’s performance or non-performance of its obligations hereunder,
whether based in contract, tort (including negligence), strict liability, or
otherwise, shall not exceed, in the aggregate, the amount paid to
Contractor.  In the event a complete and
final construction agreement is executed and delivered between the parties, all
work performed hereunder and all payments made hereunder with respect to such
work, or any portion thereof, shall be treated as Work performed and payments
made under such final construction agreement. 
Additionally, the parties acknowledge and agree that all terms and
conditions set forth in this agreement applicable to the Work performed or to
be performed under such final construction agreement shall be superseded and
replaced in their entirety by the terms and conditions of such complete and
final construction agreement, provided that all payments made hereunder are
credited dollar for dollar toward the final price under such final construction
agreement.

 

Subject to the foregoing, Contractor
shall, at Contractor’s expense:

 

(a) Except as otherwise
provided in this agreement, supply and pay for all labor, service, supplies,
and all other things to be used, directly or indirectly, in the performance of
or in connection with said work, and hold Company harmless against all claims,
liens, and demands in connection therewith and against all consequent cost,
expense and damages;

 

(b) Procure all permits and
licenses which may be required in the performance of said work, and pay all
excise, license, occupation and other taxes which may become payable to any
authority by reason of said work, including all taxes upon the sale, use,
storage, consumption and/or fabrication of the materials, supplies, equipment
and other things furnished by Contractor;

 

(c) Accept full and exclusive
responsibility and liability for payment of federal and state payroll taxes and
for contributions for unemployment insurance, old age pensions, annuities,
retirement and other benefits, imposed or assessed under any provision of any
law, state or federal, and measure by wages, salaries or other remuneration
paid or payable by Contractor to employees of Contractor engaged in said work
or in any operation incidental thereto, and agrees that it will cause each
subcontractor who performs any part of said work to accept the same
responsibility and liability with respect to employees of such subcontractor;

 

(d) Fully defend, protect,
indemnify and hold Company and its affiliates (and their respective officers,
directors, employees, and agents) harmless against claimed or actual
infringement or contributory infringement of any patent, or infringement of any
copyright or trademark, or violation of any trade secret arising out of or in
connection with any construction processes employed by Contractor or
technologies or equipment supplied by Contractor in the performance of said
work, and shall hold harmless Company and its affiliates (and their respective
officers, directors, employees, and agents) against any and all judgments,
costs and expenses (including attorney fees) incurred by Company and its
affiliates (and their respective officers, directors, employees, and
agents)  by reason of any such claim or
suit thereof. Contractor specifically represents and warrants in this regard
that its performance of the work herein shall not violate any patent,
copyright, trademark, trade secret, or other contractual or legal obligation it
has or may have with respect to ICM technology and that it has entered into
appropriate agreements with, or obtained the necessary consents from, Applied
Process Technology International in order for Contractor to be deemed an
Approved Contractor under APTI’s License with Company and to perform the work
without violation of any contractual and/or legal obligations it has.  For purposes of clarity, it is understood and
agreed to by the parties that Contractor is not supplying any Delta T (n/k/a/
APTI) technologies or equipment in completing its work;

 

(e) Perform and complete said
work in a good and workmanlike manner satisfactorily and acceptable to the
Company, and comply with all federal, state, county and municipal laws, rules,
regulations and ordinances applicable to the performance of said work or
incident thereto;

 

(f) Upon request of Company,
furnish Company with such affidavits, receipts, waivers, releases, statements
and other evidence as Company may require to satisfy itself that all such
claims, liens, demands, liability, cost, expense, loss and damage have been
paid and discharges;

 

(g) At all times while on
Company’s premises, observe and be subject to such rules and regulations
as Company from time to time may promulgate for security reasons or for
minimizing fire and explosion risks and for the maintenance or restoration of
good order and compel observance thereof by Contractor’s employees and agents
and others entering upon premises in the performance of or in connection with
said work; said rules and regulations shall include among others, those
now in force prohibiting smoking, lighting of matches, intoxication, misconduct
and the like.  Contractor shall take
steps to assure that his employees or employees of his subcontractors at all
times observe the reasonable rules and regulations while entering, leaving
or on Company’s premises, and shall cause them to be removed from such premises
upon their failure to comply.

 

2.               If any payment provided for hereunder is to be made in the
basis of Contractor’s cost or other flexible billing basis, the Company shall
have the right to audit Contractor’s books, receipts, invoices and records
pertinent to such costs, and Contractor agrees to maintain such documents for a
period of at least two (2) years from the date such costs were incurred
and to make them available to the Company at any reasonable time or times
within the two-year period for the Company’s use in making such audits.

 

3.               Contractor acknowledges that prior to the execution of this
agreement, Contractor has made sufficient examination and tests to determine
the difficulties and hazards incident to the doing of said work, whether
arising from the location of said work, conditions of the premises, proximity
of said work to adjacent facilities, equipment, tanks, buildings and other
structures, or otherwise and has determined to Contractor’s satisfaction the
nature and extent of all such difficulties and hazards.

 

4.               Contractor shall not assign this agreement or any monies to
become due hereunder, or subcontract the whole or any part of said work without
Company’s proper written consent. 
Company’s consent to such assignment or subcontract shall not relieve
Contractor or Contractor’s surety.  If
there is a surety, of any liability for the full and faithful performance of
this contract according to its terms and conditions.

 

5.               Contractor hereby authorizes Company to deduct from any
payable to Contractor (whether or not arising out of this agreement) all
amounts which may be payable by Contractor to Company, and also all amounts for
which Company may become liable to third parties by reason of Contractor’s acts
in performing or failing to perform Contractor’s obligations under this
agreement, and in the event that any claim is made by a third party, the amount
of validity of which is disputed by Contractor, or any indebtedness shall exist
which shall appear to be the basis for a claim of lien, Company may withhold
from any payment due, without liability for interest because of such withholding,
an amount sufficient to cover such claim. 
The failure of Company to exercise such right to deduct or withhold
shall not, however, affect the obligation of Contractor to protect Company as
elsewhere provided herein.

 

6.               Neither party shall be liable in damages or otherwise if, by
reason of an act of God or public enemy strike, lockout, boycott, picketing,
riot, insurrection, fire or any governmental order, rule or regulation, or
any ordinance, such party shall be delayed in, or prevented from, furnishing
any materials, equipment, facilities, services, etc., provided to be
furnished by it hereunder.

 

7.               In the event Contractor fails to commence said work on the
day herein provided, or after such commencement abandons said work or for any
reason suspends or refuses to continue it for a period of five (5) days
(unless prevented from commencing or continuing said work by an act of God or
public enemy, strike, lockout, boycott, picketing, riot, insurrection, or any
governmental order, rule or regulation or any ordinance, or by any failure
or delay on the part of the Company as described in Paragraph 5), Company shall
have the right to take over said work and all materials and supplies furnished
by Contractor.

 

8.               Contractor’s Right to Terminate Contract

 

(a) If work is stopped by any
public authority for a period of thirty (30) days or more through no fault of
Contractor, or if Company fails to pay Contractor any payment within thirty
(30) days after it is due, the Contractor, upon seven (7) days’ written
notice by registered mail to the Company, may stop work or terminate the
contract and recover from Company payment for all work properly executed.

 

(b)  If Company delays or
interrupts Contractor’s work beyond the limits specified in the Specification,
Contractor shall be entitled to request reimbursement for the actual additional
costs incurred thereby.  Such request
shall be supported by detailed evidence of such additional costs.  Should Company wrongfully refuse to accept
such costs within seven (7) days of its receipt of Contractor’s requests,
then if Company has hereafter received seven (7) days additional written
notice by registered mail to Company, Contractor may stop work or terminate the
contract and recover from Company, payment for all work properly executed.

 

9.               If any part of said work provided for by this agreement was
commenced by Contractor under oral agreement prior to the execution of this
agreement, this written agreement shall apply thereto in the same manner as if
made before said work was commenced.

 

10.         No modification of this agreement and no authorization for
extras or additions or for eliminations or changes in specifications shall be
binding on Company unless it is in writing and signed by a duly authorized
representative of Company.

 

11.         COMPLIANCE WITH THE LAWS — Contractor expressly represents
that it and the materials, equipment or services covered by this order comply
with all applicable federal, state or local governmental statutes, regulations,
orders (including clauses in federal Executive Orders incorporated herein to
the extent required by law) and ordinances, including but not limited to the
following: the Fair Labor Standards Act of 1938, as amended, and regulations
thereunder; the Federal Food, Drug and Cosmetic Act, as amended, and
regulations thereunder; the Federal Hazardous Substances Act, as amended, and
regulations thereunder; applicable Environmental laws, regulations and
ordinances; the Occupational Safety and Health Act, and regulations thereunder;
the Federal Insecticide, Fungicide and Rodenticide Act, as amended, and
regulations 

 

 

thereunder; the Toxic Substances
Control Act, and regulations thereunder; Executive Order 11246 (relating to
non-segregated facilities and equal employment opportunity) Executive Order 11758
(relating to employment of the handicapped); Executive order 11701 (relating to
job listing of veterans), and Executive Order 11598 (relating to employment of
qualified disabled veterans and veterans of the Vietnam era), Executive Order
11625 (relating to utilization of minority business enterprises) and
regulations promulgated pursuant to the foregoing Orders.  In the event that any law referred to herein
is changed or amended, such changes or amendments are incorporated by reference
herein to the extent applicable, and Contractor agrees to comply with the
requirements of such changes or amendments. 
Contractor expressly agrees, as part of its performance under this order
to sign and promptly return to Company such separate guarantees and
certificates (affirming that it and any materials, equipment or services
covered by this order comply with applicable governmental statutes,
regulations, orders and ordinances) as Company may from time to time request
from Contractor.  Any such guarantees and
certificates are reasserted and incorporated by reference herein.

 

12.         Contractor shall maintain, at his sole cost and will require
any subcontractors he may engage to maintain, at all times while performing
work hereunder, the insurance coverage set forth in Company’s insurance
requirements as indicated on the reverse side of this form which is appended to
and forms a permanent part of this contract. 
ANY exception to these insurance requirements must be confirmed by
written agreement which must be appended to and form a permanent part of this
contract.

 

13.         Contractor covenants and agrees to fully defend, protect,
indemnify, hold harmless and render whole the Company, Partners, officers,
directors, employees and agents, from and against each and every claim, demand
or cause of action and any liability, cost and/or expense (including but not
limited to reasonable attorneys’ fees and expenses incurred in defense of the
Company, Partners, its officers, directors, employees and/or agents), for
damage or loss in connection therewith, which may be made or asserted by
Contractor, Contractor’s officers, directors, employees and/or agents, or which
may be made or asserted by any subcontractor, subcontractor’s officers,
directors, employees and/or agents, or which may be made or asserted by any
third party (including but not limited to personal injury or death or property
damage caused by, arising out of, or in any way incidental to, or in connection
with the performance of the work hereunder, including but not limited to those
situations where personal injury or death or property damage (or liability
therefore) was caused by the sole negligence of the Contractor, or any of its subcontractors
(and/or any of their respective employees and agents), by the negligence of any
combination of the Contractor or any of its subcontractors (and any of their
respective officers, directors, employees and/or agents), or where liability
for such personal injury or death or property damage with or without fault is
imposed on any theory of strict liability by operation of law, provided
however, that in no event shall Contractor be liable for any amount in any way
associated with injury, death, or property damage to the extent caused by
Company, or any party under its direction or control.

 

14.         If Contractor’s employees, subcontractors of others under
Contractor’s control perform services at Company’s premises or at Company’s
direction at premises of others, (1) such persons shall comply with all rules and
regulations of such premises and (2) Contractor shall keep materials and
the premises on which the work is to be done free and clear of all liens for
materials and labor incident to the performance of Contractor’s services,
hereunder.

 

15.         The drawings or other documents processed in relation to
this agreement, and the information therein contained are the property of
AVENTINE RENEWABLE ENERGY — AURORA WEST, LLC. which has furnished them in
confidence upon the understanding and condition that all persons, firms or
corporations receiving such drawings and information shall by the act of
receiving them be deemed to have agreed: To make no copy, duplication,
disclosure or use whatsoever of all or any part thereof except as expressly
authorized in writing by AVENTINE RENEWABLE ENERGY — AURORA WEST, LLC, not to
give, lend or otherwise dispose of such drawings or documents and to return
same promptly upon request.

 

16.         A waiver on the part of the Company of Contractor of the
breach of any term, provision, or condition of this contract shall not
constitute a precedent, nor bind either party hereto to a waiver of any
succeeding breach of the same or any other term, provision or condition of this
agreement.

 

17.         This contract shall be governed in all respects by the laws
of the State of Nebraska.

 

18.         Notwithstanding anything herein to the contrary, neither
Contractor nor Company shall be liable to the other for any consequential
losses or damages, 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.

 

19.         If any of the work requires the purchase of equipment or
materials or the procurement of services, Contractor shall, for the protection
of the Company, demand from all vendors and subcontractors guarantees,
warranties, indemnities and/or insurance coverage (collectively “guarantees”)
with respect to such equipment, materials and services, which shall be made
available to the Company to the full extent thereof.  Contractor’s liability with respect to such
equipment and materials obtained from vendors shall, except for Contractor’s
obligations to pay such vendors, be limited to procuring such guarantees from
such vendors and rendering all reasonable assistance to the Company for purposes
of enforcing same.

 

20.         Company shall fully defend, protect, indemnify and hold
Contractor and its affiliates(and their officers, directors, employees, and
agents) harmless against claimed or actual infringement or contributory
infringement of any patent, or infringement of any copyright or trademark, or
violation of any trade secret, arising out of or in connection with the Delta T
(n/k/a APTI) technology and equipment incorporated into said work, and shall
hold harmless Contractor and its affiliates (and their officers, directors,
employees, and agents) against any and all judgments, costs and expenses
(including attorney fees) incurred by Contractor (and their officers,
directors, employees, and agents)  by
reason of any such claim or suit thereof.

 

 

Exhibit B

AVENTINE RENEWABLE ENERGY —
Aurora West, LLC

 

To:

 

Subject:  Insurance Requirements C-2C

 

Gentlemen:

 

Any Contractor who is presently
working for, or who will be working for AVENTINE RENEWABLE ENERGY — AURORA
WEST, LLC (Company), that Contractor covenants and agrees to fully defend,
protect, indemnify, hold harmless and render whole the Company, its officers,
directors, employees and agents from and against each and every claim, demand
or cause of action and any liability, cost and/or expense (including but not
limited to reasonable attorneys’ fees and expenses incurred in the defense of
the Company, its officers, directors, employees and/or agents), for damage or
loss in connection therewith, which may be made or asserted by Contractor,
Contractor’s officers, directors, employees and/or agents, or which may be made
or asserted by any subcontractor, subcontractor’s officers, directors,
employees and/or agents, or which may be made or asserted by any third party
(including but not limited to Company’s officers, directors, employees and/or
agents), on account of personal injury or death or property damage caused by,
arising out of, or in any way incidental to, or in connection with the
performance of the work hereunder, including but not limited to, those
situations where personal injury or death or property damage (or liability
therefor) was caused by the negligence of, the Contractor, any subcontractor
(and/or any of their respective employees and agents), by the concurrent
negligence of any combination of the Contractor or any subcontractor (and any
of their respective officers, directors, employees and/or agents), provided
however, that in no event shall Contractor be liable for any amount in any way
associated with injury, death, or property damage to the extent caused by
Company, or any party under its direction or control..

 

Contractor shall maintain at its
sole cost, and shall require any subcontractors it may engage to maintain, at
all times while performing work hereunder, the insurance coverage set forth
below with companies satisfactory to Company with full policy limits applying,
but not less than as stated.  A
certificate naming the Company as an additional insured and evidencing the
Comprehensive General Liability and Excess Liability coverages specifically
quoting the indemnification provision set forth in this Agreement, shall be
delivered to the Company prior to commencement of the work.  Such certificate shall provide that any
change restricting or reducing coverage or the cancellation of any policies
under which certificates are issued shall not be valid as respects the Company’s
interest therein until the Company has received 30-days notice in writing of
such change or cancellation.  Further, it
shall state that it is primary coverage and not concurrent or excess over other
valid insurance which may be available to AVENTINE RENEWABLE ENERGY — AURORA
WEST, LLC.

 

Worker’s Compensation Insurance as
required by laws and regulations applicable to and covering employees of
Contractor engaged in the performance of the work under this Agreement.

 

Employer’s Liability Insurance
protecting Contractor against common law liability, in the absence of statutory
liability, for employee bodily injury arising out of the master-servant
relationship with a limit of not less than $1,000,000.00*.

 

Comprehensive General Liability
Insurance including products/completed operations with limits of liability of
not less than:  Bodily Injury
$2,000,000.00/$2,000,000.00 each occurrence/aggregate; Property Damage $1,000,000.00*
each occurrence/aggregate.  This policy
shall cover, among other risks, the contractual liability assumed under the
indemnification provision set forth in this Agreement.

 

 

Longshoresmen’s and Harborworkers’
Compensation Act Insurance to the extent required under such Act with regard to
the work performed hereunder.

 

Automobile Liability Insurance
including non-owned and hired vehicle coverage with limits of liability of not
less than:  Bodily Injury
$1,000,000.00/$1,000,000.00 per occurrence/aggregate; Property Damage
$1,000,000.00 each occurrence.

 

Excess Liability Insurance over
Comprehensive General Liability and Comprehensive Automobile Liability
coverages afforded by the primary policies described above, with minimum limits
of $20,000,000.00 excess of the specified limits.

 

Each policy shall be endorsed to
provide waiver of subrogation rights in favor of the Company, its subsidiaries
and affiliates and all other parties owning an interest in the property on
which work covered by this Agreement is to be performed.

 

Failure of the Contractor to keep
the required insurance policies in full force and effect during the work
covered by this Agreement and during any extensions, extra or additional work
agreed to by the Contractor hereunder shall constitute a breach of this
Agreement and Company shall have the right, in addition to any other rights, to
immediately cancel and terminate this Agreement without further cost to the
Company.

 

Nothing contained in these
provisions relating to coverage and amounts set out herein shall operate as a
limitation of Contractor’s liability in tort or contracted for under the terms
of this Agreement.

 

 

Exhibit C

AVENTINE RENEWABLE ENERGY —
AURORA WEST, LLC

 

OUTSIDE CONTRACTORS’ SAFETY
REQUIREMENTS   SH-100

 

I.  Safety

 

(A)      General Requirements

 

The Contractor and any personnel
under his jurisdiction shall continuously observe and enforce all applicable
governmental safety regulations and all safety rules and signs that have
been or may be established by Aventine Renewable Energy — Aurora West, LLC
(hereafter called “Company”) during the performance of this agreement.  Good housekeeping shall be maintained at all
times and proper safety procedures and equipment must be utilized for
protection of all personnel and facilities. 
These instructions are minimum requirements to be met by the Contractor
and are not all inclusive.

 

(B)        Before beginning work, the Contractor or his qualified
supervisor shall inspect premises, location of work and proximity to adjacent
facilities and examine all applicable Company safety rules and
instructions to determine to his satisfaction, the nature and extent of
difficulties and hazards.

 

(C)        Contractor shall promptly report in writing to Owner, all
accidents in connection with the work. 
Full details and statements of witnesses shall be included in reports on
accidents which result in injury, death or property damage.

 

(D)       All lost time injuries occurring and recorded by the
Contractor during the performance of the contract, shall be reported to the
Company in writing.  A meeting will be
held monthly between the Contractor and the Company to discuss lost time
injuries or illnesses incurred by the Contractor during the performance of this
agreement.  At the Company’s discretion,
no monthly meeting will be called if the Contractor has incurred no lost time
injuries in the most recent month.

 

(E)         The Company reserves the right to suspend Contractor’s
operations where, in its opinion, life or Company property is imperiled.  Contractor shall suspend work when notified
by the Company Representative, or when any personnel or equipment are exposed
to unreasonable hazards.  In the event of
any emergency, Contractor’s personnel shall assemble at a location remote from
the scene and await further instructions.

 

(F)         The Company reserves the right to regulate all ignition
sources by permits when and where deemed necessary in the interest of safety.

 

1.               CUTTING AND WELDING PERMITS — Before any cutting or welding
is performed in the Plant, the following rules shall be observed:

 

a)              Outside contractors shall contact the Plant person in charge
of the job who shall determine if cutting & welding permits are
required for the specific job and will make the necessary arrangements to
obtain cutting or welding permits if needed.

b)             Cutting or welding permits shall be renewed each day.

c)              Outside contractors shall provide adequate fire protection
equipment at the job site.

d)             Good housekeeping standards shall be maintained in cutting
and welding areas.

e)              Cutting and welding equipment shall be maintained and used
as per OSHA standards.

 

2.               “Alcohol Area Hot Work Permit” must be obtained for any work
in the alcohol production storage or loading areas, or any other areas defined
by the Plant contact.  Such permits must
be obtained from the production department.

 

(G)        Contractor shall obtain approval from the Plant contact
prior to moving a large crane or other heavy construction equipment from one
Plant area to another.  Caution is to be
exercised in the movement of heavy equipment on the Company’s roadways.  Flagmen or groundmen will be provided by
Contractor, as needed ahead of and behind heavy moving loads to ensure safe
movement of this equipment, the safety of other traffic, protection of plant
power lines, pipelines, supports and other operating lines, supports and other
operating equipment along the roadways. 
Contractor will be responsible for all damage to road surfaces and
adjacent structures as a result of its operations, normal wear and tear
excepted.

 

(H)       General.

 

1.               Contractor shall take all measures necessary to prevent
contamination of Owner’s products, whether finished or in process, during the
course of all construction or installation work performed by Contractor.

2.               No toxic materials shall be brought into the facility
without written permission of Owner, and then only subject to all requirements
of applicable law and such additional conditions of control, storage and
advance use as Owner may prescribe.

3.               Compressed gas and oxygen cylinders must be handled with
care and must be stored in an upright position held by straps or chains to
prevent their falling over.  Cylinders
shall never be allowed to fall or otherwise receive shock.

4.               Contractor’s equipment, supplies and building materials
shall be kept in order at all times to eliminate accident hazard and possible
injury to Owner’s employees and the security is the responsibility of the
Company.  Company shall consult with
Contractor and hire a security firm familiar with union picketing and related
interferences so as to minimize disruption to the Work.

5.               At the end of the work day, work areas shall be fenced,
boarded or secured as necessary.  All of
the Contractor’s equipment shall be shut off and all obstacles removed from all
walking areas.

 

(I)            All drivers of Contractor’s vehicles are required to observe
speed limits (15 mph) and posted instructions on Company roads.  Reckless driving or non-observance of
these instructions will be cause for withdrawal of driving privileges.

 

(J)           Movement of Contractor’s personnel on Company property MUST
be confined to the location of the work to which they are assigned.  In going to and from designated work
assignments, or to lunchrooms or restrooms (if agreed upon), Contractor’s
personnel must stay on established roads and walks.  They must not walk through buildings or
shops.

 

1.               All contractor supervisors will sign in and out on a daily
basis at the Security Office.

2.               All contractor employees and equipment will enter and leave
the Plant via the Main Gate or Contractor’s gate as directed by Security.

3.               All contractor employees are to park their personal vehicles
in the CONTRACTOR’S PARKING LOT, which is located south of the Main Gate, or as
directed by Security.

4.               Contractor trucks are NOT TO BE USED TO CARRY EMPLOYEES TO
AND FROM THE WORK AREA.

 

(K)       Contractor must provide first aid facilities as may be
needed for his employees.  Except in the
case of serious accidents where the employee’s life or health may be seriously
endangered due to lack of prompt attention, Contractor’s personnel are not to
use the Company’s first aid facilities.

 

 

(L)         The Contractor is responsible for and will provide all
necessary training of Contractor’s personnel so that they will be familiar with
the pertinent Company rules and regulations, and can safely perform the
job.  All Company rules and
regulations are minimum requirements to be met by the Contractor and are not
all inclusive.

 

(M)    The Contractor is to provide all necessary safety equipment.

 

(N)       Contractor shall rope off or barricade all work areas as a
protective measure to prevent injury to Owner’s employees, including work areas
around and under overhead scaffolds and staging, floor openings, open shafts,
overhead work (i.e., cutting through floors, tower constructions, excavations, etc.).  Contractor shall provided and maintain
suitable coverings or barricades on floor openings.  Planks used on overhead beams or scaffolds
shall be tied down for added safety and removed when work is finished.  The Company will assume no responsibility
whatsoever for possible damage to Contractor’s employees’ vehicles or other
personal property while within the confines of the Company.

 

(O)       Manlifts.  All
employees of outside contractors are FORBIDDEN to ride Plant manlifts.

 

(P)         For their own protection, all Contractor’s employees must
abide by the following safety dress rules:

 

1.               Be fully clothed — shirts with sleeves and trousers (no
shorts).

2.               Hard hats are mandatory in all areas of the Plant, except in
the offices, lunchrooms, restrooms and parking lot (outside Plant).

3.               Safety Glasses are mandatory in all areas of the Plant,
except in offices, lunchrooms, restrooms and parking lot (outside Plant).

4.               Footwear — shoes of durable work type must be worn.  Tennis or canvas shoes are not allowed in the
Plant.  Company encourages the use of
steel toed safety shoes.

5.               Hearing Protection is mandatory in those areas of the Plant
designated “Hearing Protection Required”, OSHA 1910.95.

 

(Q)       Contact lenses should not be worn in areas where there is a
potential exposure to corrosive, irritating or toxic chemical vapors, mists,
fumes or dusty environment.  A
contaminant may permeate the lens and be held in contact with the eye, thereby
producing eye damage.  Wearing contact
lenses in contaminated atmospheres with a full-face respirator is prohibited by
Federal regulation: OSHA 29 CFR 1910.134(e).

 

(R)        Gambling, drunkenness, fighting, firearms, habit-forming
drugs, intoxicating liquor and “Practical Joking” or “Horseplay” are not
permitted on Company property.

 

(S)         Radios capable of receiving commercial broadcast are not
permitted in the Plant.

 

(T)        Cameras are not allowed in the Plant.

 

(U)       Running is prohibited in the Plant.

 

(V)        Crossing standing railcars by climbing though cars or
climbing over the car couplers is strictly forbidden.  Care must be taken that no railcar switching
or pulling is being done before crossing the tracks at the end of the cars.

 

II. Fire Regulations

 

(A)      No smoking shall be permitted anywhere on Owner’s premises
except in areas clearly designated for that purpose.

(B)        Storage or use of combustible or otherwise hazardous
materials is prohibited except in amounts allowed by Owner’s fire insurance
underwriters.  Flammable liquids, such as
gasoline, kerosene, alcohol, diesel oil, etc. must be kept under lock and
key in locations designated by the Owner.

(C)        At the end of each day, Contractor shall dispose of any
combustible or otherwise hazardous debris and remove all empty gas and oxygen
cylinders.

(D)       No gasoline, fuel oil, alcohol or other flammables are
allowed on the premises without the permission of the Owner.

(E)         No tar pots or similar equipment are allowed on any roof.

(F)         All welding will be performed by properly grounding directly
to piece being welded and requires Plant permits.

(G)        All tarpaulins must be fire retardant.

(H)       All fires and accidents must be reported to Owner’s Project
Engineer.

(I)            Contractor is prohibited from using any stud riveter
depending on any explosive cartridge as a means of operations.

 

I have read, understand and have
received a copy of the above requirements regarding:

 

I.      Safety

II.    Fire Regulations

 

and understand my responsibility as
a representative of my employer.

 

 

	
  CONTRACTOR EMPLOYEE

  	
   

  
	
   

  	
   

  
	
  COMPANY EMPLOYEE 

  	
   

  
	
   

  	
  (WITNESS)

  

 

 

Exhibit D

AVENTINE RENEWABLE ENERGY —
AURORA WEST, LLC

“Owner”

 

GENERAL CONDITIONS FOR
CONSTRUCTION WORK   B-241

 

I.  General

 

(A)      The intent of these General Conditions and such Drawings and
Specifications as may be specifically referred to, unless otherwise specified,
is to provide for all labor, materials, tools, appliances, equipment and
services of every kind necessary for the proper execution of the work, and the
terms and conditions of payment therefor. 
No oral modification of these conditions, Drawings and Specifications,
or any of the documents comprising the contract is permissible.

 

(B)        The contract documents are to be considered as one, and
whatever is called for by any one of the documents shall be binding as if
called for by all.  Your company, the “Contractor”,
shall be responsible for bringing any contradictions to the attention of the
Owner.

 

(C)        Three (3) sets of contract Drawings and Specifications
will be furnished to Contractor without charge (for bidding purposes, one (1) set
only).  Additional sets will be furnished
on request at the cost of the reproduction as established by Owner.  All Drawings and Specifications shall remain
the property of Owner and shall be returned upon request.  The Drawings, in general, are prepared in
scale.  Dimensions used shall not be
those obtained, but shall be those read directly or computed.  Where dimensions are not given on the
Drawing, Contractor shall be responsible for the routing or location in the
most practical manner consistent with the operation intended, free from
interferences and from an unsightly appearance. 
In general, Contractor is expected to make minor modifications or
changes in dimension in order to adapt his work to existing conditions and
avoid obstructions or hindrances. 
CONTRACTOR SHALL INFORM OWNER’S CONSTRUCTION SUPERINTENDENT OR
REPRESENTATIVE, PRIOR TO CONSTRUCTION, OF ANY CONFLICTS BETWEEN THE CONTRACT
DOCUMENTS, OR ANY OBSTRUCTIONS OR HINDRANCES THAT MIGHT INTERFERE WITH OR
NECESSITATE CHANGES TO THE WORK.  There
shall be no variation from Owner’s Drawing and Specifications without express
prior written approval of Owner.  Should
extra costs be involved, me procedures provided in Section IV hereof shall
be followed.  Contractor shall keep an
accurate record during construction of all variations between the work, as
shown in the Drawings, and the actual installation.  Contractor shall inform Owner of these
variations, in wiring, and by marked-up drawing, completely dimensioned.

 

(D)       At or prior to completion of the work, Contractor shall
furnish to Owner as-built tracings or other reproducible copies of all
Contractor’s shop drawings.  Final
payment hereunder may be withheld by Owner until such as-built tracings have
been furnished.

 

(E)         Owner’s review and written approval of Contractor’s shop
drawings shall not relieve Contractor from final responsibility for variations
from Drawings and Specifications furnished therewith or from responsibility for
errors made by Contractor in such shop drawings.

 

(F)         Contractor shall not copy, duplicate or use whatsoever or
any part of me drawings or documents provided by the Owner, except as expressly
authorized in writing by the Owner, and shall not give, lend or otherwise
dispose of such drawings or documents and shall return same promptly upon
request.

 

II. Employee and Sub- Contractors

 

(A)      Except as otherwise noted, Contractor shall provide and pay
for all materials, labor, tools, water, power and other items necessary to
complete the work.

 

(B)        Before commencing work on this contract, Contractor shall
submit to Owner a list of all his representatives, employees and associates who
will be connected with the work hereunder. 
Contractor shall secure Owner’s approval of this list before any person
thereon seeks entry to Owner’s property. 
Such person shall comply with Owner’s regulations concerning entry to
the property.

 

(C)        No work may be sub-contracted without Owner’s written
approval.  If such approval is granted by
Owner, before commencing work, Contractor shall submit to Owner a list of all
subcontractors to be used and Contractor shall secure Owner’s approval of this
list.  Whether or not expressly so stated
it is understood that Contractor assumes the responsibility for any and all
acts and performance on the part of his sub-contractors.  The term “Sub-contractor(s)” throughout
includes all tiers of sub-contractors (e.q., sub-sub-contractor(s), etc.).

 

(D)       Contractor shall not begin work hereunder, nor leave the
completed job without first notifying Owner’s representative.

 

(E)         Contractor shall inform Owner before shipping any material
or equipment to be delivered to the jobsite.

 

(F)         Contractor shall have on the jobsite, at all times while
work is being done, a competent superintendent satisfactory to Owner.

 

(G)        This contract is personal in nature and no rights may be
assigned without Owner’s written approval.

 

III. Overtime Work

 

Contractor shall work overtime, if
so directed by Owner in writing.  In that
event, Owner shall be required to reimburse Contractor only for the actual
overtime premium portion of its payroll costs and the applicable insurance
premiums and payroll taxes thereon. 
Contractor shall make no charge for rental equipment, use of tools,
overhead expense, profit or on any other account.

 

IV. Surveys and Permits

 

(A)      Owner shall furnish all surveys unless otherwise
specified.  All permits and licenses
necessary for the prosecution of the work, whether of a temporary nature or for
permanent structures or permanent changes in existing facilities shall be
secured and paid for by Contractor, unless otherwise specified.  Contractor shall comply with all laws and
regulations bearing on the conduct of the work and shall notify Owner if the
Drawings and Specifications are at variance therewith.

 

(B)        Owner shall establish the base line and reference elevation
for the commencement of the work. 
Contractor shall furnish and place all additional stakes, templates and
benchmarks necessary for marking and maintaining points, lines and elevations
and preserve same, as required. 
Contractor shall be responsible to see that the finished work complies
with the contract drawings and lines and grades established.  Contractor shall preserve drawings and
protect all survey points, including benchmarks and monuments which have been
established prior to or during the course of the work.

 

V. Protection of Work, Property and
Person

 

(A)      Contractor shall adequately protect the work, adjacent
property and the public, in connection with the work and shall be responsible
for any damage or injury due to his act or negligence.

 

(B)        Before any work begins, general working conditions shall be
approved by Owner.

 

(C)        All exposed operating equipment which is susceptible to
damage shall be protected at all times by Contractor.

 

VI. Inspection of Work

 

Contractor shall permit and facilitate
inspection of the work by Owner and its agents and public authorities at all
reasonable times.

 

 

VII. 
Changes in Scope of Work

 

Owner may order changes in the work,
the contract sum being adjusted accordingly. 
All such orders and adjustments shall be in writing. Claims by
Contractor for extra cost must be made in writing and approved by Owner’s
Purchasing Department, in writing before Contractor executes the work involved.

 

VIII. Correction of Work and
Warranties

 

Contractor warrants the workmanship
furnished hereunder to be free from defects and to be of the kind and quality
described.  Contractor shall re-execute
any work that fails to conform to the requirements of the contract whenever
non-conformity appears during the progress of the work, and shall remedy any
non-conformity and any defects due to faulty materials procured by Contractor
or Contractor’s workmanship.    If within
one year from the date of Owner’s acceptance the workmanship fails in any
respect to meet the warranties specified, Owner may require Contractor, at its
own expense, to take such measure as may be necessary to meet said warranties. EXCEPT FOR CONTRACTOR’S WARRANTIES EXPRESSLY PROVIDED HEREIN,
CONTRACTOR MAKES NO REPRESENTATIONS, GUARANTEES, WARRANTIES, OR CLAIMS WITH
RESPECT TO, AND ASSUMES NO RESPONSIBILITY FOR, THE PERFORMANCE OR USE OF THE
COMPLETED WORK AND SHALL HAVE NO RESPONSIBILITY FOR TESTING OR OPERATION OF THE
WORK.  CONTRACTOR EXPRESSLY DISCLAIMS ALL
IMPLIED WARRANTIES AND GUARANTEES OF ANY KIND OR NATURE, INCLUDING ANY
IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR USE,
AND OPERABILITY.

 

IX. 
Owner’s Right to Terminate Contract

 

If Contractor, at any time, defaults
in the performance of the work or violates any provisions of the contract,
Owner, after seven (7) days’ written notice by registered mail to
Contractor, without prejudice to any other remedy it may have, may make good
the deficiencies and deduct the cost of doing so from any monies then or
thereafter due Contractor or, at Owner’s option, may terminate the contract,
take possession of all materials, tools and appliances paid for by Owner and
finish the work by such means as it sees fit. 
If the unpaid balance of the contract price exceeds the cost of
finishing the work, such excess shall be paid to Contractor, but if such cost
exceeds such unpaid balance, Contractor shall pay the difference to Owner.

 

X. Payments

 

Payments shall be made as provided
in the Contract.  Acceptance of the final
payment by Contractor shall not constitute a waiver of any and all claims by
Owner.  Final payment does not relieve
Contractor from any and all obligations stipulated under this Contract.

 

XI. 
Liens

 

At Owner’s option, Contractor shall
provide a performance bond at the beginning of the work, lien waivers for every
payment in the event progress payments are required and/or a final lien waiver
at the completion of the work.  If
required, final payment shall not be due until Contractor has delivered to
Owner a complete conditional release of all liens arising out of this contract
and receipts in full covering all labor and materials for which a lien could be
filed or in lieu of such receipts a bond satisfactory to Owner indemnifying it
against any lien.

 

XII. 
Separate Contracts

 

Owner has the right to let separate
contracts in connection with the work subject to the conditions of paragraph II(C) and
Contractor shall properly cooperate with any other contractors.

 

XIII.  Clean-up

 

Contractor shall keep the premises
free from accumulation of waste material and rubbish and at the completion of
the work it shall leave the premises broom-clean.  Any materials used by Contractor which adhere
to floors, walls, posts, beams, ceilings, equipment, etc., and any stains
resulting therefrom must be removed by Contractor at the completion of the
work.

 

XIV. Protection of Product

 

(A)      Glass, china and like materials not required by
specifications shall not be brought onto Owner’s processing areas.  The most likely means of entry of such
materials in the form of food containers carried by Contractor’s employees,
such as glass jars, china cups, drink bottles, etc.  Owner’s Construction Superintendent, or
representative, shall define the specific areas where these materials are
prohibited.

 

(B)        When work is scheduled in or near a product processing area,
such work shall not be started without the sanction of Owner.

 

(C)        Demolition work, including cutting of concrete and wood,
shall not be started in or near a product processing area until the area is
either walled off or protected by means of suitable-hung tarpaulins or
protected in some other manner approved by Owner.

 

XV. Sanitation Regulations

 

(A)      It shall be the responsibility of Contractor to remove
litter, debris, trash, etc. from the job site on a daily basis and to
maintain the work site in as neat a manner as practicable.

 

(B)        Spitting is prohibited in all buildings.

 

XVI. Acceptance, Procedure, Conflict

 

Acceptance by Contractor of order or
contract to do work indicated will be considered by Owner as evidence that
Specifications and Drawings are understood and can be executed in accordance
thereto.  Any ambiguity or conflict must
be corrected before acceptance of order by Contractor.  “THE GENERAL CONDITIONS OF THE CONTRACT FOR
THE CONSTRUCTION OF BUILDINGS” being the standard form of the American
Institute of Architects, Form A201, latest issue, shall serve to answer
all questions or conditions that may arise between Owner and Contractor, on
points not covered by the contact and these General Conditions and any other
additional specification that may be written to govern a particular project of
work, in conjunction with the drawings that may be prepared for such project.

 

XVII. Performance Bond

 

If so required by Owner, Contractor
shall furnish at Owner’s expense a surety company material and performance
bond, which is to be satisfied to the Owner in every respect.

 

XVIII. Independent Contractor Status

 

It is understood and agreed that
your Contractor’s status under the Contract, is that of an independent
contractor rather than that of an agent or employee of Owner.  Contractor shall have the sole responsibility
for the satisfaction of any and all claims made by third parties on account of
its conduct or that of its employees or agents under the performance of this Purchase
Order.

 

 

Exhibit E

AVENTINE RENEWABLE ENERGY —
AURORA WEST, LLC

 

Contractor’s Scope of Work

 

See attached consisting of three
pages.

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