Document:

Exhibit 4.4

ESCROW AGREEMENT

This Escrow Agreement
(the “Agreement”) dated as of                          ,
2007 is entered into by and between Akron Riverview Corn Processors, LLC, an
Iowa limited liability company (the “Company”) and                                      ,
(the “Escrow Agent”).  The “Escrow Agent”
and the “Company” may also be collectively hereinafter referred to as the “Parties.”

RECITALS

WHEREAS, the Company proposes to
offer a minimum of 70,000 and a maximum of 100,000 of its Membership Units (the
“Units”) at a price of $1,000 per Unit, with a required minimum investment of
25 Units and in additional increments of one (1) Unit, in an offering in the
States of Iowa, Nebraska, South Dakota, and possibly other states, made
pursuant to a federal registration under the provisions of the Securities Act
of 1933 (the “Act”), as amended (the “Offering”) or under exemption from
registration under the Act;

WHEREAS, the Company will file a
registration statement (as may be amended) (the “Registration Statement”) to
register the Units with the Securities and Exchange Commission, the States of
Iowa, Nebraska, South Dakota, and possibly other states;

WHEREAS, the Company will allow
investors in the Offering to deliver the purchase price of the subscribed Units
in installments;

WHEREAS, the Company desires to
comply with the requirements of the Securities Act of 1933 and of the various
state regulatory statutes and regulations, and desires to protect the investors
in the Offering by providing, under the terms and conditions herein set forth,
for the return to subscribers of the money which they may pay on account of
purchases of Units in the Offering if the Minimum Offering Amount (as
hereinafter defined) is not deposited with the Escrow Agent; and

NOW, THEREFORE, in
consideration of the premises the Parties agree as follows:

1.             ACCEPTANCE OF
APPOINTMENT:  Escrow
Agent hereby agrees to act as escrow agent under this Agreement.  The Escrow Agent shall have no duty to
enforce any provision hereof requiring performance by any other party
hereunder.

2.             ESTABLISHMENT OF ESCROW
ACCOUNT:  An escrow
account (the “Escrow Account”) is hereby established with the Escrow Agent for
the benefit of the investors in the Offering. 
Except as specifically provided in this Agreement, the Escrow Account
shall be created and maintained subject to the customary rules and regulations
of the Escrow Agent pertaining to such accounts.

3.             OWNERSHIP OF ESCROW
ACCOUNT:  Until such time
as the funds deposited in the Escrow Account (the “Escrow Funds”) shall equal
the Minimum Offering Amount (as hereinafter defined), all funds deposited in
the Escrow Account by the Company shall not become the property

of the Company or be subject to
the debts of the Company or any other person but shall be held by the Escrow
Agent solely for the benefit of the investors who have purchased Units in the
Offering.

4.             ESCROW FEES:  The Company hereby agrees to pay the Escrow
Agent a payment for ordinary services rendered hereunder in the amount of $         
per month (the “Escrow Fee”) for the period that the Escrow Agent is providing
such services; however, in no event shall the Escrow Fee exceed $         .  Notwithstanding the foregoing, no fee paid
under this Agreement shall exceed the amount of interest on the Escrow Account
and shall be paid from interest only and not from principal.

5.             DEPOSIT OF PROCEEDS:  All
proceeds from sales of Units in the Offering shall be delivered by the Company
to the Escrow Agent, within 48 hours of the receipt thereof from investors,
endorsed (if appropriate) to the order of the Escrow Agent, together with an
appropriate written statement setting forth the name, address and social
security number/taxpayer identification number of each person or entity
purchasing Units, the number of Units purchased, and the amount paid by each
such purchaser.  Any such proceeds
deposited with the Escrow Agent in the form of uncollected checks shall be
promptly presented by the Escrow Agent for collection through customary banking
and clearing house facilities.  As the
proceeds of each sale are deposited with the Escrow Agent, the Company shall
reserve the number of Units confirmed to the purchaser thereof in connection
with such sale.

6.             INVESTMENT OF ESCROW
FUNDS:  The Escrow Funds
shall be credited by Escrow Agent and recorded in the Escrow Account.  The Escrow Agent shall be permitted, and is
hereby authorized to deposit, transfer, hold and invest all funds received
under this Agreement, including principal and interest, in Federal Government Obligations
or obligations issued and/or guaranteed as to principal and interest by
agencies or instrumentalities of the U.S. Government or common funds or mutual
funds which invest primarily in such obligations.  Any interest received by Escrow Agent with respect to the Escrow Funds
shall be paid pursuant to the terms of this Agreement; however, the Escrow
Agent does not guarantee the return of any funds in excess of the principal
deposits.

7.             TERMINATION OF ESCROW:
 This Agreement and the Escrow created hereunder shall be terminated as
provided in paragraph 8 hereof or as of the date (the “Termination Date”) one
year and one day following the date upon which the Securities and Exchange
Commission authorizes the Offering (the “Offering’s Effective Date”), provided;
however, that if prior to Termination Date, the Company has sold membership
units equal to the minimum offering amount and the Company has advised the
purchasers of those membership units to remit to the Escrow Agent the balance
of the purchase price, then the Escrow may continue beyond the Termination Date
until all Funds have been paid and the conditions for releasing the Funds have
been satisfied as set forth in subsection 8(C) herein.  In no event shall this date be later than
three (3) months following the Termination Date.  The Company shall notify Escrow Agent of the
Offering’s Effective Date within thirty (30) days of the receipt of notice of
the Offering’s Effective Date from the Securities and Exchange Commission.

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8.             DISPOSITION OF ESCROW
FUNDS:  The Escrow Agent
shall have the following duties and obligations under this Agreement:

A.            The Escrow Agent shall send a written notice
acknowledging the receipt of the Escrow Funds every seven (7) days to the
Company.

B.            The Escrow Agent shall give the Company prompt written
notice when the Escrow Funds equal $7,000,000 (exclusive of interest), which is
10% of the Minimum Offering Amount. 
Following receipt of such notice, the Company will advise the purchasers
of Units to remit to the Escrow Agent the balance of the purchase price within
30 days.  Thereafter, Escrow Agent shall
give the Company written notice acknowledging the receipt of the Escrow Funds
every seven (7) days.  The Escrow Agent
shall give the Company prompt written notice when the Escrow Funds total
$70,000,000 (exclusive of interest).

C.            At the time (and in the event) that: (a) the Escrow Funds
shall, during the term of this Agreement, equal $70,000,000  in subscription proceeds (exclusive of
interest) (the “Minimum Offering Amount”); 
(b) the Escrow Agent shall have received written confirmation
from the Company that the Company has obtained a written debt financing
commitment for debt financing ranging from a minimum of $82,500,100 to a
maximum of $112,500,100;
(c) the Escrow Agent shall have received written confirmation from the Company
that the Company has affirmatively elected in writing to terminate this
Agreement; and (d) the Escrow Agent shall have provided to each state
securities department in which the Company has registered its securities for
sale an affidavit stating that the foregoing requirements (a), (b) and (c) of
this subsection 8(C) have been satisfied; and (e) the state securities
commissioners have consented to the release of the funds on deposit, then this
Agreement shall terminate, and the Escrow Agent shall promptly disburse the
funds on deposit, including interest, to the Company to be used in accordance
with the provisions set out in the
Registration Statement.  Notwithstanding
any other provision of this Agreement, under no circumstances shall the South
Dakota Division of Securities be required or requested by the Company or the
Escrow Agent to (i) consent to the disbursement of Escrow Funds; or (ii)
recognize the Company’s fulfillment of its obligations pursuant to the terms of
this Agreement.  The Company will deliver
a copy of the Registration Statement to the Escrow Agent upon execution of this
Agreement.  The Escrow Agent will have no
responsibility to examine the Registration Statement with regard to the Escrow
Account or otherwise, nor shall Escrow Agent have any duty to ensure that
Company complies with the Registration Statement.  Upon the making of such disbursement, the
Escrow Agent shall be completely discharged and released of any and all further
responsibilities hereunder.

D.            In the event the Escrow Funds do not equal or exceed the
Minimum Offering Amount on or before the Termination Date or if the Company has
not received a written debt financing commitment as described herein on or
before the Termination Date, the Escrow Agent shall return to each of the
purchasers of the Units in the Offering, as promptly as possible after such
Termination Date and on the basis of its records pertaining to the Escrow
Account:  (a) the sum

 3
 

which each purchaser initially
paid in on account of purchases of the Units in the Offering and (b) each
purchaser’s portion of the total interest earned on the Escrow Account as of
the Termination Date, (c) reduced by the transaction fees provided in Section
10 hereof.  Computation of any purchaser’s
share of the net interest earned will be a weighted average based on the
proportion of such purchaser’s deposit in the Escrow Account from the Offering
to all such purchasers’ deposits held by the Escrow Agent and upon the length
of time in days such deposit was held in the Escrow Account as compared to all
such deposits.  All computations with
respect to each purchaser’s allocable share of net interest shall be made by
the Escrow Agent, which determinations shall be final and conclusive.  Any amount paid or payable to a purchaser
pursuant to this paragraph shall be deemed to be the property of such
purchaser, free and clear of any and all claims of the Company or its agents or
creditors; and the respective purchases of the Units made and entered into in
the Offering shall thereupon be deemed, ipso facto, to be cancelled without any
further liability of the purchasers or any of them to pay for the Units
purchased.  At such time as the Escrow
Agent shall have made all the payments called for in this paragraph, the Escrow
Agent shall be completely discharged and released of any and all further
responsibilities hereunder, and the Units reserved (as provided in Section 5)
shall be released from such reservation, except that Escrow Agent shall be
required to prepare and issue a single IRS Form 1099 to each investor in the
event that funds are returned to investors.

9.             LIABILITY OF ESCROW
AGENT:  In
performing any duties under the Escrow Agreement, the Escrow Agent shall not be
liable to the Company, any subscriber/purchaser or any party for damages,
losses, or expenses, except for gross negligence or willful misconduct on the
part of the Escrow Agent.  The Escrow
Agent shall not incur any such liability for (a) any act or failure to act made
or omitted in good faith, or (b) any action taken or omitted in reliance upon
any instrument, including any written statement or affidavit provided for in
this Agreement that the Escrow Agent shall in good faith believe to be genuine,
nor will the Escrow Agent be liable or responsible for forgeries, fraud,
impersonations, or determining the scope of any representative’s
authority.  In addition, the Escrow Agent
may consult with legal counsel in connection with the Escrow Agent’s duties
under this Agreement and shall be fully protected in any action taken,
suffered, or permitted by it in good faith in accordance with the advice of
counsel.  The Escrow Agent is not
responsible for determining and verifying the authority of any person acting or
purporting to act on behalf of any party to this Agreement.

10.           FEES AND EXPENSES:  In the event the Escrow Funds do not equal or
exceed the Minimum Offering Amount before the Termination Date or the Company
does not receive a written debt financing commitment as described herein before
the Termination Date, the Escrow Agent shall be entitled to a fee of $         
per purchaser, which fees shall be paid from the interest on the Escrow Account
only and not from principal.  In the
event the Escrow Agent renders any service not provided for in this Agreement,
or if the Company requests a substantial modification of its terms, or if any
controversy arises, or if the Escrow Agent is made a party to, or intervenes
in, any litigation pertaining to this escrow or its subject matter, the Escrow
Agent shall be reasonably compensated for such extraordinary services and
reimbursed for all costs, attorneys’ fees, including allocated costs of
in-house counsel, and expenses occasioned by such

 4
 

default, delay, controversy or litigation and the
Escrow Agent shall have the right to retain all documents and funds at any time
held by the Escrow Agent in this escrow until such compensation, fees, costs
and expenses are paid.  Unless otherwise
provided, upon demand, the Company will pay all of the Escrow Agent’s usual
charges and the Escrow Agent may deduct such sums from the interest on the
Escrow Account only and not from principal deposited to the Escrow Account.

11.           CONTROVERSIES:  If any controversy arises between the Parties
to this Agreement, or with any other party, concerning the subject matter of
this Agreement, its terms or conditions, the Escrow Agent will not be required
to determine the controversy or to take any action regarding it. The Escrow
Agent may hold all documents and funds and may wait for settlement of any such
controversy by final appropriate legal proceedings or other means as, in the
Escrow Agent’s discretion, the Escrow Agent may require, despite what may be
set forth elsewhere in this Agreement. 
In such event, the Escrow Agent will not be liable for interest or
damage.  Furthermore, the Escrow Agent
may at its option file an action of interpleader requiring the Parties to
answer and litigate any claims and rights among themselves.  The Escrow Agent is authorized to deposit
with the clerk of the court all documents and funds held in escrow, except all
costs, expenses, charges and reasonable attorneys’ fees incurred by the Escrow
Agent due to the interpleader action and which the Company agrees to pay.  Upon initiating such action, the Escrow Agent
shall be fully released and discharged of and from all obligations and
liability imposed by the terms of this Agreement.

12.           INDEMNIFICATION OF ESCROW AGENT:  The Company and its successors and assigns
agree jointly and severally to indemnify and hold the Escrow Agent harmless
against any and all losses, claims, damages, liabilities, and expenses,
including reasonable costs of investigation, counsel fees, including allocated
costs of in-house counsel and disbursements that may be imposed on the Escrow
Agent or incurred by the Escrow Agent in connection with the performance of its
duties under this Agreement, including but not limited to any litigation
arising from this Agreement or involving its subject matter.  The Escrow Agent shall have a first lien on
the property and papers held under this Agreement for such compensation and
expenses.

13.           RESIGNATION OF ESCROW AGENT:  The Escrow Agent may resign at any time upon
giving at least 30 days written notice to the Company provided, however, that
no such resignation shall become effective until the appointment of a successor
escrow agent which shall be accomplished as follows:  The Company shall use its best efforts to
obtain a successor escrow agent within 30 days after receiving such notice.  If the Company fails to agree upon a
successor escrow agent within such time, the Escrow Agent shall have the right
to appoint a successor escrow agent authorized to do business in the state of
Iowa.  The successor escrow agent shall
execute and deliver an instrument accepting such appointment and it shall
without further acts, be vested with all the estates, properties, rights,
powers, and duties of the predecessor escrow agent as if originally named as
escrow agent.  The Escrow Agent shall
thereupon be discharged from any further duties and liability under this
Agreement.

 5
 

14.           AUTOMATIC SUCCESSION:  Any company into which the Escrow Agent may
be merged or with which it may be consolidated, or any company to whom the
Escrow Agent may transfer a substantial amount of its global escrow business,
shall be the Successor to the Escrow Agent without the execution or filing of
any paper or any further act on the part of any of the Parties, anything herein
to the contrary notwithstanding.

15.           MISCELLANEOUS

(a)  GOVERNING LAWS:  This Agreement is to be construed and
interpreted according to Iowa law.

(b)  COUNTERPARTS:  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. The exchange of copies
of this Agreement and of signature pages by facsimile transmission shall
constitute effective execution and delivery of this Agreement as to the parties
and may be used in lieu of the original Agreement for all purposes. Signatures
of the parties transmitted by facsimile shall be deemed to be their original
signatures for all purposes.

(c)  NOTICES:  All instructions, notices and demands herein
provided for shall be in writing and shall be deemed to have been duly given
(a) on the date of service if served personally on the party to whom notice is
to be given; (b) on the day of transmission if sent by facsimile transmission
to the facsimile number given below and telephonic confirmation of receipt is promptly
obtained after completion of transmission; (c) on the next day on which such
deliveries are made in Marcus, Iowa when delivery is to Federal Express or
similar overnight courier or the Express Mail service maintained by the United
States Postal Service; or (d) on the fifth day after mailing if mailed to the
party to whom notice is to be given, by first class mail, registered or
certified, postage prepaid and properly addressed, return receipt requested, to
the party as follows:

	
  If to the Company:

  	
   

  	
  If to the Escrow Agent:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Akron Riverview
  Corn Processors, LLC

  	
   

  	
   

  	
   

  
	
  4808 F Avenue

  	
   

  	
   

  	
   

  
	
  Marcus, IA 51035

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

With a required copy to:

BrownWinick

666 Grand Avenue, Suite 2000

Attn: Bill Hanigan

Des Moines, IA  50309

Fax:  (515) 323-8573

Telephone:  (515) 242-2400

 6
 

(d)           AMENDMENTS:  This Agreement may be amended or modified and
any of the terms, covenants, representations, warranties or conditions hereof
may be waived, only by a written instrument executed by the parties hereto, or
in the case of a waiver, by the party waiving compliance.  Any waiver by any party of any condition or
of the breach of any provision, term, covenant, representation or warranty
contained in the Agreement, in any one or more instances, shall not be deemed
to be nor construed as further or continuing waiver of any such conditions or
of the breach of any other provision, term, covenant, representation or
warranty of this Agreement.

(e)           ENTIRE AGREEMENT:  This Agreement contains the entire understanding
among the parties hereto with respect to the escrow contemplated hereby and
supersedes and replaces all prior and contemporaneous agreements and
understandings, oral or written, with regard to such escrow.

(f)            NON-ENDORSEMENT:     The undersigned acknowledges that                      
is acting only as an escrow agent in connection with the offering of the
Securities described herein, and has not endorsed, recommended or guaranteed
the purchase, value or repayment of such Securities.  The Company represents and agrees that it has
not made nor will it in the future make any representation that states or
implies that the Escrow Agent has endorsed, recommended or guaranteed the
purchase, value, or repayment of the Securities offered for sale by the
Company.

IN WITNESS
WHEREOF, the parties hereto have hereunto affixed their signatures as of the
day and year first above written.

	
  The Company

  	
   

  	
  Escrow Agent

  
	
   

  	
   

  	
   

  
	
  Akron Riverview
  Corn Processors, LLC

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  	
   

  	
  Its:

  	
   

  	
   

  
								

 

 7Exhibit 10.1

	
  [FAGEN, INC. LOGO]

  	
   

  	
   

  	
   

  	
  501 West Hwy. 212, P.O.
  Box 159

  
	
   

  	
   

  	
  www.fageninc.com

  	
   

  	
  Granite Falls, MN 56241

  
	
   

  	
   

  	
   

  	
   

  	
  320-564-3324

  
	
   

  	
   

  	
   

  	
   

  	
  320-564-3278 fax

  

 

March 1, 2007

Akron Riverview Corn Processors, LLC

Attention:  Steve Roe

4808 F Avenue

Marcus, IA 51035

Re:          Akron Riverview Corn Processors, LLC
Akron, Iowa Ethanol Project

Dear Steve:

This letter of intent
will confirm our discussions regarding the proposed terms and conditions under
which Fagen, Inc. (“Fagen”) will enter into exclusive negotiations with Akron
Riverview Corn Processors, LLC (“Owner”) to implement the transaction
described in Paragraph 1 below (the “Transaction”).  (Fagen and Owner are referred to herein
individually as a “Party” and collectively as the “Parties”).  This letter will constitute a letter of
intent between us (the “Letter of Intent”) if (a) this letter is
executed and returned by you within thirty (30) days of the date hereof, and
(b) the Commitment Fee described in Paragraph 5 below is paid contemporaneously
with delivery of this executed letter.

The Parties agree
to effect the Transaction subject only to the execution and delivery (in each
case in a form satisfactory to Fagen) of a definitive Design-Build Agreement
and other ancillary instruments and agreements (the “Transaction Documents”).  The Parties agree that Transaction Documents
must be executed and delivered by the parties thereto no later than November 5,
2007 (the “Closing Date”) or this Letter of Intent will terminate by its
terms in accordance with Paragraph 11(a) hereof.

1.               The Transaction.  The
Parties agree that the Transaction will consist of the following:

(a)                                  Fagen agrees to provide Owner with those
services as described in this Letter of Intent which are necessary for Owner to
develop a detailed description of a one hundred (100) million gallons per year
(“MGY”) dry grind ethanol production facility located at Akron, Iowa
(the “Plant”) and to establish a price for which Fagen would provide
design, engineering, procurement of equipment and construction services for the
Plant.  The description of the Plant will
be sufficiently detailed to permit an analysis of the Owner’s lump-sum cost to

develop the Plant and to develop an economic pro forma sufficient to
determine if the Plant can be financed.

(b)                                 Fagen
will also provide Owner with assistance in evaluating, from both a technical
and business perspective, Owner’s organizational options, the appropriate
location of the Plant, and business plan development.  Fagen will assume no risk or liability of
representation or advice to Owner by assisting in evaluating the above and all
decisions made regarding feasibility, financing, and business risks are the
Owner’s sole responsibility and liability. 
Owner acknowledges that Fagen has no control over cost of labor,
materials, equipment, or services furnished by others, over other contractors’
methods of determining prices, or other competitive bidding or market
conditions. Fagen’s estimates of project construction cost will be made on the
basis of its experience and qualifications and will represent Fagen’s best
judgment as experienced and qualified professionals familiar with the
construction industry.  Fagen does not
guarantee that proposals, bids, or actual construction cost will not vary from
its estimates of project cost and Owner acknowledges the same.

(c)                                  Fagen
will also provide Owner with conceptual design and technical information
required to support Owner’s application for a construction air permit prior to
the commencement of Plant Construction.

(d)                                 If Owner determines
that the Plant is economically feasible and desires to proceed with the
development of the Plant, then Owner
agrees to enter into a Lump Sum Design-Build contract with Fagen for the
design, procurement of equipment and construction of the Plant (the “Design-Build
Agreement”).

(e)                                  Owner shall offer Fagen the right to invest
in the project.  Unless otherwise
specifically agreed between Fagen and Owner, such investment shall be offered
on the same terms and conditions as all other investors.

(f)                                    Owner and Fagen agree that the Design-Build
Agreement will be based on Fagen’s chosen form of Design-Build Agreement, with
terms and conditions acceptable to both parties, and will contain among other
things, those terms and conditions set forth in the General Terms and
Conditions section of this Letter of Intent.

2.               Contract Price.  Owner
shall pay Fagen One Hundred Twenty-nine Million Five Hundred Five Thousand
Dollars ($129,505,000.00) (the “Contract Price”) as full consideration
to Fagen for complete performance of the services described in the Design-Build
Agreement and all costs incurred in connection therewith.  The Contract Price is based upon Fagen’s
standard plant design and shall be subject to adjustments to reflect any
deviations from standard design requested by Owner.  The Contract Price shall be subject to the
following:

(a)                                  The
Contract Price shall not include any costs related to union labor or prevailing
wage requirements.  If any action by
Owner, a change in Applicable Law, or a Governmental Authority (as those terms
are defined in the Design-Build

  
  
 

Agreement) acting
pursuant to a change in Applicable Law, shall require Fagen to employ union
labor or compensate labor at prevailing wages, the Contract Price shall be
adjusted upwards to include any increased costs associated with such  labor or wages, of whatever kind in nature,
including but not limited to site security and personnel.  Such adjustment shall include, but not be
limited to, increased labor, subcontractor, and material and equipment costs
resulting from any union or prevailing wage requirement; provided, however,
that if an option is made available to either employ union labor, or to
compensate labor at prevailing wages, such option shall be at Fagen’s sole
discretion and that if such option is executed by Owner without Fagen’s
agreement, Fagen shall have the right to terminate this Letter of Intent or the
Design-Build Agreement, as applicable, and receive compensation pursuant to
Paragraph 4(c) hereof or the terms of the Design-Build Agreement, whichever is
applicable.

(b)                                 If
the Construction Cost Index published by Engineering News-Record Magazine (“CCI”)
for the month in which a Notice to Proceed is given to Fagen is greater than 7879.58
(January 2007), the Contract Price shall be increased by a percentage amount
equal to the percentage increase in CCI.

(c)                                  Due
to rapidly accelerating costs of certain specialty materials required for Plant
Construction, in addition to any adjustment provided for in Paragraph 2(b)
hereof, Fagen shall also add a surcharge to the Contract Price of one half of
one percent (0.50%) for each calendar month that has passed between January
2007 and the month in which a valid Notice to Proceed is given to Fagen. By way
of example, if a valid Notice to Proceed is given one year after January 2007
and the CCI has increased two percent (2%) over such period of time, the total
adjustment to the Contract Price shall be two percent (2%) in accordance with
Paragraph 2(b) plus one half of one percent (0.50%) for each of the twelve months
from January 2007 to the delivery of a valid Notice to Proceed in accordance
with this paragraph, for a total adjustment of eight percent (8%).  However, notwithstanding the above example,
the total percentage adjustment to the Owner’s Contract Price shall not exceed
six percent (6%).

3.               General Terms and Conditions.  The consummation of the Transaction will be
subject to the Design-Build Agreement containing the following conditions:

(a)                                  Fagen
will have no responsibility for and will not perform any site preparation
work.  Owner’s site responsibilities, in
each instance in accordance with applicable specifications provided by Fagen,
will include, but will not be limited to:

	
  i.

  	
   

  	
  Obtaining land and legal authority to use the site
  for its intended purpose;

  
	
  ii.

  	
   

  	
  site grading including soil stabilization and the
  costs connected therewith;

  
	
  iii.

  	
   

  	
  final grading, seeding, and mulching;

  
	
  iv.

  	
   

  	
  site security, including any site fencing;

  
	
  v.

  	
   

  	
  procuring boundary and topographic surveys;

  
	
  vi.

  	
   

  	
  procuring soil borings and geotechnical reports;

  

  
  
 

 

	
  vii.

  	
   

  	
  obtaining all operating permits, including any fees,
  bonding, and required testing;

  
	
  viii.

  	
   

  	
  obtaining storm water runoff permit and erosion
  control/land disturbance permit;

  
	
  ix.

  	
   

  	
  obtaining any necessary pollutant elimination
  discharge permit;

  
	
  x.

  	
   

  	
  obtaining a natural gas supply and service agreement
  and providing all gas piping to the use points, providing burner tip
  pressures as specified by Fagen, and supplying a digital flowmeter;

  
	
  xi.

  	
   

  	
  securing temporary and permanent electrical service,
  including all infrastructure design and installation for any line/service
  extensions, substation, primary feed and metering system, and on-site
  electrical distribution system up to and including the service transformers;

  
	
  xii.

  	
   

  	
  supplying a water source, storage, and water supply
  lines of appropriate quality and quantity;

  
	
  xiii.

  	
   

  	
  paying for a water pre-treatment system, including
  any buildings necessary thereto, the cost of which is not included in the
  Contract Price, which shall be provided by a vendor selected by Fagen and
  designed and constructed by Fagen pursuant to a separate side-letter
  agreement (the “Water Agreement”) executed by Owner and Fagen at Fagen’s
  standard time plus material rates during the relevant time period and at the
  relevant locale, and maintaining and using such system, including the use of
  all chemicals specified for the operation of such water pre-treatment system,
  for the entirety of the warranty period, it being agreed that failure by
  Owner to maintain and properly use the water pre-treatment system for the
  duration of the warranty period shall void any and all warranties affected by
  such failure;

  
	
  xiv.

  	
   

  	
  providing wastewater discharge piping, septic tank
  and drainfield or connect to a municipal system as required for the sanitary
  sewer requirements of the Plant;

  
	
  xv.

  	
   

  	
  providing and maintain required ditches and
  permanent roads;

  
	
  xvi.

  	
   

  	
  constructing, furnishing, and equipping the
  administration building;

  
	
  xvii.

  	
   

  	
  providing maintenance and power equipment and spare
  parts;

  
	
  xviii.

  	
   

  	
  providing all rail design, engineering, and
  construction, including any railroad permits or approvals;

  
	
  xix.

  	
   

  	
  supplying drawings of rail system and administration
  building to Fagen; and

  
	
  xx.

  	
   

  	
  paying for the required fire protection system for
  the Plant, including any buildings necessary thereto, the cost of which is
  not included in the Contract Price, and which shall be provided by Fagen
  pursuant to a separate side-letter agreement (the “Fire Protection
  Agreement”) executed by Owner and Fagen at Fagen’s standard time plus
  material rates during the relevant time period and at the relevant locale.

  

 

(b)                                 Owner will enter into a Phase I and Phase II
Engineering Services Agreement with Fagen Engineering, LLC on a form acceptable
to both parties but which shall be based on Fagen’s standard form.  The Phase I and Phase II Engineering Services

  
  
 

Agreement
will provide for commencement of  work on
the Phase I and Phase II engineering for the project as set forth therein.  The Phase I engineering shall consist of
engineering and design of the Plant site and shall include: property layout;
grading, drainage and erosion control plan drawings; roadway alignment
drawings; culvert cross sections and details; and seeding and landscaping, if
required.  The Phase II engineering shall
consist of engineering and design of site work and utilities for the Plant, all
within the property line of the Plant, including: property layout; site grading
and drainage drawings; roadway alignment; all utility layout including fire
loop, potable water, well water if applicable, sanitary sewer, utility water
blowdown, and natural gas; geometric layout; site utility piping tables; tank
farm layout; tank farm details; sections and details drawing, if required, and
miscellaneous details drawing, if required. 
Owner will pay Fagen Engineering, LLC One Hundred Eighty-Five Thousand
Dollars ($185,000.00) for such engineering services pursuant to the terms of
that agreement, the full amount of which shall be included in and credited to
the Contract Price.  Notwithstanding the
foregoing sentence, if a Notice to Proceed is not issued pursuant to the terms
of the Design-Build Agreement, or Financial Closing is not obtained, then Fagen
Engineering, LLC  shall keep the full
amount paid under the Phase I and Phase II Engineering Services Agreement as
compensation for the services provided thereunder.

(c)                                  Fagen
will provide reasonable assistance to Owner in obtaining Owner’s permits,
approvals and licenses.

(d)                                 Owner
will provide:  surveys describing the property’s
boundaries; geotechnical studies describing subsurface conditions; temporary
and permanent easements, zoning and other requirements and encumbrances to
enable Fagen to perform the work; a legal description of the site; as-built and
record drawings of any existing structures; environmental studies, reports, and
statements describing the environmental conditions, including hazardous
conditions at the site.

(e)                                  Owner
will be responsible for securing and executing all necessary real estate
agreements to secure the site and is responsible for all costs incurred in
obtaining those agreements.

(f)                                    Fagen
may subcontract portions of the work.

(g)                                 Fagen
will provide up to two (2) weeks of training for Owner’s employees and, if
applicable, Owner’s Operator’s employees required for the operation and
maintenance of the Plant.

  
  
 

(h)                                 Owner
must obtain Financial Closing prior to the issuance of a Notice to Proceed.  Financial Closing shall be deemed occurred
when the Loan Documents for the financing have been executed and Owner is able
to use  such funds toward construction of
the Plant.

(i)                                     Owner
shall be responsible for laying two (2) feet of straw or two (2) feet of
chopped cornstalks on all Plant construction areas for frost prevention.  Once such straw or cornstalks is removed by
Fagen, then any and all frost removal charges or expenses associated with such
areas thereafter shall be the responsibility of Fagen.

(j)                                     Fagen
will utilize certain proprietary property and information of ICM, Inc., a
Kansas corporation (“ICM”), in the design and construction of the
project, and may incorporate proprietary property and information of ICM into
the project.  Owner’s use of the
proprietary property and information of ICM shall be governed by the terms and
provisions of a license agreement between Owner and ICM which shall be attached
as an exhibit to the Design-Build Agreement. 
Owner will be responsible for negotiating any requested changes to the
ICM license directly with ICM, not Fagen.

(k)                                  All
drawings, specifications, calculations, data, notes and other materials and
documents, including electronic data furnished by Fagen to Owner under the
Design-Build Agreement (“Work Product”) will be instruments of service
and Fagen will retain the ownership and property interests therein, including
copyrights thereto.

(l)                                     Upon
payment in full under the Design-Build Agreement, Fagen will grant Owner a
limited license to the Work Product for use solely in connection with the
operation, maintenance, and repair of the Plant.  The limited license will not permit Owner to
use the Work Product in connection with any expansion or enlargement of the
Plant, however, nothing in the limited license granted to Owner is intended to
limit Owner’s use of the Plant’s actual production capability as built.

(m)                               Work
will commence following receipt of Owner’s written valid notice to proceed (“Notice
to Proceed”).  The Notice to Proceed
cannot be given until (1) the Owner has title to the real estate on which the
project will be constructed; (2) the site work required of Owner is completed;
(3) the air permit(s) and/or other applicable local, state or federal permits
necessary for construction to begin have been obtained; (4) Owner has obtained
Financial Closing; (5) if applicable, Owner executes a sales tax exemption
certificate and provides to Fagen; (6) Owner provides the name of its
property/all-risk insurance carrier and the specific requirements for fire
protection; (7) Owner has provided an insurance certificate or copy of
insurance policy demonstrating that Owner has obtained builder’s risk
insurance; (8) Owner executes the Water Agreement and Fire Protection
Agreement; and (9) Fagen has provided Owner written notification of its
acceptance of the Notice to Proceed, provided that Fagen shall not be required
to

  
  
 

accept the Notice to
Proceed prior to November 5, 2007.  If
Owner has not fulfilled its requirements for the issuance of a Notice to
Proceed as set forth in this Paragraph 3(m) by the date referenced in item
number 9 of this Paragraph, Fagen may, at its sole option, terminate the
Design-Build Agreement, thus releasing Fagen of all obligations.

(n)                                 “Substantial
Completion” will be the date on which the Plant construction has been
completed to a point that the Plant is ready to grind the first batch of corn
for producing ethanol and begin operation for its intended use as a one hundred
(100) MGY dry grind ethanol production facility.  No production capacity is guaranteed on the
Substantial Completion date, but the Plant is largely completed as of that date.

(o)                                 Substantial
Completion will occur within Six Hundred Thirty-Five (635) days after the date
of the Notice to Proceed.

(p)                                 Fagen
will be entitled to an early completion bonus for each day that Substantial
Completion occurs in advance of Six Hundred Thirty-Five (635) days (“Early
Completion Bonus”).  The Early
Completion Bonus shall be capped and shall not exceed One Million Dollars
($1,000,000).  The Early Completion Bonus
is earned for achieving Substantial Completion early, but is not due until the
final payment.

(q)                                 “Final
Completion” will be achieved once Owner reasonably determines that:
Substantial Completion has been achieved; any outstanding amounts owed by Fagen
to Owner have been paid; remaining items of work have been completed; clean-up
of the site has been completed; all permits required to have been obtained by
Fagen have been obtained; certain information including an affidavit stating
that there are no outstanding liens, a release from further compensation,
consent to final payment, and a hard copy of the as-built plans (which will
remain Work Product) has been provided to Owner; releases and waivers of all
claims and liens from Fagen and subcontractors have been provided; and the Performance
Tests have been successfully completed. 
Final Completion will occur no more than ninety (90) days after the
actual Substantial Completion date.  The
90-day period between Substantial Completion and Final Completion will be tied
directly to actual Substantial Completion. 
By way of example, if Substantial Completion is achieved 10 days early,
then the 90-day period to Final Completion would begin on that earlier date.

(r)                                    Fagen
will demonstrate certain performance guarantee criteria through performance
testing performed following Substantial Completion but prior to Final
Completion (“Performance Tests”).   Air permit testing shall be done by a third
party contractor retained by Owner.

  
  
 

(s)                                  Owner
will take control of the Plant after completion and acceptance of the Performance
Tests.  The Performance Tests will be
completed by Owner’s personnel under Fagen’s direction.

(t)                                    Fagen
will pay liquidated damages at a daily amount equal to the daily Early
Completion Bonus amount for each day past 90 days after Substantial Completion
that Final Completion is not attained. 
Fagen’s liability for liquidated damages shall be capped at and shall
not exceed One Million Dollars ($1,000,000.00).

(u)                                 The aggregate liability of Fagen, its
Subcontractors, vendors, suppliers, agents and employees,  to Owner (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 Fagen’s performance or non-performance
of its obligations under the Design-Build Agreement, whether based on contract,
tort (including negligence), strict liability, or otherwise, shall not exceed
in the aggregate, the Contract Price and shall be reduced, upon the issuance of
each Application for Payment, by seventy-five percent (75%) of the total value
of such Application for Payment; provided, however, that upon the earlier of
Substantial Completion or such point in time that requests for payment pursuant
to the Design-Build Agreement have been made for ninety percent (90%) of the Contract
Price, Fagen’s aggregate liability shall be limited to the greater of (1) Ten
Percent (10%) of the Contract Price or (2) the amount of insurance coverage
available to respond to the claim or liability under any policy of insurance
provided by Fagen under the Design-Build Agreement.

(v)                                 The
warranty period for work completed pursuant to the Design-Build Agreement will
extend for one year past Substantial Completion.  The Warranty will not apply to defects caused
by abuse, alterations, or failure to maintain the work by persons other than
Fagen or anyone for whose acts Fagen may be liable.  The warranty period will be extended one day
for each day that such part of the work repaired under such warranty is malfunctioning
or not in conformance with project requirements provided that Owner must report
such non-conformance or malfunction within seven (7) days of the appearance of
such non-conformance or malfunction.

(w)                               Owner
will pay Fagen a mobilization fee in the amount of Ten Million Dollars ($10,000,000.00)
 as soon as possible following the
execution of the Design-Build Agreement, and at the latest, at the earlier to
occur of financial closing or the issuance of a Notice to Proceed.  Such mobilization fee shall be applied
against the Contract Price and against the first Application for Payment in
accordance with Paragraph 3(x) below and any Applications for Payment
thereafter until the aggregate amount of such Applications for Payment exceeds Ten
Million Dollars ($10,000,000.00).

  
  
 

(x)                                   Fagen
will request payment and Owner will pay Fagen in accordance with the following
procedures:

	
  i.

  	
   

  	
  On or before the twenty-fifth (25th) day of each
  month following the acceptance of Notice to Proceed Fagen will submit to
  Owner a request for payment (an “Application for Payment”). Along with each
  Application for Payment, Fagen will submit to Owner, except with respect to
  the first Application for Payment, signed lien waivers for the work included
  in the Application for Payment submitted for the immediately preceding pay
  period and for which payment has been received.

  
	
  ii.

  	
   

  	
  The Application for Payment will constitute Fagen’s
  representation that the work has been performed consistent with the
  Transaction Documents and has progressed to the point indicated in the
  Application for Payment. No additional documentation will be provided to
  Owner in support of the Application for Payment. The work completed at the
  site and the comparison of the Application for Payment against the Schedule
  of Values shall provide sufficient substantiation to Owner of the accuracy of
  the Application for Payment. The Schedule of Values subdivides the work into
  its respective parts, includes values for all items comprising the work, and
  serves as the basis for the monthly progress payments.

  
	
  iii.

  	
   

  	
  The Application for Payment may request payment for
  equipment and materials not yet incorporated into the project only if Owner
  is reasonably satisfied that the materials and equipment are suitably stored
  at the site or elsewhere and are protected by suitable insurance. Upon
  payment, Owner will receive title to such equipment and materials.

  
	
  iv.

  	
   

  	
  Owner shall make payment within ten (10) days of
  receipt of the Application for Payment. Failure to make such payment will
  result in the accrual of interest at a rate of eighteen percent (18%) per
  annum commencing five (5) days after the payment is due. Failure to make such
  payment, except if due to appropriate withholding of payment due to a good
  faith dispute, entitles Fagen to stop work.

  
	
  v.

  	
   

  	
  If Owner wishes to dispute any portion of the
  Application for Payment, Owner must notify Fagen in writing within five (5)
  days of receipt of the Application for Payment. Such notice must state the
  specific amounts Owner intends to withhold, the reasons and contractual basis
  for withholding, and the specific measures Fagen must take to rectify Owner’s
  concerns. Regardless of a dispute as to a portion of the Application for
  Payment, Owner must pay all undisputed amounts by the payment due date.

  
	
  vi.

  	
   

  	
  Retainage on progress payments made pursuant to the
  Design-Build Agreement will be capped at five percent (5%) of the total
  price. Owner will retain ten percent (10%) of each payment up to a maximum of
  five percent (5%) of the total final Contract Price, as adjusted pursuant to
  any increase based on the CCI pursuant to Paragraph 2(b) herein as well as any
  monthly percentage increases pursuant to Paragraph 2(c) herein. Once five
  percent (5%) of the total price has been retained, Owner will not retain any 

  

  
  
 

 

	
  

  	
   

  	
  additional amounts from subsequent payments. Owner
  will release retainage, less the amount equal to the value of subcontractor
  lien waivers not yet obtained, upon completion of the Performance Tests. The
  release of any retainage by Owner shall be reduced by an amount equal to one
  hundred fifty percent (150%) of any amount required to finish any incomplete
  items of work.

  
	
  vii.

  	
   

  	
  Upon Final Completion, Fagen will deliver to Owner a
  request for final payment. Owner will make the final payment within thirty
  (30) days after the receipt of such request.Owner’s failure to make Final
  Payment will void any and all warranties, whether express or implied,
  provided by Fagen pursuant to the Design-Build Agreement.

  

 

(y)                                 Except
for hazardous conditions caused by Fagen or anyone for which Fagen is
responsible, Fagen will not be responsible for any hazardous condition
encountered at the site and may stop work in an affected area until such
hazardous condition is removed by Owner.

(z)                                   Fagen
will not be responsible for differing site conditions including concealed or
latent physical conditions or subsurface conditions and will be entitled to a
price adjustment to the Contract Price to the extent that its cost and/or time
of performance is adversely impacted by the differing site conditions.

(aa)                            “Force
Majeure Events” shall mean any cause or event beyond the reasonable control
of, and without the fault or negligence of a Party claiming Force Majeure,
including, without limitation, an emergency, floods, earthquakes, hurricanes,
tornadoes, adverse weather conditions not reasonably anticipated or acts of
God; sabotage; vandalism beyond that which could reasonably be prevented by a
Party claiming Force Majeure; terrorism; war; riots; fire; explosion;
blockades; insurrection; strike; slow down or labor disruptions (even if such
difficulties could be resolved by conceding to the demands of a labor group);
economic hardship or delay in the delivery of materials or equipment that is
beyond the control of a Party claiming Force Majeure, and action or failure to
take action by any governmental authority after the effective date of the
Design-Build Agreement (including the adoption or change in any rule or
regulation or environmental constraints lawfully imposed by such governmental
authority), but only if such requirements, actions, or failures to act prevent
or delay performance; and inability, despite due diligence, to obtain any
licenses, permits, or approvals required by any governmental authority.

(bb)                          If Fagen
is delayed at any time in the commencement or progress of the work due to a delay
in the delivery of, or unavailability of, essential materials or labor to the project
as a result of a significant industry-wide economic fluctuation or disruption
beyond the control of and without the fault of Fagen or its subcontractors
which is experienced or expected to be experienced by certain markets providing
essential materials, equipment or labor to the project during the performance
of the work and such economic fluctuation or disruption adversely

  
  
 

impacts  the
price, availability, and delivery timeframes of essential materials and
equipment  (such event an “Industry-Wide
Disruption”), Fagen shall be entitled to an equitable extension of the
Contract Time on a day-for-day basis equal to such delay and an equitable
adjustment to the Contract Price.  The
Owner and Fagen shall undertake reasonable steps to mitigate the effect of such
delays.  Notwithstanding any other
provision to the contrary, Fagen shall not be liable to the Owner for any
expenses, losses or damages arising from a delay, or unavailability of,
essential materials or labor to the project as a result of an Industry-Wide
Disruption.

4.               Exclusivity, No Solicitation or Negotiations.

(a)                                  During
the term of this Letter of Intent, neither Owner, nor its affiliates,
shareholders, members or other equity owners, or their officers,
representatives, agents or employees will solicit or negotiate, directly or
indirectly, with any third party to obtain the services contemplated by this
Letter of Intent.

(b)                                 During
the term of this Letter of Intent the Owner agrees that Fagen will have the
exclusive right to provide to Owner the services contemplated by the Letter of Intent.
Developer and Owner will not disclose any information related to this Letter of
Intent to a competitor or prospective competitor of Fagen.

(c)                                  Should Owner choose not to develop the
project or to develop or pursue a relationship with a company other than Fagen
to provide the preliminary engineering or design-build services for the
project, then Owner will reimburse Fagen for all expenses Fagen has incurred in
connection with the project based
upon Fagen’s standard rate schedule plus all third party costs incurred from
the date of this Letter of Intent.  Such
expenses include, but are not limited to, labor rates and reimbursable expenses
such as legal charges for document review and preparation, travel expenses,
reproduction costs, long distance phone costs, and postage.

(d)                                 In the event Fagen’s services are terminated
by Owner, title to the technical data, which may include preliminary
engineering drawings and layouts and proprietary process related information,
will remain with Fagen and any copies thereof will be returned to Fagen.

(e)                                  Owner acknowledges that the technical data
provided by Fagen under this Letter of Intent is preliminary and may not be
suitable for construction.  Owner agrees
that any use of such technical data following termination of Fagen’s services
will be at Owner’s sole risk.

  
  
 

5.               Commitment Fee. 
Immediately upon the execution of this Letter of Intent, Owner shall pay
Fagen Five Hundred Thousand Dollars ($500,000.00) as a non-refundable
commitment fee (“Commitment Fee”). 
The Commitment Fee will be credited against the Contract Price upon the
occurrence of: (i) the execution of the Transaction documents; and (ii) timely
acceptance of Notice to Proceed pursuant to the Design-Build Agreement. If
Owner chooses not to proceed with the project or the Transaction Documents are
not executed and delivered by the Closing Date or Owner fails to provide a timely
Notice to Proceed pursuant to the Design-Build Agreement, Fagen shall retain
the full amount of the Commitment Fee and Owner shall not be entitled to any
refund or credit.  Should Owner fail to
pay the Commitment Fee upon execution of this Letter of Intent, this Letter of
Intent shall terminate and Fagen shall have the right to receive compensation
pursuant to Paragraph 4(c) hereof.

6.               Confidentiality.  Owner will hold in confidence and will use
only for the purposes of completing the Transaction any and all confidential
information disclosed to it except that Owner may disclose confidential
information to its lenders, lenders’ agents, prospective investors, advisors
and/or consultants as may be reasonably necessary to enable them to advise
Owner on the Transaction, provided that any party to whom confidential
information is disclosed is informed of the existence of this confidentiality
obligation and agree to be obligated to keep such information
confidential.  The term “confidential
information” will mean (i) any and all information concerning the
Transaction, including that Fagen and Owner are negotiating the consummation of
the Transaction, and (ii) all information which Owner, directly or indirectly,
may acquire from Fagen, but confidential information will not include
information falling into any of the following categories:

(a)                                  information
that, at the time of disclosure hereunder, is in the public domain;

(b)                                 information
that, after disclosure hereunder, enters the public domain other than by breach
of this Agreement or the obligation of confidentiality;

(c)                                  information
that, prior to disclosure hereunder, was already in the Owner’s possession,
either without limitation on disclosure to others or subsequently becoming free
of such limitation;

(d)                                 information
obtained by the Owner from a third party having an independent right to
disclose this information; and

(e)                                  information
that is available through discovery by independent research without use of or
access to the confidential information acquired from Fagen.

  
  
 

Owner’s obligation to maintain confidential
information in confidence will be deemed performed if Owner observes with respect
thereto the same safeguards and precautions which Owner observes with respect
to its own confidential information of the same or similar kind.  It will not be deemed to be a breach of the
obligation to maintain confidential information in confidence if confidential
information is disclosed upon the order of a court or other authorized
governmental entity, or pursuant to other legal requirements.  However, if Owner is required to file the
Transaction Documents or a portion thereof with a governmental entity, it
agrees that it will not do so without first informing Fagen of the requirement
and seeking confidential treatment of the Transaction Documents prior to filing
the documents or a portion thereof. 
Owner’s confidentiality obligations under this section shall survive the
expiration or termination of this Letter of Intent and shall be a legally
binding obligation of Owner for five (5) years following the later to occur of
termination of this Letter of Intent or completion of the Plant contemplated by
the Transaction Documents.

7.               Publicity. 
Neither Owner nor any of its affiliates, shareholders, subcontractors,
or vendors or their officers, representatives, agents and employees will issue
any press or publicity release or otherwise release, distribute, announce, or
disseminate any information for publication concerning the Transaction, the
existence of the negotiations among Fagen and Owner, the participation of Fagen
in the Transaction, or any other matter affecting Fagen hereunder, without the
prior written consent of Fagen, which consent may be withheld for any reason,
except where such press or publicity release is required by order of a court or
necessary or appropriate under the rules or regulations of any governmental
agency.

The Parties will
jointly agree on the timing and content of any public disclosure by Owner,
including but not limited to, press releases, relating to Fagen’s involvement
in Owner’s project, and no such disclosure will be made without Fagen’s consent
and approval, except as may be required by applicable law.

8.               Disclaimer of Consequential Damages.  In no event will either Fagen or Owner be
liable to the other pursuant to this Letter of Intent, or for activities
conducted under this Letter of Intent, under any theory of recovery for any
indirect, special, incidental or consequential damages (including, without
limitation, loss of revenues or profits, loss of use, cost of replacement, cost
of capital and claims of customers, interest charges, or increased costs of
nature whatsoever).

9.               Legal Effect.  Although
this Letter of Intent does not contain all matters upon which agreement must be
reached in order for the Transaction to be consummated, Fagen and Owner wish to
set forth, prior to the execution of the Transaction Documents, their mutual
agreement as to the material terms and conditions of the Transaction.  Each Party agrees to negotiate in good faith
towards entering into the written, definitive and legally binding Transaction
Documents containing, among other terms and conditions, those terms and
conditions set forth in this Letter of Intent including, without limitation,
those terms set forth in Paragraphs 2 and 3 hereof; provided, however, that except as specifically identified and set
forth herein, nothing in this Agreement shall be read to promise, guarantee, or
otherwise secure on Owner’s behalf any specific construction start date with
respect to the Plant

  
  
 

including but not limited to any pour concrete date, scheduling slots
or dates for the delivery of design packages or to entitle Owner to any rights,
privileges, or claims with respect thereto or any right, privilege, or claim to
any place on Fagen’s construction schedule.  Notwithstanding the foregoing, the provisions
of this Paragraph and of Paragraphs 1, 4, 5, 6, 7, 8, 11, 12, 14, 17 and 18 hereof
are agreed to be legally binding obligations of the Parties upon the execution
and acceptance of this Letter of Intent.

10.         Negotiation of Definitive Agreements. The
Transaction Documents will contain reasonable terms and conditions regarding
releases, payment obligations, cooperation as to tax planning and structuring,
other financial matters, legal opinions, confidentiality, limitations of
liability, assignment, breach, dispute resolution, events of default, remedies,
representations, warranties, indemnifications and other provisions customary
for similar transactions. Time is of the essence in the performance of this
Letter of Intent in all respects.

11.         Termination.  This Letter of Intent will terminate on November
5, 2007 unless the basic size and design of the Plant have been determined and
mutually agreed upon, a specific site or sites have been determined and
mutually agreed upon, and at least 10% of the necessary equity has been raised.
This date may be extended upon mutual written agreement of the Parties.  Furthermore, unless otherwise agreed to by
the Parties, this Letter of Intent will terminate:

(a)                                  at
the option of either Fagen or Owner if the Design-Build Agreement is not
completed and executed by the Closing Date; or

(b)                                 upon
the execution and delivery of the Transaction Documents.

12.         Governing Law.  This Letter of Intent and Transaction are
governed by, and will be construed and interpreted in accordance with the laws
of the State of Minnesota, without regard to any conflicts of law or choice of
law rules.

13.         Expenses. 
Except as set forth in Paragraph 4(c) above, unless otherwise agreed by
Fagen and Owner, each Party will bear its own expenses in connection with the
negotiation and execution of definitive documentation for the transactions
contemplated herein.

14.         Indemnification.  Each Party will indemnify, defend and hold
harmless the other Party and its respective agents, servants, officers,
directors, employees and affiliates from and against any loss, cost, liability,
claim, damage, expense (including reasonable attorneys’ and consultants’ fees
and disbursements), penalty or fine incurred in connection with any claim or
cause of action arising from or in connection with this Letter of Intent to the
extent caused by the negligence, misrepresentation, fraud, fault or misconduct
of the indemnifying Party.

15.         Assignability;
Binding Effect; Benefit.  This Letter of Intent will inure to the benefit of and be binding
upon the Parties and their respective successors and assigns.  Nothing in this Letter of Intent, either expressed or implied, is intended to
confer on any person other than the Parties and their respective successors and
permitted assigns, any rights, remedies, obligations or liabilities under or by
reason of this Letter of Intent.  Neither
Fagen nor Owner

  
  
 

shall, without the written consent of the other, assign or transfer this
Letter of Intent.  Any sale, transfer, or
disposition by Owner of over fifty percent (50%) of its assets or any sale,
transfer, or disposition of more than fifty percent (50%) of Owner to any
single entity by one or more entities holding interest in Owner shall be deemed
an assignment subject to this paragraph. 
Notwithstanding any consent granted by Fagen to any assignment, Owner
shall remain jointly liable for any failure of any assignee to fulfill its
obligations under this Letter of Intent, including but not limited to any
payment and confidentiality obligations established hereunder.

16.         Further Action. Each Party agrees to execute and deliver all
further instruments, legal opinions and documents, and take all further action
not inconsistent with the provisions of this Letter of Intent that may be
reasonably necessary to complete performance of the Parties’ obligations hereunder
and to effectuate the purposes and intent of this Letter of Intent.

17.         Amendments.  The Parties agree that this Letter of Intent
may be modified only by written agreement by the Parties.

18.         Integration; Letter of Intent.  This Letter of Intent represents the entire
understanding between the Parties in relation to the subject matter hereof, and
supersedes any and all previous agreements, arrangements or discussions between
the Parties (whether written or oral) in respect of the subject matter hereof.  No change, amendment or modification of this
Letter of Intent will be valid or binding upon the Parties unless such change,
amendment or modification will be in writing and duly executed by both Parties.

19.         No Representation,
Warranties   or Covenants.  Notwithstanding anything contained herein to the contrary, Fagen is not
making any representation, warranty or covenant of any kind with respect to any
design, engineering or construction scheduling, or with respect to projections,
estimates or budgets heretofore delivered to or made available to Owner of
future revenues, expenses or expenditures, future results of operations (or any
component thereof) or the future business and operations of the Owner, nor any
other commitments or assurances except as may be provided in the Transaction
Documents.

20.         Counterparts.  This Letter of Intent may be executed in one
or more counterpart, each of which when so executed and delivered will be
deemed an original, but all of which taken together constitute one and the same
instrument.  Signatures which have been
affixed and transmitted by facsimile or other electronic means will be binding
to the same extent as an original signature, although the Parties contemplate
that a fully executed counterpart with original signatures will be delivered to
each Party.

If the foregoing
terms accurately reflect your understanding of our discussions and are
acceptable to you, please sign and return the enclosed counterpart of this Letter
of Intent to the attention of Becky Dahl at Fagen.

  
  
 

 

	
  

  	
  Yours sincerely,

  
	
   

  	
   

  
	
  

  	
  Fagen, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
         /s/ Ron
  Fagen

  	
   

  
	
   

  	
  By:

  	
  Roland “Ron” Fagen

  
	
   

  	
  Title:

  	
  President and CEO

  
				

 

Accepted and
agreed to this   7  

day of March, 2007.

Akron
Riverview Corn Processors, LLC

	
  

  
	
   

  
	
         /s/ Stephen
  G. Roe

  	
   

  
	
  By:  Stephen G. Roe

  
	
  Title:

  	
  President

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