Document:

exv10w2

 

Exhibit 10.2

BBI

INTERNATIONAL

CONSULTING

Adding Value to the Biofuels Industry

Agreement for Project Development Services

          This Agreement for Project Development Services (the “Agreement”) is made and entered
into on this 14th day of April, 2006, between Barton County Ethanol Project Steering Team,
hereafter known as “Client,” and BBI International, hereafter known as “Contractor.”

          Client is identified as:

Barton County Ethanol Project Steering Team

P.O. Box 69

Liberal, MO 64762-0069

Attn: Jim McClendon

          Contractor is identified as:

BBI International

228 North F Street, Suite 1

P.O. Box 1146

Salida, CO 81201

(719) 539-0300

          Whereas, Client desires assistance in carrying out project development and project financing
activities required to build an ethanol plant in the Barton County area of Missouri, and Contractor
is willing to complete said tasks.

          Now, therefore, it is mutually agreed that,

          Client retains the services of Contractor to conduct the tasks outlined in “Attachment A,”
under the following conditions and tenets:

	 	1.	 	CONTRACT TASKS. Contractor shall complete the tasks specified in “Attachment
A.” Changes to the Agreement tasks cannot be made, after contract signing, without the
express written consent of both Client and Contractor.
	 
	 	2.	 	BEST INTERESTS. Contractor shall represent the best interest of Client at all
times.
	 
	 	3.	 	PROJECT DEVELOPMENT RETAINER, EXPENSES, SUCCESS FEE. Contractor shall carry
out the project development activities specified in Attachment A. Client shall

 

 

	 	 	 	pay Contractor a monthly retainer of $10,000 per month plus travel expenses and other
approved expenses. In no event shall Client be obligated to pay Contractor a total retainer
hereunder in excess of $120,000 without written modification of this Agreement. All travel
will be completed as economically as possible.
	 
	 	 	 	Contractor will invoice Client at the beginning of each month for the current month’s
retainer and for travel expenses from the prior month. The first monthly payment shall be
due upon execution by all parties of this Agreement. Subsequent invoices shall be paid net
20-days after receipt and approval of invoices by Client. Contractor shall itemize each
invoice to detail the work performed and all travel or other expenses, including design,
printing, advertising and rentals related to project financing tasks. Any expense in excess
of $500.00 must be pre-approved by Client.
	 
	 	 	 	In addition, Contractor will collect a success fee upon Successful Financial Closing for the
project. Successful Financial Closing is defined as actual closing (execution and delivery
of all documents) by the Client with its project lender(s) providing for all financing,
including senior and subordinated debt, and any other project financing characterized by
debt obligations as required by the project’s Senior Debt lender.
	 
	 	 	 	The success fee shall be one and one-quarter percent (1.25%) of the total capitalized cost
of the project, less the total amount of monthly retainers paid to contractor. The success
fee (less monthly retainer payments) is payable to Contractor upon Successful Financial
Closing and is not payable if the project does not close.
	 
	 	4.	 	CONFIDENTIALITY. Contractor agrees to maintain as confidential all information
obtained in the process of completing the project. This obligation of confidentiality shall
survive the termination of this Agreement and remain if effect until such time Client
releases Contractor from the confidentiality obligation.
	 
	 	5.	 	DURATION. The duration of this Agreement shall be the time necessary to
achieve Successful Financial Closing. Client’s and Contractor’s goal is to achieve
Successful Financial Closing in twelve (12) months or less from the date this Agreement is
signed by all parties. Client agrees that this goal is non-binding and is aware that it may
take longer to reach Successful Financial Closing.
	 
	 	6.	 	TERMINATION. Client may initiate the termination of this Agreement should
Contractor fail to fulfill its obligations under this Agreement. However, Client will allow
for consultation and provide Contractor the opportunity to cure the cause for termination.
Client may also terminate this Agreement if, in the sole discretion of Client, the
completion of the ethanol project becomes infeasible for any reason. Termination of the
contract must be in writing.
	 
	 	7.	 	DISPUTE RESOLUTION. If a dispute arises out of or relating to this Agreement
or the breach of this Agreement, and if the dispute cannot be settled through direct
discussions, the parties agree to first endeavor to settle the dispute in an amicable
manner by mediation. Mediation shall consist of an informal, nonbinding conference or
conferences

2

 

	 	 	 	between the parties and the mediator jointly, and at the discretion of the mediator, then in
separate caucuses in which the mediator will seek to guide the parties to a resolution of
the case. The parties shall attempt to select a mutually acceptable mediator. If the parties
cannot agree upon a mediator, the parties shall seek assistance in the appointment of a
mediator from the District Judge in the County of Barton, State of Missouri.
	 
	 	8.	 	CHOICE OF LAW, JURISDICTION AND VENUE. This Agreement shall be governed by,
construed, and enforced in accordance with the laws of the State of Missouri. Any and all
actions, suits, or judicial proceedings upon any claim arising from or relating to this
Agreement, subject to Paragraph 7 herein, shall be instituted and maintained in the County
of Barton, State of Missouri. Each party waives the right to change of venue, or to file
any action, suit or judicial proceeding in federal court. Notwithstanding this provision,
if it is judicially determined that either party may file an action, suit or judicial
proceeding in federal court, such action, suit or judicial proceeding shall be in the
Federal District Court for the District of Missouri.
	 
	 	9.	 	ENTIRE AGREEMENT This Agreement constitutes the entire agreement between the
Parties regarding the subject matter hereof and wholly cancels, terminates and supersedes
all prior written and oral agreements, understandings and representations, collateral or
otherwise between them. The Parties may amend this Agreement only in writing signed by both
Parties.
	 
	 	10.	 	NON-CIRCUMVENT. Client agrees that it will not in any manner attempt to
circumvent Contractor with respect to Contractor’s responsibilities and compensation set
forth herein.
	 
	 	11.	 	ENUREMENT AND ASSIGNMENT. This Agreement shall enure to the benefit of, and be
binding upon, the successors and permitted assigns of the Parties. Except as specifically
provided in this Agreement, the provisions of this Agreement are for the exclusive benefit
of the Parties hereto and no other person or entity shall be a third party beneficiary or
have any rights by virtue of this Agreement. Neither party shall sell, assign or in any
manner transfer its interests herein, in whole or in part, without the written consent of
the other party.
	 
	 	12.	 	PROPERTY. Contractor retains all intellectual property in its work product and
hereby provides Client with an exclusive, non-transferable license to use such work product
for the purposes intended, provided that all amounts due and owing by Client under this
Agreement have been paid to Contractor.
	 
	 	13.	 	HEADINGS AND SEVERABILITY. All headings appearing in this Agreement are for
convenience of reference only and shall not be considered in any interpretation hereof. The
provisions of this Agreement shall be deemed to be severable, and any illegality,
invalidity or unenforceability of any provision or part thereof in this Agreement shall not
affect the legality, validity or enforceability of the remaining provisions or part thereof
of this Agreement.

3

 

IN WITNESS WHEREOF, CLIENT AND CONTRACTOR, by and through its proper officers duly authorized to
execute this Agreement, have hereunto set their hands.

	 	 	 	 	 
	BARTON COUNTY ETHANOL PROJECT STEERING TEAM	 	 
	 
	 	 	 	 
	By:

	 	/s/ Jim McClendon	 	 
	 

	 	 

	 	 
	Printed Name:

	 	Jim McClendon	 	 
	 
	 	 	 	 
	Title:

	 	Chairman	 	 
	 
	 	 	 	 
	Date:

	 	4-14-06	 	 
	 
	 	 	 	 
	BBI INTERNATIONAL	 	 
	 
	 	 	 	 
	By:

	 	/s/ Mark Yancy	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Printed Name:

	 	Mark Yancy	 	 
	 
	 	 	 	 
	Title:

	 	Vice President	 	 
	 
	 	 	 	 
	Date:

	 	4-17-06	 	 

4

 

ATTACHMENT A

Ethanol Project Development and Project Financing

Scope of Work

Contractor shall provide the project development and project financing services required to develop
an ethanol project through Successful Financial Closing and groundbreaking. Contractor and Client
will work closely together to complete the following project development and project financing
activities.

Contractor will assign specific individuals, with the required skills, to complete the required
tasks for the project. Contractor will assign a Project Manager to the project who will be
responsible for all aspects of managing Contractor’s work and coordinating communications with
Client. When necessary, Contractor will assist in the selection of and negotiations with
appropriate subcontractors.

The Project Development tasks are subdivided into two major activities: Project Management and
Project Financing.

Project Management

	 	 	 
	Task 1.

	 	A strategic planning meeting will be held to reach full
agreement on the path forward and to introduce the BBI Project
Development Team to the Client. At this meeting we will review
the scope of work and project development strategy, and finalize
responsibilities and assignments. BBI will develop along with
Client, a realistic timeline for the project’s development.
	 
	 	 
	Task 2.

	 	If Client has not done so, BBI will work with Client in
selecting appropriate legal counsel for business formation and
determination of the tax and liability implications for the
project directors, owners and investors. Legal counsel will also
be required for the development of offering documents. BBI
recommends that Client have local representation for issues such
as purchasing the site, as well as council that is experienced
in ethanol project development issues.
	 
	 	 
	Task 3.

	 	BBI will analyze various project options as needed throughout
the development of the project including the project site,
technology options, energy production options and the
appropriate plant capacity. BBI will complete a feasibility
study for the project once these issues have been satisfactorily
resolved. BBI will update the feasibility study as needed to
secure project financing.
	 
	 	 
	Task 4.

	 	BBI will complete a Business Plan for the project and update it
regularly as the project is developed and specific issues are
resolved.

5

 

	 	 	 
	Task 5.

	 	BBI will assist and make recommendations in the initial
screening of qualified ethanol process design/build and
engineering firms. BBI will develop a Request for Proposal to be
sent to the selected finalists for the design and construction
of the ethanol plant. BBI’s team of experts will prepare a
detailed technical and financial analysis of the proposals.
Client will interview and make the final selection of the
process design/build company and general contractor for the
project.
	 
	 	 
	Task 6.

	 	BBI will assess and advise Client of capital and equity
requirements, and will develop a projection of the timing of
expenditures throughout the project development phase.
	 
	 	 
	Task 7.

	 	BBI and Client will jointly develop and implement a strategy for
raising seed capital to advance the project through the Project
Development and Financing phases of the project.
	 
	 	 
	Task 8.

	 	Client and BBI will jointly develop a political strategy that
will help move the project forward. BBI will also develop a
media strategy and media package for the project.
	 
	 	 
	Task 9.

	 	Client and BBI will meet with local government officials to
advise them of the project and garner their support for the
project.
	 
	 	 
	Task 10.

	 	BBI will work with Client to organize a tour of several ethanol
facilities for Client, government officials, lenders and
possible investors in the project.
	 
	 	 
	Task 11.

	 	BBI will work with Client to select and provide oversight of
subcontractor(s) to secure all necessary permits. BBI will
participate with subcontractors in all necessary meetings with
permitting agencies and local government agencies as necessary
to secure all required permits
	 
	 	 
	Task 12.

	 	BBI will assist Client in the negotiation of rail, water, sewer
and other utility services as required.
	 
	 	 
	Task 13.

	 	BBI will identify and recommend appropriate marketing firms to
Client and assist in negotiating marketing and off-take
agreements for ethanol, distillers grains and possibly
CO2.
	 
	 	 
	Task 14.

	 	BBI will interview and recommend to Client a risk management
company. The risk management company will work with Client to
manage variances in corn, natural gas, and ethanol prices.
	 
	 	 
	Task 15.

	 	Through the BBI Biofuels Recruiting Servicesâ, BBI will
work with Client to select and hire a General Manager, owner’s
construction manager and other key personnel as needed for the
project. BBI will recruit and screen candidates based on
Client’s specifications. BBI will deliver resumes of individuals
that have been screened to meet Client’s qualifications and are
seriously interested in the position and the location of the
project.

6

 

Project Financing

	 	 	 
	Task 16.

	 	BBI will work with Client to raise equity via a private
placement, SEC registered offering or other equity partnering
arrangements. BBI will educate potential investors regarding the
project that Client identifies. In addition to BBI’s experience
in facilitating and organizing equity raising efforts, BBI’s
contacts within the ethanol industry provide access to a
significant number of potential investors and partners in the
industry. BBI will introduce Client to potential investors and
partners for the project and will direct efforts to raise the
equity for the project.
	 
	 	 
	 

	 	It should be noted that all work performed within the equity raising portion of the
scope of work will be under the guidance and limitations of both state and federal
securities regulations.
	 
	 	 
	Task 17.

	 	BBI will develop a list of recommended lenders for the project,
solicit loan term sheets and arrange meetings with these
prospective lenders for project debt financing. BBI will assist
in the preparation for and attend all meetings with prospective
lenders. BBI will assist in the preparation and review of
presentation materials, review term sheets, and assist in
negotiating construction and permanent financing for the project.
BBI will prepare certified Sources and Uses Statements and a
certified Operating Budget for the project and other
documentation as required by the project’s lender. Printing and
graphic design charges, if any, will be the responsibility of
Client.
	 
	 	 
	Task 18.

	 	BBI will make available its proprietary Financial Model to banks
and prospective lenders (with an appropriate non-disclosure
agreement in place) and assist lenders in using the BBI Financial
Model as needed.

7exv10w3

 

Exhibit 10.3

Project Development Agreement

Ozark Ethanol LLC

06 22 06

PROJECT DEVELOPMENT AGREEMENT

BETWEEN

OZARK ETHANOL, LLC

AND

DELTA-T CORPORATION

     This Agreement is entered into this ___th day of June 2006 by and between DELTA-T Corporation,
a Virginia corporation located at 323 Alexander Lee Parkway, Williamsburg, Virginia 23185, USA
(hereinafter “DELTA-T”), and Ozark Ethanol LLC located at PO Box 43 Liberal, MO 64762 (hereinafter
“Client”), which parties may be referred to individually as a “Party” or jointly as the “Parties.”

WITNESSETH

     WHEREAS, DELTA-T is in the business of developing, designing, and supplying commercial
technologies, equipment and manufacturing facilities to perform a wide range of process industry
applications, including, without limitation, grain processing, ethanol production, evaporation,
distillation, dehydration, adsorption, solvent recovery and waste treatment; and

     WHEREAS, Client intends to develop an ethanol plant having the capacity to produce 50 million
gallons per year at a site to be located in Missouri (hereinafter “Plant”); and

     WHEREAS, Client wishes to retain DELTA-T to provide professional advice, business and
technical information, design and engineering, and related services in order to assist Client in
assembling all of the information, permits, agreements and resources necessary for construction of
Plant (hereinafter “Project”), and DELTA-T is willing to provide such services for a fixed fee,
provided that Client enters into an exclusive relationship with DELTA-T to provide the Plant and/or
technology transfer, engineering and procurement services for the Plant, and otherwise on the terms
and conditions set forth herein; and

     WHEREAS, Client and DELTA-T intend to enter an Engineering, Procurement and Technology
agreement within 16 weeks from the execution of this document,

     WHEREAS, Client recognizes that DELTA-T is foregoing other significant business opportunities
in order to perform such services, and that the provisions of this Agreement concerning exclusivity
are essential to this Agreement and that DELTA-T would not be willing to enter into this Agreement
without those provisions;

     NOW THEREFORE, IN CONSIDERATION of the mutual terms and conditions of this Agreement, Client
and DELTA-T agree as follows:

1

 

Project Development Agreement

Ozark Ethanol LLC

06 22 06

ARTICLE 1

SCOPE OF PROJECT DEVELOPMENT AND

PRELIMINARY ENGINEERING SERVICES

Client hereby retains DELTA-T, and DELTA-T hereby agrees, to provide per the terms of this
Agreement, the services described in this Section 1.1 to help Client develop the Project.

	 	1.1	 	Basic Project Development Services: DELTA-T shall:

1.1.1 Help Client develop and analyze feasible Project alternatives, including
potential facility sites, and assist in the selection of the most appropriate
technical and site options in conjunction with the needs of the Project;

1.1.2 Provide projected plant operating cost factors and assist Client with
profitability and sensitivity analyses for selected Project alternative(s);

1.1.3 Work with Client to define Plant specifications, and assist in developing
Project roles and responsibilities for all participating parties;

1.1.4 Develop a preliminary general arrangement drawing for the Plant based on the
selected alternatives and site physical and geo-technical data provided by the
Client;

1.1.5 Provide process emissions data for environmental permitting activities in
support of the environmental permitting firm to be retained by Client;

1.1.6 Utilize DELTA-T’s experience in ethanol plant operation, products marketing,
and industry economics to help Client develop a business plan;

1.1.7 Provide technical and economic data and strategic guidance to assist Client in
making presentations to potential equity investors and financial institutions;

DELTA-T shall continue to develop and make modifications to each of the services referenced
under Section 1.1 as necessary in accordance with changing or evolving Project plans.
DELTA-T shall perform such services at such times, and according to such schedule, as
reasonably necessary to support effective development of the Project. Mutually agreed
project development tasks not addressed in Section 1.1 above, will be engaged by separate
agreements such as a compensated scope of work which may be appended to this Agreement.

1.2 Client’s Responsibilities: The entity that will own the Project, whether it is
the Client or another entity, shall hereinafter be referred to as “Owner.” Client shall
perform, or cause Owner to perform, the following tasks to assure development of the
Project, and such other tasks as may be required to achieve funding for the Project:

1.2.1 Promptly provide to DELTA-T, upon its request, such design decisions and
information related to site selection, plant size, interface of the Plant to other
sections of the Project, and other key project design parameters as DELTA-T may
reasonably request from time to time;

1.2.2 Create a Project development strategy and timeline, in cooperation with
DELTA-T, (the “Plan”), for the purposes of fully defining the Project its
specifications and of

2

 

 Project Development Agreement

Ozark Ethanol LLC

06 22 06

obtaining one or more letter(s) of commitment for financing in an amount and on
terms and conditions sufficient to enable Client or Owner to execute the Project,
and on terms otherwise acceptable to Client (“Financing”);

1.2.3 Execute the Plan in a diligent manner;

1.2.4 Cooperate with DELTA-T to define Project specifications, and define Project
development roles for all participating parties;

1.2.5 Develop a business plan, in cooperation with DELTA-T, based on the information
provided by DELTA-T under Section 1.1 above; and

1.2.6 Otherwise cooperate with DELTA-T in the development of the Project as mutually
agreed between the Parties.

Client, or Owner, shall perform such tasks within sufficient time to allow DELTA-T to
fulfill its obligations under Section 1.1 above in a timely manner. Client will designate
                                        , an individual, to serve as DELTA-T’s primary contact for the work
performed under this Agreement. DELTA-T shall be entitled to rely on, and shall proceed
according to the directions of, that individual, or such other individual as Client may from
time to time appoint in writing with respect to this Agreement.

1.3 Project Control Responsibilities: Client shall notify DELTA-T promptly of any
plan or intent on the part of any actual or potential investors in the Project to form an
Owner, or alter the equity or voting structure of an Owner, in such a way that Client would
not have sufficient control over such Owner to require it to perform the obligations of
Owner described in this Agreement, and to assist DELTA-T in causing such Owner to become a
party to this Agreement, or another similar agreement acceptable to DELTA-T. Client agrees
that it shall not assist Owner in any way, directly or indirectly, in working with anyone
other than DELTA-T in connection with the Project, except as expressly permitted under this
Agreement. Client acknowledges that if it were to provide any Confidential Information (as
described in Article 2 below) of DELTA-T to any Owner over which it did not have control,
that such Owner would benefit significantly from such information, and Client acknowledges
that it understands and will comply strictly with the prohibition on such disclosures set
forth in Article 2 below. In the event that Owner, for any reason other than termination of
this Agreement for breach by DELTA-T, fails to honor the exclusivity provisions of Article 5
below, Client shall, in addition to any other damages that DELTA-T may have, pay DELTA-T the
entire amount due to DELTA-T and remaining unpaid under Sections 3.1 and 3.2 below.

ARTICLE 2

CONFIDENTIAL INFORMATION

“Confidential Information” shall mean (i) all inventions, whether patentable or not, all processes,
designs, know-how, copyrights and any and all other intellectual property of any kind
(“Intellectual Property”) and financial and other business information provided by DELTA-T to
Client under this Agreement, which shall be deemed Confidential Information of DELTA-T and (ii) all
business plans, and other sensitive information about the Project disclosed by Client to DELTA-T
during the term of this Agreement, which shall be deemed Confidential Information of Client (except
to the extent that it consists of Confidential Information of DELTA-T).

3

 

Project Development Agreement

Ozark Ethanol LLC

06 22 06

Neither Party shall (i) use any Confidential Information of the other except for development of the
Project as provided under this Agreement, or (ii) disclose any part of the Confidential Information
of the other to any person or entity other than its employees who need to have access to such data
and who are bound to comply with the confidentiality terms of this Agreement, and as otherwise
authorized by the Party providing the Confidential Information. Notwithstanding the foregoing
Client may disclose information of the type provided by DELTA-T under Section 1.1 above to third
parties to whom it needs to disclose such information to develop the Project, provided that it
first obtains a written confidentiality agreement from such party to protect such information to at
least the same degree as provided under the agreement attached hereto as Exhibit B. Client may
disclose information of the type provided by DELTA-T under Section 1 above to any third party to
whom it needs to disclose such information to develop the Project only after such party executes a
confidentiality directly with DELTA-T in the form attached hereto as Exhibit B, or such other form
as DELTA-T may agree. Client shall provide a copy of each such agreement to Delta-T promptly upon
execution of the same. Furthermore, Client may disclose Confidential Information, if any, that it
needs to disclose in order to comply with any applicable law, rule or regulation provided that it
takes whatever steps are necessary to protect the confidentiality of such information to the full
extent allowed by such law, rule or regulation.

In particular, but without limitation, under no circumstances may Client use any of the
Confidential Information to assist it in negotiating or entering into an agreement with any third
party to provide any services or technology related to the Project in violation of this Agreement.

Neither Party shall disclose any Confidential Information of the other pursuant to court order or
other legal process unless: (i) it is advised by its legal counsel that it is legally required to
do so, (ii) it has promptly given the other notice of such order or process so that the other can
obtain a secrecy order or other applicable remedy and (iii) it has used all other reasonable means
to ensure the confidential treatment of such information, other than seeking a judicial order or
other judicial relief.

Notwithstanding anything set forth above, however, neither Party shall have any obligation under
this Article 2 with respect to Confidential Information of the other which the receiving Party can
show through documentary evidence falls under one or more of the following exclusions: (a) that
such information was in its possession prior to receipt from the other; (b) such information was in
the public domain at the time of disclosure or thereafter enters into the public domain through no
breach of this Agreement by Recipient or is in general use in the trade without violation by
Recipient of this Agreement, or violation by any other party of an obligation not to disclose it;
or (c) the information is disclosed to the receiving Party by a third party who is under no
obligation not to disclose it.

The provisions of this Section shall survive termination of this Agreement until such time, if
ever, that it falls under one of the exclusions described in the preceding paragraph.

ARTICLE 3

COMPENSATION

3.1 Project Development Services: For the services described in Section 1.1 above,
Client shall pay DELTA-T a fee equal to $75,000 Client shall pay to DELTA-T Client shall pay
to DELTA-T 70% of such fee within ten (10) days of signing this Agreement and the remaining
balance within ten (10) days of the air permit submittal by Client to the State of Missouri.

3.2 Travel and Related Expenses: Client shall bear the cost of all travel, room and
board and related expenses incurred in connection with providing on site services to the
extent provided under Article 1 above, with reimbursement based on actual costs. Client
shall pay DELTA-T’s

4

 

 Project Development Agreement

Ozark Ethanol LLC

06 22 06

reasonable costs incurred in connection with all other such expenses incurred with Client’s
prior consent, except that DELTA-T will be responsible for one site visit by two people
without charge to Client.

3.3 Late Payment Penalty: Client shall pay DELTA-T a late charge at the lesser of 1%
per month or the highest amount permitted by applicable law on all payments past due.

ARTICLE 4

LIMITED LICENSE OF DELTA-T CONFIDENTIAL INFORMATION

DELTA-T is and shall remain the sole owner of the Confidential Information provided by DELTA-T
hereunder, and of the copyrights in all the drawings and other documents provided by DELTA-T under
this Agreement. DELTA-T hereby grants Client a limited, non-exclusive, non-transferable license,
without right to sublicense, to use the Confidential Information of DELTA-T solely for Client’s use
in connection with development and financing of the Project during the term of this Agreement.
DELTA-T reserves to itself all rights not expressly granted under this Article 4. In particular,
but without limitation, this license does not include the right to use any of the Confidential
Information to procure bids for development or construction of a plant, or to design or operate a
plant or facility based on any of such Confidential Information.

ARTICLE 5

EXCLUSIVE RELATIONSHIP

5.1 The Plant: If Client, or Owner as the case may be, elects to build the Plant, then it shall
employ best efforts to enter into a contract with DELTA-T whereby DELTA-T will provide, as a
minimum, all services defined in Article 6 below. Additional services, up to and including DELTA-T
providing the Plant on a turn-key fixed-price basis, may be included at the mutual consent of the
Parties. During the term of this Agreement Client shall not, and shall not permit Owner or any
other party associated with the Project, to enter into, negotiate toward, or take any other action
in furtherance of entering into any agreement for provision of the technology, services or
equipment to be provided by DELTA-T under the Technology Agreement to be entered into under Article
6 below, or in furtherance of entering into any turnkey engineering, procurement and construction
agreement for the entire Plant (“EPC Agreement”) except as permitted under Sections 6 and 7 below.

5.2 Other Plants: If for any reason the Parties do not enter into an EPC Agreement or Technology
Agreement with respect to the Plant, then neither Client nor Owner shall, for a the shorter of (a)
five (5) years from the date of this Agreement, or (b) such time as Client or Owner and DELTA-T
enter into an EPC Agreement or Technology Agreement for an ethanol plant, enter into an agreement
with any other party to use technology, engineering and procurement services other than DELTA-T’s
for any ethanol plant project without first providing DELTA-T at least sixty (60) days to enter
into an agreement for development and design of such plant on the same terms as set forth in this
Agreement.

ARTICLE 6

TECHNOLOGY TRANSFER, ENGINEERING AND

PROCUREMENT SERVICES AGREEMENT

Upon Client’s obtaining the Financing for the Project or at such earlier time as Client and DELTA-T
may agree, Client and DELTA-T shall enter into either a turnkey EPC agreement to provide the entire
Plant under mutually agreeable terms (“EPC Agreement”), or a technology transfer, engineering and
procurement services agreement (“EPT Agreement”) whereby DELTA-T shall, as a minimum, (a)

5

 

Project Development Agreement

Ozark Ethanol LLC

06 22 06

provide engineering services in addition to that provided under Section 1.1 above that may be
required to complete the basic process engineering design suitable for capital investment
determination and all detail design; (b) review all detailed engineering performed by others in
order to assure that it conforms to such suitable process engineering design; (c) provide the
procurement services for plant equipment as determined by DELTA-T; (d) provide construction
observation assistance, operations and maintenance manuals, training and start up assistance
services to be specified in the EPC or Technology Agreement; (e) provide a license of the Plant
process technology embodied in the basic process engineering design provided by DELTA-T for the
purpose of operating the Plant. Such Technology Agreement shall include the following provisions,
and such other provisions as the parties deem reasonably appropriate:

	 	a.	 	DELTA-T shall be paid a detailed engineering, startup and training services
fee, plus a one-time technology license fee. Such fees will be quoted by DELTA-T upon
substantial completion of Basic Project Development Services listed in Section 1.1
herein.
	 
	 	b.	 	In addition, DELTA-T shall be paid a fee based on the purchase price of all
equipment for which DELTA-T is to provide procurement services.
	 
	 	c.	 	DELTA-T shall provide Plant process performance warranties that are typical for
the industry based on the final plant configuration and selected energy-saving options.
	 
	 	d.	 	DELTA-T shall offer a liquidated damages provision the event of breach of the
Plant process performance warranties on a pro rata basis, depending upon the extent to
which such warranty is breached as determined by a performance test protocol to be
included in the Technology Agreement;
	 
	 	e.	 	The maximum amount of DELTA-T’s total liabilities in the Technology Agreement
shall be limited to a percentage of the fees earned performing the scope of services
described in the Technology Agreement.

ARTICLE 7

FIRST RIGHT OF REFUSAL

If the Parties do not reach agreement for DELTA-T to provide the plant on a turnkey, EPC basis and
instead enter into a Technology Agreement, Owner shall not enter into a construction agreement with
any other party without providing DELTA-T at least sixty (60) days to enter into an agreement for
construction on the same terms as another party is willing to contractually agree to for the
construction.

ARTICLE 8

INDEPENDENT CONTRACTOR

DELTA-T and Client are independent contractors, and nothing in this Agreement shall be deemed to
make either Party an agent or partner of the other, or to give either Party the right to bind the
other in any way.

ARTICLE 9

TERM AND TERMINATION

This Agreement shall commence on the date first above written and shall continue for a period of
five (5) years unless earlier terminated as provided in this Article 9. This Agreement may be
terminated upon written notice:

6

 

Project Development Agreement

Ozark Ethanol LLC

06 22 06

	 	(i)	 	By either Party in case of material breach by the other if such breach is not
cured within thirty (30) days after receipt of the breaching party of notice of such
breach;
	 
	 	(ii)	 	By DELTA-T if a) payment is not received by DELTA-T as provided in Article 3 of
this Agreement and such breach is not cured with thirty (30) days after receipt of
DELTA-T’s notice of such breach, or b) Project Financing is not obtained within
eighteen (18) months of the date first above written.

Upon termination of this Agreement for any reason, the license granted under Article 4 above shall
immediately cease, and each Party shall (i) immediately cease use of all Confidential Information
of the other, (ii) immediately deliver to the disclosing Party all Confidential Information
provided to it by the other, including all copies of the same, and destroy all materials developed
by it or any third parties to whom it disclosed such information which was based upon such
information, and (iii) certify to the disclosing Party that it has done so. In particular, but
without limitation, Client shall promptly advise all actual and potential investors and lenders for
the Project and all regulatory authorities to which Confidential Information of DELTA-T has been
provided of the termination hereof, and shall withdraw any applications for financing or permits
that were based on the use of DELTA-T’s Confidential Information.

ARTICLE 10

DISPUTE RESOLUTION

In the event of any dispute arising under or in connection with this Agreement or with the
existence, validity, interpretation, breach or enforcement thereof, either before or after the
termination or expiration of this Agreement, the Parties shall, upon the written request of either
of them, enter into mediation of such dispute pursuant to the applicable rules of the American
Arbitration Association, or such other rules or procedures as they may agree. Neither party shall
file suit unless it has first complied with this provision and attempted to resolve such dispute
for a period of at least thirty (30) days. Nothing herein contained, however, shall be deemed to
prevent either Party from seeking injunctive relief from any court of competent jurisdiction,
without necessity of posting bond, in case of a breach of Articles 2, 4, 5, 6 or 7 above. Should
litigation arise after complying with the provisions of this paragraph, the losing party will pay
legal expenses of the prevailing party in such litigation.

ARTICLE 11

LIMITATION OF DAMAGES AND REMEDY

Client’s sole remedy with respect to uncured breach by DELTA-T of any provision of this Agreement
(other than breach of Article 2), or with respect to services performed by DELTA-T under this
Agreement shall be termination of this Agreement and refund of the portion of the fee, if any,
allocable to services not properly performed. In no case shall DELTA-T be liable for any other
damages of any kind, direct, indirect, incidental, consequential, reliance, exemplary or otherwise,
with respect to any services performed by it, or to its failure to perform services, under this
Agreement.

ARTICLE 12

GENERAL TERMS

12.1 Waiver: The failure of either Party to insist on strict performance of any of the
provisions of this Agreement or to exercise any right it grants will not be construed as a
relinquishment of any right or a waiver of any provision of this Agreement. No waiver of
any

7

 

Project Development Agreement

Ozark Ethanol LLC

06 22 06

provision or right shall be valid unless it is in writing and signed by a duly authorized
representative of the Party granting the waiver.

12.2 No Assignment: Neither Party may assign or convey this Agreement or its obligations
hereunder without the other’s prior written consent, except that either Party may assign
this Agreement to a purchaser of a controlling interest in its capital stock or of
substantially all of its assets as long as the purchaser agrees to comply with all the
selling Party’s obligations set forth herein.

12.3 Governing Law: This Agreement shall be governed and construed in accordance with the
laws of the state of Missouri, without regard to its choice of law rules.

12.4 Notices: Notices and other communications required or allowed by this Agreement shall
be in writing and sent by U.S. mail, express carrier, by hand, or by facsimile transmission
as follows:

	 	 	 	 	 	 	 	 	 
	 	 	If to DTC, to:	 	DELTA-T Corporation,	 	 
	 	 	 	 	323 Alexander Lee Parkway	 	 
	 	 	 	 	Williamsburg, Virginia 23185	 	 
	 	 	 	 	FAX: (757) 229-1705	 	 
	 	 	 	 	Attn: Mr. Robert L. Swain, Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	If to CLIENT, to	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	FAX:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Attn:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

or such other addresses as a Party may specify by proper notice.

Each notice so given shall be deemed delivered, if by mail upon the third business day after
mailing, if by courier, upon delivery by the courier, and otherwise upon receipt by the
Party to whom notice is sent.

12.5 Survival: The provisions of Articles 2, 10 and 11 above shall survive termination or
expiration of this Agreement, and Articles 5.2 and 7 shall survive except in case of
termination by Client for material breach by DELTA-T.

12.6 Severability: If a court of competent jurisdiction determines that any portion of this
agreement is illegal, unenforceable or invalid, then that portion shall be considered to be
removed from this agreement, the remainder shall remain in full force and effect, and the
Parties shall cooperate to modify the Agreement to cause it to conform to the original
language of the Agreement to the extent consistent with the finding of the court.

12.6 Entire Agreement: This Agreement constitutes the entire agreement between the Parties
relating to its subject matter, and supersedes all prior representations, understandings and
agreements, written or oral, express or implied. The Agreement can be modified only by
written agreement executed by authorized representatives of each Party.

8

 

Project Development Agreement

Ozark Ethanol LLC

06 22 06

IN WITNESS whereof the Parties have executed this Agreement on the dates set forth below.

	 	 	 	 	 	 	 	 	 
	DELTA-T CORPORATION	 	OZARK ETHANOL LLC	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Alan Belcher
 

	 	By:
	 	/s/ Jim McClendon
 

	 	 
	 
	 	 	 	 	 	 	 	 
	Printed Name:

	 	Alan Belcher
	 	Printed Name:
	 	Jim McClendon	 	 
	 
	 	 	 	 	 	 	 	 
	Title:

	 	Vice President Project Development
	 	Title:
	 	Chairman	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	June 22, 2006
	 	Date:
	 	July 8, 2006	 	 

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}]]