Document:

exv10w16

 

EXHIBIT 10.16

AMENDED LETTER OF INTENT

	 	 	 
	Date:

	 	March 22, 2006
	 
	 	 
	Parties:

	 	Fagen, Inc., a Minnesota
Corporation, (“Fagen”) and
	 

	 	E Energy Adams, LLC, a Nebraska limited liability company (“Owner”)
	 

	 	(Fagen and Owner are referred to herein individually as a “Party” and
	 

	 	collectively as the “Parties”)

WHEREAS, Owner is an entity organized to facilitate the development and building of a
locally-owned 50 MGY gas-fired fuel ethanol plant in Adams, Nebraska (the “Facility”
or “Project”); and

WHEREAS, Fagen is an engineering and construction firm capable of providing development assistance,
as well as designing and constructing the Facility being

considered by Owner; and

WHEREAS, Fagen and Owner entered into a letter of intent dated April 19, 2005,
including Amendments dated July 12, 2005 and October 5, 2005, for the Project (the
“Initial Letter of Intent”) and the Parties have agreed to amend and replace the Initial
Letter of Intent between the Parties relating to the Project; and

WHEREAS, Fagen and Owner agree that this letter, upon execution and return by
Owner, will constitute a letter of intent between Fagen and Owner (the “Letter of Intent”)
and shall supersede the Initial Letter of Intent in all respects, except as set forth herein.

NOW, THEREFORE, in consideration of the promises and mutual covenants set forth
herein, Owner and Fagen agree to use best efforts in jointly developing this Project under
the following terms:

     l. Owner agrees that Fagen will Design-Build the Facility if
determined by Owner to be feasible and if adequate financing is obtained. Should
Owner choose 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 shall 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 the Initial 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. 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, shall remain with Fagen; however, Owner shall, upon payment of the
foregoing expenses, have the limited license to use the above described technical

 

 

data,
excluding proprietary process related information, for construction,
operation, repair and maintenance of the Project.

     If Fagen intentionally or by gross negligence fails or refuses to comply
with its commitments contained in this Letter of Intent, Fagen shall absorb all of its own
expenses, and Owner shall have the right to terminate the Letter of Intent immediately upon
written notice to Fagen, and Owner shall be released from its obligations to pay or
reimburse Fagen as described above.

     2. Fagen will provide Owner with assistance in evaluating, from both a technical and
business perspective:

	 	•	 	Owner organizational options;
	 
	 	•	 	The appropriate location of the proposed Facility; and
	 
	 	•	 	Business plan development.

Fagen assumes no risk or liability of representation or advice to Owner by assisting in
evaluating the above. All decisions made regarding feasibility, financing, and business
risks are the Owner’s sole responsibility and liability.

     3. Owner shall pay Fagen Sixty-five Million Five Hundred Twenty-five Thousand Eight
Hundred Forty-eight Dollars ($65,525.848.00) (the “Contract
Price”) as full consideration to Fagen for full and complete performance of the
services described in the Design-Build Agreement and all costs incurred in connection
therewith.

	 	(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. 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.
	 
	 	(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 7660.29 (January 2006), the Contract Price shall be
adjusted to reflect such increase.

 

 

     4. Fagen will assist Owner in locating appropriate management for
the Facility.

     5. Fagen will assist Owner in presenting information to potential
investors, potential lenders, and various entities or agencies that
may provide
project development assistance, so long as the Project has 5% or less dilution.

     6. During the term of this Letter of Intent the Owner agrees that
Fagen will be the exclusive Developer and Design-Builder for the Owner in
connection with matters covered by this Letter of Intent or the Initial Letter of
Intent, and Owner shall not disclose any information related to this Letter of
Intent or the Initial Letter of Intent to a competitor or prospective competitor of
Fagen.

     7. This Letter of Intent shall terminate on December 31, 2007 unless the basic size
and design of the Facility have been determined and mutually
agreed upon, and a specific site or sites have been determined and mutually
agreed upon, and at least l0% of the necessary equity has been raised.
Furthermore, this Letter of Intent shall terminate on December 31, 2008 unless
Financing for the Facility has been secured. Either of the aforementioned dates
may be extended upon mutual written agreement of the Parties.

     8. Fagen and Owner agree to negotiate in good faith and enter into a
definitive lump sum design-build agreement, including Exhibits thereto.
acceptable to the Parties. Upon execution of such agreement, this Letter of Intent
becomes null and void.

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

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

     11. This Letter of Intent may be executed in one or more counterparts,
each of which when so executed and delivered shall 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 shall 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.

 

 

	 	 	 	 	 	 	 	 	 
	E Energy Adams, LLC	 	 	 	Fagen, Inc.
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Jack L. Alderman
	 	 	 	By:
	 	/s/ Ron Fagen
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Its:

	 	President
	 	 	 	Its:
	 	CEO & President
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	3/22/2006
	 	 	 	Date:
	 	3/28/2006exv4w1

 

Exhibit 4.1

TERMINATION AGREEMENT

     THIS TERMINATION AGREEMENT (this “Agreement”) is made on April 7, 2006, by and between
Starwood Hotels & Resorts Worldwide, Inc., a Maryland corporation (“Corporation”), and
Starwood Hotels & Resorts, a Maryland real estate investment Trust (“Trust”).

WITNESSETH:

     WHEREAS, Corporation and Trust are parties to a certain Amended and Restated Intercompany
Agreement, dated as of January 6, 1999 (the “Pairing Agreement”), between Corporation and
Trust, pursuant to which Class B shares of beneficial interest, par value $.01 per share, of Trust
(“Class B Shares”) and the shares of common stock, par value $.01 per share, of Corporation
(“Corporation Shares”) were paired, such that Class B Shares are transferable only with an
equal number of Corporation Shares and vice versa;

     WHEREAS, Corporation and Trust are parties to the Master Agreement and Plan of Merger entered
into as of November 14, 2005, as amended (the “Master Agreement”), by and among Host
Marriott Corporation, Host Marriott, L.P. (“Host OP”), Horizon Supernova Merger Sub,
L.L.C., Horizon SLT Merger Sub, L.P., Corporation, Trust, Sheraton Holding Corporation and SLT
Realty Limited Partnership, pursuant to which agreement Host OP would acquire all of the
outstanding shares of beneficial interest of Trust in a reverse subsidiary merger transaction and
Trust would thereafter become a wholly owned subsidiary of Host OP;

     WHEREAS, Corporation and Trust desire to terminate the Pairing Agreement as of 4:01 p.m., New
York time, on the date hereof (the “Effective Time”); and

     WHEREAS, Class B Shares and Corporation Shares have traded, and immediately prior to the
Effective Time will trade, together as a unit on the New York Stock Exchange (the “NYSE”)
under the symbol “HOT”, Class B Shares shall be withdrawn from listing on the NYSE as of the
Effective Time, Class B Shares shall be transferable separately from Corporation Shares following
the Effective Time until the Closing (as such term is defined in the Master Agreement) through the
American Stock Transfer & Trust Company (the transfer agent for Corporation and Trust), and
Corporation Shares, separate from the Class B Shares, will begin trading again under the symbol
“HOT” on the NYSE at the commencement of trading at 9:30 a.m., New York time, on April 10, 2006;

     NOW, THEREFORE, in consideration of the covenants and conditions set forth herein and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto, intending to be legally bound, agree as follows:

     1. Subject Agreement Termination. Corporation and Trust hereby agree that the Pairing
Agreement and the terms thereof shall terminate and be of no further force and effect as of the
Effective Time.

     2. Binding Nature. The terms, covenants and conditions of this Agreement shall
inure to the benefit of and be binding upon Corporation and Trust and their respective successors
and assigns.

 

 

     3. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original but all of which together will constitute one and the same
instrument.

[SIGNATURE PAGE FOLLOWS]

 

 

     IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement with the
intent that it become effective as of the Effective Time.

	 	 	 	 	 
	 	STARWOOD HOTELS & RESORTS

   WORLDWIDE, INC.

 	 
	 	By:  	/s/ Jeff S. Drew
 	 
	 	Name:  	Jeff S. Drew 	 
	 	Title:  	Senior Vice President & Treasurer 	 
	 
	 	STARWOOD HOTELS & RESORTS

 	 
	 	By:  	/s/ Jared T. Finkelstein
 	 
	 	Name:  	Jared T. Finkelstein 	 
	 	Title:  	Assistant Secretary 	 
	 

[Pairing Agreement Termination]

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