Document:

Exhibit 10.15

INDEPENDENT
CONTRACTOR AGREEMENT

This Agreement is entered into as of the 1st day
of Jan. 2006 between Philip C. Foster (“the contractor”) and Tennessee Valley
Agri-Energy, LLC (“the company”).

1.               Independent
Contractor.  Subject to the terms and
conditions of the Agreement, the Company hereby engages the Contractor as an
independent contractor to perform the services set forth herein, and the
Contractor hereby accepts such engagement.

2.               Duties, Term,
and Fees.  The Contractor’s duties
and fees and provisions for payment thereof shall be according to Attachment A,
“Project Manager, Tennessee Valley Agri-Energy,” which may be amended in
writing from time to time and agreed to by the Company, and which collectively
are hereby incorporated by reference. 
The term of engagement shall be for calendar year 2007, beginning
January 1, 2007 and ending December 31, 2007. The term shall automatically
extend another 12 months beginning January 1, 2008 and ending December 31, 2008
unless specific action is taken by the Company or by the Contractor in the
manner specified in section 7.

3.               Expenses.  During the term of this Agreement, expenses
(including, but not limited to local mileage, telephone, meals, etc.) are not
reimbursable and allowances for expenses form a portion of the compensation as
defined by Attachment A.  Significant
expenses including, but not limited to conference registration, airline
tickets, hotel, rental cars, etc. may be reimbursed or purchased by the Company
when the Company deems it is advantageous to the Company to incur such
expenses.  Other significant expenses may
be considered for reimbursement when requested in writing, in advance of
incurring expenses by the Contractor.

4.               Written Reports.  The Company may request that project plans,
progress reports, and a final, annual report be provided by the Contractor on a
periodic basis.  Specific, minimum
content is defined in Attachment A, “Project Manager, Tennessee Valley
Agri-Energy” and the reports will be used by the Company to verify provisions
for payment as defined by Attachment A.

5.               Inventions.  Any and all inventions, discoveries,
developments and innovations conceived, made, developed, reduced to practice,
or worked on, in whole or in part, solely by Contractor or jointly with others
prior to the date of this Agreement and during the Term, relating to the
business of the Company is and shall be deemed to be “work for hire” and, at
the election of the Company, shall be the exclusive property of the Company;
and the Contractor hereby assigns all right, title, and interest in the same to
the Company, without any further consideration paid to Contractor.  During the Term, Contractor promptly shall
disclose to the Company any business idea or opportunity, which business idea
or opportunity shall become the sole property of the Company if the Company
elects to pursue such idea or opportunity as part of a business project.   Contractor shall disclose

promptly in writing to
any duly appointed officer of the Company, any invention, whether or not
patentable or copyrightable or entitled to legal protection as a trade secret
or otherwise. Upon the request of the Company, Contractor agrees to disclaim
promptly in writing all such rights and give all reasonable assistance and
execute such documents to enable the Company to prepare and prosecute any
application for patent or copyright registration. The Company shall have the
sole right as it may deem appropriate to determine the treatment of information
related to any inventions, including but not limited to the right to keep the
same as a trade secret, to use, disclose, and publish same without prior patent
application or copyright registration and to file the same in its own name or
to follow any other procedure which the Company may deem appropriate. During
the Term of this Agreement, Contractor understands that all rights in any
project, program or venture that he is engaged in and associated with in the
planning or implementing involving the Company and a third party or parties,
belong to the Company. Except as formally approved in writing by the Company,
Contractor shall not be entitled to any interest in such project, program or
venture or to any commission, finder’s fee or other compensation in connection
therewith other than the fee to be paid to Contractor as provided in this
Agreement.

6.               Confidentiality.  The Contractor acknowledges that during the
engagement, he will have access to and become acquainted with various trade
secrets, inventions, processes, information, records and specifications and
other confidential information owned or licensed by the Company and/or used by
the Company in connection with the operation of the business including, without
limitation, the Company’s business and product processes, methods, customer
lists, investor lists, accounts and procedures. 
“Confidential Information” means information, not generally known, and
proprietary to the Company or to a third party for whom the Company is
performing work, including, without limitation, information concerning any
patents or trade secrets, confidential or secret designs, processes, formulae,
source codes, plans, devices or material, research and development, proprietary
software, analysis, techniques, materials or designs (whether or not patented
or patentable), directly or indirectly useful in any aspect of the business of
the Company, any vendor names, customer and supplier lists, databases,
management systems and sales and marketing plans of the Company, any
confidential secret development or research work of the Company, or any other
confidential information or proprietary aspects of the business of the Company.
All information which Contractor acquires or becomes acquainted with during the
period of engagement with the Company, whether developed by Contractor or by
others, which Contractor has a reasonable basis to believe to be Confidential
Information, or which is treated by the Company as being Confidential
Information, shall be presumed to be Confidential Information.  The Contractor agrees that he will not disclose
any of the aforesaid, directly or indirectly, or use any of them in any manner,
either during the term of this Agreement or at any time thereafter, except as
required in the course of this engagement with the Company.  All files, records, documents, blueprints,
specifications, information, letters, notes, media lists, original
artwork/creative, notebooks, and similar items

 2
 

relating to the business of the Company, whether
prepare by the Contractor or otherwise coming into his possession, shall remain
the exclusive property of the Company. 
Upon the expiration or earlier termination of the Agreement, or whenever
requested by the Company the Contractor shall immediately deliver to the
Company all such files, records, documents, specifications, information, and
other items in his possession or under his control.

7.               Termination.  The Company may terminate this Agreement at
any time by 20 working days’ written notice to the Contractor. In addition, if
the Contractor is convicted of any crime or offense, fails or refuses to comply
with the written policies or reasonable directive of the Company, is guilty of
serious misconduct in connection with performance hereunder or materially
breaches provisions of this Agreement, the Company at any time may terminate the
engagement of the Contractor immediately and without prior written notice to
the Contractor.  The Contractor may
terminate this engagement at any time by 20 working days’ written notice to the
Company.

8.               Independent
Contractor.  This Agreement shall not
render the Contractor an employee, board member, partner, agent of, or joint
venture with the Company for any purpose. Contractor shall have no authority to
bind or otherwise obligate Company in any manner nor shall Contractor represent
to anyone that he has a right to do so. 
The Contractor is and will remain an independent contractor in his
relationship to the Company. The Company shall not be responsible for
withholding taxes with respect the Contractor’s compensation hereunder.  The Contractor shall have no claim against
the Company hereunder or otherwise for vacation pay, sick leave, retirement
benefits, social security, worker’s compensation, health or disability
benefits, unemployment insurance benefits, or employee benefits of any kind.

9.               Assignment.  The Contractor shall not assign any of his
rights under this Agreement, or delegate the performance of any of his duties
hereunder, without the prior written consent of the Company.

10.         Modification or
Amendment.  No amendment, change or
modification of this Agreement shall be valid unless in writing signed by the
parties hereto.

11.         Entire Understanding.  This document and any attachment constitute
the entire understandings and agreement of the parties, and any and all prior
agreements, understandings, and representations are hereby terminated and
canceled in their entirety and are of no further force and effect.

12.         State of Enforcement.  This Agreement shall be governed by and shall
be construed in accordance with the laws of the State of Alabama.

 3
 

IN WITNESS WHEREOF
the undersigned have executed this Agreement as of the day and year first
written above.

	
  Tennessee Valley
  Agri-Energy, LLC

  	
   

  	
  Philip Foster

  	
   

  
	
   

  	
   

  	
  Contractor

  
	
  By:

  	
    /s/ Dennis Bragg

  	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Its:

  	
  Vice President

  	
   

  	
   

  	
   

  
	
   

  	
  Title

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
    /s/ Philip Foster

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Its:

  	
  Proj. Mgr. –
  Independent Contractor

  	
   

  	
   

  
	
   

  	
  Title

  	
   

  	
   

  
							

 

 4

Project
Manager, Tennessee Valley Agri-Energy

Independent
Contractor Position Description

December
21, 2006

Position
Number: IC0001

Introductory
Statement: As Project Manager, Tennessee Valley Agri-Energy
LLC (TVAE), serves as the primary point of contact for all matters related to
the full operational development of an ethanol plant as delegated by the TVAE
board of directors.  The incumbent will
be responsible for planning, budgeting, scheduling, engineering oversight,
design and development oversight, plant test and evaluation oversight,
facilities and operations for the plant. 
The work includes advising on, coordinating, monitoring, or performing
work in several phases of technical, managerial, and resources planning. The
work may include designing, implementing, and maintaining technical management
functions typically involving two or more areas of management functions such as
resources analysis, technical management, and technical engineering operations
management and will include monitoring contractors engaged in this work.  The Project Manager shall provide a detailed
report to the board upon request and prepare and deliver a full written and
oral report periodically, but no less than on a quarterly basis.

The duties are more
specifically described in four basic task areas below.

Construction
Management 40% 

Communicates to the TVAE
board the project milestones, actionable events, and/or project issues under
review, and deadlines and time frames for completion. Monitors and reports on
the status and progress of work, checking on work in progress and reviewing
completed work to see that the board’s instructions on work priorities,
methods, deadlines, and quality have been met. Prepares and delivers reports
(written and/or oral) no less than quarterly and maintains records of work
accomplishments and administrative information. Estimates and reports to the
board on progress in meeting established milestones and deadlines for
completion of assignments, projects, and tasks. Ensures the board is aware of
and participates in planning for achievement of TVAE goals and objectives.  Presents significant decisions to be made to
the board in a timely manner.

This task is
further subdivided into subtasks. Items marked with an asterisks and number are
significant milestones or events and form the basis for remuneration.  The expected completion dates are designated
in the last column as semi-annual (sa) periods 1sa-4sa over the term of
engagement.

	
  1.     Pre-construction
  planning and management

  	
   

  	
   

  
	
  a.   Environmental Compliance

  	
   

  	
   

  
	
   

  	
  i.

  	
  Air Permit Filed

  	
  *1

  	
  1sa

  
	
   

  	
  ii.

  	
  Air Permit Received from State

  	
  *2

  	
  1sa

  
	
  b.   Schedule development and
  critical path analysis (initial)

  	
  *3

  	
   

  
	
  c.   Construction Contracting

  	
   

  	
   

  
	
  i.

  	
  Rail design accepted by Norfolk Southern

  	
  *4

  	
  1sa

  
	
  ii.

  	
  Rail construction on contract

  	
  *5

  	
  2sa

  
	
  iii.

  	
  Delta T design complete

  	
  *6

  	
  2sa

  
	
  iv.

  	
  Builder on contract

  	
  *7

  	
  2sa

  
						

 

 1
 

 

	
  

  	
  v.

  	
  Road
  entrance(s), utilities design

  	
  *8

  	
  2sa

  
	
   

  	
  vi.

  	
  Earthwork
  builder on contract

  	
  *9

  	
  2sa

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.     Construction
  management

  	
   

  	
   

  
	
   

  	
  a.   Plant
  groundbreaking

  	
  *10

  	
  2sa

  
	
   

  	
  b.   Rail
  construction started/completed

  	
  *11a/b

  	
  2sa/3sa

  
	
   

  	
  c.   Earthwork
  started/completed (for plant construction)

  	
  *12a/b

  	
  2sa/3sa

  
	
   

  	
  d.   Plant at
  50% completed state (per schedule)

  	
  *13

  	
  3sa

  
	
   

  	
  e.   Plant at
  nameplate operation

  	
  *14

  	
  4sa

  
	
   

  	
   

  	
   

  	
   

  
	
  3.     Long
  lead item procurement

  	
   

  	
   

  
	
   

  	
  a.   Identification
  of long lead items

  	
   

  	
   

  
	
   

  	
  b.   Contract
  for long lead items (from 3a above)

  	
  *15

  	
  2sa

  
	
   

  	
  c.   Delivery
  of long lead items (from 3b above)

  	
  *16

  	
  4sa

  
						

 

 

Fundraising
and Financial Management 20% 

Plans, participates,
and/or leads investor meetings for the primary equity drives and subsequent
fundraising should it be required. 
Advises the board on all aspects of securing equity.  Meets with prospective investors on behalf of
the board.  Prepares strategy for
attracting investment and for handling the invested funds

Actively pursues grants,
incentives, other inducements available from local, state, federal, and
agricultural and energy organizations and foundations.

Provides authoritative
technical decisions, advice, and consultation on variables and unknowns
affecting planning, integration, coordination, and critical management problems
with respect to safety, costs, and economics.

Prepares annual budgets
and manages the budget throughout its lifecycle including advisement to the
board for budget reformulation.  Provides
detailed explanations (written and oral) for budgeting underruns and overruns
on a periodic basis but no less than quarterly.

Advises the board on debt
structuring, terms, and conditions. 
Represents the board upon request in meetings with financial
institutions.

This task is
further subdivided into subtasks. Items marked with an asterisks and number are
significant milestones or events and form the basis for remuneration.  The expected completion dates are designated
in the last column as semi-annual (sa) periods 1sa-4sa over the term of
engagement.

	
  1.     Equity Drive

  	
   

  	
   

  
	
  a.   Equity strategy complete

  	
  *17

  	
  1sa

  
	
  b.   Primary funds raised

  	
  *18

  	
  1sa

  
	
   

  	
   

  	
   

  
	
  2. Debt Management

  	
   

  	
   

  
	
  a.   Debt strategy complete

  	
  *19

  	
  1sa

  
	
  b.   Financial Close (Debt Agreements)

  	
  *20

  	
  2sa

  
	
   

  	
   

  	
   

  
	
  3. Budget Management

  	
   

  	
   

  
	
  a.   Budget Preparation (annually)

  	
  (initial)*21

  	
  1sa

  
	
  b.   Budget reports (quarterly)

  	
  *22

  	
  1-4sa

  

 2
 

Operations
and Logistics Management 20% 

Plans and manages
operational and logistical processes leading to the safe and efficient
development and operation of the plant. 
Incumbent will advise the board on potential operational procurement
contracts including consumables, equipment, and feedstocks and shall negotiate
contracts as directed by the board. 
Incumbent will advise the board on potential operational marketing
contracts including all income producing or expense avoidance products and/or
processes and shall negotiate contracts as directed by the board.

Plans for, hires, and
directs plant staff and operations and logistics contractors in preparation for
the safe and efficient development and operation of the plant.  Presents staffing concepts to the board for final
consideration and approval and reports on hiring progress periodically but no
less than quarterly.  Devises specific
metrics for employee performance and maintains records and presents a summary
to the board periodically, but no less than quarterly.

This task is
further subdivided into subtasks. Items marked with an asterisks and number are
significant milestones or events and form the basis for remuneration.  The expected completion dates are designated
in the last column as semi-annual (sa) periods 1sa-4sa over the term of
engagement.

	
  1.     Pre-operational
  planning

  	
   

  	
   

  	
   

  
	
  a.   Strategy
  for consumables

  	
   

  	
  *23

  	
  3sa

  
	
  b.   Contracts
  for grain procurement/other significant procurement

  	
   

  	
  *24/a/b

  	
  4sa/4sa

  
	
  c.   Strategy
  for product/process marketing

  	
   

  	
  *25

  	
  3sa

  
	
  d.   Contract
  for ethanol marketing/DDGS/CO2/other

  	
   

  	
  *26a/b/c/d

  	
  4sa/4/4/4

  
	
  e.   Strategy
  for utility purchase/on contract

  	
   

  	
  *27a/b

  	
  2sa/2

  
	
   

  	
   

  	
   

  	
   

  
	
  2.     Staffing

  	
   

  	
   

  	
   

  
	
  a.   Strategy
  for staffing

  	
   

  	
  *28

  	
  3sa

  
	
  b.   Plant
  Manager hired

  	
   

  	
  *29

  	
  4sa

  
	
  c.   Staff and employees hired (For start-up)

  	
   

  	
  *30

  	
  4sa

  
	
   

  	
   

  	
   

  	
   

  
	
  3.     Product
  Handling Management

  	
   

  	
   

  	
   

  
	
  a.   Rail
  logistics plan

  	
   

  	
  *31

  	
  3sa

  
	
  b.   Rail
  product handling operational

  	
   

  	
  *32

  	
  4sa

  
	
  c.   Port
  logistics plan

  	
   

  	
  *33

  	
  3sa

  
	
  d.   Port
  product handling operational

  	
   

  	
  *34

  	
  4sa

  

 

Public
Information and Community Outreach 20% 

Plans for community
information, serves as primary spokesperson, and prepares/maintains a public
and private communication plan.  Advises
the board on public perception and media control.  Prepares the board for significant public
events through the use of talking points and message preparation. Addresses
positive and negative publicity within the constraints set by the board.  Maintains a cognizance of public perception
of the plant and strives to maintain an excellent public perception.

Maintains good relations
with state, local, and federal officials. 
Advises the board on legislative issues that could affect the
plant.  Plans a communication strategy to
keep the elected and other public officials informed on the plant
development.  Maintains a cognizance of
official perception of the plant and strives to maintain a superior perception.

 3
 

Develops a strategy for
community outreach in the region.

Organizes significant
events such as plant groundbreaking and plant declaration of operational status
so that a wide exposure is a potential and ensures mass media coverage.

OTHER
SIGNIFICANT FACTS:

Performs other duties as
assigned.

Responsible for carrying
out assigned duties and responsibilities in a manner consistent with the
safety, health, and environmental policies set forth by the board. Reports
existing or potentially hazardous situations and close calls to the board and
assists the board in eliminating these conditions.

Compensation
Terms and Provisions

Base salary and expense
allowances will be paid monthly. 
Milestone payments and stock ownership will be paid/allotted
semi-annually per the schedule above should the milestone be met timely.  If a milestone is not met per the schedule
depicted then a pro-rated payment will be withheld pending milestone
completion, but stock ownership will be forfeited.  The remuneration schedule is as follows:

	
    Expense
  allowance

  	
  $1000 per month

  	
  Paid monthly

  
	
    Salary

  	
  $4000 per month

  	
  Paid monthly

  
	
    Milestone
  payments

  	
  Paid in semi-annual (sa) increments

  	
   

  
	
   

  	
  1sa period

  	
  $5000

  	
  Validated/paid July 2007

  
	
   

  	
  2sa period

  	
  $10000

  	
  Validated/paid Dec 2007

  
	
   

  	
  3sa period

  	
  $5000

  	
  Validated/paid July 2008

  
	
   

  	
  4sa period

  	
  $10000

  	
  Validated/paid Dec 2008

  
	
    Stock
  Ownership Incentives

  	
  Paid in semi-annual (sa) increments at $2/unit

  	
   

  
	
   

  	
  1sa period

  	
  2500 units

  	
  Validated/awarded July 2007

  
	
   

  	
  2sa period

  	
  5000 units

  	
  Validated/awarded Dec 2007

  
	
   

  	
  3sa period

  	
  2500 units

  	
  Validated/awarded July 2008

  
	
   

  	
  4sa period

  	
  5000 units

  	
  Validated/awarded Dec 2008

  

 

Total available value for first year: $120000

Total available value for second year: $120000

 4
 

IN WITNESS WHEREOF
the undersigned have executed this Position Description and Pay Scale Agreement
as of the 1st day of Jan 2007.

	
  Tennessee Valley Agri-Energy,
  LLC

  	
   

  	
  Philip Foster

  	
   

  
	
   

  	
   

  	
  Contractor

  
	
   

  	
   

  	
   

  
	
  By:

  	
    /s/
  Dennis Bragg

  	
   

  
	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
    Vice
  - President

  	
   

  
	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
    /s/
  Philip Foster

  	
   

  
	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
    Proj.
  Mgr. – Independent Contractor

  	
   

  
	
   

  	
  Title

  	
   

  
						

 

 5EXHIBIT 10.16

US  U.S. Energy

ENERGY MANAGEMENT AGREEMENT

(Site Development And Operations)

The purpose of this Agreement is to set forth the
understanding and agreement between U.S. Energy Services, Inc. (“U.S. Energy”)
and Tennessee Valley Agri-Energy LLC (“TVAE”) related to the provision of
energy management services.

PROJECT DESCRIPTION: TVAE is
developing a 50 million gallon per year ethanol plant (“Plant”) to be located
near Decatur, Alabama.  The Plant will
have peak electric usage of approximately a 5 MW peak usage in electricity and
will consume approximately 4,000 MMBtu of natural gas per day.

U.S. ENERGY RESPONSIBILITIES:  U.S. Energy will provide consulting and
energy management services for supplies of natural gas and electricity for the
Plant.  These services will be provided
during the construction of the Plant (“Construction Period”), and after the
Construction Period when the Plant has been placed in service (“Completion Date”).  The Completion Date shall be determined when
the Plant begins producing ethanol. 
These services will be provided to TVAE upon request:

A.                                    Energy
Infrastructure Advisory Services During the Construction Period

1.                                       Provide
an economic comparison of distribution service options.  Such options will include service from area
distribution utilities, interstate pipelines and third party contractors.

In the event that a direct connect pipeline option is
selected, U.S. Energy will submit a tap request to the pipeline.  In addition, U.S. Energy will also attempt to
negotiate an option for TVAE to minimize interconnect costs through the
purchase of firm transportation to the Plant.

2.                                       Determine
whether firm, interruptible, or a blend of transportation entitlement will
provide the lowest burnertip cost. 
Factors that will be considered include pipeline credits for the new
interconnect, cost of an alternate fuel system, and availability of specific
receipt point capacity.

3.                                       Provide
advisory services to TVAE regarding electric pricing and service agreements.

a.                                       Analyze
the electric service proposals along with primary, secondary and generation
options and recommend an electric sourcing strategy and plan.  The plan may include a combination of
electric supplier agreement and/or installation of on-site generation.

b.                                      Negotiate
final electric service agreements that meet the pricing and reliability
requirements of TVAE, including options for third party access to electric
metering.

c.                                       Prepare
and implement a regulatory strategy, if required and if an alternative power
supplier is selected.  Any attorney fees
required for the specific purpose of obtaining regulatory approval for an
alternative power supplier, if any, will be over and above U.S. Energy’s
monthly fee herein, and must be pre-approved by TVAE.

4.                                       Evaluate
the proposed electric distribution infrastructure (substation) for reliability,
future growth potential and determination of the division of ownership of
facilities between the utility and the Plant.

5.                                       Investigate
economic development rates, utility grants, equipment rebates and other utility
programs that may be available.

B.                                    On-Going
Energy Management Services Following the Completion Date

U.S. Energy will provide the following services at TVAE’s
request:

1.                                       Provide
natural gas supply information to minimize the cost of natural gas purchased.
This will include acquiring multiple supply quotes and reporting to TVAE the
various supply index and fixed prices. 
U.S. Energy will not take title to TVAE gas supplies, but will
communicate supply prices and potential buying strategies.

2.                                       Negotiate
with pipelines, utilities, other shippers, and suppliers to provide
transportation, balancing, and supply agreements that meet TVAE’s performance
criteria at the lowest possible cost.

3.                                       Develop
and implement a price risk management plan that is consistent with TVAE’s
pricing objectives and risk profile.  An analysis
will be developed to help determine the amount of fuel usage that should be
considered for this price management service. 
U.S. Energy will also provide price risk management information through
the following communications:

Weekly Update:  E-mailed each week

Monthly Conference Call:
Occurs the first Tuesday of each month

Hedge Recommendations: Updated
regularly and published on U.S. Energy’s web site

Annual Energy Conference: Occurs
in May of each year.

Gold+ Web Site Access:  Gold+ is U.S. Energy’s password-protected web
site that allows TVAEs access to their information.  Gold+ access also makes available industry
news, hedging strategies and NYMEX pricing.

4.                                       Provide
daily nominations to the suppliers, pipeline, and other applicable shippers for
natural gas deliveries to the Plant.  This
will include daily electronic confirmations to TVAE of all nominations and
actual daily usage.  U.S. Energy will
utilize customer or utility supplied telemetering to obtain actual usage data.

 2
 

5.                                       Provide
a consolidated monthly invoice to TVAE that reflects all applicable natural gas
and electric energy costs.  U.S. Energy
will be responsible for reviewing, reconciling and paying all shipper, supplier
and utility invoices.

6.                                       Provide
a monthly usage report of electric energy consumption and costs.  Also, where applicable and available from the
utility, obtain monthly interval electric load data and provide monthly load
profile graphs.

7.                                       On-going
review and renegotiation of electric service costs, as required.  This may include:

a.                                       Completing
and evaluating annual proposals to identify the most reliable and economic
third party electric energy supply.

b.                                      Identifying
new service tariffs or opportunities to renegotiate the service agreement to
provide lower costs.

c.                                       Identifying
on-site generation opportunities as market conditions change.

d.                                      Provide
a monthly projection of energy (natural gas and electricity) and annual
summaries.

8.                                       Provide
natural gas and electric energy operating budgets for the Plant.

AGENCY:  U.S. Energy will act as TVAE’s agent while
managing TVAE’s energy matters.  The
scope of this agency is set forth in the Agency Authorization between U.S.
Energy and TVAE attached as Exhibit A (the terms of which are made a
part of this Agreement).

TERM:  The initial term of this
Agreement shall commence on Apr 1, 2007 and continue until twenty-four
(24) months after the Plant’s Completion Date. 
It will then renew for a one-year term, year to year thereafter, unless TVAE
or U.S. Energy terminates the contract upon sixty (60) days prior written
notice before the annual renewal date.  TVAE
shall remain responsible for payment and performance associated with any and
all transportation, supply, and storage transactions entered into by U.S.
Energy and authorized by TVAE, prior to termination, as well as fees and
charges for U.S. Energy’s services occurring up until the termination date.

FEES:  U.S. Energy’s fee for services during the
term of this Agreement shall be a monthly retainer fee of $3,500.00 per month
plus pre-approved travel expenses. The monthly retainer fee will increase 4%
per year on the annual anniversary date of the effective date of this
Agreement.

In the event that plant financing is not secured, this
Agreement shall become null and void and both parties will be relieved of
professional and/or financial obligations due the other party.  However, TVAE shall remain responsible for
payment and performance associated with any and all transportation, supply, and
storage transactions entered into by U.S. Energy and authorized by TVAE, prior
to termination, as well as fees, charges 

 3
 

and pre-approved travel expenses for U.S. Energy’s
services occurring up until the termination date.

If TVAE elects to utilize U.S Energy to provide
physical or financial natural gas hedging services, a $.01/MMBTu administrative
fee will be assessed on volumes hedged to cover the costs associated with
compliance to Federal and State commodities rules and regulations and
administrative costs of facilitating this natural gas hedging service.

BILLING AND PAYMENT:  On the first of the month, U.S. Energy shall
invoice TVAE for appropriate energy costs from the previous month and for the
U.S. Energy retainer for the current month. 
TVAE shall pay U.S. Energy within ten (10) days of receipt of invoice.

TAXES:  TVAE will be responsible for payment of all
taxes including, but not limited to, all sales, use, excise, BTU, heating value
and other taxes associated with the purchase and/or transport of natural gas,
electricity or other fuels and the provision of services hereunder.

CONFIDENTIALITY:  U.S. Energy shall not divulge to any other
person or party any information developed by U.S. Energy hereunder or revealed
to U.S. Energy pursuant to this Agreement, unless such information is (a)
already in U.S. Energy’s possession and such information is not known by U.S.
Energy to be subject to another Confidentiality Agreement, or (b) is or becomes
generally available to the public other than as a result of an unauthorized
disclosure by U.S. Energy, its officers, employees, directors, agents or its
advisors, or (c) becomes available to U.S. Energy on a non-confidential basis
from a source which is not known to be prohibited from disclosing such
information to U.S. Energy by legal, contractual or fiduciary obligation to TVAE,
or (d) is required by U.S. Energy to be disclosed by court order, or (e) is
permitted by TVAE.  All such information
shall be and remain the property of TVAE unless such information is subject to
another Confidentiality Agreement, and upon the termination of this Agreement,
U.S. Energy shall return all such information upon TVAE’s request.  Notwithstanding anything to the contrary
herein, U.S. Energy shall not disclose any information which is in any way
related to this Agreement or U.S. Energy’s services hereunder without first
discussing such proposed disclosure with TVAE.

NOTICES:  Any formal notice, request or demand which a
party hereto may desire to give to the other respecting this Agreement shall be
in writing and shall be considered as duly delivered as of the postmark date
when mailed by ordinary, registered or certified mail by said party to the
addresses listed below. Either party may, from time-to-time, identify alternate
addresses at which they may receive notice during the term of this Agreement by
providing written notice to the other party of such alternate addresses.

 4
 

 

	
  Tennessee Valley Agri-Energy, LLC:

  	
   

  	
   

  
	
   

  	
  Attn:

  	
    Bartt McCormack

  
	
   

  	
   

  	
    540 Little Dry Creek Rd.

  
	
   

  	
   

  	
    Pulaski, TN 38478

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  U.S.
  Energy:

  	
   

  	
    Bank: US Bank

  
	
  (Payment by wire):

  	
   

  	
   

  	
    Account Name: U.S. Energy Services, Inc.

  
	
   

  	
   

  	
   

  	
    Account #: 173100561153

  
	
   

  	
   

  	
   

  	
    ABA: 091 0000 22

  
	
   

  	
   

  	
   

  	
   

  
	
  (Notices):

  	
   

  	
   

  	
    U.S. Energy Services, Inc.

  
	
   

  	
   

  	
   

  	
    1000 Superior Blvd., Suite 201

  
	
   

  	
   

  	
    Wayzata, MN 55391

  
	
   

  	
   

  	
    Attn: Contract Administration

  

 

ASSIGNMENT OR AMENDMENT:  The Agreement may not be assigned or amended
without the written consent of U.S. Energy and TVAE.

APPLICABLE LAW:  The Agreement shall be construed in
accordance with the laws of the State of Minnesota.

ENTIRE AGREEMENT:  This Agreement constitutes the entire
Agreement among the parties pertaining to the subject matter hereof and
supersedes all prior Agreements and understanding pertaining hereto.

 5
 

Agreed
to and Accepted by:

Tennessee Valley Agri-Energy, LLC

	
  By

  	
   

  	
  /S/ Bartt R. McCormack

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Bartt R. McCormack

  	
   

  
	
  (Print)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Chairman

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  4/13/2007

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  U.S. Energy Services, Inc.

  
	
   

  
	
  By:

  	
   

  	
  /S/ Gail McMinn

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Gail McMinn

  	
   

  
	
  (Print)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  EVP – Commercial Services

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  4/24/07

  	
   

  

 

 6
 

EXHIBIT A

AGENCY AUTHORIZATION

The purpose of this Agency Authorization (this “Authorization”)
is to set forth the authorization and agreement between U.S. Energy Services,
Inc. (“U.S. Energy”) and Tennessee Valley Agri-Energy, LLC (“TVAE”) related to
the provision of energy supply management services.

TVAE and U.S. Energy agree on the following terms and
conditions:

1.                                       APPOINTMENT AND SCOPE – TVAE hereby appoints U.S. Energy as
its agent for managing TVAE’s energy supplies and to deal with third parties on
behalf of TVAE, in connection with energy-related matters, in U.S. Energy’s
capacity as TVAE’s agent, including, without limitation, the purchase of energy resources in such quantity and at such times as TVAE
may authorize in writing, by electronic communications (e.g., by email),
verbally or otherwise (“Energy Procurements”).  U.S. Energy is authorized to contract on
behalf of TVAE for the acquisition of energy supply, transportation and
distribution.  U.S. Energy hereby accepts
such appointment and agrees to use commercially reasonable efforts to perform
the services required by this Authorization.

2.                                       AUTHORITY OF U.S. ENERGY TO ALIGN CREDIT – TVAE authorizes
U.S. Energy, in making Energy Procurements, to align credit from energy
suppliers or third parties on behalf and as an agent of TVAE, as needed.

3.                                       AUTHORITY OF U.S. ENERGY TO EXTEND CREDIT  – TVAE hereby agrees that when making Energy Procurements on
behalf of a TVAE, U.S. Energy may use U.S. Energy funds to pay suppliers,
thereby extending credit directly to TVAE (and acting as a “Creditor,” as that
term is used in this Authorization).

4.                                       TERM  – The term of
this Authorization shall commence as of the date hereof and shall continue
indefinitely until such time as the parties hereto shall agree in writing to
terminate the Authorization.

5.                                       INDEPENDENT CONTRACTOR  –
It is not the intent of the parties hereto
to form any partnership or joint venture relationship.  Each
party shall, in relation to its obligations hereunder, act as an independent
contractor.

6.                                       RELEASE OF ENERGY CONSUMPTION RECORDS AND BILLS  - This Agreement serves as authorization for the release of TVAE’s
energy consumption records and bills from pipelines and suppliers to U.S.
Energy.

7.                                       AUTHORITY –  Each party
represents and warrants to the other that it is fully empowered and authorized
to execute and deliver this Authorization, and the individuals signing this Authorization
each represent and warrant that he or she is fully authorized to do so.

 7
 

Agreed to and Accepted by:

	
  Tennessee Valley Agri-Energy, LLC

  	
   

  	
   

  	
  U.S. Energy Services, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /S/ Bartt R. McCormack

  	
   

  	
   

  	
  By: 

  	
  /S/ Gail McMinn

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name: 

  	
  Bartt R. McCormack

  	
   

  	
   

  	
  Print Name: 

  	
  Gail McMinn

  	
   

  
	
   

  	
   

  	
   

  
	
  Title: 

  	
  Chairman

  	
   

  	
   

  	
  Title: 

  	
  EVP Commercial Sves

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   4/13/2007

  	
   

  	
   

  	
  Date: 

  	
  4/24/07

  	
   

  
														

 

 8

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