Document:

EXHIBIT 10.27

 

	
  

  
	
   

  PANATTONI

  CONSTRUCTION, INC.

  4601 DTC BLVD.,

  SUITE 650

  DENVER, CO

  80237

  PH 303/623-0865

  FX 303/623-0890

  WWW.panconinc.com

   

  CO LIC #233155

  ATLANTA, GA

  CHICAGO, IL

  DENVER, CO

  EDISON, NJ

  FT.LADDERDALE, FL

  INDIANAPOLIS, IN

  IRVINE, CA

  LAS VEGAS, NV

  LOS ANGELES, CA

  MEMPHIS, TN

  NAPA, CA

  NASHVILLE, TN

  ORLANDO, FL

  PHOENIX, AZ

  PORTLAND, OR

  RENO, NV

  SACRAMENTO, CA

  SEATTLE, WA

  ST. LOUIS, MO

  AFFILIATED COMPANIES

   

  PANATTONI

  CONSTRUCTION, L.P.

   

  DALLAS, TX

  HOUSTON, TX

  PANATTONI

  CONSTRUCTION, LLC

  ATLANTA, GA

  

  	
  February 11, 2008

   

  
	
   

  
	
  

  

  

 

Tennessee Valley
Agri-Energy, LLC

Attn: Mr. Bartt McCormack

540 Little Dry Creek Road

Pulaski, Tennessee  38478

 

Subject: Amendment 3
to Preliminary Engineering Services and Exclusivity
Agreement

 

Dear Bartt,

 

Per Article 14 -
Notices of the Preliminary Engineering Services and
Exclusivity Agreement (“Agreement”) between Tennessee Valley
Agri-Energy, LLC (“TVAE”) and Panattoni Construction, Inc. (“Panattoni”),
which parties may be referred to individually as “Party” or jointly as
“Parties”, and due to recent major events involving both TVAE’s and Panattoni’s
termination of their respective agreements and activities with Delta-T
Corporation (“Delta-T”), this letter is to amend the Agreement as described
herein.

 

Whereas, TVAE terminated
its Project Development Agreement (“PDA”) with Delta-T on January 8, 2008.

 

Whereas:

i.)         Panattoni
terminated its Memorandum of Understanding (“MOU”) with Delta-T on October 29,
2007, in which Panattoni, without any obligation, agreed to cooperate with
Delta-T in cultivating the TVAE project but only under the expressed interest
of TVAE;

 

ii.)        upon TVAE’s
termination of the PDA, Panattoni on January 9, 2008 concluded any
association with Delta-T and indicated its intent to return and/or destroy all
Delta-T confidential and proprietary information; and

 

iii.)       on
January 24, 2008 Panattoni a.) confirmed its return to Delta-T and/or
destroying of all Delta-T confidential and proprietary information, and b.)
indicated its relationship with Delta-T was fully and finally terminated.

 

Whereas, the Parties
desire to utilize the Agreement for continued pre-construction engineering
services on a time & material bases, until a time when a construction
scope of services can be appropriately defined and a new agreement can be
potentially entered into by the Parties.

 

Now, therefore, in
consideration of the foregoing, which by this reference are incorporated as
part of this third amendment to the Agreement (“Amendment”), the Parties agree
as follows.

 

1

 

	
   

  	
  1.     All Agreement
  references to Delta-T, references to Delta-T Project Services Group (“DTPSG”)
  (later changed to Ford Bacon & Davis in the first amendment to the
  Agreement), Exhibits A, B & D, and Delta-T related portions of Exhibit C,
  are all null and void.

   

  2.     Neither Party
  is required to perform any further the services in the Agreement that
  logically cannot be performed due to the Parties’ terminations of agreements
  with Delta-T; any such work performed todate is acceptable “as is” as
  nullified work.

   

  3.     Work performed
  by Ford Bacon & Davis as subcontractor to Panattoni under the
  Agreement is considered to be acceptable and complete due to its nullified
  nature.

   

  4.     Any potential
  future Panattoni scope of work and new agreement may or may not involve
  Panattoni as TVAE’s Engineering, Procurement & Construction (“EPC”)
  contractor, general contractor for work separate from EPC scope performed by
  others, and/or owner’s representative.

   

  5.     In Article 3
  – Compensation, the actual costs and expenses shall remain here forward as a
  “Time & Material” compensation method, the Not-to-Exceed price is
  eliminated, and the actual compensation shall not be credited against any
  future agreement between the Parties.

   

  6.     Article 5
  – Exclusivity is eliminated by this Amendment.

   

  7.     Either Party
  may terminate the Agreement upon at least ten (10) days’ prior written
  notice given to the other Party.

  
	
   

  	
   

  
	
   

  	
  The below listed
  parties through their respective authorized representatives have executed
  this Amendment the day and year herein below written.

  

 

	
   

  	
  PANATTONI CONSTRUCTION, INC.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
    /S/ Scott
  Kaminky

  	
   

  
	
   

  	
  Printed Name: Scott
  Kaminky

  
	
   

  	
  Title: VP
  Power & Industrial

  
	
   

  	
  Date: 

  	
   

  	
  2/11/08

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENNESSEE VALLEY AGRI-ENERGY,
  LLC.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
    /S/ Bartt
  R. McCormack

  	
   

  
	
   

  	
  Printed Name:
  Mr. Bartt McCormack

  
	
   

  	
  Title: Chairman

  
	
   

  	
  Date: 

  	
   

  	
  02/14/08

  	
   

  
								

 

2Exhibit 10.28

 

Attachment A

 

Project
Manager, Tennessee Valley Agri-Energy

 

Independent
Contractor Position Description

 

February 7, 2008

 

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 consists of the potential milestones below. Bonus payments
for each semi-annual period are based on meeting expectations of this task and
making meaningful progress towards the potential milestones listed below.

 

	
   

  	
  1.

  	
  Pre-construction
  planning and management

  	 

	
   

  	
  a.

  	
  Environmental
  Compliance

  
	
   

  	
   

  	
  i.

  	
   

  	
  Air
  Permit Filed

  
	
   

  	
   

  	
  ii.

  	
   

  	
  Air
  Permit Received from State

  
	
   

  	
  b.

  	
  Schedule
  development and critical path analysis (initial)

  
	
   

  	
  c.

  	
  Construction
  Contracting

  
	
   

  	
   

  	
  i.

  	
   

  	
  Rail
  design accepted by Norfolk Southern

  
	
   

  	
   

  	
  ii.

  	
   

  	
  Rail
  construction on contract

  
	
   

  	
   

  	
  iii.

  	
   

  	
  Plant
  design complete

  
	
   

  	
   

  	
  iv.

  	
   

  	
  Builder
  on contract

  
	
   

  	
   

  	
  v.

  	
   

  	
  Road
  entrance(s), utilities design

  
											

 

 

Attachment A

 

	
   

  	
   

  	
  vi.

  	
   

  	
  Earthwork
  builder on contract

  
	
   

  	
  2.

  	
  Construction
  management

  	 

	
   

  	
  a.

  	
  Plant
  groundbreaking

  
	
   

  	
  b.

  	
  Rail
  construction started/completed

  
	
   

  	
  c.

  	
  Earthwork
  started/completed (for plant construction)

  
	
   

  	
  d.

  	
  Plant
  at 50% completed state (per schedule)

  
	
   

  	
  e.

  	
  Plant
  at nameplate operation

  
	
   

  	
  3.

  	
  Long
  lead item procurement

  	 

	
   

  	
  a.

  	
  Identification
  of long lead items

  
	
   

  	
  b.

  	
  Contract
  for long lead items (from 3a above)

  
	
   

  	
  c.

  	
  Delivery
  of long lead items (from 3b above)

  
									

 

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 consists of the potential milestones below. Bonus payments
for each semi-annual period are based on meeting expectations of this task and
making meaningful progress towards the potential milestones listed below.

 

	
  1.

  	
  Equity
  Drive

  
	
   

  	
  a.

  	
  Equity
  strategy complete

  
	
   

  	
  b.

  	
  Primary
  funds raised

  
	
  2.

  	
  Debt
  Management

  
	
   

  	
  a.

  	
  Debt
  strategy complete

  
	
   

  	
  b.

  	
  Financial
  Close (Debt Agreements)

  
	
  3.

  	
  Budget
  Management

  
	
   

  	
  a.

  	
  Budget
  Preparation (annually)

  
	
   

  	
  b.

  	
  Budget
  reports (quarterly)

  
							

 

Operations and Logistics Management 20%

 

2

 

Attachment A

 

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 consists of the potential milestones below. Bonus payments
for each semi-annual period are based on meeting expectations of this task and
making meaningful progress towards the potential milestones listed below.

 

	
  1.

  	
  Pre-operational
  planning

  
	
   

  	
  a.

  	
  Strategy
  for consumables

  
	
   

  	
  b.

  	
  Contracts
  for grain procurement/other  significant procurement

  
	
   

  	
  c.

  	
  Strategy
  for product/process marketing

  
	
   

  	
  d.

  	
  Contract
  for ethanol marketing/DDGS/CO2/other*

  
	
   

  	
  e.

  	
  Strategy
  for utility purchase/on contract

  
	
  2.

  	
  Staffing

  
	
   

  	
  a.

  	
  Strategy
  for staffing

  
	
   

  	
  b.

  	
  Plant
  Manager hired

  
	
   

  	
  c.

  	
  Staff
  and employees hired (For start-up)

  
	
  3.

  	
  Product
  Handling Management

  
	
   

  	
  a.

  	
  Rail
  logistics plan

  
	
   

  	
  b.

  	
  Rail
  product handling operational

  
	
   

  	
  c.

  	
  Port
  logistics plan

  
	
   

  	
  d.

  	
  Port
  product handling operational

  
					

 

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.

 

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.

 

3

 

Attachment A

 

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.  Bonus payments for each semi-annual period
are based on meeting expectations of each of the four tasks and making
meaningful progress towards the potential milestones.  The personnel committee of the Board shall
rate the performance of the incumbent semi-annually using a scale of 1-10, 10
being best.  Bonus payments shall be
decremented by 1/10 of the total amount available for each score below 9, but
no payment for a score below 5.  (See
below)

 

	
  Rating

  	
   

  	
  Bonus Payment

  
	
  10

  	
   

  	
  100%

  
	
  9

  	
   

  	
  100%

  
	
  8

  	
   

  	
  80%

  
	
  7

  	
   

  	
  70%

  
	
  6

  	
   

  	
  60%

  
	
  5

  	
   

  	
  50%

  
	
  4

  	
   

  	
  0%

  
	
  3

  	
   

  	
  0%

  
	
  2

  	
   

  	
  0%

  
	
  1

  	
   

  	
  0%

  

 

Bonus
payments will be paid semi-annually per the schedule below.  Performance and timeliness shall be solely in
the judgement of the Board. The Board, at its discretion, may declare more
specific dates for achievement of milestones within a semi-annual period via
letter in advance of the milestone. 
Stock incentives will be allocated automatically for each six month
period in which the incumbent is rated 5 or higher.  The remuneration schedule is as follows:

 

	
  Expense allowance

  	
   

  	
  $1000 per
  month

  	
   

  	
  Paid monthly

  	
   

  
	
  Salary

  	
   

  	
  $4000 per
  month

  	
   

  	
  Paid monthly

  	
   

  
	
  Milestone payments

  	
   

  	
  Paid
  semi-annually (sa)

  	
   

  
	
  1sa period

  	
   

  	
  $10000

  	
   

  	
  Validated/paid
  July 2007

  	
   

  
	
  2sa period

  	
   

  	
  $20000

  	
   

  	
  Validated/paid
  Dec 2007

  	
   

  
	
  3sa period

  	
   

  	
  $10000

  	
   

  	
  Validated/paid
  July 2008

  	
   

  
	
  4sa period

  	
   

  	
  $20000

  	
   

  	
  Validated/paid
  Dec 2008

  	
   

  
	
  Stock Ownership Incentives

  	
   

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

  	
   

  
	
  1sa period

  	
   

  	
  5000 units

  	
   

  	
  Validated/awarded
  July 2007

  	
   

  
	
  2sa period

  	
   

  	
  10000 units

  	
   

  	
  Validated/
  awarded Dec 2007

  	
   

  
	
  3sa period

  	
   

  	
  5000 units

  	
   

  	
  Validated/
  awarded July 2008

  	
   

  
	
  4sa period

  	
   

  	
  10000 units

  	
   

  	
  Validated/
  awarded Dec 2008

  	
   

  

 

Total
available value for first year: $120000

Total
available value for second year:  $120000

 

4

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