Document:

cleb-2083007ex104.htm

    Exhibit
      10.4

     

    TECHNOLOGY
      LICENSE AGREEMENT

    

    This
      Technology License Agreement (the “Agreement”) is made and entered into March 8,
      2007 between S-R-S Energy, Inc., a Company incorporated under the laws of the
      State of Delaware (“SRS” or the “Licensor”), and Bio-Products International,
      Inc. (“Bio-Products” or the “Licensee”), a Company incorporated under the laws
      of the State of Alabama. The Licensor and Licensee may hereinafter be either
      individually referred to as the “Party” or collectively referred to as the
“Parties”.

    

    PREMISES:

    

    Whereas,
      pursuant to a Technology License Agreement dated September l9, 2005, SRS was
      granted an exclusive license by Bio-Products to utilize certain technology
      in
      commercial scale MSW processing and recycling facilities in the United States
      of
      America (“USA”) in which the cellulosic biomass product of the process
      technology is used specifically for the production of fuel grade ethanol;
      and

    

    Whereas,
      SRS desires to grant, and Bio-Products desires to obtain, a limited,
      non-exclusive license back to the technology SRS originally licensed from
      Bio-Products pursuant to the Technology License Agreement dated September 9th,
      2005.

    

    Now,
      therefore, in consideration of the premises and the mutual covenants contained
      herein, the Parties hereto agree as follows:

    

    ARTICLE
      I – DEFINITIONS

    

    Terms
      in
      this Agreement shall have the same meanings as set forth in the Technology
      License Agreement dated September 19, 2005.

    

    ARTICLE
      1I – GRANT OF LICENSE

    

    2.1     Subject
      to the terms and conditions of this Agreement, SRS hereby grants a
      non-exclusive, limited license to Bio-Products to utilize the Technology to
      construct and operate up to five (5) commercial scale MSW processing and
      recycling facilities in the United States of America (“USA”) in which the
      cellulosic biomass product of the process Technology is used specifically for
      the production of fuel grade ethanol. It is understood that Bio-Products may
      not
      operate or control the actual USA facility in which the Technology will be
      used
      for the production of fuel grade ethanol. Accordingly, the Parties agree and
      acknowledge that the rights granted herein allows Bio-Products to sub-license
      its rights to the entity which operates or controls the facility using the
      Technology for the production of fuel grade ethanol.

    

    2.2     Unless
      extended, terminated or replaced by agreement of the Parties hereto, the license
      term shall be perpetual.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE
      III – FEES, ROYALTIES, AND OTHER CONSIDERATION

    

    3.1     It
      is the intent of the parties that the Technology be used to process waste,
      including MSW, into a cellulosic biomass product that can be used as a feedstock
      specifically for conversion into fuel grade ethanol. Bio-Products shall pay
      to
      SRS Energy a Process Royalty of twenty-five cents ($.25) for every ton (dry
      weight) of the cellulosic biomass product that is used as a feedstock
      specifically for conversion into fuel grade ethanol by Bio-Products pursuant
      to
      this Agreement. Such Process Royalty payments shall become payable on the
      thirtieth (30th) day following the end of the calendar month in which such
      amount becomes due and owing until this Agreement or any extension thereof
      expires or is terminated. To the extent a sublicensee operates the facility
      as
      provided herein, payment shall be due from Bio-Products fifteen (15) days after
      Bio-Products receives payment from the sublicense. SRS agrees that no Process
      Royalty shall be due and payable with respect to the cellulosic biomass product
      processed at any facility until such facility has been in operation for thirty
      (30) Operating Days. Bio-Products shall pay said Process Royalty by wire
      transfer of funds to a SRS bank account.

    

    3.2     Bio-Products
      shall maintain all such books and records as are necessary to accurately
      determine all amounts due and payable to SRS under this Agreement, which books
      and records Bio-Products shall make reasonably available, upon the submission
      of
      a written request from SRS for inspection by SRS and/or its designated
      representative at a time mutually convenient to Bio-Products and SRS. SRS agrees
      to treat all such information respecting Bio-Products’ books and records as
      confidential.

    

    ARTICLE
      IV – REPRESENTATIONS AND WARRANTIES

    

    4.1     Each
      party represents and warrants, as of the date hereof, that it is a corporation,
      duly organized, validly existing and in good standing and has all requisite
      power and authority, corporate and otherwise, to execute, deliver, observe,
      and
      perform its obligations under, this Agreement. The execution, delivery and
      performance by each party have been duly authorized by all necessary corporate
      action and does not and will not violate the respective party’s Articles of
      Incorporation or Bylaws.

    

    4.2     OTHER
      THAN THE EXPRESS WARRANTY PROVIDED IN PARAGRAPH 4.1, THE LICENSE GRANTED HEREIN
      IS “AS IS”, AND ALL OTHER WARRANTIES ARE HEREBY DISCLAIMED BY SRS ENERGY. SRS
      ENERGY SHALL NOT BE REQUIRED OR OBLIGATED TO PROVIDE BIO-PRODUCTS WITH ANY
      TECHNICAL INFORMATION OR KNOW-HOW.

    

    ARTICLE
      V – EVENTS OF DEFAULT AND REMEDIES

    

    5.1     Bio-Products
      shall be in breach of this Agreement in the event of its failure to make any
      payment hereunder on or before the date on which such payment becomes due and
      payable and the continuation of such failure remains unremedied for thirty
      (30)
      days after written notice thereof has been given to Bio-Products.

    

    5.2     Bio-Products
      may terminate this Agreement at any time upon six (6) months prior written
      notice to SRS Energy, at which time the license granted herein shall terminate
      and Bio-Products shall pay to SRS Energy any royalties, fees and other amounts
      accrued through the date of such termination. Immediately upon termination
      of
      this Agreement all rights, privileges and licenses granted to Bio-Products
      hereunder shall revert to SRS Energy, including all sub-licenses of facilities
      granted by Bio-Products.

     

    
      
        	
                5.3    

              	
                (a)

              	
                Any
                  claim or controversy arising out of or relating to this Agreement,
                  or the
                  breach thereof, including without limitation the right of any Party
                  hereto
                  to terminate this Agreement, shall be settled by binding arbitration
                  administered by the American Arbitration Association in accordance
                  with
                  its then current Commercial Arbitration Rules, and judgment upon
                  the award
                  rendered by the arbitrator may be entered in any court having jurisdiction
                  thereof. The arbitration shall be before one neutral arbitrator
                  to be
                  selected in accordance with the then current Commercial Arbitration
                  Rules
                  of the American Arbitration Association. The parties shall have
                  all rights
                  to pre-arbitration discovery pursuant to the Federal Rules of Civil
                  Procedure.

              

      

       

    

    
      	
               

            	
              (b)

            	
              Neither
                of the Parties nor the arbitrator may disclose the existence, content
                or
                results of any arbitration hereunder without the prior written consent
                of
                the Parties except to counsel, accountants, and other need to know
                professionals.

            

    

     

    
      	
               

            	
              (c)

            	
              All
                fees and expenses of the arbitration shall be born by the Parties
                equally.
                However, each Party shall bear the expense of its own counsel, experts,
                witnesses, and preparation and presentation of
                proofs.

            

    

    

    
      	
               

            	
              (d)

            	
              In
                the event that a claim or controversy over the right of any Party
                to
                terminate this Agreement shall be submitted for arbitration, this
                Agreement shall continue in full force and effect, and the termination
                shall be of no effect, until the arbitrator renders a final
                decision.

            

    

    

    ARTICLE
      VI – GENERAL PROVISIONS

    

    6.1     The
      titles of the various articles and sections of this Agreement are solely for
      convenience of reference and are not part of this Agreement for purposes of
      interpreting the provisions hereof.

    

    6.2     The
      Licensee may assign all of its rights and obligations under, and all of its
      interest in, this Agreement, including without limitation the license granted
      hereby, either (i) in a transaction accompanied by the sale or other transfer
      of
      the Licensee’s entire business, its stock, or substantially all of its assets,
      or (ii) to any other entity owned by the same shareholders of Licensee and
      this
      Agreement shall be binding upon, and inure to the benefit of, any such successor
      or assign of the Licensee, provided that SRS consents in writing, such consent
      shall not be unreasonably conditioned, withheld, or delayed.

    

    6.3     Nothing
      in this Agreement shall be deemed or construed to constitute or to create a
      partnership, joint venture or agency between the Parties. Except as may be
      otherwise provided herein, neither Party shall have any authority to bind the
      other Party in any respect.

    

    6.4     If
      any provision of this Agreement is or becomes unenforceable under any law of
      mandatory application, it is the intent of the Parties hereto that such
      provision will be deemed severed and omitted herefrom, the remaining portions
      hereof to remain in full force and effect as written.

    

    6.5     The
      waiver by any Party of any failure on the part of any other Party to perform
      any
      of its obligations under this Agreement shall not be construed as a waiver
      of
      any failure or continuing failure or failures, whether similar or dissimilar
      thereto.

    

    6.6     This
      Agreement, including the exhibits hereto, constitutes the entire Agreement
      between the Parties with respect to the subject matter hereof and supersedes
      all
      prior and contemporaneous agreements between the Parties, whether oral or
      written, related to the subject matter hereof. This Agreement may be amended
      or
      modified only by a written instrument executed by the authorized representatives
      of the Parties hereto.

    

    6.7     This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed to be a duplicate original, but all of which, taken together, constitute
      a single document. This Agreement may be executed by each Party on separate
      copies, which copies, when combined so as to include the signatures of all
      Parties, shall constitute a single counterpart of this Agreement.

    

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

    

    6.9     Each
      Party to this Agreement shall execute all instruments and documents and take
      all
      actions as may be reasonably required to effectuate this Agreement.

    

    6.10    For
      purposes of venue and jurisdiction, this Agreement shall be deemed made and
      to
      be performed in the City of Huntsville, Alabama.

    

    6.11    This
      Agreement and all exhibits contain the entire agreement between the Parties
      to
      this Agreement with respect to the subject matter of this Agreement, is intended
      as a final expression of such Parties’ agreement with respect to such terms as
      are included in this Agreement, is intended as a complete and exclusive
      statement of the terms of such agreement, and supersedes all negotiations,
      stipulations, understandings, agreements, representations and warranties, if
      any, with respect to such subject matter, which precede or accompany the
      execution of this Agreement.

    

    6.12    Whenever
      the context so requires in this Agreement, all words used in the singular shall
      be construed to have been used in the plural (and vice versa), each gender
      shall
      be construed to include any other genders.

    

    6.13    Subject
      to any restriction on transferability contained in this Agreement, this
      Agreement shall be binding upon and shall inure to the benefit of the
      successors-in-interest and permitted assigns of each Party to this Agreement.
      Nothing in this Paragraph shall create any rights enforceable by any Third
      Party
      that is not a Party to this Agreement, except for the rights of the
      successors-in-interest and permitted assigns of each Party to this Agreement,
      unless such rights are expressly granted in this Agreement to other specifically
      identified Third Parties.

    

    6.14    Except
      as otherwise provided in this Agreement, in the event any litigation,
      arbitration, mediation, or other proceeding (“Proceeding”) is initiated by any
      Party against any other Party to enforce, interpret or otherwise obtain judicial
      or quasi-judicial relief in connection with this Agreement, the prevailing
      Party
      in such Proceeding shall be entitled to recover from the unsuccessful Party
      all
      costs, expenses, and reasonable attorneys’ fees relating to or arising out of
      (a) such Proceeding (whether or not such Proceeding proceeds to judgment),
      and
      (b) any post- judgment or post-award proceeding including without limitation
      one
      to enforce any judgment or award resulting from any such Proceeding. Any such
      judgment or award shall contain a specific provision for the recovery of all
      such subsequently incurred costs, expenses, and actual attorneys’
fees.

    

    6.15    Any
      notice or other communication pursuant to this Agreement shall be sufficiently
      made or given five days after the date sent, postage pre-paid, by certified
      mail, return receipt requested, if sent to the following addresses, or to such
      other address as the Party may from time to time designate to the other Parties
      in writing:

    

    In
      the
      case of Bio-Products:

    

    Dr.
      Michael H. Eley, President & CEO

    BIO-PRODUCTS
      INTERNATIONAL, INC.

    3317
      Clifford Road, NW

    Huntsville,
      Alabama 35810 USA

    256-852-3139
      (phone)

    256-426-6992
      (cellular)

    256-824-6305
      (fax)

    mheley@msn.com
      (email)

    

    In
      the
      case of SRS Energy, Inc

    

    Edward
      P.
      Hennessey, President

    SRS
      Energy, Inc.

    7320
      Forsyth Blvd., Unit 102

    St.
      Louis, MO 63105

    314-727-6253
      (phone)

    314-504-7504
      cellular)

    314-721-3920
      (fax)

    ehennessseyjr@sbcglobal.net
      (email)

    

    Each
      Party shall make a reasonable, good faith effort to ensure that it will accept
      or receive notices to it that are given in accordance with this paragraph.
      A
      Party may change its address for purposes of this paragraph by giving the other
      Parties written notice of a new address in the manner set forth
      above.

    

    6.16     In
      the event either Party hereto shall be rendered wholly or partly unable to
      perform its obligations under this Agreement by reason of causes beyond its
      control, including but not limited to acts of Nature, acts of terrorism, acts,
      omissions, or regulation of any government or agency thereof, judicial action,
      labor disputes, or transportation failure, except as specified herein, the
      performance of the obligations of such Party insofar as it is affected by such
      condition shall be suspended for the duration of such condition, provided the
      Party affected advises the other Party of the basis of its inability within
      ten
      (10) days of the beginning of such known inability. After the cessation of
      the
      condition causing such inability, the Party suffering such inability shall
      have
      a period of thirty (30) days to restore its operation(s) and restore its
      obligations to the other Party.

    

    6.17     No
      representations have been made to any Party regarding taxes, it being understood
      by each of the Parties that each such Party accepts full responsibility for
      calculation of and payment of his or its taxes, levies, duties or other charges
      incurred or imposed as a consequence of this Agreement and the transactions
      described herein.

    

    6.18     This
      Agreement shall become effective when it has been executed by all of the Parties
      to this Agreement.

    

    IN
      WITNESS WHEREOF, the. Parties have caused their duly authorized
      representatives to duly execute and deliver this Agreement effective as of
      the
      date written above.

    

    

    
      	
              BIO-PRODUCTS
                INTERNATIONAL, INC.

            	
              SRS
                ENERGY, INC.

            
	 	 
	 	 
	
              By:

            	
              /s/
                Michael H. Eley

            	
              By:

            	
              /s/
                Edward P. Hennessey, Jr.

            
	 	
              Dr.
                Michael H. Eley, President & CEO

            	 	
              Edward
                P. Hennessey, Jr. President

            
	 	 
	
              Date:

            	
              /s/
                3-8-07

            	 	
              Date:

            	
              /s/
                3/8/07cleb-2083007ex105.htm

    Exhibit
      10.5

    

    

    

    

    

    
 

    

    

    

    

    

    

    CLIENT

    AGREEMENT

    FOR

    

    PROFESSIONAL
      SERVICES

    

    Between

    

    Merrick
      & Company

    

    and

    

    Alternative
      Ethanol Technologies, Inc.

    

    

    

    
 

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    

    

    

    Table
      of Contents

    

    
      	
              Article
                1

            	 	
              Merrick’s
                Services and Personnel

            	
              3

            
	 	 	 	 
	
              Article
                2

            	 	
              Compensation

            	
              4

            
	 	 	 	 
	
              Article
                3

            	 	
              Changes
                to Scope of Work, Suspension

            	
              4

            
	 	 	 	 
	
              Article
                4

            	 	
              Technical
                and Contractual Representatives

            	
              5

            
	 	 	 	 
	
              Article
                5

            	 	
              Client
                Responsibilities

            	
              5

            
	 	 	 	 
	
              Article
                6

            	 	
              Records,
                Audit and Documents

            	
              6

            
	 	 	 	 
	
              Article
                7

            	 	
              Conflict
                of Interest, No Contingent Fees

            	
              6

            
	 	 	 	 
	
              Article
                8

            	 	
              Confidential
                & Proprietary Information

            	
              7

            
	 	 	 	 
	
              Article
                9

            	 	
              Software
                Rights, Copyright, Patent, Trademark

            	
              7

            
	 	 	 	 
	
              Article
                10

            	 	
              Subcontracts

            	
              8

            
	 	 	 	 
	
              Article
                11

            	 	
              Indemnification
                & Risk Allocation

            	
              8

            
	 	 	 	 
	
              Article
                12

            	 	
              Insurance

            	
              9

            
	 	 	 	 
	
              Article
                13

            	 	
              Termination

            	
              9

            
	 	 	 	 
	
              Article
                14

            	 	
              Dispute
                Resolution

            	
              10

            
	 	 	 	 
	
              Article
                15

            	 	
              General

            	
              11

            
	 	 	 	 
	
              Article
                16

            	 	
              Incorporation
                of Attachments

            	
              13

            

    

    

    A
      -
      Statement of Services, Project Schedule, Deliverables & Additional
      Services

    

    B
      -
      Schedule of Payment

    

    C
–
      Additional Client Responsibilities

    

    D
      -
      Insurance

    

    
      
              

         

      

      
         

        
          

        

      

      
         

            

      

    

    Client
      Agreement for Professional Services

    

    This
      Client Agreement for Professional Services (“Agreement”) is
      made by and between Merrick & Company, a Colorado corporation
      (“Merrick”) and Alternative Ethanol Technologies Inc., a
      Delaware corporation (“Client”) and its permitted
      assigns.

    

    Client
      desires to obtain professional services for the “Project”
described on Attachment A and the parties wish to set forth
      the terms and
      conditions for performance of these services.

    

    NOW
      THEREFORE, for and in consideration of the mutual promises and covenants herein,
      and for other good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, the parties agree as follows:

    

    Article
      1 - Merrick’s Services and Personnel

    

    
      	
              1.1  

            	
              Merrick
                agrees to perform the services described in Attachment A
                (“Statement of Services, Project Schedule, Deliverables & Additional
                Services”).  Upon notification to proceed, Merrick
                shall promptly commence and diligently continue the services to completion
                in compliance with Attachment A, except as may be otherwise provided
                herein.

            

    

    

    
      	
              1.2  

            	
              Merrick’s
                services shall be performed in a manner consistent with the care
                and skill
                exercised by professionals practicing in the same locality and specialty
                under similar conditions subject to the time limits and financial
                and
                physical constraints imposed on Merrick’s services by
                Client.  There are no warranties, express or implied, including,
                without limitation and to the extent they may be applicable, the
                implied
                warranty of “merchantability” and “fitness for a particular purpose,”
                which extend beyond the description in this
                Agreement.

            

    

    

    
      	
              1.3  

            	
              Merrick
                shall follow and comply with federal, state and local government
                laws,
                rules, regulations, codes and ordinances.  Merrick shall be
                responsible for completeness and accuracy of its services and shall
                correct its errors or omissions at its own expense.  Should
                Client become aware of errors or omissions in the services or should
                Client otherwise become dissatisfied with the services, Client shall
                give
                prompt written notice to Merrick so that Merrick may take measures
                to
                minimize the consequences of such condition, and thereafter allow
                a
                reasonable time for correction by
                Merrick.

            

    

    

    
      	
              1.4  

            	
              Warranties
                for machinery, equipment, and the like procured or furnished by Merrick
                shall be limited to those provided by the suppliers or manufacturers
                and
                any purchase of such machinery, equipment and the like shall be part
                of a
                Client approved plan.

            

    

    

    
      	
              1.5  

            	
              Merrick
                shall promptly pay, when due, taxes, excises, license fees directly
                applicable and chargeable to the services it performs under this
                Agreement.  Merrick shall take out and keep current municipal,
                county, state or federal licenses required to perform the
                services.

            

    

    

    
      	
              1.6  

            	
              Client
                and Merrick agree to work together, and with other members of the
                project
                team, on the basis of trust, good faith and fair dealing, and shall
                take
                actions reasonably necessary to enable each other to perform this
                Agreement in a timely, efficient and economical manner.  Client
                shall endeavor to promote harmony and cooperation among Client, Merrick,
                and other members of the project
                team.

            

    

    

    Article
      2 - Compensation

    

    
      	
              2.1  

            	
              Client
                shall pay Merrick for its basic services as provided in Attachment
                B (“Schedule of Payment”).  If Client changes the scope
                of services or requests additional services which cause an increase
                or
                decrease in Merrick’s services, an equitable adjustment as agreed by the
                parties shall be made to Merrick’s compensation under Article 3 and this
                Agreement shall be modified in writing
                accordingly.

            

    

    

    Article
      3 - Changes to Scope of Work, Suspension

    

    
      	
              3.1  

            	
              A
                partial itemization of additional services available is set forth
                in
                Attachment C.  Client may request that Merrick perform these and
                other additional services or make changes to the scope of
                services.  Such changes or additions may include the work
                required to evaluate such a request.  Except where time is of
                the essence (in which case changes or additions may be authorized
                verbally
                and later confirmed in writing), Merrick and Client shall agree in
                writing
                to the exact nature of the change or addition prior to its
                implementation.  This writing, when signed by both parties,
                shall constitute an authorization for changes or additions and shall
                contain a description of the services, the commencement date and
                expected
                completion date for the services, and any special conditions applicable
                to
                the services.

            

    

    

    
      	
              3.2  

            	
              If
                Client’s changes or additions cause an increase or decrease in Merrick’s
                services, the parties shall in good faith attempt to reach a written
                agreement adjusting Merrick’s compensation in an equitable manner. 
                If such an equitable adjustment cannot be reached, Merrick shall
                perform
                such services on a time and material basis in accordance with Attachment
                B.  In this event, Merrick shall keep an accurate record of its
                services, supported by time sheets, invoices and other documentation
                reasonably requested by Client.  Merrick shall accurately
                substantiate costs in a clear and precise
                manner.

            

    

    

    
      	
              3.3  

            	
              Client
                may at any time, by written notice to Merrick, suspend further performance
                of the services by Merrick.  Upon receiving notice of
                suspension, Merrick shall promptly suspend performance of the services
                to
                the extent specified.  During the period of a suspension,
                Merrick shall care for and protect its services in
                progress.  For a period of ninety (90) days, consecutive or in
                the aggregate, Client may withdraw the suspension of performance
                of the
                services as to all or part of the suspended services by written notice
                to
                Merrick specifying the effective date and scope of
                withdrawal.  Merrick shall then resume performance of the
                services for which the suspension was
                withdrawn.

            

    

    

    
      	
              3.4  

            	
              So
                long as Client’s suspension of Merrick’s performance is not necessitated
                by Merrick’s performance or non-performance, an equitable adjustment shall
                be made to Merrick’s compensation under Attachment B and to any scheduling
                or deliverable dates justified by the suspension or withdrawal of
                suspension, and this Agreement shall be modified in writing
                accordingly.

            

    

    

    
      	
              3.5  

            	
              If
                Merrick disagrees with a request by Client for a noncompensible correction
                of defects or errors or omissions in the services, then in addition
                to or
                in lieu of the other provisions of this Agreement, Merrick may invoice
                Client for additional compensation in performing the services and
                the
                Dispute Resolution procedures of Article 14 shall apply to such invoiced
                amounts.

            

    

    

    Article
      4 - Technical and Contractual Representatives

    

    
      	
              4.1  

            	
              Authorized
                representatives of Client and Merrick
                are:

            

    

    

    
      	
              Client:

            	
              Merrick
                & Company:

            
	 	 
	
              Technical:  Ira
                Langenthal, PhD

            	
              Technical:  John
                Englick

            
	 	 
	
              Contractual:
                Edward Hennessey

            	
              Contractual:Carter
                E. Boardman

            

    

    

    
      	
              4.2  

            	
              Modifications
                or amendments required or permitted under this Agreement should be
                made by
                the Contractual Representatives, and technical directions and
                communications concerning the services should be made by the Technical
                Representatives.  Change of an authorized representative should
                be made in writing but may be effected by course of conduct without
                writing.

            

    

    

    Article
      5 - Client Responsibilities

    

    
      	
              5.1  

            	
              Client’s
                representatives as identified in Article 4 above shall have, respectively,
                authority to act for Client in all things pertaining to this Agreement
                including, without limitation, authority to make changes to the scope
                of
                services or request additional services or suspend services, authority
                to
                transmit instructions, receive information, interpret and define
                Client’s
                policies and decisions with respect to Merrick’s services, and to make
                decisions on Client’s behalf when requested to do so by
                Merrick.

            

    

    

    
      	
              5.2  

            	
              Client
                shall cooperate with Merrick in all aspects of the Project and shall
                provide information and criteria of Client’s requirements for the Project,
                including, if appropriate, objectives and constraints, space, capacity
                and
                performance requirements, flexibility and expendability, and any
                time or
                budgetary limitations. Each party shall have access to the project
                site,
                and Client shall furnish copies of specifications and standards,
                which it
                will require to be included in the services, and Merrick shall examine,
                and respond promptly to Client’s submissions. Client shall consult with
                Merrick on a regular basis concerning the timeliness, cost and adequacy
                of
                services during the phases of scheduled work and the work progress
                dates
                and promptly furnish to Merrick written notice of any noncompliance
                therewith.

            

    

    

    
      	
              5.3  

            	
              Merrick
                shall not be responsible for taking precautions for protection of
                the work
                or safety of the public through or around the Project operations
                and
                Merrick shall not be responsible for the means, methods, techniques,
                sequencing or procedures of the work of others unless such work is
                directed by or under the supervision of
                Merrick.

            

    

    

    Article
      6 - Records, Audit and Documents

    

    
      	
              6.1  

            	
              Merrick
                shall maintain records of performance under this Agreement and shall
                make
                these records available for inspection and for audit (if the payment
                provisions herein are of a type capable of audit) by Client at all
                reasonable times during the course of services and for a period of
                two (2)
                years after completion of services.  Audits shall be conducted
                in accordance with generally accepted auditing principles consistently
                applied.

            

    

    

    
      	
              6.2  

            	
              Subject
                to the provisions of Article 9, herein, all designs, drawings,
                calculations, specifications, and similar services provided by Merrick
                are
                instruments of service and Merrick retains common law, statutory,
                and
                other ownership rights therein, including the copyright thereto and
                the
                right of reuse by and at the discretion of Merrick, whether or not
                the
                Project is completed.  Submission of documents or other
                instruments prepared under this Agreement to any regulatory agency
                or
                others for use on the Project shall not be construed as publication
                to
                defeat Merrick’s rights herein.

            

    

    

    
      	
              6.3  

            	
              Unless
                specifically provided to the contrary in Attachment A, the instruments
                of
                Merrick’s service are not intended or represented to be suitable for reuse
                by Client or others on extensions of the Project or on any other
                project.  Any such reuse without the prior express written
                consent of Merrick, which consent shall not be unreasonably withheld,
                conditioned or delayed, shall be at Client’s sole risk and without
                liability or loss exposure to Merrick and Client shall indemnify,
                defend
                and hold Merrick harmless from any and all claims, damages, losses,
                liabilities and expenses, including attorney fees and expert and
                consulting fees, arising out of or resulting from such an unauthorized
                reuse.

            

    

    

    
      	
              6.4  

            	
              Client,
                its officers and its employees shall not use Merrick’s name, publish
                articles, give press releases, or make speeches about, or otherwise
                publicize in any way the results achieved or the services performed
                by
                Merrick under this Agreement, without first obtaining Merrick’s written
                consent, which consent shall not be unreasonably withheld, delayed
                or
                conditioned.

            

    

    

    Article
      7 - Conflict of Interest, No Contingent Fees

    

    
      	
              7.1  

            	
              Merrick
                represents it has no known direct or indirect interest, which would
                conflict with the performance of its services under this
                Agreement.

            

    

    

    
      	
              7.2  

            	
              Except
                as disclosed to Client in writing and except for the compensation
                to be
                paid hereunder, Merrick warrants it has not directly or indirectly
                paid or
                agreed to pay any person or company any fee, commission, contribution,
                donation, gift, or any other type of consideration to solicit or
                secure an
                award of this Agreement.

            

    

    

    Article
      8 - Confidential & Proprietary Information

    

    
      	
              8.1  

            	
              Merrick
                and Client, to the extent of their rights and abilities to do so,
                may
                exchange technical data and information reasonably required of each
                to
                perform this Agreement.  It is anticipated these exchanges will
                include technical methods, design details, techniques and pricing
                data of
                Merrick, together with trade secrets and other confidential and
                proprietary information of the parties which shall constitute
                “Confidential Information” when marked, or stamped or identified as
                such.

            

    

    

    
      	
              8.2  

            	
              Each
                party will treat as confidential all Confidential Information, which
                has
                been or may hereafter be made available to the other in connection
                with
                this Agreement.  Except as necessary for the Project, each party
                agrees that under no circumstance will it make use of or disclose
                Confidential Information to any third party or use Confidential
                Information to the detriment or competitive disadvantage of the other
                party.

            

    

    

    
      	
              8.3  

            	
              Each
                party agrees to limit disclosure of the Confidential Information
                to its
                officers, directors, employees and agents and then only to the extent
                reasonably necessary to effectuate the purposes of the
                Project.  The party receiving Confidential Information shall
                take diligent precautions to insure that those persons to whom disclosures
                are made keep the Confidential Information
                confidential.

            

    

    

    
      	
              8.4  

            	
              These
                restrictions shall not apply to the extent Confidential Information
                was in
                the public domain at the time of the disclosure or subsequently becomes
                a
                part of the public domain through no fault of the party receiving
                the
                Confidential Information; was known to the receiving party at the
                time of
                the disclosure; was readily ascertainable from public or trade sources
                at
                the time of its disclosure; was independently developed by the receiving
                party without recourse to any Confidential Information provided under
                this
                Agreement; or is the subject of demand by subpoena, court or governmental
                order or other similar mandatory legal process in which case the
                party
                against whom the demand or request is made shall forthwith give written
                notice to the other to preserve the opportunity to resist and/or
                respond
                to such process.

            

    

    

    
      	
              8.5  

            	
              The
                covenants of this Article shall survive expiration or termination
                of this
                Agreement and shall apply for a period of two (2) years
                thereafter.  In addition to and without prejudice to its other
                rights and remedies, a party shall be entitled to injunctive relief
                upon
                proof of a breach or threatened breach of this
                Article.

            

    

    

    
      
             

         

      

      
         

        
          

        

      

      
         

           

      

    

    Article
      9 - Software Rights, Copyright, Patent and Trademark

    

    
      	
              9.1

            	
              Ownership
                and Nondisclosure of Confidential Information.  All
                Confidential Information is the sole property of Client, Client’s assigns,
                and Client’s customers, as the case may be, and Client, Client’s assigns
                and Client’s customers, as the case may be, shall be the sole and
                exclusive owner of all patents, copyrights, mask works, trade secrets
                and
                other rights in Client’s Confidential Information.  Merrick
                hereby does and will assign to Client all rights, title and interest
                it
                may have or acquire in Client’s Confidential
                Information.

            

    

    

    
      	
              9.2

            	
              Ownership
                and Return of Materials.  All materials (including, without
                limitation, documents, drawings, models, apparatus, sketches, designs,
                lists, and all other tangible media of expression) furnished to Merrick
                by
                Client shall remain the property of Client.  Upon termination of
                Merrick’s engagement, or at any time on the request of Client before the
                termination of such engagement, Merrick will promptly (but no later
                than
                five (5) days after the earlier of the termination of Merrick’s engagement
                or Client’s request) destroy or deliver to Client, at Client’s option,
                (a) all materials furnished to Merrick by Client, (b) all
                tangible media of expression which are in Merrick’s possession and which
                incorporate any Confidential Information or otherwise relate to Client’s
                business, and (c) written certification of Merrick’s compliance with
                its obligations under this
                sentence.

            

    

    

    
      	
              9.3

            	
              Innovations.  As
                used in this Agreement, the term “Innovations” means all processes,
                machines, manufactures, compositions of matter, improvements, inventions
                (whether or not protectable under patent laws), works of authorship,
                information fixed in any tangible medium of expression (whether or
                not
                protectable under copyright laws), moral rights, mask works, trademarks,
                trade names, trade dress, trade secrets, know-how, ideas (whether
                or not
                protectable under trade secret laws), and all other subject matter
                protectable under patent, copyrights, moral right, mask work, trademark,
                trade secret or other laws, and includes without limitation all new
                or
                useful art, combinations, discoveries, formulae, manufacturing techniques,
                technical developments, discoveries, artwork, software, source code
                and
                designs including “Inventions,” which is defined to mean any inventions
                protected under patent laws.

            

    

    

    
      	
              9.4

            	
              Assignment
                of Innovations;  Merrick hereby agrees promptly to disclose
                and describe to Client, and hereby does and will assign to Client
                or
                Client’s designee its entire right, title, and interest in and to, each
                of
                the Innovations (including Inventions), and any associated intellectual
                property rights, which Merrick may solely or jointly conceive, reduce
                to
                practice, create, derive, develop or make during Merrick’s engagement
                (collectively, the “Client Innovations”).  To the extent any of
                the rights, title and interest in and to Client Innovations cannot
                be
                assigned by Merrick to Client, Merrick hereby grants to Client an
                exclusive, royalty-free, transferable, irrevocable, worldwide license
                (with rights to sublicense through multiple tiers of sublicensees)
                to
                practice such non-assignable rights, title and interest.  To the
                extent any of the rights, title and interest in and to Client Innovations
                can be neither assigned nor licensed by Merrick to Client, Merrick
                hereby
                irrevocably waives and agrees never to assert such non-assignable
                and
                non-licensable rights, title and interest against Client or any of
                Client’s successors in interest to such non-assignable and non-licensable
                rights.

            

    

    

    
      	
              9.5

            	
              Future
                Innovations.  Merrick recognizes that Client Innovations or
                Confidential Information relating to Merrick’s activities under this
                Agreement while engaged by Client and conceived, reduced to practice,
                created, derived, developed, or made by Merrick, alone or with others,
                within two (2) years after termination of Merrick’s engagement may have
                been conceived, reduced to practice, created derived, developed,
                or made,
                as applicable, in significant part while performing services for
                Client.  Accordingly, Merrick agrees that such Innovations and
                Confidential Information shall be presumed to have been conceived,
                reduced
                to practice, created, derived, developed, or made, as applicable,
                during
                Merrick’s engagement and are to be promptly assigned to Client unless and
                until Merrick has established the contrary by written evidence satisfying
                the applicable standard of proof.

            

    

    

    9.6           Cooperation
      in Perfecting Rights to Proprietary Information and
      Innovations.

    

    Merrick
      agrees to perform, during and after its engagement, all acts deemed necessary
      or
      desirable by Client to permit and assist Client, at Client’s expense, in
      obtaining and enforcing the full benefits, enjoyment, rights and title
      throughout the world in the Proprietary Information and Innovations assigned
      or
      licensed to, or whose rights are irrevocably waived and shall not be asserted
      against Client under this Agreement.  Such acts may include, but are
      not limited to, execution of documents and assistance or cooperation (i) in
      the filing, prosecution, registration, and memorialization of assignment of
      any
      applicable patents, copyrights, mask work, or other applications, (ii) in
      the enforcement of any applicable patents, copyrights, mask work, moral rights,
      trade secrets, or other proprietary rights, and (iii) in other legal
      proceedings related to the Proprietary Information or Innovations.

    

    Notwithstanding
      any other provision in this Agreement to the contrary, including any other
      provision with the same or similar limiting language, nothing in this Agreement
      shall be construed to prohibit Merrick from offering and performing its standard
      services, either before or after this engagement with Client.  Unless
      as provided to the contrary in this Agreement, Merrick shall retain ownership
      of
      and proprietary rights to any software programs or data be used by Merrick
      under
      this Agreement.  Merrick retains the right to use, sell, and/or modify
      any databases developed and/or modified in performing its services
      hereunder.

    

    
      	
              9.7

            	
              At
                Merrick’s expense, Merrick shall indemnify and hold Client harmless and
                shall defend any suits brought against Client based on a claim that
                the
                use of any design, process, apparatus, or any part, methodology,
                software,
                publication, or other proprietary right (“Proprietary Property”) furnished
                by Merrick under this Agreement constitutes an infringement of any
                patent,
                trademark, or copyright of the United States; provided that Merrick
                is
                notified promptly in writing by Client of such a claim or contention
                and
                given the authority, information, and assistance for the defense
                (at
                Merrick’s expense) thereof.

            

    

    
      	
              9.8

            	
              Notwithstanding
                the foregoing, Merrick shall not be liable to Client for claims under
                this
                Article resulting from the use of Proprietary Property that is directed
                for use by Client or by another on Client’s behalf, or that is not
                developed or proposed by Merrick.

            

    

    

    Article
      10 - Subcontracts

    

    
      	
              10.1  

            	
              Except
                as provided in the Attachments, Merrick shall not subcontract any
                part of
                its services under this Agreement without first providing written
                notice
                to Client.  Merrick shall obligate each subcontractor of every
                tier to consent to compliance with all applicable provisions of this
                Agreement. Nothing contained
                in any subcontract of any tier shall create a contractual relationship
                between Client and any such
                subcontractor.

            

    

    

    Article
      11 - Indemnification & Risk Allocation

    

    
      	
              11.1  

            	
              Merrick
                agrees to indemnify and save Client harmless from any liability,
                loss,
                cost, or expense, including attorney fees, claimed by third parties
                for
                property damage or bodily injury, including death, caused by the
                negligence of Merrick in connection with Merrick’s professional
                services.  Client agrees to indemnify and save Merrick harmless
                from any liability, loss, cost, or expense, including attorney fees,
                claimed by third parties for property damage or bodily injury, including
                death, caused by the negligence of Client in connection with the
                operations of Client.  If the negligence of both Merrick and
                Client is the cause of such damage or injury, the liability, loss,
                cost,
                or expense shall be shared between Merrick and Client in proportion
                to
                their relative degrees of negligence and the right of indemnity shall
                apply for such proportion.

            

    

    

    
      	
              11.2  

            	
              It
                is intended by the parties to this Agreement that performance of
                Merrick’s
                services shall not subject Merrick’s personnel, including its employees,
                officers, directors, or shareholders, to any personal legal exposure
                for
                any risk associated with the Project.  Client agrees that any
                claim, demand or suit shall be made only against Merrick & Company, a
                Colorado corporation, and not against any of Merrick’s
                personnel.

            

    

    

    
      	
              11.3  

            	
              Client
                and Merrick agree that notwithstanding any other provision in this
                Agreement to the contrary (including any other provision with the
                same or
                similar limiting language), Merrick’s maximum liability to Client, in the
                aggregate, for claims, liabilities, losses, or damages of any nature
                arising out of or resulting from this Agreement (including, without
                limitation, indemnity obligations, contract damages, attorney’s fees and
                expert-witness fees), arising from any cause(s) and regardless of
                the
                legal theory asserted (including, without limitation, negligence,
                indemnity, breach of contract or warranty, strict liability, or tort),
                shall in no event exceed  the greater of (a) $50,000, or
                (b)  the total compensation received by Merrick for services
                rendered under this Agreement (or if separate task orders are issued
                for
                each project, then the total compensation received by Merrick for
                services
                under the applicable task order).  Client and Merrick agree that
                this Article 11.3 shall not apply in the event of Merrick’s breach of
                Articles 7, 8 or 9 of this Agreement or in the event of Merrick’s reckless
                or intentional misconduct.

            

    

    

    
      	
              11.4  

            	
              Notwithstanding
                any other provision in this Agreement to the contrary (including
                any other
                provision with the same or similar limiting language), Client and
                Merrick
                waive claims against each other for incidental, special, indirect
                or
                consequential damages arising out of or relating to this Agreement,
                and
                Merrick shall not be liable for any cost or expense that provides
                betterment, upgrade or enhancement of the
                Project.

            

    

    

    
      	
              11.5  

            	
              The
                provisions of this Article apply to all services provided to Client
                by
                Merrick, whether within or not within the scope of services of this
                Agreement, except as the parties may otherwise provide in a signed
                writing
                making specific reference to this
                Article.

            

    

    

    
      	
              11.6  

            	
              The
                provisions of this Article shall survive expiration or termination
                of this
                Agreement.

            

    

    

    Article
      12 - Insurance

    

    
      	
              12.1  

            	
              Merrick
                shall maintain during the term of this Agreement and, if Client is
                not in
                material default hereunder for which Merrick provided written notice
                to
                Client and which material default Client failed to cure within a
                reasonable time, for a period of two (2) years after Merrick’s services,
                insurance of the kinds and with the limits not less than the amounts
                set
                forth in Attachment D
                (Schedule of
                Insurance).

            

    

    

    Article
      13 - Termination

    

    
      	
              13.1  

            	
              Subject
                to the other provisions of this Agreement, this Agreement may be
                terminated in whole or in part in writing by either party in the
                event of
                a substantial failure by the other party to fulfill its obligations
                under
                this Agreement.  No such termination shall be effective until
                the other party is given not less than ten (10) working days written
                notice of intent to terminate and an opportunity for consultation
                with the
                terminating party prior to
                termination.

            

    

    

    
      	
              13.2  

            	
              This
                Agreement may be terminated in whole or in part in writing by Client
                for
                its convenience.  No such termination shall be effective until
                Merrick is given not less than ten (10) working days written notice
                of
                intent to terminate and an opportunity for consultation with Client
                prior
                to termination.

            

    

    

    
      	
              13.3  

            	
              Upon
                receipt of a notice of termination, Merrick shall promptly discontinue
                all
                services affected (unless the notice directs otherwise).  If
                Client is not in material breach of this Agreement following Client’s
                reasonable opportunity to cure any alleged breach, Merrick shall
                deliver
                or otherwise make available to Client all finished services; provided,
                however, Merrick shall not be responsible for the accuracy, completeness
                or workability of documents prepared by Merrick to the extent changed
                or
                completed by Client or by another
                party.

            

    

    

    
      	
              13.4  

            	
              Subject
                to the provisions of Article 2, Merrick shall be paid for its costs
                and
                services performed through the effective date of termination, less
                allowances for negligent services, which must be corrected.  If
                this Agreement is terminated for Client’s convenience, in addition to
                payment for costs and services performed through the effective date
                of
                termination, Client shall pay Merrick as a termination expense five
                (5)
                percent of the total amount invoiced, or to be invoiced by Merrick
                through
                the effective date of termination.  Merrick’s final invoice to
                Client, which may be submitted after the effective date of termination,
                shall calculate such sum.

            

    

    

    Article
      14 - Dispute Resolution

    

    
      	
              14.1  

            	
              If
                a claim or controversy between Client and Merrick is not resolved
                by the
                designated representatives of the parties, the chief executive officers
                of
                Merrick and Client, or a senior member of management with authority
                to
                negotiate and execute a binding settlement, shall meet within 30
                days
                thereafter to review and discuss such claim or controversy and attempt,
                in
                good faith, to settle or resolve the matter.  If a claim for
                professional negligence is involved, the certification identified
                below
                shall be included as a part of the review and
                discussion.

            

    

    

    
      	
              14.2  

            	
              Any
                dispute, controversy, or claim arising out of or relating to this
                Agreement, or the breach, termination, or invalidity thereof (whether
                in
                tort, contract, statute or otherwise), shall be resolved by binding
                arbitration by a single mutually agreed upon arbitrator in accordance
                with
                the Commercial Arbitration Rules of the American Arbitration Association
                (“AAA”) then in effect.  If the parties are unable to agree on a
                single arbitrator the arbitration shall be conducted by a panel of
                three
                (3) arbitrators with Client and Merrick each selecting one (1) arbitrator
                and the two (2) arbitrators selecting a third arbitrator.  If
                the two arbitrators are unable to agree on a third arbitrator, the
                appointing authority shall be the AAA.  The arbitrators selected
                by Merrick and Client shall each be skilled in the engineering,
                procurement and construction business as a consumer, provider, or
                consultant for such services, and the third arbitrator shall be an
                attorney familiar with civil litigation.  The rules of evidence,
                discovery and privilege applicable under the United States Federal
                Rules
                of Civil Procedure and Federal Rules of Evidence shall
                apply.  The decision of the arbitrators shall be rendered in
                writing and may include injunctive relief including specific
                performance.  If a party disagrees with the decision of the
                arbitrators, within fifteen (15) days after such written decision
                is
                rendered that the party may request a rehearing before the same
                arbitrators.  Such rehearing shall be granted as a matter of
                right, but shall not last more than two (2) hours unless extended
                by the
                arbitrators.  The arbitrators may, in their discretion, modify
                their decision, or grant a new
                hearing.

            

    

    

    
      	
              14.3  

            	
              The
                arbitration may be conducted even if the arbitration body does not
                have
                jurisdiction over a necessary party (other than a party to this
                Agreement).  The location of any arbitration shall be Denver,
                Colorado or such other location mutually agreed upon by the
                parties.  An award of the arbitrator(s) may be entered in any
                court of competent jurisdiction.

            

    

    

    
      	
              14.4  

            	
              If
                a party seeks temporary injunctive relief, it may apply to a court
                of
                competent jurisdiction for such relief notwithstanding this arbitration
                provision, but such injunctive relief shall be terminated by the
                arbitration order if not sooner terminated by the court ordering
                such
                relief.

            

    

    

    
      	
              14.5  

            	
              Client
                shall make no direct or indirect claim for professional negligence
                against
                Merrick unless Client has first complied with the provisions above
                and
                provided Merrick with a written certification executed by an independent,
                licensed professional, currently practicing in the field(s) of work
                called
                for under this Agreement.  This certification shall (1) contain
                the name and license number of the certifier; (2) to the extent known
                without further investigation, specify each act or omission the certifier
                contends was a violation of the standard of care set forth in Section
                1.2,
                and (3) to the extent known without further investigation, detail
                the
                basis for the certifier’s opinion that each such act or omission
                constitutes such a violation.

            

    

    

    
      	
              14.6  

            	
              The
                certificate shall be provided to Merrick at least thirty (30) calendar
                days prior to the assertion of any claim in an arbitration, judicial,
                or
                other alternative dispute resolution proceeding and compliance with
                the
                provisions of this Article 14 shall be a condition precedent to such
                a
                proceeding.

            

    

    

    Article
      15 - General

    

    
      	
              15.1  

            	
              Governing
                Law & Costs.  This Agreement shall be governed by
                the laws of the State of Colorado without reference to conflict of
                law
                principles, if any.  In the event of an action to enforce the
                terms and conditions of this Agreement or of any of the rights or
                obligations arising from this Agreement, the prevailing party shall
                be
                entitled to an award of the costs of such action, including reasonable
                attorney fees and expert witness and consulting
                fees.

            

    

    

    
      	
              15.2  

            	
              Entire
                Agreement, Amendments.  This Agreement sets forth the
                entire agreement of the parties, supercedes all prior negotiations
                and
                understandings, and shall govern any services by Merrick on the Project
                prior to execution of this Agreement.  Except as otherwise
                expressly provided
                in this Agreement, this Agreement may be modified or amended only
                upon the
                signed written agreement of both parties.  Merrick shall not be
                required to execute any documents subsequent to the signing of this
                Agreement that increase Merrick’s contractual or legal obligations or
                risks, or jeopardize the availability of or increase the cost of
                its
                professional or general liability insurance, and Client shall make
                no
                request of Merrick that would be contrary to Merrick’s professional
                responsibilities to the public.  Merrick and Client have each
                read and fully understand the terms of this Agreement, each has had
                the
                opportunity to have it reviewed by counsel, and this Agreement shall
                not
                be construed against either party in the event of an
                ambiguity.

            

    

    

    
      	
              15.3  

            	
              Severability.  If
                any provision of this Agreement is held to be invalid or unenforceable
                by
                a court or other authority with like jurisdiction, the remainder
                of this
                Agreement shall be unaffected and enforceable, and there shall be
                deemed
                substituted for the affected provision(s) a valid and enforceable
                provision(s) as similar as possible to the affected
                provision(s).

            

    

    

    
      	
              15.4  

            	
              Assignment.  This
                Agreement is for personal services and neither party may assign its
                rights
                nor delegate the performance of its duties hereunder without the
                prior
                written approval of the other, which approval shall not be unreasonably
                withheld, delayed or conditioned.  Any assignment,
                voluntary or involuntary, in violation of the foregoing shall be
                voidable. This Agreement is not intended to benefit
                any third party.  Notwithstanding the foregoing, Client may
                assign this Agreement, without the consent of Merrick, to any of
                Client’s
                affiliates or subsidiaries.

            

    

    

    
      	
              15.5  

            	
              Successors
                and Approved Assigns.  This Agreement shall inure to
                the benefit of and shall be binding upon the parties and their respective
                legal representatives, successors, and approved
                assigns.

            

    

    

    
      	
              15.6  

            	
              Non-Waiver.  No
                delay or failure by either party to exercise any right under this
                Agreement, and no partial or single exercise of that right shall
                constitute a waiver of that or any other
                right.

            

    

    

    
      	
              15.7  

            	
              Independent
                Contractor.  Merrick shall perform its services as an
                independent contractor and not as an agent, employee, fiduciary,
                representative, joint venturer or partner of
                Client.

            

    

    

    
      	
              15.8  

            	
              Force
                Majeure.  Merrick shall not be in default of its
                obligations if performance is prevented or delayed by an existing
                or
                future force majeure condition including, without limitation, act
                of government, act of God, act of Client or Client’s contractor, strike,
                insurrection, embargo, fire, flood, earthquake, explosion, riot,
                war,
                rebellion, sabotage, epidemic, weather disruptions or natural disasters
                or
                any other cause beyond the reasonable control of a party to this
                Agreement.

            

    

    

    
      	
              15.9  

            	
              Notices.  Notice
                required or permitted hereunder shall be in writing and delivered
                in a
                manner most efficient under the circumstances.  Subject to the
                foregoing and unless otherwise specifically provided, notice shall
                be
                given by (1) hand delivery, (2) facsimile, or (3) certified mail
                (postage
                prepaid & return receipt requested), delivered as
                follows:

            

    

    

    
      	
              Merrick:

            	
              Merrick
                & Company

              2450
                S. Peoria Street

              Aurora,
                Colorado 80014

              Attn:
                John Englick

              Telephone
                No.: (303) 751-0741

              Facsimile
                No.: (303) 751-2581

              Email:
                john.englick@merrick.com

            

    

    

    
      
            

         

      

      
         

        
          

        

      

      
         

         

      

    

    

    
      	
              Client:

            	
              Alternative
                Ethanol Technologies, Inc.

              7320
                Forsyth Boulevard

              St.
                Louis, Missouri 63105

              Attn:
                Edward Hennessey, President

              Telephone
                No.:  (314) 727-6253

              Facsimile
                No.:  (314) 721-3920

              Email:  ehennesseyjr@sbcglobal.net

            

    

    

    
      	
              With
                a copy to:

            	
              Sauerwein,
                Simon, Blanchard & Kime, PC

              147
                N. Meramec, Suite 200

              St.
                Louis, Missouri 63105

              Attn:  Paul
                Simon, Jr.

              Telephone
                No.:  (314) 863-9100

              Facsimile
                No.:  (314) 863-9101

              Email:  pas@sauerwein.com

            

    

    

    or
      at
      such other address as a party hereto may designate by written
      notice.  Notice shall be deemed effective on the date of delivery if
      hand delivered or faxed (to be an effective notice by fax, there must be a
      written confirmation of the date and time of the transmission, generated
      contemporaneously by the transmission device in the ordinary course), or on
      the
      third day after mailing if sent by certified mail.

    

    
      	
              15.10  

            	
              Headings.  The
                captions and headings of this Agreement are for convenience and reference
                only, and shall not affect the construction or interpretation of
                any of
                its provisions.

            

    

    

    
      	
              15.11  

            	
              Pronouns
                & Terms.  In this Agreement the singular shall
                include the plural, the plural the singular, and the use of any gender
                shall be applicable to all genders.

            

    

    

    
      	
              15.12  

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

            

    

    

    Article
      16 - Incorporation of Attachments

    

    The
      following Attachments are incorporated into and made a part of this
      Agreement:

    

    A
      - Statement of Services, Project Schedule, Deliverables & Additional
      Services

    B
      - Schedule of Payment

    C
      – Additional Client Responsibilities

    D
      – Insurance

    

    

    SINGNATURE
      PAGE TO FOLLOW

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

      IN
      WITNESS
      WHEREOF, the parties execute this Agreement on the date last written
      below.

    

    
      	
              Alternative
                Ethanol Technologies, Inc.

              A
                Delaware corporation

            	
              Merrick
                & Company, a

              Colorado
                corporation

            
	 	 
	 	 	 	 
	
              Signature

            	
              Signature

            
	 	 
	 	 	 	 
	
              Name

            	
              Name

            
	 	 
	 	 	 	 
	
              Title

            	
              Title

            
	 	 
	 	 	 	 
	
              Date

            	
              Date

            

    

    

    

    

    
      
          

         

      

      
         

        
          

        

      

      
         

          

      

    

    Attachment
      A

    

    Statement
      of Services, Project Schedule, Deliverables, & Additional
      Services

    

    A.1                                                                           Statement
      of
      Services

    

    In
      accordance with the provisions of Article 1, Merrick agrees to perform the
      services described below (describe services in detail, services not described
      are not included in the scope of services and will not be implied by course
      of
      conduct or custom in the industry, or otherwise).

    

    Merrick
      to create a Program Management Plan (PMP) for the development of a pilot
      facility sized to obtain sufficient design basis information to verify the
      commercial viability of the technology and to mitigate the risk on the first
      commercial plant.  The PMP will also include a framework of the tasks
      necessary to implement the technology on a commercial scale.  A more
      detailed statement of services is contained in Merrick’s June 5, 2007 letter
      attached hereto and incorporated herein by reference.

    

    A.2                                                                                 Project
      Schedule

    

    The
      PMP
      will be delivered on or before eight (8) weeks from the date of Notice to
      Proceed from your firm.

    

    A.3                                                                                      Deliverables

    

    These
      items contemplated in the Statement of Services, including but not limited
      to,
      single PMP per the terms of the referenced proposal letter, dated June 5,
      2007.  Single Process Flow Diagram and or a single P&ID as the
      design basis document to support pilot plant estimate basis.

    

    A.4                                                                              Additional
      Services

    

    The
      following services, and any other services not specifically described in
      Statement of Services, are not included in Merrick’s basic
      services.  An undertaking for Additional Services shall not be
      presumed by course of conduct or custom in the industry.  Additional
      Services may be provided if authorized by Client in
      writing.  Additional Services shall be paid by Client as provided in
      the Agreement, in addition to the compensation for Merrick’s basic
      services.

    

    A.4.1.
      Providing financial feasibility or other special studies not otherwise
      contemplated by Sections A1, A2 and A3 of this Attachment A.

    

    A.4.2.
      Providing planning surveys, site evaluations, environmental studies or
      comparative studies of prospective sites, and preparing special surveys, studies
      and submissions required for approval of governmental authorities or others
      having jurisdiction over the Project.

    

    A.4.3.  Providing
      services relative to future facilities, systems and equipment, which are not
      intended to be constructed during the Construction Phase.

    

    A.4.4.  Preparing
      documents of alternate, separate or sequential bids or extra services in
      connection with bidding, negotiation or construction prior to the completion
      of
      the Construction Documents Phase, when requested by Client.

    

    A.4.5.  Providing
      coordination of Work performed by separate contractors or by Client’s own
      forces.

    

    A.4.6.  Providing
      services in connection with the work of a construction manager or separate
      consultants retained by Client except as provided elsewhere in this
      agreement.

    

    A.4.7.  Providing
      Detailed Estimates of Construction Cost, analyses of owning and operating costs,
      or detailed quantity surveys or inventories of materials, equipment and
      labor.

    

    A.4.8.  Providing
      interior design and other similar services required for or in connection with
      the selection, procurement or installation of furniture, furnishings and related
      equipment other than permanently installed laboratory case work and equipment,
      if beyond the scope of this Project.

    

    A.4.9.  Making
      revisions in Drawings, Specifications or other documents when such revisions
      are
      inconsistent with written approvals or instructions previously given, are
      required by the enactment or revision of codes laws or regulations subsequent
      to
      the preparation of such documents or are due to other causes not solely within
      the control of Merrick.

    

    A.4.10.  Preparing
      as-built drawings, or preparing drawings, specifications and supporting data
      and
      providing other services in connection with Change Orders to the extent that
      the
      adjustment in the basic Compensation resulting from the adjusted Construction
      Cost is not commensurate with the services required of Merrick, provided such
      Change Orders are required by causes not solely within the control of
      Merrick.

    

    A.4.11.  Making
      investigations, surveys, valuations, inventories or detailed appraisals of
      existing facilities, and services required in connection with construction
      performed by Client or others.

    

    A.4.12.  Providing
      consultation concerning replacement of any Work damaged by fire or other cause
      during construction, and furnishing services as may be required in connection
      with the replacement of such Work.

    

    A.4.13.  Providing
      services made necessary by the default of the Contractor or others, or by major
      defects or deficiencies in the Work of the Contractor or others, or by failure
      of performance of either the Client or Prime Contractor under the Contract
      for
      Construction.

    

    A.4.14.  Preparing
      a set of reproducible record drawings showing significant changes in the Work
      made during construction based on marked-up prints, drawings and other data
      furnished to Merrick.

    

    A.4.15.  Providing
      extensive assistance in the utilization of any equipment or system such as
      initial start-up or testing, adjusting and balancing, preparation of operation
      and maintenance manuals, training personnel for operation and maintenance,
      and
      consultation during operation.

    

    A.4.16.  Providing
      services after issuance to the Client of the final Certificate of
      Occupancy.

    

    A.4.17.  Preparing
      to serve or serving as an expert witness in connection with any public hearing,
      arbitration proceeding or legal proceeding.

    

    A.4.18.  Providing
      services of consultants for other than the normal architectural, structural,
      mechanical and electrical engineering services of the Project.

    

    A.4.19.  Providing
      any other services not otherwise specifically included in this
      Agreement.

    

    A.4.20  laims
      arbiter service, including  interpretation and decisions on matters
      concerning performance of Client and any contractor.

    

    A.5                                        Provisions
      Applicable
      to all Services

    

    A.5.1.                      When
      it is within its scope to make written responses to requests from a contractor
      for clarification and interpretation of the requirements of the contract
      documents (“RFI”), Merrick shall provide written responses to such RFI’s with
      reasonable promptness.  If an RFI seeks information readily apparent
      from reasonable observation of field conditions or a review of the contract
      documents (or reasonably inferable therefrom), Merrick shall be entitled to
      additional compensation under Article 3 for the time spent in responding to
      such
      an RFI.

    

    A.5.2.                      When
      it is within its scope to review and approve or take other appropriate action
      on
      the contractor submittals, such as shop drawings, product data, samples and
      other data, which a contractor is required to submit, Merrick shall do so but
      only for the limited purpose of checking for conformance with the design concept
      and the information shown in the construction documents.  This review
      shall not include review of the accuracy or completeness of details, such as
      quantities, dimensions, weights or gauges, fabrication processes, construction
      means or methods, coordination of the work with other trades or construction
      safety precautions, all of which are the sole responsibility of the
      contractor.  Review of a specific item shall not indicate that Merrick
      has reviewed the entire assembly of which the item is a
      component.  Merrick shall not be responsible for any deviations from
      the construction documents not brought to the attention of Merrick in writing
      by
      the contractor.  Merrick shall not be required to review partial
      submissions or those for which submissions of correlated items have not been
      received.

    

    A.5.3.                      Merrick
      shall have the authority to reject any work that is not, in the judgment of
      Merrick, in conformance with the construction documents or work
      plans.  Neither this authority nor Merrick’s good-faith judgment to
      reject or not reject any work shall subject Merrick to any liability or cause
      of
      action to the contractor, subcontractor or any other suppliers or persons
      performing work on the project.

    

    A.5.4.                      Merrick
      shall be under no duty or obligation to execute any instruments, no matter
      by
      whom requested, that would result in Merrick having to certify, guarantee or
      warrant the existence or nonexistence of conditions that Merrick cannot
      ascertain, or that were not within the scope of services.

    

    A.5.5.                      Unless
      the scope of services in Attachment A includes an undertaking by Merrick to
      confirm the accuracy of plans, drawings, specifications, criteria, maps, surveys
      or other documents or information (“Data”) furnished by Client or others,
      Merrick shall be entitled to rely upon as accurate and correct Data furnished
      by
      Client or others.  If subsequent errors are discovered in Data
      furnished by Client or others, which necessitate reperformance of services,
      Merrick shall be compensated for such extra services in accordance with Article
      3.  Merrick shall not be liable for errors or omissions in Data
      furnished by Client or others.

    

    A.5.6.                      Since
      Merrick has no control over such things as the cost or availability of labor,
      materials, equipment or services furnished by others, nor over any contractors’
method of determining prices, nor over competitive bidding or market conditions,
      any cost estimate provided for under this Agreement or otherwise made by Merrick
      shall be on the basis of Merrick’s professional experience and judgment; but
      Merrick cannot and does not guarantee or warrant that the bids or negotiated
      costs will not vary from estimates prepared by Merrick.  If Client
      wishes greater assurance as to cost estimates, Client shall employ an
      independent cost estimator.

    

    A.5.7.                      Extra
      services by Merrick to modify its services or deliverables to meet any Client
      imposed cost limitation shall entitle Merrick to additional compensation in
      accordance with Article 3.

    

    A.5.8.                      Design
      review, construction observation, or quality assurance services performed by
      Merrick shall not guarantee the performance of and Merrick shall not have
      responsibility or liability for damages arising from the acts or omissions
      of
      any contractor, subcontractor, supplier or any other entity or person furnishing
      materials or performing any work on the Project.

    

    A.5.9.                      In
      the event Merrick or any other party encounters hazardous materials at the
      jobsite, or should it become known in any way that hazardous materials may
      be
      present at the jobsite or any adjacent areas that may affect the performance
      of
      Merrick’s services, Merrick may, at its option and without liability for
      consequential or any other damages, suspend performance of its services until
      Client retains an appropriate specialist to identify, abate and/or remove the
      hazardous materials, and warrant that the jobsite is in compliance with
      applicable laws and regulations.  Since Merrick’s scope of services
      does not include services related to the presence of hazardous materials,
      hazardous materials encountered in the performance of Merrick’s services shall
      be the responsibility of Client, and Client waives all claims and causes of
      action against Merrick in connection with hazardous materials.  As
      used in this Agreement, “hazardous materials” means any substances (including
      but not limited to asbestos), toxic or hazardous waste, PCB’s, combustible gases
      and materials, petroleum or radioactive materials (as the phrase hazardous
      materials and each of these is defined in applicable federal statutes) or any
      other substances under any conditions and in such quantities as would pose
      a
      substantial danger to persons or damage to property exposed to such
      substances.

    

    A.5.10                      The
      following applies in the event Merrick provides electronic files to
      Client.  Any modification to or interpretation of the electronic files
      should be undertaken only by a qualified professional.  Merrick makes
      no representation as to the compatibility of any electronic files with client’s
      hardware or software.  Merrick will remove all indicia of its
      involvement with the electronic files, and any modification or interpretation
      will be at Client’s sole risk and without liability or legal exposure to
      Merrick.  The electronic files are instruments of
      service.  Under no circumstances shall delivery of the electronic
      files for use by Client be deemed a sale by Merrick, and Merrick makes no
      warranties, either express or implied, of merchantability or fitness for any
      particular purpose, and in no event shall Merrick be liable for any damages,
      including incidental, special, indirect or consequential damages as a result
      of
      Client’s modification of these electronic files.

    

    A.5.11                      When
      a certification by Merrick is within the scope of its services, such
      certification shall mean an expression of Merrick’s professional opinion to the
      best of its information, knowledge and belief, and shall not constitute a
      warranty or guarantee by Merrick.

    

    A.5.12                      Since
      the Americans with Disabilities Act contains general provisions subject to
      differing interpretations on a case-by-case basis, services in connection
      therewith shall be on the basis of Merrick’s professional experience and
      judgment but Merrick cannot and does not guarantee or warrant its services
      will
      be in compliance therewith.

    
      
          

         

      

      
         

        
          

        

      

      
         

              

      

    

    

    Attachment
      B

    

    Schedule
      of Payment

    

    B.2.                                              Payment
      Provisions

    

    Payment
      for services rendered shall be in accordance with the attached rate
      sheet.

    

    B.2.                                       Provisions
      Applicable to
      all forms of Payment

    

    B.2.1.                      Client
      shall make an initial payment of $20,000 as a retainer upon execution of this
      Agreement. Upon receipt of the retainer Merrick shall commence
      services.  The retainer shall be held by Merrick and applied against
      the final invoice.  If the amount of the retainer exceeds the final
      invoice, Merrick shall refund the balance with the final invoice.  If
      the final invoice exceeds the retainer, Client shall promptly remit the amount
      due.  Interest earned on the retainer shall in all instances be for
      the account of Merrick and shall not be included in any refund or remittance
      calculation.

    

    B.2.2.                      Except
      where the payment provisions below provide or require otherwise, Merrick shall
      submit invoices to Client on a periodic basis with a summary of services
      performed in accordance with Merrick’s standard invoicing
      practices.  Client shall notify Merrick of any objection within
      fourteen (14) calendar days of the invoice date, identifying the reasons there
      for in writing and timely paying that portion of the invoice not in
      dispute.  Invoices will be considered acceptable to Client if no such
      objections are made.

    

    B.2.3.                      Unless
      otherwise provided in Attachment B, payment is due upon presentment of an
      invoice.  Invoices not paid within thirty (30) days of presentment
      (excepting any portion of an invoiced amount in dispute and resolved in favor
      of
      Client) shall accrue interest at the rate of 1.5 percent per month, compounded
      annually.  Interest shall be calculated from the date of an invoice,
      with payments credited first to interest and then to principal.

    

    B.2.4.                      Payment
      to Merrick shall not be withheld, postponed or made contingent on the
      construction, completion or success of the project or upon receipt by Client
      of
      offsetting reimbursement or credit from other parties who may have caused
      additional services or expenses.  No withholdings, deductions or
      offsets shall be made from Merrick’s compensation for any reason except upon
      compliance with the certification requirements of Article 14.

    

    B.2.5.                      
      Timely payment by Client to Merrick is a material part of the consideration
      of
      this Agreement.  If payment is withheld, Merrick may suspend services
      or terminate this Agreement without incurring liability to Client or others
      for
      damages, including incidental, special, indirect, or consequential
      damages.

    

    B.2.6.                      If
      during the term of this Agreement circumstances or conditions that were not
      originally contemplated by or known to Merrick are revealed, to the extent
      that
      they affect the scope of services, compensation, schedule, allocation of risks
      or other material terms of this Agreement, Merrick may call for renegotiation
      of
      appropriate portions of this Agreement.  Merrick shall notify Client
      of the changed conditions necessitating renegotiation, and Merrick and Client
      shall promptly and in good faith enter into renegotiation of this
      Agreement.  If terms cannot be agreed to, either party may then
      terminate this Agreement.

    

    B.2.7.                      In
      the event of an action to enforce the payment terms and conditions of this
      Agreement, the prevailing party shall be entitled to an award of the costs
      and
      expenses of such action, including attorney fees, expert witness and consulting
      fees.

    

    
      
             

         

      

      
         

        
          

        

      

      
         

              

      

    

    

    

    Attachment
      C

    

    Additional
      Client Responsibilities

    

    Client
      will be required to review and approve the pilot plant design drawing to serve
      as the estimate basis for this equipment.

    
      
            

         

      

      
         

        
          

        

      

      
         

             

      

    

    Attachment
      D

    

    Schedule
      of Insurance

    

    Merrick
      shall maintain during the term of this Agreement, and for a period of two (2)
      years after completion of Merrick’s services, insurance of the kinds and with
      the limits not less than the amounts below:

    

    Worker’s
      Compensation Insurance as required by statute, including
Employers Liability, with limits of $100,000 each accident;
      $500,000 disease - policy limit; $100,000 disease - each employee.

    

    Commercial
      General Liability Insurance with limits of $1,000,000 per occurrence
      and $2,000,000 aggregate.

    

    Business
      Automobile Liability Insurance with limits of $1,000,000 per
      occurrence, combined single limits (owned, hired & non-owned).

    

    Umbrella/Excess
      Liability Insurance with limits of $3,000,000 per
      occurrence.

    

    Professional
      Liability Practice Policy with limits of $1,000,000 per claim and
      $2,000,000 annual aggregate.

    

    Certificates
      of insurance evidencing these minimum coverages shall be submitted to Client
      at
      the commencement of Merrick’s services.  The coverages are subject to
      the terms, exclusions and conditions of the policies.  Merrick’s
      insurance policies shall be endorsed to include, for the benefit of Client,
      a
      30-day advance written notice of cancellation.  Failure to submit the
      certificates or endorsements or failure of Client to insist upon submission
      shall not relieve Merrick of its duty to maintain the required
      insurance.

    

    Unless
      otherwise provided, Client shall maintain insurance upon the entire work at
      the
      site to the full insurable value thereof.  This insurance shall
      include the interests of Client, the Owner, Merrick, any other beneficially
      interested person or entity, and shall insure against the perils of fire and
      extended coverage and shall include “all risk” insurance for loss or
      damage.  If Client does not intend to maintain such insurance, Client
      shall inform Merrick in writing prior to commencement of Merrick’s services in
      which case, at the option of Merrick, Merrick may then obtain insurance to
      protect its interests.  If Merrick is damaged by failure of Client to
      maintain such insurance and to so notify Merrick, then Client shall bear all
      costs properly attributable thereto.   Client shall require that
      all contractors of any tier on this project obtain and maintain insurance,
      with
      appropriate limits, to cover the perils of their undertakings.

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