Document:

exv4w4

 

Exhibit 4.4

THIRD AMENDED AND RESTATED

ESCROW AGREEMENT

     THIS
THIRD AMENDED AND RESTATED ESCROW AGREEMENT (this
“Agreement”) is made this 28 day of
June, 2007, by and between One Earth Energy, LLC, an Illinois limited liability company
(the “Company”) and First Busey Trust as escrow agent (the “Escrow Agent”).

W I T N E S S E T H:

     WHEREAS, the Company proposes to offer certain of its Membership Units (the “Units”) at a
price of Five Thousand Dollars ($5,000) per Unit, with a minimum purchase of Five (5) Units, in an
offering (the “Offering”) conducted pursuant to a registration statement (the “Registration
Statement”) filed or to be filed with the Securities and Exchange Commission (the “Commission”) and
various states, including, without limitation, the states of Illinois, Indiana, Iowa, Missouri and
Wisconsin and pursuant to exemptions in other states;

     WHEREAS, the Company will allow investors in the Offering to deliver the purchase price of the
subscribed Units in installments; and

     WHEREAS, the Company desires to comply with the requirements of federal and state securities
laws and regulations, and desires to protect the investors (collectively referred to herein as the
“Subscribers” or individually referred to herein as a “Subscriber”) in the Offering by providing,
under the terms and conditions herein set forth, for the return to Subscribers of the money which
they may pay on account of purchases of Units in the Offering if the “Minimum Escrow Deposit” (as
hereinafter defined) is not deposited with the Escrow Agent.

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

     1. Acceptance of Appointment. First Busey Trust hereby agrees to act as the Escrow
Agent under this Agreement. The Escrow Agent shall have no duty to enforce any provision hereof
requiring performance by any other party hereunder.

     2. Establishment of Escrow Account. An escrow account (the “Escrow Account”) is
hereby established with the Escrow Agent for the benefit of the Subscribers in the Offering.
Except as specifically provided in this Agreement, the Escrow Account shall be created and
maintained subject to the customary rules and regulations of the Escrow Agent pertaining to such
accounts.

     3. Ownership of Escrow Account. Until such time as the funds deposited in the Escrow
Account (the “Escrow Funds”) shall equal the Minimum Escrow Deposit (as hereinafter defined), the
funds deposited in the Escrow Account by the Company shall not become the property of the Company
or be subject to the debts of the Company or any other person, but shall be held by the Escrow
Agent solely for the benefit of the Subscribers.

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     4. Deposit of Proceeds. All proceeds from subscriptions in the Offering shall be
delivered by the Company to the Escrow Agent, within forty-eight hours of receipt, endorsed (if
appropriate) to the order of the Escrow Agent, together with an appropriate written statement
setting forth the name, address and social security number of each Subscriber, the number of Units
subscribed for, and the amount paid by each such Subscriber. Any such proceeds deposited with the
Escrow Agent in the form of uncollected checks shall be promptly presented by the Escrow Agent for
collection through customary banking and clearing house facilities.

     5. Investment of Escrow Account. The Escrow Funds shall be credited by the Escrow
Agent and recorded in the Escrow Account. The Escrow Agent shall be permitted, and is hereby
authorized and directed to deposit transfer, hold and invest all Escrow Funds, including principal
and interest, in Federal Government Obligations or obligations issued and/or guaranteed as to
principal and interest by agencies or instrumentalities of the U.S. Government or common funds or
mutual funds which invest primarily in such obligations. Any interest received by Escrow Agent
with respect to the Escrow Funds shall be paid pursuant to the terms of this Agreement.

     6. Termination of Escrow. Unless sooner terminated pursuant to Section 7 below, this
Agreement and the Escrow Account created hereunder shall terminate as of the date which is one year
and one day following the date upon which the Commission authorizes the Offering (the “Offering
Effective Date”) or later if the Commission, upon the request of the Company, extends the
effectiveness of the Offering beyond the initial one year and one day period of effectiveness (the
“Termination Date”); provided, however, that if prior to the Termination Date, the Company has
accepted subscriptions for Units equal to the minimum offering amount, and the Company has advised
the Subscribers for those Units to remit to the Escrow Agent the balance of the purchase price,
then the Escrow Account may continue beyond the Termination Date until all amounts payable by such
Subscribers have been paid and the conditions for releasing the Escrow Funds have been satisfied.
In no event shall this date be later than three (3) months following the Termination Date.

     7. Disposition of Escrow Funds. The Escrow Agent shall have the following duties and
obligations under this Agreement:

     A. The Escrow Agent shall send to the Company every seven (7) days a written itemized
notice acknowledging the receipt and amount of the Escrow Funds.

     B. The Escrow Agent shall give the Company prompt written notice when the Escrow Funds,
exclusive of interest, equal or exceed ten percent (10%) of the Minimum Escrow Deposit.
Following receipt of such notice, the Company will advise the Subscribers for Units to remit
to the Escrow Agent the balance of the purchase price within thirty (30) days. The Escrow
Agent shall give the Company prompt written notice when the Escrow Funds, exclusive of
interest, equal or exceed the Minimum Escrow Deposit.

     C. At the time (and in the event) that: (a) the Escrow Funds, exclusive of interest,
equal or exceed $64,455,000 (the “Minimum Escrow Deposit”); (b) the Escrow Agent shall have
received written confirmation from the Company that the Company has obtained a written debt
financing commitment for debt financing ranging from a

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minimum of $94,455,000 to a maximum of $100,000,000; (c) the Company has affirmatively
elected in writing to terminate this Agreement; and (d) the Escrow Agent shall have provided
to each state securities department in which the Company has registered its securities for
sale, as communicated to the Escrow Agent by the Company, an affidavit stating that the
requirements of this Subsection 7.C have been satisfied, then this Agreement shall
terminate, and the Escrow Agent shall promptly disburse the Escrow Funds, including
interest, to the Company to be used in accordance with the provisions set out in the
Registration Statement. Upon completing such disbursement, the Escrow Agent shall be
completely discharged and released of any and all further responsibilities hereunder.

     D. In the event the Escrow Funds do not equal or exceed the Minimum Escrow Deposit on
or before the Termination Date, or if the Company has not received a written debt financing
commitment as described in Subsection 7.C above on or before the Termination Date, the
Escrow Agent shall return to each of the Subscribers in the Offering as promptly as possible
after the Termination Date and on the basis of its records pertaining to the Escrow Account:
(a) the sum which each Subscriber initially paid on account of such Subscriber’s
subscription for Units, and (b) each Subscriber’s portion of the total interest earned on
the Escrow Account as of the Termination Date, (c) reduced by the transaction fees provided
in Section 10 below. Computation of any Subscriber’s share of the net interest earned on
the Escrow Account will be a weighted average based on the ratio of such Subscriber’s
deposit in the Escrow Account to all such Subscribers’ deposits therein, and upon the length
of time that such deposit was held in the Escrow Account as compared to all such deposits.
All computations with respect to each Subscriber’s allocable share of net interest shall be
made by the Escrow Agent, which determinations shall be final and conclusive. Any amount
paid or payable to a Subscriber pursuant to this Section shall be deemed to be the property
of such Subscriber, free and clear of any and all claims of the Company or its agents or
creditors; and any further purchase obligation of such Subscriber in connection with the
Offering shall thereupon be deemed, ipso facto, to be cancelled without any further
liability. At such time as the Escrow Agent shall have made all of the payments called for
in this Section, the Escrow Agent shall be completely discharged and released of any and all
further responsibilities hereunder, except that the Escrow Agent shall be required to
prepare and issue an IRS Form 1099 to each Subscriber.

     E. In the event the Company offers its Subscribers the right to withdrawal and
terminate their subscription agreements pursuant to a rescission offer (“Rescission Offer”)
the Escrow Agent shall return to each rescinding Subscriber, as promptly as possible on the
basis of its records pertaining to the Escrow Account: (a) the sum which each rescinding
Subscriber initially paid in on account of subscriptions for the Units in the Offering and
(b) each rescinding Subscriber’s portion of the total interest earned on the Escrow Account
as of the Termination Date, (c) reduced by the transaction fees provided in paragraph 10
hereof. Computation of any rescinding Subscriber’s share of the net interest earned will be
a weighted average based on the proportion of such rescinding Subscriber’s deposit in the
Escrow Account from the Offering to all such Subscribers’ deposits held by the Escrow Agent
and upon the length of time in days such deposit was held in the Escrow Account as compared
to all such deposits. All computations with respect to each rescinding Subscriber’s
allocable share of net interest shall be made by the Escrow Agent, which

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determinations shall be final and conclusive. Any amount paid or payable to a rescinding
Subscriber pursuant to this paragraph shall be deemed to be the property of such rescinding
Subscriber, free and clear of any and all claims of the Company or its agents or creditors;
and the respective purchases of the Units made and entered into in the Offering shall
thereupon be deemed, ipso facto, to be cancelled without any further liability of the
rescinding Subscribers or any of them to pay for the Units. At such time as the Escrow
Agent shall have made all the payments called for in this paragraph, the Escrow Agent shall
continue to be bound by the other provisions of this Agreement, except that Escrow Agent
shall be required to prepare and issue a single IRS Form 1099 to each rescinding Subscriber.

     F. The agency responsible for securities regulation in each state in which the Company
has registered its securities, as communicated to the Escrow Agent by the Company, shall
have the right to inspect and make copies of records maintained by the Escrow Agent relating
to the Offering at any reasonable time wherever such records are located.

     8. Agreement with Escrow Agent. To induce the Escrow Agent to act hereunder, it is
agreed by the Company that:

     A. The Company will deliver a copy of the Registration Statement to the Escrow Agent
upon execution of this Agreement. The Escrow Agent will have no responsibility to examine
the Registration Statement with regard to the Escrow Account or otherwise.

     B. The sole duty of the Escrow Agent, other than as herein specified, shall be to
receive the Escrow Funds and hold them subject to disbursement in accordance herewith. The
Escrow Agent shall be under no duty to determine whether the Company is complying with the
requirements of this Agreement in tendering to the Escrow Agent proceeds from sales of or
subscriptions for Units. The Escrow Agent may conclusively rely upon and shall be protected
in acting in reliance upon, any statement, certificate, notice, request, consent, order or
other document believed by it to be genuine and to have been signed or presented by the
proper party or parties. The Escrow Agent shall have no duty or liability to verify any
such statement, certificate, notice, request, consent, order or other document, and its sole
responsibility shall be to act only as expressly set forth in this Agreement. The Escrow
Agent shall be under no obligation to institute or defend any action, suit or proceeding in
connection with this Agreement unless first indemnified to its satisfaction. The Escrow
Agent may consult counsel in respect of any question arising under this Agreement, and the
Escrow Agent shall not be liable for any action taken or omitted in good faith upon advice
of such counsel.

     C. The Company hereby indemnifies and holds harmless the Escrow Agent from and against
any and all loss, liability, cost, damage and expense, including, without limitation,
reasonable counsel fees, which the Escrow Agent may suffer or incur by reason of any action,
claim or proceeding brought against the Escrow Agent arising out of or relating to this
Agreement or any transaction to which this Agreement relates, unless such action, claim or
proceeding is the result of the gross negligence or willful misconduct of the
Escrow Agent.

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     9. Resignation and Removal of Escrow Agent; Successors. The Escrow Agent may resign
upon thirty (30) days advance written notice to the Company. If a successor Escrow Agent is not
appointed within the 30-day period following such notice, the Escrow Agent may petition any court
of competent jurisdiction to name a successor Escrow Agent. Any commercial banking institution or
trust company with which the Escrow Agent may merge or consolidate, and any commercial banking
institution or trust company to which the Escrow Agent transfers all or substantially all of its
corporate trust business shall be the successor Escrow Agent without further act.

     10. Fees and Expenses of Escrow Agent. The Company agrees to pay the Escrow Agent the
fees specified in the Escrow Agent’s fee schedule attached hereto as EXHIBIT A, in the
manner set forth therein, unless otherwise agreed to by the parties in writing. The parties
further agree that such fees shall be paid from interest on the Escrow Account only and not from
principal. In the event the interest on the Escrow Account is insufficient to satisfy the full
amount of fees payable hereunder, the Company shall be solely responsible for the payment of such
fees, and the Escrow Agent shall not seek payment of the fees from subscribers or apply any
principal deposited by subscribers in the Escrow Account against such fees. The fee agreed upon
herein is intended as full consideration for the Escrow Agent’s services as contemplated by this
Agreement; provided, however, that in the event (a) the Escrow Agent renders any
material service not contemplated in this Agreement, (b) any material controversy arises hereunder,
or (c) the Escrow Agent is made a party to any litigation pertaining to this Agreement, or the
subject matter hereof, then the Escrow Agent shall be reasonably compensated for such extraordinary
services and reimbursed for all costs and expenses, including reasonable attorney’s fees,
occasioned by any delay, controversy, litigation or event, and the same shall be recoverable from
the Company, but not from the Escrow Account.

     11. Notices. All notices, requests, demands, and other communications under this
Agreement shall be in writing and shall be deemed to have been duly given (a) on the date of
service if served personally on the party to whom notice is to be given, (b) on the day of
transmission if sent by facsimile transmission to the facsimile number given below, and telephonic
confirmation of receipt is obtained promptly after completion of transmission, (c) on the next day
on which such deliveries are made in Gibson City, Illinois, when delivery is to Federal Express or
similar overnight courier or the Express Mail service maintained by the United States Postal
Service, or (d) on the fifth day after mailing, if mailed to the party to whom notice is to be
given, by first class mail, registered or certified, postage prepaid, and properly addressed,
return receipt requested, to the party as follows:

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If to Escrow Agent:

First Busey Trust

P.O. Box 3309

Champaign, IL 61826

Attn: Scott MacAdam, President

Fax: (217) 365-4878

Phone: (217) 365-4803

If to the Company:

One Earth Energy, LLC

1306 West 8th Street

Gibson City, IL 60936

Attn: Steven P. Kelly, President

Fax: (217) 784-8949

Phone: (217) 784-4284

with a required copy to:

Brown, Winick, Graves, Gross, Baskerville and Schoenebaum, P.L.C.

666 Grand Avenue, Suite 2000

Des Moines, IA 50309

Attention: Christopher R. Sackett

Fax: (515) 283-0231

Phone: (515) 242-2400

          12. Governing Law. This Agreement shall be construed, performed, and enforced in
accordance with, and governed by, the internal laws of the State of Illinois, without giving effect
to the conflicts of laws provisions.

          13. Successors and Assigns. Except as otherwise provided in this Agreement, no party
hereto shall assign this Agreement or any rights or obligations hereunder without the prior written
consent to the other parties hereto, and any attempted assignment without such prior written
consent shall be void and of no force and effect. This Agreement shall inure to the benefit of,
and shall be binding upon, the successors and permitted assigns of the parties hereto.

          14. Severability. In the event that any part of this Agreement is declared by any
court or other judicial or administrative body to be null, void, or unenforceable, said provision
shall survive to the extent it is not so declared, and all of the other provisions of this
Agreement shall remain in full force and effect.

          15. Further Assurances. Each of the parties shall execute such documents and other
papers and take such further actions, as may be reasonably required or desirable to carry out the
provisions hereof and the transactions contemplated hereby.

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          16. Amendments. This Agreement may be amended or modified, and any of the terms,
covenants, representations, warranties, or conditions hereof may be waived, only by a written
instrument executed by the parties hereto, or in the case of a waiver, by the party waiving
compliance. Any waiver by any party of any condition, or of the breach of any provision, term,
covenant, representation, or warranty contained in this Agreement, in any one or more instances,
shall not be deemed to be nor construed as a further or continuing waiver of any such conditions,
or of the breach of any other provision, term, covenant, representation or warranty of this
Agreement.

          17. Entire Agreement. This Agreement contains the entire understanding among the
parties hereto with respect to the transactions contemplated hereby and supersedes and replaces all
prior and contemporaneous agreements and understandings, oral or written, with regard to such
Escrow Account.

          18. Section Headings. The section headings in this Agreement are for reference
purposes only and shall not affect the meaning or interpretation of this Agreement.

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

     IN WITNESS WHEREOF, the parties hereto have hereunto affixed their signatures as of the day
and year first written above.

	 	 	 	 	 	 	 
	THE COMPANY:	 	ESCROW AGENT
	 
	 	 	 	 	 	 
	ONE EARTH ENERGY, LLC	 	FIRST BUSEY TRUST
	 
	 	 	 	 	 	 
	By

	 	/s/ Steven Kelly	 	By	 	/s/ Scott MacAdam
	 

	 	 
	 	 	 	 
	 

	 	Steven P. Kelly, President
	 	 	 	Scott MacAdam, President

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EXHIBIT A

[Attach Escrow Agent’s Fee Schedule]

			
	Set up Fee
	 	$1,000

Monthly fee based on the average collected monthly balance of an annualized rate of 25 basis
points.

Example: $1,000,000 x .25% = $2,500 per year divided by 12 months = $208.33/month

8exv10w2

 

Exhibit 10.2

PHASE I AND PHASE II

ENGINEERING SERVICES AGREEMENT

BETWEEN

ONE EARTH ENERGY, LLC

AND

FAGEN ENGINEERING, LLC

July 20, 2006

 

			
	*	 	Portions omitted pursuant to a request for confidential treatment and filed separately with
the Securities and Exchange Commission.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	Article 2 Definitions; Rules of Interpretation
	 	 	1	 
	 
	 	 	 	 
	1.1 Rules of Construction
	 	 	1	 
	1.2 Defined Terms 
	 	 	2	 
	 
	 	 	 	 
	Article 2 Retention of Agent 
	 	 	4	 
	 
	 	 	 	 
	2.1 Retention of Services
	 	 	4	 
	 
	 	 	 	 
	Article 3 Engineer Responsibilities 
	 	 	4	 
	3.1 Services 
	 	 	4	 
	3.2 Phase I Design Package 
	 	 	4	 
	3.3 Delivery of Phase I Design Package 
	 	 	4	 
	3.4 The Phase II Design Package 
	 	 	4	 
	3.5 Delivery of Phase II Design Package 
	 	 	5	 
	3.6 Delays
	 	 	5	 
	3.7 Utility Routing and Design Services Limited 
	 	 	5	 
	 
	 	 	 	 
	Article 4 Client Responsibilities 
	 	 	5	 
	 
	 	 	 	 
	4.1 Client’s Representative 
	 	 	5	 
	4.2 Client’s Requirements 
	 	 	6	 
	4.3 Other Information 
	 	 	6	 
	4.4 Access to Property 
	 	 	6	 
	4.5 Review of Documents 
	 	 	6	 
	4.6 Consents, Approvals, Licenses, and Permits 
	 	 	6	 
	4.7 Bids
	 	 	6	 
	4.8 Other Services 
	 	 	6	 
	4.9 Services Outside Scope of Engineer’s Services 
	 	 	6	 
	4.10 Deviation from Design 
	 	 	6	 
	4.11 Developments Affecting Scope or Timing of Services 
	 	 	7	 
	 
	 	 	 	 
	Article 5 Compensation And Payment 
	 	 	7	 
	 
	 	 	 	 
	5.1 Compensation 
	 	 	7	 
	5.2 Reimbursement of Engineer Expenses 
	 	 	7	 
	5.3 Reimbursement of Subcontractor Expenses 
	 	 	7	 
	5.4 Fees for Work Outside Scope of Services 
	 	 	7	 
	5.5 Collection of Unpaid Amounts 
	 	 	7	 
	5.6 Reimbursement Schedules Subject to Change 
	 	 	7	 
	5.7 Invoices 
	 	 	8	 
	5.8 Payment 
	 	 	8	 
	5.9 Late Payment and Interest 
	 	 	8	 
	5.10 Suspension for Failure to Pay 
	 	 	8	 

One Earth Energy, LLC

Phase I and Phase II Engineering Agreement

July 20, 2006

i

 

Table of contents

(continued)

	 	 	 	 	 
	 	 	Page
	5.11 Payment 
	 	 	8	 
	5.12 Withholding Payments 
	 	 	8	 
	5.13 Purchase Orders 
	 	 	8	 
	5.14 Changes in Project
	 	 	8	 
	 
	 	 	 	 
	Article 6 Construction Cost And Cost Estimates 
	 	 	8	 
	 
	 	 	 	 
	6.1 Cost Estimates 
	 	 	8	 
	 
	 	 	 	 
	Article 7 Termination 
	 	 	9	 
	7.1 Termination Upon Default 
	 	 	9	 
	7.2 Termination Upon Abandonment of Plant 
	 	 	9	 
	 
	 	 	 	 
	Article 8 Ownership of Work Product 
	 	 	9	 
	8.1 Work Product 
	 	 	9	 
	8.2 Copies Provided to Client 
	 	 	9	 
	8.3 Prohibited Use of Work Product 
	 	 	9	 
	8.4 Derogation of Engineer’s Rights to Work Product 
	 	 	9	 
	 
	 	 	 	 
	Article 9 Successors and Assigns 
	 	 	10	 
	9.1 Successors 
	 	 	10	 
	9.2 Written Consent Required 
	 	 	10	 
	9.3 No Third-Party Beneficiaries 
	 	 	10	 
	 
	 	 	 	 
	Article 10 Warranty 
	 	 	10	 
	10.1 No Warranty Extended 
	 	 	10	 
	10.2 No Responsibility for Construction 
	 	 	10	 
	 
	 	 	 	 
	Article 11 Indemnification 
	 	 	10	 
	11.1 Engineer’s Indemnification 
	 	 	10	 
	11.2 Client’s Indemnification 
	 	 	11	 
	11.3 Hazardous Materials Indemnification 
	 	 	11	 
	 
	 	 	 	 
	Article 12 Dispute Resolution 
	 	 	11	 
	12.1 Arbitration 
	 	 	11	 
	 
	 	 	 	 
	Article 13 Confidentiality 
	 	 	12	 
	13.1 Non-Disclosure Obligation 
	 	 	12	 
	13.2 Publicity and Advertising 
	 	 	12	 
	13.3 Term of Obligation 
	 	 	12	 
	 
	 	 	 	 
	Article 14 Miscellaneous 
	 	 	12	 
	14.1 Governing Law 
	 	 	12	 
	14.2 Severability 
	 	 	12	 
	14.3 No Waiver 
	 	 	13	 

One Earth Energy, LLC

Phase I and Phase II Engineering Agreement

July 20, 2006

ii

 

 

Table of Contents

(continued)

	 	 	 	 	 
	 	 	Page	 
	14.4 Captions and Headings 
	 	 	13	 
	14.5 Engineer’s Accounting Records 
	 	 	13	 
	14.6 Counterparts 
	 	 	13	 
	14.7 Survival 
	 	 	13	 
	14.8 No Privity with Client’s Contractors 
	 	 	13	 
	14.9 Amendments 
	 	 	13	 
	14.10 Entire Agreement 
	 	 	13	 
	14.11 Notice
	 	 	13	 
	14.12 Extent of Agreement 
	 	 	14	 
	14.13 Subrogation Waiver 
	 	 	14	 
	 
	 	 	 	 
	EXHIBIT A Fee Schedule
	 	 	16	 
	 
	 	 	 	 
	EXHIBIT B Reimbursable Expense Schedule
	 	 	17	 
	 
	 	 	 	 
	EXHIBIT C Client’s Deliverable Site Obligations
	 	 	18	 

One Earth Energy, LLC

Phase I and Phase II Engineering Agreement

July 20, 2006

iii

 

 

PHASE I AND PHASE II

ENGINEERING SERVICES AGREEMENT

     THIS PHASE I AND PHASE II ENGINEERING SERVICES AGREEMENT (the “Agreement”) is made as
of July 20, 2006, (the “Effective Date”) by and between One Earth Energy, LLC, an Illinois
Limited Liability Company (the “Client”) and Fagen Engineering, LLC a Minnesota
Limited Liability Company (the “Engineer”). Each of the Client and Engineer are
referred to herein individually as a “Party” and collectively as the
“Parties”.

RECITALS

     WHEREAS, Client is developing a 100 million gallons per year dry grind ethanol production
facility to be located in Gibson City, IL (the “Plant”) to be owned and operated by Client;
and

     WHEREAS, Client and Fagen, Inc. (“Design-Builder”) intend to enter into that certain Lump-Sum
Design-Build Agreement (“Design-Build Agreement”) under which the Fagen, Inc.,
an affiliate of Engineer, will serve as the design-builder for the Plant and provide design,
engineering, procurement and construction services for the development and construction of the
Plant; and

     WHEREAS, Client wishes to retain an entity in advance of entering into the Design-Build
Agreement to perform certain engineering and design work that will be required under the
Design-Build Agreement on the terms and conditions set forth in this Agreement, and Engineer
desires to act as such entity upon the terms and conditions set forth in this Agreement.

     NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending
to be legally bound by this Agreement, the parties do hereby agree as follows:

Article 1

Definitions; Rules of Interpretation

1.1 Rules of Construction.

     The capitalized terms listed in this Article 1 shall have the meanings set forth herein
whenever the terms appear in this Agreement, whether in the singular or the plural or in the
present or past tense. Other terms used in this Agreement but not listed in this Article shall have
meanings as commonly used in the English language and, where applicable, in generally accepted
construction and design-build industry standards. Words not otherwise defined herein that have well
known and generally accepted technical or trade meanings are used herein in accordance with such
recognized meanings. In addition, the following rules of interpretation shall apply:

	 	(a)	 	The masculine shall include the feminine and neuter.

One Earth Energy, LLC

Phase I and Phase II Engineering Agreement

July 20, 2006

1

 

	 	(b)	 	References to “Articles,” “Sections,” “Schedules,” or “Exhibits” shall be to
Articles, Sections, Schedules or Exhibits of this Agreement.
	 
	 	(c)	 	This Agreement was negotiated and prepared by each of the Parties with the
advice and participation of counsel. The Parties have agreed to the wording of this
Agreement and none of the provisions hereof shall be construed against one Party on the
ground that such Party is the author of this Agreement or any part hereof. The
following definitions will apply in this Agreement:

     1.2 Defined Terms.

     In addition to definitions appearing elsewhere in this Agreement, the following terms have
the following meanings:

Agreement will have the meaning given to such term in the Preamble to this Agreement.

Applicable Law means

	 	(a)	 	any and all laws, legislation, statutes, codes, acts, rules, regulations,
ordinances, treaties or other similar legal requirements enacted, issued or
promulgated by a Governmental Authority;
	 
	 	(b)	 	any and all orders, judgments, writs, decrees, injunctions, Governmental
Approvals or other decisions of a Governmental Authority, and
	 
	 	(c)	 	any and all legally binding announcements, directives or published practices
or interpretations, regarding any of the foregoing in (a) or (b) of this definition,
enacted, issued or promulgated by a Governmental Authority,

to the extent, for each of the foregoing in (a), (b) and (c) of this definition, applicable to or
binding upon (i) a Party, its affiliates, its shareholders, its members, it partners or their
respective representatives, to the extent any such person is engaged in activities related to the
Services; or (ii) the property of a Party, its affiliates, its shareholders, its members, its
partners or their respective representatives, to the extent such property is used in connection
with the Services or an activity related to the Services.

Client will have the meaning given to such term in the Preamble to this Agreement.

Client’s Representative will have the meaning given to such term in Section 4.1

Design-Build Agreement will have the meaning given to such term in the Recitals to this Agreement.

Effective Date will have the meaning given to such term in the Preamble to this Agreement.

Engineer will have the meaning given to such term in the Preamble to this Agreement.

Engineer Responsible Parties will have the meaning given to such term in Section 4.10.

 One Earth Energy, LLC

Phase I and Phase II Engineering Agreement

July 20, 2006

2

 

Governmental Approvals will mean any material authorizations or permissions issued or granted by
any Governmental Authority to the Project, the Client, the Engineer, subcontractors and their
affiliates in connection with any activity related to the Services.

Governmental Authority will mean any federal, state, local or municipal governmental body; any
governmental, quasi-governmental, regulatory or administrative agency, commission, body or other
authority exercising or entitled to exercise any administrative, executive, judicial, legislative,
policy, regulatory or taxing authority or power; or any court or governmental tribunal; in each
case having jurisdiction over the Client, the Engineer, the Plant, or the Site.

Monthly Invoice will have the meaning given to such term in Section 5.7.

Party or Parties will have the meaning given to such term in the Preamble to this Agreement.

Phase I Deliverables will mean the Client’s deliverable obligations pursuant to Exhibit C attached
to this Agreement.

Phase I Design Package will have the meaning given to such term in Section 3.2.

Phase II Deliverables will mean the Client’s deliverable obligations pursuant to Exhibit C

Phase II Design Package will have the meaning given to such term in Section 3.4 attached to this
Agreement.

Plant will have the meaning given to such term in the Recitals to this Agreement.

Project will mean the Plant, together with all equipment, labor, services and materials furnished
under the Design-Build Agreement.

Services will have the meaning given to such term in Section 3.1.

Site will mean the land or premises on which the Plant is located.

Subcontractor will mean any person or entity, including but not limited to independent engineers,
associates, and consultants, retained by Engineer, or by any person or entity retained directly or
indirectly by Engineer, in each case as an independent contractor, to perform a portion of the
Services.

Work Product will have the meaning given to such term in Section 8.1.

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Article 2

Retention of the Agent

     2.1 Retention of Services. On the terms and subject to the conditions hereinafter set forth,
Client hereby retains Engineer to perform, and Engineer hereby agrees to perform, the Services.
Engineer will provide such Services solely pursuant to the terms and conditions set forth herein
including any indemnifications and limitations on liability.

Article 3

Engineer Responsibilities

     3.1 Services. Engineer shall perform the Phase I Design Package and Phase II Design Package
engineering services necessary to facilitate Client’s completion of the Phase I and Phase II Site
work required of Client prior to the issuance of a Notice to Proceed pursuant to the Design-Build
Agreement (collectively, the “Services”).

     3.2 Phase I Design Package. (Grading and Drainage). The Phase I Design Package to be provided
by Engineer shall consist of the engineering and design of the Plant Site and shall include the
following drawings:

	 	a)	 	Cover Sheet
	 
	 	b)	 	Property Layout Drawing
	 
	 	c)	 	Grading, Drainage and Erosion Control Plan Drawing (Multiple Drawings
if Required)

	 	i.	 	Used for Land Disturbance Permitting
	 
	 	ii.	 	Site grading is held 6-inches low for topsoil and seeding

	 	d)	 	Roadway Alignment Drawing
	 
	 	e)	 	Culvert Cross Sections and Details (Multiple Drawings)
	 
	 	f)	 	Seeding and Landscaping (If Required)

Plan sets along with a Bid Tabulation Sheet will be supplied to the Client so all contractors bid
the same quantities. A telephone conference call for a Phase I pre-bid meeting will be provided
upon Client’s request.

     3.3 Delivery of Phase I Design Package. Engineer shall deliver the completed Phase I Design
Package no later than 60 days after the receipt of all Phase I Deliverables, however, the 60 day
time frame will commence no sooner than December 5, 2006.

     3.4 Phase II Design Package. The Phase II Design Package to be provided by Engineer shall
provide the engineering and design of Site work and utilities for the Plant, all within the
property line of Plant, and shall consist of the following:

	 	a)	 	Cover Sheet
	 
	 	b)	 	Property Layout Drawing

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	 	c)	 	Site Grading and Drainage Drawing (Final Interior Plant Grading)
	 
	 	d)	 	Roadway Alignment
	 
	 	e)	 	Utility Layout (Fire Loop)
	 
	 	f)	 	Utility Layout (Potable Water)
	 
	 	g)	 	Utility Layout (Well Water) if using on-site wells
	 
	 	h)	 	Utility Layout (Sanitary Sewer)
	 
	 	i)	 	Utility Layout (Utility Water Blowdown)
	 
	 	j)	 	Utility Layout (Natural Gas)

	 	i.	 	Fagen Engineering provides a preferred routing through the Site, line size and pipe
specifications are typically provided by the gas supplier.

	 	k)	 	Geometric Layout (For Project Control Verification)
	 
	 	l)	 	Site Utility Piping Tables Drawing
	 
	 	m)	 	Tank Farm Layout Drawing
	 
	 	n)	 	Tank Farm Details Drawing
	 
	 	o)	 	) Sections and Details Drawing (If required)
	 
	 	p)	 	Miscellaneous Details Drawing (If required)

A telephone conference call for a Phase II pre-bid meeting will be provided upon Client’s request.

     3.5 Delivery of Phase II Design Package. Engineer shall deliver the completed Phase II Design
Package no later than 60 days after the receipt of all Phase II Deliverables.

     3.6 Delays. The Parties agree that Engineer shall not be responsible for delays in providing
the Services under this Agreement due to factors beyond Engineer’s control.

     3.7 Utility Routing and Design Services Limited. The Parties agree that Engineer shall provide
the routing and design for the utilities necessary for the Plant only within the Plant property
line and up to the Plant property line, and that, for purposes of this Agreement, Engineer assumes
a tie-in point to a city utility. The Parties agree that, if there is no city tie-in point,
Engineer will route the utilities to the Plant property line and stop. Any special tie-in
requirements necessary to connect the utilities at the Plant property line are not included in the
compensation or the scope of this Agreement and shall only be designed and engineered by Engineer
as change in the Project which affects the Services hereunder.

Article 4

Client Responsibilities

     4.1 Client’s Representative. Client shall, prior to the commencement of Services by Engineer,
name a representative (“Client’s Representative”) with authority to receive
information and transmit instructions for Client. Client’s Representative shall be vested with
authority to act on behalf of Client and Engineer shall be entitled to rely on Client’s
Representative’s communications with regard to the Services.

     4.2 Client’s Requirements. Client shall, prior to the commencement of Services by

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Engineer, provide Engineer with Client’s requirements for the Project, including objectives
and constraints, design and construction standards, bonding and insurance requirements, and
contract forms.

     4.3 Other Information. Prior to the commencement of Services by Engineer, Client shall
provide Engineer with all other information available to Client and pertinent to the Project and
the Services including, but not limited to, all items required pursuant to Exhibit C. The items
required by Client pursuant to this Section 4.3 shall be furnished at Client’s expense, and
Engineer shall be entitled to rely upon the accuracy and completeness thereof.

     4.4 Access to Property. Prior to the commencement of Services and as necessary during the
performance of Services, Client shall arrange for access by Engineer upon public and private
property, as required for the performance of the Services under this
Agreement.

     4.5 Review of Documents. As related to the performance of Services hereunder, Client shall
examine documents presented by Engineer, obtain legal and other advice as Client deems
appropriate, and render written decisions within reasonable time. The items required by Client
pursuant to this Section 4.5 shall be furnished at Client’s expense, and Engineer shall be
entitled to rely upon the accuracy and completeness thereof.

     4.6 Consents, Approvals, Licenses and Permits. Prior to the commencement of Services and as
necessary during the performance of the Services, Client shall obtain all consents, approvals,
licenses, permits, and other Governmental Approvals necessary for the Project and for the
performance of the Services. The items required by Client pursuant to this Section 4.6 shall be
furnished at Client’s expense, and Engineer shall be entitled to rely upon the accuracy and
completeness thereof.

     4.7 Bids. Client shall advertise for and open bids when scheduled.

     4.8 Other Services. Client shall furnish all legal, accounting and insurance counseling
services as may be necessary at any time for the Services, including auditing services the Client
may require to verify the monthly invoices or to ascertain how or for what purposes the Engineer
and/or Subcontractors have used the money paid by or on behalf of the Client.

     4.9 Service Outside Scope of Engineer’s Services. Client shall, at its own expense, as
necessary for the performance and completions of the Services, provide any additional services
necessary for the Project that are outside scope of the Services provided by Engineer under this
Agreement. Engineer shall be entitled to rely upon, as applicable, the completeness and accuracy
of such additional services.

     4.10 Deviation from Design. Client shall indemnify and hold harmless Engineer, its
employees, its agents, its affiliates, and any other persons or entities within its control or for
whom Engineer would otherwise be responsible (“Engineer Responsible Parties”) against
claims arising out of Engineer’s design, if there has been, in the completion of the Phase I and
the Phase II Site work required of Client prior to the issuance of a Notice to Proceed pursuant to
the

     Design-Build Agreement, a failure to follow Engineer’s recommendation and such deviation or
failure caused the claims.

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     4.11 Developments Affecting Scope or Timing of Services. Client shall promptly notify
Engineer, in writing, when Client learns of contractor error or any development that affects the
scope or timing of Engineer’s Services.

Article 5

Compensation and Payment

     5.1 Compensation. In consideration of its performance of the Services, Client shall pay
Engineer for Engineer’s time in the performance of the Services at a fixed fee of $92,500 (“Fixed
Fee”) as compensation. Engineer’s compensation under this Section 5.1 shall be pursuant to the
Fee schedule attached hereto as Exhibit A, as such schedule may be modified from time to time.
The full amount of compensation paid by Client under this Section 5.1 shall be included in and
credited to the Design-Build Agreement’s contract price if entered into upon payment in full by
Client.

     5.2 Reimbursement of Engineer Expenses. In addition to the fixed fee in 5.1, Client shall
reimburse Engineer for its expenses related to the performance of the Services in accordance with
Engineer’s current reimbursable expense schedule attached hereto Exhibit B.

     5.3 Reimbursement of Subcontractor Expenses.

          5.3.1 Subcontractor charges related to time spent in the performance of the Services shall
not be marked-up by Engineer. Client shall reimburse Engineer for costs related to Subcontractors’
time in accordance with the Subcontractors’ invoices for the work.

          5.3.2 Subcontractor reimbursable expenses will be marked up in accordance with the current
reimbursable expense schedule attached hereto as Exhibit B.

     5.4 Fees for Work Outside Scope of Services. Fees for all work outside the scope of
Engineer’s responsibilities described in Article 3, including change order work, shall be computed
in accordance with Engineer’s current fee schedules, attached hereto as Exhibits A and B, as such
schedules may be revised form time to time, unless otherwise agreed to in writing.

     5.5 Collection of Unpaid Amounts. If any amount due is not paid in accordance with this
Agreement and Engineer must collect that amount, Engineer shall be entitled to recover, in
addition to the amount due, the cost of collection, including reasonable attorney’s fees in
connection with those collection efforts.

     5.6 Reimbursement Schedules Subject to Change. Engineer’s reimbursement schedule and
reimbursable expense schedule attached hereto as Exhibits A and B are subject to change on
January 1 of each year.

     5.7 Invoices. Engineer shall submit a monthly invoice (“Monthly Invoice”) for
Services provided and for reimbursable expenses incurred by Engineer and any Subcontractors.

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     5.8 Payment. Within thirty (30) days after Client’s receipt of each Monthly Invoice,
Client shall pay Engineer all amounts due.

     5.9 Late Payment and Interest. If Client fails to make payment within thirty (30) days
after receipt of Monthly Invoice, interest at maximum legal rate or at an annual rate of 18%,
whichever is less, shall accrue

     5.10 Suspension for Failure to Pay. If Client fails to make payment within thirty (30) days
after receipt of Monthly Invoice, Engineer may, at its option, after giving seven (7) days’ written
notice, suspend Services until it all amounts due to Engineer by Client have been paid in full.

     5.11 Payments from Lawful Sources. Client shall provide for payment from one or more lawful
source of all sums to be paid Engineer.

     5.12 Withholding Payments. Engineer’s compensation shall not be reduced on account of any
amounts withheld from payment to Subcontractors.

     5.13 Purchase Orders. If Client issues a purchase order or other document to initiate the
commencement of Services hereunder, it is expressly agreed that any terms and conditions appearing
thereon shall have no application and only the provisions of this Agreement shall apply.

     5.14 Changes in Project. If Client requests changes in the Project which affect the Services,
compensation for and time of performance of Engineer’s services shall be adjusted appropriately.

Article 6

Construction Cost and Cost Estimates

     6.1 Cost Estimates. Client and Engineer acknowledge that Engineer has no control over cost of
labor, materials, equipment of services furnished by others, over contractors’ methods of
determining prices, or other competitive bidding or market conditions and that Engineer’s estimates
of Project construction cost will be made on the basis of its employees‘ experience and
qualifications and will represent Engineer’s employees‘ best judgment as experienced and
qualified professionals, familiar with the construction industry. Engineer does not guarantee that
proposal, bids, or actual construction cost will not vary from its estimates of Project cost and
Client acknowledges the same.

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Article 7

Termination

     7.1 Termination Upon Default. Either party may terminate this Agreement upon twenty (20)
days’ written notice if the non-terminating party has defaulted through no fault of the
terminating party.

     7.2 Termination Upon Abandonment of Plant. Client may terminate Engineer’s obligation to
provide further services upon twenty (20) days’ written notice if Client abandons development of
the Plant. In such event, all past due amounts for services rendered (including Subcontractor’s
fees, if any) and any unpaid reimbursable expenses shall be immediately due and payable by Client.

Article 8

Ownership of Work Product

     8.1 Work Product. All tangible items prepared by Engineer, including but not limited to all
drawings, specifications, calculations, data, notes and other materials and documents, including
electronic data furnished by Engineer to Client and to Subcontractors under this Agreement
(“Work Product”) shall be instruments of service, and Engineer shall retain the ownership
and property interests therein, including the copyrights thereto.

     8.2 Copies Provided to Client. Client may retain copies of Work Product for reference;
provided, however, that Client may not make copies of the Work Product available without
Engineer’s written permission, and, granted such permission, may only do so to the extent the use
of such copies of the Work Product directly pertains to the Services, the Plant, or the
construction thereof. Pursuant to Section 8.1 of this Agreement, Engineer retains ownership of and
property interests in any Work Product made available and/or copied.

     8.3 Prohibited Use of Work Product. Reuse of the Work Product on any another Project without
Engineer’s written consent is prohibited. Client shall indemnify and hold harmless Engineer
Responsible Parties against claims resulting from such prohibited reuse. Said items are not
intended to be suitable for completion of this Project by others.

     8.4 Derogation of Engineer’s Rights to Work Product. Submittal or distribution of Work
Product in connection with the performance and completion of the Services and the construction
of the Project does not constitute publication in derogation of Engineer’s rights and does not
in any way diminish Engineer’s Work Product rights established herein.

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Article 9

Successors and Assigns

     9.1 Successors. The Parties intend that the provisions of this Agreement are binding upon
the Parties, their employees, agents, heirs, successors and assigns.

     9.2 Written Consent Required. Neither party shall assign, sublet, or transfer any interest in
this Agreement without written consent of the other; provided, however, that Engineer may employ
such Subcontractors as it may deem appropriate and may transfer or assign any interest in this
Agreement or the Work Product to Design-Builder without consent of Client.

     9.3 No Third-Party Beneficiaries. None of the provisions of this Agreement will be for the
benefit of or enforceable by any person other than the Parties hereto, their successors and
permitted assigns and legal representatives

Article 10

Warranty

     10.1 No Warranty Extended. Engineer shall use reasonable care to reflect requirements of
all Applicable Laws, rules, or regulations of which Engineer has knowledge or about which Client
specifically advises in writing, which are in effect on the date of this Agreement. ENGINEER
INTENDS TO RENDER SERVICES IN ACCORDANCE WITH GENERALLY ACCEPTED PROFESSIONAL STANDARDS, BUT NO
OTHER WARRANTY IS EXTENDED, EITHER EXPRESS OR IMPLIED, IN CONNECTION WITH SUCH SERVICES. Client’s
rights and remedies in this Agreement are exclusive.

     10.2 No Responsibility for Construction. Engineer shall not be responsible for construction
of the Plant, contractors’ construction means, methods, techniques, sequences, or procedures, or
for contractors’ safety precautions and programs, or for contractors’ failure according to
contract documents.

Article 11

Indemnification

     11.1 Engineer’s Indemnification. To the fullest extent permitted by law, Engineer shall
indemnify and hold harmless Client, Client’s officers, directors, partners, employees, and agents
from and against any and all claims for bodily injury and for damage to tangible property caused
solely by the negligent acts or omissions of Engineer or Engineer Responsible Parties and
Engineer’s Engineers in the performance and furnishing of Engineer’s services under this
Agreement. Any indemnification shall be limited to the terms and amounts of coverage of the
Engineer’s insurance policies.

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     11.2 Client’s Indemnification. To the fullest extent permitted by law, Client shall
indemnify and hold harmless Engineer, Engineer’s officers, directors, partners, employees, and
agents and Engineer’s Engineers from and against any and all claims for bodily injury and for
damage to tangible property caused solely by the negligent acts of omission of Client or
Client’s officers, directors, partners, employees, agents, and Client’s Engineers with respect
to this Agreement or the Project.

     11.3 Hazardous Materials Indemnification. In addition to the indemnity provided under this
section, and to the fullest extent permitted by law, Client shall indemnify and hold harmless
Engineer and its officers, directors, partners, employees, and agents and Engineer’s Engineers
from and against all claims, costs, losses, and damages (including but not limited to all fees and
charges of engineers, architects, attorneys, and other professionals and all court or arbitration
or other dispute resolution costs) caused by, arising out of, or relating to the presence,
discharge, release, or escape of asbestos, PCBs, petroleum, hazardous waste, or radioactive
materials at, on, under, or from the Site.

Article 12

Dispute Resolution

     12.1 Arbitration. In an effort to resolve any conflicts that arise out of or relate to this
Agreement, the Client and the Engineer agree that all disputes shall be submitted first to
nonbinding mediation. If mediation does not resolve the conflicts, the controversy shall be
decided by final and binding arbitration conducted in Minneapolis, Minnesota in accordance with
the Construction Industry Arbitration Rules of the American Arbitration Association then in
effect, unless the Parties mutually agree otherwise.

The award of the arbitrator(s) shall be final and binding upon the Parties without the right of
appeal to the courts. Judgment may be entered upon it in accordance with Applicable Law by any
court having jurisdiction thereof.

Engineer and Client expressly agree that any arbitration pursuant to this Section 12.1 may be
joined or consolidated with any arbitration involving any other person or entity (i) necessary to
resolve the claim, dispute or controversy, or (ii) substantially involved in or affected by such
claim, dispute or controversy. Both Engineer and Client will include appropriate provisions in all
contracts they execute with other parties in connection with the Services to require such joinder
or consolidation.

The prevailing Party in any arbitration, or any other final, binding dispute proceeding upon which
the Parties may agree, shall be entitled to recover from the other Party reasonable attorneys’
fees and expenses incurred by the prevailing Party.

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Article 13

Confidentiality

     13.1 Non-Disclosure Obligation. Except as required by court order, subpoena, or Applicable
Law, neither Party shall disclose to third parties any confidential or proprietary information
regarding the other Party’s business affairs, finances, technology, processes, plans or
installations, product information, know-how, or other information that is received from the other
Party pursuant to this Agreement or the Parties’ relationship prior thereto or is developed
pursuant to this Agreement, without the express written consent of the other Party, which consent
shall not be unreasonably withheld. The Parties shall at all times use their respective reasonable
efforts to keep all information regarding the terms and conditions of this Agreement confidential
and shall disclose such information to third Persons only as reasonably required for the
permitting of the Project; financing the development, construction, ownership, operation and
maintenance of the Plant; or as reasonably required by either Party for performing its obligations
hereunder and if prior to such disclosure, the disclosing Party informs such third Persons of the
existence of this confidentiality obligation and only if such third Persons agree to maintain the
confidentiality of any information received. This Article 13 shall not apply to information that
was already in the possession of one Party prior to receipt from the other, that is now or
hereafter becomes a part of the public domain through no fault of the Party wishing to disclose,
or that corresponds in substance to information heretofore or hereafter furnished by third parties
without restriction on disclosure.

     13.2 Publicity and Advertising. Neither Client nor Engineer shall make or permit any of their
subcontractors, agents, or vendors to make any external announcement or publication, release any
photographs or information concerning the Project or any part thereof, or make any other type of
communication to any member of the public, press, business entity, or any official body which
names the other Party unless prior written consent is obtained from the other Party, which consent
shall not be unreasonably withheld.

     13.3 Term of Obligation. The confidentiality obligations of the Parties pursuant to this
Article 13 shall survive for a period five (5) years following the later to occur of termination
of this Agreement or completion of the Plant.

Article 14

Miscellaneous

     14.1 Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with, the substantive laws of the state of Minnesota, without regard to the conflict of
laws provisions thereof.

     14.2 Severability. If any provision or any part of a provision of the Agreement shall be
finally determined to be superseded, invalid, illegal, or otherwise unenforceable pursuant to

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any applicable Legal Requirements, such determination shall not impair or otherwise affect the
validity, legality, or enforceability of the remaining provision or
parts of the provision of the Agreement, which shall remain in full force and effect as if the unenforceable provision or part
were deleted.

     14.3 No Waiver. The failure of either Engineer or Client to insist, in any one or more
instances, on the performance of any of the obligations required by the other under this Agreement
shall not be construed as a waiver or relinquishment of such obligation or right with respect to
future performance.

     14.4 Captions and Headings. The table of contents and the headings used in this Agreement
are for ease of reference only and shall not in any way be construed to limit, define, extend,
describe, alter, or otherwise affect the scope or the meaning of any provision of this Agreement.

     14.5 Engineer’s Accounting Records. Records of Engineer’s personnel time, reimbursable
expenses, and accounts between parties shall be maintained on a generally recognized accounting
basis.

     14.6 Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall be deemed an original and all of which together shall be deemed one and the same Agreement,
and may be executed and delivered by facsimile signature, which shall be considered an original.

     14.7 Survival. Notwithstanding any provisions herein to the contrary, the Work Product
provisions set forth in Article 8 and the indemnity obligations set forth herein shall survive (in
full force) the expiration or termination of this Agreement, and shall continue to apply to the
Parties to this Agreement even after termination of this Agreement or the transfer of such Party’s
interest in this Agreement.

     14.8 No Privity with Client’s Contractors. Nothing in this Agreement is intended or deemed to
create any legal or contractual relationship between Engineer and any Client contractor or
subcontractor retained to perform the Phase I and Phase II Site work required of Client prior to
the issuance of a Notice to Proceed pursuant to the Design-Build Agreement.

     14.9 Amendments. This Agreement may not be changed, altered, or amended in any way except in
writing signed by a duly authorized representative of each Party.

     14.10 Entire Agreement. This Agreement consists of the terms and conditions set forth
herein, as well as the Exhibits hereto, which are incorporated by reference herein and made a part
hereof. This Agreement sets forth the full and complete understanding of the Parties as of the
Effective Date with respect to the subject matter hereof.

     14.11 Notice. Whenever the Agreement requires that notice be provided to a Party, notice
shall be delivered in writing to such party at the address listed below. Notice will be

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deemed to have been validly given if delivered (i) in person to the individual intended to
receive such notice, (ii) by registered or by certified mail, postage prepaid to the address
indicated in the Agreement within four (4) days after being sent, or (iii) by facsimile, by the
time stated in a machine-generated confirmation that notice was received at the facsimile number
of the intended recipient.

If to Engineer, to:

Fagen Engineering LLC 501

W. Highway 212

P. O. Box 159

Granite Falls, MN 56241

Attention: John Austgen

Fax: (320) 564-4861

with a copy to:

Fagen, Inc.

501 W. Highway 212

P. O. Box 159

Granite Falls, MN 56241

Attention: Bruce Langseth

Fax: (320) 564-3278

If to Client, to:

One Earth Energy, LLC

1306 West 8th Street

Gibson City, IL 60936

Attn: Steve Kelly

     14.12 Extent of Agreement. This Agreement and the Exhibits incorporated therein represent the
entire agreement between the Parties and may be amended only by written instrument signed by both
parties.

     14.13 Subrogation Waiver. The Parties waive all rights against each other, and against
contractors, Engineers, agents, and employees of the other for damages covered by any property
insurance during construction, and each shall require similar waivers from their contractors,
Engineers, and agents.

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     IN WITNESS WHEREOF, the Parties hereto have caused their names to be hereunto subscribed by their
officers thereunto duly authorized, intending thereby that this Agreement shall be effective as of
this July 20, 2006.

	 	 	 	 	 	 	 
	ONE EARTH ENERGY, LLC	 	FAGEN ENGINEERING LLC
	 
	 	 	 	 	 	 
	By:

	 	/s/ Steven Kelly
	 	By:
	 	/s/John R. Austgen
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Title:

	 	President
	 	Title:
	 	Sr. Vice President
	 
	 	 	 	 	 	 
	Address for giving notices:	 	Address for giving notices:
	 
	 	 	 	 	 	 
	1306 West 8th Street	 	501 West Highway 212
	Gibson City, IL 60936	 	PO Box 159
	 	 	 	 	Granite Falls, MN 56241

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EXHIBIT A

FAGEN ENGINEERING LLC

Fee Schedule FY 2006

CONFIDENTIAL

	 	 	 	 	 	 	 
	TYPICAL ASSIGNMENT	 	BILLING CLASS	 	BILLING RATE
	Clerical / CADD Operator

	 	 	1	 	 	[*]
	Clerical / CADD Operator

	 	 	2	 	 	[*]
	CADD Operator / Designer

	 	 	3	 	 	[*]
	CADD Operator / Designer / Engineer

	 	 	4	 	 	[*]
	Designer / Engineer / PM

	 	 	5	 	 	[*]
	Engineer / Senior Engineer / PM

	 	 	6	 	 	[*]
	Senior Engineer / PM

	 	 	7	 	 	[*]
	Senior Engineer / PM

	 	 	8	 	 	[*]
	Senior Engineer / PM / Principal

	 	 	9	 	 	[*]
	PM / Principal

	 	 	10	 	 	[*]
	Principal

	 	 	11	 	 	[*]
	Principal

	 	 	12	 	 	[*]
	Principal

	 	 	13	 	 	[*]

Subject to Revision January 1, 2007

 

			
	 	 	[*] Portion omitted pursuant to a request for confidential treatment and filed separately
with the Securities and Exchange Commission.

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EXHIBIT B

Fagen Engineering LLC

Reimbursable Expense Billing Schedule

Effective January 1, 2006

CONFIDENTIAL

	 	 	 	 	 
	Expense Code	 	Expense Description	 	Billing Rate
	BCA

	 	Blackline Print Copy – A
	 	[*]
	BCB

	 	Blackline Print Copy – B
	 	[*]
	BCC

	 	Blackline Print Copy – C
	 	[*]
	BCD

	 	Blackline Print Copy – D
	 	[*]
	BCE

	 	Blackline Print Copy – E
	 	[*]
	BOA

	 	Paper Print Original – A
	 	[*]
	BOB

	 	Paper Print Original – B
	 	[*]
	BOC

	 	Paper Print Original – C
	 	[*]
	BOD

	 	Paper Print Original – D
	 	[*]
	BOE

	 	Paper Print Original – E
	 	[*]
	DISK

	 	Floppy Disk 3 1/3” /ea
	 	[*]
	FAX

	 	Fax Machine Usage/Page
	 	[*]
	LD

	 	Long Distance Phone Calls
	 	[*]
	LODGING

	 	Lodging
	 	[*]
	MEALS

	 	Meal Expense
	 	[*]
	MILEAGE

	 	Mileage/Mile
	 	[*]
	PC1

	 	Photocopies 81/2 x11 (<1OO)/ea
	 	[*]
	PC2

	 	Photocopies 11 x 17/ea
	 	[*]
	PC3

	 	Photocopies (=100)/ea
	 	[*]
	PO

	 	Postage
	 	[*]
	PROSVC

	 	Outside Professional Services
	 	[*]
	PROSVCEXP

	 	Outside Professional Services Expenses
	 	[*]
	FLM

	 	Film & Developing
	 	[*]
	SPECCOV

	 	Specification Book–Cover Binder/ea Transportation
	 	[*]
	TRANS

	 	Delivery Service Charges
	 	[*]
	UPS

	 	Original Print/square foot
	 	[*]
	VELLUM

	 	 	 	[*]

Subject to Revision January 1, 2007

[*] Portion omitted pursuant to a request for confidential treatment and filed separately
with the Securities and Exchange Commission.

One Earth Energy, LLC

Phase I and Phase II Engineering Agreement

July 20, 2006

17

 

EXHIBIT C

Client Deliverable Site Obligations

Phase I Deliverables

     Prior to Engineer’s commencement of the Phase I Design Package work, the Client shall provide
Engineer with the following Phase I Deliverables:

	 	1.	 	A legal description of the Site
	 
	 	2.	 	Temporary and permanent easements, zoning, and other requirements and encumbrances
affecting land use or necessary to permit the proper design and construction of the Project
and enable Design-Builder to perform the Work
	 
	 	3.	 	To the extent available, as-built and record drawings of any existing structures at the
Site
	 
	 	4.	 	Environmental studies, reports and impact statements describing the environmental
conditions, including Hazardous conditions, in existence at the Site
	 
	 	5.	 	Topographic Survey to one (1) foot contours including property boundaries and at least
two (2) benchmarks including existing service and utility lines.
	 
	 	6.	 	Any special sizing or other requirements for ethanol storage tank farm.
	 
	 	7.	 	Preliminary approval from Client’s Rail service provider of rail design as prepared by
Client’s Rail Designer.
	 
	 	8.	 	Preliminary location and design of administration building.
	 
	 	9.	 	Client’s written approval of final site layout including rail design and environmental
permitting emission points.
	 
	 	10.	 	Soil borings logs for all soil borings complete at Engineer’s specified locations.
	 
	 	11.	 	Geotechnical Report regarding subsurface conditions with Client’s Geotechnical
Engineer’s recommendations from Engineer approved Geotechnical Engineer (Terracon is
preferred) including soil borings, and any other surveys or information available
describing other latent or concealed physical conditions at the Site.
	 
	 	12.	 	Review, comment, and written approval of Client’s air permit application.
	 
	 	13.	 	Owner is required to provide approval of and understand the cost implications of the
soil stabilization and foundation systems required for the project. This approval will be
based on the recommendations of the geotechnical and structural engineers.
	 
	 	14.	 	Location and form for delivery of temporary electrical service.
	 
	 	15.	 	On-site location for Storm Water discharge.
	 
	 	16.	 	Preliminary NPDES discharge location for water discharges from utility discharges
including, but not limited to the water pre-treatment system, water softeners, and cooling
tower blowdown.
	 
	 	17.	 	Preliminary indication of source, analysis, and location of Client’s water supply.
	 
	 	18.	 	Client’s risk insurance provider’s specific requirements for fire protection or
approval to design fire protection to Liberty Insurance standards.

One Earth Energy, LLC

Phase I and Phase II Engineering Agreement

July 20, 2006

18

 

Phase II Deliverables

     Prior to Engineer’s commencement of the Phase II Design Package work, the Client shall provide
Engineer with the following Phase II Deliverables:

	1.	 	Final location, source and quality of Client’s water supply.
	 
	2.	 	Off-site utility tie-in locations at or near the property lines (this includes, but is
not limited to, gas supply, electrical supply, water supply if no on-site wells, on-site or
off-site sanitary sewer)
	 
	3.	 	Final NPDES discharge location for Utility Water Blowdown.
	 
	4.	 	An insurance provider to allow the proper positioning and number of required hydrants
and hydrants with monitors.
	 
	5.	 	Written approval of final rail design form the Client’s rail service provider.
	 
	6.	 	Final location and design (general arrangement) of the Client’s administration
building.
	 
	7.	 	Final water pre-treatment design and operating parameters.
	 
	8.	 	Design and location of sanitary sewer discharge point of septic system.
	 
	9.	 	Provide verification that an application for a permit has been made for the
construction of a lined settling pond with wetland discharge for receiving the ethanol
plant non-contract waste streams and filter backwash (if applicable). The settling pond
maybe required for meeting the NPDES discharge limits set forth by the state. This
application process can take in excess of 6 months. Owner is required to apply for this
settling pond permit. A determination will be made upon receipt of the NPDES permit on
whether or not the settling pond is required for the project.

One Earth Energy, LLC

Phase I and Phase II Engineering Agreement

July 20, 2006

19

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