Document:

Exhibit 10.28
	 

	 Confidential
		treatment has been requested for portions of this exhibit. The copy filed
		herewith omits the information subject to the confidentiality request.
		Omissions are designated as [*]. A complete version of this exhibit has been
		filed separately with the Securities and Exchange Commission.  

	 

	  

	 DELTA-T
		LICENSE AGREEMENT

	  

	 
		LICENSE
		  OF
		  TECHNOLOGY

		BETWEEN

		DELTA-T
		  CORPORATION

		AND

		BUFFALO
		  LAKE
		  ENERGY,
		  LLC
 

	  

	 
		THIS
		  AGREEMENT, made
		  this 9th day of June, 2006 by and between Delta-T Corporation, a Virginia
		  corporation, with its principal place of business at 323 Alexander Lee Parkway,
		  Williamsburg, Virginia 23185 (hereinafter “Delta-T”), and Buffalo
		  Lake Energy, LLC, a Delaware limited liability company, with its principal
		  place of business at 337
		  McLaws Circle, Suite Two, Williamsburg,
		  Virginia 23185 (hereinafter “Owner”), each of which may be referred
		  to individually as a “Party,” or jointly as the
		  “Parties.”

	 

	  

	 
		WITNESSETH:

		

	  

	 
		WHEREAS,
		  Owner is
		  building an ethanol plant near Fairmont, Minnesota, (the “Plant”),
		  and 
 

	  

	 
		WHEREAS,
		  Owner
		  has contracted with TIC - The Industrial Company (“TIC” or “EPC
		  Contractor”) to design-build the Plant pursuant to an EPC Contract dated
		  June 9, 2006 (“EPC Contract”), and
 

	  

	 
		WHEREAS,
		  Delta-T
		  has agreed to provide engineering and related services related to construction
		  of the Plant based on Delta-T’s proprietary technology, but only on the
		  condition that Owner enter into this license agreement with Delta-T for the use
		  of such proprietary technology embodied therein, on the terms and conditions
		  set forth herein, 
 

	  

	 
		NOW,
		  THEREFORE,
		  in
		  consideration of the mutual covenants and conditions contained herein, and
		  other good and valuable consideration, the receipt and sufficiency of which is
		  hereby acknowledged, the Parties, intending to be legally bound, do hereby
		  agree as follows:
 

	 

		ARTICLE
		  I

		
		  DELTA-T
			 TECHNOLOGY

		   
 
 

	 As used
		in this Agreement, unless otherwise defined, the term “DELTA-T
		TECHNOLOGY” shall mean all information embodied in the Plant, or in any
		drawings or other documents in each such case as have been delivered by Delta-T
		to Owner, under this Agreement or the EPC Contract. DELTA-T TECHNOLOGY shall
		not, however,  

	  

	 	
			 
 	
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	 include
		information that Owner can demonstrate falls under one of the following
		exceptions:

	 

	 
		
		  	 	A.	
				  Was
					 known to it or in its possession prior to its receipt from Delta-T, except as a
					 result of a breach of an obligation of confidentiality;
 

 
 

	 

	 
		
		  	 	B.	
				  Is, or
					 after the date of this Agreement becomes, through no fault of its own, part of
					 the public domain or generally available to the public by publication, issuance
					 of a patent or otherwise; or
 

 
 

	 

	 
		
		  	 	C.	
				  Is
					 disclosed to Owner by someone other than Delta-T who is under no obligation not
					 to disclose it; or
 

 
 

	 

	 
		
		  	 	D.	
				  Is
					 independently developed by or on behalf of Owner without reference to the
					 Delta-T Technology.
 

 
 

	 

	 ARTICLE
		II

	 
		GRANT
		  OF
		  LICENSE

		

	 

	 Owner
		acknowledges that Delta-T is and shall remain the sole owner of the DELTA-T
		TECHNOLOGY, and of the copyrights in all the drawings, manuals and other
		documents provided by Delta-T under this Agreement. In consideration of
		Owner’s payment of a license fee of [  *   ]
		($[  *   ]) (“License Fee”), which shall be paid
		by Owner to EPC Contractor pursuant to the EPC Contract, or as provided at
		Article III below, Delta-T grants to Owner, subject to the conditions of this
		Agreement, a non-exclusive, paid-up, non-transferable right to use in
		perpetuity the DELTA-T TECHNOLOGY, without right to grant such rights to
		others, solely for the purposes of: 

	 

	 A.  operation
		of the Plant, and

	 B.  maintenance,
		optimization, enhancement and expansion of the Plant.

	 

	 Optimization
		and enhancement, for this purpose, shall include de-bottlenecking, but shall
		not include expanding the physical dimensions of the distillation columns or
		molsieve vessels included in the DELTA-T TECHNOLOGY, or adding to the original
		number of distillation columns or molsieve vessels specified in such design.
		This license shall not be assignable or otherwise transferrable in any way
		except that Owner may (i) assign it to a purchaser of substantially all of the
		assets of the Plant in connection with the sale of such Plant as a going
		business, provided that Owner gives Delta-T written notice of such transfer at
		least thirty (30) days prior to the date on which it becomes effective, and
		(ii) Owner may pledge its interest in this License to its lender or lenders
		provided that no lender shall have a right to sell or otherwise use or transfer
		any such rights except in connection with the sale of the Plant as a going
		business, and provided further that any such lender must give Delta-T prior
		notice of the effectiveness of such sale or transfer.

	  

	  

	 
		
		  	
				  * Certain
					 confidential information on this page has been omitted and filed separately
					 with the Securities and Exchange Commission.
 	
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		ARTICLE
		  III
 

	 
		COMPENSATION

		

	  

	 3.1
		Payment
		of Fee: The
		License Fee shall be paid by EPC Contractor to Delta-T according to the
		schedule described below. Provided, however, that in the event EPC Contractor
		shall fail to timely pay such License Fee or any portion thereof, Delta-T shall
		give prompt, written notice of such failure to Owner, and Owner shall have the
		right, but not the obligation, to cure such failure by paying such License Fee
		or corresponding portion to Delta-T within thirty (30) days from the date of
		such notice, and in such case this Agreement shall remain in
		effect

	 

	 3.2
		Amount
		and Payment Dates for License Fee: EPC
		Contractor is scheduled to pay the License Fee to DELTA-T at Final Completion
		as defined in the EPC Contract.

	  

	 ARTICLE
		IV

	 
		RESTRICTIONS
		  ON
		  ACCESS
		  AND
		  CONFIDENTIALITY

		

	 

	 4.1 Restrictions
		on Access: Until
		such time, if ever, that the DELTA-T TECHNOLOGY falls under one or more of the
		exceptions described at Article I above, and except as provided under Section
		4.2 below, Owner shall not permit any third party listed on Exhibit A or,
		without the consent of Delta-T, whose business is designing or constructing
		ethanol plants or who is an ethanol process technology provider, to have access
		to the DELTA-T TECHNOLOGY, either by means of documents embodying any such
		technology or by Inspection. Owner acknowledges that as of the date hereof
		third parties whose business is designing or constructing ethanol plants
		include those listed on Exhibit A. “Inspection” for the purposes of
		this Article IV shall mean any visual or other inspection of any portion of the
		Plant containing DELTA-T TECHNOLOGY in sufficient detail to reveal measurements
		of the components, configuration of piping and components, operating
		parameters, or access to software used to control such components.

	  

	 4.2 Confidentiality:

	 

	 4.2.1
		Disclosure: Owner
		shall not disclose any DELTA-T TECHNOLOGY, by Inspection or otherwise, to any
		person or entity other than (i) its employees, investors, officers, agents,
		advisors, contractors and subcontractors to the extent that they have a need to
		have access to such information to perform their obligations, and only if they
		have first been advised of the confidentiality of the information and agree to
		keep it confidential (in the case of contractors, subcontractors and
		third-party advisors, through a separately executed agreement in the form
		attached hereto as Exhibit B), and agree not to use or disclose it for any
		purpose other than fulfilling their obligations to Owner, and (ii) third
		parties, other than those identified on Exhibit A, as needed to maintain or
		operate the Plant as permitted under Article II above. Owner shall not disclose
		any DELTA- 

	  

	 
			
				

					
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	 T
		TECHNOLOGY for the purpose of maintenance or repair of the Plant to anyone
		other than its employees and routine maintenance providers who need to have
		access for those purposes unless it has first given Delta-T written notice of
		the specific maintenance or repair work that it wishes to accomplish and at
		least ten (10) business days to respond, or if the equipment is inoperable or
		the operation thereof is substantially impaired, at least 24 hours to respond.
		In no case shall Owner retain anyone other than Delta-T to do any such work
		that would involve disclosure of any DELTA-T TECHNOLOGY for an amount greater
		than, or within a time period longer than, the amount or time period within
		which Delta-T last offered to do such work. Furthermore, in no case shall Owner
		permit any employee or third party to view the internal portion of a molsieve
		installed at the Plant and based on the DELTA-T TECHNOLOGY unless it needs to
		do so due to malfunction of the molsieve, and Delta-T either fails to arrive at
		the Plant within thirty-six (36) hours after receipt of Owner’s request
		for repair of the molsieve or fails to repair the molsieve within three (3)
		days thereafter, or such longer period of time as is reasonably necessary to
		make the repair. Owner shall be allowed to contract with routine maintenance
		providers so long as the contractors comply with the confidentiality
		obligations specified herein.

	 

	 4.2.2
		Protection;
		Copies: Owner
		shall take all reasonable means to protect the confidentiality of the DELTA-T
		TECHNOLOGY. In particular, but without limitation, Owner shall not (i) make
		copies of any document containing any of the DELTA-T TECHNOLOGY except to the
		extent reasonably necessary to use such technology as permitted under this
		Agreement, (ii) deliver any such documents to any government agency for any
		purpose without complying with any applicable law or regulation necessary to
		protect the confidentiality of the same, or (iii) remove, obliterate or fail to
		reproduce on any copy of any such document any and all copyright and
		confidentiality notices printed thereon. Except as described herein, Owner
		shall not be required to take any affirmative action to protect DELTA-T
		TECHNOLOGY from inspection by any governmental agencies, but it shall notify
		Delta-T of any such demand as soon as reasonably practical. In the event that
		Owner receives more than forty-eight (48) hours advance notice of any
		inspection by a governmental agency, Owner will immediately inform Delta-T of
		such notice, will inform such governmental agency of the confidential nature of
		the DELTA-T TECHNOLOGY and will request that such governmental agency agree to
		protect the confidential nature of the same (provided that Owner shall have no
		responsibility or liability for the failure of any such governmental agency to
		comply with such request).

	 

	 4.2.3
		Use: Owner
		shall not use DELTA-T TECHNOLOGY except as permitted herein.

	 

	 4.2.4
		Court
		Order or Other Legal Process: In the
		event that any subpoena, request or demand (“Demand”) shall be served
		upon Owner under any court action, administrative or dispute resolution
		proceeding, for delivery or disclosure of any of the DELTA-T TECHNOLOGY, then
		Owner will promptly advise 

	  

	 
			
				

					
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	 Delta-T
		of such Demand and deliver to Delta-T a copy of such Demand and all
		documentation relating to such Demand and the proceeding in which it is made
		which is in the possession of Owner and is reasonably requested by Delta-T. The
		Parties shall consult with each other concerning any such Demand and Owner
		shall cooperate with Delta-T, as is reasonably necessary and practical, to
		minimize the disclosure of such technology by agreed protective order prepared
		and negotiated by Delta-T and the party making the Demand, or by other means
		not requiring Owner to contest or oppose the Demand. If Delta-T is not a party
		to the action or proceeding in which the Demand is served, and wishes to have
		the Demand opposed, then Owner will not object to Delta-T intervening in such
		action or proceeding for the purpose of opposing the Demand or minimizing the
		disclosure of the DELTA-T TECHNOLOGY. If Owner makes a disclosure of DELTA-T
		TECHNOLOGY pursuant to a Demand after complying in all material respects with
		the provisions of this Section 4.2.4, then such disclosure shall not be deemed
		a breach of this Agreement.

	 

	 4.2.3
		Injunctive
		Relief:
		Owner
		agrees that any breach of this Agreement shall cause Delta-T irreparable harm.
		Accordingly, and in addition to any other remedies that Delta-T may have at law
		or in equity, Delta-T shall be entitled to obtain injunctive relief against
		Owner to prevent any continuing breach, and without posting or filing any bond
		or other security. All costs, expenses and attorney’s fees resulting from
		the litigation or arbitration of any claim under this Agreement shall be paid
		by the losing party to the prevailing party.

	  

	 ARTICLE  V

	 Reserved

	 

	 ARTICLE  VI

	 
		INDEMNITY

		

	 
 

	  Delta-T
		shall, at its own cost and expense, (A) defend any suit or proceeding brought
		against Owner to the extent that it is based upon a claim that the Plant or the
		operation of the Plant or a portion thereof, when operated in accordance with
		Delta-T’s operating instructions provided to Owner, infringes any U.S.
		patent issued prior to the date of this Agreement due to the use of the DELTA-T
		TECHNOLOGY or any other infringement of any U.S. or foreign patent, trademark,
		trade secret, or proprietary info and (B) shall pay any award or damage
		assessed against Owner in any such suit or proceeding; provided,
		however, that
		(i) Owner gives Delta-T prompt notice in writing of any such claim of
		infringement and of the institution of any such suit or proceeding and (ii)
		Delta-T is given by Owner authority, information and assistance for the defense
		of same. Owner shall have the right to be represented at its cost and expense
		in any such suit or proceeding by additional advisory counsel of Owner’s
		choosing. If with respect to any such suit or proceeding, and to the extent
		caused by the use of the DELTA-T TECHNOLOGY, the Plant or the operation thereof
		(1) should be held to constitute infringement and also further operation
		of the Plant as completed or modified hereunder should be enjoined, 
		

	   
			
				

					
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	 Delta-T
		shall, or (2) if Delta-T should otherwise deem it advisable because of
		such suit or proceeding or threat thereof, Delta-T may, in either such case at
		Delta-T’s cost and expense (i) procure for Owner the right to continue
		operation of the Plant, or (ii) revise the DELTA-T TECHNOLOGY and modify the
		Plant so as to avoid infringement (the election between alternatives (i) and
		(ii) shall be at the discretion of Delta-T); provided, that
		in the event that Delta-T takes any such action pursuant to clause (2) of this
		sentence, Delta-T’s actions shall not interfere with the operation of the
		Plant. OWNER AGREES THAT DELTA-T SHALL NOT BE RESPONSIBLE FOR ANY
		CONSEQUENTIAL, EXEMPLARY, INCIDENTAL, PUNITIVE OR OTHER SPECIAL DAMAGES THAT
		ARISE AS A RESULT OF DEFENDING ANY SUCH SUIT OR THAT ARISE AS A RESULT OF ANY
		COURT ORDER OR SETTLEMENT ENTERED INTO RESOLVING SUCH SUIT.

	  

	 ARTICLE VII

	 
		LIMITATION
		  OF
		  LIABILITY

		

	 

	 In no
		case shall Delta-T have any responsibility for the acts or omission of any
		contractor, subcontractor, vendor or material suppliers of Owner, or any
		employee, agent or contractor of any of them, other than its own
		subcontractors, vendors, contractors, materials suppliers, employees, agents
		and contractors of any of them. In no event shall Delta-T have any liability to
		the Owner for any incidental, special, punitive or consequential loss or
		damage, including without limitation, damage resulting from claims, loss of
		use, loss of revenue, loss of profit, loss of contracts, loss of product or
		production, loss of business opportunity suffered or incurred by another party
		or any of their affiliates or co-venturers, howsoever arising out of or in
		connection with this agreement, or from the termination or breach hereof or any
		warranty made hereunder, other than for breaches of Article IV. In no case
		shall Delta-T’s or Owner’s cumulative liability under this Agreement,
		whether under Article VI or otherwise, including without limitation the cost of
		defense of any claim indemnifiable under Article VI, exceed $1
		million.

	 

	 ARTICLE VIII

	 
		TERMINATION

		

	 

	 This
		License Agreement shall automatically terminate upon termination of the EPC
		Contract for convenience of Owner or for material breach by Owner. This License
		Agreement shall also terminate upon termination of the EPC Contract for breach
		for any reason other than the fault of Delta-T if (and only if) the License Fee
		has not been paid to Delta-T; provided, that Delta-T gives Owner written notice
		of such non-payment and affords Owner a period of at least three (3) business
		days to pay the unpaid amount of the License Fee and, if such payment is made,
		this License Agreement shall continue in full force and effect. Upon
		termination of this License Agreement, Owner shall immediately return to
		Delta-T all documents embodying any DELTA-T TECHNOLOGY and shall cease all use
		of the DELTA-T TECHNOLOGY. To the extent DELTA-T TECHNOLOGY is embodied in
		equipment delivered to Owner prior to termination, Owner may sell the same, and
		display the same for sale, to persons other than those listed 

	  

	 
			
				

					
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	 on
		Exhibit A and those who are ethanol process technology providers and
		provided that any such purchaser agrees to be bound by the confidentiality
		provisions of this License Agreement; provided, that
		if any such proposed purchaser is an entity whose business is designing or
		constructing ethanol plants, such sale shall be subject to the consent of
		Delta-T (which consent shall be deemed given if Delta-T does not object within
		five (5) days of receipt of notice thereof by Delta-T). 

	 

	 ARTICLE IX

	 
		GENERAL
		  PROVISIONS

		

	 

	  9.1 Assignment:
		Except as provided for in Article II, no Party
		shall assign or transfer its rights, duties or obligations hereunder, except as
		expressly provided herein, without the prior written consent of the other. This
		Agreement shall be binding upon and shall inure to the benefit of the Parties
		hereto and to their successors and permitted assigns. 

	  

	  9.2 Merger;
		Waiver; Amendment: This
		Agreement constitutes the full and complete agreement among the Parties with
		respect to the subject matter hereof. There are no statements, agreements,
		understandings, representations or trade customs of any kind, express or
		implied, concerning the subject matter hereof which are not merged herein or
		superseded hereby. A waiver of any of the terms of this Agreement shall not
		bind any Party unless signed by one of its duly authorized representatives.
		Waiver by any Party of any default by the other hereunder shall not be deemed a
		waiver by such party of any default by the other which may occur thereafter.
		This Agreement may only be modified or amended by an agreement in writing
		executed by all Parties hereto. 

	  

	 9.3 Governing
		Law; Venue: The
		validity, performance, construction and effect of this Agreement shall be
		governed by the laws of the
		Commonwealth of Virginia, without regard to the choice of laws provisions
		thereof. 

	  

	 9.4 Notice: All
		notices provided for herein will be considered as properly given if in writing
		and delivered personally or by courier properly addressed:

	  

	 

		
		  	
				  If to
					 Owner, to:
 	
				  Bio Fuel
					 Energy, LLC
 
	
				   
 	
				  337
					 McLaws Circle, Suite Two
 
	
				   
 	
				  Williamsburg,
					 VA 23185
 
	
				   
 	
				  Attention:
					 Dan Simon
 
	
				   
 	
				   
 
	
				   
 	
				  With a
					 copy to:
 
	
				   
 	
				   
 
	
				   
 	
				  Chadbourne
					 and Parke LLP
 
	
				   
 	
				  1100
					 Louisiana Street, Suite 3500
 
	
				   
 	
				  Houston,
					 TX 77002
 
	
				   
 	
				  Attention:
					 Todd E. Alexander
 
	
				   
 	
				   
 
	
				  If to
					 Delta-T, to:
 	
				  Delta-T
					 Corporation
 

 

		 

		
		  	
				  

				  	
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				  323
					 Alexander Lee Parkway
 
	
				   
 	
				  Williamsburg,
					 VA 23185
 
	
				   
 	
				  Attn:
					 Mr. Robert L. Swain, Vice President
 

 

9.5 Survival:
		 The
		Parties’ obligations under the provisions of Articles IV, VI, VII and VIII
		shall survive the termination or expiration of this Agreement. 
		

	 

	 9.6 Severability: In the
		event any section, or any part or portion of any section of this Agreement
		shall be held to be invalid, void or otherwise unenforceable, such holding
		shall not affect the remaining part or portions of that section, or any other
		section hereof.

	 

	 

		IN
		  WITNESS
		  WHEREOF,
		  the
		  Parties have executed this Agreement to be effective on this 9th day of June,
		  2006 (the “Effective Date”).

	 

	  
			DELTA-T
				CORPORATION	 	BUFFALO
				LAKE
				ENERGY,
				LLC
	 	 	 	 	 
	By:	
				
				  /s/ R. L. Bibb Swain
				

			 	 	By:	
				
				  /s/ Daniel J. Simon
				

			 
	Printed

				Name:	
				
				  R. L. Bibb Swain
				

			 	 	Printed

				Name:	
				
				  Daniel J. Simon
				

			 
	Title:	
				
				  President
				

			 	 	Title:	
				
				  Executive Vice President and Chief Operating Officer
				

			 
	Date:	
				
				  June 9, 2006
				

			 	 	Date:	
				
				  June 9, 2006
				

			 

 

	   

	   

	 
			
				

					
				Page 8
				  of
				  8Exhibit 10.29
	 

	 Confidential
		treatment has been requested for portions of this exhibit. The copy filed
		herewith omits the information subject to the confidentiality request.
		Omissions are designated as [  *   ]. A complete version of
		this exhibit has been filed separately with the Securities and Exchange
		Commission.  

	 

	  

	 

	 DELTA-T
		LICENSE AGREEMENT

	 

		LICENSE OF TECHNOLOGY

		BETWEEN

		DELTA-T
		  CORPORATION

		AND

		PIONEER TRAIL,
		  LLC

		 
 

	 
		THIS
		  AGREEMENT, made
		  this 28th day of April, 2006 by and between Delta-T Corporation, a Virginia
		  corporation, with its principal place of business at 323 Alexander Lee Parkway,
		  Williamsburg, Virginia 23185 (hereinafter “Delta-T”), and Pioneer
		  Trail, LLC, a Delaware limited liability company, with its principal place of
		  business at 337
		  McLaws Circle, Suite Two, Williamsburg,
		  Virginia 23185 (hereinafter “Owner”), each of which may be referred
		  to individually as a “Party,” or jointly as the
		  “Parties.”
 

	 

	 WITNESSETH:

	  

	 
		WHEREAS,
		  Owner is
		  building an ethanol plant near Wood River, Nebraska, (the “Plant”),
		  and 
 

	  

	 
		WHEREAS,
		  Owner
		  has contracted with TIC
		  – The
		  Industrial Company (“TIC” or “EPC Contractor”) to
		  design-build the Plant pursuant to an EPC Contract dated April 28, 2006
		  (“EPC Contract”), and
 

	  

	 
		WHEREAS,
		  Delta-T
		  has agreed to provide engineering and related services related to construction
		  of the Plant based on Delta-T’s proprietary technology, but only on the
		  condition that Owner enter into this license agreement with Delta-T for the use
		  of such proprietary technology embodied therein, on the terms and conditions
		  set forth herein, 
 

	  

	 
		NOW,
		  THEREFORE,
		  in
		  consideration of the mutual covenants and conditions contained herein, and
		  other good and valuable consideration, the receipt and sufficiency of which is
		  hereby acknowledged, the Parties, intending to be legally bound, do hereby
		  agree as follows:
 

	  

	 
		ARTICLE
		  I
 

	 DELTA-T
		TECHNOLOGY

	  

	 As used
		in this Agreement, unless otherwise defined, the term “DELTA-T
		TECHNOLOGY” shall mean all information embodied in the Plant, or in any
		drawings or other documents in each such case as have been delivered by Delta-T
		to Owner, under this Agreement or the EPC Contract. DELTA-T TECHNOLOGY shall
		not, however, 

	  

	 
			
				

					
				Page 1 of
				  8
 
	
				

					 
	
				

					 

 

	  

	 
 
	  

	 include
		information that Owner can demonstrate falls under one of the following
		exceptions:

	 

	 
			 	A.	
				Was
				  known to it or in its possession prior to its receipt from Delta-T, except as a
				  result of a breach of an obligation of confidentiality;
 

 

	 

	 
			 	B.	
				Is, or
				  after the date of this Agreement becomes, through no fault of its own, part of
				  the public domain or generally available to the public by publication, issuance
				  of a patent or otherwise; or
 

 

	 

	 
			 	C.	
				Is
				  disclosed to Owner by someone other than Delta-T who is under no obligation not
				  to disclose it; or
 

 

	 

	 
			 	D.	
				Is
				  independently developed by or on behalf of Owner without reference to the
				  Delta-T Technology.
 

 

	 

	 ARTICLE
		II

	 
		GRANT OF
		  LICENSE

		

	 

	 Owner
		acknowledges that Delta-T is and shall remain the sole owner of the DELTA-T
		TECHNOLOGY, and of the copyrights in all the drawings, manuals and other
		documents provided by Delta-T under this Agreement. In consideration of
		Owner’s payment of a license fee of [  *   ]
		($[  *   ]) (“License Fee”), which shall be paid
		by Owner to EPC Contractor pursuant to the EPC Contract, or as provided at
		Article III below, Delta-T grants to Owner, subject to the conditions of this
		Agreement, a non-exclusive, paid-up, non-transferable right to use in
		perpetuity the DELTA-T TECHNOLOGY, without right to grant such rights to
		others, solely for the purposes of:

	 

	 A. operation
		of the Plant, and

	 

	 B. maintenance,
		optimization, enhancement and expansion of the Plant.

	 

	 Optimization
		and enhancement, for this purpose, shall include de-bottlenecking, but shall
		not include expanding the physical dimensions of the distillation columns or
		molsieve vessels included in the DELTA-T TECHNOLOGY, or adding to the original
		number of distillation columns or molsieve vessels specified in such design.
		This license shall not be assignable or otherwise transferrable in any way
		except that Owner may (i) assign it to a purchaser of substantially all of the
		assets of the Plant in connection with the sale of such Plant as a going
		business, provided that Owner gives Delta-T written notice of such transfer at
		least thirty (30) days prior to the date on which it becomes effective, and
		(ii) Owner may pledge its interest in this License to its lender or lenders
		provided that no lender shall have a right to sell or otherwise use or transfer
		any such rights except in connection with the sale of the Plant as a going
		business, and provided further that any such lender must give Delta-T prior
		notice of the effectiveness of such sale or transfer.

	  

	 
			
				* Certain
				  confidential information on this page has been omitted and filed separately
				  with the Securities and Exchange Commission.
 	
				Page 2 of
				  8
 
	
				

					 
	
				
 	 

 

	  

	 
 
	  

	 
		ARTICLE
		  III

		
		  
			 COMPENSATION

			  
 
 
 

	 3.1
		Payment
		of Fee: The
		License Fee shall be paid by EPC Contractor to Delta-T according to the
		schedule described below. Provided, however, that in the event EPC Contractor
		shall fail to timely pay such License Fee or any portion thereof, Delta-T shall
		give prompt, written notice of such failure to Owner, and Owner shall have the
		right, but not the obligation, to cure such failure by paying such License Fee
		or corresponding portion to Delta-T within thirty (30) days from the date of
		such notice, and in such case this Agreement shall remain in
		effect

	 

	 3.2
		Amount
		and Payment Dates for License Fee: EPC
		Contractor is scheduled to pay the License Fee to DELTA-T at Final Completion
		as defined in the EPC Contract.

	  

	 ARTICLE IV

	 
		RESTRICTIONS
		  ON
		  ACCESS
		  AND
		  CONFIDENTIALITY

		

	 4.1 Restrictions
		on Access: Until
		such time, if ever, that the DELTA-T TECHNOLOGY falls under one or more of the
		exceptions described at Article I above, and except as provided under Section
		4.2 below, Owner shall not permit any third party listed on Exhibit A or,
		without the consent of Delta-T, whose business is designing or constructing
		ethanol plants or who is an ethanol process technology provider, to have access
		to the DELTA-T TECHNOLOGY, either by means of documents embodying any such
		technology or by Inspection. Owner acknowledges that as of the date hereof
		third parties whose business is designing or constructing ethanol plants
		include those listed on Exhibit A. “Inspection” for the purposes of
		this Article IV shall mean any visual or other inspection of any portion of the
		Plant containing DELTA-T TECHNOLOGY in sufficient detail to reveal measurements
		of the components, configuration of piping and components, operating
		parameters, or access to software used to control such components.

	  

	 4.2 Confidentiality:

	 

	 4.2.1
		Disclosure: Owner
		shall not disclose any DELTA-T TECHNOLOGY, by Inspection or otherwise, to any
		person or entity other than (i) its employees, investors, officers, agents,
		advisors, contractors and subcontractors to the extent that they have a need to
		have access to such information to perform their obligations, and only if they
		have first been advised of the confidentiality of the information and agree to
		keep it confidential (in the case of contractors, subcontractors and
		third-party advisors, through a separately executed agreement in the form
		attached hereto as Exhibit B), and agree not to use or disclose it for any
		purpose other than fulfilling their obligations to Owner, and (ii) third
		parties, other than those identified on Exhibit A, as needed to maintain or
		operate the Plant as permitted under Article II above. Owner shall not disclose
		any DELTA-

	  

	 
		
		  
			 	
					 

					 	
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	 T
		TECHNOLOGY for the purpose of maintenance or repair of the Plant to anyone
		other than its employees and routine maintenance providers who need to have
		access for those purposes unless it has first given Delta-T written notice of
		the specific maintenance or repair work that it wishes to accomplish and at
		least ten (10) business days to respond, or if the equipment is inoperable or
		the operation thereof is substantially impaired, at least 24 hours to respond.
		In no case shall Owner retain anyone other than Delta-T to do any such work
		that would involve disclosure of any DELTA-T TECHNOLOGY for an amount greater
		than, or within a time period longer than, the amount or time period within
		which Delta-T last offered to do such work. Furthermore, in no case shall Owner
		permit any employee or third party to view the internal portion of a molsieve
		installed at the Plant and based on the DELTA-T TECHNOLOGY unless it needs to
		do so due to malfunction of the molsieve, and Delta-T either fails to arrive at
		the Plant within thirty-six (36) hours after receipt of Owner’s request
		for repair of the molsieve or fails to repair the molsieve within three (3)
		days thereafter, or such longer period of time as is reasonably necessary to
		make the repair. Owner shall be allowed to contract with routine maintenance
		providers so long as the contractors comply with the confidentiality
		obligations specified herein.

	 

	 4.2.2
		Protection;
		Copies: Owner
		shall take all reasonable means to protect the confidentiality of the DELTA-T
		TECHNOLOGY. In particular, but without limitation, Owner shall not (i) make
		copies of any document containing any of the DELTA-T TECHNOLOGY except to the
		extent reasonably necessary to use such technology as permitted under this
		Agreement, (ii) deliver any such documents to any government agency for any
		purpose without complying with any applicable law or regulation necessary to
		protect the confidentiality of the same, or (iii) remove, obliterate or fail to
		reproduce on any copy of any such document any and all copyright and
		confidentiality notices printed thereon. Except as described herein, Owner
		shall not be required to take any affirmative action to protect DELTA-T
		TECHNOLOGY from inspection by any governmental agencies, but it shall notify
		Delta-T of any such demand as soon as reasonably practical. In the event that
		Owner receives more than forty-eight (48) hours advance notice of any
		inspection by a governmental agency, Owner will immediately inform Delta-T of
		such notice, will inform such governmental agency of the confidential nature of
		the DELTA-T TECHNOLOGY and will request that such governmental agency agree to
		protect the confidential nature of the same (provided that Owner shall have no
		responsibility or liability for the failure of any such governmental agency to
		comply with such request).

	 

	 4.2.3
		Use: Owner
		shall not use DELTA-T TECHNOLOGY except as permitted herein.

	 

	 4.2.4
		Court
		Order or Other Legal Process: In the
		event that any subpoena, request or demand (“Demand”) shall be served
		upon Owner under any court action, administrative or dispute resolution
		proceeding, for delivery or disclosure of any of the DELTA-T TECHNOLOGY, then
		Owner will promptly advise 

	 
		

		  
			 	
					 

					 	
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	 Delta-T
		of such Demand and deliver to Delta-T a copy of such Demand and all
		documentation relating to such Demand and the proceeding in which it is made
		which is in the possession of Owner and is reasonably requested by Delta-T. The
		Parties shall consult with each other concerning any such Demand and Owner
		shall cooperate with Delta-T, as is reasonably necessary and practical, to
		minimize the disclosure of such technology by agreed protective order prepared
		and negotiated by Delta-T and the party making the Demand, or by other means
		not requiring Owner to contest or oppose the Demand. If Delta-T is not a party
		to the action or proceeding in which the Demand is served, and wishes to have
		the Demand opposed, then Owner will not object to Delta-T intervening in such
		action or proceeding for the purpose of opposing the Demand or minimizing the
		disclosure of the DELTA-T TECHNOLOGY. If Owner makes a disclosure of DELTA-T
		TECHNOLOGY pursuant to a Demand after complying in all material respects with
		the provisions of this Section 4.2.4, then such disclosure shall not be deemed
		a breach of this Agreement.

	 

	 4.2.3
		Injunctive
		Relief:
		Owner
		agrees that any breach of this Agreement shall cause Delta-T irreparable harm.
		Accordingly, and in addition to any other remedies that Delta-T may have at law
		or in equity, Delta-T shall be entitled to obtain injunctive relief against
		Owner to prevent any continuing breach, and without posting or filing any bond
		or other security. All costs, expenses and attorney’s fees resulting from
		the litigation or arbitration of any claim under this Agreement shall be paid
		by the losing party to the prevailing party.

	  

	 ARTICLE
		V

	 Reserved

	 

	 ARTICLE
		VI

	 
		INDEMNITY

		

	  Delta-T
		shall, at its own cost and expense, (A) defend any suit or proceeding brought
		against Owner to the extent that it is based upon a claim that the Plant or the
		operation of the Plant or a portion thereof, when operated in accordance with
		Delta-T’s operating instructions provided to Owner, infringes any U.S.
		patent issued prior to the date of this Agreement due to the use of the DELTA-T
		TECHNOLOGY or any other infringement of any U.S. or foreign patent, trademark,
		trade secret, or proprietary info and (B) shall pay any award or damage
		assessed against Owner in any such suit or proceeding; provided,
		however, that
		(i) Owner gives Delta-T prompt notice in writing of any such claim of
		infringement and of the institution of any such suit or proceeding and (ii)
		Delta-T is given by Owner authority, information and assistance for the defense
		of same. Owner shall have the right to be represented at its cost and expense
		in any such suit or proceeding by additional advisory counsel of Owner’s
		choosing. If with respect to any such suit or proceeding, and to the extent
		caused by the use of the DELTA-T TECHNOLOGY, the Plant or the operation thereof
		(1) should be held to constitute infringement and also further operation
		of the Plant as completed or modified hereunder should be enjoined,
		

	 
		

		  
			 	
					 

					 	
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	 Delta-T
		shall, or (2) if Delta-T should otherwise deem it advisable because of
		such suit or proceeding or threat thereof, Delta-T may, in either such case at
		Delta-T’s cost and expense (i) procure for Owner the right to continue
		operation of the Plant, or (ii) revise the DELTA-T TECHNOLOGY and modify the
		Plant so as to avoid infringement (the election between alternatives (i) and
		(ii) shall be at the discretion of Delta-T); provided, that
		in the event that Delta-T takes any such action pursuant to clause (2) of this
		sentence, Delta-T’s actions shall not interfere with the operation of the
		Plant. OWNER AGREES THAT DELTA-T SHALL NOT BE RESPONSIBLE FOR ANY
		CONSEQUENTIAL, EXEMPLARY, INCIDENTAL, PUNITIVE OR OTHER SPECIAL DAMAGES THAT
		ARISE AS A RESULT OF DEFENDING ANY SUCH SUIT OR THAT ARISE AS A RESULT OF ANY
		COURT ORDER OR SETTLEMENT ENTERED INTO RESOLVING SUCH SUIT.

	  

	 ARTICLE
		VII

	 
		LIMITATION
		  OF
		  LIABILITY

		

	 In no
		case shall Delta-T have any responsibility for the acts or omission of any
		contractor, subcontractor, vendor or material suppliers of Owner, or any
		employee, agent or contractor of any of them, other than its own
		subcontractors, vendors, contractors, materials suppliers, employees, agents
		and contractors of any of them. In no event shall Delta-T have any liability to
		the Owner for any incidental, special, punitive or consequential loss or
		damage, including without limitation, damage resulting from claims, loss of
		use, loss of revenue, loss of profit, loss of contracts, loss of product or
		production, loss of business opportunity suffered or incurred by another party
		or any of their affiliates or co-venturers, howsoever arising out of or in
		connection with this agreement, or from the termination or breach hereof or any
		warranty made hereunder, other than for breaches of Article IV. In no case
		shall Delta-T’s or Owner’s cumulative liability under this Agreement,
		whether under Article VI or otherwise, including without limitation the cost of
		defense of any claim indemnifiable under Article VI, exceed $1
		million.

	 

	 ARTICLE
		VIII

	 
		TERMINATION

		

	 

	 This
		License Agreement shall automatically terminate upon termination of the EPC
		Contract for convenience of Owner or for material breach by Owner. This License
		Agreement shall also terminate upon termination of the EPC Contract for breach
		for any reason other than the fault of Delta-T if (and only if) the License Fee
		has not been paid to Delta-T; provided, that Delta-T gives Owner written notice
		of such non-payment and affords Owner a period of at least three (3) business
		days to pay the unpaid amount of the License Fee and, if such payment is made,
		this License Agreement shall continue in full force and effect. Upon
		termination of this License Agreement, Owner shall immediately return to
		Delta-T all documents embodying any DELTA-T TECHNOLOGY and shall cease all use
		of the DELTA-T TECHNOLOGY. To the extent DELTA-T TECHNOLOGY is embodied in
		equipment delivered to Owner prior to termination, Owner may sell the same, and
		display the same for sale, to persons other than those listed 

	 
		
		  

			 
					
						

							
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	 on
		Exhibit A and those who are ethanol process technology providers and
		provided that any such purchaser agrees to be bound by the confidentiality
		provisions of this License Agreement; provided, that
		if any such proposed purchaser is an entity whose business is designing or
		constructing ethanol plants, such sale shall be subject to the consent of
		Delta-T (which consent shall be deemed given if Delta-T does not object within
		five (5) days of receipt of notice thereof by Delta-T). 

	 

	 ARTICLE
		IX

	 
		GENERAL
		  PROVISIONS

		

	 

	  9.1 Assignment:
		Except as provided for in Article II, no Party
		shall assign or transfer its rights, duties or obligations hereunder, except as
		expressly provided herein, without the prior written consent of the other. This
		Agreement shall be binding upon and shall inure to the benefit of the Parties
		hereto and to their successors and permitted assigns. 

	  

	  9.2 Merger;
		Waiver; Amendment: This
		Agreement constitutes the full and complete agreement among the Parties with
		respect to the subject matter hereof. There are no statements, agreements,
		understandings, representations or trade customs of any kind, express or
		implied, concerning the subject matter hereof which are not merged herein or
		superseded hereby. A waiver of any of the terms of this Agreement shall not
		bind any Party unless signed by one of its duly authorized representatives.
		Waiver by any Party of any default by the other hereunder shall not be deemed a
		waiver by such party of any default by the other which may occur thereafter.
		This Agreement may only be modified or amended by an agreement in writing
		executed by all Parties hereto. 

	  

	 9.3 Governing
		Law; Venue: The
		validity, performance, construction and effect of this Agreement shall be
		governed by the laws  
		of the
		Commonwealth of Virginia, without regard to the choice of laws provisions
		thereof.  

	  

	 9.4 Notice: All
		notices provided for herein will be considered as properly given if in writing
		and delivered personally or by courier properly addressed:

	 

		
		  	
				  If to
					 Owner, to:
 	
				  Bio Fuel
					 Energy, LLC
 
	 	
				  337
					 McLaws Circle, Suite Two
 
	 	
				  Williamsburg,
					 VA 23185
 
	 	
				  Attention:
					 Dan Simon
 
	 	 
	 	
				  With a
					 copy to:
 
	 	 
	 	
				  Chadbourne
					 and Parke LLP
 
	 	
				  1100
					 Louisiana Street, Suite 3500
 
	 	
				  Houston,
					 TX 77002
 
	 	
				  Attention:
					 Todd E. Alexander
 
	 	 
	
				  If to
					 Delta-T, to:
 	
				  Delta-T
					 Corporation
 

 

		 
		  
			 
				
				  
					 	
							 

							 	
							 Page 7 of
								8
 
	
							 

							 	 
	
							 

							 	 

 
 

				 
 
 

		  
 
 

		
		  	 	
				  323
					 Alexander Lee Parkway
 
	 	
				  Williamsburg,
					 VA 23185
 
	 	
				  Attn:
					 Mr. Robert L. Swain, Vice President
 

 
 

	  

	 9.5 Survival:
		 The
		Parties’ obligations under the provisions of Articles IV, VI, VII and VIII
		shall survive the termination or expiration of this Agreement. 
		

	 

	 9.6 Severability: In the
		event any section, or any part or portion of any section of this Agreement
		shall be held to be invalid, void or otherwise unenforceable, such holding
		shall not affect the remaining part or portions of that section, or any other
		section hereof.

	 

	 

		IN
		  WITNESS
		  WHEREOF,
		  the
		  Parties have executed this Agreement to be effective on this 28th day of April
		  (the “Effective Date”).
 

	  

	 
			
				
				  
					 DELTA-T
						CORPORATION

					 
 
 	 	
				
				  PIONEER TRAIL,
					 LLC

				  
 
	
				 

				By:

					 /s/ R. L. Bibb Swain 
	 	
				 

				By:

					 /s/ Daniel J. Simon

	
				Printed

				Name:

					 R. L. Bibb Swain
	 	
				Printed

				Name:

					 Daniel J. Simon

	
				 

				Title:

					 President
	 	
				 

				Title:

					 Executive Vice President and Chief Operating
				Officer

	
				 

				Date:

					 April 28, 2006
	 	
				 

				Date:

					April 28, 2006

 

	 
		
		  

			 
					
						

							
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