Document:

Exhibit 10.9

PHASE I AND PHASE II

ENGINEERING SERVICES AGREEMENT

BETWEEN

AKRON RIVERVIEW CORN PROCESSORS, LLC

AND

FAGEN ENGINEERING, LLC

March
14, 2007

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the
United States Securities and Exchange Commission.

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 1

  	
  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

  	
   

  	
  5

  
	
  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

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
  Client’s Representative

  	
   

  	
  6

  
	
  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

  	
   

  	
  7

  
	
  4.8

  	
  Other Services

  	
   

  	
  7

  
	
  4.9

  	
  Services Outside Scope of Engineer’s Services

  	
   

  	
  7

  
	
  4.10

  	
  Deviation from Design

  	
   

  	
  7

  
	
  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

  	
   

  	
  8

  
	
  5.4

  	
  Fees for Work Outside Scope of Services

  	
   

  	
  8

  
	
  5.5

  	
  Collection of Unpaid Amounts

  	
   

  	
  8

  
	
  5.6

  	
  Reimbursement Schedules Subject to Change

  	
   

  	
  8

  
	
  5.7

  	
  Invoices

  	
   

  	
  8

  

 

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the
United States Securities and Exchange Commission.

 i
 

 

	
  

  	
   

  	
   

  	
  Page

  
	
  5.8

  	
  Payment

  	
   

  	
  8

  
	
  5.9

  	
  Late Payment and Interest

  	
   

  	
  8

  
	
  5.10

  	
  Suspension for Failure to Pay

  	
   

  	
  8

  
	
  5.11

  	
  Payment

  	
   

  	
  8

  
	
  5.12

  	
  Withholding Payments

  	
   

  	
  8

  
	
  5.13

  	
  Purchase Orders

  	
   

  	
  9

  
	
  5.14

  	
  Changes in Project

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 6

  	
  Construction Cost And Cost Estimates

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  6.1

  	
  Cost Estimates

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 7

  	
  Termination

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  7.1

  	
  Termination Upon Default

  	
   

  	
  9

  
	
  7.2

  	
  Termination Upon Abandonment of Plant

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 8

  	
  Ownership of Work Product

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  8.1

  	
  Work Product

  	
   

  	
  10

  
	
  8.2

  	
  Copies Provided to Client

  	
   

  	
  10

  
	
  8.3

  	
  Prohibited Use of Work Product

  	
   

  	
  10

  
	
  8.4

  	
  Derogation of Engineer’s Rights to Work Product

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  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

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  10.1

  	
  No Warranty Extended

  	
   

  	
  11

  
	
  10.2

  	
  No Responsibility for Construction

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 11

  	
  Indemnification

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  11.1

  	
  Engineer’s Indemnification

  	
   

  	
  11

  
	
  11.2

  	
  Client’s Indemnification

  	
   

  	
  11

  
	
  11.3

  	
  Hazardous Materials Indemnification

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 12

  	
  Dispute Resolution

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  12.1

  	
  Arbitration

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 13

  	
  Confidentiality

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  13.1

  	
  Non-Disclosure Obligation

  	
   

  	
  13

  
	
  13.2

  	
  Publicity and Advertising

  	
   

  	
  13

  

 

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the United
States Securities and Exchange Commission.

 ii
 

 

	
  

  	
   

  	
   

  	
  Page

  
	
  13.3

  	
  Term of Obligation

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 14

  	
  Miscellaneous

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  14.1

  	
  Governing Law

  	
   

  	
  13

  
	
  14.2

  	
  Severability

  	
   

  	
  14

  
	
  14.3

  	
  No Waiver

  	
   

  	
  14

  
	
  14.4

  	
  Captions and Headings

  	
   

  	
  14

  
	
  14.5

  	
  Engineer’s Accounting Records

  	
   

  	
  14

  
	
  14.6

  	
  Counterparts

  	
   

  	
  14

  
	
  14.7

  	
  Survival

  	
   

  	
  14

  
	
  14.8

  	
  No Privity with Client’s Contractors

  	
   

  	
  14

  
	
  14.9

  	
  Amendments

  	
   

  	
  14

  
	
  14.10

  	
  Entire Agreement

  	
   

  	
  14

  
	
  14.11

  	
  Notice

  	
   

  	
  15

  
	
  14.12

  	
  Extent of Agreement

  	
   

  	
  15

  
	
  14.13

  	
  Subrogation Waiver

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
  Reimbursement Schedule

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT B

  	
  Reimbursable Expense Schedule

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT C

  	
  Client’s Deliverable Site Obligations

  	
   

  	
  21

  
					

 

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the
United States Securities and Exchange Commission.

 

 iii

PHASE I AND PHASE II

ENGINEERING
SERVICES AGREEMENT

THIS PHASE I AND PHASE II ENGINEERING
SERVICES AGREEMENT (the “Agreement”) is made as of
March 14, 2007, (the “Effective Date”) by and between Akron Riverview
Corn Processors, LLC, an Iowa 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 one hundred (100) million gallons per year dry grind ethanol
production facility to be located in Akron, Iowa (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 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:

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the
United States Securities and Exchange Commission.

 

 1
 

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

(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.

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the
United States Securities and Exchange Commission.

 

 2
 

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.

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

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

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

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

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the
United States Securities and Exchange Commission.

 

 3
 

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

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)

g)             Geometric layout
drawing (includes contractor’s trailer, parking and laydown areas)

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 sixty (60)
days after the receipt of all the Phase I Owner 

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the
United States Securities and Exchange Commission.

 

 4
 

Deliverables,
however, the sixty (60) day time frame provided in this section will commence
no sooner than June 14, 2007.

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

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 sixty (60)
days after the receipt of all Phase II Owner Deliverables, but no earlier than
sixty (60) days after delivery of the Phase I Design Package.

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 

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the
United States Securities and Exchange Commission.

 

 5
 

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 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.  Engineer shall be compensated as
set forth in Section 5.4 of this Agreement for any and all Client requirements
which are agreed to by Engineer and incorporated into the Phase I Design
Package and Phase II Design Package.

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.

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the
United States Securities and Exchange Commission.

 

 6
 

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 the 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
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.

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 One Hundred
Eighty-five Thousand Dollars ($185,000.00) (“Fixed Fee”) as
compensation.  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 as Exhibit B.

 

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the
United States Securities and Exchange Commission.

 

 7
 

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
Articles 3 and 4, including change order work and acceptable Client
requirements, shall be computed in accordance with Engineer’s current fee
schedules, attached hereto as Exhibits A and B, as such schedules may be
revised from time to time, unless otherwise agreed to in writing.  Any compensation paid to Engineer pursuant to
this Section 5.4 shall not be included in or credited to the Design-Build
Agreement’s contract price.

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.

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 the 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 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.

* Portions of this exhibit have been omitted pursuant
to a request for confidential treatment and have been filed with the United
States Securities and Exchange Commission.

 

 8
 

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 or 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.

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.

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the
United States Securities and Exchange Commission.

 

 9
 

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.

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

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the
United States Securities and Exchange Commission.

 

 10
 

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.

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, 

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the
United States Securities and Exchange Commission.

 

 11
 

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.  The mediation shall be
conducted in Minneapolis, Minnesota by a 
mutually agreeable impartial mediator or, if the Parties cannot so
agree, a mediator designated by the American Arbitration Association pursuant
to its Construction Industry Arbitration Rules and Mediation Procedures.  The mediation will be governed by and
conducted pursuant to a mediation agreement negotiated by the Parties or, if
the Parties cannot so agree, by procedures established by the mediator.  Mediation is a condition precedent to
arbitration, unless the Parties agree otherwise.

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.  A
demand for arbitration shall be made within a reasonable time after the dispute
has arisen, and in no event shall it be made after the date when institution of
legal or equitable proceedings based on such dispute would be barred by the
applicable statute of limitations.  The
arbitration shall be governed by the Federal Arbitration Act.

The award of the arbitrator(s)
shall be final and binding upon the Parties. 
Judgment may be entered upon it 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.

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the
United States Securities and Exchange Commission.

 

 12
 

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, design drawings, specifications,
inventions, ideas, or other information that is received from Engineer pursuant
to this Agreement or the Parties’ relationship prior thereto or is developed
pursuant to this Agreement, without the express written consent of Engineer,
which consent shall not be unreasonably withheld.  The Client 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 Client for performing its
obligations hereunder and if prior to such disclosure, the Client 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 Client prior to
receipt from Engineer, that is now or hereafter becomes a part of the public
domain through no fault of the Client, or that corresponds in substance to
information heretofore or hereafter furnished by third parties without
restriction on disclosure.

13.2        Publicity and
Advertising.  Client shall
make or permit any of its 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 Engineer unless prior written consent is obtained
from the Engineer, 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.

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the
United States Securities and Exchange Commission.

 

 13
 

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 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 

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the
United States Securities and Exchange Commission.

 

 14
 

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 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: Terrin Torvik

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:

Akron Riverview Corn
Processors, LLC

4808 F Avenue

Marcus, IA  51035

Attention: Steve Roe

Fax: (712) 376-2815

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.

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the
United States Securities and Exchange Commission.

 

 15
 

14.13      Subrogation Waiver.  The Parties waive all rights against each
other, and against the 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.

[THE NEXT PAGE IS
THE SIGNATURE PAGE]

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the
United States Securities and Exchange Commission.

 

 16

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 March 14,
2007.

	
  CLIENT:

  	
  ENGINEER:

  
	
   

  	
   

  
	
  Akron Riverview Corn Processors, LLC

  	
   

  	
  Fagen Engineering, LLC

  
	
  (Name of Owner)

  	
  (Name of Design-Builder)

  
	
   

  	
   

  
	
  /s/ Stephen G.
  Roe

  	
   

  	
  /s/ Terrin B.
  Torvik

  
	
  (Signature)

  	
  (Signature)

  
	
   

  	
   

  
	
  Stephen G. Roe

  	
   

  	
  Terrin B. Torvik

  
	
  (Printed Name)

  	
  (Printed Name)

  
	
   

  	
   

  
	
  President

  	
   

  	
  Senior Vice
  President

  
	
  (Title)

  	
  (Title)

  
	
   

  	
   

  
	
  Date:

  	
   

  	
  3/19/07

  	
   

  	
  Date:

  	
   

  	
  3/21/07

  
							

 

* Portions of this exhibit have
been omitted pursuant to a request for confidential treatment and have been
filed with the United States Securities and Exchange Commission.

 17
 

EXHIBIT A

Reimbursement
Schedule

FAGEN
ENGINEERING LLC

Fee
Schedule FY 2007

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, 2008

 18
 

EXHIBIT
B

Reimbursable
Expense Schedule

Fagen Engineering LLC

Reimbursable
Expense Billing Schedule

Effective
January 1, 2007

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 31⁄2”/ea

  	
   

  	
  [*]

  
	
  FAX

  	
   

  	
  Fax Machine Usage/Page

  	
   

  	
  [*]

  
	
  LD

  	
   

  	
  Long Distance Phone Calls

  	
   

  	
  [*]

  
	
  LODGING

  	
   

  	
  Lodging

  	
   

  	
  [*]

  
	
  MEALS

  	
   

  	
  Meal Expense

  	
   

  	
  [*]

  
	
  MILEAGE

  	
   

  	
  Mileage/Mile

  	
   

  	
  [*]

  
	
  PC1

  	
   

  	
  Photocopies 81⁄2x11 (<100)/ea

  	
   

  	
  [*]

  
	
  PC2

  	
   

  	
  Photocopies 11x17/ea

  	
   

  	
  [*]

  
	
  PC3

  	
   

  	
  Photocopies 8(1/2)x11 (>100)/ea

  	
   

  	
  [*]

  
	
  PO

  	
   

  	
  Postage

  	
   

  	
  [*]

  
	
  PROSVC

  	
   

  	
  Outside Professional Services

  	
   

  	
  [*]

  
	
  PROSVCEXP

  	
   

  	
  Outside Professional Services Expenses

  	
   

  	
  [*]

  
	
  FLM

  	
   

  	
  Film & Developing

  	
   

  	
  [*]

  
	
  SPECCOV

  	
   

  	
  Specification Book - Cover & Binder/ea

  	
   

  	
  [*]

  
	
  TRANS

  	
   

  	
  Transportation

  	
   

  	
  [*]

  
	
  UPS

  	
   

  	
  Delivery Service Charges

  	
   

  	
  [*]

  
	
  VELLUM

  	
   

  	
  Original Print/square foot

  	
   

  	
  [*]

  

 

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the
United States Securities and Exchange Commission.

 

 19
 

Subject
to Revision January 1, 2008

 

 

 

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the
United States Securities and Exchange Commission.

 20
 

EXHIBIT C

Client’s
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.         Final 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.

19.         Construction of a lined
settling pond with wetland discharge for receiving the ethanol plant
non-contact waste streams and filter backwash (if applicable) is required. Provide

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the
United States Securities and Exchange Commission.

 

 21
 

verification
that an application for a permit to construct the settling pond has been
applied for.  The approval process can
take in excess of 6 months.  Pond
construction cannot begin until receipt of permit.

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the
United States Securities and Exchange Commission.

 22
 

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.               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)

2.               Final NPDES
discharge location for Utility Water Blowdown.

3.               An insurance
provider to allow the proper positioning and number of required hydrants and
hydrants with monitors.

4.               Written approval of
final rail design from the Client’s rail service provider.

5.               Final location and
design (general arrangement) of the Client’s administration building.

6.               Owner is to execute
side-letter agreements with Design-Builder as necessary for the design and
construction of a water pre-treatment as outlined in Exhibit C of the
Design/Build Contract.

7.               Design and location
of sanitary sewer discharge point of septic system.

* Portions of this exhibit have been omitted
pursuant to a request for confidential treatment and have been filed with the
United States Securities and Exchange Commission.

 23Exhibit
10.10

[Yaggy Colby 

Associates
Logo]

March 22, 2007

Steve Roe, General Manager

Akron Riverview Corn Processors

c/o Little Sioux Corn Processors, LP

4808 F Avenue

Marcus, Iowa  51035

RE:         Proposal
for Profession Services

Akron Riverview Corn Processors

Akron,
Iowa

Dear Steve:

In response to
your request, Yaggy Colby Associates is pleased to present you with this
proposal for professional services as they relate to select water issues
associated with the above project.  Based
on your inquiries, it is apparent you would like Yaggy Colby Associates to
assist with the following:

1.             NPDEA General Permit
#2 (Storm Water Permit for Construction Activities)

2.             NPDES Discharge
Permit for Blowdown

3.             Potable Water Supply

4.             Domestic Wastewater

5.             Process Water System
and Permitting

For each of the
above tasks, Yaggy Colby Associates proposes the following scope of services:

1.             NPDES General Permit
#2

·                  Prepare public
notice

·                  Publish public
notice in two local newspapers

·                  Prepare notice
of intent

·                  Prepare pollution
prevention plan

·                  Prepare and
submit IDNR storm water application permit package

·                  Prepare
and submit pollution prevention plan to owner including instructions,
inspection sheets, contractor sign up sheet and erosion control plan

2.             NPDES Discharge Permit

·                  Review potential
discharge locations with owner

·                  Coordinate with
water treatment equipment supplier and process engineer

·                  Utilize water
balance information from equipment supplier/process engineer to develop water
use design

·                  Prepare
and submit NPDES discharge application

3.             Potable Water Supply

·                  Work with owner
and the City of Akron / Rural Water

·                  Provide
utility hook ups as part of Phase 2 Utility Drawings (Fagen)

·                  Transmission
design between the site and the City would be included in the domestic
wastewater plan sheets

4.             Domestic Wastewater

·                  Work with owner
and the City of Akron to determine service locations

·                  Provide plans
and specifications for service connections (assume approximately one mile of
sanitary sewer)

·                  Provide
quantities tabulation

·                  Provide
Interferace with Fagen Phase II Utilities

5.             Process Water system
and Permitting

·                  Coordinate with
US Water and ICM regarding water needs

·                  Coordinate with
well drillers

·                  Coordinate with
water treatment equipment supplier on water needs

·                  Prepare
and submit IDNR water use permit application

The above work is
based on several assumptions including no off site water design and any
additional survey work will be supplied by others.  Yaggy Colby Associates proposes to provide
the above scope of services on an hourly rate basis with an estimated fee as
follows:

	
  1.

  	
   

  	
  NPDES
  General Permit #2

  	
   

  	
  $

  	
  3,500

  	
   

  
	
  2.

  	
   

  	
  NPDES
  Discharge Permit

  	
   

  	
  $

  	
  7,500

  	
   

  
	
  3.

  	
   

  	
  Potable
  Water Supply

  	
   

  	
  $

  	
  750

  	
   

  
	
  4.

  	
   

  	
  Domestic
  Wastewater

  	
   

  	
  $

  	
  6,500

  	
   

  
	
  5.

  	
   

  	
  Process Water System
  and Permitting

  	
   

  	
  $

  	
  5,500

  	
   

  

 

Yaggy Colby
Associates proposes the above scope of services on an hourly rate basis with
estimated fees as follows:

	
  1.

  	
   

  	
  Design survey of
  Parcel 1 and 2 - $10,100

  	
   

  
	
  2.

  	
   

  	
  Design survey of
  all 3 - $12,100

  	
   

  
	
  3.

  	
   

  	
  Land survey of
  all parcels - $6,500

  	
   

  

 

Should conditions
arise such that the above fee estimate would be exceeded, a cost proposal will
be submitted for your approval.

Returning a signed
copy of this proposal with an authorized signature will be adequate approval
for Yaggy Colby Associates to proceed.  A
copy of the firm’s Standard Terms and Conditions is attached and made a part of
this proposal.

Please feel free
to call with any questions.

Sincerely,

 

	
  /s/ Thomas K. Madden

  	
   

  
	
   

  
	
  Thomas K.
  Madden, PE

  
	
  Project Engineer

  

 

enclosures

AUTHORIZATION

Yaggy Colby
Associates is authorized to proceed with Scope of Services outlined in this
letter.

	
  /s/ Stephen G. Roe

  	
   

  	
  3-27-06

  	
   

  
	
  Authorized
  Signature

  	
   

  	
  Date

  

 

 2

YAGGY COLBY ASSOCIATES (YCA)

TERMS AND
CONDITIONS

ARTICLE 1 –PAYMENT TO YCA

1.01        Other Provisions
Concerning Payments

A.            Preparation
of Invoices.  Invoices will be
prepared monthly in accordance with YAGGY COLBY ASSOCIATES’ standard invoicing
practices and will be submitted to OWNER by YCA, unless otherwise agreed.  The amount billed in each invoice will be
calculated as set forth in Proposal.

B.            Payment of
Invoices.  Invoices are due
and payable upon receipt.  If OWNER fails
to make any payment due YCA for services and expenses within 30 days after
receipt of their invoice therefore, the amounts due YCA will be increased at
the rate of 1.5% per month (or the maximum rate of interest permitted by law,
if less.)  In addition, YCA may after
giving seven days written notice to OWNER, suspend services under this
Agreement until YCA has been paid in full all amounts due for services,
expenses, and other related charges. 
Design professionals shall not have any liability whatsoever to the
client for any costs or damages as a result of such suspension caused by any
breach of this Agreement by the Client. 
Payments will be credited first to interest and then to principal.

C.            As required by the
Construction Lien Law, YCA hereby notifies Owner that persons or companies furnishing
labor or materials for the construction on Owner’s land may have lien rights on
Owner’s land and buildings if not paid.

D.            Disputed
Invoices.  If the Client
objects to any portion of an invoice, the Client shall so notify the Design
Professional in writing within 30 calendar days of receipt of the invoice.  The Client shall identify the specific cause
of the disagreement and shall pay when due that portion of the invoice not in
dispute.  Interest as stated shall be
paid by the client on all disputed invoiced amounts resolved in the Design
Professional’s favor and unpaid for more than 30 calendar days after date of
submission.

E.             Payments
Upon Termination.  In the
event of any termination under Paragraph 2.04, YCA will be entitled to invoice
OWNER and will be paid in accordance with Proposal for all services performed
or furnished and all Reimbursable Expenses incurred through the effective date
of termination.

ARTICLE 2 – GENERAL
CONSIDERATIONS

2.01                        Standards
of Performance

A.            The standard of care for
all professional services and related services performed or furnished by YAGGY
COLBY ASSOCIATES under this Agreement will be the care and skill ordinarily
used by members of their profession practicing under similar circumstances at
the same time and in the same locality. 
YCA makes no warranties, expressed or implied, under this Agreement or
otherwise, in connection with their services.

B.            YCA shall perform or
furnish professional services and related services in phases of the Project to
which this Agreement applies.  YCA shall
serve as OWNER’s prime professional for the Project.  YCA may employ such Subconsultants as they
deems necessary to assist in the performance or furnishing of the
services.  YCA shall not be required to
employ any Subconsultant unacceptable to them.

C.            YCA and OWNER will
endeavor to comply with applicable Laws or regulations.  This Agreement is based on these requirements
as of its Effective Date.  Changes to
these

 1
 

requirements after
the Effective Date of this Agreement may be the basis for modifications to
OWNER’s responsibilities or to YCA’s scope of services, times of performance,
or compensation.

E.             OWNER shall be
responsible for, and YCA may rely upon, the accuracy and completeness of all
requirements, programs, instructions, reports, data, and other information
furnished by OWNER to TCA pursuant to this Agreement.  YCA may use such requirements, reports, data,
and information in performing or furnishing services under this Agreement.

F.             OWNER shall make
decisions and carry out its other responsibilities in a timely manner and shall
bare all costs incident thereto so as not to delay the services of YCA.

2.02                        Use of
Documents

A.            All Documents are
instruments of service in respect to this Project, and YAGGY COLBY ASSOCIATES
shall retain an ownership and property interest therein (including the right of
reuse at the discretion of YCA) whether or not the Project is completed.

B.            Copies of Documents
that may be relied upon by OWNER are limited to the printed copies (also known
as hard copies) that are signed or sealed by YCA.  Files in electronic media format of text,
data, graphics, or of other types that are furnished by YCA or OWNER are only
for convenience of OWNER.  Any conclusion
or information obtained or derived from such electronic files will be at the
user’s sole risk.

C.            OWNER may make, and
retain, and reuse copies of Documents for information and reference in
connection with use on the Project by OWNER with written permission from
YCA.  Such Documents are not intended or
represented to be suitable for reuse by OWNER or others on extensions of
Project or on any other project.  Any
such reuse or modification without written verification or adaptation by YCA,
as appropriate for the specific purpose intended, will be at OWNER’s sole risk
and without liability or legal exposure to YCA or to its Subconsultants.  OWNER shall indemnify and hold harmless YCA
and its Subconsultants from all claims, damages, losses, and expenses,
including attorneys’ fees arising out of or resulting therefrom.

D.            If there is a
discrepancy between the electronic files and the hard copies, the hard copies
govern.

2.03                        Insurance

A.            YAGGY COLBY ASSOCIATES
shall procure and maintain Professional Liability, General Liability, Workers
Compensation, and Automotive Liability which are applicable to the Project.

B.            OWNER shall procure
and maintain General Liability or Property Insurance policies which are
applicable to the Project.

2.04                        Termination

A.            The obligation to
provide further services under this Agreement may be terminated.

1.             For cause, by
either party upon 30 days written notice in the event of substantial failure by
the other party to perform in accordance with the terms hereof through no fault
of the terminating party.

2.             For
convenience, by OWNER effective upon the receipt of notice by YCA.

 2
 

2.05        Dispute Resolution

A.            OWNER and YAGGY COLBY
ASSOCIATES agree to negotiate all disputes between them in good faith for a
period of 30 days from the date of notice, prior to exercising their rights
under provisions of this Agreement, or under law.

B.            Mediation – In an
effort to resolve any conflicts that arise during the design or construction of
the project or following the completion of the project, the Client and the
Design Professional agree that all disputes between them arising out of or
relating to this Agreement shall be submitted to nonbonding mediation unless
the parties mutually agree otherwise. 
The Client and the Design Professional further agree to include a similar
mediation provision in all agreements with independent contractors and
consultants retained for the project and to require all independent contractors
and consultants also to include a similar mediation provision in all agreements
with subcontractors, subconsultants, suppliers or fabricators so retained,
thereby providing mediation as the primary method for dispute resolution
between the parties to those agreements.

2.05                        Hazardous
Environmental Condition

A.            OWNER represents to
YAGGY COLBY ASSOCIATES that to the best of its knowledge, a Hazardous
Environmental Condition does not exist.

B.            OWNER has disclosed to
the best of its knowledge to YCA the existence of all Asbestos, PCB’s
Petroleum, Hazardous Waste, or Radioactive Material located at or near the
Project site, including type, quantity, and location.

C.            It is acknowledged by
both parties that YCA’s scope of services does not include any services related
to asbestos or hazardous or toxic materials. 
In the event the Design Professional or any other party encounters
asbestos or hazardous or toxic materials at the jobsite, or should it become
known in any way that such materials may be present at the jobsite or any
adjacent areas that may affect the performance of the Design Professional’s
services, the Design Professional may, at his or her option and without
liability for consequential or any other damages, suspend performance of
services on the project until the Client retains appropriate specialist
consultants or contractors to identify, abate and/or remove the asbestos or
hazardous toxic materials, and warrant that the jobsite is in full compliance
with applicable laws and regulations.

D.            The Client agrees,
notwithstanding any other provision of this Agreement, to the fullest extent
permitted by law, defend, to indemnify and hold harmless the Design
Professional, his or her officers, partners, employees, agents and consultants
from and against any and all claims, suits, demands, liabilities, losses, or
costs, including reasonable attorneys’ fees and defense costs, resulting or
accruing to any and all persons, firms, and any other legal entity, caused by,
arising out of or in any way connected with the detection, presence, handling,
removal, abatement, or disposal of any asbestos or hazardous toxic substances,
products or materials that exist on, about or adjacent to the jobsite, whether
liability arises under breach of contract or warranty, tort, including
negligence, strict liability or statutory liability or any other cause of
action.

2.07        Allocation of Risk

A.            Indemnification

1.             To the fullest extent
permitted by law, YAGGY COLBY ASSOCIATES shall indemnify and hold harmless
OWNER, OWNER’s officers, directors, partners, and employees from and against
any and all costs, losses, and damages (including but not limited to all fees
and charges of engineers, architects, attorneys, and other professions, and all
court or arbitration or other dispute resolution costs) caused solely by the
negligent acts or omissions of YCA or its officers,

 3
 

directors,
partners, employees in the performance and furnishing of YCA’s services under
this Agreement.

2.             To the fullest extent
permitted by law, OWNER shall indemnify and hold harmless YCA, its officers,
directors, partners, employees, and Subconsultants from and against any and all
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 solely by the negligent
acts or omissions of OWNER or OWNER’s officers, directors, partners, employees,
and OWNER’s Consultants with respect to this Agreement or the Project.

3.             To the fullest extent
permitted by law, YCA’s total liability to OWNER and anyone claiming by,
through, or under OWNER for any cost, loss, or damages caused in part by the
negligence of YCA and in part by the negligence of OWNER or any other negligent
entity or individual, shall not exceed the percentage share that YCA’s
negligence bears to the total negligence of OWNER, YCA, and all other negligent
entities and individuals.

 4

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