Common use of Owner Default Clause in Contracts

Owner Default. Failure of the Owner, which has neither been remedied nor waived, to pay the Contractor as required by the Construction Contract or to perform and complete or comply with the other terms thereof. This bond is subject to the attached Dual Obligee Rider dated [ ]. (Space is provided below for additional signatures of added parties other than those appearing on the cover page.) CONTRACTOR AS PRINCIPAL SURETY (Corporate Seal) (Corporate Seal) Company: Company: Address: Address: Name and Title: Name and Title: Signature: Signature: TO BE ATTACHED TO AND FORM PART OF Performance and Payment Bond NO. , dated concurrently with the execution of this Rider, issued by the , a corporation, as Surety, on behalf of Xxxxx, Inc., as Principal, and in favor of , as Obligee. IT IS HEREBY UNDERSTOOD AND AGREED that the above described bond(s) are hereby amended to include the following paragraph: Notwithstanding anything contained herein to the contrary, there shall be no liability on the part of the Principal or Surety under this bond to the Obligees, or either of them, unless the Obligees, or either of them, shall make payments to the Principal or to the Surety in case it arranges for completion of the Contract upon default of the Principal, strictly in accordance with the terms of said Contract as to payments, and shall perform all the other obligations required to be performed under said Contract at the time and in the manner therein set forth. IT IS FURTHER UNDERSTOOD AND AGREED that nothing herein contained shall be held to change, alter or vary the terms of the above described bond(s) except as hereinbefore set forth. SIGNED, SEALED AND DATED this day of , 200 .

Owner Default. Failure of the Owner, which has neither been remedied nor waived, to pay the Contractor as required by the Construction Contract or to perform and complete or comply with the other terms thereof. This bond is subject to the attached Dual Obligee Rider dated [ ]. (Space is provided below for additional signatures of added parties other than those appearing on the cover page.) CONTRACTOR AS PRINCIPAL SURETY (Corporate Seal) SURETY (Corporate Seal) Company: Company: Address: Address: Name and Title: Name and Title: Signature: Signature: TO BE ATTACHED TO AND FORM PART OF Performance and Payment Bond NO. , dated concurrently with the execution of this Rider, issued by the , a corporation, as Surety, on behalf of Xxxxx, Inc., as Principal, and in favor of , as Obligee. IT IS HEREBY UNDERSTOOD AND AGREED that the above described bond(s) are hereby amended to include the following paragraph: Notwithstanding anything contained herein to the contrary, there shall be no liability on the part of the Principal or Surety under this bond to the Obligees, or either of them, unless the Obligees, or either of them, shall make payments to the Principal or to the Surety in case it arranges for completion of the Contract upon default of the Principal, strictly in accordance with the terms of said Contract as to payments, and shall perform all the other obligations required to be performed under said Contract at the time and in the manner therein set forth. IT IS FURTHER UNDERSTOOD AND AGREED that nothing herein contained shall be held to change, alter or vary the terms of the above described bond(s) except as hereinbefore set forth. SIGNED, SEALED AND DATED this day of , 200 . By: By: Substantial Completion (SC) 522 Final Completion 575 Temporary electric to site 90 Fire protection complete 400 Electric energy delivery system to delivery points 425 Sanitary system complete to receiving point 425 Treated water to delivery point 425 Potable water to delivery point 425 Rail work completed for shipping use 425 Maintenance equipment, spares, consumables 425 Administrative building 425 Employees hired and ready for training 440 Natural gas to delivery points 440 Roads (final surfacing) complete 455 Drawings (administrative building and railroads) 455 Note: Day 425 is approximately 97 calendar days prior to Substantial Completion.

Owner Default. Failure of the Owner, which has neither been remedied nor waived, to pay the Contractor as required by the Construction Contract or to perform and complete or comply with the other terms thereof. This bond is subject to the attached Dual Obligee Rider dated [ ]. (Space is provided below for additional signatures of added parties other than those appearing on the cover page.) CONTRACTOR AS PRINCIPAL SURETY (Corporate Seal) (Corporate Seal) Company: Company: Address: Address: Name and Title: Name and Title: Signature: Signature: TO BE ATTACHED TO AND FORM PART OF Performance and Payment Bond NO. , dated concurrently with the execution of this Rider, issued by the , a corporation, as Surety, on behalf of Xxxxx, Inc., as Principal, and in favor of , as Obligee. IT IS HEREBY UNDERSTOOD AND AGREED that the above described bond(s) are hereby amended to include the following paragraph: Notwithstanding anything contained herein to the contrary, there shall be no liability on the part of the Principal or Surety under this bond to the Obligees, or either of them, unless the Obligees, or either of them, shall make payments to the Principal or to the Surety in case it arranges for completion of the Contract upon default of the Principal, strictly in accordance with the terms of said Contract as to payments, and shall perform all the other obligations required to be performed under said Contract at the time and in the manner therein set forth. IT IS FURTHER UNDERSTOOD AND AGREED that nothing herein contained shall be held to change, alter or vary the terms of the above described bond(s) except as hereinbefore set forth. SIGNED, SEALED AND DATED this day of , 200 . By: By: CONTRACTOR (Name and Address): Xxxxx, Inc. P. O. Xxx 000 Xxxxxxx Xxxxx, XX 00000 SURETY (Name and Principal Place of Business): OWNER (Name and Address): [NAME AND ADDRESS] CONSTRUCTION CONTRACT Date: Amount: Description (Name and Location): BOND # Date (Not earlier than Construction Contract Date): Amount: Modifications to this Bond: □ None □ See Page 2 CONTRACTOR AS PRINCIPAL SURETY Company: (Corporate Seal) Company: (Corporate Seal) Xxxxx, Inc. Signature: Signature: Name and Title: Name and Title: (FOR INFORMATION Only—Name, Address and Telephone) OWNER’S REPRESENTATIVE (Architect, Engineer or other party): AGENT or BROKER: 1. The Contractor and the Surety, jointly and severally, bind themselves, their heirs, executors, administrators, successors and assigns to the Owner to pay for labor, materials and equipment furnished for use in the performance of the Construction Contract, which is incorporated herein by reference. 2. With respect to the Owner, this obligation shall be null and void if the Contractor: 2.1 Promptly makes payment, directly or indirectly, for all sums due Claimants, and 2.2 Defends, indemnifies and holds harmless the Owner from claims, demands, liens or suits by any person or entity whose claim, demand, lien or suit is for the payment for labor, materials or equipment furnished for use in the performance of the Construction Contract, provided the Owner has promptly notified the Contractor and the Surety (at the address described in Paragraph 12) of any claims; demands, liens or suits and tendered defense of such claims, demands, liens or suits to the Contractor and the Surety, and provided there is no Owner Default.

Owner Default. Failure of the Owner, which has neither been remedied nor waived, to pay the Contractor as required by the Construction Contract or to perform and complete or comply with the other terms thereof. MODIFICATIONS TO THIS BOND ARE AS FOLLOWS: This bond is subject to the attached Dual Obligee Rider dated [ ]. (Space is provided below for additional signatures of added parties other than those appearing on the cover page.) CONTRACTOR AS PRINCIPAL SURETY (Corporate Seal) (Corporate Seal) Company: Company: Address: Address: Name and Title: Name and Title: Signature: Signature: TO BE ATTACHED TO AND FORM PART OF Performance and Payment Bond NO. , dated concurrently with the execution of this Rider, issued by the , a corporation, as Surety, on behalf of XxxxxFxxxx, Inc., as Principal, and in favor of , as Obligee. IT IS HEREBY UNDERSTOOD AND AGREED that the above described bond(s) are hereby amended to include the following paragraph: Notwithstanding anything contained herein to the contrary, there shall be no liability on the part of the Principal or Surety under this bond to the Obligees, or either of them, unless the Obligees, or either of them, shall make payments to the Principal or to the Surety in case it arranges for completion of the Contract upon default of the Principal, strictly in accordance with the terms of said Contract as to payments, and shall perform all the other obligations required to be performed under said Contract at the time and in the manner therein set forth. IT IS FURTHER UNDERSTOOD AND AGREED that nothing herein contained shall be held to change, alter or vary the terms of the above described bond(s) except as hereinbefore set forth. SIGNED, SEALED AND DATED this ___day of , 200 .200_. One Earth Energy, LLC May 17, 2007

Owner Default. Failure of the Owner, which has neither been remedied nor waived, to pay the Contractor as required by the Construction Contract or to perform and complete or comply with the other terms thereof. This bond is subject to the attached Dual Obligee Rider dated [ ]. (Space is provided below for additional signatures of added parties other than those appearing on the cover page.) CONTRACTOR AS PRINCIPAL SURETY (Corporate Seal) (Corporate Seal) Company: Company: Address: Address: Name and Title: Name and Title: Signature: Signature: TO BE ATTACHED TO AND FORM PART OF Performance and Payment Bond NO. , dated concurrently with the execution of this Rider, issued by the , a corporation, as Surety, on behalf of Xxxxx, Inc., as Principal, and in favor of , as Obligee. IT IS HEREBY UNDERSTOOD AND AGREED that the above described bond(s) are hereby amended to include the following paragraph: Notwithstanding anything contained herein to the contrary, there shall be no liability on the part of the Principal or Surety under this bond to the Obligees, or either of them, unless the Obligees, or either of them, shall make payments to the Principal or to the Surety in case it arranges for completion of the Contract upon default of the Principal, strictly in accordance with the terms of said Contract as to payments, and shall perform all the other obligations required to be performed under said Contract at the time and in the manner therein set forth. IT IS FURTHER UNDERSTOOD AND AGREED that nothing herein contained shall be held to change, alter or vary the terms of the above described bond(s) except as hereinbefore set forth. SIGNED, SEALED AND DATED this day of , 200 . By: By: Lamberton, MN Monthly Draw Schedule - 18 Month Project 1 $ [*] $ [*] $ [*] 2 $ [*] $ [*] $ [*] 3 $ [*] $ [*] $ [*] 4 $ [*] $ [*] $ [*] 5 $ [*] $ [*] $ [*] 6 $ [*] $ [*] $ [*] 7 $ [*] $ [*] $ [*] 8 $ [*] $ [*] $ [*] 9 $ [*] $ [*] $ [*] 10 $ [*] $ [*] $ [*] 11 $ [*] $ [*] $ [*] 12 $ [*] $ [*] $ [*] 13 $ [*] $ [*] $ [*] 14 $ [*] $ [*] $ [*] 15 $ [*] $ [*] $ [*] 16 $ [*] $ [*] $ [*] 17 $ [*] $ [*] $ [*] 18 $ [*] $ [*] $ 66,025,848 $ 66,025,848 *Portions omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission. Air Permit Application to be provided by Owner and approved by Design-Builder. See Phase I and II Engineering Services Agreement dated July 20, 2006 between Highwater Ethanol, LLC and Xxxxx Engineering, LLC filed as Exhibit 10.7 to the Highwater Ethanol, LLC registration statement on Form SB-2 as filed with the Securities and Exchange Commission. TO (OWNER): SAMPLE PROJECT: 100 MGY Ethanol Plant APPLICATION NO: 1 DISTRIBUTION TO: 000 Xxx Xxxxxx Xxxxxxxx, XX 00000-0000 PERIOD TO: 10/25/2005 _OWNER _ARCHITECT _CONTRACTOR FROM (CONT): XXXXX, INC 000 XXXX XXX 000 XXXXXXX XXXXX, XX 00000-0000 VIA (ARCHITECT): SAMPLE ARCHITECT’S PROJECT NO. SAMPLE – CONTRACT FOR: 00 MGY Ethanol Plant : CONTRACT DATE: Net Change by Change Orders $ .00 The undersigned Contractor certifies that to the best of the Contractor’s knowledge, information, and believe the work covered by this Application for Payment has been completed in accordance with the Contract Documents, that all amounts have been paid by the Contractor for Work for which previous Certificates for Payment were issued and payments were received from the Owner, and that current payment shown herein is now due. With the contract. Continuation Sheet is attached. 1. ORIGINATION CONTRACT SUM $ .00 2. Net Change by Change Orders $ .00

Owner Default. Failure of the Owner, which has neither been remedied nor waived, to pay the Contractor as required by the Construction Contract or to perform and complete or comply with the other terms thereof. This bond is subject to the attached Dual Obligee Rider dated [ ]. (Space is provided below for additional signatures of added parties other than those appearing on the cover page.) E ENERGY AXXXX, LLC August 1, 2006 CONTRACTOR AS PRINCIPAL SURETY (Corporate Seal) (Corporate Seal) Company: Company: Address: Address: Name and Title: Name and Title: Signature: Signature: E ENERGY AXXXX, LLC August 1, 2006 TO BE ATTACHED TO AND FORM PART OF Performance and Payment Bond NO. , dated concurrently with the execution of this Rider, issued by the , a corporation, as Surety, on behalf of XxxxxFxxxx, Inc., as Principal, and in favor of , as Obligee. IT IS HEREBY UNDERSTOOD AND AGREED that the above described bond(s) are hereby amended to include the following paragraph: Notwithstanding anything contained herein to the contrary, there shall be no liability on the part of the Principal or Surety under this bond to the Obligees, or either of them, unless the Obligees, or either of them, shall make payments to the Principal or to the Surety in case it arranges for completion of the Contract upon default of the Principal, strictly in accordance with the terms of said Contract as to payments, and shall perform all the other obligations required to be performed under said Contract at the time and in the manner therein set forth. IT IS FURTHER UNDERSTOOD AND AGREED that nothing herein contained shall be held to change, alter or vary the terms of the above described bond(s) except as hereinbefore set forth. SIGNED, SEALED AND DATED this ___ day of , 200 _. By: By: E ENERGY AXXXX, LLC August 1, 2006 CONTRACTOR (Name and Address): SURETY (Name and Principal Place Fxxxx, Inc. of Business): P. O. Bxx 000 Xxxxxxx Xxxxx, XX 00000 OWNER (Name and Address): [NAME AND ADDRESS] CONSTRUCTION CONTRACT Date: Amount: Description (Name and Location): BOND # Date (Not earlier than Construction Contract Date): Amount: Modifications to this Bond: o None o See Page 2 CONTRACTOR AS PRINCIPAL SURETY Company: (Corporate Seal) Company: (Corporate Seal) Fxxxx, Inc. Signature: Signature: Name and Title: Name and Title: (FOR INFORMATION Only—Name, Address OWNER’S REPRESENTATIVE (Architect, and Telephone) Engineer or other party): AGENT or BROKER: 1. The Contractor and the Surety, jointly and severally, bind themselves, their heirs, executors, administrators, successors and assigns to the Owner to pay for labor, materials and equipment furnished for use in the performance of the Construction Contract, which is incorporated herein by reference.

Owner Default. Failure of the Owner, which has neither been remedied nor waived, to pay the Contractor as required by the Construction Contract or to perform and complete or comply with the other terms thereof. This bond is subject to the attached Dual Obligee Rider dated [ ]. (Space is provided below for additional signatures of added parties other than those appearing on the cover page.) CONTRACTOR AS PRINCIPAL SURETY (Corporate Seal) (Corporate Seal) Company: Company: Address: Address: Name and Title: Name and Title: Signature: Signature: TO BE ATTACHED TO AND FORM PART OF Performance and Payment Bond NO. , dated concurrently with the execution of this Rider, issued by the , a corporation, as Surety, on behalf of XxxxxFxxxx, Inc., as Principal, and in favor of , as Obligee. IT IS HEREBY UNDERSTOOD AND AGREED that the above described bond(s) are hereby amended to include the following paragraph: Notwithstanding anything contained herein to the contrary, there shall be no liability on the part of the Principal or Surety under this bond to the Obligees, or either of them, unless the Obligees, or either of them, shall make payments to the Principal or to the Surety in case it arranges for completion of the Contract upon default of the Principal, strictly in accordance with the terms of said Contract as to payments, and shall perform all the other obligations required to be performed under said Contract at the time and in the manner therein set forth. IT IS FURTHER UNDERSTOOD AND AGREED that nothing herein contained shall be held to change, alter or vary the terms of the above described bond(s) except as hereinbefore set forth. SIGNED, SEALED AND DATED this ___ day of , 200 ._. E ENERGY AXXXX, LLC August 1, 2006

Owner Default. Failure of the Owner, which has neither been remedied nor waived, to pay the Contractor as required by the Construction Contract or to perform and complete or comply with the other terms thereof. This bond is subject to the attached Dual Obligee Rider dated [ ]. (Space is provided below for additional signatures of added parties other than those appearing on the cover page.) CONTRACTOR AS PRINCIPAL SURETY (Corporate Seal) (Corporate Seal) Company: Company: Address: Address: Name and Title: Name and Title: Signature: Signature: TO BE ATTACHED TO AND FORM PART OF Performance and Payment Bond NO. , dated concurrently with the execution of this Rider, issued by the , a corporation, as Surety, on behalf of XxxxxFxxxx, Inc., as Principal, and in favor of , as Obligee. IT IS HEREBY UNDERSTOOD AND AGREED that the above described bond(s) are hereby amended to include the following paragraph: Notwithstanding anything contained herein to the contrary, there shall be no liability on the part of the Principal or Surety under this bond to the Obligees, or either of them, unless the Obligees, or either of them, shall make payments to the Principal or to the Surety in case it arranges for completion of the Contract upon default of the Principal, strictly in accordance with the terms of said Contract as to payments, and shall perform all the other obligations required to be performed under said Contract at the time and in the manner therein set forth. IT IS FURTHER UNDERSTOOD AND AGREED that nothing herein contained shall be held to change, alter or vary the terms of the above described bond(s) except as hereinbefore set forth. SIGNED, SEALED AND DATED this ___ day of , 200 .200_. Cardinal Ethanol, LLC December 14, 2006

Owner Default. Failure of the Owner, which has neither been remedied nor waived, to pay the Contractor as required by the Construction Contract or to perform and complete or otherwise comply with the other terms thereof. This bond XXX Registration: xxxx://xx.xxx.gov/portal/public/XXX/ NOTE: The XXX registration expires annually and must be kept active until the SDWRLF project is subject closed DUNS Number xxxx://xxx.xxx.xxx/get-a-duns- number.html Language to be included verbatim in construction contracts according to any accompanying instructions “Contractor shall address termination for cause and for convenience, including the attached Dual Obligee Rider dated [ ]manner by which it will be effected and the basis for settlement. In addition, contractor shall address administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as appropriate.” “Contractor shall comply with Executive Order 11246 of September 24, 1965, entitled ‘‘Equal Employment Opportunity,’’ as amended by Executive Order 11375 of October 13, 1967, and as supplemented in Department of Labor regulations (Space is provided below for additional signatures 41 CFR chapter 60).” “Contractor must comply with section 6002 of added parties other than those appearing on the cover page.) CONTRACTOR AS PRINCIPAL SURETY (Corporate Seal) (Corporate Seal) Company: Company: Address: Address: Name and Title: Name and Title: Signature: Signature: TO BE ATTACHED TO AND FORM PART OF Performance and Payment Bond NO. Solid Waste Disposal Act, dated concurrently with the execution of this Rider, issued as amended by the Resource Conservation and Recovery Act, including procurement of recovered materials in a corporation, as Surety, on behalf of Xxxxx, Inc., as Principal, and manner designated in favor of , as Obligee. IT IS HEREBY UNDERSTOOD AND AGREED that the above described bond(s) are hereby amended to include the following paragraph: Notwithstanding anything contained herein to the contrary, there shall be no liability on the part guidelines of the Principal Environmental Protection Agency (EPA) at 40 CFR part 247.” Whistleblower (language to be included in all construction contracts and subcontracts) “Contractor receiving SDWRLF funds shall under or Surety through this contract to, post notice of the rights and remedies provided to whistleblowers under No Fear Act Pub. L. 107- 174. 29 CFR § 1614.703 (d).” “Work under this bond to contract is funded by the Obligeesfederal Safe Drinking Water Revolving Loan Fund through the Oregon Business Development Department and a partnership of Local and/or Private Funds. “ • “Contractor certifies that it is not debarred or suspended or is otherwise excluded from or ineligible for participation in federal assistance programs under Executive Order 12549, or either of them, unless the Obligees, or either of them, shall make payments to the Principal or to the Surety in case it arranges for completion of the Contract upon default of the Principal, strictly in accordance with the terms of said Contract as to payments‘‘Debarment and Suspension”, and shall perform not contract or permit any subcontract at any level with any party similarly excluded or ineligible. A list of excluded parties is available in the System for Award Management (XXX) at xxx.xxx.gov, under “search records”.” “Contractor shall comply with the Xxxxxxxx “Anti-Kickback” Act (18 U.S.C. 847) as supplemented in Department of Labor regulations (29 CFR part 3).” • “Contractor hereby grants to the U.S. E.P.A. a royalty-free, nonexclusive, and irrevocable license to reproduce, publish or otherwise use, and to authorize others to use, for federal government purposes, any intellectual property developed under this contract. Contractor shall secure from third parties the same license in the name of the U.S. E.P.A. regarding any intellectual property developed by third parties as subcontractors under this contract, or developed under contract with the Contractor specifically to fulfill Contractor’s obligations related to this contract.” • “Contractor shall permit, and cause its subcontractors to allow [insert name of water system Owner], the State of Oregon, the federal government and any party designated by them to: • Examine, visit and inspect, at any and all reasonable times, the property, if any, constituting the Project. • Inspect and make copies of any accounts, books and records, including, without limitation, its records regarding receipts, disbursement, contracts, and any other obligations matters relating to the Project, and to its financial standing, and shall supply such reports and information as reasonably requested. • Interview any officer or employee of the Contractor, or its subcontractors, regarding the Project. Contractor shall retain all records related to the Project for three years after final payments are made and any pending matters are closed. • Recipient will implement the good faith efforts for solicitation and contracting with Disadvantaged Business Enterprises (“DBE”) described in Section 4.1 of the Safe Drinking Water Handbook. This applies to all solicitation and contracting for construction, equipment, supplies, engineering or other services that constitute the Project financed by this Contract. Recipient will maintain documentation in a Project file on Disadvantaged Business Enterprises. Recipient will maintain documentation in a Project file and submit required forms, as described in Section 4.1 of the Safe Drinking Water Handbook. Recipient will ensure that all prime contractors and subcontractors implement the good faith efforts for solicitation and contracting, and comply with all DBE procurement forms, statements, and reporting requirements. If the Loan exceeds $250,000, Recipient agrees to apply the current regional fair share objectives. Recipient will ensure that each procurement contract (prime plus all subcontractor contracts) includes the following term and condition: “The contractor shall not discriminate on the basis of race, color, national origin or sex in the performance of this contract. The contractor shall carry out applicable requirements of 40 CFR part 33 in the award and administration of contracts awarded under EPA financial assistance agreements. Failure by the contractor to carry out these requirements is a material breach of this contract which may result in the termination of this contract or other legally available remedies.” Recipient will ensure that all prime contractors and subcontractors implement the good faith efforts for solicitation and contracting, and comply with all DBE procurement forms, statements, and reporting requirements. If the Loan exceeds $250,000, Recipient agrees to apply the current regional fair share objectives. (Include the following forms, found in the IFA Preconstruction Packet:) • DBE Six Good Faith Efforts and Form • (language to be included in all construction contracts and subcontracts:) The Contractor acknowledges to and for the benefit of the [insert name of water system Owner] (“Purchaser”) and the State of Oregon (the “State”) that it understands the goods and services under this Agreement are being funded with monies made available by the Drinking Water State Revolving Fund that have statutory requirements commonly known as “American Iron and Steel;” that requires all of the iron and steel products used in the project to be produced in the United States (“American Iron and Steel Requirement”) including iron and steel products provided by the Contactor pursuant to this Agreement. The Contractor hereby represents and warrants to and for the benefit of the Purchaser and the State that (a) the Contractor has reviewed and understands the American Iron and Steel Requirement, (b) all of the iron and steel products used in the project will be and/or have been produced in the United States in a manner that complies with the American Iron and Steel Requirement, unless a waiver of the requirement is approved, and (c) the Contractor will provide any further verified information, certification or assurance of compliance with this paragraph, or information necessary to support a waiver of the American Iron and Steel Requirement, as may be requested by the Purchaser or the State. Notwithstanding any other provision of this Agreement, any failure to comply with this paragraph by the Contractor shall permit the Purchaser or State to recover as damages against the Contractor any loss, expense, or cost (including without limitation attorney’s fees) incurred by the Purchaser or State resulting from any such failure (including without limitation any impairment or loss of funding, whether in whole or in part, from the State or any damages owed to the State by the Purchaser). While the Contractor has no direct contractual privity with the State, as a lender to the Purchaser for the funding of its project, the Purchaser and the Contractor agree that the State is a third-party beneficiary and neither this paragraph (nor any other provision of this Agreement necessary to give this paragraph force or effect) shall be amended or waived without the prior written consent of the State. • (language to be included in all construction contracts and subcontracts:) “Construction projects assisted in whole or in part with the Safe Drinking Water Revolving Loan Fund Program (SDWRLF) must be carried out in compliance with Federal Xxxxx Xxxxx and Related Acts and the Oregon Bureau of Labor and Industries (BOLI) requirements. Contractor shall pay each worker employed in the performance of this contract not less than the higher of the wage rate for the type of work being performed under said Contract as set forth in either the Oregon Prevailing Wage “Prevailing Wage Rate for Public Works Contracts in Oregon” or the applicable federal Xxxxx-Xxxxx Wage Decision. Contractor shall download a U.S. Department of Labor Employee Fair Compensation Notice and post it at the time work site along with a list of locally prevailing wage rates. Contractor shall prepare and submit weekly Certified Payroll Reports on forms to be supplied by Oregon Business Development Department. Contractor shall permit access to construction site in the manner therein set forth. IT IS FURTHER UNDERSTOOD AND AGREED that nothing herein contained shall be held order to change, alter or vary the terms of the above described bond(s) except as hereinbefore set forth. SIGNED, SEALED AND DATED this day of , 200 conduct on-site interviews with workers during working hours.”

Owner Default. Failure of the Owner, which has neither been remedied nor waived, to pay the Contractor as required by the Construction Contract or to perform and complete or comply with the other terms thereof. MODIFICATIONS TO THIS BOND ARE AS FOLLOWS: This bond is subject to the attached Dual Obligee Rider dated [ ]. (Space is provided below for additional signatures of added parties other than those appearing on the cover page.) CONTRACTOR AS PRINCIPAL SURETY (Corporate Seal) (Corporate Seal) Company: Company: Address: Address: Name and Title: Name and Title: Signature: Signature: TO BE ATTACHED TO AND FORM PART OF Performance and Payment Bond NO. , dated concurrently with the execution of this Rider, issued by the , a corporation, as Surety, on behalf of XxxxxFxxxx, Inc., as Principal, and in favor of , as Obligee. IT IS HEREBY UNDERSTOOD AND AGREED that the above described bond(s) are hereby amended to include the following paragraph: Notwithstanding anything contained herein to the contrary, there shall be no liability on the part of the Principal or Surety under this bond to the Obligees, or either of them, unless the Obligees, or either of them, shall make payments to the Principal or to the Surety in case it arranges for completion of the Contract upon default of the Principal, strictly in accordance with the terms of said Contract as to payments, and shall perform all the other obligations required to be performed under said Contract at the time and in the manner therein set forth. IT IS FURTHER UNDERSTOOD AND AGREED that nothing herein contained shall be held to change, alter or vary the terms of the above described bond(s) except as hereinbefore set forth. SIGNED, SEALED AND DATED this ___ day of , 200 .200_. First United Ethanol, LLC November 16, 2006

Owner Default. Failure of the Owner, which has neither been remedied nor waived, to pay the Contractor as required by the Construction Contract or to perform and complete or comply with the other terms thereof. This bond is subject to the attached Dual Obligee Rider dated [ ]. (Space is provided below for additional signatures of added parties other than those appearing on the cover page.) Cardinal Ethanol, LLC December 14, 2006 CONTRACTOR AS PRINCIPAL SURETY (Corporate Seal) (Corporate Seal) Company: Company: Address: Address: Name and Title: Name and Title: Signature: Signature: Cardinal Ethanol, LLC December 14, 2006 TO BE ATTACHED TO AND FORM PART OF Performance and Payment Bond NO. , dated concurrently with the execution of this Rider, issued by the , a corporation, as Surety, on behalf of XxxxxFxxxx, Inc., as Principal, and in favor of , as Obligee. IT IS HEREBY UNDERSTOOD AND AGREED that the above described bond(s) are hereby amended to include the following paragraph: Notwithstanding anything contained herein to the contrary, there shall be no liability on the part of the Principal or Surety under this bond to the Obligees, or either of them, unless the Obligees, or either of them, shall make payments to the Principal or to the Surety in case it arranges for completion of the Contract upon default of the Principal, strictly in accordance with the terms of said Contract as to payments, and shall perform all the other obligations required to be performed under said Contract at the time and in the manner therein set forth. IT IS FURTHER UNDERSTOOD AND AGREED that nothing herein contained shall be held to change, alter or vary the terms of the above described bond(s) except as hereinbefore set forth. SIGNED, SEALED AND DATED this ___ day of , 200 200_.

Owner Default. Failure of the Owner, which has neither been remedied nor waived, to pay the Contractor as required by the Construction Contract or to perform and complete or comply with the other terms thereof. This bond is subject to the attached Dual Obligee Rider dated [ ]. (Space is provided below for additional signatures of added parties other than those appearing on the cover page.) CONTRACTOR AS PRINCIPAL Company: Address: [Name of Project Company] ___ ___, 2006 Name and Title: SURETY (Corporate Seal) Signature: (Corporate Seal) Company: Company: Address: Address: Name and Title: Name and Title: Signature: Signature: [Name of Project Company] ___ ___, 2006 TO BE ATTACHED TO AND FORM PART OF Performance and Payment Bond NO. , dated concurrently with the execution of this Rider, issued by the , a corporation, as Surety, on behalf of XxxxxFxxxx, Inc., as Principal, and in favor of , as Obligee. IT IS HEREBY UNDERSTOOD AND AGREED that the above described bond(s) are hereby amended to include the following paragraph: Notwithstanding anything contained herein to the contrary, there shall be no liability on the part of the Principal or Surety under this bond to the Obligees, or either of them, unless the Obligees, or either of them, shall make payments to the Principal or to the Surety in case it arranges for completion of the Contract upon default of the Principal, strictly in accordance with the terms of said Contract as to payments, and shall perform all the other obligations required to be performed under said Contract at the time and in the manner therein set forth. IT IS FURTHER UNDERSTOOD AND AGREED that nothing herein contained shall be held to change, alter or vary the terms of the above described bond(s) except as hereinbefore set forth. SIGNED, SEALED AND DATED this day of , 200 200_.