TURNKEY ENGINEERING, PROCUREMENT AND CONSTRUCTION AGREEMENT FOR ETHANOL PRODUCTION FACILITY

Engineering Procurement and Construction Contract

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PANDA ETHANOL, INC. | LURGI PSI, INC.

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Title: TURNKEY ENGINEERING, PROCUREMENT AND CONSTRUCTION AGREEMENT FOR ETHANOL PRODUCTION FACILITY
Governing Law: Texas Date: 11/13/2006
Law Firm: Wormser, Kiely, Galef & Jacobs LLP ; Panda Hereford Ethanol, LP

Search Engineering Procurement and Construction Contract by:

Turnkey Engineering, Procurement and Construction Agreement

Exhibit 10.10

TURNKEY ENGINEERING, PROCUREMENT AND CONSTRUCTION

AGREEMENT FOR

ETHANOL PRODUCTION FACILITY

BETWEEN

PANDA HEREFORD ETHANOL, LP

A Delaware Limited Partnership

AND

LURGI PSI, INC.

A Tennessee Corporation

Dated as of October 15, 2005

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED BY PANDA ETHANOL, INC. FOR CERTAIN PORTIONS OF THIS DOCUMENT. CONFIDENTIAL PORTIONS HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS AGREEMENT WITH “*****”.

TABLE OF CONTENTS


Article I General Matters
Section 1.01	Defined Terms	1
Section 1.02	Interpretation	14
Section 1.03	Exhibits	15

Article II Retention of Contractor
Section 2.01	Retention of Contractor	16
Section 2.02	Status of Contractor; No Partnership	16
Section 2.03	Subcontractors and Vendors	16

Article III Certain Obligations and Responsibilities of Contractor
Section 3.01	Scope of Work; Applicable Standards	17
Section 3.02	Control and Method of the Work	18
Section 3.03	Compliance with Law	18
Section 3.04	Certain Matters Pertaining to Job Site	19
Section 3.05	Access to Job Site	19
Section 3.06	Inspection and Testing of Work in Progress	19
Section 3.07	No Waiver of Responsibility	20
Section 3.08	Intentionally left blank	20
Section 3.09	Clean-Up	20
Section 3.10	Obtaining, Maintaining and Identifying Permits	20
Section 3.11	Labor	21
Section 3.12	Project Management	22
Section 3.13	Temporary Office Quarters	23
Section 3.14	Cooperation with Other Contractors	23
Section 3.15	Protection and Safety	23
Section 3.16	Environmental Matters	24
Section 3.17	Fire Prevention	27
Section 3.18	Religious and Archaeological Resources	27
Section 3.19	Reports, Plans and Manuals	27
Section 3.20	Drawings, Engineering Data and Other Materials	28
Section 3.21	Operating and Maintenance Manuals	29
Section 3.22	Training of O&M Personnel	30
Section 3.23	Accounting Information	30
Section 3.24	Contractor Taxes	30
Section 3.25	Claims and Liens for Labor and Materials	31
Section 3.26	Spare Parts Availability	31
Section 3.27	Contractor’s Obligation to Notify	32
Section 3.28	Construction Utilities	32
Section 3.29	Lines and Grades	32

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Section 3.30	Temporary Structures	33
Section 3.31	Weatherproof Coverings	33
Section 3.32	Milestone Payment Schedule	33
Section 3.33	Emergencies	33
Section 3.34	Contractor’s Representative	33
Section 3.35	Contractor’s Insurances	33
Section 3.36	Raw Water, Sewage and PotableWater Line Sizing	33

Article IV Certain Obligations of Owner
Section 4.01	Permits	34
Section 4.02	Gas, Electric, and Water Facilities	34
Section 4.03	Fuel Supply	34
Section 4.04	Raw Water Supply	35
Section 4.05	Access to Property Site	35
Section 4.06	Right of Ways	35
Section 4.07	Survey of Property Site	35
Section 4.08	Notice of Financial Closing	35
Section 4.09	Owner Taxes	36
Section 4.10	Owner’s Cooperation	36
Section 4.11	Owner’s Representative	36
Section 4.12	Supplies	36
Section 4.13	Operation and Maintenance	36
Section 4.14	Owner’s Insurances	36

Article V Project Schedule
Section 5.01	Commencement of Work	37
Section 5.02	Project Schedule	37
Section 5.03	Certain Prefunding Work	38

Article VI Separated Contract Price; Payments to Contractor
Section 6.01	Separated Contract Price	39
Section 6.02	Prefunding Costs	40
Section 6.03	Financial Closing Payment	41
Section 6.04	Post-Financial Closing	41
Section 6.05	General Provisions Payments	41
Section 6.06	Financing Parties’ Requirements and Lien Waivers	42

Article VII Change Orders
Section 7.01	Change Order at Owner’s Request	44
Section 7.02	Change Orders Requested by Contractor	45

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Section 7.03	Changes to Separated Contract Price; Disputes	47
Section 7.04	Information Requests	47

Article VIII Title, Risk of Loss and Possession
Section 8.01	Clear Title	47
Section 8.02	Risk of Loss	48
Section 8.03	Possession Following Substantial Completion	48

Article IX Insurance
Section 9.01	Contractor Insurance Policies	48
Section 9.02	Form of Contractor Insurance Policies	49
Section 9.03	Qualified Insurers	50
Section 9.04	Certificates of Insurance	50
Section 9.05	Inspection of Contractor’s Insurance Policies	51
Section 9.06	Subcontractors’ Insurance	51
Section 9.07	Remedy on Failure to Insure	51
Section 9.08	Management of Insurance Policies	51
Section 9.09	Owner Insurance Policies	51
Section 9.10	Contractor’s Assistance	52
Section 9.11	Liability not Limited to Insurance Coverage	52

Article X Tests, Interim Completion, Substantial Completion and Final Acceptance
Section 10.01	General	53
Section 10.02	Interim Completion	54
Section 10.03	Guaranteed Performance Tests	55
Section 10.04	Substantial Completion	56
Section 10.05	Punch List	57
Section 10.06	Final Acceptance	57

Article XI Contractor Guarantees
Section 11.01	Completion Guarantee	58
Section 11.02	Schedule Liquidated Damages for Interim Completion	59
Section 11.03	Schedule Liquidated Damages for Substantial Completion	59
Section 11.04	Performance Guarantees	60
Section 11.05	Liquidated Damages for Certain Performance Guarantees	61
Section 11.06	Liquidated Damages for FBG Mechanical Completion	63
Section 11.07	Payment of Liquidated Damages	64
Section 11.08	Contractor Bonus	65
Section 11.09	Determination of Performance