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Ethanol Marketing Contract

 

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Title:

Ethanol Marketing Contract

Entities:

One Earth Energy LLC

Date:

2006

Size:

Preview shows 7KB of 21KB total

Price:

$36

ID:

#2516789

 

 

► Business ► Marketing ► Ethanol Marketing Agreements

 

 

Start of Preview


ETHANOL MARKETING CONTRACT
THIS AGREEMENT is entered into by and among Eco-Energy, Inc. (hereinafter Eco) a Tennessee Corporation with its main office located at 730 Cool Springs Blvd, Suite 130, Franklin, Tennessee 37067, and One Earth Energy, LLC, (hereinafter ONE EARTH) a Illinois corporation located at 1306 West 8th Street, Gibson City, IL 60936-0546
RECITALS:
A.   ONE EARTH, who is developing an ethanol plant facility producing approximately 105 million gallons per year of denatured ethanol located in Gibson City, Illinois that desires to establish an output-marketing contract.
 
B.   Eco is a reseller in ethanol and is experienced in the marketing and transportation of such ethanol, and is willing to agree to purchase the entire ethanol output of the plant.
NOW, THEREFORE, IT IS AGREED AS FOLLOWS BETWEEN THE PARTIES:
1.   Eco Services. Eco shall, during the term hereof, purchase the entire output of ethanol and to provide certain transportation service to ONE EARTH (the Eco Program). The Eco services to be provided are set forth in Sections 2 and 3 and the exhibits attached hereto which are referred to therein.
 
2.   Eco Take or Pay Ethanol Purchases. ONE EARTH agrees to sell to Eco, and Eco agrees to purchase from ONE EARTH 100% of the production of ethanol during the term of the contract. Each potential Eco purchase will be presented to the ONE EARTH representative by Eco for verbal approval. Upon such verbal approval and purchase, a confirmation of the purchase contract will be submitted to ONE EARTH, by Eco, encompassing the details of each purchase.
 
3.   Eco Transportation Services. Eco agrees to provide the transportation services set forth in Exhibit B.
 
4.   Fees. ONE EARTH shall pay a fee for services of Eco and materials provided hereunder of $.0075 per net gallon of ethanol purchased by Eco during the term of the contract. Such fees shall be payable monthly on actual gallons shipped from the prior month. Payment from ONE EARTH shall be subtracted from Ecos first weekly wire payment of the following month for ethanol purchases.
 
5.   ONE EARTH Representative. ONE EARTH shall designate one or more persons who shall be authorized and directed to receive services hereunder and to make all merchandising, purchasing and sales decisions for ONE EARTH. All directions, transactions and authorizations given by such representative to Eco shall be binding upon ONE EARTH. Eco shall be entitled to rely on the authorization of such persons until it receives written notification from ONE EARTH that such authorization has been revoked. The terms of such purchase orders shall be consistent with the provisions of Exhibit A and may include, but shall not necessarily be limited to, price, volume, delivery schedule, and shipping instructions.
 
6.   Swaps and Exchanges. Eco shall provide 50% of entitled swaps and exchanges to ONE EARTH. Entitlement is defined by the additional profits created during swaps and exchanges, which occur prior to delivery. The value of these swaps and exchanges shall be expressed in the form of a net differential. Documentation of all swaps and exchanges will be made in the form of a quarterly report. This report shall be generated and payment submitted to ONE EARTH by the final business day of the month following the end of the calendar quarter.
             
 
  Initials:   /s/ SPK
 
   

1


 

7.   Eco Limitations.

 

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