Document:

exv10w43

Exhibit 10.43

PAYMENT AGREEMENT

     THIS PAYMENT AGREEMENT (this “Agreement”) is between UFOOD RESTAURANT GROUP, INC., a
corporation organized under laws of the State of Nevada, with offices located at 255 Washington
Street, Suite 100, Newton, Massachusetts 02458, (hereinafter referred to as the “Company”), and
SUMMIT TRADING LIMITED, an international business organized under the laws the Commonwealth of The
Bahamas, with a mailing address of Charlotte House, P.O. Box N-65, Charlotte Street, Nassau,
Bahamas (hereinafter referred to as the “STL”).

     WHEREAS, STL is in the business of assisting public companies with short and long term funding
sources, strategic business planning, and investor and public relations services designed to make
the investing public knowledgeable about the benefits of stock ownership in the Company; and

     WHEREAS, the Company has had presented to it one or more plans of public and investor
relations to utilize other business entities to achieve the Company’s goals of making the investing
public knowledgeable about the benefits of stock ownership in the Company; and

     WHEREAS, STL has advised the Company that STL is not in the business of stock brokerage,
investment advice, activities which require registration under either the Securities Act of 1933
(hereinafter the “Act”) or the Securities and Exchange Act of 1934) (hereinafter the “Exchange
Act”), underwriting, banking, is not an insurance company, nor does it offer services to the
Company which may require regulation under federal or state securities laws; and

     WHEREAS, the parties agree, after having a complete understanding of the services desired to
be provided to the Company and Company desires to have STL fund a plan of public and investor
relations which have been selected by the Company;

     NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the
receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

     1. Duties and Involvement.

     The Company has engaged STL to provide a plan, and for coordination in executing the
agreed-upon plan, for using various investor and public relations services as agreed by both
parties (the “Plan”). After agreeing upon the Plan, the Company desires to have STL undertake to
pay its monetary obligations to fund the costs of coordinating the financial and public relations
services contemplated by the Plan. STL in return for the compensation hereinafter described has
agreed to undertake to pay the Company’s obligations with respect to coordinating the Plan.

     2. Relationship Among the Parties; Representations.

     STL acknowledges that it is not an officer, director or agent of the Company, it is not, and
will not, be responsible for any management decisions on behalf of the Company, and may not commit
the Company to any action. The Company represents that STL, through stock ownership

 

 

or otherwise, does not have the power to either control the Company or to exercise any
dominating influences over its management.

     STL shall perform all services under this Agreement as an independent contractor and not as an
employee or agent of the Company. STL is not authorized to assume or create any obligation or
responsibility, express or implied, on behalf of, or in the name of, the Company or to bind the
Company in any manner. STL shall be responsible for payment of all taxes on its income or
activities, and the Company shall not withhold any federal, provincial, state, or local payroll or
employment taxes from any fees or other amounts payable under this Agreement unless the Company
determines that such withholding is required under applicable law or regulation. STL shall comply
with any and all federal and state securities laws, regulations and orders in connection with its
provision of services under this Agreement.

     The Parties represent and warrant that: (i) each is a company duly organized and existing
under the laws of the state in which each is incorporated identified above in the preamble; (ii)
each has the full right, power and authority to execute this Agreement and to perform the
obligations hereunder; (iii) this Agreement constitutes and will constitute the valid and binding
obligation of the Parties enforceable in accordance with its terms; (iv) the individual executing
this Agreement on each Party’s behalf has been duly authorized to do so; and (v) STL has the
expertise and experience to perform the services set forth herein in accordance with the terms of
this Agreement.

     3. Effective Date, Term and Termination.

     This Agreement shall be effective on June 29, 2010 and will continue until June 29, 2011.
Notwithstanding the foregoing, the Company in its sole discretion upon fifteen (15) days advance
written notice may terminate this Agreement effective December 29, 2010, in which event STL shall
promptly return one-half of the Payment (as defined herein) to the Company.

     4. Compensation.

     The Company agrees to pay STL, or its designee certified in writing to the Company, as
follows: ten thousand (10,000) shares of the Company’s to be issued as Series B 8% Redeemable
Convertible Preferred Stock, par value $.0001 per share (“Series B Preferred Shares”), such Series
B Preferred Shares to have a Stated Value of $1,000,000 as provided by the Certificate of the
Designations, Powers, Preferences and Rights of the Series A 8% Redeemable Convertible Preferred
Stock and Series B 8% Redeemable Convertible Preferred Stock to be filed with the State of Nevada
pursuant to the Company’s private placement of Series B Preferred Shares commencing on or about
June 29, 2010 (the “Offering”) (collectively referred to herein as “Payment”).

     This Payment will be considered total and complete consideration for STL performing its duties
and involvement as defined in Section 1, of this Agreement. The Payment shall be deemed earned upon
the signing of this Agreement and shall be issued to STL on the same terms and conditions as
offered to subscribers of the Offering. Upon issuance of the Series B Preferred Shares to STL, the
Company shall have no further payment obligations to either STL.

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     The Company agrees to pay for all costs and expenses incurred and associated with its
employees’ working with STL and its representatives, including lodging, meals and travel as
necessary and additionally, agrees to pay the cost of printing, due diligence shows, email, radio,
television and other outside services that it approves in writing in conjunction with STL or any
other third party introduced to the Company to execute any portion of any Plan proposed and agreed
to. STL shall be responsible for the out-of-pocket expenses, e.g., travel and lodging, of its own
personnel.

     5. Investment Representations.

     (a) The Company represents and warrants that it has provided STL with access to all
information available to the Company concerning the Company’s condition, financial and otherwise,
its management, its business and its prospects. The Company represents that all of the reports
required by the Act or the Exchange Act have been filed with the Securities and Exchange Commission
(“Commission”) and are available online on the Commission’s EDGAR portal (the “Disclosure
Documents”). STL acknowledges that the acquisition of the Series B Preferred Shares involves a high
degree of risk. STL represents that it-and its advisors-have been afforded the opportunity to
discuss the Company with its management. The Company represents that it will provide STL at its
request with any information or documentation necessary to verify the accuracy of the information
contained in the Disclosure Documents and will promptly notify STL upon the filing or any
registration statement or other periodic report filed (“Reports”) pursuant to the Act or the
Exchange Act at least 24 hours prior to filing such Reports. The Company will also provide STL with
Security Position Reports as provided through Depository Trust & Clearing Corporation on a
bi-weekly basis and any transfer activity forms delivered to the Company by its transfer agent
within 5 days after STL’s request, which requests to be made on a periodic basis after discussion
with the Company.

     (b) STL represents that neither it nor its officers, directors, or employees are subject to
any disciplinary action by either the Financial Industry Regulatory Authority or the Commission by
virtue of any violations of their rules and regulations and that to the best of its knowledge
neither is its affiliates nor subcontractors are subject to any such disciplinary action.

     (c) If required by United States law or regulation, STL will take necessary steps to prepare
and file any necessary forms to comply with the transfer of the shares of stock from Company to
STL, including, if required, Form 13(d).

     (d) STL represents and warrants to the Company as follows:

          (i) The Series B Preferred Shares, and the Common Shares underlying the Series B Preferred
Shares, are being acquired by STL for its own account, and not on behalf of any other person, and
are being acquired for investment purposes and not for distribution.

          (ii) The Series B Preferred Shares are a suitable investment for STL, taking into
consideration the restrictions on transferability affecting the Series B Preferred Shares and the
Common Shares.

          (iii) The Series B Preferred Shares to be received by STL will be acquired for investment for
STL’s own account and not with a view to the distribution of any part thereof, and

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that STL has no present intention of selling, granting any participation in, or otherwise
distributing the same in a manner contrary to the Securities Act of 1933, as amended (the
“Securities Act”) or applicable state securities laws.

          (iv) STL is and has experience as an investor in securities of companies, and acknowledges
that the securities to be acquired hereunder are speculative and involve a high degree of risk.
STL can bear the economic risk of its investment, including possible complete loss of such
investment, for an indefinite period of time and has such knowledge and experience in financial or
business matters that it is capable of evaluating the merits and risks of the investment in the
securities purchased hereunder. STL understands that the securities to be acquired hereunder have
not been registered under the Securities Act, or under the securities laws of any jurisdiction, by
reason of reliance upon certain exemptions, and that the reliance on such exemptions is predicated
upon the accuracy of STL’s representations and warranties in this Agreement. STL is familiar with
Regulation D promulgated under the Securities Act and is an “accredited investor” as defined in
Rule 501(a) of such Regulation D.

          (v) STL understands that the securities to be acquired hereunder are characterized as
“restricted securities” under the federal securities laws inasmuch as they are being acquired from
the Company in a transaction not involving a public offering and that under such laws and
applicable regulations such securities may be resold without registration under the Securities Act
only in certain limited circumstances and in accordance with the terms and conditions set forth
in the legend described below. In this connection, STL represents that it is familiar with
Securities and Exchange Commission, Rule 144, as presently in effect, and understands the resale
limitations imposed thereby and by the Securities Act.

          (vi) STL understands and acknowledges that the certificates evidencing the securities to be
purchased hereunder may bear substantially the following legend or if another legend may be affixed
to the certificates issued to subscribers of the Offering then such legend shall be affixed to any
certificate issued and delivered to STL:

          THE SECURITIES REPRESENTED HEREBY [AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF] HAVE
NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S.
SECURITIES ACT”). THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE
COMPANY THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN
ACCORDANCE WITH (I) REGULATION S UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, (II) AN EXEMPTION
FROM REGISTRATION UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, OR (III) UNDER AN EFFECTIVE
REGISTRATION STATEMENT, AND, N EACH CASE, IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS.
IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES REPRESENTED HEREBY [AND THE SECURITIES
ISSUABLE UPON THE EXERCISE HEREOF] MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES
ACT.

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     6. Issuance of and Registration of Securities and Liquidated Damages.

     The Company agrees that it will include the common stock underlying the Series B Preferred
Shares (“Common Shares”) issued to STL in the registration statement pursuant to the terms and
conditions set forth in the Registration Rights Agreement to be entered into by the Company and
each subscriber of the Offering. Notwithstanding the registration of the Common Shares, STL
acknowledges and agrees that the Common Shares underlying the Series B Preferred Shares may not be
sold or otherwise disposed of until June 29, 2011, provided, however, that the Common Shares issued
to STL will be included in the registration statement pursuant to the terms and conditions set
forth in the Registration Rights Agreement. The Company hereby agrees that it will instruct its
transfer agent to issue the Common Shares promptly after the conversion of the Series B Preferred
and, if the conversion of the Series B Preferred Shares is twelve (12) or more months following the
issuances of the Series B Preferred Shares, free and clear of all restrictive legends.

     The Company hereby acknowledges that time is of the essence with respect to issuance of the
Common Shares and removal of the restrictive legend from the Common Shares. In the event that the
Common Shares are not issued before June 29, 2011 or the restrictive legend is not removed within
ten (10) days after written demand is made by STL (provided that (i) the Company’s transfer agent
requires the removal of a self-executing restrictive legend that lapses with the passage of time as
a condition to transfer, and (ii) the demand is made twelve (12) or more months following the
issuance of the Series B Preferred Shares), the Company agrees to issue to STL as liquidated
damages an additional number of Common Shares, equal to Ten Percent (10%) of the Common Shares then
owned by STL (excluding any Common Shares purchased in open market transactions), for each
additional thirty (30) day delay in removing the restrictive legend from the Common Shares.

     The Company will undertake to comply with the various states’ securities laws with respect to
the registration of the Common Shares underlying the Series B Preferred Shares therein. The Company
undertakes to make available to STL=for review and comment, on a timely basis and prior
to submission to the Commission, copies of proposed filings under the Act and Exchange Act unless
the Company is advised by counsel that such disclosure is inappropriate. Notwithstanding the
foregoing, the Company’s failure to make such proposed filings available to STL shall not be a
breach by the Company of this Agreement, notwithstanding the provisions of Section 5(a) of this
Agreement.

     The Company warrants to STL that it has complied with all corporate and legal requirements to
issue the Series B Preferred Shares, and the Common Shares underlying the Series B Preferred Shares
to STL including, without limitation, obtaining the approval of its Board of Directors. At STL’s
request, the Company will provide STL a letter from its counsel to the effect that all such
corporate actions have been taken.

     7. Confidentiality.

     STL understands that the Company, from time to time, has and shall continue to impart to it or
provide it access to confidential business information, whether such information is written, oral
or graphic, including, but not limited to, financial plans and records, marketing plans,

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technology processes and practices, business strategies and relationships with third parties,
present and proposed products, trade secrets, information regarding customers and suppliers,
strategic planning and systems and contractual terms (collectively “Confidential Information”). STL
agrees that it will (i) only to use the Confidential Information to provides services to or for the
benefit of the Company, and (ii) not, during or subsequent to the term of this Agreement, divulge,
furnish or make accessible to any person (other than with the written permission of the Company)
any Confidential Information of the Company.

     8. Covenant Not to Compete.

     STL covenants and agrees that, during the term of this agreement, neither it or any of its
affiliates or subsidiaries (i) will compete directly with the Company in the Company’s primary
industry or related fields, or (ii) accept, without the advance written consent of the Company, any
client that is in the fast-casual food service business that has a franchise or combination of
company-owned and franchise business model.

     STL recognizes and agrees that because a violation by it of its obligations under this Section
8 and/or Section 7 will cause irreparable harm to the Company that would be difficult to quantify
and for which money damages would be inadequate, without limiting any other rights or remedies
available to the Company, the Company shall have the right to injunctive relief to prevent or
restrain any such violation, without the necessity of posting a bond.

     9. Indemnification.

     The Company agrees to indemnify and hold harmless STL and its respective agents and employees,
against any losses, claims, damages or liabilities, joint or several (“Losses”), to which STL or
any such other person, may become subject, insofar as such Losses (or actions, suits or proceedings
in respect thereof) arise out of or are based upon any untrue statement of material fact contained
in any registration statement or otherwise authorized by the Company, except any Losses resulting
from the gross negligence or willful misconduct of STL or such persons acting under the direction
of or with the consent STL; and will reimburse the STL, or any such other person, for any legal or
other expenses reasonably incurred by the STL, or any such other person, in connection with
investigation or defending any such Losses except Losses resulting from the gross negligence or
willful misconduct of STL or any such person.

     STL agrees to indemnify and hold harmless the Company and its respective agents and employees,
against any Losses, to which the Company or any such other person, may become subject, insofar as
such Losses (or actions, suits or proceedings in respect thereof) arise out of or are based upon
(i) STL’s breach of any provision of this Agreement, (ii) STL’s negligence or misconduct, or (iii)
the violation by STL of any federal or state law or regulation; and will reimburse the Company, or
any such other person, for any legal or other expenses reasonably incurred by the Company, or any
such other person, in connection with investigation or defending any such Losses.

     If any action shall be brought against STL or the Company, as applicable (the “Indemnified
Party”), in respect of which indemnity may be sought pursuant to this Agreement, the Indemnified
Party shall promptly notify the other party (the “Indemnifying

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Party”) in writing, and the Indemnifying Party shall assume the defense thereof with counsel
mutually agreed to by the Parties. The Indemnified Party shall have the right to employ separate
counsel in any such action and participate in the defense thereof, but the fees and expenses of
such counsel shall be paid by the Indemnified Party. The Indemnified Party will not be liable to
Indemnifying Party under this Agreement for any settlement by Indemnifying Party effected without
the Indemnified Party’s prior written consent or to the extent Losses are attributable to
Indemnifying Party’s breach of any of the representations, warranties, covenants or agreements made
by the Indemnifying Party in this Agreement.

     10. Miscellaneous Provisions.

     (a) Time. Time is of the essence of this Agreement.

     (b) Presumption. This Agreement or any section thereof shall not be construed against any
party due to the fact that said Agreement or any section thereof was drafted by said party.

     (c) Computation of Time. In computing any period of time pursuant to this Agreement, the day
of the act, event or default from which the designated period of time begins to run shall be
included, unless it is a Saturday, Sunday or a legal holiday, in which event the period shall begin
to run on the next day which is not a Saturday, Sunday or a legal holiday, in which event the
period shall run until the end of the next day thereafter which is not a Saturday, Sunday or legal
holiday.

     (d) Titles and Captions. All article, section and paragraph titles or captions contained in
this Agreement are for convenience only and shall not be deemed part of the context nor affect the
interpretation of this Agreement.

     (e) Pronouns and Plurals. All pronouns and any variations thereof shall be deemed to refer to
the masculine, feminine, neuter, singular or plural as the identity of the Person or Persons may
require.

     (f) Further Action. The parties hereto shall execute and deliver all documents, provide all
information and take or forbear from all such action as may be necessary or appropriate to achieve
the purposes of this Agreement.

     (g) Good Faith, Cooperation and Due Diligence. The parties hereto covenant, warrant and
represent to each other good faith, complete cooperation, due diligence and honesty in fact in the
performance of all obligations of the parties pursuant to this Agreement. All promises and
covenants are mutual and dependent.

     (h) Savings Clause. If any provision of this Agreement, or the application of such provision
to any person or circumstance, shall be held invalid, the remainder of this Agreement, or the
application of such provision to persons or circumstances other than those as to which it is held
invalid, shall not be affected thereby.

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     (i) Assignment. Except as may be provided herein this Agreement may not be assigned by either
party hereto without the written consent of the other, but shall be binding upon the successors of
the parties.

     (j) Arbitration.

          i. If a dispute arises out of or relates to this Agreement, or the breach thereof, and if said
dispute cannot be settled through direct discussion, any unresolved controversy or claim arising
out of or relating to this contract, Agreement or the a breach thereof-, shall be settled by
arbitration administered by in accordance with the rules of the American Arbitration Association in
accordance with its Commercial Arbitration Rules including the Emergency Interim Relief Procedures,
and judgment on upon the award rendered by a single arbitrator the Arbitrator may be entered in any
court having jurisdiction thereof

          ii. Any provisional remedy, which would be available from a court of law, shall be available
to the parties to this Agreement from the Arbitrator pending arbitration.

          iii. The situs of the arbitration shall be Boston, Massachusetts.

          iv. In the event that a dispute results in arbitration, the parties agree that the prevailing
party shall be entitled to reasonable attorneys’ fees to be fixed by the arbitrator.

     (k) Notices. All notices required or permitted to be given under this Agreement shall be
given in writing and shall be delivered, either personally or by express delivery service, to the
party to be notified. Notice to each party shall be deemed to have been duly given upon delivery,
personally or by courier (such as Federal Express or similar express delivery service), addressed
to the attention of the officer at the address set forth heretofore, or to such other officer or
addresses as either party may designate, upon at least ten (10) days written notice, to the other
Party.

     (i) Governing law. The Agreement shall be construed by and enforced in accordance with the
laws of The Commonwealth of Massachusetts without regard to conflicts of law principles.

     (m) Entire agreement. This Agreement contain the entire understanding and agreement among the
parties relating to the provision of services set forth in Section I hereof. There are no other
agreements, conditions or representations, oral or written, express or implied, with regard
thereto other than the Consulting Agreement. This Agreement may be amended only in writing signed
by the Company and STL.

     (n) Waiver. A delay or failure by any party to exercise a right under this Agreement, or a
partial or single exercise of that right, shall not constitute a waiver of that or any other
right.

     (o) Counterparts. This Agreement may be executed in duplicate counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same Agreement.
In the event that the document is signed by one party and faxed to another the parties agree that a
faxed signature shall be binding upon the parties to this agreement as though the signature was an
original.

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     (p) Successors. The provisions of this Agreement shall be binding upon all parties, their
successors and assigns.

     (q) Counsel. The parties expressly acknowledge that each has been advised to seek separate
counsel for advice in this matter and has been given a reasonable opportunity to do so.

     (r) Transactions in the Company’s Common Stock. STL will not directly or indirectly, nor will
any person acting on behalf of or pursuant to any understanding with STL, execute-sales, including
short sales as defined in Rule 200 of Regulation SHO under the Exchange Act, of the common stock of
the Company during the term of this Agreement.

[Signature Page Follows]

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     IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement to be
effective as of the day and year provided herein.

	 	 	 	 	 	 	 

	 	 	CONSULTANT:	 	 
	 
	 	 	 	 	 	 
	 	 	INVESTOR RELATIONS SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Richard J. Fixaris, President and CEO
	 	 
	 
	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	UFOOD RESTAURANT GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Charles Cocotas
 

	 	 
	 

	 	 	 	Charles Cocotas, as President	 	 

 - 10 -Exhibit 10.3

Exhibit 10.3

GRAIN BROKERAGE AGREEMENT

This Grain Brokerage Agreement (“Agreement”) is made and entered into as of this 15th day of
December, 2009, by and between Southwest Georgia Ethanol, LLC, a Georgia limited liability company
(“SWGE”), and PALMETTO GRAIN BROKERAGE, LLC, a South Carolina limited liability corporation
(“Palmetto”) (each a “Party”, and collectively the “Parties”).

RECITALS:

WHEREAS, SWGE wants to ensure an adequate supply of grain at the most advantageous prices
available; and

WHEREAS, SWGE requires a continuous and predictable flow of grain to its facility in Camilla,
Georgia to ensure that required raw materials for its manufacturing process are always available
and to prevent demurrage; and

WHEREAS, SWGE desires market development services be supplied to grain producers and potential
grain producers in SWGE’s local grain market; and

WHEREAS, Palmetto desires to expand its presence in the rail grain market in the state of
Georgia; and

WHEREAS, Palmetto desires to expand its marketing services program to grain producers and
potential grain producers in the state of Georgia; and

WHEREAS, SWGE wants to insure an adequate demand for its dried distillers grains;

and

WHEREAS, SWGE requires a continuous and predictable removal of dried distillers grains from
its facility in Camilla, Georgia; and

WHEREAS, Palmetto desires to expand its presence in the rail dried distillers grains market in
the south-eastern United States;

NOW THEREFORE, in consideration of the mutual terms and conditions contained herein, the
Parties agree as follows:

ARTICLE 1

DEFINITIONS

	1.1	 	“Agreement”—means this grain brokerage agreement between Palmetto and SWGE.

	 
	1.2	 	“Camilla Grain Storage Space”—as defined in Section 5.2.

	 
	1.3	 	“DDG”—means dried distillers grain.

	 
	1.4	 	“DDG Sales Contract”—means a contract between SWGE and a Third Party Purchaser for the sale of DDGs to the Third Party Purchaser.

	1.5	 	“DDG Sales Opportunity”—means a Third Party Purchaser willing to purchase DDGs
from SWGE on commercially favorable terms and at a commercially favorable price.

 

 

	1.6	 	“Force Majeure”—means strikes, lockouts, or industrial disturbances; riots or civil
disturbances; interference by civil or military authorities; wars, blockades, insurrection, or
acts of other public enemy or acts of terrorism; epidemics, landslides, lightning,
earthquakes, fires, storms, floods, washouts, or other acts of God; arrests or restraints of
governments and people; compliance with federal, state, or local laws, rules, or regulations,
acts, orders, directives, requisitions or requests of any official or agency of federal, state
or local governments; fires, explosions, freezing, failures, disruptions, breakdowns or
accidents to transportation equipment or facilities; prorationing by transporters; the
necessity of testing, making repairs, alterations or enlargements to transportation equipment
or facilities; embargoes, priorities, expropriation or condemnation by government or
governmental authorities; and any other cause which is not reasonably within the control of
the Party claiming suspension.

	 
	1.7	 	“Grain Purchase Contract”—means a contract between SWGE and a Third Party Supplier
for the sale of grain required by SWGE for its manufacturing process.

	 
	1.8	 	“Grain Purchase Opportunity”—means a Third Party Supplier willing to sell grain to
SWGE on commercially favorable terms and at a commercially favorable price.

	 
	1.9	 	“Introducing Broker”—means Palmetto, when it seeks out a Third Party Supplier who is willing
to sell grain on commercially favorable terms and at a commercially favorable price and
introduces this Third Party Supplier to SWGE.

	 
	1.10	 	“Introducing Broker Fee”—means the fee charged by Palmetto to Third Party Suppliers for
introducing that Third Party Supplier to a purchaser of the Third Party Supplier’s grain.

	 
	1.11	 	“Local Grain Market”—means the aggregate grain producers and potential grain
producers located in reasonably close proximity to the SWGE manufacturing facility.

	 
	1.12	 	“Long-Term Grain Forecast”—as defined in Section 5.1.

	 
	1.13	 	“Market Analysis”—means a report of various relevant information needed by SWGE to make a
commercially reasonable decision on when, where, and from whom to purchase grain and sell
DDGs. Information in the Market Analysis includes but is not limited to: supply and demand
reports, planting intention reports, weather and crop condition reports, current and
historical basis information, grain storage availability, railroad car availability,
government price support levels, farmer selling attitude, grain market predictions, and grain
basis price prospects.

	 
	1.14	 	“Midwest Grain Storage Space”—as defined in Section 5.2.

	 
	1.15	 	“Midwest Rail Grain Market”—means the aggregate Third Party Suppliers ‘Dented in the
middle-western portion of the United States, who are willing and able to ship grain by use of
the railroad system.

	 
	1.16	 	“Non-Broker Transaction”—as defined in Section 3.7.

	 
	1.17	 	“Non-Participating Broker Fee”—as defined in Section 3.7.

	 
	1.18	 	“Pinnacle Marketing Program”—means a program designed and run by Palmetto that
seeks to develop the Local Grain Market.

 

2

 

	1.19	 	“Railroad Service Contracts”—as defined in Section 5.4.

	 
	1.20	 	“Selling Broker”—means Palmetto, when it is searching for potential purchasers of
excess grain and DDGs that SWGE has available.

	 
	1.21	 	“Short-Term Grain Forecast”—as defined in Section 5.1.

	 
	1.22	 	“Third Party Purchaser”—means a third party, not a Party to this contract, that purchases
grains or DDGs from SWGE.

	 
	1.23	 	“Third Party Supplier”—means a third party, not a Party to this contract, that has grain
for sale that is appropriate for use as a raw material in SWGE’s manufacturing process.

ARTICLE 2

TERM AND RENEWAL

	2.1	 	Term: The term of this Agreement shall commence on the date hereof and shall continue
for a primary term of 1 year, from January 1, 2010 through December 31, 2010. This Agreement
shall automatically renew for successive one (1) year terms, unless terminated on the
expiration date, or on the expiration date of any subsequent one (1) year renewal term. In
each case, termination requires at least six (6) months written notice by either Party prior
to the expiration of the primary term or any renewal term.

	2.2	 	Termination: Notwithstanding anything contained herein, either Party may terminate
this Agreement upon written notice to the other Party in the event that (1) such other party
commits a material breach (other than a breach which in all the circumstances is insignificant
or involves payment of money) of any provision of this Agreement and fails to cure said breach
within thirty (30) days following receipt of written notice of such material breach; (2) a
payment that such other party is required to make is overdue for more than ten (10) days
following written notice of the overdue payment; (3) such other party becomes the subject of
any bankruptcy, insolvency or similar proceedings; or (4) any legislation, regulation, or
decision of a Federal, state or municipal government or of any agency thereof is implemented,
repealed or altered in such a way as to significantly prevent either party from lawfully
exercising or performing its obligations hereunder.

ARTICLE 3

GRAIN BROKERAGE

	3.1	 	Introducing Brokerage: Palmetto shall be the exclusive Introducing Broker to SWGE.
Palmetto shall research, on a daily basis, the Midwest Rail Grain Market, as well as all other
available grain markets, and shall use its best commercial efforts to discover and present to
SWGE the most favorable Grain Purchase Opportunities available in the market. Palmetto shall
present to SWGE the first opportunity to pursue Grain Purchase Opportunities that Palmetto
discovers. Palmetto shall actively advise SWGE on a daily basis of Palmettos findings
concerning Grain Purchase Opportunities. Palmetto shall act as an Introducing Broker between
SWGE and Third Party Suppliers and shall use reasonable commercial means to facilitate Grain
Purchase Contracts between SWGE and the Third Party Suppliers. Palmetto shall use its best
commercial efforts to assist SWGE in obtaining grain at the lowest possible price available in
the market.

 

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	3.2	 	Extent of Relationship: Palmetto shall not be a party to any contract between SWGE
and any Third Party Suppliers. SWGE shall have the exclusive power to enter into all
negotiations and
Grain Purchase Contracts with such Third Party Suppliers on terms and conditions negotiated
by SWGE and such Third Party Suppliers.

	3.3	 	Introducing Broker Fees: The Third Party Suppliers shall be responsible to Palmetto
for any Introducing Broker Fees. Palmetto shall not charge the Third Party Suppliers
Introducing Broker Fees in excess of the fees Palmetto normally charges other Third Party
Suppliers for similar services. SWGE shall not be responsible for any Introducing Broker Fees
due to Palmetto.

	3.4	 	Market Analysis: Palmetto shall provide to SWGE its Market Analysis and any third
party’s Market Analysis available to Palmetto which Palmetto reasonably believes would assist
SWGE in negotiating Grain Purchase Contracts. Palmetto shall use its best commercial efforts
to provide these Market Analyses as soon as the information becomes available to Palmetto.

	3.5	 	Selling Brokerage: SWGE from time to time shall use Palmetto as a Selling Broker.
Palmetto shall use its best commercial efforts to secure Third Party Purchasers for SWGE’s
excess grain and generally act as a Selling Broker to facilitate the sale of SWGE’s excess
grain.

	3.6	 	Selling Broker Fees: Palmetto shall be reimbursed at a rate of one quarter of one
cent ($0.0025) per bushel of western rail grain and $0.01 per bushels on any local bushels
sold to Third Party Purchasers when Palmetto is acting as a Selling Broker on behalf of SWGE.
We understand SWGE is a end user of corn but if they elect to “sell out” any purchased
bushels, which is usually a rare occasion, brokerage will be at these rates.

	3.7	 	Non-Broker Transaction: SWGE shall have the right to purchase grain in situations
where Palmetto is not involved in the transaction and Palmetto cannot charge a Brokerage Fee
under this Agreement (“Non-Broker Transaction”). In Non-Broker Transactions, SWGE does not owe
Palmetto Grain Brokerage a brokerage fee for any grain that SWGE buys direct.

	3.8	 	Quantity and Quality: Palmetto shall secure sufficient Grain Purchase Opportunities
to meet SWGE’s total currently anticipated grain usage of thirty-six million (36,000,000)
bushels of grain per year. Reasonable deviation flow this anticipated grain usage shall not be
a breach of this Agreement The Grain Purchase Opportunities must be for grain of a quality
that reasonably meets SWGE’s grain needs for ethanol manufacturing.

ARTICLE 4

DDG BROKERAGE

	4.1	 	DDG Selling Brokerage: SWGE will bring all DDG sales in house. Palmetto Grain
Brokerage will still assist SWGE on DDG sales on a normal brokerage type arrangement.

	4.2	 	Extent of Relationship: Palmetto shall not be a party to any DDG Sales Contract
between SWGE and any Third Party Purchaser. SWGE shall have the exclusive power to enter into
all negotiations and DDG Sales Contracts with such Third Party Purchasers on terms and
conditions negotiated by SWGE and such Third Party Purchasers.

	4.3	 	DDG Selling Broker Fees: SWGE shall pay to Palmetto one dollar ($1.00) per ton for
all DDGs sold through the efforts of Palmetto acting as Selling Broker.

 

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ARTICLE 5

GRAIN LOGISTICS

	5.1	 	Grain Use Forecasts: SWGE shall provide to Palmetto, on a bimonthly basis, an
estimate of the amount of grain it will need for the next two weeks (“Short-Term Grain
Forecast”). The Short-Term Grain Forecast shall indicate the amount of grain SWGE expects to
use over the next two week period and the anticipated train schedule. SWGE shall amend this
forecast as it reasonably deems necessary. SWGE shall provide to Palmetto on a monthly basis a
forecast detailing the amount of grain SWGE will require for a period of one year horn the
date of the forecast (“Long-Tern Grain Forecast”). The Long-Term Grain Forecast shall indicate
the amount of grain SWGE shall require in one-half month increments. SWGE is free to amend
this Long-Term Grain Forecast as it reasonably deems necessary. These forecasts shall not be
binding orders by SWGE and shall simply be estimates to assist Palmetto in meeting SWGE’s
grain wails in an efficient and timely fashion.

	5.2	 	Intentionally left blank.

	5.3	 	Leased Railroad Cars: Palmetto shall use its best efforts to assist SWGE in the
acquisition of a suitable leased rail hopper feet to service its corn logistics needs.

	5.4	 	Railroad Service Contacts: Palmetto shall use its best commercial effort to assist
SWGE in negotiating contracts with third patty railroad companies to ship grain to SWGE’s
manufacturing facility (“Railroad Service Contracts”). Palmetto shall abide and be bound by
any terms and conditions required by any such third party railroad company in the negotiation
of such Railroad Service Contracts including but not limited to confidentiality agreements.
Palmetto shall execute and deliver any documents required by such third party railroad in
order to facilitate Palmetto’s involvement in the negotiation of such Railroad Service
Contracts.

ARTICLE 6

LOCAL GRAIN PRODUCTION

	6.1	 	Pinnacle Marketing Program: Palmetto shall provide its Pinnacle Marketing Program to
the Local Grain Market to help establish a local grain supply that can be utilized by SWGE to
meet its grain supply needs. Palmetto shall make the Pinnacle Marketing Program available to
the Local Grain Market at a reasonable cost to be paid by those producers that choose to
participate. SWGE shall have no liability to pay for the Pinnacle Marketing Program in
addition to the fees listed in Article 7.

ARTICLE 7

FEES AND EXCLUSIVITY

	7.1	 	Annual Fees: As primary consideration for the exclusivity relationship provided in Section 72
herein and in addition to any fees SWGE is required to pay Palmetto in Article 3, SWGE shall
pay Palmetto an annual fee in two equal payments, V2 invoiced in February 2010 and Y2 invoiced
in September 2010. The amount of the annual fee shall be as follows:

January I through December 31, 2010 $50,000.00 ( Fifty Thousand and no one hundredths)

	7.2	 	Exclusive Relationship: Both Parties acknowledge that the relationship set out in this
contract provides both parties with significant business and marketing opportunities. SWGE
further contends that if Palmetto’s services were provided to another ethanol company within
the states of Georgia, Alabama, or Florida, either in existence or built in the future, SWGE’s
interests would be materially damaged. As a -Jesuit, Palmetto shall not provide the same or
similar services as those described in this Agreement to any other ethanol manufacturing or
related company during
the term of this Agreement in the following states: Georgia (not including Sandersville,
Georgia), Alabama, and Florida This includes all existing and future ethanol manufacturing
or related companies. Any breach of this Section 72 by Palmetto shall be deemed a material
breach and shall be grounds for termination as set forth in Section 2.2 herein.

 

5

 

ARTICLE 8

MISCELLANEOUS PROVISIONS

	8.2	 	Indemnity: Palmetto shall indemnify, defend, and hold SWGE and its affiliates,
subsidiaries, parents, and its and their respective directors, officers, stockholders,
members, employees, and agents harmless from and against any and all claims, losses, awards,
judgments, settlements, fines, penalties, liabilities, damages, costs or expenses (including
reasonable out-of-pocket attorney’s fees and expenses) incurred on account of any injury or
death of persons or damages to property to the extent caused by or arising out of the gross
negligence or willful misconduct of Palmetto, its officers, employees, or agents in performing
Palmetto’s obligations under this Agreement.

SWGE shall indemnify, defend, and hold Palmetto and its affiliates, subsidiaries, parents,
and its and their respective directors, officers, stockholders, employees, and agents
harmless from and against any and all claims, losses, awards, judgments, settlements, fines,
penalties, liabilities, damages, costs or expenses (including reasonable out-of-pocket
attorney’s fees and expenses) incurred on account of any injury to or death of persons or
damages to property to the extent caused by or arising out of the gross negligence or
willful misconduct of SWGE, its officers, employees, or agents in performing SWGE’s
obligations under this Agreement.

	8.3	 	Force Majeure: In the event either Party is rendered unable, wholly or in part, by
Force Majeure to carry out its obligations under this Agreement, it is agreed that on such
Party’s giving notice in writing, or by telephone and confirmed in writing, to the other Party
as soon as possible after the commencement of such Force Majeure event, the obligations of the
Party giving such notice, so far as and to the extent they are affected by such Force Majeure,
shall be suspended from the commencement of such Force Majeure and during the remaining period
of such Force Majeure, but for no longer period, and such Force Majeure shall so far as
possible be remedied with all reasonable dispatch; provided, however, the obligation to make
payments then accrued hereunder prior to the occurrence of such Force Majeure shall not be
suspended.

	8.4	 	Limitation of Damages: NEITHER PARTY SHALL BE LIABLE OR OTHERWISE RESPONSIBLE TO THE
OTHER PARTY HEREUNDER FOR CONSEQUENTIAL, EXEMPLARY, SPECIAL, INCIDENTAL, OR PUNITIVE DAMAGES
AS TO ANY ACTION OR OMISSION, WHETHER CHARACTERIZED AS A CONTRACT BREACH OR TORT OR OTHERWISE
THAT ARISES OUT OF OR RELATES TO THIS AGREEMENT OR ITS PERFORMANCE EXCEPT FOR ANY SUCH AMOUNTS
PAID BY A PARTY TO A NON-AFFILIATE THIRD PARTY, WHICH WOULD THEREFORE BE CONSIDERED ACTUAL
DAMAGES INCURRED BY SUCH PARTY.

	8.5	 	Independent Contractor: It is expressly understood that the relationship of Palmetto
to SWGE is that of an independent contractor and nothing contained herein shall be construed
to create any partnership, agency, or employer/employee relationship. Palmetto may freely
choose the customers from whom business shall be solicited and the time and place for
solicitation.

 

6

 

	8.6	 	Notices: Any notices required to be given under this Agreement shall be in writing
and be sufficiently given when delivered in person or deposited in the U.S. mail (registered
or certified), postage prepaid, addressed as follows:

	 	 	 	 	 
	 

	 	SWGE:
	 	SOUTHWEST GEORGIA ETHANOL
	 

	 	 	 	4433 Lewis B. Collins Road Pelham, Georgia 31779
	 

	 	 	 	Attn: Murray Campbell, CEO
	 
	 	 	 	 
	 

	 	PALMETTO:
	 	PALMETTO GRAIN BROKERAGE, LLC
	 

	 	 	 	516 Browns Cove Road, Unit J
	 

	 	 	 	Ridgeland, SC 29936
	 

	 	 	 	Attn: Edgar Woods, President

	8.7	 	Entire Agreement: This Agreement contains the entire agreement between the Parties
and supersedes all previous agreements, either oral or written, between the Parties. The
language of this Agreement shall not be construed in favor of or against either Party, but
shall be construed as if the language was drafted mutually by both Parties. No modifications
hereof shall be valid unless made in writing and signed by both Parties.

	8.8	 	Waiver: The failure of either Party to enforce any of its rights hereunder on any
particular occasion shall not constitute a waiver of such rights on any subsequent occasion.

	8.9	 	Assignment: This Agreement may not be assigned by either Party without the prior
written consent of the other Party, which consent shall not be unreasonably withheld;
provided, however, that either party may assign its rights and responsibilities to a
subsidiary or similarly related organization if such assignment is part of a business
restructuring and such assignment does not materially impair or affect the rights and
obligations of the other Party.

	8.10 	 	
Headings: Any paragraph headings are used for convenience only and are not intended
and shall not be used in interpreting any provisions of this Agreement.

	8.11	 	No Third Party Beneficiary: Except as otherwise provided herein, nothing contained in
this Agreement shall be considered or construed as conferring any right or benefit on a person
not a Party to this Agreement and neither this Agreement nor the performance hereunder shall
be deemed to have created a joint venture or partnership between the Parties.

	8.12	 	Governing Law: This Agreement shall be governed by the laws of the State of Georgia
without regard to the conflict of laws provisions thereof. Each of the parties hereto
irrevocably submits to the jurisdiction of any state or federal court sitting in the State of
Georgia in any action or proceeding brought to enforce or otherwise arising out of or relating
to this Agreement.

	8.13	 	Arbitration: Any dispute arising out of or in connection with this Agreement shall be
submitted to arbitration. The arbitration shall be conducted according to the Commercial
Arbitration Rules of the American Arbitration Association. The place of arbitration shall be
Atlanta, Georgia or such other place as may be agreed upon by the Parties. Both Parties shall
attempt to agree upon one arbitrator, but if they are unable to agree, each shall appoint an
arbitrator and these two shall appoint a third arbitrator. Expenses of the arbitrator(s) shall
be divided equally between the Parties. Judgment upon the award rendered by the arbitrator(s)
may be entered in any court having jurisdiction thereat and shall be enforceable against the
Parties.

 

7

 

	8.14	 	Severability: If any term or provision of this Agreement is held by a court of
competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms and
provisions of this Agreement shall remain in full force and effect and shall in no way be
affected, impaired or
invalidated so long as the economic or legal substance of the transactions contemplated
hereby is not affected in any manner materially adverse to a Party. Upon such determination,
the Parties shall negotiate in good faith to modify this Agreement so as to affect the
original intent of the Parties as closely as possible in an acceptable manner so that the
transactions contemplated hereby be consummated as originally contemplated to the fullest
extent possible.

	8.15	 	Confidentiality: The terms of this Agreement and any non-public information provided
to either Party pursuant to this Agreement are confidential and the Party receiving such
information will hold, and will cause its agents, accountants and advisors to hold, all such
information in confidence, unless it is compelled to disclose such information by judicial or
administrative process or by other requirements of law. Notwithstanding any other provision
contained in this Agreement, Palmetto acknowledges and agrees that the disclosure of this
Agreement and the transactions contemplated hereby by SWGE in any report filed with the
Securities and Exchange Commission at any time after the date hereof will not be a violation
of this Section 8.15.

In WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed as of the
date first written above.

	 	 	 	 	 	 	 
	PALMETTO GRAIN BROKERAGE, LLC	 	SOUTHWEST GEORGIA ETHANOL
	 
	 	 	 	 	 	 
	By:

	 	/s/ Edgar Woods
	 	By:
	 	/s/ Murray Campbell
	 

	 	 
	 	 	 	 
	 

	 	Edgar Woods, President
	 	 	 	Murray Campbell, CEO
	 
	 	 	 	 	 	 
	Date: 12-15-09	 	Date: 12/31/09

 

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