Document:

Exhibit 10.9
	 

	 
		EXECUTION COPY
	 

	 
		Confidential treatment has been requested
		and granted for portions of this exhibit. The copy filed herewith omits the
		information for which confidential treatment has been granted by the Securities
		and Exchange Commission. Omissions are designated as [*].
	 

	 
		CORN SUPPLY AGREEMENT
	 

	 
		This Corn Supply Agreement
		(“Agreement”) is made this 25th day of September, 2006, by
		and between Cargill, Incorporated (“Cargill”), a Delaware corporation
		with a place of business at 15407 McGinty Road West, Wayzata, MN 55391, and
		Buffalo Lake Energy, LLC
		(“Producer”), a Delaware
		limited liability company. Cargill and Producer are each a “Party”
		and collectively are the “Parties” to this Agreement. 
	 

	 
		RECITALS
	 

	 
			
				
				  1.
				

			 	
				
				  Producer intends to construct, own
				  and operate a plant at Fairmont, Minnesota for the production of 115 million
				  gallons per year of denatured fuel grade ethanol (“Ethanol
				  Facility”).
				

			 

 

	 
			
				
				  2.
				

			 	
				
				  The Ethanol Facility will be located
				  immediately adjacent to Cargill’s grain handling facility located in
				  Fairmont, Minnesota (“Grain Facility”).
				

			 

 

	 
			
				
				  3.
				

			 	
				
				  Producer and Cargill have executed
				  that certain Grain Facility Lease under which Producer will lease from Cargill
				  the Grain Facility for the purpose of receiving, storing and handling Corn (as
				  defined below).
				

			 

 

	 
			
				
				  4.
				

			 	
				
				  The Parties intend for Producer to
				  purchase Corn exclusively from Cargill for the purpose of ethanol production at
				  the Ethanol Facility.
				

			 

 

	 
			
				
				  5.
				

			 	
				
				  Producer and Cargill have executed
				  that certain Master Agreement of even date herewith (the “Master
				  Agreement”).
				

			 

 

	 
			
				
				  6.
				

			 	
				
				  In consideration of the terms,
				  conditions and covenants contained in this Agreement and other good and
				  valuable consideration, the sufficiency of which is hereby acknowledged, the
				  Parties agree as follows.
				

			 

 

	 
		AGREEMENT
	 

	 
		1. Master Agreement. The terms and conditions of the Master Agreement are
		hereby incorporated herein by reference. To the extent any provision of the
		Master Agreement conflicts with any provision contained herein, the provision
		contained herein will control. Terms capitalized but not defined in this
		Agreement shall have the meanings ascribed to them by the Master
		Agreement.
	 

	 
		2. Exclusive Supplier. Producer will purchase exclusively from Cargill, and
		Cargill will sell and deliver to Producer, all of Producer’s Corn
		requirements for ethanol production at the Ethanol Facility, including any Corn
		requirements that result from the future expansion of the Ethanol Facility so
		long as such expansion does not increase the Corn requirements to volumes in
		excess of 44.2 million bushels per year, subject to and in accordance with the
		terms and conditions of this Agreement. It is anticipated that Producer’s
		Corn requirements at the Ethanol Facility will be approximately 40.7 million
		bushels per year. Cargill will have absolute discretion to manage all
		logistics, accounting and related operations in connection with the
		origination, handling, and delivery of Corn to Producer except as otherwise provided in this Agreement.
		Notwithstanding the foregoing, Producer
		shall have the right to purchase Corn from third parties if Cargill fails to
		make any delivery evidenced by a Sales Confirmation but only to the extent of
		such failure.
	 

	 
		3. Corn Specifications. All corn delivered to Producer will be U.S. No. 2
		yellow dent corn with maximum moisture of 15.0%, and subject to discounts or
		premiums as mutually agreed upon in writing by the Parties. Additionally, all
		corn will comply with all other specifications, if any, as mutually agreed upon
		in writing from time to time by the Parties. Such other specifications may set
		forth toxin standards
	 

	 
		 
	 

	 
		 
	 

	 
 

	 
		including without limitation standards
		relating to mycotoxins and vomitoxins. Corn meeting the specifications herein
		is referred to in this Agreement as “Corn”. 
	 

	 
		4. Alternative Commodity. If, and to the extent, Producer uses any raw commodity
		or feedstock other than Corn as a substitute or alternative in the production
		of ethanol at the Ethanol Facility (“Alternative Feedstock”), Cargill
		will have a right of first negotiation for Cargill to be the supplier of such
		Alternative Feedstock, and if the Parties do not reach agreement after good
		faith negotiations, then Cargill will have a right of first refusal on any bona
		fide supply arrangement reached with any third party for the supply of such
		Alternative Feedstock. 
	 

	 
		5. Delivery, Title and Risk of Loss. Corn will be delivered to the Grain Facility at
		the truck dump or rail pit, as applicable. Upon delivery, title and risk of
		loss will transfer to Producer. All Corn delivered will be free and clear of
		all liens. Upon delivery, Producer will weigh, sample,
		analyze and grade, at its sole expense, all
		Corn in accordance with federal grain inspection standards. 
	 

	 
		6. Forecasts, Orders and Sales
		Confirmations. 
	 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  Forecasts. On a monthly basis, Producer shall provide to Cargill
				  a written forecast estimating Producer’s anticipated Corn requirements for
				  the immediately following twelve (12) month period (“Forecast”).
				  
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  Orders. Each Cargill
				  Working Day, Cargill will provide to
				  Commodity Manager (as defined below) a copy of Cargill’s applicable bid
				  sheet reflecting expected basis levels (including futures reference month)
				  required to purchase grain for each delivery period. Cargill will use
				  commercially reasonable efforts to provide appropriate market information to
				  the Commodity Manager as reasonably requested, without guarantee of accuracy or
				  completeness, provided that Cargill did not engage in fraud or
				  willful misconduct. The Commodity Manager
				  will provide Cargill with a Corn purchase limit order sheet (the “Limit
				  Order Sheet”). The Limit Order Sheet will instruct Cargill to purchase up
				  to a given quantity of Corn for each delivery period at a cash corn basis at or
				  below the basis amounts set forth in the applicable Limit Order Sheet. Cargill
				  may contract for the purchase of Corn at terms up to the limits set forth in
				  the most current Limit Order Sheet. Subject to the other terms and conditions
				  herein, Cargill will use commercially reasonable efforts to procure Corn at the
				  lowest deliverable cost. 
				

			 

 

	 
		Cargill will provide updates to Commodity
		Manager regarding its ability to execute orders pursuant to the Limit Order
		Sheet, as well as regarding changes in the market, and Cargill will be excused
		from performance to the extent it cannot procure Producer’s Corn
		requirements based on the parameters set forth in the applicable Limit Order
		Sheet. To the extent Corn purchases in excess of the Limit Order Sheets in any
		consecutive 12-month period either (i) reflect basis levels of greater than
		$800,000 on an aggregate basis for all overages or (ii) volumes of 500,000
		bushels or more, any such overages in basis levels or volumes shall not be
		considered a breach, and Producer’s sole remedy shall be the right to set
		off any incremental costs incurred as a direct result of such excess purchases
		against amounts owed to Cargill; provided, however, the costs resulting from
		volume overages described in Section 6(b)(ii) shall be established by comparing
		the basis level set forth in the Limit Order Sheet for the day in which each
		specific bushel overage (i.e., each overage that constitutes a portion of the
		aggregate 500,000 overage) occurred with the applicable basis levels as of the
		date in which the aggregate volume overages exceed 500,000 bushels. Cargill may
		provide the Commodity Manager with updated bid sheets, based upon which the
		Commodity Manager may prudently and opportunely update the Limit Order Sheet.
		If Cargill determines that it cannot originate Corn at or below the limits of
		the applicable Limit Order Sheet, Cargill will promptly provide
		Producer written or oral notification, and the Parties will discuss
		alternatives for procuring
	 

	 
		 
	 

	 
		2
	 

	 
 

	 
		Corn to satisfy Producer’s Corn
		requirements. Except to the extent specifically provided herein, Cargill will
		have sole discretion with respect to its origination of the Corn. 
	 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  Sales
				  Confirmations. Each sale of Corn to
				  Producer shall be evidenced by a separate Cargill sales confirmation
				  (“Sales Confirmation”). Each Sales Confirmation at a minimum shall
				  specify the quantity and quality of the Corn, the delivery date and delivery
				  location, the purchase price (i.e., the applicable basis and futures reference
				  month as determined in accordance with Section 6(a) above), and any applicable
				  discount from or premium to the purchase price, and such other information as
				  the Parties may agree to include. On a weekly basis (on Monday or the first
				  business day of each week), Cargill will issue a Sales
				  Confirmation for each delivery period in which it procured corn for
				  the Project Company. To the extent that any terms of any Sales Confirmation
				  conflict with the terms of this Agreement, the terms of this Agreement shall
				  govern unless both Parties have specifically expressed their intent in writing
				  to supercede the terms of this Agreement. If both parties mutually agree that a
				  Sales Confirmation may be cancelled, then such Sales Confirmation will be
				  cancelled. Upon Producer’s written request, Cargill will,
				  within a reasonable time period, provide
				  Producer with a summary of the terms of Cargill’s cash corn contracts
				  relating to all Corn delivered to Producer that is not sourced from a grain
				  facility owned by Cargill or its Affiliates.
				

			 

 

	 
		7. Market Updates.
		On a monthly basis, Cargill will provide Producer with corn market updates.
		Additionally, Cargill may provide Producer with input regarding Producer’s
		plans for Corn procurement and storage, including input on forward purchases,
		amount of grain held in storage and basis risk management; provided, however,
		that any such information provided by Cargill to Producer will be provided
		solely for informational purposes, without any guaranty of accuracy or
		completeness, provided that Cargill did not
		engage in fraud or willful misconduct.
		Such updates may be provided in writing
		or orally each Cargill Working
		Day. Cargill will provide the Commodity
		Manager with Corn “to arrive” information, based upon which the
		Commodity Manager may prepare the following day’s Limit Order Sheet.
		“Cargill Working Day” means
		Monday, Tuesday, Wednesday, Thursday or Friday except for Cargill Holidays.
		“Cargill Holidays” are New Years Day, Presidents Day, Good Friday,
		Memorial Day, July 4th, Labor Day, Thanksgiving Day, the day after
		Thanksgiving Day, Christmas Eve Day and Christmas Day (or, with respect to
		Christmas, the Cargill Holidays may differ from actual Christmas Eve Day and
		Christmas Day if such days fall on a weekend).
	 

	 
		8. Cargill’s Corn Origination Model. The Parties acknowledge that Cargill expects to follow
		a Corn origination model that is substantially similar to the model that is
		currently in use at the Grain Facility. 
	 

	 
		9. IT
		Systems Coordination. Cargill and
		Producer will use commercially reasonable efforts to develop IT systems that
		are capable of providing Cargill with real time information on (a) Corn
		deliveries to the Grain Facility, and (b) changes to the amount of Corn held in
		storage in the Grain Facility; and that are capable of providing Producer with
		information on its cash corn positions, price and quantity according to both
		delivery month and estimated delivery schedule. Additionally, the Grain
		Facility will continue to use a scale integrator system compatible with the
		Cargill’s system in order for Cargill to monitor remotely deliveries of
		Corn. 
	 

	 
		10. Producer Resale of Corn. If Producer decides to resell any Corn for any reason
		including Force Majeure that has been delivered to the Grain Facility instead
		of processing such Corn into ethanol, then Cargill will arrange for such
		resale, including arrangement of transportation. In consideration of such
		service from Cargill, Producer will pay to Cargill a service fee equal to
		Cargill’s actual costs incurred plus $0.02 per bushel of Corn intended for
		resale. 
	 

	 
		11. Initial Quantity. Producer expects to purchase 1,500,000 bushels of Corn
		(the “Initial Quantity”) for delivery by March 1, 2007 (the
		“Projected Date of First Delivery”). Producer shall notify Cargill
		two (2) months in advance of the Projected Date of First Delivery of any
		revisions to the Initial Quantity or 
	 

	 
		 
	 

	 
		3
	 

	 
 

	 
		Projected Date of First Delivery, together
		with its anticipated need for Corn during the first six months of operations at
		the Ethanol Facility. To the extent that such origination activity is requested
		prior to the Effective Date, the terms and conditions of this Agreement shall
		apply to such origination activity notwithstanding the fact that Effective Date
		has not yet occurred.
	 

	 
		12. Purchase Price.
		The purchase price (“Purchase Price”) of the Corn shall be the sum of
		the Base Corn Price and the Origination Fee, which are defined as
		follows:
	 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  Base Corn Price. Producer shall pay to Cargill the Base Corn Price for
				  Corn supplied to the Grain Facility. For purposes of this Section 12, the term
				  “basis” means the difference between the current cash price of U.S.
				  No. 2 yellow corn and the futures price of U.S. No. 2 yellow corn for the
				  nearby futures contract month.
				

			 

 

	 
		In the case of Corn arriving at the Grain
		Facility from third parties, the Base Corn Price will be: 
	 

	 
		i. The weighted average “basis” price that
		Cargill paid or contracted to pay to procure Corn during the immediately
		preceding week for each respective delivery period (i.e., there may be a
		different basis price for different delivery periods); plus 
	 

	 
		ii. The applicable futures price, as
		determined under the Corn Advisory Agreement between Cargill Commodity
		Services, Inc. and Producer, or as determined by Producer in accordance with
		another futures advisory service if the Corn Advisory Agreement is not then in
		effect; plus or minus 
	 

	 
		iii. Applicable quality discounts or
		premiums as mutually agreed in writing by the Parties.
	 

	 
		In the case of Corn arriving directly
		from Cargill’s grain elevators (including, without limitation,
		Cargill’s elevators in Marna, Guckeen and Alpha), the Base Corn Price will
		be: a value to be mutually agreed upon
		by the Parties, with such value targeted at the fair market value. 
	 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  Origination Fee. Producer shall pay to Cargill a fee of [*] (USD $[*])
				  per bushel of Corn delivered to the Grain Facility (“the Origination
				  Fee”). The Origination Fee will increase each Contract Year in accordance
				  with the CPI Index for Minnesota. 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  Origination Fee
				  Adjustment.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  On the fifth (5th)
				  anniversary of the Effective Date of this Agreement, upon the written request
				  of either Party, the Parties shall negotiate in good faith to adjust the
				  Origination Fee to take into account changes in market conditions, operating
				  conditions or costs, inflation or other factors; provided,
				  however, that in the event the Parties are unable to agree to
				  any such adjustments within thirty (30) days following commencement of such
				  negotiations, the Origination Fee will be unchanged and in full force and
				  effect.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  On the seventh (7th)
				  anniversary of the Effective Date of this Agreement, and every five (5) years
				  thereafter, at the written request of either Party, the Parties shall negotiate
				  in good faith to adjust the Origination Fee then in effect to take into account
				  changes in market conditions, operating conditions or costs, inflation or other
				  factors; provided, however, that in
				  the event the Parties are unable to agree to any such adjustments within thirty
				  (30) days following commencement of such negotiations, at the written request
				  of either Party the dispute shall be settled by “baseball”
				  arbitration in accordance with Section 12(c)(iii).
				

			 

 

	 
		* Certain confidential information on
		this page has been omitted and filed separately with the Securities and
		Exchange Commission.
	 

	 
		 
	 

	 
		4
	 

	 
 

	 
			
				
				   
				

			 	
				
				  (iii)
				

			 	
				
				  Following delivery of a written
				  request to arbitrate an Origination Fee dispute pursuant to Section 12(c)(ii),
				  the Parties shall, within thirty (30) days, each elect an independent
				  arbitrator with experience in the grain supply industry. Within fifteen (15)
				  days thereafter, the two arbitrators selected by the Parties shall confer and
				  agree on a third independent arbitrator with experience in the grain supply
				  industry. The Parties shall each submit to the arbitrators the amount of the
				  Origination Fee requested by such Party, together with supporting documentation
				  as such Party may determine reasonable. Within ten (10) days thereafter, the
				  arbitrators shall select, by a majority vote, the submission of one of the
				  Parties as the Origination Fee that will be applicable to this Agreement from
				  that date until the next adjustment period. The selection made by the
				  arbitrators shall be conclusive, binding on the Parties and not subject to
				  challenge or appeal in any forum; provided,
				  however, that at any time during the arbitration process, the
				  Parties may agree on the Origination Fee. The Parties may also agree to use a
				  single independent arbitrator in lieu of the three arbitrators as contemplated
				  herein, and in that case selection by the single expert will be binding on the
				  Parties.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  Minimum Fee.
				  Notwithstanding any other provisions in this Agreement but provided
				  that Cargill is not in breach of the obligations hereunder, Producer will pay to Cargill a minimum Origination Fee
				  of USD $1,200,000.00 in each Contract Year (the “Minimum Fee”). For
				  clarification purposes, and without limiting the foregoing, the Minimum Fee
				  will apply even where Producer claims Force Majeure.
				

			 

 

	 
			
				
				  13.
				

			 	
				
				  Payment.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  Invoice. By no later than 10 a.m. CST on each Cargill Working Day
				  after Corn is supplied to the Grain Facility, Cargill will send an invoice
				  electronically to Producer setting forth the Purchase Price due from Producer
				  for all such Corn (“Invoice”). 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  Payment Due.
				  
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  Producer shall pay to Cargill the
				  amount set forth in each Invoice no later than by 12:00 noon on the Payment
				  Date. For purposes of this Section 13(b)(i), the term “Payment Date”
				  means (x) during the first Contract Year, three (3) business days after Corn is
				  supplied to the Grain Facility, (y) during the second Contract Year, two (2)
				  business days after Corn is supplied to the Grain Facility and (z) thereafter,
				  one (1) business day after Corn is supplied to the Grain Facility. 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  Payment by Producer shall be made
				  via ACH electronic payment. In addition to any other rights that Cargill may
				  have relating to Producer’s failure to pay by the Payment Deadline,
				  Cargill shall be entitled to apply, and Producer shall pay to Cargill, interest
				  on all amounts outstanding past the Payment Deadline at the rate equal to the
				  Default Rate. 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iii)
				

			 	
				
				  Notwithstanding anything to the
				  contrary in Section 13(b)(i), Invoices up
				  to the initial USD $3,000,000.00 of Corn
				  supplied to the Grain Facility for the period from the Effective Date through
				  the 14th business day following the Effective Date (the
				  “Start-up Period”) shall be payable no later than by 12:00 noon on
				  the 74 th business day following the Effective Date (the
				  “Deferred Payment Date”); provided,
				  however, that interest shall accrue, and be payable by
				  Producer, at the rate equal to the Default Rate on all Start-up Period Invoice
				  amounts outstanding on the Payment Date until payment in full of such amounts.
				  “Default Rate” means an interest rate per annum equal to the interest
				  rate per annum for large
				

			 

 

	 
		 
	 

	 
		5
	 

	 
 

	 
		commercial loans as published in
		The Wall Street Journal, Midwest edition, as the “prime rate”
		(sometimes referred to as the “base rate”) from time to time (or, if
		more than one rate is published, the arithmetic mean of such rates), determined
		as of the date the obligation to pay interest arises, plus two hundred
		(200) basis points. 
	 

	 
			
				
				   
				

			 	
				
				  (iv)
				

			 	
				
				  Invoices for Corn supplied to the
				  Grain Facility for the Start-up Period in excess of USD $3,000,000, but not
				  exceeding USD $8,000,000, shall be
				  paid by Producer by the Payment Date in accordance with Section 13(b)(i)
				  or, upon Producer’s
				  request, by the Deferred Payment Date in
				  accordance with Section 13(b)(iii) if
				  Producer has provided Cargill with
				  an irrevocable letter of credit in a form
				  reasonably acceptable to Cargill and in an amount corresponding to
				  Cargill’s invoices in excess of USD $3,000,000.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  Nonpayment. In addition to any other remedies available to Cargill
				  under this Agreement, but subject to the
				  provisions of the Master Agreement,
				  Producer will be responsible for any and all resulting costs, expenses, losses,
				  or damages incurred by Cargill in the event Producer fails to make timely
				  payment. 
				

			 

 

	 
		14. Contact Persons.
		In order to facilitate the performance by both Parties of the terms of this
		Agreement in an efficient and expedient manner, and in order to provide for the
		timely exchange of information necessary or appropriate to fulfill the
		intentions of the Parties under this Agreement, each Party will appoint a
		primary contact. In the case of Producer, the primary contact will be
		Producer’s Commodity Manager. In the case of Cargill, the primary contact
		will be the Cargill, Incorporated AgHorizon Business Unit Farm Service Group
		Leader responsible for the territory in which the Grain Facility is located.
		The Primary Contacts will remain the Primary Contacts unless either Party
		provides the other Party with notice of a different Primary Contact pursuant to
		Section 10(b) (Notices) of the Master Agreement.
	 

	 
		15. Reserved.

	 

	 
		16. Term. The term
		of this Agreement is twenty (20) years, commencing as of the Effective Date.
		This Agreement will automatically renew for consecutive two (2) year terms
		unless at least one (1) year before the expiration of the then current term
		either Party provides written notice to the other Party of its intent not to
		renew. The Effective Date shall be the date of Provisional Acceptance (as
		defined in the Agreement for Engineering, Procurement and Construction, dated
		as of April 28, 2006, between Tenant and TIC - The Industrial Company Wyoming,
		Inc.). A “Contract Year” refers to the 365 consecutive day period
		commencing as of the Effective Date and each 365 consecutive day period
		thereafter.
	 

	 
		17. Producer Events of Default. The following shall constitute events of default on
		the part of Producer (each, a “Producer Event of Default”) under this
		Agreement: 
	 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  Producer fails to pay any amount
				  that is due to Cargill under this Agreement that is not excused by this
				  Agreement, and (i) Cargill provides written notice to Producer of such failure,
				  and (ii) Producer fails to pay to Cargill such past-due amount (plus all
				  accrued interest) within 30 days of Producer’s receipt of Cargill’s
				  written notice;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  three or more incidents of willful
				  misconduct by Producer, or any of Producer’s employees, agents or
				  representatives in the performance of or in connection with Producer’s
				  obligations hereunder occur in any 12 month period and Cargill provides
				  Producer with written notice of each such incident, or any on incident of
				  willful misconduct by Producer occurs where (i) such willful misconduct has a
				  Material Adverse Effect on Cargill or the Grain Facility, and (ii) such willful
				  misconduct is done under the direction of, with the knowledge of, or otherwise
				  sanctioned by an officer of Producer;
				

			 

 

	 
		 
	 

	 
		6
	 

	 
 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  Producer procures or purchases Corn
				  or Alternative Commodity for ethanol production at the Ethanol Facility from
				  any entity or person other than Cargill, except as permitted hereunder;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  Producer files a voluntary petition
				  in bankruptcy, has filed against it an involuntary petition in bankruptcy,
				  makes an assignment for the benefit of creditors, has a trustee or receiver
				  appointed for any or all of its assets, is insolvent or fails or is unable to
				  pay its debts generally when due, in each case where such petition, appointment
				  or insolvency is not dismissed, discharged or remedied, as applicable, within
				  sixty (60) days; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (e)
				

			 	
				
				  Producer sells, leases, assigns or
				  otherwise transfers the Ethanol Facility or any rights in the Principal
				  Documents or the Grain Facility Lease to a third party other than as permitted
				  in this Agreement or any other agreement to which Cargill and Producer are
				  parties; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (f)
				

			 	
				
				  The Grain Facility Lease expires or
				  is terminated for any reason whatsoever attributable to Producer; or
				

			 

 

	 
			
				
				   
				

			 	
				
				  (g)
				

			 	
				
				  Producer fails to comply with any
				  final and binding arbitration award rendered pursuant to Section 6 of the
				  Master Agreement.
				

			 

 

	 
		18. Cargill Events of Default. The following shall constitute events of default on
		the part of Cargill (each, a “Cargill Event of Default”) under this
		Agreement: 
	 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  Cargill fails to deliver the
				  quantities of Corn required to be delivered within the period(s) set forth in
				  the applicable Sales Confirmation on five (5) separate occurrences within any
				  12 month period under circumstances where (i) such failure directly results in
				  the inability of the Ethanol Plant to produce ethanol because of the absence of
				  Corn, or (ii) it is substantially certain (applying an objective standard) that
				  such failure will directly result in the inability of the Ethanol Plant to
				  produce ethanol at the same level of production at which Producer was producing
				  ethanol immediately prior to such failure, and Producer intended to produce
				  ethanol at the same or higher level of production at which Producer was
				  producing ethanol immediately prior to such failure; provided however, that any
				  such failure will not constitute a triggering occurrence hereunder if (x) such
				  failure is excused under this Agreement or the Master Agreement, including
				  without limitation an event of Force Majeure, (y) such failure is caused in any
				  part by Producer or Producer’s agents, employees, representatives,
				  contractors or invitees, or (z) Producer has failed to provide Cargill with
				  immediate written notice of such failure, or if such written notice has been
				  provided on a timely basis, Cargill has cured such failure within 72 hours of
				  its receipt of the written notice. 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  three or more incidents of willful
				  misconduct by Cargill or any of Cargill’s employees, agents or
				  representatives in the performance of or in connection with Cargill’s
				  obligations hereunder occur in any 12 month period and Producer provides
				  Cargill with written notice of each such incident, or any one incident of
				  willful misconduct by Cargill occurs where (i) such willful misconduct has a
				  Material Adverse Effect on Producer or the Ethanol Facility, and (ii) such
				  willful misconduct is done under the direction of, with the knowledge of, or
				  otherwise sanctioned by an officer of Cargill within the AgHorizons business
				  unit; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  Cargill files a voluntary petition
				  in bankruptcy, has filed against it an involuntary petition in bankruptcy,
				  makes an assignment for the benefit of creditors, has a trustee or receiver
				  appointed for any or all of its assets, is insolvent or fails or is unable to
				  pay its debts generally when due, in each case where such petition, appointment
				  or insolvency is not dismissed, discharged or remedied, as applicable, within
				  sixty (60) days; 
				

			 

 

	 
		 
	 

	 
		7
	 

	 
 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  Cargill fails to comply with any
				  final and binding arbitration award rendered pursuant to Section 6 of the
				  Master Agreement;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (e)
				

			 	
				
				  Cargill fails to pay any amount that
				  is due to Producer under this Agreement that is not excused by this Agreement,
				  and (i) Producer provides written notice to Cargill of such failure, and (ii)
				  Cargill fails to pay to Producer such past-due amount within five (5) days of
				  Cargill’s receipt of Producer’s written notice; or
				

			 

 

	 
			
				
				   
				

			 	
				
				  (f)
				

			 	
				
				  Expiration or the termination of the
				  Grain Facility Lease for reasons attributable to Cargill.
				

			 

 

	 
		19. Remedies for Breach Not Constituting an Event of
		Default. In the event that either Party
		breaches or fails to perform any commitment or obligation contained herein,
		under circumstances where such breach or failure does not constitute an Event
		of Default, and such breach or failure is not excused by this Agreement,
		including by a Force Majeure condition, the other Party (the
		“Non-Defaulting
		Party”) may exercise any remedy or
		right specified in the Master Agreement or this Agreement in connection with
		such breach or failure. In addition, and without limiting the foregoing:

	 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  If (i) Producer at any time owes
				  Cargill $500,000 or more for Corn delivered to the Grain Facility, or (ii)
				  Cargill’s mark-to-market exposure on Corn procured for Producer but not
				  yet delivered exceeds $1,000,000, then Cargill may exercise any one or more of
				  the following remedies: (x) suspend performance of its obligations under this
				  Agreement, including without limitation origination and delivery of Corn to
				  Producer, until Producer is below the dollar thresholds set forth in Section
				  19(a)(i) and (ii), (y) require Producer to provide an irrevocable
				  letter of credit in a form reasonably acceptable to Cargill as adequate
				  assurance for amounts in excess of $500,000
				  in the case of subparagraph (i) above or $1,000,000 in the case of subparagraph
				  (ii) above, or (z)
				  with respect to mark-to-market exposure on Corn, unwind cash
				  positions to limit Cargill’s exposure on Corn. For purposes of this
				  section, “mark-to-market exposure” refers to the difference, in the
				  aggregate, between the actual price
				  Cargill sold the Corn
				  to Producer and the current market price for such Corn (based on
				  Cargill’s daily posted basis or flat price, as applicable, for Corn
				  delivered to the Grain Facility) as adjusted daily; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  In the event either Party fails to
				  pay any amounts due to the other Party when due, the Non-Defaulting Party shall
				  be entitled to charge and receive interest accrued on the unpaid amount from
				  the date it was due until the date actually paid at the Default Rate;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  If a Party breaches or fails to
				  perform in any material respect any of its commitments or agreements contained
				  in this Agreement, the defaulting Party shall be liable to the Non-Defaulting
				  Party for Damages arising out of or resulting from such breach as provided in
				  Section 8 of the Master Agreement (subject to the Non-Defaulting Party’s
				  duty to mitigate its Damages). Notwithstanding the foregoing, Cargill’s
				  failure to deliver Producer quantities of Corn within the period set forth in
				  any applicable Sales Confirmation will give rise to a Producer claim for
				  Damages consistent with Rule 28 of the National Grain and Feed Association
				  Grain Trade Rules.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  If a Party breaches or fails to
				  perform in any material respect any of its commitments or agreements contained
				  in any Principal Document, and such breach or failure is of a continuing
				  nature, the Non-Defaulting Party may (A) request the defaulting Party, as a
				  condition of continuing its performance under this Agreement, to provide
				  adequate assurance of performance of the defaulting Party’s obligations
				  under this Agreement; and/or (B) seek injunctive relief.
				

			 

 

	 
		20. Remedies for Events of Default. Upon the occurrence of an Event of Default that has
		not been waived in writing by the Non-Defaulting Party, the Non-Defaulting
		Party shall have all of the following
	 

	 
		 
	 

	 
		8
	 

	 
 

	 
		rights and remedies in addition to the
		rights and remedies specified in Section 19 above, which may be exercised in
		such order or combination as such Non-Defaulting Party may determine: (i)
		terminate this Agreement, or (ii) subject to the limitations set forth in
		Section 8(c) of the Master Agreement (relating to consequential damages),
		pursue any other remedies available at law or in equity. 
	 

	 
		21. Warranties; Disclaimer. Cargill warrants to
		Producer that the Corn sold to Producer at the time delivered to the Grain
		Facility shall conform to the specifications for the Corn set forth herein or
		on the applicable Sales Confirmation, subject to applicable discounts or
		premiums. Cargill warrants that the Corn will not include any article or
		commodity that may not, under the provisions of the Food, Drug and Cosmetic
		Act, be introduced in U.S. interstate commerce. Cargill further warrants to
		Producer that it has title to the Corn free and clear of all liens and
		encumbrances. Except as specifically provided herein, CARGILL DISCLAIMS ANY AND
		ALL WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION
		THE WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. PRODUCER
		ASSUMES ALL RISK AND LIABILITY RESULTING FROM THE USE OF THE GRAIN, WHETHER
		USED SINGLY OR IN COMBINATION WITH OTHER SUBSTANCES OR IN ANY PROCESS. THERE
		ARE NO ORAL WARRANTIES COLLATERAL TO OR AFFECTING SUCH SALE. 
	 

	 
		22. Non-Conforming Corn.
	 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  All Corn shall be received subject
				  to Producer’s right of inspection and acceptance; provided, however, that
				  Corn must be accepted if it complies with specifications set forth in this
				  Agreement or the applicable Sales Confirmation if different from this
				  Agreement. Producer’s exclusive remedy and Cargill’s exclusive
				  liability for shipment of non-conforming Corn or for breach of warranty is
				  expressly limited to replacement, within a reasonable period of
				  time, of the non-conforming Corn at no additional charge to
				  Producer (shipping costs to be paid by Cargill); provided however, that any
				  Corn received into the Grain Facility will be deemed to have been accepted by
				  Producer as conforming Corn. All nonconforming Corn rightfully rejected shall
				  be returned to Cargill, at Cargill’s sole expense, or, at Cargill’s
				  direction, disposed of by Producer in a manner mutually acceptable to Producer
				  and Cargill with all costs of such disposition to be paid by Cargill.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  Notwithstanding anything to the
				  contrary in this Agreement, any claim by Producer with respect to any Corn or
				  any Sales Confirmation other than a claim for shipment of nonconforming Corn
				  (which shall be governed by Section 22(a)), whether based on breach of
				  warranty, contract, negligence, strict liability or other tort, shall be made
				  promptly by Producer upon Producer’s notice or knowledge of any such claim
				  and shall be deemed to be waived unless received, in writing, by Cargill within
				  ten (10) days after the delivery of the Corn to the Grain Facility.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  Notwithstanding anything to the
				  contrary in this Agreement, each Party agrees to use commercially reasonable
				  efforts to mitigate any Damages incurred by it hereunder.
				

			 

 

	 
		23. Force Majeure.
		In the event that Producer exercises its rights under Section 3 (Force Majeure)
		of the Master Agreement, Producer shall still be required to purchase all Corn
		originated by Cargill pursuant this Agreement for the time prior to
		Cargill’s receipt of the Force Majeure Notice and to pay to Cargill any
		outstanding amounts due under any Sales Confirmations, and any costs arising
		from diversion of the Corn. During the pendency of an event of Force Majeure
		claimed by Cargill, Producer may purchase corn from third parties to the extent
		reasonably necessary to mitigate any harm to Producer during the expected
		duration of the Force Majeure; however, Cargill shall have no liability
		whatsoever to Producer with respect to any corn or other feedstock purchased by
		Producer in connection with an event of Force Majeure claimed by
		Cargill.
	 

	 
		 
	 

	 
		9
	 

	 
 

	 
		24. Survival.
		The provisions of Section 13(c) shall
		survive the expiration or earlier termination of this Agreement. 
	 

	 
		25. No Partnership.
		There is no relationship of partnership, joint venture, employment, franchise,
		or agency between the Parties, and neither Party shall make any representation
		to the contrary. Under no circumstances shall Cargill be liable for the debts
		or obligations of Producer (including without limitation any bank financing,
		tax-exempt bonds or trade debt incurred by Producer) or for the wages,
		salaries, or benefits of Producer’s employees, and Producer hereby agrees
		to indemnify, defend, and hold harmless Cargill from and against the
		same.
	 

	 
		26. Integrated Agreements. The Parties hereby acknowledge and agree that the Corn
		Supply Agreement and the Grain Facility Lease have been negotiated and entered
		into simultaneously as integrated parts of one unified transaction with a
		common purpose. Without limiting the generality of the forgoing, (i) the
		Parties would not have entered into the Corn Supply Agreement and the Grain
		Facility Lease separately without entering into the other, (ii) the
		consideration for such agreements is not separate and distinct, but
		interrelated and incorporated by reference between the Corn Supply Agreement
		and the Grain Facility Lease, and (iii) in the event that either of the Parties
		becomes a debtor in bankruptcy, the Parties intend that the Corn Supply
		Agreement and the Grain Facility Lease are either accepted or rejected together
		as one executory contract.
	 

	 
		27. Grain Inventory.
		As of the Effective Date (as defined in the Grain Facility Lease), Cargill will
		have in storage at the Grain Facility inventories of grain (the “Grain
		Inventory”) and will have certain amounts of corn under contract to arrive
		at the Grain Facility on or after the Effective Date (“To Arrive
		Grain”). As of the Effective Date, Producer agrees to purchase all of the
		Grain Inventory and To Arrive Grain at a price to be mutually agreed upon by
		the Parties as of the Effective Date. Cargill and Producer will select an
		independent third party to determine the quantity of the Grain Inventory by
		either weighing up or measuring up the Grain Inventory, and to determine the
		grade of the Grain Inventory by using an inspection agency satisfactory to
		Cargill and Producer. All samples of the Grain Inventory will be taken under
		the supervision of the Parties. The third party inspection agency will maintain
		the grain samples for 30 days. 
	 

	 
		[Signature page follows]
	 

	 
		 
	 

	 
		10
	 

	 
 

	 
		IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
		date first entered above.
	 

	 
		 
	 

	 
			
				
				  CARGILL, INCORPORATED
				

			 	
				
				   
				

			 	
				
				  BUFFALO LAKE ENERGY,
				  LLC
				

			 
	
				
				  
 By:
				

			 	
				
				  /s/ Dennis Inman
				

			 	
				
				   
				

			 	
				
				  By:
				

			 	
				
				  /s/ Scott H. Pearce
				

			 
	
				
				  Name: 
				

			 	
				
				  Dennis Inman
				

			 	
				
				   
				

			 	
				
				  Name: 
				

			 	
				
				  Scott H. Pearce
				

			 
	
				
				  Title:
				

			 	
				
				  V.P. Cargill
				  AgHorizons
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 	
				
				  Authorized
				  Representative
				

			 
	
				
				  Date:
				

			 	
				
				  September 25, 2006
				

			 	
				
				   
				

			 	
				
				  Date:
				

			 	
				
				  September 25, 2006Exhibit 10.10
	 

	 
		EXECUTION COPY
	 

	 
		Confidential treatment has been requested
		and granted for portions of this exhibit. The copy filed herewith omits the
		information for which confidential treatmet has been granted by the Securities
		and Exchange Commission. Omissions are designated as [*].
	 

	 
		CORN SUPPLY AGREEMENT
	 

	 
		This Corn Supply Agreement
		(“Agreement”) is made this 25th day of September, 2006, by
		and between Cargill, Incorporated (“Cargill”), a Delaware corporation
		with a place of business at 15407 McGinty Road West, Wayzata, MN 55391, and
		Pioneer Trail Energy, LLC
		(“Producer”), a Delaware
		limited liability company. Cargill and Producer are each a “Party”
		and collectively are the “Parties” to this Agreement. 
	 

	 
		RECITALS
	 

	 
			
				
				  1.
				

			 	
				
				  Producer intends to construct, own
				  and operate a plant at Wood River, Nebraska for the production of 115 million
				  gallons per year of denatured fuel grade ethanol (“Ethanol
				  Facility”).
				

			 

 

	 
			
				
				  2.
				

			 	
				
				  The Ethanol Facility will be located
				  immediately adjacent to Cargill’s grain handling facility located in Wood
				  River, Nebraska (“Grain Facility”).
				

			 

 

	 
			
				
				  3.
				

			 	
				
				  Producer and Cargill have executed
				  that certain Grain Facility Lease under which Producer will lease from Cargill
				  the Grain Facility for the purpose of receiving, storing and handling Corn (as
				  defined below).
				

			 

 

	 
			
				
				  4.
				

			 	
				
				  The Parties intend for Producer to
				  purchase Corn exclusively from Cargill for the purpose of ethanol production at
				  the Ethanol Facility.
				

			 

 

	 
			
				
				  5.
				

			 	
				
				  Producer and Cargill have executed
				  that certain Master Agreement of even date herewith (the “Master
				  Agreement”).
				

			 

 

	 
			
				
				  6.
				

			 	
				
				  In consideration of the terms,
				  conditions and covenants contained in this Agreement and other good and
				  valuable consideration, the sufficiency of which is hereby acknowledged, the
				  Parties agree as follows.
				

			 

 

	 
		AGREEMENT
	 

	 
		1. Master Agreement. The terms and conditions of the Master Agreement are
		hereby incorporated herein by reference. To the extent any provision of the
		Master Agreement conflicts with any provision contained herein, the provision
		contained herein will control. Terms capitalized but not defined in this
		Agreement shall have the meanings ascribed to them by the Master
		Agreement.
	 

	 
		2. Exclusive Supplier. Producer will purchase exclusively from Cargill, and
		Cargill will sell and deliver to Producer, all of Producer’s Corn
		requirements for ethanol production at the Ethanol Facility, including any Corn
		requirements that result from the future expansion of the Ethanol Facility so
		long as such expansion does not increase the Corn requirements to volumes in
		excess of 44.2 million bushels per year, subject to and in accordance with the
		terms and conditions of this Agreement. It is anticipated that Producer’s
		Corn requirements at the Ethanol Facility will be approximately 40.7 million
		bushels per year. Cargill will have absolute discretion to manage all
		logistics, accounting and related operations in connection with the
		origination, handling, and delivery of Corn to Producer except as otherwise
		provided in this Agreement. Notwithstanding the foregoing, Producer shall have
		the right to purchase Corn from third parties if Cargill fails to make any
		delivery evidenced by a Sales Confirmation but only to the extent of such
		failure.
	 

	 
		3. Corn Specifications. All corn delivered to Producer will be U.S. No. 2
		yellow dent corn with maximum moisture of 15.0%, and subject to discounts or
		premiums as mutually agreed upon in writing by the Parties. Additionally, all
		corn will comply with all other specifications, if any, as mutually agreed upon
		in writing from time to time by the Parties. Such other specifications may set
		forth toxin standards 
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
 

	 
		including without limitation standards
		relating to mycotoxins and vomitoxins. Corn meeting the specifications herein
		is referred to in this Agreement as “Corn”. 
	 

	 
		4. Alternative Commodity. If, and to the extent, Producer uses any raw commodity
		or feedstock other than Corn as a substitute or alternative in the production
		of ethanol at the Ethanol Facility (“Alternative Feedstock”), Cargill
		will have a right of first negotiation for Cargill to be the supplier of such
		Alternative Feedstock, and if the Parties do not reach agreement after good
		faith negotiations, then Cargill will have a right of first refusal on any bona
		fide supply arrangement reached with any third party for the supply of such
		Alternative Feedstock. 
	 

	 
		5. Delivery, Title and Risk of Loss. Corn will be delivered to the Grain Facility at the
		truck dump or rail pit, as applicable. Upon delivery, title and risk of loss
		will transfer to Producer. All Corn delivered will be free and clear of all
		liens. Upon delivery, Producer will weigh, sample, analyze and grade, at its
		sole expense, all Corn in accordance with federal grain inspection standards.
		
	 

	 
		6. Forecasts, Orders and Sales
		Confirmations. 
	 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  Forecasts. On a monthly basis, Producer shall provide to Cargill
				  a written forecast estimating Producer’s anticipated Corn requirements for
				  the immediately following twelve (12) month period (“Forecast”).
				  
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  Orders. Each Cargill Working Day, Cargill will provide to
				  Commodity Manager (as defined below) a copy of Cargill’s applicable bid
				  sheet reflecting expected basis levels (including futures reference month)
				  required to purchase grain for each delivery period. Cargill will use
				  commercially reasonable efforts to provide appropriate market information to
				  the Commodity Manager as reasonably requested, without guarantee of accuracy or
				  completeness, provided that Cargill did not engage in fraud or willful
				  misconduct. The Commodity Manager will provide Cargill with a Corn
				  purchase limit order sheet (the “Limit Order Sheet”). The Limit Order
				  Sheet will instruct Cargill to purchase up to a given quantity of Corn for each
				  delivery period at a cash corn basis at or below the basis amounts set forth in
				  the applicable Limit Order Sheet. Cargill may contract for the purchase of Corn
				  at terms up to the limits set forth in the most current Limit Order Sheet.
				  Subject to the other terms and conditions herein, Cargill will use commercially
				  reasonable efforts to procure Corn at the lowest deliverable cost. 
				

			 

 

	 
		Cargill will provide updates to Commodity
		Manager regarding its ability to execute orders pursuant to the Limit Order
		Sheet, as well as regarding changes in the market, and Cargill will be excused
		from performance to the extent it cannot procure Producer’s Corn
		requirements based on the parameters set forth in the applicable Limit Order
		Sheet. To the extent Corn purchases in excess of the Limit Order Sheets in any
		consecutive 12-month period either (i) reflect basis levels of greater than
		$800,000 on an aggregate basis for all overages or (ii) volumes of 500,000
		bushels or more, any such overages in basis levels or volumes shall not be
		considered a breach, and Producer’s sole remedy shall be the right to set
		off any incremental costs incurred as a direct result of such excess purchases
		against amounts owed to Cargill; provided, however, the costs resulting from
		volume overages described in Section 6(b)(ii) shall be established by comparing
		the basis level set forth in the Limit Order Sheet for the day in which each
		specific bushel overage (i.e., each overage that constitutes a portion of the
		aggregate 500,000 overage) occurred with the applicable basis levels as of the
		date in which the aggregate volume overages exceed 500,000 bushels. Cargill may
		provide the Commodity Manager with updated bid sheets, based upon which the
		Commodity Manager may prudently and opportunely update the Limit Order Sheet.
		If Cargill determines that it cannot originate Corn at or below the limits of
		the applicable Limit Order Sheet, Cargill will promptly provide Producer
		written or oral notification, and the Parties will discuss alternatives for
		procuring
	 

	 
		 
	 

	 
		2
	 

	 
		 
	 

	 
 

	 
		Corn to satisfy Producer’s Corn
		requirements. Except to the extent specifically provided herein, Cargill will
		have sole discretion with respect to its origination of the Corn. 
	 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  Sales
				  Confirmations. Each sale of Corn to
				  Producer shall be evidenced by a separate Cargill sales confirmation
				  (“Sales Confirmation”). Each Sales Confirmation at a minimum shall
				  specify the quantity and quality of the Corn, the delivery date and delivery
				  location, the purchase price (i.e., the applicable basis and futures reference
				  month as determined in accordance with Section 6(a) above), and any applicable
				  discount from or premium to the purchase price, and such other information as
				  the Parties may agree to include. On a weekly basis (on Monday or the first
				  business day of each week), Cargill will issue a Sales Confirmation for each
				  delivery period in which it procured corn for the Project Company. To the
				  extent that any terms of any Sales Confirmation conflict with the terms of this
				  Agreement, the terms of this Agreement shall govern unless both Parties have
				  specifically expressed their intent in writing to supercede the terms of this
				  Agreement. If both parties mutually agree that a Sales Confirmation may be
				  cancelled, then such Sales Confirmation will be cancelled. Upon Producer’s
				  written request, Cargill will, within a reasonable time period, provide
				  Producer with a summary of the terms of Cargill’s cash corn contracts
				  relating to all Corn delivered to Producer that is not sourced from a grain
				  facility owned by Cargill or its Affiliates.
				

			 

 

	 
		7. Market Updates.
		On a monthly basis, Cargill will provide Producer with corn market updates.
		Additionally, Cargill may provide Producer with input regarding Producer’s
		plans for Corn procurement and storage, including input on forward purchases,
		amount of grain held in storage and basis risk management; provided, however,
		that any such information provided by Cargill to Producer will be provided
		solely for informational purposes, without any guaranty of accuracy or
		completeness, provided that Cargill did not engage in fraud or willful
		misconduct. Such updates may be provided in writing or orally each
		Cargill Working Day. Cargill will provide the Commodity Manager with Corn
		“to arrive” information, based upon which the Commodity Manager may
		prepare the following day’s Limit Order Sheet. “Cargill Working
		Day” means Monday, Tuesday, Wednesday, Thursday or Friday except for
		Cargill Holidays. “Cargill Holidays” are New Years Day, Presidents
		Day, Good Friday, Memorial Day, July 4th, Labor Day, Thanksgiving
		Day, the day after Thanksgiving Day, Christmas Eve Day and Christmas Day (or,
		with respect to Christmas, the Cargill Holidays may differ from actual
		Christmas Eve Day and Christmas Day if such days fall on a weekend).
	 

	 
		8. Cargill’s Corn Origination Model. The Parties acknowledge that Cargill expects to follow
		a Corn origination model that is substantially similar to the model that is
		currently in use at the Grain Facility. 
	 

	 
		9. IT
		Systems Coordination. Cargill and
		Producer will use commercially reasonable efforts to develop IT systems that
		are capable of providing Cargill with real time information on (a) Corn
		deliveries to the Grain Facility, and (b) changes to the amount of Corn held in
		storage in the Grain Facility; and that are capable of providing Producer with
		information on its cash corn positions, price and quantity according to both
		delivery month and estimated delivery schedule. Additionally, the Grain
		Facility will continue to use a scale integrator system compatible with the
		Cargill’s system in order for Cargill to monitor remotely deliveries of
		Corn. 
	 

	 
		10. Producer Resale of Corn. If Producer decides to resell any Corn for any reason
		including Force Majeure that has been delivered to the Grain Facility instead
		of processing such Corn into ethanol, then Cargill will arrange for such
		resale, including arrangement of transportation. In consideration of such
		service from Cargill, Producer will pay to Cargill a service fee equal to
		Cargill’s actual costs incurred plus $0.02 per bushel of Corn intended for
		resale. 
	 

	 
		11. Initial Quantity. Producer expects to purchase 1,500,000 bushels of Corn
		(the “Initial Quantity”) for delivery by March 1, 2007 (the
		“Projected Date of First Delivery”). Producer shall notify Cargill
		two (2) months in advance of the Projected Date of First Delivery of any
		revisions to the Initial Quantity or 
	 

	 
		 
	 

	 
		3
	 

	 
		 
	 

	 
 

	 
		Projected Date of First Delivery, together
		with its anticipated need for Corn during the first six months of operations at
		the Ethanol Facility. To the extent that such origination activity is requested
		prior to the Effective Date, the terms and conditions of this Agreement shall
		apply to such origination activity notwithstanding the fact that Effective Date
		has not yet occurred.
	 

	 
		12. Purchase Price.
		The purchase price (“Purchase Price”) of the Corn shall be the sum of
		the Base Corn Price and the Origination Fee, which are defined as
		follows:
	 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  Base Corn Price. Producer shall pay to Cargill the Base Corn Price for
				  Corn supplied to the Grain Facility. For purposes of this Section 12, the term
				  “basis” means the difference between the current cash price of U.S.
				  No. 2 yellow corn and the futures price of U.S. No. 2 yellow corn for the
				  nearby futures contract month.
				

			 

 

	 
		In the case of Corn arriving at the Grain
		Facility from third parties, the Base Corn Price will be: 
	 

	 
		i. The weighted average “basis”
		price that Cargill paid or contracted to pay to procure Corn during the
		immediately preceding week for each respective delivery period (i.e., there may
		be a different basis price for different delivery periods); plus
	 

	 
		ii. The applicable futures price, as
		determined under the Corn Advisory Agreement between Cargill Commodity
		Services, Inc. and Producer, or as determined by Producer in accordance with
		another futures advisory service if the Corn Advisory Agreement is not then in
		effect; plus or minus 
	 

	 
		iii. Applicable quality discounts or
		premiums as mutually agreed in writing by the Parties.
	 

	 
		In the case of Corn arriving directly
		from Cargill’s grain elevators (including, without limitation,
		Cargill’s elevators in Marna, Guckeen and Alpha), the Base Corn Price will
		be: a value to be mutually agreed upon
		by the Parties, with such value targeted at the fair market value. 
	 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  Origination Fee. Producer shall pay to Cargill a fee of [*] (USD $[*])
				  per bushel of Corn delivered to the Grain Facility (“the Origination
				  Fee”). The Origination Fee will increase each Contract Year in accordance
				  with the CPI Index for Nebraska. 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  Origination Fee
				  Adjustment.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  On the fifth (5th)
				  anniversary of the Effective Date of this Agreement, upon the written request
				  of either Party, the Parties shall negotiate in good faith to adjust the
				  Origination Fee to take into account changes in market conditions, operating
				  conditions or costs, inflation or other factors; provided,
				  however, that in the event the Parties are unable to agree to
				  any such adjustments within thirty (30) days following commencement of such
				  negotiations, the Origination Fee will be unchanged and in full force and
				  effect.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  On the seventh (7th)
				  anniversary of the Effective Date of this Agreement, and every five (5) years
				  thereafter, at the written request of either Party, the Parties shall negotiate
				  in good faith to adjust the Origination Fee then in effect to take into account
				  changes in market conditions, operating conditions or costs, inflation or other
				  factors; provided, however, that in
				  the event the Parties are unable to agree to any such adjustments within thirty
				  (30) days following commencement of such negotiations, at the written request
				  of either Party the dispute shall be settled by “baseball”
				  arbitration in accordance with Section 12(c)(iii).
				

			 

 

	 
		* Certain confidential information on this
		page has been omitted and filed separately with the Securities and Exchange
		Commission.
	 

	 
		 
	 

	 
		4
	 

	 
		 
	 

	 
 

	 
			
				
				   
				

			 	
				
				  (iii)
				

			 	
				
				  Following delivery of a written
				  request to arbitrate an Origination Fee dispute pursuant to Section 12(c)(ii),
				  the Parties shall, within thirty (30) days, each elect an independent
				  arbitrator with experience in the grain supply industry. Within fifteen (15)
				  days thereafter, the two arbitrators selected by the Parties shall confer and
				  agree on a third independent arbitrator with experience in the grain supply
				  industry. The Parties shall each submit to the arbitrators the amount of the
				  Origination Fee requested by such Party, together with supporting documentation
				  as such Party may determine reasonable. Within ten (10) days thereafter, the
				  arbitrators shall select, by a majority vote, the submission of one of the
				  Parties as the Origination Fee that will be applicable to this Agreement from
				  that date until the next adjustment period. The selection made by the
				  arbitrators shall be conclusive, binding on the Parties and not subject to
				  challenge or appeal in any forum; provided,
				  however, that at any time during the arbitration process, the
				  Parties may agree on the Origination Fee. The Parties may also agree to use a
				  single independent arbitrator in lieu of the three arbitrators as contemplated
				  herein, and in that case selection by the single expert will be binding on the
				  Parties.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  Minimum Fee.
				  Notwithstanding any other provisions in this Agreement but provided that
				  Cargill is not in breach of the obligations hereunder, Producer will
				  pay to Cargill a minimum Origination Fee of USD $1,200,000.00 in each Contract
				  Year (the “Minimum Fee”). For clarification purposes, and without
				  limiting the foregoing, the Minimum Fee will apply even where Producer claims
				  Force Majeure.
				

			 

 

	 
		13. Payment.
	 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  Invoice. By no later than 10 a.m. CST on each Cargill Working
				  Day after Corn is supplied to the Grain Facility, Cargill will send an invoice
				  electronically to Producer setting forth the Purchase Price due from Producer
				  for all such Corn (“Invoice”). 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  Payment Due.
				  
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  Producer shall pay to Cargill the
				  amount set forth in each Invoice no later than by 12:00 noon on the Payment
				  Date. For purposes of this Section 13(b)(i), the term “Payment Date”
				  means (x) during the first Contract Year, three (3) business days after Corn is
				  supplied to the Grain Facility, (y) during the second Contract Year, two (2)
				  business days after Corn is supplied to the Grain Facility and (z) thereafter,
				  one (1) business day after Corn is supplied to the Grain Facility. 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  Payment by Producer shall be made
				  via ACH electronic payment. In addition to any other rights that Cargill may
				  have relating to Producer’s failure to pay by the Payment Deadline,
				  Cargill shall be entitled to apply, and Producer shall pay to Cargill, interest
				  on all amounts outstanding past the Payment Deadline at the rate equal to the
				  Default Rate. 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iii)
				

			 	
				
				  Notwithstanding anything to the
				  contrary in Section 13(b)(i), Invoices up to the initial USD $3,000,000.00 of
				  Corn supplied to the Grain Facility for the period from the Effective Date
				  through the 14th business day following the Effective Date (the
				  “Start-up Period”) shall be payable no later than by 12:00 noon on
				  the 74 th business day following the Effective Date (the
				  “Deferred Payment Date”); provided,
				  however, that interest shall accrue, and be payable by
				  Producer, at the rate equal to the Default Rate on all Start-up Period Invoice
				  amounts outstanding on the Payment Date until payment in full of such amounts.
				  “Default Rate” means an interest rate per annum equal to the interest
				  rate per annum for large 
				

			 

 

	 
		 
	 

	 
		5
	 

	 
		 
	 

	 
 

	 
		commercial loans as published in
		The Wall Street Journal, Midwest edition, as the “prime rate”
		(sometimes referred to as the “base rate”) from time to time (or, if
		more than one rate is published, the arithmetic mean of such rates), determined
		as of the date the obligation to pay interest arises, plus two hundred
		(200) basis points. 
	 

	 
			
				
				   
				

			 	
				
				  (iv)
				

			 	
				
				  Invoices for Corn supplied to the
				  Grain Facility for the Start-up Period in excess of USD $3,000,000, but not
				  exceeding USD $8,000,000, shall be paid by Producer by the Payment Date in
				  accordance with Section 13(b)(i) or, upon Producer’s request, by the
				  Deferred Payment Date in accordance with Section 13(b)(iii) if Producer has
				  provided Cargill with an irrevocable letter of credit in a form reasonably
				  acceptable to Cargill and in an amount corresponding to Cargill’s invoices
				  in excess of USD $3,000,000.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  Nonpayment. In addition to any other remedies available to Cargill
				  under this Agreement, but subject to the provisions of the Master Agreement,
				  Producer will be responsible for any and all resulting costs, expenses, losses,
				  or damages incurred by Cargill in the event Producer fails to make timely
				  payment. 
				

			 

 

	 
		14. Contact Persons.
		In order to facilitate the performance by both Parties of the terms of this
		Agreement in an efficient and expedient manner, and in order to provide for the
		timely exchange of information necessary or appropriate to fulfill the
		intentions of the Parties under this Agreement, each Party will appoint a
		primary contact. In the case of Producer, the primary contact will be
		Producer’s Commodity Manager. In the case of Cargill, the primary contact
		will be the Cargill, Incorporated AgHorizon Business Unit Farm Service Group
		Leader responsible for the territory in which the Grain Facility is located.
		The Primary Contacts will remain the Primary Contacts unless either Party
		provides the other Party with notice of a different Primary Contact pursuant to
		Section 10(b) (Notices) of the Master Agreement.
	 

	 
		15. Reserved.

	 

	 
		16. Term. The term
		of this Agreement is twenty (20) years, commencing as of the Effective Date.
		This Agreement will automatically renew for consecutive two (2) year terms
		unless at least one (1) year before the expiration of the then current term
		either Party provides written notice to the other Party of its intent not to
		renew. The Effective Date shall be the date of Provisional Acceptance (as
		defined in the Agreement for Engineering, Procurement and Construction, dated
		as of April 28, 2006, between Tenant and TIC - The Industrial Company Wyoming,
		Inc.). A “Contract Year” refers to the 365 consecutive day period
		commencing as of the Effective Date and each 365 consecutive day period
		thereafter.
	 

	 
		17. Producer Events of Default. The following shall constitute events of default on
		the part of Producer (each, a “Producer Event of Default”) under this
		Agreement: 
	 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  Producer fails to pay any amount
				  that is due to Cargill under this Agreement that is not excused by this
				  Agreement, and (i) Cargill provides written notice to Producer of such failure,
				  and (ii) Producer fails to pay to Cargill such past-due amount (plus all
				  accrued interest) within 30 days of Producer’s receipt of Cargill’s
				  written notice;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  three or more incidents of willful
				  misconduct by Producer, or any of Producer’s employees, agents or
				  representatives in the performance of or in connection with Producer’s
				  obligations hereunder occur in any 12 month period and Cargill provides
				  Producer with written notice of each such incident, or any on incident of
				  willful misconduct by Producer occurs where (i) such willful misconduct has a
				  Material Adverse Effect on Cargill or the Grain Facility, and (ii) such willful
				  misconduct is done under the direction of, with the knowledge of, or otherwise
				  sanctioned by an officer of Producer;
				

			 

 

	 
		 
	 

	 
		6
	 

	 
		 
	 

	 
 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  Producer procures or purchases Corn
				  or Alternative Commodity for ethanol production at the Ethanol Facility from
				  any entity or person other than Cargill, except as permitted hereunder;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  Producer files a voluntary petition
				  in bankruptcy, has filed against it an involuntary petition in bankruptcy,
				  makes an assignment for the benefit of creditors, has a trustee or receiver
				  appointed for any or all of its assets, is insolvent or fails or is unable to
				  pay its debts generally when due, in each case where such petition, appointment
				  or insolvency is not dismissed, discharged or remedied, as applicable, within
				  sixty (60) days; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (e)
				

			 	
				
				  Producer sells, leases, assigns or
				  otherwise transfers the Ethanol Facility or any rights in the Principal
				  Documents or the Grain Facility Lease to a third party other than as permitted
				  in this Agreement or any other agreement to which Cargill and Producer are
				  parties; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (f)
				

			 	
				
				  The Grain Facility Lease expires or
				  is terminated for any reason whatsoever attributable to Producer; or
				

			 

 

	 
			
				
				   
				

			 	
				
				  (g)
				

			 	
				
				  Producer fails to comply with any
				  final and binding arbitration award rendered pursuant to Section 6 of the
				  Master Agreement.
				

			 

 

	 
		18. Cargill Events of Default. The following shall constitute events of default on
		the part of Cargill (each, a “Cargill Event of Default”) under this
		Agreement: 
	 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  Cargill fails to deliver the
				  quantities of Corn required to be delivered within the period(s) set forth in
				  the applicable Sales Confirmation on five (5) separate occurrences within any
				  12 month period under circumstances where (i) such failure directly results in
				  the inability of the Ethanol Plant to produce ethanol because of the absence of
				  Corn, or (ii) it is substantially certain (applying an objective standard) that
				  such failure will directly result in the inability of the Ethanol Plant to
				  produce ethanol at the same level of production at which Producer was producing
				  ethanol immediately prior to such failure, and Producer intended to produce
				  ethanol at the same or higher level of production at which Producer was
				  producing ethanol immediately prior to such failure; provided however, that any
				  such failure will not constitute a triggering occurrence hereunder if (x) such
				  failure is excused under this Agreement or the Master Agreement, including
				  without limitation an event of Force Majeure, (y) such failure is caused in any
				  part by Producer or Producer’s agents, employees, representatives,
				  contractors or invitees, or (z) Producer has failed to provide Cargill with
				  immediate written notice of such failure, or if such written notice has been
				  provided on a timely basis, Cargill has cured such failure within 72 hours of
				  its receipt of the written notice. 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  three or more incidents of willful
				  misconduct by Cargill or any of Cargill’s employees, agents or
				  representatives in the performance of or in connection with Cargill’s
				  obligations hereunder occur in any 12 month period and Producer provides
				  Cargill with written notice of each such incident, or any one incident of
				  willful misconduct by Cargill occurs where (i) such willful misconduct has a
				  Material Adverse Effect on Producer or the Ethanol Facility, and (ii) such
				  willful misconduct is done under the direction of, with the knowledge of, or
				  otherwise sanctioned by an officer of Cargill within the AgHorizons business
				  unit; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  Cargill files a voluntary petition
				  in bankruptcy, has filed against it an involuntary petition in bankruptcy,
				  makes an assignment for the benefit of creditors, has a trustee or receiver
				  appointed for any or all of its assets, is insolvent or fails or is unable to
				  pay its debts generally when due, in each case where such petition, appointment
				  or insolvency is not dismissed, discharged or remedied, as applicable, within
				  sixty (60) days; 
				

			 

 

	 
		 
	 

	 
		7
	 

	 
		 
	 

	 
 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  Cargill fails to comply with any
				  final and binding arbitration award rendered pursuant to Section 6 of the
				  Master Agreement;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (e)
				

			 	
				
				  Cargill fails to pay any amount that
				  is due to Producer under this Agreement that is not excused by this Agreement,
				  and (i) Producer provides written notice to Cargill of such failure, and (ii)
				  Cargill fails to pay to Producer such past-due amount within five (5) days of
				  Cargill’s receipt of Producer’s written notice; or
				

			 

 

	 
			
				
				   
				

			 	
				
				  (f) 
				

			 	
				
				  Expiration or the termination of the
				  Grain Facility Lease for reasons attributable to Cargill.
				

			 

 

	 
		19. Remedies for Breach Not Constituting an Event of
		Default. In the event that either Party
		breaches or fails to perform any commitment or obligation contained herein,
		under circumstances where such breach or failure does not constitute an Event
		of Default, and such breach or failure is not excused by this Agreement,
		including by a Force Majeure condition, the other Party (the
		“Non-Defaulting
		Party”) may exercise any remedy or
		right specified in the Master Agreement or this Agreement in connection with
		such breach or failure. In addition, and without limiting the foregoing:

	 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  If (i) Producer at any time owes
				  Cargill $500,000 or more for Corn delivered to the Grain Facility, or (ii)
				  Cargill’s mark-to-market exposure on Corn procured for Producer but not
				  yet delivered exceeds $1,000,000, then Cargill may exercise any one or more of
				  the following remedies: (x) suspend performance of its obligations under this
				  Agreement, including without limitation origination and delivery of Corn to
				  Producer, until Producer is below the dollar thresholds set forth in Section
				  19(a)(i) and (ii), (y) require Producer to provide an irrevocable letter of
				  credit in a form reasonably acceptable to Cargill as adequate assurance for
				  amounts in excess of $500,000 in the case of subparagraph (i) above or
				  $1,000,000 in the case of subparagraph (ii) above, or (z) with respect to
				  mark-to-market exposure on Corn, unwind cash positions to limit Cargill’s
				  exposure on Corn. For purposes of this section, “mark-to-market
				  exposure” refers to the difference, in the aggregate, between the actual
				  price Cargill sold the Corn to Producer
				  and the current market price for such
				  Corn (based on Cargill’s daily posted basis or flat price, as applicable,
				  for Corn delivered to the Grain Facility) as adjusted
				  daily; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  In the event either Party fails to
				  pay any amounts due to the other Party when due, the Non-Defaulting Party shall
				  be entitled to charge and receive interest accrued on the unpaid amount from
				  the date it was due until the date actually paid at the Default Rate;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  If a Party breaches or fails to
				  perform in any material respect any of its commitments or agreements contained
				  in this Agreement, the defaulting Party shall be liable to the Non-Defaulting
				  Party for Damages arising out of or resulting from such breach as provided in
				  Section 8 of the Master Agreement (subject to the Non-Defaulting Party’s
				  duty to mitigate its Damages). Notwithstanding the foregoing, Cargill’s
				  failure to deliver Producer quantities of Corn within the period set forth in
				  any applicable Sales Confirmation will give rise to a Producer claim for
				  Damages consistent with Rule 28 of the National Grain and Feed Association
				  Grain Trade Rules.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  If a Party breaches or fails to
				  perform in any material respect any of its commitments or agreements contained
				  in any Principal Document, and such breach or failure is of a continuing
				  nature, the Non-Defaulting Party may (A) request the defaulting Party, as a
				  condition of continuing its performance under this Agreement, to provide
				  adequate assurance of performance of the defaulting Party’s obligations
				  under this Agreement; and/or (B) seek injunctive relief.
				

			 

 

	 
		20. Remedies for Events of Default. Upon the occurrence of an Event of Default that has
		not been waived in writing by the Non-Defaulting Party, the Non-Defaulting
		Party shall have all of the following 
	 

	 
		 
	 

	 
		8
	 

	 
		 
	 

	 
 

	 
		rights and remedies in addition to the
		rights and remedies specified in Section 19 above, which may be exercised in
		such order or combination as such Non-Defaulting Party may determine: (i)
		terminate this Agreement, or (ii) subject to the limitations set forth in
		Section 8(c) of the Master Agreement (relating to consequential damages),
		pursue any other remedies available at law or in equity. 
	 

	 
		21. Warranties; Disclaimer. Cargill warrants
		to Producer that the Corn sold to Producer at the time delivered to the Grain
		Facility shall conform to the specifications for the Corn set forth herein or
		on the applicable Sales Confirmation, subject to applicable discounts or
		premiums. Cargill warrants that the Corn will not include any article or
		commodity that may not, under the provisions of the Food, Drug and Cosmetic
		Act, be introduced in U.S. interstate commerce. Cargill further warrants to
		Producer that it has title to the Corn free and clear of all liens and
		encumbrances. Except as specifically provided herein, CARGILL DISCLAIMS ANY AND
		ALL WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION
		THE WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. PRODUCER
		ASSUMES ALL RISK AND LIABILITY RESULTING FROM THE USE OF THE GRAIN, WHETHER
		USED SINGLY OR IN COMBINATION WITH OTHER SUBSTANCES OR IN ANY PROCESS. THERE
		ARE NO ORAL WARRANTIES COLLATERAL TO OR AFFECTING SUCH SALE. 
	 

	 
		22. Non-Conforming Corn.
	 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  All Corn shall be received subject
				  to Producer’s right of inspection and acceptance; provided, however, that
				  Corn must be accepted if it complies with specifications set forth in this
				  Agreement or the applicable Sales Confirmation if different from this
				  Agreement. Producer’s exclusive remedy and Cargill’s exclusive
				  liability for shipment of non-conforming Corn or for breach of warranty is
				  expressly limited to replacement, within a reasonable period of time, of the
				  non-conforming Corn at no additional charge to Producer (shipping costs to be
				  paid by Cargill); provided however, that any Corn received into the Grain
				  Facility will be deemed to have been accepted by Producer as conforming Corn.
				  All nonconforming Corn rightfully rejected shall be returned to Cargill, at
				  Cargill’s sole expense, or, at Cargill’s direction, disposed of by
				  Producer in a manner mutually acceptable to Producer and Cargill with all costs
				  of such disposition to be paid by Cargill.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  Notwithstanding anything to the
				  contrary in this Agreement, any claim by Producer with respect to any Corn or
				  any Sales Confirmation other than a claim for shipment of nonconforming Corn
				  (which shall be governed by Section 22(a)), whether based on breach of
				  warranty, contract, negligence, strict liability or other tort, shall be made
				  promptly by Producer upon Producer’s notice or knowledge of any such claim
				  and shall be deemed to be waived unless received, in writing, by Cargill within
				  ten (10) days after the delivery of the Corn to the Grain Facility.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  Notwithstanding anything to the
				  contrary in this Agreement, each Party agrees to use commercially reasonable
				  efforts to mitigate any Damages incurred by it hereunder.
				

			 

 

	 
		23. Force Majeure.
		In the event that Producer exercises its rights under Section 3 (Force Majeure)
		of the Master Agreement, Producer shall still be required to purchase all Corn
		originated by Cargill pursuant this Agreement for the time prior to
		Cargill’s receipt of the Force Majeure Notice and to pay to Cargill any
		outstanding amounts due under any Sales Confirmations, and any costs arising
		from diversion of the Corn. During the pendency of an event of Force Majeure
		claimed by Cargill, Producer may purchase corn from third parties to the extent
		reasonably necessary to mitigate any harm to Producer during the expected
		duration of the Force Majeure; however, Cargill shall have no liability
		whatsoever to Producer with respect to any corn or other feedstock purchased by
		Producer in connection with an event of Force Majeure claimed by Cargill.
		
	 

	 
		 
	 

	 
		9
	 

	 
		 
	 

	 
 

	 
		24. Survival.
		The provisions of Section 13(c) shall
		survive the expiration or earlier termination of this Agreement. 
	 

	 
		25. No Partnership.
		There is no relationship of partnership, joint venture, employment, franchise,
		or agency between the Parties, and neither Party shall make any representation
		to the contrary. Under no circumstances shall Cargill be liable for the debts
		or obligations of Producer (including without limitation any bank financing,
		tax-exempt bonds or trade debt incurred by Producer) or for the wages,
		salaries, or benefits of Producer’s employees, and Producer hereby agrees
		to indemnify, defend, and hold harmless Cargill from and against the
		same.
	 

	 
		26. Integrated Agreements. The Parties hereby acknowledge and agree that the Corn
		Supply Agreement and the Grain Facility Lease have been negotiated and entered
		into simultaneously as integrated parts of one unified transaction with a
		common purpose. Without limiting the generality of the forgoing, (i) the
		Parties would not have entered into the Corn Supply Agreement and the Grain
		Facility Lease separately without entering into the other, (ii) the
		consideration for such agreements is not separate and distinct, but
		interrelated and incorporated by reference between the Corn Supply Agreement
		and the Grain Facility Lease, and (iii) in the event that either of the Parties
		becomes a debtor in bankruptcy, the Parties intend that the Corn Supply
		Agreement and the Grain Facility Lease are either accepted or rejected together
		as one executory contract.
	 

	 
		27. Grain Inventory.
		As of the Effective Date (as defined in the Grain Facility Lease), Cargill will
		have in storage at the Grain Facility inventories of grain (the “Grain
		Inventory”) and will have certain amounts of corn under contract to arrive
		at the Grain Facility on or after the Effective Date (“To Arrive
		Grain”). As of the Effective Date, Producer agrees to purchase all of the
		Grain Inventory and To Arrive Grain at a price to be mutually agreed upon by
		the Parties as of the Effective Date. Cargill and Producer will select an
		independent third party to determine the quantity of the Grain Inventory by
		either weighing up or measuring up the Grain Inventory, and to determine the
		grade of the Grain Inventory by using an inspection agency satisfactory to
		Cargill and Producer. All samples of the Grain Inventory will be taken under
		the supervision of the Parties. The third party inspection agency will maintain
		the grain samples for 30 days. 
	 

	 
		[Signature page follows]
	 

	 
		 
	 

	 
		10
	 

	 
		 
	 

	 
 

	 
		IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
		date first entered above.
	 

	 
		 
	 

	 
			
				
				  CARGILL, INCORPORATED
				

			 	
				
				   
				

			 	
				
				  PIONEER TRAIL ENERGY,
				  LLC
				

			 
	
				
				  
 By:
				

			 	
				
				  /s/ Dennis Inman
				

			 	
				
				   
				

			 	
				
				  
 By:
				

			 	
				
				  /s/ Scott H. Pearce
				

			 
	
				
				   
				

			 	
				
				

				
 	
				
				   
				

			 	
				
				   
				

			 	
				
				

				
 
	
				
				  Name: 
				

			 	
				
				  Dennis Inman
				

			 	
				
				   
				

			 	
				
				  Name: 
				

			 	
				
				  Scott H. Pearce
				

			 
	
				
				   
				

			 	
				
				

				
 	
				
				   
				

			 	
				
				   
				

			 	
				
				

				
 
	
				
				  Title: 
				

			 	
				
				  V.P. Cargill
				  AgHorizons
				

			 	
				
				   
				

			 	
				
				  Title: 
				

			 	
				
				  Authorized
				  Representative
				

			 
	
				
				   
				

			 	
				
				

				
 	
				
				   
				

			 	
				
				   
				

			 	
				
				

				
 
	
				
				  Date: 
				

			 	
				
				  September 25, 2006
				

			 	
				
				   
				

			 	
				
				  Date: 
				

			 	
				
				  September 25, 2006

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