Document:

Exhibit
10.6

CONSTRUCTION
AND TERM LOAN SUPPLEMENT

THIS SUPPLEMENT to the Master
Loan Agreement dated February 17, 2006, (the “MLA”), is entered into as of
February 17, 2006, between FARM CREDIT SERVICES OF
AMERICA, FLCA (“Farm Credit”) and ADVANCED
BIOENERGY, LLC, Fairmont, Nebraska (the “Company”).

SECTION 1.         The
Construction and Term Loan Commitment.  On the terms and conditions set forth in the
MLA and this Supplement, Farm Credit agrees to make construction loans to the
Company from time to time during the period set forth below in an aggregate
principal amount not to exceed, at any one time outstanding, $58,500,000.00
(the “Commitment”).  Under the
Commitment, amounts borrowed and later repaid may not be reborrowed.  No advance shall be made until evidence has
been provided to the Agent (as that term is defined in the MLA) as required in
Section 7(A)(vii) of the MLA that all requisite equity funds have been received
by the Company and that such funds shall have been utilized for the
construction of the Improvements (as defined herein).

SECTION 2.         Purpose.  The purpose of the Commitment is to partially
finance the Company’s construction of a 100 million gallon (annual) ethanol
plant (the ‘‘Improvements”) identified in the plans and specifications provided
to and approved by Agent pursuant to Section 7(A)(xi) of the MLA (as the same
may be amended pursuant to Section 12(A) herein, the “Plans”), on real property
owned by the Company near Fairmont, Nebraska (the “Property”), and the Company
agrees to utilize the proceeds of the Commitment for that purpose only.

SECTION 3.         Term.  The term of the Commitment shall be from the
date hereof, up to and including May 1, 2007, or such later date as Agent may,
in its sole discretion, authorize in writing.

SECTION 4.         Disbursements
of Proceeds.

(A)          Disbursement
Procedures.

(1)           Limits
on Advances.  Agent shall not be
required to advance funds: (i) for any category or line item of acquisition or
construction cost an amount greater than the amount specified therefor in the
Project Budget (as defined in Section 7(A)(xi) of the MLA); or (ii) for any
services not yet performed or for materials or goods not yet incorporated into
the Improvements or delivered to and properly stored on the Property.  No advance hereunder shall exceed 100% of the
aggregate costs actually paid or currently due and payable and represented by
invoices accompanying a Request for Construction.  Loan Advance submitted pursuant to Section
9(B)(1) herein less the amount of retainage (“Retainage”) set out in the
construction contract between the Company and Fagen, Inc., and other
construction contracts of the Company for the Improvements.

(2)           Advance
of Retainage.  The Retainage (but in
no case greater than the unused balance of the Commitment allocated for construction)
will be advanced by Agent to the Company pursuant to the conditions set forth
in such construction contracts, upon written request by the Company certifying
the satisfaction of such conditions precedent for payment of Retainage.

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(B)          Payments
to Third Parties.  If there is an
Event of Default (as defined in the MLA) at its option and without further
authorization from the Company, Agent is authorized to make advances under the
Commitment by paying, directly or jointly with the Company, any person to whom
Agent in good faith determines payment is due and any such advance shall be
deemed made as of the date on which Agent makes such payment and shall be
secured under the deed of trust/mortgage securing the Commitment and any other
loan documents securing the Commitment as fully as if made directly to the
Company.

SECTION 5.         Interest
and Fees.

(A)          Interest.  The Company agrees to pay interest on the
unpaid principal balance of the loans in accordance with one or more of the
following interest rate options, as selected by the Company:

(1)           Agent
Base Rate.  At a rate per annum equal
at all times to 50 Basis Points above the rate of interest established by Agent
from time to time as its Agent Base Rate, which Rate is intended by Agent to be
a reference rate and not its lowest rate. 
Upon the satisfaction of the maximum aggregate Free Cash Flow payment
(as defined in Section 6 hereof), then the Agent Base Rate spread will be
reduced to zero.  The Agent Base Rate
will change on the date established by Agent as the effective date of any
change therein and Agent agrees to notify the Company of any such change.

(2)           Quoted
Rate.  At a fixed rate per annum to
be quoted by Agent in its sole discretion in each instance.  Under this option, rates may be fixed on such
balances and for such periods, as may be agreeable to Agent in its sole
discretion in each instance, provided that: (1) the minimum fixed period shall
be 180 days; (2) amounts may be fixed in increments of $500,000.00 or multiples
thereof; and (3) the maximum number of fixes in place at any one time shall be
ten.

(3)           LIBOR. 
At a fixed rate per annum equal to “LIBOR” (as hereinafter defined) plus
3.40%.  Under this option: (1) rates may
be fixed for “Interest Periods” (as hereinafter defined) of 1, 2, 3, 6, 9, or
12 months as selected by the Company; (2) amounts may be fixed in increments of
$500,000.00 or multiples thereof; (3) the maximum number of fixes in place at
any one a shall be ten; and (4) rates may only be fixed on a “Banking Day” (as
hereinafter defined) on 3 Banking Days’ prior written notice.  For purposes hereof: (a) “LIBOR” shall mean
the rate (rounded upward to the nearest sixteenth and adjusted for reserves
required on “Eurocurrency Liabilities” (as hereinafter defined) for banks
subject to “FRB Regulation D” (as herein defined) or required by any other
federal law or regulation) quoted by the British Bankers Association (the “BBA”)
at 11:00 a.m. London time 2 Banking Days before the commencement of the
Interest Period for the offering of U.S. dollar deposits in the London
interbank market for the Interest Period designated by the Company; as
published by Bloomberg or another major information vender listed on BBA’s
official website; (b) “Banking Day” shall mean a day on which Agent is open for
business, dealings in U.S. dollar deposits are being carried out in the London
interbank market, and banks are open for business in New York City and London,
England; (c) “Interest Period” shall mean a period commencing on the date this
option is to take effect and ending on the numerically corresponding day in the
next calendar month or the month that is 2, 3, 6, 9, or 12 months thereafter,
as the case may be; provided,

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however, that: (i) in the
event such ending day is not a Banking Day, such period shall be extended to
the next Banking Day unless such next Banking Day falls in the next calendar
month, in which case it shall end on the preceding Banking Day; and (ii) if
there is no numerically corresponding day in the month, then such period shall
end on the last Banking Day in the relevant month; (d) “Eurocurrency
Liabilities” shall have meaning as set forth in “FRB Regulation D”; and (e) “FRB
Regulation D” shall mean Regulation D as promulgated by the Board of Governors
of the Federal Reserve System, 12 CFR Part 204, as amended.

The Company shall
select the applicable rate option at the time it requests a loan hereunder and
may, subject to the limitations set forth above, elect to convert balances
bearing interest at the variable rate option to one of the fixed rate
options.  Upon the expiration of any
fixed rate period, interest shall automatically accrue at the variable rate
option unless the amount fixed is repaid or fixed for an additional period in
accordance with the terms hereof. 
Notwithstanding the foregoing, rates may not be fixed in such a manner
as to cause the Company to have to break any fixed rate balance in order to pay
any installment of principal.  All
elections provided for herein shall be made electronically (if applicable),
telephonically or in writing and must be received by Agent not later than 12:00
Noon Company’s local time in order to be considered to have been received on
that day; provided, however, that in the case of LIBOR rate loans, all such
elections must be confirmed in writing upon Agent’s request.  Interest shall be calculated on the actual
number of days each loan is outstanding on the basis of a year consisting of
360 days and shall be payable monthly in arrears by the 20th day of the
following month or on such other day in such month as Agent shall require in a
written notice to the Company; provided, however, in the event the Company
elects to fix all or a portion of the indebtedness outstanding under LIBOR
interest rate option above, at Agent’s option upon written notice to the
Company, interest shall be payable at the maturity of the Interest Period and
if the LIBOR interest rate fix is for a period longer than 3 months, interest
on that portion of the indebtedness outstanding shall be payable quarterly in
arrears on each three-month anniversary of the commencement date of such
Interest Period, and at maturity.

(B)          Loan
Origination Fee.  In consideration of
the Commitment, the Company agrees to pay to Agent a loan origination fee in
the amount of $397,500.00 (less all payments already received by Agent) upon
the execution hereof.

SECTION 6.         Promissory
Note.  The Company promises to repay
the loans as follows: (i) in 27 equal, consecutive quarterly installments of
$2,125,000.00 with the first such installment due on December 20, 2007, and the
last such installment due on June 20, 2014; and (ii) followed by a final
installment in an amount equal to the remaining unpaid principal balance of the
loans on September 20, 2014.  If any installment
due date is not a day on which Agent is open for business, then such
installment shall be due and payable on the next day on which Agent is open for
business.  In addition to the above, the
Company promises to pay interest on the unpaid principal balance hereof at the
times and in accordance with the provisions set forth in Section 5 hereof.

In addition, for each fiscal year end, beginning with the fiscal year
ending in 2007, and ending with the fiscal year ending in 2010, the Company
shall also, within ninety (90) days after the end of such fiscal year, make a
special payment of an amount equal to 65% of the “Free Cash Flow” (as defined
below) of the Company, however, such payment shall not to exceed $4,500,000.00
in

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any fiscal year; provided, however, that: (i) if such payment would result
in a covenant default under this Supplement or the MLA, the amount of the
payment shall be reduced to an amount which would not result in a covenant
default; (ii) if such payment would result in a breakage of a fixed interest
rate, the applicable broken funding surcharges would still apply; and (iii) the
aggregate of such payments shall not exceed $9,000,000.00.  The term “Free Cash Flow” is defined as the
Company’s annual profit net of taxes, plus the respective fiscal year’s
depreciation and amortization expense, minus allowable capitalized
expenditures for fixed assets during fiscal year 2008, 2009, and 2010, allowed
distributions to members/owners, and scheduled term loan payments to
Agent.  This special payment shall be
applied to the principal installments in the inverse order of their maturity.

SECTION
7.         Prepayment.  Subject to the broken funding surcharge
provision of the MLA, the Company may on one Business Day’s prior written
notice prepay all or any portion of the loan(s).  Unless otherwise agreed, all prepayments will
be applied to principal installments in the inverse order of their maturity.
However, in addition to the foregoing, prepayment of any Loan balance due to
refinancing, or refinancing of any unadvanced Commitment, up to and including
February 1, 2009 will result in a 3% prepayment charge in addition to any
broken funding surcharges which many be applicable, based on the amounts
prepaid and on the total amount of the Commitments in effect at such time.

SECTION 8.         Security. Security is set forth in the MLA.

SECTION
9.         Additional Conditions
Precedent.

(A)          Initial
Advance. Agent’s obligation to make the initial advance is subject to the
satisfaction of each of the following additional conditions precedent on or
before the date of such advance:

(1)           List
of Permits. Receipt by Agent of a detailed list of all permits required for
both the construction of the improvements and the operation of the facility
setting forth for each listed permit whether such permit is required for
commencement of construction or required for commencement of operation, and
identifying to Agent’s satisfaction whether such permits have been issued or
can reasonably be expected to be issued.

(2)           Construction
Permits. Receipt by Agent of evidence of issuance of all permits that are
required to be obtained prior to the commencement of construction of the
improvements.

(3)           Engineer’s
Certificate. Receipt by Agent of a report of Agent’s retained engineer
(pursuant to the provisions of Section 14(D)) indicating that the current plans
and specifications of the Improvements and the related contracts establish that
the finished project will have adequate natural gas, electricity, water and
waste water treatment to service the requirements of the project.

(B)          Each
Advance. Agent’s obligation to make each advance hereunder, including the
initial advance, is subject to the satisfaction of each of the following
additional conditions precedent on or before the date of such advance:

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(1)           Request
for Construction Loan Advance. That Agent receives an executed request for
construction loan advance from the Company in the form of Exhibit A attached
hereto (the “Request for Construction Loan Advance”), together with all items
called for therein.

(2)           Construction
Certificate. If an independent inspector has been employed by Agent
pursuant to Section 14(D), a certificate or report of such inspector to the
effect that the construction of the Improvements to the date thereof has been
performed in a good and workmanlike manner and in accordance with the Plans,
stating the estimated total cost of construction of the Improvements, stating
the percentage of in-place construction of the Improvements, and stating that
the remaining non-disbursed portion of the Commitment is adequate to complete
the construction of the Improvements.

SECTION
10.            Representations and
Warranties. In addition to the representations and warranties contained in
the MLA, the Company represents and warrants as follows:

(A)          Project
Approvals; Consents; Compliance. The Company has obtained all Project
Approvals relating to the construction and operation of the Improvements,
except those the Company has disclosed to Agent in writing. All such Project
Approvals heretofore obtained remain in full force and effect and the Company
has no reason to believe that any such Project Approval not heretofore obtained
will not be obtained by the Company in the ordinary course during or following
completion of the construction of the Improvements. To the extent that any
Project Approval may terminate or become void or voidable or terminable, upon
any sale, transfer or other disposition of the Property or the Improvements,
including any transfer pursuant to foreclosure sale under the Mortgage, the
Company will cooperate with Agent to obtain any replacement Project Approvals.
No consent, permission, authorization, order, or license of any governmental
authority is necessary in connection with the execution, delivery, performance,
or enforcement of the loan documents to which the Company is a party, except
such as have been obtained and are in full force and effect. The Company is in
compliance in all material respects with all Project Approvals having
application to the Property or the Improvements except as the Company has
disclosed to Agent in writing. Without limiting the foregoing, there are no
unpaid or outstanding real estate or other taxes or assessments on or against
the Property or the Improvements or any part thereof (except only real estate
taxes not yet due and payable). The Company has received no notice nor has any
knowledge of any pending or contemplated assessments against the Property or
the Improvements which have not been disclosed to Agent in writing.

(B)          Environmental
Compliance. Without limiting the provisions of the MLA, all property owned
or leased by the Company, including, without limitation, the Property and the
Improvements, and all operations conducted by it are in compliance in all
material respects with all Laws and all Project Approvals relating to
environmental protection, the failure to comply with which could have a
material adverse effect on the condition, financial or otherwise, operations,
properties, or business of the Company, or on the ability of the Company to
perform its obligations under the loan documents, except as the Company has
disclosed to Agent in writing.

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(C)          Feasibility.
Each of the Project Budget, the Project Schedule and the Disbursement Schedule
is realistic and feasible.

SECTION
11.       Affirmative Covenants.
In addition to the affirmative covenants contained in the MLA, the Company
agrees to:

(A)          Reports
and Notices. Furnish to Agent:

(1)           Regulatory
and Other Notices. Promptly after receipt thereof, copies of any notices or
other communications received from any governmental authority with respect to
the Property, the Improvements, or any matter or proceeding the effect of which
could have a material adverse effect on the condition, financial or otherwise,
operations, properties, or business of the Company, or the ability of the
Company to perform its obligations under the loan documents.

(2)           Notice
of Nonpayment. Promptly after the filing or receipt thereof, a description
of or a copy of any lien file by or any notice, whether oral or written, from
any laborer, contractor, subcontractor or materialman to the effect that such
laborer, contractor, subcontractor or materialman has not been paid when due
for any labor or materials furnished in connection with the construction of the
Improvements.

(3)           Notice
of Suspension of Work. Prompt notice of any suspension in the construction
of the Improvements, regardless of the cause thereof, in excess of ten (10)
days and a description of the cause for such suspension.

(B)          Construction
Liens. Pay or cause to be removed, within fifteen (15) days after notice
from Agent, any lien on the Improvements or Property, provided, however, that
Company shall have the right to contest in good faith and with reasonable
diligence the validity of any such lien or claim.

(C)          Identity
of Contractors, etc. Furnish to Agent from time to time on request by
Agent, in a form acceptable to Agent, correct lists of all contractors,
subcontractors and suppliers of labor and material supplied in connection with
construction of the Improvements and true and correct copies of all executed
contracts, subcontracts and supply contracts. Agent may contact any contractor,
subcontractor or supplier to verify any facts disclosed in the lists and
contracts. All contracts and subcontracts relating to construction of the
Improvements must contain provisions authorizing or not prohibiting the Company
to supply to Agent the listed information and copies of contracts or not
otherwise prohibiting any transfers.

(D)          Lien
Waivers. Furnish to Agent, at any time and from time to time upon the
request of Agent, lien waivers bearing a then current date and prepared on a
form satisfactory to Agent from such contractor, subcontractor, or supplier as
Agent shall designate.

(E)           Operating Permits. Furnish to Agent,
unless as otherwise consented to in writing by Agent, as soon as possible but
prior to the commencement of operation of the constructed facility, evidence of
the issuance of all necessary permits for such operation.

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SECTION 12.       Negative
Covenants. In addition to the negative covenants contained in the MLA, the
Company will not:

(A)          Change
Orders. Allow any substantial deviation, addition, extra, or change order
to the Plans, Project Budget or Project Schedule, the cost of which in the
aggregate exceeds $100,000.00, without Agent’s prior written approval. All
requests for substantial changes shall be made using a Change Order Request in
the form of Exhibit B attached hereto. Agent will have a reasonable time to
evaluate any requests for its approval of any changes referred to in this
covenant, and will not be required to consider approving any changes unless all
other approvals that may be required have been obtained. Agent may approve or
disapprove changes in its discretion. All contracts and subcontracts relating
to the construction of the Improvements must contain provisions satisfactory to
Agent implementing the above provisions of this covenant. Company shall
promptly provide to Agent copies of all change orders that, pursuant to the
above described procedures, did not require Agent’s prior written approval.

(B)          Materials.
Purchase or install any materials, equipment, fixtures or articles of personal
property for the Improvements if such shall be covered under any security
agreement or other agreement where the seller reserves or purports to reserve
title or the right of removal or repossession, or the right to consider them
personal property after their incorporation in the Improvements.

SECTION 13.       Casualties.

(A)          Right
to Elect to Apply Proceeds. In case of material loss or damage to the
Property or to the Improvements by fire, by a taking by condemnation for public
use or the action of any governmental authority or agency, or the transfer by
private sale in lieu thereof, either temporarily or permanently, or otherwise,
if in the sole judgment of Agent there is reasonable doubt as to Company’s
ability to complete construction of the Improvements on or before April 1,
2007, by reason of such loss or damage or because of delays in making
settlements with governmental agencies or authorities or with insurers, Agent
may terminate its obligations to make advances hereunder and elect to collect,
retain and apply to the Commitment all proceeds of the taking or insurance
after deduction of all expense of collection and settlement, including
attorneys’ and adjusters’ fees and charges. In the event such proceeds are
insufficient to pay the Commitment in full, Agent may declare the balance
remaining unpaid on the Commitment to be due and payable forthwith and avail
itself on any of the remedies afforded thereby as in any case of default.

(B)          Election
Not to Apply Proceeds. In case Agent does not elect to apply such proceeds
to the Commitment, Company will:

(1)           Settle.
Proceed with diligence to make settlement with the governmental agencies or
authorities or the insurers and cause the proceeds of insurance to be paid to
Company.

(2)           Resume
Construction. Promptly proceed with the resumption of construction of the
Improvements, including the repair of all damage resulting from such fire or
other cause and restoration to its former condition.

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(C)          Use
of Proceeds. All such proceeds shall be fully used before the disbursement
of any further proceeds of the Commitment.

SECTION 14.       Other
Rights of Agent.

(A)          Right
to Inspect. Agent or its agent may enter on the Property at any time and inspect
the Improvements. If the construction of the Improvements is not reasonably
satisfactory to Agent, Agent may reasonably and in good faith stop the
construction and order its replacement or the correction thereof or additions
thereto, whether or not said unsatisfactory construction has been incorporated
in the Improvements, and withhold all advances hereunder until such
construction is satisfactory to Agent. Such construction shall promptly be made
satisfactory to Agent.

(B)          Obligation
of Agent. Neither Agent nor any inspector hired pursuant to Subsection (D)
below is obligated to construct or supervise construction of the Improvements.
Inspection by Agent or such inspector thereof is for the sole purpose of
protecting Agent’s security and is not to be construed as a representation that
there will be compliance on anyone’s part with the Plans or that the
construction will be free from faulty material or workmanship. Neither Agent
nor such inspector shall be liable to the Company or any other person concerning
the quality of construction of the Improvements or the absence therefrom of
defects. The Company will make or cause to be made such other independent
inspections as it may desire for its own protection.

(C)          Right
to Complete Upon Event of Default. Upon any Event of Default hereunder,
Agent may complete construction of the Improvements, subject to Agent’s right
at any time to discontinue any work without liability, and apply the proceeds
of the Commitment to such completion, and may demand such additional sums from
the Company as may be necessary to complete construction, which sums the
Company shall promptly pay to Agent. In connection with any construction of the
Improvements undertaken by Agent pursuant to this Subsection, Agent may (i)
enter upon the Property; (ii) employ existing contractors, architects,
engineers and subcontractors or terminate them and employ others; (ii) make
such addition, changes and corrections in the Plans as shall, in the judgment
of Agent, be necessary or desirable; (iv) take over and use any personal
property, materials, fixtures, machinery, or equipment of the Company to be
incorporated into or used in connection with the construction or operation of
the Improvements; (v) pay, settle, or compromise all existing or future bills
and claims which are or may be liens against the Property or the Improvements;
and (vi) take such other action, as Agent may in its sole discretion determine,
to complete the construction of the Improvements. The Company shall be liable
to Agent for all costs paid or incurred for construction of the Improvements,
and all payments made hereunder shall be deeded advances by Agent, shall be
evidenced by the Note and shall be secured by the Mortgage and any other loan
document securing the Commitment (including any amounts in excess of the
Commitment).

(D)          Right to Employ Independent Engineer.
Agent reserves the right to employ an independent construction engineer, among
other things, to review the Project Budget, the Project Schedule and the Plans,
inspect all construction of the Improvements and the periodic progress of the
same, and review all Draw Requests and change orders, the cost therefor to be
the sole responsibility of the Company and shall be paid by the Company upon
demand by Agent.

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(E)           Indemnification
and Hold Harmless. The Company shall indemnify and
hold Farm Credit and Agent harmless from and against all liability, cost or
damage arising out of this Agreement or any other loan document or the
transactions contemplated hereby and thereby, including without limitation, (i)
any alleged or actual violation of any Law or Project Approval relating to the
Property or the Improvements and (ii) any condition of the Property or the
Improvements whether relating to the quality of construction or otherwise and
whether Agent elects to complete construction upon an Event of Default or
discontinues or suspends construction pursuant to this Section 14. Agent may
commence, appear in or defend any such action or proceeding or any other action
or proceeding purporting to affect the rights, duties or liabilities of the
parties hereunder, or the Improvements, or the Property, or the payment of the
Commitment, and the Company agrees to pay all of Agent’s costs and expenses,
including its reasonable attorneys’ fees, in any such actions. The obligations
of the Company under this Subsection 14(E) shall survive the termination of
this Agreement. As to any action or inaction taken by Agent hereunder, Agent
shall not be liable for any error of judgment or mistake of fact or law, absent
gross negligence or willful misconduct on its part. The Company’s obligation to
indemnify and hold Agent harmless hereunder will exclude any liability, cost,
or damage related to Agent’s breach of this Agreement or for Agent’s gross
negligence or willful misconduct.

SECTION
15.            Notice of Completion.
Company irrevocably appoints Agent as Company’s agent to file of record any
notice of completion, cessation of labor or any other notice that Agent deems
necessary to file to protect any of the interests of Agent. Agent, however,
shall have no duty to make such filing.

SECTION
16.            Signs and Publicity.
At Farm Credit’s and Agent’s request, Company will allow Farm Credit and Agent
to post signs on the Property at the construction site for the purpose of
identifying Farm Credit and Agent as the “Construction Lenders”. At the request
of Farm Credit and Agent, Company will use its best efforts to identify Farm
Credit and Agent as the construction lenders in publicity concerning the
Project.

SECTION
17.            Cooperation.
Company will cooperate at all times with Agent in bringing about the timely
completion of the Improvements, and Company will resolve all disputes arising
during the work of construction in a manner which will allow work to proceed
expeditiously.

SECTION
18.            Events of Default.
In addition to the events of default set forth in the MLA, each of the
following shall constitute an “Event of Default” hereunder.

(A)          Cessation
of Construction. Any cessation at any time in the
construction of the Improvements for more than thirty (30) consecutive days,
except for strikes, acts of God, or other causes beyond the Company’s control,
or any cessation at any time in construction of the Improvements for more than
thirty (30) consecutive days, regardless of the cause.

(B)          Insufficiency of Loan Proceeds.
Agent, in its sole discretion shall determine that the remaining undisbursed
portion of the Commitment is or will be insufficient to fully complete the
Improvements in accordance with the Plans.

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SECTION 19.            Remedies
Upon Default. In addition to the remedies set forth in
the MLA, upon the occurrence of and during the continuance of each and every
Event of Default Agent may (but shall not be obligated to) take over an
complete construction of the Improvements in accordance with plans and
specifications approved by Agent with such changes as Agent may, in its sole
discretion, deem appropriate, all at the risk, cost, and expense of the
Company. Agent may assume or reject any contracts entered into by the Company
in connection with the Improvements, and may enter into additional or different
contracts for services, labor, and materials required, in the judgment of
Agent, to complete the construction of the Improvements and may pay,
compromise, and settle all claims in connection with the construction of the
Improvements. All sums, including reasonable attorneys’ fees, charges, or fees
for supervision and inspection of the construction, and for any other necessary
purpose in the discretion of Agent, expended by Agent in completing the
construction of the Improvements (whether aggregating more or less than the
amount of this Commitment) shall be deemed advances made by Agent to the
Company under this Commitment, and the Company shall be liable to Agent for the
repayment of such sums, together with interest on such amounts from the date of
their expenditure at the default rate specified above. Agent may, in its sole
discretion, at any time, abandon work on the construction of the Improvements
after having commenced such work, and may recommence such work at any time, it
being understood that nothing in this Section shall impose any obligation on
Agent to either complete or not to complete the construction of the
Improvements. For the purposes of carrying out the provisions of this Section,
the Company irrevocably appoints Agent, its attorney-in-fact, with full power
of substitution, to execute and deliver all such documents, pay and receive
such funds, and take such action as may be necessary, in the judgment of Agent,
to complete the construction of the Improvements.

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IN WITNESS WHEREOF, the parties have caused this Supplement to be
executed by their duly authorized officers as of the date shown above.

	
  FARM CREDIT SERVICES

  	
   

  	
  ADVANCED BIOENERGY, LLC

  
	
  OF AMERICA, FLCA

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Jeremy
  Wilhelm

  	
   

  	
  By:

  	
  /s/ Revis L.
  Stephenson III

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  VP

  	
   

  	
  Title

  	
  Chairman

  

 

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EXHIBIT A

REQUEST
FOR

LOAN ADVANCE

	
  Request No.

  	
   

  	
   

  	
  Date:

  

 

	
  To:

  	
   

  	
  CoBank, ACB

  
	
  From:

  	
   

  	
  Advanced BioEnergy, LLC

  
	
   

  	
   

  	
  (Name of Borrower)

  

 

	
  

  	
   

  	
  Loan Agreement No. RI0340T01

  	
   

  	
  Dated: February 17, 2006

  
	
   

  	
   

  	
  Project Description:

  	
   

  	
   

  
	
   

  	
   

  	
  Project Location:

  	
   

  	
   

  

 

In accordance with
the terms of the above referenced Loan Agreement, you are hereby authorized and
requested to make a construction advance, as set forth in said Loan Agreement,
of the amount and for the items set forth in the request schedule attached
hereto as Schedule “A” and incorporated herein.

The undersigned hereby certify that:

1.                                       The
labor, services and/or materials covered hereby have been performed upon or
furnished to the above referenced project and are accurately described in the
supporting invoices attached to the request schedule;

2.                                       There
have been no changes in the cost breakdown for the project dated                               supplied
to Agent, except those approved in writing by Agent;

3.                                       All
construction to date has been substantially performed in accordance with the
Plans for the Improvements, and there have been no changes in the Plans except
as approved in writing by Agent;

4.                                       There
have been no material changes in the scope or time of performance of the work
of construction, nor any extra work, labor or materials ordered or contracted
for, nor are any such changes or extras contemplated, except as may be
expressly permitted by the Loan Agreement or as have been approved in writing
by Agent;

5.                                       The
payments to be made with the requested funds will pay all bills received to
date, less any required withholds, for labor, materials, equipment and/or
services furnished in connection with the construction of the Improvements; and

 12
 

 

6.                                       All
amounts previously advanced by Agent for labor, services, equipment and/or
materials for the above referenced project pursuant to previous Request for
Construction Loan Disbursement have been paid to the parties entitled thereto
in the manner required in the Loan Agreement.

7.                                       All
conditions to the advance of Loan funds required herein as set forth in the
Loan Agreement have been fulfilled, and to the actual knowledge of the
undersigned, no Event of Default under the Loan Agreement has occurred and is
continuing.

	
   

  	
   

  	
   

  
	
  

  	
   

  	
  BORROWER:

  
	
   

  	
   

  	
  ADVANCED BIOENERGY, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ENGINEER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CONTRACTOR:

  
	
   

  	
   

  	
  FAGEN, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  

 

We have reviewed the Pay
Application Numbered         and
dated                   
Based on our conversations with the Contractor and the Owner, our review of the
current schedule, and our site observations, the construction in place is
judged to be in general accordance with industry standards and in general
conformity with the approved plans and specifications, proceeding generally on
schedule, and the request for payment is a reasonable representation of the
materials ordered and the work effort of the Contractor to date.

	
  

  	
   

  	
  AGENT’S CONSULTING ENGINEER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  

 

APPROVED FOR
PAYMENT BY AGENT:

CoBANK, ACB

	
  By:

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  

 13
 

 

EXHIBIT B

CHANGE ORDER REQUEST

	
  

  	
   

  	
  Date:

  
	
  Request No. CO#

  	
   

  	
   

  

 

	
  To:

  	
   

  	
  CoBank, ACB

  
	
  From:

  	
   

  	
  Advanced BioEnergy, LLC

  
	
   

  	
   

  	
  (Name of Borrower)

  

 

	
  

  	
   

  	
  Loan Agreement No. RI0340T01

  	
   

  	
  Dated:  February 17, 2006

  
	
   

  	
   

  	
  Project Description:

  	
   

  	
   

  
	
   

  	
   

  	
  Project Location:

  	
   

  	
   

  

 

In accordance with
the terms of the above referenced Loan Agreement, the undersigned hereby
requests that Agent approve the change orders more particularly described in
the schedule attached hereto as Schedule “A” and incorporated herein.

The undersigned hereby certify that:

1.                                       There
have been no changes in the Plans and or contracts except those permitted in
the Loan Agreement and/or approved in writing by Agent; and

2.                                       Copies
of the proposed changes to the Plans and/or contracts are attached hereto as
Schedule “B” and that all such documents are complete and fully comply with all
applicable permits and approvals, subject to the written approval of Agent.

	
   

  	
   

  	
   

  
	
  BORROWER:

  	
   

  	
  ENGINEER:

  
	
  ADVANCED
  BIOENERGY, LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
  CONTRACTOR:

  	
   

  	
   

  
	
  FAGEN, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CHANGE ORDER
  APPROVED BY AGENT:

  	
   

  	
   

  
	
  CoBANK, ACB

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  	
   

  
							

 

 14Exhibit
10.22

DISTILLER’S GRAIN
MARKETING AGREEMENT

THIS
DISTILLER’S GRAIN MARKETING AGREEMENT (the “Agreement”), is entered into
effective as of May 31st,
2006, by Advanced BioEnergy LLC, a Delaware Limited Liability Corporation (“Seller”),
and Commodity Specialist Company, a Delaware Corporation (“Buyer”).

W I T N E S S E T
H:

WHEREAS,
Seller desires to sell and Buyer desires to purchase the Distiller’s Dried
Grains with Solubles (hereinafter sometimes referred to as “DDGS” or as the “Products”)
output of the ethanol production plant which Seller owns in Fairmont, Nebraska
(the “Plant”; and

WHEREAS,
Seller desires to retain all rights to independently market and sell all of its
Wet Distillers Grains (“WDG”), Modified Wet Distillers Grains (“MWDG”) and solubles
(“Solubles”) output of the Plant and Buyer does not desire to acquire any
marketing, sales or other rights relating to the WDG, MWDG and Solubles
produced by Seller at the Plant; and

WHEREAS,
Seller and Buyer wish to agree in advance of such sale and purchase to the
price formula, payment, delivery and other terms thereof in consideration of
the mutually promised performance of the other;

NOW,
THEREFORE, in consideration of the promises and the mutual covenants and
conditions herein contained, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged by both parties, it is
hereby agreed:

1.             BUYER
PERFORMANCE.  Buyer agrees to perform
the services that it provides for Seller in a professional and competent
manner.

2.             PURCHASE
AND SALE.  Seller agrees to sell to
Buyer and Buyer agrees to purchase from Seller the entire bulk feed grade DDGS
output from the Plant, subject to all terms and conditions set forth in this
Agreement.  Buyer shall label all
Products that are sold by Buyer and shall register all labels with the states
where the Products are sold.  Buyer and
Seller agree that Seller will not sell to Buyer and Buyer will not be obligated
to purchase from Seller any of Seller’s WDG, MWDG or Solubles produced at the
Plant.

3.             TRADE
RULES.  All purchases and sales made
hereunder shall be governed by the Feed Trade Rules of the National Grain and
Feed Association unless otherwise specified. 
Said Trade Rules, a copy of which is appended hereto as Exhibit A, shall,
to the extent applicable, be a part of this Agreement as if fully set forth
herein.

4.             TERM.  Unless otherwise terminated as provided by
this Agreement, the term of this Agreement shall be for one year commencing as
of completion and start-up of production of the Plant.  Start-up is anticipated to be in the summer
of 2007.  Thereafter this agreement shall
remain in effect until terminated by either party at its unqualified option by
providing the other party hereto not less than 120 days written notice of its
election to terminate this Agreement.

 

5.             DELIVERY
AND TITLE.

A.            The
place of delivery for all the Products sold pursuant to this Agreement shall be
FOB Plant.  Buyer and Buyer’s agents
shall be given access to Seller’s Plant in a manner and at all times reasonably
necessary and convenient for Buyer to take delivery as provided herein.  Buyer shall schedule the loading and shipping
of all outbound Products purchased hereunder which is shipped by truck or rail.  All labor and equipment necessary to load
trucks or rail cars shall be supplied by Seller without charge to Buyer.  Seller agrees to handle the Products in a
good and workmanlike manner in accordance with Buyer’s reasonable requirements
and in accordance with normal industry practice.  Seller shall maintain the truck and rail
loading facilities in safe operating condition in accordance with normal
industry standards.

B.            Seller
further warrants that storage space for not less than five days production of
DDGS shall be reserved for Buyer’s use at the Plant and shall be continuously
available for storage of DDGS purchased by Buyer hereunder at no charge to
Buyer.  Seller shall be responsible at
all times for the quantity, quality and condition of any the Products in
storage at the Plant.  Seller shall not
be responsible for the quantity, quality and condition of any of the Products
stored by Buyer at locations other than the Plant.

C.            Buyer
shall give to Seller a schedule of quantities of the Products to be removed by
truck and rail with sufficient advance notice reasonably to allow Seller to
provide the required services.  Seller
shall provide the labor, equipment and facilities necessary to meet Buyer’s
loading schedule and, except for any consequential or indirect damages, shall
be responsible for Buyer’s actual costs or damages resulting from Seller’s
failure to do so.  Buyer shall order and
supply trucks and rail cars as scheduled for truck and rail shipments.  All freight charges shall be the
responsibility of Buyer and shall be billed directly to Buyer.

D.            Buyer
shall provide loading orders as necessary to permit Seller to maintain Seller’s
usual production schedule, provided, however, that Buyer shall not be
responsible for failure to schedule removal of the Products unless Seller shall
have provided to Buyer production schedules as follows:  Five (5) days prior to the beginning of each
calendar month during the term hereof, Seller shall provide to Buyer a
tentative schedule for production in the next calendar month.  Seller shall inform Buyer daily of inventory
and production status.  For purposes of
this paragraph, notification will be sufficient if made by e-mail or facsimile
as follows:

If to Buyer, to the attention of Steve Markham,
Facsimile number 612-330-9894 or email to smarkham@csc-world.com, and

If to Seller, to the attention of the Plant Manager,
Facsimile number 402-759-3774 with a copy to the attention of Don Gales,
Facsimile number 402-759-3774 or email to dgales@advancedbioenergy.com.

 2
 

 

Or to such other representatives of Buyer and Seller
as they may designate to the other in writing.

E.                                      Title,
risk of loss and full shipping responsibility shall pass to Buyer upon loading
the Products into trucks or rail cars and delivering to Buyer of the bill of
lading for each such shipment.

F.                                      As
of the date of this Agreement, Seller has committed to lease 230 railcars (“Railcar
Fleet”), which cars are intended to move Products.  Buyer agrees that it shall manage the Railcar
Fleet, prepare bills of lading with proper routings and shall use commercially
reasonable efforts to move the Railcar Fleet for its intended purpose of moving
Products as quickly as possible.

6.             PRICE
AND PAYMENT

A.            Buyer
agrees to pay Seller as follows:  for all
DDGS removed by Buyer from the Plant a price equal to ninety nine percent (99%)
of the FOB Plant Price (as hereafter defined) minus an amount equal to $0.90
per ton of DDGS removed from the Plant. 
By way of illustration, if the the FOB Plant Price is $100.00, Buyer
would retain $1.90 and would remit the balance to Seller.  For purposes of this provision, the FOB Plant
Price shall be the actual sale price received by Buyer from its customers, less
all customary freight costs actually incurred by Buyer in delivering the
Product to its customer.  Buyer agrees
that it shall not sell Product for delivery more than 90 days from the date of
entering into a sale without the consent of Seller.  Buyer agrees to use commercially reasonable
efforts to achieve the highest resale price available under prevailing market
conditions.  Seller’s sole and exclusive
remedy for breach of Buyer’s obligations hereunder shall be to terminate this
Agreement.  Buyer shall collect all
applicable state tonnage taxes on Products sold by Buyer and shall remit to the
appropriate governmental agency.

B.            Within
ten (10) days following receipt of certified weight certificates, which
certificates shall be presented to Buyer each Thursday for all shipments during
the preceding week, Buyer shall pay Seller the full price, determined pursuant
to paragraph 6A above, for all properly documented shipments.  Buyer agrees to maintain accurate sales
records and to provide such records to Seller upon request.  Seller shall have the option to audit Buyer’s
sales invoices at any time during normal business hours and during the term of
this Agreement.  If any such audit
reveals a deficiency in payment due from Buyer to Seller, Buyer shall
immediately pay Seller the amount of the deficiency plus interest calculated
from the date such payment should have been made at the prime rate then in
effect as published in the Wall Street Journal.  If any such audit reveals a payment in excess
of what was due from Buyer to Seller, Seller shall immediately pay Buyer such
amount plus interest calculated from the date such payment should have been
made at the prime rate then in effect as published in the Wall Street
Journal.

 3
 

 

7.             QUANTITY
AND WEIGHTS.

A.            It
is understood that the output of the Products shall be determined by Seller’s
production schedule and that no warranty or representation has been made by
Seller as to the exact quantities of Products to be sold pursuant to this
Agreement.

B.            The
quantity of Products delivered to Buyer from Seller’s Plant shall be
established by weight certificates obtained from scale at the Plant which is
certified as of the time of weighing and which complies with all applicable
laws, rules and regulations or in the event that the scale at the Plant is
inoperable then at other scales which are certified as of the time of weighing
and which comply with all applicable laws, rules and regulations.  The outbound weight certificates shall be
determinative of the quantity of the Products for which Buyer is obligated to
pay pursuant to Section 6.

8.             QUALITY.

A.            Seller
understands that Buyer intends to sell the Products purchased from Seller as a
primary animal feed ingredient and that said Products are subject to minimum
quality standards for such use.  Seller
agrees and warrants that the Products produced at its plant and delivered to
Buyer shall be accepted in the feed trade under current industry standards.

B.            Seller
warrants that all Products, unless the parties agree otherwise, sold to Buyer
hereunder shall, at the time of delivery to Buyer, conform to the following
minimum quality standard:

	
   

  	
   

  	
  Protein

  	
   

  	
  Fat

  	
   

  	
  Fiber

  	
   

  	
  Moisture

  	
   

  	
  Ash

  	
   

  
	
   

  	
   

  	
  Min

  	
   

  	
  Max

  	
   

  	
  Min

  	
   

  	
  Max

  	
   

  	
  Min

  	
   

  	
  Max

  	
   

  	
  Min

  	
   

  	
  Max

  	
   

  	
  Min

  	
   

  	
  Max

  	
   

  
	
  DDGS

  	
   

  	
  25

  	
   

  	
   

  	
   

  	
  10

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  15

  	
   

  	
   

  	
   

  	
  12

  	
   

  	
   

  	
   

  	
  6

  	
   

  

 

The standard for DDGS will be determined on an “as is”
basis rather than a dry weight basis.

C.            Seller
warrants that at the time of loading, the Products will not be adulterated or
misbranded within the meaning of the Federal Food, Drug and Cosmetic Act and
that each shipment may lawfully be introduced into interstate commerce under
said Act.  Payment of invoice does not
waive Buyer’s rights if goods do not comply with terms or specifications of
this Agreement.  Unless otherwise agreed
between the parties to this Agreement, and in addition to other remedies
permitted by law, the Buyer may, without obligation to pay, reject either
before or after delivery, any of the Products which when inspected or used fail
in any material way to conform to this Agreement.  Should any of the Products be seized or
condemned by any federal or state department or agency for any reason except
noncompliance by Buyer with applicable federal or state requirements, such
seizure or condemnation shall operate as a rejection by Buyer of the goods
seized or condemned and Buyer shall not be obligated to offer any defense in 

 4
 

 

connection with the seizure or condemnation.  When rejection occurs before or after
delivery, at its option, Buyer may:

(1)           Dispose
of the rejected goods after first offering Seller a reasonable opportunity of
examining and taking possession thereof, if the condition of the goods
reasonably appears to Buyer to permit such delay in making disposition; or

(2)           Dispose
of the rejected goods in any manner directed by Seller which Buyer can
accomplish without violation of applicable laws, rules, regulations or property
rights; or

(3)           If
Buyer has no available means of disposal of rejected goods and Seller fails to
direct Buyer to dispose of it as provided herein, Buyer may return the rejected
goods to Seller, upon which event Buyer’s obligations with respect to said
rejected goods shall be deemed fulfilled. 
Title and risk of loss shall pass to Seller promptly upon rejection by
Buyer.

(4)           Seller
shall reimburse Buyer for all costs reasonably incurred by Buyer in storing,
transporting, returning and disposing of the rejected goods.  Buyer shall have no obligation to pay Seller
for rejected goods and may deduct reasonable costs and expenses to be
reimbursed by Seller from amounts otherwise owed by Buyer to Seller.

(5)           If
Seller produces Products which comply with the warranty in Section C above but
which do not meet applicable industry standards, Buyer agrees to purchase such
Products for resale but makes no representation or warranty as to the price at
which such Product can be sold.  If the
Products deviates so severely from industry standard as to be unsalable, then it
shall be disposed of in the manner provided for rejected goods in Section C
above.

D.            If
Seller knows or reasonably suspects that any of the Products produced at its
Plant are adulterated or misbranded, or outside of industry quality standards,
Seller shall promptly so notify Buyer so that such Products can be tested
before entering interstate commerce.  If
Buyer knows or reasonably suspects that any of the Products produced by Seller
at its Plant are adulterated, misbranded or outside of industry quality
standards, then Buyer may obtain independent laboratory tests of the affected
goods.  If such goods are tested and
found to comply with all warranties made by Seller herein, then Buyer shall pay
all testing costs; and if the goods are found not to comply with such
warranties, Seller will pay all testing costs.

E.             Notwithstanding
anything in this Agreement to the contrary, Buyer acknowledges and agrees that
Seller’s warranties set out in Section 8 only apply to Products at the time
they are delivered to Buyer and Buyer agrees that Seller is not responsible for
Products which at some time after time of delivery become adulterated or
misbranded and then fail to conform to the standards set out in this Agreement.

9.             RETENTION
OF SAMPLES.  Seller will take an origin
sample of DDGS from each truck and rail car before it leaves the Plant using
standard sampling methodology.  Seller
will label these samples to indicate the date of shipment and the truck or
railcar 

 5
 

 

number involved. 
Seller will also retain the samples and labeling information for no less
than one year.

10.           INSURANCE.

A.            Seller
warrants to Buyer that all employees engaged in the removal of the Products
from Seller’s Plant shall be covered as required by law by worker’s
compensation and unemployment compensation insurance.

B.            Seller
agrees to maintain throughout every term of this Agreement comprehensive
general liability insurance, including product liability coverage, with
combined single limits of not less than $2,000,000.  Seller’s policies of comprehensive general
liability insurance shall be endorsed to require at least thirty (30) days
advance notice to Buyer prior to the effective date of any decrease in or
cancellation of coverage.  Seller shall
cause Buyer to be named as an additional insured on Seller’s insurance policy
and shall provide a certificate of insurance to Buyer to establish the coverage
maintained by Seller not later than fourteen (14) days prior to completion and
start-up of production of the Plant.

C.            Buyer
agrees to carry such insurance on its vehicles operating on Seller’s property
as Seller reasonably deems appropriate. 
The parties acknowledge that Buyer may elect to self insure its
vehicles.  Upon request, Buyer shall
provide certificate of insurance to Seller to establish the coverage maintained
by Buyer.

D.            Notwithstanding
the foregoing, nothing herein shall be construed to constitute a waiver by
either party of claims, causes of action or other rights which either party may
have or hereafter acquire against the other for damage or injury to its agents,
employees, invitees, property, equipment or inventory, or third party claims
against the other for damage or injury to other persons or the property of
others.

11.           REPRESENTATIONS
AND WARRANTIES

A.            Seller
represents and warrants that all of the Products delivered to Buyer shall not
be adulterated or misbranded within the meaning of the Federal Food, Drug and
Cosmetic Act and may lawfully be introduced into interstate commerce pursuant
to the provisions of the Act.  Seller
further warrants that the Products shall fully comply with any applicable state
laws governing quality, naming and labeling of product.  Payment of invoice shall not constitute a
waiver by Buyer of Buyer’s rights as to goods which do not comply with this
Agreement or with applicable laws and regulations.  EXCEPT AS SPECIFICALLY
STATED IN THIS AGREEMENT, SELLER MAKES NO WARRANTY OR REPRESENTATION, EXPRESS
OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE.

B.            Seller
represents and warrants that the Products delivered to Buyer shall be free and
clear of liens and encumbrances.

 6
 

 

12.           EVENTS
OF DEFAULT.  The occurrence of any of
the following shall be an event of default (“Event of Default”) under this
Agreement:  (1) failure of either party
to make payment to the other when due; (2) default by either party in the
performance of the covenants and agreements set forth in this Agreement; (3) if
either party shall become insolvent, or make a general assignment for the
benefit of creditors or to an agent authorized to liquidate any substantial
amount of its assets, or be adjudicated bankrupt, or file a petition in
bankruptcy, or apply to a court for the appointment of a receiver for any of
its assets or properties with or without consent, and such receiver shall not
be discharged within sixty (60) days following appointment.

13.           REMEDIES.  Upon the happening of an Event of Default,
the parties hereto shall have all remedies available under applicable law with
respect to a Event of Default by the other party.  Without limiting the foregoing, the parties
shall have the following remedies whether in addition to or as one of the
remedies otherwise available to them; (1) to declare all amounts owed
immediately due and payable; and (2) immediately to terminate this Agreement
effective upon receipt by the party in default of the notice of termination,
provided, however, the parties shall be allowed 10 days from the date of
receipt of notice of default for to cure any default.  Notwithstanding any other provision of this
Agreement, Buyer may offset against amounts otherwise owed to Seller the price
of any product which fails to conform any requirements of this Agreement.

14.           FORCE
MAJEURE.  Neither Seller nor Buyer
will be liable to the other for any failure or delay in the performance of any
obligation under this Agreement due to events beyond its reasonable control,
including, but not limited to, fire, storm, flood, earthquake, explosion, act
of the public enemy, riots, civil disorders, sabotage, strikes, lockouts, labor
disputes, labor shortages, war stoppages or slowdowns initiated by labor,
transportation embargoes, failure or shortage of materials, acts of God, or
acts or regulations or priorities of the federal, state or local government or
branches or agencies thereof.

15.           INDEMNIFICATION.

A.            Seller
shall indemnify, defend and hold Buyer and its officers, directors, employees
and agents harmless, from any and all losses, liabilities, damages, expenses
(including reasonable attorneys’ fees), costs, claims, demands, that Buyer or
its officers, directors, employees or agents may suffer, sustain or become
subject to, or as a result of (i) any misrepresentation or breach of
warranty, covenant or agreement of Seller contained herein or (ii) the Seller’s
negligence or willful misconduct.

B.            Buyer
shall indemnify, defend and hold Seller and its officer, directors, employees
and agents harmless, from any and all losses, liabilities, damages, expenses
(including reasonable attorneys’ fees), costs, claims, demands, that Seller or
its officers, directors, employees or agents may suffer, sustain or become
subject to, or as a result of (i) any misrepresentation or breach of
warranty, covenant or agreement of Buyer contained herein or (ii) the
Buyer’s negligence or willful misconduct.

C.            Where
such personal injury, death or loss of or damage to property is the result of
negligence on the part of both Seller and Buyer, each party’s duty of 

 7
 

 

indemnification shall be in proportion to the percentage
of that party’s negligence or faults.

D.            Seller
acknowledges that in order to maximize the total revenue to be generated
through the sale of the Products, Buyer may take positions by selling Product
in anticipation of Seller providing the Products.  Notwithstanding the fact that Seller’s
obligation is to provide Buyer with the output of the Plant the parties
acknowledge that Buyer may suffer losses as a result of positions taken by
Buyer if Seller discontinues operations for any reason whatsoever including
Force Majeure.  Therefore, Seller shall
indemnify, defend and hold Buyer and its officers, directors, employees and
agents harmless from any and all losses, liabilities, damages, expenses
(including reasonable attorney’s fees), costs, claims, demands that Buyer or
its officers, directors, employees, or agents may suffer, sustain or become
subject to as a result of any sale or purchase of product taken by Buyer in
anticipation of Seller delivering the Products hereunder, provided Buyer has
taken commercially reasonable steps to avoid the loss.  Seller shall not be liable for any loss
resulting from Seller discontinuing operations related to a position taken by
Buyer for delivery more than 90 days from the date of entering into a sale
without the consent of Seller.

The indemnifications in this section 15 shall survive
termination of this Agreement.

16.           GOVERNMENTAL
ACTION.  The parties recognize that
the value of the Products could change as a result of various governmental
programs, be they foreign or domestic. 
In the event that a significant value change of the Products as a result
of any such governmental program, Buyer may request re-negotiation of the
contract price for the Products by providing written notice to Seller.  Buyer shall be required to demonstrate that
the value of the Products has significantly changed in the market.  Should such a change take place, the parties
agree to negotiate, in good faith, a revised sale price for the Products.  If, after a good faith effort, the parties
are unable to agree on a new price within the 90 day period immediately
following notice to the other party, then in such event and notwithstanding the
other provisions hereof, Buyer may terminate this Agreement upon 90 days prior
written notice.

17.           RELATIONSHIP
OF PARTIES.  This Agreement creates
no relationship other than that of buyer and seller between the parties
hereto.  Specifically, there is no
agency, partnership, joint venture or other joint or mutual enterprise or
undertaking created hereby.  Nothing contained
in this Agreement authorizes one party to act for or on behalf of the other and
neither party is entitled to commissions from the other.

18.           MISCELLANEOUS.

A.            This
writing is intended by the parties as a final expression of their agreement and
a complete and exclusive statement of the terms thereof.

B.            No
course of prior dealings between the parties and no usage of trade, except
where expressly incorporated by reference, shall be relevant or admissible to
supplement, explain, or vary any of the terms of this Agreement.

 8
 

 

C.            Acceptance
of, or acquiescence in, a course of performance rendered under this or any
prior agreement shall not be relevant or admissible to determine the meaning of
this Agreement even though the accepting or acquiescing party has knowledge of
the nature or the performance and an opportunity to make objection.

D.            No
representations, understandings or agreements have been made or relied upon in
the making of this Agreement other than as specifically set forth herein.

E.             This
Agreement can only be modified by a writing signed by all of the parties or
their duly authorized agents.

F.             The
paragraph headings herein are for reference purposes only and shall not in any
way affect the meaning or interpretation of this Agreement.

G.            This
Agreement shall be construed and performed in accordance with the laws of the
State of Nebraska.

H.            The
respective rights, obligations and liabilities of the parties under this
Agreement are not assignable or delegable without the prior written consent of
the other party.

I.              Notice
shall be deemed to have been given to the party to whom it is addressed
ninety-six (96) hours after it is deposited in certified U.S. mail, postage
prepaid, return receipt requested, addressed as follows:

	
  Buyer:

  	
  Commodity Specialist Company

  
	
   

  	
  310 Grain
  Exchange Bldg.

  
	
   

  	
  400 South Fourth
  Street

  
	
   

  	
  Minneapolis,
  Minnesota 55415

  
	
   

  	
  ATTN: Steve J.
  Markham

  
	
   

  	
   

  
	
  Seller:

  	
  Advanced BioEnergy LLC

  
	
   

  	
  PO Box 424

  
	
   

  	
  Geneva, NE 68361

  
	
   

  	
   

  
	
  Copy To:

  	
  Bill Hanigan, Esq.

  
	
   

  	
  Brown, Winick,
  Graves, Gross

  
	
   

  	
  Baskerville and
  Schoenbaum, PLC

  
	
   

  	
  Suite 2000 Ruan
  Center

  
	
   

  	
  666 Grand Avenue

  
	
   

  	
  Des Moines, Iowa
  50309

  

 

 9
 

 

IN
WITNESS THEREOF, the parties have caused this Agreement to be executed the day
and year first above written.

	
  

  	
  COMMODITY SPECIALISTS
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ illegible

  	
   

  
	
   

  	
  Title

  	
  Co-President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ADVANCED BIOENERGY LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Revis L. Stephenson III

  	
   

  
	
   

  	
  Title

  	
  Chairman & CEO

  	
   

  

 

 10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]