Document:

Exhibit 10.84

 

Agreement dated November 28,
2007

by and between

the Registrant and David
G. Dickey

 

	
  Summary of Key
  Points

  
	
   

  
	
  1.

  	
   

  	
  Responsibilities

  	
   

  	
  Current Logistics,
  Customer Care, Strategic Mfg, Procurement, Legal, EH&S, and
  HR/Communications organizations

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Title to be mutually
  defined

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Corporate Officer

  	
   

  	
   

  	
   

  	
  As Board of Directors
  approval permits

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Base Salary

  	
   

  	
  $350,000/yr or greater

  	
   

  	
  Effective NLT 1/1/08

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  2008 MIP

  	
   

  	
  Minimum of 50% target

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  2007 MIP

  	
   

  	
  Paid at target or
  greater  

  $135,000 or greater

  	
   

  	
  1Q08 (normal cycle)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  RSO’s

  	
   

  	
  $300,000 restricted
  shares

  	
   

  	
  2 year time vesting  Issue in 1Q08

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Flexperq

  	
   

  	
  Participation as
  Executive Officer  

  $32,000

  	
   

  	
  Effective NLT 1/1/08

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ David G. Dickey

  	
   

  	
  By:

  	
   

  	
  /s/ Robert L. Wood

  
	
  Name:

  	
   

  	
  David G. Dickey

  	
   

  	
  Name:

  	
   

  	
  Robert L. Wood

  
	
  Date:

  	
   

  	
  November 28, 2007Exhibit 10.1

 

FIFTH AMENDMENT

TO

LUMP SUM DESIGN-BUILD AGREEMENT

BETWEEN

HIGHWATER ETHANOL, LLC AND FAGEN, INC.

 

RECITALS

 

A.                                    Highwater
Ethanol, LLC (“Highwater”) and Fagen, Inc. (“Fagen”) (collectively, “the
Parties”) have entered into that certain Lump Sum Design-Build Agreement dated September 28,
2006 (the “Agreement”), as amended by the First Amendment, Second Amendment,
Third Amendment and Fourth Amendment thereto by and between said Parties.

 

B.                                    The Fourth
Amendment requires Owner (Highwater) to issue a valid Notice to Proceed by November 15,
2007 otherwise, the Agreement may be terminated, at Design-Builder’s sole
option.

 

C.                                    The Parties
mutually desire to amend and extend the time frame in which Owner is authorized
to issue a valid Notice to Proceed.

 

NOW,
THEREFORE, in consideration of the foregoing and the agreements set forth
herein, and the mutual reliance hereon, the Parties hereby agree for themselves
and their respective successors and assigns as follows:

 

1.                                      Acknowledgement
of Recitals.  The Parties
are accurately described above, the recitals set forth above are adopted as the
Agreement of the Parties, and the facts and statements set forth therein are
acknowledged and agreed to be true and accurate.

 

2.                                      Amendment to
Agreement.  Pursuant to
this Fifth Amendment to Lump Sum Design-Build Agreement (“Amendment”) the
Parties amend paragraph 6.2 of the Agreement as follows:

 

The
sentence in said paragraph 6.2 of the Agreement which reads:

 

“Design-Builder
must receive a valid Owner’s Notice to Proceed by November 15, 2007;
otherwise, this Agreement may be terminated at Design-Builder’s sole option.”

 

In
its place and stead the following is inserted:

 

“Design-Builder
must receive a valid Owner’s Notice to Proceed by April 15, 2008;
otherwise, this Agreement may be terminated at Design-Builder’s sole option.”

 

3.                                      Continuing
Effect.  Except as expressly modified
by this Amendment, all of the provision of the Agreement and the First, Second,
Third and Fourth Amendments thereto remain 

 

1

 

in
full force and effect; specifically, all other provisions of paragraph 6.2 of
the Agreement, except as specifically amended by paragraph 2 hereof shall stay
in full force and effect.

 

IN
WITNESS WHEREOF, Highwater and Fagen have caused this Amendment to be executed
by their duly authorized representatives.

 

	
  FAGEN,
  INC.

  	
   

  	
  HIGHWATER
  ETHANOL, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Roland “Ron” Fagen

  	
   

  	
  By:

  	
  /s/ Brian Kletscher

  
	
   

  	
  Roland “Ron” Fagen

  	
   

  	
   

  	
  Brian Kletscher

  
	
   

  	
  Its: CEO/President

  	
   

  	
   

  	
  Its: President

  

 

2Exhibit 10.41

 

[Includes material for which confidential treatment has been requested.
Confidential material is deleted and marked with [***] ]

 

SALES CONTRACT

 

THIS
AGREEMENT IS ENTERED INTO by and between ACME
CHEMICAL MARKETING, L.L.C., (hereinafter “seller” or “ACME”) whose
address is 12020 West Hwy. 290, Suite C, Austin, TX 78737 and KMG-BERNUTH, INC., (hereinafter “buyer”) whose address is
10611 Harwin Drive, Suite 402, Houston, Texas 77036.  Seller and buyer collectively are referred to
as the “parties.”

 

This
AGREEMENT is effective on the 1st of January 2008.

 

During
the contract term of this AGREEMENT,
seller agrees to sell to buyer and buyer agrees to purchase from and pay seller
for the products hereinafter specified at the price, and in quantities, subject
to the following terms:

 

1.                                      NATURE
OF GOODS AND SALES TERMS

 

a.                                       Products:

 

[***]
Solvent A and Solvent B.

 

b.                                       Quantity:

 

The
quantity for [***] Solvent A and [***] Solvent B shall be [***].

 

c.                                       Measurement:

 

Weight
scale tickets to be provided by seller.

 

d.                                       Quality:

 

Quality
shall be as per the specifications on Addendum 1.  Each batch of Products shall be sampled by
seller for flash point, density, and penta solvency.  The sampling will be done for seller by a
third party taking a composite of a top, middle and bottom sample from the
tank, and the third party will test for flash point, density and penta
solvency.  Sampling analyses from each
batch shall be provided to buyer.

 

e.                                       Delivery
Terms:

 

[***] Solvent A and Solvent
B - [***].

 

1

 

f.                                         Price:

 

[***]

 

g.                                      Payment
Terms:

 

Net
thirty (30) days from invoice date.  If
any invoice for Products is not paid when due by buyer, then unpaid amount due
under such invoice will be increased by the annual prime interest rate as
published and quoted in the Wall Street Journal, plus two (2) percent (2%)
pro rated for the number of delinquent days. 
Delinquent days is defined as the number of business days from the
invoice due date until the date payment is received.  The prime interest rate to be used will be
that rate charged for loans made to substantial and responsible commercial
borrowers.  In no event shall the
interest rate charged hereunder exceed the maximum rate allowed under
applicable law.

 

2.                                      SELLER’S
TITLE; DELIVERY AND RISK OF LOSS

 

Seller
hereby expressly warrants that it has the right to transfer marketable title
free and clear of any liens or encumbrances to the Products sold and delivered
hereunder, and that the seller has full right and authority to transfer such
title and effect delivery of such Products to the buyer.

 

[***]
Solvent A and B are sold [***].  Title
and risk of loss for [***] Solvent A and B sold by seller shall pass to buyer
at the time the product passes the flange connection between the shore tank
loading hose at the loading terminal and the truck tank trailer and/or rail car
loading flanges.

 

3.                                      PRODUCT
WARRANTY; RESPONSIBILITY, INDEMNIFICATION AND HOLD HARMLESS

 

Seller
warrants that its Products sold hereunder shall conform to the parties agreed
upon specification.  Seller disclaims all
other warranties, express implied including the warranties of merchantability
or fitness of the Products for any particular purpose even if such purpose is
known to the seller.

 

Buyer
is fully responsible to seller for any potential liability pertaining to any
products that the buyer and/or its customers produce through the use of [***]
Solvent A or B.

 

Seller
and its representatives, employees, invitees, and licensees shall not be
responsible for, and shall be indemnified, and held harmless, by buyer from,
and against, any, and all loss, liability, claims, causes of action or lawsuits
based on, or arising out of: (i)  any breach of a representation,
warranty, or covenant of buyer under this agreement, and (ii) any
injuries, including death, to persons or 

 

2

 

damages
to or destruction of any property sustained in connection with or to have
arisen out of or incidental to the performance of this contract by buyer, its
agents, employees, and its customers, their agents, and employees, regardless
of whether such claims or actions are founded in whole or part upon the alleged
negligence of seller, its representatives, or employees, agents, invitees, or
licensees thereof.  The buyer’s
obligation to seller to indemnify and hold harmless includes the buyer’s
express obligation to defend the seller from any actions defined above.

 

4.                                      SPECIAL
CONDITIONS

 

a.                                       Seller and
buyer agree to abide by all federal, state, and local laws and regulations
regarding this product sale.

 

b.                                      Seller and
buyer agree to the express terms of the “Confidentiality/Non-Disclosure” and “Non-Circumvention”
provisions provided by this Agreement.

 

c.                                       Seller shall
provide buyer with Material Safety Data Sheets (“MSDS”) for the Products to be
sold hereunder.

 

d.                                      KMG will
exclusively schedule the loading of the Products through the seller.

 

5.                                      CONFIDENTIALITY
AND NON-DISCLOSURE

 

The
Confidential Information of a party is information, which is confidential and
proprietary to such party, including, but not limited to, confidential and
proprietary Product information, blending, formulation and feed stream data,
information respecting customers or suppliers, analytical test methods,
specifications, or other information required to complete the production and/or
the evaluation of the Products. 
Confidential Information is, and shall be, entitled to protection
hereunder, whether or not such information is oral or written.

 

The parties expressly agree that:

 

a.               Confidential
Information is and shall remain the sole property of the owner thereof.  The parties hereto acknowledge that seller
and buyer consider the Confidential Information:

 

i.                 To be
proprietary, confidential, and valuable;

 

ii.             To
consist of trade secrets entitled to the fullest protection available by law;
and

 

3

 

iii.         To have taken the parties and
their strategic professionals, employees and its agents a substantial amount of
time and money to research, assemble, and formulate.

 

b.               The
parties agree to keep the terms and conditions of this Agreement
confidential.  This provision of this
section 5 shall remain in full force and effect after the expiration or
termination of this Agreement for a period of five (5) years.

 

c.               After
the execution of this Agreement, if the Agreement is modified, cancelled, or
terminated, each parties agrees to return or destroy all Confidential
Information received from the other party.

 

d.               If, in
the opinion of counsel for a party, any of the other party’s  Confidential Information is required to be
disclosed pursuant to law, regulation, or court order, the other party shall be
given prompt, written notice (at least ten (10) business days notice) in
order to allow it to take whatever action it deems necessary to protect its
Confidential Information.  In the event
that no protective order or other remedy is obtained, or a party waives
compliance with the terms of this Agreement, the disclosing party will furnish
only that portion of the Confidential Information which it is advised by
counsel is legally required.

 

6.                                      NON-CIRCUMVENTION

 

Each party hereby agrees that it will not, and that its affiliates,
shareholders, principals, employees, and/or other representatives, will not
circumvent the other party directly or indirectly, nor interfere with, or
otherwise change the commercial arrangement that the parties have with their
respective principals, customers and suppliers whom each party has found,
presented, or introduced to the other for the purpose of consummating this
commercial transaction.  Furthermore, the
parties shall not circumvent each other on any such commercial arrangements
with each other’s principals, customers, or suppliers, with any add-ons,
third-party assigns, renewals, re-negotiations, extensions, overages, parallel
contracts or any other arrangements. Any changes or alterations to the
commercial arrangements noted above must be approved and expressly agreed to in
writing by both parties.

 

Buyer expressly agrees not to contact seller’s customers/suppliers
directly or indirectly to discuss this Agreement, pricing, and other terms of
the Agreement.

 

Buyer will not purchase seller’s feed streams and/or products produced
from seller’s feed streams directly (from seller’s suppliers) or indirectly
(through 

 

4

 

other processors, formulators, brokers, traders, third parties, etc.)
from seller’s suppliers.  The use of the
words “feed stream” in this Agreement is defined as, and includes, any raw
materials purchased by seller from the following list of suppliers/generators:

 

[***]

 

Seller
expressly agrees that, except with the written consent of buyer, it will not: (i) contact
buyer’s customers/suppliers directly or indirectly to discuss this Agreement or
the Products, or (ii) sell the Products or P9 oil to buyer’s
customers.  This Agreement does not
prohibit seller from selling diesel, diesel replacement or fuel oil material to
buyer’s customers.

 

The
provisions of this section 6 in favor of seller pertain only to the Products
that seller is selling to buyer under this Agreement and the feed streams
pertaining thereto.

 

The provisions of this section 6 shall remain in full force and effect
after the expiration or termination of this Agreement for a period of five (5) years.

 

However,
if Seller terminates this Agreement by its own accord, or if Seller refuses to
renew this Agreement by its own accord upon the expiration of the Term(s), and
Buyer is not in default under this Agreement (including, but not limited to, a
default under section 6 (non-circumvention) of the Agreement), then the
provisions of this section 6 shall be of no further force and effect after such
termination.

 

7.                                      REMEDIES

 

Any breach or violation of the provisions in this Agreement will result
in the breaching party being liable to the other party for all actual, special,
consequential, and/or punitive damages, including but not limited to, all
attorneys’ fees, interest, loss of profits, and loss of business reputation.

 

The
rights and remedies provided by this Agreement are cumulative, and the exercise
of any right or remedy by either party hereto, or by its successors or assigns,
whether pursuant to this Agreement, any other agreement or law, shall not preclude
or waive its rights to exercise any or all other rights and remedies.

 

8.                                      TERM

 

The
seller will supply [***] Solvent A and Solvent B to the buyer for an initial
period of two (2) years from the effective date of this contract.  Thereafter, this Agreement will automatically
renew for successive one (1) year periods (each a “renewal term”) unless
either party delivers to the other party a written notice of 

 

5

 

non-renewal
at least ninety (90) days prior to the expiration of the then current term or
renewal term.  The term and automatic
renewal noted above only applies to [***] Solvent A and Solvent B.

 

Termination
or expiration of this Agreement shall not affect any rights or obligations,
which have accrued prior thereto.

 

9.                                      FORCE
MAJEURE

 

Each
party shall be excused from performance of its obligations hereunder in the
event and to the extent that such performance is delayed or prevented by any
cause beyond its reasonable control, including, without limitation, Acts of
God, floods, fire, explosion, war (declared or undeclared), insurrection, labor
strikes or other differences with employees, accidents to wells, pipelines,
storage facilities, refinery facilities, machinery and other facilities,
unforeseen shutdown or failures of the refinery units, disruption or breakdown
of transportation facilities, equipment, labor or materials, acts or orders of
governmental authorities, compliance (voluntary or involuntary) with applicable
laws, or restrictions, conditions or requirements of applicable laws or
governmental authorities.

 

In
addition, seller’s performance of its obligations in this agreement is excused
when:

 

(a) 
there is a contingency beyond the reasonable control of seller or its suppliers
(for example, war or hostilities, Acts of God, accident, fire, explosion,
public protest, breakage of equipment, governmental actions or legislation, or
labor difficulties) which interferes with seller’s or its suppliers’
production, supply, or transportation of feed streams, raw materials, or
product, or,

 

(b) 
seller is not able to obtain feed streams, raw materials, or energy on terms
seller deems commercially acceptable. During times when performance is excused,
all quantities of affected product will be eliminated from this contract
without liability and seller will allocate its supplies of feed streams and/or
raw materials and product among their various uses in any manner it deems fair
and reasonable.  However, seller will not
be obligated to obtain feed streams, raw materials, or product from other
sources if there are shortfalls.

 

In
the event that either party must invoke the provisions of this section 9, such
parties shall give prompt notice of the underlying circumstances delaying or
preventing performance, and give notice of the termination or such
circumstances.  If the cause of the force
majeure condition relates to seller’s third party processing facility, seller
shall discuss such force majeure condition with buyer, and seller shall take
reasonable action to overcome the condition, which may include shifting
processing to another facility.  If the
period during which performance is delayed or prevented as provided in this
section 9 continues for more than one hundred twenty (120) days, either party
may terminate this Agreement by giving 

 

6

 

notice
to the other party.  However, the
confidentiality and non-disclosure provision of this Agreement (section 5) and
the non-circumvention provision of this Agreement (section 6) remain in full
force and effect after the expiration or termination of this Agreement for a
period of five (5) years.

 

10.                               GOVERNING
LAW

 

This
contract and all matters arising under or related to it shall be governed the
laws of the state of Texas.  Furthermore,
any dispute, controversy, or claim arising or relating to this Agreement shall
be brought exclusively in the appropriate court in Harris County, Texas.  Each party irrevocably submits to appear
before the appropriate court in Harris County, Texas.

 

11.                               ASSIGNMENT
AND DELEGATION OF RIGHTS AND DUTIES

 

The
rights and duties of either party under this Agreement may not be assigned or
delegated without written consent of the other party, except to any parent or
subsidiary company, an affiliate of such party, or to any company under common
control with either party.  Any
assignment in violation of this section shall be void.  Subject to such restriction, this Agreement
shall be binding upon and inure to the benefit of the successors and assigns of
the parties hereto.

 

12.                               WAIVER

 

The
failure of a party hereunder to assert a right or enforce an obligation of the
other party shall not be deemed a waiver of such right or obligation.  No waiver of any default under this Agreement
shall operate as a waiver of any further default whether of like or different
character.

 

13.                               NOTICES

 

Any
and all notices to be given hereunder shall be properly given in writing and
either hand delivered or sent by certified mail, return receipt requested, to a
party at its address set forth herein or such address as a party may hereafter
specify by written notice to the other.

 

14.                               SEVERABILITY

 

If
any clause or section of this Agreement shall be determined to be unenforceable
or unlawful, the remaining items shall remain in force.

 

15.                               MERGER
CLAUSE

 

This
Agreement constitutes the entire understanding of the parties with respect to
the matters herein contained and supersedes any and all prior written or oral 

 

7

 

agreements
or undertakings regarding such matters. 
This Agreement may be modified ONLY by written agreement signed by the
parties.

 

IN
WITNESS WHEREOF, the parties hereto have caused the foregoing
Agreement to be executed as of the date set forth above.

 

	
  SELLER:

  	
  BUYER:

  
	
  ACME
  CHEMICAL MARKETING L.L.C.

  	
  KMG-BERNUTH,
  INC.

  
	
   

  	
   

  
	
  By:
  Bruce Yanta, Director/CEO

  	
  By:
  Neal Butler, President / CEO

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Bruce Yanta

  	
   

  	
  By:

  	
  /s/
  Neal Butler

  	
   

  
	
   

  	
   

  
	
  Date:

  	
  2/14/08

  	
   

  	
  Date:

  	
  2/14/08

  	
   

  
								

 

8

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