Document:

EX-10.7

Exhibit 10.7

RES Renewable Environmental Solutions, LLC

Sales Contract

	 	 	 
	Seller:

	 	Renewable Environmental Solutions,
LLC Contract No. 1
	 

	 	530 North Main Street
	 

	 	Carthage, Missouri 64836                            Contract Date 3/17/08
	 
	 	 
	Customer:

	 	Schreiber Foods, Inc.
	 

	 	425 Pine Street
	 

	 	Green Bay, WI 54301
	 
	 	 
	Commodity:

	 	Renewable Diesel Fuel Oil
	 
	 	 
	Quantity:

	 	Approximately 1,000,000 gallons/year
	 
	 	 
	Term:

	 	1095 days from Contract Date
	 
	 	 
	Contract Price:

	 	Customer agrees to utilize Renewable Diesel Fuel Oil in exchange for a cost savings from
that which it would be paying for natural gas. Seller agrees to sell, and Customer agrees to
purchase, Renewable Diesel Fuel Oil according to the following schedule:
	 
	 	 
	 

	 	Commencing with first delivery: $1/MMBtu below the price that Customer would
then be able to purchase natural gas physically delivered to the Facility by the local
natural gas provider (the “Physically Delivered Price”). The delivery point for determining
the Physically Delivered Price shall be defined as Customer’s natural gas meter at the
Facility servicing the boiler(s). Customer reserves the right to use any purchasing
mechanism or combinations thereof in determining the Physically Delivered Price. For the
purpose of this provision, Renewable Diesel shall be deemed to have 124,000 Btu’s per
gallon.
	 
	 	 
	 

	 	From
3/17/2008 to 3/16/2010: $1/MMBtu below the Physically Delivered Price
	 
	 	 
	 

	 	From
3/l7/2010 to 3/l6/2011: $0.50/MMBtu below the Physically Delivered Price
	 
	 	 
	 

	 	Each delivered load of Renewable Diesel Fuel Oil shall be invoiced at the contract price
calculated as set forth above based upon Customer’s invoice price for natural gas for the
prior month. Each month, all purchases for the prior month will be adjusted to “true-up” for
the actual natural gas cost for the prior month, with any adjustment to be included on the
current month’s invoice. The adjustment for deliveries made in the final month of the term
of this Agreement, or for any month in which earlier termination occurs, shall be made in
the immediately succeeding month with payment or credit to be paid by the respective party
within ten (10) days following such final adjustment.
	 
	 	 
	Payment Terms:

	 	Net 30 days for all Delivery Invoices.
	 
	 	 
	Delivery Terms:

	 	Delivered to Customer’s
Facility located at 10 Dairy Street, Monett, MO, 65708 (the
“Facility”) in accordance with delivery schedule to be provided by Customer. Seller shall
retain title of the Renewable Diesel Fuel Oil until such time as it delivers the Renewable
Diesel Fuel Oil to the storage tanks at the Facility, at which title and responsibility for
the Renewable Diesel Fuel Oil shall transfer to Customer.

	 	 	 	 	 	 	 
	Seller’s Representative

	 	     /s/ Don Saunders	 	Date
	 	      3/17/08
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Customer’s Representative

	 	     /s/ Ron Dunford	 	Date
	 	      3/17/08
	 

	 	 	 	 	 	 

 

 

RES Renewable Environmental Solutions, LLC

Sales Contract Terms and Conditions

Contract No. 1               
          
                 

1. Representations and Warranties:

	 	A.	 	Seller further represents and warrants that Renewable Diesel Fuel Oil supplied under
this contract shall have the following specifications:

	 	 	 
	Minimum BTU/Gallon
	 	124,000
	Maximum Wt. Percent Sulfur
	 	0.3

	 	C.	 	Seller and Customer both warrant that they have obtained any and all licenses, permits,
and authority necessary or required to perform their obligations under this Sales Contract and that they
have paid all fees and charges with reference thereto, and that they will take such
steps and perform such acts as may be necessary in the future to ensure such
licenses, permits, and authority remain in full effect throughout the Term; that
they are in good standing with all governmental bodies or agencies, whether of
state, federal or local governments; that they will take such steps and perform
such acts as may be necessary to retain such good standing; that they are free and
have full right and authority to enter into this Sales Contract and to perform all
of their obligations hereunder, and that they have performed all acts and taken all
steps necessary to authorize the execution of this Sales Contract.

2. Termination.

	 	A.	 	By Customer. At any time that it is determined that Renewable Diesel Fuel Oil
causes excessive or inordinate wear and tear on Customer’s boiler(s), fuel storage system(s) or Facility, or if
local, state and/or federal rules
and regulations preclude use of Renewable Diesel Fuel Oil at any time, then
Customer shall be permitted to
terminate its usage of the Renewable Diesel Fuel Oil immediately. In addition to
the foregoing, Customer may
immediately terminate this Sales Contract if excessive emissions are emitted from
the Facility as a result of
Customer’s use of Renewable Diesel Fuel Oil, or such usage poses a challenge to the
Facility’s ability to
comply with its operating permit and/or any and all federal, state and local air
rules, regulations, ordinances,
directives and/or orders.
	 
	 	B.	 	By Either Customer or Seller. Either party may immediately terminate this
Sales Contract at any time, without
further obligation to the other, if it determines that its continuation with the
terms of this Sales Contract is not
feasible, or upon an act of Default by the other. Except as otherwise specifically
provided herein, termination
of this Sales Contract shall not relieve either Customer or Seller of any
obligation accruing hereunder prior to
such termination. In the event of termination by Customer only, the provisions of
Paragraph A set forth above
with respect to the RES Expenses shall apply. In the event of termination by RES,
no reimbursement of the
RES Expenses shall be owed by Customer. The term “Default” shall mean any of the
following:

	 	i.	 	Failure to comply with or to perform any provision or condition of this Sales
Contract for five (5) business days after written notice to cure thereof; or
	 
	 	ii.	 	Insolvency, inability to pay debts as they mature, or being the subject of a
petition in bankruptcy, whether voluntary or involuntary, or of any other proceeding under
bankruptcy, insolvency or similar laws; or making an assignment for the
benefit of creditors; or being named in, or having property subject to,
a suit for appointment of a receiver, or dissolution or liquidation; or
	 
	 	iii.	 	Any warranty made in this Sales Contract is breached, false, or misleading in
any material respect.

	 	 	 	In the event of an act of Default, the non-defaulting party shall be entitled to
pursue any remedy provided in law or equity, including injunctive relief and the
right to recover any damages it may have suffered by reason of such Default.

3. Green Premiums or Credits.

It is believed that there are Green Premiums or Credits (“Premiums or Credits”) available
for renewable diesel fuel oil. Customer agrees to and shall work with Seller to monetize,
if in fact Customer decides to trade and or sell such credits for monetary value, any
Premiums or credits and agrees to and shall remit to Seller within thirty (30) days of
receipt the sum equal to fifty (50) percent of all Premiums or Credits received. The
foregoing carbon credit sharing only applies to the Renewable Diesel Fuel Oil consumed
during the Term and not from other carbon-reducing activities Customer may initiate at the
Facility.

4. Marketing Materials.

Seller hereby agrees to and shall obtain the consent and necessary approval from Customer
before it utilizes Customer’s name and/or logo on any marketing or advertising materials,
including any materials or documentation that refers to

 

 

RES Renewable Environmental Solutions, LLC

Customer’s utilization of the Renewable Diesel Fuel Oil. Customer shall also approve the
final design and use of its name and/or logo on any marketing or advertising materials.

5. Confidentiality

	 	A.	 	During the performance of this Sales Contract, Seller and Customer may disclose to one
another certain confidential, proprietary and trade secret information consisting of, without
limitation (i) specifications, costs and pricing, processes, formulae, operating
procedures, procurement policies, manuals and guides, marketing, strategic and
budget plans, and financial statements and reports, (ii) such other materials, data
and information considered and identified to be proprietary and confidential, and
(iii) all of the information set forth in, or communicated in connection with, this
Sales Contract (collectively, “Confidential Information”). Both parties acknowledge
that the party providing such information (the “Disclosing Party”) is the exclusive
owner of the Confidential Information. The party receiving Confidential Information
from the Disclosing Party (the “Receiving Party”) shall not without prior written
consent of the Disclosing Party, (a) use Disclosing Party’s Confidential
Information for any purpose other than in connection with the performance of its
obligations under this Sales Contract, or (b) disclose any portion of the
Disclosing Party’s Confidential Information to third parties. Upon expiration or
termination of this Sales Contract for any reason, the Receiving Party shall
promptly return to the Disclosing Party, or destroy, all Confidential Information
of Disclosing Party that is its possession or under its control, whether in written
or tangible form, or stored in electronic media or digital format, regardless of
the party causing the same to be in such form. If such Confidential Information is
destroyed by the Receiving Party, then the Receiving Party shall certify the
destruction of the same to the Disclosing Party. The Receiving Party shall
disseminate the Disclosing Party’s Confidential Information to its employees only
on a “need-to-know” basis and shall cause its employees to comply with this
Section, with the Receiving Party remaining responsible for the actions and
disclosures of its employees. Both parties agree that any breach of this Section by
it or its employees shall cause irreparable injury to the other Party, that the
other Party shall be entitled to specific performance and injunctive or other
equitable relief as a remedy for any such breach. The offending party agrees to
waive any requirement for the securing or posting of any bond in connection with
such remedy.
	 
	 	B.	 	Notwithstanding the foregoing, the parties’ obligations pursuant to this Section shall
not apply to (i) information that, at the time of disclosure is, or after disclosure becomes part of, the public
domain other than as a consequence of a party’s breach, (ii) information that was
known to the Receiving Party prior to the disclosure by the Disclosing Party, (iii)
information disclosed by a third party to Receiving Party after the disclosure by
Disclosing Party, if such third party’s disclosure neither violates any obligation
of the third party to the Disclosing Party nor is a consequence of Receiving
Party’s breach, (iv) information that Disclosing Party authorizes in writing for
release, or (v) information that is independently developed by Receiving Party
without reference to or reliance on Disclosing Party’s Confidential Information.

6. Indemnification.

Seller and Customer both hereby agree to defend, indemnify and hold harmless each other
from and against any claim, damage, loss, liability, cost, lawsuit and expense (including
reasonable attorneys’ fees) (collectively referred to as “Claims”), to the extent such
Claims are caused by the (1) fault or negligence of the indemnifying party, in connection
with this Sales Contract (2) breach of this Sales Contract by the indemnifying party. The
Claims covered by this indemnification provision shall include, without limitation, claims
alleging negligence, product liability, and patent, copyright, trademark, trade dress,
trade secret or other intellectual property infringement and/or misappropriation. The
indemnified party shall, as soon as reasonably practicable after receipt of notice of a
Claim against the indemnified party, notify the indemnifying party thereof. The
indemnifying party shall not, at any time, settle a claim or admit or agree to the
liability of either Party without the indemnified party’s prior written consent, which
consent shall not be unreasonably withheld.

7. Insurance.

Seller shall maintain, throughout the term of this Sales Contract, at its expense, (1)
commercial/comprehensive general liability insurance (including product liability
insurance) from a carrier satisfactory to Customer, in a minimum amount of two million
dollars ($2,000,000) combined single limit, for bodily injury and property damage, and (2)
excess liability/umbrella insurance in a minimum amount of ten million dollars
($10,000,000) each occurrence and in the aggregate. The foregoing policies shall designate
Customer and its affiliates as additional insureds therein, and shall be endorsed to
provide contractual liability insurance in the amounts specified above, specifically
covering Seller’s obligations to defend and indemnify Customer pursuant to this Sales
Contract. A certificate of insurance for such coverage shall be delivered to Customer within
twenty (20) days of the execution of this Sales Contract. The certificate shall specify that
Customer shall be given at least thirty (30) days prior written notice by the insurer in
the event of any material modification, cancellation or termination of coverage. Approval
of any of Seller’s insurance policies by Customer shall not relieve Seller of any
obligations contained herein, even for claims in excess of Seller’s policy limits.
Notwithstanding the foregoing, in no event shall Seller be liable for punitive damages or
consequential damages exceeding Seller’s policy limits. If at any time Seller does not
provide Customer with evidence of the insurance coverage described above within fifteen
(15) days after Customer so requests, Customer shall have the right to (i) immediately
terminate this Sales Contract and cancel all outstanding orders for Renewable Diesel Fuel
Oil (in which case any payment obligations owing by Customer for the RES Expenses shall be
rescinded), and/or (ii) withhold any payments to Seller that may be outstanding until
evidence of acceptable coverage is provided.

8. Force Majeure.

 

 

RES Renewable Environmental Solutions, LLC

Neither party shall be liable to the other party for any loss, delay or failure to perform
resulting directly or indirectly from acts of God, war or terrorism, governmental acts or
omissions, disease, illness, outbreak or plague,  supply shortage, fires, floods, riots,
strikes or other circumstances beyond either party’s reasonable control. In the event of a
force majeure occurrence, the disabled party shall make all reasonable efforts to remove
such disability within 30 days of giving notice of such disability. During such period, the
non-disabled party may seek to have its needs, which would otherwise be met hereunder, met
by others without liability to the disabled party hereunder. If the disability continues
for more than 10 days after the cessation of the reason for such disability, the
non-disabled party shall have the right to terminate this Sales Contract.

9. Choice of Law; Venue.

This Sales Contract, including any dispute or claim hereunder, shall be governed and
construed in accordance with the laws of the state of Missouri without reference to the
choice of law provisions of any state. Further, the parties agree that any and all actions
or proceedings arising from or relating to the Sales Contract shall be brought in the
Circuit Court for the County of Lawrence, Missouri, or the United States District Court for
the Western District of Missouri, and hereby consent to personal jurisdiction of such
courts for any such action or proceeding.

10. Entire Agreement.

This Sales Contract constitutes the entire agreement and understanding between the
Seller and Customer regarding the subject matter hereof, and supersedes and merges all
prior discussions and agreements between them relating thereto.

11. Survival.

The parties’ obligations under this Sales Contract which, by their nature, would continue
beyond the termination, cancellation or expiration of this Sales Contract including,
without limitation, the obligations set forth in Sections 5 and 6, shall survive the
termination, cancellation or expiration of this Agreement.

12. Access to the Facility.

Various representatives of Seller will need access to the Facility for the purposes of
inspecting, monitoring and sampling the usage and burning of Renewable Diesel Fuel Oil at
the Facility. Customer agrees to provide access to representatives of Seller for the
foregoing activities so long as those individuals have been approved by Customer, have gone
through Customer’s Contractor Briefing Program, and have signed the confidentiality
agreement required of all contractors who perform work and services at any Customer
location.

15. Notices.

Any written notices required in this Sales Contract may be made by facsimile, personal
delivery, overnight or other delivery service, or first class mail. Notices by fax will be
effective when transmission is complete and confirmed; notices by personal delivery will be
effective upon delivery; notices by overnight or other delivery services will be effective
when delivery is confirmed; and notices by mail will be effective four business days after
mailing. The notice addresses for Seller and Customer are set forth on the first page of
this Sales Contract and shall be subject to change upon written notice thereof.EX-10.8

Exhibit 10.8

BY-PRODUCTS SUPPLY AGREEMENT

     THIS AGREEMENT (the “Agreement”), dated as of February 14 , 2008, is by and between
RENEWABLE ENVIRONMENTAL SOLUTIONS, LLC, a Delaware limited liability company (“RES”), and
BUTTERBALL, LLC, a North Carolina limited liability company (“Seller” or “Butterball”)

RECITALS:

	 	(a)	 	RES desires to acquire certain by-products from Seller’s facility in Carthage,
Missouri (the “Facility”).
	 
	 	(b)	 	Seller desires to furnish RES with such by-products from the Facility in
accordance with the terms and conditions set forth below.

     NOW, THEREFORE, in consideration of the foregoing recitals which are incorporated with and
are made a part of this Agreement, and in further consideration of the mutual covenants and
agreements hereinafter contained, the parties hereto agree as follows:

AGREEMENT:

     1. Purchase and Sale of By-Products. Seller shall furnish RES with the By-Products
(defined below) and RES shall purchase and pay for the By-Products in accordance with the
terms and conditions of this Agreement. “By-Products” means the following by-products generated by
the Facility: birds dead on arrival at the facility (“DOAs”); whole birds and parts that have
been condemned by the U.S.D.A. inspector at the Facility (“Condemned Poultry”); feathers; blood;
heads; feet; entrails and lungs; inedible necks, hearts, livers and gizzards; skin, bones;
drum and tail offal; and comminuted residue.

     2. Pricing of By-Products.

	 	2.1	 	Base Price. The price per pound for feathers and blood in a given week
will be an amount per pound as set forth on the price matrix attached hereto as
Exhibit A, adjusted pursuant to Section 2.3 and 2.4 below. The price per pound
for all By-Products other than feathers and blood in a given week will be an amount per
pound as set forth on the price matrix attached hereto as Exhibit B, adjusted
pursuant to Section 2.3 and 2.4 below. The applicable reference point on the
price matrices are determined as follows: g All prices are F.O.B. the Facility.

 

 

	 	2.2	 	Weight. For purposes of pricing, the weight for each of the
following By-Products shall be determined as follows:

	 	 	 
	By-Product	 	Weight Method
	 	 	 
	Feathers and Blood
	 	g% of Live Weight
	 	 	 
	Entrails, Heads, Feet and Lungs
	 	g% of Live Weight
	 	 	 
	Hearts
	 	g% of Live Weight
	 	 	 
	Livers
	 	g% of Live Weight
	 	 	 
	Gizzards
	 	g% of Live Weight
	 	 	 
	Necks
	 	g% of Live Weight

	 	 	 	The weight for purposes of pricing of all other By-Products will be the actual
weight of such By-Products processed at the Facility during a given week using the
scale at the Facility. The term “Live Weight” shall mean the actual weight of all
poultry processed at the Facility during a given week using the scale at the
Facility, less the weight of DOAs and Condemned Poultry processed during that
week.
	 
	 	2.3	 	Invoice Discount. The Seller shall calculate the price for By-Products
each week in accordance with Sections 2.1 and 2.2 above and shall then apply a discount of g
percent g to the gross purchase price for the week, prior to applying the
adjustment set forth in Section 2.4 below or any other credits or adjustments.
	 
	 	2.4	 	Energy Cost Adjustment. The base price for natural gas is $g per Mcf
(thousand cubic feet) (the “NG Base Cost”). At the beginning of each of the Seller’s
fiscal months, Seller will calculate the actual average cost of natural gas
delivered
to the burner tip at the Facility during the previous fiscal month. If such actual
cost
is more than the NG Base Cost, the price per pound of By-Products for the then-current fiscal month will be reduced by $g for each full incremental increase
of $g per Mcf over the NG Base Cost. If such actual cost is less than the NG
Base
Cost, then the price per pound of the By-Products during the then-current fiscal
month will be increased by $g for each full incremental decrease of $g
 per Mcf below the NG Base Cost.

     3. Quantity. Seller shall deliver an amount of By-Products to RES equal to (a) one
hundred percent (100%) of the By-Products that are produced by the Facility less (b) up to
forty (40) tons of inedible By-Products per week comprised of one load of Bones and one load of
other inedible By-Products, not to exceed twenty (20) tons each, which will be sold by Butterball to
pet food producers.

     4. Delivery; Risk of Loss. All By-Products shall be delivered F.O.B. the Facility.
Risk of loss and title shall pass from Seller to RES upon the By-Products being loaded onto RES’s
trucks at the Facility. Seller’s employees shall load such By-Products onto such trucks. RES agrees
to

2

 

remove all By-Products from the Facility. In the event RES’s Carthage, Missouri facility (the “RES
Plant”) is inoperable for extended periods of time during the term of this Agreement or RES
becomes insolvent, RES agrees to continue to remove all By-Products from the Facility for the term
of the Agreement or until such time that Seller procures an alternative acceptable buyer for
By-Products. In the event that the RES Plant is inoperable for extended periods of time Seller
agrees to work in good faith with RES to identify alternative sources for disposition of
By-Products.

     5. Seller Operation. At all times during Seller’s operation of the Facility, Seller
agrees to use its best efforts to keep metal, wood, trash and other foreign matter from being
loaded on the trailers and to minimize the amount of water placed in the trailers. In conjunction
with the effort to minimize such trash and other foreign matter, Seller shall include foreign
matter training materials in its orientation of new Facility employees and shall continue to
provide such training at least semi-annually. If RES determines by visual inspection, in its
reasonable judgment, that significant quantities of foreign matter are present in any load, it
shall promptly notify Seller and provide Seller with a reasonable opportunity to consult with RES
with respect to the handling of that load. Additionally, should the RES Plant become inoperable as
a result of any trash or foreign material included with By-Products delivered from Seller, Seller
agrees to share equally the cost of landfill or other alternative disposition of By-Products. RES
agrees to promptly notify Seller in the event of any such inoperability of the RES Plant and RES
further agrees to maintain reasonable commercial operating standards within the RES Plant designed
to identify and prevent foreign material from entering its processes and to make its best efforts
to resume normal operations as promptly as possible.

     6. Payment
Terms. Invoices for the By-Products shall be sent on a weekly
basis for the By-Products of poultry processed in the Facility for the immediately preceding week, measured from Monday
to Sunday. The terms of payment to Seller shall be net thirty (30) days from the date of the invoice for the
respective shipment.
Payments received after 30
days will bear interest at one-percoent (1%) per month calculated on
a daily basis for actual
days outstanding in excess of 30 days. For example, if Seller
invoices RES for $40,000 on November 1, RES shall make payment by December 1. If payment is not made until
December 10, RES shall owe Seller
$131.51 ($40,000 x 0.12 x
10/365).

     7. Term. The initial term of this Agreement shall commence on May 10, 2008 and
expire on May 9, 2010. Thereafter, this Agreement shall thereafter automatically renew for
successive one year periods unless either party provides written notice of termination to the
other party at least six (6) months prior to the end of the initial or renewal term.
Notwithstanding the foregoing, RES may terminate this Agreement at any time upon twelve months’ prior written
notice to Seller if RES ceases operation of the RES Plant and Seller may terminate this Agreement at
any time upon twelve months’ prior written notice to RES if Seller ceases operation of the
Facility.

     8. Transportation. RES shall pick up By-Products from the Facility on each day that
the Facility is open and operating using RES’s equipment (except for Blood, which will be
loaded on Seller’s trailers, but transported by RES). All transportation for pick-up of the
By-Products will be arranged by RES and billed back to Seller as follows:

3

 

	 	 	 	 	 
	By-Product Type /Loading Method	 	Cost Per Load	 
	 
	 	 	 	 
	Blood (transported using Seller’s trailers)
	 	$g
	 
	 	 	 	 
	By-Products generated in Seller’s Kill Department,
consisting primarily of feathers, heads; feet; entrails,
lungs; and inedible necks, hearts, livers and gizzards.
	 	$g
	 
	 	 	 	 
	By-Products generated in Seller’s Boning Department
consisting primarily of bones and skin, loaded manually
utilizing tote bins.
	 	$g
	 
	 	 	 	 
	By-Products generated in Seller’s Boning Department
consisting primarily of bones and skin, loaded utilizing
Seller’s pump system
	 	$g

RES shall clean all trailers and other hauling equipment between loads in accordance with all
U.S.D.A. requirements. If Seller determines by visual inspection, in it reasonable judgment, that
significant quantities of foreign matter are present in offal hauling equipment between loads, it
shall promptly notify RES and provide RES with a reasonable opportunity to consult with Seller
with respect to the handling of that equipment.

     9. Indemnification. Each party hereby agrees to defend, indemnify and hold harmless
the other party, as well as its shareholders, officers, agents and employees, against any claims,
debts, set-offs, liens, judgments, demands, causes of action, costs, liabilities and/or expenses
(including, without limitation, reasonable attorneys’ fees) that may arise as a result of any
negligent act or omission, or any breach or default, by the indemnifying party in connection with
its performance or nonperformance hereunder. RES further agrees to defend, indemnify and hold
harmless Seller against all costs, claims and liabilities arising from any acts or omissions that
occur in respect to the use or disposal of the By-Products after delivery hereunder.

     10. Insurance. RES agrees during the term hereof to maintain public liability and
other insurance with reputable insurance companies, and shall furnish Seller within one (1) week
after obtaining such insurance or any renewals thereof, with certificates of insurance properly
executed by RES’ insurer evidencing such fact, giving at least one (1) month prior written notice to
Seller in the event of cancellation or material alteration of such coverage. The insurance coverage to
be maintained by RES shall name Seller as an insured and shall include comprehensive general
liability insurance, with blanket contractual liability endorsement against claims for bodily
injury, death and property damage occurring on or about the Facility affording minimum single limit
protection of Five Million Dollars ($5,000,000) with respect to personal injury or death and

4

 

property damage occurring or resulting from one occurrence, and workers’ compensation insurance in
accordance with applicable state requirements.

     11. Force Majeure. Neither party shall be responsible for any resulting loss to the
extent that the performance of any of the terms or provisions of this Agreement is delayed or
prevented by riots, wars, acts of public enemies, national emergency, strikes, labor disputes,
floods, fires, acts of God, severe weather conditions, power outages or disruptions, poultry epidemic
or any resulting quarantine restrictions, or by any other cause not within the control of the party
whose performance is interfered with or which, by the exercise of diligence, such party is unable to
prevent, whether enumerated above or not. The party claiming to be prevented from performing
by any such force majeure condition shall give verbal, followed promptly by facsimile, notice as
provided hereinafter to the other party, immediately after the happening thereof. Such notice
shall describe the impediment and its effect on performance. If notice is not promptly received by
the other party, the non-performing party shall be liable for damages resulting from such other
party’s non-receipt of notice. Notwithstanding anything to the contrary herein, should any force
majeure condition continue for a period of thirty (30 days after notice from the non-performing party,
then the other party may terminate this Agreement upon five (5) days’ prior written notice.
Thereafter, neither party shall have any liability or obligation to the other party by reason of such
termination.

     12. Access to Books and Records. RES shall have access to such books and records of
Seller as may be necessary for verifying weight and energy information in connection with
Section 2.2 and 2.3 above. Such books and records shall be made available during Seller’s normal
business hours upon reasonable prior notice. RES agrees to keep all information received from Seller
strictly confidential.

     13. Default; Termination. Each party shall have the right to immediately terminate
this Agreement (with the exception of the provisions in Section 4 of this Agreement in the
case of the following clause (i), which shall survive such termination): (i) should the other party
become insolvent, or upon the appointment of any receiver or trustee to take possession of the
property of the other party; (ii) upon the breach by the other party of any provision of this Agreement
that remains uncured for a period of thirty (30) days (or fourteen (14) days in respect to
nonpayment by RES) after receiving written notice from the non-defaulting party; provided, however, such
thirty (30) day period shall be extended to the amount of time reasonably necessary to effect such
cure if the defaulting party has commenced to cure such breach within such thirty (30) day period and
is proceeding diligently to complete such cure; or (iii) upon the termination of that certain
Ground Lease Agreement between RES and Seller. Expiration or termination of this Agreement shall not
affect any rights or obligations of either party which have accrued up to the date of
termination or expiration, or which otherwise survive termination in accordance with their respective terms.
Nothing herein shall prevent either party from seeking specific performance or damages for
breach in respect of any right or obligation contained in this Agreement. The rights and remedies set
forth in this Section shall be in addition to any other rights or remedies that may otherwise be
available at law or equity.

     14. Non-Discrimination Seller agrees to comply with the non-discrimination clauses
contained in Executive Order 11246, as amended, relating to equal employment opportunity for
all persons without regard to race, color, religion, sex or national origin, and the implementing
rales and regulations prescribed by the Secretary of Labor (41 CFR Chapter 60), and incorporated
herein.

5

 

     15. Miscellaneous.

	 	15.1	 	Notices. All notices or other communications required or permitted to be given
pursuant to the terms of this Agreement shall be in writing and will be deemed to be duly
given when received if delivered (a) in person or by telefax, or (b) mailed by registered or
certified mail (return receipt requested), overnight courier, or express mail, postage
prepaid, to the following addresses:

	 	 	 
	If to Seller:

	 	Butterball, LLC
	 

	 	1294 North College Street
	 

	 	Huntsville, Arkansas 72740
	 

	 	Attn: Vice President of Operations
	 

	 	Fax: 479-738-2629
	 
	 	 
	With a copy to:

	 	Butterball, LLC
	 

	 	1240 East Diehl Road
	 

	 	Suite 500, 5th Floor
	 

	 	Naperville, 111. 60563
	 

	 	Attn: Chief Operating Officer
	 

	 	Fax:
	 
	 	 
	If to RES:

	 	Renewable Environmental Solutions, LLC
	 

	 	530 North Main Street
	 

	 	Carthage MO. 64836
	 

	 	Attention: General Manager
	 

	 	Fax: 417-358-5392

	 	 	 	or at such other address as the party to whom notice is to be given furnishes in
writing to the other party in the manner set forth above.
	 
	 	15.2	 	Entire Agreement. This Agreement constitutes the entire agreement between the
parties and supersedes any other prior or contemporaneous oral agreements between
the parties that may have existed with respect to the subject matter hereto.
	 
	 	15.3	 	Waivers. The failure of either party to require the performance of any term of this
Agreement or a waiver by either party of any breach under this Agreement, shall not
prevent subsequent enforcement of such term, nor be deemed a waiver of any
subsequent breach.
	 
	 	15.4	 	Effect of Headings. The section headings within this Agreement are for
convenience only and shall not be deemed to affect, in any way, the language of the
provisions to which they refer.
	 
	 	15.5	 	Modifications in Writing. Modifications to this Agreement shall be effective only
if in writing and signed by the party to be charged.
	 
	 	15.6	 	Independent Contractor. The relationship between RES and Seller shall, for
purposes of this Agreement, be deemed that of independent contractors

6

 

	 	15.7	 	Binding Effect. This Agreement shall be binding upon and inure to the benefit
of the parties hereto and their permitted successors and assigns.
	 
	 	15.8	 	Attachments. All attachments referred to in this Agreement are attached hereto and
are incorporated herein by reference as if fully set forth herein.
	 
	 	15.9	 	Construction. The language in all parts of this Agreement shall in all cases be
construed as a whole according to its fair meaning, strictly neither for nor against
any party hereto, and without implying a presumption that the terms thereof shall be
more strictly construed against the person who drafted the document, it being
acknowledged and agreed that representatives of both parties have participated in the
preparation hereof.
	 
	 	15.10	 	Counterparts. This Agreement may be executed in two or more counterparts, each
of which will be deemed an original and all of which together will constitute the
same agreement, whether or not all parties execute each counterpart. Signatures
transmitted by telefax or other electronic means will be deemed to be originals for
all purposes.
	 
	 	15.11	 	Assignment. Neither party may assign its rights or obligations under this
Agreement without prior written consent of the other party which consent shall not
be unreasonably withheld; provided, however, this Agreement shall be assigned to a
purchaser of the Facility, and shall be binding upon such purchaser of the Facility
who shall be deemed to have assumed the liability of Seller thereafter arising
hereunder. Any violation of this provision by either party shall be, at the election of
the other party, an incurable material breach, giving such other party an immediate
right to terminate the Agreement.
	 
	 	15.12	 	Choice of Law. The parties agree that this Agreement will be interpreted according
to the laws of the State of Missouri, excluding its choice of law rules.
	 
	 	15.13	 	Operating Committee. Seller and RES shall form an operating committee to
monitor operations with respect to the matters covered by this Agreement. Seller
shall designate two people from the Facility and RES shall designate two people
from the RES Plant, for such committee. Such committee shall meet at least once
each month with a set meeting schedule determined in advance, to discuss
operations and issues arising under this Agreement. Seller shall deliver to RES at
such meeting a forecast of Seller’s “kill schedule” for the next three (3) months. In
the event there is a change in the amounts shown in such forecast, due to unforeseen
circumstances, Seller shall immediately notify RES of such changes. Additionally,
both Seller and RES shall use their best efforts to notify the other party as promptly
as possible of any operational or schedule changes at their respective facilities.

7

 

IN WITNESS WHEREOF, the parties hereto have signed and executed this Agreement on the date
first above written.

	 	 	 	 	 	 	 	 	 	 	 
	RENEWABLE ENVIRONMENTAL
	 	BUTTERBALL, LLC, a North Carolina
	SOLUTIONS, LLC, a Delaware limited
	 	limited liability company
	liability company	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 
	 	By:
	 	/s/ Joe Nalley
	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Its:

	 	V.P. RES
	 	 
	 	Its:
	 	COO
	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

8

 

EXHIBIT A

Feather Price Matrix

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	g
	 	g	 	g	 	g	 	g	 	g
	g
	 	g	 	g	 	g	 	g	 	g
	g
	 	g	 	g	 	g	 	g	 	g
	g
	 	g	 	g	 	g	 	g	 	g
	g
	 	g	 	g	 	g	 	g	 	g

g

	 	 	 	 	 
	g
	 	g
	g
	 	g
	g
	 	g

 

 

EXHIBIT B

Other By-Products Price Matrix

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	g
	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g
	g
	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g
	g
	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g
	g
	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g

 

 

EXHIBIT B

Other By-Products Price Matrix, cont’d

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	g
	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g
	g
	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g
	g
	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g
	g
	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g	 	g

 

 

EXHIBIT B

Other By-Products Price Matrix, cont’d

In the event the quotes for a given week are not reflected on this price matrix,
the price per pound of the applicable By-Products will be determined in accordance
with the following parameters:

	 	 	 	 	 
	g
	 	$g
	g
	 	$g
	g
	 	$g
	g
	 	$g
	g
	 	$g

 

 

EXHIBIT C

Determination of Soybean Meal Quote

	 	 	 	 	 
	g
	 	g
	g
	 	g
	g
	 	g
	g
	 	g
	g
	 	g

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00148-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00148-of-00352.parquet"}]]