Document:

Operating Agreement of SG Solutions, LLC

 Exhibit 10.16 
 OPERATING AGREEMENT 
 OF 
 SG Solutions, LLC 
 AN INDIANA LIMITED LIABILITY COMPANY 
 January 14, 2005 

 TABLE OF CONTENTS 
  

					
	ARTICLE 1.        NAME OF COMPANY; TERM	  	1
	        1.1.	  	Name	  	1
	        1.2.	  	Term of Company	  	1
	ARTICLE 2.        OFFICES; PURPOSE	  	1
	        2.1.	  	Offices; Records	  	1
	        2.2.	  	Purpose	  	1
	        2.3.	  	Classes of Members; Guaranteed Class B Payments; Voting Rights	  	2
	        2.4.	  	Member Meetings	  	3
	ARTICLE 3.        CERTAIN DEFINED TERMS	  	3
	ARTICLE 4.        CAPITAL OF THE COMPANY; LOANS	  	4
	        4.1.	  	Initial Capital Contributions	  	4
	        4.2.	  	Additional Capital Contributions	  	4
	        4.3.	  	Capital Accounts	  	4
	        4.4.	  	Liability of Members	  	4
	        4.5.	  	Return of Contribution; Interest	  	4
	        4.6.	  	Loans	  	4
	        4.7	  	Admission of New Members	  	5
	ARTICLE 5.        ALLOCATIONS AND DISTRIBUTIONS	  	5
	        5.1.	  	Allocations of Profit and Loss	  	5
	        5.2.	  	Interest and Compensation	  	6
	        5.3.	  	Tax Elections	  	6
	        5.4.	  	Tax Matters Member	  	6
	        5.5.	  	Members Bound	  	6
	        5.6.	  	Distributions of Cash Flow	  	6
	        5.7.	  	Restrictions on Distributions	  	7
	        5.8.	  	Distributions to Class B Members	  	7
	ARTICLE 6.        MANAGEMENT AND OPERATION OF THE BUSINESS	  	7
	        6.1.	  	Management of the Company	  	7
	        6.2.	  	Management Board	  	7
	        6.3.	  	Officers	  	8
	        6.4.	  	Buy Out Rights	  	8
	        6.5.	  	Meetings; Consents	  	9
	        6.7.	  	Indemnification and Exculpation	  	10
	ARTICLE 7.        TRANSFER AND WITHDRAWAL	  	10
	        7.1.	  	Transfer or Withdrawal	  	10
	        7.5.	  	Continuation of the Company	  	10
	ARTICLE 8.        DISSOLUTION AND TERMINATION	  	11
	        8.1.	  	Dissolution of the Company	  	11
	        8.2.	  	Winding Up of the Business	  	11
	        8.3.	  	Date of Termination	  	12
	ARTICLE 9.        BANK ACCOUNT, FISCAL YEAR, BOOKS AND RECORDS	  	13
	        9.1.	  	Bank Account	  	13
	        9.2.	  	Fiscal Year	  	13
	        9.3.	  	Books	  	13

  

 ii 

					
	        9.4.	  	Annual Financial Information	  	13
	ARTICLE 10.        RIGHT OF FIRST REFUSAL	  	13
	ARTICLE 11.        SECOND GASIFIER	  	14
	ARTICLE 12.        GENERAL PROVISIONS	  	15
	    12.1.	  	Entire Agreement; Amendment	  	15
	    12.2.	  	Waiver of Actions	  	15
	    12.3.	  	Attorneys’ Fees	  	15
	    12.4.	  	Notices	  	16
	    12.5.	  	No Third Party Beneficiaries	  	16
	    12.6.	  	Independent Ventures	  	16
	    12.7.	  	Counterparts	  	16
	    12.8.	  	Interpretation and Governing Law	  	16
	    12.9.	  	Binding Effect	  	16
	    12.10.	  	Severability	  	16

  

			
	 ATTACHMENTS:

		
	 SCHEDULE I:
	 	Capital Contributions and Member’s Percentage; Addresses of the Parties
	 SCHEDULE II:
	 	List of Property and Assets Contributed by Wabash Valley Power Association, Inc. and Wabash River Energy, Ltd.
	 SCHEDULE A:
	 	Certain Defined Terms
	 SCHEDULE B:
	 	Appraisal Procedure

  

 iii 

 OPERATING AGREEMENT 
 OF 
 SG SOLUTIONS, LLC 
 THIS OPERATING AGREEMENT (the “Agreement”) is made effective as of the 14th day of January, 2005 by and between Wabash Valley Power
Association, Inc., an Indiana nonprofit corporation (“WVPA”) and Wabash River Energy, Ltd., an Indiana corporation (“WRE”), who constitute all of the Members of the Company. 
 ARTICLE 1. 
 NAME OF COMPANY; TERM

 1.1. Name. The name of the company is SG Solutions, LLC. 
 1.2. Term of Company. The Company was formed at the time of the filing of the initial Articles of Organization of the Company in the office of the
Indiana Secretary of State. The duration of the Company shall be perpetual unless it is dissolved and terminated in accordance with the provisions of Article 8 of this Agreement. 
 ARTICLE 2. 
 OFFICES; PURPOSE; MEMBERS 
 2.1. Offices; Records. 
 (a)
Offices. The principal office of the Company shall be located at 722 North High School Road, Indianapolis, Indiana 46214, or at such other place within or outside the State of Indiana as may be determined by the Management Board. The Company
may also have such other offices within or outside the State of Indiana as may from time to time be determined by the Management Board. The Company shall also maintain such registered offices and registered agents as may be required by law.

 (b) Records. The Management Board shall cause the Company to maintain at its principal office: (i) a current list of the full
name and last known mailing address of each Member and all former Members in alphabetical order; (ii) a copy of the Articles of Organization and all certificates of amendment thereto; (iii) copies of the Company’s federal, state and
local tax returns and reports, if any, for the three (3) most recent years; (iv) copies of this Agreement, any amendments to this Agreement, and any operating agreements no longer in effect; (v) copies of any financial statements of
the Company for the three (3) most recent years; (vi) a current list showing the amount of cash and a description and a statement of the value of other property or services which each Member has contributed and the amount, if any, it has
agreed to contribute but not yet contributed to the Company; and (vii) the books and records of the Company. 
 2.2. Purpose. The
purpose and business of the Company shall be to own and operate a gasification plant located at 444 W. Sandford Avenue, West Terre Haute, Vigo County, Indiana 

 
47885 (the “Facility”). The Company may also undertake any other lawful act or engage in any other business or venture permitted under the Act, and
any other federal or state law which governs the activities of the Company, as may from time to time be recommended by the Management Board and approved by the unanimous consent of the Members. All property originally brought into the Company,
subsequently acquired by purchase or otherwise by the Company, or with Company funds shall be Company property, and no Member shall have any ownership or any other interest in such property, except as otherwise provided in this Agreement.

 2.3. Classes of Members; Guaranteed Class B Payments; Voting Rights. The Company shall have two classes of Members, Class A
and Class B. Profits and losses of the Company shall be allocated as set forth in Article 5.1. Class B Members shall have the right to receive and share among themselves in proportion to their Percentage in the Company, as compared to the
Percentages of all Class B Members, a guaranteed payment payable each month in the amount of $220,000, which sum shall constitute an expense to the Company; provided, however, the guaranteed payment shall only commence accruing when the Facility
starts producing synthetic gas, with the amount of the guaranteed payment subject to a 60% annual availability test. The initial guaranteed monthly payment to the Class B Members shall be made within five days after the first synthetic gas produced
at the Facility by the Company is sent to its user, on a pro-rata basis. Each subsequent payment of the guaranteed monthly payment to the Class B Members shall be made on the fifteenth of the current month in which the guaranteed monthly payment
accrues. If the Facility is not able to achieve a 60% annual availability during a calendar year due to technical problems relating to the Facility, the monthly guaranteed payment shall be reduced to $110,000 per month for the following year.
Additionally, if the Facility fails to operate for a period of more than ninety (90) consecutive days due to problems relating to the Facility, then the monthly guaranteed payment will be terminated until the Facility restarts production. In
addition, the Company’s Management Board may establish a bonus opportunity for the Class B Members based on performance benchmarks, which will include plant functions such as employee safety, satisfaction, turnover, and other matters, including
results vs. production, budget objectives and protection of assets. The Management Board shall have final approval of any bonus payment to the Class B Members. Both Class A and Class B Members shall be entitled to the respective Member’s
Percentage as shown on Schedule I as the same maybe amended, of any Liquidation Proceeds from the liquidation of the Company as set forth in Article 8.2. Each Member shall be entitled to vote only on amendments of this Operating Agreement
which change the interest of a Member in the Company. A Member entitled to vote at a meeting of Members or to express consent or dissent without a meeting shall be entitled to vote in person, or by proxy appointed by an instrument in writing
authorizing other persons to act. A proxy shall be signed by the Member or its authorized agent or representative and shall not be valid after the expiration of three (3) years from its date. Any action required or permitted to be taken at a
meeting of Members may be taken without a meeting, without prior notice and without a vote, if consents in writing, setting forth the action so taken, are signed by Members representing the percentage ownership interest in the Company required to
authorize the action, and are delivered to the Company. Prompt notice of the taking of the action without a meeting by less than unanimous written consent shall be given to Members who have not consented in writing. 

 2.3.1. Guaranteed Monthly Payments Reduced by Payments Toward Working Capital Advanced by
Class A Member to Class B Member, Plus Interest. In the event funds have been advanced to a Class B Member directly, or indirectly by a Class A Member by advancing sums to the Company which then advances a similar amount to the
Class B Member as determined by the Management Board, the Company shall reduce its guaranteed monthly payment made to the Class B Member by essentially equal monthly amounts calculated by amortizing the original principal plus interest over a ten
year period. The annual interest rate shall equal six (6) percent per year. For example, if, at the beginning of this agreement, the balance of funds advanced to the Class B Member is $6,000,000.00, the Company shall reduce the monthly payment
by $66,612.30 for the first 120 months. Any remaining balance of the funds advanced to the Class B Member shall be repaid before any assets are distributed in liquidation of the Company. 
 2.4. Member Meetings. Meetings of the Members shall only be held as and when scheduled by the Management Board and for the purposes set forth in
the notice of the meeting. Meetings may be held at the principal office of the Company or such other reasonable place in or outside the State of Indiana, upon giving proper notice to all the Members, The Secretary shall cause notice of the time,
place of the meeting, and the purposes of each meeting of the Members to be personally delivered, sent via facsimile, mailed, or e-mailed at least three (3) days, but not more than ninety (90) days, prior to the meeting, to each Member of
record entitled to vote at the meeting. Notice shall be deemed given upon deposit in the United States mail or upon sending the e-mail addressed to the address (postal or e-mail as the case may be) of the Member as revealed on the records of the
Company. Notice of a meeting of Members need not be given to any Member who signs a waiver of notice in writing, whether before or after the time of the meeting. The notice shall state the nature of the business to be transacted and the matters, if
any, upon which the Members will be requested to vote; provided, however, that action may be taken on any matter brought before a meeting of the Members regardless of whether such matter is set forth in the notice. Notice of any adjourned meeting of
the Members of the Company need not be given if the time and place to which the meeting is adjourned are announced at the meeting at which the adjournment is taken. Attendance of a Member or its representative at a meeting of Members in person or by
proxy constitutes waiver of objection to lack of notice or defective notice of the meeting, unless the Member at the beginning of the meeting objects to holding the meeting or transacting business at the meeting. A Member may participate in a
meeting of the Members by a conference telephone or by other similar communications equipment through which all persons participating in the meeting may communicate with the other participants. All participants shall be advised of the communications
equipment and the name of the parties in the conference shall be divulged to all participants. 
 ARTICLE 3. 
 CERTAIN DEFINED TERMS 
 Capitalized
terms used in the body of this Agreement but not defined herein shall have the meanings ascribed to them in Schedule A attached hereto and incorporated herein. 

 ARTICLE 4. 
 CAPITAL OF THE COMPANY; LOANS 
 4.1. Initial Capital Contributions. Prior to the execution of
this Agreement, the Members have contributed money and property to the capital of the Company in consideration of and as payment for their interests in the Company. The agreed value of the capital contributed to the Company by each Member is set
forth opposite such Member’s name under the heading “Agreed Value of Capital Contribution” on Schedule I attached hereto. 
 4.2. Additional Capital Contributions. Member Obligations. In the event the Management Board determines that additional loans or Capital Contributions are needed for the proper operation of the
Company’s business, then, unless otherwise agreed by the Members, each Member shall be requested to make additional loans or Capital Contributions in amounts proportionate to the Members’ respective Member’s Percentages within thirty
(30) days after the date of notice from the Company requesting such contribution. To the extent all Members furnish their share of such funds, they shall be treated as Capital Contributions. Any excess furnished by any Member above its
proportionate share may be furnished either as an additional Capital Contribution or as an interest-bearing loan, as provided in Article 4.6 below. 
 4.3. Capital Accounts. The Management Board shall cause the Company to maintain a Capital Account for each Member based upon their Capital Contributions to the Company, adjusted in accordance with the Code and
Regulations, as more specifically set forth in Paragraph 7 of Schedule A hereof. 
 4.4. Liability of Members. No Member
shall be required to make any contribution to the capital of the Company except as set forth in this Article 4, nor shall any Member, in its capacity as such, be bound by or personally liable for any expense, liability or obligation of the
Company except to the extent of its obligation to return distributions made to the Member under certain circumstances as required by the Act. 
 4.5. Return of Contribution; Interest. Except as otherwise expressly provided herein or as otherwise approved by the Management Board, no Member shall have any right to the return or withdrawal of any Capital Contribution, or to
receive any payment for the value of its interest in the Company, until termination of the Company. No Member shall have the right to demand and receive a distribution from the Company in a form other than cash unless such distribution is consented
to by the Management Board. No interest shall be paid on any Capital Contributions. 
 4.6. Loans. If, at any time or from time to
time, additional capital is necessary to pay the debts and obligations or maintain the financial integrity of the Company, or to provide operating funds for the Company, the Management Board may cause the Company to endeavor to borrow the necessary
funds from commercial banks, lending institutions and/or other persons. In the event the Management Board does not arrange third-party financing as herein contemplated, then a Member may, but shall not be obligated to, advance the necessary funds to
the Company upon the approval of the Management Board. All amounts so advanced which are not designated to be Capital Contributions shall be treated as loans to the Company for all purposes, shall be evidenced by promissory notes with such terms as
the Management Board may approve, and 

 
shall bear interest at the rate negotiated by the Management Board and such Member from the date such funds are advanced until the date the loan is repaid in
full. The Members of the Company agree that WVPA may loan the Company sums of money, which loan or loans shall be evidenced by one or more promissory notes issued by the Company to WVPA or its assigns and a mortgage and/or security agreement
executed by the Company in favor of WVPA granting a first priority security interest in and to all of the Company’s assets, whether real, personal or mixed, tangible or intangible, whether now existing or hereafter acquired. Any such mortgage
and/or security agreement may provide that it secures any and all subsequent loans which may be made by WVPA to the Company. WRE hereby consents to the Company paying WVPA interest at a rate equal to the cost of WVPA for funds from time to time plus
two points, and agrees that such interest rate is reasonable. 
 4.7 Admission of New Members. Subject to the restrictions and
limitations set forth in Article 7, additional members may only be admitted to the Company on such terms and conditions as are approved by the unanimous consent of all the Members with such terms and conditions being reduced to writing and
signed by the new member. 
 ARTICLE 5. 
 ALLOCATIONS AND DISTRIBUTIONS 
 5.1. Allocations of Profit and Loss. 
 (a) Adjustments to Capital Accounts. Each Fiscal Year, after adjusting each Member’s Capital Account for all contributions and distributions
with respect to such Fiscal Year, the Company shall allocate all profits and losses and items thereof (other than any profits or losses or items thereof specifically allocated (i) pursuant to the provisions of Treas. Reg. §
1.704-l(b)(2)(ii)(d) (the “qualified income offset”), (ii) to comply with the capital accounting requirements of Treas. Reg. § 1.704-l(b)(2)(iv), or (iii) pursuant to the provisions of Treas. Reg. § 1.704-2) to the
Members’ Capital Accounts in a manner such that, after such allocations have been made, the balance of each Member’s Capital Account (which may be a positive, negative, or zero balance) shall equal (A) the amount that would be
distributed to such Member, determined as if the Company were to liquidate all of its assets for the Section 704(b) Book Value (as defined below) thereof and distribute the proceeds thereof (net of any sales commissions and other similar
transaction fees and payments required to be made to creditors) pursuant to Section 8.2(a) below, minus (B) the sum of (1) such Member’s share of the “partnership minimum gain (as determined under Treas. Reg.
§§ 1.704-2(d) and (g)(3)) and “partner minimum gain” (as determined under Treas. Reg. §§ 1.704-2(i)) and (2) the amount if any, that such Member is obligated (or is deemed to be obligated) to contribute, in its
capacity as a Member, to the capital of the Company as of the last day of such Fiscal Year. The Company will report the guaranteed monthly payments to the Class B Member, under Article 2.3 of this Agreement, as guaranteed payments under
section 707(c); therefore, such payments will not be reported as distributions under section 731 and will thus not reduce the recipient’s capital account. 

 (b) Code Section 704(c). In accordance with Section 704(c) of the Code (and the
principles thereof) and Treas. Reg. § 1.704-3, income, gain, loss and deduction with respect to any property contributed to the capital of the Company, or after Company property has been revalued under Treas. Reg. § 1.704-l(b)(2)(iv)(f),
shall, solely for U.S. federal, state and local tax purposes, be allocated among the Members so as to take into account any variation between the adjusted basis of such Company property to the Company for U.S. federal income tax purposes and its
value as so determined at the time of the contribution or revaluation of Company property. Unless otherwise decided by the Management Board, the Company shall use the “remedial allocation method” of Treas. Reg. § 1.704-3(d) for this
purpose. Allocations pursuant to this Section 5.1(b) are solely for purposes of U.S. federal, state, and local taxes and shall not affect, or in any way be taken into account in computing, any Member’s Capital Account or share of profit,
loss other items, or distributions pursuant to any provision of this Agreement. 
 (c) Certain Definitions. For purposes of this
Article 5 of this Agreement: (A) the term “Section (704b) Book Value” means, with respect to any Company property, the Company’s adjusted based for U.S. federal income tax purposes, adjusted from time to time to reflect the
adjustments required or permitted by Treas. Reg. §§ 1.704-l(b)(2)(iv)(d) through (g), provided that the Section 
 704(b) Book Value of any
asset contributed to the Company shall be equal to the fair market value of such asset on the date of contribution, and (B) the term “Treas. Reg.” means Treasury Regulations issued under the Code. 
 5.2. Interest and Compensation. Any interest paid on loans made by Members to the Company, all guaranteed payments made to Class B Members and all
compensation paid to the Members for goods or services shall be deducted from the gross income of the Company. 
 5.3. Tax Elections.
All elections required or permitted by the Company under the Code shall be made by the Management Board in such manner as will be most advantageous to the Members and the Company. In the event of the distribution of property by the Company within
the meaning of Section 734 of the Code, or the transfer of an interest in the Company within the meaning of Section 743 of the Code, the Management Board may elect to adjust the basis of the Company property pursuant to Sections 734, 743
and 754 of the Code. Any Members affected by such election shall supply the information as may be required to make, or give effect to, such elections by the Company. 
 5.4. Tax Matters Member. Wabash Valley Power Association, Inc., by and through its chief financial officer or such other officer as is designated from time to time by its board of directors, is hereby
specifically authorized to act as the “Tax Matters Partner” under the Code and in any similar matter under state law, with full power and authority to act on behalf of the Company and the Members in such capacity. 
 5.5. Members Bound. The Members are aware of the income tax consequences of the allocations made by this Article 5 and agree to be bound by
the provisions hereof in reporting their shares of Company income and loss for income tax purposes. 

 5.6. Distributions of Cash Flow. 
 (a) Priority of Distributions. Except as provided by Article 5.6(b) below, Cash Flow of the Company during any year of the Company or part
thereof may be distributed to the Class A Members as determined from time to time by the Management Board. 
 (b) Timing of
Distributions. Except as otherwise prohibited by this Agreement or by law, quarterly distributions of Cash Flow shall be made to the Class A Members in an amount, for each taxable year of the Company, which is not less than the federal and
state income taxes payable by the Class A Members on account of the income of the Company which is taxable to them, assuming that all such income will be taxed at the highest marginal rate applicable to the type of income involved. To the
extent practicable, all quarterly tax distributions made pursuant to this Article 5.6(b) shall be made at least fifteen (15) days before quarterly federal income tax estimated payments are due. Any additional Cash Flow may be distributed
to the Class A Members from time to time during each fiscal year as determined by the Management Board. 
 5.7. Restrictions on
Distributions. Notwithstanding anything to the contrary contained herein, no distribution shall be made to the Members if, after giving effect to such distribution, the Company would not be able to pay its debts as they become due in the usual
course of business or if the Company’s total assets would be less than the sum of its total liabilities. 
 5.8. Distributions to
Class B Members. Distributions shall be made to the Class B Members only as provided in Article 2.3 above and Article 8.2 below. 
 ARTICLE 6. 
 MANAGEMENT AND OPERATION OF THE BUSINESS 
 6.1. Management of the Company. The powers of the Company shall be exercised by or under the authority of, and the business and affairs of the
Company shall be managed under the direction of, a Management Board. All decisions of the Management Board within the scope of its authority shall be binding upon the Company and each Member. Authority for management of the day-to-day operations of
the Company shall be vested in a President and such other officers as are appointed in accordance with Article 6.3 hereof. 
 6.2. Management Board. 
 6.2.1 Composition. The Management Board shall consist of five (5) Board
Representatives, three of whom shall be appointed by WVPA and two of whom shall be appointed by WRE. Each such Board Representative so appointed shall serve at the pleasure of the Member that appointed him or her or until his or her successor is
duly elected, appointed or qualified, whichever occurs first. The affirmative vote of a majority of the Board Representatives shall be required to approve any matter coming before the Management Board for decision. The Board Representatives shall be
under no duty to devote their full time to the business of the Company, but shall devote only such time as they may deem necessary to manage the Company’s business and affairs efficiently and in the best interests of the Company. The
Management Board may elect Members to serve as Chairman, Secretary and other officers of the Board. 

 6.2.2 Removal and Replacement. Any Member may remove its Board Representatives and
designate a replacement at any time upon written notice to the Company. The Board Representatives appointed by a Member shall be removed from the Management Board immediately upon the withdrawal of the Member from the Company or the sale or other
transfer of the Member’s interest in the Company. 
 6.2.3 Powers. The Management Board shall have the power and authority
to manage and run the business of the Company. It shall appoint officers to run the Company and shall designate their titles, as set forth in Article 6.3 below, and it may designate their duties as it may determine. The Management Board shall
have the powers usually granted to the Board of Directors of a for-profit corporation. 
 6.3. Officers. 
 (a) President. Management of the day-to-day affairs of the Company shall be vested in a President or Chief Executive Officer (“CEO”)
and/or a Chief Operating Officer (“COO”) as may be appointed or employed by the Management Board. They shall be responsible to the Management Board and may be removed at any time, with or without cause, by the Management Board. The
Management Board shall determine the duties and powers of each of the officers, which may be changed from time to time. Subject to the provisions of the Act and this Agreement, and to the direction of the Management Board, such officer or officers
shall manage and supervise the day-to-day affairs of the Company, shall have general supervision and direction of all other officers, employees and agents of the Company and shall perform all duties and shall perform such other duties as may be
delegated by the Management Board. 
 (b) Other Officers. The Company shall have such other officers or specified agents as may from
time to time be designated by the Management Board. Any such officer or other agent shall have such title and authority, and shall carry out such duties and responsibilities, as may be specified by the Management Board at the time such office is
created, and shall serve at the pleasure of the Management Board. 
 (c) Authority of Officers. The President and any other officers
or individuals specifically designated by the Management Board shall be managers of the Company, within the meaning of the Act, for the purpose of the Company’s business and affairs. The act of any such manager, including the execution in the
name of the Company of an instrument for apparently carrying on in the usual way the business or affairs of the Company, shall bind the Company unless such manager does not have the authority to act for the Company in the particular matter and the
person with whom the manager is dealing has knowledge of the fact that the manager does not have the authority to so act. 
 6.4. Buy Out
Rights. If the Management Board authorizes the Company to take any of the following actions or enter into a binding commitment to take any of the following actions, a dissenting Member may require the Company to purchase its interest as provided
in this Section 6.4 as a condition of taking such action. The actions giving rise to such right are: 
 (i) To
materially change the business of the Company; 

 (ii) To merge or consolidate with any other company or entity; or 
 (iii) To sell all or substantially all the assets of the Company. 
 6.4.1. Procedure for Buying Out Interest of Dissenting Member. If the Management Board shall vote for any of the actions set forth in
Article 6.4, and either Member is dissatisfied with such decision, it may, within thirty (30) days from being notified of such proposed action, notify the Company that it elects to have its interest in the assets in the Company appraised
and bought out by the Company or by the other Member. Such election shall be made within thirty (30) days of the meeting in which the Managing Board decided the action described in Article 6.4 giving rise to that buy out right, if the
dissenting Member’s representatives were at the meeting, or within thirty (30) days of receipt of written notice of the action if such Member’s representatives were not present at the meeting of the Management Board. If either Member
so notifies the Company that it desires to sell, the Company shall have the assets of the Company appraised. The value of the Member’s interest in the Company shall be valued in the manner set forth in Schedule B attached to this
Operating Agreement. Either the Company or the other Members shall have the right to buy the dissenting Member’s interest in the Company upon payment to the dissenting Member of the value of its assets in the Company as set forth in Schedule
B. 
 6.5. Meetings; Consents. 
 (a) Meetings of the Management Board. The Management Board shall hold an annual meeting on such date within the first three (3) months of each fiscal year, at such time and place, as is determined by the
Board. Regular meetings of the Management Board shall also be held, without notice, at such time and place and in accordance with such schedule as may be fixed by the Board. Special meetings of the Management Board to consider any matter may be
called by the President or any Board Representative by giving written notice of the proposed time, date, location and purpose of the meeting to all Board Representatives at least two (2) business days and not more than thirty (30) days
prior to the date of such meeting. Notice of any meeting may be waived in writing by a Board Representative before or after the date arid time stated in the notice of the meeting or by the attendance of such Representative, without objection, at
such meeting. Meetings of the Management Board may be held by telephone or through any other means which permits all those participating in the meeting to communicate with each other. 
 (b) Written Consents. Any consent or approval of a Board Representative required or permitted by this Agreement may be given as follows:

 (i) Without a meeting, without prior notice and without a vote if one (1) or more written consents setting forth the
action taken are signed by that number of the Board Representatives whose consent or approval is required to approve the action, which written consents shall be effective when the last person whose consent is required to approve the action signs
such consent, unless the consent specifies a different prior or subsequent effective date; or 

 (ii) Except to the extent written consent is required under the terms of this Agreement
or the Act, the affirmative vote of the consenting Board Representative to the doing of the act or thing shall constitute consent to the act or thing for which a vote is solicited at any meeting called to consider the doing of such act or thing.

 6.6. Indemnification and Exculpation. No Board Representative, officer or other designated agent of the Company shall be liable or
accountable in damages or otherwise to the Company or any Member for any action taken in good faith or failure to act on behalf of the Company in good faith within the scope of the authority conferred in or pursuant to this Agreement, unless such
act or omission constitutes willful misconduct or recklessness. The Management Board, officers and other designated agents of the Company may consult with such legal or other professional counsel as they may select. Any action taken or omitted by
such person in good faith reliance on, and in accordance with, the opinion or advice of such counsel shall be full protection and justification with respect to the action taken or omitted. The Company shall indemnify and save harmless each Board
Representative, officer and other designated agent of the Company from any loss, damage or expense (including reasonable attorneys’ fees) incurred by reason of any act taken or omitted for and on behalf of the Company within the scope of the
authority conferred in or pursuant to this Agreement, unless such act or omission constitutes willful misconduct or recklessness. 
 ARTICLE 7. 
 TRANSFER AND WITHDRAWAL 
 7.1. Transfer or Withdrawal. Except as provided in this Agreement or with the prior written consent of the Members, no Member shall have the right or power to pledge, mortgage, sell, assign, gift or otherwise
dispose of (whether voluntarily or by operation of law) all or any portion of its interest in, or resign or withdraw from, the Company. Any action in violation of the terms of this Agreement shall be null and void as against the Company and the
other Member(s). It is expressly understood that Wabash Valley Power Association, Inc.’s interest in the Company is and will continue to be subject to a Mortgage and Indenture of Trust, Dated December 31, 1996, as its may be amended and
supplemented from time to time. 
 7.2. Continuation of the Company. The Company shall not be dissolved, and the business of the
Company shall be continued, upon the transfer or liquidation of the interest of a Member. 

 ARTICLE 8. 
 DISSOLUTION AND TERMINATION 
 8.1. Dissolution of the Company. 
 (a) Dissolution Events. The Company shall be dissolved and its business wound up only upon the unanimous written agreement of the Members, or if
the Company then has only one (1) Member, upon the determination of such Member; 
 (b) Articles of Dissolution. Upon the
dissolution of the Company, the Management Board shall cause Articles of Dissolution to be prepared and filed with the Indiana Secretary of State as soon as is reasonably feasible. 
 8.2. Winding Up of the Business. 
 (a)
Distributions Upon Dissolution. Upon the dissolution of the Company, no further business shall be conducted by the Company except as necessary to wind up the affairs of the Company and to distribute its assets. If WVPA is a Member at the time
of dissolution, the WVPA, or its successor or permitted assign (the “Liquidator”), shall act as liquidator and shall, except as set forth in this Article 8, liquidate the assets of the Company and make final distributions as
provided herein. If WVPA is not a Member at the time of dissolution, then the Management Board shall act as Liquidator. All Liquidation Proceeds shall be applied and distributed in the following order of priority: 
 (i) First, to the payment of the debts and liabilities of the Company (excluding any loans or advances that may have been made by any
Members to the Company) and the expenses of liquidation; 
 (ii) Second, to the payment of any debts and liabilities of the
Company owing to any Member, but in the event the amount available for such payment is insufficient to satisfy all such debts and liabilities, then to such Members in the proportion which their respective claims bear to the claims of all such
Members; 
 (iii) Third, to the creation of any reserves which may be deemed reasonably necessary for the payment of any
contingent or unforeseen liabilities or obligations of the Company arising out of or in connection with the business and operation of the Company; and 
 (iv) Fourth, to Class A Members equal to the cumulative operating profits not previously distributed; 
 (v) Fifth, to new capital contributed after the date of formation based on the proportionate share of each Member’s contribution of new capital; and 

 (vi) Sixth, to the Members in the proportion to the Member’s original investment
(50/50) subject to the provisions governing repayment of the balance of working capital advanced, together with any unpaid interest on that working capital advanced, as set forth in Article 2.3.1, above. The balance of working capital
advanced by the Company to a Class B Member, together with any accumulated unpaid interest on that working capital advanced, shall be deducted prior to the Class B Member receiving any distribution of Liquidation Proceeds. Similarly, the unpaid
balance of any loans from the Company to the Class B Member shall be deducted prior to the Class B Member receiving any distribution of Liquidation Proceeds. 
 (b) In-Kind Distributions. The Liquidator may determine whether and to whom properties should be distributed in kind rather than liquidated. The value of property distributed in kind shall be determined
pursuant to the appraisal procedure set forth on Exhibit B. Any property distributed in kind shall be treated as though the property were sold for its appraised value at the time of distribution and the cash proceeds were distributed.

 (c) Deficit Capital Account. Notwithstanding anything to the contrary contained herein, no Member shall be required to pay to the
Company or any other Member any deficit or negative balance which may exist in such Member’s Capital Account from time to time or upon a liquidation of the Company or the Member’s interest in the Company except as otherwise required by the
Act. 
 (d) Return of Contributions. No Member shall have priority over any other Member with respect to distributions made under this
Article 8, and distributions made in accordance with this Article 8 shall be in full satisfaction of a Member’s claim against the Company for distribution and liquidation. Except as otherwise provided by law or as expressly
provided in this Agreement, each Member shall look solely to the assets of the Company for the return of its Capital Contributions, and no Member shall have recourse against the Liquidator, the Management Board or the other Members if the assets of
the Company are insufficient to return the Capital Contributions of one or more Members after debts and liabilities owed to creditors (including any Members who are creditors) are satisfied. 
 (e) Time to Dissolve. A reasonable time shall be allowed for the orderly liquidation of the assets of the Company and the discharge of liabilities
to creditors so as to minimize the normal losses attendant upon such liquidation. 
 8.3. Date of Termination. The Company shall be
terminated when all of its assets have been applied and distributed in accordance with the provisions of Article 8.2. The establishment of any reserves for the payment of any contingent or unforeseen liabilities or obligations of the Company
shall not have the effect of extending the term of the Company, and such reserves shall be applied and distributed in the manner provided in Article 8.2 upon the expiration of the period of such reserves. 

 ARTICLE 9. 
 BANK ACCOUNT, FISCAL YEAR, BOOKS AND RECORDS 
 9.1. Bank Account. All funds of the Company
shall be deposited in the Company’s name in such bank or banks, and all withdrawals therefrom shall be upon such signatures, as may from time to time be determined by the Management Board, 
 9.2. Fiscal Year. Both the fiscal year and taxable year of the Company shall be January 1 to December 31; provided,
that the fiscal year and taxable year of the Company may from time to time be changed by the Management Board in. accordance with the Code. 
 9.3. Books. The Management Board shall keep or cause to be kept complete and accurate records and books of account, in which shall be entered fully and accurately all transactions and such other matters
relating to the Company’s business as are usually entered into records and books of account maintained by persons engaged in businesses of a like character. The books and records shall at all times be kept and maintained at the Company’s
principal office and shall be available during normal business hours for inspection and copying upon the reasonable request, and at the expense, of any Member. The Company’s books and records shall be prepared and maintained in accordance with
such method of accounting as is determined by the Management Board. 
 9.4. Annual Financial Information. 
 (a) Annual Tax Information. Within ninety (90) days after the end of each fiscal year, the Management Board shall cause the Company to send to
each person who was a Member or Assignee at any time during such year such tax information, including, without limitation, federal tax Schedule K-l (Form 1065), as shall be reasonably necessary for the preparation by such person of its federal and
state income tax returns. 
 (b) Financial Statements. Within ninety (90) days after the end of such year, the Management Board
shall cause the Company to send to each person who was a Member at any time during such year financial statements for the Company, including: (i) a balance sheet as of the end of the year; (ii) a cash flow statement for such year; and
(iii) a statement of profit and loss for such year, none of which need be audited, compiled, or reviewed by an independent certified public accountant. Each Member shall have the right, at its own cost and expense, to retain an independent
certified public accountant to audit the books and records of the Company. 
 ARTICLE 10. 
 RIGHT OF FIRST REFUSAL 
 10.1. A
Member or Assignee (herein “Selling Member”) which desires to sell or transfer all or any portion of its Membership Interest to a third party shall first obtain from such third party a bona fide written offer to purchase such Interest,
setting out and stating fully all terms and conditions upon which the purchase is to be made and the consideration offered therefor (the “Offer”). The Selling Member shall give notice to the remaining Member of its intention to sell,
furnishing a copy of the Offer with such notice. 

 10.2. The remaining Member (not Assignee) (herein “Non Selling Member”) has the right to
purchase all (but not less than all) of the Membership Interests proposed to be sold upon the same terms and conditions stated in the Offer by giving notice to the Selling Member of its intention to do so within thirty (30) days after notice
from the Selling Member. If the Non Selling Member shall not notify the Selling Member of its exercise of its right of first refusal within the thirty (30) day period, its right of first refusal with respect to the Offer shall terminate, and
the Selling Member shall be entitled to consummate the proposed sale of its Membership Interest, provided that such sale is (i) on substantially the same terms as the Offer and (ii) consummated within forty-five (45) days of the
expiration of the Non Selling Member’s right of first refusal. If the proposed sale is not consummated within the forty-five (45) day period, the Membership Interests shall continue to be subject to all provisions of this Article
10. In the event the Non Selling Member gives written notice to the Selling Member of its exercise of its right of first refusal to purchase all the offered interest of the Selling Member on the terms and conditions stated in the Offer, the Non
Selling Member or the Company shall have the right to designate the time, date and place of closing, provided that the date of closing shall be within sixty (60) days after receipt of the written notification to the Selling Member from the Non
Selling Member of its exercise of its right of first refusal. 
 10.3. The transfer by a Member of its Membership Interest shall,
unless the other Member otherwise consents, shall give to the Non Selling Member the right to accelerate any or all debt from the Selling Member to the Non Selling Member. The Non Selling Member shall notify the Selling Member if it exercises such
right of acceleration at the time it notifies the Selling Member of its exercise or non-exercise of its right of first refusal. 
 ARTICLE
11. 
 SECOND GASIFIER 
 11.1. WRE retains the right to the existing second gasifier and associated equipment at the Facility for the purpose of completing an SNG Export Project. The revenues, expenses, and earnings from the project will accrue to WRE and
not to the business of SGS. The SNG Export rights shall include the cooperation of SGS, subject to there being sufficient available space upon the premises and the ability to interconnect and use of common facilities without impeding or impairing
the production of synthetic gas from the first gasifier. WRE must obtain all environmental licenses for the SNG Export Project. SGS shall have the right to use the Second Gasifier and associated equipment in operating the Facility at its discretion
until WRE has fully permitted, financed and constructed a second gasifier train at which time SGS will relinquish use of the second gasifier and associated equipment which is not then being used in the operation of the Facility to WRE. WRE shall be
responsible for all permitting and licensing of the SNG Export Project. WRE must also comply with all restrictions pertaining to any Site Leases with PSI Cinergy, which may be modified from time to time. It is acknowledged that such Second Gasifier
use may limit or eliminate the ability of the Second Gasifier to operate for the benefit of the Company, however the SNG Export Project, including use of the Second Gasifier, shall not impede, impair or compete with the production of synthetic gas
from the first gasifier in any way. 

 11.2. SGS will not warrant the condition nor refurbish the second gasifier prior to relinquishing
its use to WRE for the SNG Export Project. 
 11.3. All current and future spare parts and inventory located at the Facility related
to the gasifier shall remain property of SGS and will not transfer to WRE should the SNG Export Project be developed. 
 11.4.
The SNG Export Project will not utilize SGS employees, equipment, tools or third party contractors in the performance or construction of the SNG Export Project, without prior written authorization of the SGS Management Board. 

11.5. SGS will permit WRE to store equipment and other assets at the Facility, in support of the SNG Export Project, provided that the same can
be segregated and that the storage will not interfere with the operation of the Facility by SGS. 
 11.6. Any additional
property and equipment acquired for and used solely in connection with the SNG Export Project shall be separately owned, stored and maintained by WRE at its expense and will not be listed or covered as an asset of SGS, 
 11.7. SGS will cooperate fully with all aspects of the SNG Export Project, subject to there being sufficient available space upon the premises
noting that the Company shall have the first right to use the property for the good of both WVPA and WRE. WRE may acquire additional land as needed and available for the SNG Export Project or other uses. 
 ARTICLE 12. 
 GENERAL PROVISIONS

 12.1. Entire Agreement; Amendment. This Agreement, including Schedules I, II, A and B hereto, set
forth the entire understanding of the parties, there being no oral or other written agreements or understandings between them relating to the Company, and supersedes all previous oral or written agreements with regard to the Company. This Agreement
may be amended, altered, changed or added to only upon the unanimous written consent of the Members. 
 12.2. Waiver of Actions. Each
Member expressly acknowledges and agrees that the parties hereto have carefully considered all matters relating to the Company and that all rights and remedies of the Members are, and shall be deemed to be, exclusively those set forth in this.
Agreement. No Member shall have the right or power to cause the dissolution and winding up of the Company, by court decree or otherwise, except as set forth in this Agreement. No Member shall have the right or power to bring an action for partition
against the Company, or for an accounting, or for the appointment of a liquidator by judicial action. 
 12.3. Attorneys’
Fees. hi the event the Company or any Member brings an action at law or other proceeding against a Member or the Company to enforce any of the terms, covenants and conditions hereof, or by reason of any breach or default hereunder, the party
prevailing in any such action or other proceeding shall be entitled to recover from the other party all 

 
reasonable attorneys’ fees and costs incurred by the prevailing party. In the event any judgment is obtained by the prevailing party, all such
attorneys’ fees shall be included in such judgment as determined by the court and not by the jury. 
 12.4. Notices. All notices
under this Agreement shall be in writing and shall be deemed to have been given when delivered personally or by overnight courier, or mailed by certified or registered mail, postage prepaid, return receipt requested. Notices to a Member shall be
mailed or delivered to the address of the Member set forth on Schedule I attached hereto. Notices to the Company shall be mailed or delivered to the principal office of the Company. Members shall give notice of a change of address to
the Company and the other Members at their respective addresses as kept by the Company. 
 12.5. No Third Party Beneficiaries. Except
to the extent an individual is entitled to indemnification by the Company pursuant to Article 6.6, the provisions of this Agreement are solely for the benefit of the Members and the Company, and no creditor of any Member or of the Company
shall have any rights or benefits hereunder or be entitled to rely on any provisions of this Agreement. 
 12.6. Independent Ventures.
Any Member may engage in or possess an interest in other business ventures of every nature and description, independently or with others, and neither the Company nor any of the Members shall have any rights by virtue of this Agreement in and to such
independent ventures or the profits derived therefrom. 
 12.7. Counterparts. This Agreement may be executed in several counterparts,
each of which shall be deemed an original, but all of which shall constitute one and the same instrument. In addition, this Agreement may contain more than one counterpart of the signature page and this Agreement may be executed by the affixing of
the signatures of each of the Members to one of such counterpart signature pages; all of such signature pages shall be read as though one, and they shall have the same force and effect as though all of the signers had signed a single signature
page. 
 12.8. Interpretation and Governing Law. When the context in which words are used in this Agreement indicates that such
is the intent, words in the singular number shall include the plural and the masculine gender shall include the neuter or female gender as the context may require. The Article headings or titles and the table of contents shall not define, limit,
extend or interpret the scope of this Agreement or any particular Article. This Agreement shall be construed in accordance with the internal laws of the State of Indiana without regard to principles of conflicts of law. 
 12.9. Binding Effect. This Agreement and all the terms and provisions hereof shall inure to the benefit of the Company and the Members and shall
be binding upon the Members and their respective legal representatives, successors and permitted assigns. 
 12.10. Severability. If
any of the terms and provisions of this Agreement are determined to be invalid, such invalid term or provision shall not affect or impair the remainder of this Agreement, but such remainder shall continue in full force and effect to the same extent
as though such invalid term or provision were not contained herein. 

 IN WITNESS WHEREOF, the Members have caused this Operating Agreement to be executed on the date
set forth below, effective as of the day and year first above written. 
  

											
	Wabash Valley Power Association, Inc.	  	 	 	Wabash River Energy, Ltd.	 	 
						
	By:	  	 /s/ Edward P. Martin
	  		 	By:	 	 /s/ H. H. Graves
	 	
						
	Its:	  	President & CEO	  		 	Its:	 	H. H. GRAVES, President	 	
						
	Date:	  	1/14/05	  		 	Date:	 	1/14/05	 	

 SCHEDULE I 
 TO OPERATING AGREEMENT 
 OF 
 SG SOLUTIONS, LLC 
 CAPITAL CONTRIBUTIONS AND MEMBERS’ PERCENTAGES:

 ADDRESSES OF PARTIES 
  

					
	 Name & Address of Member:
	  	 Agreed Value of
 Capital Contribution
	  	Member’s
Percentage
			
	Class A Members:	  		  	
			
	 Wabash Valley Power Association, Inc.
 722 High School
Road
 P.O. Box 24700
 Indianapolis, IN 46224
	  	 $17,000,000
 consisting in part
 of claims against WRE
	  	50%
			
	Class B Members:	  		  	
			
	 Wabash River Energy, Ltd.
 312 Walnut Street, Suite
2650
 Cincinnati, OH 45202
	  	 $17,000,000 representing
 assets, equipment, fixtures,
contracts,
 leases, easements and other
 personal property
identified
 on Schedule II to the
 Operating
Agreement
	  	50%

  

 Exhibit A-19 

 SCHEDULE II 
 TO OPERATING AGREEMENT 
 OF 
 SG SOLUTIONS, LLC 
 LIST OF PROPERTY AND ASSETS 
 CONTRIBUTED BY 
 WABASH
VALLEY POWER ASSOCIATION. INC. 
 AND WABASH RIVER ENERGY, LTD. 
 Assets Contributed by Wabash Valley Power Association Inc. 
  

			
	Secured Claims
		
	 Societe Generate Bank (Bank)
	  	4,441,559
		
	 Freitag-Weinhardt (Contractors)
	  	4,750,000
		
	 Loiello (Refractory Brick)
	  	3,194,250
		  	 
		
	 Total Secured Claims Acquired
	  	12,385,789
	
	Claims Pending
		
	 Porvair (9% interest - 8/20) (Filters)
	  	2,647,306
		
	 Sterling Boiler
	  	771,163
		
	 R.C.C.
	  	1,700,000
		  	 
		
	 Total Claims Pending
	  	5,118,469
		
	 Cash if claims paid are less than $317,000,000 of claims
	  	
		  	 
		
	TOTAL CLAIMS CONTRIBUTED	  	
		  	 

  

 Exhibit A-20 

 Assets Contributed by Wabash Power Energy, Ltd. 
 Gasification Block Machinery & Equipment 
 Fuel
Milling, Heating & Slurry Feeding System 
 Cooling Tower & Auxiliary Equipment 
 Gasification System 
 Wet Chloride Scrubber
System’ 
 Fuel Gas Cooler / High Temperature Heat Recovery System 
 Candle Filter / Char Removal System 
 Slag
Handling / Slag Product System 
 Sulfur Recovery Unit 
 Fuel Gas Preheat / Synthetic Gas Conditioning System 
 Acid Gas Removal / Absorption Column System

 Sour Water Treatment System 
 Main Central Pipe Rack & Auxiliary Equipment 
 Production Controls / Instrumentation 
 Slag & Sulfur Product Loading Equipment 
 Flare Stack & Auxiliary Equipment 
 Miscellaneous Support Equipment 
 Laboratory Equipment 
 Maintenance / Shop / Warehouse Equipment 
 Office Furniture & Equipment 
 Computer Hardware 

			
	Motor Vehicles:	 	1995 Chevrolet C1500 Pickup Truck (1) and
		 	1995 Chevrolet 3500 Pickup Truck (1)

 Leasehold Improvements 
 All other property, equipment and assets used in or in connection with the operation of the gasification plant located at 444 West Sandford Avenue, West Terre Haute, Indiana which are not excluded assets under the Asset Purchase Agreement
of even date herewith, other than the air separation unit. 
  

 Exhibit A-21 

 SCHEDULE A 
 TO OPERATING AGREEMENT 
 OF 
 SG SOLUTIONS, LLC 
 CERTAIN DEFINED TERMS 
 1. “Act” means the Indiana Business Flexibility Act, IND. CODE § 23-18-1-1, et seq., as the same may be amended from time to time,
or any successor legislation. 
 2. “Agreement” means this Operating Agreement and all Exhibits and Schedules hereto, as the same
may be amended from time to time. 
 3. “Assignee” means the assignee or transferee of an interest in the Company, assigned or
transferred by a Member in accordance with the provisions of Article 7 of this Agreement, who has not been admitted as a Member of the Company. 
 4. “Bankruptcy” or “Bankrupt” means, with respect to any person, including the Company or any of the Members, that such person has made an assignment for the benefit of creditors; filed a voluntary
petition in bankruptcy; been adjudged a bankrupt or insolvent, or had entered against such person an order of relief in any bankruptcy or insolvency proceeding; filed a petition or an answer seeking for such person any reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief under any statute, law, or regulation; filed an answer or other pleading admitting or failing to contest the material allegations of a petition filed against him in any proceeding
of such nature; sought, consented to, or acquiesced in the appointment of a trustee, receiver, or liquidator of such person or of all or any substantial part of its properties; one hundred twenty (120) days have elapsed after the commencement
of any proceeding against such person seeking reorganization, arrangement, or similar relief under any statute, law, or regulation and such proceeding has not been dismissed; or ninety (90) days have elapsed since the appointment without the
person’s consent or acquiescence of a trustee, receiver, or liquidator of such person or of all or any substantial part of its properties and such appointment has not been vacated or stayed or the appointment is not vacated within ninety
(90) days after the expiration of such stay. 
 5. “Book Value” means, with respect to any item of Company property as of any
particular date: 
 (a) With respect to any item of property contributed by a Member to the capital of the Company, the
initial Book Value shall be the agreed-upon gross fair market value of such item of property as of the date such property was contributed to the Company; 
  

 Exhibit A-22 

 (b) With respect to any other item of Company property, the initial Book Value shall be
its adjusted basis for Federal income taxation purpose; 
 (c) The Book Value of Company property shall be adjusted for
depreciation, depletion, cost recovery and amortization deductions with respect to such property; and 
 (d) The Book Value of
all Company properties shall be adjusted to equal their respective fair market values upon the adjustments to Capital Accounts described in Section 6(e) below. 
 6. “Capital Account” means the capital account of each Member, determined and maintained in accordance with the rules of Treas. Reg. §
1.704-1(b), as follows: 
 (a) There shall be credited to each Member’s Capital Account: (i) the amount of each
Member’s cash capital contributions; (ii) the fair market value of any property contributed by the Member to the Company (net of liabilities securing such contributed property that the Company is considered to assume or take subject to
under Section 752 of the Code); and (iii) allocations to the Member of Company income and gain (or items thereof), including income and gain exempt from tax and income and gain described in Treas. Reg. § 1.704-l(b)(2)(iv)(g), but
excluding income and gain described in Treas. Reg. § 1.704-l(b)(4)(i). 
 (b) There shall be debited to each
Member’s Capital Account: (i) the amount of cash distributed to the Member by the Company; (ii) the fair market value of property distributed to the Member by the Company (net of liabilities securing such distributed property that
such Member is considered to assume or take subject to under Section 752 of the Code); (iii) allocations to the Member of expenditures of the Company described in Section 705(a)(2)(B) of the Code; and (iv) allocations of Company
loss and deduction (or item thereof), including loss and deduction described in Treas. Reg. § 1.704- l(b)(2)(iv)(g), but excluding items described in clause (iii) of this subparagraph and loss or deduction described in Treas. Reg. §
1.704-1 (b)(4)(i) or (iii). 
 (c) Each Member’s Capital Account shall be otherwise adjusted as required by Treas. Reg.
§ 1.704-l(b)(2)(iv). 
 (d) Each Member who has more than one interest in the Company shall have a single Capital Account
that reflects all such interests as required by Treas. Reg. § 1.704-l(b). 
  

 Exhibit A-23 

 (e) The Capital Accounts of the Members may be restated in the event that additional
contributions are made to the Company, Company property is distributed to a Member, a new Member is admitted to the Company, a Member withdraws from the Company, the Company is dissolved or in any other event as the Management Board deems
appropriate. 
 (f) This Section 6 and the other provisions of this Agreement relating to the maintenance of
Capital Accounts are intended to comply with the requirements of Section 1.704-l(b) of the Regulations and shall be interpreted and applied in a manner consistent with such Regulations. If the Management Board determines that it is prudent to
modify the manner in which the Capital Accounts, or any debits or credits to them (including, without limitation, debits or credits relating to liabilities that are secured by contributed or distributed property or that are assumed by the Company or
the Members), are computed to comply with such Regulations, the Members shall make such modifications as may be recommended by the Management Board; provided that such modifications are not likely to have a material effect on the amounts
distributable to any Member pursuant to Article 5. The Members shall also make any appropriate modifications recommended by the Management Board in the event unanticipated events might otherwise cause this Agreement not to comply with
Section 1.704- l(b) of the Regulations. 
 7. “Capital Contributions” means all cash and the value of any property or services
contributed to the capital of the Company by a Member or its predecessor-in-interest. 
 8. “Cash Flow” means the excess of cash
revenue from operations of the Company (including any cash received by or remaining to the Company from the proceeds of any loan made to or obtained by the Company from new financings or the refinancing of any indebtedness of the Company), without
reduction for any non-cash charges, over cash disbursements and any reserves which the Management Board may deem reasonably necessary or advisable for the payment of contingent liabilities of the Company or to fund the Company’s need for
working capital, capital expenditures or growth. 
 9. “Code” means the Internal Revenue Code of 1986, as amended (or any
corresponding provision or provisions of succeeding law). 
 10. “Liquidation Proceeds” means all cash of whatever type and however
derived that is held by the Company on or after the date of the dissolution and commencement of the winding up of the affairs of the Company. 
 11. “Management Board” means the collective group of individuals who have been appointed by the Members in accordance with Article 6.2 of this Agreement to direct the management of the business and the affairs of the
Company. 
  

 Exhibit A-24 

 12. “Members” means Wabash Valley Power Association, Inc. and Wabash River Energy,
Ltd., their successors and assigns, and any person(s) admitted as a new Member or substitute Member by the Members pursuant to the Operating Agreement. 
 13. “Member’s Percentage” means the percentage interest of each Member in the Company set forth on Schedule I hereof, as such percentages may be amended from time to time. 
 14. “Profit” or “Loss” means the Company’s taxable income or taxable loss for Federal income taxation purposes as determined by
the accountants then employed by the Company in accordance with Section 703(a) of the Code, with the items required to be separately stated by Section 703(a)(l) of the Code combined into a single net amount; provided, however, that in the
event the taxable income or taxable loss of the Company for such fiscal year is later adjusted in any manner, as a result of an audit by the Internal Revenue Service (the “Service”) or otherwise, then the taxable income or taxable loss of
the Company shall be adjusted to the same extent. 
 15. “Prime Rate” means the Prime Rate as published from time to time in The
Wall Street Journal, and which is described as the base rate on corporate loans at large U.S. money center commercial banks, as such rate may vary from time to time. If such base rate is expressed in a range in said publication, the higher rate
of the reported range will apply. If The Wall Street Journal ceases to publish a Prime Rate, a similar source shall be used to determine the Prime Rate, 
 16. “Regulations” or “Treas. Reg,” means such regulations, including any interim or temporary regulations, as may be promulgated by the Treasury Department under the Code. 
  

 Exhibit A-25 

 SCHEDULE B 
 Appraisal Procedure 
 (a) Whenever the
assets of a Member in the Company are to be valued, the Members shall attempt to agree upon a mutually-agreeable value. They shall have fifteen (15) days in which to see if they can agree upon the value of the dissenting Member’s interest
in the assets of the Company. Within such fifteen (15) day period, if they cannot agree, they shall see if they can agree upon a single person or company who shall determine the value of such assets. At the end of fifteen (15) days if the
Members cannot agree upon the value of the dissenting Member’s share of the Company’s assets, nor upon a single person or company to determine the value of such assets in a manner binding upon both Members, then each Member shall agree to
submit the evaluation to a binding panel of appraisers as follows. Each party shall select one (1) experienced and competent appraiser to perform such valuation and the two (2) persons so appointed shall appoint a third (3rd) competent appraiser. The appraisers shall have thirty (30) days in which to make their valuation of the assets of
the Company. A copy of each appraiser’s determination of value shall be furnished to all the Members of the Company. The appraised value of the assets shall be the average value of the three (3) appraisals if the three (3) appraised
values do not vary by more than twenty percent (20%). If the three (3) appraisals vary by more than twenty percent (20%), then the average value of the two (2) closest appraisals shall be used to determine the value of the assets of the
Company. The value of the interest of the dissenting Member shall be determined by valuing the appraised value of the assets of the Company, then multiplying the Member’s Percentage Interest times that value, and then subtracting any debts owed
by that Member to the Company or to the other Member. Each Member shall pay the cost of the appraisal by the person that Member it appoints as an appraiser and the Members shall equally share the cost of the third appraiser appointed by the two
(2) other appraisers, or of the single appraiser if the parties shall agree upon a single appraiser. 
 (b) Within fifteen
(15) days after the dissenting Member receives the last appraisal under the procedure set forth in the preceding paragraph (a), the dissenting Member may elect to withdraw its dissent under 6.4.1. of this Operating Agreement. If the dissenting
Member withdraws its dissent from the action of the Management Board, the dissenting Member shall pay the cost of the appraisal(s) referred to in the preceding paragraph (a.) 
 (c) Once such value has been determined, the Company and the non-dissenting Member shall have ninety (90) days in which to pay the dissenting Member
such amount of money less debts owed by that Member to the Company or to the other Member. Concurrently upon such payment, the dissenting Member shall convey and transfer to Company or to the non-dissenting Member if the Member buys the assets, the
dissenting Member’s entire interest in the Company. If both the Company and the other Member shall fail to buy out such interest, the Company shall not take the action giving rise to such appraisal. 
  

 26Synthetic Natural Gas Purchase and Sale Agreement

 Exhibit 10.17 
  

					
	 [*]
	 	=	 	Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the
Securities Act of 1933, as amended.

 SYNTHETIC NATURAL GAS 
 PURCHASE AND SALE AGREEMENT 
 between 
 EAGLE ENERGY PARTNERS I, L.P. 
 As
“Purchaser” 
 and 
 SNG Export, LLC 
 As “Seller” 
 February 13, 2007 

 SYNTHETIC NATURAL GAS PURCHASE AND SALE AGREEMENT 
 This SYNTHETIC NATURAL GAS (SNG) PURCHASE AND SALE AGREEMENT (this “Agreement”) dated as of February 13, 2007, is entered into between SNG
Export, LLC a Delaware limited liability company (“Seller”) and Eagle Energy Partners I, L.P., a Texas limited partnership (“Purchaser”) (each, a “Party” and collectively, the “Parties”).

 RECITALS 
 A. Seller
proposes to develop, finance, construct, own, operate and maintain the Facility, located in Terre Haute, Indiana. 
 B. Seller wishes to
deliver and sell to Purchaser and Purchaser wishes to purchase and take from Seller, Gas produced from the Facility based upon the terms and conditions of this Agreement. 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which is acknowledged, the Parties hereby
agree as follows: 
 ARTICLE I 
 DEFINITIONS; INTERPRETATION 
 Section 1.1 Defined Terms. Unless otherwise defined herein or in any
exhibit, schedule or appendix hereto, the following terms, when used herein or in any exhibit, schedule or appendix hereto shall have the meanings set forth below. 
 “Agreement” means this Synthetic Natural Gas Purchase and Sale Agreement and the Appendices hereto, which are hereby incorporated herein by reference. 
 “Appendix” means an appendix attached to this Agreement. 
 “Billing Period” means each Month used for billing purposes as provided in Article X. 
 “BTU” means British Thermal Units. 
 “Business Day” means any Day except Saturday, Sunday or a
weekday that is observed as a legal holiday in the state of Indiana. 
  

 2 

 “Eastern Prevailing Time” means Eastern Daylight Saving Time when such time is
applicable and otherwise means Eastern Standard Time. 
 “Change-in-Law” means, after the Effective Date, the adoption,
imposition, promulgation or modification by a Government Agency of any Law or Governmental Approval, or the issuance of an order, judgment, award or decree of a Government Agency having the effect of the foregoing. 
 “Change-in-Law Taxes” means any Taxes of the United States or the state of Indiana arising from a Change-in-Law and imposed on or
measured by the volume or amount of consumption of coal, the production of Gas or gross revenue, gross receipts or comparable measure thereof, and whether characterized as ad valorem, sales, gross receipts, BTU, natural gas production, or other
similar Tax. A Change-in-Law Tax must result in either a net increase or a net decrease in the affected Tax due by the appropriate Party and shall not include changes in Federal or state Tax Laws that have the effect of substituting a new Tax for an
existing Tax (e.g., eliminate property taxes in favor of tax on natural gas). Change-in-Law Taxes shall not include any Taxes imposed by a local or municipal political subdivision of the State of Indiana or any Taxes upon or measured by the income
or net income of either Party. 
 “Claims” means any claims, judgments, losses, liabilities, costs, expenses (including
reasonable attorneys’ fees) and damages of any nature whatsoever (except workers’ compensation claims) in relation to personal injury, death or property damage incurred or made by third parties. 
 “Commencement of Construction” means the date on which Seller has issued to its construction contractor a full notice to proceed for the
construction of the Facility in accordance with the terms of the construction contract between Seller and such contractor. 
 “Commercial Operation Date” means the date on which Seller provides to Purchaser a certificate stating that Commercial Operation Date has been achieved for the Facility such that the Facility is capable of producing Gas in
accordance with the terms of this Agreement; provided that the Commercial Operation Date is expected to be September 1, 2009. 
 “Commercially Reasonable” or “Commercially Reasonable Efforts” means, with respect to any purchase or sale or other action required to be made, attempted or taken by a Party under this Agreement, such
efforts as a reasonably prudent business would undertake for the protection of its own interest under the conditions affecting such purchase or sale or other action, including without limitation, the amount of notice of the need to take such action,
the duration and type of the purchase or sale or other action, the competitive environment in which such purchase or sale or other action occurs, and other material considerations. 
  

 3 

 “Common Facilities” means the equipment of the Facility necessary to operate the
Facility and produce Gas from the Facility including, but not limited to, any such necessary control room, machine shops, warehouse, parking, domestic water supply and waste disposal. Interconnection Facilities, and Feedstock Delivery Facilities.

 “Contest” means, with respect to any Person, a contest of (a) any Governmental Approval, acts or omissions by
Government Agencies or any related matters, or (b) the amount or validity of any claim pursued by such Person in good faith and by appropriate legal, administrative or other proceedings diligently conducted so long as: (i) appropriate
notations are included in the Parties’ financial statements regarding possible liabilities in accordance with GAAP, (ii) the contesting Party could not reasonably be expected to be prevented from performing its material obligations under this
Agreement pending the outcome of such contest, and (iii) during the period of such contest the enforcement of any material claim against the contesting Party is effectively stayed or reasonably protected by adequate financial reserves.

 “Contract Price” means (a) for the Monthly Baseload Quantity, the Monthly Gas Index price for the Monthly Baseload
Quantity minus [*] per MMBtu; (b) for the Daily Firm Quantity, the Daily Gas Index price for the Daily Firm Quantity minus [*] per MMBtu; and (c) for any Intra-Day Quantity, the Eagle Sales Price minus [*] per MMBtu. 
 “Contract Year” means, initially, the period commencing on the Delivery Start Date and ending on December 31 immediately
thereafter, and, subsequently, each calendar year thereafter until the final Contract Year which shall include the period from January 1 of that year to the end of the Term. 
 “Day” means the 24-hour period beginning and ending at 12:00 midnight (Eastern Prevailing Time). 
 “Daily Firm Quantity” means up to 43,000 MMBTu/Day of Gas produced by the Facility and made available on a Daily basis by Seller to
Purchaser at the Delivery Point. 
 “Daily Firm Quantity” means any Gas nominated for delivery by Purchaser from the Daily
Firm Quantity in accordance with Section 6.2. 
 “Daily Gas Index” means the “daily” price published as the
“Midpoint” price by Platt’s Gas Daily and corresponding to “Chicago-city-gates” under the Section entitled “Daily Price Survey” and in the subsection entitled “Citygates”. Should the index
specified herein be discontinued, an index specified by the appropriate entity as the replacement index, if any, plus an appropriate basis differential reasonably determined by the Parties shall be used. If no replacement index is specified, a new
index which most accurately reflects changes for the applicable cost component shall be substituted by mutual agreement of the Parties. If the basis of the calculation of the index specified 
  

					
	 [*]
	 	=	 	Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the
Securities Act of 1933, as amended.

  

 4 

 
herein is substantially modified, the index as modified may continue to be used or another index may be substituted by mutual agreement of the Parties. A
minor change in weighting, and minor changes in benchmarks shall not be construed as substantial modification to the index and the affected values shall be re-established in accordance with the instructions issued by the appropriate index entity.

 “Default Rate” has the meaning assigned to such term in Section 10.5. 
 “Delivery Point” means the Interconnection Point. 
 “Delivery Start Date” has the meaning assigned to such term in Section 3.1. 
 “Dollars” or “$” means the lawful currency of the United States of America. 
 “Eagle Sales
Price” means with respect to Intra-Day Gas, the actual, “all in” (that is inclusive of any transmission or other costs) price at which Eagle is able to make a subsequent sale of such Gas to a third party market participant.

 “Effective Date” means the date of execution and delivery of this Agreement by Seller and Purchaser. 
 “Facility” means the gasification and SNG production facility capable of converting certain types of solid feedstock into Gas, having a
Gas output capability of approximately 43,000 MMBtu per Day, and to be located on the Facility Site, together with the Common Facilities, to be constructed, supplied and delivered at the Facility Site. 
 “Facility Capacity” means approximately 43,000 MMBtu per Day. 
 “Facility Site” means the approximately ten-acre parcel of land upon the Facility will be located, 444 West Sandford Ave., West Terre
Haute, Indiana 47885. 
 “FERC” means the Federal Energy Regulatory Commission, and any successor agency in regulatory
function. 
 “Feedstock” means coal, petcoke or other solid feedstock used by the Facility to produce Gas together with such
other materials required by the Facility for the processes that are necessary to produce Gas from the Facility. 
 “Feedstock
Delivery Facilities” means any equipment, machinery, materials, slurry pipelines, storage facilities, rail spurs, and any other equipment, machinery or facilities necessary for the receipt of Feedstock at the Facility in sufficient amounts
for Seller to use in the Facility to satisfy Seller’s Gas delivery obligations under this Agreement. 
  

 5 

 “Financial Closing Date” means the date on which (a) binding commitments to provide
the financing for the estimated cost to complete construction of the Facility are issued by the Financing Parties and are effective, (b) conditions on initial borrowings are satisfied, and (c) amounts become available for initial borrowing
from the Financing Parties for the construction of the Facility and the Common Facilities. 
 “Financing Documents” means
any document relating to the financing or refinancing of the acquisition, construction, ownership, operation, maintenance or leasing of the Facility and the Common Facilities. 
 “Financing Parties” means institutions (including any trustee or agent on behalf of such institutions) providing financing or
refinancing to Seller for the acquisition, construction, ownership, operation, maintenance or leasing of the Facility and the Common Facilities. 
 “Firm” means (a) that either Party may interrupt its performance without liability only to the extent that such a Party’s performance is prevented by a Force Majeure Event; provided, however, that during such
Force Majeure Event, the Party invoking the Force Majeure Event may be responsible for any Imbalance Charges related to its interruption after the nomination is made to the Transporter and until the change in deliveries and/or receipts is confirmed
by the Transporter; and (b) that the Parties shall be excused from performance without liability during periods in which Seller has properly notified Purchaser of a Scheduled Maintenance Outage for the Facility. The term “Firm” shall
not be construed to excuse either Party from performance during periods in which there exists an Unscheduled Maintenance Outage of the Facility or during periods in which the Facility is unavailable due to a Forced Outage. 
 “Force Majeure Event” means, with respect to the Facility, an event, condition or circumstance described in Section 14.1.

 “Forced Outage” means any outage of, or reduction in the Gas production of the Facility that is not due to a Force
Majeure Event, a Scheduled Maintenance Outage, or an Unscheduled MAINTENANCE OUTAGE. 
 “Gas” or Synthetic Natural
Gas” (“SNG”) means any mixture of hydrocarbons and noncombustible gases in a gaseous state consisting primarily of methane and constituting natural gas or synthetic natural gas. 
 “Gas Payment” means, for each Billing Period, the payment to be made by Purchaser to Seller, in accordance with Section 10.1.

 “Gas Transportation System” means the natural gas transportation system of the Transporter to which the Facility is
interconnected. 
  

 6 

 “Government Agency” means any federal, state, local, territorial or municipal government
and any department, commission, board, bureau, agency, instrumentality, judicial or administrative body thereof having competent jurisdiction over the subject or Party at issue. 
 “Governmental Approval” means any authorization, consent, approval, license, ruling, permit, exemption, variance, order, judgment,
decree, guidances, policies, declarations of or regulation by any Government Agency relating to the acquisition, development, ownership, occupation, construction, start-up, testing, operation or maintenance of the Facility and Common Facilities or
to the execution, delivery or performance of this Agreement. 
 “Imbalance Charges” means any fees, penalties, costs or
charges (in cash or in kind) assessed by the Transporter (or any third party transportation provider) for failure to satisfy the Transporter’s balance and/or nomination requirements. 
 “Interconnection Facilities” means the interconnection facilities that shall connect the Facility with the Gas Transportation System.

 “Interconnection Point” means the physical point(s) at which the Facility is connected with the Gas Transportation
System. 
 “Interruptible” means that either Party may interrupt its performance at any time for any reason, whether or not
caused by a Force Majeure Event, with no liability, except such interrupting Party may be responsible for any Imbalance Charges as related to its interruption after the nomination is made to the Transporter and until the change in deliveries and/or
receipts is confirmed by Transporter. 
 “Intra-Day Quantity” means any quantity of Gas that is available from the Facility
and that does not constitute part of the Monthly Baseload Quantity or part of the Daily Firm Quantity. 
 “Intra-Day Gas”
means any Gas delivered to Purchaser from the Intra-Day Quantity. 
 “Law” means any statute, law, rule or regulation
imposed by a Government Agency, whether in effect now or at any time in the future or any judicial or administrative interpretation having the force of the foregoing. 
 “Lien” means, with respect to any property of any Person, any mortgage, lien, pledge, charge, lease, easement, servitude, right of others or security interest or encumbrance of any kind in respect of
such property of such Person. 
 “MMBtu” means million BTUs. 
 “Month” means a calendar month. 
  

 7 

 “Monthly Availability Plan” has the meaning assigned to such term in
Section 6.2(b). 
 “Monthly Baseload Gas” means any Gas nominated for delivery by Purchaser from the Monthly Baseload
Quantity in accordance with Section 6.2. 
 “Monthly Baseload Quantity” means up to 43,000 MMBtu/Day of Gas produced by
the Facility and made available by Seller to Purchaser at the Delivery Point. 
 “Monthly Gas Index” means for the Monthly
Baseload Quantity, the first of the Month index price published by Natural Gas Intelligence under the heading “Market Center Spot Gas Pricing”, “Upper Midwest” reference to “Chicago City-Gate”. Should the index
specified herein be discontinued, an index specified by the appropriate entity as the replacement index, if any, plus an appropriate basis differential reasonably determined by the Parties shall be used. If no replacement index is specified, a new
index which most accurately reflects changes for the applicable cost component shall be substituted by mutual agreement of the Parties. If the basis of the calculation if the index specified herein is substantially modified, the index as modified
may continue to be used or another index may be substituted by mutual agreement of the Parties. A minor change in weighting, and minor changes in benchmarks shall not be construed as a substantial modification to the index and the affected values
shall be re-established in accordance with the instructions issued by the appropriate index entity. 
 “Non-Conforming Gas”
has the meaning assigned to such term in Section 4.2(b). 
 “Payment Date” has the meaning assigned to such term in
Section 10.1(b). 
 “Person” means any individual, corporation, partnership, joint venture, trust, unincorporated
organization or Government Agency. 
 “Purchaser” means Eagle Energy Partners I, L.P. 
 “Prudent Industry Practices” means any of the practices, methods, standards and acts (including, but not limited to, the practices,
methods and acts engaged in or approved by a significant portion of the natural gas or chemical process industry in the United States) that, at a particular time, in the exercise of reasonable judgment in light of the facts known or that should
reasonably have been known at the time a decision was made, could have been expected to accomplish the desired result consistent with good business practices, reliability, economy, safety and expedition, and which practices, methods, standards and
acts generally conform to operation and maintenance standards recommended by the Facility’s equipment suppliers and manufacturers, the design limits and applicable Governmental Approvals and Law. 
  

 8 

 “Replacement Gas” means Gas that is (a) procured by Seller in replacement of Gas
that was otherwise to have been delivered from the Facility pursuant to the circumstances described in Section 3.2, (b) procured by Purchaser in replacement of Gas that was otherwise to have been delivered from the Facility pursuant to the
circumstances described in Section 3.2, and (c) procured by Purchaser during any period where Seller fails to deliver Gas pursuant to Seller’s Firm delivery obligations under this Agreement. 
 “Replacement Gas Costs” means (a) in the event of a failure to deliver Gas during any period in which there exists a Firm
obligation on the part of Seller to deliver Gas, an amount equal to the difference between the amount of Gas required to be delivered by Seller pursuant to such Firm obligation, and the actual quantity delivered by quantity of Gas delivered by
Seller and received by Purchaser for that period, multiplied by the positive difference, if any, obtained by subtracting the Contract Price for the Monthly Baseload Gas or Daily Firm Gas (as applicable), that Seller failed to deliver, from the Spot
Price; or (b) in the event of a failure on the part of Purchaser to receive any Gas during any period in which there exists a Firm obligation on the part of the Purchaser to receive Gas, an amount equal to the difference between the amount of
Gas required to be purchased and received by Purchaser and the actual quantity delivered by Seller and received by Purchaser for such period, multiplied by the positive difference, if any, obtained by subtracting the applicable Spot Price from the
Contract Price applicable to the Monthly Baseload Gas or Daily Firm Gas (as applicable) that Purchaser failed to receive; plus (c) in the case of (a) above, any incremental gas transportation costs incurred by Purchaser (in addition to the
Transportation Costs) in delivering the quantity of Gas purchased in replacement of the Gas that Seller failed to deliver from the Replacement Gas Delivery Point or other delivery point at which Purchaser procures such Gas, to the point that
Purchaser ultimately designated for delivery of the Gas, and which may include the Transportation Costs. 
 “Replacement Gas Delivery
Point(s)” means the physical location at which Replacement Gas is delivered to the Gas Transportation System. 
 “Scheduled
Maintenance Outage” means a time period during which the Facility is shut down or the production of Gas is reduced due to the maintenance of the Facility or the Common Facilities in accordance with Section 5.2. 
 “Seller” means SNG Export, L.L.C. 
 “Spot Price” means the price published as the Spot Price Index for the relevant Day; provided, if there is no single price published as the Spot Price Index for such location for such Day, but there is published a range of
prices, then the Spot Price shall be the average of the high and low prices. If no price or range of prices is published for such Day, then the Spot Price shall be the average of the following: (i) the price (determined as stated above) for the
first Day for which a price or range of prices is published that next precedes the relevant Day; and (ii) the price (determined as stated above) for the first Day for which a price or range of prices is published that next follows the relevant
Day. 
  

 9 

 “Spot Price Index” means the “Daily Midpoint” price set forth in Gas
Daily (published by Platts), or any successor publication, in the column “Daily Price Survey” under the heading “Midpoint” and further referenced as the price corresponding to “Chicago City-gates”. 
 “Taxes” means, with respect to any Person, all taxes, withholdings, assessments, imposts, duties, governmental fees, governmental
charges or levies imposed directly or indirectly by any Government Agency on such Person or its income, profits or property as measured by the volume or amount of consumption of fuel, the production of natural gas or the provision of synthetic coal
gasification, or gross revenue, gross receipts or comparable measure thereof, and whether characterized as an ad valorem, sales, gross receipts, BTU, carbon, natural gas production or other similar taxes. 
 “Term” shall have the meaning assigned to such term in Section 2.1. 
 “Transportation Costs” means variable fuel transportation (including losses and Taxes) charged by the Transporter, including, but not
limited to, any and all transportation costs applicable to the transportation of Monthly Baseload Gas, Daily Firm Gas, or Intra-Day Gas from the Delivery Point to the natural gas transportation point commonly known as the “Chicago
City-Gate” and which shall also include, but not be limited to demand charges, variable charges, penalties, Imbalance Charges, the cost of fuel, and any similar or related costs or charges, and which may be imposed without regard to actual
deliveries of Gas by the Transporter. 
 “Transporter” means “Midwestern Gas Pipeline Company”. 
 “Unscheduled Maintenance Outage” means a period of time during which the Facility is shut down or the production of Gas is reduced due
to maintenance of the Facility or the Common Facilities which is not scheduled. 
 Section 1.2 Interpretation. Unless the
context otherwise requires: 
 (a) Words singular and plural in number shall be deemed to include the other and pronouns having masculine or
feminine gender shall be deemed to include the other. 
 (b) Subject to Section 1.2(g), any reference in this Agreement to any Person
includes its successors and assigns and, in the case of any Government Agency, any Person succeeding to its functions and capacities. 
 (c)
Any reference in this Agreement to any Section or Appendix means and refers to the Section contained in, or Appendix attached to, this Agreement. 
  

 10 

 (d) Other grammatical forms of defined words or phrases have corresponding meanings. 
 (e) A reference to writing includes typewriting, printing, lithography, photography and any other mode of representing or reproducing words, figures or
symbols in a lasting and visible form. 
 (f) A reference to a specific time for the performance of an obligation is a reference to that time
in the place where that obligation is to be performed. 
 (g) A reference to a Party to this Agreement includes that Party’s successors
and permitted assigns. 
 (h) A reference to a document or agreement, including this Agreement, includes a reference to that document or
agreement as novated, amended, supplemented or restated from time to time. 
 (i) If any payment, act, matter or thing hereunder would occur
on a Day that is not a Business Day or a Day in which banks are closed in New York, NY, then such payment, act, matter or thing shall, unless otherwise expressly provided for herein, shall occur on the next successive Business Day. 
 (j) Unless otherwise expressly provided herein any consent, acceptance, satisfaction, cooperation or approval required of a Party under this Agreement
shall not be unreasonably withheld or delayed. 
 Section 1.3 Technical Meanings. Words not otherwise defined herein that
have well-known and generally accepted technical or trade meanings are used herein in accordance with such recognized meanings. 
 ARTICLE
II 
 TERM 
 Section 2.1. Term. 
 This Agreement shall become effective as of the Effective Date and shall continue in effect
for a period ending on the date that is ten (10) years from the Commercial Operation Date (the “Term”). 
 ARTICLE
III 
 COMMENCEMENT OF OPERATION AND MILESTONES 
 Section 3.1 Delivery Start Date. 
 (a) The “Delivery Start Date” shall be
the earlier of (a) the 

  

 11 

 
Commercial Operation Date, and (b) September 1, 2009. If Seller determines that the Facility is ready to meet the requirements for the Commercial
Operation Date prior to September 1, 2009, Seller shall provide no less than thirty (30) Days notice to Purchaser in advance of the anticipated Commercial Operation Date. 
 (b) During commissioning of the Facility and prior to the Delivery Start Date, Purchaser shall use Commercially Reasonable Efforts to schedule and accept
delivery of all Gas offered for sale by Seller, however neither party shall have an obligation to sell or accept such Gas. 
 Section 3.2 Consequences of Delays. 
 (a) If Seller does not reasonably expect to achieve the Commercial
Operation Date by September 1, 2009, Seller shall provide prompt written notice to Purchaser of such expectation, the expected period of delay and the cause of the delay. Seller’s estimate of the expected period of delay shall be based on
the best information obtained by Seller, and Seller shall promptly notify Purchaser of any expected changes in such period. Seller shall reimburse Purchaser for any Transportation Costs associated with any change in the anticipated Commercial
Operation Date as provided in this Section 3.2; however Eagle will use Commercially Reasonable Efforts to mitigate the cost of any Transportation Costs incurred in connection with this Agreement. 
 (b) Notwithstanding any provision in this Agreement to the contrary, the Seller shall not be responsible for delays and any associated requirement for
procuring Replacement Gas or paying Replacement Gas Costs attributable to Force Majeure Events. Nevertheless, either Party may terminate this Agreement if the Commercial Operation Date has not occurred by September 1, 2010. Upon termination
pursuant to this Section 3.2(b), neither Party shall have any further liabilities with respect to this agreement, except with respect to obligations of Purchaser due or accrued prior to such termination and in the case of Seller as set forth in
Article XVI. 
 ARTICLE IV 
 SALE AND PURCHASE OBLIGATIONS 
 Section 4.1 Sale and Purchase of Natural Gas. 
 (a) For every Day throughout the Term of this Agreement, beginning with the Delivery Start Date, and with the exception of periods in which there exists
(i) a Scheduled Maintenance Outage; or (ii) a Force Majeure Event; Seller agrees to sell and deliver at the Delivery Point, and Purchaser agrees to purchase and receive at the Delivery Point, all Gas properly nominated in accordance with
the terms of this Agreement. Sales and purchases of the Monthly Baseload Gas and Daily Firm Gas will be made on a Firm basis pursuant to the provisions of Article VI. For the first six (6) 

  

 12 

 
Months after the Commercial Operation Date, all Gas made available under this Agreement shall be provided from the Daily Firm Quantity or delivered as
Intra-Day Gas based on the nomination protocols of Article VI. 
 (b) The sole and exclusive remedy of the Parties in the event of a breach
of a Firm obligation to deliver or receive Gas under this Agreement shall be the recovery of: (a) the Replacement Gas Costs owed by the Party that fails to deliver or fails to receive Gas as applicable that was nominated and confirmed pursuant
to Firm delivery obligations under article VI; plus (b) any related Transportation costs incurred as a result of the breach of such Firm obligation whether in the nature of the Transportation Costs or any related transportation costs: plus
(c) any penalties, Imbalance Charges, or any such similar costs incurred as a result of a breach of a Firm obligation. 
 (c) Unless
otherwise specifically agreed, title to the Gas shall pass from Seller to Purchaser at the Delivery Point. Seller warrants that it will have the right to convey and will transfer good and merchantable title to all Gas sold hereunder and delivered to
Purchaser, free and clear of all lines, encumbrances, and claims. Except as provided in this section 4.1(c), all other warranties, express or implied, including any warranty of merchantability or of fitness for any particular purpose, are
disclaimed. 
 (d) In addition to the indemnification provisions otherwise set forth in this Agreement, Seller agrees to indemnify Purchaser
and save it harmless from all Claims, from any and all Persons, arising from or out of claims of title, personal injury of property damage from the Gas or other charges thereon which attach before title passes to Purchaser. Purchaser agrees to
indemnify Seller and save it harmless from all Claims, from any and all Persons, arising from or out of claims regarding payment, personal injury, or property damage from the Gas or other charges thereon which attach after title passes to Purchaser.

 Section 4.2 Measurement and Quality of SNG. 
 (a) The unit of quantity measurement for all Gas provided under this Agreement shall be one MMBtu dry. Measurement of Gas quantities hereunder shall be in
accordance with the established procedures of the Transporter which shall be considered the “receiving transporter” for such purposes. 
 (b) All Gas delivered by Seller shall meet the pressure, quality and heat content requirements of the Transporter. In the event that Gas delivered by Seller hereunder fails to conform to the specification of the Transporter
(“Non-Conforming Gas”) and upon notice of such non-conformance by the Transporter, Seller immediately shall exercise Commercially Reasonable Efforts to correct such non-conformity and shall provide to Purchaser an estimate of the duration
and extent of such failure to conform. Seller shall pay any costs incurred by Purchaser and shall pay any costs, liabilities, or penalties charged by Transporter (whether charged to Seller or to Purchaser) as a result of Seller delivering
Non-Conforming Gas. 
  

 13 

 ARTICLE V 
 OPERATION OF THE FACILITY AND THE COMMON FACILITIES 
 Section 5.1 Operation and
Maintenance of the Facility and the Common Facilities. 
 (a) Seller shall operate and maintain or cause the operation and maintenance
of the Facility and Common Facilities in accordance with Prudent Industry Practices and otherwise in accordance with this Agreement. 
 Section 5.2 Scheduled Maintenance. 
 (a) At least (60) days prior to: (i) the anticipated Commercial
Operation Date, and (ii) at least sixty (60) Days prior to the beginning of each subsequent Contract Year, Seller shall submit to Purchaser a proposed schedule for Scheduled Maintenance Outages for the upcoming period. Within ten
(10) Days after Seller has provided to Purchaser the proposed schedule for Scheduled Maintenance Outages, Purchaser may request that Seller re-schedule any such Schedule Maintenance Outage and Seller shall exercise Commercially Reasonable
Efforts to effectuate the requested change in schedule. If the requested changes would result in additional costs to seller, Seller shall notify Purchaser of such additional costs. Upon receipt of the foregoing notification from Seller, if Purchaser
wishes for Seller to proceed with the proposed changed schedule, Purchaser shall so notify Seller and shall reimburse Seller for Seller’s reasonable additional costs as were described in Seller’s notice to Purchaser; otherwise Seller shall
proceed in accordance with the schedule set forth in Seller’s notice hereunder. Seller shall use Commercially Reasonable Efforts to minimize any costs reimbursable by Purchaser under this Section 5.2(a). In addition to the foregoing,
Seller acknowledges that Purchaser will rely on the Scheduled Maintenance Outages for purposes of planning Purchaser’s Gas requirements. Thus, provided that Seller complies with the notice provisions set forth in this Section 5.2(a),
Seller shall not be obligated to provide Replacement Gas or to pay Replacement Gas costs during any period of Scheduled Maintenance Outage. If the period of any Scheduled Maintenance Outage extends beyond the period described in Seller’s notice
to Purchaser describing the nature and duration of the Scheduled Maintenance Outage, then such additional period shall be considered an Unscheduled Maintenance Outage and Seller shall thereafter be obligated to provide Gas consistent with any prior
Firm obligation and Purchaser’s rights to receive Gas during an Unscheduled Maintenance Outage. The obligation to pay Replacement Gas Costs shall not apply to Scheduled Maintenance Outages otherwise during the first six (6) Months after
the Commercial Operation Date. 
 (b) As a result of changing Facility conditions during operation, the Seller may amend the Scheduled
Maintenance Outage schedule at any time by providing at least 30 Days written notice to Purchaser. If an amended schedule for a Scheduled Maintenance Outage is received by the Purchaser, the Purchaser may then request re-scheduling as per
Section 5.2 (a). 
  

 14 

 (c) The years in which a major maintenance event shall occur with respect to the Facility shall be
determined by the Seller. Notwithstanding the foregoing or any provision herein, Seller shall use Commercially Reasonably Efforts to complete any Scheduled Maintenance Outage in a timely manner and place the Facility back into full operation as soon
as possible. 
 Section 5.3 Schedule Information. Seller shall provide to Purchaser the Commencement of Construction date
and Monthly reports on the status of construction through the final Commercial Operation Date. 
 Section 5.4 Permits; Compliance
with Laws. 
 (a) Subject to the right of Contest, Seller shall, at its expense, acquire and maintain in effect, from any and all
Government Agencies with jurisdiction over Seller and/or the Facility, all Governmental Approvals, in each case necessary (i) for the construction, operation and maintenance of the Facility in accordance with this Agreement, and (ii) to
permit the Facility to operate and perform its obligations as contemplated by this Agreement. 
 (b) Subject to the right of Contest, Seller
shall, at all times, comply with all Laws and Governmental Approvals applicable to it and/or to the Facility, including all environmental laws in effect. 
 (c) Subject to the right of Contest, Purchaser shall, at all times, comply with all Laws necessary for Purchaser to perform its obligations under this Agreement. 
 Section 5.5 Operation Procedures. Purchaser and Sellers shall develop written interface operating procedures no later than ninety
(90) Days before the anticipated Commercial Operation Date. The operating procedures shall establish the protocols under which the Parties shall perform their respective responsibilities under this Agreement and shall include but shall not
necessarily be limited to, the method of Day-to-Day communications, key personnel lists for Seller and Purchaser, and outage reporting. 
 Section 5.6 Exclusive. Unless the Purchaser fails to accept Gas produced from the Facility, Seller shall not sell, deliver or offer any portion of the Gas output of the Facility to any Person other than Purchaser during
the Term. Notwithstanding the foregoing, Seller may make sales of Gas from the Facility to third parties where such sales are a necessary part of the ongoing administration of Gas supplies. Thus, by way of example, but not limitation, Seller may
provide Gas from the Facility to third parties where Seller has made arrangement for Gas to be delivered from an alternate source. 
  

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 ARTICLE VI 
 NOMINATION AND DELIVERY 
 Section 6.1 Nomination. The nomination and scheduling of
Gas from the Facility shall be consistent with the design limits, Prudent Industry Practices and equipment manufacturers’ then current guidelines and recommendations generally applicable to such equipment. The Facility shall however be fully
capable of providing a quantity of Gas up to the Facility Capacity during each Day of the Term and Seller shall operate the Facility so as to deliver the Monthly Baseload Quantity or the Daily Firm Quantity as the case may be subject only to Force
Majeure Events and Scheduled Maintenance Outages. In connection with the foregoing, the Parties acknowledge that it is the fundamental basis of their arrangement, that Seller make available to Purchaser and that Purchaser take all Gas produced by
the Facility, subject to the nominations protocols set forth in this Article VI and the limitations in Section 5.6, and that Purchaser accept delivery and nominate the Gas made available by Seller, during each Day of the Term, subject only to
Force Majeure Events and Scheduled Maintenance Outages. Where the Facility produces Gas that is not nominated as part of a Monthly Baseload Quantity or a Daily Firm Quantity, such Gas shall be deemed to be Intra-Day gas. The Parties acknowledge that
there may be a number of circumstances where Gas is delivered as Intra-Day Gas. These circumstances include, but are not necessarily limited to the delivery of Gas on an intra-Day basis following a return to operation of the Facility after the
expiration of a Force Majeure Event, or the completion of a Scheduled Maintenance Outage. 
 Section 6.2 Nomination
Process. 
 (a) The Parties shall coordinate their nomination activities, giving sufficient time to meet the deadlines of the affected
Transporter(s). Each Party shall give the other Party timely prior notice, sufficient to meet the requirements of all Transporter(s) involved in transactions under this Agreement, of the quantities of Gas to be delivered and purchased each Day.
Should either Party become aware that actual deliveries at the Delivery Point(s) are greater or lesser than the quantity of Gas scheduled for delivery with the Transporter, such Party shall promptly notify the other Party and make Commercially
Reasonable efforts to avoid the imposition of any Imbalance Charges. 
 (b) Seller
shall notify Purchaser each Month of the Term of the total amount of Gas that Seller has available for delivery during any upcoming Month of the Term (“Monthly Availability Plan”). The Monthly Availability Plan shall be communicated
to Purchaser by written notice not later than 9:00 a.m. Eastern Prevailing Time on the sixth (6th) Business Day
preceding the first Day of the Month for which such nomination applies and include volumes designated as Monthly Baseload Quantity or Seller’s anticipated Daily Firm Quantity. The Monthly Availability Plan may identify certain volumes as part
of the Monthly Baseload Quantity and may identify certain volumes as part of the Daily Firm Quantity for the same Month. 
  

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 (c) Once the Monthly Baseload Quantity for a particular Month is identified in the Monthly Availability
Plan, the Monthly Baseload Quantity shall constitute a Firm obligation of Seller to deliver the quantity specified by Seller in the Monthly Availability Plan each Day for such Month and shall constitute a Firm obligation of Purchaser to purchase and
receive the Monthly Baseload Quantity during each Day of the same Month. Thus, on each Day of the Month for which the Monthly Baseload Quantity is established, Seller shall deliver the Monthly Baseload Quantity to Purchaser and Purchaser shall
accept the Monthly Baseload Quantity from Seller. 
 (d) If as part of any Monthly Availability Plan, Seller designates certain volumes to be
treated as part of a Daily Firm Quantity for that Month, then the following Daily protocols for nominating deliveries of Gas from the Facility to Purchaser shall apply. On each Day of the Month in which a Daily Firm Quantity has been designated in
the Monthly Availability Plan, Seller will also advise Purchaser on a Daily basis of the continued availability of the Daily Firm Quantity, if any, that Seller will make available to Purchaser for an upcoming Day of such Month. Notice of the
available Daily Firm Quantity must be communicated to Purchaser by Seller in writing or by telephone not later than 8:30 a.m. Eastern Prevailing Time on the Business Day preceding the Day or Days (including non-Business Days), for which the
identified Daily Firm Quantity is available. Once the aforementioned notice received, Purchaser shall nominate the Daily Firm Quantity for an upcoming Day and such volume shall then constitute a Firm obligation of Seller to deliver the nominated
Daily Firm Quantity and a Firm obligation of Purchaser to purchase and receive the nominated Daily Firm Quantity. Any portion of the Daily Firm Quantity that is not confirmed in accordance with the foregoing, shall be deemed to be Intra-Day Gas.

 (e) In addition to the foregoing, where Gas is produced from the Facility that was not previously committed as part of the Daily Firm
Quantity or the Monthly Baseload Quantity, such Gas shall be delivered to Purchaser as Intra-Day Gas. All Intra-Day Gas shall be delivered and received on an Interruptible, as-available basis. 
 (f) Seller may or may not identify a Monthly Baseload Quantity for any Month of the Term. However, where no Monthly Baseload Quantity is identified in
the Monthly Availability Plan, Seller and Purchaser shall nevertheless observe the nomination protocols set forth in Section 6.2(d) relating to the Daily Firm Quantity. Consistent with the basis for the establishment of the Monthly Availability
Plan, and the commitment that Gas be made available to Purchaser at all times during the Term, Seller may not operate the Facility during periods where the Monthly Availability Plan has indicated that the Facility will be unavailable. 
 (g) Where there exists an Unscheduled Maintenance Outage of the Facility, and for the sole purpose of establishing the basis upon which Replacement Gas
Costs are calculated, it shall be deemed that for each Day of the Unscheduled Maintenance Outage, Seller has committed a quantity of Gas to Purchaser as Daily Firm Gas equal to the Facility Capacity except for the Day in which the Facility returns
to service, in which case the Gas actually produced by the Facility shall be deemed to be Intra-Day Gas. 
  

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 ARTICLE VII 
 INTERCONNECTION, RISK OF LOSS, IMBALANCES 
 Section 7.1 Interconnection Point.
Seller shall deliver all Gas provided under this Agreement to the Interconnection Point. Seller shall deliver all Replacement Gas to the Replacement Gas Delivery Points or at such other points as may be mutually agreed upon by Purchaser and Seller.
Seller shall have the responsibility, at its expense, to deliver Gas from the Facility to the Interconnection Point. At the request of Seller, Purchaser shall use reasonable efforts to assist Seller in its negotiations with the applicable
transportation provider to allow interconnection of the Facility with the transporter’s system. Seller and Purchaser shall develop a strategy as needed to pursue the applicable interconnection agreements, undertake negotiations and ensure that
the Facility has the capabilities to interconnect with the underlying gas transportation system at the Interconnection Point. 
 Section 7.2 Risk of Loss. 
 (a) As between the Parties, Seller shall be deemed to be exclusive control (and
responsible for any property damages or injuries to Persons caused thereby) of all Gas delivered hereunder prior to the Delivery Point or the Replacement Gas Delivery Point (as applicable) and Purchaser shall be deemed to be in exclusive control
(and responsible for any property damages or injuries to persons caused thereby) of the Gas delivered hereunder at and from the Delivery Point or the Replacement Gas Delivery Point (as applicable). 
 (b) The Parties shall use Commercially Reasonable Efforts to avoid imposition of any Imbalance Charges. If Purchaser or Seller receives an invoice from a
Transporter that includes Imbalance Charges, the Parties shall determine the validity as well as the cause of such Imbalance Charges. If the Imbalance Charges were incurred as a result of Purchaser’s receipt of quantities of Gas greater than or
less than the quantity of Gas confirmed by Seller and Purchaser as verified with the Transporter, then Purchaser shall pay for such Imbalance Charges or reimburse Seller for such Imbalance Charges paid by Seller. If the Imbalance Charges were
incurred as a result of Seller’s delivery of quantities of Gas greater than or less than the amount of Gas confirmed by Purchaser and Transporter, then Seller shall pay for such Imbalance Charges or reimburse Purchaser for such Imbalance
Charges paid by Purchaser. 
 ARTICLE VIII 
 FEEDSTOCK ARRANGEMENTS 
 Section 8.1 Feedstock Delivery Facilities. 
 (a) At no cost to Purchaser and to the extent not otherwise comprising a part of the Facility, Seller shall obtain, or cause to be obtained, all

  

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Governmental Approvals for the ownership, construction, operation and maintenance of the Feedstock Delivery Facilities; (ii) construct, or cause to be
constructed, the Feedstock Delivery Facilities in a timely manner, in accordance with applicable Law, Government Approvals and Prudent Industry Practices and with a capacity sufficient to deliver Feedstock to the Facility to meet Seller’s Gas
delivery obligations under this Agreement; and (iii) operate and maintain, or cause to be operated and maintained, the Feedstock Delivery Facilities in accordance with applicable Law and Government Approvals, in each case, subject to the right
of Contest. 
 (b) Seller shall obtain transportation services (either through ownership or through contract with a third party owner) for
the delivery of Feedstock in sufficient quantities to operate the Facility at least at a level necessary to meet Seller’s Gas delivery obligations under this Agreement. 
 ARTICLE IX 
 CONDITIONS SUBSEQUENT TO EFFECTIVENESS OF AGREEMENT

 Section 9.1 Condition Subsequent. The obligation of the Parties to consummate the transactions contemplated by this
Agreement shall be subject to fulfillment of the following conditions on or before the dates specified in this Section 9.1, unless waived or amended or amended in writing by the Parties: 
 (a) The Financial Closing Date shall be achieved by Seller on or before August 31, 2007. In the event that the Financial Closing Date does not occur
by August 31, 2007, either Purchaser or Seller may terminate this Agreement without liability, by giving written notice thereof to the other. Upon receipt of such notice by the other Party, this Agreement shall terminate and be of no further
force and effect, and neither Party shall have any further obligations or liability hereunder. Seller shall provide Purchaser with written Monthly updates as to the status of the Financial Closing Date from the Effective Date through the expected
Financial Closing Date. The Monthly updates shall specify the anticipated Financial Closing Date. On June 30, 2007 and on the first of each Month thereafter until December 1, 2007. Seller will also provide updates to Purchaser as to the
status of financial closing. The foregoing notices shall provide updates as to the status of financial closing, the anticipated Financial Closing Date and any remaining items to be completed as a condition to financial closing. 
 (b) Notwithstanding the provisions of Section 9.1(a), if Seller terminates this Agreement in accordance with Section 9.1(a), and subsequently
reaches the Financial Closing Date on or before November 30, 2007, or Seller elects to develop the Facility or any other similar on the Facility Site on or before November 30, 2007, then this Agreement shall, at Purchaser’s election,
be deemed to be reinstated and the obligations of Seller and Purchaser revived in accordance with the terms of this Agreement. If Seller fails to achieve financial closing on or before November 30, 2007, then this Agreement shall remain subject
to any prior termination notice provided by Seller pursuant to Section 9.1(a). 
  

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 (c) Purchaser shall have executed a contract for firm transportation with the Midwestern Gas Pipeline
Company on or before February 1, 2008, on terms suitable to Purchaser and Seller, including, but not limited to rate, the timing of demand charges, expense mitigation, overall length of term and the terms of assignment to any third party
including Seller. If a contract as described in this Section 9.1(c) is not executed on or before February 1, 2008, then either Purchaser or Seller may terminate this Agreement without liability, by giving written notice thereof to the
other. Upon receipt of such notice by the other Party, this Agreement shall terminate and be of no further force and effect, and neither Party shall have any further obligations or liability hereunder. 
 ARTICLE X 
 BILLING AND PAYMENT

 Section 10.1 Gas Payments. Except as expressly provided herein, for each Billing Period, Purchaser shall pay to
Seller a Gas Payment in an amount equal to the product of (a) the total amount of Monthly Baseload Gas, the total amount of Daily Firm Gas, and the total amount of Intra-Day Gas delivered to and actually received by Purchaser; times (b) the
respective Contract Prices corresponding to the Monthly Baseload Gas, Daily Firm Gas, and Intra-Day Gas. In addition to the foregoing, the Monthly Gas payment shall be automatically adjusted during any Contract Year in which Seller’s obligation
to pay Replacement Gas Costs reaches the Yearly LD Limit. If at any time during a Contract Year, Seller’s aggregate obligation to pay Replacement Gas Costs reaches the Yearly LD Limit (regardless of actual payment), then as of the date that
such Yearly LD Limit is achieved, the Contract Price for all deliveries of Gas that occur on such date and thereafter until the end of the same Contract year shall be the Daily Index Price minus $0.10 per MMBtu. Upon commencement of the next
succeeding Contract Year following the adjustment to the Contract Price as provided in the preceding sentence, the Gas Payment shall once again be calculated based on the Contract Price corresponding to the particular nature of delivered Gas as set
forth in the first sentence of this Section 10.1. 
 Section 10.2 Adjustment for Transportation. For each Billing
Period, the Gas payment shall be adjusted by an amount equal to the total Transportation Costs charged or credited to Purchaser for the same Billing period. Seller’s obligation to reimburse Purchaser for the Transportation Costs shall not be
dependent upon actual deliveries of Gas. Thus, Seller shall reimburse Purchaser for all Transportation Costs incurred by Purchaser where deliveries of Gas are interrupted due to a Force Majeure Event, Scheduled Maintenance Outage, Unscheduled
Maintenance Outage, Forced Outage, or any other circumstance, it being understood that Seller’s obligation to reimburse Purchaser for Transportation Costs is absolute for the Term of this Agreement. Purchaser shall provide, upon the request of
Seller, a detailed breakdown of all Transportation Costs 

  

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incurred by Purchaser pertaining to the Monthly Baseload Gas, the Daily Firm Gas, and any Intra-Day Gas delivered to Purchaser during a particular Billing
Period. Purchaser shall not be obligated to Contest any Transportation Costs incurred; however, Purchaser may undertake a Contest of the Transportation Costs in Purchaser’s reasonable discretion. If any Contest by Purchaser of the
Transportation Costs results in a refund to Purchaser, Purchaser shall return the amount of any such refund to Seller within thirty (30) Days of Purchaser’s receipt of such refund from the Transporter. 
 Section 10.3 Billing and Payment. 
 (a) Seller shall prepare and render to Purchaser within five (5) Business Days after the end of each Billing Period a statement detailing Seller’s calculation of the payments due to Seller for such Billing Period. If the actual
quantity delivered is not known by the billing date, billing will be prepared based on the quantity of Monthly Baseload Gas and Daily Firm Gas nominated in accordance with Section 6.2 and otherwise based on Seller’s reasonable estimate of
the amount of Intra-Day Gas produced by the Facility during the Month. The invoiced quantity will then be adjusted to the actual quantity in the statement for the next following Billing Period or as soon thereafter as actual delivery information is
available. 
 (b) Subject to the netting provisions of this Agreement, Purchaser shall
remit the amount due under Section 10.3(a), in immediately available funds to the account specified from time to time by Seller plus or minus the amount of any Transportation Costs incurred by Purchaser, on or before the later of the
25th Day of Month following Month of delivery; or ten (10) Days after receipt of the invoice by Purchaser
(provided that if the Payment Date is not a Business Day, payment is due on the next Business Day following that date) (the “Payment Date”). In the event any payments are due Purchaser hereunder, payment to Purchaser shall be made
in accordance with this Section 10.1(b). 
 (c) In the event payments become due from either Party for Replacement Gas Costs, the
performing Party may submit an invoice to the nonperforming Party for payment setting forth the basis upon which the Replacement Gas Costs were calculated. Payment from the nonperforming Party will be due in accordance with Section 10.3
(b) above. 
 (d) If either Party disputes the accuracy of an invoice, the Parties shall use their best efforts to resolve the dispute
in accordance with Section 17.1. Any adjustments which the Parties may subsequently agree to make with respect to any such billing dispute shall be made by a credit or additional charge on the next invoice rendered. If the Parties are unable to
resolve the dispute in this manner, any amounts remaining in dispute as of the due date for such Billing Period or thereafter on subsequent bills for the same reason may be withheld pending final resolution of the dispute in accordance with
Section 17.2, provided that any undisputed amount shall be promptly paid; and provided, further, that amounts paid as a result of the settlement or other resolution of a dispute shall be paid with interest thereon from the original due date as
provided in Section 10.5. 
  

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 Section 10.4 Other Payments. Subject to the Parties’ right to review payments made
hereunder, any amounts, other than those specified in Section 10.1, due to either Party under this Agreement shall be paid or objected to within twenty (20) Days following receipt by the other Party of an itemized invoice from the Party to
whom such amounts are due setting forth, in reasonable detail, the basis for such payment. Payments made hereunder shall, for a period of not longer than one year, remain subject to adjustment based on billing adjustments by third parties which
would affect payment obligations of either Party. 
 Section 10.5 Currency of Payment and Netting. Notwithstanding
anything contained in this Agreement, all payments to be made by either Party under this Agreement shall be made in Dollars by wire transfer immediately available funds. The Parties shall net all undisputed amounts due and owing, and/or past due,
arising under this Agreement such that Party owing the greater amount shall make a single payment of the net amount to the other Party in accordance with Section 10.1. 
 Section 10.6 Records. Either Party shall have the right, upon reasonable prior written notice to the other Party, to examine and/or
make copies of the records and data of the other Party relating to this Agreement at any time during normal business hours during the period such records and data are required to be maintained. All such records and data shall be maintained for a
minimum of three (3) years after the creation of such record of data. If any such examination reveals any inaccuracy in any statement prior to the lapse of two years from the rendition thereof, the Party discovering such inaccuracy shall
promptly deliver a statement setting forth in reasonable detail the basis and amount of the proposed adjustment. Any such statement shall be due and payable and subject to dispute in the same manner provided for the Monthly bills under this Article
X; provided that, the amount due shall be adjusted to reflect accrued interest from the original due date at the Default Rate; and provided further that this provision of this Agreement will survive any termination of the Agreement for a period of
two (2) years from the date of such termination for the purpose of such statement and payment objections. 
 Section 10.7
Default Interest. If any payment due from either Party under this Agreement shall not be paid when due, including, without limitation, any withheld disputed amounts determined to be due such Party, there shall be due and payable to the
other Party compensation thereon, calculated at a rate equal to the lesser of two percent (2%) over the prime rate announced from time to time by The Chase Manhattan Bank (or its successor bank) or the highest rate allowable by Law (the
“Default Rate”) as it changes from time to time from the date on which such payment became overdue to and until such payment is paid in full. 
  

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 ARTICLE XI 
 REPRESENTATIONS AND WARRANTIES; 
 ADDITIONAL COVENANTS OF SELLER AND PURCHASER 
 Section 11.1 Representations and Warranties of Seller. Seller represents and warrants to Purchaser as of the Effective Date as
follows: 
 (a) Seller is a limited liability company duly organized, validly existing and in good standing under the Laws of the state of
Delaware and is qualified and in good standing in each other jurisdiction where the failure to qualify would have a material adverse effect upon Seller’s performance under this Agreement, and Seller has the full legal right power and authority
to execute, deliver and perform its obligations under this Agreement. 
 (b) The execution and delivery of this Agreement have been and
performance of its obligations under this Agreement by Seller have been or will be duly authorized by all necessary member action, and do not and shall not require any consent or approval of Seller’s members which has not been obtained or as to
performance, such consent or approval as shall be obtained as necessary for such performance, and each such consent and approval that have been obtained is in full force and effect. 
 (c) The execution, delivery and performance of its obligations under this Agreement do not: 
 (i) violate any provision of any Law, rule, regulation, order, writ, judgment, injunction, decree, determination, or award having applicability to Seller
or any provision of the organizational documents of Seller, the violation of which could reasonably be expected to have a material adverse on the ability of Seller to perform its obligations under this Agreement, 
 (ii) result in a breach of or constitute a default under any provision of the organizational documents of Seller, 
 (iii) result in a breach of or constitute a default under any agreement relating to the management or affairs of Seller or any indenture or loan or
credit agreement or any other agreement, lease, or instrument to which Seller is a party or by which Seller or its properties or assets may be bound, the breach or default of which could reasonably be expected to have a material adverse effect on
the ability of Seller to perform its obligations under this Agreement, or 
 (iv) result in, or require the creation or imposition of any
mortgage, deed of trust, pledge, Lien, security interest, or other charge or encumbrance of any nature (other than as may be contemplated by this Agreement) upon or with 

  

 23 

 
respect to any of the assets or properties of Seller, the creation or imposition of which could reasonably be expected to have a material adverse effect on
the ability of Seller to perform its obligations under this Agreement. 
 (d) This Agreement constitutes a legal, valid and binding
obligation of Seller and is enforceable against Seller in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar Laws relating to or affecting the rights of creditors generally and
except as the enforceability of this Agreement is subject to the application of general principles of equity (regardless of whether considered in a proceeding in equity or at Law), including, without limitation, the possible unavailability of
specific performance, injunctive relief or any other equitable remedy, and concepts of materiality, reasonableness, good faith and fair dealing. 
 (e) There is no pending or, to the best of Seller’s knowledge, threatened action or proceeding affecting Seller before any court. Government Agency or arbitrator that could reasonably be expected to materially and adversely affect the
financial condition or operations of Seller or the ability of Seller to perform its obligations hereunder , except with respect to Governmental Approvals which are expected to be obtained as required to enable Seller to perform its obligations under
this Agreement, or that purports to affect the legality, validity or enforceability of this Agreement. 
 Section 11.2
Representations and Warranties of Purchaser. Purchaser represents and warrants to Seller as of the Effective Date as follows: 
 (a) Purchaser is a limited partnership duly organized and validly existing and in good standing under the Laws of Texas and has the full legal right, power and authority to execute, deliver and perform its obligations under this Agreement.

 (b) The execution and delivery of this Agreement have been and performance of its obligations under this Agreement by Purchaser have been
or will be duly authorized by all necessary corporate action, and do not and shall not require any consent or approval of Purchaser’s General Partner which have not been obtained or as to performance, such consent or approval as shall be
obtained as necessary for such performance, and each such consent and approval that has been obtained is in full force and effect. 
 (c) The
execution, delivery and performance of its obligations under this Agreement do not: 
 (i) violate any provision of any Law, rule,
regulation, order, writ, judgment, injunction, decree, determination, or award having applicability to Purchaser, the violation of which could reasonably be expected to have a material adverse effect on the ability of Purchaser to perform its
obligations under this Agreement, 
 (ii) result in a breach of or constitute a default under any provisions of the articles of
incorporation or by-laws of Purchaser, 
  

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 (iii) result in a breach of or constitute a default under any agreement relating to the management or
affairs of Purchaser or any indenture or loan or credit agreement or any other agreement, lease, or instrument to which Purchaser is a party or by which Purchaser or its properties or assets may be bound, the breach or default of which could
reasonably be expected to have a material adverse effect on the ability of Purchaser to perform its obligations under this Agreement, or 
 (iv) result in, or require, the creation or imposition of any mortgage, deed of trust, pledge, Lien, security interest, or other charge or encumbrance of any nature (other than as may be contemplated by this Agreement) upon or with respect
to any of the assets or properties of Purchaser, the creation or imposition of which could reasonably be expected to have a material adverse effect on the ability of Purchaser to perform its obligations under this Agreement. 
 (d) This Agreement constitutes a legal, valid and binding obligation of Purchaser and is enforceable against Purchaser in accordance with its terms,
except as may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar Laws relating to or affecting the rights of creditors generally and except as the enforceability of this Agreement is subject to the application of
general principles of equity (regardless of whether considered in a proceeding in equity or at Law), including, without limitation, the possible unavailability of specific performance, injunctive relief or any other equitable remedy and concepts of
materiality, reasonableness, good faith and fair dealing. 
 (e) There is no pending, or, to the best of Purchaser’s knowledge,
threatened action or proceeding affecting Purchaser before any court, Government Agency or arbitrator that could reasonably be expected to materially and adversely affect the financial condition or operations of Purchaser or the ability of Purchaser
to perform its obligations hereunder, or that purports to affect the legality, validity or enforceability of this Agreement. 
 Section 11.3 Certificates. Each of Purchaser and Seller shall, upon the request of the other Party, deliver or cause to be delivered from time to time to the other Party certifications of its officers, accountants,
engineers or agents as to such matters as either Party may reasonably request in connection with such Parties’ obligations under this Agreement. 
 Section 11.4 Books and Records; Information. Each of Purchaser and Seller shall keep proper books of record and account, in which full and correct entries shall be made of all dealings or
transactions of or in relation to its business and affairs in accordance with GAAP consistently applied. 
  

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 ARTICLE XII 
 TAXES 
 Section 12.1 Taxes and Fees. 
 (a) Seller shall be responsible for the payment of, and the payments to Seller hereunder shall not be subject to adjustment for, Taxes imposed on Seller
and its property. Purchaser shall be responsible for the payment of, and no amount payable by Seller to Purchaser shall be subject to adjustment for Taxes imposed on Purchaser and its property . In addition, Seller shall be responsible for and shall
bear the risk of any Change-in-Law Taxes imposed on Seller, or the Facility. 
 (b) With respect to the Gas deliveries hereunder, Seller
shall pay or cause to be paid all Taxes on or with respect to the Gas prior to the Delivery Point(s). Purchaser shall pay or cause to be paid all Taxes on or with respect to the Gas at the Delivery Point(s) and all Taxes after the Delivery Point(s).
If a Party is required to remit or pay Taxes that are the other Party’s responsibility hereunder, the Party responsible for such Taxes shall promptly reimburse the other Party for such Taxes. Any Party entitled to an exemption from any such
Taxes or charges shall furnish the other Party any necessary documentation thereof. 
 ARTICLE XIII 
 INSURANCE 
 Section 13.1
Insurance Required. Seller shall carry and maintain or cause to be carried and maintained no less than the insurance coverages generally described in Section 13.2, applicable to all operations undertaken by Seller and Seller’s
personnel in the minimum amounts (limits) that are typical of policies procured by third parties that own and operate projects similar to the Facility, and that are otherwise prudent in the context of the ownership and operation of the Facility. The
required insurance coverages shall be in effect not later than the Commencement of Construction on the Facility Site and shall be maintained in effect throughout the Term of this Agreement. 
 Section 13.2 Evidence and Scope of Insurance. 
 (a) Seller shall, no later than ten (10) Days after the required effective date hereunder and thereafter on or before the renewal date of applicable policy, cause each insurer or authorized agent to provide
Purchaser with two original copies of insurance certificates reasonably acceptable to Purchaser evidencing the effectiveness of the insurance coverages required to be maintained. A complete copy of each policy shall be provided to Purchaser upon
request. 
 (b) All such insurance policies shall: 
 (i) name Purchaser as an additional insured (except in the case of worker’s compensation insurance) and shall contain a Contractual Liability Endorsement and a “Cross-Liability” or “Severability of
Interest” Endorsement; 
  

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 (ii) be endorsed to waive any and all Rights of Subrogation against Purchaser and Purchaser’s
officers, directors, affiliates, agents, and provide that Purchaser shall receive from each insurer thirty (30) Days’ prior written notice of non-renewal, cancellation of, or significant reduction in coverage of, any of such policies
(except that such notice period shall be ten (10) Days in case of non-payment or premiums); 
 (iii) be written by one or more
nationally reputable insurance companies authorized to do business in Ohio and be rated A VII or higher by A.M. Best Company or with security otherwise acceptable to Purchaser. 
 (c) All liability insurance policies shall be written on an occurrence basis (unless procured from AEGIS on a claims made basis and, except in the case
of negligence on the part of Purchaser, shall be primary for covered losses, as respects any claims, losses, damages, expenses, or liabilities arising out of this Agreement. Any insurance carried by Purchaser shall be excess of and noncontributory
to insurance afforded by Seller. 
 (d) Any and all premiums and deductibles and/or any other charges due with respect to such policies of
insurance shall be assumed by, for the account of, and at Seller’s sole risk. 
 (e) The insurance certificates shall indicate that the
insurance policies have been endorsed as described above. 
 ARTICLE XIV 
 FORCE MAJEURE EVENT 
 Section 14.1 Force Majeure Event
Defined. 
 (a) As used in this Agreement, “Force Majeure Event” shall mean causes or events that are beyond the
reasonable control of, and without the fault or negligence of, the Party claiming such Force Majeure Event, including, without limitation, acts of God; unusually severe actions of the elements such as floods, hurricanes, or tornadoes; sabotage;
terrorism; war; strikes, lockouts, riots or public disorders; freezing of wells or lines of pipe; and actions or failures to act of any Government Agency (including expropriation, requisition, Change-in-Law) to the extent preventing or delaying the
performance of the Party claiming excuse under this Agreement. 
  

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 (b) Force Majeure Event shall not include: (i) the failure of performance (in the absence of an
event of the type described in Section 14.1 (a)) of third-party suppliers of goods or services, including, without limitation, a defect in the manufacture, design or installation of the Facility, or the ability of a transporter to receive Gas;
(ii) the unavailability of equipment which could reasonably have been avoided by compliance with Commercially reasonable efforts; (iii) changes in market conditions that affect the price of fuel, natural gas, or gasification services;
(iv) any failure to operate or maintain the Facility in compliance with Prudent Industry Practices; (v) the failure to timely apply for or to obtain Governmental Approvals for the construction or operation of the Facility; (vi) a Scheduled
Maintenance Outage; (vii) an Unscheduled Maintenance Outage; or (viii) a Forced Outage. 
 Section 14.2 Applicability of
Force Majeure Event. Neither Party shall be in breach or liable for any delay or failure in its performance under this Agreement to the extent such performance is prevented or delayed due to a Force Majeure Event, provided that:

 (a) the non-performing Party shall give the other Party written notice within forty eight (48) hours of the commencement of the Force
Majeure Event, with details to be supplied within ten (10) Days after the commencement of the Force Majeure Event further describing the particulars of the occurrence of the Force Majeure Event. After such commencement the non-performing party
shall be excused for breach or liability for any delay or failure in its performance hereunder; 
 (b) the delay in performance shall be of
no greater scope and of no longer duration than is directly caused by the Force Majeure Event; 
 (c) the Party whose performance is delayed
or prevented shall proceed with Commercially Reasonable Efforts to overcome the events or circumstances preventing or delaying performance and shall provide weekly written progress reports to the other Party during the period that performance is
delayed or prevented describing actions taken to remedy the consequences of the Force Majuere Event, the schedule for such actions and expected date by which performance shall no longer be affected by the Force Majeure Event; 
 (d) when the performance of the Party claiming the Force Majeure Event is no longer being delayed or prevented, that Party shall give the other Party
written notice to that effect; and 
 (e) except as specifically provided in this Article XIV, a Force Majeure Event shall not excuse any
obligation to make any payments that are otherwise due and payable pursuant to this Agreement. 
 Section 14.3 Other Effects of
Force Majeure Events. 
 (a) If any Force Majeure Event claimed by a Party shall continue 

  

 28 

 
for more than twelve Months from the date of notice provided by such Party in Section 14.2(a), then the other Party may, at any time following the end
of such period, terminate this Agreement upon 30 Days written notice to the affected Party, without further obligation by the terminating Party, except as to payment of any costs and liabilities incurred prior to the effective date of such
termination; provided, such notice of termination must be given during the period that performance continues to be delayed or prevented by the Force Majeure Event. 
 ARTICLE XV 
 TERMINATION AND DEFAULT 
 Section 15.1 Event of Default. 
 (a) The occurrence of any one of the following shall constitute an Event of Default with respect to Seller: 
 (i) Seller shall fail
to make payments for undisputed amounts due under this Agreement to Purchaser within five (5) Business Days after notice from Purchaser that such payment is due; 
 (ii) Seller shall: (a) admit in writing its inability to pay its debts as such debts become due; (b) make a general assignment or an arrangement or composition with or for the benefit of its creditors;
(c) fail to controvert in a timely and appropriate manner, or acquiesce in writing to, any petition filed against such Party under any bankruptcy or similar Law; or (d) take any action for the purpose of effecting any of the foregoing and
Seller shall fail to cure such action or failure within sixty (60) days; 
 (iii) A proceeding or case shall be commenced, without the
application or consent of Seller , in any court of competent jurisdiction, seeking: (a) its liquidation, reorganization of its debts, dissolution or winding-up, or the composition or readjustment of its debts; (b) the appointment of a
receiver, custodian, liquidator or the like of Seller or of all or any substantial part of its assets; or (c) similar relief in respect of Seller under any Law relating to bankruptcy, insolvency, reorganization of its debts, winding-up, or the
composition or adjustment of debt, and such proceeding shall remain in effect, for a period of one hundred twenty (120) days; 
 (iv)
Seller makes an assignment of this Agreement in violation of Section 18.2 unless cured within (30) Days after notice thereof by Purchaser; 
 (v) Any representation made by Seller under Article XI shall be false in any material respect when made, unless cured within thirty (30) Days after notice thereof by Purchaser; or 
 (vi) Seller shall fail to comply with any other material provision of this Agreement (other than the obligation to pay money when due), and such 

  

 29 

 
failure shall continue uncured for thirty (30) Days after notice thereof by Purchaser, provided that if such failure is not capable of being
cured within such period of thirty (30) Days with the exercise of reasonable diligence, then such cure period shall be extended for an additional reasonable period of time (not to exceed 120 Days) so long as Seller is exercising reasonable
diligence to cure such failure. 
 (b) The occurrence of any one of the following shall constitute an Event of Default with respect to
Purchaser: 
 (i) Purchaser shall fail to make payments for undisputed amounts due under this Agreement to Seller within five
(5) Business Days after notice from Seller that such payment is due; 
 (ii) Purchaser shall: (a) admit in writing its inability
to pay its debts as such debts become due; (b) make a general assignment or an arrangement or composition with or for the benefit of its creditors; (c) fail to controvert in a timely and appropriate manner, or acquiesce in writing to, any
petition filed against such Party under any bankruptcy or similar Law; or (d) take any action for the purpose of effecting any of the forgoing and Purchaser shall fail to cure such action or failure within sixty (60) Days; 
 (iii) A proceeding or case shall be commenced, without the application or consent of Purchaser, in any court of competent jurisdiction, seeking:
(a) its liquidation, reorganization of its debt, dissolution or winding up, or composition or readjustment of its debt; (b) the appointment of a receiver, custodian, liquidator or the like of Purchaser or of all or any substantial part of
its assets; or (c) similar relief in respect of Purchaser under any Law relating to bankruptcy, insolvency, reorganization of its debts, winding-up, composition or adjustment of debts, and such proceeding shall remain in effect, for a period of
120 Days; 
 (iv) Seller makes an assignment of this Agreement in violation of Section 18.2 unless cured within thirty (30) Days
after notice thereof by Seller; 
 (v) Any representation made by Purchaser under Article XI shall be false in any material respect when
made, unless cured within (30) Days after notice thereof by Seller; or 
 (vi) Purchaser shall fail to comply with any other material
provision of this Agreement (other than the obligation to pay money when due), and such failure shall continue uncured for thirty (30) Days after notice thereof by Seller, provided that if such failure is not capable of being cured
within such period of thirty (30) Days with the exercise of reasonable diligence, then such cure period shall be extended for an additional reasonable period of time (not to exceed 120 Days) so long as Purchaser is exercising reasonable
diligence to cure such failure. 
 Section 15.2 Remedies for Default. If an Event of Default occurs with respect to a
defaulting Party at any time during the Term, the non-defaulting Party may, for so 

  

 30 

 
long as the Event of Default is continuing pursue any one or more of the following remedies, (i) withhold any payments due in respect of this Agreement;
(ii) terminate this Agreement; and (iii) pursue any other remedies available at Law or in equity except to the extent such remedies are limited or excluded by this Agreement. 
 Section 15.3. Setoff. At its sole option, and without prior notice to the defaulting Party, the non-defaulting Party may in addition
to the remedies set forth above, setoff (i) any amount owed to the non-defaulting Party against any margin or other collateral held by it in connection with any credit support obligation arising under this Agreement; or (ii) any amount
payable to the defaulting Party against any amounts payable by the defaulting Party to the non-defaulting Party under any other agreement or arrangement between the Parties. 
 ARTICLE XVI 
 INDEMNIFICATION AND LIABILITY 
 Section 16.1 Indemnification. 
 Each Party shall indemnify and hold the other Party and its officers, directors, affiliates, agents, employees, contractors and subcontractors, harmless from and against any and all Claims, to the extent caused by the negligence or willful
misconduct of the indemnifying Party or the indemnifying Party’s own officers, directors, affiliates, agents, employees, contractors or subcontractors and to the extent such Claims arise out of or relate to the indemnifying Party’s
performance under this Agreement, in each case except to the extent such Claims are caused by the negligence, willful misconduct, or breach of this Agreement by the indemnified Party or its officers, directors, affiliates, agents, employees,
contractors and subcontractors. In addition, each Party shall each indemnify, defend and hold harmless the other Party from any Claims, and whether or not such Claims result from the negligence or willful misconduct of the indemnifying Party or the
indemnifying Party’s own officers, directors, affiliates, agents, employees, contractors or subcontractors, arising from the Gas that occur when risk of loss of the Gas is vested in the indemnifying Party, in each case except to the extent such
Claims are caused by the negligence, willful misconduct, or breach of this Agreement by the indemnified Party or its officers, directors, affiliates, agents, employees, contractors and subcontractors. The indemnifying Party shall also reimburse the
indemnified Party for any and all legal or other expenses (including attorney’s fees) reasonably incurred by the indemnified Party in connection with Claims subject to this Section 16.1. 
 Section 16.2 Fines. 
 (a) Any
fines, penalties or other costs incurred by either Party or such Party’s agents, employees or subcontractors for non-compliance by such Party, its agents, employees or subcontractors with the requirements of any Laws or Governmental Approvals
shall not be reimbursed by the other Party but shall be the sole responsibility of such non-complying Party. 
  

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 (b) If such fines, penalties or other costs are assesses against Purchaser by any Government Agency or
court of competent jurisdiction due solely to the non-compliance by Seller with any Laws or Governmental Approvals, Seller shall indemnify and hold harmless Purchaser against any and all losses, liabilities, damages and claims suffered or incurred
because of the failure of Seller to comply therewith. Seller shall also reimburse Purchaser for any and all legal or other expenses (including attorneys’ fees) reasonably incurred by Purchaser in connection with such losses, liabilities,
damages and claims. 
 (c) If such fines, penalties or other costs are assessed against Seller by any Government Agency or court of competent
jurisdiction due solely to the non-compliance by Purchaser with any Laws or Governmental Approvals, Purchaser shall indemnify and hold harmless Seller against any and all losses, liabilities, damages and claims suffered or incurred because of the
failure of Purchaser to comply therewith. Purchaser shall also reimburse Seller any and all legal or other expenses (including attorneys’ fees) reasonably incurred by Seller in connection with such losses, liabilities, damages and claims.

 Section 16.3 Limitations of Liability, Remedies and Damages. 
 (a) Each Party acknowledges and agrees that in no event shall any partner, shareholder, owner, officer, director, employee, or affiliate of either Party
be personally liable to the other Party for any payments, obligations, or performance due under this Agreement or any breach or failure of performance of either Party and the sole recourse for payment or performance of the obligations under this
Agreement shall be against Seller or Purchaser and each of their respective assets and not against any other Person, except for such liability as expressly assumed by an assignee pursuant to an assignment of this Agreement in accordance with the
terms hereof. 
 (b) Notwithstanding any provision in this Agreement to the contrary, each of Seller’s and Purchaser’s respective
obligation to pay Replacement Gas Costs shall be limited to a maximum of [*] per Contract Year (the “Yearly LD Limit”). Once a Party has paid Replacement Gas Costs equal to the Yearly LD Limit, such Party’s obligation to pay
Replacement Gas Costs thereafter for the remainder of the same Contract Year shall be suspended. However, if the obligation of Seller to pay Replacement Gas Costs during any Contract Year reaches the Yearly LD Limit, then the provisions of
Section 10.1 shall apply. 
 (c) Notwithstanding any provision in this Agreement to the contrary, the total aggregate liability of
either Party hereunder, no matter how arising, shall be limited to [*]. 
 (d) THE PAYMENT, EXPRESS REMEDY OR MEASURE OF DAMAGES SET FORTH IN
THE VARIOUS SECTIONS OF THIS AGREEMENT 
  

					
	 [*]
	 	=	 	Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the
Securities Act of 1933, as amended.

  

 32 

 
SHALL BE THE SOLE AND EXCLUSIVE REMEDY WITH RESPECT TO SUCH SECTIONS. EACH PARTY’S LIABILITY SHALL BE LIMITED AS SET FORTH IN SUCH PROVISION AND ALL
OTHER REMEDIES OR DAMAGES AT LAW OR IN EQUITY ARE WAIVED. UNLESS EXPRESSLY PROVIDED IN THIS AGREEMENT. NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR CONSEQUENTIAL, INCIDENTAL, PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES SUFFERED BY THAT PARTY OR BY ANY
CUSTOMER OR ANY PURCHASER OF THAT PARTY, LOST PROFITS OR OTHER BUSINESS INTERRUPTION DAMAGES, BY STATUTE, IN TORT OR CONTRACT, UNDER ANY INDEMNITY PROVISION OR OTHERWISE; PROVIDED THAT THE FOREGOING SHALL NOT LIMIT DAMAGES FOR BREACH BY
SELLER BASED ON THE INCREASE, IF ANY, IN PURCHASER’S COST OF OBTAINING REPLACEMENT GAS FROM ANOTHER SOURCE (WHETHER OR NOT SUCH REPLACEMENT GAS IS ACTUALLY PURCHASED BY PURCHASER) OVER THE AMOUNT WHICH WOULD BE PAYABLE BY PURCHASER UNDER THIS
AGREEMENT WITH RESPECT TO SUCH GAS NOR LIMIT DAMAGES FOR BREACH BY PURCHASER BASED ON THE REDUCTION, IF ANY, IN PAYMENTS TO SELLER FROM THE SALE OF GAS FROM THE FACILITY ARISING OUT OF SUCH BREACH. IT IS THE INTENT OF THE PARTIES THAT THE
LIMITATIONS HEREIN IMPOSED ON REMEDIES AND THE MEASURE OF DAMAGES BE WITHOUT REGARD TO THE CAUSE OR CAUSES RELATED THERETO, INCLUDING, WITHOUT LIMITATION, THE NEGLIGENCE OF ANY PARTY, WHETHER SUCH NEGLIGENCE BE SOLE, JOINT OR CONCURRENT, OR ACTIVE
OR PASSIVE. TO THE EXTENT ANY DAMAGES REQUIRED TO BE PAID HEREUNDER ARE LIQUIDATED, THE PARTIES ACKNOWLEDGE THAT THE DAMAGES ARE DIFFICULT OR IMPOSSIBLE TO DETERMINE, OTHERWISE OBTAINING AN ADEQUATE REMEDY IS INCONVENIENT AND THE LIQUIDATED DAMAGES
CONSTITUTE A REASONABLE APPROXIMATION OF THE HARM OR LOSS. 
 (e) The provisions of this Article XVI shall survive the termination of this
Agreement. 
 ARTICLE XVII 
 DISPUTE RESOLUTION 
 Section 17.1 Senior Officers. 
 (a) Each of Seller and Purchaser shall designate in writing to the other Party a representative who shall be authorized to resolve any dispute arising
under this Agreement in an equitable manner and, unless otherwise expressly provided herein, to exercise the authority of such Party to make decisions by mutual agreement. 
 (b) If such designated representatives are unable to resolve a dispute 

  

 33 

 
under this Agreement, such dispute shall be referred by each Party’s representatives, respectively, to a senior officer designated by Seller and a
senior officer designated by Purchaser for resolution upon five (5) Days’ written notice from either Party. 
 (c) The Parties
hereto agree (i) to attempt to resolve all disputes arising hereunder promptly, equitably and in a good faith manner; and (ii) to provide each other with reasonable access during normal business hours to any and all non-privileged records,
information and data pertaining to any such dispute. 
 Section 17.2 Further Actions. If, following the above attempts to
resolve any dispute arising under this Agreement, the Parties remain unable to resolve such dispute, either Party may pursue any remedies available at Law or in equity consistent with, and subject to the terms of this Agreement. 
 ARTICLE XVIII 
 MISCELLANEOUS

 Section 18.1 Prudent Industry Practices. All actions required or taken by either Party under this Agreement shall
be consistent with Prudent Industry Practices. 
 Section 18.2 Assignment. 
 (a) Subject to Section 18.2(b), neither this Agreement, nor any of the rights or obligations hereunder, may be assigned, transferred or delegated by
either Party without the express prior written consent of the other Party, which shall not be unreasonably withheld. 
 (b) Purchaser agrees
that (i) Seller may assign, mortgage, hypothecate, pledge or otherwise encumber all or any portion of Seller’s interest in and to this Agreement in favor of any Financing Party and its successors and assigns, and (ii) any such
Financing Party may assign such interest in and to this Agreement to any subsequent assignee in connection with the sale, transfer or exchange of its rights under this Agreement or for the purpose of operating the Facility pursuant to such
assignment upon and after the exercise of its rights and enforcement of its remedies against the Facility under any deed of trust or other security instrument creating a Lien in its favor. Each of the Parties agrees to execute such documents as
reasonably may be requested by any such Financing Party or subsequent assignee to evidence and acknowledge its consent and the effectiveness of any such assignment or Lien. In connection therewith, Purchaser agrees to furnish to the Financing
Parties such written information, certificates, opinions, affidavits and other like documents as Seller may reasonably request. In addition, Purchaser shall promptly execute any additional documents, as may be mutually agreed upon in form and
substance, that is reasonably requested by the Financing Parties. 
  

 34 

 Section 18.3 Notices. Except as otherwise specified in this Agreement, any notice,
demand for information or documents required or authorized by this Agreement to be given to a Party shall be given in writing and shall be sufficiently given if delivered by overnight mail, overnight courier or hand delivered against written
receipt, or if transmitted and received by facsimile transmission addressed as set forth below, or if sent to such Party by overnight mail, overnight courier or hand delivery to such other address as such Party may designate for itself by notice
given in accordance with this Section 18.3. Any such notice shall be effective only upon actual delivery or receipt thereof. All notices given by telex or facsimile shall be confirmed in writing, delivered or sent as aforesaid, but the failure
to so confirm shall not vitiate the original notice. The address for the delivery of notices and bills to each Party and the respective telephone and facsimile numbers are as follows: 
 If to Purchaser: 
 Eagle Energy Partners I.
L.P. 
 7904 N. Sam Houston Pkwy., Suite 200 
 Houston, Texas 77064 
 Attn: Contract Administration 
 Phone: 281-781-0333 
 Fax: 281-781-0360

 With a copy to: 
 Eagle Energy
Partners I, L.P. 
 7904 N. Sam Houston Pkwy., Suite 200 
 Houston, Texas 77064 
 Attn: General Counsel 
 Phone: 281-653-5811 
 Fax: 281-781-0360

 If to Seller: 
 SNG Export,
LLC 
 312 Walnut Street, Suite 2300 
 Cincinnati, Ohio 45202 
 Attn: President 
 Phone: 513.621.0077 
 Fax: 513.621.5947 
 Section 18.4 Choice of Law. This Agreement shall be governed by, and construed in accordance with, the Law of the State of Texas,
exclusive of conflicts of Laws provisions. 
 Section 18.5 UCC. Except as otherwise provided for in this Agreement, the
provisions of the Uniform Commercial Code (the “UCC”) of the state whose Laws shall 

  

 35 

 
govern this Agreement shall be deemed to apply to this Agreement and natural gas shall be deemed to be a “good” for purposes of the UCC. EXCEPT AS
EXPRESSLY SET FORTH HEREIN, THE SELLING PARTY EXPRESSLY NEGATES ANY OTHER REPRESENTATION OR WARRANTY, WRITTEN OR ORAL, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY REPRESENTATION OR WARRANTY WITH RESPECT TO CONFORMITY TO MODELS OR SAMPLES,
MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. 
 Section 18.6 Entire Agreement. This Agreement constitutes the
entire understanding between the Parties and supersedes any and all previous understandings or agreements between the Parties with respect to the subject matter hereof. This Agreement shall be binding upon and inure to the benefit of the Parties and
their respective successors and assigns. 
 Section 18.7 Waiver. Any term or condition of this Agreement may be waived at
any time by the Party hereto that is entitled to the benefit thereof, but no such waiver shall be effective unless set forth in a written instrument duly executed by or on behalf of the Party waiving such term or condition. The failure or delay of
either Party to require performance by the other Party of any provision of this Agreement shall not affect its right to require performance of such provision unless and until such performance has been waived by such Party in writing in accordance
with the terms hereof. No waiver by either Party of any term or condition of this Agreement, in any one or more instances, shall be deemed to be or construed as a waiver of the same or any other term or condition of this Agreement on any future
occasion. 
 Section 18.8 Modification or Amendment. No modification, amendment or waiver of any provision of this
Agreement shall be valid unless it is in writing and signed by both Parties. 
 Section 18.9 Severability. If any term or
provision of this Agreement or the application thereof to any Person or circumstance is held to be illegal, invalid or unenforceable under any present or future Law or by any Government Agency, (a) such term or provision shall be fully
severable, (b) this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part hereof, (c) the remaining provisions of this Agreement shall remain in full force and effect
and shall not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom. 
 Section 18.10
Counterparts. This Agreement may be executed in counterparts, all of which shall constitute one agreement binding on both Parties hereto and shall have the same force and effect as an original instrument, notwithstanding that both Parties
may not be signatories to the same original or the same counterpart. 
 Section 18.11 Confidential Information. Any
information provided by either Party to the other Party pursuant to this Agreement and labeled “CONFIDENTIAL” shall be utilized by the receiving Party solely in connection with the purposes of this 

  

 36 

 
Agreement and shall not be disclosed by the receiving Party to any third party, except with the providing Party’s written consent, and upon request of
the providing Party shall be returned thereto. Notwithstanding the above, the Parties acknowledge and agree that such information may be disclosed to actual and prospective Financing Parties, and other third parties, who are bound by a written
confidentially agreement with one of the Parties, as may be necessary for Purchaser and Seller to perform their obligations under this Agreement and the Financing Documents. To the extent that such disclosures are necessary, the Parties also agree
that they shall endeavor in disclosing such information to seek to preserve the confidentiality of such disclosures. This provision shall not prevent either Party from providing any confidential information received from the other Party to any court
in accordance with a proper discovery request or in response to the reasonable request of any Government Agency charged with regulating the disclosing Party’s affairs, provided that, if feasible, the disclosing Party shall give prior
notice to the other Party of such disclosure and, if so requested by such other Party, shall have used all reasonable efforts to oppose or resist the requested disclosure, as appropriate under the circumstances, or to otherwise make such disclosure
pursuant to a protective order or other similar arrangement for confidentiality. 
 Section 18.12 Independent Contractors.
The Parties are independent contractors. Nothing contained herein shall be deemed to create an association, joint venture, partnership or principal/agent relationship between the Parties hereto or to impose any partnership obligation or
liability on either Party. Neither Party shall have any right, power or authority to enter into any agreement or commitment, act on behalf of, or otherwise bind the other Party in any way. 
 Section 18.13 Third Parties. This Agreement is intended solely for the benefit of the Parties. Nothing in this Agreement shall be construed
to create any duty or liability to, or standard of care with reference to, any other Person. 
 Section 18.14 Forward
Contract. The parties agree that the Gas transactions hereunder constitute a “forward contract” within the meaning of the United States Bankruptcy Code and that Purchaser and Seller are each “forward contract merchants”
within the meaning of the United States Bankruptcy Code. 
 [signature page follows] 
  

 37 

 Executed to be Effective as of the 13th day of Feb. 2007. 
  

			
	EAGLE ENERGY PARTNERS I, L.P.
		
	 By:
	 	 /s/ Illegible

	 Name:
	 	Illegible
	 Title:
	 	President

  

			
	SNG EXPORT, LLC
		
	 By:
	 	 /s/ Illegible

	 Name:
	 	Illegible
	 Title:
	 	Commercial Director

  

 38

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