Document:

Exhibit 10.8

	
  CONTRACT

  	
   

  	
  Anamax Energy
  Services, Inc.

  	
   

  	
  Biosource
  America, Inc.

  
	
   

  	
   

  	
  Owner

  	
   

  	
  Design/Builder

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHANGE

  	
   

  	
  2099 Shawano
  Avenue

  	
   

  	
  600 Dewey
  Boulevard

  
	
   

  	
   

  	
  Address

  	
   

  	
  Address

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ORDER

  	
   

  	
  Green Bay,
  Wisconsin 54307

  	
   

  	
  Butte, MT 59701

  

 

	
  CONTRACT CHANGE ORDER NO

  	
   

  	
  One

  	
   

  	
  CONTRACT CHANGE ORDER DATE

  	
  4/26/2006

  
	
  In accordance with Articles 9, 10 and 11 of the
  Standard General Conditions of the Contract between  Owner and Design Builder, Owner and Design
  Builder have agreed to amending the Agreement dated December 28th, 2005 as follows:

  

 

Consider this Change Order as
Authority to perform the following:

The original
contract was executed with an effective date of December 28th, 2005, however due to delays
in the sale of Biosource Fuels, LLC to Biosource America, Inc. the
contract was not in place until February 20th, 2006. Through the execution of this
change order, Design/Builder and Owner agree that the Contract Effective Date
shall be established as February 22nd, 2006.

The Owner has
requested the Design/Builder to provide the design, construction and delivery
of a tank farm required to support the biodiesel refinery. The development of a
scope of work and budget meeting the requirements of the Owner has taken considerable
time to complete and result, a delay in the final site layout and subsequent
permitting has been delayed. The result of these delays has been a loss of 33
calendar days on the proposed schedule. This change order will modify Section 3.02
of the agreement as follows:

The Work is targeted for Substantial Completion as
defined in Article 13.05 of the Standard General Conditions within 333
calendar days of the Effective Date of this Agreement and is to be completed
and ready for final payment in accordance with paragraph 13.08 of the Standard
General Conditions within 45 calendar days after the date of Substantial
Completion.

A detailed listing
of the tank farm scope of services provided as Exhibit A (attached) to
this Change Order One.

	
  

  	
  Amount of This Change Order

  	
   

  	
  $

  	
  4,040,000.00

  

 

The Guaranteed
Maximum Price as stated in Article 4.02 of the Agreement shall be adjusted
as follows:

	
  

  	
  Initial Guaranteed Maximum Price

  	
   

  	
   

  	
  13,250,000.00

  
	
   

  	
  Amount of This Change Order

  	
   

  	
   

  	
  $4,040,000.00

  
	
   

  	
  Revised Guaranteed Maximum Price

  	
   

  	
   

  	
  17,290,000.00

  

 

The Contract Time
as stated in Article 3.02 of the Agreement shall be adjusted as follows:

	
  

  	
  Contract
  Substantial Completion Date

  	
   

  	
   

  	
  20-Dec-06

  
	
   

  	
  Amount
  of Contract Time Adjusted This Change Order

  	
   

  	
   

  	
  33 days

  
	
   

  	
  Revised
  Contract Substantial Completion Date

  	
   

  	
   

  	
  23-Jan-07

  

 

	
  

  	
   

  	
   

  
	
  Submitted
  for Approval By:

  	
   

  	
  Approved
  and Accepted By:

  
	
   

  	
   

  	
   

  
	
  BIOSOURCE
  AMERICA, INC

  	
   

  	
  Anamax Energy
  Services, Inc.

  
	
  Design/Builder

  	
   

  	
  Owner

  
	
   

  	
   

  	
   

  
	
  /s/ Dick Talley

  	
   

  	
  /s/ William F.
  Stern

  
	
  Project
  Manager

  	
   

  	
  Project
  Manager

  
	
   

  	
   

  	
   

  
	
  4/26/06

  	
   

  	
  4/26/06

  
	
  Date

  	
   

  	
  DateExhibit 10.9

MEMORANDUM
OF UNDERSTANDING

INTENT OF
THIS DOCUMENT

·                                          Provide a
baseline upon which three agreements can be authored and executed by both Scott
Petroleum(SPC) and Biosource America (BSA). The three agreements would include
a basic design-build services agreement for the construction of an 20-MGY
biodiesel production facility, and an off take agreement for the purchase of a
minimum of 50% of the biodiesel fuel and 50% of the glycerin produced by the
refinery by biosource America, and a reimbursement for the incremental
infrastructure costs.

·                                          Biosource
America has agreed to reimburse Scott Petroleum for the additional capital
expensed that will be incurred as a result of increasing the plant throughput
capacity from 10 to 20 MGY. The reimbursement shall come in two phases; Phase
One will be a direct cash payment in the amount of $2.5 million and the balance
of $2.7 million plus incremental infrastructure costs will be accounted for by
a payment schedule included as a part of the formula for the off take purchase
of biodiesel from  the biodiesel refinery

TIMEFRAME

·                                          By March 15,
2006, both parties wish to have both agreements in position for final approval
and execution of the Design-Build Agreement. Additionally, both parties wish to
complete the Off-Take Agreement by May 15, 2006 for final approval and
execution.

DESIGN-BUILD
AGREEMENT:

·                                          Biosource
America shall be responsible for the design, fabrication, assembly and startup
of the process technology portion of the refinery only through a turn-key
design-build contract with Scott Petroleum.

·                                          Scott
Petroleum shall be responsible all required improvements to the barge, rail and
truck, tank farm, yard piping and loadout facilities and the site work and
process/admin building-design and construction. A cost share of those
improvements that are required to support the increase plant throughput
capacity shall be negotiated once the economic impacts are determined.

·                                          The design
build agreement would follow the current version of said contract, however the
contract value would be $12,500,000.

·                                          The
difference between the “raw” costs for a 10 MGY and a 20 MGY plant is $5.2
million.

·                                          The
incremental infrastructure costs to increase the output of the plant from a 10
MGY to a 20 MGY facility has yet to be determined.

·                                          Biosource
America will reimburse Scott Petroleum for the additional capital costs of $5.2
million to increase the plant throughput from 10 million gallons per year to 20
million

 1
 

 

                                                gallons
per year by providing Scott Petroleum with a $2.5 million payment as partial
payment of the increased design-build costs to be paid at Substantial
Completion of the Design/Build Contract. The remaining $2.7 million plus the
incremental infrastructure costs will be accounted for through an increased
payment factor in the off take agreement discussed below.

OFF TAKE
AGREEMENT DEAL POINTS:

1.                                       Feedstock
(Raw Materials)

a.                                       Scott
Petroleum to contract with Con Agra to supplement the refinery with feedstock
other than that secured by Scott Petroleum.

2.                                       Scott
Petroleum will be responsible for all processing costs, feedstock costs,
overhead and fixed costs and will provide audited records to establish the
total costs to produce biodiesel, the “Biodiesel Purchase Price”.
The costs include fixed costs, labor, utilities, consumables, maintenance,
administration, tank farm and load out facility labor and other incidentals
required to operate the refinery and produce biodiesel and glycerin.

3.                                       Biosource
America will sign an off take agreement for the procurement of not less than
50% of biodiesel for a period of ten years from the time the plant comes on
line (End of First Quarter 2007) at the agreed upon Biodiesel
Purchase Price as adjusted below.

4.                                       Biodiesel Purchase Price will be adjusted to account for any Producer Tax Incentives
to include the Federal Excise Tax Credit for Small Producers ($0.10 per gallon
for the first 15 MGY) plus any future Tax Credits. These Tax Credits will be
secured by Scott Petroleum and once payment is received, the Credit amount will
be split between Scott Petroleum and Biosource America based upon the ratio of
fuel off take for the period in which the Tax Credit was filed.

5.                                       The
Biodiesel Purchase Price shall be
adjusted to cover a pro-rata share of the National Biodiesel Board Volume dues.

6.                                       Should
SPC not have enough available tax due to use for the Small Producer Tax Credit,
only that portion, if any, shall be split on a prorated basis

7.                                       Scott
Petroleum will permit Biosource America to use its blending facility when
necessary at cost. Biosource intends to market a B99.5 and will apply for the
credit separate from Scott Petroleum.

8.                                       To
account for the balance of the investment (less $2.5 million initial payment)
from Biosource America into the project which will not result in any tangible
property ownership, Scott Petroleum and Biosource America will agree that the
balance of the investment plus the incremental infrastructure costs will be
recognized through a “Premium”
added to the Biodiesel Purchase Price calculated as follows:

 2
 

 

a.                                       The
balance will be amortized on an monthly basis at 7% interest over a period of 2
years. The total of the balance due will be adjusted based upon the outcome of
the infrastructure scope and cost estimates over the two year period.

b.                                      An
example of the final sales price for the biodiesel is shown below:

i.                                          Biodiesel Purchase Price based on
these assumptions:

1.                                       $0.165
composite feedstock price

2.                                       8
pound per gallon yield

3.                                       $0.45
per gallon for processing, overhead and fixed costs. (This costs will need to
be an audited costs structure by Scott Petroleum and is estimated here)

4.                                       Feedstock
costs are therefore $1.32 per gallon

5.                                       NBB
Volume Dues = $82,500 /20,000,000 = $0.004125

6.                                       Premium of $0.1029 based upon a $2.7
million investment

7.                                       $1.32
+ $0.45 + $0.004125 + $0.1029 = $1.877025

c.                                       At
the conclusion of the two year period, the Premium
would be eliminated and BSA’s future Biodiesel Purchase Price
would just include the feedstock, processing costs, NBB volume dues, and
credits would continue to be split according to off take volumes.

d.                                      Both
parties agree that in certain circumstances both SPC and BSA may market the
share or all of the other party’s finished product and/or glycerin for an
agreed marketing fee. This is subject to an expressed mutual agreement on the terms
and conditions of the marketing efforts.

9.                                       BSA &
SPC will make a good-faith effort to negotiate an extension of the Off Take
Agreement at conclusion of the ten year agreement based on prevailing market
conditions

10.                                 In
the event SPC receives a valid, bona fide offer in writing to purchase the
biodiesel facility or expresses intent to sell, BSA will be notified of the
intent to sell. From the date of notification of a bona fide offer in writing
by SPC, BSA shall have 60 days to tender a competitive offer for the biodiesel
facility.

11.                                 In
the event BSA receives a valid, bona fide offer in writing to purchase
BioSource America or expresses intent to sell, SPC will be notified of the
intent to sell. From the date of notification of a bona fide offer in writing
by BSA, SPC shall have 60 days to tender a competitive offer for the company.

 3
 

 

12.                                 In
the event improvement to the technology, process, or additional equipment is
requested, an informal committee consisting of BSA and SPC shall conference and
jointly review and approve the purchase, installation, and the terms of the
cost sharing of said improvement.

	
  Agreed:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Scott Petroleum Corporation

  	
   

  	
   

  

 

	
  /s/ Solon Scott, Jr.

  	
   

  	
  Dated:

  	
   

  	
  March 31, 2006

  	
   

  
	
  Solon
  Scott, Jr.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Agreed:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BioSource
  America

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Dallas Neil

  	
   

  	
  Dated:

  	
   

  	
  April 2, 2006

  	
   

  
	
  Dallas Neil

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 4

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