Document:

EX-10.21

Exhibit
10.21

Sales Contract

	 	 	 
	Seller:

	 	Renewable Environmental Solutions,
LLC           
       
       
       
       Contract No. 0901

530 North Main
Street

Carthage, Missouri 64836
	 
	 	 
	Customer:

	 	Carlisle Power Transmission
Products, Inc.

2601 West Battlefield Road

P.O. Box 3258

Springfield, MO 65807
	 
	 	 
	Effective Date:

	 	This Agreement shall become effective on the first day following the completion
of commissioning of the boiler system conversion; i.e., when the boiler is fully capable of
continuously burning renewable fuel without interruption or undue operator attention.
	 
	 	 
	Commodity: 

	 	Renewable Diesel Fuel.
	 
	 	 
	Quantity:

	 	Approximately 1.35 million gallons annually.
	 
	 	 
	Contract Price: 

	 	1) During the period beginning on the Effective Date and continuing for one
year: $0.59/MMBtu below the monthly delivered natural gas cost or the Monthly U.S. Residual
Fuel Oil Retail Sales by All Sellers price, whichever is lower.
(This price reflects a 23 cent per MMBtu discount for renewable fuel
purchase and a 36 cent per MMBtu payment to Customer for repayment of
conversion capital).
	 
	 	 
	 

	 	2) During the period beginning immediately after the expiration of
one year from the Effective Date and continuing for one year: $0.57/MMBtu below the monthly delivered natural gas cost or the Monthly
U.S. Residual Fuel Oil Retail Sales by All Sellers price, whichever is
lower. (This price reflects a 21 cent per MMBtu discount for renewable
fuel purchase and a 36 cent per MMBtu payment to Customer for repayment
of conversion capital).
	 
	 	 
	Pricing Basis:

	 	Customer’s invoice for natural gas delivered to Customer’s Facility, including
all applicable taxes and fees, if any or the Monthly U.S. Residual Fuel Oil Retail Sales by All
Sellers price, whichever is lower.
	 
	 	 
	Pricing Method

& Adjustment:

	 	Each delivered load will be invoiced at the Contract Price based on the lower of the
Customer’s invoice price for natural gas for the prior month or the Monthly U.S.
Residual Fuel Oil Retail Sales by All Sellers price. Each quarter,
all purchases for the period will be adjusted to “true-up” for the
actual natural gas cost for the period or the Monthly U.S. Residual Fuel
Oil Retail Sales by All Sellers price, whichever is lower.
	 
	 	 
	Payment Terms:

	 	Net 45 days for all Delivery
Invoices.

True-up invoice amounts to be either added or
deducted from the next applicable Delivery Invoice
amount.
	 
	 	 
	Delivery Terms:

	 	Delivered to Customer’s Facility in accordance with delivery schedule
to be provided by Customer.
	 
	 	 

	 	 	 	 	 	 	 
	RES Representative	 	
/s/ Dan F. Decker, EVP, CWT
 

	 	Date
	2-6-09
 

	 	 	 	 	 	 	 
	Accepted by Customer	 	
/s/   Mark Phillips
 

	 	Date
	2-6-09
 

 

Sales Contract Terms and Conditions

Contract No.  0901

Product.

Renewable Diesel Fuel supplied under this contract shall have the following specifications:

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

Term and Termination.

This Sales Contract commences on the Effective Date and shall continue for a period of
two (2) years, subject to earlier termination as set forth below (the “Term”).

	 	1.	 	Either Party may terminate this Sales Contract at any time without cause by giving
the other Party at least ninety (90) business days’ prior written notice.

	 	2.	 	Either Party may terminate this Sales Contract upon the other Party’s Default, as
defined below, by giving written notice thereof to the defaulting party. Except as
otherwise specifically provided herein, termination of this Sales Contract shall not
relieve the parties of any obligation accruing hereunder prior to such termination. The
term “Default” shall mean any of the following:

	 	a.	 	Failure to comply with or to perform any provision or condition of this
Sales Contract for five (5) business days after written notice to cure
thereof; or	 

	 	b.	 	Insolvency, inability to pay debts as they mature or being the subject of a
petition in bankruptcy, insolvency or similar laws; or making an assignment for
the benefit of creditors; or being named in, or having property which is subject
to a suit for appointment of a receiver; or dissolution or liquidation; or	 

	 	c.	 	Any warranty made in this Sales Contract is breached, false, or misleading
in any material respect.	 

Boiler & Tank Upgrade Agreement

Attached hereto as Exhibit 1, Boiler & Tank Upgrade Agreement, is hereby made a part of this
Agreement and shall be subject to the terms and conditions hereof.

Limitation of Liability.

In no event shall Seller be liable for consequential or punitive damages arising from this Sales
Contract.

 

 

Sales Contract Terms and Conditions — Cont’d.

Contract No. 0901

Force Majeure.

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

Choice of Law: Venue.

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

Green Premiums or Credits.

It is believed that there are Green Premiums or Credits (“Premiums or Credits”) available for
renewable fuel oil. Customer agrees to and shall work with Seller to monetize any Premiums or
Credits and agrees to and shall remit to Seller within thirty (30) days of receipt the sum equal
to fifty (50) percent of all Premiums or Credits received. Without specific approval by the
Customer, this provision shall not obligate the Customer to any administrative or legal tasks or
fees.

 

 

Boiler & Tank Upgrade Agreement

Exhibit 1 to Contract No. 0901

     This Boiler and Tank Upgrade Agreement (this “Agreement”) is made effective as of the 4th
day of February 2009 (the “Effective Date”), by and between Renewable Environmental Solutions,
LLC, with offices at 530 North Main Street, Carthage, Missouri 64836 (“RES”) and Carlisle
Power Transmission, Inc., at 2601 West Battlefield Road, Springfield, Missouri 65807
(“Customer”).

     WHEREAS, RES has entered into a sales contract (the “Sales Contract”) to supply
Renewable Diesel Fuel to the Customer, and

     WHEREAS, Customer has agreed, at Customer’s sole cost, to upgrade existing boiler and
tank facilities, so as to be able to use Renewable Diesel Fuel, and

     WHEREAS, Customer wishes to protect the investment in the Boiler & Tank Upgrade (“Upgrade
Costs”) in case of termination of the sales contract by RES during the Term of the Sales
Contract,

     NOW, THEREFORE, in consideration of Customer agreeing to upgrade boiler and tank
facilities at Customer’s sole cost and to purchase Renewable Diesel Fuel, RES agrees that in
the event of termination of the Sales Contract by RES during the Term of the Sales Contract,
either in accordance with Section 1 of the Terms and Conditions of the Sales Contract or by
Default as defined in Section 2 of the Terms and Conditions of the Sales Contract, RES will
repay to the Customer a prorated portion of the Upgrade Cost, equal to the Upgrade Cost
divided by twenty-four (24) and the result thereof then being multiplied by the number of
months remaining of the Term of the Contract at time of termination. For the purpose of
execution of this Agreement, the Upgrade Costs shall be deemed to be $120,000. In the event
that the actual Upgrade Costs shall exceed $120,000, this provision shall be adjusted to the
amount of the actual costs incurred by customer upon detailed presentation of the actual costs incurred and the discount for
repayment of capital conversion costs as specified in the sales contract shall be adjusted
accordingly. The parties agree to use their best efforts to minimize the Upgrade Costs.

Agreed and Accepted By:

							
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	-s- Dan F. Decker, EVP-CWT
	 	2-6-09
	 	-s- Mark Phillips
	 	2-6-09
	 	 	 	 	 	 	 
	RES Representative
	 	Date
	 	Customer Representative
	 	Dateexv10w1

Exhibit 10.1

AMENDMENT TO EMPLOYMENT AGREEMENT

This Amendment (the “Amendment”) to the Employment Agreement, dated as of October 31, 2007 (the
“Agreement”), by and between Patriot Coal Corporation, a Delaware corporation (the “Company”), and
the undersigned executive (the “Executive”), is entered into as of the date set forth on the
signature page hereof. Terms not otherwise defined herein shall have the meaning ascribed to them
in the Agreement.

RECITALS

WHEREAS, the parties hereto desire to amend the Agreement as hereinafter set forth.

NOW, THEREFORE, in consideration of the mutual representations, warranties, covenants and
agreements contained in the Agreement, as amended, and for other good and valuable consideration,
the sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

1. Section 2 of the Agreement is hereby deleted in its entirety and replaced with the following:

2. Term of Employment. Executive’s term of employment under this Agreement (the
“Term of Employment”) shall commence on the Commencement Date and shall continue until
terminated as provided in this Agreement.

2. Section 6.1 of the Agreement is hereby deleted in its entirety and replaced with the
following:

Termination of Employment for Any Reason. In the event of a termination of
Executive’s employment for any reason, the Company shall pay to Executive (a) within five
(5) business days following the date of termination of Executive’s employment, a lump sum
equal to (i) Executive’s Base Salary earned on or prior to the date of such termination but
not yet paid to Executive in accordance with the Company’s customary procedures and
practices regarding the salaries of senior executives, (ii) any business expenses incurred
by Executive and not yet reimbursed by the Company under Section 5 above, as of the date of
such termination, (iii) any vacation time accrued but unused as of the date of such
termination, and (iv) any Bonus earned but not yet paid for any calendar year prior to the
date of such termination and (b) any benefits accrued and vested under any of the Company’s
employee benefit programs, plans and practices on or prior to the date of termination of
Executive’s employment (remuneration described in (a) and (b) above are collectively
referred to as the “Accrued Obligations” herein) in accordance with the terms of such
programs, plans and practices.

3. Section 6.2(a) of the Agreement is hereby deleted in its entirety and replaced with the
following:

Termination Not for Cause or for Good Reason. (a) The Company or Executive may
terminate Executive’s Term of Employment at any time for any reason by providing

1

 

written
notice to the other party at least thirty (30) days (or such other number of days specified
in this Agreement) in advance of the date of termination of Executive’s employment. If
Executive terminates his employment for Good Reason, such notice shall describe the conduct
Executive believes to constitute Good Reason and the Company shall have the opportunity to
cure the Good Reason within thirty (30) days of receiving such notice. If the Company cures
the conduct that is the basis for the potential termination for Good Reason within such
thirty (30) day period, Executive’s notice of termination shall be deemed withdrawn.

     If Executive’s employment is terminated (i) by the Company other than for Cause (as
defined in Section 6.3(b) hereof), Disability (as defined in Section 6.4 hereof) or death or
(ii) by Executive for Good Reason (as defined in Section 6.2(b) hereof), and such
termination constitutes a Separation from Service (as hereinafter defined) the Company, as
severance, shall pay to Executive an amount (the “Severance Payment”) equal to the total of:

     (A) one (1) times Executive’s Base Salary, plus

     (B) an additional amount equal to one (1) times the greater of (x) Executive’s
target Bonus for the calendar year of termination of Executive’s employment or (y)
the annual average of the actual Bonus awards paid to Executive by the Company for
the three (3) calendar years preceding the date of termination of Executive’s
employment (or, if Executive has not yet been employed by the Company pursuant to
this Agreement for three (3) full calendar years as of the date his employment is
terminated, for the two (2) year or one (1) year period, as applicable, for which he
has been so employed and received a Bonus); plus

     (C) an additional amount equal to six percent (6%) of Executive’s Base Salary.

The Company shall pay to Executive (I) one-half (1/2) of such Severance Payment in a lump sum
payment on the six (6) month anniversary of Executive’s Separation from Service and (II) the
remaining one-half (1/2) of the Severance Payment in six (6) equal monthly payments beginning on
the seven (7) month anniversary of Executive’s Separation from Service.

“Separation from Service” means a “separation from service,” as such term is defined under Section
409A.

In addition, if Executive’s employment is terminated (i) by the Company other than for Cause (as
defined in Section 6.3(b) hereof), Disability (as defined in Section 6.4 hereof), or death or (ii)
by Executive for Good Reason (as defined in Section 6.2(b) hereof) and if such termination
constitutes a Separation from Service,

(1) The Company shall pay to Executive a prorated bonus (the “Prorated Bonus”) for
the calendar year of termination of Executive’s employment, calculated as the Bonus
Executive would have received in such year based on actual performance multiplied by
a fraction, the numerator of which is the number

2

 

of business days during the
calendar year of termination that Executive was employed and the denominator of
which is the total number of business days during the calendar year of termination.
The Prorated Bonus shall be payable when annual bonuses are paid to other senior
executives of the Company, but in no event later than March 15 of the calendar year
following the later of (a) the calendar year in which the Bonus is earned or (b) the
calendar year in which the Bonus is no longer subject to a substantial risk of
forfeiture within the meaning of Section 409A.

(2) The Company shall also continue to provide Executive, as though he remained
actively employed, for a period of one (1) year following the date of termination of
Executive’s employment (the “Benefit Continuation Period”), life insurance, group
health coverage (including medical, dental, and vision benefits), accidental death &
dismemberment coverage, and the health care flexible spending account (to the extent
required to comply with COBRA continuation coverage requirements (collectively, the
“Continuation Benefits”) in accordance with the applicable plan terms;
provided, however, that any such coverage shall terminate to the
extent that Executive is offered or obtains comparable benefits from any other
employer during the Benefit Continuation Period; provided, further,
that the amount of Continuation Benefits provided during one calendar year shall not
affect the amount of Continuation Benefits provided during a subsequent calendar
year (except with respect to health plan maximums), the Continuation Benefits may
not be exchanged or substituted for other forms of compensation to Executive, and
any reimbursement or payment under the Continuation Benefit arrangements will be
paid in accordance with applicable plan terms and no later than the last day of
Executive’s taxable year following the taxable year in which he incurred the expense
giving rise to such reimbursement or payment. Notwithstanding the foregoing, if
Executive breaches any provision of Section 13 hereof, the remaining balances of the
Severance Payment, the Prorated Bonus, and any Continuation Benefits shall be
forfeited.

4. The phrase “75% of Base Salary” opposite the phrase “Long-Term Incentive Award:” on the
schedule on the signature page of the Agreement is hereby deleted in its entirety and replaced with
the phrase “100% of Base Salary”.

5. This Amendment shall be construed, interpreted and governed in accordance with the laws of the
State of New York, without reference to rules relating to conflicts of law.

6. This Amendment, the Agreement and the Ancillary Documents contain the entire understanding
between the parties hereto and supersede in all respects any prior or other agreement or
understanding, both written and oral, between the Company, any affiliate of the Company or any
predecessor of the Company or affiliate of the Company and Executive.

7. This Amendment may be executed in two or more counterparts, each of which will be deemed an
original.

[SIGNATURE PAGE FOLLOWS]

3

 

	 	 	 	 	 
	 	PATRIOT COAL CORPORATION

 	 
	 	By:  	/s/ Richard M. Whiting
 	 
	 	 	Name:  	Richard M. Whiting 	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	EXECUTIVE

 	 
	 	 	/s/ Joseph W. Bean
 	 
	 	 	Name:  	Joseph W. Bean 	 
	 	 	 
	 

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