Document:

EXHIBIT 10.38

ETHANOL MARKETING AGREEMENT

This Ethanol
Marketing Agreement (“Agreement”) is made and entered into as of the 30 day of
November 2000, by and between Heartland Grain Fuels, L.P., a Delaware limited
partnership, (“HGF”) and Williams Ethanol Services, Inc. d/b/a Williams
Bio-Energy, a Delaware corporation (“WES”).

In consideration
of the mutual terms and conditions contained herein, the Parties agree as
follows:

1.                                       Term
and Termination; Transition Period

A.                                   The
term of this Agreement shall commence the date WES becomes a partner in HGF and
continue as long as WES remains a partner of HGF.

B.                                     If
this Agreement is terminated for any reason, the terminating party shall give
the other party no less than six months prior written notice. In the event such
termination is at the election of HGF, HGF shall redeem WES’ limited
partnership interest in HGF at the initial purchase price or then current
market value, whichever is greater. In the event such termination is at the
election of WES, HGF will redeem WES’ limited partnership interest in HGF at
the initial purchase price or then current market value, whichever is less. In
the event the termination is mutually desired, HGF will redeem WES’ limited
partnership interest in HGF at then current market value or such other
negotiated price.

C.                                     In
recognition of the time needed to transition the accounting and invoicing
functions for customers currently served by HGF, HGF and WES agree that the
marketing obligations and rights (including marketing fees and expenses)
provided hereunder will not commence until January 1, 2001.

2.                                       Quantity
and Quality

A.                                   HGF
shall sell to WES the total output of HGF’s fuel grade ethanol (“Ethanol”)
produced at HGF’s Aberdeen, South Dakota and Huron, South Dakota facilities
(the “Plants”), currently anticipated to be twenty (20) million gallons per
year. Ethanol shall be delivered FOB the Plants, and title shall pass as the
Ethanol is loaded into transport vessels.

B.                                     Such
Ethanol shall meet the WES Pipeline specifications attached as Schedule A,
attached hereto and incorporated herein, or WES may reject the Ethanol. The
specifications set forth in Schedule A may be modified from time to time by WES
provided that such changes reflect modifications recognized by the U.S. ethanol
industry in general or is required by market demands. HGF shall be liable for
and shall indemnify WES against any and all claims, damages, costs, expenses,
and liabilities of any kind or nature related to or arising from HGF’s failure
to provide Ethanol which meets the specifications in Schedule A.

C.                                     All
gallons invoiced by HGF to WES shall be invoiced in net (i.e., adjusted to a
temperature of 60°F) or gross gallons, corresponding to WES’ end customer
requirements or as otherwise required by law. The invoiced amount shall be
based on the then-current market price of ethanol less the marketing fee set
forth in Section 5C. At the end of each month, HGF and WES shall true-up the
purchase price charged to WES based on the actual price received for the
ethanol less the direct costs for handling and delivering the ethanol pursuant
to Section 5; and shall pay to or charge WES, as the case may be, the
difference.

3.                                       WES
shall:

A.                                   purchase
all of the Ethanol produced by HGF at the Plants, at the price outlined in
Section 5, less the costs and marketing fee set forth in Section 5;

B.                                     remit
payment to HGF for the Ethanol via wire transfer or ACH within [*(*)] days of
receipt of invoice from HGF;

C.                                     schedule
all shipments of Ethanol with HGF and assume the risk of loss for all losses
(except terminal storage shrinkage) after loading at the Plants;

D.                                    assume
all current Ethanol marketing contracts listed in Schedule B attached hereto
and incorporated herein;

E.                                      purchase
and assume marketing responsibility for all terminal inventories of Ethanol as
of this date of this Agreement, listed on Schedule C, attached hereto and
incorporated herein;

F.                                      assume
all leases of Ethanol terminal space as of the date of this Agreement, as
listed on Schedule C, attached hereto and incorporated herein; and

G.                                     assume
all rail car leases for the transport of Ethanol in effect as of the date of
this Agreement, as listed on Schedule D, attached hereto and incorporated
herein.

4.                                       HGF
shall:

A.                                   invoice
WES daily for the Ethanol at the address specified in Paragraph 9; and

B.                                     provide
to WES quarterly production forecast, monthly updates and daily inventory
estimates.

5.                                       Pricing;
Marketing Fee:

A.                                   The
price HGF shall receive for its Ethanol shall be the price actually received by
WES for the sale of the Ethanol less the costs and marketing fee set forth in
Section 5 B and C, below. WES shall use reasonable efforts to obtain the best
price reasonably available for the Ethanol, i.e., the same or greater price as
other ethanol sold by WES in the same market under the same terms of sale (including

*                                        Portions
omitted pursuant to a request for confidential treatment and filed separately
with the SEC.

 2
 

without limitation volume), unless a different price
has been previously agreed to by HGF.

B.                                     All
direct costs incurred by WES in handling and delivering the Ethanol, including
but not limited to terminal lease charges, throughput charges, terminal
shrinkage costs, freight charges, tariffs, costs of leasing railcars and
trucks, government taxes and assessments, insurance, inspection fees and other
such costs (but excluding marketing costs), shall be deducted from the amount
owed to HGF as set forth in Section 5A above.

C.                                     A
marketing fee for WES’ effort to market the Ethanol shall be deducted from the
amount owed to HGF as set forth in Section 5A above at the rate of $[*] per
gallon of HGF Ethanol invoiced, commencing after the Transition Period.

6.                                       Marketing
Employees: At its option, WES shall have the right to lease existing HGF
sales and marketing employees Mark Luitjens and Pat Volk (“Leased Employees”),
for purposes of marketing ethanol pursuant to this Agreement. HGF shall
continue to provide wages and benefits (including vacation), withhold taxes,
provide insurance coverage consistent with existing coverage and make statutory
insurance payments (endorsed to waive rights of subrogation against WES) with
respect to such Leased Employees. During any period that WES is leasing the
Leased Employees, HGF shall provide workers compensation coverage for the Leased
Employees and, to the extent, if any, that WES is not able to avail itself of
the workers compensation exclusive remedy defense, HGF shall indemnify WES for
any such claims that result from injury to a Leased Worker and are asserted
against WES. All expenses associated with the Leased Employees, including
salaries, benefits, office space and equipment, insurance and taxes shall be
reimbursed to HGF by WES. WES shall in no way be obligated, but shall
nonetheless have the option to hire the Leased Employees directly and
discontinue this leasing arrangement at any time upon thirty (30) days written
notice to HGF.

7.                                       Indemnity:
WES shall indemnify, defend, and hold HGF and its affiliates, subsidiaries,
parents, directors, officers, partners, members, and employees harmless from
and against any and all claims, losses, awards, judgments, settlements, fines,
penalties, liabilities, damages, costs or expenses (including attorney’s fees)
alleged or incurred on account of any injury to or death of persons or damages
to property or any other claim to the extent caused by or arising out of the
negligence or willful misconduct of WES, its officers, employees, or agents in
the performance of or arising out of this Agreement or Ethanol sold hereunder,
including without limitation compliance or noncompliance with applicable laws
and regulations and/or claims of discrimination, harassment, unfair labor
practices or wrongful termination in connection with WES’s management,
direction, assignment or any other personnel action affecting the Leased
Employees, except for any decision not to hire any Leased Employee.

HGF shall
indemnify, defend, and hold WES and its affiliates, subsidiaries, parents,
directors, officers, and employees harmless from and against any and all claims,
losses, awards, judgments, settlements, fines, penalties, liabilities, damages,
costs or expenses (including Attorney’s fees) alleged or incurred on account of
any injury to or death of persons or damages to property or any other claim to
the extent caused by or arising out of the negligence or willful misconduct of

*                                        Portions
omitted pursuant to a request for confidential treatment and filed separately
with the SEC.

 

 3
 

HGF, its officers,
employees, or agents in the performance of or arising out this Agreement or the
Ethanol sold hereunder.

8.                                       Independent
Contractor: It is expressly understood that the relationship of WES to HGF
as a marketer of Ethanol is that of an independent contractor and nothing
contained in this Agreement shall be construed to create any partnership,
agency, or employer/employee relationship. WES may freely choose the customers
from whom business shall be solicited and the time and place for solicitation.

9.                                       Notices:
Any notices required to be given under this Agreement shall be in writing and
be sufficiently given when delivered in person or deposited in the U.S. mail
(registered or certified), postage prepaid, addressed as follows:

	
  If to HGF:

  	
   

  	
  Heartland Grain Fuels, L.P.

  38469 133rd St.

  Aberdeen, SD 57401-8406

  Attn: Don Gales

  
	
   

  	
   

  	
   

  
	
  If to WES:

  	
   

  	
  Williams Ethanol Services, Inc.

  P. O. Box 10

  Pekin, IL 61555

  Attn: Ron Miller

  

 

10.                                 Dispute
Resolution: Except as otherwise provided herein, the Parties hereby agree
that any controversy, dispute or claim arising out of or relating to this
Agreement or any breach of this Agreement shall be resolved in accordance with
the terms and provisions of this Section 10.

A.                                   Negotiation
with Authorized Management. The Parties shall first attempt in good faith
to resolve any dispute promptly by negotiation in the normal course of
business. In the event the Parties are unable to resolve any dispute in the
normal course of business, then the Parties shall continue to attempt in good
faith to resolve any dispute by negotiation as provided below.

(1)                                  The
negotiation shall be between management representatives who have authority to
settle the dispute (“Senior Party Representative”).

(2)                                  Either
Party may give the other Party written notice (“Dispute Notice”) of any dispute
that has not been resolved in the normal course of business. Within fifteen
(15) Days after delivery of the Dispute Notice, the receiving Party shall
submit to the other a written response (“Response”). The Dispute Notice and the
Response shall each include:

(a)                                  a
statement setting forth the position of the Party giving such notice and a
summary of arguments supporting such position; and

(b)                                 the
name and title of such Party’s Senior Party Representative and any other
persons, including attorneys, who shall accompany the

 4
 

Senior Party Representative at the meeting at which
the Parties shall attempt to settle the dispute.

(3)                                  Within
thirty (30) Days after delivery of the Dispute Notice, the Senior Party
Representative of each Party shall meet at a mutually acceptable time and
place, and then as often as they reasonably deem necessary, to attempt to
resolve the dispute. All reasonable requests for factual information made by
one Party to the other shall be honored but shall not obligate a Party to provide
any information to the extent that under the rules of evidence of the State of
Delaware such information is subject to the attorney-client privilege or is
attorney-work product.

(4)                                  If
the dispute has not been resolved within sixty (60) Days after delivery of the
Dispute Notice, or if the Parties fail to meet within thirty (30) Days after
delivery of the Dispute Notice as above provided, either Party may initiate
mediation of the dispute as provided in Paragraph B.

B.                                     Mediation.
If the dispute has not been resolved by negotiation as provided in paragraph A,
the Parties shall make a good faith attempt to settle the dispute by mediation
under the provisions of this Paragraph B before resorting to arbitration,
litigation or any other dispute resolution procedure.

(1)                                  Unless
the Parties agree otherwise, the mediation shall be conducted in accordance
with the CPR Institute for Dispute Resolution (“CPR”) Model Procedure for
Mediation of Business Disputes then in effect by a mediator who:

(a)                                  has
the qualifications and experience set forth in Subparagraph (2); and

(b)                                 is
selected as provided in Subparagraph (3).

(2)                                  Unless
the Parties agree otherwise, the mediator shall be a neutral and impartial
lawyer who:

(a)                                  is
or has been a partner in a highly respected law firm for at least fifteen (15)
years as a practicing attorney specializing in either general commercial
litigation or general commercial matters or is a retired state or federal
judge;

(b)                                 has
had training as a mediator; and

(c)                                  has
mediated at least ten (10) cases.

(3)                                  Either
Party may initiate mediation of the dispute by giving the other Party written
notice setting forth such Party’s request to submit the dispute to mediation. The
Parties shall have twenty (20) Days from the date the mediation notice is received
by the other Party to agree upon a mediator.

 5
 

If the Parties are unable to agree, the mediator shall
be selected by the President of the CPR Institute for Dispute Resolution in New
York, New York, or such President’s designee, utilizing the criteria in
Subparagraph (2).

(4)                                  Within
thirty (30) Days after the mediator has been selected as provided above, both
Parties and their respective attorneys shall meet with the mediator in Chicago,
Illinois, unless the Parties agree upon another location, for at least one
mediation session, it being agreed that each Party representative attending
that mediation session shall be a Senior Party Representative with authority to
settle the dispute. If the dispute cannot be settled at that mediation session
or at any mutually agreed continuation of that mediation session, either Party
may give the other and the mediator a written notice declaring the mediation
process at an end, in which event the Parties may resort to litigation in a
court of competent jurisdiction.

C.                                     General
Provisions. Notwithstanding anything herein and regardless of any
procedures or rules of the CPR, it is expressly agreed that the provisions in
this Paragraph C shall apply and control over any other provision in this
entire dispute resolution Article.

(1)                                  All
applicable statutes of limitation and defenses based upon passage of time shall
be tolled while the procedures specified in this Article are followed. Such
tolling shall begin upon the receiving Party’s receipt of the complaining Party’s
notice of claim. Parties shall take such action, if any, as may be necessary to
effectuate tolling. Statutes of limitation shall be applied to claims, except
as tolled in accordance herewith.

(2)                                  All
offers, conduct, views, opinions, and statements made in the course of
negotiation or mediation by any of the Parties, their employees, agents,
experts, attorneys, and representatives and by any mediator are made for
compromise and settlement, protected from disclosure under Federal and State
Rules of Evidence and Procedure, and inadmissible and not discoverable for any
purpose, including impeachment, in litigation or legal proceedings between the
Parties, and shall be not disclosed to anyone who is not an agent, employee,
expert, or representative of the Parties; provided, however, that evidence
otherwise discoverable or admissible is not excluded from discovery or
admission as a result of presentation or use in mediation.

(3)                                  All
dispute resolution proceedings conducted under this Agreement shall be
confidential. Neither Party shall disclose or permit the disclosure of any
information about the evidence adduced or the documents produced by the other
Party in the proceedings or about the existence, contents or results of the
mediation without the prior written consent of such other Party except in the
course of a judicial, regulatory or arbitration proceeding or as may be
requested by a governmental authority. Before

 6
 

making any disclosure permitted by the preceding
sentence, the Party intending to make that disclosure shall give the other
Party a reasonable opportunity to protect its interests. If requested by either
Party, the attorneys for the Parties, expert witnesses, stenographic reporters
or any other persons or entities involved in the dispute resolution proceedings
shall sign appropriate nondisclosure agreements to effectuate these
confidentiality provisions.

(4)                                  The
fees and expenses of the mediator shall be shared equally by the Parties. The
Parties shall also share the fees and expenses of any experts used in
mediation, provided both Parties have mutually agreed in writing to such
appointments.

(5)                                  Parties
may, by written agreement signed by both Parties, alter any time deadline,
location(s) for meeting(s), or procedure outlined herein or in CPR rules.

(6)                                  In
the event of a conflict between either the CPR Model Procedure for Mediation of
Business Disputes and this Agreement, then the provisions of this Agreement
shall govern.

11.                                 Audit:
HGF or persons authorized by and acting on behalf of HGF may audit the books
and records of WES from time to time at reasonable times upon reasonable notice
to WES. WES shall cooperate with HGF in the conduct of such audits.

12.                                 Insurance:
The Parties shall maintain the following insurance at all times while this
Agreement is in effect:

A.                                   Statutory
Worker’s Compensation and Employer’s Liability Insurance in compliance with the
laws of the states where the work is being performed, including Employer’s
Liability with a limit of not less than $500,000 each disease/accident, each employee.

B.                                     Comprehensive
General Liability Insurance with a combined single limit for bodily injury and
property damage of not less than $2,000,000 for any one occurrence. Coverage
shall cover independent contractors, blanket contractual liability and host
liquor liability.

C.                                     Business
Automobile Insurance with a combined single limit for bodily injury and
property damage in an amount not less than $1,000,000 each occurrence.

The liability
insurance coverage shall include coverage for contractual liability under the
Agreement. Each party shall promptly after execution of this Agreement, furnish
the other party a Certificate of Insurance evidencing the foregoing insurance
coverage, and containing a clause specifying that no reduction, cancellation or
expiration of the policies shall become effective until thirty (30) days from
the date written notice to the other Party. The insurance requirements set
forth herein are minimum coverage requirements and are not to be constructed in
any way as a limitation on liability under this Agreement.

 7
 

The foregoing
notwithstanding, HGF and WES may, at their respective option, elect to provide
evidence of a program of self insurance sufficient to meet the coverage
required hereunder.

13.                                 Entire
Agreement: This Agreement contains the entire agreement between the Parties
and supersedes all previous agreements, either oral or written, between the
Parties. No modifications hereof shall be valid unless made in writing and
signed by both Parties.

14.                                 Waiver:
The failure of other Party to enforce any of its rights hereunder on any
particular occasion shall not constitute a waiver of such rights on any
subsequent occasion.

15.                                 Assignment:
This Agreement may not be assigned by either party without the prior written
consent of the other party.

16.                                 Headings:
Any paragraph headings are used for convenience only and are not intended and
shall not be used in interpreting any provisions of this Agreement.

17.                                 No
Third Party Beneficiary: Except as otherwise provided herein, nothing
contained in this Agreement shall be considered or construed as conferring any
right or benefit on a person not a party to this Agreement and neither this
Agreement nor the performance hereunder shall be deemed to have created a joint
venture or partnership between the Parties.

18.                                 Governing
Law: This Agreement shall be governed by the laws of the State of Delaware,
without regard to the conflict of laws provisions thereof.

19.                                 Force
Majeure: Neither party shall be responsible for damages or delays in
performance (except for an obligation to pay money) caused by force majeure,
Acts of God or other events beyond the control of such party which could not
have been reasonably prevented or overcome. For these purposes, such acts or
events shall include, without limitation, unusually severe weather conditions
(such as blizzards); floods; severe storms; earthquakes; washouts; epidemics;
war; riots; explosion; vandalism; equipment failure; strike; walk-out;
lock-out; work stoppage; the unavailability of utility or transportation
services; any order, restraint or prohibition of any governmental, commission,
or agency having jurisdiction over such party; civil or military authority;
national emergencies; insurrections; or breaches and delays of third parties
relating to this Agreement. Should any such act or event occur, the party so
impacted shall notify the other party of the delay and its expected duration
and its expected impact on such impacted party’s performance under this
Agreement. The impacted party shall use reasonable efforts under the
circumstances to avoid and remove such causes of non-performance and shall
proceed to perform with reasonable dispatch whenever such causes cease.

20.                                 Severability:
If any term or other provision of this Agreement is invalid, illegal or incapable
of being enforced by any rule of law or public policy, all other conditions and
provisions of this Agreement shall nevertheless remain in full force and
effect; however, if the absence of such term or provision substantially
deprives a party of the economic benefit of this Agreement, the parties shall
negotiate reasonable and valid provisions to restore the economic benefit to
the party deprived or to balance the parties’ obligations consistent with the
intent reflected in this Agreement.

 8
 

21.                                 Counterparts:
This Agreement may be signed in any number of counterparts with the same effect
as if the signatures to each counterpart were upon the same instrument.

22.                                 Survival:
The terms, provisions, representations, and warranties contained in this
Agreement that by their sense and context are intended to survive the
performance thereof by either or both parties hereunder shall so survive the
completion of performance and termination of this Agreement including, without
limitation, indemnities and dispute resolution.

23.                                 Expenses:
Each party shall be liable for any expenses it may incur relating to entering
into this Agreement and its obligation to perform under this Agreement.

24.                                 Successors
and Assigns: Subject to Paragraph 15, this Agreement shall be binding upon
and shall inure to the benefit of all the respective successors, and assignees
of the parties hereto.

25.                                 Taxes:
HGF shall be liable for any taxes (including without limitation ad valorem and
excise taxes), assessments or charges, which may be assessed against the
Ethanol whether title is in HGF or WES. HGF agrees to reimburse WES for any
such taxes, assessments or charges paid by WES within thirty (30) days of WES’s
demand therefor. Neither party shall be responsible or liable for the other
party’s income taxes or for any taxes or other statutory charges levied or
assessed against any of the facilities of the other party used for the purpose
of carrying out the provisions of this Agreement.

26.                                 Default
and Remedies: Should either party default in the prompt performance and
observance of any of the terms or conditions of this Agreement, this Agreement
shall not be cancelable or terminable (except in the event of a material
breach); but rather, the parties shall follow the procedures set forth in Section
10 for dispute resolution.

27.                                 Representations
and Warranties: Each party represents and warrants that it has taken all
requisite corporate or partnership action to approve execution, delivery and
performance of this Agreement and that this Agreement constitutes a legal,
valid and binding obligation enforceable against it in accordance with its
terms.

IN WITNESS
WHEREOF, the Parties hereto have caused this Agreement to be duly executed as
of the date first written above.

	
  WILLIAMS ETHANOL SERVICES,
  INC.

  	
   

  	
  HEARTLAND GRAIN FUELS, L.P.

  
	
  d/b/a WILLIAMS
  BIO-ENERGY

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Ronald
  Miller

  	
   

  	
   

  	
  By:

  	
  /s/ Donald Gales

  	
   

  
	
  Ronald Miller,
  President

  	
   

  	
  Name and Title: Chairman

  
							

 

 9

Schedule A

To

Ethanol Marketing
Agreement

FUEL-GRADE ETHANOL

SPECIFICATIONS

(DENATURED)

Ethanol must meets
or exceed all industry standards, including ASTM D.4806
specifications and Williams’ Pipeline specifications for E-Grade Denatured Fuel
Ethanol.

	
  TEST

  	
   

  	
  NON-DETERGENT

  GRADE

  	
   

  	
  

  METHOD OF TEST

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Apparent Proof - 60°F

  	
   

  	
  200
  min.

  	
   

  	
  Hydrometer

  
	
  

  	
   

  	
  203
  max.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Specific Gravity, 60/60°F

  	
   

  	
  0.7870
  -

  	
   

  	
  ASTM D-1298

  
	
  

  	
   

  	
  0.7950

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Water, Mass Percent

  	
   

  	
  0.50
  nom.

  	
   

  	
  ASTM E-203

  
	
  

  	
   

  	
  0.82
  max.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ethanol Content,

  	
   

  	
  92.1
  min.

  	
   

  	
  Gas Chromatography

  
	
  Volume Percent

  	
   

  	
   

  	
   

  	
  ASTM D-2/E-44

  
	
  

  	
   

  	
   

  	
   

  	
  P170 Method, A or B

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Methanol, (vol.%)

  	
   

  	
  0.5
  max.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Non-Volatile Matter,

  	
   

  	
  5
  max.

  	
   

  	
  ASTM D-1353

  
	
  mg/100 mL

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Chloride Ion Content,

  	
   

  	
  32
  max.

  	
   

  	
  ASTM D-512, Meth. C

  
	
  mg/L

  	
   

  	
   

  	
   

  	
  Modified Note (1)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Copper Content, mg/kg

  	
   

  	
  0.08
  max.

  	
   

  	
  ASTM D-1688, Meth.D

  
	
  

  	
   

  	
   

  	
   

  	
  Modified Note (2)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Acidity (as acetic acid

  	
   

  	
  0.007
  max.

  	
   

  	
  ASTM D-1613

  
	
  CH3C00H), mass%

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Appearance

  	
   

  	
  Clear and
  Bright, visibly free of suspended and/or settled contaminants.

  	
   

  	
  Visual 

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Color, Platinum - Cobalt

  	
   

  	
  50.0
  max.

  	
   

  	
  ASTM D-1209

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hydrocarbon Denaturant

  	
   

  	
  5.0
  max.

  	
   

  	
  Gas Chromatography

  
	
  gal/100 gal.

  	
   

  	
  2.0
  min.

  	
   

  	
  ASTM D-2/E-44

  
	
  

  	
   

  	
   

  	
   

  	
  P170 Method, A or B

  
	
  

  	
   

  	
   

  	
   

  	
  Note (3)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  pHe

  	
   

  	
  6.5
  min.

  	
   

  	
  Williams test procedure

  
	
  

  	
   

  	
  9.0
  max.

  	
   

  	
  (Pending ASTM approval)

  

 

(NOTES)

Note 1:                      The
modification of Test Method D-512, Procedure C, consists of using 5 mL of
sample diluted with 20 mL of distilled water instead of the 25 mL sample
specified in the standard procedure.  The
volume of the sample prepared by this modification will be slightly more than
25 mL.  To allow for the dilution factor,
report the chloride ion present in the fuel ethanol sample as 5 times that
determined in the sample.

Note 2:                      The modification
of Test Method D-1688, Procedure D, consists of mixing reagent grade ethanol
(which may be denatured according to BATF Formula 3A or 3O) in place of water
as the solvent or diluent for the preparation of reagents and standard
solutions.  However, this must not be
done to prepare the stock copper solution described in 39.1 of D-1688.  Because a violent reaction may occur between
the acid and the ethanol, use water as specified in the acid solution part of
the procedure to prepare the stock copper solution.  Use ethanol for the rinse and final dilution
only.

Note 3:                      The only
denaturants used for fuel ethanol shall be unleaded gasoline or rubber
hydrocarbon solvent at a minimum concentration of 2 parts by volume per 100
parts by volume.  Hydrocarbons, with an
end boiling point higher than 437°F as determined by ASTM Method D-86, shall
not be used.

Note 4:                      All fuel
ethanol will contain a minimum of one of the following corrosion
inhibitors:

a)              20 pounds per 1,000
barrels of Octel America DCI-11,

b)             13 pounds per 1,000
barrels of Petrolite Tolad 3222, or

c)              20 pounds per 1,000
barrels of Nalco 5403.

d)             20 pounds per 1,000
barrels of Betz ACN 13

e)              20
pounds per 1,000 barrels of MidContinental MCC5011E

Schedule
B

Contracted
Gallons 2000 - 2001

	
   

  	
   

  	
  Oct, 2000

  	
   

  	
  Nov, 2000

  	
   

  	
  Dec, 2000

  	
   

  	
  Jan, 2001

  	
   

  	
  Feb, 2001

  	
   

  	
  Mar, 2001

  	
   

  	
  Total

  	
   

  	
  Net

  Back

  	
   

  	
  Total

  Dollars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aberdeen/Huron, SD

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Murex -1

  	
   

  	
  510,400

  	
   

  	
  510,400

  	
   

  	
  510,400

  	
   

  	
  510,400

  	
   

  	
  510,400

  	
   

  	
   

  	
   

  	
  2,552,000

  	
   

  	
  $

  	
    *  

  	
   

  	
  $

  	
    *  

  	
   

  
	
  Murex - 2

  	
   

  	
  255,200

  	
   

  	
  255,200

  	
   

  	
  255,200

  	
   

  	
  255,200

  	
   

  	
  255,200

  	
   

  	
   

  	
   

  	
  1,276,000

  	
   

  	
  $

  	
    *  

  	
   

  	
  $

  	
    *  

  	
   

  
	
  WES

  	
   

  	
  300,000

  	
   

  	
  300,000

  	
   

  	
  300,000

  	
   

  	
  300,000

  	
   

  	
  300,000

  	
   

  	
  300,000

  	
   

  	
  1,800,000

  	
   

  	
  $

  	
    *  

  	
   

  	
  $

  	
    *  

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  1,065,600

  	
   

  	
  1,065,600

  	
   

  	
  1,065,600

  	
   

  	
  1,065,600

  	
   

  	
  1,065,600

  	
   

  	
  300,000

  	
   

  	
  5,628,000

  	
   

  	
  $

  	
    *  

  	
   

  	
  $

  	
    *  

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Buffalo Lake, MN

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WES

  	
   

  	
  300,000

  	
   

  	
  300,000

  	
   

  	
  300,000

  	
   

  	
  300,000

  	
   

  	
  300,000

  	
   

  	
  300,000

  	
   

  	
  1,800,000

  	
   

  	
    *  

  	
   

  	
  $

  	
    *  

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  300,000

  	
   

  	
  300,000

  	
   

  	
  300,000

  	
   

  	
  300,000

  	
   

  	
  300,000

  	
   

  	
  300,000

  	
   

  	
  1,800,000

  	
   

  	
    *  

  	
   

  	
  $

  	
    *  

  	
   

  

 

 

*                                        Portions
omitted pursuant to a request for confidential treatment and filed separately
with the SEC.

 

Schedule
C

Terminals

	
  Company

  	
   

  	
  Location

  	
   

  	
  Tank Space

  (# of gallons)

  	
   

  	
  Lease Charge

  Per Month

  	
   

  	
  Contract

  Term

  	
   

  	
  Ending Contract

  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Williams Pipe Line

  	
   

  	
  Alexandria,
  MN

  	
   

  	
  42000

  	
   

  	
  $

  	
  800.00

  	
   

  	
  3-years

  	
   

  	
  03/10/01

  	
   

  
	
  Williams Pipe Line

  	
   

  	
  Des
  Moines, IA

  	
   

  	
  42000

  	
   

  	
  $

  	
  800.00

  	
   

  	
  3-years

  	
   

  	
  03/05/01

  	
   

  
	
  Williams Pipe Line

  	
   

  	
  Roseville,
  MN

  	
   

  	
  42000

  	
   

  	
  $

  	
  1,200.00

  	
   

  	
  1-year

  	
   

  	
  12/31/00

  	
   

  
	
  Williams Pipe Line

  	
   

  	
  Sioux
  Falls, SD

  	
   

  	
  84000

  	
   

  	
  $

  	
  1,600.00

  	
   

  	
  3-years

  	
   

  	
  04/14/01

  	
   

  
	
  Williams Pipe Line

  	
   

  	
  Watertown,
  SD

  	
   

  	
  42000

  	
   

  	
  $

  	
  800.00

  	
   

  	
  3-years

  	
   

  	
  04/14/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kaneb Pipe Line

  	
   

  	
  Aberdeen,
  SD

  	
   

  	
   

  	
   

  	
  n/a

  	
   

  	
  Annual

  	
   

  	
  n/a

  	
   

  
	
  Kaneb Pipe Line

  	
   

  	
  Jamestown,
  ND

  	
   

  	
   

  	
   

  	
  n/a

  	
   

  	
  Annual

  	
   

  	
  n/a

  	
   

  
	
  Kaneb Pipe Line

  	
   

  	
  LeMars,
  IA

  	
   

  	
   

  	
   

  	
  n/a

  	
   

  	
  Annual

  	
   

  	
  n/a

  	
   

  
	
  Kaneb Pipe Line

  	
   

  	
  Mitchell,
  SD

  	
   

  	
   

  	
   

  	
  n/a

  	
   

  	
  Annual

  	
   

  	
  n/a

  	
   

  
	
  Kaneb Pipe Line

  	
   

  	
  Rock
  Rapids, IA

  	
   

  	
   

  	
   

  	
  n/a

  	
   

  	
  Annual

  	
   

  	
  n/a

  	
   

  
	
  Kaneb Pipe Line

  	
   

  	
  Yankton, SD

  	
   

  	
   

  	
   

  	
  n/a

  	
   

  	
  Annual

  	
   

  	
  n/a

  	
   

  

 

Schedule
D

Railcar
Leases

	
  Company

  	
   

  	
  Railcar #

  	
   

  	
  Service Charge

  Per Month

  	
   

  	
  Contract

  Term

  	
   

  	
  Ending Contract

  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GATX

  	
   

  	
  GATX24016

  	
   

  	
  $

  	
  625.00

  	
   

  	
  Monthly

  	
   

  	
  n/a

  	
   

  
	
  GATX

  	
   

  	
  GATX24026

  	
   

  	
  $

  	
  625.00

  	
   

  	
  Monthly

  	
   

  	
  n/a

  	
   

  
	
  GATX

  	
   

  	
  GATX24031

  	
   

  	
  $

  	
  625.00

  	
   

  	
  Monthly

  	
   

  	
  n/a

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ACF INDUSTRIES

  	
   

  	
  SHPX202413

  	
   

  	
  $

  	
  510.00

  	
   

  	
  5-years

  	
   

  	
  07/31/04

  	
   

  
	
  ACF INDUSTRIES

  	
   

  	
  SHPX202414

  	
   

  	
  $

  	
  510.00

  	
   

  	
  5-years

  	
   

  	
  07/31/04

  	
   

  
	
  ACF INDUSTRIES

  	
   

  	
  SHPX202415

  	
   

  	
  $

  	
  510.00

  	
   

  	
  5-years

  	
   

  	
  07/31/04

  	
   

  
	
  ACF INDUSTRIES

  	
   

  	
  SHPX202416

  	
   

  	
  $

  	
  510.00

  	
   

  	
  5-years

  	
   

  	
  07/31/04

  	
   

  
	
  ACF INDUSTRIES

  	
   

  	
  SHPX202417

  	
   

  	
  $

  	
  510.00

  	
   

  	
  5-years

  	
   

  	
  07/31/04

  	
   

  
	
  ACF INDUSTRIES

  	
   

  	
  SHPX202418

  	
   

  	
  $

  	
  510.00

  	
   

  	
  5-years

  	
   

  	
  07/31/04

  	
   

  
	
  ACF INDUSTRIES

  	
   

  	
  SHPX202491

  	
   

  	
  $

  	
  510.00

  	
   

  	
  5-years

  	
   

  	
  12/31/04

  	
   

  
	
  ACF INDUSTRIES

  	
   

  	
  SHPX202492

  	
   

  	
  $

  	
  510.00

  	
   

  	
  5-years

  	
   

  	
  12/31/04

  	
   

  
	
  ACF INDUSTRIES

  	
   

  	
  SHPX202493

  	
   

  	
  $

  	
  510.00

  	
   

  	
  5-years

  	
   

  	
  12/31/04

  	
   

  
	
  ACE INDUSTRIES

  	
   

  	
  SHPX202494

  	
   

  	
  $

  	
  510.00

  	
   

  	
  5-years

  	
   

  	
  12/31/04

  	
   

  
	
  ACF INDUSTRIES

  	
   

  	
  SHPX202495

  	
   

  	
  $

  	
  510.00

  	
   

  	
  5-years

  	
   

  	
  12/31/04

  	
   

  
	
  ACF INDUSTRIES

  	
   

  	
  SHPX202496

  	
   

  	
  $

  	
  510.00

  	
   

  	
  5-years

  	
   

  	
  12/31/04

  	
   

  

 

March 31, 2003

Heartland Grain Fuels, L.P.

38469 133rd Street

Aberdeen,
SD  57401-8406

Attn:
Bill Paulsen

Re:  Amendment of Ethanol Marketing Agreement

Dear
Bill:

To the extent that, in Williams Ethanol Services,
Inc. (“WES”)’s sole judgment, a sufficient number of sellers of fuel grade
ethanol to WES agree to receive the Pooled Net Price for their ethanol sold to
WES in order to form a pool large enough to justify the administration of
Pooled Net Price accounting, effective April 1, 2003, Williams Ethanol Services,
Inc. (“WES”) and Heartland Gram Fuels, L.P. (“HGF”) hereby amend that Ethanol
Marketing Agreement dated November 30, 2000 (the “Agreement”) in order to
modify the method of calculating the price paid by WES TO HGF for HGF’s fuel grade ethanol produced at HGF’s
Aberdeen, South Dakota and Huron, South Dakota facilities (“Ethanol”), Sections
2.C., 3.B., 4.A. and 5 of the Agreement are deleted and replaced with the
following language:

2.C.                             All gallons invoiced by HGF to WES shall be invoiced in net (i.e.
adjusted to a temperature of 60°F) or gross gallons, corresponding to WES’ end
customer requirements or as otherwise required by law.

3.B.                             remit payment (which shall be subject to adjustment pursuant to Section
5.C.) to HGF for the Ethanol via wire transfer or ACH within [*(*)] days of
receipt of invoice from HGF pursuant to Section 4.A.;

4.A.                           invoice WES at the address specified in Paragraph 9 daily for the
Ethanol using WES’s estimated Net Pooled Price, subject to adjustment under
Section 5.C; and

5.A.                          Sales Price.  The sale price HGF shall receive for its
Ethanol shall be based on the Pooled Net Price, as defined below.

“Pooled
Net Price” shall mean
the net sales price per gallon calculated by subtracting the Pooled Costs on a
per gallon basis from the Alliance Ethanol Average Market Price.

“Alliance Ethanol Average Market
Price” shall mean the
monthly average price received by WES for Pooled Market Alliance Volumes sold
during such month on a per gallon basis.

“Pooled Market Alliance Volumes’’ shall mean, with respect to any given period,
aggregate fuel grade ethanol volumes purchased by WES from all sellers who have
agreed to receive the Pooled Net Price and aggregate fuel grade ethanol volumes
produced by WES during such period.

“Pooled Costs’’ shall mean, with respect to any given period,
all direct costs incurred by WES in handling Pooled Market Alliance Volumes
during such period, including but not limited to terminal lease charges,
throughput charges, terminal shrinkage costs, freight charges, tariffs, costs
of leasing railcars and trucks, government taxes and assessments, insurance,
inspection

*                                        Portions
omitted pursuant to a request for confidential treatment and filed separately
with the SEC.

 

fees,
inventory carrying costs, purchased ethanol cost incurred due to lost
production and other such costs, but excluding direct costs incurred in
marketing such ethanol.  WES shall use
commercially reasonable efforts to contain Pooled Costs so as to maximize the
ultimate net price payable to HGF for its Ethanol.

5.B.                            Commission.  WES shall deduct from the Pooled Net Price a
commission equal to $[*] per gallon of HGF Ethanol invoiced, commencing after
the Transition Period.

5.C.                            Estimation True Up.  If at calendar month’s end, the actual Pooled
Net Price exceeds the estimated Pooled Net Price, WES shall pay HGF on or
before the 15th day of
the following calendar month an amount equal to the product of (x) the
difference between the actual and estimated Pooled Net Price less commissions
and (y) the aggregate quantity of Ethanol purchased during the prior calendar
month.  If the actual Pooled Net Price is
less than the estimated Pooled Net Price, WES shall withhold and set off from
future payments to HGF an amount equal to the product of (x) the difference
between the actual and estimated Pooled Net Price less commissions and (y) the
aggregate quantity of Ethanol purchased during such month.

Except as provided above, all other terms of
Agreement shall remain unaltered and in full force and effect.

Please indicate your agreement with the
modifications to the Agreement set forth in this letter amendment by an
authorized signature for HGF below.

	
  

  	
   

  	
  Sincerely,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Ronald H. Miller

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Ronald H. Miller

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ACCEPTED AND AGREED this 2
  day of April, 2003.

  
	
  Heartland Grain Fuels,
  L.P.

  
	
   

  
	
  By: Heartland Grain Fuels
  LP

  
	
  Name:

  	
  /s/ Bill Paulsen

  	
   

  
	
  Title:
  General Manager

  
						

*                                        Portions
omitted pursuant to a request for confidential treatment and filed separately
with the SEC.

 

SECOND AMENDMENT TO

ETHANOL MARKETING AGREEMENT

This Second Amendment to that
certain Ethanol Marketing Agreement (as defined below) is made and entered into effective as of December 1,
2006 by and between Heartland Grain Fuels,
L.P., a Delaware limited partnership (“HGF”) and Aventine Renewable Energy, Inc., a Delaware corporation (“Aventine”).

RECITALS

A.                                     HGF and Aventine,
formerly known as Williams Ethanol Services, Inc. d/b/a Williams Bio-Energy
(“WES”), entered into an Ethanol
Marketing Agreement dated November 30, 2000 for the purchase and sale of fuel grade
ethanol produced at the HGF facilities in Aberdeen, South Dakota and Huron, South
Dakota, (the “Agreement”).This Agreement was
subsequently modified by letter agreement entitled “Amendment of Ethanol Marketing Agreement”
executed by HGF and WES and dated March 31, 2003 (the “First Amendment”).

B.                                       HGF and Aventine intend
to modify the Agreement and First Amendment in certain respects, as more particularly set
forth in this Second Amendment and, further, intend that the Agreement, First
Amendment and Second Amendment constitute one integrated agreement (the “EMA”).

C.                                       Capitalized terms used
but not defined in this Second Amendment have the meanings ascribed to them in the Agreement.

AGREEMENT

NOW, THEREFORE, in consideration
of the mutual agreements and terms contained herein, the parties agree as follows:

1.                                       Amendment To Section 1
of the Agreement.

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

1.A.                          The term of the EMA is
two (2) years from the effective date of the Second Amendment (the “Initial Term”),automatically renewing for
successive one
(1) year terms (each, a “Renewal Term”), until terminated by
either party in accordance with Section 1.B.

1.B.            Section 1.B. of the
Agreement is deleted in its entirety, except for the first sentence, which states:

1 .B                            If this EMA is
terminated for any reason, the terminating party shall give the other party no less
than one year written notice prior to the end of such Initial Term or Renewal Term.

2.                                         Amendment To Section
3.B of the First Amendment.

Section
3.B of the First Amendment is affirmed in its entirety with one exception: the time for Aventine to
remit payment to HGF is [*(*)] days instead of [*] days.

3.                                         Amendment To Section 5.B
of the First Amendment.

Section
5.B. of the First Amendment is deleted in its entirety and replaced with the following:

5.B.                            Commission. From and after
December 4, 2006, Aventine shall deduct from the Pooled Net Price a per gallon commission
equal to [*]% of the Net Pooled Price for any HGF Ethanol invoiced.

4.                                         Confidentiality.

The following paragraph shall
be added as new Section 28 to the Agreement:

Section
28. Confidentiality. The terms of this Agreement and any non-public information provided to
HGF pursuant to this Agreement or as a result of HGF being an alliance partner are
confidential and HGF (i) will hold, and will cause its employees, officers,
directors, agents, accountants and advisors to hold, all such information in confidence, unless it is
compelled to disclose such information by judicial or administrative process
or by other requirements of law and (ii) will use, and will cause its employees, officers,
directors, agents, accountants and advisors to use, such information only in connection with
the implementation of this Agreement, and for no other purpose. In this regard, such information may be
considered “insider information” under the securities
laws of the United States and shall not be shared with others (except as permitted under the preceding sentence) and shall
not be used to buy, sell or otherwise invest in securities of Aventine
Renewable Energy Holdings, Inc. or any of the alliance partners.

5.                                       No Other Changes. Except as herein
provided and amended, all other terms of the Agreement and First Amendment
shall remain unaltered and continue in full force and effect without modification or
limitation, except that all references therein to the “Agreement” shall be
deemed references
to the EMA.

6.                                       Multiple Counterparts. This Second Amendment
may be executed in a number of identical counterparts which, taken together, shall
constitute collectively one agreement. Execution of this Second Amendment may
accomplished by facsimile or electronic image.

[Signature Page
Follows]

*                                        Portions
omitted pursuant to a request for confidential treatment and filed separately
with the SEC.

 

IN WITNESS WHEREOF, the
parties hereto have caused this Second Amendment to be duly executed as of the
date first written above.

	
  AVENTINE RENEWABLE ENERGY,
  INC.

  	
   

  	
  HEARTLAND GRAIN FUELS, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Ronald H.
  Miller

  	
   

  	
   

  	
  By:

  	
  /s/ Rory Troske

  	
   

  
	
  Title: President
  and CEO

  	
   

  	
  Title: Vice PresidentEXHIBIT
10.39

By-Product
Marketing Agreement

Heartland Grain Fuels L.P.

And

Dakotaland Feeds, LLC

Where
as Heartland Grain Fuels does operate ethanol-manufacturing facilities in
Aberdeen and Huron SD that do produce certain by-products that have feed value
and Dakotaland Feeds, LLC is a feed manufacturing and marketing company with
facilities Huron SD and a marketing presence in all of eastern SD, Heartland
Grain Fuels and Dakotaland Feeds, LLC enters into the following agreement.

Heartland Grain Fuels Agrees To:

1.                               Provide Condensed Distillers Solubles (CDS)
known as Distillers Syrup, Wet distillers Grains (WDG) and Dried Distillers
Grains with Solubles (DDG/S) to Dakotaland Feeds, LLC on a FOB basis for retail
resale. Heartland agrees to provide these products in good and marketable
condition. Heartland may upon mutual agreement mix these products from time to
time.

2.                               Provide Dakotaland Feeds with prices for these
products as per a formula yet to be developed. This formula will take into
account the relative feed value of the by-products as compared to other
feedstuffs in the marketplace.

3.                               Compensate Dakotaland Feeds, LLC [*]% of the
FOB value of all by-products locally sold retail. It is understood that
Dakotaland will use their “Cash” price for this calculation.

4.                               Reimburse Dakotaland Feeds for any adjustments
that are required to be made to any customer that result from product quality
complaints. Heartland will only be responsible for quality complaints that are
documented to have been the result of poor product leaving one of the Heartland
plants. Heartland reserves the right to investigate and acknowledge all product
complaints prior to making any adjustment.

5.                               Provide all equipment necessary to load
byproducts on delivery equipment at each plant.

6.                               Allow Dakotaland Feeds exclusive marketing
rights to retail sales of these by-products on a local basis.

7.                               Provide Dakotaland Feeds with inventory and
production numbers.

8.                               Heartland Grain Fuels reserves the right to
approve any pricing for sales commitments for product to be shipped more than
30 days from the time of the commitment. It is agreed that all forward pricing
will be confirmed in writing.

* Portions omitted pursuant to
a request for confidential treatment and filed separately with the SEC.

Dakotaland Feeds, LLC Agrees To:

1.                               Endeavor to advertise promote and market
by-products FOB Heartland Grain Fuels plants on a wet basis to avoid drying
expense.

2.                               Arrange logistics including delivery or patron
pick-up of all products sold retail.

3.                               Provide Heartland Grain Fuels with
communication regarding shipments as are reasonable to allow Heartland to
manage their inventories.

4.                               Provide communication with Farmland Feeds
Ingredient group to provide for the orderly marketing of all residual products
on a dry basis and ensure sales of all by-products to prevent the ethanol
plants from having to shut down.

5.                               Accept accounts receivable risk for all retail
sales.

6.                               Handle all accounting function for by-product
transactions. Dakotaland Feeds will compensate Heartland Grain Fuels each
Friday for products sold in the previous week, less the agreed commission and
provide documentation of same.

7.                               Handle all purchase agreements and customer
contracts. Dakotaland will provide communication with Heartland to assure
proper product pickup and billing documentation.

It
is also mutually agreed by the parties that Heartland will continue to provide
personal to coordinate the logistics of sales of the by-products. Dakotaland
agrees to reimburse Heartland for 50% of the cost of the person performing that
job function. It is further mutually agreed that this percentage may be
adjusted from time to time as needed.

This
commercial agreement is intended to commence February 1, 2001 and continue to
be in effect until terminated by either party upon written 60-day notice. As
both companies are interested in the well being of the other, this agreement
can be amended as needed by mutual consent.

This agreement is hereby amended and replaces pervious agreements by
the signatures below on the date of signature.

	
  /s/ Bill Paulsen

  	
   

  	
  2-1-01

  	
   

  
	
  Heartland Grain Fuels

  	
   

  	
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ illegible

  	
   

  	
  2-1-01

  	
   

  
	
  Dakotaland Feeds, LLC

  	
   

  	
  Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]