Document:

Exhibit 10.17

	
  

  	
  Purchase Order

  

 

	
  600 Dewey Boulevard

  	
   

  	
  kgriffith@biosourcefuels.com

  	
   

  	
  Purchase
  Order No:

  	
   

  	
  BSA-PLANT
  TWO-001

  
	
  Suite B

  	
   

  	
  Facsimile:    406-494-6645

  	
   

  	
   

  	
   

  	
   

  
	
  Butte, Montana 59701

  	
   

  	
  Telephone:    406-494-6644

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mueller Field Operations

  	
   

  	
  Order
  Date:

  	
   

  	
  July 10th, 2006

  
	
  1600 W Phelps

  	
   

  	
  Payment
  Terms:

  	
   

  	
  Wire Transfer

  
	
  Springfield, MO 65801

  	
   

  	
   

  	
   

  	
  25% with order

  
	
   

  	
   

  	
   

  	
   

  	
  25% with shop
  drawings

  
	
  FAX:      417-575-9890

  	
   

  	
   

  	
   

  	
  Monthly Payments
  thereafter

  
	
  Phone:   800-654-8265

  	
   

  	
  F.O.B.
  Point:

  	
   

  	
  Jobsite in
  Illinois

  
	
  Attn:       Steve
  Biggers

  	
   

  	
  Freight
  Terms:

  	
   

  	
  Included in
  pricing

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ship To:

  	
   

  	
   

  	
   

  	
  Invoice To:

  
	
  BIOSOURCE AMERICA, INC

  	
   

  	
   

  	
   

  	
  BIOSOURCE FUELS, LLC

  
	
  TBD

  	
   

  	
   

  	
   

  	
  600 Dewey Boulevard

  
	
   

  	
   

  	
   

  	
   

  	
  Suite B

  
	
   

  	
   

  	
   

  	
   

  	
  Butte, Montana 59701

  
	
  Phone: 406-494-6644

  	
   

  	
   

  	
   

  	
  Phone: 406-494-6644

  
	
  Attn:       Dick
  Talley

  	
   

  	
   

  	
   

  	
  Attn: Accounts Payable

  

 

	
  Tax ID:

  	
   

  	
   

  	
   

  	
  Ship via:

  	
   

  	
   

  	
   

  	
  Required Ship Date:

  	
   

  	
   

  	
   

  
	
  Item

  	
   

  	
  Quantity

  	
   

  	
  Part No.

  	
   

  	
  Description

  	
   

  	
  Unit

  	
   

  	
  Unit Price

  	
   

  	
  Total

  	
   

  
	
  1

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
  Process Equipment Quote SB063006

  	
   

  	
  Lump Sum

  	
   

  	
  $

  	
  4,324,627.00

  	
   

  	
  $

  	
  4,324,627.00

  	
   

  
	
  2

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
  [*]Quote SB070606

  	
   

  	
  Lump Sum

  	
   

  	
  $

  	
  1,299,327.00

  	
   

  	
  $

  	
  1,299,327.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  TOTAL OF PURCHASE ORDER

  	
   

  	
   

  	
   

  	
  $

  	
  5,623,954.00

  	
   

  

 

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

WITH THIS PURCHASE ORDER, THE
BUYER HAS ACCEPTED THE SELLER’S ATTACHED TERMS AND CONDITIONS.

	
  /s/ Dick Talley

  	
   

  	
  7/10/06

  
	
   

  	
   

  	
    Date

  
	
  Dick Talley

  	
   

  	
   

  
	
  President - COO 

  	
   

  	
   

  
	
  Biosource America,
  Inc

  	
   

  	
   

  

 

 

 

	
  June 30, 2006

  	
  

  
	
   

  
	
  Mr. Dick Talley

  
	
  BIOSOURCE FUELS

  
	
  600 Dewey Boulevard, Suite B

  
	
  Butte, MT 59701

  
	
   

  
	
  Quotation
  Number SB063006

  

Mr.
Talley,

Mueller
Field Operations, Inc. is pleased to submit our quotation for process and
distillation area vessels as necessary to support three (3) 60 MMGPY biodiesel
plants to be located in Illinois and Oklahoma.

Our
proposal assumes the equipment quoted is identical to your previous order for
the Anamax and Scott Petroleum facilities and includes the high shear agitators
required for the Series 200 reactors.

	
  Drawings:

  	
  Due to the priority assigned to the Anamax and Scott
  Petroleum project, please allow approximately 2-6 weeks for the preparation
  and submittal of shop drawings for approval prior to fabrication. To
  facilitate the orderly delivery of equipment to the jobsite, we propose to
  prepare the drawings in a sequence identical to the one employed on the
  Anamax project.

  
	
   

  	
   

  
	
   

  	
  Our proposal has significantly reduced the
  engineering hours for all vessels as we anticipate the drawings will only
  require minor title block changes.

  
	
   

  	
   

  
	
   

  	
  Allow 2 weeks for final engineering and release to
  production

  
	
   

  	
   

  
	
  Shipping Schedule:

  	
  The Series 200, 300, 400 & 700 series vessels
  will be ready for shipment by 11/13/2006. The balance of all equipment
  included in this quotation will ship no later than 12/18/2006.

  
	
   

  	
   

  
	
  Terms:

  	
  Wire Transfer

  
	
   

  	
  25% down with order and prior to issuance of
  engineering or purchase of major material.

  
	
   

  	
  25% due upon submittal of approval drawings.

  
	
   

  	
  Monthly progress payments thereafter.

  
	
   

  	
   

  
	
  Taxes:

  	
  The above quoted prices do not include sales, use,
  state, local, or any other taxes, unless specifically itemized in the
  quotation.

  
	
   

  	
   

  
	
   

  	
  Sales Tax: If the transaction will be tax-exempt,
  please provide the name of the ship-to state and your sales-tax exemption
  certificate for that state.

  

 

MUELLER
FIELD OPERATIONS, INC.

PO
BOX 6263 / 1600 W PHELPS / SPRINGFIELD MO 65801 / TEL: 800-654-8265 / FAX:
417-575-9890

Quotation #SB35622, Revision 3

 

 

	
  Corrosion Disclaimer:

  	
  Paul Mueller Company is not responsible for
  corrosion or suitability for use of any material in any particular
  application. The corrosion resistance and suitability for use of a material
  is dependent on operating environment and conditions, cleaning practices, and
  many other factors beyond the control of the equipment fabricator. The user
  of the equipment bears total responsibility for corrosion or suitability for
  use of all materials in their particular application.

  
	
   

  	
   

  
	
  FOB:

  	
  Jobsites in Illinois and Oklahoma.

  
	
   

  	
   

  
	
  Freight:

  	
  Freight cost is included. Unloading is by others.

  
	
   

  	
   

  
	
  Note:

  	
  Due to base price and material surcharge increases
  now being levied by all stainless steel mills, the above total price includes
  current material prices. We are offering you firm pricing on labor and
  material contingent upon order placement and down payment receipt by July 7,
  2006 and release to order major materials by July 28, 2006. Additional details
  can be provided at your request.

  

 

SCOPE OF SUPPLY

	
  Quantity

  	
   

  	
  Tag No.

  	
   

  	
  Description

  	
   

  	
  Capacity

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

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

 

PRICING & ORDER ACCEPTANCE

	
  Plant 2:

  	
   

  	
  $

  	
  4,324,627.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
  4,324,627.00

  	
   

  

 

The above
pricing is based upon equipment for all three facilities being ordered at the
same time.

Order Acceptance

I hereby order the goods
described, in accordance with the above described Mueller Field Operations,
Inc. proposal and additional terms and conditions of sale attached herein.

	
   

  	
  BIO SOURCE AMERICA, INC

  	
   

  
	
   

  	
  (Name of
  Purchaser)

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Dick Talley

  	
   

  
	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DICK TALLEY

  	
   

  
	
   

  	
  (Printed Name)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PRESIDENT &
  COO

  	
   

  
	
   

  	
  (Title)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  7-10-06

  	
   

  	
  BSA - PLANT TWO - 001

  	
   

  
	
   

  	
  (Date)

  	
   

  	
  (Purchase Order
  Number)

  	
   

  

 

Mr. Steve Biggers 

Regional Sales Manager 

Processing
Systems & Equipment

Attachments:        Additional Terms and Conditions of Sale
(PDF)

SB063006

We
do more than “tanks”...We provide Processing Solutions; offering integrated
systems, modular fabrication, field construction, plant maintenance and repair,
and complete turnkey project execution.

MUELLER IS YOUR FULL SERVICE PROVIDER.

 

 

 

	
  July 6, 2006

  	
  

  
	
   

  
	
  Mr. Dick Talley

  
	
  BIOSOURCE FUELS

  
	
  600 Dewey Boulevard, Suite B

  
	
  Butte, MT 59701

  
	
   

  
	
  Quotation
  Number SB070606

  

Mr.
Talley,

Mueller Field Operations, Inc. is pleased to submit our quotation for
process and distillation area heat exchangers as necessary to support three (3)
60 MMGPY biodiesel plants to be located in Illinois and Oklahoma.

Our proposal assumes the equipment quoted is identical to your previous
order for the Anamax and Scott Petroleum facilities.

	
  Drawings:

  	
  Due to the priority assigned to the Anamax and Scott
  Petroleum project, please allow approximately 2-6 weeks for the preparation
  and submittal of shop drawings for approval prior to fabrication. To
  facilitate the orderly delivery of equipment to the jobsite, we propose to
  prepare the drawings in a sequence identical to the one employed on the
  Anamax project.

  
	
   

  	
   

  
	
   

  	
  Our proposal has significantly reduced the
  engineering hours for all heat exchangers as we anticipate the drawings will
  only require minor title block changes.

  
	
   

  	
   

  
	
   

  	
  Allow 2 weeks for final engineering and release to
  production.

  
	
   

  	
   

  
	
  Shipping Schedule:

  	
  The heat exchangers included in this quotation will
  ship no later than 12/18/2006.

  
	
   

  	
   

  
	
  Terms:

  	
  Wire Transfer

  
	
   

  	
  25% down with order and prior to issuance of
  engineering or purchase of major material.

  
	
   

  	
  25% due upon submittal of approval drawings.

  
	
   

  	
  Monthly progress payments thereafter.

  
	
   

  	
   

  
	
  Taxes:

  	
  The above quoted prices do not include sales, use,
  state, local, or any other taxes, unless specifically itemized in the
  quotation.

  
	
   

  	
   

  
	
   

  	
  Sales Tax: If the transaction will be tax-exempt,
  please provide the name of the ship-to state and your sales-tax exemption
  certificate for that state.

  

 

MUELLER
FIELD OPERATIONS, INC.

PO
BOX 6263 / 1600 W PHELPS / SPRINGFIELD MO 65801 / TEL: 800-654-8265 / FAX:
417-575-9890

Quotation #SB070606

 

 

	
  Corrosion Disclaimer:

  	
  Paul Mueller Company is not responsible for
  corrosion or suitability for use of any material in any particular application.
  The corrosion resistance and suitability for use of a material is dependent
  on operating environment and conditions, cleaning practices, and many other
  factors beyond the control of the equipment fabricator. The user of the
  equipment bears total responsibility for corrosion or suitability for use of
  all materials in their particular application.

  
	
   

  	
   

  
	
  FOB:

  	
  Jobsites in Illinois and Oklahoma.

  
	
   

  	
   

  
	
  Freight:

  	
  Freight cost is included. Unloading is by others.

  
	
   

  	
   

  
	
  Note:

  	
  Due to base price and material surcharge increases
  now being levied by all stainless steel mills, the above total price includes
  current material prices. We are offering you firm pricing on labor and
  material contingent upon order placement and down payment receipt by July 13,
  2006 and release to order major materials by August 3, 2006. Additional
  details can be provided at your request.

  

 

SCOPE OF
SUPPLY, PER PLANT

	
  Quantity

  	
   

  	
  Tag No.

  	
   

  	
  Description

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

 

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

 

PRICING & ORDER ACCEPTANCE

	
  Plant 2:

  	
   

  	
  $

  	
  1,299,327.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
  1,299,327.00

  	
   

  

 

The above pricing is based upon equipment for all
three facilities being ordered at the same time.

Order Acceptance

I hereby order the goods
described, in accordance with the above described Mueller Field Operations,
Inc. proposal and additional terms and conditions of sale attached herein.

	
   

  	
  BIO SOURCE AMERICA, INC

  	
   

  
	
   

  	
  (Name of
  Purchaser)

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Dick Talley

  	
   

  
	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DICK TALLEY

  	
   

  
	
   

  	
  (Printed Name)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PRESIDENT &
  COO

  	
   

  
	
   

  	
  (Title)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  7-10-06

  	
   

  	
  BSA - PLANT TWO - 001

  	
   

  
	
   

  	
  (Date)

  	
   

  	
  (Purchase Order
  Number)

  	
   

  

 

Mr. Steve Biggers 

Regional Sales Manager 

Processing
Systems & Equipment

Attachments:     Additional
Terms and Conditions of Sale (PDF)

SB070606

We
do more than “tanks”...We provide Processing Solutions; offering integrated
systems, modular fabrication, field construction, plant maintenance and repair,
and complete turnkey project execution.

MUELLER
IS YOUR FULL SERVICE PROVIDER.

 

MUELLER

Field Operations Additional Terms and Conditions of Sale

1.             PURCHASE AND SALE. The goods shall be sold in accordance with
the terms and conditions on the face hereof and the following terms and
conditions, which shall constitute the entire Agreement of the parties with
respect to the sale of goods.

2.             ACCEPTANCE. This sale of goods is conditioned upon
Purchaser’s acceptance of the terms and conditions herein contained. Seller
hereby expressly rejects any and all terms in any purchase order or other
document of Purchaser which are in addition to, different from, or inconsistent
with these terms and conditions. If this is a Quotation, it is an offer to
sell, subject to final approval by Seller. The offer may be withdrawn at any
time prior to receiving Purchaser’s acceptance, and the offer shall expire automatically
if not accepted within thirty (30) days from the date on the face hereof.

3.             CREDIT APPROVAL. Payment must be made in full prior to the
commencement of any product preparation or fabrication unless alternative
payment arrangements are included within the Sales Order and subsequently
approved by Seller’s Credit Department. All alternative payment arrangements
contained in any Sales Order are strictly contigent upon final approval by
Seller’s Credit Department. Upon Purchaser’s acceptance of any Sales Order
containing alternative payment terms, Seller’s Credit Department shall have
thirty (30) days in which to accept or reject the Sales Order in its sole
discretion based on the creditworthiness of Purchaser. An evaluation of
creditworthiness shall include, but not be limited to, a review of Seller’s
records of Purchaser’s payment history. Any such Sales Order not accepted
within the thirty (30) day period shall be conclusively deemed rejected. For
alternative payment terms, Seller may require Purchaser to execute Seller’s
form of security agreement.

4.             PAYMENT. Purchaser shall make payments in accordance
with the payment arrangements approved by Seller’s Credit Department. If Seller
delays shipment as requested by Purchaser under paragraph 6 hereof, Purchaser
shall pay the full purchase price (or the final installment) within thirty (30)
days after the goods have been completed, and, in addition, shall pay a
reasonable storage charge as determined by the Seller. Any balance not paid
when due shall draw interest at the rate of 1.5% per month (18% A.P.R.) on the
average daily balance until paid or the highest rate allowed by applicable law,
whichever is less. Notwithstanding anything to the contrary in paragraph 16
hereof, the parties agree that Seller may bring suit to collect any unpaid
balance due from Purchaser (or submit such claim to arbitration in Seller’s
sole discretion), and Purchaser shall pay all attorney fees and court costs incurred
by Seller in connection with the suit to collect such unpaid balance. The
parties agree that any such suit brought by Seller shall not be stayed by
virtue of any arbitration proceeding between the parties, shall proceed to
judgment by the Court, and that all of Purchaser’s defenses, avoidances and counterclaims
(other than the defense of payment) which it might have shall be submitted to
arbitration as provided in paragraph 16. All payments shall be made in currency
of the United States.

5.             SPECIFICATIONS. If Seller submits any drawings or other
specifications to Purchaser for approval, and Purchaser does not approve or
disapprove of them within the time specified by Seller, Seller shall have the
right to ship the goods at a later date and charge a higher purchase price, as
reasonably necessitated by Purchaser’s delay.

6.             SHIPMENT. So long as Purchaser is not in default,
Seller shall ship the goods upon their completion, except that, subject to
paragraph 4 hereof, Seller shall delay shipment as requested by Purchaser in
writing. Since the goods are to be manufactured to special order, the shipment
date designated on the face hereof is estimated and not guaranteed; Seller may
ship the goods within a reasonable period either before or after the designated
shipment date. Unless otherwise provided on the face hereof, Seller may ship
the goods by any mode, and in full or partial shipments. Seller shall not be liable
for any failure or delay to manufacture or ship the goods due to causes beyond
its control, including without limitation, acts of God, wars, terrorism,
sabotage, casualties, accidents, labor disputes or shortages, governmental
laws, ordinances, rules or regulations (such as priorities, requisitions,
allocations and price adjustment restrictions), or an inability to obtain
material, equipment or transportation.

7.             TITLE, RISK OF LOSS. Unless otherwise provided on the face hereof,
the goods shall be shipped F.O.B. Seller’s plant, and title to the goods and
all risks of loss with respect to the goods shall transfer to the Purchaser
after they have been placed in the possession of a carrier, which carrier may
include Mueller Transportation, Inc. If Seller agrees to ship the goods F.O.B.
destination, Purchaser shall bear all risks of loss with respect to the goods
upon their tender to Purchaser at the point of destination.

8.             INSPECTION. Purchaser shall inspect the goods at the time
and place of delivery and Purchaser agrees that such occasion shall constitute
a reasonable opportunity for its full inspection. The parties agree that
Purchaser’s failure to reject the goods within three (3) business days shall
constitute acceptance of the goods. After Purchaser inspects and accepts the
goods, Purchaser shall, except as provided in paragraph 10 hereof, be deemed to
have acknowledged that the goods comply with all specifications,
representations and warranties of Seller, and to have waived any claim or cause
of action against Seller with respect to the goods. Purchaser is encouraged to
visit Seller’s plant prior to shipment to inspect and, when possible, witness
testing of the goods. If return of the goods is impractical Purchaser may be
required to inspect the goods at Seller’s plant prior to shipment, which shall
be deemed to be a reasonable opportunity to inspect and, upon satisfactory
completion, shall constitute Purchaser’s acceptance of the goods.

9.             TAXES AND DUTIES. In addition to the purchase price, Purchaser
shall pay all sales, use and excise taxes, tariffs, duties and other charges imposed
by any country, state, locality or other political subdivision in connection
with the sale of the goods. For tax purposes, title to the goods shall pass
from Seller to Purchaser upon being loaded for shipment, whether by common
carrier, or Purchaser’s own trucks, or otherwise.

10.          WARRANTIES. Seller warrants to Purchaser that the goods
are free of defects in material and workmanship. THIS WARRANTY IS EXCLUSIVE AND
IN LIEU OF ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, OR OTHER WARRANTY, WHETHER EXPRESSED OR IMPLIED, EXCEPT THE WARRANTY
OF TITLE AND AGAINST PATENT INFRINGEMENT. If the goods do not conform to this
warranty within one (1) year from the date of original shipment (or from the
earlier date of completion if Seller delays shipment as requested by Purchaser
under paragraph 6 hereof), Seller, at its election and expense, shall repair or
replace the goods, or refund the purchase price for such goods, but only after
receiving written notification of any defects, and substantiation that the
goods have been stored, installed, maintained and operated in accordance with
Seller’s recommendations and standard industry practice. Purchaser shall not
return goods claimed to be defective except at the direction of the Seller. All
charges for transporting such goods to Seller shall be prepaid by Purchaser,
and Seller shall return such goods to Purchaser freight collect.

If
Seller determines that it is impractical to have the goods returned, Seller may
elect (i) to repair the goods at Purchaser’s facility, using independent
contractors or Seller’s own personnel, (ii) to pay Purchaser a reasonable
allowance for repairs, but not exceeding the amount which Seller would have
paid for its own employees, or (iii) refund the purchase price for such goods.
During the course of repairs, Purchaser, without charge, shall fully cooperate
with, and make the goods and its facilities available to, Seller and Seller’s
agents and employees.

THIS
WARRANTY IS EXCLUSIVE. THE SOLE AND EXCLUSIVE OBLIGATION OF SELLER SHALL BE, AT
ITS ELECTION, TO REPAIR, REPLACE, OR REFUND THE PURCHASE PRICE OF DEFECTIVE
GOODS IN THE MANNER AND FOR THE PERIOD PROVIDED ABOVE. SELLER SHALL NOT HAVE
ANY OTHER OBLIGATION WITH RESPECT TO THE GOODS, WHETHER BASED ON CONTRACT, NEGLIGENCE,
STRICT LIABILITY, TORT OR OTHERWISE. THIS WARRANTY DOES NOT EXTEND TO PRODUCTS
NOT OF SELLER’S MANUFACTURE; AS TO SUCH PRODUCTS, SELLER CONVEYS TO PURCHASER
THE WARRANTY, IF ANY, OF SELLER’S SUPPLIER.

ORAL
STATEMENTS BY SELLER’S EMPLOYEES OR REPRESENTATIVES DO NOT CONSTITUTE
WARRANTIES, shall not be relied upon by Purchaser, and are not part of the
contract for sale. NO OTHER WARRANTIES are given beyond those set forth in this
document.

11.          LIMITATION OF LIABILITY. Purchaser’s exclusive remedy for claims
arising hereunder shall be for damages. Seller shall not under any
circumstances be liable for special or consequential damages, such as, but not
limited to, damage or loss of other property or equipment, loss of profits or
revenue, costs of capital, or claims by Purchaser’s customers. The remedies of
the Purchaser set forth herein are exclusive, and the liability of the Seller
with respect to the goods, or anything done in connection therewith, or from
the manufacture, sale, delivery, resale, installation or use of any of the
goods sold hereunder, whether arising out of contract, negligence, strict
liability, tort, or under any warranty, or otherwise, shall not exceed the
price of the goods upon which such liability is based.

SELLER
SHALL NOT BE LIABLE FOR CORROSION OR SUITABILITY OF USE OF ANY MATERIAL IN ANY
PARTICULAR APPLICATION, CORROSION RESISTANCE AND SUITABILITY FOR USE OF ANY
MATERIAL IS DEPENDENT UPON OPERATING ENVIRONMENT AND CONDITIONS, CLEANING
AGENTS AND PRACTICES, AND MANY OTHER FACTORS BEYOND THE CONTROL OF SELLER.
PURCHASER BEARS ALL RESPONSIBILITY AND RISK FOR CORROSION OR SUITABILITY FOR
USE OF ALL MATERIALS IN THEIR PARTICULAR APPLICATION.

12.          CLEANLINESS. Unless otherwise provided on the face hereof,
Seller’s obligation is to provide completed equipment to the shipping carrier
in broom-clean condition. PRIOR TO PLACING THE EQUIPMENT INTO SERVICE, THE
EQUIPMENT MAY REQUIRE CLEANING to remove road film, adhesive film from the
protective sheeting, abrasives dust, or other residues resulting from the
manufacturing process and shipment.

13.          CANCELLATION. Purchaser shall not have any right to cancel
this Agreement without Seller’s prior written consent, and without paying
Seller a cancellation charge equal to total selling price less the estimated
direct labor and materials not expended less the salvage value of materials
already purchased.

14.          REMEDIES. If Purchaser fails to make required payments
in a timely manner, or breaches any of the other terms or conditions hereof or
any other agreement with Seller, Seller shall have the right to terminate this
Agreement and withhold further shipments on this or any other order. The
remedies provided herein shall be cumulative and in addition to any other
remedies allowed by law or in equity. The failure of Seller to exercise any
remedy shall not constitute a waiver of the right to exercise that, or any other
remedy; and no waiver of any breach of any provision herein shall operate as a
waiver of any other breach of the same or any other provision.

15.          APPLICABLE LAW. This Agreement shall be governed by the laws
of the State of Missouri, without reference to its choice of law provisions.
Purchaser hereby consents to personal jurisdiction of the state and federal
courts located in Springfield, Missouri, and agrees that any suit shall be
brought solely in such courts. In the event of a suit between the parties, THE
PARTIES EXPRESSLY WAIVE ANY RIGHT TO TRIAL BY JURY.

16.          ARBITRATION. Except as provided in paragraph 4 hereof, any
dispute, controversy or claim arising out of or relating to this Agreement or
any purchase order issued by Purchaser and accepted by Seller hereunder
(including, but not limited to, any dispute relating to the existence,
interpretation, breach or termination hereof or thereof) that cannot be
resolved by the parties involved, within ninety (90) days of notification by
either party of the dispute, shall be resolved by binding arbitration
administered by, and in accordance with the Arbitration Rules of the American
Arbitration Association. The award of the arbitrator(s) may be entered by any
court having jurisdiction thereof. The costs of the arbitration shall be shared
equally by the parties, and each party shall bear its own attorney fees and expenses.
Any arbitration proceeding shall be conducted exclusively in Springfield,
Missouri.

17.          MISCELLANEOUS. This Agreement is intended by the parties as
a complete and exclusive statement of the terms of their agreement. No course
of prior dealings between the parties and no usage of trade shall be relevant
to supplement or explain any term used herein, and no modification shall be
binding on Seller unless made in a writing signed by Seller. No claim or right
arising out of a breach of this Agreement can be discharged in whole or in part
by a waiver or renunciation of the claim or right unless the waiver or
renunciation is supported by separate consideration and is in a writing signed
by Seller. Purchaser shall not assign its rights or delegate its duties under
this Agreement. Facsimile and E-mail signatures of the parties shall constitute
original signatures for all purposes. The invalidity of any portion of this
Agreement shall not affect the validity of any remaining portions thereof.

THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH
MAY BE ENFORCED BY THE PARTIES.Exhibit 10.18

	
  

  	
   

  	
  Purchase Order 

  

 

	
  600 Dewey Boulevard

  	
   

  	
  kgriffith@biosourcefuels.com

  	
   

  	
  Purchase Order No:

  	
   

  	
  BSA-PLANT
  

  
	
  Suite B

  	
   

  	
  Facsimile:    406-494-6645

  	
   

  	
   

  	
   

  	
  THREE
  -001 

  
	
  Butte, Montana 59701

  	
   

  	
  Telephone:    406-494-6644

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mueller Field Operations

  	
   

  	
  Order
  Date:

  	
   

  	
  July 10th, 2006

  
	
  1600 W Phelps

  	
   

  	
  Payment
  Terms:

  	
   

  	
  Wire Transfer

  
	
  Springfield, MO 65801

  	
   

  	
   

  	
   

  	
  25% with order

  
	
   

  	
   

  	
   

  	
   

  	
  25% with shop
  drawings

  
	
  FAX:      417-575-9890

  	
   

  	
   

  	
   

  	
  Monthly Payments
  thereafter

  
	
  Phone:   800-654-8265

  	
   

  	
  F.O.B.
  Point:

  	
   

  	
  Jobsite in
  Illinois

  
	
  Attn:       Steve
  Biggers

  	
   

  	
  Freight
  Terms:

  	
   

  	
  Included in
  pricing

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ship To:

  	
   

  	
   

  	
   

  	
  Invoice To:

  
	
  BIOSOURCE AMERICA, INC

  	
   

  	
   

  	
   

  	
  BIOSOURCE FUELS, LLC

  
	
  TBD

  	
   

  	
   

  	
   

  	
  600 Dewey Boulevard

  
	
   

  	
   

  	
   

  	
   

  	
  Suite B

  
	
   

  	
   

  	
   

  	
   

  	
  Butte, Montana 59701

  
	
  Phone: 406-494-6644

  	
   

  	
   

  	
   

  	
  Phone: 406-494-6644

  
	
  Attn:       Dick
  Talley

  	
   

  	
   

  	
   

  	
  Attn: Accounts Payable

  

 

	
  Tax ID:

  	
   

  	
   

  	
   

  	
  Ship via:

  	
   

  	
   

  	
   

  	
  Required Ship Date:

  	
   

  	
   

  	
   

  

 

	
  Item

  	
   

  	
  Quantity

  	
   

  	
  Part No.

  	
   

  	
  Description

  	
   

  	
  Unit

  	
   

  	
  Unit Price

  	
   

  	
  Total

  	
   

  
	
  1

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
  Process Equipment Quote SB063006

  	
   

  	
  Lump Sum

  	
   

  	
  $

  	
  4,324,627.00

  	
   

  	
  $

  	
  4,324,627.00

  	
   

  
	
  2

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
  [*] Quote SB070606

  	
   

  	
  Lump Sum

  	
   

  	
  $

  	
  1,299,327.00

  	
   

  	
  $

  	
  1,299,327.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  TOTAL OF PURCHASE ORDER

  	
   

  	
   

  	
   

  	
  $

  	
  5,623,954.00

  	
   

  

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

WITH THIS PURCHASE ORDER, THE
BUYER HAS ACCEPTED THE SELLER’S ATTACHED TERMS AND CONDITIONS.

	
  /s/ Dick Talley

  	
   

  	
   

  
	
   

  	
   

  	
  7/10/06

  
	
  Dick Talley

  	
   

  	
    Date

  
	
  President - COO 

  	
   

  	
   

  
	
  Biosource America,
  Inc

  	
   

  	
   

  

 

 

 

	
  June 30, 2006

  	
  

  
	
   

  
	
  Mr. Dick Talley

  
	
  BIOSOURCE FUELS

  
	
  600 Dewey Boulevard, Suite B

  
	
  Butte, MT 59701

  
	
   

  
	
  Quotation
  Number SB063006

  

Mr.
Talley,

Mueller
Field Operations, Inc. is pleased to submit our quotation for process and
distillation area vessels as necessary to support three (3) 60 MMGPY biodiesel
plants to be located in Illinois and Oklahoma.

Our
proposal assumes the equipment quoted is identical to your previous order for
the Anamax and Scott Petroleum facilities and includes the high shear agitators
required for the Series 200 reactors.

	
  Drawings:

  	
  Due to the priority assigned to the Anamax and Scott
  Petroleum project, please allow approximately 2-6 weeks for the preparation
  and submittal of shop drawings for approval prior to fabrication. To
  facilitate the orderly delivery of equipment to the jobsite, we propose to
  prepare the drawings in a sequence identical to the one employed on the
  Anamax project.

  
	
   

  	
   

  
	
   

  	
  Our proposal has significantly reduced the
  engineering hours for all vessels as we anticipate the drawings will only
  require minor title block changes.

  
	
   

  	
   

  
	
   

  	
  Allow 2 weeks for final engineering and release to
  production

  
	
   

  	
   

  
	
  Shipping Schedule:

  	
  The Series 200, 300, 400 & 700 series vessels
  will be ready for shipment by 11/13/2006. The balance of all equipment
  included in this quotation will ship no later than 12/18/2006.

  
	
   

  	
   

  
	
  Terms:

  	
  Wire Transfer

  
	
   

  	
  25% down with order and prior to issuance of
  engineering or purchase of major material.

  
	
   

  	
  25% due upon submittal of approval drawings.

  
	
   

  	
  Monthly progress payments thereafter.

  
	
   

  	
   

  
	
  Taxes:

  	
  The above quoted prices do not include sales, use,
  state, local, or any other taxes, unless specifically itemized in the
  quotation.

  
	
   

  	
   

  
	
   

  	
  Sales Tax: If the transaction will
  be tax-exempt, please provide the name of the ship-to state and your
  sales-tax exemption certificate for that state.

  

 

MUELLER
FIELD OPERATIONS, INC.

PO
BOX 6263 / 1600 W PHELPS / SPRINGFIELD MO 65801 / TEL: 800-654-8265 / FAX:
417-575-9890

Quotation #SB35622, Revision 3

 

 

	
  Corrosion Disclaimer:

  	
  Paul Mueller Company is not responsible for
  corrosion or suitability for use of any material in any particular
  application. The corrosion resistance and suitability for use of a material
  is dependent on operating environment and conditions, cleaning practices, and
  many other factors beyond the control of the equipment fabricator. The user
  of the equipment bears total responsibility for corrosion or suitability for
  use of all materials in their particular application.

  
	
   

  	
   

  
	
  FOB:

  	
  Jobsites in Illinois and Oklahoma.

  
	
   

  	
   

  
	
  Freight:

  	
  Freight cost is included. Unloading is by others.

  
	
   

  	
   

  
	
  Note:

  	
  Due to base price and material surcharge increases
  now being levied by all stainless steel mills, the above total price includes
  current material prices. We are offering you firm pricing on labor and
  material contingent upon order placement and down payment receipt by July 7,
  2006 and release to order major materials by July 28, 2006. Additional details
  can be provided at your request.

  

 

 

SCOPE OF SUPPLY

	
  Quantity

  	
   

  	
  Tag No.

  	
   

  	
  Description

  	
   

  	
  Capacity

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

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

 

PRICING & ORDER
ACCEPTANCE

	
  Plant 3:

  	
   

  	
  $

  	
  4,324,627.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
  4,324,627.00

  	
   

  

 

The above pricing is based upon equipment for all three
facilities being ordered at the same time.

Order Acceptance

I hereby order the goods
described, in accordance with the above described Mueller Field Operations,
Inc. proposal and additional terms and conditions of sale attached herein.

	
   

  	
  BIOSOURCE AMERICA, INC

  	
   

  
	
   

  	
  (Name of
  Purchaser)

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Dick Talley

  	
   

  
	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DICK TALLEY

  	
   

  
	
   

  	
  (Printed Name)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PRESIDENT &
  COO

  	
   

  
	
   

  	
  (Title)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  7-10-06

  	
   

  	
  BSA - PLANT THREE - 001

  	
   

  
	
   

  	
  (Date)

  	
   

  	
  (Purchase Order
  Number)

  	
   

  

 

Mr. Steve Biggers 

Regional Sales Manager 

Processing
Systems & Equipment

Attachments:   Additional Terms
and Conditions of Sale (PDF)

SB063006

We
do more than “tanks”...We provide Processing Solutions; offering integrated
systems, modular fabrication, field construction, plant maintenance and repair,
and complete turnkey project execution.

MUELLER IS YOUR FULL SERVICE PROVIDER.

 

 

	
  July 6, 2006

  	
  

  
	
   

  
	
  Mr. Dick Talley

  
	
  BIOSOURCE FUELS

  
	
  600 Dewey Boulevard, Suite B

  
	
  Butte, MT 59701

  
	
   

  
	
  Quotation
  Number SB070606

  

Mr.
Talley,

Mueller Field Operations, Inc. is pleased to submit our quotation for
process and distillation area heat exchangers as necessary to support three (3)
60 MMGPY biodiesel plants to be located in Illinois and Oklahoma.

Our proposal assumes the equipment quoted is identical to your previous
order for the Anamax and Scott Petroleum facilities.

	
  Drawings:

  	
  Due to the priority assigned to the Anamax and Scott
  Petroleum project, please allow approximately 2-6 weeks for the preparation
  and submittal of shop drawings for approval prior to fabrication. To
  facilitate the orderly delivery of equipment to the jobsite, we propose to
  prepare the drawings in a sequence identical to the one employed on the
  Anamax project.

  
	
   

  	
   

  
	
   

  	
  Our proposal has significantly reduced the engineering
  hours for all heat exchangers as we anticipate the drawings will only require
  minor title block changes.

  
	
   

  	
   

  
	
   

  	
  Allow 2 weeks for final engineering and release to
  production.

  
	
   

  	
   

  
	
  Shipping Schedule:

  	
  The heat exchangers included in this quotation will
  ship no later than 12/18/2006.

  
	
   

  	
   

  
	
  Terms:

  	
  Wire Transfer

  
	
   

  	
  25% down with order and prior to issuance of
  engineering or purchase of major material.

  
	
   

  	
  25% due upon submittal of approval drawings.

  
	
   

  	
  Monthly progress payments thereafter.

  
	
   

  	
   

  
	
  Taxes:

  	
  The above quoted prices do not include sales, use,
  state, local, or any other taxes, unless specifically itemized in the
  quotation.

  
	
   

  	
   

  
	
   

  	
  Sales Tax: If the transaction will
  be tax-exempt, please provide the name of the ship-to state and your
  sales-tax exemption certificate for that state.

  

 

MUELLER
FIELD OPERATIONS, INC.

PO
BOX 6263 / 1600 W PHELPS / SPRINGFIELD MO 65801 / TEL: 800-654-8265 / FAX:
417-575-9890

Quotation #SB070606

 

 

	
  Corrosion Disclaimer:

  	
  Paul Mueller Company is not responsible for corrosion
  or suitability for use of any material in any particular application. The
  corrosion resistance and suitability for use of a material is dependent on
  operating environment and conditions, cleaning practices, and many other
  factors beyond the control of the equipment fabricator. The user of the
  equipment bears total responsibility for corrosion or suitability for use of
  all materials in their particular application.

  
	
   

  	
   

  
	
  FOB:

  	
  Jobsites in Illinois and Oklahoma.

  
	
   

  	
   

  
	
  Freight:

  	
  Freight cost is included. Unloading is by others.

  
	
   

  	
   

  
	
  Note:

  	
  Due to base price and material surcharge increases
  now being levied by all stainless steel mills, the above total price includes
  current material prices. We are offering you firm pricing on labor and
  material contingent upon order placement and down payment receipt by July 13,
  2006 and release to order major materials by August 3, 2006. Additional
  details can be provided at your request.

  

 

 

SCOPE OF SUPPLY, PER PLANT

	
  Quantity

  	
   

  	
  Tag No.

  	
   

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

 

PRICING & ORDER ACCEPTANCE

	
  Plant 3:

  	
   

  	
  $

  	
  1,299,327.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
  1,299,327.00

  	
   

  

 

The above pricing is based upon equipment for all
three facilities being ordered at the same time.

Order Acceptance

I hereby order the goods
described, in accordance with the above described Mueller Field Operations,
Inc. proposal and additional terms and conditions of sale attached herein.

	
   

  	
  BIOSOURCE AMERICA, INC

  	
   

  
	
   

  	
  (Name of
  Purchaser)

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Dick Talley

  	
   

  
	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DICK TALLEY

  	
   

  
	
   

  	
  (Printed Name)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PRESIDENT &
  COO

  	
   

  
	
   

  	
  (Title)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  7-10-06

  	
   

  	
  BSA-PLANT THREE - 001

  	
   

  
	
   

  	
  (Date)

  	
   

  	
  (Purchase Order Number)

  	
   

  

 

Mr. Steve Biggers 

Regional Sales Manager 

Processing
Systems & Equipment

Attachments:        Additional
Terms and Conditions of Sale (PDF)

SB070606

We
do more than “tanks”...We provide Processing Solutions; offering integrated
systems, modular fabrication, field construction, plant maintenance and repair,
and complete turnkey project execution.

MUELLER
IS YOUR FULL SERVICE PROVIDER.

 

MUELLER

Field Operations Additional Terms and Conditions of Sale

1.             PURCHASE AND SALE. The goods shall be sold in accordance with
the terms and conditions on the face hereof and the following terms and
conditions, which shall constitute the entire Agreement of the parties with
respect to the sale of goods.

2.             ACCEPTANCE. This sale of goods is conditioned upon
Purchaser’s acceptance of the terms and conditions herein contained. Seller
hereby expressly rejects any and all terms in any purchase order or other
document of Purchaser which are in addition to, different from, or inconsistent
with these terms and conditions. If this is a Quotation, it is an offer to
sell, subject to final approval by Seller. The offer may be withdrawn at any
time prior to receiving Purchaser’s acceptance, and the offer shall expire automatically
if not accepted within thirty (30) days from the date on the face hereof.

3.             CREDIT APPROVAL. Payment must be made in full prior to the
commencement of any product preparation or fabrication unless alternative
payment arrangements are included within the Sales Order and subsequently
approved by Seller’s Credit Department. All alternative payment arrangements
contained in any Sales Order are strictly contigent upon final approval by
Seller’s Credit Department. Upon Purchaser’s acceptance of any Sales Order
containing alternative payment terms, Seller’s Credit Department shall have
thirty (30) days in which to accept or reject the Sales Order in its sole
discretion based on the creditworthiness of Purchaser. An evaluation of
creditworthiness shall include, but not be limited to, a review of Seller’s
records of Purchaser’s payment history. Any such Sales Order not accepted
within the thirty (30) day period shall be conclusively deemed rejected. For
alternative payment terms, Seller may require Purchaser to execute Seller’s
form of security agreement.

4.             PAYMENT. Purchaser shall make payments in accordance
with the payment arrangements approved by Seller’s Credit Department. If Seller
delays shipment as requested by Purchaser under paragraph 6 hereof, Purchaser
shall pay the full purchase price (or the final installment) within thirty (30)
days after the goods have been completed, and, in addition, shall pay a
reasonable storage charge as determined by the Seller. Any balance not paid
when due shall draw interest at the rate of 1.5% per month (18% A.P.R.) on the
average daily balance until paid or the highest rate allowed by applicable law,
whichever is less. Notwithstanding anything to the contrary in paragraph 16
hereof, the parties agree that Seller may bring suit to collect any unpaid
balance due from Purchaser (or submit such claim to arbitration in Seller’s
sole discretion), and Purchaser shall pay all attorney fees and court costs incurred
by Seller in connection with the suit to collect such unpaid balance. The
parties agree that any such suit brought by Seller shall not be stayed by
virtue of any arbitration proceeding between the parties, shall proceed to
judgment by the Court, and that all of Purchaser’s defenses, avoidances and counterclaims
(other than the defense of payment) which it might have shall be submitted to
arbitration as provided in paragraph 16. All payments shall be made in currency
of the United States.

5.             SPECIFICATIONS. If Seller submits any drawings or other
specifications to Purchaser for approval, and Purchaser does not approve or
disapprove of them within the time specified by Seller, Seller shall have the
right to ship the goods at a later date and charge a higher purchase price, as
reasonably necessitated by Purchaser’s delay.

6.             SHIPMENT. So long as Purchaser is not in default,
Seller shall ship the goods upon their completion, except that, subject to
paragraph 4 hereof, Seller shall delay shipment as requested by Purchaser in
writing. Since the goods are to be manufactured to special order, the shipment
date designated on the face hereof is estimated and not guaranteed; Seller may
ship the goods within a reasonable period either before or after the designated
shipment date. Unless otherwise provided on the face hereof, Seller may ship
the goods by any mode, and in full or partial shipments. Seller shall not be liable
for any failure or delay to manufacture or ship the goods due to causes beyond
its control, including without limitation, acts of God, wars, terrorism,
sabotage, casualties, accidents, labor disputes or shortages, governmental
laws, ordinances, rules or regulations (such as priorities, requisitions,
allocations and price adjustment restrictions), or an inability to obtain
material, equipment or transportation.

7.             TITLE, RISK OF LOSS. Unless otherwise provided on the face hereof,
the goods shall be shipped F.O.B. Seller’s plant, and title to the goods and
all risks of loss with respect to the goods shall transfer to the Purchaser
after they have been placed in the possession of a carrier, which carrier may
include Mueller Transportation, Inc. If Seller agrees to ship the goods F.O.B.
destination, Purchaser shall bear all risks of loss with respect to the goods
upon their tender to Purchaser at the point of destination.

8.             INSPECTION. Purchaser shall inspect the goods at the time
and place of delivery and Purchaser agrees that such occasion shall constitute
a reasonable opportunity for its full inspection. The parties agree that
Purchaser’s failure to reject the goods within three (3) business days shall
constitute acceptance of the goods. After Purchaser inspects and accepts the
goods, Purchaser shall, except as provided in paragraph 10 hereof, be deemed to
have acknowledged that the goods comply with all specifications,
representations and warranties of Seller, and to have waived any claim or cause
of action against Seller with respect to the goods. Purchaser is encouraged to
visit Seller’s plant prior to shipment to inspect and, when possible, witness
testing of the goods. If return of the goods is impractical Purchaser may be
required to inspect the goods at Seller’s plant prior to shipment, which shall
be deemed to be a reasonable opportunity to inspect and, upon satisfactory
completion, shall constitute Purchaser’s acceptance of the goods.

9.             TAXES AND DUTIES. In addition to the purchase price, Purchaser
shall pay all sales, use and excise taxes, tariffs, duties and other charges imposed
by any country, state, locality or other political subdivision in connection
with the sale of the goods. For tax purposes, title to the goods shall pass
from Seller to Purchaser upon being loaded for shipment, whether by common
carrier, or Purchaser’s own trucks, or otherwise.

10.          WARRANTIES. Seller warrants to Purchaser that the goods
are free of defects in material and workmanship. THIS WARRANTY IS EXCLUSIVE AND
IN LIEU OF ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, OR OTHER WARRANTY, WHETHER EXPRESSED OR IMPLIED, EXCEPT THE WARRANTY
OF TITLE AND AGAINST PATENT INFRINGEMENT. If the goods do not conform to this
warranty within one (1) year from the date of original shipment (or from the
earlier date of completion if Seller delays shipment as requested by Purchaser
under paragraph 6 hereof), Seller, at its election and expense, shall repair or
replace the goods, or refund the purchase price for such goods, but only after
receiving written notification of any defects, and substantiation that the
goods have been stored, installed, maintained and operated in accordance with
Seller’s recommendations and standard industry practice. Purchaser shall not
return goods claimed to be defective except at the direction of the Seller. All
charges for transporting such goods to Seller shall be prepaid by Purchaser,
and Seller shall return such goods to Purchaser freight collect.

If
Seller determines that it is impractical to have the goods returned, Seller may
elect (i) to repair the goods at Purchaser’s facility, using independent
contractors or Seller’s own personnel, (ii) to pay Purchaser a reasonable
allowance for repairs, but not exceeding the amount which Seller would have
paid for its own employees, or (iii) refund the purchase price for such goods.
During the course of repairs, Purchaser, without charge, shall fully cooperate
with, and make the goods and its facilities available to, Seller and Seller’s
agents and employees.

THIS
WARRANTY IS EXCLUSIVE. THE SOLE AND EXCLUSIVE OBLIGATION OF SELLER SHALL BE, AT
ITS ELECTION, TO REPAIR, REPLACE, OR REFUND THE PURCHASE PRICE OF DEFECTIVE
GOODS IN THE MANNER AND FOR THE PERIOD PROVIDED ABOVE. SELLER SHALL NOT HAVE
ANY OTHER OBLIGATION WITH RESPECT TO THE GOODS, WHETHER BASED ON CONTRACT, NEGLIGENCE,
STRICT LIABILITY, TORT OR OTHERWISE. THIS WARRANTY DOES NOT EXTEND TO PRODUCTS
NOT OF SELLER’S MANUFACTURE; AS TO SUCH PRODUCTS, SELLER CONVEYS TO PURCHASER
THE WARRANTY, IF ANY, OF SELLER’S SUPPLIER.

ORAL
STATEMENTS BY SELLER’S EMPLOYEES OR REPRESENTATIVES DO NOT CONSTITUTE
WARRANTIES, shall not be relied upon by Purchaser, and are not part of the
contract for sale. NO OTHER WARRANTIES are given beyond those set forth in this
document.

11.          LIMITATION OF LIABILITY. Purchaser’s exclusive remedy for claims
arising hereunder shall be for damages. Seller shall not under any
circumstances be liable for special or consequential damages, such as, but not
limited to, damage or loss of other property or equipment, loss of profits or
revenue, costs of capital, or claims by Purchaser’s customers. The remedies of
the Purchaser set forth herein are exclusive, and the liability of the Seller
with respect to the goods, or anything done in connection therewith, or from
the manufacture, sale, delivery, resale, installation or use of any of the
goods sold hereunder, whether arising out of contract, negligence, strict
liability, tort, or under any warranty, or otherwise, shall not exceed the
price of the goods upon which such liability is based.

SELLER
SHALL NOT BE LIABLE FOR CORROSION OR SUITABILITY OF USE OF ANY MATERIAL IN ANY
PARTICULAR APPLICATION, CORROSION RESISTANCE AND SUITABILITY FOR USE OF ANY
MATERIAL IS DEPENDENT UPON OPERATING ENVIRONMENT AND CONDITIONS, CLEANING
AGENTS AND PRACTICES, AND MANY OTHER FACTORS BEYOND THE CONTROL OF SELLER.
PURCHASER BEARS ALL RESPONSIBILITY AND RISK FOR CORROSION OR SUITABILITY FOR
USE OF ALL MATERIALS IN THEIR PARTICULAR APPLICATION.

12.          CLEANLINESS. Unless otherwise provided on the face hereof,
Seller’s obligation is to provide completed equipment to the shipping carrier
in broom-clean condition. PRIOR TO PLACING THE EQUIPMENT INTO SERVICE, THE
EQUIPMENT MAY REQUIRE CLEANING to remove road film, adhesive film from the
protective sheeting, abrasives dust, or other residues resulting from the
manufacturing process and shipment.

13.          CANCELLATION. Purchaser shall not have any right to cancel
this Agreement without Seller’s prior written consent, and without paying
Seller a cancellation charge equal to total selling price less the estimated
direct labor and materials not expended less the salvage value of materials
already purchased.

14.          REMEDIES. If Purchaser fails to make required payments
in a timely manner, or breaches any of the other terms or conditions hereof or
any other agreement with Seller, Seller shall have the right to terminate this
Agreement and withhold further shipments on this or any other order. The
remedies provided herein shall be cumulative and in addition to any other
remedies allowed by law or in equity. The failure of Seller to exercise any
remedy shall not constitute a waiver of the right to exercise that, or any other
remedy; and no waiver of any breach of any provision herein shall operate as a
waiver of any other breach of the same or any other provision.

15.          APPLICABLE LAW. This Agreement shall be governed by the laws
of the State of Missouri, without reference to its choice of law provisions.
Purchaser hereby consents to personal jurisdiction of the state and federal
courts located in Springfield, Missouri, and agrees that any suit shall be
brought solely in such courts. In the event of a suit between the parties, THE
PARTIES EXPRESSLY WAIVE ANY RIGHT TO TRIAL BY JURY.

16.          ARBITRATION. Except as provided in paragraph 4 hereof, any
dispute, controversy or claim arising out of or relating to this Agreement or
any purchase order issued by Purchaser and accepted by Seller hereunder
(including, but not limited to, any dispute relating to the existence,
interpretation, breach or termination hereof or thereof) that cannot be
resolved by the parties involved, within ninety (90) days of notification by
either party of the dispute, shall be resolved by binding arbitration
administered by, and in accordance with the Arbitration Rules of the American
Arbitration Association. The award of the arbitrator(s) may be entered by any
court having jurisdiction thereof. The costs of the arbitration shall be shared
equally by the parties, and each party shall bear its own attorney fees and expenses.
Any arbitration proceeding shall be conducted exclusively in Springfield,
Missouri.

17.          MISCELLANEOUS. This Agreement is intended by the parties as
a complete and exclusive statement of the terms of their agreement. No course
of prior dealings between the parties and no usage of trade shall be relevant
to supplement or explain any term used herein, and no modification shall be
binding on Seller unless made in a writing signed by Seller. No claim or right
arising out of a breach of this Agreement can be discharged in whole or in part
by a waiver or renunciation of the claim or right unless the waiver or
renunciation is supported by separate consideration and is in a writing signed
by Seller. Purchaser shall not assign its rights or delegate its duties under
this Agreement. Facsimile and E-mail signatures of the parties shall constitute
original signatures for all purposes. The invalidity of any portion of this
Agreement shall not affect the validity of any remaining portions thereof.

THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH
MAY BE ENFORCED BY THE PARTIES.

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