Document:

ex10_3.htm

    EXHIBIT
10.3

    2007-09-27

    
      
 

       

      BIO-DIESEL
MARKETING CONTRACT

       

      THIS
AGREEMENT is entered into by and among Eco-Energy Clean Diesel LLC. (hereinafter
"Eco") a Tennessee Corporation with its main office located at 725 Cool Springs
Blvd, Suite 500, Franklin. Tennessee 37067, and BIOFUEL ADVANCED RESEARCH AND
DEVELOPMENT LLC, (hereinafter BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT LLC)
located with its main office at 7910 Lawnsdale Avenue, Philadelphia, PA
19111.

      

      RECITALS:

       

      
        	
                 
      

              	
                A.

              	
                BIOFUEL
      ADVANCED RESEARCH AND DEVELOPMENT LLC, who is developing a bio-diesel
      plant facility producing 60 million gallons per year of bio-diesel located
      in Philadelphia, Pennsylvania thai desires to establish an
      output-marketing contract

              

      

       

      
        	
                 
      

              	
                B.

              	
                Eco
      is a reseller of bio-dicsel and is experienced in the marketing and
      transportation of such bio- diesel,
      and is willing to agree to purchase the entire bio-diesel output of the
      plant and any future  increases
      in production.

              

      

       

      NOW,
THEREFORE, IT IS AGREED AS FOLLOWS BETWEEN THE PARTIES:

       

      
        	
                 
      

              	
                1.

              	
                Eco Services. Eco
      shall, during the term hereof, purchase the entire output of bio-dicsel
      and to provide    certain    transportation services to BIOFUEL ADVANCED RESEARCH AND
      DEVELOPMENT
      LLC. (the "Eco Program"). The Eco services to be provided are set forth in
      Sections 2 and 3 and the exhibits attached hereto which arc referred to
      therein.

              

      

       

      
        	
                 
      

              	
                2.

              	
                
                  Eco Take or Pay Bio-diesel Purchases.
      BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT LLC. agrees to sell to Eco, and
      Eco agrees to purchase from BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT LLC.
      100% of the production of bio-diesel during the term of the contract,
      including production in excess of proposed production of 60 million
      gallons per year. Each potential Eco purchase will be presented to the
      BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT LLC. representative by Eco for
      verbal approval. BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT LLC shall
      accept or reject such terms, including, but not limited to purchase price.
      Upon such verbal approval and purchase, a confirmation of the purchase
      contract will be submitted to BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT
      LLC. by Eco. encompassing the details of each
    purchase.

                

              

      

       

      
        	
                 
      

              	
                3.

              	
                
                  Eco Transportation
      Services. Eco agrees to provide the transportation services set
      forth in Exhibit B.

                

              

      

       

      
        	
                 
      

              	
                4.

              	
                Fees.  BIOFUEL
      ADVANCED RESEARCH AND DEVELOPMENT LLC shall pay a fee for Eco services
      and materials provided hereunder of 1.0% of the net purchase price per net
      gallon for B-100 biodiescl and 1.5% of the net purchase price per net
      gallon for B—99.9 biodiesel; with a $.015 cpg floor of bio-diesel
      purchased by Eco during the term of the contract. Such lees shall be
      payable monthly on actual gallons shipped from the prior month. Payment
      from BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT LLC. shall be subtracted
      from Eco's first weekly wire payment of the following month for bio-diesel
      purchases

              

      

       

      
        	
                 
      

              	
                5.

              	
                BIOFUEL ADVANCED
      RESEARCH AND DEVELOPMENT LLC.
      Representative. BIOFUELADVANCED
      RESEARCH AND DEVELOPMENT LLC shall designate one or more persons who shall
      be
      authorized and directed to receive services hereunder and to make all
      merchandising, purchasing and sales
      decisions for BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT LLC. All
      directions, transactions
      and authorizations given by such representative to Eco shall be binding
      upon BIOFUEL ADVANCED
      RESEARCH AND DEVELOPMENT LLC. Eco shall be entitled to rely on the authorization
      of such persons until  it receives written notification from
      BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT LLC. thai such authorization has
      been revoked. The terms of such purchase orders shall be consistent with
      the provisions of Exhibit A and may include, but shall not necessarily be
      limited to, price, volume, delivery schedule, and shipping
      instructions.

              

      

       

      
        
          
          

        

        
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                6.

              	
                
                  Eco
      Limitations.

                

              

      

    

     

    
      	
                         

            	
              (a)

            	
              Eco
      assumes no responsibility for the complet'on or performance of any
      contracts between
      BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT LLC. and BIOFUEL ADVANCED
      RESEARCH AND DEVELOPMENT LLC. customers and suppliers, and BIOFUEL
      ADVANCED RESEARCH AND DEVELOPMENT LLC. agrees
      they shall not bring any action or make any claim against Eco based on any
      act, omission or claim of any of BIOFUEL ADVANCED RESEARCH AND
      DEVELOPMENT' LLC. customers or
supplier..

            

    

     

    
      	
                         

            	
              (b)

            	
              BIOFUEL
      ADVANCED RESEARCH AND DEVELOPMENT LLC. is responsible to cover
      all non-deliveries of any product that is contracted between Eco and
      BIOFUEL ADVANCED
      RESEARCH AND DEVELOPMENT LLC. in a timely manner in order to stay
      within the time parameters of the contract. Eco will assist in procuring
      product from other suppliers to cover these
      non-deliveries.

            

    

     

    
      	
                         

            	
              (c)

            	
              If
      any party terminates this agreement for any reason, both parties will be
      responsible to complete
      any existing
contracts.

            

    

     

    
      	
               
      

            	
              7.

            	
              
                Separability
      and Non-liability. The sendees, contracts and relationships between
      BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT LLC. and Kco are independent and
      separable.

              

            

    

     

    
      	
               
      

            	
              8.

            	
              
                

                  Confidentiality
      Agreement, The parlies agree, to the extent pcrmitled by law, to
      preserve and protect the confidentiality of the Agreement. Both parlies
      recognize that federal or slate law may require the filing of the
      Agreement with, or the furnishing of information to, governmental
      authorities or regulatory agencies. Both parties further recognize the
      need, from time to time, for the submission of the Agreement to
      affiliates, consultants, or contractors performing work on, or relaied to.
      the subject matter of the Agreement. Buyer and Seller agree to allow the
      submission of the Agreement to affiliates, consultants, or contractors if
      such affiliates, consultants, or contractors agree to protect the
      confidentiality of the Agreement. In the event either party is of the
      opinion that appli .able law requires it to file the Agreement with, or to
      disclose information related lo the Agreement (other ihan information
      required by laws and regulations in effect as of the date hereof to be
      furnished in periodic reports to governmental authorities) to, any
      judicial body, governmental authority or regulatory agency, that party
      shall so notify the other party in writing prior to the disclosure or
      filing of the
Agreement.

                

              

            

    

     

    
      	
               
      

            	
              9.

            	
              
                Public
      Disclosure. Any public announcements concerning the transaction
      contemplated by this letter shall be approved in advance by Eco and
      BIOFUEL ADVANCED Rl SEARCH AND DEVELOPMENT LLC, except For disclosures
      required by law, in which case the disclosing party shall provide a copy
      of the disclosure lo the other party prior lo its public
      release.

              

            

    

     

    
      	
               
      

            	
              10.

            	
              Solicitation.
      BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT LLC. agrees not to contact or
      interfere with, solicit, disrupt or attempt lo disrupt relationships,
      contractual or otherwise, between Eco and any of its" customers, employees
      or
  vendors.

            

    

     

    
      
        
           

        

        
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              11.

            	
              Terms
      and
  Termination.

            

    

     

    
      	
                         

            	
              (c)

            	
              
                The
      initial term of this Agreement shall commence on the first day of
      bio-diesel production and shall continue for Five (5)
      years. This contract will automatically renew for an additional
      term of Five (5) years unless BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT
      LLC. gives written notice at least six (6) months prior to the end of the
      initial term,

              

            

    

     

    
      	
                         

            	
              (b)

            	
              
                This
      agreement may be terminated by BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT
      LLC. as to Eco in the event of material breach of any of the material
      terms hereof bv such other party, by written notice specifying the breach,
      which notice shall be effective fifteen (15) days after it is given unless
      the receiving party cures the breach within such time. This agreement may
      be terminated by Eco as to BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT LLC.
      in the event of material breach of any of the material terms hereof by
      BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT LLC. by written notice
      specifying the breach, which notice shall be effective fifteen (15) days
      after it is given unless the receiving party cures the breach within such
      time. Any material breach by BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT
      LLC. as to Eco or by Eco as to BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT
      LLC. that cannot be resolved within 15 days, both parlies may mutually
      agree in writing to the length of time needed lo resolve the material
      breach.

              

            

    

     

    
      	
                         

            	
              (c)

            	
              
                This
      Agreement may also be terminated between either party by the mutual
      consent of both parties on such terms as the parties may
      agree.

              

            

    

     

    
      	
                         

            	
              (c)

            	
              
                In
      addition to any other method of terminating this Agreement, Eco may
      unilaterally terminate this Agreement at any time if such termination
      shall be required by any regulatory authority, and such termination shall
      be effective on the 30th
      day following the giving of notice of intent to
      terminate.

              

            

    

     

    
      	
               
      

            	
              12.

            	
              
                Licenses, Bonds, and
      insurance. Each party represents that it now has and will maintain
      in full force and effect during the term of this Agreement, at its sole
      cost, all necessary state and federal licenses, bonds and insurance in
      accordance with applicable stale or federal laws and
      regulations.

              

            

    

     

    
      	
               
      

            	
              13.

            	
              
                Limitation of
      Liability. EACH PARTY UNDERSTANDS THAT NO OTHER
      PARTY MAKES ANY GUARANTEE, EXPRESS OR IMPLIED, TO ANY OTHER OF PROFIT, OR
      OF ANY PARTICULAR ECONOMIC RESULTS FROM TRANSACTIONS HEREUNDER. IN NO
      EVENT SHALL ANY PARTY BE LIABLE FOR SPECIAL, COLLATERAL, INCIDENTAL, OR
      CONSEQUENTIAL DAMAGES FOR ANY ACT OR OMISSION COMING WITHIN THE SCOPE OF
      THIS AGREEMENT, OR FOR BREACH OF ANY OF THE PROVISIONS OF THIS
      AGREEMENT, EVEN IF IT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
      SUCH EXCLUDED DAMAGES INCLUDE, BUT ARE NOT LIMITED TO, LOSS OF GOOD
      WILL, LOSS OF PROFITS, LOSS OF
      USE AND INTERRUPTION OF
BUSINESS.

              

            

    

     

    
      	
               
      

            	
              14.

            	
              Disclaimer
      BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT LLC. understands and agrees that
      Eco makes no warranty respecting legal or regulatory requirements and
      risks. BIOFUEL ADVANCED RESEARCH
      AND DEVELOPMENT LLC. shall obtain .such legal and regulatory advice from
      third parties as it may deem necessary respecting the applicability of
      legal and regulatory requirements applicable to BIOFUEL ADVANCED RESEARCH
      AND DEVELOPMENT LLC.
      business.

            

      	
               
      

            	
              15.

            	
              
                Indemnity. The
      Parties agree that they shall absolve, release and refrain from seeking
      remedies against each other and their officers, agents, employees,
      subcontractors and insurers for any and all losses, claims, damages,
      costs, suits and liabilities for damage, deterioration of quality,
      shrinkage in quantity, loss of grade or loss of Bio-diesel resulting from
      the inherent nature of transfer operations and the inherent nature of
      Bio-diesel provided that this in no way shall relieve the parties for
      their own negligence, willful misconduct or theft. Each party to this
      contract shall indemnify, defend and hold the other harmless from claims,
      demands and causes of action asserted against the other by any person
      (including without limitation employees of either party) for personal
      injury or death, or for loss of or damage to property resulting from the
      willful or negligent acts or omissions of the indemnifying parly, Whore
      personal injury, death or loss of or damage to property is the result of
      the joint negligence or misconduct or the Parlies hereto, the Parties
      expressly agree to indemnify each other in proportion to their respective
      share of such joint negligence or
  misconduct.

              

            

    

     

    
      
        
        

      

      
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              16.

            	
              
                Nature of Relationship. Eco is an independent contractor
      providing services to BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT LLC. No
      employment relationship, partnership or joint venture is intended, nor
      shall any such relationship be deemed created hereby. Each party shall be
      solely and exclusively responsible for its own expenses and costs of
      performance.

              

            

    

    

      	
               
      

            	
              17.

            	
              
                Notices. Any
      notices permitted or required hereunder shall be in writing, signed by an
      officer duly authorized of the party giving such notice, and shall either
      be hand delivered or mailed. If mailed, notice shall be sent by certified,
      first class, return receipt requested, mail to the address shown above, or
      any other address subsequently specified by notice from one party to the
      other.

              

            

    

     

    
      	
               
      

            	
              18.

            	
              
                Compliance With
      Governmental Controls:  To the extent applicable, the
      parties agree to comply with all laws, ordinances, rules, codes,
      regulations and lawful orders of any federal, state or local government
      authority applicable to the performance of the Agreement, including,
      without limitation, those pertaining to the environment, safety, health,
      social security, old age pension, wage hour laws, unemployment
      compensation, non-discrimination on the basis of race, religion, color,
      sex or national origin and affirmative
  action.

              

            

    

     

    
      	
               
      

            	
              19.

            	
              
                New Or Changed
      Regulations. The parties enter die Agreement in reliance upon the
      laws, rules, regulations, interpretations, decrees, agreements, and
      concessions of, and arrangements (hereafter called "Regulations") with
      governments or governmental instrumentalities in effect on the date of the
      Agreement with respect to or directly or indirectly affecting the
      bio-dicsel to be delivered, including without limitation, production,
      gathering, manufacturing, transportation, sale and delivery thereof
      insofar as said Regulations affect Eco and their
      customers.   In the event that at any time subsequent to
      the date of the Agreement, any of said Regulations are changed or new
      Regulations are promulgated whether by law, decree, interpretation or
      regulation, or by response to the insistence or request of any
      governmental authority or person purporting to act therefore, and the
      effect of such changed or new Regulation (a) is or will not be covered by
      any other provisions of the Agreement, or (b) has or will have an adverse
      economic effect upon the parties to this Agreement or the suppliers or
      customers of said parties, the parties shall have the option to request
      renegotiation of the prices and other pertinent terms provided for in the
      Agreement and their respective effective dates. Said option may be
      exercised by Eco at any time after such changed or new Regulation is
      promulgated by giving notice of the exercise of its option to renegotiate
      prior to the time of delivery of bio-diese) or any part thereof. Such
      notice shall contain the new prices and terms desired by agreement of Eco
      and BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT LLC If the parties do not
      agree upon new prices and terms satisfactory to both parties within ten
      (10) days after such notice is given. Eco shall have the right to
      terminate the Agreement at the end of said len (10) day
      period.

              

            

    

     

    
      	
                         

            	
              (a)

            	
              
                
                  This
      agreement is the entire understanding of the parties concerning the
      subject matter hereof, and it may be modified only in writing signed by
      the parties.

                

              

            

    

     

    
      	
                         

            	
              (b)

            	
              
                
                  If
      any provision or provisions of this agreement shall be held to be invalid,
      illegal or unenforceable, the validity, legality and enforceability of the
      remaining provisions shall not in any way be affected or impaired
      thereby.

                

              

            

    

     

    
      	
                         

            	
              (c)

            	
              
                
                  No
      party shall be liable for any failure to perform any or all of the
      provisions of this agreement if and lo the extent that performance has
      been delayed or prevented by reason of any cause beyond the reasonable
      control of such party. The expression "cause beyond the reasonable
      control" shall he deemed to include, bin not be limited to: acts,
      regulations, laws, or restraints imposed by any governmental body; wars,
      hostilities, sabotage, riots, or commotions; acts of God; or fires, frost,
      storms, or lightning.

                

              

            

    

     

    
      	
                         

            	
              (d)

            	
              
                
                  This
      agreement is not intended lo, and does not, create or give rise to any
      fiduciary duty on the part of any party to any
      other.

                

              

            

    

     

    
      
        
        

      

      
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              (e)

            	
              
                
                  No
      action, regardless of its nature or form, arising from or in relation to
      this Agreement may be brought by either party more than two (2)
      years after the cause of action has arisen, or, in the case of an
      action for nonpayment, more than two (2) years from the date the last
      payment was due. Venue for any action arising from or in relation lo this
      agreement shall be in Philadelphia. Pennsylvania.
    

                

              

            

    

     

    
      	
                         

            	
              (f)

            	
              
                This
      agreement is governed by and shall be construed under the laws of the
      State of Pennsylvania.

              

            

    

     

    
      	
                         

            	
              (g)

            	
              
                This
      Agreement shall be binding upon and inure to the benefit of the parties
      and their respective successors and permitted assigns. ECO shall remain
      the marketer for the Philadelphia, Pennsylvania production facility, in
      accordance with this Agreement and in the event of a sale, merger or
      acquisition of BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT LLC. by a third
      party.
      However, ECO reserves the right to unilaterally terminate the
      Agreement, due to the sale or merger of BIOFUEL ADVANCED RESEARCH AND
      DEVELOPMENT LLC. to another company if it presents conflict of interest
      for ECO and its' other projects and/or customers. ECO may assign its
      rights and duties under this Agreement in connection with the sale,
      merger, exchange or acquisition of all or substantially all of the assets
      or stock of ECO and ECO may assign its rights and duties under this
      Agreement to another company controlling, or controlled by, or under
      common control with F CO, all without having to obtain the express written
      consent of the other party.

              

            

    

     

    
      	
                         

            	
              (h)

            	
              
                This
      agreement shall be binding upon BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT
      LLC. and this above referenced plant in the event thai the BIOFUEL
      ADVANCED RESEARCH AND DEVELOPMENT LLC. is later changed to any BIOFUEL
      ADVANCED RESEARCH AND DEVELOPMENT LLC. in the alternative. A change in
      BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT LLC. does not void, nor make
      this contract
voidable.

              

            

    

    
 

    
      
        
           

        

        
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    2007-09-27

     

    EXHIBIT A

     

    Bio-Diesel

     

     

    Echo
shall purchase 100% of the production of bio-diesel of BIOFUEL ADVANCED RESEARCH
AND ELOPMENT LLC. plant on the following terms:

     

    
      	1.	Eco will pay Friday
      of each week for the shipments made by Sunday of the previous week upon
      receipt of Invoice, Bill of Lading, Return Bill of Lading, and Certificate
      of Analysis. All paperwork for the previous week's shipments must be
      received by 12:00 noon Sunday
	 	 
	2.	BIOFUEL ADVANCED
      RESEARCH AND DEVELOPMENT LLC. is responsible for any and all of their
      local, state and federal tax liabilities.
	 	 
	3.	Eco will provide
      scheduling and marketing for bio-diesel produced.
	 	 
	4.	Eco will be
      responsible for receivables risk on bio-diesel.
	 	 
	5.	
              Eco
      reserves the right to refuse business to anyone due to credit and market
      risk

            
	 	 
	6.	
              BIOFUEL
      ADVANCED RESEARCH AND DEVELOPMENT LLC. shall meet or exceed all
      specifications for ASTM D6751-07a fuel bio-diesel and the EN 14214
      specification as well as any changes in fuel bio-diesel industry standards
      that might occur after the execution of this agreement. Proof of such
      ASTM/EN compliance shall be provided by BIOFUEL ADVANCED RESEARCH AND
      DEVELOPMENT LLC. to Eco in the form of a Certificate of Analysis for each
      production lot prior to shipment. This Certificate of Analysis must be
      approved b> Eco's Quality Control Manager prior to acceptance. With
      regards to internal and external testing the producing plant will follow
      the BQ 9000 quality standards. BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT
      LLC. must have meters that measure both gross and net 60 degrees
      Fahrenheit temperature corrected gallons. All loads must be temperature
      corrected to 60 degrees Fahrenheit, in accordance with industry standards,
      and comply with any changes to industry standards in the future
      (including, but no! limited to, temperature correction. ASTM
      specifications, etc).

            
	 	 
	7. 	
              BIOFUEL
      ADVANCED RESEARCH AND DEVELOPMENT LLC. will keep Eco informed on
      production forecasts, as well as daily plant inventory
      balances.

            
	 	 
	8.	
              On
      all truck and rail shipments title and risk of loss of the bio-diesel will
      pass at the loading flange between the plant and the truck or railcar.
      Unless otherwise specified Eco is purchasing all bio-diesel on a FOB plant
      basis.

            
	 	 
	9.	BIOFUEL ADVANCED
      RESEARCH AND DEVELOPMENT LLC. will provide a minimum of 14 days storage in
      separate tanks on the BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT LLC.
      site.
	 	 
	10.	Eco shall deduct all
      unavoidable costs such as government 1 tariffs or assessment fees, sales
      taxes, import/export
      handling fees, assessments, inspection fees, or any other that has been
      approved by the  appropriate
      member of the board of directors.
	 	 
	11.	Eco shall be
      notified in writing and mutually agree on any feedstock changes prior to
      production. Acceptance of
      feedstock change shall not be unreasonably withheld by
    Eco.

    

     

    
      
        
           

        

        
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              EXHIBIT
      B

            

    

    
      	
              Eco
      Transportation Services

            

    

    

     

    
      	1.	
              Eco
      and BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT LLC. will mutually agree as
      to the number of railcars needed and their respective lease rates. The
      leases of such raiicars shall be responsibility of BIOFUEL ADVANCED
      RESEARCH AND DEVELOPMENT LLC. and BIOFUEL ADVANCED RESEARCH AND
      DEVELOPMENT LLC. will be responsible for securing the
      railcars.

            
	 	 
	2.	
              Eco
      will negotiate rail rates on behalf of BIOFUEL ADVANCED RESEARCH AND
      DEVELOPMENT LLC. 

            
	 	 
	3.	All rail contracts
      will be in the name of BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT LLC, or
      any BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT LLC. name change later
      chosen in the alternative.
	 	 
	4.	BIOFUEL
      ADVANCED RESEARCH AND DEVELOPMENT LLC. will invoice Eco for rail freight
      along with a copy of the actual railroad invoice. (This amount will be
      paid the following Friday upon receipt of invoice.)
	 	 
	5.	
              Eco
      will purchase all truck and railcar gallons on an FOB plant basis.
      

            
	 	 
	6.	Eco will supply
      trucks and barges.
	 	 
	7.	
              Any
      and all demurrage charges for lime in excess of one (1) hour per truck
      will be the responsibility of BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT
      LLC.  Eco will submit an invoice to BIOFUEL ADVANCED RESEARCH
      AND DEVELOPMENT LLC. for these amounts, to be deducted from the following
      week's payment. If there is not a scheduled payment from Eco to BIOFUEL
      ADVANCED RESEARCH AND DEVELOPMENT LLC, it will be the responsibility of
      BIOFUEL ADVANCED RESEARCH AND DEVELOPMENT LLC to remit payment to Eco in
      the form of an ACH (or other electronic funds transmission) within 10 days
      of invoice for these charges.

            

    

     

    
      
        
           

        

        
          8ex10_4.htm

    EXHIBIT
10.4

       

      INTEGRATED RISK MANAGEMENT AND GRAIN
ORIGINATION AGREEMENT

      

       

      THIS
RISK MANAGEMENT AND
GRAIN ORIGINATION AGREEMENT (the "Agreement"), is made and
entered into this 30th day of October, 2007, by and among Biofuel Advanced Research &
Development, (BARD)
("Client"), a
Pennsylvania limited liability company with its principal office located at
7910 Lawnsdale Avenue, Philadelphia, PA 191 I 1., FCSTONE,
LLC ("FCStone ), an Iowa limited liability company with its principal office
located at 2829 Westown Parkway, Suite 100, West Des Moines, Iowa 50266, and FGDI,
L.L.C. ("FGDI"). a Delaware limited liability
company having its principal office located at  19901 North Dixie Highway,
Suite B, Bowling Green, Ohio 43402.

      

      WHEREAS, Client is developing
a soybean crushing
production facility to be located at One Ben Fairless Drive, Fairiess
Hills, PA (the "Plant") that will produce
several products, including soybean oil, using soybeans as its
feedstock;

      

      WHEREAS, FCStone is in the
business of providing risk management services pertaining to commodity
origination and marketing and related services; and

      

      WHEREAS. FGDI is in the
business of purchasing and selling soybeans into commercial channels and can
originate the quantity and quality of soybeans required by Client for delivery
to the Plant.

      

      NOW, THEREFORE, in consideration of
the premises and other good and valuable consideration, the receipt of which is
hereby acknowledged, the parties agree as follows:

       

      1. Scope
of Services. FGDI and FCStone shall provide the
risk management, grain origination and related services as described in Exhibit
A and incorporated herein, under terms and conditions as hereinafter further
provided.

       

      2. Risk Management Services by FCStone. FCStone shall, during the term hereof, provide
consulting services to Client in the implementation of a risk management program
for Client. The services to be provided by FCStone arc set forth in the portions
of Exhibit A attached hereto which refer to FCStone. In connection therewith (he
parties may agree to enter into certain hedging or other futures agreements and
transactions from time to time. In such event all costs of such hedging,
including margin calls and commissions, shall be the responsibility of
Client. All such futures or contracts shall be executed on behalf of, and
transacted in the name of, Client upon specific approval and direction by a
Client Representative. All such transactions shall be subject to, and governed
by. the applicable account agreements between Client and FCStone or other
applicable party. Transaction fees, commissions and other charges shall be paid
by Client as agreed from time to time and shall be in addition to the FCStone
Service Fee set forth in Section 4(a).

       

      3. Soybeans
Origination by FGDI. FGDI agrees to supply to
Client and deliver to the Plant the soybeans required for it to maintain the
normal production schedule of the Plant, unless prevented from doing so by
circumstances of supply or logistics reasonably beyond its
control.    FCStone and FGDI shall work together to seek to
obtain the lowest possible total soybeans cost for Client under prevailing market conditions consistent with prudent
risk management practices. Client shall purchase from FGDI and FGDI shall supply
to Client, all of the soybeans required for the operation of the Plant during
the term hereof. Such origination shall be on the terms herein
provided.

        
          
             

          

          
            1

            
              

            

          

           

        
 Except
as provided to the contrary in any cash forward contract or for sales out of
"FGDI" inventory in storage as herein provided, and unless otherwise agreed by
the parties in writing or by oral agreement confirmed in writing, soybeans shall
be sold by FGDI to Client, delivered at the Plant, at a price per bushel that
shall be equal to FGDl's actual cost of origination and delivery, plus the FGDI
Service Fee set forth in Section 4(b). FGDl's actual cost shall be
the amount actually paid by FGDI to its supplier for the soybeans plus (1)
actual freight, demurrage and other transportation cost is incurred by FGDI, (2)
soybeans taxes, excise, or other transaction taxes, if any, imposed on the
acquisition or sale of the soybeans, and (3) any other direct cost actually
incurred by FGDI and paid in obtaining and delivering the soybeans. Client sir
ill separately pay all rail car lease expenses, and such expenses shall not be
included in item (\) above to the extent paid by Client.

      

      4. Fees.

      

      (a) FCStone. Client shall
pay FCStane a service fee for its services hereunder of $120,000 per year, which
is $0.002 per gallon of the anticipated annual Plant nameplaie capacity of
60,000,000 gallons per year (the "FCStom- Service Fee"). The FCStone Service
Fee shall be payable in advance in equal monthly installments of $10,000 per
month, payable on the first business day of each month after the Effective Date. In
addition to such fees, as noted in Section 2. Client shall also pay any
transaction commissions, fees, services charges or other charges arising from
options, futures or other risk management transactions executed through FCStone,
its affiliates, or others in accordance with their applicable schedule- of rates
except that the rate for exchange traded furores and options transactions shall
be $15.00 per round turn, plus applicable exchange fees and National Futures
Association ("NFA")
fees.

       

      (b) FGDI.  Client
shall pay FGDI a fee - if
$0,045 per bushel for
origination services
hereunder on each bushel of soybeans delivered by unit grain train or barge or
vessel to the Plant for tf •:• first tlr;.*e years after the Effective Dale as
defined in Sec.ion 17(a) ("Regular Service
Fee"). Soybeans originated by truck or in deliveries of less than a full unit
train snail be charged a special service fee of $0,065 per bushel ("Special
Service Fee'}, commensurate with the additional services to be provided.
Together these fee:- are referred to herein as the "FGDI Service Fee'*. Both the Regular Service Fee and the
Special Service Fee shall be increased prospectively as of the anniversary date of the Effective Date as deilncd in Section
17(a), for each renewal year after .he initial three year term, by adding $0,005
per bushel to the rates stale:! above f< • each year after the initial three
year term. Client will pay FGDI a minimum annual service fee adjustment (the
"FGDI
Minimum Annual Fee
Adjustment"), if Client purchases less than seventy five
percent (75%) of the projec;.-d
annual bushel requirements (the "Minimum Purchase Amount") of the Pluit,
which is agreed to be sixty six million (66,000,000) bushels per year, during
any year of the term hereof after the Effective Date. FGDI will adjust the
Minimum Purchase Amount after three (3). 

       

      

      FGDI,
L.L.C.

       

      

      

        
          
             

          

          
            2

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