Document:

Marketing and Exclusivity Contract for Biodiesel

 Exhibit 10.15 
  

	
	  
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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED AS [****]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
  

 MARKETING AND EXCLUSIVITY CONTRACT FOR BIODIESEL 
 This Marketing and Exclusivity Contract for Biodiesel (the “Contract”) is made this 15th day of June, 2007, by and between CONSTELLATION
ENERGY COMMODITIES GROUP, INC., with a principal place of business and mailing address at 111 Market Place, Suite 500, Baltimore MD 21202 (“Constellation”), and IMPERIUM SERVICES LLC, a Washington limited liability company and
subsidiary of Imperium Renewables, Inc. (“Seller”, and together with Constellation, the “Parties” and each a “Party”), with a principal place of business and mailing address at 1418 Third Avenue,
Suite 300, Seattle, Washington 98101. 
 WHEREAS, Constellation and its Affiliates are in the business of generation, transmission and
distribution of electrical power in the Northeastern and Mid-Atlantic regions of the United States; and 
 WHEREAS, Constellation has certain
fuel supply requirements needed for such generating facilities and wishes to commit a portion of its supply to alternative energy sources including Biodiesel; and 
 WHEREAS, Seller is a supplier of Biodiesel with facilities and transportation capabilities necessary to supply and deliver to the Facilities (as defined below); and 
 WHEREAS, Constellation is willing to assist Seller in developing Biodiesel sales to electrical power generation facilities in the Northeastern and
Mid-Atlantic regions of the United States under the terms and conditions set forth hereinafter. 
 NOW, THEREFORE, it is mutually agreed by
the Parties hereto as follows: 
 ARTICLE I. 
 DEFINITIONS 
 Except where otherwise indicated, the following definitions shall apply throughout this
Contract. 
  

	 	1.1	“Affiliate” means, in relation to any period, any entity controlled, directly or indirectly by the person, any entity that controls, directly or indirectly, the
person, or any entity directly or indirectly under common control with the person. For this purpose “control” of any person means ownership of a majority of the voting power of the entity or person. 

  

	 	1.2	“Biodiesel” means fuel that conforms to the Specifications and required feedstock. 

  

	 	1.3	“Business Day” means a day (other than Saturday and Sunday) on which the clearing banks in New York are open for general business and ending at 5.00pm Eastern
Standard Time. 

  

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	 	1.4	“Confirmation” means, in respect of each Transaction, the document of that name in the form of Exhibit B signed by Constellation or a third party and the Seller and
containing details of such Transaction with such amendments as the parties shall agree or a test burn agreement signed by Constellation or a third party and the Seller containing details of such Transaction. 

  

	 	1.5	“Defaulting Party” has the meaning set forth in Section 9.1. 

  

	 	1.6	“Effective Date” has the meaning set forth in Section 2.6. 

  

	 	1.7	“Event of Default” has the meaning set forth in a Confirmation to which Constellation and the Seller are a party. 

  

	 	1.8	“Exclusivity Conditions” has the meaning set forth in Section 2.5. 

  

	 	1.9	“Exclusivity Period” has the meaning set forth in Section 2.4. 

  

	 	1.10	“Extended Term” has the meaning set forth in Section 2.1. 

  

	 	1.11	“Facilities” means the electric power generation facilities set forth in Exhibit A and as notified by Constellation to the Seller from time to time. These
facilities shall include Constellation’s and its Affiliates’ power generation facilities, toll producers for Constellation and any other power generation facility, in each case for which Constellation sells to or procures Biodiesel.

  

	 	1.12	“Fair Market Price” means a price representing the best available offer price to supply Biodiesel. This price shall be determined by reference to (i) respected
third party sources for fuel price information for Biodiesel including the Oil Price Information Service plus applicable transportation or other basis costs; (ii) contracts for Biodiesel offered on public exchanges such as the Chicago Board of
Trade plus applicable transportation or other basis costs; and (iii) all available offers for Biodiesel and delivered to the same part of the Region over the same time period. Seller’s price of Biodiesel to Constellation shall be no less
favorable than the price that the Seller charges for Biodiesel to other commercial purchasers. 

  

	 	1.13	“Fuel Schedule” has the meaning set forth in Section 3.1(a). 

  

	 	1.14	“Gallon” means a United States liquid gallon of 231 cubic inches. 

  

	 	1.15	“Marketing Period” has the meaning set forth in Section 2.2. 

  

	 	1.16	“Non-Defaulting Party” has the meaning set forth in Section 9.1. 

  

	 	1.17	“Original Term” has the meaning set forth in Section 2.1. 

  

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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED AS [****]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
  

  

	 	1.18	“Region” means the following states and the District of Columbia: [****]. 

  

	 	1.19	“Services” has the meaning set forth in Section 2.2. 

  

	 	1.20	“Specification” means the ASTM 6751 specification for B100 biodiesel or such other specification for biodiesel as may be produced by the Seller and tested and
approved by, or otherwise acceptable to, the power generation facility to consume such biodiesel from time to time. 

  

	 	1.21	“Term” has the meaning set forth in Section 2.1. 

  

	 	1.22	“Transacted Volume” means the aggregate quantity of Biodiesel in a calendar year that (a) Constellation and its Affiliates contract to purchase from the Seller
for delivery in such calendar year, and/or (b) the Seller contracts to deliver in the Region in such calendar year for which Constellation has provided Services. For the avoidance of doubt, (a) the quantity of Biodiesel deliverable in such
calendar year shall be included in the Transacted Volume if it was contracted for in previous calendar years; and (b) the quantity of Biodiesel the Seller contracts to deliver in the Region in such calendar year shall be included in the
Transacted Volume if Constellation has provided Services in previous calendar years. 

  

	 	1.23	“Transaction” means the agreement set forth in a Confirmation made between Constellation or a third party and the Seller for the sale and purchase of Biodiesel (as
specified in the relevant Confirmation). 

 ARTICLE II – TERM 
 2.1 Original Term and Extended Terms. The term of this Contract (“Term”) shall commence on the Effective Date and shall expire
the later of (a) on June 15, 2010 (the “Original Term”) or (b) if Constellation has met the Exclusivity Condition for 2010, on June 15, 2012 (“Extended Term”). 
 2.2 Marketing Period. During any period which is not an Exclusivity Period during the Term (the “Marketing Period”), or as
otherwise provided hereunder, Constellation agrees to provide the following services to Seller (the “Services”): 
  

	 	2.2.1	Developing and maintaining commercial relationships with key regulated and wholesale power generation facilities in the Region to facilitate the sale of Biodiesel;

  

	 	2.2.2	Structuring and negotiating Confirmations for the sale of Biodiesel to such power generation facilities; and 

  

	 	2.2.3	Providing any other services as may be mutually agreed to in writing by the Seller and Constellation. 

  

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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED AS [****]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
  

  

 2.3 Imperium Supply Exclusivity. Seller will be the exclusive source of Biodiesel in the
Region for any power generation facility owned by Constellation or its Affiliate during the Term, provided that, if: 
 (a) Constellation presents definitive written proof that the Seller is not offering Biodiesel to Constellation or its Affiliate at a Fair Market Price, and the Seller refuses to sell Biodiesel to Constellation or its Affiliate at such Fair
Market Price; or 
 (b) the Seller cannot provide customary credit assurance in favor of Constellation or its Affiliate in
connection with the Biodiesel sale, in the reasonable opinion of Constellation or its Affiliate; or 
 (c) the Seller is
unable to physically supply Biodiesel according to the requested Specification and/or the full requested quantity and/or requested delivery date, each in the reasonable opinion of Constellation or its Affiliate; or 
 (d) Seller has not obtained direct supply from a production facility or facilities within the Region of a minimum of 100 million
Gallons per year of Biodiesel by December 31, 2008, unless extended by agreement of the Parties, 
 then Constellation may use an alternate supplier of
Biodiesel for any power generation facility owned by Constellation or its Affiliate. 
 2.4 Exclusivity Period. If the Exclusivity
Conditions for a calendar year are satisfied, Constellation shall have the exclusive right, but not the obligation, to (a) supply any power generation facility in the Region with Biodiesel, and purchase any such Biodiesel requirements from the
Seller at the Fair Market Price, or (b) to elect for Seller to contract directly with a power generation facility in the Region for any such Biodiesel, Constellation shall provide Services with respect to such transaction and the volume
transacted shall satisfy subsection (b) of the definition of Transacted Volume, in each case from the date such Exclusivity Conditions for the calendar year was satisfied to and including December 31 of the year immediately following the
year for which such Exclusivity Condition was satisfied (the “Exclusivity Period”). Constellation shall promptly and from time to time update the list of Facilities to facilitate the Seller’s supply planning process when
Constellation, in its reasonable judgment, anticipates a Facility will purchase Biodiesel. If a power generation facility in the Region contacts the Seller to request biodiesel pricing or supply, the Seller shall inform the facility’s
representative that the Seller is under a contractual obligation to supply the power generation facility through Constellation. 
 2.5
Minimum Quantities Required to Maintain Regional Exclusivity. Clause 2.4 shall apply if the Transacted Volume is equal to or exceeds: [****] Gallons in 2008; [****] Gallons in 2009; or [****] Gallons in 2010 (each an “Exclusivity
Condition”). No later than August 1, 2010, the Parties shall confer and agree upon Exclusivity Conditions for 2011 and 2012. 
 2.6 Further Assurances. The parties shall negotiate in good faith to (a) further develop the form of Confirmation including, without limitation, sampling, analysis and rejection 

  

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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED AS [****]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
  

  

 
provisions, (b) minimize costs incurred by each Party in connection with this Contract and (c) implement the terms of this Contract. 
 2.7 Effective Date. This Contract shall become effective (the “Effective Date”) upon the date this Contract is signed by both
Parties. Except for confidentiality obligations hereunder, neither Party shall have any binding obligations under this Contract until the Effective Date. 
 ARTICLE III – QUANTITY 
 3.1 Quantity of Biodiesel To Be Supplied/Delivered. Constellation shall
deliver to Seller, no later than December 31, 2007 and thereafter one (1) month before the beginning of each subsequent calendar quarter during the Term of this Contract, a schedule estimating the quantity and delivery dates for Biodiesel
to be delivered to Constellation in accordance with Sections 2.3 and/or 2.4 of this Contract for the next calendar quarter, if any (the “Fuel Schedule”). Constellation agrees to provide Seller with sixty (60) days advance
notice, if practicable, of any demand changes in excess of 110% of the current Fuel Schedule. 
 ARTICLE IV – QUALITY 
 4.1 Remedies. If a quality problem has occurred or may occur, both Seller and Constellation shall work in good faith to minimize the impact of any
such quality problem. At Constellation’s sole discretion, such efforts may include a Specification waiver. 
 4.2 Subcontractors:
Constellation shall have the right to approve or reject subcontractors used by Seller for reasons of quality, safety, punctuality or reliability. Such rejections shall be for reasonable cause only. 
 ARTICLE V – CREDITS 
 5.1 Credit for Power Generation Sales. For the Term, Constellation shall earn $[****] per
Gallon of the Transacted Volume to be credited against sales to Constellation of Biodiesel. Seller shall provide a report to Constellation no less frequently than once per calendar quarter detailing the credits earned under this Section 5.1.
Constellation shall have the ability to audit Seller’s records upon reasonable prior notice to Seller for purposes of confirming the amount of credits earned by Constellation. Constellation may request payment in cash in lieu of a credit
against sales to be paid by the Seller to Constellation no later than the 20th Business Day following the calendar
month in which the Transacted Volume was delivered. Constellation shall not be restricted from marketing Biodiesel outside of the Region; however no credit will be earned for such sales. 
 ARTICLE VI – REPRESENTATIONS AND WARRANTIES 
  

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 6.1 Representations and Warranties. Each Party represents and warrants to the other Party that:
(a) it has the corporate powers to execute and enter into this Contract; (b) it has taken all corporate action necessary to be duly authorized to enter into and perform this Contract, including adoption of all necessary resolutions of its
governing body at a duly noticed and convened meeting thereof or by unanimous consent in the manner required pursuant to its governing documents and applicable law for the purposes of all matters herein; and (c) it has duly executed and
delivered this Contract; and (d) this Contract constitutes the valid, legally binding obligation of such Party, enforceable by its terms except as limited by the effect of bankruptcy, insolvency, reorganization, moratorium or other similar laws
relating to or affecting the rights of creditors and general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 
 ARTICLE VII – PAYMENT NETTING AND SET OFF 
 7.1 Set Off. In the event of
the occurrence of an Early Termination Date, the Termination Amounts (each such term as defined in the relevant Confirmation to which Constellation and the Seller are a Party) shall be set off against any other amount owing by a Party (including any
amount due and payable before the Early Termination Date but remaining unpaid) under this Contract, any Confirmation or any other agreement between the Parties, provided that if an obligation is unascertained, the Party by whom the larger aggregate
amount is payable may in good faith estimate that obligation and set-off in respect of the estimate, subject to the relevant Party accounting to the other when the obligation is ascertained. 
 ARTICLE VIII – INDEMNITY 
 8.1 Seller’s Indemnity. To the fullest
extent permitted by applicable law, Seller shall forever indemnify, defend and hold harmless Constellation, its parents, Affiliates, directors, officers, employees, agents (including but not limited to Affiliates and contractors and their
employees), successors and assigns, from and against all liabilities, losses, penalties, claims, demands, judgments, actions, costs and expenses (including, without limitation, reasonable attorneys’ fees and costs of litigation), and
proceedings of any nature whatsoever, based upon or arising out of damage to property or injuries to persons (including death) including, without limitation, the Seller’s employees or any subcontractor’s employees, fines or penalties or
other tortious acts (collectively, for purposes of this Section 8.1, “Injury” or “Damage”), in connection with Seller’s performance or failure to perform its obligations under this Contract and/or in
connection with the Services or the sale of Biodiesel in accordance with Section 2.4 and/or 2.5 of this Agreement including, without limitation, to the extent that they arise out of, are incident to or result directly or indirectly from
(a) biodiesel which does not meet the Specification or is contaminated; (b) operation of any motor vehicle or pipeline used in the delivery of Biodiesel and owned or hired by Seller, its agents or contractors; (c) the performance of
any Transaction or any activities of the Seller’s personnel on the premises of, or in connection with any property of, the buyer or its Affiliates, including, without limitation Seller’s performance or failure to perform its obligations
under such Confirmation or this Contract; (d) any claim that the supply or use of Seller’s Biodiesel infringes, or is alleged to infringe, any patents or inventions, copyrights, trade secrets, trademarks, or any other intellectual property
or 

  

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proprietary rights of any third party; or (e) any release or spill of Seller’s Biodiesel onto any property other than to the extent such release or
spill is caused by a failure of Constellation’s connection facilities; except to the extent that such Injury or Damage is directly attributable to the gross negligence or willful misconduct of Constellation, its parents, Affiliates, directors,
officers, employees, agents (including but not limited to Affiliates and contractors and their employees). 
 8.2 Constellation’s
Indemnity. To the fullest extent permitted by applicable law, Constellation shall forever indemnify, defend and hold harmless Seller, its directors, officers, employees, agents (including but not limited to Affiliates and contractors and their
employees), successors and assigns, from and against all liabilities, losses, penalties, claims, demands, judgments, actions, costs and expenses (including reasonable attorneys’ fees and costs of litigation), and proceedings of any nature
whatsoever, based upon or arising out of damage to property or injuries to persons (including death), fines or penalties or other tortious acts (collectively, for purposes of this Section 8.2, “Injury or Damage”), to the
extent that they arise out of, are incident to or result directly or indirectly from (a) alteration or modification of the Biodiesel by Constellation following delivery and acceptance by Constellation; (b) operation of any equipment used
following the delivery of Biodiesel to Constellation and owned or hired by Constellation, its agents or contractors; or (c) Constellation’s performance or failure to perform its obligations under this Contract; except to the extent that
such Injury or Damage is directly attributable to the gross negligence or willful misconduct of Seller, its directors, officers, employees, agents (including but not limited to Affiliates and contractors and their employees). 
 ARTICLE IX – DEFAULT 
 9.1
Default. Breach by Seller of any of its representations and warranties in this Contract or failure of either Party to promptly perform any obligation under this Contract or the occurrence and continuance of an Event of Default shall
constitute a default. If Constellation or Seller considers the other Party (the “Defaulting Party”) to be in default, such Party (the “Non-Defaulting Party”) shall give the Defaulting Party prompt notice thereof,
describing the particulars of such default. If no Event of Default has occurred and is continuing under a Confirmation, the Defaulting Party shall thereafter have thirty (30) days from the receipt of said notice in which to remedy such default.
If the default is not cured, or if an Event of Default has occurred and is continuing, the Non-Defaulting Party may, without prejudice to any other right or remedy of such Party in respect of such default, immediately terminate its obligations under
this Contract by written notice to the Defaulting Party. Any termination shall be without prejudice to accrued rights, including without limitation the right of either Party to damages arising from such breach or prior breaches hereof. All rights
and remedies hereunder are independent of each other and election of one remedy shall not exclude another. The prevailing Party in any action shall be entitled to recover its reasonable attorneys’ fees and costs from the other Party.

 9.2 Consequential Damages. A PARTY SHALL NOT BE LIABLE FOR CONSEQUENTIAL, INDIRECT, SPECIAL OR PUNITIVE DAMAGES OF ANY KIND,
ARISING OUT OF OR IN CONNECTION WITH THIS CONTRACT, WHETHER BASED IN CONTRACT, TORT (INCLUDING NEGLIGENCE) OR 

  

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ANY OTHER THEORY, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 
 ARTICLE X – NOTICE 
 10.1 Notices. Except as otherwise expressly provided
in this Contract, all notices shall be given in writing, by facsimile, telex or first class mail, postage prepaid, to the following addresses, or such other address as the Parties may designate by notice: 
  

			
	 CONSTELLATION ENERGY COMMODITIES
 GROUP
INC.
 Attn:
 111 Market Place
 Suite 500
 Baltimore MD 21202
 Facsimile:
	  	 IMPERIUM SERVICES LLC
 Attn: General Counsel

1418 Third Avenue, Suite 300
 Seattle, WA 98101
 Facsimile: 206.254.0204

 Notice shall be deemed to have been delivered upon the earlier to occur of actual receipt or two Business Days
after sending. 
 ARTICLE XI – GENERAL PROVISIONS 
 11.1 Waiver and Severability. If any section or provision of this Contract or any exhibit or rider hereto is held by any court or other competent authority or be illegal, unenforceable or invalid, the remaining
terms, provisions, rights and obligations of this Contract shall not be affected. The failure of a Party hereunder to assert a right or enforce an obligation of the other Party shall not be deemed a waiver of such right or obligation. In no event
shall any waiver by either Party of any default under this Contract operate as a waiver of any further default. 
 11.2 Assignment.
This Contract shall extend to and be binding upon the successors and assigns of Constellation and Seller, provided, however, that no assignments of this Contract, including those hereafter acquired or resulting from mergers or sale, shall be made by
Constellation or Seller without the prior written consent of the other Party. Such consent shall not be unreasonably withheld. 
 11.3
Conflicts of Interest. Conflicts of interest related to this Contract are strictly prohibited. Except as otherwise expressly provided herein, neither Party nor any director, employee or agent of a Party shall give to or receive from any
director, employee or agent of the other Party any gift, entertainment or other favor of significant value, or any commission, fee or rebate. Likewise, neither Party nor any director, employee or agent of a Party shall enter into any business
arrangement with any director, employee or agent of the other Party (or any Affiliate), unless such person is acting for and on behalf of the other Party, without prior written notification thereof to the other Party. 
 11.4 Confidentiality. (a) No Party (the “Obligor”) shall at any time, whether before or after the expiry or earlier
termination of this Contract, divulge or suffer or permit its officers, employees, agents or contractors to divulge or suffer or permit its officers, 

  

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employees, agents or contractors to divulge to any person any of the contents of this Contract or any commercially confidential information relating thereto
disclosed by the other Party (the “Obligee”) pursuant to this Contract or in the course of negotiating this Contract or a Transaction or otherwise concerning the operations, contracts, commercial or financial arrangements or affairs
of the Obligee except: 
 (i) in the circumstances set out in Clause 11.4(b) below; 
 (ii) to the extent otherwise expressly permitted by this Contract; 
 (iii) with the prior written consent of the Obligee; or 
 (iv) to the Obligor’s Affiliates, provided
that the Obligor shall be responsible for any breach of the terms of this Clause 11.4 by its Affiliate. 
 (b) The restrictions imposed by Clause 11.4(a)
above shall not apply to the disclosure of information: 
 (i) which now or hereafter comes in to the public domain otherwise than as a result
of a breach of an undertaking of confidentiality or which is obtainable with no more than reasonable diligence from sources other than the Obligee; 
 (ii) which is required to be disclosed by any requirement of law or pursuant to the rules and regulations of any regulatory authority or in compliance with the conditions of any license with which the Obligor is required to comply;

 (iii) which is required to be disclosed by the regulations of any recognized exchange upon which the share capital of the Obligor (or any
parent of the Obligor) is or is proposed to be from time to time listed or dealt in, save that a Party shall seek measures to preserve confidentiality to the extent feasible; 
 (iv) to a court, arbitrator or administrative tribunal or an expert in the course of proceedings before it to which the Obligor is a party; 
 (v) which is furnished to the employees, directors, Affiliates, agents, proposed assignees or transferees, consultants and/or professional advisers of the
Obligor to the extent that disclosure is reasonably necessary or desirable for the purposes of this Contract or a Transaction; 
 (vi) which
is furnished to banks, financiers or insurers or their respective consultants and advisers, provided that the recipient agrees to keep such information confidential on terms no less onerous than those set out in Clause 11.4(a) above; or 

(vii) which is required to be disclosed to any relevant taxing authority, accountant or auditor. 
  

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 11.5 Communications. No Party shall issue a press release or public statement regarding the
existence of this Contract or the terms thereof without consent of the other Party. Prior to any release or communications to any third party, a Party shall submit a draft press release or other such correspondence to the other Party for its review
and approval. Except pursuant to the Securities and Exchange Commission (the “SEC”) disclosure requirements, all such communications shall be approved in writing by the other Party. Both Parties acknowledge that the SEC does not, in
any event, require the issuance of press releases. The Parties shall cooperatively manage all communications to third parties regarding this Contract. A Party may make any public announcements, public written communications and/or press releases to
third parties regarding the general scope or general nature of the type of work as provided for in this Contract, and may use the test data information for promotional purposes provided that, in each case, such public announcements, public written
communications and/or press releases and promotional materials (i) do not name or identify the other Party (or any Affiliate either directly or indirectly), and (ii) include only information that is currently available in the public domain
through filings with governmental agencies or otherwise. 
 11.6 Applicable Law. This Contract shall governed by, and construed in
accordance with, and all disputes arising hereunder shall be determined in accordance with, the law of the State of New York excluding choice of law rules which may direct the application of laws of another jurisdiction. 
 11.7 Entire Contract/Modification. This Contract shall constitute the entire understanding between the Parties with respect to all matters and
things herein mentioned. It is expressly acknowledged and agreed by and between the Parties that neither Party is now relying upon any collateral, prior or contemporaneous agreement, assurance, representation or warranty, written or oral, pertaining
to the subject matter contained herein. This Contract shall not be modified or changed except by written instrument executed by the duly authorized representatives of the Parties hereto. 
 11.8 Bankruptcy. This Contract, at the option of a Party, shall terminate in the event of any voluntary or involuntary receivership, bankruptcy or
insolvency proceedings affecting the other Party. 
 11.9 Status of the Parties. Nothing in this Contract shall be construed to
constitute either Party as a joint venturer, co-venturer, joint lessor, joint operator or partner of the other Party. In performing services pursuant to this Contract, a Party is acting solely as an independent contractor maintaining complete
control over its employees and operations. Unless otherwise provided in this Contract, neither Constellation nor Seller is authorized to take any action in any way whatsoever for or on behalf of the other. 
 11.10 Headings. The headings or captions are for convenient reference only and have no force or effect or legal meaning in the construction or
enforcement of this Contract. 
 11.11 Counterparts. This Contract may be executed in as many counterparts as desired by the Parties,
any one of which shall have the force and effect of an original but all of which together shall constitute the same instrument. 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Contract on the day and year first above written. 

 

									
	CONSTELLATION ENERGY COMMODITIES GROUP, INC.	 		 	IMPERIUM SERVICES LLC
					
	By	 	  	 		 	By	 	  
	Its	 		 		 	Its	 	
					
	By	 	/s/ Stuart Rubenstein	 		 	By	 	/s/ Martin Tobias
	Its	 	Chief Operating Officer	 		 	Its	 	CEO

  

 11Standing Time Charter

 Exhibit 10.16 
  
 STANDING TIME CHARTER 
  
  

							
	OWNER	  	CHARTERER
	 	 		 
	 NAME
	 	: Sea Coast Transportation LLC	  	NAME	 	: Imperium Renewables, Inc.
	 ADDRESS
	 	: 2700 W Commodore Way	  	ADDRESS	 	: 1418 Third Ave S # 300
	 CITY, STATE
	 	: Seattle, WA 98199	  	CITY, STATE	 	: Seattle, WA 98101
	 CONTACT
	 	: Michael Myers	  	CONTACT	 	: David Kirkpatrick
	 TELEPHONE
	 	: 206-443-9418	  	TELEPHONE	 	: 206-254-0210
	 FACSIMILE
	 	: 206-343-0424	  	FACSIMILE	 	: 206-254-0204
	 E-MAIL
	 	: mmyers@sea-coast.com	  	E-MAIL	 	: david@imperiumrenewables.com
	 	 	  	  	 	 	 

  
  

							
	TUG(S)	  	BARGE(S)
	 	 		 
	 NAME            
	 	: TO BE NOMINATED	  	NAME            	 	: KTC 80
	 O.N.
	 	:	  	O.N.	 	: 643281
	 	 		 
	 NAME
	 	:	  	NAME	 	:
	 O.N.
	 	:	  	O.N.	 	:
	 	 
	 See Vessel
Specifications
 set forth on Exhibit 1 hereto
	  	 See Vessel Specifications
 set forth on Exhibit 1 hereto

	  	  	 

  
  

	
	DESCRIPTION OF CARGOES/SERVICES AND SPECIAL AGREEMENTS
	 
	 Charterer is in the
business of developing, marketing, refining and supplying renewable fuels including biodiesel, operates a biodiesel refinery in the Puget Sound area and is in need of transportation services with respect to such cargoes. Owner is a tug and petroleum
tank barge operator in the Puget Sound area. The parties acknowledge that the development of and market for renewable fuel and biodiesel is relatively new (but likely to increase), but Owner is not familiar with its characteristics and its equipment
may need modification, the necessity of which shall be advised by, and the full costs of which passed to, Charterer.
  
 Without limiting the foregoing, the parties agree to cooperate in the design and installation of a heating system for the Barge tanks appropriate for the transportation of Charterer’s cargoes, with the full costs borne by
Owner,. Owner will perform the other required improvements as identified in Exhibit 2 on their own account. In the event that Charterer chooses to extend the term of the hire past the initial Term of 3 years, there will be no additional adjustment
for inflation for the daily hire rate in year 4 exclusively.
  

  
  

			
	STANDING TIME CHARTER	  	 PAGE
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	SPECIAL AGREEMENTS, continued
	 
	 It is further
acknowledged and agreed that Owner’s equipment may need to be mobilized at Owner’s expense from its/their current location to Seattle before performing hereunder and, in addition, that Charterer’s need for transportation services may
be delayed beyond the delivery date identified above for business reasons.
  
 To address these
issues, Charterer agrees to notify Owner on April 1st, 2006 of the actual delivery date to be no earlier than
August 1st, 2007 and no later than November 1st, 2007. Owner will have been deemed to have met the delivery date if the barge and tug are delivered within 15 days of the date given on April 1st. In the event that Charterer fails to give notice on April 1st, the delivery date will be deemed to be November 1st, 2007. In the event that Charterer is unable to accept
delivery by the delivery date Charterer will be responsible for all costs per this contract as if it had accepted delivery. but with Owner to offset Charter Hire per section 4H in the event of 3rd party hire.
  
 Similarly, Charterer may cancel this agreement prior to delivery with at least one hundred twenty (120) days notice and payment to Owner of $100,000 plus any related 3rd party expenses for changes made to the barge on behalf of Charterer if services have not commenced in the event that Charterer’s need for the transportation
services contemplated herein are no longer applicable, for business reasons or otherwise, provided, however, that Charterer shall provide Owner with a specific written explanation as to why such needs are no longer applicable.
  
 The aforesaid fees are agreed to be reasonable estimates of the damages Owner will incur under the
circumstances described, and shall not be deemed a penalty of any kind or nature whatsoever.
  

  

	
	 Owner agrees to let and Charterer agrees to hire, on a time charter basis and pursuant to the terms and conditions of this agreement, the Vessels identified
above for the purpose of transporting Charterer’s cargoes as described above; the terms Tug, Barge and Vessel(s) shall refer to the Tug(s) and/or Barge(s) identified above and on Exhibit 1 attached hereto and incorporated herein, or substitute
therefor, as is consistent with the context in which the term is utilized.
  
 1.      CHARTER TERM
  
 The term of this
agreement shall commence upon execution and continue for three (3) years thereafter, with the term to be deemed extended to include completion of any voyage commenced prior to expiration of said term. The term of this agreement shall
automatically renew for additional (1) year terms if Charterer gives Owner 90 day notice prior to the end of the Term with Charterer’s right to extend limited to no more than 3 one year extensions.
  
 2.      DELIVERY, REDELIVERY AND
TANK CLEANING
  
 Owner shall deliver the Vessels to Charterer on the date/time and at the port
agreed for initial delivery, unless reasons beyond Owner’s control prevent or delay the same. At delivery, the Vessels shall have the specifications, capabilities and limitations, including tank capacity and configuration, pumping rates, etc.,
identified on Exhibit 1. Charterer shall have access to the entirety of the tank spaces of the Barge to transport its cargoes, subject to the specifications, capabilities and limitations, including loadline, stability and safety considerations,
applicable to the Vessels. Owner may substitute vessels of similar capabilities, characteristics and capacity from those identified herein upon written notice to Charterer. Charterer shall redeliver the Vessels to Owner at the conclusion of the
charter term, after services have been completed and at the port agreed for final redelivery.
  

  

			
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	 Any tank cleaning required at delivery to make the tanks compatible for Charterer’s cargoes and/or at redelivery due to contamination caused by
Charterer’s cargoes or to remove cargoes or retains/residues inconsistent with the customary trade of the Barge shall be at Owner’s expense at delivery and Charterer’s expense at return including the expense of and responsibility for
disposal; redelivery shall not be deemed to occur and Barge hire shall continue to accrue until such tank cleaning has been accomplished. Notwithstanding the foregoing, however, and at Owner’s election and upon notice from Owner that
Charterer’s last cargoes/retains are compatible with Owner’s next use of the Barge, Owner shall accept responsibility for tank cleaning and all tank retainages shall be transferred to Owner at redelivery.
  
 3.      SCHEDULING AND
MAINTENANCE
  
 Owner and Charterer shall meet promptly following execution of this agreement,
and well in advance of any performance of services hereunder, to discuss the nomination of loading and discharging ports, cargoes and scheduling, including Charterer’s delivery needs and Owner’s maintenance requirements, with cargoes and
the loading port and date for the initial voyage hereunder to be agreed as early as reasonably possible following execution of this agreement. Thereafter and for the duration of the charter term, parties shall regularly meet in person or communicate
by facsimile, telephone and/or e-mail, at least weekly, to schedule/confirm cargoes, ports and date for the voyages to be performed. Scheduling shall take into account the capabilities of the Vessels, distances and routine fortuities such as weather
and tide, as well as Charterer’s delivery needs and Owner’s maintenance requirements.
  
 Owner shall be entitled to two hundred eighty eight (288) hours for scheduled and planned maintenance for each Tug/Barge unit each twelvemonth period during this agreement, which maintenance time shall be scheduled in advance pursuant
to the foregoing provisions, with hire to continue to accrue as to such Vessels during the allotted maintenance time. In the event that the full 288 hours has not been used, up to 144 hours and no more than 144 hours may be rolled over to the next
year for scheduled and planned maintenance. In each instance, Owner shall promptly return the Vessel to service following completion of maintenance. Charterer has the right to dispatch its technical representative periodically to observe any
maintenance activities.
  
 During the term of this agreement, Owner shall keep Charterer informed
as to the locations of the Vessels while performing hereunder on at least a daily basis.
  
 4.      HIRE, CHARGES AND PAYMENT
  
 A.     Hire. Charterer shall pay hire
for use of a Tug/Barge unit hereunder at the rate of $13,600 US per day or any part thereof. Hire for the Tug(s) and Barge(s) shall accrue continuously for the full charter term, i.e. from initial delivery until final redelivery, as set forth
herein, unless the accrual of hire for such Vessel(s) is/are excused pursuant to the terms and conditions set forth herein.
  
 B.     Partially Crewed Rate. In the event that Charterer gives Owner at least seven (7) days advance
notice that it will not be needing a Tug for seven (7) days or more, Owner shall reduce the crew on such Tug to _two persons and the hire rate applicable to such Tug shall be reduced by $2,500 US per day, with regular Tug hire rate to again
become applicable upon Charterer’s request that the Tug return to service.
  
 C.     Fuel and Lubricants. Fuel and lubricants consumed by the Vessels shall be separately paid/reimbursed
by Charterer in addition to hire. The quantities of fuel aboard each Vessel shall be gauged at delivery and redelivery in order to determine benchmarks for such payment/reimbursement, which shall be upon an actual cost basis. Owner agrees that
Charterer may provide it’s own fuel, biodiesel, to be used in blends up to 20%, B20, for use with the barge and tug. In the event that additional maintenance is required due to the use of Charterer’s fuel verified by an independent party,
Charterer will bear the costs of such additional maintenance.

  

			
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	 D.     Breakdown. Charterer’s obligation to pay hire applicable to a Vessel shall
be suspended when such Vessel is broken down or otherwise unavailable to provide service without prior notice and planning as in section 3 above for a period of twenty-four (24) hours continuously with Owner having failed to substitute, with
such suspension to be retroactive to the beginning of said twenty-four (24) hours. After any such suspension, hire shall resume upon return of the Vessel to service. A Barge will be deemed unavailable if tankermen are not present to conduct
transfer operations when required.
  
 E.     Annual Escalation. Vessel hire (Tug and Barge) shall be subject to an annual escalation effective on the anniversary of the date when this agreement was executed, as follows:
______________________________________________________________________________________ ___ based on 12 month trailing CPI Index Western Urban (CUUR0400SAO, CUUS0400SAO). ___
______________________________________________________________________________________ ______________________________________________________________________________________
______________________________________________________________________________________
  
 F.     Other Cost Increases. Any increase in operating costs/expenses incurred by Owner during the term of
this agreement and directly resulting from federal, state and/or local laws, statutes and/or regulations applicable to the operation of the Vessels shall be reimbursed by Charterer as set forth in this provision. Such increased operating costs and
expenses shall include, but not be limited to those applicable to manning, duration of voyages (including additional procedures applicable to the Vessels or their loading or discharging which extends the duration of voyages), financial
responsibility requirements; changes in terminal procedures/requirements, installation of additional systems or other equipment on the Vessels and/or mandatory modification, retrofitting and/or upgrade of the Vessels. Notwithstanding the foregoing,
however, no such costs shall be incurred by Owner without prior notification to Charterer of the new law, statute or regulation and explanation to Charterer of the financial impacts of the same.
  
 Any such increase in operating costs/expenses shall be at Owner’s actual cost thereof
without markup or surcharge and invoiced on a current basis promptly following Owner’s actual payment, with payment due as set forth below. However, any such increase in operating costs/expenses not invoiced to Charterer within sixty
(60) days following Owner’s actual payment shall be deemed waived.
  
 In addition, should the foregoing increases in operating costs/expenses exceed seven percent (7_%) during any annual period as proven by independent 3rd party, and should Owner request that such increases be passed to Charterer, Charterer shall have the option to terminate this agreement upon sixty (60) days advance notice to Owner.
  
 G.    Insurance Cost Increase. In addition,
if Owner’s hull and/or P&I insurance rates increase for the tug and barge being used by Charterer more than the PPI & EE Index applicable to Owner’s main office as a result of general market rate increases, Charterer will
reimburse Owner for one hundred percent (100%) of said increase; however, any increase in Owner’s insurance rates based upon claims shall be absorbed by Owner. Owner shall have the responsibility for providing Charterer with reasonable
documentation segregating any insurance rate increase. Owner agrees to share with Charterer the benefit of any decrease in insurance rates as a result of general market rate decreases.
  
 H.     Third Party Business. Owner
shall be at liberty to solicit business from third parties for the Tugs and Barges when not scheduled/utilized by Charterer. If Owner finds that third party business is available and wishes to use the Vessel(s) chartered hereunder, it shall inform
and discuss the matter with Charterer in order to determine whether such will interfere with the transportation services being provided for Charterer. Owner shall not

  

			
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	 proceed with the third party business without Charterer’s consent, but Charterer’s consent shall not be unreasonably withheld. In
the event that Owner performs any such third party business with the Vessels, as set forth in this paragraph, Charterer shall remain responsible for the payment of hire and the costs of fuel and lubricants for such Vessels as set forth herein but
the net revenue to Owner for such third party business shall be shared equally with Charterer on a 50/50 basis.
  
 I.       Charges. Charterer shall be responsible for all charges and expenses accruing during the
charter term and relating to the Vessels, cargoes and/or services hereunder, including without limitation all environmental, customs, port, harbor entrance, dockage, wharfage, pilotage, assist towage, loading/unloading and similar fees and charges.
All spill response association reporting, charges and assessments shall be for Charterer’s account. Any taxes, other than taxes applicable to Owner by virtue of receipt of hire, shall be Charterer’s responsibility and paid/reimbursed by
Charterer. To the extent Owner arranges or advances payment for any of the foregoing fees, charges or expenses which have been allocated to Charterer, it does so as agent for Charterer and Charterer shall promptly reimburse Owner for the
same.
  
 J.      Invoice,
Payment and Interest. Hire shall be due and payable monthly in advance, on the first day of each month. All payments shall be made in U.S. currency without deduction or setoff by wire transfer to Owner’s account or as otherwise requested by
Owner. Sums which are due but which have not been paid shall accrue interest at the rate of one percent (1%) per month from date due until paid in full.
  
 5.      OWNER’S WARRANTIES AND PERFORMANCE
  
 A.     Warranties. Owner shall use due
diligence to deliver the Vessels in a seaworthy condition, equipped and manned sufficiently for the intended services and with all documentation, licensing and permits required for their routine operation. Owner shall perform services hereunder with
due dispatch, but makes no warranty as to arrival/departure times. Owner warrants that the tug and barge when fully loaded and underway will operate at a speed of no less than six knots per hour as further defined in Exhibit 1. Other than the
foregoing, neither Owner nor the Vessels shall be held to any warranty whatsoever, express or implied, including any absolute or other warranty of seaworthiness, any warranty of fitness/suitability for any purpose/use, or any warranty of workmanlike
service.
  
 B.     Exclusive
Control. Owner shall man, navigate, victual, operate, repair and supply the Vessels, and have exclusive control over the Vessels subject to Charterer’s general directions as to cargo operations; Charterer shall advise Owner of ports,
schedules and cargoes, but the manner and means of performance shall at all times be left to the judgment, discretion, direction and control of Owner and the master of the Tug.
  
 C.     Liberties. Owner shall be at
liberty as to routes, speeds and towing arrangements, may sail with or without pilots, may be towed or engage assist towage and/or may call at any port/place to replenish fuel, oil, stores or other necessaries and/or make repairs. Owner may deviate
in attempt to save life or property at sea, but shall not leave the Barge unattended unless in a safe position. Any salvage award applicable to the Vessels shall be shared equally by the parties after deduction of actual expenses and/or physical
damages to property suffered by a party as a result of the salvage effort.
  
 D.     Legal Compliance. Owner shall utilize best efforts to comply with all federal, state and local laws applicable to the operation of its Vessels hereunder and to remain abreast of any
changes to such laws. Owner has MTSA security and OPA-90 spill/emergency response plans for the Vessels and shall at all times comply with the provisions of such plans and the legal requirements applicable to such plans. Owner shall
maintain

  

			
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	 membership in the American Waterways Operators Responsible Carrier Program and ISO 1400 certification during the full term of this
agreement.
  
 E.     Drug and
Alcohol Program. Owner has a drug and alcohol abuse policy applicable to Vessel crewmembers which meets or exceeds the standards of the U.S. Coast Guard; the testing and screening of Vessel crewmembers includes reasonable cause testing, random
testing, pre-employment testing and testing during routine medical examinations. Owner shall maintain and comply with this policy during the full term of this agreement.
  

F.     Loading/Discharging. Owner and its tankermen shall be responsible for the loading and discharging
of cargoes to/from the Barge.
  
 6.      CHARTERER’S WARRANTIES AND PERFORMANCE
  
 A.     Warranties. Charterer warrants that the Vessels shall be able to enter into, operate and be shifted
within, lie at and depart from each port/place that Charterer owns or controls and berth safely afloat at all times, seasons and stages of tide, and that the Vessels shall not be required to force or break ice. Owner shall have discretion to hold
off, refuse to enter or proceed at any time if there is reasonable belief that injury to persons or loss/damage to Vessel(s) or cargoes may result, with Owner to promptly notify Charterer in such an event and thereafter await Charterer’s
instructions as to alternate routes and/or ports/places.
  
 B.     Inspection. Charterer shall be responsible for inspecting the Vessels prior to delivery to determine their suitability and fitness for service, with Charterer to note any deficiencies in writing to
Owner prior to loading any cargoes. Upon Charterer’s acceptance of the Vessels or loading any cargoes, whichever shall first occur, Charterer shall be deemed to have accepted the Vessels, including their fittings, gear and equipment, as being
in all respects suitable and fit for service under this agreement.
  
 C.     Lawful Carriage. Charterer shall not request the Vessels be employed in any unlawful carriage or trade whatsoever, and Charterer shall not provide any unlawful cargoes nor cargoes the
carriage of which would violate any law, statute or regulation.
  
 D.     Ports of Call. Charterer shall be responsible for arranging berth and access for Owner and the Vessels at all ports/terminals of loading/discharging hereunder, at its expense, with such to be included
within the scheduling described in section 3, above.
  
 E.     Cargo Documentation. Charterer shall be solely responsible for all cargo manifests, stowage plans, receipts, invoices, bills of lading and other documentation relating to its cargoes. Charterer shall
be responsible for dealing with all shippers, consignees and owners of the cargoes as well as with any other person or entity having any interest in, or making claim to, through or with respect to, its cargoes. Upon specific request from Charterer,
the Tug’s master may execute bills of lading for the cargoes, in which event it is specifically agreed that the master does so as authorized agent of Charterer and that Charterer shall indemnify and hold Owner and the master and Vessels
harmless from any loss, damage, expense, claim, liability and/or suit arising out of or relating to the execution of any such bill of lading by the master.

  

			
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	 F.     Ultra Low Sulfur Distillate Carriage. It is acknowledged and agreed that Owner
shall rely upon Charterer’s or sub-charterer’s registration(s)/licensing and Quality Assurance and Testing Program with respect to the Clean Air Act and the Environmental Protection Agency’s (EPA’s) National Clean Diesel Campaign
(NCDC), including without limitation the EPA’s gasoline sulfur program set forth at 40 C.F.R. Part 80 as well as any similar state and/or local program. Charterer shall maintain appropriate registration(s)/licensing with the EPA and/or any
applicable state agency, as required, and shall maintain a Quality Assurance and Testing Program meeting the requirements of 40 C.F.R. 80.400 as well as any similar state and/or local program. Charterer shall be responsible for all baselines,
testing and specifications relating to its cargoes, and for compliance with any federal, state and/or local sulfur content or similar program requirements.
  
 Charterer warrants that the cargoes tendered shall meet all applicable federal, state and local sulfur content and related environmental standards, including
EPA/NCDC and state agency standards, whether under a geographical phase-in program or otherwise, and whether at loading, discharging or otherwise. Charterer shall advise Owner in writing and in advance whenever ultra low sulfur distillate (ULSD) is
tendered for transportation. Upon receipt of such notice, Owner shall advise Charterer of the cargoes previously transported in the Barge and, if requested by Charterer, the Barge tanks, pumps, wells and pipelines will be inspected and cleaned to
Charterer’s satisfaction and to meet ULSD standards, with the costs and expenses associated therewith, including disposal of residues, to be for Charterer’s account unless otherwise agreed by Owner.
  
 Charterer shall be responsible for reporting cargo volumes, etc. as required by the EPA,
NCDC and/or any state or local governmental authorities, including without limitation under EPA’s “Designate & Track” program. Charterer shall furnish Owner with any required “Product Transfer Document” forms
necessary for such reporting and/or the loading, transportation or discharging of cargoes. Upon specific request from Charterer, Owner’s personnel may assist with such documents, including coordination between the Barge and facility, under the
condition precedent that all such assistance shall be performed as authorized agent of Charterer and at Charterer’s risk and expense.
  
 7.      PERIODS OF RESPONSIBILITY AS TO CARGOES
  
 Owner shall tender the Barge for loading as scheduled and agreed by the parties, whereupon Charterer shall load
the cargoes by shore pump or gravity feed, as applicable. Owner shall receive the cargoes as they pass the Barge riser, or if Owner provides the hose and makes the hook-up connections at the Barge riser and shore riser, as the cargoes pass the shore
riser. Carrier, defined as the Owner, shall thereafter be responsible for distribution, stowage and transportation of the cargoes aboard the Barge to the port/place of delivery. Carrier’s responsibility shall terminate at the port/place of
delivery as the cargoes being discharged pass the Barge riser, or if Carrier provides the hose and makes the hook-up connections at the Barge riser and shore riser, as the cargoes pass the shore riser. Discharge shall be accomplished by Barge
pumps.
  
 Charterer shall be responsible for the cargoes at all times before and all times after
the period of responsibility allocated to Owner in the paragraph immediately above.

  

			
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	 8.      LIABILITY AND INDEMNITY
  
 A.     Liability
Allocation.
  
 (1).  Owner. Owner
shall be solely responsible for all loss, damage, expense, claim, liability, suit, fine and/or penalty applicable to:
  
 (a).  the Vessel(s), Owner’s personal property and Owner’s employees, howsoever caused and even if resulting from the
negligence or other legal fault of Charterer; and
  
 (b).  any release or discharge of cargoes during the period of responsibility allocated to Owner in section 7, above.
  
 (2).  Charterer. Charterer shall be solely responsible for all loss, damage, expense, claim, liability, suit, fine and/or
penalty applicable to:
  
 (a).  the cargoes
(including shortage, contamination, failure to deliver and misdelivery as well as general average and salvage charges), Charterer’s personal property and Charterer’s employees, howsoever caused and even if resulting from the negligence or
other legal fault of Owner and/or the unseaworthiness of a Vessel; and
  
 (b).  any release or discharge of cargoes before or after the period of responsibility allocated to Owner in section 7, above.
  
 (3).  Both. As to any matter not specifically addressed in this agreement, each party shall be responsible for all loss,
damage, expense, claim, liability, suit, fine and/or penalty to the extent of its proportionate degree of fault or legal liability.
  
 B.     Indemnification. Each party agrees to indemnify and hold the other party harmless (including costs
and legal fees) of and from any loss, damage, claim, liability, suit, fine and/or penalty allocated to it pursuant to subsection A, above, and/or elsewhere in this agreement. In furtherance of the foregoing indemnification agreement, each party
shall waive any immunity from suit and/or exclusivity of remedy afforded by any workers’ compensation act or similar law.
  
 9.      INSURANCE REQUIREMENTS
  
 A.     Owner. Owner shall, at its
expense including the costs of premiums, deductibles and all other policy related charges, cause to be procured and maintained the following insurances for the full duration of the charter term:
  
 (1).  hull and machinery insurance upon the Vessels pursuant
to Pacific Coast Tug/Barge Form (1979), or equivalent, to the full actual market values thereof;
  
 (2).  protection & indemnity insurance, including coverage for pollution/environmental liability, pursuant to a standard
protection & indemnity club entry but in no event less than One Billion dollars; and

  

			
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	 (3).  workers compensation and employers liability insurance upon its employees, extended to include
coverage under the Longshore Act as well as applicable state acts, with statutory limits for workers compensation and limits of at least $1,000,000 for employers liability.
  
 B.     Charterer. Charterer shall, at
its expense including the costs of premiums, deductibles and all other policy related charges, cause to be procured and maintained the following insurances for the full duration of the charter term:
  
 (1).  all risk cargo insurance upon all cargoes to be
transported hereunder, including coverage for contamination and shortage, to the full delivered values thereof including the costs of freight and insurance;
  
 (2).  charterer’s legal liability insurance, specifically extended to cover this agreement and Charterer’s contractual
obligations hereunder, with minimum limits of $5,000,000 per occurrence; and
  
 (3).  pollution/environmental liability insurance, including coverage for damages, cleanup and restoration costs, sufficient to provide coverage for Charterer’s responsibilities and liabilities under this
agreement, including without limitation those allocated to Charterer in subsection 8.A(2)(b), above.
  
 C.     Insuring Conditions. Owner shall be named as an additional assured upon the cargo policy identified
at subsection B(1), above. All policies shall be specifically endorsed to provide a waiver subrogation as to the non-procuring party and to require thirty (30) days written notice to both parties in the event of any decrease in limits,
cancellation, non-renewal or other material change in policy terms and/or conditions. All insurances shall be upon forms and with underwriting security acceptable to the non-procuring party. Prior to commencement of services, each party shall
provide the other with certificates of insurance or complete copies of policies, as may be requested, confirming that the insurances as required above.
  
 D.     Failure of Insurance. Each party shall indemnify and hold the other party harmless (including costs
and legal fees) from any policy deductible, premium or charge allocated to it, from the failure to provide an insurance as required, from the failure (for any reason) of any such insurance, and/or from any other breach of the insurance requirements
set forth in this agreement. It is agreed that the foregoing indemnification agreement shall cover, as well, any failure resulting from breach of warranty or other policy condition.
  
 10.   GENERAL AVERAGE
  
 General average shall be adjusted, stated and settled according to York-Antwerp Rules 1994, excluding Rule B,
at a port or place selected by Owner, and as to matters not provided for by said Rules according to the laws and usage at the Port of Seattle, with the Vessels not to be deemed in a common maritime adventure unless each such Vessel is actually and
directly exposed to a common peril; a Vessel is not in common peril with another if by disconnecting from such other Vessel it is in a position of safety or ceases to be actually and directly exposed to such peril. For purposes of said Rules, the
parties acknowledge that the cargoes are carried in accordance with the recognized custom of the trade.
  
 To the extent required by Owner, average agreement, bond and additional security shall be furnished by Charterer prior to any discharge/release of cargoes. Any cash deposit shall be payable in U.S. currency, remitted to an average adjuster
of Owner’s choosing and held in a special account in the adjuster’s name, with interest thereon to become a part thereof pending settlement of general average.

  

			
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	 In the event of accident, danger, damage or disaster, before or after commencement of a voyage, resulting from any cause whatsoever, whether due to negligence
or not, and for which or for the consequences of which Owner is not responsible by statute, contract or otherwise, the cargoes and Charterer shall contribute with Owner and the Vessels in general average to the payment of any sacrifices, losses or
expenses of a general average nature that may be made or incurred, and shall pay salvage and special charges incurred with respect to the cargoes. The contribution of cargoes and Charterer to general average shall be paid to Owner even when such
average is the result of fault, neglect or error of the master, pilot or crew. If a salving ship is owned/operated by Owner, salvage shall be paid for as fully and in the same manner as if such salvage ship belonged to strangers.
  
 11.   BOTH TO BLAME
  
 In the event of cargo damage resulting from collision, if the Vessels or either of them should collide or come
into contact with another ship or object as a result of the negligence of the other ship or object and any act, neglect or default of master, mariners, pilot or servants of Owner in the navigation, management or maintenance of the Vessels, Charterer
shall indemnify Owner and the Vessels from and against all loss and liability to the other or non-carrying ship, her owners and any third parties insofar as such loss and liability represents a loss of, damage to or any claim whatsoever of
Charterer, the owners of the cargoes and/or their underwriters, paid or payable by the other or non-carrying ship, her owners or third parties to Charterer, the owners of the cargoes or their underwriters and set off, recouped or recovered by the
other or non-carrying ship, her owners or any third parties as a part of their claim(s) against Owner and/or the Vessels. The foregoing shall apply when the owners, operators or those in charge of any ship or object other than or in addition to
those colliding are at fault with respect to such collision or contact.
  
 12.   FORCE MAJEURE
  
 Neither party shall be
responsible for delay or inability to perform caused by: acts of God; perils of the sea; adverse weather conditions; errors in the navigation or management of a Vessel; breakdown or defects in the hull, machinery, equipment, hawsers or lines of a
Vessel not resulting from a lack of due diligence to make the Vessel seaworthy at commencement of voyage; strikes and/or labor troubles; war; restraint or seizure by government or belligerent party; act of terrorism; riot or civil commotion; theft
or pilferage; epidemic; quarantine; embargo; deviation in attempt to save life or property at sea; fire or explosion; and/or any other cause which is beyond the actual direct control of a party.
  
 13.   CONSEQUENTIAL DAMAGES
  
 Neither Owner, Charterer nor the Vessels shall be responsible for any special or consequential damages of any
type or nature whatsoever, including, without limitation, extra expense, loss of earnings, loss of profits, loss of use and business interruption, whether resulting from negligence, unseaworthiness, breach of this agreement or otherwise, even if the
possibility of such damages may have been foreseeable.
  
 14.   LIMITATION OF LIABILITY
  
 This agreement is not a personal
contract nor shall it otherwise operate to prohibit or deny any party the benefits of any limitation of or exemption from liability afforded to shipowners by statute or rule of law.
  
 15.   EXTENSION OF BENEFITS
  
 All exceptions to, exemptions from, defenses to, immunities from and limitations upon liability granted to a
party, whether by operation of this agreement or applicable law, shall be deemed automatically extended to and for the benefit of: all lawful business entities parent to, subsidiary of, affiliated with and/or under the management or control of that
party as well as the shareholders, members, managers, officers, directors, employees and agents of each such entity; and all Vessels provided by that party under this agreement, including its/their owners, demise charterers, managers, operators,
masters, officers and crew.

  

			
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	 16.   TERMINATION
  
 A.     Owner. Owner may terminate this
agreement upon Charterer’s failure to pay hire, charges or any other amount when and as due under this agreement thirty (30) days following written notice to Charterer of such failure to pay.
  
 B.     Charterer. Charterer may
terminate this agreement in the event the Vessels or either of them breaks down or is otherwise unable to perform outside of planned and scheduled maintenance hereunder for a continuous period of twenty (20) days, with Owner having failed to
provide a substitute or otherwise resume performance; in such an event, hire shall continue until the Vessels have returned to the redelivery port/place or for such period of time routinely required for the Vessels to return to such port/place,
whichever is less.
  
 C.     Automatic. This agreement shall terminate automatically upon the filing of any type of bankruptcy, the making of a general assignment for the benefit of creditors, the appointment of any type of
receiver and/or the filing of any type of petition for reorganization or bankruptcy by or against either party.
  
 17.   LIENS
  
 Charterer shall not create or suffer to exist any lien whatsoever upon the Vessels or either of them. Charterer shall indemnify and hold harmless (including legal fees and costs)
Owner of and from any lien upon the Vessel(s) arising out of the acts or omissions of Charterer; should the Vessel(s) be arrested or detained by reason of any such lien arising out of the acts or omissions of Charterer, Charterer shall, at its risk
and expense, take all reasonable steps to secure the prompt release of the Vessel(s) including without limitation establishment of appropriate security and/or bonds.
  
 18.   CONFIDENTIALITY
  
 Each party agrees that information which it receives from the other party with respect to this agreement, including without limitation Owner’s hire rates and Vessel
specifications as well as Charterer’s cargoes, customers and procedures, shall be kept confidential and not disclosed to any other person or entity.
  
 19.   ASSIGNMENT AND SUBCHARTERING
  
 Neither party may assign this agreement without the prior written assent of the other party. Charterer shall not subcharter the Vessels or either of them without the prior written
assent of Owner.
  
 20.   LAW,
JURISDICTION AND VENUE
  
 This agreement shall be governed by the general maritime law of the
United States, or by the laws of the State of Washington in the event there is no applicable general maritime rule of law. The parties hereby submit to the exclusive personal and subject matter jurisdiction of the United States District Court
located in Seattle, Washington with respect to any dispute arising out of this agreement, with the substantially prevailing party entitled to recover its reasonable legal fees and costs.
  
 21.   COUNTERPARTS AND EXECUTION
  
 This agreement may be executed in counterparts and/or by facsimile or other electronic exchange of signatures,
with all such counterparts deemed the same single agreement and all signatures exchanged by facsimile or other electronic means deemed equivalent to original signatures.

  

			
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	 22.   INTEGRATION AND CONSTRUCTION
  
 This agreement, including Exhibit 1 hereto, constitutes the entire agreement between the parties and expressly
supersedes all prior and contemporaneous agreements, written and oral. This agreement shall not be modified or appended except through a writing signed by both parties. This agreement shall be construed neutrally, and as the commemoration of the
mutual assent of both parties, rather than for or against a party.

  
 DATED THIS 20TH DAY OF NOVEMBER, 2006.

  
  

			
	 OWNER:
  
 Sea Coast Transportation, LLC
	  	 CHARTERER:
  
 Imperium Renewables, Inc.

		
	 /s/ Michael Magill
	  	 /s/ John Plaza

	Authorized Signature	  	Authorized Signature
		
	 Michael Magill     Vice President
	  	 John Plaza     President

	Printed Name and Title	  	Printed Name and Title

  
  
  

			
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	 EXHIBIT 1
  
 VESSEL SPECIFICATION
  
 OWNER AGREES TO PROVIDE A TUG WITH THE FOLLOWING SPECIFICATIONS:
  
 A)    HORSEPOWER
  
 A.     TUG WILL HAVE A HORSEPOWER NOT LESS THAN 3000 HP
  
 B)    FUEL CONSUMPTION
  
 A.     TUG’S FUEL CONSUMPTION WILL
NOT EXCEED 4,000 GALLONS A DAY WHEN UNDER FULL POWER
  
 C)    SPEED
  
 A.     TUG’S AVERAGE SPEED WILL NOT BE LESS THAN 6 KNOTS WHEN FULLY LADEN AND NOT LESS THAN 8 KNOTS WHEN RUNNING EMPTY. (SEACOAST TO INSERT WEATHER PROVISIONS FOR ABNORMAL WEATHER CONDITIONS)

 
 BARGE SPECIFICATIONS ATTACHED.

  
  
  

			
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	 EXHIBIT 2
  
 REQUIRED IMPROVMENTS
  
 THE FOLLOWING LIST OF IMPROVEMENTS WILL BE COMPLETED ACCORDING TO PRUDENT INDUSTRY STANDARDS PRIOR TO EQUIPMENT BEING DELIVERED TO CHARTERER. OWNER WILL PROVIDE SPECIFICATION
FOR WORK TO BE PERFORMED TO BE APPROVED BY CHARTERER PRIOR TO WORK COMMENCING.
  
 1. Vessel is
to be presented at time of delivery and charter on-hire survey in a condition suitable for the service intended and having had all external surface active corrosion and localized coatings breakdown fully adressed and repaired so as to meet the
highest cosmetic and safety standards that might apply in West Coast Terminals to be utilized over the term of the agreement.
  
 The servicing and maintenance of the external coating systems on the vessel from the waterline to the deck edge and the entire main deck, side shell to side shell, bow to stern
inclusive of fittings, foundations, deck houses, hose racks and piping should be subjected to a full commercial blast (SSPC-6) with spot blasting in localized areas of active corrosion or rust to near white (SSPC-10). Spot blasted areas should be
coated with one touch up coat of A/C and the entire blasted area, side shell and main deck inclusive of houses, fittings and attachments should have one full coat A/C and one full finish coat of paint applied. Ameron 235 or equal Marine Coatings for
a system that will last thru the charter term and any possible extensions.
  
 2. A suitable oil
fired (Biodiesel Capable) cargo heating system shall be fitted to be able to maintain the designated cargoes at or above 80 degrees farenheight and be so arranged to facilitate recirculation of cargo during heating prior to discharge. The heating
system fitted can be attached to existing coils in the compartments if said coils are proven to be tight and servicable, or an alternative on deck modular recirculating heating system can be substituted. All systems fitted must fully comply with all
applicable USCG and ABS rules.
  
 Vessel owner must warrant that the loading of Biodiesel at the
terminal prior to departure at 200 degrees F will not in any way damage the vessel or its fitted pumping and piping systems.
  
 3. Vessel Owner shall conduct an Electrical Load Analysis to verify that all fitted and planned systems can be supported by the existing diesel generators. In the event that
changes, repairs, upgrades or modifications are required to support the charterers defined operations, said scope of work must be accomplished prior to delivery and on-hire survey. Reports of operational load testing and/or electrical load
calculations shall be submitted fo acceptance by Charterers Technical Representative prior to on-hire date.
  
 4. Should additional load requirements require the installation of increased generating capacity, this modification shall be treated as in item 3 above.
  

  
  

			
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	 5. Marine standard,USCG approved battery powered running lights (Perco or equal) shall be fitted prior to delivery and on-hire. Operation of same shall be
demonstrated as part of the on-hire survey.
  
 6. All fitted or added cargo system piping and
stripping system valves shall be hydrostatically tested and proved to be tight and leak free when closed and free of leakage at flange and stem packing gland when open. Tests and records of same shall be presented prior to delivery and on-hire
survey.
  
 7. The fitted air powered deck mooring and anchor windlass system is to be fully tested
for operational readiness under load so as to verify sufficient capacity of existing air compressors and to verify sufficient electrical power supply as the combined systems operate.
  
 The air controls and operating valves are to be fitted with drains and lubrication points to support
operations in cold, northwest climates.
  
 Reports and records of system servicingm maintenance and
modifications made are to be presented prior to delivery and on-hire survey.
  
 NOTE: All systems
listed above and all fitted systems fitted on the vessel at time of delivery are subject to inspection, operational testing and acceptance by the Charterers Technical Representative at time of on-hire survey.
  

  
  
  
  

			
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