Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.21

AQUILA, INC. d/b/a AQUILA NETWORKS

LARGE VOLUME TRANSPORTATION

SERVICE AGREEMENT

(Iowa)

This Agreement is entered into effective at the date shown below, by and between Aquila, Inc.,
d/b/a Aquila Networks (“Company”) and Customer, whose name, account numbers and service addresses
are identified in Exhibit A.

Whereas, Customer has obtained or will obtain supplies of natural gas and desires Company to
receive such natural gas and transport and deliver such gas to Customer, and to provide certain
other related services to Customer; and

Whereas, Company is willing to provide natural gas transportation and related services to
Customer, subject to the terms and conditions set forth herein.

Now, therefore, in consideration of the above premises and the covenants contained herein,
Company and Customer agree as follows:

1. Availability: Service under this Agreement is available to any large volume
customer as defined in accordance with Company’s then current rate schedules. Customers with
multiple service locations may include premises served under the Company’s Small Volume and General
Service rate schedules if other premises are served under the Large Volume rate schedules.

2. Character of Service. Service hereunder shall be offered on a non-discriminatory
firm and/or interruptible basis contingent upon adequate system capacity.

3. Confirmation Regarding Interruptible Service. Customers electing interruptible
service hereby confirm the customer has an alternate fuel capability or is willing to discontinue
gas service during periods of curtailment. Customer represents that it meets the service
availability requirements for transportation service under this Agreement.

4. Pipeline Capacity Assignment. Large volume customers who convert to transportation
service may be required to take assignment to pay for, at the option of the Company, firm
interstate natural gas pipeline capacity and supplies designated by Company for a period of up to
one year. Service will be provided on a firm basis only if Customer has arranged firm
transportation for such gas supplies on the interstate pipeline serving Company’s distribution
system.

5. Governing Tariff: Service hereunder is provided by Company pursuant to its
Transportation Rate Schedule, and pursuant to the General Rules, Regulations, Terms and Conditions,
including but not limited to provisions governing pipeline charges, nominations, payment and
penalties, all as contained in Company’s Gas Tariff on file with the Iowa Utilities Board (“IUB”),
as the same may be amended, modified or superseded from time to time (the “Tariff”).

 

 

 

6. Customer Obligations for Firm Service: Customer agrees to provide and maintain the
following:

A. Firm Transportation Rights. Customer represents to Company that it has and will
maintain, or will have and maintain at all relevant times, firm transportation rights on
transporting pipelines upstream of Company’s natural gas distribution system in the
community(ies) of service to deliver on a firm basis all volumes of gas to Company for
Customer’s accounts identified on Exhibit “A” attached hereto. In the event any such firm
transportation rights are terminated or limited in any manner so that Customer is unable to
deliver gas to Company’s natural gas distribution system as required herein, then Customer
shall immediately notify Company in writing sent be facsimile to the fax number provided in
Section 16.

B. Telemetry. Customers must install telemetry equipment acceptable to Company. Customer
must reimburse Company for the cost of all on-site plant investments, including telemetry
equipment, installed by Company to provide transportation service to Customer. The
telemetry equipment and any other improvements shall remain the property of Company and will
be maintained by the Company. Customer shall also provide telephonic access and service to
this telemetry equipment acceptable to Company.

7. Optional Aggregation Service:

3. Charges: Customer shall be responsible for and shall pay to Company the following
charges for the periods indicated or as otherwise applicable:

	 	 	 
	Transportation 

Administration 

Charge:

 
	 	$150 per month per facility for administrative costs
relating to transportation service. Facility shall
include all meters under common ownership behind the same
town border station (TBS).
	 
	 	 
	Customer
Charge:

	 	The applicable sales tariff basic monthly charge for
which Customer would otherwise qualify, subject to change
as may be approved by the IUB from time to time.
	 
	 	 
	Capacity Charge:
	 	If applicable, the amount is set forth in Customer’s
regular sales tariff schedule.
	 
	 	 
	Delivery Charge:

	 	All volumes received by Customer hereunder shall be
charged a rate equal to the tariff volumetric delivery
component of Company’s rate then in effect under its
sales rate schedule for such Customer. In addition,
Customer must pay for all fixed gas costs assigned to
Customer in the regular sales tariff rate. Fixed gas
costs could include, but are not limited to: Daily Firm
Capacity Charges and Annual Cost Adjustment Charges.
Additional costs will be assigned as they are authorized
by the FERC or
the IUB to be charged for transportation services, including but not limited to
take-or-pay costs, TCR costs, and GRI costs. In addition, all volumes
delivered from system gas supply shall be charged the rate set forth in the
appropriate Company’s sales tariff schedule.

 

 

 

	 	 	 
	Optional Services:

	 	The following service, described in
Company’s Tariff areavailable at Customer’s option:
Aggregation Service

Customer has elected and agreed to purchase the optional services designated in
Section...herein, if any. Customer agrees to pay the charges associated therewith according to and
as set forth in Company’s Tariff as amended from time to time. Customer shall, upon request of
Company, execute such agreements as Company deems necessary or appropriate to effectuate the above
services.

9. Term: This Agreement shall remain in effect for a primary term of one year from
the date service commences hereunder, and thereafter from year to year until canceled by either
party with notice as required in Company’s then current tariffs. Service commencement shall mean
the month and day Customer provides its initial nomination.

10. Pipeline Charges; Capacity Assignment: Any charges that Company incurs from a
pipeline on behalf of Customer will be passed through to Customer.

11. Regulatory Commission Authority: The provisions of this Agreement are subject to
Company’s Tariff, including but not limited to force majeure provisions, all valid legislation with
respect to the subject matter hereof and to all present and future orders, rules, and regulations
of the Iowa Utilities Board (“IUB”) and any other regulatory authorities having jurisdiction over
(a) the transportation of natural gas contemplated hereunder, or (b) the construction and operation
of any facilities required to deliver said natural gas. Customer agrees that Company shall have
the right to unilaterally make and to file with any and all regulatory bodies exercising
jurisdiction, now or in the future, changes in rates or new rates or any other changes to Company’s
Tariff, and that Customer shall be bound by such changes or new rates as are approved by such
regulatory bodies. In the event of any conflict between the terms of this Agreement and the
Tariff, the Tariff shall control.

12. Acknowledgment of Transportation Risks: Customer hereby acknowledges and accepts
the following risks and requirements associated with transporting gas:

	 	(a)	 	the risk that Customer may incur penalties for unauthorized takes balancing and
scheduling charges, and any charges Company incurs from the pipeline on behalf of
Customer; and

	 
	 	(b)	 	The risk that Customer must stop using gas when notified by Company or by
Customer’s gas supplier of any interruption affecting Customer’s gas supply or
transportation service.

 

 

 

13. Indemnification: In addition to indemnifications included above, Customer (the
“Indemnifying Party”) will indemnify, hold harmless and defend Company and its officers, directors,
shareholders, agents, employees, and representatives (collectively, the “Indemnified
Party”) from all claims, liabilities, fines, interest, costs, expenses and damages (including
reasonable attorneys’ fees) incurred by the Indemnified Party (collectively the “Indemnified
Losses”), for any damage, injury, death, loss or destruction of any kind to persons or property, to
the extent the damage, injury, death, loss or destruction arises out of or is related to the
conduct, negligence, willful misconduct, misrepresentation, or other breach of this Agreement on
the party of the Indemnifying Party or any of its representatives, agents, employees or
contractors.

14. Assignment: Customer may not assign this Agreement, in whole or in part, or
delegate any of its obligations under this Agreement without the prior written consent of Company.

15. Entire Agreement: This Agreement and Company’s Tariff constitute the entire
agreement of the parties with respect to the subject matter hereof, and supersedes and replaces all
other prior or contemporaneous agreements between the parties regarding such subject matter.

16. Notices: Notices required or otherwise given under this Agreement, except notices
specifically allowed to be provided by facsimile, shall be given in writing and mailed by first
class mail to the other party at the addresses provided below:

	 	 	 
	Company:                                      
                    

	 	Customer:                                      
                    
	Aquila, Inc.

	 	Company: Central Iowa Energy, LLC
	d/b/a Aquila Networks

	 	Attention: Derek Winkel
	Attention: Matt O’Reilly

	 	Address: 3426 E 28th St. N
	PO Box 68, 1414 W. Broadway

	 	Newton, IA 50208
	Council Bluffs, IA 51501

	 	Telephone: 641-791-1010
	 

	 	Fax: 641-791-1192
	Telephone: (712) 325-3001
	 	 
	OR
	 	 
	Aquila Gas Supply Services
	 	 
	1815 Capital Ave.
	 	 
	Omaha, NE 68102
	 	 
	Telephone: (800) 454-8652
	 	 

17. Customer Elections

Election of Interruptible and Firm Units

Daily Interruptible Units MMBtu

Daily Firm Units: 0 (Zero) MMBtu

Election of Optional Services

Aggregation Service                     

 

 

 

The parties have executed this Agreement effective the date first above written.

	 	 	 	 	 	 	 	 	 	 	 
	Aquila, Inc., d/b/a
Aquila Networks	 	 	 	Central Iowa
Energy	 	 
	 	 	 	 	(Print customer name)	 	 
	 
	By: 

Name:

	 	/s/ Matthew G. O’Reilly
 

Matthew G. O’Reilly
	 	 	 	By

Name:
	 	/s/ Derek Winkel
 

Derek Winkel
	 	 
	Title:

	 	Customers Relations Mgr.
	 	 	 	Title:
	 	General Manager	 	 
	Date:

	 	8/27/07
	 	 	 	Date:
	 	8/29/07	 	 

 

 

 

EXHIBIT A

Control Group:    
               
               
               
               
               
              
              
              

     
  
  
  
  
(name of entity with common ownership of multiple premises)

	 	 	 	 	 	 	 
	Account No.

	 	Customer Name
	 	Premise Address
	 	Peak Usage
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	1455836477

	 	Central Iowa Energy
	 	3426 E. 28th St. N., Newton, IA
	 	450 Mcf/d

 

6Filed by Bowne Pure Compliance

 

Exhibit 10.22

AMENDED AND RESTATED REVOLVING LINE OF CREDIT NOTE

			
	 	 	 
	$4,500,000.00
	 	October 17, 2007

1. FOR VALUE RECEIVED, CENTRAL IOWA ENERGY, LLC, an Iowa limited liability company (the
“Borrower”), hereby promises to pay to the order of F & M Bank-Iowa, a bank chartered under the
laws of Iowa (the “Lender”), the principal sum of Four Million Five Hundred Thousand and No/100ths
($,500,000.00) Dollars, or so much thereof as may be advanced to, or for the benefit of, the
Borrower and be outstanding, with interest thereon, to be computed on each advance from the date of
its disbursement as set forth herein pursuant to that certain Amended and Restated Master Loan
Agreement of even date herewith by and between the Lender and the Borrower (as it may be amended,
modified, supplemented, extended or restated from time to time, the “MLA”), and pursuant to that
certain Amended and Restated Third Supplement to the MLA, dated as of even date herewith, by and
between the Lender and the Borrower (as it may be amended, modified, supplemented, extended or
restated from time to time, the “Third Supplement”), and which remains unpaid, in lawful money of
the United States and immediately available funds. This Amended and Restated Revolving Line of
Credit Note (the “Note”) is issued pursuant to the terms and provisions of the MLA and the Third
Supplement and is entitled to all of the benefits provided for in the MLA and the Third Supplement.
All capitalized terms used and not defined herein shall have the meanings assigned to them in the
MLA and the Third Supplement.

2. The outstanding principal balance of this Note shall bear interest at a variable rate
determined by Lender to be three and one-quarter percent (3.25%) above the LIBOR Rate in effect on
the date of the first Advance pursuant to this Note. Notwithstanding the foregoing, the rate of
interest under this Note shall be adjusted by Lender pursuant to the provisions of the MLA, the
Third Supplement and this Note.

3. The “LIBOR Rate” means the rate (rounded upward to the nearest sixteenth and adjusted for
reserves required on Eurocurrency Liabilities (as hereinafter defined) for banks subject to FRB
Regulation D (as hereinafter defined) or required by any other federal law or regulation, quoted by
the British Bankers Association (the “BBA”) at 11:00 a.m. London time two Banking Days (as
hereinafter defined) before the commencement of the Interest Period for the offering of U.S. Dollar
deposits in the London interbank market for an Interest Period of one month, as published by
Bloomberg or another major information vendor listed on BBA’s official website. “Banking Day”
shall mean a day on which Lender is open for business, dealings in U.S. dollar deposits are being
carried out in the London interbank market, and banks are open for business in New York City and
London, England. “Eurocurrency Liabilities” has the meaning as set forth in FRB Regulation D.
“FRB Regulation D” means Regulation D as promulgated by the Board of Governors of the Federal
Reserve System, 12 CFR Part 204, as amended from time to time

4. The rate of interest due hereunder shall initially be determined as of the Availability
Date and shall thereafter be adjusted, as and when, the LIBOR Rate changes. All such adjustments
to the rate of interest shall be made and become effective as of the first day of the month
following the date of any change in the LIBOR Rate and shall remain in effect until and including
the day immediately preceding the next such adjustment (each such day hereinafter being referred to
as an “Adjustment Date”). All such adjustments to said rate shall be made and become effective as
of the Adjustment Date, and said rate as adjusted shall remain in effect until and including the
day immediately preceding the next Adjustment Date. Interest hereunder shall be computed on the
basis of a year of three hundred sixty-five or three hundred sixty-six (365 or 366) days, but
charged for actual days principal is outstanding.

 

 

 

5. Notwithstanding anything to the contrary in the MLA, the Third Supplement and this Note, no
advances will be made to the Borrower under this Note until the Availability Date as specified in
the Third Supplement.

6. Beginning on the first (1st) day of the first calendar month following the
Availability Date and continuing on the first (1st) day of each succeeding month
thereafter until the Revolving Line of Credit Loan Maturity Date, the Borrower shall make monthly
payments of accrued interest.

7. The outstanding principal balance hereof, together with all accrued interest, if not paid
sooner, shall be due and payable in full on October 14, 2008 (the “Revolving Line of Credit Loan
Maturity Date”).

8. All payments and prepayments shall, at the option of the Lender, be applied first to any
costs of collection, second to any late charges, third to accrued interest and the remainder
thereof to principal.

9. This Note may be prepaid at any time, at the option of the Borrower, either in whole or in
part, subject to the obligation of the Borrower to compensate the Lender for any loss, cost or
expense as a result of such prepayment as set forth in the MLA and the Third Supplement.
Notwithstanding anything to the contrary herein, this Note shall be subject to the prepayment
premium provided for in Section 2.10 of the MLA. This Note is subject to mandatory prepayment, at
the option of the Lender, as provided in the MLA and the Third Supplement.

10. In addition to the rights and remedies set forth in the MLA and the Third Supplement: (i)
if the Borrower fails to make any payment to Lender when due under this Note, then at Lender’s
option in each instance, such obligation or payment shall bear interest from the date due to the
date paid at 2% per annum in excess of the rate of interest that would otherwise be applicable to
such obligation or payment under this Note; (ii) upon the occurrence and during the continuance of
an Event of Default beyond any applicable cure period, if any, at Lender’s option in each instance,
the unpaid balances under this Note shall bear interest from the date of the Event of Default or
such later date as Lender shall elect at 2% per annum in excess of the rate(s) of interest that
would otherwise be in effect under the terms of this Note; (iii) after the Revolving Loan Maturity
Date, whether by reason of acceleration or otherwise, the unpaid principal balance of this Note
(including without limitation, principal, interest, fees and expenses) shall automatically bear
interest at 2% per annum in excess of the rate of interest that would otherwise be in effect under
this Note. Interest payable at the Default Rate shall be payable from time to time on demand or,
if not sooner demanded, on the last day of each calendar month.

11. If the Borrower fails to make any payment to Lender within ten (10) days of the due date
thereof, the Borrower shall pay, in addition to such amount, a late charge equal to five percent
(5%) of the amount of such payment.

12. This Note is secured by, among other instruments, a Amended and Restated Mortgage,
Security Agreement and Financing Statement of even date herewith (the “Mortgage”) covering various
parcels of real property, fixtures, and personal property located in Jasper County, Iowa. In the
event any such security is found to be invalid for whatever reason, such invalidity shall
constitute an event of default hereunder. All of the agreements, conditions, covenants,
provisions, and stipulations contained in the Mortgage, or any instrument securing this Note are
hereby made a
part of this Note to the same extent and with the same force and effect as if they were fully set
forth herein. It is agreed that time is of the essence of this Note.

 

 

 

13. Upon the occurrence at any time of an Event of Default or at any time thereafter, the
outstanding principal balance hereof plus accrued interest hereon plus all other amounts due
hereunder shall, at the option of the Lender, be immediately due and payable, without notice or
demand and Lender shall be entitled to exercise all remedies provided in this Note, the MLA, the
Third Supplement, or any of the Loan Documents.

14. Upon, the occurrence at any time of an Event of Default or at any time thereafter, the
Lender shall have the right to set off any and all amounts due hereunder by the Borrower to the
Lender against any indebtedness or obligation of the Lender to the Borrower.

15. The Borrower promises to pay all reasonable costs of collection of this Note, including,
but not limited to, reasonable attorneys’ fees paid or incurred by the Lender on account of such
collection, whether or not suit is filed with respect thereto and whether or not such costs are
paid or incurred, or to be paid or incurred, prior to or after the entry of judgment.

16. Demand, presentment, protest and notice of nonpayment and dishonor of this Note are
hereby waived.

17. This Note shall be governed by and construed in accordance with the laws of the State of
Iowa.

18. The Borrower hereby irrevocably submits to the jurisdiction of any Iowa state court or
federal court over any action or proceeding arising out of or relating to this Note, the MLA and
any instrument, agreement or document related hereto or thereto, and the Borrower hereby
irrevocably agrees that all claims in respect of such action or proceeding may be heard and
determined in such Iowa state or federal court. The Borrower hereby irrevocably waives, to the
fullest extent it may effectively do so, the defense of an inconvenient forum to the maintenance of
such action or proceeding. Nothing in this Note shall affect the right of the Lender to bring any
action or proceeding against the Borrower or its property in the courts of any other jurisdiction
to the extent permitted by law.

	 	 	 	 	 
	 	CENTRAL IOWA ENERGY, LLC, an Iowa
limited liability company

 	 
	 	/s/ James Johnston
 	 
	 	By:  James Johnston 	 
	 	Its:  Chairman

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