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Fuel Marketing Agreement

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Service agreement template covering scope of services, fees, performance, and term.

Best Efforts to Market. That since [COMPANY] shall have the right to market all the fuel produced by [COMPANY] during the term of this agreement as described in Section 1 herein, [COMPANY] promises and agrees to use its best efforts and good faith to market all such fuel grade ethanol; provided, however, that [COMPANY]’ obligation hereunder shall be excused in case of fire, flood, other natural calamity, labor dispute or any adverse governmental statute, regulations or decree (including any court order or decree), directly affecting [COMPANY] ability to market products.

6. Risk of Loss. That [COMPANY] will be responsible for the marketing (subject to the terms of this agreement) of all such fuel grade ethanol produced by [COMPANY] as described in Section 1 herein, from the time the common carrier or customer takes custody of the product at [COMPANY]’s facility in either a railcar and/or tank truck. In addition, [COMPANY] shall bear the risk of loss for all such products that have been accepted for shipment by the common carrier.

7. Specific Marketing Tasks. [COMPANY] shall be totally responsible for the marketing, sale and delivery of all the ethanol production from [COMPANY]’s facility during the term of this agreement, including, but not limited to:

§ Obtaining sufficient railcar, tank trucks and other transport as may be needed to handle said production;

§ Negotiating the rates and tariffs to be charged for delivery of such production to the customer;

§ Promoting and advertising the sale of fuel grade ethanol as appropriate;

§ Ascertaining that such production is delivered where contracted and intended;

§ Handling all purchase agreements with consumers and any complaints in connection therewith; and

§ Collecting all accounts and undertaking any legal collection procedures as may be necessary.

8. Negotiation of Ethanol Price. [COMPANY] will use its best efforts to obtain the best price for all fuel grade ethanol sold by it pursuant to the terms of this Agreement. Within six (6) months of anticipated start-up operations, [COMPANY] shall inform [COMPANY] whether its ethanol will be marketed under the pooling or non-pooling ethanol marketing arrangement described in this Agreement. Upon expiration of the Initial Term of this Agreement and in the event the Agreement is renewed, [COMPANY] shall consult with [COMPANY] to compare and discuss the ethanol marketing results produced by the pooling or non-pooling arrangement selected by [COMPANY] prior to commencement of operations and [COMPANY] shall elect whether to begin or continue using either the pooling or non-pooling ethanol marketing arrangement for the duration of the Renewal Term.

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Fuel Marketing Agreement

Service Agreements -- US - General