Common use of Quantity and Quality Clause in Contracts

Quantity and Quality. A. Subject to the terms of Section 2.B. below, Husker shall sell exclusively to ARE the total output of fuel grade ethanol (“Ethanol”) produced at Husker’s Plainview, Nebraska facility (“Plant”), currently anticipated to be approximately seventy (70) million gallons per year. Ethanol shall be delivered FOB the Plant, and title shall pass on the date of the ▇▇▇▇ of Lading. Ethanol produced for the intended use as an alternative or racing fuel shall not be excluded from this Agreement. B. Notwithstanding the foregoing provision of this Agreement, Husker shall retain the right to ratably market up to one hundred twenty thousand (120,000) gallons per month of Husker’s total production of Ethanol, provided that any and all such sales shall be within one hundred (100) miles of the Plant. Husker shall give sufficient advance written notice of such gallons to ARE as the parties may agree. Upon receipt of such notice from Husker, ARE shall grant written permission to Husker to make such gallons available for marketing by Husker as soon as possible, and such permission shall not be unreasonably withheld. Under no circumstance shall any gallons committed to customers of ARE be available for marketing by Husker. Once permission is granted to Husker by ARE, the requested gallons shall become the sole responsibility of Husker. C. Such Ethanol shall meet or exceed all industry standards and any specifications required by ARE’s customers. ARE shall have the right to reject any Ethanol which does not meet such standards and such standards are subject to change by ARE. ARE’s current specifications are attached as Exhibit A hereto.