Common use of Off-Grade Product Clause in Contracts

Off-Grade Product. In the event off-grade Product is produced at the Biodiesel Facility that is not marketable at the Product Prices then in effect, REG Services will nonetheless use its best efforts to sell such Product for Blackhawk Biofuels at the highest prices reasonably obtainable. With respect to biodiesel, and for purposes of this Agreement, off-grade Product shall include biodiesel which fails to meet the specifications contained in ASTM D6751 as it may be amended or modified (or such other standards for biodiesel as may in the future develop in the biodiesel industry) or if for any other reason a customer reasonably rejects biodiesel. With respect to Products other than biodiesel, for purposes of this Agreement, off-grade Product shall include Product which fails to meet specifications mutually agreed upon by the parties, or if for any other reason a customer reasonably rejects such Product. In the event off-grade Product is sold, REG Services shall work to minimize any loss to Blackhawk Biofuels for returned Product, cost of cover, and related expenses. REG Services shall advise Blackhawk Biofuels of Product complaints, and shall not accept the return of, or make any allowance with respect to any Product, without Blackhawk Biofuels’ prior written approval. REG Services and Blackhawk Biofuels shall work together to determine the resolution of customer complaints and off-grade Product sales. Blackhawk Biofuels shall pay for any costs associated with resolution of customer complaints or returned Product, including freight costs, cover, and related expenses, unless such Product deficiencies were caused by the negligence or willful misconduct of REG Services, in which event REG Services will be responsible for such costs. Except where caused by REG Services’ negligence or willful misconduct, Blackhawk Biofuels agrees to indemnify REG Services from any loss, claim or damage (including reasonable attorney fees) incurred as a result of the sale of off-grade Product.

Off-Grade Product. In the event off-grade Product is produced at the Biodiesel Facility that is not marketable at the Product Prices then in effect, REG Services will nonetheless use its best efforts to sell such Product for Blackhawk Biofuels East Fork Biodiesel at the highest prices reasonably obtainable. With respect to biodiesel, and for purposes of this Agreement, off-grade Product shall include biodiesel which fails to meet the specifications contained in ASTM D6751 as it may be amended or modified (or such other standards for biodiesel Biodiesel as may in the future develop in the biodiesel industry) or if for any other reason a customer reasonably rejects biodiesel. With respect to Products other than biodiesel, for purposes of this Agreement, off-grade Product shall include Product which fails to meet specifications mutually agreed upon by the parties, or if for any other reason a customer reasonably rejects such Product. In the event off-grade Product is sold, REG Services shall work to minimize any loss to Blackhawk Biofuels East Fork Biodiesel for returned Product, cost of cover, and related expenses. REG Services shall advise Blackhawk Biofuels East Fork Biodiesel of Product complaints, and shall not accept the return of, or make any allowance with respect to any Product, without Blackhawk Biofuels’ East Fork Biodiesel’s prior written approval. REG Services and Blackhawk Biofuels East Fork Biodiesel shall work together to determine the resolution of customer complaints and off-grade Product sales. Blackhawk Biofuels East Fork Biodiesel shall pay for any costs associated with resolution of customer complaints or returned Product, including freight costs, cover, and related expenses, unless such Product deficiencies were caused by the negligence or willful misconduct of REG ServicesREG, in which event REG Services will be responsible for such costs. Except where caused by REG Services’ REG’s negligence or willful misconduct, Blackhawk Biofuels East Fork Biodiesel agrees to indemnify REG Services from any loss, claim or damage (including reasonable attorney fees) incurred as a result of the sale of off-grade Product.

Off-Grade Product. In the event off-grade Product is produced at the Biodiesel Facility that is not marketable at the Product Prices then in effect, REG Services West Central will nonetheless use its best efforts to sell such Product for Blackhawk Biofuels at the highest prices reasonably obtainable. With respect to biodiesel, and for purposes of this Agreement, off-grade Product shall include biodiesel which fails to meet the specifications contained in ASTM D6751 as it may be amended or modified (or such other standards for biodiesel as may in the future develop in the biodiesel industry) or if for any other reason a customer reasonably rejects biodiesel. With respect to Products other than biodiesel, for purposes of this Agreement, off-grade Product shall include Product which fails to meet specifications mutually agreed upon by the parties, or if for any other reason a customer reasonably rejects such Product. In the event off-grade Product is sold, REG Services West Central shall work to minimize any loss to Blackhawk Biofuels for returned Product, cost of cover, and related expenses. REG Services West Central shall advise Blackhawk Biofuels of Product complaints, and shall not accept the return of, or make any allowance with respect to any Product, without Blackhawk Biofuels’ prior written approval. REG Services West Central and Blackhawk Biofuels shall work together to determine the resolution of customer complaints and off-grade Product sales. Blackhawk Biofuels shall pay for any costs associated with resolution of customer complaints or returned Product, including freight costs, cover, and related expenses, unless such Product deficiencies were caused by the negligence or willful misconduct of REG ServicesWest Central, in which event REG Services West Central will be responsible for such costs. Except where caused by REG Services’ West Central’s negligence or willful misconduct, Blackhawk Biofuels agrees to indemnify REG Services West Central from any loss, claim or damage (including reasonable attorney fees) incurred as a result of the sale of off-grade Product.