Common use of WORK TO BE UNDERTAKEN Clause in Contracts

WORK TO BE UNDERTAKEN. See RESEARCH AND DEVELOPMENT PLAN (Attachment A to this SCHEDULE). Subject to the RESEARCH AND DEVELOPMENT PLAN, an overview of NOBLE work includes: Objective 1. In the spring of 2007, research will be initiated on four NOBLE cooperators’ farms and one NOBLE farm to determine biomass yields and production economics of switchgrass as a bioenergy crop under one and two harvest per year systems across southern Oklahoma. The five locations will span a 15 to 50 inch rainfall gradient: 1) far-west; 2) west; 3) central (NOBLE farm); 4) east; and 5) far-east. Two harvest frequencies will be evaluated: 1) cut once at the end of the growing season for biofuel purposes; 2) cut twice — ‘boot’ stage for forage and at the end of the growing season for biofuel purposes. Contracts will be established with cooperators to allow NOBLE to establish and produce switchgrass through 2011. Plot size will be [***] acres and will be replicated [***] times per treatment for a total of [***] acres of production at each location. In March-April 2007, soils will be tested for phosphorous, potassium, and pH and deficiencies will be corrected so as not to limit yield responses. Fields will be planted with [***] switchgrass between April and June 2007. In the 2nd and subsequent production years, N will be applied at [***] pounds/acre so as not to limit yield. If stands fail to establish in 2007 and 2008, the effected sites will be replanted in 2008 and 2009, respectively, and subsequently, the treatment applications and data collection schedule will be delayed for the appropriate period of time. Stand establishment success will be assessed in the fall of the 1st growing season before biomass harvest. Biomass will be harvested at the same time for all treatments in the fall of 2007 and by treatment schedule from 2008-11. Subsamples of the harvested biomass will be collected for forage quality analysis from 2008-09. Stand persistence will be assessed in the spring of 2009-11 with counts of tiller densities. The experiment will be analyzed as randomized complete block with repeated measures. Year (5), location (5), and replication ([***]) will be considered random factors and harvest frequency (2) a fixed factor. Full Information Enterprise Budgets detailing both variable and fixed production expenses will be developed for each treatment (system) for each farm location and year. Variable expenses include all cash expenses for seed, chemicals, fertilizer, custom services, hired labor, and interest on investment. Fixed expenses include depreciation, interest, taxes, and insurance on farm machinery, fences, and other capital items used in the production process. Breakeven price of harvested switchgrass will be computed to determine the price a producer would have to be paid in order to break-even. Sensitivity analysis will be conducted to determine how robust results are to changes in prices of inputs and yields. Objective 2. In the spring of 2007, field plots of [***] switchgrass will be established on three NOBLE farm sites (highly productive, moderately productive, and lowly productive) to evaluate biomass production responses to N fertilizer rates ([***], [***], [***], [***], [***], and [***] lbs/acre) and harvest frequency/time periods (a. once — at the end of the growing season; b. twice — at ‘boot’ stage and at the end of the growing season; and c. twice — during vegetative growth and at the end of the growing season) . The field plot trials will cover ~ [***] each and will be conducted through 2011. In March-April 2007, soils will be tested for for phosphorous, potassium, and pH and deficiencies will be corrected so as not to limit yield responses. Fields will be planted with [***] switchgrass between April and June 2007. If stands fail to establish in 2007 and 2008, the affected sites will be replanted in 2008 and 2009, respectively, and subsequently, the treatment applications and data collection schedule will be delayed for the appropriate period of time. Stand establishment success will be assessed in the fall of the 1st growing season before biomass harvest. Biomass will be harvested at the same time for all treatments in the fall of 2007 and by treatment schedule from 2008-11. Subsamples of the harvested biomass will be collected for forage quality analysis from 2008-09. Stand persistence will be assessed in the spring of 2009-11 with counts of tiller densities. The field plot trials will be arranged in split plots with repeated measures over years. Nitrogen rates will be whole plots and harvest frequency/time periods the subplots. Each trial will have [***] replications. Objective 3. In the spring of 2007, field plots of [***] switchgrass will be established on three NOBLE farm sites (highly productive, moderately productive, and lowly productive) to determine if biomass production responds to N, P, and K fertilization and to quantify rates of soil nutrient removal under annual biomass harvests . Treatments will include applications of N ([***] and [***] lbs/acre), P ([***] and [***] lbs/acre) and K ([***] and [***] lbs/acre). The field plot trials will cover ~ [***] each and will be conducted through 2011. Fields will be planted between April and June 2007. In the 2nd and subsequent production years, the N, P, and K treatments will be applied according to the treatment schedule. If stands fail to establish in 2007 and 2008, the effected sites will be replanted in 2008 and 2009, respectively, and subsequently, the treatment applications and data collection schedule will be delayed for the appropriate period of time. Stand establishment success will be assessed in the fall of the 1st growing season before biomass harvest. Biomass will be harvested at the same time for all treatments in the fall of 2007 and by treatment schedule from 2008-11. Subsamples of the harvested biomass will be collected for nutrient concentration analysis (N, P, K, Ca, and Mg) from 2008-09. Stand persistence will be assessed in the spring of 2009-11 with counts of tiller densities. The field plot trials will be arranged in split plots with repeated measures across years. Nitrogen fertilization rate will be the whole plot treatment factor in each trial. Phosphorous and K will be subplot treatments arranged in [***] x [***] factorial manner. Each trial will have [***] replications.

WORK TO BE UNDERTAKEN. See RESEARCH AND DEVELOPMENT PLAN (Attachment A to this SCHEDULE). Subject to the RESEARCH AND DEVELOPMENT PLAN, an overview of NOBLE work includes: Objective 1. In the spring of 2007, research will be initiated on four NOBLE cooperators’ farms and one NOBLE farm to determine biomass yields and production economics of switchgrass as a bioenergy crop under one and two harvest per year systems across southern Oklahoma. The five locations will span a 15 to 50 inch rainfall gradient: 1) far-west; 2) west; 3) central (NOBLE farm); 4) east; and 5) far-east. Two harvest frequencies will be evaluated: 1) cut once at the end of the growing season for biofuel purposes; 2) cut twice — ‘boot’ stage for forage and at the end of the growing season for biofuel purposes. Contracts will be established with cooperators to allow NOBLE to establish and produce switchgrass through 2011. Plot size will be [***] acres and will be replicated [***] times per treatment for a total of [***] acres of production at each location. In March-April 2007, soils will be tested for phosphorous, potassium, and pH and deficiencies will be corrected so as not to limit yield responses. Fields will be planted with [***] switchgrass between April and June 2007. In the 2nd and subsequent production years, N will be applied at [***] pounds/acre so as not to limit yield. If stands fail to establish in 2007 and 2008, the effected sites will be replanted in 2008 and 2009, respectively, and subsequently, the treatment applications and data collection schedule will be delayed for the appropriate period of time. Stand establishment success will be assessed in the fall of the 1st growing season before biomass harvest. Biomass will be harvested at the same time for all treatments in the fall of 2007 and by treatment schedule from 2008-11. Subsamples of the harvested biomass will be collected for forage quality analysis from 2008-09. Stand persistence will be assessed in the spring of 2009-11 with counts of tiller densities. The experiment will be analyzed as randomized complete block with repeated measures. Year (5), location (5), and replication ([***]) will be considered random factors and harvest frequency (2) a fixed factor. Full Information Enterprise Budgets detailing both variable and fixed production expenses will be developed for each treatment (system) for each farm location and year. Variable expenses include all cash expenses for seed, chemicals, fertilizer, custom services, hired labor, and interest on investment. Fixed expenses include depreciation, interest, taxes, and insurance on farm machinery, fences, and other capital items used in the production process. Breakeven price of harvested switchgrass will be computed to determine the price a producer would have to be paid in order to break-even. Sensitivity analysis will be conducted to determine how robust results are to changes in prices of inputs and yields. Objective 2. In the spring of 2007, field plots of [***] switchgrass will be established on three NOBLE farm sites (highly productive, moderately productive, and lowly productive) to evaluate biomass production responses to N fertilizer rates ([***], [***], [***], [***], [***], and [***] lbs/acre) and harvest frequency/time periods (a. once — at the end of the growing season; b. twice — at ‘boot’ stage and at the end of the growing season; and c. twice — during vegetative growth and at the end of the growing season) . The field plot trials will cover ~ [***] each and will be conducted through 2011. In March-April 2007, soils will be tested for for phosphorous, potassium, and pH and deficiencies will be corrected so as not to limit yield responses. Fields will be planted with [***] switchgrass between April and June 2007. If stands fail to establish in 2007 and 2008, the affected sites will be replanted in 2008 and 2009, respectively, and subsequently, the treatment applications and data collection schedule will be delayed for the appropriate period of time. Stand establishment success will be assessed in the fall of the 1st growing season before biomass harvest. Biomass will be harvested at the same time for all treatments in the fall of 2007 and by treatment schedule from 2008-11. Subsamples of the harvested biomass will be collected for forage quality analysis from 2008-09. Stand persistence will be assessed in the spring of 2009-11 with counts of tiller densities. The field plot trials will be arranged in split plots with repeated measures over years. Nitrogen rates will be whole plots and harvest frequency/time periods the subplots. Each trial will have [***] replications. Objective 3. In the spring of 2007, field plots of [***] switchgrass will be established on three NOBLE farm sites (highly productive, moderately productive, and lowly productive) to determine if biomass production responds to N, P, and K fertilization and to quantify rates of soil nutrient removal under annual biomass harvests . Treatments will include applications of N ([***] and [***] lbs/acre), P ([***] and [***] lbs/acre) and K ([***] and [***] lbs/acre). The field plot trials will cover ~ [***] each and will be conducted through 2011. Fields will be planted between April and June 2007. In the 2nd and subsequent production years, the N, P, and K treatments will be applied according to the treatment schedule. If stands fail to establish in 2007 and 2008, the effected sites will be replanted in 2008 and 2009, respectively, and subsequently, the treatment applications and data collection schedule will be delayed for the appropriate period of time. Stand establishment success will be assessed in the fall of the 1st growing season before biomass harvest. Biomass will be harvested at the same time for all treatments in the fall of 2007 and by treatment schedule from 2008-11. Subsamples of the harvested biomass will be collected for nutrient concentration analysis (N, P, K, Ca, and Mg) from 2008-09. Stand persistence will be assessed in the spring of 2009-11 with counts of tiller densities. The field plot trials will be arranged in split plots with repeated measures across years. Nitrogen fertilization rate will be the whole plot treatment factor in each trial. Phosphorous and K will be subplot treatments arranged in [***] x [***] factorial manner. Each trial will have [***] replications.