Item 1.01 Entry Into a Material Definitive Agreement
On August 26, 2020, Highwater Ethanol, LLC (the "Company") and Nelson Baker
Biotech, Inc. ("Nelson Baker") executed an agreement (the "Construction
Agreement") for the installation of a system to produce 20MGY Hydrous USP Grade
Ethanol (the "Project") which is used in the sanitizer market. The Construction
Agreement provides for a fixed price which includes design, engineering and
construction management. Nelson Baker will issue monthly applications for
payment based on progress. Final payment is due upon final completion of the
work. Nelson Baker warrants construction, materials and workmanship to be free
from material defects for one year.
Highwater may suspend work for a period of not more than 60 days, subject to a
potential adjustment in price and contract time, and may terminate for cause
after notice and opportunity to cure. Nelson Baker may stop work or terminate if
Highwater suspends work for more than 60 days or if Highwater fails to make a
payment when due after notice and opportunity to cure. Disputes are subject to
mediation and binding arbitration.
Highwater expects that construction will commence before the end of this fiscal
year and the Project will be completed during the second fiscal quarter of 2021.
Item 9.01 Financial Statements and Exhibits
Exhibit No. Description
99.1 Agreement Between Highwater Ethanol, LLC and Nelson Baker Biotech,
**Confidential information redacted.
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