**EXHIBIT 10.42****CONTRIBUTION AGREEMENT****THIS AGREEMENT**, made and entered into as of the 1st day of January, 2008, by and between RENEWABLEPRODUCTS MARKETING GROUP, LLC (“RPMG”), and RED TRAIL ENERGY, LLC (“Red Trail”), a North Dakotalimited liability company, PO Box 11, Richardton, North Dakota 58652.     **WITNESSETH:**     **WHEREAS**, RPMG is a limited liability company formed for the purpose of marketing ethanol forits Members and others; and     **WHEREAS**, Red Trail produces ethanol products located at Richardton, North Dakota and isdesirous of becoming a Member of RPMG and RPMG is desirous of having Red Trail become a Member.     **NOW, THEREFORE**, in consideration of the mutual covenants and promises herein contained, theparties agree as follows:     **1. ****Membership**. As of January 1, 2008, Red Trail is hereby admitted as a Member ofRPMG, having an initial Membership Interest of 8.333%. RPMG agrees that Schedule A to the RPMGMember Control Agreement shall be revised as set forth in Exhibit A to this Agreement. RPMGacknowledges that the Members have approved the admission of Red Trail as required by the MemberControl Agreement between the Company and its Members.     **2. ****Consideration**. In consideration for its Membership in RPMG, Red Trail shall makethe following capital contribution: **a.** An initial contribution of $105,000, receipt of which isherebyacknowledged;  **b.** An additional $500,000 to be paid on a monthly basis in anamount equalto $0.01 minus RPMG operating expenses, multiplied by the total gallonsof ethanol production sold by RPMG for Red Trail during the month;  **c.** Red Trail may at any time prepay all or any part of theoutstandingbalance of its capital contribution;  **d.** The unpaid balance of the deferred capital contribution isdue and payable to RPMG irrespective of Red Trail’s continuation as a memberof, or using the marketing services of RPMG, and shall become immediately dueand payable if Red Trail ceases to be a member of RPMG for any reason,including termination of the Member Ethanol Fuel Marketing Agreement.     **3. ****Other Agreements**. As a condition to its admission as a Member of RPMG, RedTrail has executed and delivered to RPMG a Member Ethanol Fuel Marketing Agreement dated as ofJanuary 1, 2008 and acknowledges receipt of and agrees to be bound by the RPMG
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Amended and Restated Member Control Agreement and the RPMG Amended and Restated Bylaws andOperating Agreement. In the event it is determined that there is an inconsistency between thisAgreement and the aforesaid Agreements, the aforesaid Agreements shall control.     **4. ****Governing Law**. This Agreement and the rights of the parties hereunder will begoverned by, interpreted, and enforced in accordance with the laws of the State of Minnesota.     **5. ****Binding Effect**. This Agreement will be binding upon and inure to the benefit of theparties and their respective successors and assigns.     **6**. **Severability**. If any provision of this Agreement is held to be illegal, invalid,or unenforceable under the present or future laws effective during the term of this Agreement,such provision shall be fully severable; this Agreement shall be construed and enforced as if suchillegal, invalid, or unenforceable provision had never comprised a part of this Agreement; and theremaining provisions of this Agreement shall remain in full force and effect and shall not beaffected by the illegal, invalid, or unenforceable provision or by its severance from thisAgreement. Furthermore, in lieu of such illegal, invalid, or unenforceable provision, there shallbe added automatically as a part of this Agreement a provision as similar in terms to suchillegal, invalid, or unenforceable provision as may be possible and be legal, valid, andenforceable.     **7. ****Additional****Documents and Acts.** Red Trail agrees to execute and deliver suchadditional documents and instruments and to perform such additional acts as may be necessary orappropriate to effectuate, carry out and perform all of the terms, provisions, and conditions ofthis Agreement and the transactions contemplated hereby.     **8. ****No Third Party Beneficiary**. This Agreement is made solely and specifically amongand for the benefit of the parties hereto, and their respective successors and assigns, and noother person will have any right, interest, or claims hereunder or be entitled to any benefitsunder or on account of this Agreement as a third party beneficiary or otherwise.     **9**. **Notices**. Any notice to be given or to be served upon the Company or any partyhereto in connection with this Agreement must be in writing and will be deemed to have been givenand received when delivered to the address specified by the party to receive the notice. Suchnotices will be given to Red Trail at the address specified in the Company’s Required Records. RedTrail may, at any time by giving five (5) days’ prior written notice to the other Members and theCompany, designate any other address in substitution of the foregoing address to which such noticewill be given.     **IN WITNESS WHEREOF**, the parties hereto have hereunto set their hands the day and year firstabove written.           **RENEWABLE PRODUCTS**   RED TRAIL ENERGY, LLC  **MARKETING GROUP, LLC**                   By /s/ Randy Hahn   By /s/ Mick J. Miller             Its CEO   Its PRESIDENT & CEO             
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**SCHEDULE A****As of January 1, 2008**         **Name of Member** **Percentage Interest** **Voting Interest**Chippewa Valley Ethanol Co., LLLP  8.333%  8.333%Denco, LLC  8.333%  8.333%Heartland Corn Products  8.333%  8.333%Corn Plus  8.333%  8.333%Al-Corn Clean Fuel LP  8.333%  8.333%Central MN Ethanol Co-op  8.333%  8.333%Minnesota Energy  8.333%  8.333%KAAPA Ethanol, LLC  8.333%  8.333%Mid-Missouri Energy, LLC  8.333%  8.333%Golden Grain Energy, LLC  8.333%  8.333%Dakota Ethanol. LLC  8.333%  8.333%Red Trail Energy, LLC  8.333%  8.333%
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