Document:

Exhibit 10.1

 

FIRST
AMENDMENT TO BLACKHAWK BIOFUELS, LLC

TOLL
PROCESSING AGREEMENT

 

THIS FIRST AMENDMENT TO BLACKHAWK BIOFUELS,
LLC TOLL PROCESSING AGREEMENT (this “Amendment”) is made and entered effective
the 30th day of June, 2009 by and between Blackhawk Biofuels, LLC, a Delaware
limited liability company (“Blackhawk Biofuels”) and REG Marketing &
Logistics Group, LLC, an Iowa limited liability company (“REG Marketing”).

 

RECITALS

 

A.                                    Blackhawk
Biofuels and REG Marketing entered into a Blackhawk Biofuels, LLC Toll
Processing Agreement effective June 12, 2009 (the “Agreement”).

 

B.                                    The Agreement
provides for REG Marketing to arrange for the purchase and delivery of animal
fats and other feedstocks to Blackhawk Biofuels for processing into biodiesel.

 

C.                                    Blackhawk
Biofuels, REG Marketing and Bunge North America, Inc., a New York
corporation (“Bunge”) have entered into a Feedstock Purchase and Sale
Agreement, pursuant to which REG Marketing engages Bunge to purchase supplies
of corn oil, animal fats and other products as feedstock for resale to REG
Marketing for biodiesel production at the Facility.

 

D.                                    Blackhawk
Biofuels and REG Marketing desire to amend the Toll Processing Agreement to
allow for Bunge to own the Feedstocks prior to Bunge’s resale of the Feedstock
to REG Marketing for biodiesel production at the Facility and otherwise store
the Feedstocks at the Facility.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the
mutual benefits and obligations herein provided and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Blackhawk Biofuels and REG Marketing agree as follows:

 

1.                                      Section 1(a) of the Agreement shall be amended to
include the following language at the end of the existing language:

 

Any Feedstocks purchased by Bunge North
America, Inc. (“Bunge”) pursuant to the terms of a Feedstock Purchase and
Sale Agreement dated June 30, 2009 (the “Feedstock Agreement”) by and
between Blackhawk Biofuels, REG Marketing and Bunge shall be included in
determining whether the Facility Commitment has been met.  Any purchase of Feedstocks by Bunge, however,
shall be governed exclusively by the terms of the Feedstock Agreement and such
purchases shall not be subject to the terms of this Agreement.

 

 

2.                                      Paragraph 11 of
the Agreement shall be deleted in its entirety and replaced with the following
language:

 

11.          Title

 

Except as otherwise provided herein, title to
the Feedstocks delivered by REG Marketing pursuant to this Agreement and title
to the contractual amount of corresponding Biodiesel and Co-products produced
from such Feedstocks shall at all times be and remain with REG Marketing.  Any Feedstocks delivered by REG Marketing
pursuant to the terms and conditions of the Feedstock Agreement, however, shall
at all times be and remain with Bunge until such time as title to such
Feedstocks passes to REG Marketing pursuant to the terms of the Feedstock
Agreement.

 

3.                                      Section 17
of the Agreement shall be amended to include the following language:

 

“Notwithstanding anything to the contrary set
forth herein, Blackhawk Biofuels and REG Marketing acknowledge and agree that
pursuant to the terms of the Feedstock Agreement, Bunge shall have title in the
Feedstocks purchased by Bunge pursuant to the terms of the Feedstock Agreement,
and Bunge shall have the right to file precautionary financing statements and
amendments and/or continuations thereto pursuant to the Uniform Commercial Code
to further evidence and memorialize its absolute ownership interest in the
Feedstocks.”

 

4.                                      Section 18
of the Agreement shall be deleted in its entirety and replaced with the
following language:

 

REG Marketing, on behalf of Blackhawk
Biofuels, shall be allowed to add additional Feedstocks owned by REG Marketing
as needed to meet the quality and yield requirements hereunder, so long as such
additional Feedstocks have cold flow characteristics that are capable of
meeting the cold flow specifications set out on the applicable Order or
Nomination, and the Biodiesel to be produced shall in any event meet the
specifications required hereunder, as modified by the Order or Nomination and
Acceptance applicable.  In such event,
REG Marketing shall off-set any costs for such additional Feedstocks against
the toll fees to be paid by REG Marketing pursuant to Section 4 hereof.  Pursuant to the
terms of the Feedstock Agreement, Blackhawk Biofuels shall allow Bunge to store
the Feedstocks at the Facility; provided, however, such Feedstocks shall be
segregated from any Feedstocks owned by REG Marketing pursuant to the terms of
this Agreement.

 

 

5.             Except
as may be otherwise expressly set forth herein, each and every term, condition
and provision of the Agreement shall remain in full force and effect, and are
hereby ratified, confirmed and approved by the parties hereto.

 

6.             This Amendment shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.

 

7.             This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together will constitute one and the same instrument, and may be executed and
delivered by facsimile signature or similar means, which shall be considered an
original.

 

8.             Any capitalized term not specifically defined in this
Amendment shall have the meaning set forth in the Agreement.

 

IN WITNESS WHEREOF, Blackhawk Biofuels and
REG Marketing have executed this Amendment as of the date and year first set
forth above.

 

	
  BLACKHAWK BIOFUELS, LLC, a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Ronald L. Mapes

  	
   

  
	
  Name:

  	
  Ronald L. Mapes

  	
   

  
	
  Title:

  	
  Chair

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  REG MARKETING & LOGISTICS GROUP, LLC, an Iowa limited
  liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Natalie Lischer

  	
   

  
	
  Name:

  	
  Natalie Lischer

  	
   

  
	
  Title:

  	
  Secretary/TreasurerExhibit 10.2

 

Confidential Treatment
Requested.  Confidential portions of this
document have been redacted and have been separately filed with the Commission.

 

BLACKHAWK BIOFUELS, LLC TOLL PROCESSING AGREEMENT

 

This Blackhawk Biofuels, LLC Toll Processing Agreement
(the “Agreement”) is made and entered into effective July 1, 2009, by and
between Blackhawk Biofuels, LLC a limited liability company organized and
existing under the laws of the state of Delaware, with offices at 22 South
Chicago Avenue, Freeport, Illinois 61032 (“Blackhawk Biofuels”), and REG
Marketing & Logistics Group, LLC, an Iowa limited liability company (“REG
Marketing”), of 416 S. Bell Avenue, PO Box 888, Ames, Iowa 50010
(each a “Party,” and collectively the “Parties”).

 

Recitals

 

A.                                   Blackhawk Biofuels is in the business of
manufacturing and processing biodiesel from feedstock at its biodiesel
processing facility located at Danville, IL (the “Facility”).

 

B.                                     REG Marketing desires to arrange for the
purchase and delivery of animal fats and other feedstocks (as specified by the
provisions of Section 7 hereafter, herein “Feedstocks”) to Blackhawk
Biofuels for processing into biodiesel meeting the specifications set out in Section 8
hereafter (herein “Biodiesel”) and Crude Glycerin, Fatty Acids and Soapstock (“Co-products”)
pursuant to a toll processing arrangement. 
Blackhawk Biofuels desires that REG Marketing arrange for the delivery
of Feedstocks for processing at the Facility.

 

The Agreement

 

In consideration of the mutual benefits and obligations
herein provided and other good and valuable consideration, Blackhawk Biofuels
and REG Marketing agree as follows:

 

1.                                       Offers to Deliver Feedstocks for
Processing.  REG Marketing may offer to deliver Feedstocks
to Blackhawk Biofuels’s Facility at Danville, IL, during the term of this
Agreement.

 

(a)                                  Orders within Facility Commitment. 
REG Marketing shall order the processing of 11.0 million pounds of
Feedstocks at the Facility (“Facility Commitment”).  Any such order shall set out the type and
quantity of Feedstocks, and the Production Week for which such Feedstocks are
intended for processing (“Order”).  If
such Order is timely made, then unless otherwise agreed by the Parties REG
Marketing shall deliver the Feedstocks to Blackhawk Biofuels in time for
production of the Biodiesel, Blackhawk Biofuels shall process the Feedstocks
and test and certify the Biodiesel as meeting the agreed upon specifications
under the applicable Order during such Production Week, and REG Marketing shall
arrange to pick up the resulting Biodiesel during the two weeks immediately
following such Production Week. 
Blackhawk Biofuels agrees to provide written acknowledgment of all
Orders placed by REG Marketing.  For
purposes of this Agreement, a “Production Week” shall mean a calendar week
beginning at 8:00 a.m. on Monday and ending at 7:59 a.m. on the
following Monday, with weeks designated for pick up of Biodiesel measured in
similar fashion.

 

 

As an example, for the Production Week commencing January 19,
2009, REG Marketing would need to have delivered its Order for such Production
Week on or before 5:00 p.m. on Monday, January 5, 2009.  If such Order has been timely delivered to
Blackhawk Biofuels, REG Marketing would then deliver in the Feedstocks required
for such Production Week both before and during the production week.  Blackhawk Biofuels would then have the
Production Week of January 19 through January 26, 2009, to complete
production, test and certify the Biodiesel meets the agreed upon specifications
under the applicable Order.  REG
Marketing would then have from January 26 through 7:59 a.m. on February 9,
2009, to pick up the Biodiesel produced for such Production Week.  REG Marketing shall develop a sample “Order/Nomination”
form to be used by the Parties, which shall be attached as Exhibit A
hereto.

 

(b)                                 Offers in Excess of the Facility
Commitment.  REG Marketing may offer to deliver additional
Feedstocks beyond the Facility Commitment, subject to Blackhawk Biofuels’s
acceptance.  Any such offer (“Nomination”)
shall set out the type and quantity of Feedstocks, the Production Week for
which such Feedstocks are intended for production, and advise of the time
period during which Blackhawk Biofuels shall be required to communicate
Blackhawk Biofuels’s acceptance back to REG Marketing (“Offer Period”).  The parties agree that such Offer Period will
not expire prior to 12:00 o’clock noon, local time at the Facility, on the
business day following that day during which the Nomination is delivered, and
provided further that (unless waived by Blackhawk Biofuels) a Nomination shall
not propose a Feedstocks delivery schedule with first delivery date less than
seven (7) calendar days after the end of the Offer Period.  If a Nomination is accepted by Blackhawk
Biofuels (as set out hereafter), then (unless otherwise agreed by the Parties)
REG Marketing agrees to deliver the Feedstocks to Blackhawk Biofuels pursuant
to the terms of the Nomination prior to such Production Week to utilize in the
production of the Biodiesel, Blackhawk Biofuels shall during such Production
Week process the Feedstocks and test and certify the Biodiesel as meeting the
agreed upon specifications under the applicable Nomination, and REG Marketing
shall arrange to pick up the resulting Biodiesel during the two weeks
immediately following such Production Week. 
The sample “Order/Nomination” form to be used by the Parties is attached
as Exhibit A hereto.

 

2.                                       Agreement to Process Orders;
Consideration of Nominations.

 

(a)                                  Orders within Facility Commitment. 
Blackhawk Biofuels agrees to process Feedstocks for all Orders received
totaling up to 2.75 million pounds per Production Week, such processing to be
within the time frame as set out in Section 1(a) above (unless
otherwise agreed by the Parties). 
Blackhawk and REG Marketing agree that any shortfall in biodiesel
production or shipments due in the previous Agreement dated June 12th,
2009 may be made up under this Agreement without penalties.

 

2

 

*** Confidential material redacted and filed
separately with the Commission.

 

(b)                                 Nominations in Excess of Facility
Commitment.  In addition, should REG Marketing offer to
deliver Feedstocks in excess of such Facility Commitment, Blackhawk Biofuels
will consider any such Nomination received, and shall have the right (but not
any obligation) to accept Nominations received from REG Marketing by notice
given during the Offer Period.  If
Blackhawk Biofuels gives timely acceptance of a Nomination (pursuant to the
provisions set out in this Agreement, herein an “Acceptance”), then Blackhawk
Biofuels agrees to process Feedstocks received pursuant to the terms of the
Nomination (and such other applicable provisions as set out herein).

 

3.                                       Manner of Extending Order, Nominations,
Acceptances.  Notwithstanding any provisions of Section 26(a) to
the contrary, the Parties may submit Orders, Nominations and Acceptances by
telephone or email, provided that any Order, Nomination or Acceptance submitted
by telephone must be followed by timely confirmation by email.

 

4.                                       Toll Fees and Payment. 
Blackhawk Biofuels shall be paid a toll fee of *** for every gallon of
Biodiesel at standard temperature and pressure delivered to REG Marketing,
produced at the Facility from the Feedstocks delivered by REG Marketing for all
volumes shipped up to 2,500,000 gallons in a calendar month.  Blackhawk Biofuels shall be paid a toll fee
of *** for every gallon of Biodiesel at standard temperature and pressure
delivered to REG Marketing, produced at the Facility from the Feedstocks
delivered by REG Marketing for all volumes shipped in excess of 2,500,000
gallons in a calendar month.  Payment
shall be made as follows:

 

(a)                                  The toll Fee under the terms of such
Orders or Nominations by wired funds to Blackhawk Biofuels on the first
business day following the 15th for Biodiesel delivered to REG Marketing from the 1st to the 15th of the month and on the first business
day following the last day of each month for Biodiesel delivered to REG
Marketing on the 16th to the last day of the month. 
Delivered to REG Marketing shall mean Biodiesel meeting specifications
loaded per shipping instructions FOB Danville, IL.

 

5.                                       Co-Products. 
REG Marketing shall also be entitled to receive at no additional cost,
all glycerin and Fatty Acid produced as a result of the processing of the
Feedstocks.

 

6.                                       Methanol and Catalyst. 
REG Marketing shall be responsible for the purchase and delivery of
methanol and catalyst to the Facility. 
The maximum allowed usage of methanol shall be *** gal of methanol
per gallon of biodiesel.  The maximum
allowed usage of catalyst shall be *** lbs per gallon of biodiesel.  Blackhawk Biofuels will reimburse REG
Marketing for usage of methanol and catalyst above the maximums.  The reimbursement will be paid for overusage
at the average price of the chemicals multiplied by the overusage amount based
on the biodiesel produced on a monthly basis. 
REG Marketing will invoice Blackhawk Biofuels within the first week of
the following month.  Payment terms will
be 7 days from receipt of invoice from REG Marketing.  If the actual positive or negative usage
variance performance is greater than 10% from the values given above, the
parties will use data gathered while producing under 

 

3

 

steady state conditions
and adjust the maximum allowed usages with approval to not be unreasonably
withheld, conditioned or delayed by either party.  Any changes will be contained in an addendum
to this Agreement.

 

7.                                       Maximum Feedstock Usage and Overusage. 
In consideration of the Toll Fee and handling of co-products agreed
upon, Blackhawk Biofuels agrees the Maximum Feedstock Usage(MFU) per Pound of
Delivered Biodiesel shall be as defined in Exhibit B for each Feedstock
Type.

 

For feedstocks where a MFU value is clearly identified
and not calculated, the actual overuse, if any, will be calculated as follows:

 

Overusage based on identified MCU = A – ( B x MFU)

 

	
  Where 

  	
  A = Actual pounds of
  Feedstock delivered from aggregate BOL’s

  
	
   

  	
   

  
	
   

  	
  B = Biodiesel produced
  from Feedstock in gallons at standard conditions

  
	
   

  	
   

  
	
   

  	
  MCU = defined value for
  feedstock type

  

 

For higher FFA feedstocks or blends of feedstocks that
do not have an identified MFU and require the calculation, a daily flow
proportioned representative composite sample shall be tested and the resulting
%FFA will be used in the calculation. 
for MFU for the resulting production volume.  For feedstocks where a MFU value is calculated
and not clearly identified, the actual overuse, if any, will be calculated as
follows:

 

Overusage for High FFA and Blends based on MCU
calculation = C — (B x MFU)

 

	
  Where 

  	
  C = Actual pounds of
  Feedstock delivered from aggregate BOL’s

  
	
   

  	
   

  
	
   

  	
  B = Biodiesel produced
  from Feedstock in gallons at standard conditions

  
	
   

  	
   

  
	
   

  	
  MFU = “Exhibit B
  calculation *1” using daily flow proportioned representative composite sample

  

 

The reimbursement will be paid for overusage at the
average price of the feedstock multiplied by the overusage amount based on the
biodiesel produced on a monthly basis. 
REG Marketing will invoice Blackhawk Biofuels within the first week of
the following month.  Payment terms will
be 7 days from receipt of invoice from REG Marketing.  If the actual positive or negative usage
variance performance is greater than 2% from the values given or calculated in Exhibit B,
the parties will use data gathered while producing under steady state
conditions and adjust the defined MFU or formula “*1” with approval to not be
unreasonably withheld, conditioned or delayed by either party.  Any changes will be contained in an addendum
to this Agreement.

 

8.                                       Feedstocks.  The
Feedstocks to be delivered to the Facility pursuant to this Agreement shall
comply with the specifications set forth on Exhibit B attached hereto or
the specific purchase order, whichever is the more restrictive
specification.  For Example, if the

 

4

 

tallow
specification for FFA in Exhibit B was <4 and the purchase order
defined FFA as less than <2, then <2 shall be the requirement.  Prior to accepting deliveries of Feedstocks,
Blackhawk Biofuels shall have the right at its expense to inspect and test the
tendered Feedstocks to determine if it meets the specifications required under
this Agreement, and if any such Feedstocks does not meet the required
specifications then Blackhawk Biofuels shall have the right to reject such
Feedstocks and require REG Marketing, at its cost, to replace the same with
Feedstocks that meets the required specifications.  Should REG Marketing propose any other type
of Feedstocks other than identified on Exhibit B, the Parties shall agree
upon the written specifications and MFU applicable to such additional
feedstock, and approve and attach such specifications and MFU as an addendum to
Exhibit B with approval to not be unreasonably withheld, conditioned or
delayed by either party.

 

9.             Biodiesel.  The Biodiesel to be produced pursuant to this
Agreement shall comply with the specifications set forth on Exhibit C
attached hereto.  At REG Marketing’s request,
two (2) - one (1) litre samples of the Biodiesel to be delivered to
REG Marketing by Blackhawk Biofuels shall be made available for testing at REG
Marketing’s cost, prior to REG Marketing picking up such Biodiesel.  Should inspection and testing determine that
any Biodiesel does not meet the required specifications (whether determined
before or after such Biodiesel has been picked up by REG Marketing, and
including after delivery to REG Marketing’s customers), REG Marketing shall
have the right to reject such Biodiesel, and require Blackhawk Biofuels, at its
cost, to replace the same with Biodiesel that meets the required
specifications.

 

10.           Term.  The term of this Agreement shall be until July 31th,
2009 and commence upon its signature by the Parties.

 

11.           Title.  Title to the Feedstocks delivered by REG
Marketing pursuant to this Agreement and title to the contractual amount of
corresponding Biodiesel and Co-products produced from such Feedstocks shall at
all times be and remain with REG Marketing.

 

12.           Risk of Loss; Insurance.  Risk of loss to the Feedstocks and the
Biodiesel and Co- Products produced therefrom shall at all times be borne by
REG Marketing, and REG Marketing will maintain such property insurance on the
Feedstocks and the Biodiesel produced therefrom as REG Marketing shall
determine, in its sole discretion.

 

Blackhawk Biofuels and REG Marketing shall each, at
its own cost and expense, obtain and maintain, during the term of this
Agreement, comprehensive general liability insurance, in minimum amounts of
Five Million Dollars ($5,000,000) per occurrence for damage, injury and/or
death to persons, and One Million Dollars ($1,000,000) per occurrence for
damage and/or injury to property and Worker’s Compensation Insurance as
required by law.  Such coverage shall be
on a date of occurrence form, and be provided by an insurance company
reasonably satisfactory to the other Party. 
Blackhawk Biofuels and REG Marketing shall each provide the other with
proof of such insurance coverage prior to any Feedstocks being delivered, such
insurance naming the other Party as an additional insured, and providing that
the coverage represented thereby shall not be canceled nor modified unless at
least thirty (30) days prior written notice has been given to the additional
insured.

 

5

 

13.           Inventory Reports.  Blackhawk Biofuels will provide REG Marketing
with daily reports showing the receipt, usage and inventory of Feedstocks,
methanol and catalyst, and shipments, production and inventory of Biodiesel and
Co-products produced.

 

14.           Production Costs.  Other than for the cost of the Feedstocks,
methanol, and catalyst purchased and delivered by REG Marketing, Blackhawk
Biofuels shall be responsible for all costs of producing the Biodiesel required
under this Agreement, including without limitation all labor costs and the cost
of utilities, chemicals other than methanol and catalyst and other consumables
used in such production.

 

15.           Testing.  Blackhawk Biofuels shall be responsible for
the cost of testing to fully certify the Biodiesel meets the specifications
identified in the Order or Nomination. 
All sampling and testing shall be in conformance with BQ-9000 rules and
regulations.

 

16.           Freight Costs.  REG Marketing will bear the cost of all
freight charges for the Feedstocks, methanol, and catalyst purchased by REG
Marketing, and Biodiesel and Co-Products to be produced therefrom, pursuant to
this Agreement.

 

17.           Protection of REG Marketing’s
Title.  In order to better evidence
REG Marketing’s ownership of the Feedstocks and the Biodiesel produced
therefrom, Blackhawk Biofuels hereby authorizes REG Marketing on its behalf, at
any time and from time to time to file protective financing statements in any
Uniform Commercial Code jurisdiction, which may include without limitation any
initial financing statements and amendments thereto that (i) describe the
Feedstocks, and the Biodiesel that is the subject of this Agreement, and (ii) contain
any other information required or appropriate to be included pursuant to the
Uniform Commercial Code of the state where filed, including that the
organizational identification number of Blackhawk Biofuels is 20-2760722.  Blackhawk Biofuels agrees to furnish any such
information to REG Marketing promptly upon request.  Blackhawk Biofuels will not purport to
pledge, mortgage or create, or suffer to exist a security interest in the
Feedstocks and the Biodiesel that is produced therefrom, in favor of any third
party, and Blackhawk Biofuels, upon the request of REG Marketing or in response
to any inquiry that may be made, will inform any lender, lessor or other third
party that has or may have a lien or security interest or any other interest in
property of Blackhawk Biofuels that REG Marketing is the owner of the
Feedstocks and the Biodiesel that is the subject of this Agreement.

 

18.           Product Segregation.  Blackhawk Biofuels shall be allowed to add
additional Feedstocks owned by Blackhawk Biofuels as needed to meet the quality
and yield requirements hereunder, so long as such additional Feedstocks have
cold flow characteristics that are capable of meeting the cold flow
specifications set out on the applicable Order or Nomination, and the Biodiesel
to be produced shall in any event meet the specifications required hereunder,
as modified by the Order or Nomination and Acceptance applicable.

 

19.           Failure to Process.  If for any reason other than REG Marketing’s
failure to deliver Feedstocks, methanol, and catalyst as required under this
Agreement (and other than a matter covered by the force majeure provisions of
this Agreement) Blackhawk Biofuels fails to process the Feedstocks in to the
certified Biodiesel within the time frame contemplated by this Agreement,
Blackhawk Biofuels will pay to REG Marketing the amount determined by first

 

6

 

dividing the
number of pounds of Feedstocks delivered to Blackhawk Biofuels by the Maximum
Feedstock Usage per gallon yield under Section 7 and converting to gallons
to determine the gallons of Biodiesel which should have been processed (“Required
Gallons”); second, subtracting the actual gallons of Biodiesel received by REG
Marketing from the Required Gallons to determine the number of gallons which
Blackhawk Biofuels failed to process (“Biodiesel Shortage”); and third,
multiply the Biodiesel Shortage by REG Marketing’s average market price per
gallon of Biodiesel delivered by Blackhawk Biofuels to REG Marketing up to such
time of computation (or if none delivered another reasonable method of
determining the market value of Biodiesel FOB Danville as may be agreed by the
Parties, or otherwise determined if the Parties can not so agree).

 

20.           Facility Shutdowns.  Blackhawk Biofuels agrees to notify REG
Marketing of any scheduled shutdowns a minimum of thirty (30) days in
advance.  In the event there are any
Facility shutdowns due to unscheduled power or mechanical problems which will
affect receiving or shipping schedules or are anticipated to continue for
twenty-four (24) hours or more Blackhawk Biofuels will notify REG
Marketing as soon as possible.

 

21.           Tax Credits; Blending, Shipping &
Loading.  Blackhawk Biofuels will, at
the request of REG Marketing, blend the Biodiesel with petroleum diesel
(supplied by Blackhawk Biofuels at its cost) to create B99.9 biodiesel at no
additional charge to REG Marketing.  Any
excise tax or income tax credit or refund, including any blender’s credit or
CCC credit or refund (“Tax Credits”) relating to the Biodiesel delivered to REG
Marketing will be for the account of REG Marketing, and shall be submitted (as
applicable) to the United States Internal Revenue Service (“IRS”) or other
appropriate entity by Blackhawk Biofuels, unless otherwise requested by REG
Marketing Blackhawk Biofuels will not claim any Tax Credits relating to the
Biodiesel delivered to REG Marketing without the written consent of REG
Marketing.

 

In addition, Blackhawk Biofuels shall fulfill the
requests regarding additives and load temperature as set out on the “Shipping/Loadout
Request” form supplied by REG Marketing and complete the loadout information
for each load of Biodiesel shipped, all as set out on the attached as Exhibit D
hereto.

 

22.           RINs and Biodiesel Certificates.  Blackhawk Biofuels and REG Marketing shall
cooperate with each other to generate Renewable Identification Numbers
(RINs) for the gallons of Biodiesel produced pursuant to this Agreement,
with such RINs to be the property of REG Marketing.  Blackhawk Biofuels and REG Marketing shall
also cooperate with each other to issue biodiesel certificates for the
Biodiesel produced pursuant to this Agreement, which certificates shall be
suitable for REG Marketing’s use in collecting the $1.00 per gallon blender’s
tax credit.  For purposes of clarity, all
gallons for these purposes shall be calculated on a temperature corrected basis
(at 60° F).

 

23.           Force Majeure.  Neither Party hereto shall be liable for any
delay arising from circumstances beyond its control including acts of God, riot
or civil commotion, industrial dispute, fire, flood, drought, act of
government, terrorist acts, war, or sabotage (except failures or delays
resulting from a lack of a Party’s funds), provided that the Party seeking to
be excused shall make every reasonable effort to minimize the delay resulting
therefrom and shall give prompt written notice of the force majeure event to
the other Party.  The obligations of the
Party

 

7

 

giving notice, so
far as they are affected by the force majeure event, will be suspended during,
but not longer than, the continuance of the force majeure event.  The affected Party must act with commercially
reasonable diligence to resume performance and notify the other Party that the
force majeure event no longer affects its ability to perform under the
Agreement.

 

24.                                 Independent Contractor. 
Blackhawk Biofuels is acting hereunder and its services are rendered to
REG Marketing solely as an independent contractor.  REG Marketing is not authorized and shall not
contract any obligations in the name of Blackhawk Biofuels as a result of this
Agreement (the Parties understanding that REG Marketing may have such authority
as may arise from other contracts entered in to by the Parties, and including
that Management and Operational Services Agreement dated August 22, 2006 (“MOSA”)).  Blackhawk Biofuels accepts full and exclusive
liability for the payment of any and all contributions or taxes for
unemployment and workers’ compensation insurance, old age retirement benefits,
pensions and annuities now or hereafter imposed by any federal or state
governmental authority which are measured by wages, salaries or other
remuneration paid to persons, and holds harmless REG Marketing from any such
liability.  Blackhawk Biofuels agrees
that in performing its duties contemplated by this Agreement it shall comply
with all applicable federal and state laws, orders and regulations, and, to its
knowledge, represents and warrants that the Facilities are in compliance with
existing environmental laws and regulations and OSHA standards which may apply
to the activities to be performed by Blackhawk Biofuels hereunder.

 

25.                                 Confidentiality.

 

(a)                                  “Confidential Information” of Blackhawk
Biofuels and REG Marketing includes the terms of this Agreement, the Feedstocks
composition, the biodiesel specifications, all business information of
Blackhawk Biofuels and REG Marketing, including, but not limited to, their
respective pricing, supplier lists, quantities of supplies purchased, all
processing and manufacturing information of Blackhawk Biofuels and REG
Marketing, all processes and information used in the processing of Feedstocks
into Biodiesel, and all other confidential or proprietary information of
Blackhawk Biofuels and REG Marketing. 
All “Confidential Information” shall remain the sole property of the
original owner of that information.

 

(b)                                 Blackhawk Biofuels and REG Marketing
agree that (except as necessary for REG Marketing to meet its obligations under
the MOSA) they shall not for any purpose use or disclose to any third party any
Confidential Information not owned by it. 
Such confidentiality obligations shall survive the expiration or earlier
termination of this Agreement.

 

26.                                 Default.  Each Party
will be entitled to all damages (including costs and reasonable attorney fees
incurred in enforcement of such Party’s rights hereunder) and other rights and
remedies available at law or in equity, in addition to any other remedies as
may be provided in this Agreement, upon the default or other failure to perform
of the other Party; provided, however, that before taking action to enforce
such breach or terminating this Agreement the Party claiming default or failure
to perform shall first provide the defaulting Party

 

8

 

with written
notice detailing the circumstances of its failure to meet its obligations
hereunder and an opportunity to cure such failure within ten (10) days of
such notice.

 

27.                                 Miscellaneous.

 

(a)                                  Notices.  Any notice
(including Nominations and Acceptances) required or permitted to be given
pursuant to this Agreement is validly given if in writing and: (i) personally
delivered; (ii) sent by electronic facsimile transmission or other means
of electronic communication capable of producing a printed copy and a
confirmation of delivery; or (iii) sent by prepaid registered mail or
recognized overnight carrier, addressed to the applicable party at its address
indicated below or to such other address as any party may specify by notice in
writing to the other.   Any notice
personally delivered on a business day will be deemed conclusively to have been
effectively given on the date notice was delivered.  Any notice given by facsimile or other means
of electronic communication will be deemed conclusively to have been given on
the date specified on the confirmation of such transmission.  Any notice sent by prepaid registered mail
will be deemed conclusively to have been effectively given when actually
received.  Notices shall be addressed as
follows:

 

	
  If to REG Marketing:

  	
  416 S. Bell Avenue, PO
  Box 888

  
	
   

  	
  Ames, IA 50010

  
	
   

  	
  Attn: Gary Haer

  
	
   

  	
  Fax:
  (515) 239-8029

  
	
   

  	
   

  
	
  If to Blackhawk
  Biofuels:

  	
  210 West Spring Street

  
	
   

  	
  Freeport, Illinois
  61032

  
	
   

  	
  Attn: Ron Mapes

  
	
   

  	
  Fax:
  (815) 235-4727

  

 

Any party may change the address to which notices are
to be sent to it by giving written notice of such change of address to the
other parties in the manner herein provided for giving notice.  Any such notice, demand, request or other
communication shall be deemed given when mailed or delivered as aforesaid.

 

(b)                                 Cumulative Remedies. 
The rights and remedies provided to Blackhawk Biofuels and REG Marketing
in this Agreement, or otherwise available at law or in equity, shall be
cumulative and may be exercised concurrently or successively.

 

(c)                                  Governing Law/Choice of Forum. 
This Agreement shall be deemed made and entered unto in the State of
Iowa and shall be governed and construed under and in accordance with the laws
of the State of Iowa without resort to said state’s conflict of laws rules.  The U.S. District Court for the Southern
District of Iowa, or if such court lacks jurisdiction, the Iowa District Court
for Story County, Iowa, shall be the venue and exclusive proper forum in which
to adjudicate any case or controversy arising either, directly or indirectly,
under or in connection with this Agreement. 
The Parties further agree that, in the event of litigation arising out
of

 

9

 

or in connection with these matters, they will not contest or challenge
the jurisdiction or venue of these courts.

 

(d)                                 Amendments.  This
Agreement may not be modified or amended unless a written amendment to this
Agreement is executed by REG Marketing and Blackhawk Biofuels.

 

(e)                                  Severability. 
If any provision of this Agreement may be construed in two ways, one of
which would render the provision illegal or otherwise voidable and
unenforceable and the other of which would render the provision valid and
enforceable, such provision shall have the meaning which renders it valid and
enforceable.  The language of all
provisions of this Agreement shall be construed according to its fair meaning
and not strictly against REG Marketing or Blackhawk Biofuels.  It is the intention of the Parties that the
provisions of this Agreement be enforced to the fullest extent.  In the event that any court shall determine
that any provision of this Agreement is unenforceable as written, the Parties
agree that the provision shall be amended so that it is severable and they
shall be interpreted and enforced as if all completely invalid or unenforceable
provisions were not contained in this Agreement.  Partially valid and enforceable provisions
shall be enforced to the extent that they are partially valid and enforceable.

 

(f)                                    Captions.  Section captions
are used only for convenience and are in no way to be construed as a part of
this Agreement or as a limitation of the scope of the particular sections to
which they refer.  Words of any gender
used in this Agreement shall include any other gender, and words in the
singular shall include the plural where the context requires.

 

(g)                                 Assignment.  Neither Party
may assign any of its rights in or delegate any of its duties under this
Agreement without the prior written consent of the other Party.   Notwithstanding the foregoing, a Party (“Assignor”)
may without the need for consent from the other Party assign any or all of its
rights, duties and obligations under this Agreement to another entity, or to
such Party’s affiliate or successor (collectively herein “Assignee”), if such
Assignee expressly assumes all obligations not otherwise remaining with
Assignor hereunder, and Assignor nonetheless remains responsible hereunder.

 

(h)                                 Interpretation. 
This Agreement has been prepared after extensive negotiation between the
Parties hereto, and if any ambiguity is contained herein, then in resolving
such ambiguity, no weight shall be given in favor of or against either Party
solely on account of its drafting this Agreement.

 

(i)                                     Entire Agreement. 
Time is of the essence of this Agreement.  This Agreement together with the Exhibits
referenced herein constitute the entire agreement by and between the Parties
and all prior written and verbal agreements, proposals, representations and
other communications between the Parties regarding this tolling arrangement are
superseded.

 

10

 

*** Confidential material redacted and filed
separately with the Commission.

 

(j)                                     Counterparts. 
This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which together will constitute
one and the same instrument, and may be executed and delivered by facsimile
signature or similar means, which shall be considered an original.

 

(k)                                  Most Favored Terms. 
Blackhawk Biofuels represents and warrants as of the date hereof and
covenants and agrees from and after the date hereof that none of the provisions
offered to any other person or entity is or will be more favorable to such person or entity than those offered under this Agreement, and, if they are or become more favorable to any other person or entity during the term of this Agreement or
any continuation or extension thereof, Blackhawk Biofuels shall give  written notice thereof to REG Marketing, and REG Marketing shall
have the option (which option must be exercised by written notice to Blackhawk
Biofuels with ten (10) business days after notice thereof) to amend this Agreement to include any such more favorable terms.  If such option is exercised, Blackhawk
Biofuels and REG Marketing shall execute an appropriate written amendment to this Agreement.

 

(l)                                     MOSA Fee.  In view of the fact that this Agreement is to process Feedstocks owned by REG Marketing for the benefit of REG Marketing, REG Marketing agrees  that Blackhawk
Biofuels shall not be required to pay the variable fee of $***/gal under the MOSA for the volume of Biodiesel processed for and delivered to REG Marketing under this Agreement.  Blackhawk BioFuels shall continue to pay the Fixed fee of $*** per month as outlined in the MOSA.

 

IN WITNESS WHEREOF,
Blackhawk Biofuels and REG Marketing have executed this Agreement as of the date first shown above.

 

	
  BLACKHAWK
  BIOFUELS, LLC

  	
   

  	
  REG
  MARKETING &  LOGISTICS GROUP, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Ronald L. Mapes

  	
   

  	
  By:

  	
  /s/
  Natalie Lischer

  
	
  Name

  	
  Ronald
  L. Mapes

  	
   

  	
  Name

  	
  Natalie
  Lischer

  
	
  Title

  	
  Chair

  	
   

  	
  Title

  	
  Secretary/Treasurer

  

 

 

Exhibit A

 

(Form of Order/Nomination)

 

	
  

  	
  Exhibit A

  

 

	
  013

  	
   ORDER NUMBER

  	
  or

  	
                                  NOMINATION
  NUMBER

  
	
   

  	
   

  	
   

  
	
  For
  Production Week beginning:

  	
   

  	
   

  	
  6/29/09

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date
  Sent to Blackhawk BioFuels, LLC:

  	
   

  	
   

  	
  7/1/09

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date
  Reviewed by Blackhawk BioFuels, LLC:

  	
   

  	
   

  	
   /  /  

  	
   

  
	
   

  	
   

  	
   

  
	
  Blackhawk
  BioFuels, LLC’s Action: (circle)

  	
   

  	
  ACCEPT

  	
  or

  	
  REJECT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date
  Accepted/Rejected by Blackhawk BioFuels, LLC:

  	
   

  	
   

  	
   /  /  

  	
   

  
								

 

	
   

  	
  x

  	
  REG
  – 9000 ASTM

  	
   

  
	
  Product
  Specification

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  REG
  – 9000 EN

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  x

  	
  Cloud

  	
  10

  	
  °C

  	
   

  
	
  Cold
  Flow Specification

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  CFPP

  	
   

  	
  °C

  	
   

  

 

	
  FEEDSTOCK TYPE

  	
   

  	
  Lbs
  ORDERED

  	
   

  	
  Contr. Yield

  	
   

  	
  Contr. Gallons

  
	
  Animal
  Fats

  	
   

  	
  2,750,000

  	
   

  	
  SEC #7

  	
   

  	
  SEC #7

  
	
  TOTAL

  	
   

  	
  2,750,000

  	
   

  	
   

  	
   

  	
   

  

 

	
  Gary
  Haer

  	
  Date

  	
   7/1/09

  	
   

  	
  Date

  
	
  REG
  Marketing & Logistics Group, LLC.

  	
   

  	
  Blackhawk
  BioFuels, LLC.

  

 

12

 

	
  

  	
  Exhibit A

  

 

	
  014

  	
   ORDER NUMBER

  	
  or

  	
                                  NOMINATION
  NUMBER

  
	
   

  	
   

  	
   

  
	
  For
  Production Week beginning:

  	
   

  	
   

  	
  7/6/09

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date
  Sent to Blackhawk BioFuels, LLC:

  	
   

  	
   

  	
  7/1/09

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date
  Reviewed by Blackhawk BioFuels, LLC:

  	
   

  	
   

  	
   /  /  

  	
   

  
	
   

  	
   

  	
   

  
	
  Blackhawk
  BioFuels, LLC’s Action: (circle)

  	
   

  	
  ACCEPT

  	
  or

  	
  REJECT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date
  Accepted/Rejected by Blackhawk BioFuels, LLC:

  	
   

  	
   

  	
   /  /  

  	
   

  
								

 

	
   

  	
  x

  	
  REG
  – 9000 ASTM

  	
   

  
	
  Product
  Specification

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  REG
  – 9000 EN

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  x

  	
  Cloud

  	
  10

  	
  °C

  	
   

  
	
  Cold
  Flow Specification

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  CFPP

  	
   

  	
  °C

  	
   

  

 

	
  FEEDSTOCK TYPE

  	
   

  	
  Lbs
  ORDERED

  	
   

  	
  Contr. Yield

  	
   

  	
  Contr. Gallons

  
	
  Animal
  Fats

  	
   

  	
  2,750,000

  	
   

  	
  SEC #7

  	
   

  	
  SEC #7

  
	
  TOTAL

  	
   

  	
  2,750,000

  	
   

  	
   

  	
   

  	
   

  

 

	
  Gary
  Haer

  	
  Date

  	
   7/1/09

  	
   

  	
  Date

  
	
  REG
  Marketing & Logistics Group, LLC.

  	
   

  	
  Blackhawk
  BioFuels, LLC.

  

 

13

 

	
  

  	
  Exhibit A

  

 

	
  015

  	
   ORDER NUMBER

  	
  or

  	
                                  NOMINATION
  NUMBER

  
	
   

  	
   

  	
   

  
	
  For
  Production Week beginning:

  	
   

  	
   

  	
  7/13/09

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date
  Sent to Blackhawk BioFuels, LLC:

  	
   

  	
   

  	
  7/1/09

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date
  Reviewed by Blackhawk BioFuels, LLC:

  	
   

  	
   

  	
   /  /  

  	
   

  
	
   

  	
   

  	
   

  
	
  Blackhawk
  BioFuels, LLC’s Action: (circle)

  	
   

  	
  ACCEPT

  	
  or

  	
  REJECT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date
  Accepted/Rejected by Blackhawk BioFuels, LLC:

  	
   

  	
   

  	
   /  /  

  	
   

  
								

 

	
   

  	
  x

  	
  REG
  – 9000 ASTM

  	
   

  
	
  Product
  Specification

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  REG
  – 9000 EN

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  x

  	
  Cloud

  	
  10

  	
  °C

  	
   

  
	
  Cold
  Flow Specification

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  CFPP

  	
   

  	
  °C

  	
   

  

 

	
  FEEDSTOCK TYPE

  	
   

  	
  Lbs
  ORDERED

  	
   

  	
  Contr. Yield

  	
   

  	
  Contr. Gallons

  
	
  Animal
  Fats

  	
   

  	
  2,750,000

  	
   

  	
  SEC #7

  	
   

  	
  SEC #7

  
	
  TOTAL

  	
   

  	
  2,750,000

  	
   

  	
   

  	
   

  	
   

  

 

	
  Gary
  Haer

  	
  Date

  	
   7/1/09

  	
   

  	
  Date

  
	
  REG
  Marketing & Logistics Group, LLC.

  	
   

  	
  Blackhawk
  BioFuels, LLC.

  

 

14

 

	
  

  	
  Exhibit A

  

 

	
  016

  	
   ORDER NUMBER

  	
  or

  	
                                  NOMINATION
  NUMBER

  
	
   

  	
   

  	
   

  
	
  For
  Production Week beginning:

  	
   

  	
   

  	
  7/20/09

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date
  Sent to Blackhawk BioFuels, LLC:

  	
   

  	
   

  	
  7/1/09

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date
  Reviewed by Blackhawk BioFuels, LLC:

  	
   

  	
   

  	
   /  /  

  	
   

  
	
   

  	
   

  	
   

  
	
  Blackhawk
  BioFuels, LLC’s Action: (circle)

  	
   

  	
  ACCEPT

  	
  or

  	
  REJECT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date
  Accepted/Rejected by Blackhawk BioFuels, LLC:

  	
   

  	
   

  	
   /  /  

  	
   

  
								

 

	
   

  	
  x

  	
  REG
  – 9000 ASTM

  	
   

  
	
  Product
  Specification

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  REG
  – 9000 EN

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  x

  	
  Cloud

  	
  10

  	
  °C

  	
   

  
	
  Cold
  Flow Specification

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  CFPP

  	
   

  	
  °C

  	
   

  

 

	
  FEEDSTOCK TYPE

  	
   

  	
  Lbs
  ORDERED

  	
   

  	
  Contr. Yield

  	
   

  	
  Contr. Gallons

  
	
  Animal
  Fats

  	
   

  	
  2,750,000

  	
   

  	
  SEC #7

  	
   

  	
  SEC #7

  
	
  TOTAL

  	
   

  	
  2,750,000

  	
   

  	
   

  	
   

  	
   

  

 

	
  Gary
  Haer

  	
  Date

  	
   7/1/09

  	
   

  	
  Date

  
	
  REG
  Marketing & Logistics Group, LLC.

  	
   

  	
  Blackhawk
  BioFuels, LLC.

  

 

15

 

 

“Exhibit B”

 

REG Feedstock Specifications

 

	
  Feedback

  Group

  	
   

  	
  Analytical

  Method

  Feedstock

  Type

  	
   

  	
  Free Fatty Acid

  (as Oleic)

  AOCS Ca

  5a-40

  wt%

  	
   

  	
  Moisture

  AOCS Ca

  2c-25

  wt%

  	
   

  	
  Insoluble

  Impurities

  AOCS

  Ca 3a-46

  wt%

  	
   

  	
  Total MIU

  Calc

  wt%

  	
   

  	
  Phosphorus

  AOCS Ca

  12-55

  ppm

  	
   

  	
  Color

  (FAC

  Scale)

  AOCS

  Cc

  13a-43

  	
   

  	
  Maximum

  Feedstock

  Usage per

  Gallon of

  BioDiesel

  (MFU)

  Lbs/Gal

  
	
   

  	
   

  	
  RB Soy

  	
   

  	
  <0.25

  	
   

  	
  <0.3

  	
   

  	
  <0.05

  	
   

  	
  <1.5

  	
   

  	
  <20

  	
   

  	
  Clear

  &

  bright

  	
   

  	
  7.40

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Crude

  Degummed

  Soy

  	
   

  	
  <1.0

  	
   

  	
  <0.3

  	
   

  	
  <0.25

  	
   

  	
  <2.0

  	
   

  	
  <200

  	
   

  	
  Typical

  	
   

  	
  7.60

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Distillers Corn

  Oil

  	
   

  	
  <15

  	
   

  	
  <1.0

  	
   

  	
  <0.5

  	
   

  	
  <2.5

  	
   

  	
  <20

  	
   

  	
  Typical

  	
   

  	
  8.90

  
	
   

  	
   

  	
  Edible Tallow

  	
   

  	
  <0.75

  	
   

  	
  <0.2

  	
   

  	
  <0.05

  	
   

  	
  <1.0

  	
   

  	
  <400

  	
   

  	
  Typical

  	
   

  	
  7.50

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Animal
  Fats

  	
   

  	
  Tallow

  	
   

  	
  <4

  	
   

  	
  <1.0

  	
   

  	
  <0.25

  	
   

  	
  <2.0

  	
   

  	
  <400

  	
   

  	
  Typical

  	
   

  	
  * 1)

  
	
   

  	
   

  	
  Poultry

  Fat/Grease

  	
   

  	
  <8.0

  	
   

  	
  <1.0

  	
   

  	
  <0.25

  	
   

  	
  <2.0

  	
   

  	
  <400

  	
   

  	
  Typical

  	
   

  	
  * 1)

  
	
   

  	
   

  	
  Choice White

  Grease

  	
   

  	
  <4

  	
   

  	
  <1.0

  	
   

  	
  <0.25

  	
   

  	
  <2.0

  	
   

  	
  <400

  	
   

  	
  Typical

  	
   

  	
  * 1)

  
	
   

  	
   

  	
  Yellow

  Grease & UFO

  	
   

  	
  <15

  	
   

  	
  <1.0

  	
   

  	
  <0.25

  	
   

  	
  <2.0

  	
   

  	
  <400

  	
   

  	
  Typical

  	
   

  	
  * 1)

  

 

	
  416 South Bell
  Avenue, PO Box 888

  	
   

  	
  Ames, Iowa
  50010-0888

  	
   

  	
  TEL [515]
  239-8000

  	
   

  	
  TOLL FREE [888]
  REG-8686

  	
   

  	
  FAX [515]
  239-8009

  	
   

  	
  www.regfuel.com

  

 

16

 

*** Confidential material
redacted and filed separately with the Commission.

 

* 1)  Calculation for Maximum
Feedstock Usage using high FFA feedstocks

 

Maximum Feedstock Usage = (*** x
%FFA) + ***

Example:  Tested
FFA = ***

 

Max Usage = (*** x ***%)
+ *** = *** lbs/gal of biodiesel

 

 

Exhibit C

 

(Biodiesel Specifications)

 

	
  

  	
  Attachment C

  	
   

  
	
  REG - 9000TM  ASTM

  	
   

  

 

Based off ASTM D 6751 Specifications

 

	
  Test
  Parameter

  	
   

  	
  REG-9000TM 

  Limit

  	
   

  	
  Units

  	
   

  	
  Test Method

  (current revision)

  
	
  Cloud
  point:

  	
   

  	
  Per Order

  	
   

  	
  °C

  	
   

  	
  D
  2500 Allowed variance of +/- 2°C

  
	
  Free
  Glycerin:

  	
   

  	
  <0.014

  	
   

  	
  %Mass

  	
   

  	
  D
  6584

  
	
  Total
  Glycerin:

  	
   

  	
  <0.15

  	
   

  	
  %Mass

  	
   

  	
  D
  6584

  
	
  Monoglycerides(1):

  	
   

  	
  <0.500

  	
   

  	
  %Mass

  	
   

  	
  D
  6584

  
	
  Diglycerides(2):

  	
   

  	
  <0.200

  	
   

  	
  %Mass

  	
   

  	
  D
  6584

  
	
  Triglycerides(3):

  	
   

  	
  <0.150

  	
   

  	
  %Mass

  	
   

  	
  D
  6584

  
	
  Water &
  Sediment:

  	
   

  	
  <0.020

  	
   

  	
  %
  Volume

  	
   

  	
  D
  2709

  
	
  Acid
  Number:

  	
   

  	
  <0.40

  	
   

  	
  mg
  KOH/g

  	
   

  	
  D
  664

  
	
  Visual
  Inspection:

  	
   

  	
  1.max

  	
   

  	
  Haze

  	
   

  	
  D
  4176.procedure 2

  
	
  Relative
  Density at 60°F:

  	
   

  	
  0.85 – 0.90

  	
   

  	
  n/a

  	
   

  	
  D1298
  (BQ-9000)

  
	
  Oxidation
  Stability (110 °C):

  	
   

  	
  3 min or per

  Shipping

  Request

  	
   

  	
  hrs

  	
   

  	
  EN
  14112

  
	
  Flash
  point (closed cup):

  	
   

  	
  >93

  	
   

  	
  °C

  	
   

  	
  D
  93

  
	
  Alcohol

  	
  Option
  1: Methanol

  	
   

  	
  <0.2

  	
   

  	
  %Volume

  	
   

  	
  EN
  14110

  
	
  Control

  	
  Option
  2: Flashpoint

  	
   

  	
  >130

  	
   

  	
  °C

  	
   

  	
  D
  93

  
	
  Moisture(4):

  	
   

  	
  <0.020

  	
   

  	
  %Volume

  	
   

  	
  E203

  
	
  Cold
  Soak Filtration:

  	
   

  	
  <200

  	
   

  	
  seconds

  	
   

  	
  D
  6751 Annex

  
	
  Sulfur:

  	
   

  	
  <10

  	
   

  	
  ppm

  	
   

  	
  D
  2622

  
	
  Sodium &
  Potassium Combined:

  	
   

  	
  <2.0

  	
   

  	
  ppm
  (μg/g)

  	
   

  	
  EN
  14538

  
	
  Calcium &
  Magnesium Combined:

  	
   

  	
  <1.0

  	
   

  	
  ppm(μg/g)

  	
   

  	
  EN
  14538

  
	
  Phosphorus:

  	
   

  	
  <0.001

  	
   

  	
  %Mass

  	
   

  	
  D
  4951

  
	
  Carbon
  Residue:

  	
   

  	
  <0.05

  	
   

  	
  %Mass

  	
   

  	
  D
  4530

  
	
  Sulfated
  Ash:

  	
   

  	
  <0.02

  	
   

  	
  %Mass

  	
   

  	
  D
  874

  
	
  Kinematic
  Viscosity at 40°C:

  	
   

  	
  3.8 – 5.0

  	
   

  	
  mm2/sec.

  	
   

  	
  D
  445

  
	
  Copper
  Corrosion (3 hrs at 50°C):

  	
   

  	
  No.1

  	
   

  	
  n/a

  	
   

  	
  D
  130

  
	
  Distillation
  at 90% Recovered:

  	
   

  	
  360, max

  	
   

  	
  °C

  	
   

  	
  D
  1160

  
	
  Cetane
  Number:

  	
   

  	
  47, min

  	
   

  	
  n/a

  	
   

  	
  D
  613

  

 

(1)(2)(3)(4)(5)
These are not ASTM D 6751 nor BQ9000 specification requirements

 

18

 

Attachment C-2

 

REG-9000TM EN

 

Based off EN 14214 Specifications

 

	
  Test
  Parameter

  	
   

  	
  REG-9000TM

  Limit

  	
   

  	
  Units

  	
   

  	
  Method

  
	
  Free
  Glycerin:

  	
   

  	
  0.014

  	
   

  	
  %(m/m)

  	
   

  	
  EN
  14105

  
	
  Total
  Glycerin:

  	
   

  	
  0.150

  	
   

  	
  %(m/m)

  	
   

  	
  EN
  14105

  
	
  Monoglycerides:

  	
   

  	
  0.500

  	
   

  	
  %(m/m)

  	
   

  	
  EN
  14105

  
	
  Diglycerides:

  	
   

  	
  0.200

  	
   

  	
  %(m/m)

  	
   

  	
  EN
  14105

  
	
  Triglycerides:

  	
   

  	
  0.150

  	
   

  	
  %(m/m)

  	
   

  	
  EN
  14105

  
	
  Ester
  Content:

  	
   

  	
  >96.5

  	
   

  	
  %(m/m)

  	
   

  	
  EN
  14103

  
	
  Linoienic
  Acid Methyl Ester:

  	
   

  	
  12, max

  	
   

  	
  %(m/m)

  	
   

  	
  EN
  14103

  
	
  Polyunsaturate
  Methyl Ester:

  	
   

  	
  1, max

  	
   

  	
  %(m/m)

  	
   

  	
  EN
  14103

  
	
  Total
  Contamination:

  	
   

  	
  24, max

  	
   

  	
  mg/kg

  	
   

  	
  EN
  12662

  
	
  Acid
  Number:

  	
   

  	
  <0.40

  	
   

  	
  Mg
  KOH/g

  	
   

  	
  EN
  14104

  
	
  Cold
  Filter Plugging Point:

  	
   

  	
  Per Order

  	
   

  	
  °C

  	
   

  	
  EN
  116 Allowable variance of +/- 2°C

  
	
  Density
  @ 15°C:

  	
   

  	
  860 – 900

  	
   

  	
  Kg/m3

  	
   

  	
  EN
  ISO 3675

  
	
  Oxidative
  Stability:

  	
   

  	
  6 min or per

  Shipping

  Request

  	
   

  	
  hrs

  	
   

  	
  EN
  14112:2003

  
	
  Flashpoint:

  	
   

  	
  >170

  	
   

  	
  °C

  	
   

  	
  EN
  ISO 3679

  
	
  Iodine
  Value:

  	
   

  	
  120 max

  	
   

  	
  g/100g

  	
   

  	
  EN
  14111

  
	
  Methanol
  Content:

  	
   

  	
  0.2, max

  	
   

  	
  %
  (m/m)

  	
   

  	
  EN
  14110

  
	
  Water
  Content:

  	
   

  	
  200, max

  	
   

  	
  mg/kg

  	
   

  	
  EN
  ISO 12937

  
	
  Sulfur
  Content:

  	
   

  	
  <10

  	
   

  	
  mg/kg

  	
   

  	
  EN
  ISO 20846

  
	
  Phosphorus
  Content:

  	
   

  	
  <10

  	
   

  	
  mg/kg

  	
   

  	
  EN
  14107

  
	
  Sodium &
  Potassium Combined:

  	
   

  	
  <2

  	
   

  	
  mg/kg

  	
   

  	
  EN
  14538 BS2000-547

  
	
  Calcium &
  Magnesium Combined:

  	
   

  	
  <2.0

  	
   

  	
  mg/kg

  	
   

  	
  EN
  14538 BS2000-547

  
	
  Sulfated
  Ash:

  	
   

  	
  <0.02

  	
   

  	
  %(m/m)

  	
   

  	
  ISO
  3987

  
	
  Kinematic
  Viscosity at 40°C:

  	
   

  	
  3.5 – 5.0

  	
   

  	
  mm2/sec

  	
   

  	
  EN
  ISO 3104

  
	
  Copper
  Corrosion @ 50°C for 3hrs:

  	
   

  	
  1, max

  	
   

  	
  n/a

  	
   

  	
  EN
  ISO 2160

  
	
  Cetane
  Number:

  	
   

  	
  51 Min.

  	
   

  	
  n/a

  	
   

  	
  EN
  ISO 5165

  
	
  Carbon
  Residue @10% distillation remnant:

  	
   

  	
  0.3

  	
   

  	
  %(m/m)

  	
   

  	
  EN
  ISO 10370

  
	
  Cold
  Soak Filtration:

  	
   

  	
  <200

  	
   

  	
  seconds

  	
   

  	
  D
  6217 Annex

  

 

19

 

Exhibit D

 

(Shipping/Loadout Request)

 

	
  Exhibit D

  
	
  Shipping/Loadout Request

  
	
   

  
	
  Today’s
  Date:

  	
   

  	
  ________/________/____________

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Target
  Date to Load:

  	
   

  	
  ________/________/____________

  	
   

  
	
   

  	
   

  	
   

  
	
  Loading Requirements

  
	
   

  	
   

  
	
  o

  	
  Track
         Trucking Company                                

  
	
   

  	
   

  
	
  o

  	
  REG
  Railcar

  
	
   

  	
   

  
	
  Product:

  
	
   

  	
   

  
	
  o

  	
  B99.9

  
	
  o

  	
  B100

  
	
   

  	
   

  
	
  o

  	
  Oxidative
  Additive:              ppm

  
	
   

  	
   

  
	
  o

  	
  Minimum
  Load Temperature:                               °F

  
					

 

	
  Blackhawk Fills out Remainder of form:

  

 

	
  Lot Number:

  
	
   

  
	
  o Loadout
  Checklist Complete.  Operator initials               

  
	
   

  
	
  Seal Numbers:

  
	
   

  
	
  Railcar ID:

  
	
   

  
	
  RIN #’s

  
	
   

  
	
   

  
	
  Time Scheduled

  	
  *Biodiesel Loaded (gal)

  
	
   

  	
   

  
	
  Time Arrived

  	
  *Diesel Loaded (gal)

  
	
   

  	
   

  
	
  Time Loaded

  	
  *Total Gallons        (gal)

  
	
   

  	
   

  
	
  BOL#

  	
   

  

 

*Gal
corrected to 60 degrees Fahrenheit.

 

When
Completed Scan and e-mail to: bill.neese@regfuel.com, adam.sander@regfuel.com,
mike.alleman@regfuel.com, dave.simon@regfuel.com, natan.wylke@com,
Jason.schwenneker@regfuel.com.

 

20

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]