Document:

Exhibit
10.1

FIRST SUPPLEMENT
TO

CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM OF

BIODIESEL INVESTMENT GROUP, LLC

August 31, 2006

This First
Supplement to Confidential Private Placement Memorandum (this “First
Supplement”) of Biodiesel Investment Group, LLC has been prepared to provide
supplemental information and disclosure modifying, amending, superceding and
supplementing the information and disclosure set forth in the Confidential
Private Placement Memorandum dated August 21, 2006 of Biodiesel Investment Group,
LLC (The “Memorandum”). Capitalized terms not otherwise defined in this First
Supplement have the meaning given such terms in the Memorandum.

Amendment
of Offering to Allow for Closing Prior to Sale of All Units

The Offering was
initially made on an “all-or-nothing” basis, meaning that the Company was
required to raise the entire Offering Amount in order to close on any
subscription agreements, with any investor funds received by the Company prior
to the closing of the Offering to be deposited in an escrow account and not
released to the Company for its use until such time as the entire Offering
Amount had been raised. As  set forth below, we are now amending the Offering to
allow for an initial closing and use by the Company of Offering proceeds upon
receipt by the Company of subscriptions for a minimum designated amount which
is less than the entire Offering Amount.

The Company is
amending the offering to permit the Company to close on less than the entire
$13,750,000 being offered and further to establish a minimum investment amount
per investor of One Hundred Thousand Dollars ($100,000). As amended, the
minimum amount the Company must raise in order to close on any subscription
agreements is $8,000,000 (the “Minimum Closing Amount”). Following the receipt
and closing of subscriptions upon reaching the Minimum Closing Amount (the
“Initial Closing”), the Company may close on the balance of the $13,750,000
(i.e. may close on the remaining subscriptions which, when added to the
subscription amounts of the Initial Closing, equals the Offering Amount) (the
“Second Closing”) only upon receipt of such entire remaining amount and the
simultaneous payment by Bunge to the Operating Company of Bunge’s remaining
cash investment.

The closing of the
investor funds and the sale of the Units at the Initial Closing is expressly
subject to and conditioned upon (1) the Operating Company entering into each of
the agreements with Bunge (or an affiliated entity) described in the Memorandum
on terms and conditions acceptable to the Company and (2) Bunge simultaneously
providing an amount of its $2,500,000 cash investment in the Operating Company
determined by multiplying $2,500,000 by the fraction equal to the amount of
subscriptions at the Initial Closing over $13,750,000, plus its in-kind
contribution to the Operating Company, with the balance of Bunge’s cash
investment to be made at the Second Closing, if any. (If the amount actually
closed by the Company at the Initial Closing is greater than the Minimum
Closing Amount, the amount to be contributed by Bunge at the Initial Closing
will correspondingly increase. For purposes of illustration only, if

 

the Company closes on
$9,500,000 at the Initial Closing, Bunge will simultaneously provide
approximately 69.09% of its $2,500,000 cash investment in the Operating
Company, or approximately $1,727,273 (i.e.
($9,500,000/$13,750,000)x($2,500,000)), plus its in-kind contribution to the
Operating Company.)

If the Initial
Closing Occurs for the Minimum Closing Amount, the capitalization of the
Operating Company as of the Initial Closing will be as follows:

	
   

  	
   

  	
  Capital Contribution(1)

  	
   

  	
  Percent of Capital

  Contributed

  	
   

  	
  Percent of Units

  Outstanding(4)

  	
   

  
	
  Bunge

  	
   

  	
  $

  	
  2,174,546

  	
  (2)

  	
  21.37

  	
  %

  	
  20

  	
  %

  
	
  Company

  	
   

  	
  $

  	
  8,000,000

  	
  (3)

  	
  78.63

  	
  %

  	
  80

  	
  %

  
	
  Totals

  	
   

  	
  $

  	
  10,174,546

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  

 

(1)                                  The
Operating Company would liquidate in accordance with the capital accounts of
the members.

(2)                                  Including
$1,454,546 expected cash capital contribution and $720,000 in-kind contribution
(of which $220,000 is for land purchase and $500,000 is for other in-kind assets
contributed).

(3)                                  Representing
the proceeds of the Initial Closing.

(4)                                  By
agreement between the Company and Bunge, the units of the Operating Company are
to be allocated to the Company and Bunge on an 80%/20% basis, respectively.
Under the Operating Agreement of the Operating Company, profits and losses will
be allocated among the Company and Bunge according to this percentage.

The Company must
close upon obtaining subscriptions which equal or exceed the Minimum Closing Amount
so that the Operating Company will have funds with which to make initial
payments to Fagen and DeSmet and to cover certain other obligations, including
one-half of the origination fee payable to Fifth Third Bank (see discussion
below of commitment letter) and the fees payable to Stern Brothers upon the
signing of the commitment letter, all of which payments are expected to exceed
$4,000,000 in the aggregate. The Operating Company will only release and
disburse from the funds obtained at the Initial Closing the amount required to
make such payments and to fund other obligations of the Operating Company.

Exhibit A to the
Limited Liability Company Agreement of Biodiesel Investment Group, LLC, setting
forth the contribution amounts, Units held and proportionate share of each of
the investors in the Company, will be completed at the Initial Closing and
amended at the Second Closing, if any, to reflect the investment amounts of
each investor The investors at the Initial
Closing will not have any right to purchase their pro rata portion of any Units
to be sold in the Second Closing. Further, Exhibit A to the
Operating Agreement of the Operating Company, setting forth the contribution
amounts, units held and proportionate share of each of the Company and Bunge in
the Operating Company, will be completed at the Initial Closing and amended at
the Second Closing, if any, to reflect the investment amounts of each of the
Company and Bunge. The Operating Agreement will also provide that, if the
Company fails to fund its full capital contribution amount in the Operating
Company, the Company will be subject to dilution

 2
 

 

by Bunge (as a
consequence of the issuance of additional units of the Operating Company to
Bunge in exchange for its additional capital contribution) or a claim by Bunge
or the Operating Company for such unfunded amount.

In connection with
both the Initial Closing and the Second Closing, we reserve the right to
withdraw or modify this Offering and return any subscription funds received
prior to issuing Units to subscribers of each closing. This Offering may be
withdrawn at any time and is specifically made subject to the terms described
in the Memorandum, as supplemented and amended. We specifically reserve the
right to reject any subscription tendered.

THERE
CAN  BE NO ASSURANCE OR GUARANTEE THAT THE COMPANY, IF IT
CLOSES ON SUBSCRIPTIONS UPON OBTAINING THE MINIMUM CLOSING AMOUNT, WILL BE ABLE
TO RAISE THE BALANCE OF THE $13,750,000 BEING OFFERED, IN WHICH EVENT  NO SECOND CLOSING
WILL OCCUR AND THE PROCEEDS OF THE INITIAL CLOSING MUST BE USED TO MAKE THE
PAYMENTS TO FAGEN AND DESMET AND OTHERS DESCRIBED ABOVE RATHER THAN FOR
CONSTRUCTION AND STARTUP OF THE FACILITY, WITH THE RESULT THAT THE INVESTORS
PARTICIPATING IN THE INITIAL CLOSING WILL LIKELY LOSE ALL OR A SIGNIFICANT
PORTION OF THEIR INVESTMENT.

Supplement
to Discussion on Page 1 of the Memorandum under “The Company and Business
Proposal”

The articles of
organization for Biofuels Company of America, LLC were filed with the Illinois
Secretary of State on August 22, 2006.

Supplement
to Discussion on Page 1 of the Memorandum under “Financing of Project”

The construction
and startup cost of the Facility (including administrative and other fees and
expenses and estimated working capital and debt service fund requirements) has
not been finally determined but the estimate set forth in Memorandum has been
increased by $200,167 to approximately $53,625,167.

Supplement
to Discussion on Page 2 of the Memorandum under “Financing of Project”

On August 31,
2006, the Operating Company received a commitment letter from Fifth Third Bank
for the debt financing of the Operating Company. Certain of the terms and
conditions contained in the commitment letter differ from the terms and
conditions set forth in the preliminary term sheet dated July 24, 2006, which
is described in the Memorandum. Specifically, the commitment letter:

·                                          deletes
the provision for a revolving line of credit to be in place as of the loan closing
(although not provided for in the commitment letter, the Operating Company
anticipates that a $4,000,000 revolving line of credit will be obtained

 3
 

 

from Fifth Third Bank as the Facility nears commencement of biodiesel
production); accordingly, the total amount of debt financing covered by the
commitment letter is $24,650,000

·                                          requires
as a condition to the closing of the loan that, among other things, the Operating
Company will have entered into a 3 year take-or-pay contract with Pilot or
another purchaser acceptable to Fifth Third Bank for a minimum of 8,000,000 gallons
of biodiesel annually; in the event the Operating Company has not entered into
a contract with Pilot or another acceptable purchaser on the terms noted above
prior to the closing of the loan, Fifth Third Bank will require either
acceptable loan guarantees or letters of credit or the deposit of cash in the
amount of $6,150,000; this requirement will terminate upon execution of a
contract with Pilot or another acceptable purchaser on the terms noted above

·                                          requires
that the Operating Company maintain a cash debt service fund on deposit with
Fifth Third Bank in the amount of one year of amortized principal and interest
on the term loan (discussed further in the last bullet point item below).

There can be no
guarantee that the Operating Company will receive debt financing in sufficient
amounts or on acceptable terms and conditions.

Below is a summary
of some of the principal terms of the August 31, 2006 commitment letter, a copy
of which is available upon request to the Company:

·                                          a
term loan of $24,650,000 to finance a portion of the construction costs of the Facility;
the loan will be drawn down on a percentage of completion basis

·                                          the
loan would bear interest at the 30 day LIBOR rate + 250 basis points during construction
and at a floating rate thereafter based on the Operating Company’s rolling
four-quarter EBITDA

·                                          the
loan would have a term of five years

·                                          interest
only due monthly for the first 18 months of the loan, with level payments of
principal and interest due monthly thereafter based on a 10 year amortization schedule

·                                          the
following lender fees would apply to the loan: $123,250 loan origination fee, half
of which would be due upon execution of the commitment letter, $61,625 disbursing
fee, and annual administrative fee of $61,625

·                                          the
loan would be subject to a 1% prepayment penalty if repaid on or before the second
anniversary of the loan closing

·                                          the
loan will be cross-collateralized and cross-defaulted with any future Fifth Third
Bank loan and will be secured by the Facility and the assets of the Operating

 4
 

 

Company, including a collateral assignment of the Operating Company’s
agreements with Bunge, Fagen and DeSmet

·                                          the
closing of the loan is subject to number of contingencies, including but not
limited to:

·                                          the
deposit of at least $14,250,000 cash equity in escrow with Fifth Third Bank
prior to the loan closing, with such funds to be used for the construction of
the Facility; the equity requirement will be reduced on a dollar-for-dollar
basis upon payment of verified project costs by the Operating Company prior to
the loan closing

·                                          issuance
of $15,000,000 in loan guarantees from the Illinois Finance Authority

·                                          issuance
to the Operating Company of a grant of not less than $4,000,000 from the
Illinois Department of Commerce and Economic Activity

·                                          issuance
to the Operating Company of a grant of not less than $751,167 from the Illinois
Department of Transportation

·                                          issuance
to the Operating Company of a grant of not less than $225,000 by the City of
Danville, Illinois CDBG

·                                          issuance
to the Operating Company of a TARP grant of not less than $24,000

·                                          execution
of the Lease, Oil Supply Agreement and Services Agreement

·                                          execution
of the agreements with each of Fagen and DeSmet

·                                          the
Operating Company must maintain a cash debt service fund on deposit with Fifth
Third Bank in the amount of one year of amortized principal and interest on the
loan, assuming a principal loan amount of $24,650,000, 10 year amortization
schedule and 8% interest rate; this debt service fund would be released at such
time as the Operating Company’s Fixed Charge Coverage Ratio reaches at least
1.25 on a rolling four-quarter basis following commencement of biodiesel
production at the Facility, but in no event prior to the payment of one year of
principal and interest on the term loan (Fixed Charge Coverage Ratio is defined
in the commitment letter as a fraction, the (x) numerator of which is EBITDA
less taxes, dividends and distributions plus or minus any non-cash items less
maintenance capital expenditures and the (y) denominator of which is principal
and interest expenses).

 5
 

 

Supplement
to Discussion on Page 4 of the Memorandum under “Proposed Agreements with Bunge
and its Affiliated Companies”

The Operating
Company received comments to the drafts of the Lease and Oil Supply Agreement
from Fifth Third Bank on August 29. The Operating Company and Bunge have agreed
to certain, but not all, of the requested changes. The changes to which the
Operating Company and Bunge have agreed are not material to the Offering. Further amendments to the Lease, Oil Supply Agreement
and Services Agreements may be required by Fifth Third Bank as a condition to
the closing of the debt financing.

The Operating
Company received a revised draft of the Lease from Bunge on August 31. Under
the revised draft, the annual base rent payment would remain at $1 per year,
and the Operating Company would be required to pay all taxes, utilities,
expenses and assessments on the leased premises and Facility. Further, under
the revised draft, Bunge Milling would have the right to terminate the Lease in
its discretion if the Operating Company fails to operate the Facility for two
consecutive years or in the event the Facility fails to produce at least
10,000,000 gallons of biodiesel per year for two consecutive years.

Copies of the
revised Lease and Oil Supply Agreement are available upon request.

Supplement
to Discussion on Page 15 of the Memorandum under “Capitalization”

The 3,500 Units
will be issued to Delta GreenPower, LLC, a Mississippi limited liability Company
(“Delta”), rather than to William Luckett individually. We understand that Mr.
Luckett is a member of Delta, together with certain other individuals.

<REMAINDER OF
PAGE INTENTIONALLY LEFT LANK>

 6
 

 

Amendment
to Sources and Uses Table

The Sources and
Uses table on page 17 of the Memorandum is amended as follows:

	
  SOURCES:

  	
   

  	
   

  	
   

  
	
  Fifth Third Bank
  term loan (1)

  	
   

  	
  $

  	
  24,650,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Equity
  Investment (2)

  	
   

  	
  16,250,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Illinois
  Department of Commerce and Economic Opportunity grant

  	
   

  	
  4,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Illinois Department
  of Transportation grant

  	
   

  	
  751,167

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  City of Danville
  CDBG grant

  	
   

  	
  225,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TARP Grant

  	
   

  	
  24,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Interest Income
  on Equity Investment (estimate)

  	
   

  	
  225,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fifth Third Bank
  revolving line of credit (anticipated)

  	
   

  	
  4,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Additional
  Equity Investment – Debt Service Fund

  	
   

  	
  3,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total
  Sources

  	
   

  	
  $

  	
  53,625,167

  	
   

  

 

	
  USES:

  	
   

  	
   

  	
   

  
	
  Plant
  Construction and Equipment

  	
   

  	
  $

  	
  39,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Site and Road
  Development (3)

  	
   

  	
  1,300,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Transaction Fees
  and Expenses (including but not limited to fees and expenses of underwriter,
  lender, appraiser and legal counsel) (estimate)

  	
   

  	
  925,167

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Interest Expense
  (estimate)

  	
   

  	
  800,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Administrative,
  staffing, office furniture, office equipment, pilot run of biodiesel and
  miscellaneous expenses (estimate) (4)

  	
   

  	
  1,600,000 

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Working Capital
  Needs (estimate)

  	
   

  	
  6,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Debt Service
  Fund Requirement

  	
   

  	
  3,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Uses

  	
   

  	
  $

  	
  53,625,167

  	
   

  

 

(1) We are negotiating with the Illinois Finance Authority to obtain a
guarantee of $15,000,000 of the Fifth Third Bank term loan pursuant to an
Agri-Business Guarantee. The loan will be secured by a security interest in all
of the assets of the Facility. There can be no assurance such guarantee, which
is a condition to the Fifth Third Bank loan, will be obtained or maintained.

(2) Includes proceeds of the Offering of $13,750,000 plus $2,500,000
cash investment of Bunge.

(3) $751,167 of this amount would be funded by a proposed Illinois
Department of Transportation grant, $225,000 by a City of Danville CDBG grant
and $24,000 by a TARP grant.

(4) This amount includes
expenses of the Offering, which are estimated to be approximately $100,000.

In
reviewing this First Supplement, you should also keep in mind the risk factors
and other cautionary statements in the Memorandum.

 7
 

 

Attached to this
First Supplement as Exhibit A is the Subscription Agreement which you
must complete, sign and deliver to the Company, together with a duly executed
copy of the Limited Liability Company Agreement of Biodiesel Investment Group,
LLC (attached as Exhibit C to the Memorandum) and payment in full of the
purchase price for Units subscribed for, in order to subscribe for Units in the
Offering.

Any questions
concerning this First Supplement should be directed to the following individual
at the Company: Mark A. Burke, President, 1661 International Drive Suite 400,
Memphis, Tennessee 38120; phone: (901) 818-3033.

	
  First Supplement to

  
	
   

  
	
  Memorandum
  Number:

  	
   

  	
   

  
	
   

  
	
   

  
	
  Name of Offeree:

  	
   

  	
   

  
					

 8
 

 

Exhibit A

Subscription
Agreement

 9

 

Biodiesel
Investment Group, LLC 

1661 International Drive 

Suite 400 

Memphis, Tennessee 38120

Gentlemen:

The undersigned (the “Subscriber”), intending to be legally bound,
hereby irrevocably applies to purchase from Biodiesel Investment Group, LLC, a
Delaware limited liability company (the “Company”), the number of units
(“Units”) of the Company set forth on the signature page hereof at a purchase
price of One Hundred Dollars ($100.00) per Unit. This subscription is submitted
to the Company in accordance with the terms and conditions described in this
Subscription Agreement.

1.                                       Representations and Warranties.

A.            The Subscriber has
received the Company’s Confidential Private Placement Memorandum dated August
21, 2006, as amended and supplemented, has carefully reviewed it and understands
the information contained therein.

B.            The Subscriber has
had a reasonable opportunity to ask questions of and receive information and
answers from the Company concerning the Company and the Units, and all such
questions have been answered, and all such information has been provided to the
full satisfaction of the Subscriber.

C.            The Subscriber has
the knowledge and experience in financial and business matters as to be capable
of evaluating the information referred to in the two proceeding paragraphs and
the risks of the prospective investment. The Subscriber understands that no
federal or state agency has passed upon the Units, or made any finding or
determination as to the fairness of the investment or given any recommendation or
endorsement of the Units.

D.            The Subscriber (i)
has adequate means for providing for his or her current needs and possible
contingent needs, (ii) has no need for liquidity in this investment, and (iii)
is able to bear the economic risks of his or her investment in the Units
including a complete loss.

E.             The Subscriber
acknowledges that the offer and contemplated sale of the Units have been
conducted in a private transaction in which the Units have been offered (and,
it is contemplated, will be sold) through direct communication between the
Company and the Subscriber and without use of any form of general advertising.
The Subscriber has not retained, or otherwise entered into any agreement or
understanding with, any broker or finder in connection with the purchase of the
Units by the Subscriber, and the Company will not incur any liability for any
fee, commission or other compensation on account of any such retention,
agreement or understanding by the Subscriber.

F.             The Subscriber
understands that the offering and sale of the Units is intended to be exempt
from registration under the Securities Act of 1933, as amended (the “Securities
Act”), by virtue of Section 4(2) of the Securities Act and the provisions of
Regulation D promulgated

 1
 

 

thereunder.
The Units have not been registered under the Securities Act or under the
securities laws of any state and the Company will not be under any obligation
to so register the Units. The Subscriber represents that the Subscriber is
purchasing the Units for the Subscriber’s own account, for investment and not
with a view to resale, distribution, or other disposition, and Subscriber has
no present plans to enter into any contract, undertaking, agreement or
arrangement for any such resale, distribution or other disposition. The
Subscriber will not sell or otherwise transfer the Units without registration
under the Securities Act and applicable state securities laws, or pursuant to
an exemption therefrom.

G.            The Subscriber
understands that there presently is no active market for the Units and that it
is unlikely that there will be an active market for them in the future.

H.            The Subscriber
recognizes that there are substantial restrictions on the transferability of
the Units under federal and state securities laws and under the Company’s
Amended and Restated Limited Liability Company Agreement. The sale of the Units
has not been registered under the Securities Act or under the securities laws
of any state and is intended to be exempt from registration under the
Securities Act and applicable state securities laws by virtue of an exemption
therefrom. The Subscriber will not sell or otherwise transfer the Units without
registration under the Securities Act or an exemption therefrom, and will not
sell or otherwise transfer the Units without compliance with the provisions of
the Company’s Amended and Restated Limited Liability Company Agreement, and
fully understands and agrees that he or she must bear the economic risk of his
or her purchase for an indefinite period of time because, among other reasons,
the Units have not been registered under the Securities Act or under the
securities laws of any state and, therefore, cannot be resold, pledged,
assigned or otherwise disposed of unless they are subsequently registered under
the Securities Act and under any applicable state securities laws or unless an
exemption from such registration is available. The Subscriber further
understands that the Company is under no obligation to register the Units on
his or her behalf or to assist the Subscriber in complying with any exemption
from registration under the Securities Act or under the securities laws of any
state;

I.              The Subscriber is
an “accredited investor” as that term is defined in Rule 501 promulgated under
the Securities Act, inasmuch as the Subscriber meets the requirements of one or
more of the following [check the appropriate box below]:

·                                                                                          A natural person who had individual income of
more than $200,000 in each of the most recent two years, or joint income with
that person’s spouse in excess of $300,000 in each of the most recent two years
and who reasonably expects to reach that same income level for the current
year;

·                                                                                          A natural person whose individual net worth,
or joint net worth with that person’s spouse, is in excess of $1,000,000;

·                                                                                          A trust, with total assets in excess of
$5,000,000, which is not formed for the purpose of acquiring the Units, and
whose purchase is directed by a person who has such knowledge and experience in
financial and business matters that such person is capable of evaluating the
risks and merits of an investment in the Units;

 2
 

 

·                                                                                          A corporation, a partnership, an organization
described in Section 501(c)(3) of the Internal Revenue Code of 1986, as
amended, or a Massachusetts or similar business trust, not formed for the
specific purpose of acquiring the Units, with total assets in excess of
$5,000,000;

·                                                                                          A bank as defined in Section 3(a)(2) of the
Securities Act or a savings and loan association or other institution as
defined in Section 3(a)(5)(A) of the Securities Act, whether acting in its
individual or fiduciary capacity; a broker or dealer registered pursuant to
Section 15 of the Securities Exchange Act of 1934; an insurance company as
defined in Section 2(13) of the Securities Act; an investment company registered
under the Investment Company Act of 1940 or a business development company as
defined in Section 2(a)(48) of the Investment Company Act of 1940; a Small
Business Investment Company licensed by the U.S. Small Business Administration
under Section 301(c) or (d) of the Small Business Investment Act of 1958; a
plan established and maintained by a state, it, political subdivisions, or an
agency or instrumentality of a state or its political subdivisions, for the
benefit of its employees, if such plan has total assets in excess of
$5,000,000; or an employee benefit plan within the meaning of the Employee
Retirement Income Security Act of 1974, if the investment decision is made by a
plan fiduciary, as defined in Section 3(21) of the Employee Retirement Income Security
Act of 1974, which is either a bank, savings and loan association, insurance
company, or registered adviser, or if the employee benefit plan has total
assets in excess of $5,000,000 or, if the employee benefit plan is a self
directed plan, the investment decisions are made solely by persons who are
accredited investors;

·                                                                                          A private business development company as
defined in Section 202(a)(22) of the Investment Advisers Act of 1940; or

·                                                                                          An entity in which all of the equity owners
meet the requirements of at least one of the above subparagraphs for accredited
investors.

If
there is any material change in such status prior to the sale of the Units, the
Subscriber will immediately notify the Company in writing.

J.             The Subscriber, if
executing this Subscription Agreement in a representative or fiduciary
capacity, has full power and authority to execute and deliver this Subscription
Agreement in such capacity and on behalf of the subscribing individual,
partnership, trust, estate, Company, or other entity for whom the Subscriber is
executing this Subscription Agreement, and such individual, partnership, trust,
estate, Company, or other entity has full right and power to enter into this
Subscription Agreement and make an investment in the Units.

K.            If the Subscriber is
a natural person, the Subscriber has reached the age of majority in the
jurisdiction in which the Subscriber resides; the Subscriber has adequate means
of providing for the Subscriber’s current financial needs and contingencies, is
able to bear the substantial economic risks of an investment in the Securities
for an indefinite period of time, has no need for liquidity in such investment,
and, at the present time, could afford a complete loss of such

 3
 

 

investment.
The Subscriber’s overall commitment to investments which are not readily
marketable is reasonable in relation to the Subscriber’s net worth.

L.             The Subscriber: [i]
has not filed a registration statement which is the subject of a currently
effective stop order entered pursuant to any state’s law within five years
prior to the date hereof; [ii] has not been convicted within five years prior
to the date hereof of any felony or misdemeanor in connection with the purchase
or sale of any security or any felony involving fraud or deceit including, but
not limited to, forgery, embezzlement, obtaining money under false pretenses,
larceny or conspiracy to defraud; [iii] is not currently subject to any state’s
administrative order or judgment entered by that state’s securities
administrator within five years prior to the date hereof and is not subject to
any state’s administrative order or judgment in which fraud or deceit was found
and the order or judgment was entered within five years of the date hereof;
[iv] is not currently subject to any state’s administrative order or judgment
which prohibits the use of any exemption from registration in connection with
the purchase or sale of securities; [v] is not, and has not been within five
years prior to the date hereof, subject to any order, judgment or decree of any
court of competent jurisdiction temporarily or preliminarily or permanently
restraining or enjoining the Subscriber from engaging in or continuing any
conduct or practice in connection with the purchase or sale of any security or
involving the making of any false filing with any state.

M.           The execution,
delivery and performance of this Subscription Agreement by the Subscriber (i)
will not constitute a default under or conflict with any agreement or
instrument to which the Subscriber is a party or by which it or its assets are
bound, (ii) will not conflict with or violate any order, judgment, decree,
statute, ordinance or regulation applicable to the Subscriber (including,
without limitation, any applicable laws relating to permissible legal investments)
and (iii) do not require the consent of any person or entity. This Subscription
Agreement has been duly authorized, executed and delivered by the Subscriber
and constitutes the valid and binding agreement of the Subscriber enforceable
against it in accordance with its terms. Subscriber has all requisite power to
purchase the Units subscribed for hereunder and shall deliver to the Company
such documents and legal opinions reasonably requested by it with respect to
such authority and power.

N.            Subscriber
acknowledges that the Company is newly formed and does not have any financial
and operating history as a going business and therefore it is very difficult to
evaluate the Company’s current business prospects or to predict future results
of its operations and that an investment in the Units is a highly speculative
and risky venture.

O.            Within five (5) days
after receipt of a request from the Company, Subscriber hereby agrees to
provide such information and to execute and deliver such documents as may reasonably
be necessary to comply with any and all laws and ordinances to which the
Company is subject.

P.                                      The Subscriber hereby acknowledges that the
Company seeks to comply with all applicable laws in all applicable
jurisdictions concerning money laundering and related activities. In
furtherance of those efforts (but without limitation to the generality of the
foregoing), Subscriber hereby represents, warrants and agrees that:

(a)           to the best of Subscriber’s knowledge based upon
appropriate diligence and investigation, none of the cash or property that
Subscriber has paid, will pay or

 4
 

 

will contribute to the Company has been or
shall be derived from or related to, any illegal activities, including without
limitation, activities in violation of Part 12 of the Anti-Terrorism, Crime and
Security Act of 2001 or the Foreign Corrupt Practices Act of 1977;

(b)           neither Subscriber nor any of its beneficial owners,
appears on the Specially Designated Nationals and Blocked Persons List of the
Office of Foreign Assets Control of the U.S. Department of the Treasury, nor
are they otherwise a party with which the Company is prohibited to deal under
the laws of the United States;

(c)           the monies used to fund the investment in the Units are
not derived from, invested for the benefit of, or related in any way to, the
governments of, or persons within, (i) any country under a U.S. embargo
enforced by the U.S. Treasury Department’s Office of Foreign Assets Control,
(ii) that has been designated as a “non-cooperative country or territory” by
the Financial Action Task Force on Money Laundering or (iii) that has been designated
by the U.S. Secretary of the Treasury as a “primary money laundering concern”;

(d)           Subscriber (i) has conducted thorough due diligence with
respect to all of its beneficial owners, (ii) has established the identifies of
all beneficial owners and the source of each of the beneficial owner’s funds
and (iii) will retain evidence of any such identities, any such source of funds
and any such due diligence;

(e)           to the best of Subscriber’s knowledge based upon
appropriate diligence and investigation, no contribution or payment by
Subscriber to the Company, to the extent that they are within Subscriber’s
control, shall cause the Company to be in violation of the United States Bank
Secrecy Act, the United States Money Laundering Control Act of 1986 or the
United States International Money Laundering Abatement and Anti-Terrorist Financing
Act of 2001 or of any regulations issued by the U.S. Treasury Department’s
Office of Foreign Assets Controls;

(f)            Subscriber shall promptly notify the Company if any of
these representations cease to be true and accurate regarding Subscriber;

(g)           if at any time it is discovered that any of the foregoing
representations are incorrect or, if otherwise required by applicable law or
regulation related to money laundering and similar activities, the Company may
undertake appropriate actions to ensure compliance with applicable law or
regulation, including, but not limited to segregation and/or redemption of all
or part of any Units held by Subscriber; and

(h)           the Company may release confidential information about
Subscriber and, if applicable, any beneficial owners of Subscriber, to the
proper authorities if the Company, in its sole discretion, determines that such
disclosure is necessary or advisable in light of the relevant rules and
regulations under the laws set forth in clauses (b) through (e) of this
Subsection P.

2.             Indemnification.
The Subscriber agrees to indemnify and hold harmless the Company, the officers,
managers, directors and affiliates thereof and each other person, if any, who
controls any such person, within the meaning of Section 15 of the Securities
Act, against any and all loss,

 5
 

 

liability,
claim, damage and expense whatsoever (including, but not limited to, any and
all expenses reasonably incurred in investigating, preparing or defending
against any litigation commenced or threatened or any claim whatsoever) arising
out of or based upon any false representations or warranty or breach or failure
by the Subscriber to comply with any covenant or agreement made by the
Subscriber herein or in any other document furnished by the Subscriber to any
of the foregoing in connection with this transaction. All representations,
warranties and covenants contained in this Subscription Agreement shall survive
the acceptance and/or termination of this Subscription Agreement.

3.             Additional
Information. The Subscriber hereby acknowledges and agrees that the Company
may make or cause to be made such further inquiry and obtain such additional
information as it may deem appropriate, including credit searches, with regard
to the suitability of the Subscriber.

4.             Irrevocability;
Binding Effect. The Subscriber hereby acknowledges and agrees that the
subscription hereunder is irrevocable, that the Subscriber is not entitled to
cancel, terminate or revoke this Subscription Agreement or any agreements of
the Subscriber hereunder and that this Subscription Agreement and such other
agreements shall survive the death or disability of the Subscriber and shall be
binding upon and inure to the benefit of the parties and their heirs,
executors, administrators, successors, legal representatives and assigns. If
the Subscriber is more than one person, the obligations of the Subscriber
hereunder shall be joint and several and the agreements, representations,
warranties and acknowledgments herein contained shall be deemed to be made by and
be binding upon each such person and his heirs, executors, administrators,
successors, legal representatives and assigns.

5.             Modification.
Neither this Subscription Agreement nor any provisions hereof shall be waived,
modified, discharged or terminated except by an instrument in writing signed by
the party against whom any such waiver, modification, discharge or termination
is sought.

6.             Notices. Any
notice, demand or other communication which any party hereto may be required,
or may elect, to give to any other party hereunder shall be sufficiently given
if (a) deposited, postage prepaid, in a United States mail box, stamped
registered or certified mail, return receipt requested, addressed to such
address as may be listed on the books of the Company, or (b) delivered
personally at such address.

7.             Counterparts.
This Subscription Agreement may be executed through the use of separate
signature pages or in any number of counterparts, and each of such counterparts
shall, for all purposes, constitute one agreement binding on all parties,
notwithstanding that all parties are not signatories to the same counterpart.

8.             Entire Agreement.
This Subscription Agreement contains the entire agreement of the parties with
respect to the subject matter hereof and there are no representations,
covenants or other agreements except as stated or referred to herein.

9.             Severability.
Each provision of this Subscription Agreement is intended to be severable from
every other provision, and the invalidity or illegality of any portion hereof
shall not affect the validity or legality of the remainder hereof.

 6
 

 

10.           Assignability.
This Subscription Agreement is not transferable or assignable by the Subscriber.

11.           Applicable Law.
This Subscription Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware without regard to conflicts of laws
principles.

12.           Taxpayer
Identification Number. The Subscriber verifies under penalties of perjury that
the Social Security Number shown herein is true, correct and complete and that
the Subscriber is not subject to backup withholding either (a) because the
Subscriber has not been notified that he or she is subject to backup
withholding as a result of a failure to report all interest or dividends or (b)
because the Internal Revenue Service has notified the Subscriber that he or she
is not subject to backup withholding.

13.           Certificate of
Non-Foreign Status. Under penalties of perjury, the Subscriber declares that,
to the best of his or her knowledge and belief, the following statements are
true, correct and complete: (i) that unless an Internal Revenue Service Form
4224 has been completed, the Subscriber is not a foreign person for purposes of
U.S. income taxation (i.e., he is not a nonresident alien); (ii) that the
following information contained elsewhere in the subscription document is true,
correct and complete: the U.S. taxpayer identification number (i.e., social
security number or employer identification number) and home address; and (iii)
that the Subscriber agrees to inform the Company promptly if the Subscriber
becomes a nonresident alien during the three years immediately following the
date hereof.

[END OF TEXT]

 7
 

 

IN WITNESS WHEREOF, Subscriber has executed this Subscription Agreement
as of the      day of            ,
2006.

	
  

  	
  Subscriber:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name of
  Subscriber (Please Print)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature of
  Subscriber

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Subscriber
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Subscriber Social Security or Taxpayer ID Number:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Subscriber
  Telephone Number:

  	
   

  
	
   

  	
  (    )

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Number of Units
  to which this Subscription

  	
   

  
	
   

  	
  Agreement
  applies:

  	
   

  	
  @ $100.00

  
	
   

  	
  per Unit

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Total Purchase
  Price:

  	
   

  
	
   

  	
  $

  	
   

  	
   

  
									

 8
 

 

Subscription
accepted:

	
  BIODIESEL INVESTMENT GROUP,
  LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Mark A. Burke, President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
  , 2006

  	
   

  
						

 

 9

 

MEMBER SIGNATURE PAGE TO

AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT OF

BIODIESEL INVESTMENT GROUP, LLC

IN
WITNESS WHEREOF, the undersigned has caused this
Agreement to be executed as of the date set forth below by the undersigned’s
duly authorized representative.

 

	
   

  	
   

  
	
  (entity name if applicable)

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Signature

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Print Name

  	
   

  
				

 

This Signature Page is executed effective as
of          , 2006.

 38Exhibit 10.1

September
19, 2006

Great
Lakes Dredge & Dock Company

Attn: Ms. Deb Wensel

2122 York Road

Oak Brook IL 60523

Dear
Deb:

It is our understanding that the Net Worth of Great Lakes Dredge &
Dock Corporation and its subsidiaries (GLDD) may fall below $82.5 million, the
minimum Net Worth that GLDD is required to maintain under Section 6.19 of the
Third Amended and Restated Underwriting and Continuing Indemnity Agreement (as
amended).

Travelers Casualty and Surety Company and Travelers Casualty and Surety
Company of America (collectively, “Travelers”) hereby agree to waive GLDD’s
compliance with the Net Worth requirement for the fiscal quarter ending
September 30, 2006.  However, Travelers
expressly reserves the right to declare GLDD in default under the Third Amended
and Restated Underwriting and Continuing Indemnity Agreement should GLDD fail
to increase its Net Worth to $82.5 million for the fiscal quarter ending
December 31, 2006, and maintain its Net Worth at that level or higher for any
fiscal quarter subsequent to December 31, 2006.

Sincerely,

Travelers
Casualty and Surety Company

Travelers Casualty and Surety Company of America

/s/ Michael Damewood

	
  By:

  	
  Michael Damewood

  
	
   

  	
  Assistant Manager

  

 

Acknowledged and Agreed to By:

Great Lakes Dredge & Dock Corporation

	
  By:

  	
  /s/ Deborah A. Wensel

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
  Senior Vice President and
  CFO 

  	
   

  
	
   

  	
   

  	
   

  

 

cc:  Brian Hart, Winston & Strawn

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