Document:

Exhibit 10.1

 

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 December 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.

 

1

 

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.

 

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.

 

(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.

 

2

 

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

 

(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).

 

(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 every Tuesday for Biodiesel delivered
to REG Marketing from the prior Tuesday thru Monday of that week. 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 steady 

 

3

 

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.

 

4

 

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 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 December 31st, 2009 and commence
upon its signature by the Parties.

 

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.

 

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

 

5

 

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.

 

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.  “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.”

 

6

 

18.           Product Segregation.  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.

 

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 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

 

7

 

complete the loadout information for
each load of Biodiesel shipped, all as set out on the attached as Exhibit D
hereto.

 

If any changes occur in the
applicable law prior to or during this contract period that will affect the
availability of the blender tax credit of $1 per gallon for Biodiesel delivered
during this contract period, then REG Marketing may terminate this Agreement at
their option without any further liability or obligation to Blackhawk Biofuels
other than in respect to amounts due for liabilities that have accrued prior to
the date of such termination.

 

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
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.

 

8

 

(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 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

  

 

9

 

	
  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 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

 

10

 

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

 

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.

 

(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.

 

11

 

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/ GARY HAER

  
	
  Name

  	
  Ronald L. Mapes

  	
   

  	
  Name:

  	
  Gary Haer

  
	
  Title

  	
  Chair

  	
   

  	
  Title:

  	
  Vice President

  

 

12

 

Exhibit A

 

(Form of Order/Nomination)

 

ORDER NUMBER                    or                                          NOMINATION
NUMBER

 

	
  For Production Week beginning:

  	
  /

  	
  /

  
	
   

  	
   

  	
   

  
	
  Date Sent to Blackhawk BioFuels, LLC:

  	
  /

  	
  /

  
	
   

  	
   

  	
   

  
	
  Date Reviewed by Blackhawk BioFuels, LLC:

  	
  /

  	
  /

  
	
   

  	
   

  	
   

  
	
  Blackhawk BioFuels, LLC’s Action: (circle)     ACCEPT

  	
  or

  	
  REJECT

  
	
   

  	
   

  	
   

  
	
  Date Accepted/Rejected by Blackhawk BioFuels, LLC:

  	
  /

  	
  /

  
	
   

  	
   

  	
   

  
	
  Product Specification 

  	
  o    REG — 9000 ASTM

  
	
  o    REG — 9000 EN

  
	
   

  	
   

  
	
  Cold Flow Specification 

  	
  o    Cloud        °C

  
	
  o    CFPP        
  °C

  
				

 

	
  FEEDSTOCK TYPE

  	
   

  	
  Lbs ORDERED

  	
   

  	
  Contr. Yield

  	
   

  	
  Contr. Gallons

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Date

  	
   

  	
  Date

  
	
  REG Marketing & Logistics Group, LLC.

  	
   

  	
  Blackhawk BioFuels, LLC.

  

 

13

 

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

 

 

“Exhibit B”

 

REG Feedstock Specifications

 

	
   

  	
   

  	
   

  	
   

  	
  Free Fatty

  Acid

  (as Oleic)

  	
   

  	
  Moisture

  	
   

  	
  Insoluble

  Impurities

  	
   

  	
  Total MIU

  	
   

  	
  Phosphorus

  	
   

  	
  Color

  (FAC

  Scale)

  	
   

  	
  Maximum

  Feedstock

  Usage per

  Gallon of

  BioDiesel

  (MFU)

  
	
   

  	
   

  	
  Analytical Method

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  AOCS Ca

  5a-40

  	
   

  	
  AOCS Ca

  2c-25

  	
   

  	
  AOCS Ca

  3a-46

  	
   

  	
  calc

  	
   

  	
  AOCS Ca

  12-55

  	
   

  	
  AOCS Ca

  13a-43

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Feedstock

  Group

  	
   

  	
  Feedstock

  Type

  	
   

  	
  wt%

  	
   

  	
  wt%

  	
   

  	
  wt%

  	
   

  	
  wt%

  	
   

  	
  ppm

  	
   

  	
   

  	
   

  	
  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)

  

 

* 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

 

14

 

 

Attachment C

 

REG-9000Ô ASTM

 

Based
off ASTM D6751 Specifications

 

	
  Test Parameter

  	
   

  	
  REG-9000Ô  

  Limit

  	
   

  	
  Units

  	
   

  	
  Test Method

  (current revision)

  
	
  Cloud
  point:

  	
   

  	
  Per
  Order

  	
   

  	
  °C

  	
   

  	
  D 2500 Allowable
  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 (100°C)

  	
   

  	
  3 min
  or per Shipping Request

  	
   

  	
  hrs

  	
   

  	
  EN 14112

  
	
  Flash
  point (closed cup):

  	
   

  	
  > 93

  	
   

  	
  °C

  	
   

  	
  D 93

  
	
  Alcohol
  

  Control
  

  	
  Option
  1: Methanol

  	
   

  	
  < 0.2

  	
   

  	
  %
  Volume

  	
   

  	
  EN 14110

  
	
  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

 

15

 

 

Attachment C-2

 

REG-9000Ô EN

 

Based
off EN 14214 Specifications

 

	
  Test Parameter

  	
   

  	
  REG-9000Ô
  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

  
	
  Linolenic
  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

  

 

16

 

 

Exhibit D

Shipping/Loadout Request

 

	
  Today’s Date:

  	
  /         /

  
	
  Target Date to Load:

  	
  /         /

  
	
   

  	
   

  
	
  Loading Requirements

  
	
   

  
	
   

  	
  o   Truck                  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.

 

17Cord Blood America Inc

EXHIBIT 4.1

CORD BLOOD AMERICA, INC. 2010 FLEXIBLE STOCK PLAN

ARTICLE I  

NAME AND PURPOSE

                          

1.1

Name.  The name of the Plan is the "Cord Blood America, Inc. 2010 Flexible Stock Plan."

1.2

Purpose. The Company has established the Plan to attract, retain, motivate and reward Employees and other individuals, to encourage ownership of the Company's Common Stock by Employees and other individuals, and to promote and further the best interests of the Company.

ARTICLE II 

DEFINITIONS OF TERMS AND RULES OF CONSTRUCTION

2.1

General Definitions. The following words and phrases, when used in the Plan, unless otherwise specifically defined or unless the context clearly otherwise requires, shall have the following respective meanings:

A.

Agreement.  The document which evidences the grant of any Benefit under the Plan and which sets forth the Benefit and the terms, conditions and provisions of, and restrictions relating to, such Benefit.  

B.

Benefit.  Any benefit granted to a Participant under the Plan.

C.

Board.  The Board of Directors of the Company.

D.

Company.  Cord Blood America, Inc., a Florida Corporation

E.

Committee.  The Committee described in Section 5.1, or in the event that the Board of Directors does not appoint a Committee, then the Board of Directors.  

F.

Common Stock.  The Company's Common Stock, $0.0001 par value.

G.

Effective Date.  The date that the Plan is adopted by the Board of Directors.

H.

Employee.  Any person, consultant or professional employed by the Employer.

I.

Employer.  The Company and all Subsidiaries.

J.

Exchange Act.  The Securities Exchange Act of 1934, as amended.

K.

Fair Market Value.  The last reported sale price, regular way, of the Shares on any day or, in case no such reported sale takes place on such day, the average of the reported closing  bid and asked prices, regular way, in either case on the principal national securities exchange on which the Shares are listed or if the Shares are not listed on a national securities exchange and are listed on the NASDAQ Stock Market, the sale price determined in the same fashion or, if the  Shares are not so listed on any of the foregoing, the average of the bid and asked prices on such day as furnished by dealers in the Shares in the over-the-counter market. All calculations of the current market price shall be made to the nearest cent.

L.

Option.  An option to purchase Shares granted under the Plan. 

M.

Other Stock Based Award. An award under the Plan that is valued in whole or in part by reference to, or is otherwise based on, Common Stock.  

N.

Participant.  A person who is granted a Benefit under the Plan.  Benefits may be granted only to Employees, employees and owners of entities which are not Subsidiaries but which have a direct or indirect ownership interest in an Employer or in which an Employer has a direct or indirect ownership interest, persons who, and employees and owners of entities which, are customers and suppliers of an Employer, persons who, and employees and owners of entities which, render services to an Employer, and persons who, and employees and owners of entities, which have ownership or business affiliations with any persons or entity previously described.

O.

Performance Share.  A Share awarded to a Participant under ARTICLE XIV of the Plan.

P.

Plan.  The Cord Blood America, Inc. 2010 Flexible Stock Plan, and all amendments and supplements to it.

Q.

Restricted Stock.  Shares issued under ARTICLE XIII of the Plan.

R.

Share.  A share of Common Stock.

S.

Subsidiary.  Any corporation in an unbroken chain of corporations beginning with the Company if, at the time of grant of an Option or other Benefit, each of the corporations, other than the last corporation in the unbroken chain, owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.  

2.2

Other Definitions. In addition to the above definitions, certain words and phrases used in the Plan and any Agreement may be defined in other portions of the Plan or in such Agreement.

2.3

Conflicts in Plan.  In the case of any conflict in the terms of the Plan relating to a Benefit, the provisions in the ARTICLE of the Plan which specifically permits the grant of such Benefit shall control those in a different ARTICLE.  

ARTICLE III 

COMMON STOCK

                           

3.1

Number of Shares.  The number of Shares which may be issued or sold or for which Options or Performance Shares may be granted under the Plan is fixed at 80,000,000 Shares.  At this date there are no shares issued and outstanding under this 2010 Flexible Stock Plan. Such Shares may be authorized but unissued Shares, or Shares held in the treasury, or both.  

3.2

Reusage.  If an Option expires or is terminated, surrendered, or canceled without having been fully exercised, if Restricted Shares or Performance Shares are forfeited, or if any other grant results in any Shares not being issued, the Shares covered by such Option, grant of Restricted Shares, Performance Shares or other grant, as the case may be, shall again be available for use under the Plan, to the fullest extent permitted under applicable law.  

3.3

Adjustments.  If there is any change in the Common Stock of the Company by reason of any stock dividend, spin-off, split-up, spin-out, recapitalization, merger, consolidation, reorganization, combination or exchange of shares, the number and class of shares available for Options and grants of Restricted Stock, Performance Shares and Other Stock Based Awards and the number of Shares subject to outstanding Options, grants of Restricted Stock and Performance Shares which are not vested, and Other Stock Based Awards, and the price thereof, as applicable, shall be appropriately adjusted by the Committee.  

ARTICLE IV 

ELIGIBILITY

4.1

Determined By Committee.  The Participants and the Benefits they receive under the Plan shall be determined solely by the Committee, or in the event the Board of Directors does not appoint a Committee, then by the Board of Directors  (hereinafter the Committee or the Board, if there is no Committee appointed, is referred to as the “Committee).  In making its determinations, the Committee shall consider past, present and expected future contributions of Participants and potential Participants to the Employer, including, without limitation, the performance of, or the refraining from the performance of, services.  

ARTICLE V 

ADMINISTRATION

5.1      Committee.  

A.

The Plan shall be administered by the Board of Directors of the Company, the Stock Option Committee of the Board or another committee of the Board, all as shall be determined by the Board.

B.

If the Board appoints a Committee, the Committee shall be comprised of not less than two persons, and each member of the Committee shall be a member of the Board who during the one year period prior to service on the Committee was, and during such service is, an “outside director,” as such term is utilized in Section 162(m) of the Internal Revenue Code, and a “non-employee director,” as such term is defined and utilized in Rule 16b-3 of the Exchange Act. Subject to the foregoing, the Board may from time to time appoint members of the Committee in substitution for or in addition to members previously appointed, may fill vacancies in the Committee and may remove members of the Committee, at the sole discretion of the Board of Directors.

C.

The Committee shall select one of its members as its chairman and shall hold its meetings at such times and places as it shall deem advisable. A majority of its members shall constitute a quorum and all determinations shall be made by a majority of such quorum. Any determination reduced to writing and signed by all of the members of the Committee shall be fully as effective as if it had been made by a majority vote at a meeting duly called and held.

5.2      Powers.

A.

The Board or the Committee, if so determined by the Board, shall have full power and authority, subject to such orders or resolutions not inconsistent with the provisions of the Plan as may from time to time be issued or adopted by the Board, to grant eligible persons Benefits under the Plan, to determine the restrictions, terms and conditions (which need not be identical) of all Benefits so granted, to interpret the provisions of the Plan and any Agreements relating to Benefits granted under the Plan, and to supervise the administration of the Plan.

B.

The Board or the Committee, if the Board shall so determine, shall have sole authority in the selection of directors, officers and employees of the Company or a Subsidiary, and any consultant, advisor or independent contractor to the Company or a Subsidiary, to whom Awards may be granted under the Plan and in the determination of the timing, pricing, terms, conditions, restrictions and amount of any such Award, subject only to the express provisions of the Plan.

C.

Without limiting the generality of the above Sections, the Board or the Committee shall have the authority to condition any Award, in whole or in part, on performance or other criteria established by the Board or the Committee at the time of grant. In making determinations hereunder, the Board or the Committee may take into account the nature of the services rendered by the respective directors, officers, employees, consultants, advisors or independent contractors, their present and potential contributions to the success of the Company and its Subsidiaries and such other factors as the Board or the Committee in its discretion deems relevant, and may consult with, and give such consideration to the recommendations of, management of the Company as the Board or Committee deems desirable.

5.3

Interpretation.  The Board or the Committee is authorized, subject to the provisions of the Plan, to establish, amend and rescind such rules and regulations as it deems necessary or advisable for the proper administration of the Plan and to take such other action in connection with or in relation to the Plan as it deems necessary or advisable. Each action and determination made or taken pursuant to the Plan by the Board or the Committee, including any interpretation or construction of the Plan, shall be final and conclusive for all purposes and upon all persons. No member of the Board or the Committee shall be liable for any action or determination made or taken by him or the Board or the Committee in good faith with respect to the Plan.

ARTICLE VI 

AMENDMENT

6.1

Power of Board.  Except as hereinafter provided, the Board shall have the sole right and power to amend the Plan at any time and from time to time.

ARTICLE VII

TERM AND TERMINATION

7.1

Term.  The Plan shall commence as of the Effective Date, and, subject to the terms of the Plan, including those limiting the period over which Benefits may be granted, shall continue in full force and effect until terminated.  

7.2

Termination.  The Plan may be terminated at any time by the Board.  

ARTICLE VIII

MODIFICATION OR TERMINATION OF BENEFITS

             

8.1

General.  Subject to the provisions of Section 8.2, the amendment or termination of the Plan shall not adversely affect a Participant's right to any Benefit granted prior to such amendment or termination.  

8.2 

Committee's Right.  Any Benefit granted may be converted, modified, forfeited or canceled, in whole or in part, by the Committee if and to the extent permitted in the Plan or applicable Agreement, or in the grant of the benefit, or with the consent of the Participant to whom such Benefit was granted.  

ARTICLE IX 

AGREEMENTS AND CERTAIN BENEFITS

9.1

Grant Evidenced by Agreement.  The grant of any Benefit under the Plan may be evidenced by an Agreement which shall describe the specific Benefit granted and the terms and conditions of the Benefit or may be evidenced by adoption of a Board Resolution.  The granting of any Benefit shall be subject to, and conditioned upon, the recipient's execution of any Agreement required by the Committee.  Except as otherwise provided in an Agreement, all capitalized terms used in the Agreement shall have the same meaning as in the Plan and theAgreement shall be subject to all of the terms of the Plan.

9.2

Provisions of Agreement.  Any Agreement shall contain such provisions  that the Committee shall determine to be necessary, desirable and appropriate for the Benefit granted which may include, but not be limited to, the following with respect to any Benefit:  description of the type of Benefit; the Benefit's duration; 

its transferability; if an Option, the exercise price, the exercise period and the person or persons who may exercise the Option; the effect upon such Benefit of the Participant's death or termination of employment; the Benefit's conditions; when, if, and how any Benefit may be forfeited, converted into another Benefit, modified, exchanged for another Benefit or replaced; and the restrictions on any Shares purchased or granted under the Plan.

9.3

Certain Benefits.  Any Benefit granted to an individual who is subject to Section 16 of the Exchange Act shall be not transferable other than by will or the laws of descent and distribution and shall be exercisable during his lifetime only by him, his guardian or his legal representative.  

                

ARTICLE X 

REPLACEMENT AND TANDEM AWARDS

                   

10.1

Replacement.  The Committee may permit a Participant to elect to surrender a Benefit in exchange for a new Benefit.  

10.2

Tandem Awards.  Awards may be granted by the Committee in tandem.  

ARTICLE XI

PAYMENT, DIVIDENDS, DEFERRAL AND WITHHOLDING

           

11.1

Payment.  Upon the exercise of an Option or in the case of any other Benefit that requires a payment to the Company, the amount due the Company is to be paid:

A.

in cash;

B.

by the tender to the Company of Shares owned by the optionee and registered in his name having a Fair Market Value equal to the amount due to the Company;

C.

by credit by the receipt for a Retainer due and payable under a contract executed by the Company;

D.

in other property, rights and credits, including the Participant's promissory

E.

note; or

F.

by any combination of the payment methods specified in (a), (b) and (c) above.

Notwithstanding the foregoing, any method of payment other than (a) may be used only with the consent of the Committee (or if and to the extent so provided in an Agreement).  The proceeds of the Sale of Common Stock purchased pursuant to an Option and any payment to the Company for other Benefits shall be added to the general funds of the Company or to the Shares held in treasury, as the case may be, and used for the corporate purposes of the Company as the Board shall determine.

11.2 

Dividend Equivalents.  Grants of Benefits in Shares or Share equivalents may include dividend equivalent payments or dividend credit rights.  

11.3

Deferral.  The right to receive any Benefit under the Plan may, at the request of the Participant, be deferred for such period and upon such terms as the Committee shall determine, which may include crediting of interest on deferrals of cash and crediting of dividends on deferrals denominated in Shares.  

11.4

Withholding.  The Company, at the time any distribution is made under the Plan, whether in cash or in Shares, may at its discretion withhold from such distribution any amount necessary to satisfy federal, state and local  income tax withholding requirements with respect to such distribution. Such withholding shall be in cash or, in the Committee's sole discretion, Shares.  

ARTICLE XII 

OPTIONS

                             

12.1

Determination by Committee.  The terms of all Options shall be determined by the Committee.  

ARTICLE XIII

RESTRICTED STOCK

13.1

Description.  The Committee may grant Benefits in Shares available under ARTICLE III of the Plan as Restricted Stock.  Shares of Restricted Stock shall be issued and delivered at the time of the grant.  Each certificate representing Shares of Restricted Stock shall bear a restrictive legend stating that such Shares are nontransferable until all restrictions have been satisfied (and such other legend as may be required in connection with any Agreement relating to the issuance under the Plan).  The grantee shall be entitled to full voting and dividend rights with respect to all shares of Restricted Stock from the date of grant.

13.2

Non-Transferability.  Shares of Restricted Stock shall not be transferable until after the removal of the legend with respect to such Shares.  

ARTICLE XIV

PERFORMANCE SHARES

                        

14.1

Description.  Performance Shares are the right of an individual to whom a grant of such Shares is made to receive Shares or cash equal to the Fair Market Value of such Shares at a future date in accordance with the terms of such grant.  Generally, such right shall be based upon the attainment of targeted profit   and/or performance objectives.

14.2

Grant.  The Committee may grant an award of Performance Shares.  The number of Performance Shares and the terms and conditions of the grant shall be set forth in an applicable Agreement.

ARTICLE XV 

FORM S-8 REGISTERED STOCK 

15.1

Description.  The Committee may grant Benefits in the form of the issuance of Shares available under ARTICLE III of the Plan, to be issued after filing and effectiveness of an S-8 Registration Statement filed under the Securities Act of 1933 registering such shares, either specifically or as part of a Plan wide registration of shares.  The issuance of all such shares shall be in accord with the rules and regulations associated with the use of an S-8 Registration Statement adopted by the Securities and Exchange Commission as amended, and the terms set forth in the S-8 Registration as filed.

ARTICLE XVI 

OTHER STOCK BASED AWARDS AND OTHER BENEFITS

16.1

Other Stock Based Awards.  The Committee shall have the right to grant Other Stock Based Awards which may include, without limitation, the grant of Shares based on certain conditions, the payment of cash based on the performance of the Common Stock, and the grant of securities convertible into Shares.

16.2

Other Benefits.  The Committee shall have the right to provide types of Benefits under the Plan in addition to those specifically listed, if the Committee believes that such Benefits would further the  purposes for which the Plan was established.

ARTICLE XVII

MISCELLANEOUS PROVISIONS

17.1

Underscored References.  The underscored references contained in the Plan are included only for convenience, and they shall not be construed as a part of the Plan or in any respect affecting or modifying its provisions.

17.2

Number and Gender.  The masculine and neuter, wherever used in the Plan, shall refer to either the masculine, neuter or feminine; and, unless the context otherwise requires, the singular shall include the plural and the plural the singular.

17.3

Governing Law.  This Plan shall be construed and administered in accordance with the laws of the State of Florida.  

17.4

Purchase for Investment.  The Committee may require each person purchasing Shares pursuant to an Option,  or receiving shares under an award under the Plan to represent to and agree with the Company in writing that such person is acquiring the Shares for investment and without a view to distribution or resale.  The certificates for such Shares may include any legend which the Committee deems appropriate to reflect any restrictions on transfer.  All certificates for Shares delivered under the Plan shall be subject to such stock-transfer orders and other restrictions as the Committee may deem advisable under all applicable laws, rules and regulations, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate references to such restrictions.

17.5

No Employment Contract.  The adoption of the Plan shall not confer upon any Employee any right to continued employment nor shall it interfere in any way with the right of the Employer to terminate the employment of any of its Employees at any time.

17.6

No Effect on Other Benefits.  The receipt of Benefits under the Plan shall have no effect on any benefits to which a Participant may be entitled from the Employer, under another plan or otherwise, or preclude a Participant from receiving any such benefits.

Undersigned, the Secretary of Cord Blood America, Inc., hereby certifies that this Cord Blood America, Inc 2010 Flexible Stock Plan was duly adopted by the Board of Directors of the Corporation, effective as of  December 30, 2010.

Date: December 30, 2009

/s/ Matthew L. Schissler 

      Matthew L. Schissler, Chief Executive Officer

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