Document:

exhibit1099.htm

    MASTER
SWAP AGREEMENT

    

    This
MASTER SWAP AGREEMENT (this “Master Agreement”) is entered into and dated as of
this 1st day of
January, 2008 (the “Effective Date”) and is by and between APOLLO RESOURCES
INTERNATIONAL, INC., a Delaware corporation (“Apollo”) and Arizona LNG, LLC, a
Nevada limited liability company (“Counterparty”) have entered and/or anticipate
entering into one or more swap transactions (each a “Transaction”) that are or
will be governed by this Master Agreement, which includes the schedule dated of
even date herewith (the “Schedule”), and the documents and other confirming
evidence (each a “Confirmation”) exchanged between the parties confirming those
Transactions.

    

    Accordingly,
for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:

    

    
      	
              1.  

            	
              Interpretation

            

    

    

    
      	
              (a)  

            	
              Definitions. The terms
      defined in Section 16 and in the Schedule will have the meanings specified
      therein for the purpose of this Master
  Agreement.

            

    

    

    
      	
              (b)  

            	
              Inconsistency. In the
      event of any inconsistency between the provisions of the Schedule and the
      other provisions of this Master Agreement, the Schedule will prevail. The
      Schedule is incorporated into this Master Agreement by reference as if
      fully stated herein. In the event of any inconsistency between the
      provisions of any Confirmation and this Agreement (including the
      Schedule), such Confirmation will prevail for the purpose of the relevant
      Transaction.

            

    

    

    
      	
              (c)  

            	
              Single Agreement. All
      Transactions are entered into in reliance on the fact that this Agreement
      (including the Schedule) and all Confirmations form a single agreement
      between the parties (collectively referred to as this “Agreement”). Unless
      and until this Agreement is terminated according to the terms hereof, all
      Transactions entered into among the parties are subject to the terms
      hereof, except by the parties express written agreement with respect to
      each Transaction that shall not be governed by this
    Agreement.

            

    

    

    
      	
              2.  

            	
              Representations

            

    

    

    Each
party represents to the other party (which representations will be deemed to be
repeated by each party on each date on which a Transaction is entered into)
that:

    

    (a)                 Basic
Representation

    

    
      	
              (i)  

            	
              Status. It is
      duly organized and validly existing under the laws of the jurisdiction of
      its organization or incorporation and, if relevant under such laws, in
      good standing;

            

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (ii)

            	
              Powers. It (1)
      has the power to execute and deliver this Agreement and any other
      documentation relating to this Agreement to which it is a party, (2) to
      deliver this Agreement and any other documentation relating to this
      Agreement that it is required by this Agreement to deliver, (3) to perform
      its obligations under this Agreement, and (4) has taken all necessary
      action to authorize such execution, delivery and
    performance;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              No Violation or
      Conflict. Such execution, delivery and performance do not violate
      or conflict with any applicable law, any provision of its constitutional
      documents, any order or judgment of any court or other applicable agency
      of government, or any of its assets or any contractual restriction binding
      on or affecting it or any of its
assets;

            

    

    

    
      	
               
      

            	
              (iv)

            	
              Consents. All
      governmental and other consents that are required to have been obtained by
      it with respect to this Agreement have been obtained and are in full force
      and effect and all conditions of any such consents have been
      fulfilled;

            

    

    

    
      	
               
      

            	
              (v)

            	
              Obligations
      Binding. Its obligations under this Agreement constitute its legal,
      valid and binding obligations, enforceable in accordance with their
      respective terms (subject to applicable bankruptcy, reorganization,
      insolvency, moratorium or similar laws affecting creditors’ rights
      generally and subject, as to enforceability, to equitable principles of
      general application – regardless of whether enforcement is sought in a
      proceeding in equity or at law);

            

    

    

    
      	
              (vi)  

            	
              United States
      Person.  It is a United States person (as such term is
      defined in Section 7701 of the Internal Revenue
  Code);

            

    

    

    
      	
              (vii)  

            	
              No Withholding
      Tax.  During the term of this Agreement, it will not be
      doing business in any jurisdiction that imposes any withholding tax or
      similar levy on any payment made or received by it under this
      Agreement;

            

    

    

    
      	
              (viii)  

            	
              Eligible Swap
      Participant.  (1) It constitutes an “eligible swap
      participant” as such term is defined in 17 C.F.R. Section 35.1(b)(2), and
      (2) this Agreement and any Transaction entered into hereunder constitutes
      a “swap agreement” within the meaning of 17 C.F.R. Section
      35.1(b)(1);

            

    

    

    
      	
              (ix)  

            	
              Line of
      Business.  (1) It is entering into this Agreement in
      conjunction with its line of business (including financial intermediation
      services) or the financing of its business, and (2) solely with respect to
      options, it is a producer, processor, commercial user of, or merchant
      handling, the commodity subject to a Transaction or the products or
      byproducts thereof, and it has entered or will enter into Transactions
      solely for purposes related to its business as such;
  and

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    No Reliance on Other
Party.  (1) The other party to this Agreement (A) is not acting
as a fiduciary or financial, investment or commodity trading advisor for it, and
(B) has not given to it (directly or indirectly through any other person) any
assurance, guaranty, or representation whatsoever as to the merits (either
legal, regulatory, tax, financial, accounting or otherwise) of This Agreement or
any Transaction or the expected performance or result of this Agreement or any
Transaction, and (2) in connection with the negotiation and execution of this
Agreement (A) it is acting as a principal (and not as an agent or in any other
capacity, fiduciary or otherwise), (B) it is not relying upon any advice,
counsel, or representations (whether written or oral) of the other party other
than the representations expressly set forth in this Agreement, (C) it has made
and will make its own decisions regarding the entering into of this Agreement
and any Transactions hereunder based upon its own judgment and upon the advice
from such professional advisors as it deemed, or will deem, necessary to
consult, and (D) it has a full understanding of all the terms, conditions, and
risks (economic and otherwise) of this Agreement, and it is capable of assuming
and willing to assume (financially and otherwise) those risks.

    

    
      	
              (b)  

            	
              Absence of Certain
      Events.  No Event of Default or Potential Event of
      Default or, to its knowledge, Termination Event with respect to it has
      occurred and is continuing and no such event or circumstance will occur as
      a result of its entering into or performing its obligations under this
      Agreement.

            

    

    

    
      	
              (c)  

            	
              Absence of
      Litigation.  There is not pending, nor to its knowledge
      threatened against it or any of its Affiliates, any action, suit or
      proceeding at law or in equity or before any court, tribunal, governmental
      body, agency or official or any arbitrator that is likely to affect the
      legality, validity or enforceability against it of this Agreement or its
      ability to perform its obligations under this
  Agreement.

            

    

    

    
      	
              (d)  

            	
              Accuracy of Specified
      Information.  All applicable information that is
      furnished in writing by or on behalf of it to the other party and is
      identified for the purpose of this Section 2(d) in the Schedule is, as of
      the date of the information, true, accurate and complete in every material
      respect.

            

    

    

    

    
      	
              3.  

            	
              Term
      of this Agreement

            

    

    

    The term
of this Agreement shall extend for a period of one (1) year from the Effective
Date and month-to-month thereafter until terminated on thirty (30) days advance
written notice by either Party; provided, however, that the provisions hereof
shall survive termination of this Agreement and continue to apply to any
Transactions entered into between Apollo and Counterparty prior to the date of
termination of this Agreement until such time as any and all such Transactions
are completed or terminated. Notwithstanding the foregoing, the representations,
warranties, and indemnities set forth in this Agreement will survive termination
of this Agreement.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    Transactions
and Obligations

    

    
      	
              a.  

            	
              Transactions. Formation.  Should
      the parties come to an understanding regarding a particular Transaction,
      the Transaction will be formed and effectuated by either (1) a written
      paper-based letter executed by the parties (including by either facsimile
      and/or original counterparts) substantially in the form of Exhibit A
      attached hereto and incorporated herein by reference or a different form
      agreed to by the parties (the “Confirmation Letter”), (2) by an exchange
      of e-mails (which together shall constitute the Confirming Electronic
      Message) between the parties with substantially the same content as set
      out on Exhibit A, and such e-mail must conform exactly as to each term
      marked on Exhibit “A” with an * (the Confirmation Letter and/or Confirming
      Electronic Message may also be interchangeably or collectively referred to
      as a “Confirmation”).  Each party may stipulate by prior notice
      (oral or written) to the other party that any particular contemplated
      Transaction may be effectuated and formed only by means of procedure (1)
      above.  The parties shall be legally bound by each Transaction
      from the time they agree to its terms in accordance with this Section 4(a)
      and acknowledge that each party will rely thereon in doing business
      related to the Transaction.  The Confirming Electronic Message
      is adopted by the parties as means by which a Transaction is reduced to
      tangible form, and the parties to a Transaction are identified and
      authenticate a Transaction.  Any Transaction formed and
      effectuated pursuant to the foregoing shall be considered a “writing” or
      “in writing” and to have been “signed” and any Confirming Electronic
      Message shall be deemed to constitute an “original” document evidencing
      the Transaction.  Each party consents to the recording of its
      employees’ telephone conversations without any further
    notice.

            

    

    

    
      	
              b.  

            	
              Obligations.

            

    

    

    
      	
              (i)  

            	
              Payment
      Obligations.

            

    

    

    
      	
              (1)  

            	
              Each
      party shall make each payment as specified for such party in each
      Confirmation, subject to the other provisions of this
      Agreement.

            

    

    

    
      	
              (2)  

            	
              Payments
      under this Agreement will be made on the due date for value by wire or
      other electronic transfer into the account specified in the relevant
      Confirmation or otherwise pursuant to this Agreement, in freely
      transferable funds and in the manner customary for payments in United
      States dollars.

            

    

    

    
      	
              (3)  

            	
              Each
      obligation of each party under Section 4(b)(i)(1) is subject to (A) the
      condition precedent that no Event of Default or Potential Event of Default
      with respect to the other party has occurred and is continuing, (B) the
      condition precedent that no Early Termination Date in respect of the
      relevant Transaction has occurred or
been

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      	
              (4)  

            	
              effectively
      designated, and (C) each other applicable condition precedent specified in
      this Agreement.

            

    

    

    
      	
              (ii)  

            	
              Change of
      Account.  Either party may change its account for
      receiving a payment by giving written notice to the other party at least
      five (5) Business Days prior to the scheduled date for the payment to
      which such change applies unless such other party gives timely notice of a
      reasonable objection to such
change.

            

    

    

    
      	
              (iii)  

            	
              Netting of
      Payments.  If on any payment date amounts would otherwise
      be payable in respect of the same Transaction by each party to the other,
      then, on such date, each party’s obligation to make payment of any such
      amount will be automatically satisfied and discharged, and if the
      aggregate amount that would otherwise have been payable by one party
      exceeds the aggregate amount that would otherwise have been payable by the
      other party, such party’s payment obligation shall be replaced by an
      obligation to pay the other party the excess of the larger aggregate
      amount over the smaller aggregate amount.  The parties may elect
      in respect of two or more Transactions that a net amount will be
      determined in respect of all amounts payable on the same date in respect
      of such Transactions, regardless of whether such amounts are payable in
      respect of the same Transaction.  The election may be made in
      the Schedule or a Confirmation by specifying that this subparagraph will
      specifically apply to multiple Transactions identified as being subject to
      such election together with a starting date.  This election may
      be made separately for different groups of
  Transactions.

            

    

    

    
      	
              (iv)  

            	
              Default Interest;
      Other Amounts.  Prior to the occurrence or effective
      designation of an Early Termination Date in respect of the relevant
      Transaction, a party that defaults in the performance of any payment
      obligation will, to the extent permitted by law be required to pay
      interest (before as well as on and after judgment) on the overdue amount
      to the other party for the period from (and including) the original due
      date for payment to (but excluding) the date of actual payment, at the
      Interest Rate.  Such interest will be calculated on the basis of
      daily compounding and the actual number of days
  elapsed.

            

    

    

    
      	
              5.  

            	
              Further
      Assurances

            

    

    

    Each
party agrees with the other that, so long as either party has or may have any
obligation under this Agreement:

    

    
      	
              (a)  

            	
              Furnish Specified
      Information. It will deliver to the other party any forms,
      documents or certificates specified in the Schedule or any Confirmation
      by

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      	
              (b)  

            	
              the
      date specified in the Schedule or such Confirmation, or if none is
      specified, as soon as reasonably
practicable.

            

    

    

    
      	
              (c)  

            	
              Maintain
      Authorizations. It will use all reasonable efforts to maintain in
      full force and effect all consents of any governmental or other authority
      that are required to be obtained by it with respect to this Agreement and
      will use all reasonable efforts to obtain any that may become necessary in
      the future.

            

    

    

    
      	
              (d)  

            	
              Comply with Laws. It
      will in all material respects with each applicable law and order to which
      it may be subject if failure so to comply would materially impair its
      ability to perform its obligations under this
  Agreement.

            

    

    

    
      	
              6.  

            	
              Definition
      of Events of Default

            

    

    

    The
occurrence at any time with respect to a party or any Specified Entity of such
party of any of the following events constitutes an event of default (an “Event
of Default”) with respect to such party:

    

    
      	
              (a)  

            	
              Failure to Pay. Failure
      by a party to make, when due, any payment under this Agreement required to
      be made by it, if such failure is not remedied within three (3) Business
      Days after written notice of such failure is given to such
      party;

            

    

    

    
      	
              (b)  

            	
              Breach of Agreement.
      Failure by a party to comply with or perform any agreement or obligation
      (other than an obligation to make any payment under this Agreement) to be
      complied with or performed by such party in accordance with this Agreement
      if such failure is not remedied on or before the thirtieth (30th)
      day after written notice of such failure is given to such
      party;

            

    

    

    
      	
              (c)  

            	
              Misrepresentation. A
      representation made or repeated or deemed to have been made or repeated by
      a party is incorrect or misleading in any material respect when made or
      repeated or deemed to have been made or
  repeated;

            

    

    

    
      	
              (d)  

            	
              Default under
      Transaction. A party, or any applicable Specified Entity of such
      party (i) defaults under a Transaction and, after giving effect to any
      applicable notice requirement or grace period, there occurs a liquidation
      of, an acceleration of obligations under, or an early termination of, that
      Transaction, (ii) defaults, after giving effect to any applicable notice
      requirement or grace period, in making any payment on the last payment
      date of, or any payment on early termination of, a Transaction, or (iii)
      disaffirms, disclaims, repudiates, or rejects, in whole or in part, a
      Transaction (or such action is taken by any person or entity appointed or
      empowered to operate it or act on its
behalf);

            

    

    

    
      	
              (e)  

            	
              Bankruptcy. A party or
      any applicable Specified Entity of such party; (i) is dissolved (other
      than pursuant to a consolidation, amalgamation or
  merger);

            

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
      	
              (f)  

            	
              (ii)
      becomes insolvent or is unable to pay its debts or fails or admits in
      writing its inability generally to pay its debts as they become due; (iii)
      makes a general assignment, arrangement, or composition with or for the
      benefit of its creditors; (iv) institutes or has instituted against it a
      proceeding seeking a judgment of insolvency or bankruptcy or any other
      relief under any proceeding seeking a judgment of insolvency or bankruptcy
      or any other relief under any bankruptcy or insolvency law or other
      similar law affecting creditors’ rights,  or a petition is
      presented for its winding-up or liquidation, and in the case of any such
      proceeding or petition instituted or presented against it, such proceeding
      or petition (1) results in a judgment of insolvency or bankruptcy or the
      entry of an order for relief or the making of an order for its winding-up
      or liquidation or (2) is not dismissed, discharged, stayed, or restrained
      in each case within thirty (30) days of the institution or presentation
      thereof; (v) passes a resolution for its winding-up, official management,
      or liquidation (other than pursuant to a consolidation, amalgamation, or
      merger); (vi) seeks or becomes subject to the appointment of an
      administrator, provisional liquidator, conservator, receiver, trustee,
      custodian, or other similar official for it or for all or substantially
      all of its assets; (vii) has a secured party take possession of all or
      substantially all of its assets or has a distress, execution, attachment,
      sequestration, or other legal process levied, enforced, or sued on or
      against all or substantially all of its assets and such secured party
      maintains possession, or any such process is not dismissed, discharged,
      stayed, or restrained, in each case within thirty (30) days thereafter;
      (viii) causes or is subject to any event with respect to it which, under
      the applicable laws of any jurisdiction, has an analogous effect to any of
      the events specified in clauses (i) through (vii) (inclusive); or (ix)
      takes any action in furtherance of, or indicating its consent to, approval
      of, or acquiescence in, any of the foregoing
  acts;

            

    

    

    
      	
              (g)  

            	
              Merger Without
      Assumption. A party consolidates or amalgamates with, or merges
      with or into, or transfers all or substantially all of its assets to
      another entity, and at the time of such consolidation, amalgamation,
      merger, or transfer the resulting, surviving, or transferee entity fails
      to assume all of the obligations of such party under this Agreement by
      operation of law or pursuant to an agreement reasonably satisfactory to
      the other party to this Agreement;

            

    

    

    
      	
              (h)  

            	
              Credit Event upon
      Merger. A party or any applicable Specified Entity of such party
      consolidates or amalgamates with, or merges with or into, or transfers all
      or substantially all of its assets to another entity and such action does
      not constitute an event described in Section 6(h) but the creditworthiness
      of the resulting, surviving, or transferee entity is materially weaker
      than that of such party, or such Specified Entity of such party, as the
      case may be, immediately prior to such
action.

            

    

    

    
      	
              7.  

            	
              Definition
      of Termination Events

            

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
      	
              8.  

            	 

    

    The
occurrence at any time with respect to a party or, if applicable, or any
Specified Entity of such party of any event specified below constitutes a
termination event (a “Termination Event”) with respect to such
party:

    

    
      	
              (a)  

            	
              Illegality. Due to the
      adoption of, or any change in, any applicable law after the date on which
      a Transaction is entered into, or due to the promulgation of, or any
      change in, the interpretation by any court, tribunal or regulatory
      authority with competent jurisdiction of any applicable law after such
      date, it becomes unlawful (other than as a result of a breach by such
      party of Section 5(b)) for such party (which will be the “Affected Party”)
      to perform any absolute or contingent obligation to make a payment or to
      receive a payment in respect of such Transaction or to comply with any
      other material provision of this Agreement relating to such Transaction;
      and

            

    

    

    
      	
              (b)  

            	
              Tax Law Changes. Due to
      the adoption of, or any change in, any applicable tax law after the date
      on which a Transaction is entered into, or due to the promulgation of, or
      any change in, the interpretation by any court, tribunal or regulatory
      authority with competent jurisdiction of any applicable tax law after such
      date, such tax law change or interpretation has a material effect on the
      amount of tax owed on any
Transaction.

            

    

    

    
      	
              9.  

            	
              Remedies
      upon an Event of Default or Termination
Event

            

    

    

    
      	
              (a)  

            	
              Right to Terminate upon an
      Event of Default or Termination Event. If an Event of Default shall
      have occurred and shall be continuing or if a Termination Event shall have
      occurred, the non-defaulting party with respect to an Event of Default of
      the terminating party with respect to a Termination Event (interchangeably
      referred to as a “Non-Defaulting Party”) may, in its sole discretion, by
      no more than twenty (20) days written notice to the defaulting party or
      terminated party (interchangeably referred to as a “Defaulting Party”)
      designate a day no earlier than the day such notice is effective as an
      early termination date (“Early Termination Date”) with respect to some or
      all Transactions then in effect under this
  Agreement.

            

    

    

    
      	
              (b)  

            	
              Effect of Designation of an
      Early Termination Date. On the Early Termination Date, all
      obligations under all Transactions so designated under Section 8(a) shall
      be terminated, except as provided
below.

            

    

    

    
      	
              (c)  

            	
              Calculation of Termination
      Payment. If an Early Termination Date has been designated, the
      Non-Defaulting Party shall in good faith calculate its Gains or Losses and
      Costs resulting from the termination of the parties’ obligations under all
      Transactions designated under Section 8(a). The Non-Defaulting Party shall
      aggregate such Gains, Losses and Costs with respect to all Transactions
      designated under Section 8(a) into a single
net

            

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    
      	
              (d)  

            	
              amount
      and notify the Defaulting Party of the net amount owed or owing (the
      “Termination Payment”).

            

    

    

    
      	
              (e)  

            	
              Payment of the
      Termination Payment. If the Termination Payment is negative (i.e. the
      Non-Defaulting Party’s aggregate Losses and Costs exceed its aggregate
      Gains), the Defaulting Party shall, within five (5) Business Days of
      receipt of the notice given in Section 8(c), pay the Termination Payment
      to the Non-Defaulting Party, which amount shall bear interest at the
      Interest Rate from the Early Termination Date until paid. If the
      Termination Payment is positive (i.e. the Non-Defaulting Party’s aggregate
      Gains exceed its aggregate Losses and Costs, if any, resulting from an
      Event of Default or Termination Event, subject to the right of set-off in
      Section 9), the Non-Defaulting Party shall pay the Termination Payment,
      subject to the right of set-off in Section 9, to the Defaulting Party
      within five (5) Business Days of the Defaulting Party’s receipt of the
      notice given in Section 8(c), which amount shall bear interest at the
      Interest Rate if not paid within such five (5) Business
    Days.

            

    

    

    
      	
              (f)  

            	
              Direct Damages Only.
      NO PARTY SHALL BE
      REQUIRED TO PAY SPECIAL, EXEMPLARY, PUNITIVE, INCIDENTAL, CONSEQUENTIAL,
      LOST PROFITS, OR INDIRECT DAMAGES (WHETHER OR NOT ARISING FROM A PARTY’S
      OWN SOLE, JOINT, CONCURRENT, CONTRIBUTORY, OR COMPARATIVE NEGLIGENCE
      (WHETHER GROSS OR SIMPLE, ACTIVE OR PASSIVE)) TO THE OTHER PARTY, EXCEPT
      TO THE EXTENT THAT THE PAYMENTS REQUIRED TO BE MADE PURSUANT TO THIS
      AGREEMENT ARE DEEMED TO BE SUCH DAMAGES. IF AND TO THE EXTENT ANY PAYMENT
      MADE PURSUANT TO THIS AGREEMENT IS DEEMED TO CONSTITUTE LIQUIDATED
      DAMAGES, THE PARTIES ACKNOWLEDGE AND AGREE THAT DAMAGES ARE DIFFICULT OR
      IMPOSSIBLE TO DETERMINE AND THAT SUCH PAYMENT CONSTITUTES A REASONABLE
      APPROXIMATION OF THE AMOUNT OF SUCH DAMAGES, AND IS NOT A PENALTY. THIS
      SECTION 8(e) SHALL SURVIVE ANY TERMINATION OF THIS
      AGREEMENT.

            

    

    

    
      	
              (g)  

            	
              Recovery of Expenses. A
      Defaulting Party will, on demand, indemnify and hold harmless the
      Non-Defaulting party from and against all reasonably out-of-pocket
      expenses, including, without limitation, reasonable attorneys’ and other
      legal fees and expenses, incurred by the Non-Defaulting Party by reason of
      the enforcement and protection of its rights under this Agreement or by
      reason of the early termination of any Transaction, including, but not
      limited to, costs of collection of the Termination Payment or any other
      payment owed to the Non-Defaulting Party under this
    Agreement.

            

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    Right
of Set-off

    

    In the
event of an occurrence of an Early Termination Date, the Non-Defaulting Party
shall be entitled, at its option and in its discretion, to set-off against any
amounts owed to the Defaulting Party by the Non-Defaulting Party under this
Agreement or otherwise any amounts payable by the Defaulting Party to the
Non-Defaulting Party under this Agreement or otherwise. This Section shall be
without prejudice and in addition to any right of setoff, combination of
accounts, lien, or other rights to which any party is at any time otherwise
entitled (whether by operation of law, contract, or otherwise). Notwithstanding
any provision to the contrary contained in this Agreement, the Non-Defaulting
Party shall not be required to pay to the Defaulting Party any amount under this
Agreement until the Non-Defaulting Party receives confirmation satisfactory to
it in its reasonable discretion that all obligations of any kind whatsoever of
the Defaulting Party to make any payments to the Non-Defaulting Party under this
Agreement or otherwise which are due and payable as of the Early Termination
Date have been fully and finally performed.

    

    
      	
              10.  

            	
              Market
      Disruption

            

    

    

    If a
Market Disruption Event has occurred and is continuing on any Trading Day, the
Floating Price for such Trading Day shall be determined pursuant to the Floating
Price Source specified in a particular Transaction for the first Trading Day
thereafter on which no Market Disruption Event exists; provided, however, if the
Floating Price is not so determined within three (3) Business Days after the
first Trading Day on which the Market Disruption Event occurred or existed, then
the Floating Price shall be determined by reference to the Alternative Floating
Price Source specified in a particular Transaction, if any, which is not subject
to a Market Disruption Event. If no Alternative Floating Price Source is
available or has been specified, and the Market Disruption Event continues for
more than three (3) Business Days, then the parties shall negotiate in good
faith to agree on a Floating Price (or a method for determining a Floating
Price), and if the parties have not so agreed on or before the twelfth (12th)
Business Day following the first Trading Day on which the Market Disruption
Event occurred or existed, then the Floating Price shall be determined in good
faith by Apollo, by taking the average of two or more dealer
quotes.

    

    
      	
              11.  

            	
              Transfer

            

    

    

    Neither
this Agreement nor any interest or obligation in or under this Agreement may be
transferred (whether by way of security, assignment, or otherwise) by either
party without the prior written consent of the other party, except
that:

    

    
      	
              (a)  

            	
              a
      party may make such a transfer of this Agreement pursuant to a
      consolidation or amalgamation with, or merger with or into, or transfer of
      all or substantially all of its assets to, another entity (by without
      prejudice to any other right or remedy under this Agreement);
      and

            

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    a party
may make such a transfer of all or any part of its interest in any amount
payable to it from a  Defaulting Party.

    

    Any
purported transfer that is not in compliance with this Section shall be void and
of no force or effect.

    

    
      	
              12.  

            	
              DECEPTIVE
      TRADE PRACTICES

            

    

    

    APOLLO
AND COUNTERPARTY CERTIFY THAT THEY ARE NOT “CONSUMERS” WITHIN THE MEANING OF THE
TEXAS DECEPTIVE TRADE PRACTICES-CONSUMER PROTECTION ACT, SUBCHAPTER E OF CHAPTER
17, SECTIONS 17.41 ET SEQ., AMENDED (THE “DTPA”). THE PARTIES COVENANT, TO THE
EXTENT THE DTPA IS APPLICABLE, THAT (A) THE PARTIES ARE “BUSINESS CONSUMERS”
THEREUNDER, (B) EACH PARTY HEREBY WAIVES AND RELEASES ALL OF ITS RIGHTS AND
REMEDIES THEREUNDER (OTHER THAN SECTION 17.55555, TEXAS BUSINESS AND COMMERCE
CODE) AS APPLICABLE TO THE OTHER PARTY AND ITS SUCCESSORS AND ASSIGNS, AND (C)
EACH PARTY SHALL DEFEND AND INDEMNIFY THE OTHER FROM AND AGAINST ANY AND ALL
ACTIONS BASED IN WHOLE OR IN PART ON THE DTPA, ARISING OUT OF OR IN CONNECTION
WITH THIS AGREEMENT OR ANY TRANSACTION ENTERED INTO HEREUNDER.

    

    
      	
              13.  

            	
              Arbitration

            

    

    

    Any
dispute, except a request of injunctive relief pursuant to Section 14 hereof,
relating to this Agreement, any confirmation, or any Transaction shall be
resolved by binding arbitration conducted in accordance with the Commercial
Arbitration Rules of the American Arbitration Associations (the “AAA”) and
governed by the Federal Arbitration Act (the “FAA”). Each party shall select one
arbitrator within thirty (30) days of a notice for arbitration and the two (2)
arbitrators shall select a their neutral arbitrator with at least eight (8)
years of professional experience in over-the-counter derivative transactions.
Only damages allowed pursuant to this Agreement may be awarded and the
arbitrators shall have no authority to aware treble, exemplary, or punitive
damages of any kind under any circumstances regardless of whether such damages
may be available under the governing law for this Agreement and/or the FAA or
AAA. The arbitration shall be conducted in the English language in Dallas,
Texas, and such arbitration, and any related award shall be
confidential.

    

    
      	
              14.  

            	
              Confidentiality

            

    

    

    The
contents of this Agreement and any Transaction entered into hereunder and all
other documents relating to this Agreement, if any, and the results of any
arbitration with respect to this Agreement are confidential and shall not be
disclosed to any third party (nor shall any public announcement be made by
either party), except for such information (a) as may become generally known to
the public, (b) as may be required or appropriate

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    in
response to any summons, subpoena, or otherwise in connection with any
litigation or to comply with any applicable law, order, regulation, ruling, or
accounting disclosure rule or standard, (c) as may be obtained from a
non-confidential source that disclosed such information in a manner that did not
violate its obligations to the non-disclosing party in making such disclosure,
or (d) as may be furnished to the disclosing party’s auditors, attorneys,
advisors, or lenders which are required to keep the information that is
disclosed in confidence. Should a party violate the terms of this
confidentiality provision, then the parties hereby confess and agree that the
harm of such disclosure would be irreparable for which monetary damages would be
inadequate relief. Therefore in addition to such other remedies as may be
available to a party hereunder or at law, a party whose confidential information
has been or is in immediate danger of being disclosed in violation of this
Section is entitled to the issuance of injunctive or other equitable relief by
any court of competent jurisdiction. To the maximum extent permitted by
applicable law, the parties hereby waive the necessity of the party seeking such
injunctive or other equitable relief to post a bond or other security to obtain
such relief. This Section 14 shall survive the termination of this Agreement for
a period of three years.

    

    
      	
              15.  

            	
              Miscellaneous

            

    

    
      	
              (a)  

            	
              Entire Agreement. This
      Agreement constitutes the entire agreement and understanding of the
      parties with respect to its subject matter and supersedes all oral
      communication and prior writings with respect
  thereto.

            

    

    

    
      	
              (b)  

            	
              Amendments and Waivers.
      No amendment, modification, or waiver in respect of this Agreement
      will be effective unless in writing (including a writing evidenced by a
      facsimile transmission) and executed by each of the parties or confirmed
      by an exchange of telexes, electronic messages, or
  e-mail.

            

    

    

    
      	
              (c)  

            	
              Survival of
      Obligations. Without prejudice to Section 4(b)(i)(3), the
      obligations of the parties under this Agreement will survive the
      termination of any Transaction.

            

    

    

    
      	
              (d)  

            	
              Remedies Cumulative.
      Except as provided in this Agreement, the rights, powers, remedies and
      privileges provided in this Agreement are cumulative and not exclusive of
      any rights, powers, remedies, and privileges provided by
    law.

            

    

    

    
      	
              (e)  

            	
              Counterparts. This
      Agreement (and each amendment, modification, and waiver in respect of it)
      may be executed and delivered in counterparts (including by facsimile
      transmission), all of which when taken together shall constitute an
      original.

            

    

    

    
      	
              (f)  

            	
              No Waiver of Rights. A
      failure or delay in exercising any right, power, or privilege in respect
      of this Agreement will not be presumed to operate as a waiver, and a
      single or partial exercise of any right, power, or privilege will not be
      presumed to preclude any subsequent or further exercise of
      that

            

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    
      	
              (g)  

            	
              right,
      power, or privilege or the exercise of any other right, power, or
      privilege.

            

    

    

    
      	
              (h)  

            	
              Headings. The headings
      used in this Agreement are for convenience of reference only and are not
      to affect the construction of or to be taken into consideration in
      interpreting this Agreement.

            

    

    

    
      	
              (i)  

            	
               Notices.

            

    

    

    
      	
              i.  

            	
              Effectiveness.
      Any notice or other communication in respect of this Agreement may be
      given in any manner set forth below (except that a notice or other
      communication under Section 8 or Section 13 may not be given by facsimile
      transmission or email) to the address or number or in accordance with the
      electronic messaging system or e-mail details provided (see the Schedule)
      and will be deemed effective as
indicated:

            

    

    

    
      	
              1.  

            	
              if
      in writing and delivered in person or by courier, on the date it is
      delivered;

            

    

    
      	
              2.  

            	
              if
      sent by telex, on the date the recipient’s answerback is
      received;

            

    

    
      	
              3.  

            	
              if
      sent by facsimile transmission, on the date that transmission is received
      by a responsible employee of the recipient in legible
  form;

            

    

    
      	
              4.  

            	
              if
      sent by certified or registered mail or the equivalent (return receipt
      requested), on the date that mail is delivered or its delivery is
      attempted; or

            

    

    
      	
              5.  

            	
              if
      sent by electronic messaging system or e-mail, on the date such electronic
      message or e-mail is received,

            

    

    unless
the date of that delivery (or attempted delivery) or that receipt, as
applicable, is not a Business Day or that communication is delivered (or
attempted) or received, as applicable, after 5:00 p.m. local time on a Business
Day, in which case that communication shall be deemed given and effective on the
first following day that is a Business Day.

    

    
      	
              ii.  

            	
              Change of
      Address. Either party may by notice to the other change the address
      or facsimile number, or electronic messaging system or e-mail details at
      which notices or other communications are to be given to
    it.

            

    

    

    
      	
              (j)  

            	
              Governing Law; Forum
      Selection. THIS
      AGREEMENT WILL BE GOVEREND BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
      THE STATE OF TEXAS WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES OF
      THE STATE OF TEXAS WHICH WOULD DIRECT THE APPLICATION OF
      THE

            

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    
      	
              (k)  

            	
              LAWS
      OF ANOTHER JURISDICTION OTHER THAN TEXAS. TO THE EXTENT THAT SECTION 13
      HEREOF IS DETERMINED TO BE PARTIALLY OR WHOLLY INVALID, THEN THE PARTIES
      AGREE THAT ANY DISPUTE INITIATED BY EITHER PARTY RELATED TO OR ARISING
      FROM THIS AGREEMENT OR ANY TRANSACTION, INCLUDING ANY DISPUTE RELATED TO
      THE CONFIDENTIALITY PROVISIONS HEREOF, SHALL BE BROUGHT ONLY IN A FEDERAL
      OR STATE COURT LOCATED IN DALLAS COUNTY, TEXAS,
  USA.

            

    

    

    
      	
              16.  

            	
              Definitions

            

    

    

    As used
in this Agreement:

    

    “Affected
Party” has the meaning specified in Section 7(a).

    

    “Affiliate”
means in relation to any party, any entity controlled, directly or indirectly,
by the party, any entity that controls, directly or indirectly, the party, or
any entity directly or indirectly under common control with the party. Control
means ownership of ten percent (10%) or more the voting power of such entity or
party.

    

    “Alternative
Floating Price Source” has the meaning specified in a Confirmation, if
any.

    

    “Business
Day” means a day on which national banks or their non-U.S. equivalent are
open for business in Dallas, Texas, and in the cities where the parties’
addresses are located as specified in the Schedule, but shall exclude any
Saturday or Sunday.

    

    “Consent”
means and includes consent, approval, action, authorization, exemption, notice,
filing, registration, or exchange control consent.

    

    “Costs”
means, with respect to a Non-Defaulting Party, brokerage fees, commissions, and
other similar transaction costs and expenses reasonably incurred by the
Non-Defaulting Party either in terminating any arrangement pursuant to which it
has hedged its obligation or entering into new arrangement which replace a
Transaction.

    

    “Defaulting
Party” has the meaning specified in Section 8(a).

    

    “Early
Termination Date” means the date determined in accordance with Section
8(a).

    “Event of
Default” has the meaning specified in Section 6.

    

    “Floating Price”
has the meaning specified in a Confirmation.

    

    “Floating Price
Source” has the meaning specified in a Confirmation.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    “Gains”
means, with respect to a Non-Defaulting Party, an amount equal to the present
value of the economic benefit, if any, (exclusive of Costs) to it resulting from
the termination of its obligations with respect to a Transaction, determined in
a commercially reasonable manner.

    

    “Interest Rate”
means (a) with respect to a Non-Defaulting Party, a per annum rate of
interest equal to the prime lending rate as may from time to time be published
in The Wall Street Journal under “Money Rates” and (b) with respect to a
Defaulting Party, a per annum rate of interest equal to two percent (2%) over
such prime lending rate; provided, however, in
either case, the Interest Rate may never exceed the maximum lawful rate under
applicable law.

    

    “Losses”
means with respect to a Non-Defaulting Party, an amount equal to the
present value of the economic loss, if any, (exclusive of Costs) to it resulting
from the termination of its obligations with respect to a Transaction,
determined in a commercially reasonably manner.

    

    “Market
Disruption Event” means, with respect to a Floating Price Source, any of
the following events (the existence of which shall be determined in good faith
by any party): (a) the failure of the Floating Price Source to announce or
publish information necessary for determining the Floating Price; (b) the
failure of trading to commence or the permanent discontinuance or material
suspension of trading in the relevant futures contract, options contract, or
commodity on the exchange of market acting as the Floating Price Source (the
“Exchange”); (c) the temporary or permanent discontinuance or unavailability of
any relevant Floating Price Source; (d) the imposition of trading limits by any
Exchange acting as the Floating Price Source such that there are limits on the
range within which the price of the relevant commodity may fluctuate in the
prompt month and the closing or settlement price of such commodity on such day
is at the upper or lower limit of that range; (e) a material change in the
formula for or the method of determining the Floating Price; or (f) a material
change in the content, composition, or constitution of the relevant
commodity.

    

    “Non-Defaulting
Party” has the meaning specified in Section 8(a).

    

    “Posting
Party” has the meaning specified in Section 4(b)(iv).

    

    “Potential Event
of Default” means any event which, with the giving of notice or the lapse
of time or both, would constitute an Event of Default.

    

    “Specified
Entity” has the meaning specified in the Schedule.

    

    “Termination
Event” has the meaning specified in Section 7.

    

    “Termination
Payment” has the meaning specified in Section 8(c).

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    “Trading
Day” means (a) in respect of a Transaction for which a Floating Price is
a price announced or published by an exchange, a day that is a trading day on
that exchange or (b) in respect of a Transaction for which a Floating Price is
not a price announced or published by an exchange, a day in respect of which the
relevant Floating Price Source published the relevant price.

    

    “Transaction”
means all swap, option, or other financially-settled derivative transactions
between the parties.

    

    

    IN
WITNESS WHEREOF, the parties have executed this Agreement on the respective
dates specified below to be effective on and after the Effective
Date.

    

    APOLLO
RESOURCES INTERNATIONAL, INC.

    

    

    

    By: /s/                      Dennis G. McLaughlin,
III                                                                

    Name:                      Dennis G. McLaughlin,
III                                                                

    Title:                      Chief Executive
Officer                                                      

    Date:                      January 1,
2008                                                      

    

    

    

    “Counterparty”

    ARIZONA
LNG, LLC

    

    

    

    By: /s/                      Darren L.
Miles                                                      

    Name:                      Darren L.
Miles                                                      

    Title:                      Chief Financial Officer of
parent, Earth LNG, Inc.

    Date:                      January 1,
2008                                                      

    

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    FORM
OF CONFIRMATION

    

    NOTE:
This Form of Confirmation is designed only for straight swaps of a single
commodity. If options, swaptions, spark spreads, or other derivatives are
entered into, this Form of Confirmation should be modified to fit the various
terms of such derivatives.

    

    *Swap
Start
Date:                                                      July
1, 2006

    

    *Swap
Termination
Date:                                                      June
30, 2007

    

    *Commodity:                                                      Natural
Gas

    

    *Notional
Quantity:                                                      See
Addendum

    

    
      	
              *Determination
      Period(s):

            	
              Calendar
      monthly periods, with the first Determination Period commencing on and
      including the Swap Start Date, and the final Determination Period ending
      on and including the Swap Termination
Date

            

    

    

    
      	
               
      

            	
              *Fixed
      Price Payor:

            

    

    

    
      	
               
      

            	
              *Floating
      Price Payor:

            

    

    

    
      	
              *Fixed
      Price:

            	
              See
      Addendum

            

    

    

    
      	
               
      

            	
              *Floating
      Price:

            

    

    

    
      	
              *Floating
      Price Source:

            	
              Inside
      FERC First of the Month Posting

            

    

    

    
      	
               
      

            	
              Alternative
      Floating Price Source:

            

    

    

    
      	
              *Payment
      Date(s):

            	
              The
      fifth (5th)
      Business Day following the date on which the Cash Settlement Amount is
      determinable for each relevant Determination
  Period

            

    

    

    
      	
              Cash
      Settlement Amount:

            	
              For
      each Determination Period, a U.S. Dollar amount, payable by either Fixed
      Price Payor or Floating Price Payor as
follows:

            

    

    

    
      	
               
      

            	
              If
      the Fixed Price is greater than the Floating Price, Fixed Price Payor
      shall pay Floating Price Payor for the relevant Determination Period:
      (Notional Quantity of relevant Determining Period) x (Fixed Price –
      Floating Price).

            

    

    
      	
               
      

            	
              If
      the Floating Price is greater than the Fixed Price, Floating Price Payor
      shall pay Fixed Price Payor for
the

            

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              relevant
      Determination Period: (Notional Quantity of relevant Determination Period)
      x (Floating Price – Fixed Price).

            

    

    

    
      	
               
      

            	
              If
      the Fixed Price equals the Floating Price, no Cash Settlement Amount is
      owed by either Fixed Price Payor or Floating Price
  Payor.

            

    

    

    
      	
               
      

            	
              Who
      Calculates the Cash

            

    

    
      	
              Settlement
      Amount:

            	
              Floating
      Price Payor will calculate in monthly intervals the Cash Settlement Amount
      within one (1) Business Day of the publication of the Floating Price and
      will provide written notice of such calculation to Fixed Price Payor. For
      the purposes of the calculation of the Floating Price, all numbers shall
      be rounded to three (3) decimal places. If the fourth (4th)
      decimal number is five (5) or greater, then the third (3rd)
      decimal number shall be increased by one (1), and if the fourth (4th)
      decimal number is less than five (5), then the third (3rd)
      decimal number shall remain unchanged. If Fixed Price Payor disagrees with
      the Cash Settlement Amount calculation made by Floating Price Payor, Fixed
      Price Payor must give written notice to Floating Price Payor, Fixed Price
      Payor must give written notice to Floating Price Payor within two (2)
      Business Days of receipt of the Cash Settlement Amount calculation
      provided by Floating Price Payor will be deemed correct in all respects.
      If Fixed Price Payor serves written notice of its disagreement with the
      calculation of the Cash Settlement Amount, such written notice must
      contain an explanation of why Fixed Price Payor disagrees with the
      calculation made by Floating Price Payor and an alternative calculation
      made by Fixed Price Payor. If Floating Price Payor and Fixed Price Payor
      are unable to agree on the calculation of the Cash Settlement Amount on or
      before the Payment Date, the undisputed amount will be paid by the
      responsible party and the disputed amount may be determined according to
      the arbitration provisions of Section 13 of the Master Swap Agreement.
      Notwithstanding anything herein to the contrary, the failure to pay the
      full Cash Settlement Amount as calculated by the Floating Price Payor by
      the Payment Date is an “Event of Default” as defined in Section 6(a) of
      the Master Swap Agreement.

            

    

    

    
      	
              Contractual
      Currency:

            	
              U.S.
      Dollars

            

    

    

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              SCHEDULE

            

    

    
      	
               
      

            	
              to
      the

            

    

    
      	
               
      

            	
              Master
      Swap Agreement

            

    

    

    
      	
               
      

            	
              Dated
      as of May 1, 2006

            

    

    

    By and
between Apollo Resources International, Inc., a Delaware corporation (“Apollo”)
and Arizona LNG, LLC (“Counterparty”)

    

    Part1.
Additional Definitions.

    

    “Affiliate”
shall have the meaning specified in Section 16 of this Agreement unless another
meaning is specified here: ________________________________

    

    “Specified
Entity” means in relation to Apollo:
_________________________;

    and in
relating to Counterparty ______________________________________.

    

    Part
2. Agreement to Deliver Documents.

    

    For the
purpose of Section 5(a) of this Agreement, each party agrees to deliver the
following documents, as applicable:

    

    Party
required
to                                           Form/Document/                                           Date
by
which                                           Covered
by

    Deliver
document                                           Certificate                                           to
be
delivered                                           Section
2(d)

    Representation

    

    _______________                                           ______________                                           _____________                                           Yes/     No

    _______________                                           ______________                                           _____________                                           Yes/     No

    _______________                                           ______________                                           _____________                                           Yes/     No

    _______________                                           ______________                                           _____________                                           Yes/     No

    _______________                                           ______________                                           _____________                                           Yes/     No

    

    Part
3. Addresses for Notice.

    

    For the
purpose of this Agreement:

    

    Address:
________________________________________________________________

    Attention:
_______________________________________________________________

    Facsimile
No.:
_______________________                                                                                                           Telephone
No.: ________________

    E-mail
address: __________________________________________________________

    

    Address
for notices or communications to Counterparty:

    Address:
________________________________________________________________

    Attention:
_______________________________________________________________

    Facsimile
No.:
_______________________                                                                                                           Telephone
No.: ________________

    E-mail
address:
__________________________________________________________

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    Part
4. Netting of Payments.

    

    The
parties elect that [either (x) all Transactions or (y) the following
Transactions] shall be netted against each other pursuant to Section 4(b)(iii)
of this Agreement.

    

    

    Part
5. Other Provisions.

    

    [THE
REMAINDER OF THIS PAGE, INTENTIONALLY LEFT BLANK]

    
      
         

      

      
        20exhibit1099a.htm

    

      

      

      

      

      

      

      

      

      ASSET
PURCHASE AGREEMENT

      

      By
and Among

      

      BLACKHAWK
BIOFUELS, LLC,

      

      RENEWABLE
ENERGY GROUP, INC.,

      

      BIOFUELS
COMPANY OF AMERICA, LLC,

      

      BIODIESEL
INVESTMENT GROUP, LLC

      

      and

      

      BUNGE
NORTH AMERICA, INC.

      

      

      Dated
as of March 14, 2008

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      

      TABLE
OF CONTENTS

      Page

      ]

      ARTICLE
I                                PURCHASE
AND SALE OF ASSETS

      Section
1.1                                      Purchase
and Sale

      Section
1.2                                      Consideration;
Purchase Price Allocation

      Section
1.3                                      Closing                                                                                                

      Section
1.4                                      Procedure
at Closing

      

      ARTICLE
II                                REPRESENTATIONS
AS TO THE COMPANY

      Section
2.1                                      Organization
and Good Standing

      Section
2.2                                      Noncontravention;
Authority; Enforceability

      Section
2.3                                      Subsidiaries

      Section
2.4                                      Title
to and Condition of the Assets

      Section
2.5                                      Real
Property

      Section
2.6                                      Material
Adverse Changes

      Section
2.7                                      Environmental
Compliance

      Section
2.8                                      Contracts
and Commitments

      Section
2.9                                      No
Litigation

      Section
2.10                           Tax
Matters                                                                                                          

      Section
2.11                           Compliance
with
Laws                                                                                                           

      Section
2.12                           Permits                                                                                                

      Section
2.13                           Insurance                                                                                                

      Section
2.14                           Employee
Matters                                                                                                           

      Section
2.15                           Benefit
Plans                                

      Section
2.16                           Intellectual
Property                                                                                                          

      Section
2.17                           Brokers                                                                                                

      Section
2.18                           Accuracy
of
Statements                                                                                                         

      Section 2.
19                                      Purchase
Entirely for Own Account

      Section
2.20                           Disclosure
of Information; Due Diligence

      Section
2.21                           Investment
Experience; Accredited Status

      Section
2.22                           Restricted
Securities                                           

      Section
2.23                           Investment
Company                                                      

      

      ARTICLE
III                                REPRESENTATIONS
OF REG AND THE PURCHASER

      Section
3.1                                      Organization
and Existence

      Section
3.2                                      Authority                                                                                                

      Section
3.3                                      Noncontravention

      Section
3.4                                      Capitalization;
REG Common
Stock                                                                           

      Section
3.5                                      Financial
Information                                                      

      Section
3.6                                      Undisclosed
Liabilities

      Section
3.7                                      Material
Adverse Changes

      Section
3.8                                      Brokers                                                                                                

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      ARTICLE
IV                                NO
ASSUMPTION OF LIABILITIES

      

      ARTICLE
V                                COVENANTS

      Section
5.1                                      Access
to Information

      Section
5.2                                      Pre-Closing
Activities

      Section
5.3                                      Efforts
to Consummate

      Section
5.4                                      Exclusive
Dealing19

      Section
5.5                                      Supplementation
and Amendment of Schedules

      Section
5.6                                      Confidentiality                                                                                             

      Section
5.7                                      Publicity                                                                                                

      Section
5.8                                      Preliminary
Testing; Performance Testing

      Section
5.9                                      Bunge
Oil Supply Agreement; Services Agreement

      Section
5.10                           Limitations
on Disposition and Legend

      

      ARTICLE
VI                                CONDITIONS
TO CLOSING

      Section
6.1                                      Conditions
to Obligations. of REG and the Purchaser

      Section
6.2                                      Conditions
to Obligations of the Sellers and the Company

      Section
6.3                                      Documents
to be Delivered at the Closing

      

      ARTICLE
VII                                INDEMNIFICATION

      Section
7.1                                      Indemnification
by the Sellers

      Section
7.2                                      Indemnification
by the Purchaser

      Section
7.3                                      Notice
and Defense of Third Party Claims

      Section
7.4                                      Limitations
of Liability

      Section
7.5                                      Survival                                                                                                

      Section
7.6                                      Waiver
of Certain Damages

      Section
7.7                                      Express
Negligence

      
 

      ARTICLE
VIII                                TERMINATION

      Section
8.1                                      Termination                                

      Section
8.2                                      Effect
of Termination; Liquidated
Damages                                                                                                

      

      ARTICLE
IX                                MISCELLANEOUS

      Section
9.1                                      Survival                                                                                                

      Section
9.2                                      Amendment
and Modification; Waiver

      Section
9.3                                      Notices                                                                                                

      Section
9.4                                      Further
Assurances

      Section
9.5                                      Assignment

      Section
9.6                                      Governing
Law

      Section
9.7                                      Severability

      Section
9.8                                      Counterparts                                

      Section
9.9                                      Facsimile
Signatures                                           

      Section
9.10                           No
Third-Party
Beneficiaries                                                                

      Section
9.11                           Interpretation                                                                                                           

      Section
9.12                           Entire
Agreement                                                                                                           

      

      Section
9.13                           Expenses                                                                                                

      Section
9.14                           Jury
Waiver                                

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      EXHIBITS
AND SCHEDULES

      

      Exhibit
A                                           Definitions

      Exhibit
B                                           Escrow
Agreement

      Exhibit
C                                           Oil
Feedstock Supply Agreement

      Exhibit
D                                           Services
Agreement

      Exhibit
E                                           Bill
of Sale

      Exhibit
F                                           Assignment
and Assumption Agreement

      Exhibit
G                                           Confidentiality
Agreement

      Exhibit
H                                           Stockholder
Agreement

      Exhibit
I                                           Registration
Rights Agreement

      Exhibit
J                                           Preliminary
Testing Description

      

      Schedule
2.2                                           Noncontravention

      Schedule
2.4                                           Title
to Assets

      Schedule
2.5(a)                                           Description
of Real Property

      Schedule
2.5(b)                                           Permitted
Liens

      Schedule
2.5(c)(vi)                                           Right
of First Offer, etc.

      Schedule
2.5(c)(viii)                                           Utilities
Exceptions

      Schedule
2.7                                           Environmental
Compliance

      Schedule
2.8(b)                                           Breach
of Assumed Contract

      Schedule
2.8(c)                                           Notice
of Claims Under Assumed Contract

      Schedule
2.8(d)                                           Consents
and Notices

      Schedule
2.11                                           Compliance
with Laws

      Schedule
2.12                                           Permits

      Schedule
2.13                                           Insurance

      Schedule
2.14                                           Employee
Matters

      Schedule
2.15                                           Benefit
Plans

      Schedule
2.16                                           Intellectual
Property

      Schedule
2.17                                           Brokers

      Schedule
3.5                                           REG
Financial Information

      Schedule
3.6                                           Undisclosed
Liabilities

      Schedule
4                                                      Assumed
Contracts

      Schedule
5.2                                           Pre-Closing
Activities

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      ASSET
PURCHASE AGREEMENT

      

      This Asset Purchase Agreement (the
"Agreement") is
made as of this 14th day of March, 2008 (the "Effective Date"), by
and among Blackhawk Biofuels, LLC, a Delaware limited liability company ("Purchaser"),
Renewable Energy Group, Inc., a Delaware corporation ("REG"), Biofuels
Company of America, LLC, an Illinois limited liability company (the "Company"), Biodiesel
Investment Group, LLC, a Delaware limited liability company ("BIG"), and Bunge
North America, Inc., a New York corporation ("Bunge", and together
with BIG, the "Members" and each, a
"Member" and Bunge, BIG and the Company together are referred to herein as
"Sellers" and each a "Seller"). Certain capitalized terms not defined in the
text of this Agreement are defined in Exhibit A attached
hereto.

      

      WHEREAS, the Company is constructing a
biodiesel production facility located in Danville, Illinois (the
"Facility");

      

      WHEREAS, BIG and Bunge own,
beneficially and of record, one hundred percent (100%) of the outstanding
membership interests of the Company (the "Company Membership
Interests");

      

      WHEREAS, the Purchaser desires to
purchase and assume from the Company, and the Members desire that the Company
shall sell, transfer and assign to the Purchaser, all of the Assets of the
Company, upon the terms and subject to the conditions set forth in this
Agreement;

      

      WHEREAS, a portion of the consideration
to be delivered consists of shares of common stock of REG; and

      

      WHEREAS, each of the parties hereto is
making certain representations, warranties, covenants and indemnities herein to
induce the others to enter into this Agreement.

      

      NOW, THEREFORE, in consideration of the
respective representations, warranties, covenants and indemnities contained
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company, the Members, REG and
the Purchaser hereby agree as follows:

      

      ARTICLE
I

      PURCHASE
AND SALE OF ASSETS

      

      Section 1.1  Purchase and
Sale. Subject to the terms and conditions of this Agreement, at the
Closing (as defined in Section1.3 hereof), the
Company agrees to sell, transfer, assign, convey and deliver to the Purchaser,
and the Purchaser agrees to purchase and assume from the Company, all of the
right, title and interest in and to the Assets (other than Excluded Assets),
free and clear of all Encumbrances except for Permitted Liens.

      

      Section 1.2  Consideration;
Purchase Price Allocation. In consideration of the purchase and sale
described above, Purchaser, and as to the common stock of REG in Sections 1.2 b and
1.2(c) only
REG, shall pay to the Company, in the manner and subject to the conditions set
forth below, the following (the "Purchase
Price"):

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      (a)                      Cash.
On the Closing Date, Purchaser shall pay (i) to the Company Five Million U.S.
Dollars (U.S. $5,000,000), by wire transfer of immediately available funds (the
"Cash Purchase
Price") and Bunge and BIG hereby agree as between themselves that upon
distribution by the Company to the Members of the Cash Purchase Price (less
appropriate reserves established by the Company, if any), Bunge shall
receive  [Dollars ($)] of the Cash Purchase Price and BIG shall
receive [Dollars ($)] of the Cash Purchase Price, and (ii) the IFA Payment to
the IFA by wire transfer of immediately available funds to such account as
designated by IFA;

      

      (b)                      REG
Common Stock. On the Closing Date, REG shall issue and cause to be delivered by
Purchaser to the Company, and Purchaser shall deliver to the Company One Million
Eight Hundred Eighty-two Thousand Nine Hundred Twenty-seven (1,882,927) shares
of the common stock of REG (the "REG Common Stock"),
as adjusted for any post-Effective Date dividend, stock split, recapitalization
or reorganization by REG, by delivery of REG Common Stock certificates to the
Company. Bunge and BIG hereby agree as between themselves that upon distribution
by the Company to the Members of the REG Common Stock (less appropriate reserves
established by the Company, if any), Bunge shall receive [___________(____)]
shares of REG Common Stock and BIG shall receive [______________(_______)]
shares of REG Common Stock;

      

      
        	
                (c)

              	
                Escrow.
      On the Closing Date, Purchaser shall deposit Two Hundred Fifty Thousand
      Dollars ($250,000) (the "Escrowed Cash")
      and REG shall deposit Ninety-Seven Thousand Five Hundred Sixty-One
      (97,561) shares of the common stock of REG, as adjusted for any
      post-Effective Date dividend, stock split, recapitalization or
      reorganization by REG by delivery of stock certificates in the name of the
      Company (the "Escrowed Stock"
      and together with the Escrowed Cash, the "Escrow Amount")
      into an escrow account (the "Escrow Fund"),
      to be maintained by an escrow agent reasonably acceptable to the parties
      (the "Escrow
      Agent") in accordance with the terms of an Escrow Agreement in the
      form attached hereto as Exhibit B (the
      "Escrow
      Agreement"). The Escrow Fund shall be used for the purpose
      specified in Article VII herein. The Escrow Fund (less any amounts for
      indemnifiable Losses to the extent set forth in Article VII and the Escrow
      Agreement) shall be disbursed to the Company in accordance with the terms
      of the Escrow Agreement on the one year anniversary of the Closing Date.
      Purchaser and the Company shall bear an equal portion of the fees and
      expenses of the Escrow Agent, with the portion borne by the Company to be
      deducted from the Escrow Fund. Bunge and BIG hereby agree as between
      themselves that upon distribution by the Company to the Members of the
      Escrow Fund (less appropriate reserves established by the Company, if
      any), Bunge shall receive ___% of the Escrowed Cash and ___% of the
      Escrowed Stock and BIG shall receive ___% of the Escrowed Cash and ___% of
      the Escrowed Stock; provided, that a Member's percentage of the Escrow
      Fund shall be reduced by the amount of any indemnifiable Loss made
      pursuant to the terms of the Escrow Agreement and this Agreement
      applicable to such Member.

              

      

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      
        	
                (d)

              	
                Balance
      Differential Payment. In the event the outstanding principal balance,
      together with any accrued, but unpaid interest, owed by the Company to
      Fifth Third Bank under the Construction Loan Agreement (the "Bank Balance")
      [to be discussed - plus the Assumed Liabilities less the DCEO Grant
      Credit] (collectively, the "Closing
      Indebtedness") is less than $24,650,000 as of the Closing Date,
      Purchaser shall pay to the Company on the Closing Date the difference
      between $24,650,000 and the Closing Indebtedness in cash by wire transfer
      of immediately available funds (the "Balance Differential
      Payment"). Bunge and BIG hereby agree as between themselves that
      Bunge shall receive 22.2% of the Balance Differential Payment and BIG
      shall receive 77.8% of the Balance Differential Payment. To determine the
      Balance Differential Payment, if any, the Company shall deliver to
      Purchaser (i) a statement of account from Fifth Third Bank of the Bank
      Balance as of the Closing Date, and (ii) a statement of the Assumed
      Liabilities as of the Closing Date, together with supporting
      documentation. The amount of the Bank Balance plus Assumed Liabilities
      less the DCEO Grant Credit shall not exceed
  $24,650,000.

              

      

      

      
        	
                (e)

              	
                Purchase
      Price Allocation. The Purchase Price shall be allocated among the Assets
      as the Company, the Members, Purchaser and REG shall mutually agree, in
      writing, at the Closing. After the Closing, the Company, the Members and
      Purchaser shall make consistent use of such mutually agreed allocation for
      all tax purposes and in all filings, declarations and reports with the IRS
      in respect thereof. Purchaser shall prepare and deliver IRS Form 8594 to
      the Company in accordance with such mutual agreement within forty-five
      (45) days after the Closing Date for filing with the
  IRS.

              

      

      

      
        	
                (f)

              	
                Value
      of the Common Stock of REG. The parties hereto agree that the common stock
      of REG making up the REG Common Stock delivered at Closing and the
      Escrowed Stock shall be valued at the greater of $10.25 per share and its
      Fair Market Value for all purposes under this Agreement, including without
      limitation, any purchase price allocations and any agreement or right of
      the Members or the Company to satisfy their indemnification obligations
      under Article VII by the surrender of the common stock of
    REG.

              

      

      

      Section
1.3  Closing. Subject to satisfaction or waiver of the
conditions to closing set

      forth in
Sections 6.1 and 6_2, the closing of the purchase provided for in Section 1.1 of
this

      Agreement
(the "Closin ") shall take place at the offices of Nyemaster, Goode, West,
Hansell &

      O'Brien,
P.C., counsel to REG, in Des Moines, Iowa at 10:00 a.m. local time on the
next

      Business
Day after the conditions to closing set forth in Sections 6.1 and 6.2 have been
satisfied

      or
waived, or at such other place and time as may be mutually agreeable to the
Company, the

      Members,
REG and the Purchaser (such date and time referred to herein as the "Closing
Date").

      The
parties anticipate the Closing Date to occur on or before April 11, 2008 (the
"Target Closing

      Date").

      

      Section 1.4  Procedure at
Closing. At the Closing, the parties agree that the
following

      shall
occur:

      

      (a) Each of the conditions precedent
(as applicable) in Section
6.1  shall have been satisfied, or such condition(s) shall have
been expressly waived in writing by the

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      Purchaser
and REG. The Company and/or the Members shall deliver to Purchaser and REG all
of the documents in Section
6.3.

      

      (b) Each of the conditions precedent
(as applicable) in Section 6.2 shall
have been satisfied, or such condition(s) shall have been expressly waived in
writing by the Company and the Members. REG and the Purchaser shall deliver to
the Members and the Company all of the documents required in Section
6.3.

      

      ARTICLE
II

      REPRESENTATIONS
AS TO THE COMPANY

      

      Each Seller, severally as to itself
only and not jointly as to or with any of the others, respectively, represents
and warrants to the Purchaser as follows:

      

      Section 2.1  Organization
and Good Standing. The Company is a limited liability company duly
organized and validly existing under the laws of the State of Illinois and has
all requisite power and authority to carry on its business as is now being
conducted and as is presently anticipated being conducted, and with respect to a
Member, such Member is duly organized, validly existing and in good standing
under the laws of the state of its organization. The Company is not qualified as
a foreign limited liability company in any other jurisdiction. The Company has
at all times been operated in material compliance with applicable Legal
Requirements and the Company's Organizational Documents.

      

      Section
2.2  Noncontravention; Authority; Enforceability. Except as
disclosed on Schedule
2.2 of the Company Disclosure Schedule, neither the execution and
delivery by such Seller of this Agreement and the Transaction Documents, as
applicable, nor the consummation of the transactions contemplated hereby or
thereby, nor compliance with any of the provisions hereof or thereof, will (a)
violate any provision of its Organizational Documents or any resolutions adopted
by its members, stockholders, board of managers or board of directors, (b)
result in a violation of any license, permit, order, writ, injunction, decree,
judgment, or ruling of any court or Governmental Authority, or any law, rule, or
regulation applicable to such Seller, (c) conflict with, result in a breach of,
or constitute (or, with due notice or lapse of time or both, would constitute) a
default under, or give rise to any right of termination, acceleration or
cancellation under, any indenture, agreement, contract, license, arrangement,
understanding, evidence of indebtedness, note; lease or other instrument which
constitutes an Asset or to which such Seller or any of the Assets is bound, (d)
result in the creation or imposition of any lien (other than Permitted Liens),
charge, restriction, claim or Encumbrance of any nature whatsoever upon the
Company or the Assets or (e) require any consent or approval of, or notice to,
or filing or registration with, any Person, except for those consents,
approvals, notices, filings, or registrations that have been obtained, given, or
made, as the case may be, and that are unconditional and in full force and
effect. Such Seller has the requisite corporate or limited liability company
power and authority to execute and deliver this Agreement and the Transaction
Documents to which such Seller is a party, to perform its obligations hereunder
and thereunder, and to consummate the transactions contemplated by .this
Agreement and the Transaction Documents. The Company has authorized and approved
by all requisite action of the Board of Managers and members of the Company,
this Agreement, the Transaction Documents and the transactions contemplated
hereby and thereby. The execution, delivery and performance by
such

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      Seller of
this Agreement and the Transaction Documents, as applicable, and the
consummation by such Seller of the transactions contemplated hereby and thereby
have been duly and validly authorized by all necessary corporate or limited
liability company action. This Agreement and the Transaction Documents to which
such Seller, as applicable, is a party have been duly executed and delivered by
such Seller and are the valid and binding obligations of such Seller enforceable
against such Seller in accordance with the terms hereof and thereof, except as
enforceability may be limited by bankruptcy, insolvency, moratorium, fraudulent
conveyance and other similar laws affecting creditors' rights generally and by
general principles of equity.

      

      Section
2.3  Subsidiaries. The Company does not own, directly or
indirectly, any interest in any other Entity.

      

      Section 2.4  Title to and
Condition of the Assets.

      

      (a)                      The
Company has, and at the Closing shall transfer to Purchaser, good and marketable
title to the Assets, including without limitation the Assets described on Schedule 2.4, free
and clear of all. Encumbrances other than Permitted Liens. With respect to those
assets which are leased, except as set forth on Schedule 2.4, the
Company is in compliance with each such lease and holds a valid leasehold
interest, free and clear of all Encumbrances other than Permitted Liens. As of
the Closing Date, the tangible Assets shall be in sound operating condition and
repair, normal wear and tear excepted.

      

      (b)                      As
of the Closing Date, the Assets set forth on Schedule 2.4
constitute all of the assets which have been delivered to the Facility under the
Fagen Agreement and the De Smet Agreement.

      

      Section 2.5  Real
Property.

      

      (a)           The
Company does not own any real property. Schedule 2.5(a) of
the Company Disclosure Schedule contains a legal description of each parcel of
real property that the Company leases, subleases, licenses, occupies, or uses in
connection with the operation of the business of the Company as presently
conducted or proposed to be conducted upon completion of the Facility (the
"Real
Property"). The parcels of Real Property which are leased or subleased by
the Company and which leases or subleases will be assigned to Purchaser at the
Closing, as identified on Schedule 2.5(a), are
referred to herein as "Leased Real
Property", and the parcels of Real Property which are licensed or
sublicensed by the Company and which will be assigned to Purchaser, as
identified on Schedule
2.5(a), are referred to herein as "Licensed Real
Property". Except as set forth on Schedule 2.5(a) of
the Company Disclosure Schedule, no right to use or occupy any portion of the
Leased Real Property has been granted to any Person other than Company nor are
there any parties in possession of any portion of the Leased Real Property,
whether as tenants, subtenants, trespassers or otherwise, except the
Company.

      

      (b)           The
Company has a valid leasehold interest in the Leased Real Property, free and
clear of all Encumbrances, other than Permitted Liens. To the Knowledge of the
Company, the Company has a valid license or sublicense to occupy and use the
Licensed Real Property. Schedule 2.5 (b) of
the Company Disclosure Schedule describes all 

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       all
lawful claims that, if unpaid, could become an Encumbrance against the Leased
Real Property or any portion thereof.

      

      (c)           With
respect to each parcel of Leased Real Property and the buildings, structures,
improvements and fixtures thereon:

      

      
        	
                (i)

              	
                No
      condemnation or eminent domain taking of the Leased Real Property, or any
      portion thereof, has occurred. There is no pending, and to the Knowledge
      of the Company, threatened or contemplated, appropriation, condemnation,
      eminent domain or like proceeding affecting the Leased Real Property or
      any part thereof or of any sale or other disposition of the Leased Real
      Property or any part thereof in lieu of
  condemnation.

              

      

      

      (ii)                 Except
for assessments occurring on a regular basis in accordance with applicable Legal
Requirements, there is no pending or, to the Knowledge of the Company,
contemplated reassessment of any parcel included in the Leased Real Property
that is reasonably expected to increase the real estate tax assessment for such
properties.

      

      (iii) There is no pending, or to the
Knowledge of the Company, contemplated proceeding to rezone any parcel of the
Leased Real Property. To the Knowledge of the Company, the uses for which each
parcel of the Leased Real Property are zoned do not restrict, or in any manner
impair, the current use of the Leased Real Property or the proposed use by the
Purchaser. To the Knowledge of the Company, the Company has not received notice
of any violation of any applicable zoning law, regulation or other Legal
Requirement, related to or affecting the Leased Real Property.

      

      
        	
                 
      

              	
                (iv)
      To the Knowledge of the Company, all buildings, structures and other
      improvements on the Leased Real Property, including but not limited to
      driveways, garages, landscaped areas and sewer systems, and all means of
      access to the Leased Real Property, are located completely within the
      boundary lines of the Leased Real Property and do not encroach upon or
      under the property of any other Person or entity. No buildings, structures
      or improvements constructed on the property of any other Person encroach
      upon or under the Leased Real
Property.

              

      

      

      
        	
                (v)

              	
                To
      the Knowledge of the Company, the use of the Leased Real Property, or any
      portion thereof, does not violate or conflict with (i) any covenants,
      conditions or restrictions applicable thereto or (ii) the terms and
      provisions of any contractual obligations relating
  thereto.

              

      

      

      
        	
                 
      

              	
                (vi)
      Except as set forth on Schedule
      2.5(c)(vi) of the Company Disclosure Schedule, none of the Leased
      Real Property is subject to any right of first offer, right of first
      refusal, option or other agreement for the sale or lease
      thereof.

              

      

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      
        	
                (vii)

              	
                The
      Company has good and valid rights of ingress and egress to and from all of
      the Leased Real Property (including between separate parcels included
      within the Leased Real Property) from and to pipelines (including, but not
      limited to, pipelines to access the rail loading area) and the public
      street systems for all usual street, road and utility purposes and other
      purposes necessary or incidental to the operation of the business of the
      Company conducted or proposed to be conducted upon completion of the
      Facility.

              

      

      

      
        	
                 
      

              	
                (viii)
      Except as set forth on Schedule 2.5
      (c)(viii) of the Company Disclosure Schedule, to the Knowledge of
      the Company, all utilities required for or useful in the operation of the
      business of the Company either enter the Leased Real Property through
      adjoining streets and roads, or if they pass through adjoining private
      land, they do so in accordance with valid public easements. All necessary
      utilities (including without limitation, water, sewer, electricity and
      telephone facilities) are available to the Leased Real Property and there
      exists, to the Knowledge of the Company, no proposed limitation in or
      reduction of the quality or quantity of utility services to be furnished
      to the Leased Real Property. Permanent adequate sewage and water systems
      and connections are available to the Leased Real Property as currently
      operated.

              

      

      

      
        	
                 
      

              	
                (ix)
      No Proceeding is pending or, to the Knowledge of the Company, is
      threatened, to revoke, suspend, modify or limit any of the permits
      required under applicable Legal Requirements with respect to its leasehold
      interest in and use and occupancy of, the Leased Real Property. Except as
      set forth on Schedule 2.8(d)
      of the Company Disclosure Schedule, no Permit will be subject to
      revocation, suspension, modification or limitation as a result of this
      Agreement or the consummation of the transactions contemplated
      hereby.

              

      

      

      Section 2.6  Material
Adverse Changes. Since December 31, 2007, there has been no, and no event
has had or reasonably could be anticipated to have a, Material Adverse Effect
with respect to the Company or the Assets. Without limiting the generality of
the foregoing, since December 31, 2007, none of the following has
occurred:

      

      
        	
                (a)

              	
                any
      destruction, damage to or loss of any Asset (whether or not covered by
      insurance), which individually exceeds $20,000

              	
                in
      value or in the aggregate exceeds $50,000 in
  value;

              

      

      

      
        	
                (b)

              	
                any
      act or omission to do any act which would cause the breach of any material
      term or material obligation applicable to the Company under any Assumed
      Contract;

              

      

      

      
        	
                (c)

              	
                any
      execution, creation, amendment or termination of any material contract,
      agreement or license or any other transaction relating to the Assets,
      except in the ordinary course of business of the Company or except as
      otherwise agreed to in writing by Purchaser and
  REG;

              

      

      

      (d)           any
notice of any litigation or claim relating to the Company or the
Assets;

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      
        	
                (e)

              	
                any
      waiver or release of any material right or claim with respect to the
      Assets, except in the ordinary course of business of the
      Company;

              

      

      

      
        	
                (f)

              	
                any
      mortgage, pledge or other encumbrance on any Asset other than Permitted
      Liens; or

              

      

      

      (g)           any
agreement by Sellers to do any of the foregoing.

      

      Section 2.7 Environmental
Compliance

      

      
        	
                (a)

              	
                None
      of the Company or the Assets are subject to any past, existing, pending,
      or threatened action, suit, investigation, claim, demand, directive,
      inquiry, or proceeding by any Governmental Authority or any other Person
      alleging liability or responsibility in connection with Hazardous
      Materials, or under any Legal Requirement pertaining to health, the
      environment, or the regulation of Hazardous Materials (as defined below)
      (collectively, "Environmental
      Laws"), nor is any of them otherwise subject to any remedial or
      other obligation or liability (including without limitation STRICT LIABILITY) under
      Environmental Laws. There is no condition, fact, situation or event that
      currently constitutes or with the passage of time would constitute a
      violation by the Company of, or result in liability (including without
      limitation STRICT
      LIABILITY) of the Company or the Assets under, Environmental Laws.
      The Company and the Assets have complied and are in compliance with all
      Environmental Laws.

              

      

      

      
        	
                (b)

              	
                Each
      of the statements set forth in clauses (i) and (ii) below is true and
      correct with respect to the Company and the
  Assets:

              

      

      

      
        	
                (i)

              	
                all
      Governmental Authorizations, if any, required to be obtained or filed
      pursuant to Environmental Laws in connection with the operations,
      activities, uses, vehicles, equipment or facilities at, on, in or, under,
      such Assets or otherwise of the Company, including, without limitation,
      for the past or present treatment, storage, handling, use, discharge or
      "Release"
      (which includes any spilling, leaking, pumping, pouring, emitting,
      emptying, discharging, injecting, escaping, leaching, dumping, or
      disposing) of any pollutant, contaminant, solid waste, hydrocarbon, toxic
      or hazardous substance or waste, any flammable, corrosive, explosive, or
      radioactive materials or any other material, waste, or substance regulated
      under the Environmental Laws (a "Hazardous
      Material") into the environment or indoor air, or any filling,
      dredging, discharging into, or other uses or activities on or affecting
      water of the United States, including wetlands (as defined under the
      Federal Clean Water Act and 33 C.F.R. §328.3) ("Environmental
      Permits"), have been duly obtained and are in good standing; and
      the Company and the Assets have all pollution control equipment necessary
      to comply with all Environmental Permits and Environmental Laws, and have
      timely filed applications for renewal of all Environmental Permits and has
      no reason for belief that such Environmental Permits or renewals thereof
      will be subject to any new or changed conditions;
  and

              

      

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      
        	
                (ii)

              	
                there
      have been no (A) Releases or threatened Releases of Hazardous Materials,
      and no Hazardous Materials are present in quantities or concentrations
      exceeding any applicable standard under Environmental Laws, at, in, under,
      on or affecting any of the Assets, nor (B) Releases or threatened Releases
      on or to any other properties of any Hazardous Materials generated or
      produced on or at, or transported from, the Assets or by or on behalf of
      the Company that would violate or create liability (including, without
      limitation, STRICT
      LIABILITY) under Environmental
Laws.

              

      

      

      
        	
                (c)

              	
                The
      Company has provided accurate and complete copies of all Environmental
      Permits, and all environmental reviews, investigations and/or assessments
      in the possession of the Company or such Member or otherwise conducted by
      or on behalf of the Company or such Member, with respect to the Company
      and/or the Assets. Each such Environmental Permit, review, investigation
      or assessment is described on Schedule 2.7 of
      the Company Disclosure Schedule.

              

      

      

      Section 2.8  Contracts and
Commitments.

      

      
        	
                (a)

              	
                The
      Assumed Contracts are valid and in full force and effect and constitute
      the legal, valid, and binding obligations of the Company, and to the
      Knowledge of the Company, each other party thereto, and true and correct
      copies of which, including, but not limited to, any amendment,
      modification or waiver thereof, have been provided to REG or the
      Purchaser.

              

      

      

      
        	
                (b)

              	
                The
      Company (i) has performed all the obligations required to be performed by
      it to date in all material respects (or has received a valid, enforceable
      and irrevocable written waiver with respect to its non-performance) and
      (ii) has received no notice of default and is not in default in any
      material respect (or, with due notice or lapse of time or both, would be
      in default) under any Assumed Contract. Except as set forth on Schedule 2.8(b)
      of the Company Disclosure Schedule, the Company has no present expectation
      or intention of terminating or not materially performing any of its
      obligations under any Assumed Contract, and the Company has no Knowledge
      of any breach or anticipated breach by the other party to any Assumed
      Contract.

              

      

      

      
        	
                (c)

              	
                Except
      as set forth on Schedule

              	
                2.8 (c) of the
      Company Disclosure Schedule, (i) no previous or current party to any
      Assumed Contract has given written notice to the Company or such Member
      of, or made any claim with respect to, a desire or intention to exercise
      any optional termination, cancellation, non-renewal or acceleration right
      thereunder, and the Company has no Knowledge of any notice of, or claim
      with respect to, any such desire or intention and (ii) the Company has not
      given written notice to any previous or current party to any Assumed
      Contract of, nor made any claim with respect to, a desire or intention to
      exercise any optional termination, cancellation, nonrenewal or
      acceleration right thereunder.

              

      

      

      
        	
                (d)

              	
                No
      consent or approval of or notice to any third party pursuant to any
      Assumed Contract is required to be obtained or made by or with respect to
      the Company in connection with the execution, delivery and performance of
      any transaction

              

      

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      contemplated
by this Agreement or any other Transaction Documents except as set forth in
Schedule 2.8(d)
of the Company Disclosure Schedule ("Required
Consents").

      

      Section 2.9   No
Litigation. There are no Proceedings pending or, to the Knowledge of the
Company, threatened against the Company or involving any of the Assets. Neither
the Company nor any of the Assets are subject to any judgment, order, writ,
injunction, or decree of any Governmental Authority. There are no Proceedings
pending, or to the Knowledge of the Company, threatened seeking to restrain,
prohibit, or obtain damages in connection with this Agreement or the
transactions contemplated hereby.

      

      Section 2.10   Tax
Matters. The Company has filed or caused to be filed on or before their
due date all Tax Returns that they are required to file and have paid all Taxes
due and payable on such Tax Returns or on any assessments made against the
Company or any of the Assets and all other Taxes imposed on the Company or any
of the Assets (except for Tax Returns for which valid extensions have been
obtained and are in force). All such Tax Returns were and will be accurate,
correct and complete in all material respects and were prepared in the manner
required by applicable laws. For all periods (or portions thereof) ending on or
before the Closing Date for which Tax Returns are not yet due, the Company has
either paid or adequately reserved for Taxes accrued for such periods. There are
no Tax liens upon any of the Assets, other than liens for Taxes not yet due and
payable and there is no threatened audit, dispute or claim that might result in
a lien on any of the Assets. There are no audits, disputes, claims or threatened
assessments concerning any Tax liability of the Company or that are related to
the Assets. The Company is a pass-through entity treated as a partnership for
federal, state and local income tax purposes. As of the date of this Agreement,
the Company has not commenced operations and has filed no income Tax Returns.
The Company has withheld and paid all Taxes required to have been withheld and
paid in connection with amounts paid or owing to any employee, independent
contractor, creditor, or other third party. The Company has made all deposits
required with respect to Taxes due and payable by the Company.

      

      Section
2.11   Compliance with Laws. Except as set forth on Schedule 2.11 of the
Company Disclosure Schedule, the Company is, and at all times since its
formation has been, in material compliance with all Legal Requirements
applicable to the Company or to the ownership or operation of the Assets or the
operation of its business, and has no basis to expect, nor has it received any
Order, notice, or other communication from any Governmental Authority of any
alleged, actual, or potential material violation and/or failure to materially
comply with any Legal Requirement applicable to the Company or to the ownership
or operation of the Assets.

      

      Section
2.12  Permits. Except as set forth on Schedule 2.12 of the
Company Disclosure Schedule, the Company has obtained all material Governmental
Authorizations required to permit them to (a) develop and construct a biodiesel
operating facility, (b) own, operate, use, and maintain the Assets in the manner
in which they are now operated and maintained, or (c) to conduct its business as
now being conducted, including, without limitation, all Environmental Permits.
Schedule 2.12
sets forth a true, correct and complete list of all such Governmental
Authorizations, copies of which have previously been delivered by the Company to
Purchaser or REG. Except as set forth on Schedule 2.12 of the
Company Disclosure Schedule, all required filings with respect to such
Governmental Authorizations have been made timely. Except as set forth on Schedule 2.12 of the
Company Disclosure Schedule, all such Governmental

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      Authorizations
are in full force and effect and there are no Proceedings pending or, to the
Knowledge of the Company, threatened that seek the revocation, cancellation,
suspension or other materially adverse modification thereof. No consent,
license, permit, authorization or order of, or registration, declaration or
filing with or of any Governmental Authority or other issuer of any permit is
required to be obtained or made by or with respect to the Company in connection
with the execution, delivery and performance of any transactions contemplated by
this Agreement or any of the Transaction Documents except as set forth on Schedule 2.12 of the
Company Disclosure Schedule.

      

      Section
2.13  Insurance. Schedule 2.13 of the
Company Disclosure Schedule sets forth all insurance policies owned or held by
the Company as in effect on the Effective Date and which shall be maintained
through the Closing Date. All policies of fire, liability, casualty and other
forms of insurance owned or held by the Company: (a) are sufficient for
compliance with all requirements of law and of all agreements of the. Company,
(b) are valid, outstanding and enforceable policies, and (c) will not in any way
be affected by, or terminate or lapse by reason of, the transactions
contemplated by this Agreement.

      

      Section. 2.14  Employee
Matters. The only individual retained by the Company to perform services
is Mark A. Burke, who serves as its President and is an independent contractor
and not an employee of the Company. Mr. Burke is subject to at will termination
at any time, with or without cause, and for any reason or no reason, without the
payment of any severance payment or other amount except accrued salary at the
rate specified on Schedule 2.14 of the
Company Disclosure Schedule and except that Mr. Burke is entitled to receive a
payment in connection with the consummation of the transactions contemplated by
this Agreement, as described on Schedule 2.14 of the
Company Disclosure Schedule, which payment shall be paid directly by the Members
or the Company. The Company is not a party to any collective bargaining
agreements or union contracts. The Company has not received notice of any claim
that it has not complied with any laws relating to the employment of labor,
including any provisions thereof relating to wages, hours, collective
bargaining, the payment of social security and similar taxes, equal employment
opportunity, employment discrimination, or employment safety, or that the
Company is liable for any arrears of wages or any taxes or penalties for failure
to comply with any of the foregoing. The Company is in compliance with all
applicable legal requirements respecting employment, employment practices,
labor, terms and conditions of employment and wages and hours.

      

      Section 2.15  Benefit
Plans. Except as set forth on Schedule 2.15 of the
Company Disclosure Schedule, the Company is not a party to and has no
liabilities in respect of, or under, any employee benefit plan (as such term is
defined in Section 3(3) of ERISA), any employee pension benefit plan (as such
term is defined in Section 3(2) of ERISA, including without limitation any
multiemployer pension plan within the meaning of Section 3(37) of ERISA), any
deferred compensation arrangement, any bonus, incentive compensation, employment
agreement, severance agreement, or any other similar type of plan, program or
arrangement providing for employee benefits ("Employee Benefit
Plans").

      

      Section 2.16 Intellectual
Property.                                                                                Schedule
2.16                                of
the Company Disclosure Schedule sets forth all Intellectual Property Assets that
the Company owns, uses or licenses in its business. The Company owns or licenses
all Intellectual Property Assets necessary to operate its

      business
as presently conducted or intended to be conducted upon completion of the
Facility. To the Knowledge of the Company, there is no intellectual property of
any third party that infringes any of the Intellectual Property Assets owned by
the Company. None of the Intellectual Property Assets owned or used by the
Company infringe upon or, to the Knowledge of the Company, is alleged to
infringe upon, any intellectual property right of any other person or
entity.

      

      Section
2.17  Brokers. Except as set forth on Schedule 2.17 of the
Company Disclosure Schedule, neither the Company nor such Member has paid or
become obligated to pay any fee or commission to any broker, finder,
intermediary, advisor, consultant, or appraiser for or on account of the
transactions contemplated by this Agreement and the Transaction
Documents.

      

      Section 2.18  Accuracy of
Statements. Neither this Agreement nor any schedule, exhibit, statement,
list, document, certificate or other information furnished or to be furnished by
or on behalf of the Company or such Member to the Purchaser or REG in connection
with this Agreement or any of the transactions contemplated by this Agreement
contains any untrue statement of a material fact or omits to state a material
fact necessary to make the statements contained herein or therein, in light of
the circumstances in which they are made, not misleading.

      

      Section 2.19  Purchase
Entirely for Own Account. The REG Common Stock to, be

      received
by the Company and such Member is and will be acquired for investment for its
own

      account
and not with a view to the distribution of any part thereof, and the Company has
no

      present
intention of selling, granting any participation in, or otherwise distributing
the same;

      provided,
however, that the Company reserves the right to distribute its shares of REG
Common

      Stock to
its Members subject to Section 5.10 hereof
and the terms and conditions of the

      Stockholder
Agreement.

      

      Section 2.20  Disclosure of
Information; Due Diligence. The Company and such Member has had the
opportunity to ask questions of and receive answers from REG regarding REG and
the terms and conditions of the offering of the REG Common Stock and to obtain
additional information necessary to verify the accuracy of the information
supplied or to which it had access. Such Seller acknowledges and agrees that the
Purchaser does not assume any responsibility or liability with respect to the
REG Common Stock or the information provided with respect to REG, the REG Common
Stock or the investment therein by the Company represented by the consideration
received by the Company hereunder. Such Seller further acknowledges and agrees
that the Purchaser is not acting as an underwriter with respect to the REG
Common Stock and assumes no underwriters' liability in connection
therewith.

      

      Section 2.21  Investment
Experience; Accredited Status. The Company and such Member acknowledge
that an investment in REG is a speculative risk. The Company and such Member are
able to fend for themselves in the transactions contemplated by this Agreement,
can bear the economic risk of its investment (including possible complete loss
of such investment) for an indefinite period of time and has such knowledge and
experience in financial or business matters that it is capable of evaluating the
merits and risks of the investment in REG. The Company and such Member
understand that the shares of REG Common Stock to be purchased hereunder have
not been registered under the Securities Act, or under the securities laws of
any jurisdiction, by reason of reliance upon certain exemptions, and that the
reliance on such exemptions is predicated, in part, upon the accuracy of the
Member's representations and

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      warranties
in this Article III. The Company and such Member are familiar with Regulation D
promulgated under the Securities Act and represent that they are each an
"accredited investor" as defined in Rule 501(a) of such Regulation
D.

      

      Section 2.22  Restricted
Securities.                                                                                The
Company and such Member understand that the shares of REG Common Stock to be
received by the Company and such Member hereunder are characterized as
"restricted securities" under the federal securities laws inasmuch as they are
being acquired from REG through the Purchaser in a transaction not involving a
public offering and that under such laws and applicable regulations such
securities may be resold without registration under the Securities Act only in
certain limited circumstances and in accordance with the terms and conditions
set forth in the legend contained on the certificates of the REG Common Stock.
The Company and such Member represent that they are familiar with SEC Rule 144,
as presently in effect, and understand the resale limitations imposed thereby
and by the Securities Act.

      

      Section 2.23  Investment
Company. The Company and such Member (or any Person directly or
indirectly controlling the Company and such Member or on whose behalf
the

      Company
is acting) are not, and by virtue of the consummation of the transactions
contemplated

      herein
will not be, an "investment company" within the meaning of the Investment
Company Act

      of 1940,
as amended, or an exemption or exclusion from the registration provisions under
the

      Investment
Company Act of 1940, as amended, is available to the Company, such Member
or

      any such
Person.

      

      ARTICLE
III

      REPRESENTATIONS
OF REG AND THE PURCHASER

      

      Each of REG and the Purchaser,
severally as to itself only and not jointly as to or with the other,
respectively, represents and warrants to the Sellers as follows:

      

      Section
3.1   Organization and Existence. REG and the Purchaser
are each duly organized, validly existing and in good standing under the laws of
their jurisdiction of incorporation or organization, respectively, and have all
requisite power and authority to carry on their respective businesses as now
being conducted.

      

      Section
3.2  Authority. All corporate, limited liability company or
other appropriate action on the part of REG and the Purchaser necessary for the
authorization, execution and delivery of this Agreement and the Transaction
Documents contemplated hereby to which REG or the Purchaser, respectively, is a
party, and the performance of the obligations of REG and the Purchaser hereunder
and thereunder, have been taken. REG and the Purchaser have each duly and
validly executed and delivered this Agreement and each of the Transaction
Documents contemplated hereby to which REG or the Purchaser, respectively, is a
party. This Agreement and each of the Transaction Documents contemplated hereby
to which REG or the Purchaser is a party constitutes valid and binding
obligations of REG or the Purchaser, respectively, enforceable against REG or
the Purchaser in accordance with their respective terms, except as the
enforceability hereof may be subject to applicable bankruptcy, insolvency,
reorganization or other similar laws affecting creditors' rights generally and
to general principles of equity.

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

      Section
3.3  Noncontravention. Neither the execution and delivery by
REG or the Purchaser of this Agreement and the Transaction Documents, nor the
consummation of the transactions contemplated hereby or thereby, nor compliance
with any of the provisions hereof or thereof, will (a) violate any provision of
their respective Organizational Documents or any resolutions adopted by their
respective members or shareholders or board of managers or board of directors,
as applicable, (b) result in a violation of any license, permit, order, writ,
injunction, decree, judgment, or ruling of any court or Governmental Authority,
or any law, rule, or regulation applicable to REG or the Purchaser, (c) conflict
with, result in a breach of, or constitute (or, with due notice or lapse of time
or both, would constitute) a default under, or give rise to any right of
termination, acceleration or cancellation under, any indenture, agreement,
contract, license, arrangement, understanding, evidence of indebtedness, note,
lease or other instrument which constitutes an material asset of REG or the
Purchaser or to which REG or the Purchaser or any of their material assets is
bound, (d) result in the creation or imposition of any lien (other than
Permitted Liens), charge, restriction, claim or Encumbrance of any nature
whatsoever upon REG or the Purchaser or the shares of REG Common Stock or (e)
require any consent or approval of, or notice to, or filing or registration
with, any Person, except for those consents, approvals, notices, filings, or
registrations that have been obtained, given, or made, as the case may be, and
that are unconditional and in full force and effect.

      

      Section
3.4  Capitalization; REG Common Stock. REG is authorized to
issue two classes of shares designated respectively as "Preferred Stock" and
"Common Stock". The total number of shares of capital stock that REG is
authorized to issue is one hundred million (100,000,000). The total number of
shares of Preferred Stock REG has authority to issue is thirty million
(30,000,000). The total number of shares of Common Stock REG has authority to
issue is seventy million (70,000,000). The Preferred Stock and Common Stock each
have a par value of $0.0001. REG has seven million (7,000,000) shares of its
Series A Preferred Stock authorized of which 6,578,947 are issued and
outstanding and two million (2,000,000) shares of its Series B Preferred Stock
authorized of which 1,999,998 are issued and outstanding. REG has 13,334,874
shares of its Common Stock issued and outstanding. There are issued and
outstanding options to purchase 2,303,052 shares of REG Common Stock pursuant to
stock option agreements issued under the REG 2006 Stock Incentive Plan and
issued and outstanding warrants to purchase 633,533 shares of REG Common Stock.
The shares of REG Common Stock and Escrowed Stock to be issued to the Company
shall have the rights, restrictions, privileges and preferences set forth in the
Certificate of Incorporation of REG, a true and correct copy of which
Certificate of Incorporation (including all amendments thereto) has been
delivered to Sellers. The REG Common Stock and the Escrowed Stock, when issued
and delivered to the Company or deposited into the Escrow Fund, as applicable,
in accordance with the terms of this Agreement for the consideration expressed
herein, will be duly and validly issued, fully paid and non-assessable, free and
clear of all encumbrances except as provided in this Agreement and the
Stockholder Agreement and under applicable state and federal securities laws.
Except as contemplated in the Stockholder Agreement or with respect to REG's
Series A and Series B Preferred Stock, there are no contractual rights or
obligations of REG to repurchase, redeem or otherwise acquire any shares of its
capital stock, and REG is not a party or subject to any agreement or
understanding. Except as set forth in the Stockholder Agreement or with respect
to REG's Series A and Series B Preferred Stock, there is no agreement or
understanding between any persons and/or entities which affects or relates to
the voting or giving of written consents with respect to any security of REG or
by a director of REG. Except as contemplated in the

      Registration
Rights Agreement or the Amended and Restated Registration Rights Agreement dated
July 18, 2007, by and among REG and certain of its stockholders, REG is not
under any obligation to register any of its securities under the Securities
Act.

      

      Section
3.5   Financial Information. Sellers have received from
REG the financial information set forth on Schedule 3.5 of the
REG Disclosure Schedule (the "REG Financial
Information"). The REG Financial Information fairly presents in all
material respects the financial condition of REG at the dates thereof and the
results of its operations and statement of cash flows for the periods then
ended. Further, the REG Financial Information is consistent with the books and
records of REG (which books and records are correct and complete in all material
respects) and was prepared in accordance with GAAP, except as noted
thereon.

      

      Section
3.6   Undisclosed Liabilities. REG is not subject to any
material debts, liabilities or obligations, whether accrued, absolute,
contingent or otherwise, other than (a) as reflected in the REG Financial
Information, (b) accounts payable for goods or services received by REG incurred
in the ordinary course of business consistent with past practice since the date
of the REG Financial Information and (c) as set forth on Schedule 3.6 of the
REG Disclosure Schedule.

      

      Section 3.7   Material
Adverse Changes. Except as noted on Schedule 3.7, since the date of the
REG Financial Information, there has been no, and no event that reasonably could
be anticipated to have a, Material Adverse Effect with respect to
REG.

      

      Section
3.8   Brokers. Neither REG nor Purchaser has paid or
become obligated to pay any fee or commission to any broker, finder,
intermediary, advisor,, consultant, or appraiser for or on account of the
transactions contemplated by this Agreement and the Transaction
Documents.

      

      Section
3.9   Purchaser Escrow Agreement. On the Effective Date,
Purchaser has performed all obligations and satisfied all conditions which are
required for the Escrow Agent under the Purchaser Escrow Agreement to release
the Subscriptions (as defined in the Purchaser Escrow Agreement) and Escrow
Funds (as defined in the Purchaser Escrow Agreement) to the Purchaser. The
Purchaser Escrow Agreement is the current escrow agreement of the Purchaser with
the Purchaser's investors.

      

      ARTICLE
IV

      NO
ASSUMPTION OF LIABILITIES

      

      Except for the contracts to be assumed
by Purchaser listed on Schedule 4 of the
Company Disclosure Schedule (the "Assumed Contracts")
and the Assumed Liabilities, neither REG nor Purchaser assumes any duties,
liabilities, responsibilities or obligations of any kind or nature whatsoever of
the Company or either of the Members. Without limiting the generality of the
foregoing, neither REG nor Purchaser is assuming (i) any warranty obligations or
warranty claims with respect to products sold or services provided by the
Company, (ii) product liability obligations or claims with respect to products
sold or services provided by the Company, (iii) accounts payable of the Company,
(iv) any contracts of the Company other than those obligations of the Company
that are expressly assumed by Purchaser pursuant to the terms of
this

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

      Agreement,
(v) except as expressly set forth on Schedule 4, any
obligations under a grant or economic development award from any Governmental
Authority, or (vi) any other liabilities or obligations of the Company arising
out of the construction of the Facility, the operation of its business or the
ownership of the Assets by the Company, including, without limitation,
any  liability or obligations with respect to the Pilot Agreement, the
Buchanan Street bridge project or to pay the costs to acquire additional parcels
pursuant to the letter agreement dated November 3, 2006 between the Company and
Bunge Milling, Inc. The Company or each Member will timely and fully satisfy all
such unassumed duties, liabilities, responsibilities and obligations as they
become due.

      

      ARTICLE
V

      COVENANTS

      

      Section
5.1  Access to Information.

      

      
        	
                (a)

              	
                From
      and after the Effective Date and until the Closing, the Company will give
      to the Purchaser and its authorized Representatives (which shall include
      REG and its authorized Representatives) reasonable access during normal
      business hours to the offices, books and records, returns, contracts,
      commitments, facilities and accountants of the Company, and will furnish
      and make available to REG, the Purchaser and their authorized
      Representatives all such documents and copies of documents and all such
      additional financial and operating data and other information pertaining
      to the affairs of the Company as the Purchaser and its authorized
      Representatives may reasonably request; provided, however, that
      (i) the activities of the Purchaser and its Representatives shall be
      conducted in such a manner as not to interfere unreasonably with the
      operation of the business of the Company and (ii) in no event will the
      Company be required to furnish the Purchaser or its Representatives with
      any documents or information that the Company is required by Legal
      Requirement, Order or agreement, to keep confidential, or that would
      reasonably be expected to jeopardize the status of such document or
      information as privileged, work product or as a trade secret. The Company
      shall cooperate with the Purchaser and its authorized Representatives in
      the preparation of, and shall use its best efforts, to prepare and cause
      its accountants to prepare, all necessary financial information regarding
      the Assets that may need to be reflected in filings by the Purchaser and
      REG under the Securities Act or the Securities Exchange Act of 1934, as
      amended (the “Exchange Act"),
      or other applicable Legal Requirements. Without limiting the generality of
      the foregoing, Purchaser and its authorized Representatives shall have
      access to the Facilities from and after the Effective Date and until the
      Closing for the purpose of conducting the Preliminary
    Testing.

              

      

      

      
        	
                (b)

              	
                From
      and after the Effective Date and until the Closing, REG and the Purchaser
      will give to the Sellers and their authorized Representatives reasonable
      access during normal business hours to the offices, books and records,
      returns, contracts, commitments, facilities and accountants of REG and the
      Purchaser, and will furnish and make available to the Sellers and their
      authorized Representatives all such documents and copies of documents (at
      the Sellers' expense) and all such additional financial
  and

              

      

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

      operating
data and other information pertaining to the affairs of REG and the Purchaser as
the Sellers and their authorized Representatives may reasonably request; provided, however, that (i) the
activities of the Sellers and their Representatives shall be conducted in such a
manner as not to interfere unreasonably with the operation of the business of
REG or the Purchaser and (ii) in no event will REG or the Purchaser be required
to furnish the Sellers or their Representatives with any documents or
information that REG or the Purchaser is required by Legal Requirement, Order or
agreement, to keep confidential, or that would reasonably be expected to
jeopardize the status of such document or information as privileged, work
product or as a trade secret.

      

      Section 5.2  Pre-Closing
Activities. Except as otherwise permitted or required by this Agreement
or as set forth on Schedule 5.2, prior
to the Closing Date the Company shall not:

      

      
        	
                (a)

              	
                engage
      in any activities other than the construction and testing of the Facility
      and activities in connection
therewith;

              

      

      

      
        	
                (b)

              	
                subject
      any of the Real Property or Assets (whether tangible or intangible) of the
      Company to any Encumbrances, except for Permitted
  Liens;

              

      

      

      
        	
                (c)

              	
                acquire
      any properties or assets or sell, assign, transfer, convey, lease or
      otherwise dispose of any of the Real Property or Assets of the Company
      except in connection with construction and testing of the
      Facility;

              

      

      

      (d)           permit
the Bank Balance to be increased above $24,650,000;

      

      (e)           amend
any Assumed Contract or waive any rights with respect thereto;

      

      
        	
                (f)

              	
                acquire
      by merger or consolidation with, or merge or consolidate with, or
      otherwise acquire any material business of any corporation, partnership,
      association or other business organization or division
      thereof;

              

      

      

      
        	
                (g)

              	
                change
      or amend its certificate or articles of organization, operating agreement
      or other organizational documents except as otherwise required by
      law;

              

      

      

      (h)           incur
any material obligation or liability except in the ordinary course of
business;

      

      
        	
                (i)

              	
                enter
      into or amend, or take or permit any act or omission constituting a
      material breach or default, under any material contract, indenture or
      agreement by which the Company or any of the Assets are
    bound;

              

      

      

      (j)           hire
any employees;

      

      
        	
                (k)

              	
                make
      any loans or advances to any-Person, except for expenses incurred in the
      ordinary course of business;

              

      

      
        
           

        

        
          19

          
            

          

        

        
           

        

      

      (1)           make
any material income tax election; or

      

      (m)           agree
or commit to do any of the foregoing.

      

      Section 5.3  Efforts to
Consummate. Each party hereto will use its commercially reasonable
efforts to take, or cause to be taken, all lawful and reasonable actions within
such party's control and to do, or cause to be done, all lawful and reasonable
things within such party's control necessary to fulfill the conditions precedent
to the obligations of the other party(ies) hereunder and to consummate and make
effective as promptly as practicable the transactions contemplated by this
Agreement and to cooperate with each other in connection with the foregoing.
Without limiting the generality of the foregoing, prior to Closing (a) the
Company will use commercially reasonable' efforts to obtain the Required
Consents and other items set forth on Schedules 2.8(d) and
2.12 of the
Company Disclosure Schedule, and (b) the Company will use commercially
reasonable efforts to give any notices to, make any filings with, and obtain any
authorizations, consents, and approvals as set forth on Schedules 2.8(d) and
2.12. Nothing
in this Agreement shall be construed as an attempt or an agreement by the
Company to assign or cause the assignment of any contract or agreement which is
non-assignable without the consent of the other party or parties thereto, unless
such consent shall have been given.

      

      Section
5.4   Exclusive Dealing. From the Effective Date until the
earlier of (a) the Closing Date, or (b) the date this Agreement is terminated in
accordance with the provisions hereof, the Sellers will not, and will cause
their officers, directors, investment bankers and attorneys not to, take any
action to solicit the making of any Acquisition Proposal or engage in
substantive discussions or negotiations with any Person with respect thereto.
For purposes of this Agreement, "Acquisition Proposal"
means any oral or written offer from a third party for, or any written
indication of interest by a third party in, any purchase or issuance of any of
the Company Membership Interests or the purchase of all or any material part of
the Assets or Real Property of the Company (other than the sale or other
disposition of such Assets or Real Property in the ordinary course of business
consistent with past practice of the Company) or any merger or consolidation of
the Company.

      

      Section
5.5  Supplementation and Amendment of Schedules. From time to
time prior to the Closing, the Sellers and REG and the Purchaser shall have the
right to supplement or amend the Schedules with respect to any matter hereafter
arising or discovered after the delivery of the Schedules pursuant to this
Agreement that, if existing or known at, or occurring prior to, the date of this
Agreement, would have been required to be set forth or described in such
Schedules. No such supplement or amendment shall have any effect on the
satisfaction of the conditions to closing set forth in Sections 6.1(a) or
6.2(a); provided, however, if a party
proceeds with the Closing, then such party shall be deemed to have waived any
right or claim pursuant to the terms of this Agreement or otherwise with respect
to any and all matters disclosed pursuant to any such supplement or amendment at
or prior to the Closing.

      

      Section
5.6  Confidentiality. Until Closing, each of the Sellers, REG
and the Purchaser will, and will ensure that its Affiliates and Representatives
will hold in strict confidence and not use in any way except in connection with
the consummation of the transactions contemplated hereby, all confidential
information obtained in connection with the

      
        
           

        

        
          20

          
            

          

        

        
           

        

      

      transactions
contemplated hereby from the Company, the Sellers, REG, the Purchaser or any of
their respective Representatives.

      

      Section
5.7  Publicity. No party to this Agreement or any Affiliate or
representative thereof shall issue any press release or make any public
announcement relating to the terms or existence of this Agreement prior to or
after the Closing without the prior approval of the other parties hereto (which
approval shall not be unreasonably withheld); provided however that any party
may make any public disclosure it believes in good faith is required by
applicable Legal Requirements or any listing agreement concerning
publicly-traded securities, in which case the

      disclosing
party shall use commercially reasonable efforts to advise the other parties
prior to

      making
the disclosure.

      

      Section 5.8  Preliminary
Testing; Performance Testing. The Preliminary Testing shall be conducted
by Purchaser and REG as soon as practical after the Facility is ready for such
testing. The Company shall retain at least $250,000 in cash until notice by
Purchaser to the Company of the successful completion of the Performance
Testing. The Performance Testing shall be conducted by Purchaser and REG within
twelve (12) months after the Closing Date. The Members and the Company shall be
entitled to participate in and have Representatives present during all
activities performed or conducted in Preliminary Testing and Performance
Testing.

      

      Section 5.9   Bunge
Oil Supply Agreement; Services Agreement. As of the Closing Date,
Purchaser and Bunge shall enter into the [Oil Feedstock Supply Agreement] and
the Services Agreement, in the forms attached hereto as Exhibits C and D. respectively, and
in exchange for the Oil Feedstock Supply Agreement, REG shall issue One Hundred
Twenty Seven Thousand, Two Hundred Seventy-Three (127,273) shares of its Series
B Preferred Stock to Bunge.

      

      Section
5.10                           Limitations
on Disposition and Legend.

      

      
        	
                (a)

              	
                Purchaser
      and REG acknowledge and agree that the Company shall be

              	
                entitled
      to distribute the REG Stock and the Escrowed Shares (upon release of such
      shares from the Escrow Fund) to the Members in the Company's discretion
      without regard to the provisions of this Section 5.10 and without the
      approval or consent of REG, the Purchaser or any other shareholder of REG.
      Without in any way limiting the representations set forth in Article II
      hereof, each Member agrees upon receipt from the Company of the REG Common
      Stock and the Escrowed Shares not to make any disposition of all or any
      portion of the shares of the REG Common Stock or the Escrowed Shares
      unless (i) the transferee has agreed in writing for the benefit of such
      Member and REG to be bound by this Section 5.10
      and the Stockholder Agreement, provided and to the extent this Section and
      such agreement are then applicable; (ii) if such disposition is proposed
      prior to the expiration of the period described in Section 3(b) of the
      Stockholder Agreement, the aggregate number of holders of the shares of
      REG Common Stock issued pursuant to this Agreement (calculated for
      purposes of Section 12(g) under the Exchange Act and the rules and
      regulations promulgated thereunder, as in effect at the time of the
      disposition) after giving effect to the proposed distribution will not
      exceed three hundred (300); (iii) at least two (2) years since the Closing
      or the lock up period (not to
exceed

              

      

      one
hundred eighty (180) days after an initial public offering of REG Common Stock
has elapsed, whichever is earlier; and (iv):

      

      (A) there is then in effect a
Registration Statement under the Securities Act covering such proposed
disposition and such disposition is made in accordance with such Registration
Statement; or

      

      
        	
                 
      

              	
                (B)  (1)
      such Member shall have notified REG of the proposed disposition and shall
      have furnished REG with a detailed statement of the circumstances
      surrounding the proposed disposition, and (2) if reasonably requested by
      REG, such Member shall have furnished REG with an opinion of counsel, or
      other evidence, reasonably satisfactory to REG that such disposition will
      not require registration of such shares under the Securities Act. It is
      agreed that REG will not require opinions of counsel for transactions made
      pursuant to Rule 144 except in unusual
  circumstances.

              

      

      

      (b) The Company understands that each
of the certificates evidencing the REG Common Stock to be acquired hereunder may
bear the following legends:

      

      "THE SALE
OR TRANSFER OF SHARES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO AGREEMENTS
DATED JULY 18, 2007 AND MARCH _, 2008 BETWEEN RENEWABLE ENERGY GROUP, INC., AND
CERTAIN OF ITS STOCKHOLDERS, COPIES OF WHICH AGREEMENTS ARE AVAILABLE UPON
REQUEST TO THE SECRETARY OF THE CORPORATION. THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE FEDERAL SECURITIES ACT OF 1933,
AS AMENDED, OR APPLICABLE STATE SECURITIES LAW, AND HAVE BEEN ACQUIRED PURSUANT
TO AN INVESTMENT REPRESENTATION ON THE PART OF THE REGISTERED HOLDER THEREOF FOR
SUCH HOLDER'S OWN ACCOUNT FOR INVESTMENT, AND SUCH SECURITIES SHALL NOT BE
TRANSFERABLE BY THE REGISTERED HOLDER EXCEPT UPON THE ISSUANCE OF A FAVORABLE
OPINION OF COUNSEL FOR THE CORPORATION AND/OR SUBMISSION TO THE CORPORATION OF
SUCH OTHER EVIDENCE AS MAY BE SATISFACTORY TO THE CORPORATION TO THE EFFECT THAT
TRANSFER OF SUCH SECURITIES WILL NOT BE IN VIOLATION OF THE SECURITIES ACT OF
1933, AS AMENDED, OR ANY RULE OR REGULATION PROMULGATED THEREUNDER, OR
APPLICABLE STATE SECURITIES LAW.

      

      THE
CORPORATION WILL FURNISH TO THE HOLDER OF THIS CERTIFICATE UPON REQUEST AND
WITHOUT CHARGE A FULL STATEMENT OF THE DESIGNATIONS, PREFERENCES, LIMITATIONS,
AND RELATIVE RIGHTS OF THE SHARES OF EACH CLASS OF SHARES AUTHORIZED TO BE
ISSUED BY THE CORPORATION."

      
        
           

        

        
          21

          
            

          

        

        
           

        

      

      ARTICLE
VI

      CONDITIONS
TO CLOSING

      

      Section 6.1  Conditions to
Obligations of REG and the Purchaser. The obligations of REG and the
Purchaser to consummate the transactions contemplated by this Agreement are
subject to the satisfaction at or prior to the Closing of each of the following
conditions precedent:

      

      
        	
                (a)

              	
                The
      representations and warranties of Sellers set forth in Article II
      shall each be true and correct on and as of the Effective Date of this
      Agreement and as of the Closing Date with the same force and effect as
      though made on and as of the Closing Date (except to the extent that any
      representation or warranty is limited by its terms to a specific date or
      range of dates (in which case such representation and warranty need only
      be true and correct on the date or during the range of dates so
      specified)), except for any inaccuracies of representations or warranties
      the circumstances giving rise to which, individually or in the aggregate,
      do not or are not reasonably expected to have a Material Adverse Effect
      with respect to REG, Purchaser or the Company; provided, however, with
      respect to any representation or warranty which is qualified as to
      materiality or Material Adverse Effect, such qualification shall be
      disregarded for purposes of determining the satisfaction of this condition
      to Closing.

              

      

      

      
        	
                (b)

              	
                Each
      Seller shall have performed and complied in all material respects with all
      of the agreements and covenants required under this Agreement to be
      performed or complied with by such Person prior to or at the
      Closing.

              

      

      

      
        	
                (c)

              	
                Each
      of the Sellers shall have delivered to REG and the Purchaser a
      certificate, executed by a duly authorized officer in his or her capacity
      as such, certifying that the conditions specified in Sections 6.1(a)
      and (b)
      have been satisfied.

              

      

      

      
        	
                (d)

              	
                There
      shall not be in force any order, judgment, injunction, decree or ruling by
      or before any Governmental Authority of competent jurisdiction, and there
      shall be no lawsuits, actions, claims, investigations or other proceedings
      at law or in equity pending or threatened against the Company, Sellers,
      the Purchaser or REG which, if decided adversely, would have the effect
      of, restraining, enjoining, prohibiting, invalidating or otherwise
      preventing the consummation of the transactions contemplated hereby or
      which would otherwise have a Material Adverse Effect on the Company or
      Assets or the ability of the Purchaser to acquire, own or use the Assets
      or to construct and operate the
Facility.

              

      

      

      
        	
                (e)

              	
                All
      of the material consents set forth on Schedules
      2.8(d) and 2.12 of the
      Company Disclosure Schedule (other than consents required by any
      Governmental Authority) shall have been obtained and shall be in form and
      substance reasonably satisfactory to REG and the Purchaser. Without
      limiting the generality of the foregoing, the Company shall have received
      the consent of Fifth Third Bank to the consummation of the transactions
      contemplated by this Agreement and the Transaction Documents without any
      acceleration of the indebtedness or payment required by the Company and
      containing any changes to the terms and conditions of the Fifth Third Bank
      Construction Loan Agreement and agreements and instruments related thereto
      substantially in accordance

              

      

      
        
           

        

        
          22

          
            

          

        

        
           

        

      

      with the loan commitment of Fifth Third
Bank to Purchaser of even date herewith, a copy of which has been provided by
Purchaser to Sellers; and the indebtedness of the Company to Fifth Third Bank
pursuant to the Construction Loan Agreement and in an amount not to exceed
$24,650,000 shall be outstanding and in full force and effect payable in
accordance with its stated terms without default or breach as a result of the
transactions contemplated by this Agreement.

      

      
        	
                (f)

              	
                On
      or before the Closing Date, BIG shall have delivered to REG and the
      Purchaser a fully executed copy of the Confidentiality and Noncompetition
      Agreement of BIG, in the form attached hereto as Exhibit G (the
      "Confidentiality
      Agreement").

              

      

      

      
        	
                (g)

              	
                Purchaser
      shall have received a leasehold title policy in form and substance
      satisfactory to Purchaser evidencing valid leasehold title to the Leased
      Real Property in accordance with the terms of the leases applicable to
      such Leased Real Property, free and clear of all Encumbrances, other than
      Permitted Liens.

              

      

      

      Section
6.2   Conditions to Obligations of the Sellers and the
Company. The obligations of the Sellers and the Company to consummate the
transactions contemplated by this Agreement are subject to the satisfaction at
or prior to the Closing of each of the following conditions
precedent:

      

      
        	
                (a)

              	
                The
      representations and warranties of REG and the Purchaser set forth in Article III
      shall each be true and. correct on and as of the Effective Date of this
      Agreement and as of the Closing Date with the same force and effect as
      though made on and as of the Closing Date, except to the extent that any
      representation or warranty is limited by its terms to a specific date or
      range of dates (in which case such representation and warranty need only
      be true and correct on the date or during the range of dates so specified)
      except for any inaccuracies of representations or warranties the
      circumstances giving rise to which, individually or in the aggregate, do
      not or are not reasonably expected to have a Material Adverse Effect with
      respect to Purchaser, REG or Sellers; provided, however, with respect to
      any representation or warranty which is qualified as to materiality or
      Material Adverse Effect, such qualification shall be disregarded for
      purposes of determining the satisfaction of this condition to
      Closing.

              

      

      

      
        	
                (b)

              	
                REG
      and the Purchaser shall have performed and complied in all material
      respects with all of the agreements and covenants required under this
      Agreement to be performed or complied with by them prior to or at the
      Closing.

              

      

      

      
        	
                (c)

              	
                REG
      and the Purchaser shall have delivered to the Company a certificate,
      executed by a duly authorized officer of each of REG and the Purchaser in
      his or her capacity as such, certifying that the conditions specified in
      Sections
      6.2(a) and (b) have been
      satisfied.

              

      

      

      
        	
                (d)

              	
                There
      shall not be in force any order, judgment, injunction, decree or ruling by
      or before any Governmental Authority of competent jurisdiction
      restraining, enjoining, prohibiting, invalidating or otherwise preventing
      the consummation of the transactions contemplated
  hereby.

              

      

      
        
           

        

        
          23

          
            

          

        

        
           

        

      

      
        	
                (e)

              	
                Bunge
      shall have been relieved of its Debt Service Guaranty, in an amount not to
      exceed $700,000, of the Company's Debt Service Fund to Fifth Third
      Bank.

              

      

      

      
        	
                (f)

              	
                BIG
      shall have withdrawn the Two Million, Eight Hundred Thousand U.S. Dollars
      ($2,800,000), together with all accrued interest thereon, from the
      Company's Debt Service Fund deposited by BIG in the Debt Service Fund
      Account in connection with Company's indebtedness to Fifth Third
      Bank.

              

      

      

      
        	
                (g)

              	
                The
      Company shall have received the written consent of Fifth Third Bank to the
      consummation of the transactions contemplated by this Agreement and the
      Transaction Documents without any acceleration of the indebtedness or
      payment required by the Company and the Company shall have been released
      from the Construction Loan Agreement and all indebtedness evidenced
      thereby.

              

      

      

      
        	
                (h)

              	
                Purchaser,
      as successor tenant to BCA, and Bunge shall have agreed upon the terms of
      the assignment of that certain Amended and Restated Ground Lease Agreement
      dated November 3, 2006 between Bunge Milling, Inc. and BCA, including,
      without limitation the "base rent" pursuant to the terms of such
      lease.

              

      

      

      Section
6.3                                  Documents
to be Delivered at the Closing.

      

      (a) At the Closing, the Sellers, as
applicable, shall deliver to REG and the Purchaser, as applicable, the
following:

      

      
        	
                (i)

              	
                The
      Bill of Sale in the form attached hereto as Exhibit E
      executed by the Company;

              

      

      

      
        	
                (ii)

              	
                The
      Assignment and Assumption Agreement in the form attached hereto as Exhibit F
      executed by the Company;

              

      

      

      
        	
                (iii)

              	
                The
      Oil Feedstock Supply Agreement in the form attached hereto as Exhibit C
      executed by Bunge;

              

      

      

      (iv)                 The
Services Agreement in the form attached hereto as Exhibit
D

      executed by Bunge;

      

      
        	
                (v)

              	
                The
      Addendum to the Amended and Restated Stockholder Agreement dated July 18,
      2007 for the REG Common Stock in the form attached hereto as Exhibit H (the
      "Stockholder
      Agreement") executed by the Sellers; [Discuss - are the Sellers
      entering into a new Stockholder Agreement, or joining the current
      stockholder agreement]

              

      

      

      
        	
                 
      

              	
                (vi)  The
      Registration Rights Agreement in the form attached hereto as Exhibit I (the
      "Registration
      Rights Agreement") executed by the
  Sellers;

              

      

      
        
           

        

        
          24

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                (vii)
      Certified copies of the resolutions duly adopted by the Board of Managers
      and members of the Company authorizing the transfer of the Assets to
      Purchaser;

              

      

      

      
        	
                 
      

              	
                (viii)  Certified
      copies of the resolutions duly adopted by the Board of Managers and
      members of BIG authorizing the transactions contemplated by this
      Agreement;

              

      

      

      
        	
                 
      

              	
                (ix)  Any
      and all consents, filings, waivers, registrations, approvals or
      authorizations, with or by any Governmental Authority and all consents,
      waivers, approvals or authorizations of any other Person required for the
      consummation of the Closing;

              

      

      

      
        	
                (xi)

              	
                A
      statement of account of the Bank Balance owed by Company to Fifth Third
      Bank under the Construction Loan Agreement and a statement of the Assumed
      Liabilities as provided in Section
      1.2(d);

              

      

      

      (xii) The Escrow Agreement executed by
the Company; and

      

      
        	
                 
      

              	
                (xiii)
      Such other customary documents as may be reasonably requested by the
      Purchaser related to the transactions contemplated by this
      Agreement.

              

      

      

      (b) At the Closing, the Purchaser and
REG shall deliver to the Escrow Agent the Escrow Amount in accordance with
Section 1.2(c), shall deliver the IFA Payment to the IFA in accordance with
Section 1.2(a) and shall deliver to the Members, as applicable, the
following:

      

      (i)                 Wire
transfer of the Cash Purchase Price as provided in Section 1.2
a;

      

      
        	
                (ii)

              	
                Certificates
      representing the shares of REG Common Stock as provided in Section
      1.2(b);

              

      

      

      (iii)                 The
Registration Rights Agreement executed by REG;

      

      
        	
                (iv)

              	
                The
      Oil Feedstock Supply Agreement executed by Purchaser, and the certificates
      representing the shares of its Series B Preferred Stock in exchange
      therefore as provided in Section
      5.9;

              

      

      

      (v)                 The
Services Agreement executed by Purchaser;

      

      
        	
                (vi)

              	
                Wire
      transfer of the Balance Differential Payment as provided in Section 1.2(b),
      if any;

              

      

      

      (vii)  The Assignment and
Assumption Agreement executed by the Purchaser;

      

      (viii)  The Escrow Agreement
executed by Purchaser; and

      
        
           

        

        
          25

          
            

          

        

        
           

        

      

      
        	
                (ix)

              	
                Such
      other customary documents as may be reasonably requested by the Company
      related to the transactions contemplated by this
  Agreement.

              

      

      

      ARTICLE
VII

      INDEMNIFICATION

      

      Section
7.1  Indemnification by the Sellers.  (a) Each
Seller, severally as to itself and not jointly, shall indemnify the Purchaser
and REG and their respective Affiliates, partners, managers, directors, officers
and employees (collectively, the "Purchaser's Indemnified
Parties")

      from, and
defend and hold each of them harmless against, any and all Losses resulting from
or

      arising
out of-

      

      
        	
                (i)

              	
                Any
      breach or inaccuracy in any representation or warranty made by such Seller
      with respect to such Seller under Article II of this Agreement, the
      Company Disclosure Schedule hereto, or any certificate delivered or to be
      delivered to REG and the Purchaser by any Seller regarding Article II
      hereto;

              

      

      

      
        	
                (ii)

              	
                Any
      breach or nonfulfillment of any covenant, agreement or other obligation of
      such Seller under this Agreement (excluding any schedules or exhibits
      attached hereto) or any certificate delivered pursuant
    hereto.

              

      

      

      
        	
                (b)

              	
                Each
      Member, severally and not jointly, in accordance with their respective
      proportionate ownership of the Company Membership Interest on the
      Effective Date (which shall be 77.8% for BIG and 22.2% for Bunge), shall
      indemnify the Purchaser's Indemnified Parties from, and defend and hold
      each of them harmless against, any and all Losses resulting from or
      arising out of.

              

      

      

      
        	
                (i)

              	
                Any
      breach or inaccuracy in any representation or warranty made by the Company
      with respect to the Company under Article II of this Agreement, the
      Company Disclosure Schedule hereto, or any certificate delivered or to
      be-delivered to REG and the Purchaser by any Member regarding Article II
      hereto;

              

      

      

      
        	
                (ii)

              	
                Any
      breach or nonfulfillment of any covenant, agreement or other obligation of
      the Company under this Agreement (excluding any schedules or exhibits
      attached hereto) or any certificate delivered pursuant hereto; or
      (iii)

              	
                Unsuccessful
      Performance Testing.

              

      

      

      Section
7.2   Indemnification by the Purchaser. REG and the
Purchaser, severally as to itself and not jointly as to or with the other, shall
indemnify the Sellers and their Affiliates, partners, managers, directors,
officers and employees (collectively, the "Seller Indemnified
Parties") from, and defend and hold each of them harmless against, any
and all Losses resulting from or arising out of:

      

      (a) Any breach or inaccuracy in any
representation or warranty made by REG or the Purchaser, respectively, under
this Agreement, the REG Disclosure Schedule or any certificate delivered or to
be delivered to the Sellers by REG or the Purchaser pursuant hereto;
or

      
        
           

        

        
          26

          
            

          

        

        
           

        

      

      (b) Any breach or nonfulfillment of any
covenant, agreement or other obligation of REG or the Purchaser, respectively,
under this Agreement or any certificate delivered pursuant hereto.

      

      Section 7.3  Notice and
Defense of Third Party Claims. If any Proceeding shall be brought or
asserted against an indemnified party ("Indemnified Party")
in respect of which indemnity for Indemnified Amounts may be sought under this
Article from an indemnifying party ("Indemnifying Party"),
the Indemnified Party shall give prompt written notice of such Proceeding to the
Indemnifying Party. If any Proceeding is brought or asserted against an
Indemnified Party and it gives notice to the Indemnifying Party of the
commencement or assertion of such Proceeding, the Indemnifying Party will be
entitled to participate in such Proceeding and, to the extent that it wishes
(unless (i) the Indemnifying Party is also a party to such Proceeding and the
Indemnified Party determines in good faith that joint representation would be
inappropriate, or (ii) the Indemnifying Party fails to provide reasonable
assurance to the Indemnified Party of its financial capacity to defend such
Proceeding and provide indemnification with respect to such Proceeding), to
assume the defense of such Proceeding, including the employment of counsel
reasonably satisfactory to the Indemnified Party and the payment of all expenses
related to such defense (except as provided herein) and, after notice from the
Indemnifying Party to the Indemnified Party of its election to assume the
defense of such Proceeding, the Indemnifying Party will not, as long as it
diligently conducts such defense, be liable to the Indemnified Party under this
Article VII for
any fees of other counsel or any other expenses with respect to the defense of
such Proceeding, in each case subsequently incurred by the Indemnified Party in
connection with the defense of such Proceeding; provided that any delay or
failure to so notify the Indemnifying Party shall relieve the Indemnifying Party
of its obligations hereunder only to the extent, if at all, that.it is
prejudiced by reason of such failure or delay. Actual or threatened action by a
Governmental Authority or other Person is not a condition or prerequisite to the
Indemnifying Party's obligations under this Article VII. If the
Indemnifying Party assumes the defense of a Proceeding, (i) it will be
conclusively established for purposes of this Agreement that the claims made in
that Proceeding are within the scope of and subject to indemnification under
this Article
VII; (ii) no compromise or settlement of such claims may be effected by
the Indemnifying Party without the Indemnified Party's consent unless (A) there
is no finding or admission of any violation of Legal Requirement or any
violation of the rights of any Person and no effect on any other claims that may
be made against the Indemnified Party, and (B) the sole relief provided is
monetary damages that are paid in full by the Indemnifying Party and that
includes as an unconditional term thereof the release by the claimant or the
plaintiff of the Indemnified Party from all liability in respect of such
Proceeding and the matters that are subject to the indemnification claim; and
(iii) the Indemnified Party will have no liability with respect to any
compromise or settlement of such claims effected without its consent. The
Indemnified Party shall have the right to employ separate counsel in any
Proceeding in which the Indemnifying Party has assumed the defense and to
participate in the defense thereof, but the fees and expenses of such counsel
shall be at the expense of the Indemnified Party (notwithstanding any other
provision of this Article VII) unless
the Indemnifying Party has failed or refuses to employ counsel or unless the
Indemnifying Party is not pursuing the defense of the Proceedings or that there
exists actual or potential conflicts of interest which make representation by
the same counsel inappropriate. The Indemnified Party's right to participate in
the defense or response to any Proceeding shall not be deemed to limit or
otherwise modify the Indemnifying Party's obligations under this Article VII. If
notice is given

      to an
Indemnifying Party of the commencement of any Proceeding and the Indemnifying
Party does not, within twenty (20) days after the Indemnified Party's notice is
given, give notice to the Indemnified Party of its election to assume the
defense of such Proceeding, the Indemnified Party will have the right to
undertake the defense of such Proceeding. Any settlement or compromise made or
caused to be made by the Indemnified Party (unless the Indemnified Party has the
exclusive right to settle or compromise under Section 7.3) or the
Indemnifying Party, as the case may be, of any Proceeding of the kind referred
to in Section
7.3 shall also be binding upon the Indemnifying Party or the Indemnified
Party, as the case may be, in the same manner as if a final judgment or decree
had been entered by a court of competent jurisdiction in the amount of such
settlement or compromise; provided, that (i) no obligation, restriction or Loss
shall be imposed on the Indemnified Party as a result of such settlement or
compromise without its prior written consent, which consent shall not be
unreasonably withheld, and (ii) the Indemnified Party will not compromise or
settle any such Proceeding without the prior written consent of the.
Indemnifying Party, which consent shall not be unreasonably
withheld.

      

      Section
7.4   Limitations of Liability

      

      (a) An Indemnifying Party shall have no
liability under Sections 7.1(a)(i),
7.1(b)(i) or
7.2(a)(i)
unless notice of a claim for indemnity, or notice of facts as to which an
indemnifiable Loss is expected to be incurred, shall have been given to the
Indemnifying Party before the expiration of the applicable representation or
warranty pursuant to Section 9.1 of this
Agreement.. Notwithstanding any other provision contained in this Agreement, the
Purchaser's Indemnified Parties shall make no claim for indemnification under
Section
7.1(b)(iii) unless and until the Purchaser's Indemnified Parties shall
have exhausted their remedies against Fagen, Inc. and De Smet Ballestra North
America, Inc. for breach of the Fagen Agreement and/or the De Smet Agreement;
provided, however, the Purchaser's Indemnified Parties shall be reimbursed from
the Escrow Fund for any Losses incurred by the Purchaser's Indemnified Parties
in pursuit of such remedies within thirty (30) days after request therefor to
Members by the Purchaser's Indemnified Parties.

      

      
        	
                (b)

              	
                Notwithstanding
      any provision of this Article VII to
      the contrary, amounts owed by an Indemnifying Party to an Indemnified
      Party shall be reduced by the amount of any mitigating recovery or benefit
      an Indemnified Party shall have received or otherwise enjoyed with respect
      thereto from any amounts recovered by the Indemnified Party under any
      insurance policies, without regard to whether the Indemnified Party or
      another person paid the premiums therefor. If such a recovery is received
      by an Indemnified Party after it receives payment or other credit under
      this Agreement with respect to Indemnified Amounts, then a refund equal to
      the aggregate amount of such recovery shall be made promptly to the
      Indemnifying Party.

              

      

      

      
        	
                (c)

              	
                THE
      SOLE AND EXCLUSIVE LIABILITY AND RESPONSIBILITY OF EACH INDEMNIFYING PARTY
      TO ANY INDEMNIFIED PARTY UNDER THIS AGREEMENT, AND THE SOLE AND EXCLUSIVE
      REMEDY OF ANY INDEMNIFIED PARTY AGAINST ANY INDEMNIFYING PARTY UNDER THIS
      AGREEMENT SHALL BE AS SET FORTH IN THIS ARTICLE VII AND
      SECTION
      8.2; PROVIDED, HOWEVER, THAT THE LIMITATIONS SET FORTH IN
      THIS

              

      

      
        
           

        

        
          27

          
            

          

        

        
           

        

      

      
        	
                SECTION

              	
                7.4

              	
                SHALL
      NOT APPLY IN THE CASE OF FRAUD OR AN INTENTIONAL MISREPRESENTATION BY ANY
      INDEMNIFYING PARTY. TO THE EXTENT THAT ANY INDEMNIFIED PARTY HAS ANY
      LOSSES FOR WHICH IT MAY ASSERT ANY OTHER RIGHT TO INDEMNIFICATION,
      CONTRIBUTION OR RECOVERY FROM ANY INDEMNIFYING PARTY (WHETHER UNDER THIS
      AGREEMENT OR UNDER ANY COMMON LAW THEORY OR ANY LEGAL REQUIREMENT), EXCEPT
      FOR FRAUD OR INTENTIONAL MISREPRESENTATION, SUCH INDEMNIFYING PARTY HEREBY
      WAIVES, RELEASES AND AGREES NOT TO ASSERT SUCH RIGHT, AND SUCH PARTY
      AGREES TO CAUSE EACH OF ITS RESPECTIVE INDEMNIFIED PARTIES TO WAIVE,
      RELEASE AND AGREE NOT TO ASSERT SUCH RIGHT, REGARDLESS OF THE THEORY UPON
      WHICH ANY CLAIM MAY BE BASED, WHETHER CONTRACT, EQUITY, TORT, WARRANTY,
      STRICT LIABILITY OR ANY OTHER THEORY OF
  LIABILITY.

              

      

      

      
        	
                (d)

              	
                An
      Indemnifying Party shall have no liability to an Indemnified Party under
      Section 7.1
      or 7.2 hereof,
      except as provided in the proviso in the first sentence of Section 7.4(c),
      unless the aggregate amount of the Losses incurred by the Indemnified
      Party exceeds Five Hundred Thirty-seven Thousand U.S. Dollars (U.S.
      $537,000), and in such event the Indemnifying Party shall be required to
      pay (subject to the next sentence) the entire amount of all such Losses
      for which each Indemnifying Party is obligated to pay under this Article VII in
      an aggregate amount for. Sellers or for REG and the Purchaser, as the case
      may be, not to exceed the amounts set forth in this Section 7.4(d). All
      indemnifiable Losses shall be paid or reimbursed out of the Escrow Fund
      first through the payment of cash and next through the surrender of
      Escrowed Stock (at a the value set forth in Section 1.2 (f)); provided,
      that any claim for indemnifiable Losses asserted against Bunge shall only
      be paid or reimbursed out of the Escrow Fund to the Purchaser's
      Indemnified Parties up to the percentages of Escrowed Cash and Escrowed
      Stock which are apportioned to Bunge upon distribution from the Company in
      accordance with Section 1.2(c) and any claim for indemnifiable Losses
      asserted against BIG shall only be paid or reimbursed out of the Escrow
      Fund to the Purchaser's Indemnified Parties up to the percentages of
      Escrowed Cash and Escrowed Stock which are apportioned to BIG upon
      distribution from the Company in accordance with Section 1.2 (c). After
      the exhaustion of the Escrow Fund or upon the release of the Escrow Fund
      in accordance with the terms of the Escrow Agreement, any claim for
      indemnification by the Purchaser's Indemnified Parties pursuant to Article
      VII shall be satisfied by the applicable Seller from REG Common Stock in
      value up to an aggregate amount for all Sellers of Five Million Dollars
      ($5,000,000), with such REG Common Stock valued in accordance with Section
      1.2(f).

              

      

      

      Section
7.5                             Survival.

      

      All representations, warranties,
covenants and obligations in the Agreement, the Company Disclosure Schedule, the
REG Disclosure Schedule, the certificates delivered pursuant to Article VI and any
other certificate delivered pursuant to this Agreement shall survive the Closing
and the consummation of the transactions contemplated hereby, subject to Section
9.1.

      
        
           

        

        
          28

          
            

          

        

        
           

        

      

      Section 7.6   Waiver
of Certain Damages. IN NO EVENT SHALL ANY INDEMNIFYING PARTY HAVE ANY
LIABILITY UNDER THIS AGREEMENT OR ANY AGREEMENT, CERTIFICATE OR OTHER DOCUMENT
RELATED HERETO OR OTHERWISE IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY FOR ANY SPECIAL, SPECULATIVE, INCIDENTAL, PUNITIVE, INDIRECT
OR CONSEQUENTIAL DAMAGES, HOWEVER CAUSED AND REGARDLESS OF THE THEORY OF
LIABILITY (WHETHER IN CONTRACT OR IN TORT, INCLUDING NEGLIGENCE), AND WHETHER OR
NOT THE INDEMNIFYING PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES;
PROVIDED, HOWEVER, THAT THIS WAIVER SHALL NOT APPLY TO THE EXTENT SUCH SPECIAL,
SPECULATIVE, INCIDENTAL, PUNITIVE, INDIRECT OR CONSEQUENTIAL DAMAGES ARE AWARDED
IN A PROCEEDING BROUGHT OR ASSERTED BY A THIRD PARTY AGAINST AN INDEMNIFIED
PARTY.

      

      Section
7.7                           Express
Negligence.                                                      THE
FOREGOING INDEMNITIES ARE INTENDED TO BE ENFORCEABLE AGAINST THE PARTIES IN
ACCORDANCE WITH THE EXPRESS TERMS AND SCOPE THEREOF NOTWITHSTANDING ANY EXPRESS
NEGLIGENCE RULE, DOCTRINE RELATING TO INDEMNIFICATION FOR STRICT LIABILITY OR
ANY SIMILAR DIRECTIVE THAT WOULD PROHIBIT OR OTHERWISE LIMIT INDEMNITIES BECAUSE
OF THE NEGLIGENCE (WHETHER SOLE, CONCURRENT, ACTIVE OR PASSIVE) OR OTHER FAULT
OR STRICT LIABILITY OF ANY OF THE INDEMNIFIED PARTIES.

      

      ARTICLE
VIII

      TERMINATION

      

      Section
8.1  Termination. This Agreement may be terminated at any time
prior to the Closing:

      

      (a) by the mutual written consent of
REG, the Purchaser and the Sellers;

      

      (b) by REG or the Purchaser by giving
written notice to the Sellers at any time (i) if any Seller has breached any
representation, warranty, covenant or agreement contained in this Agreement in a
manner that, individually or in the aggregate, has or is reasonably expected to
have a Material Adverse Effect with respect to Purchaser, REG or the Company or
a materially adverse effect on the timely consummation of the transactions
contemplated hereby, the Purchaser has notified the Seller of the breach and the
breach has continued uncured for a period of thirty (30) days after the notice
of breach or (ii) if the Closing shall not have occurred on or before the Target
Closing Date by reason of the failure of any condition precedent under Section 6.1 hereof or
if any such condition becomes impossible to fulfill (in each case, unless the
failure or impossibility results primarily from the Purchaser or REG breaching
any representation, warranty, covenant or agreement contained in this
Agreement); or

      

      (c) by the Sellers giving written
notice to the Purchaser and REG at any time (i) if REG or the Purchaser has
breached any representation, warranty, covenant or agreement contained in this
Agreement in a manner that, individually or in the aggregate,

      
        
           

        

        
          29

          
            

          

        

        
           

        

      

      has or is
reasonably expected to have a Material Adverse Effect with respect to Purchaser,
REG, Members or the Company or a materially adverse effect on the timely
consummation of the transactions contemplated hereby, the Sellers have notified
the Purchaser and REG of the breach and the breach has continued uncured for a
period of thirty (30) days after the notice of breach, or (ii) if the Closing
shall not have occurred on or before the Target Closing Date by reason of the
failure of any condition precedent under Section 6.2 hereof or
if any such condition becomes impossible to fulfill (in each case, unless the
failure or impossibility results primarily from a Seller breaching any
representation, warranty, covenant or agreement contained in this
Agreement).

      

      Section 8.2  Effect of
Termination; Liquidated Damages. Termination of this Agreement pursuant
to Section 8.1
shall terminate all obligations of the parties hereunder, without liability of
any party to any other party (except for the liability of any party then in
breach), except for the obligations under Section 5.6, this
Section 8.2,
Article VII and
Sections 9.1. 9.3.
9.6. 9.13 and 9.14. In the event
this Agreement is terminated pursuant to Section 8.1(b)(i),
Company shall pay to REG and Purchaser as liquidated damages One Million U.S.
Dollars (U.S. $1,000,000) in the manner and in the form determined by Purchaser
and as Purchaser's and REG's sole and exclusive remedy against Sellers for the
failure to close the transaction. In the event this Agreement is terminated
pursuant to Section
8.1(c)(i), REG, and Purchaser shall pay to Members as liquidated damages
One Million U.S. Dollars (U.S. $1,000,000) in the manner and in the form
determined by Members (including, without limitation, the release of Escrowed
Stock and/or Escrowed Cash contained in the Escrow Fund) as Sellers' sole and
exclusive remedy against Purchaser and REG for the failure to close the
transaction. The parties agree that the liquidated damages as provided in this
Section 8.2 are
reasonable in light of (i) the anticipated or actual harm caused by termination
of this Agreement, (ii) the difficulties of proof of loss, and (iii) the
inconvenience or nonfeasability of otherwise obtaining an adequate remedy. As
provided in this Section 8.2,
liquidated damages shall be the sole remedy available for failure to close the
transaction; provided, however,
that this Section
8.2 shall not prohibit or limit any other remedies, in law or in equity,
to which a party may be entitled after the close of the transaction for any
breach of this Agreement.

      

      ARTICLE
IX

      MISCELLANEOUS

      

      Section
9.1  Survival. The representations and warranties contained in
Articles II and
III shall
survive for twelve (12) months after the date such representation and warranty
at issue is made under this Agreement, except that (a) all representations and
warranties set forth in Sections 2.7 and
2.10 hereof
shall survive until the expiration of all applicable statutes of limitation and
any extensions thereof and (b) all representation and warranties set forth in
Sections 2.1,
2.2, 3.1, 3.2, and 3.3 will continue in
full force and effect indefinitely. All other obligations of the parties hereto
shall survive indefinitely.

      

      Section 9.2  Amendment and
Modification; Waiver. Any term of this Agreement may be amended, modified
or supplemented and the observance of any term of this Agreement may be waived
(either generally or in a particular instance and either retroactively or
prospectively), only by the written agreement of the Sellers and the Purchaser.
Any waiver

      
        
           

        

        
          30

          
            

          

        

        
           

        

      

      pursuant
to this Section
9.2 shall not operate as a waiver of, or estoppel with respect to, any
subsequent or other failure.

      

      Section
9.3   Notices. All notices and other communications
hereunder shall be in writing and shall be deemed given if (i) delivered
personally, (ii) mailed by registered or certified mail (return receipt
requested), whereupon notice shall be deemed given three days after mailing,
(iii) sent by facsimile with confirmation, to the other party at the following
addresses or (iv) electronically transmitted to the extent permitted by
applicable law and provided an email address is set forth below for such party
(or at such other address for a party as shall be specified by like notice;
provided that notices of a change of address shall be effective only upon
receipt thereof):

      

      If to
BIG,
to:                                                                Biodiesel
Investment Group, LLC

      1661 International Drive, Suite
400

      Memphis, Tennessee 38120

      Attn: Mark A. Burke,
President

      Telephone
No.:                                901-818-3033

      Facsimile
No.:                                901-767-4441

      Email:
mburke@markaburke.com

      

      with a
copy
to:                                                                Wyatt,
Tarrant & Combs, LLP

      500 West Jefferson Street, Suite
2800

      Louisville, Kentucky
40202

      Attn: Robert A. Heath

      Telephone No.:
502-562-7201

      Facsimile
No.:                                502-589-0309

      Email:
rheath@wyattfirm.com

      

      If to
Bunge,
to:                                                      Bunge
North America, Inc.

      11720 Borman Drive PO Box
28500

      St. Louis, Missouri 63146

      Attn: General Manager-
Biofuels

      Telephone No.:
314-292-2512

      Facsimile
No.:                                314-292-2112

      

      with a
copy
to:                                                                Bunge
North America, Inc.

      11720 Borman Drive PO Box
28500

      St. Louis, Missouri 63146

      Attn: General Counsel

      Telephone No.:
314-292-2512

      Facsimile
No.:                                314-292-2112

      

      Thompson Coburn, LLP

      One US Bank Plaza

      St. Louis, Missouri
63101

      
        
           

        

        
          31

          
            

          

        

        
           

        

      

      Attn: Kimberly M. Eilerts

      Telephone No.:
314-552-6172

      Facsimile No.:
314-552-7172

      Email:
keilerts@thompsoncobum.com

      

      If to
REG,
to:                                                                Renewable
Energy Group, Inc. and

      REG Danville, LLC

      416 S. Bell Avenue PO Box
888

      Ames, IA 50010

      Attn: Jeffrey Stroburg

      Telephone No.:
515-239-8121

      Facsimile
No.:                                515-239-8009

      Email:
jeff.stroburg@regfuel.com

      

      with a
copy
to:                                                                Wilcox
Policing Gerken Schwartzkopf & Copeland, P.C.

      115 E. Lincolnway Street, Suite
200

      Jefferson, Iowa

      Attn: John A. Gerken,
Esq.

      Telephone No.:
515-386-3158

      Facsimile
No.:                                515-386-8531

      Email:
jgerken@wilcoxlaw.com

      

      If to
Purchaser,
to:                                                                Blackhawk
Biofuels, LLC

      225 Chicago Avenue

      Freeport, IL 61032-4230

      Attn: Ron Mapes, Chair

      Telephone No.:
815-235-2461

      Facsimile No.:
815-235-4727

      Email:
mapesfarms@bllchawk.net

      

      with a
copy
to:                                                                Lindquist
& Vennum, PLLP

      4200 IDS Center

      80 South Eighth Street

      Minneapolis, MN
55402-2274

      Attn: Dean Edstrom

      Telephone No.:
612-371-3955

      Facsimile No.:
612-371-3207

      Email:
dedstrom@lindquist.com

      
        
           

        

        
          32

          
            

          

        

        
           

        

      

      

      If to the
Company,
to:                                                                           Biofuels
Company of America, LLC

      1661 International Drive, Suite
400

      Memphis, Tennessee 38120

      Attn: Mark A. Burke,
President

      Telephone No.:
901-818-3033

      Facsimile No.:
901-767-4441

      Email:
mburke@markaburke.com

      

      Section 9.4   Further
Assurances. Each party agrees to execute and deliver such other
documents, certificates, agreements, and other writings and to take such other
actions as may be necessary or desirable in order to consummate or implement
expeditiously the transactions contemplated by this Agreement.

      

      Section
9.5  Assignment. This Agreement and all of the provisions
hereof shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and permitted assigns. Neither this Agreement nor
any of the rights, interests or obligations hereunder shall be assigned by (a)
the Purchaser or REG without the prior written consent of the Sellers; (b) the
Sellers or any of them without the prior written consent of the Purchaser and
REG; (c) the Purchaser without the prior written consent of REG; or (d) REG
without the prior written consent of Purchaser. No permitted assignment shall
relieve the assigning party of any of its obligations hereunder.

      

      Section
9.6   Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS WITHOUT
REGARD TO PRINCIPLES REGARDING CONFLICTS OF LAWS.

      

      Section
9.7   Severability. If one or more provisions of this
Agreement are held to be unenforceable under applicable law, such provision
shall be excluded from this Agreement and the balance of the Agreement shall-be
interpreted as if such provision were so excluded and shall be enforceable in
accordance with its terms.

      

      Section
9.8   Counterparts. This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

      

      Section
9.9   Facsimile Signatures. Any signature page delivered
pursuant to this Agreement or any agreement contemplated hereby via facsimile
shall be binding to the same extent as an original signature. Any party who
delivers such a signature page agrees to later deliver an original counterpart
to any party who requests it.

      

      Section 9.10   No
Third-Party Beneficiaries. No provision of this Agreement is intended to
confer upon any Person other than the parties hereto any rights or remedies
hereunder.

      

      Section
9.11   Interpretation. The article and section headings
contained in this Agreement are solely for the purpose of reference, are not
part of the agreement of the parties and shall not in any way affect the meaning
or interpretation of this Agreement.

      
        
           

        

        
          33

          
            

          

        

        
           

        

      

      Section 9.12   Entire
Agreement. This Agreement, including the documents, schedules,
instruments and agreements referred to herein, and the agreements and documents
executed. contemporaneously herewith embody the entire agreement and
understanding of the parties hereto in respect of the subject matter hereof.
There are no restrictions, promises, representations, warranties, covenants, or
undertakings, other than those expressly set forth or referred to herein or
therein. This Agreement supersedes all prior agreements and understandings
between the parties with respect to such subject matter.

      

      Section
9.13   Expenses. Each of the parties hereto shall bear its
own expenses in connection with the negotiation, execution and performance of
this Agreement, the Transaction Documents and the transactions contemplated
hereby and thereby.

      

      Section 9.14   Jury
Waiver.                                                           EACH
OF THE PARTIES HEREBY

      UNCONDITIONALLY
WAIVES ANY RIGHT TO A JURY TRIAL WITH RESPECT TO AND IN ANY ACTION, PROCEEDING,
CLAIM, COUNTERCLAIM, DEMAND, DISPUTE OR OTHER MATTER WHATSOEVER ARISING OUT OF
THIS AGREEMENT.

      

      Section
9.15   Confidentiality. After Closing, REG and the
Purchaser will, and will ensure that their respective Affiliates and
Representatives will hold in strict confidence and not use in any way except in
connection with the consummation of the transactions contemplated hereby, any
confidential information regarding the Members or the business of the Members
obtained in connection with the transactions contemplated hereby.

      

      

      

      [SIGNATURE
PAGE FOLLOWS]

      
        
           

        

        
          34

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, each of the parties hereto has executed this Agreement as of
the date first above written.

      SELLERS:

      BIODIESEL INVESTMENT

      GROUP, LLC

      

      

      By:
__________________________

      Name:

      Title:

      

      BUNGE NORTH AMERICA, INC.

      

      

      By:  ___________________________

      Name:

      Title:

      

      REG:

      

      RENEWABLE ENERGY GROUP,
INC.

      

      

      By:
____________________________

      Name:

      Title:

      

      PURCHASER:

      

      BLACKHAWK BIOFUELS, LLC

      

      

      By:
_____________________________

      Name:

      Title:

      

      COMPANY:

      

      BIOFUELS COMPANY OF AMERICA,
LLC

      

      

      By:  ____________________________

      Name:

      Title:

      

      ASSET
PURCHASE AGREEMENT SIGNATURE PAGE

      
        
           

        

        
          35

          
            

          

        

        
           

        

      

      EXHIBIT
A

      DEFINITIONS

      

      For the purposes of this Agreement, the
following terms shall have the meanings, specified or referred to below whether
or not capitalized when used in this Agreement.

      

      "Acquisition Proposal"
shall have the meaning set forth in Section
5.4.

      

      "Affiliate" means,
with respect to a specified Person, (a) any Entity of which such Person is an
executive officer, manager, director, partner, trustee or other fiduciary or is
directly or indirectly the beneficial owner of 20% or more of any class of
equity security thereof or other financial interest therein; (b) if such Person
is an individual, any relative or spouse of such individual, or any relative of
such spouse (such relative being related to the individual in question within
the second degree) and any Entity of which any such relative, spouse, or
relative of spouse is an executive officer, manager, director, partner, trustee
or other fiduciary or is directly or indirectly the beneficial owner of 20% or
more of any class of equity security thereof or other financial interest
therein; (c) if such Person is an Entity, any executive officer, manager,
director, partner, trustee or other fiduciary or any direct or indirect
beneficial owner of 20% or more of any class of equity security of, or other
financial interest in, such Entity; or (d) any Person that directly, or
indirectly through one or more intermediaries, controls, is controlled by, or is
under common control with the Person specified. For purposes of this definition,
"executive officer" means the president, any vice president in charge of a
principal business unit, division or function such as sales, administration,
research and development, or finance, and any other officer, employee or other
Person who performs a policy making function or has the same duties as those of
a president or vice president.' For purposes of this definition, "manager" or
"director" means a member of the board of managers or board of directors, and
any other Person who performs a governance function similar to a member of the
board of managers or board of directors. For purposes of this definition,
"control" (including "controlling", "controlled by" and "under common control
with") means the possession, direct or indirect, of the power to direct or cause
the direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise. When used without
reference to a particular Person, "Affiliate" means an Affiliate of the
Company.

      

      "Agreement" means this
Purchase Agreement, including the schedules and exhibits attached hereto, which
are hereby incorporated herein.

      

      "Assets" shall mean
the Facility and all contracts (including, but not limited to, Assumed
Contracts), furniture, equipment, Intellectual Property Assets, personal
property and intangible assets (including tax credits and Governmental
Authorizations), and any leasehold interests in real property and fixtures,
excluding Excluded Assets, owned directly or indirectly by the
Company.

      

      "Assumed Contracts"
shall have the meaning set forth in Article
IV.

      

      "Assumed Liabilities"
shall mean the amount of the Fagen Retainage, the De Smet Retainage, the
Buchanan Street Bridge Retainage, the REG Start-Up Fees, and the REG Equipment
Allowance as of the Closing Date.

      
        
           

        

        
          36

          
            

          

        

        
           

        

      

      "Balance Differential
Payment" shall have the meaning set forth in Section
1.2(d).

      

      "Bank Balance" shall have the meaning
set forth in Section 1.2(d).

      

      "BIG" shall have the
meaning set forth in the recitals.

      

      "Buchanan Street Bridge
Retainage" shall mean the amount owed as of the Closing Date by the
Company under the Letter Agreement dated October 17, 2006, by and between the
Company and Bunge Milling, Inc. regarding the parties relative payments for the
Buchanan Street Bridge expansion project.

      

      "Bunge" shall have the
meaning set forth in the recitals.

      

      "Business Day" means a
day of the year on which banks are not required or authorized to close in New
York, New York.

      

      "Closing" shall have
the meaning set forth in Section
1.3.

      

      "Closing Date" shall
have the meaning set forth in Section
1.3.

      

      "Closing Indebtedness"
shall be determined as provided in Section
1.2(d).

      

      "Code" means the
Internal Revenue Code of 1986, as amended.

      

      "Company" shall have
the meaning set forth in the recitals.

      

      "Company Disclosure
Schedule" shall mean the disclosure schedules of the Company and the
Members, which are attached hereto and made a part hereof.

      

      "Company Membership
Interests" shall have the meaning set forth in the recitals.

      

      "Confidentiality
Agreement" shall have the meaning set forth in Section
6.1(f).

      

      "Construction Loan
Agreement" means that certain Construction Loan Agreement between Company
as Borrower and Fifth Third Bank as Lender dated November 3, 2006, and all
related documents and agreements referred to therein.

      

      "DCEO Grant Agreement"
shall mean the Grant Agreement dated August 15, 2006 between State of Illinois
Department of Commerce and Economic Opportunity and Biofuels Company of America,
LLC: Notice of Grant Award No. 07-27003, Renewable Fuels

      Development
Program-Ethanol Plants.

      

      "DCEO Grant Credit"
shall mean the credit in the amount of two hundred thousand dollars ($200,000)
granted by Purchaser to Company as of the Closing Date in exchange for all
right, title and interest in and to the final payment under the DCEO Grant
Agreement.

      
        
           

        

        
          37

          
            

          

        

        
           

        

      

      "Debt Service Fund
Account" means that certain escrow account established on behalf of
Company to Fifth Third Bank whereby Company has deposited the required cash
portion of the Debt Service Amount, such cash portion in the amount of
$2,800,000, which amount represents eighty percent (80%) of the Debt Service
Fund Amount.

      

      "Debt Service Fund
Amount" means a total amount of $3,500,000 consisting of the required
cash portion in the amount of $2,800,000, representing eighty percent (80%) of
the total Debt Service Fund Amount, and the Debt Service Fund Guaranty for
$700,000, representing 20% of the total Debt Service Fund Amount.

      

      "Debt Service Fund
Guaranty" means that certain Guaranty given by Bunge to Fifth Third Bank
and dated on or about November 3, 2006, which Guaranty guarantees twenty percent
(20%) of the obligations of Company per to the Debt Service Fund (in lieu of a
cash deposit), and all amendments, modifications, replacements, restatements,
extensions and renewals thereof.

      

      "De Smet Agreement"
means the Equipment Purchase and Sale Agreement between the Company and De Smet
Ballestra North America, Inc. dated September 7, 2006, as amended, prior to the
Effective Date of this Agreement.

      

      "De Smet Retainage"
shall mean the retainage amount owed as of the Closing Date by the Company to De
Smet Ballestra North America, Inc. under the De Smet Agreement.

      

      "Effective Date" shall
have the meaning set forth in the recitals.

      

      "Encumbrance" means
any lien, pledge, hypothecation, charge, security interest, encumbrance, equity,
trust, equitable interest, claim, right of possession, burden, covenant,
infringement, interference, proxy, option, right of first refusal, legend,
defect, impediment, exception, condition, restriction, reservation, limitation,
impairment, restriction on or condition to the voting of any security,
restriction on the transfer of any security or other asset, restriction on the
receipt of any income derived from any security or other asset, and restriction
on the possession, use, exercise or transfer of any other attribute of
ownership, whether based on or arising from common law, constitutional
provision, statute or contract.

      

      "Entity" means any
limited liability company, general partnership, limited partnership,
corporation, joint venture, joint stock association, estate, trust, cooperative,
foundation, union, syndicate, consortium, enterprise, association, organization
or other entity of any kind or nature, including any Governmental
Authority.

      

      "Environmental Laws"
shall have the meaning set forth in Section
2.7(a).

      

      "Environmental
Permits" shall have the meaning set forth in Section
2.7(b)(i).

      

      "ERISA" means the
Employee Retirement Income Security Act of 1974, as amended from time to time,
or any successor law, and all rules, regulations, rulings and interpretations
adopted by the Internal Revenue Service or the Department of Labor
thereunder.

      

      "Escrow Agent" shall
have the meaning set forth in Section
1.2(c).

      
        
           

        

        
          38

          
            

          

        

        
           

        

      

      "Escrow Agreement"
shall have the meaning set forth in Section
1.2(c).

      

      "Escrow Amount" shall
have the meaning set forth in Section
1.2(c).

      

      "Escrowed Cash" shall
have the meaning set forth in Section
1.2(c).

      

      "Escrowed Stock" shall
have the meaning set forth in Section
1.2(c).

      

      "Escrow Fund" shall
have the meaning set forth in Section
1.2(c).

      

      "Excluded Assets"
shall mean raw materials, rolling stock and vehicles, office furniture, office
equipment, office computer hardware and software, cold filtration equipment, and
other equipment not included in the Fagen Agreement or De Smet
Agreement.

      

      "Facility" shall have
the meaning set forth in the Recitals.

      

      "Fagen Agreement"
means the Construction Management Services Agreement between the Company and
Fagen, Inc. dated September 8, 2006 as amended prior to the Effective Date of
this Agreement.

      

      "Fagen Retainage"
shall mean the retainage amount owed as of the Closing Date by the Company to
Fagen, Inc. under the Fagen Agreement.

      

      ["Fair Market Value"
shall mean the Fair Market Value of the common stock of REG determined in the
manner set forth in Section 4(b) of the Stockholder Agreement.]

      

      "Fifth Third Bank"
means Fifth Third Bank, a Michigan banking corporation, and Lender on the
Construction Loan Agreement.

      

      "GAAP" means generally
accepted United States accounting principles, consistently applied.

      

      "Governmental
Authority" means any foreign governmental authority, the United States of
America, any state of the United States, any local authority and any political
subdivision of any of the foregoing, any multi-national organization or body,
any agency, department, commission, board, bureau, court or other authority
thereof, or any quasi-governmental or private body exercising, or purporting to
exercise, any executive, legislative, judicial, administrative, police,
regulatory or taxing authority or power of any nature.

      

      "Governmental
Authorization" means any permit, license, franchise, approval,
certificate, consent, ratification, permission, confirmation, endorsement,
waiver, certification, registration, qualification or other authorization
issued, granted, given or otherwise made available by or under the authority of
any Governmental Authority or pursuant to any Legal Requirement.

      

      "Hazardous Material"
shall have the meaning set forth in Section
2.7(b)(i).

      

      "IFA" means the
Illinois finance Authority.

      
        
           

        

        
          39

          
            

          

        

        
           

        

      

      "IFA Payment" means
One Million Dollars ($1,000,000) payable to the IFA.

      

      "Indemnified Party"
shall have the meaning set forth in Section
7.3.

      

      "Indemnifying Party"
shall have the meaning set forth in Section
7.3.

      

      "Intellectual Property
Assets" means
all patents, patent applications, copyrights, inventions, processes, formulas,
patterns, designs, know how, trade, secrets, confidential information, software,
technical information, process technology, plans, drawings and blue prints owned
or used by the Company or licensed by the Company as licensee or
licensor.

      

      "IRS" means the United
States Internal Revenue Service.

      

      "Knowledge" or "Known"
- An individual shall be deemed to have "knowledge" of or to have "known" a
particular fact or other matter if such individual is actually aware of such
fact or other matter. The Company shall be deemed to have "knowledge" of or to
have "known" a particular fact or other matter if Mark A. Burke is actually
aware of such fact or other matter.

      

      "Legal Requirement"
means any law, statute, ordinance, decree, requirement, Order, treaty,
proclamation, convention, rule or regulation (or interpretation of any of the
foregoing) of, and the terms of any Governmental Authorization issued by, any
Governmental Authority.

      

      "Loss" means any loss,
damage (including punitive damage), liability (including without limitation
STRICT LIABILITY), decline in value, fine, penalty, tax, fee, charge, cost or
expense (including, without limitation, costs of attempting to avoid or in
opposing the imposition thereof and the reasonable fees and expenses of
attorneys, accountants and other professional advisors).

      

      "Material Adverse
Effect" means any material adverse change in the overall condition of a
party, taking into consideration all factors including, but not limited to, the
financial condition, properties, assets, liabilities, business, operations and
results of operations.

      

      "Order" means any
order, judgment, injunction, edict, decree, ruling, pronouncement,
determination, decision, opinion, sentence, subpoena, writ or award issued,
made, entered or rendered by any court, administrative agency or other
Governmental Authority or by any arbitrator.

      

      "Organizational
Documents" means the Articles or Certificate of Incorporation and Bylaws
for a corporation, and the Articles of Organization and Operating Agreement for
a limited liability company, and all other documents necessary to meet the Legal
Requirements for organization of the applicable entity type in its state of
organization.

      

      "Performance Testing"
means the start-up testing described on Exhibit C to the De Smet Agreement
performed in accordance with Section 5.8 of this Agreement.

      

      "Permitted Liens"
means (i) mechanics' liens, workmen's liens, carriers' liens, repairmen's liens,
landlord's liens, vendor's liens, liens for master's or crew's wages or other
like liens arising or incurred in the ordinary course of business in respect of
obligations that are not overdue, (ii) statutory liens for Taxes, assessments
and other similar governmental charges that are not yet

      
        
           

        

        
          40

          
            

          

        

        
           

        

      

      due or
are being contested in good faith and for which adequate reserves have been
established, (iii) liens incurred or deposits made to secure the performance of
bids, contracts, statutory obligations, surety and appeal bonds incurred in the
ordinary course of business, (iv) liens that arise under zoning, land use and
other similar imperfections of title that arise in the ordinary course of
business and that, individually or in the aggregate, do not materially affect
the Company's business as presently conducted or the value or marketability of
such title, (v) liens in the ordinary course that do not materially impair the
Company's use of the property or asset, (vi) those liens, if any, permitted to
be imposed by the Purchaser, or (vii) mortgage liens and security interests
granted to Fifth Third Bank by the Company with respect to the Assets securing
indebtedness in an amount not to exceed $24,650,000 as of the Closing
Date.

      

      "Person" means any
individual, Entity or Governmental Authority.

      

      "Pilot Agreement"
means the Biodiesel Purchase Agreement dated October 17, 2006 by and between the
Company and Pilot Travel Centers, LLC.

      

      "Preliminary Testing"
means the start-up testing described on Exhibit J attached hereto.

      

      "Proceeding" means any
action, suit, litigation, arbitration, lawsuit, claim, proceeding (including any
civil, criminal, administrative, investigative or appellate proceeding and any
informal proceeding), prosecution, contest, hearing, inquiry, inquest, audit,
examination, investigation, challenge, controversy or dispute commenced,
brought, conducted or heard by or before, or otherwise involving, any
Governmental Authority or any arbitrator.

      

      "Purchaser" shall have
the meaning set forth in the recitals.

      

      "Purchaser Escrow
Agreement" shall mean that certain Escrow Agreement dated December 4,
2006 by and between Purchaser and State Bank, an Illinois banking
corporation.

      

      "Purchaser's Indemnified
Parties" shall have the meaning set forth in Section 7.1(a). "Real
Property" shall have the meaning set forth in Section
2.5(a).

      

      "REG" shall have the
meaning set forth in the recitals.

      

      "REG Common Stock"
shall have the meaning set forth in Section
1.2(b).

      

      "REG Disclosure
Schedule" means the disclosure schedules of Purchaser, which are attached
hereto and made a part hereof.

      

      "REG Equipment
Allowance" shall mean the amount of $20,000 to be paid by Purchaser to
REG following the Closing upon submission of an invoice therefor in exchange for
equipment to be provided by REG or its Affiliates to the Company and
Purchaser.

      

      "REG Financial
Information" shall have the meaning set forth in Section
3.5.

      
        
           

        

        
          41

          
            

          

        

        
           

        

      

      "REG Start-Up Fees"
shall mean the amount of $483,001 to be paid by Purchaser to REG following the
Closing upon submission of an invoice therefor in exchange for the testing and
start-up services provided by REG or its Affiliates to the Company and
Purchaser.

      

      "Registration Rights
Agreement" shall have the meaning set forth in Section
6.3(a)(vi).

      

      "Release" shall have
the meaning set forth in Section
2.7(b)(i).

      

      "Representatives"
means the Affiliates, managers, directors, officers, agents or representatives,
including, without limitation, any investment banks, attorney or accountant
designated as a representative by a party to this Agreement.

      

      "Required Consents"
shall have the meaning set forth in Section
2.8(d).

      

      "SEC" means the
Securities and Exchange Commission.

      

      "Securities Act" shall
mean the Securities Act of 1933, as amended.

      

      "Seller Indemnified
Parties" shall have the meaning set forth in Section
7.2.

      

      "Stockholder
Agreement" shall have the meaning set forth in Section
6.3(a)(v).

      

      "Unsuccessful Performance
Testing" means the failure of the Facility to have been deemed accepted
by Purchaser in accordance with Section D of Exhibit C to the De Smet
Agreement.

      

      "Target Closing Date"
shall have the meaning set forth in Section
1.3.

      

      "Tax" means any tax
(including without limitation any income tax, franchise tax, capital gains tax,
gross receipts tax, license tax, value-added tax, surtax, excise tax, ad valorem
tax, transfer tax, stamp tax, sales tax, use tax, property tax, environmental
tax, inventory tax, occupancy tax, severance tax, withholding tax, payroll tax,
employment tax, gift tax, estate tax or inheritance tax), levy, assessment,
tariff, impost, imposition, toll, duty (including any customs duty), deficiency
or fee, and any related charge or amount (including any fine, penalty or
interest), imposed, assessed or collected by or under the authority of any
Governmental Authority or payable pursuant to any tax-sharing agreement or
pursuant to any other contract relating to the sharing or payment of any such
tax, levy, assessment, tariff, impost, imposition, toll, duty, deficiency or
fee.

      

      "Tax Return" means any
return (including any information return), report, claim for refund, statement,
declaration, schedule, notice, notification, form, or other document or
information filed with or submitted to, or required to be filed with or
submitted to, any Governmental Authority in connection with the determination,
assessment, collection or payment of any Tax or in connection with the
administration, implementation or enforcement of or compliance with any Legal
Requirement relating to any Tax, and including any amendment
thereof.

      
        
           

        

        
          42

          
            

          

        

        
           

        

      

      "Transaction
Documents" means the Bill of Sale, the Escrow Agreement, the Assignment
and Assumption Agreement, Stockholder Agreement, Registration Rights Agreement,
Confidentiality, and Noncompetition Agreement of Biodiesel Investment Group,
LLC, Oil Feedstock Supply Agreement and Services Agreement and the other
agreements and instruments contemplated hereby or thereby.

      
        
           

        

        
          43

          
            

          

        

        
           

        

      

      EXHIBIT
B

      ESCROW
AGREEMENT

      
        
           

        

        
          44

          
            

          

        

        
           

        

      

      EXHIBIT
C

      OIL
FEEDSTOCK SUPPLY AGREEMENT

      
        
           

        

        
          45

          
            

          

        

        
           

        

      

      EXHIBIT
D

      SERVICES
AGREEMENT

      
        
           

        

        
          46

          
            

          

        

        
           

        

      

      EXHIBIT
E

      BILL
OF SALE

      
        
           

        

        
          47

          
            

          

        

        
           

        

      

      EXHIBIT
F

      ASSIGNMENT
AND ASSUMPTION AGREEMENT

      
        
           

        

        
          48

          
            

          

        

        
           

        

      

      EXHIBIT
G

      CONFIDENTIALITY
AGREEMENT

      
        
           

        

        
          49

          
            

          

        

        
           

        

      

      EXHIBIT
H

      STOCKHOLDER
AGREEMENT

      
        
           

        

        
          50

          
            

          

        

        
           

        

      

      EXHIBIT
I

      REGISTRATION
RIGHTS AGREEMENT

      
        
           

        

        
          51

          
            

          

        

        
           

        

      

      REG
DISCLOSURE SCHEDULE

      
        
           

        

        
          52

          
            

          

        

        
           

        

      

      SCHEDULE
3.5

      FINANCIAL
INFORMATION

      

      (to
be attached)

      
        
           

        

        
          53

          
            

          

        

        
           

        

      

      SCHEDULE
3.6

      UNDISCLOSED
LIABILITIES

      

      (to
be attached)

      
        
           

        

        
          54

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