Document:

Exhibit
10.69

SECURITIES PURCHASE AGREEMENT

This Securities Purchase Agreement (this “Agreement”) is dated as of August
19, 2005, by and among Apollo Resources International, Inc., a Utah corporation
(the “Company”), Mr. Tommy Johnson (“Mr. Johnson”), Mr. Bruce Blackwell (“Mr. Blackwell”), Mr. William H.
Webster (“Mr. Webster”) and Mr. Robert
Glenn (“Mr. Glenn”).

WHEREAS, each of Mr. Johnson, Mr. Blackwell, Mr.
Webster and Mr. Glenn (collectively, the “Shareholders”)
owns shares of the issued and outstanding common stock of Earth Biofuels, Inc.,
a Mississippi corporation (“Earth Biofuels”);
and

WHEREAS, the Company has expressed a desire to acquire
from the Shareholders, additional issued and outstanding shares of common stock
of Earth Biofuels subject to the terms and conditions set forth in this
Agreement; and

WHEREAS, in consideration for such purchase, the
Company has offered to sell and issue to the Shareholders an aggregate of
6,000,000 restricted shares of the common stock of the Company.

NOW, THEREFORE, IN CONSIDERATION of the mutual
covenants contained in this Agreement, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
Company and the Shareholders agree as follows:

ARTICLE
I.

DEFINITIONS

1.1                           Definitions.  In addition to the terms defined elsewhere in
this Agreement, for all purposes of this Agreement, the following terms have
the meanings indicated in this Section 1.1:

“Earth Biofuels Common
Stock” means the common stock of Earth Biofuels, $1.00 par value
per share.

“Company Common Stock”
means the common stock of the Company, $0.001 par value per share, to be issued
and sold hereunder.

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

“Liens”
means a lien, charge, security interest, encumbrance or other restriction.

“Rule 144”
means Rule 144 promulgated by the Securities and Exchange Commission pursuant
to the Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted having substantially the same
effect as such Rule.

“Securities Act”
means the Securities Act of 1933, as amended.

 

“Trading Day”
means (i) a day on which the Company Common Stock is traded on the over-the-counter
market, as reported by the OTC Bulletin Board, or (ii) if the Company Common
Stock is not quoted on the OTC Bulletin Board, a day on which the Company
Common Stock is quoted in the over-the-counter market as reported
by the National Quotation Bureau Incorporated (or any similar organization or
agency succeeding its functions of reporting prices); provided, that in the
event that the Company Common Stock is not listed or quoted as set forth in (i)
or (ii) hereof, then Trading Day shall mean a Business Day.

“Trading Market”
means the following service on which the Common Stock is quoted for trading on
the date in question: the American Stock Exchange, the New York Stock Exchange,
the Nasdaq National Market or the Nasdaq SmallCap Market.

ARTICLE
II.

PURCHASE AND SALE

2.1                           Closing.  Upon satisfaction of the conditions set forth
in Section 2.2, the Company agrees to issue (a) 600,000 shares of Company
Common Stock to Mr. Johnson (or his designees), (b) 3,240,000 shares of Company
Common Stock to Mr. Blackwell (or his designees), (c) 1,080,000 shares of Company
Common Stock to Mr. Webster (or his designees) and (d) 1,080,000 shares of
Company Common Stock to Mr. Glenn (or his designees), in consideration of the
sale to the Company of (w) 300 of the issued and outstanding shares of Earth
Biofuels Common Stock owned by Mr. Johnson, (x) 1,620 of the issued and
outstanding shares of Earth Biofuels Common Stock owned by Mr. Blackwell, (y)
540 of the issued and outstanding shares of Earth Biofuels Common Stock owned
by Mr. Webster and (z) 540 of the issued and outstanding shares of Earth
Biofuels Common Stock owned by Mr. Glenn 
The closing of the sale and purchase of the shares of Company Common
Stock and the shares of Earth Biofuels Common Stock under this Agreement (the “Closing”) shall occur at the offices of the
Company on August 19, 2005 (the “Closing
Date”).

2.2                           Closing Conditions.

(a)         Conditions to the
Shareholders’ Obligations.  The
obligation of each of the Shareholders to sell their respective shares of Earth
Biofuels to the Company, and to acquire the shares of Company Common Stock at
the Closing is subject to the fulfillment of the following conditions, any of
which may be waived by the Shareholders:

(i)                At
the Closing, the Company shall deliver or cause to be delivered to the
Shareholders, this Agreement duly executed by the Company;

(ii)               At
the Closing, the Company shall deliver or cause to be delivered to Mr. Johnson,
a copy of the Company’s written instructions to its transfer agent, Colonial
Stock Transfer Company, Inc.(the “Transfer Agent”),
directing the Transfer Agent to issue to Mr. Johnson (or his designees) an
aggregate of 600,000 shares of Company Common Stock;

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(iii)              At
the Closing, the Company shall deliver or cause to be delivered to Mr.
Blackwell, a copy of the Company’s written instructions to its Transfer Agent,
directing the Transfer Agent to issue to Mr. Blackwell (or his designees) an
aggregate of 3,240,000 shares of Company Common Stock;

(iv)              At
the Closing, the Company shall deliver or cause to be delivered to Mr. Webster,
a copy of the Company’s written instructions to its Transfer Agent, directing
the Transfer Agent to issue to Mr. Webster (or his designees) an aggregate of
1,080,000 shares of Company Common Stock;

(v)               At
the Closing, the Company shall deliver or cause to be delivered to Mr. Glenn, a
copy of the Company’s written instructions to its Transfer Agent, directing the
Transfer Agent to issue to Mr. Glenn (or his designees) an aggregate of
1,080,000 shares of Company Common Stock; and

(vi)              All
representations and warranties of the Company contained herein shall be true
and correct in all material respects.

(b)         Conditions to
Company’s Obligations.  The
obligation of the Company to sell and issue the Company Common Stock at the
Closing is subject to the fulfillment of the following conditions, any of which
may be waived by the Company:

(i)                At
the Closing, each of the Shareholders shall deliver or cause to be delivered to
the Company, this Agreement duly executed by each of the Shareholders;

(ii)               At
the Closing, Mr. Johnson shall deliver to the Company (a) one or more stock
certificates, appropriately endorsed, reflecting his ownership of 300 shares of
Earth Biofuels Common Stock or (b) executed stock powers with respect to his
ownership of 300 shares of Earth Biofuels Common Stock (with original stock
certificates to be furnished to the Company immediately following closing);

(iii)              At
the Closing, Mr. Blackwell shall deliver to the Company (a) one or more stock
certificates, appropriately endorsed, reflecting his ownership of 1,620 shares
of Earth Biofuels Common Stock or (b) executed stock powers with respect to his
ownership of 1,620 shares of Earth Biofuels Common Stock (with original stock
certificates to be furnished to the Company immediately following closing);

(iv)              At
the Closing, Mr. Webster shall deliver to the 540 shares of Earth Biofuels
Common Stock or (b) executed stock powers with respect to his ownership of 540
shares of Earth Biofuels Common Stock (with original stock certificates to be
furnished to the Company immediately following closing);

(v)               At
the Closing, Mr. Glenn shall deliver to the Company (a) one or more stock
certificates, appropriately endorsed, reflecting his ownership of 540 shares of
Earth Biofuels Common Stock or (b) executed stock powers with respect to his

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ownership of 540 shares of Earth Biofuels Common Stock (with original
stock certificates to be furnished to the Company immediately following
closing); and

(vi)              All
representations and warranties of each of the Shareholders contained herein
shall be true and correct in all material respects.

ARTICLE
III.

REPRESENTATIONS AND WARRANTIES

3.1            Representations and
Warranties of the Company.  The
Company hereby makes the following representations and warranties as of the
date hereof to each of the Shareholders:

(a)         Organization and
Qualification.  The Company is an
entity duly incorporated or otherwise organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation, with the
requisite power and authority to own and use its properties and assets and to
carry on its business as currently conducted. 
The Company is not in violation of any of the provisions of its
certificate or articles of incorporation or bylaws.  The Company is duly qualified to conduct
business and is in good standing as a foreign corporation or other entity in
each jurisdiction in which the nature of the business conducted or property
owned by it makes such qualification necessary.

(b)         Authorization;
Enforcement.  The Company has the
requisite corporate power and authority to enter into and to consummate the
transactions contemplated by this Agreement and otherwise to carry out its
obligations hereunder.  The execution and
delivery of this Agreement by the Company and the consummation by it of the transactions
contemplated thereby have been duly authorized by all necessary action on the
part of the Company and no further action is required by the Company in
connection therewith.

(c)         Issuance of the
Company Common Stock.  The shares of
Company Common Stock to be issued to the Shareholders hereunder are duly
authorized and, when issued and paid for in accordance with this Agreement,
will be duly and validly issued, fully paid and nonassessable, free and clear
of all Liens.

3.2            Representations and Warranties
of the Shareholders.  The
Shareholders hereby represent and warrant to the Company as follows:

(a)         Investment Intent.  The Shareholders understand that the shares
of Company Common Stock are “restricted securities” and have not been
registered under the Securities Act or any applicable state securities
law.  Each the Shareholders is acquiring
his pro-rata portion of the shares of Company Common Stock as principal for his
own account for investment purposes only and not with a view to or for
distributing or reselling such shares of Company Common Stock or any part
thereof, has no present intention of distributing any of such shares of Company
Common Stock and has no arrangement or

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understanding with any other persons regarding the distribution of such
shares of Company Common Stock.

(b)         Earth Biofuels Common Stock.  The shares of Earth Biofuels Common Stock to
be sold to the Company hereunder are duly and validly issued, fully paid and
nonassessable, free and clear of all Liens. 
As a consequence of this Agreement, the Company shall own 80% of the
issued and outstanding shares of Earth Biofuels Common Stock.

ARTICLE
IV.

OTHER AGREEMENTS OF THE PARTIES

4.1                           Transfer
Restrictions.

(a)         The
Company Common Stock may only be disposed of in compliance with state and
federal securities laws.  In connection
with any transfer of Company Common Stock other than pursuant to a sale under
an effective registration statement, the Company may require the transferor
thereof to provide to the Company an opinion of counsel, the form and substance
of which opinion shall be reasonably satisfactory to the Company, to the effect
that such transfer does not require registration of such transferred Company
Common Stock under the Securities Act.

(b)         The
Shareholders agree to the imprinting, so long as is required by this Section
4.1(b), of a legend on any of the Company Common Stock substantially in the
following form:

THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). 
THE SECURITIES MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED
UNLESS REGISTERED UNDER THE SECURITIES ACT AND QUALIFIED UNDER APPLICABLE STATE
SECURITIES LAWS OR UNLESS SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS
EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND THE
QUALIFICATION REQUIREMENTS OF APPLICABLE STATE SECURITIES LAWS AND THE COMPANY
RECEIVES AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION AND QUALIFICATION ARE NOT REQUIRED.

4.2                           Furnishing
of Information.  As long as any of
the Shareholders owns shares of Company Common Stock, the Company covenants to
timely file all reports required to be filed by the Company after the date
hereof pursuant to the Exchange Act. 
Upon the request of any of the Shareholders, the Company shall deliver
to such holder a written certification of a duly authorized officer as to
whether it has complied with the preceding sentence.  The Company further covenants that it will
take such further action as any of the Shareholders may reasonably

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request, all to the extent required from time to time
to enable any or all of the Shareholders to sell such Company Common Stock
without registration under the Securities Act within the limitation of the exemptions
provided by Rule 144.

4.3                           Quotation/Listing
of Common Stock.  The Company hereby
agrees to use its reasonable best efforts to maintain the quotation or listing
of the Company Common Stock on the OTC
Bulletin Board.  The Company
further agrees, if the Company applies to have the Company Common Stock traded
on any other Trading Market, it will include in such application the Company
Common Stock, and will take such other action as is necessary to cause the
Company Common Stock to be listed on such other Trading Market as promptly as
possible.

4.4                           Confidentiality.  Each of the Shareholders agrees with the
Company to keep strictly confidential all non-public information regarding the
Company (“Confidential Information”).  Each of the Shareholders understands that the
Confidential Information is strictly confidential and proprietary to the
Company.  Each of the Shareholders hereby
acknowledges that he is prohibited from reproducing and/or distributing the
Confidential Information, or any other offering materials or other information
provided by the Company in connection with their consideration of an investment
in the Company, in whole or in part, or divulging or discussing any of their
contents to third parties.  Further, each
of the Shareholders understands that the existence and nature of all
conversations and presentations, if any, regarding the Company must be kept
strictly confidential.  Each of the
Shareholders understands that United States Federal and state securities laws
impose restrictions on trading based on material non-public information
regarding the Company.

4.5                           Corporate Records.  Immediately following closing, Mr. Johnson
will (a) furnish to the Company the minute book for Earth Biofuels, complete
with originals of the articles of incorporation, bylaws, corporate minutes,
share certificates and corporate seal, and (b) furnish to the Company, such
financial and other records and take such other actions as may be reasonably
requested by the Company, with respect to Earth Biofuels.

ARTICLE
V.

MISCELLANEOUS

5.1                           Fees and Expenses.  Except as otherwise set forth in this
Agreement, each party shall pay the fees and expenses of its advisers, counsel,
and all other expenses incurred by such party incident to the negotiation,
preparation, execution, delivery and performance of this Agreement.

5.2                           Entire Agreement.  This Agreement contains the entire
understanding of the parties with respect to the subject matter hereof and
supersede all prior agreements and understandings, oral or written, with
respect to such matters, which the parties acknowledge have been merged into
such documents, exhibits and schedules.

5.3                           Notices.  Any and all notices or other communications
or deliveries required or permitted to be provided hereunder shall be in
writing and shall be deemed given and effective on the earliest of (a) the date
of transmission, if such notice or communication is delivered via facsimile at
the facsimile number specified on the signature pages attached hereto

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prior to 5 p.m. (Dallas, Texas time) on a Trading Day,
(b) the next Trading Day after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number specified on
the signature pages attached hereto on a day that is not a Trading Day or later
than 5 p.m. (Dallas, Texas time) on any Trading Day, (c) the Trading Day
following the date of mailing, if sent by U.S. nationally recognized overnight
courier service, or (d) upon actual receipt by the party to whom such notice is
required to be given.  The address for
such notices and communications shall be as set forth on the signature pages
attached hereto.

5.4                           Amendments;
Waivers.  Without the written consent
of each of the parties hereto, the terms of this Agreement may not be waived or
amended.  No waiver of any default with
respect to any provision, condition or requirement of this Agreement shall be
deemed to be a continuing waiver in the future or a waiver of any subsequent
default or a waiver of any other provision, condition or requirement hereof,
nor shall any delay or omission of either party to exercise any right hereunder
in any manner impair the exercise of any such right.

5.5                           Construction.  The headings herein are for convenience only,
do not constitute a part of this Agreement and shall not be deemed to limit or
affect any of the provisions hereof.  The
language used in this Agreement will be deemed to be the language chosen by the
parties to express their mutual intent, and no rules of strict construction will
be applied against any party.

5.6                           Successors
and Assigns.  This Agreement shall be
binding upon and inure to the benefit of the parties and their successors and
permitted assigns.  Nothing in this
Agreement, express or implied, is intended to confer upon any party other than
the parties hereto or their respective successors and assigns any rights,
remedies, obligations or liabilities under or by reason of this Agreement,
except as expressly provided by this Agreement.

5.7                           Governing Law.  All questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be governed by
and construed and enforced in accordance with the internal laws of the State of
Texas, without regard to the principles of conflicts of law thereof.  Each party agrees that all legal proceedings
concerning the transactions contemplated by this Agreement shall be commenced
exclusively in the state and federal courts sitting in the City of Dallas,
Texas.  If any party shall commence an
action or proceeding to enforce any provisions of this Agreement, then the
prevailing party in such action or proceeding shall be reimbursed for its
attorneys’ fees and other costs and expenses incurred with the investigation,
preparation and prosecution of such action or proceeding.

5.8                           Survival.  The representations and warranties contained
in Section 3.1 and 3.2 shall survive the Closing for a period of one (1) year.

5.9                           Execution.  This Agreement may be executed in two or more
counterparts, all of which when taken together shall be considered one and the
same agreement and shall become effective when counterparts have been signed by
each party and delivered to the other party, it being understood that both
parties need not sign the same counterpart. 
In the event that any signature is delivered by facsimile transmission,
such signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force
and effect as if such facsimile signature page were an original thereof.

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(Signature Page Follows)

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IN WITNESS WHEREOF, the parties hereto have caused
this Securities Purchase Agreement to be duly executed by their respective
authorized signatories as of the date first indicated above.

	
  APOLLO RESOURCES

  	
   

  
	
  INTERNATIONAL,
  INC.

  	
  Address for Notice:

  
	
   

  	
   

  
	
   

  	
  Apollo Resources
  International, Inc.

  
	
   

  	
  3001 Knox
  Street, Suite 403

  
	
  By:

  	
  /s/ DENNIS
  MCLAUGHLIN

  	
   

  	
  Dallas, TX 75205

  
	
   

  	
   

  
	
  Name:  Dennis McLaughlin

  	
  Attn: Dennis McLaughlin

  
	
   

  	
   

  
	
  Title:    Chief
  Executive Officer

  	
  Tel: (214) 389-9800

  
	
   

  	
  Fax: (214) 389-9806

  
	
   

  	
   

  
	
   

  	
   

  
	
  TOMMY
  JOHNSON

  	
  Address for Notice:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ TOMMY
  JOHNSON

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Name:  Tommy Johnson

  	
  Tel: (601)

  	
   

  	
   

  
	
   

  	
  Fax: (601)

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  BRUCE
  BLACKWELL

  	
  Address for Notice:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ R. BRUCE
  BLACKWELL

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Name:  Bruce Blackwell

  	
  Tel: 

  	
   

  	
   

  
	
   

  	
  Fax: 

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  WILLIAM
  H. WEBSTER

  	
  Address for Notice:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ WILLIAM H.
  WEBSTER

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Name:  William H. Webster

  	
  Tel: 

  	
   

  	
   

  
	
   

  	
  Fax: 

  	
   

  	
   

  
												

 

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  ROBERT GLENN

  	
  Address for Notice:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ ROBERT GLENN

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Name:  Robert Glenn

  	
  Tel: 

  	
   

  	
   

  
	
   

  	
  Fax: 

  	
   

  	
   

  
							

 

 10EXHIBIT 10.70

 

PURCHASE AND SALE AGREEMENT

 

	
  Date:

  	
   

  	
  February 25, 2005

  
	
   

  	
   

  	
   

  
	
  Sellers:

  	
   

  	
  R. BRUCE BLACKWELL

  
	
   

  	
   

  	
  PO Box 16806, Jackson, MS 39236

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TOMMY JOHNSON

  
	
   

  	
   

  	
  PO Box 16806, Jackson, MS 39236

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ROBERT GLENN

  
	
   

  	
   

  	
  PO Box 16806, Jackson, MS 39236

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WILLIAM WEBSTER

  
	
   

  	
   

  	
  PO Box 16806, Jackson, MS 39236

  
	
   

  	
   

  	
   

  
	
  Buyer:

  	
   

  	
  APOLLO RESOURCES INTERNATIONAL, INC.

  
	
   

  	
   

  	
  3001 Knox St., Suite 403, Dallas, TX 75205

  
	
   

  	
   

  	
  Contact: Dennis G. McLaughlin, III, CEO

  
	
   

  	
   

  	
   

  
	
  Company:

  	
   

  	
  EARTH BIOFUELS, INC.

  
	
   

  	
   

  	
  PO Box 16806, Jackson, MS 39236

  
	
   

  	
   

  	
  Contact: R. Bruce Blackwell, CEO

  
	
   

  	
   

  	
   

  
	
  Interest:

  	
   

  	
  The “Interest” shall be inclusive of all of the
  following:

  
	
   

  	
   

  	
  1)

  	
  50% of the equity ownership of Company;

  
	
   

  	
   

  	
  2)

  	
  Buyer’s First Right of Refusal, as defined herein;
  and

  
	
   

  	
   

  	
  3)

  	
  Buyer’s Option to Buy, as defined herein

  
	
   

  	
   

  	
   

  	
   

  
	
  Consideration:

  	
   

  	
  The “Consideration” shall be inclusive of all of the
  following:

  
	
   

  	
   

  	
  1)

  	
  1,700,000 shares of the restricted common stock of
  Buyer; and

  
	
   

  	
   

  	
  2)

  	
  Future Option to Sell, as defined herein.

  
	
   

  	
   

  	
   

  	
   

  
	
  2005 NEAT:

  	
   

  	
  The Company’s actual Net Earnings After Taxes for
  calendar year 2005

  
	
   

  	
   

  	
   

  
	
  Second Purchase Date:

  	
   

  	
  February 1, 2006

  

 

Recitals

A.           The
Company is engaged in the production and distribution of bio-diesel.

B.             Sellers
are the sole shareholders of the Company.

C.             Buyer
wishes to pay Sellers the Consideration for the purchase of the Interest, and
upon the terms and subject to the conditions set forth in this Agreement.

D.            Sellers
wish to sell Buyer the Interest in exchange for the Consideration, and upon the
terms and subject to the conditions set forth in this Agreement.

Agreement

NOW, THEREFORE, in
consideration of the foregoing premises and the representations, warranties,
and covenants hereinafter set forth, and for other good and valuable
consideration, including the Consideration as herein defined, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

1.                                       Sale and Purchase.  Subject to the terms and conditions herein
set forth, and in reliance upon the representations, warranties and covenants
contained herein, Buyer agrees to purchase the Interest

 

from Sellers, and Sellers agree to sell the Interest to Buyer.

2.                                       Purchase Price.   The purchase
price for the Interest shall be the issuance and delivery of the Consideration
to Sellers (at their order), as those terms are defined above.

3.                                       Closing.  Closing of the
transaction contemplated herein (the “Closing”)
shall take place on Friday, February 25, 2005, at a time and place to be
mutually decided by the parties.  (The
date on which the Closing is held shall be referred to in this Agreement as the
“Closing Date.”)  At the Closing, Seller shall deliver to Buyer
the Interest, and Buyer shall deliver the Consideration.

4.                                       Buyer’s First Right of Refusal.  Sellers and the Company grant Buyer a first
right of refusal to purchase any portion or all of the remaining 50% of the
equity ownership interest in the Company, on and for terms equal to any other
bona-fide offer received by Sellers or the Company for the purchase of said remaining
50% portion.  This First Right of Refusal
shall be considered part and parcel to the Interest.

5.                                       Buyer’s Option to Buy. 
On the Second Purchase Date, if the five trading day trailing average
sale price of the Buyer’s common stock is $2 or more per share, Buyer
shall have an irrevocable option at its sole discretion to purchase the
remaining 50% of the equity ownership interest in the Company in exchange for
Buyer’s issuance, to the then existing owners of the remaining 50% of the
equity of the Company (“Other Company Shareholders”), of its restricted common
shares to be valued at $2.00 per share, with said remaining 50% to be then
valued at 50% of five times the 2005 NEAT, as defined herein.  This Option to Buy shall be considered part
and parcel to the Interest.

6.                                       Future Option to Sell. 
On that Second Purchase Date, if the five trading day trailing average
sale price of the Buyer’s common stock is less than $2 per share, the
Other Company Shareholders shall have an irrevocable option at their sole discretion
to sell the remaining 50% of the equity ownership interest in the Company in
exchange for Buyer’s issuance of its restricted common shares to be valued at
$2.00 per share, with said remaining 50% to be then valued at 50% of five times
the 2005 NEAT, as defined herein.  With
the prior written consent of the parties, this sale may be made under the same
terms but at a later date than the Second Purchase Date.  This Future Option to Sell shall be
considered part and parcel to the Consideration.

7.                                       Representations and Warranties of Sellers.  Sellers
hereby represent and warrant to Buyer that:

a.               Sellers
own all of the issued and outstanding equity ownership interests in the
Company.

b.              Sellers
are the sole legal and beneficial owners of the Interest, free and clear of any
and all liens, claims, and encumbrances, with full power to transfer the same
as contemplated herein.

c.               The
Proforma Financials of the Company, attached hereto as Exhibit “A”, represents
an accurate estimate of the Company’s current and proforma financial
condition.  Specifically, there are no
liens, debts or claims against any of the properties and assets of the Company
besides those listed in Exhibit “A”.

d.              Sellers
and/or the Company are not party to or bound by any contract, promissory note,
agreement, commitment, or obligation, creating or securing indebtedness,
obligations, or liabilities, a breach or default of which would be triggered by
Sellers’ execution and delivery of this Agreement.

e.               The
Company is a lawful corporation, validly existing and in good standing under
the laws of the state of Mississippi.  To
the best of Sellers’ knowledge, there are no pending actions or proceedings (i)
to limit or impair the Sellers’ or the Company’s power to engage in business or
(ii) to dissolve the Company.

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f.                 Sellers
and/or the Company will not enter into any new contracts or agreements between
the date of this Agreement and the Closing, except in the ordinary course of
business.

8.                                       Representations, Warranties and Covenants of Buyer.  Buyer hereby represents and warrants to
Sellers that:

a.               Buyer is a corporation duly organized,
validly existing and in good standing under the laws of the state of Utah and
the United States, and has all requisite power and authority to enter into,
perform and carry out all of its duties and obligations in the transaction
contemplated by this Agreement.

b.              The execution, delivery and performance of
this Agreement and the consummation of the transaction on the part of Buyer
contemplated hereunder have been duly authorized by all necessary corporate
action on the part of Buyer.  This
Agreement is (or will be when executed and delivered pursuant hereto) the
legal, valid and binding obligation of Buyer, enforceable in accordance with
its terms.

c.               Neither the execution and delivery of this
Agreement by Buyer, nor Buyer’s compliance with any of the terms and provisions
of this Agreement, nor the consummation of the transactions contemplated
hereby, will conflict with or result in a violation of, or constitute a material
default under its Bylaws or any other agreement, contract or commitment to
which it is a party; nor will the performance by Buyer of its obligations
hereunder violate any judgment, order, injunction, decree, regulation or ruling
of any court or governmental authority to which Buyer is subject.

9.                                       Attorney Fees.  If any legal action or other
proceeding is brought for the enforcement of this Agreement or any other
agreement, document, contract, instrument or other writing entered into in
connection herewith, because of an alleged dispute, breach, default, or
misrepresentation, in connection with any of the provisions of this Agreement
or such other writing, the successful or prevailing party shall be entitled to
recover its reasonable attorney fees, and other costs and expenses, incurred in
such action or proceeding, in addition to any other relief to which it or they
may be entitled.

10.                                 Loss and Liens. The risk of any loss, condemnation, or
destruction of all or any part of the Company’s property prior to closing is
upon the Sellers and/or the Company. 
Sellers and/or the Company shall not place, permit, or cause to be
placed any liens or encumbrances on the title to the Company’s property or the
Interest from the date hereof through closing.

11.                                 No Marketing.    No employee, agent or
representative of the Company or the Sellers may engage in marketing, nor
consider offers for selling, transferring, pledging or otherwise encumbering or
alienating the Interest prior to Closing.

12.                                 Notices.  In order to be effective
all notices, consents, approvals and disapprovals (“Notice”) required by this Agreement must be in writing, signed by
an officer or lawful agent of the party giving such Notice, and either (i)
personally delivered; (ii) placed in the mail, properly addressed, with postage
prepaid thereon; or (iii) deposited for delivery by a recognized, private
overnight courier for next business morning delivery, properly addressed, and
with the full waybill prepaid.  Notice
shall be deemed received and effective on the earlier of the date actually
received, or, if applicable, three (3) business days after being sent as
specified in clause (ii) of this paragraph. 
Notices must be addressed to the parties hereto at the addresses first
stated above.

13.                                 Entire Agreement; Amendments.  Each
of the parties represents that no promise or agreement which is not expressed
in this Agreement,

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has been made to such party in executing this
Agreement, and neither of the parties is relying upon any statement or
representation not contained in this Agreement. 
This Agreement, including the Exhibit hereto, constitutes the entire
understanding between the parties hereto relative to the subject matter hereof,
superseding any and all prior agreements, arrangements, and understandings,
written or oral, between the parties. 
This Agreement may be amended only by a written instrument signed by the
parties.

14.                                 Binding Effect; Permissibility of 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, and all future
shareholders of the Company.

15.                                 Governing Law and Jurisdiction.  This
Agreement shall be governed by and construed in accordance with the laws of the
state of Texas, without reference to its conflict of laws rules.  Jurisdiction and venue shall reside
exclusively in the courts of Dallas County, Texas.

16.                                 No Brokers.  Each party
represents and warrants that it has dealt with no broker or finder in connection
with the transaction contemplated by this Agreement, and that no broker or
other person is entitled to any commission or finder’s fee in connection with
this transaction.  Each party agrees to
indemnify, defend and hold harmless the other party against any commission or
finder’s fee alleged to be payable because of any act, omission or statement of
the indemnifying party.

17.                                 Severability.  If any provision of this Agreement is held to be
invalid or unenforceable by any court of competent jurisdiction, it is the
intent of all of the parties that all other provisions of this Agreement be
construed to remain fully valid, enforceable and binding on the parties.

18.                                 Covenant of Good Faith and Fair Dealing.  With
regard to their respective obligations and commitments under this Agreement,
each of Buyer. Sellers and the Company covenants that it shall act in good
faith and deal fairly with the other party.

19.                                 Reasonable Cooperation.  Each
party hereto agrees to execute and deliver such instruments and take such other
action as the other party may reasonably request in order to carry out the
intent of this Agreement.

20.                                 Multiple Counterparts.  This Agreement may be executed in multiple
counterparts and by facsimile, at the option of the parties.

21.                                 Equitable Remedies.  In the event of any breach of this Agreement,
the provisions of this Agreement may be enforceable in a court of equity by a
decree of specific performance.  Any
equitable remedy shall not be exclusive and shall be in addition to any other
remedy available.

22.                                 Power to Bind.  A responsible officer of the Company and the
Buyer has read and understands the contents of this Agreement and is empowered
and duly authorized on behalf of the Company and the Buyer to execute it.

23.                                 Plurality   When
the context requires, singular nouns and pronouns include the plural.

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IN WITNESS
WHEREOF, the parties hereto have caused their duly authorized representatives
to execute this Agreement on and effective as of the Date first set forth
herein.

	
  SELLERS:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ R. BRUCE BLACKWELL

  	
   

  	
  /s/ TOMMY JOHNSON

  	
   

  
	
  R. BRUCE BLACKWELL

  	
   

  	
  TOMMY JOHNSON

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ ROBERT GLENN

  	
   

  	
  /s/ WILLIAM WEBSTER

  	
   

  
	
  ROBERT GLENN

  	
   

  	
  WILLIAM WEBSTER

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  BUYER:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  APOLLO RESOURCES INTERNATIONAL, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ DENNIS G. MCLAUGHLIN, III

  	
   

  	
   

  	
   

  
	
  Dennis G. McLaughlin, III, CEO

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  COMPANY:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EARTH BIOFUELS, INC.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ R. BRUCE BLACKWELL

  	
   

  	
   

  	
   

  
	
  R. Bruce Blackwell, CEO

  	
   

  	
   

  	
   

  

 

 5

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