Document:

Exhibit 10.2

                      CONTRIBUTION AND ASSIGNMENT AGREEMENT

     This CONTRIBUTION AND ASSIGNMENT AGREEMENT (this "Agreement"), is dated as
of January 1, 2005, and is by and between RIDGEWOOD OLINDA, LLC, a Delaware
limited liability company ("Ridgewood Olinda"), RIDGEWOOD POWER B
FUND/PROVIDENCE EXPANSION, a Delaware business trust ("B Fund"), and RIDGEWOOD
RHODE ISLAND GENERATION, LLC, a Delaware limited liability company ("Ridgewood
Rhode Island"). Ridgewood Olinda, the B Fund and Ridgewood Rhode Island may be
referred to herein collectively as the "Parties" and individually as a "Party"

                                   WITNESSETH

     WHEREAS, Ridgewood Olinda owns two (2) Deutz TBG620V16K Gensets (the
"Equipment"), which Equipment is subject to an outstanding loan, evidenced by a
certain loan agreement and related documents between Ridgewood Olinda and U.S.
Bancorp (the "U.S. Bancorp Loan"); and

     WHEREAS, the Equipment was originally installed by Ridgewood Olinda at the
Olinda/Alpha Landfill in Brea, California; and

     WHEREAS, the B Fund formed Ridgewood Rhode Island to construct and develop
a landfill-gas fired electric generation facility at the Johnston Landfill
located in Johnston, Rhode Island and currently owns a 100% of Ridgewood Rhode
Island, and

     WHEREAS, Ridgewood Olinda and Ridgewood Rhode Island are affiliates in that
they are both managed by Ridgewood Power Management LLC and the B Fund and
Ridgewood Electric Power Trust I ("Trust I"), the owner of Ridgewood Olinda, are
both managed by Ridgewood Renewable Power, LLC; and

     WHEREAS, the Parties have determined that it would be beneficial to each
Party to transfer and assign the Equipment to Ridgewood Rhode Island, all upon
the terms and conditions hereof.

     NOW, THEREFORE, the Parties agree as follows:

     1)   Assignment. Ridgewood Olinda hereby assigns, grants, delivers and
transfers to Ridgewood Rhode Island possession and use of and control over, the
Equipment, including, but not limited to, any claims, actions, or damages
associated with or any payment made pursuant to the warranty of such Equipment
provided by Stewart & Stevenson ("S&S") pursuant to a certain Settlement
Agreement between S&S and Ridgewood Olinda, dated July 9, 2003. The B Fund and
Ridgewood Rhode Island agree that the Equipment will be used exclusively by
Ridgewood Rhode Island at the Johnston Landfill, unless otherwise agreed by the
Parties. Notwithstanding such assignment, Ridgewood Olinda shall retain
ownership of and title to the Equipment, except as otherwise provided in
Paragraph 4.

<PAGE>

     2)   Assumption. Ridgewood Rhode Island hereby accepts the foregoing
assignment and transfer and agrees to accept all obligations associated with the
Equipment, including but not limited to, repair and maintenance, operations and
insurance, provided however, that neither Ridgewood Rhode Island nor the B Fund
shall have any obligations or liability associated with the U.S. Bancorp Debt,
it being specifically understood that Ridgewood Olinda retains all rights and
obligations thereunder, or any other obligations of Ridgewood Olinda with
respect to the Equipment arising prior to the date hereof Ridgewood Olinda shall
indemnify, defend and hold the B Fund and Ridgewood Rhode Island harmless from
and against any and all claims, damages, fines, penalties or actions arising
prior to the date hereof, including but not limited to, the U. S. Bancorp Loan.

     3)   Ownership Interest. In exchange and as consideration for the
assignment of the Equipment, as set forth in Paragraph 1 hereof the B Fund
hereby assigns, grants and transfers to Ridgewood Olinda all right, title and
interest in and to a fifteen (15%) percent ownership interest in Ridgewood
Rhode Island. The B Fund and Ridgewood Olinda agree to enter into an "Amended
and Restated Limited Liability Company Agreement for Ridgewood Rhode Island
Generation, LLC" a copy of which is attached hereto as Exhibit A.

     4)   Transfer of Ownership. Upon payment in full of the U.S. Bancorp Loan
and discharge of any liens associated therewith, Ridgewood Olinda agrees to
transfer ownership of and free and clear title to the Equipment to Ridgewood
Rhode Island.

     5)   Lease Agreement Terminated. Upon execution of this Agreement, the
Lease Agreement entered into by Ridgewood Olinda and the B Fund, dated October
1, 2003, a copy of which is attached hereto as Exhibit B, shall terminate and be
of no further force and effect.

     6)   Entire Agreement This Agreement sets forth the entire understanding of
the Parties and supersedes any and all prior agreements, arrangements, and
understandings relating to the subject matter hereof. No representation,
promise, inducement, or statement of intent has been made by any party which is
not embodied in this Agreement, and no party shall be bound by or liable for any
alleged representation, promise, inducement, or statement of intention not
embodied herein.

     7    Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware, without regard to its
conflict of law principles.

     8.   Miscellaneous. This Agreement cannot be amended or modified except by
a writing signed by both parties. It may be executed in one or more counterpart
copies, each of which shall be deemed an original, but all of which shall
constitute the same instrument. Section headings used in this Agreement are for
convenience only and shall not affect the construction of this Agreement.

                                        2
<PAGE>

     IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly
executed on their behalf as of the date first set forth above.

RIDGEWOOD OLINDA, LLC
By: Ridgewood Management Corporation

By. /s/ John J. Bahrs
    -----------------
Name: John J. Bahrs
     -----------------
Title: VP - Operations
      -----------------

RIDGEWOOD B FUND/PROVIDENCE EXPANSION
By: Ridgewood Renewable Power, LLC, its Manager

By: /s/ Randall D. Holmes
    -----------------
Name: Randall D. Holmes
      -----------------
Title:President & C.O.O.
      -----------------

RIDGEWOOD RHODE ISLAND GENERATION, LLC

By: /s/ John J. Bahrs
    -----------------
Name: John J. Bahrs
     -----------------
Title: VP - Operations
      -----------------

                                        3
<PAGE>

                              AMENDED AND RESTATED
                       LIMITED LIABILITY COMPANY AGREEMENT
                                       Of
                      RIDGEWOOD RHODE ISLAND GENERATION LLC

     THIS AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT of RIDGEWOOD
RHODE ISLAND GENERATION LLC (this "Agreement") is entered into as of this 1st
day of January, 2005 among RIDGEWOOD POWER B FUND/PROVIDENCE EXPANSION, a
Delaware business trust ("B Fund"), RIDGEWOOD OLINDA, LLC, a Delaware limited
liability company ("Ridgewood Olinda"), and RIDGEWOOD RHODE ISLAND GENERATION,
LLC, a Delaware limited liability company ("Ridgewood Rhode Island" or the
"Company"). The B Fund, Ridgewood Olinda, and Ridgewood Rhode Island may be
referred to herein collectively as the "Parties" and individually as a "Party".

                                    RECITALS

     WHEREAS, on March 4, 2002, the B Fund formed Ridgewood Rhode Island under
the New Jersey Limited Liability Company Act to develop and construct a six (6)
megawatt ("MW") landfill gas fueled electric generation facility at the Johnston
Landfill in Johnston, Rhode Island; and

     WHEREAS, on December 24, 2002, Ridgewood Rhode Island was converted to a
Delaware limited liability company in accordance with Delaware Limited Liability
Company Act, 6 Del. C. ss.18-101 et seq; (the "Delaware Act");and

     WHEREAS, Ridgewood Olinda owned certain landfill gas electric generating
equipment with a capacity of 2.5 MW located at the Olinda/Alpha Landfill in
Brea, California (the "Equipment"); and

     WHEREAS, pursuant to a certain "Assignment and Contribution Agreement," of
even date herewith, among the B Fund, Ridgewood Olinda and Ridgewood Rhode
Island, a copy of which is attached hereto as Exhibit A, Ridgewood Olinda agreed
to contribute the possession, use, and ultimately, the ownership of the
Equipment to Ridgewood Rhode Island in exchange for a fifteen (15%) percent
ownership interest in Ridgewood Rhode Island; and

     WHEREAS, the Parties agreed to amend and restate the Limited Liability
Agreement of Ridgewood Rhode Island in its entirety as follows.

     NOW, THEREFORE, for good and valuable consideration, the Parties, intending
legally to be bound, agree as follows:

<PAGE>

                                   ARTICLE I:
                                  ORGANIZATION

     1.1  Organization. The Company was initially formed by the fling of a
Certificate of Formation with the State of New Jersey on March 4, 2002 pursuant
to the New Jersey Act. The Company was converted from a New Jersey limited
liability company to a Delaware limited liability company by fling a Certificate
of Formation and a Certificate of Conversion with the State of Delaware under
the Delaware Act on December 24, 2002. Under the Delaware Act, the existence of
the Company in Delaware shall be deemed to have commenced on March 4, 2002. The
Members and Company do hereby memorialize their approval of and consent to the
conversion of the Company from a New Jersey limited liability company to a
Delaware limited liability company under the Delaware Act. The Company filed a
Certificate of Cancellation in New Jersey on December 30, 2002. The existing
Certificate of Formation filed In Delaware states that the registered agent and
registered office of the Company in Delaware shall Initially be The Corporation
Trust Company, Corporation Trust Center, 1209 Orange Street, Wilmington,
Delaware 19801. The Certificate of Formation may be restated by the Manager (as
hereinafter defined) as provided in the Delaware Act or amended by the Manager
with respect to the address of the registered office of the Company in Delaware
or the name and address of the registered agent of the Company in Delaware or to
make corrections required by the Delaware Act. The Certificate of Formation as
so amended from time to time is referred to herein as the "Certificate".

     1.2  Purposes and Powers. Unless the Manager otherwise determines, the
Company shall have authority to engage in any lawful business, purpose or
activity permitted by the Act, and it shall possess and may exercise all of the
powers and privileges granted by the Delaware Act or which may be exercised by
any person, together with any powers incidental thereto, so far as such powers
or privileges are necessary or convenient to the conduct, promotion or
attainment of the business purposes or activities of the Company, including
without limitation the following powers:

          (a)   to conduct its business and operations in any state or territory
of the United States or in any foreign country or jurisdiction;

          (b)   to purchase, receive, take, lease or otherwise acquire, own,
hold, improve, maintain, use or otherwise deal in and with, sell, convey, lease,
exchange, transfer or otherwise dispose of, mortgage, pledge, encumber or create
a security interest in all or any of its real or personal property, or any
interest therein, wherever situated;

          (c)   to borrow or lend money or obtain or extend credit and other
financial accommodations, to invest and reinvest its funds in any type of
security or obligation of or interest in any public, private or governmental
entity, and to give and receive interests in real and personal property as
security for the payment of funds so borrowed, loaned, or invested;

                                        2
<PAGE>

          (d)   to make contracts, including contracts of insurance, incur
liabilities and give guaranties, whether or not such guaranties are in
furtherance of the business and purposes of the Company, including without
limitation, guaranties of obligations of other persons who are interested in the
Company or in whom the Company has an interest;

          (e)   to appoint one or more managers of the Company, to employ
officers, employees, agents and other persons, to fix the compensation and
define the duties and obligations of such personnel, to establish and carry out
retirement, incentive and benefit plans for such personnel, and to indemnify
such personnel to the extent permitted by this Agreement and the Act;

          (f)   to indemnify any person in accordance with the Delaware Act or
otherwise to the extent not prohibited by the Delaware Act or other applicable
law, and

          (g)   to institute, prosecute, and defend any legal action or
arbitration proceeding involving the Company, and to pay, adjust, compromise,
settle, or refer to arbitration any claim by or against the Company or any of
its assets.

     1.3  Principal Place of Business of Company. The Company's principal place
of business shall be do Ridgewood Management Corporation, 1314 King Street,
Wilmington, Delaware 19801. The Manager may change the Company's principal place
of business from time to time in the Manager's sole discretion.

     1.4  Reservation of Management of Company to Manager. The Company shall be
managed by a manager which shall have the powers and duties set forth in Article
5 (the "Manager").

     1.5  Initial Manager. The name and address of the Manager shall be listed
on Exhibit A and said schedule shall be amended from time to time by the Manager
to reflect the resignation or removal of the Manager or the appointment of a new
or additional Manager pursuant to this Agreement.

     1.6  Limited Liability of Manager. The Manager shall not be personally
obligated to any third party for any debt, obligation or liability of the
Company solely by reason of acting as a Manager.

     1.7  Admission of Additional Members. Whether additional members shall be
admitted as members of the Company shall be in the sole discretion of the
Members. If, at any time, the Company has two or more members, the members shall
with reasonable promptness make all amendments to this Agreement necessary to
reflect their agreement concerning the allocation of the Company's profits and
losses, the allocation of management rights, and other appropriate matters.

     1.8  Annual Accounting Period of Company. The Company's annual accounting
period for financial and tax purposes shall be the calendar year or other
appropriate period as determined by the Manager.

                                        3
<PAGE>

     1.9  Effect of Delaware Act. Except as otherwise provided in this Agreement
or by law, the business and internal affairs of the Company shall be governed by
the Delaware Act.

     1.10 Members and Membership Interest. The names of the Members and their
ownership interests in the Company is set forth in Exhibit A

                                   ARTICLE II
             PROTECTION OF LIMITED LIABILITY OF MEMBERS AND MANAGER

     2.1  Limitation of Liability of Members. Except as otherwise provided in
the Delaware Act, the Members of the Company shall not be obligated personally
for any debt, obligation or liability of the Company or of any future member,
whether arising in contract, tort or otherwise, solely by reason of being a
member of the Company. Except as otherwise provided in the Act, by law or
expressly in this Agreement, a Member shall not have any fiduciary or other duty
to another member with respect to the business and affairs of the Company, and a
Member shall not be liable to the Company or any other member for acting in good
faith reliance upon the provisions of this Agreement. A Member shall not have
any responsibility to restore any negative capital balance or to contribute to
or in respect of the liabilities or obligations of the Company or return
distributions made by the Company, except as required by the Delaware Act or
other applicable law. The failure of the Company to observe any formalities or
requirements relating to the exercise of its powers or the management of its
business or affairs under this Agreement or the Delaware Act shall not be
grounds for making its Members or Manager responsible for the liabilities of the
Company.

     2.2  Use of "LLC" with Company Name. The Manager shall ensure that the
abbreviation "LLC" appears after the name of the Company in all Company
stationery, checks, business cards, invoices, advertisements and other media
containing the name of the Company and likely to be read, seen or heard by third
parties.

     2.3  Separate Books and Accounts. The Manager shall ensure:

     (a)  that the books and accounts of the Company are maintained separately
from those of the Members and the Manager,

     (b)  that there is no commingling of the assets of the Company with those
of the Members or the Manager, and

     (c)  that the Members do not borrow money or other assets from the Company
or lend money or other assets to it except on the basis of reasonable
documentation and arm's length terms.

     2.4  Adequate Capitalization. The Manager shall use its best efforts to
ensure that the Company's cash and other assets, cash flow, insurance and other
financial resources are sufficient to enable it to meet its reasonably
foreseeable liabilities when due.

                                        4
<PAGE>

     2.5  Signing of Agreements, etc. In signing any agreement or other document
on behalf of the Company, the Manager shall expressly identify itself as a
manager. In dealings with third parties on behalf of the Company, the Manager
shall identify the Company as the party on whose behalf it is acting and shall
identify itself as the manager of the Company.

     2.6  No Misleading Third Parties. The Manager shall use its best efforts to
ensure that no third party is misled into believing that any Member or the
Manager is personally liable for any Company obligation.

                                   ARTICLE III
                              CAPITAL CONTRIBUTIONS

     The Members may make capital contributions to the Company in their sole
discretion but shall not be required at any time to make capital contributions
to the Company and shall not be subject to any penalties or damages for failure
to make any capital contributions. The Members shall look only to the assets of
the Company for return of its capital contributions.

                                   ARTICLE IV
                    ALLOCATIONS AND DISTRIBUTIONS OF PROFITS

     4.1  Allocations/Distributions. All items of profit and loss, income, gain,
expenses, loss, deduction and credit shall be allocated to the Members in
accordance with their interest, as set forth in Exhibit A. Distributions, if
any, of cash from operations shall likewise be distributed to the Members in
accordance with their interests as set forth in Exhibit A.

     4.2  Decisions Concerning Allocations and Distributions. It shall be within
the sole and exclusive discretion of the Manager to decide:

     (a)  whether to make a distribution of profits or other assets to the
Members; and

     (b)  the timing and amount of any such distribution;

provided, however, that the Company shall make no such distribution if,
immediately after the distribution, the Company's liabilities would exceed its
assets.

                                    ARTICLE V
                                   MANAGEMENT

     5.1  Authority of Manager. To the maximum extent permitted by the Act,
control and supervision of the activities of the Company shall be vested in the
Manager.

                                        5
<PAGE>

     5.2  Appointing and Removing Manager. The Members, in their sole
discretion, may without liability appoint or remove the Manager at any time with
or without cause.

     5.3  Manager Compensation. Etc. The Manager shall be compensated by the
Company for the Manager's services under this Agreement to such extent and in
such manner as the Members shall determine from time to time in the Members'
sole discretion.

     5.4  Indemnification of Members and Manager. The Company shall indemnify
the Members and the Manager to the fullest extent permitted, by applicable law
from and against any claim against the Members acting in its capacity as a
member or the Manager acting in its capacity as a manager.

     5.5  Advances of Litigation Expenses. The Company shall advance litigation
expenses to the Members or the Manager for any claim against the Members acting
in their capacity as a member or the Manager acting in its capacity as a
manager.

                                   ARTICLE VI
               TRANSFERS AND PLEDGES OF MEMBERSHIPS AND INTERESTS

     6.1  Transfers of Membership Rights. A Member in its sole discretion may
transfer (whether by sale, gift or otherwise) all or any part of such Member's
membership rights, including economic and non-economic rights, to any person at
any time. The Member may make any such transfer under any terms and conditions
which the Member deems appropriate, provided however, that any such transfer
shall require the consent of the other members, if any, which consent shall not
be unreasonably withheld.

     6.2  Pledges. A Member shall have exclusive and absolute discretion to
pledge all or any part of such Member's membership rights to any person at any
time as collateral for any of debt of the Member. A Member may make any such
pledge under any terms and conditions which the Member deems appropriate,
provided however, that any such pledge shall require the consent of the other
members, if any, which consent shall not be unreasonably withheld.

                                   ARTICLE VII
                        BOOKS OF ACCOUNTS, REPORTS, ETC.

     The Company shall maintain on a current basis accurate books of account in
accordance with financial standards normally applied to business organizations
generally similar to the Company in size and business activities.

                                  ARTICLE VIII
                                   DISSOLUTION

     8.1  Dissolution of Company. The Members in their sole and absolute
discretion may determine whether and when to dissolve the Company. The Company

                                        6
<PAGE>

shall be dissolved upon fling of a Certificate of Cancellation with the
appropriate office of the State of Delaware.

     8.2  Date of Termination of Legal Existence of Company. The Certificate of
Cancellation shall set forth the effective date of the cancellation of the
Company's certificate of formation. On that date, the legal existence of the
Company shall terminate.

     8.3  Winding Up and Liquidation of Company; Distribution of Company Assets.
Promptly after determining to terminate the legal existence of the Company, the
Manager shall wind up its business and internal affairs, shall liquidate it, and
shall distribute its assets to the Members and to creditors as required by the
Act.

                                   ARTICLE IX
                              TERM AND TERMINATION

     9.1  Term and Termination. The term of this Agreement shall begin on the
effective date and shall end upon the earlier of:

     (a)  the date on which the Company ceases to exist under this Agreement or
under other applicable law; and

     (b)  the date on which the Parties determine to terminate the Agreement.

                                    ARTICLE X
                            MISCELLANEOUS PROVISIONS

     10.1 Entire Agreement. This Agreement contains the complete agreement
between the Parties concerning its subject matter, and it replaces all earlier
agreements between them, whether written or oral, concerning its subject matter.

     10.2 Amendments. No amendment of this Agreement or of the Certificate shall
be valid unless it is set forth in a writing signed by the Parties.

     10.3 Notices. All notices under this Agreement shall be in writing. They
shall be sent by fax or by registered U.S. mail, return receipt requested, and
in both cases by regular mail, to the parties at their respective addresses as
stated on Exhibit A to this Agreement. A Party may change the Party's address
for purposes of this Article 10.3 at any time upon reasonable notice to the
other parties. Notices shall be deemed to have been received when actually
received.

                  [Remainder of Page Left Intentionally Blank]

                                        7
<PAGE>

     10.4 Governing law. This Agreement shall be governed exclusively by the
laws of the State of Delaware.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the first date set forth above.

            RIDGEWOOD POWER B FUND/PROVIDENCE EXPANSION,
            A Member
            By: Ridgewood Renewable Power LLC, Managing Shareholder

                By: /s/ Randall D. Holmes
                    -----------------------
                    Name:  Randall D. Holmes
                           ----------------
                    Title: President
                           ----------------

          RIDGEWOOD OLINDA, LLC
          A Member
          By: Ridgewood Management Corporation; Manager

                By: /s/ John J. Bahrs
                    -----------------------
                    Name:  John J. Bahrs
                           ----------------
                    Title: VP - Operations
                           ----------------

          RIDGEWOOD RHODE ISLAND GENERATION LLC,
          the Company
          By: Ridgewood Management Corporation, Manager

                By: /s/ John J. Bahrs
                    -----------------------
                     Name: John J. Bahrs
                           ----------------
                     Title: VP - Operations
                           ----------------

                                       8
<PAGE>

                                    EXHIBIT A
                      RIDGEWOOD RHODE ISLAND GENERATION LLC

--------------------------------------------------------------------------------
                          Name and Address of Company
--------------------------------------------------------------------------------

                      Ridgewood Rhode Island Generation LLC
                  c/o Ridgewood Management Corporation, Manager
                                1314 King Street
                           Wilmington, Delaware 19801

--------------------------------------------------------------------------------
              Name and Address of Members and Interest in Company
--------------------------------------------------------------------------------

Members:

                   Ridgewood Power B Fund/Providence Expansion
             c/o Ridgewood Renewable Power LLC, Managing Shareholder
                               947 Linwood Avenue
                               Ridgewood, NJ 07450

                              Ridgewood Olinda, LLC
                       c/o Ridgewood Power Management, LLC
                               947 Linwood Avenue
                               Ridgewood, NJ 07450

Membership Interest:

Ridgewood Power B Fund/ Providence Expansion-85%
Ridgewood Olinda, LLC-15%

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
                          Name and Address of Manager
--------------------------------------------------------------------------------

                        Ridgewood Management Corporation
                                1314 King Street
                           Wilmington, Delaware 19801

--------------------------------------------------------------------------------

<PAGE>

                                 LEASE AGREEMENT

     This Lease Agreement (the "Agreement") is made as of the 1st day of
October, 2003, by and among Ridgewood Rhode Island Generation LLC, a Delaware
limited liability company ("Lessee") and Ridgewood Olinda LLC, a Delaware limted
liability company ("Owner" or "Lessor"). Lessee and Owners shall be referred to
herein individually as a "Party" and collectively as the "Parties".

                                    RECITALS

     Some of the facts and circumstances surrounding this Agreement are the
following:

     The Owner owns two 1.2-megawatt Deutz Model TBG620V16K engine generator
sets (the "Equipment") that it acquired in 2002.

     Lessee is developing a landfill gas fired electrical generation plant in
Johnston, Rhode Island (the "Expansion Project").

     Owner desires to lease the Equipment to Lessee for use at the Expansion
Project and Lessee desires to lease such Equipment.

1    All right, title and interest to the Equipment remains with the Owner.

2.   This Agreement is effective as of the date first set forth above and shall
     remain in full force and effect so long as the Expansion Project is in
     operation. This Agreement cannot be terminated if the Expansion Project is
     In operation unless by agreement of the Parties.

3.   Beginning on the commercial operation date of the Expansion Project, Lessee
     will pay Owner 15% of the "Available Net Cash Flow" generated by the
     Expansion Project. For purposes of this Agreement, Available Net Cash Flow
     is defined as the total cash received from the Expansion Project's
     operations less (i) all operating and other cash expenditures, and (ii)
     such reserves for operating expenses, debt service and other actual or
     contingent obligations and liabilities of the Expansion Project that
     Ridgewood Power Management LLC ("Ridgewood"), the Expansion Project's
     operator, may determine are necessary or advisable.

4.   The Lessee (a) will maintain the Equipment in good working order and in
     accordance with good maintenance standards, (b) will maintain commercially
     reasonable insurance coverage on the Equipment, (c) is responsible for all
     costs of installing the Equipment at the Expansion Project, (d) is
     responsible for all costs of operating, maintaining, permitting and

<PAGE>

     licensing the Equipment, including all real and personal property taxes.
     All costs incurred by Lessee pursuant to this paragraph with respect to
     the Equipment shall be deemed "operating expenditures" for the purposes of
     this Agreement.

5.   The Lessee shall Indemnify the Owner and hold it harmless against all liens
     and claims arising out of the Lessee's installation and use of the
     Equipment

6.   Owner and Lessee represent that they have lawful power to enter into this
     Agreement.

7.   Lessee acknowledges that the Equipment is collateral for a loan payable by
     Owner to US Bancorp Leasing & Financial, an Oregon corporation.

8.   This Agreement can be amended only by a writing signed by the Parties.

9.   This Agreement is governed by the laws of Delaware applying to contracts
     having their most significant contacts with Delaware.

10.  This Agreement is the entire agreement among the parties as to its subject
     matter and supersedes all prior agreements among them.

     IN WITNESS WHEREOF, the parties have signed this Agreement as of the date
first stated above.

          Ridgewood Olinda LLC, Owner
          By: Ridgewood Management Corporation, Manager

                By:     /s/ Christopher I. Naunton
                        ------------------------------------------
                Name:   Christopher I. Naunton
                Title:  Vice President and Chief Financial Officer

          Ridgewood Rhode Island Generation LLC, Lessee
          By: Ridgewood Management Corporation, Manager

                By:     /s/ Christopher I. Naunton
                        ------------------------------------------
                Name:   Christopher I. Naunton
                Title:  Vice President and Chief Financial Officer

                                      -2-REOSTAR ENERGY CORP - Exhibit 10.1

EXHIBIT 10.1

  

PURCHASE AND SALE AGREEMENT 

  

  

  Between 

  

  REOSTAR ENERGY CORPORATION 

  

  (Buyer) 

  

  And 

  

  VERN WILSON ENERGY, INC. 

  

  (Seller) 

  

  With respect to the 

  

  

  OIL AND GAS PROPERTIES, DRILLING RIG, AND OTHER TANGIBLE EQUIPMENT 

  

  

  

  

  

  

  

  

  

  Dated as of September 28, 2007  

  

  

   

  

 

PURCHASE AND SALE AGREEMENT

                      PURCHASE
AND SALE AGREEMENT, dated as of September 28, 2007 (the "Agreement"), by and among
ReoStar Energy Corporation., a Nevada corporation ("REOS", or "Buyer"), and Vern
Wilson Energy, Inc., a Texas corporation ("WEI", or "Seller"). REOS and WEI are
referred to herein each as a "Party" and collectively as the "Parties". 

W I T N E S E
  T H :

                      WHEREAS,
Seller is the owner of working interests in certain oil and gas wells and leases
located in Texas and Louisiana, a service rig, and other tangible equipment as
set forth on Schedule A attached hereto ("WEI Properties"). 

                      WHEREAS,
Seller desires to sell to Buyer, and Buyer desires to purchase from Seller, the
WEI Properties on the terms, subject to the conditions, and for the consideration
described herein. 

                      NOW,
THEREFORE, in consideration of the mutual promises made herein and of the mutual
benefits to be derived here from the Parties hereto agree as follows: 

ARTICLE 1.  SALE AND PURCHASE OF THE WEI PROPERTIES 

                      SECTION
1.01. Sale and Purchase of the WEI Properties. 

                      Subject
to the terms and conditions contained herein and in reliance upon the representations
and warranties contained herein, at the Closing provided for in Section 1.02 hereof,
Seller will sell to Buyer the WEI Properties, and Buyer will purchase the WEI
Properties, for the Consideration hereinafter defined in Article 2. 

                      SECTION
1.02. Effective Date. 

                      The
Effective Date of this Agreement shall be August 1, 2007. 

                      SECTION
1.03. Closing. 

                      Closing
of the purchase and sale of the WEI Properties ("Closing") will take place at
the offices of the Buyer, or such other place as may be mutually acceptable, simultaneously
with the execution of this Agreement. 

                      SECTION
1.04. Delivery of the WEI Properties and Consideration. 

                      At
Closing, Seller shall deliver to Buyer, against delivery of the Consideration
as provided in Article 2 hereof, good and marketable title to the WEI Properties
free and clear of any liens, charges, encumbrances, imperfections of title, security
interest, options or rights or claims of others with respect thereto (collectively,
"Encumbrances"), by delivering to Buyer assignments of interest for the WEI oil
and gas properties and bills of sale for the service rig and other tangible equipment.

- 1 -

  

ARTICLE 2. CONSIDERATION 

                      As
consideration for the sale of the WEI Properties (the "Consideration"), Buyer
shall pay to Seller at Closing US$159,000.00 (one hundred fifty-nine thousand
dollars) in immediately available funds by check. Buyer shall also issue to Seller
240,000 (two hundred forty thousand) shares of Buyer's common stock. 

                      WEI
agrees to have all liabilities associated with WEI Properties (referenced in schedule
in Schedule A) paid in full and agrees to be responsible for the present liabilities,
as referenced in Schedule B. In the event additional liabilities arise that were
incurred before the effective purchase date of August 1, 2007, WEI hereby agrees
to satisfy said obligations in a timely manner and hold REOS free from any and
all liability arising from the same. 

ARTICLE 3. REPRESENTATIONS AND WARRANTIES OF SELLER TO BUYER 

                      Seller
hereby represents and warrant to Buyer as of the Initial Closing Date as follows:

                      SECTION
3.01. Organization, Qualification and Corporate Power of WEI. 

                      WEI
is a company duly incorporated, validly existing and in good standing under the
laws of Texas and is duly licensed or qualified to transact business as a corporation,
and is in good standing, in each jurisdiction in which the nature of its business
or the ownership of its properties makes such licensing or qualification necessary
and where the failure be so licensed or qualified would have a material adverse
effect on the business, operations, assets, financial condition, value or prospects
of WEI (a "Material Adverse Effect"). WEI has the corporate power and authority
to own, lease, or sell its properties and to carry on its business as currently
conducted. 

                      SECTION
3.02 Authorization of Agreement; No Conflicts. 

                      The
execution and delivery by Seller of this Agreement and the performance by Seller
of their obligations hereunder have been duly authorized by all requisite action
on the part of Seller and will not violate any provision of law, any order of
any court or other agency of government, the organizational document or by-laws
of Seller, or any provision of any indenture, agreement or other instrument to
which it is a party or by which it or any of its properties is bound or conflict
with, result in a breach of or constitute (with due notice or lapse of time or
both) a default under any such indenture, agreement or other instrument, or result
in the creation or imposition of any lien, charge or encumbrance of any nature
whatsoever upon any of the properties or assets of Seller. 

                      SECTION
3.03. Validity. 

                      This
Agreement and each other agreement entered into in connection herewith to which
Seller is a party have been duly executed and delivered by Seller and constitute
the legal, valid and binding obligation of Seller, enforceable in accordance with
their respective terms, except as the same may be limited by bankruptcy, insolvency,
reorganization or other laws affecting the enforcement of creditors' rights generally
now or hereafter in effect and subject to the application of equitable principles
and the availability of equitable remedies. 

 - 2 - 

 

                      SECTION
3.04. Consents and Approvals. 

                      No
registration or filing with, or consent or approval of, or other action by, any
Federal, state or other governmental agency or instrumentality or any other person
or entity is or will be necessary on the part of Seller for the valid execution,
delivery and performance by Seller of this Agreement and each other agreement
entered into in connection herewith to which Seller are a party. 

                      SECTION
3.05 Litigation. 

                      There
is no action, suit, investigation or proceeding pending, or to the knowledge of
Seller, threatened against or affecting WEI with regard to the WEI Properties
before any court or by or before any governmental body or arbitration board or
tribunal. 

                      SECTIONS
3.06 No Brokers. 

                      Seller
has not retained any broker or finder in connection with the transactions contemplated
herein so as to give rise to any valid claim against Seller or Buyer for any brokerage
or finder's commission, fee or similar compensation. 

                      SECTION
3.07 Accuracy of Information. 

                      None
of the representations and warranties of Seller contained herein or in any Schedule
hereto contains any untrue statement of a material fact or omits to state a material
fact necessary in order to make the statements herein and therein not misleading
in light of the circumstances in which made. 

                      SECTIONS
3.08. Indemnification 

                      Subsequent
to (after) August 1, 2007, REOS assumes all liability for and shall be solely
responsible for any and all losses, including without limitation, damages, claims,
expenses, charges, costs and all other matters (collectively "Losses") of any
nature whatsoever in connection with the ownership, use, operation, maintenance
or existence of the WEI Properties. REOS agrees to hold harmless, defend and indemnify
WEI, its officers, directors, employees, agents, successors, legal representatives,
and assigns from any and all liabilities, regardless of the presence or lack of
insurance from the date of this agreement going forward. 

ARTICLE 4. REPRESENTATIONS AND WARRANTIES OF BUYER 

                      Buyer
hereby represents and warrants to the Seller as of the date hereof and as of the
Closing Date as follows: 

                      SECTION
4.01. Organization, Qualification and Corporate Power. 

                      Buyer
is a corporation duly organized, validly existing and in good standing under the
laws of Nevada, and is duly licensed or qualified to transact business as a limited
liability company and, is in good standing, in each jurisdiction in which the
nature of its business or the ownership of its properties makes such licensing
or qualification necessary and where the failure to be so licensed or qualified
would have a material adverse effect on the business, operations, assets, results
of operation, financial condition, value or prospects of Buyer. Buyer has the
power and authority to own or lease its properties and to carry on its business
as currently conducted and to execute, deliver 

 - 3 - 

and perform this Agreement. 

                      SECTION
4.02. Authorization of Agreement; No Conflicts. 

                      The
execution and delivery by Buyer of this Agreement and the performance by Buyer
of its obligations hereunder have been duly authorized by all requisite corporate
action on the part of Buyer and will not violate any provision of law, any order
of any court or other agency of government, the organizational document or by-laws
of Buyer, or any provision of any indenture, agreement or other instrument to
which it is a party or by which it or any of its properties is bound or conflict
with, result in a breach of or constitute (with due notice or lapse of time or
both) a default under any such indenture, agreement or other instrument, or result
in the creation or imposition of any lien, charge or encumbrance of any nature
whatsoever upon any of the properties of assets of Buyer. 

                      SECTION
4.03. Validity. 

                      This
Agreement and each other agreement entered into in connection herewith to which
Buyer is a party have been duly executed and delivered by Buyer and constitute
the legal, valid and binding obligation of Buyer, enforceable in accordance with
their respective terms, except as the same may be limited by bankruptcy, insolvency,
reorganization or other laws affecting the enforcement of creditors' rights generally
now or hereafter in effect and subject to the application of equitable principles
and the availability of equitable remedies. 

                      SECTION
4.04. Consents and Approvals. 

                      No
registration or filing with, or consent or approval of, or other action by, any
Federal, state or other governmental agency or instrumentality or any other person
or entity is or will be necessary on the part of Buyer for the valid execution,
delivery and performance by Buyer of this Agreement and each other agreement entered
into in connection herewith to which Buyer is a party. 

                      SECTION
4.05. Investment Representations. 

                      Buyer
is acquiring the WEI Properties being purchased by it hereunder for the purpose
of investment. Buyer has, with respect to its investment: (i) had an opportunity
to ask all questions of, and receive satisfactory answers from, Seller and the
officers of WEI, (ii) received and reviewed all information, including without
limitation relevant documents, contracts and other instruments, in the each case
deemed necessary or desirable by Buyer, and (iii) as a result of the foregoing,
has satisfactorily performed its due diligence with respect to the WEI Properties
and such investment; provided the foregoing does not in any way relieve WEI of
its representations and warranties set forth in this Agreement and shall not limit
Buyer's ability to rely thereon. 

                      SECTION
4.06 Litigation. 

                      There
is no action, suit, investigation or proceeding pending, or to the knowledge of
Buyer, threatened against or affecting Buyer before any court or by or before
any governmental body or arbitration board or tribunal which questions the validity
of this Agreement or which questions the validity of or seeks to rescind or prevent
the taking of action taken or to be taken in connection herewith or the consummation
of the transactions contemplated hereby. 

                      SECTIONS
4.07. No Brokers. 

 - 4 - 

Buyer has not retained any broker or finder in connection with the transactions
contemplated herein so as to give rise to any valid claim against Seller for any
brokerage or finder's commission, fee or similar compensation. 

                      SECTIONS
4.08. Indemnification 

                      WEI
hereby assumes all liability for any and all losses, liabilities or damages incurred
of any nature whatsoever (including, without limitation, claims, causes of action,
liabilities, costs, damages, expenses, attorneys' fees and costs of court arising
prior to August 1, 2007 in connection with the ownership, use, operation, maintenance,
or existence of the Property ("Pre-Effective Date Liabilities"). WEI agrees to
hold harmless, defend and indemnify REOS, and its officers, employees, agents,
successors, legal representatives, and assigns (the "REOS Affiliates") from any
and all Liabilities prior to August 1, 2007, regardless of the presence or lack
of insurance. 

ARTICLE 5. COVENANTS OF SELLER 

                      At
Buyer's request and without further consideration, Seller will execute and deliver
to Buyer such other documents and take such other action as Buyer may reasonably
request in order to consummate more effectively the transactions contemplated
hereby and to vest in Buyer good and marketable title to the WEI Properties. Furthermore,
WEI covenants that will remain the operator of record for all of the properties
located in Louisiana and shall extend to any subsequent properties acquired in
the same domain. 

ARTICLE 6. COVENANTS OF BUYER 

                      At
Seller' request, and without further consideration, Buyer will execute and deliver
to Seller and take such other action as Seller may reasonably request in order
to consummate more effectively the transactions contemplated hereby. 

ARTICLE 7. FEES AND EXPENSES 

                      Except
as otherwise provided herein, each of the Parties hereto shall assume, bear and
pay its own expenses in connection with the preparation, execution, delivery and
performance of this Agreement. 

ARTICLE 8. SURVIVAL OF REPRESENTATIONS AND WARRANTIES 

The representations and warranties set forth in Articles 3 and 4 shall survive
the Closing hereunder and shall expire on the third anniversary of the Closing
Date. 

ARTICLE 9. MISCELLANEOUS 

                      SECTION
9.01. Assignment; Successors. 

 - 5 - 

                      This
Agreement may be assigned by REOS to an affiliated company or designee in its
sole discretion and without the consent of WEI. 

                      SECTION
9.02. Amendment, Modification and Waivers. 

                      
Neither this Agreement nor any term hereof may be changed, waived, discharged
or terminated orally, but only by written consent signed by Buyer and by Seller.

                      SECTION
9.03. Notices. 

                      Any
notice, payment, demand or communication required or permitted to be given by
an provision of this Agreement will be in writing and will be deemed to have been
given when delivered personally or by facsimile to the party designated to receive
such notice, or on the date following the date sent by overnight courier, or on
the third (3rd) business day after the same is sent by certified mail, postage
and charges prepaid, directed to the following address or to such other or additional
addresses as any party might designate by written notice to the other party: 

	 	To Buyer: 

      	ReoStar Energy Corporation. 
	 	 	3880 Hulen, Suite 500 
	 	 	Fort Worth, TX 76107 
	 	 	Tel: 817-989-7367 
	 	 	Fax: 817-989-7368 
	 	 	Attn: Mark Zouvas
	 	 	 
	 	 	 
	 	To Seller: 	Vern Wilson Energy, Inc.
	 	 	___________________ 
	 	 	___________________ 
	 	 	Tel: 
	 	 	Fax: 
	 	 	Attn:
	 	 	 

                      SECTION
9.04. Interpretation and Severance. 

                      Whenever
possible, each provision of this Agreement shall be interpreted in such manner
as to be effective and valid under applicable law but if any provision of this
Agreement is held to be prohibited by or invalid under applicable law, such provision
shall be ineffective only to the extent of such prohibition or invalidity without
invalidating the remainder of such provision or the remaining provisions of this
Agreement, unless the prohibited or invalid provision is a material provision
the omission of which would result in the frustration of the parties' economic
objectives. 

                      SECTION
9.05. Headings and Captions. 

                      The
headings and captions herein are for convenience only and cannot be used to construe
the text of the sectioned paragraphs in which they appear. References herein to
this Agreement include references to the exhibits and the schedules referred to
herein. 

                      SECTION
9.06. No Third-Party Reliance. 

 - 6 - 

                      No
third party is entitled to rely on any of the representations, warranties and
agreements of Buyer and the Seller contained in this Agreement. Seller and Buyer
assume no liability to any third party because of any reliance on the representations,
warranties and agreements of Seller and Buyer contained in this Agreement. 

                      SECTION
9.07. Supersedes Prior Agreements. 

                      This
Agreement supersedes any and all prior agreements or understandings, written or
oral, of Seller or Buyer relating to the acquisition of the WEI Properties by
Buyer and incorporates the entire understanding of the parties with respect to
the subject matter hereof. 

                      SECTION
9.08. Governing Law. 

                      This
Agreement shall be governed by, construed, interpreted and enforced in accordance
with the laws of the State of Texas without regard to its conflicts of law rules.

                      SECTION
9.09. Counterparts. 

                      Two
or more duplicate originals of the written instruments containing this Agreement
may be signed by the parties, each of which shall be an original but all of which
together shall constitute one and the same agreement, and all signatures need
not appear on any one counterpart. 

                      IN
WITNESS WHEREOF, the Parties hereto have duly executed this Agreement as of the
date first written above. 

	 	SELLER: 
	 	 
	 	Vern Wilson Energy, Inc., 
	 	A Texas corporation 
	 	 
	 	 
	 	By: /s/ Vern Wilson                         
	 	Name: 
	 	Title: 
	 	 
	 	BUYER: 
	 	 
	 	ReoStar Energy Corporation.,
	 	 A Nevada corporation 
	 	 
	 	 
	 	By: /s/ Mark Zouvas                       
	 	Name: 
	 	Title: 

 - 7 - 

  SCHEDULE A

	 	 	 	 	
      Value

    	 
	Oil and Gas Properties: 	 	 	 	 
	 	Alford Lease    __________________
      County, Texas 	 	
      25,000

    	 
	 	Soniat Lease     __________________
      Parrish, Louisiana 	 	
      5,000

    	 
	 	Simpson Lease __________________
      Parrish, Louisiana 	 	
      100,000

    	 
	 	 	 	 	 	 
	Service Rig 200,000 	 	 	 	 
	 	 	 	 	 	 
	Other Tangible Equipment 	 	 	 	 
	 	Ford F450 	VIN:_______________________________	 	
      45,000

    	 
	 	 	 	 	
      

    	 
	 	Ford F350 	VIN:_______________________________
      	 	
      9,000

    	 
	 	 	 	 	
      

    	 
	 	Backhoe 	 	 	
      20,000

    	 
	 	 	 	 	
      

    	 
	 	200 Bbl Test Tank 	 	 	
      3,000

    	 
	 	 	 	 	
      

    	 
	 	Threading Machine 	 	 	
      4,500

    	 
	 	 	 	 	
      

    	 
	 	Welder	 	 	
       2,800

    	 
	 	 	 	 	
      

    	 
	 	Assorted Tools 	 	 	
      36,200

    	 
	 	 	 	 	 	 
	 	Trailers 	VIN:_______________________________
      	 	
      8,500

    	 
	 	 	 	 	 	 
	 Total 	 	 	 	
      459,000

    	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 

 - 8 - 

  SCHEDULE B

  

  LIST OF LIABILITIES AS OF AUGUST 1, 2007. 

	LIABILITIES: 	 	 
	

      Bank Debt 

      

                      Back
      Hoe 

      

                      Trucks
      

                      Credit
      line 

      

      

      Trade debt 

      

      Rig debt 

      Jerry Rawlinson 

      Fred Peel 	 	

      

      

      $     9,000

      

      $   11,000 

      $   42,000

      

      

      $   63,380 

      

      $   30,000 

      $     1,000

      $     3,000 
	TOTAL

      LIABILITIES	 	 $ 159,380

 - 9 -

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