Document:

EXHIBIT
10.20

 

THIS CONTRACT is made effective on the
latest date of signature below, (the “Effective
Date”), by and between:

 

Ebenezer Mgmt, LLC (“LLC”)

2516 380th Street

Dayton, IA 50530

And:

Blackhawk Biofuels, LLC (“Client”)

22 South Chicago Ave

Freeport, IL 61032

 

Premises

 

A. LLC is an independent for
profit, entity created to provide general business, financial and marketing
development and planning assistance to new and existing business ventures.

 

B. Client is an Delaware LLC formed to build and operate
a biodiesel production facility for its ownership.

 

C. Client has an interest in retaining LLC to provide
certain support assistance. LLC has agreed to provide such services, subject to
the terms and conditions included below.

 

TERMS AND CONDITIONS

 

NOW, THEREFORE, consistent with the above
premises and in consideration of covenants and agreements set forth herein, the
parties agree as follows:

 

Section 1. Purpose and Intent. LLC agrees to act
as project manager with duties as assigned.

 

Section 2. Scope of Services. The
professional services that LLC will provide to Client are as set forth below
(collectively, the “Services”). Notwithstanding anything herein to the
contrary, LLC is not permitted and will not be required to perform or assist in
any function that may, in LLC determination, cause LLC to be in violation of
applicable state or federal securities laws.

 

·                  LLC shall devote its best
efforts and all time necessary to perform the agreed Services; however, LLC has
no obligation to work exclusively for Client or to work any particular hours or
days or any particular number of hours or days in providing Services to Client.

 

·                  LLC cannot guarantee any
particular result due to the Client’s ultimate control of their company and
staff.

 

·                  Client is expected to
cooperate fully and candidly with LLC and provide all information now or
hereafter known by or available to Client which may aid LLC in providing
assistance.

 

·                  LLC will consult with Client
as necessary to ensure timely, effective and efficient completion of services.

 

SCOPE OF SERVICES

 

1.  Assist Client in an as needed
basis, performing functions as determined by the board, including business
management, assisting with financial discussions with lead lender, oversight
and discussions with REG, and any other parties as determined. LLC will supply
a weekly total of estimated hours of service.

 

Section 3. Term. The term of
the parties’ engagement will commence on 4/1/08 and will continue on a weekly
basis. This contract can be terminated upon fourteen (14) days written notice
of termination delivered by one party to the other.

 

 

Section 4.  Payment for Services. Client agrees to
pay LLC for the Scope of Services as follows:

 

(a)  $1,000 weekly.

 

(d) Invoice(s) will be sent as needed and are due and payable
within thirty (30) days of their date. Except as provided in Section 5 below, these payments will be the only payments
from Client to LLC in connection with the Services. LLC shall be solely
responsible for the payment of employees or independent contractors utilized in
providing any Service.

 

Section 5. Expenses. Client shall
reimburse LLC for all reasonable and ordinary expenses incurred by LLC in the
performance of the Services, including but not limited to reimbursement for
automobile mileage at current IRS rate.

 

Section 6.  Survival of Termination. The provisions
of this Memorandum relating to indemnification from one party to the other
party will survive any termination or expiration of the parties’ engagement. In
addition, any provisions of this Memorandum regarding payment for Services will
survive termination or expiration of the parties’ engagement.

 

Section 7. Compliance with Laws and
Regulations. The LLC and the Client, by their signatures affixed below,
assure that each contracting party is operating in compliance with all
applicable federal, state and local statues, rules and regulations. Notwithstanding
anything herein to the contrary, in the event LLC or Client, in consultation
with legal counsel, develop a good faith concern that any activity of the
parties is in violation of any applicable federal, state or local law or any
regulation, order or policy issued under any such law, such party shall
immediately notify the other party in writing of such concern, the specific
activities giving rise to such concern and the reasons for such concern. If an
agreement on a method for resolving such concern is not reached within five (5) business
days of such written notice, the activities described in the notice will cease
or be appropriately modified until the concern is resolved. If the concern is
not resolved within thirty (30) days of the notice, the parties’ engagement
will immediately terminate.

 

Section 8. No Agency.  The parties
understand and agree that each is an independent contractor engaged in the
operation of its own respective business; that neither party shall be
considered to be the agent of the other party for any purpose whatsoever; and
that neither has any general authority to enter into any contract, assume any
obligations or make any warranties or representations on behalf of the other.

 

Section 9. Confidential Information.  Information not
generally known by the public regarding Client’s business shall be treated as “confidential
information” to the extent permitted by law. Any confidential information given
to LLC by Client is provided only for the purposes of assisting LLC in the
performance of the Services. Unless LLC has the prior written consent of
Client, LLC shall not disclose any confidential information to any third party,
except as necessary in the performance of the Services.

 

Section 10. Securities Indemnification.  Client
represents and warrants that any securities offered in connection with any
Equity Drive will be offered in strict compliance with state and federal
securities registration and reporting requirements or in strict compliance with
available exemptions from such requirements. Client hereby agrees to indemnify,
defend and hold LLC harmless from and against any and all causes of action,
lawsuits, claims, demands or penalties of any nature whatsoever (including the
costs, expenses and reasonable attorneys fees on account thereof) that may be
made by any person or entity for liabilities, losses, costs, 

 

 

expenses, damages or injuries of any kind arising from or in
consequence of a defect in Client’s securities offering or offering materials.

 

Section 11. General Indemnification.  Each party
hereby agrees to indemnify, defend and hold harmless the other party with
respect to any third-party claims, demands or causes of action arising from
this contract to the extent that the indemnifying party’s negligent or wrongful
acts or omissions give rise to said third-party claims, demands or actions.
Indemnification hereunder shall cover, but is not limited to, all liability,
loss, damage, costs, expenses and reasonable attorney fees incident to any of
the foregoing.

 

Section 12. Limitation of Liability.  In no event
shall one party be liable to the other party for lost revenues, lost profits or
other incidental or consequential damages.

 

Section 13. Logos, Copyrights and Trademarks.
Client is responsible for verifying that any and all creative work
produced by LLC can legally be used.

 

Notices.

 

All notices or other communications to be given under this Memorandum
shall be deemed given when made in writing and either personally delivered,
delivered via facsimile or mailed by certified mail, return receipt requested,
postage prepaid, with proper address to the following addresses and/or
facsimile numbers (unless such address or facsimile number is changed by
appropriate notice):

 

	
  If
  to LLC:

  	
  Ebenezer
  Mgmt, LLC

  	
   

  
	
   

  	
  2516
  380th Street

  	
   

  
	
   

  	
  Dayton,
  IA 50530

  	
  1-515-838-2788

  
	
   

  	
   

  	
   

  
	
  If
  to Client:

  	
  Blackhawk
  Biofuels, LLC

  	
   

  
	
   

  	
  22
  South Chicago Ave

  	
   

  
	
   

  	
  Freeport
  IL 61032

  	
  1-815-233-

  

 

Section 14. Representations.  Each party
represents and warrants that it has the requisite authority to execute this
Memorandum and perform in accordance with its terms. Each party acknowledges
that it intends to be contractually bound by the terms of this Memorandum.

 

Section 15. Governing Law.  This Memorandum
shall be governed by and construed in accordance with the laws of the State of
Iowa.

 

Section 16. Headings.  The headings of
this Memorandum are inserted for convenience of reference only and in no way
describe or limit the scope or intent of the parties’ agreement.

 

Section 17. Entire Agreement.  This Memorandum
constitutes the entire agreement between LLC and Client and supersedes all
prior understandings, agreements or arrangements between the parties with
respect to the Services. Any modification of this Contract, or additional
obligation assumed by either party in connection with the Services, must be
mutually acceptable and in writing.

 

Section 18. Counterparts.  This Memorandum
may be executed in counterparts, each of which shall be deemed an original, but
which together shall be one and the same instrument.

 

 

IN WITNESS
WHEREOF, the parties have caused this Contract to be executed
by their respective authorized representatives.

 

	
  Ebenezer Mgmt, LLC

  	
   

  	
  Client: Blackhawk Biofuels, LLC

  
	
  Signature:

  	
  /S/ Brad Oeltjenbruns

  	
   

  	
  Signature:

  	
  /S/ Ronald L. Mapes

  
	
  By: Brad Oeltjenbruns

  	
   

  	
  By: Ronald L. Mapes

  
	
  Title: Manager

  	
   

  	
  Title: Chair

  
	
  Phone: 1-515-547-2251

  	
   

  	
  Phone: 815 235-2461

  
	
  Dated:  4/22/08

  	
   

  	
  Dated: 4/22/08EXHIBIT 10.21

 

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE
OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD,
TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (1) REGISTRATION
IN COMPLIANCE WITH SUCH ACT AND SUCH STATE LAWS OR (2) AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT THAT SUCH
REGISTRATION IS NOT REQUIRED.

 

WARRANT

 

To Purchase Class A Units

 

BLACKHAWK BIOFUELS, LLC

 

May 2, 2008

 

THIS CERTIFIES THAT, for good and valuable consideration, the receipt of
which is hereby acknowledged, Ebenezer Mgmt, LLC or its lawful assignee (the “Holder”)
is entitled to subscribe for and purchase from Blackhawk Biofuels, LLC, an
Illinois limited liability company (the “Company”), 100,000 of the Class A
Units of the Company pursuant to the terms and subject to the conditions
hereof.  The Class A Units that may
be acquired upon exercise of this Warrant are referred to herein as the “Warrant
Units.”  As used herein, the term “Holder”
means the Holder, any party who acquires all or part of this Warrant as a
registered transferee of the Holder, or any record holder or holders of the
Warrant Units issued upon exercise, whether in whole or in part, of the
Warrant.

 

This Warrant is
subject to the following provisions, terms and conditions:

 

1.                                       Exercise and Term.

 

(a)                                  The right to purchase the Warrant Units
at the Warrant Exercise Price shall be exercisable at any time from and after
the date on which the 45 million gallon per year biodiesel production plant
that the Company proposes to construct (the “Plant”) commences operations at
its nameplate capacity, as certified by the design-build firm that the Company engages to construct the Plant,
and continue for a period of seven (7) years following such date (the “Exercise
Period”), after which date all such rights shall terminate.

 

(b)                                 The rights represented by this Warrant
may be exercised by the Holder hereof, in whole or in part (but not as to a
fractional units), by written notice of the Holder’s irrevocable election to
exercise the purchase right represented by such Warrant (in the form attached
hereto) delivered to the Company ten (10) days prior to the intended date of
exercise at its principal offices prior to the expiration of this Warrant along
with or preceded by (i) a certified or bank cashier’s check in payment of
the Warrant Exercise Price for such Units, and (ii) the surrender of this
Warrant.

 

2.                                       Warrant Exercise Price. 
The Warrant Units shall be exercisable at a price of Two Dollars and no
cents ($2.00) per unit (the “Warrant Exercise Price”).

 

3.                                       Issuance of Securities. 
The Company agrees that the Warrant Units purchased hereby shall be and
are deemed to be issued to the record holder hereof as of the close of business
on the date on 

 

 

which this Warrant
shall have been surrendered and the payment made for such Warrant Units as
aforesaid.  Within a reasonable time, not
exceeding ten (10) days after the rights represented by this Warrant shall
have been so exercised, and, unless this Warrant has expired, a new Warrant
representing the number of Warrant Units, if any, with respect to which this
Warrant shall not then have been exercised shall also be delivered to the
holder hereof.

 

4.                                       Status as Accredited Investor. 
The Holder represents and warrants to the Company that as of the date of
this Warrant, Holder is an “accredited investor” as that term is defined under Rule 501
of Regulation D of the Securities Act of 1933, as amended, and Holder
understands that the Company is relying upon this representation in connection
with the issuance of this Warrant to Holder.

 

5.                                       Covenants of Company. 
The Company agrees that all Warrant Units which may be issued upon the
exercise of the rights represented by this Warrant will, upon issuance, be duly
authorized and issued, fully paid and non-assessable.  The Company further agrees that during the
period within which the rights represented by this Warrant may be exercised, in
the event this Warrant is exercised, the Company will have authorized, and
reserved for the purpose of issue or transfer upon exercise of the subscription
rights evidenced by this Warrant, a sufficient number of such Warrant Units, to
provide for the exercise of the rights represented by this Warrant.

 

6.                                       Anti-dilution Adjustments. 
The above provisions are, however, subject to the following:

 

(a)                                  In case the Company shall at any time
hereafter subdivide or combine its outstanding Class A Units, the Warrant
Exercise Price, in effect immediately prior to the subdivision or combination
shall forthwith be proportionately increased, in the case of combination, or
decreased, in the case of subdivision, and each Warrant Unit purchasable upon
exercise of the Warrant shall be changed to the number determined by dividing
the then current Warrant Exercise Price by the exercise price as adjusted after
the subdivision or combination.

 

(b)                                 If any merger, capital reorganization or
reclassification of the outstanding capital stock of the Company, or
consolidation or merger of the Company with another entity, or the sale of all
or substantially all of its assets to another entity shall be effected in such
a way that holders of the Company’s Class A Units shall be entitled to
receive securities or assets with respect to or in exchange for their Class A
Units (an “Exchange Event”), then, from and after such Exchange Event, the
Warrant will be exercisable, upon the terms and conditions specified in this
Warrant, for an amount of such securities or assets to which a holder of the
number of Class A Units purchasable upon exercise of the Warrant at the
time of such Exchange Event would have been entitled to receive upon such
Exchange Event.  Appropriate provisions
will be made with respect to the rights and interests of the Holder to ensure
that the provisions of this Warrant (including without limitation the
provisions to adjust the Warrant Exercise Price and the number of Class A
Units purchasable upon the exercise of this Warrant) will be applicable, as
nearly as may be, in relation to any such securities or assets deliverable upon
the exercise of this Warrant after an Exchange Event.  The Company will not effect any Exchange
Event unless, prior to the consummation thereof, the successor or purchasing
corporation (if other than the Company) with respect to such Exchange Event,
assumes by written instrument executed and delivered to the Holder at the
address of such Holder as shown on the books of the Company, the obligation to
deliver to such Holder such securities or assets as, in accordance with the
foregoing provisions, such Holder may be entitled to purchase.

 

(c)                                  Upon any adjustment of the Warrant
Exercise Price in accordance with this Section 6, then and in each such
case, the Company shall give written notice thereof, by first class mail,
postage prepaid, addressed to the registered Holder of this Warrant at the
address of such 

 

 

Holder as shown on
the books of the Company, which notice shall state the Warrant Exercise Price
resulting from such adjustment and the increase or decrease, if any, in the
number of Class A Units purchasable at such price upon the exercise of
this Warrant, setting forth in reasonable detail the method of calculation and
the facts upon which such calculation is based.

 

7.                                       No Voting Rights. 
This Warrant shall not entitle the holder hereof to any voting rights or
other rights as a unitholder of the Company.

 

8.                                       Transfer of Warrant or Resale. 
The holder acknowledges that it has obtained this Warrant for investment
and not with the intention of making any resale or distribution.  The holder further acknowledges (a) that
neither this Warrant nor any of the securities obtainable under it have been
registered under the Securities Act of 1933, as amended, or any state
securities statutes, (b) that neither this Warrant nor any securities
obtained under it may be transferred without such registration or an opinion of
legal counsel acceptable to the Company that such transfer may be made without
registration and (c) the Warrant Units will be issued subject to the terms
of and restrictions on transfer contained in the Company’s Limited Liability
Company Agreement as it may be amended from time to time.

 

9.                                       Successors and Assigns. 
This Warrant shall inure to the benefit of and be binding upon the
successors and permitted assigns of the parties hereto.  The Holder of this Warrant may assign any of
its rights under this Warrant to his or her heirs to the extent permitted by
this Warrant and applicable law (including, without limitation, federal and
state securities laws and regulations) and subject to restrictions administered
by the Company substantially similar to those applicable to Units under the
Company’s Limited Liability Company Agreement.

 

10.                                 Governing Law. 
This Warrant shall be governed by and construed in accordance with the
laws of the State of Illinois, without regard to the principles of conflicts of
law thereof.

 

IN
WITNESS WHEREOF,
Blackhawk Biofuels, LLC has caused this Warrant to be signed by its duly
authorized officer.

 

	
   

  	
  BLACKHAWK
  BIOFUELS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ Ronald L.
  Mapes

  
	
   

  	
   

  	
  Its:

  	
  Chair

  

 

3

 

WARRANT EXERCISE

 

(To be signed only upon exercise of
Warrant)

 

The undersigned,
the Holder of a Warrant to purchase Class A Units of Blackhawk Biofuels,
LLC, hereby irrevocably elects to exercise the purchase right represented by
such Warrant for, and to purchase thereunder,                             
of the Class A Units to which such Warrant relates and herewith makes
payment of $                            
therefor in cash or by check and requests that the certificates for such Class A
Units be issued in the name of, and be delivered to                                                             ,
whose address is set forth below the signature of the undersigned.  This Warrant Exercise form is accompanied by
the original Warrant, which is hereby surrendered to the extent necessary to
effect the exercise.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Print Name)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Address)

  
	
   

  	
   

  
	
   

  	
   

  

 

4

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