Document:

EXHIBIT
10.1

 

ASSET
PURCHASE AGREEMENT

 

By and Among

 

BLACKHAWK BIOFUELS, LLC,

 

RENEWABLE ENERGY GROUP, INC.,

 

BIOFUELS COMPANY OF AMERICA, LLC,

 

BIODIESEL INVESTMENT GROUP, LLC

 

and

 

BUNGE NORTH AMERICA, INC.

 

Dated as of March 14, 2008

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
  PURCHASE AND SALE OF
  ASSETS

  	
  1

  
	
  Section 1.1

  	
  Purchase and Sale

  	
  1

  
	
  Section 1.2

  	
  Consideration; Purchase
  Price Allocation

  	
  1

  
	
  Section 1.3

  	
  Closing

  	
  3

  
	
  Section 1.4

  	
  Procedure at Closing

  	
  4

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  REPRESENTATIONS AS TO
  THE COMPANY

  	
  4

  
	
  Section 2.1

  	
  Organization and Good
  Standing

  	
  4

  
	
  Section 2.2

  	
  Noncontravention;
  Authority; Enforceability

  	
  4

  
	
  Section 2.3

  	
  Subsidiaries

  	
  5

  
	
  Section 2.4

  	
  Title to and Condition
  of the Assets

  	
  5

  
	
  Section 2.5

  	
  Real Property

  	
  5

  
	
  Section 2.6

  	
  Material Adverse
  Changes

  	
  7

  
	
  Section 2.7

  	
  Environmental
  Compliance

  	
  8

  
	
  Section 2.8

  	
  Contracts and
  Commitments

  	
  9

  
	
  Section 2.9

  	
  No Litigation

  	
  10

  
	
  Section 2.10

  	
  Tax Matters

  	
  10

  
	
  Section 2.11

  	
  Compliance with Laws

  	
  10

  
	
  Section 2.12

  	
  Permits

  	
  11

  
	
  Section 2.13

  	
  Insurance

  	
  11

  
	
  Section 2.14

  	
  Employee Matters

  	
  11

  
	
  Section 2.15

  	
  Benefit Plans

  	
  12

  
	
  Section 2.16

  	
  Intellectual Property

  	
  12

  
	
  Section 2.17

  	
  Brokers

  	
  12

  
	
  Section 2.18

  	
  Accuracy of Statements

  	
  12

  
	
  Section 2.19

  	
  Purchase Entirely for
  Own Account

  	
  12

  
	
  Section 2.20

  	
  Disclosure of
  Information; Due Diligence

  	
  12

  
	
  Section 2.21

  	
  Investment Experience;
  Accredited Status

  	
  13

  
	
  Section 2.22

  	
  Restricted Securities

  	
  13

  
	
  Section 2.23

  	
  Investment Company

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  REPRESENTATIONS OF REG
  AND THE PURCHASER

  	
  13

  
	
  Section 3.1

  	
  Organization and
  Existence

  	
  13

  
	
  Section 3.2

  	
  Authority

  	
  14

  
	
  Section 3.3

  	
  Noncontravention

  	
  14

  
	
  Section 3.4

  	
  Capitalization; REG
  Common Stock

  	
  14

  
	
  Section 3.5

  	
  Financial Information

  	
  15

  
	
  Section 3.6

  	
  Undisclosed Liabilities

  	
  15

  
	
  Section 3.7

  	
  Material Adverse
  Changes

  	
  15

  
	
  Section 3.8

  	
  Brokers

  	
  15

  

 

i

 

	
  ARTICLE IV

  	
  NO ASSUMPTION OF
  LIABILITIES

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  COVENANTS

  	
  16

  
	
  Section 5.1

  	
  Access to Information

  	
  16

  
	
  Section 5.2

  	
  Pre-Closing Activities

  	
  17

  
	
  Section 5.3

  	
  Efforts to Consummate

  	
  18

  
	
  Section 5.4

  	
  Exclusive Dealing

  	
  18

  
	
  Section 5.5

  	
  Supplementation and
  Amendment of Schedules

  	
  18

  
	
  Section 5.6

  	
  Confidentiality

  	
  19

  
	
  Section 5.7

  	
  Publicity

  	
  19

  
	
  Section 5.8

  	
  Preliminary Testing;
  Performance Testing

  	
  19

  
	
  Section 5.9

  	
  Bunge Oil Supply
  Agreement; Services Agreement

  	
  19

  
	
  Section 5.10

  	
  Limitations on Disposition
  and Legend

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  CONDITIONS TO CLOSING

  	
  21

  
	
  Section 6.1

  	
  Conditions to
  Obligations of the Purchaser and REG

  	
  21

  
	
  Section 6.2

  	
  Conditions to
  Obligations of the Sellers and the Company

  	
  22

  
	
  Section 6.3

  	
  Documents to be
  Delivered at the Closing

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  INDEMNIFICATION

  	
  25

  
	
  Section 7.1

  	
  Indemnification by the
  Sellers

  	
  25

  
	
  Section 7.2

  	
  Indemnification by the
  Purchaser

  	
  26

  
	
  Section 7.3

  	
  Notice and Defense of
  Third Party Claims

  	
  26

  
	
  Section 7.4

  	
  Limitations of
  Liability

  	
  28

  
	
  Section 7.5

  	
  Survival

  	
  29

  
	
  Section 7.6

  	
  Waiver of Certain
  Damages

  	
  29

  
	
  Section 7.7

  	
  Express Negligence

  	
  29

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  TERMINATION

  	
  30

  
	
  Section 8.1

  	
  Termination

  	
  30

  
	
  Section 8.2

  	
  Effect of Termination;
  Liquidated Damages

  	
  30

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  MISCELLANEOUS

  	
  31

  
	
  Section 9.1

  	
  Survival

  	
  31

  
	
  Section 9.2

  	
  Amendment and
  Modification; Waiver

  	
  31

  
	
  Section 9.3

  	
  Notices

  	
  31

  
	
  Section 9.4

  	
  Further Assurances

  	
  33

  
	
  Section 9.5

  	
  Assignment

  	
  33

  
	
  Section 9.6

  	
  Governing Law

  	
  34

  
	
  Section 9.7

  	
  Severability

  	
  34

  
	
  Section 9.8

  	
  Counterparts

  	
  34

  
	
  Section 9.9

  	
  Facsimile Signatures

  	
  34

  
	
  Section 9.10

  	
  No Third-Party
  Beneficiaries

  	
  34

  
	
  Section 9.11

  	
  Interpretation

  	
  34

  
	
  Section 9.12

  	
  Entire Agreement

  	
  34

  

 

ii

 

	
  Section 9.13

  	
  Expenses

  	
  34

  
	
  Section 9.14

  	
  Jury Waiver

  	
  34

  

 

EXHIBITS AND SCHEDULES

 

	
  Exhibit A

  	
   

  	
  Definitions

  
	
  Exhibit B

  	
   

  	
  Escrow Agreement

  
	
  Exhibit C

  	
   

  	
  Oil Feedstock Supply Agreement

  
	
  Exhibit D

  	
   

  	
  Services Agreement

  
	
  Exhibit E

  	
   

  	
  Bill of Sale

  
	
  Exhibit F

  	
   

  	
  Assignment and Assumption Agreement

  
	
  Exhibit G

  	
   

  	
  Confidentiality Agreement

  
	
  Exhibit H

  	
   

  	
  Stockholder Agreement

  
	
  Exhibit I

  	
   

  	
  Registration Rights Agreement

  
	
  Exhibit J

  	
   

  	
  Preliminary Testing Description

  
	
   

  	
   

  	
   

  
	
  Schedule 2.2

  	
   

  	
  Noncontravention

  
	
  Schedule 2.4

  	
   

  	
  Title to Assets

  
	
  Schedule 2.5(a)

  	
   

  	
  Description of Real Property

  
	
  Schedule 2.5(c)(vi)

  	
   

  	
  Right of First Offer, etc.

  
	
  Schedule 2.5(c)(viii)

  	
   

  	
  Utilities Exceptions

  
	
  Schedule 2.7

  	
   

  	
  Environmental Compliance

  
	
  Schedule 2.8(b)

  	
   

  	
  Breach of Assumed Contract

  
	
  Schedule 2.8(c)

  	
   

  	
  Notice of Claims Under Assumed Contract

  
	
  Schedule 2.8(d)

  	
   

  	
  Consents and Notices

  
	
  Schedule 2.11

  	
   

  	
  Compliance with Laws

  
	
  Schedule 2.12

  	
   

  	
  Permits

  
	
  Schedule 2.13

  	
   

  	
  Insurance

  
	
  Schedule 2.14

  	
   

  	
  Employee Matters

  
	
  Schedule 2.15

  	
   

  	
  Benefit Plans

  
	
  Schedule 2.16

  	
   

  	
  Intellectual Property

  
	
  Schedule 2.17

  	
   

  	
  Brokers

  
	
  Schedule 3.5

  	
   

  	
  REG Financial Information

  
	
  Schedule 3.6

  	
   

  	
  Undisclosed Liabilities

  
	
  Schedule 4

  	
   

  	
  Assumed Contracts

  
	
  Schedule 5.2

  	
   

  	
  Pre-Closing Activities

  

 

iii

 

ASSET PURCHASE AGREEMENT

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

ARTICLE
I

PURCHASE AND SALE OF ASSETS

 

Section 1.1                                   Purchase
and Sale.  Subject to the
terms and conditions of this Agreement, at the Closing (as defined in Section 1.3
hereof), the Company agrees to sell, transfer, assign, convey and deliver to
the Purchaser, and the Purchaser agrees to purchase and assume from the
Company, all of the right, title and interest in and to the Assets (other than
Excluded Assets), free and clear of all Encumbrances except for Permitted
Liens.

 

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

 

 

(a)                                  Cash. 
On the Closing Date, in addition to the Escrowed Cash, (i) Purchaser
shall pay to the Company Five Million U.S. Dollars (U.S. $5,000,000) (the “Cash
Purchase Price”) by wire transfer of immediately available funds to such
account as designated by the Company, and Bunge and BIG shall agree prior to
Closing as between themselves the amounts to be received by Bunge and BIG upon
distribution by the Company to the Members of the Cash Purchase Price (less
appropriate reserves established by the Company, if any), and (ii) Company
shall pay the IFA Payment to the IFA by wire transfer of immediately available
funds to such account as designated by IFA;

 

(b)                                 REG Common Stock.  On the Closing Date, in addition to the
Escrowed Stock, REG shall issue and cause to be delivered by Purchaser to the
Company, and Purchaser shall deliver to the Company One Million Eight Hundred
Eighty-two Thousand Nine Hundred Twenty-seven (1,882,927) shares of the common
stock of REG  (the “REG Common Stock”),
as adjusted for any post-Effective Date dividend, stock split, recapitalization
or reorganization by REG, by delivery of REG Common Stock certificates to the
Company.  Bunge and BIG shall agree prior
to Closing as between themselves the number of shares to be received by Bunge
and BIG upon distribution by the Company to the Members of the REG Common Stock
(less appropriate reserves established by the Company, if any);

 

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

 

(d)                                 Balance Differential Payment.  In the event the outstanding principal
balance, together with any accrued, but unpaid interest, owed by the Company to
Fifth Third Bank under the Construction Loan Agreement (the “Bank Balance”)
plus the 

 

2

 

Assumed Liabilities less
the DCEO Grant Credit less the Reimbursements (collectively, the “Closing
Indebtedness”) is less than $24,650,000 as of the Closing Date, Purchaser
shall pay to the Company on the Closing Date the difference between $24,650,000
and the Closing Indebtedness in cash by wire transfer of immediately available
funds (the “Balance Differential Payment”). 
Bunge and BIG hereby agree as between themselves that Bunge shall
receive 22.2% of the Balance Differential Payment and BIG shall receive 77.8%
of the Balance Differential Payment.  To
determine the Balance Differential Payment, if any, the Company shall deliver
to Purchaser (i) a statement of account from Fifth Third Bank of the Bank
Balance as of the Closing Date, and (ii) a statement of the Assumed
Liabilities as of the Closing Date, together with supporting
documentation.  The amount of the Bank
Balance plus Assumed Liabilities less the DCEO Grant Credit less the
Reimbursements shall not exceed $24,650,000 and the Company shall pay any
liabilities in excess of such amount. 
The parties agree to the following additional adjustments conditional
and effective upon Closing:  (a) the
Company shall pay for its insurance and interest expense; (b) the Company
shall pay for the cost of security through the successful completion of the
Preliminary Testing and thereafter Purchaser shall reimburse the Company for
security expenses incurred consistent with past practice; (c) Purchaser
shall reimburse the Company at cost for raw material inputs for production at
the Facility which are reasonably and necessarily incurred by the Company prior
to Closing; (d) Purchaser shall reimburse the Company for utility expenses
commencing March 15, 2008 through the Closing Date; and (e) Purchaser
shall pay for or reimburse the Company for the expense of Ambitech (Bill Cloyd)
incurred prior to Closing as it relates to management of the Facility upgrades
only, but not otherwise.  Any such
adjustments shall be settled at Closing. 
Any such reimbursements to the extent allowed by Fifth Third Bank as an
advance against the Construction Loan Agreement by the Company shall be
referenced herein as the “Reimbursements”.

 

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

 

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

 

Section 1.3                                   Closing.  Subject to satisfaction or waiver
of the conditions to closing set forth in Sections 6.1 and 6.2,
the closing of the
purchase provided for in Section 1.1 of this Agreement (the “Closing”)
shall take place at the offices of Nyemaster, Goode, West, Hansell & 

 

3

 

O’Brien, P.C., counsel to
REG, in Des Moines, Iowa at 10:00 a.m. local time on the next Business Day
after the conditions to closing set forth in Sections 6.1 and 6.2
have been satisfied or waived, or at such other place and time as may be
mutually agreeable to the Company, the Members, REG and the Purchaser (such
date and time referred to herein as the “Closing Date”).  The parties anticipate the Closing Date to
occur on or before April 11, 2008 (the “Target Closing Date”).

 

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

 

(a)                 Each of the conditions precedent (as
applicable) in Section 6.1 shall have been satisfied, or such
condition(s) shall have been expressly waived in writing by the Purchaser and
REG. The Company and/or the Members shall deliver to Purchaser and REG all of
the documents in Section 6.3.

 

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

 

(c)   All
of the documents and instruments delivered at the Closing shall be in form and
substance, and shall be executed and delivered in a manner, reasonably
satisfactory to the parties’ respective counsel.

 

ARTICLE
II

REPRESENTATIONS AS TO THE COMPANY

 

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

 

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

 

Section 2.2                                   Noncontravention;
Authority; Enforceability.  Except as disclosed on Schedule 2.2 of the Company
Disclosure Schedule, neither the execution and delivery by such Seller of this
Agreement and the Transaction Documents, as applicable, nor the consummation of
the transactions contemplated hereby or thereby, nor compliance with any of the
provisions hereof or thereof, will (a) violate any provision of its
Organizational Documents or any resolutions adopted by its members,
stockholders, board of managers or board of directors, (b) result in a
violation of any license, permit, order, writ, injunction, decree, judgment, or
ruling of any court or Governmental Authority, or any law, rule, or regulation
applicable to such Seller, (c) conflict with, result in a breach of, or
constitute (or, with due notice or lapse of time or both,

 

4

 

would
constitute) a default under, or give rise to any right of termination,
acceleration or cancellation under, any indenture, agreement, contract,
license, arrangement, understanding, evidence of indebtedness, note, lease or
other instrument which constitutes an Asset or to which such Seller or any of
the Assets is bound, (d) result in the creation or imposition of any lien
(other than Permitted Liens), charge, restriction, claim or Encumbrance of any
nature whatsoever upon the Company or the Assets or (e) require any
consent or approval of, or notice to, or filing or registration with, any
Person, except for those consents, approvals, notices, filings, or
registrations that have been obtained, given, or made, as the case may be, and
that are unconditional and in full force and effect.  Such Seller has the requisite corporate or
limited liability company power and authority to execute and deliver this
Agreement and the Transaction Documents to which such Seller is a party, to
perform its obligations hereunder and thereunder, and to consummate the
transactions contemplated by this Agreement and the Transaction Documents.  The Company has authorized
and approved by all requisite action of the Board of Managers and members of
the Company, this Agreement, the Transaction Documents and the transactions
contemplated hereby and thereby.  The
execution, delivery and performance by such Seller of this Agreement and the
Transaction Documents, as applicable, and the consummation by such Seller of
the transactions contemplated hereby and thereby have been duly and validly
authorized by all necessary corporate or limited liability company action.  This Agreement and the Transaction Documents
to which such Seller, as applicable, is a party have been duly executed and
delivered by such Seller and are the valid and binding obligations of such
Seller enforceable against such Seller in accordance with the terms hereof and
thereof, except as enforceability may be limited by bankruptcy, insolvency,
moratorium, fraudulent conveyance and other similar laws affecting creditors’
rights generally and by general principles of equity.

 

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

 

Section 2.4                                   Title
to and Condition of the Assets.

 

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

 

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

 

Section 2.5                                   Real
Property.

 

(a)                                  The Company does not own any real
property.  Schedule 2.5(a) of
the Company Disclosure Schedule contains a legal description of each parcel of
real property that the Company leases, subleases, licenses, occupies, or uses
in connection with the operation of the business of the Company as presently
conducted or proposed to be

 

5

 

conducted upon completion
of the Facility (the “Real Property”). 
The parcels of Real Property which are leased or subleased by the
Company and which leases or subleases will be assigned to Purchaser at the
Closing, as identified on Schedule 2.5(a), are referred to herein as “Leased
Real Property”, and the parcels of Real Property which are licensed or
sublicensed by the Company and which will be assigned to Purchaser, as
identified on Schedule 2.5(a), are referred to herein as “Licensed
Real Property”.  Except as set forth
on Schedule 2.5(a) of the Company Disclosure Schedule, no right to
use or occupy any portion of the Leased Real Property has been granted to any
Person other than Company nor are there any parties in possession of any
portion of the Leased Real Property, whether as tenants, subtenants,
trespassers or otherwise, except the Company.

 

(b)                                 The Company has a valid leasehold
interest in the Leased Real Property, free and clear of all Encumbrances, other
than Permitted Liens.  To the Knowledge
of the Company, the Company has a valid license or sublicense to occupy and use
the Licensed Real Property.  The Company
has paid, discharged or reserved for, all lawful claims that, if unpaid, could
become an Encumbrance against the Leased Real Property or any portion thereof.

 

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

 

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

 

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

 

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

 

(iv)                   To the Knowledge of the Company, all
buildings, structures and other improvements on the Leased Real Property,
including but not limited to driveways, garages, landscaped areas and sewer
systems, and all means of access to the Leased Real Property, are located
completely within the boundary lines of

 

6

 

the Leased Real Property and do not encroach upon or under the property
of any other Person or entity.  No
buildings, structures or improvements constructed on the property of any other
Person encroach upon or under the Leased Real Property.

 

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

 

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

 

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

 

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

 

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

 

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

 

7

 

(a)                                  any destruction, damage to or loss of any
Asset (whether or not covered by insurance), which individually exceeds $20,000
in value or in the aggregate exceeds $50,000 in value;

 

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

 

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

 

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

 

(e)                                  any waiver or release of any material
right or claim with respect to the Company or any of the Assets except for
change orders provided to the Purchaser and REG by the Company as described on Schedule
4 of the Company Disclosure Schedule;

 

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

 

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

 

Section 2.7                                   Environmental
Compliance

 

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

 

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

 

(i)                  all
Governmental Authorizations, if any, required to be obtained or filed pursuant
to Environmental Laws in connection with the operations, activities, uses,
vehicles, equipment or facilities at, on, in or under, such Assets or otherwise
of the Company, including, without limitation, for the past or present
treatment, storage, handling, use, discharge or “Release” (which
includes any 

 

8

 

spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching, dumping, or
disposing) of any pollutant, contaminant, solid waste, hydrocarbon, toxic or
hazardous substance or waste, any flammable, corrosive, explosive, or
radioactive materials or any other material, waste, or substance regulated
under the Environmental Laws (a “Hazardous Material”) into the
environment or indoor air, or any filling, dredging, discharging into, or other
uses or activities on or affecting water of the United States, including wetlands
(as defined under the Federal Clean Water Act and 33 C.F.R. §328.3) (“Environmental
Permits”), have been duly obtained and are in good standing; and the
Company and the Assets have all pollution control equipment necessary to comply
with all Environmental Permits and Environmental Laws, and have timely filed
applications for renewal of all Environmental Permits and has no reason for
belief that such Environmental Permits or renewals thereof will be subject to
any new or changed conditions; and

 

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

 

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

 

Section 2.8                                   Contracts
and Commitments.

 

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

 

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

 

9

 

under any Assumed Contract, and the Company has no Knowledge of any
breach or anticipated breach by the other party to any Assumed Contract.

 

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

 

(d)                                 No consent or approval of or notice to
any third party pursuant to any Assumed Contract is required to be obtained or
made by or with respect to the Company in connection with the execution,
delivery and performance of any transaction contemplated by this Agreement or
any other Transaction Documents except as set forth in Schedule 2.8(d) of
the Company Disclosure Schedule (“Required Consents”).

 

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

 

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

 

Section 2.11                            Compliance
with Laws.  Except as set forth on Schedule 2.11 of the Company
Disclosure Schedule, the Company is, and at all times since its formation has
been, in 

 

10

 

material
compliance with all Legal Requirements applicable to the Company or to the
ownership or operation of the Assets or the operation of its business, and has
no basis to expect, nor has it received any Order, notice, or other
communication from any Governmental Authority of any alleged, actual, or
potential material violation and/or failure to materially comply with any Legal
Requirement applicable to the Company or to the ownership or operation of the
Assets.

 

Section 2.12                            Permits.  Except as set forth on Schedule
2.12 of the Company Disclosure Schedule, the Company has obtained all
material Governmental Authorizations required to permit them to (a) develop
and construct a biodiesel operating facility, (b) own, operate, use, and
maintain the Assets in the manner in which they are now operated and
maintained, or (c) to conduct its business as now being conducted,
including, without limitation, all Environmental Permits.  Schedule 2.12 sets forth a true,
correct and complete list of all such Governmental Authorizations, copies of
which have previously been delivered by the Company to Purchaser and REG.  Except as set forth on Schedule 2.12
of the Company Disclosure Schedule, all required filings with respect to such
Governmental Authorizations have been made timely.  Except as set forth on Schedule 2.12
of the Company Disclosure Schedule, all such Governmental Authorizations are in
full force and effect and there are no Proceedings pending or, to the Knowledge
of the Company, threatened that seek the revocation, cancellation, suspension
or other materially adverse modification thereof.  No consent, license, permit, authorization or
order of, or registration, declaration or filing with or of any Governmental
Authority or other issuer of any permit is required to be obtained or made by
or with respect to the Company in connection with the execution, delivery and
performance of any transactions contemplated by this Agreement or any of the
Transaction Documents except as set forth on Schedule 2.12 of the
Company Disclosure Schedule.

 

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

 

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

 

11

 

to
comply with any of the foregoing.  The
Company is in compliance with all applicable legal requirements respecting
employment, employment practices, labor, terms and conditions of employment and
wages and hours.

 

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

 

Section 2.16                            Intellectual
Property.  Schedule 2.16 of the Company Disclosure Schedule sets forth all
Intellectual Property Assets that the Company owns, uses or licenses in its
business.  The Company owns or licenses
all Intellectual Property Assets necessary to operate its business as presently
conducted or intended to be conducted upon completion of the Facility.  To the Knowledge of the Company, there is no
intellectual property of any third party that infringes any of the Intellectual
Property Assets owned by the Company. 
None of the Intellectual Property Assets owned or used by the Company
infringe upon or, to the Knowledge of the Company, is alleged to infringe upon,
any intellectual property right of any other person or entity.

 

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

 

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

 

Section 2.19                            Purchase
Entirely for Own Account.  The REG Common Stock to be received by the Company and such
Member is and will be acquired for investment for its own account and not with
a view to the distribution of any part thereof, and the Company has no present
intention of selling, granting any participation in, or otherwise distributing
the same; provided, however, that the Company reserves the right to distribute
its shares of REG Common Stock to its Members subject to Section 5.10
hereof and the terms and conditions of the Stockholder Agreement.

 

Section 2.20                            Disclosure
of Information; Due Diligence.  The Company and such Member has had the opportunity to ask
questions of and receive answers from REG regarding REG and the terms and
conditions of the offering of the REG Common Stock and to obtain additional
information necessary to verify the accuracy of the information supplied or to
which it had access.  Such Seller
acknowledges and agrees that the Purchaser does not assume any 

 

12

 

responsibility
or liability with respect to the REG Common Stock or the information provided
with respect to REG, the REG Common Stock or the investment therein by the
Company represented by the consideration received by the Company
hereunder.  Such Seller further
acknowledges and agrees that the Purchaser is not acting as an underwriter with
respect to the REG Common Stock and assumes no underwriters’ liability in
connection therewith.

 

Section 2.21                            Investment
Experience; Accredited Status.  The Company and such Member acknowledge that an investment
in REG is a speculative risk.  The
Company and such Member are able to fend for themselves in the transactions
contemplated by this Agreement, can bear the economic risk of its investment
(including possible complete loss of such investment) for an indefinite period
of time and has such knowledge and experience in financial or business matters
that it is capable of evaluating the merits and risks of the investment in
REG.  The Company and such Member
understand that the shares of REG Common Stock to be purchased hereunder have
not been registered under the Securities Act, or under the securities laws of
any jurisdiction, by reason of reliance upon certain exemptions, and that the
reliance on such exemptions is predicated, in part, upon the accuracy of the
Member’s representations and warranties in this Article III.  The Company and such Member are familiar with
Regulation D promulgated under the Securities Act and represent that they are
each an “accredited investor” as defined in Rule 501(a) of such
Regulation D.

 

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

 

Section 2.23                            Investment Company.  The Company and such Member (or any Person directly or
indirectly controlling the Company and such Member or on whose behalf the Company is
acting) are not, and by virtue of the consummation of the transactions
contemplated herein will not be, an “investment company” within the meaning of
the Investment Company Act of 1940, as amended, or an exemption or exclusion
from the registration provisions under the Investment Company Act of 1940, as
amended, is available to the Company, such Member or any such Person.

 

ARTICLE
III

REPRESENTATIONS OF REG AND THE PURCHASER

 

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

 

Section 3.1                                   Organization
and Existence. The
Purchaser and REG are each duly organized, validly existing and in good
standing under the laws of their jurisdiction of 

 

13

 

incorporation
or organization, respectively, and have all requisite power and authority to
carry on their respective businesses as now being conducted.

 

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

 

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

 

Section 3.4                                   Capitalization;
REG Common Stock.  REG is authorized to issue two classes of
shares designated respectively as “Preferred Stock” and “Common Stock”.  The total number of shares of capital stock
that REG is authorized to issue is one hundred million (100,000,000).  The total number of shares of Preferred Stock
REG has authority to issue is thirty million (30,000,000).  The total number of shares of Common Stock
REG has authority to issue is seventy million (70,000,000).  The Preferred Stock and Common Stock each
have a par value of $0.0001.  REG has
seven million (7,000,000) shares of its Series A Preferred Stock
authorized of which 6,578,947 are issued and outstanding and two million
(2,000,000) shares of its Series B Preferred Stock authorized of which
1,999,998 are issued and outstanding. 
REG has 13,334,874 shares of its Common Stock issued and outstanding.  There are issued and outstanding options to
purchase 2,303,052 shares of REG Common Stock pursuant to stock 

 

14

 

option
agreements issued under the REG 2006 Stock Incentive Plan and issued and outstanding
warrants to purchase 633,533 shares of REG Common Stock.  The shares of REG Common Stock and Escrowed
Stock to be issued to the Company shall have the rights, restrictions,
privileges and preferences set forth in the Certificate of Incorporation of REG,
a true and correct copy of which Certificate of Incorporation (including all
amendments thereto) has been delivered to Sellers.  The REG Common Stock and the Escrowed Stock,
when issued and delivered to the Company or deposited into the Escrow Fund, as
applicable, in accordance with the terms of this Agreement for the
consideration expressed herein, will be duly and validly issued, fully paid and
non-assessable, free and clear of all encumbrances except as provided in this
Agreement and the Stockholder Agreement and under applicable state and federal
securities laws.  Except as contemplated
in the Stockholder Agreement or with respect to REG’s Series A and Series B
Preferred Stock, there are no contractual rights or obligations of REG to
repurchase, redeem or otherwise acquire any shares of its capital stock, and
REG is not a party or subject to any agreement or understanding.  Except as set forth in the Stockholder
Agreement or with respect to REG’s Series A and Series B Preferred
Stock, there is no agreement or understanding between any persons and/or
entities which affects or relates to the voting or giving of written consents
with respect to any security of REG or by a director of REG.  Except as contemplated in the Registration
Rights Agreement or the Amended and Restated Registration Rights Agreement
dated July 18, 2007, by and among REG and certain of its stockholders, REG
is not under any obligation to register any of its securities under the
Securities Act.

 

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

 

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

 

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

 

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

 

15

 

ARTICLE
IV

NO
ASSUMPTION OF LIABILITIES

 

Except for the contracts to be assumed by Purchaser
listed on Schedule 4 of the Company Disclosure Schedule (the “Assumed
Contracts”) and the Assumed Liabilities, which along with the Bank Balance
less the DCEO Grant Credit less the Reimbursements shall not exceed
$24,650,000, neither Purchaser nor REG assumes any duties, liabilities,
responsibilities or obligations of any kind or nature whatsoever of the Company
or either of the Members.  Without
limiting the generality of the foregoing, neither Purchaser nor REG is assuming
(i) any warranty obligations or warranty claims with respect to products
sold or services provided by the Company, (ii) product liability
obligations or claims with respect to products sold or services provided by the
Company, (iii) accounts payable of the Company, (iv) any contracts of
the Company other than those obligations of the Company that are expressly
assumed by Purchaser pursuant to the terms of this Agreement, (v) except
as expressly set forth on Schedule 4, any obligations under a grant or
economic development award from any Governmental Authority, or (vi) any
other liabilities or obligations of the Company arising out of the construction
of the Facility, the operation of its business or the ownership of the Assets
by the Company, including, without limitation, any liability or obligations
with respect to the Pilot Agreement, the Buchanan Street bridge project or to
pay the costs to acquire additional parcels pursuant to the letter agreement
dated November 3, 2006 between the Company and Bunge Milling, Inc.  The Company or each Member will timely and
fully satisfy all such unassumed duties, liabilities, responsibilities and
obligations as they become due.

 

ARTICLE
V

COVENANTS

 

Section 5.1            Access
to Information.

 

(a)           From and after the Effective Date and
until the Closing, the Company will give to the Purchaser and its authorized
Representatives (which shall include REG and its authorized Representatives)
reasonable access during normal business hours to the offices, books and
records, returns, contracts, commitments, facilities and accountants of the
Company, and will furnish and make available to the Purchaser and its
authorized Representatives all such documents and copies of documents and all
such additional financial and operating data and other information pertaining
to the affairs of the Company as the Purchaser and its authorized
Representatives may reasonably request; provided, however, that (i) the
activities of the Purchaser and its Representatives shall be conducted in such
a manner as not to interfere unreasonably with the operation of the business of
the Company and (ii) in no event will the Company be required to furnish
the Purchaser or its Representatives with any documents or information that the
Company is required by Legal Requirement, Order or agreement, to keep
confidential, or that would reasonably be expected to jeopardize the status of
such document or information as privileged, work product or as a trade secret.  The Company shall cooperate with the
Purchaser and its authorized Representatives in the preparation of, and shall
use its best efforts, to prepare and cause its accountants to prepare, all
necessary financial information regarding the Assets that may need to be
reflected in filings by the Purchaser and REG under the Securities Act or the
Securities Exchange Act of 1934, as amended 

 

16

 

(the “Exchange Act”),
or other applicable Legal Requirements. 
Without limiting the generality of the foregoing, Purchaser and its
authorized Representatives shall have access to the Facilities from and after
the Effective Date and until the Closing for the purpose of conducting the
Preliminary Testing.

 

(b)           From and after the Effective Date and
until the Closing, the Purchaser and REG will give to the Sellers and their
authorized Representatives reasonable access during normal business hours to
the offices, books and records, returns, contracts, commitments, facilities and
accountants of the Purchaser and REG, and will furnish and make available to
the Sellers and their authorized Representatives all such documents and copies
of documents (at the Sellers’ expense) and all such additional financial and
operating data and other information pertaining to the affairs of the Purchaser
and REG as the Sellers and their authorized Representatives may reasonably
request; provided, however, that (i) the activities of the
Sellers and their Representatives shall be conducted in such a manner as not to
interfere unreasonably with the operation of the business of the Purchaser or
REG and (ii) in no event will the Purchaser or REG be required to furnish
the Sellers or their Representatives with any documents or information that the
Purchaser or REG is required by Legal Requirement, Order or agreement, to keep
confidential, or that would reasonably be expected to jeopardize the status of
such document or information as privileged, work product or as a trade secret.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

17

 

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

 

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

 

(j)            hire any employees;

 

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

 

(l)            make any material income tax
election; or

 

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

 

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

 

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

 

Section 5.5            Supplementation and Amendment of Schedules.  From time to time prior to the Closing, the
Sellers and the Purchaser and REG shall have the right to supplement or amend
the Schedules with respect to any matter hereafter arising or discovered after
the delivery 

 

18

 

of the Schedules pursuant
to this Agreement that, if existing or known at, or occurring prior to, the
date of this Agreement, would have been required to be set forth or described
in such Schedules.  No such supplement or
amendment shall have any effect on the satisfaction of the conditions to
closing set forth in Sections 6.1(a) or 6.2(a); provided,
however, if a party proceeds with the Closing, then such party shall be
deemed to have waived any right or claim pursuant to the terms of this
Agreement or otherwise with respect to any and all matters disclosed pursuant
to any such supplement or amendment at or prior to the Closing.

 

Section 5.6            Confidentiality.  Except as permitted under Section 5.7,
prior to and after the Closing, each of the Sellers, the Purchaser and REG
will, and will ensure that its Affiliates and Representatives will hold in
strict confidence and not use in any way except in connection with the
consummation of the transactions contemplated hereby, all confidential
information obtained in connection with the transactions contemplated hereby
from the Company, the Sellers, the Purchaser, REG or any of their respective
Representatives.

 

Section 5.7            Publicity.  No party to this Agreement or any Affiliate or
representative thereof shall issue any press release or make any public
announcement relating to the terms or existence of this Agreement prior to or
after the Closing without the prior approval of the other parties hereto (which
approval shall not be unreasonably withheld); provided however that any party
may make any public disclosure it believes in good faith is required by
applicable Legal Requirements and that any Transaction Documents may be
described or disclosed to the SEC or other Governmental Authority as necessary
to comply with federal and state securities laws and Purchaser’s financial
statements may make such disclosures as necessary under applicable accounting rules and
principles.

 

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

 

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

 

Section 5.10         Limitations
on Disposition and Legend.

 

(a)           Purchaser
and REG acknowledge and agree that the Company shall be entitled to distribute
the REG Stock and the Escrowed Shares (upon release of such shares from the
Escrow Fund) to the Members in the Company’s discretion without regard to the
provisions of this Section 5.10 and without the approval or consent of
REG, the Purchaser or any other shareholder of REG.  Without in any way limiting the 

 

19

 

representations set forth in Article II hereof, each
Member agrees upon receipt from the Company of the REG Common Stock and the
Escrowed Shares not to make any disposition of all or any portion of the shares
of the REG Common Stock or the Escrowed Shares unless (i) the transferee
has agreed in writing for the benefit of such Member and REG to be bound by
this Section 5.10 and the Stockholder Agreement, provided and to
the extent this Section and such agreement are then applicable; (ii) if
such disposition is proposed prior to
the expiration of the period described in Section 3(b) of
the Stockholder Agreement, the aggregate number of holders of the shares of REG
Common Stock issued pursuant to this Agreement 
(calculated for purposes of Section 12(g) under the Exchange
Act and the rules and regulations promulgated thereunder, as in effect at
the time of the disposition) after giving effect to the proposed distribution
will not exceed three hundred (300); (iii) at least two (2) years
since the Closing or the lock up period (not to exceed one hundred eighty (180)
days after an initial public offering of REG Common Stock has elapsed,
whichever is earlier; and (iv):

 

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

 

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

 

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

 

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

 

20

 

CORPORATION TO THE
EFFECT THAT TRANSFER OF SUCH SECURITIES WILL NOT BE IN VIOLATION OF THE
SECURITIES ACT OF 1933, AS AMENDED, OR ANY RULE OR REGULATION PROMULGATED
THEREUNDER, OR APPLICABLE STATE SECURITIES LAW.

 

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

 

ARTICLE
VI

CONDITIONS
TO CLOSING

 

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

 

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

 

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

 

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

 

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

 

21

 

Assets or the ability of
the Purchaser to acquire, own or use the Assets or to construct and operate the
Facility.

 

(e)           All of the consents set forth on Schedules
2.8(d) and 2.12 of the Company Disclosure Schedule, other than
those consents that cannot under administrative practice be obtained prior to
the Closing but can reasonably be expected to be obtained by the Purchaser
after the Closing in the ordinary course, shall have been obtained and shall be
in form and substance reasonably satisfactory to the Purchaser and REG.  Without limiting the generality of the
foregoing, the Company shall have received the consent of Fifth Third Bank to
the consummation of the transactions contemplated by this Agreement and the
Transaction Documents without any acceleration of the indebtedness or payment
required by the Company and containing any changes to the terms and conditions
of the Fifth Third Bank Construction Loan Agreement and agreements and
instruments related thereto substantially in accordance with the loan
commitment of Fifth Third Bank to Purchaser dated on or about the date hereof,
a copy of which has been provided by Purchaser to Sellers, and the indebtedness
of the Company to Fifth Third Bank pursuant to the Construction Loan Agreement
and in an amount not to exceed $24,650,000 shall be outstanding and in full
force and effect payable in accordance with its stated terms without default or
breach as a result of the transactions contemplated by this Agreement.

 

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

 

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

 

(h)           Purchaser,
as successor tenant to the Company, and Bunge shall have agreed upon the terms
of the assignment of that certain Amended and Restated Ground Lease Agreement
dated November 3, 2006 between Bunge Milling, Inc. and the Company,
including, without limitation that “base rent” will remain at $1.00 per year
for the term of the Oil Supply Agreement and “base rent” thereafter to be
agreed upon by the parties on or before Closing.

 

(i)            Purchaser
and REG shall have successfully completed Preliminary Testing of the Facility.

 

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

 

22

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(h)           Purchaser, as successor tenant to the
Company, and Bunge shall have agreed upon the terms of the assignment of that
certain Amended and Restated Ground Lease Agreement dated November 3, 2006
between Bunge Milling, Inc. and the Company, including, without limitation
that “base rent” will remain at $1.00 per year for 

 

23

 

the term of the Oil
Supply Agreement and “base rent” thereafter to be agreed upon by the parties on
or before Closing.

 

Section 6.3            Documents to be Delivered at the
Closing.

 

(a)           At the Closing, the Sellers, as
applicable, shall
deliver the IFA Payment to the IFA in accordance with Section 1.2(a) and
shall deliver to the Purchaser and REG, as applicable, the following:

 

	
  (i)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (ii)

  	
   

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

  
	
   

  	
  by the Company;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (iii)

  	
   

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

  
	
   

  	
  Bunge;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (iv)

  	
   

  	
  The Services
  Agreement in the form attached hereto as Exhibit D executed by
  Bunge;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (v)

  	
   

  	
  The Addendum to the
  Amended and Restated Stockholder Agreement dated July 18, 2007 for the 

  
	
   

  	
  REG Common Stock in
  the form attached hereto as Exhibit H (the “Stockholder
  Agreement”) executed by the 

  
	
   

  	
  Sellers;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (vi)

  	
   

  	
  The Registration
  Rights Agreement in the form attached hereto as Exhibit I (the “Registration
  

  
	
   

  	
  Rights Agreement”)
  executed by the Sellers;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (vii)

  	
   

  	
  Certified copies of
  the resolutions duly adopted by the Board of Managers and members of the 

  
	
   

  	
  Company authorizing
  the transfer of the Assets to Purchaser;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (viii)

  	
   

  	
  Certified copies of
  the resolutions duly adopted by the Board of Managers and members of BIG 

  
	
   

  	
  authorizing the
  transactions contemplated by this Agreement;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (ix)

  	
   

  	
  Any and all consents,
  filings, waivers, registrations, approvals or authorizations, with or by any 

  
	
   

  	
  Governmental
  Authority and all consents, waivers, approvals or authorizations of any other
  Person required for the consummation of the Closing;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (xi)

  	
   

  	
  A statement of account of the Bank Balance owed by
  Company to Fifth Third Bank under the 

  
	
   

  	
  Construction Loan Agreement and a statement of the
  Assumed Liabilities as provided in Section 1.2(d);

  
	
   

  	
   

  
	
   

  	
  (xii)

  	
   

  	
  The Escrow Agreement executed by the Company; and

  

 

24

 

	
   

  	
  (xiii)

  	
   

  	
  Such other customary
  documents as may be reasonably requested by the Purchaser related to the 

  
	
   

  	
  transactions
  contemplated by this Agreement.

  

 

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

 

	
   

  	
  (i)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (iii)

  	
   

  	
  The Registration
  Rights Agreement executed by REG;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (iv)

  	
   

  	
  The Oil Feedstock
  Supply Agreement executed by Purchaser, and the certificates representing the
  

  
	
   

  	
  shares of its Series B
  Preferred Stock in exchange therefore as provided in Section 5.9;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (v)

  	
   

  	
  The Services
  Agreement executed by Purchaser;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (vi)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (vii)

  	
   

  	
  The Assignment and
  Assumption Agreement executed by the Purchaser;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (viii)

  	
   

  	
  The Escrow Agreement
  executed by Purchaser; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (ix)

  	
   

  	
  Such other customary
  documents as may be reasonably requested by the Company related to the 

  
	
   

  	
  transactions
  contemplated by this Agreement.

  

 

ARTICLE
VII

INDEMNIFICATION

 

Section 7.1            Indemnification
by the Sellers.  (a) Each Seller, severally
as to itself and not jointly, shall indemnify the Purchaser and REG and their
respective Affiliates, partners, managers, directors, officers and employees
(collectively, the “Purchaser’s Indemnified Parties”) from, and defend
and hold each of them harmless against, any and all Losses resulting from or
arising out of:

 

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

 

25

 

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

 

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

 

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

 

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

 

(iii)                               Unsuccessful Performance Testing.

 

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

 

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

 

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

 

Section 7.3                                   Notice
and Defense of Third Party Claims.  If any Proceeding shall be brought or asserted against an
indemnified party (“Indemnified Party”) in respect of which indemnity
for Indemnified Amounts may be sought under this Article from an
indemnifying party (“Indemnifying Party”), the Indemnified Party shall
give prompt written notice of such Proceeding to the Indemnifying Party.  If any Proceeding is brought or asserted
against an Indemnified Party and it gives notice to the Indemnifying Party of
the commencement or assertion of such Proceeding, the Indemnifying Party will
be entitled to participate in such Proceeding and, to the extent that it wishes
(unless (i) the Indemnifying Party is also a party to such Proceeding and
the Indemnified Party determines in good faith that joint representation would
be inappropriate, or (ii) the Indemnifying Party fails to provide
reasonable assurance to the Indemnified Party of its financial capacity to
defend such Proceeding and provide indemnification with respect to such
Proceeding), to assume the defense of such Proceeding, 

 

26

 

including
the employment of counsel reasonably satisfactory to the Indemnified Party and
the payment of all expenses related to such defense (except as provided herein)
and, after notice from the Indemnifying Party to the Indemnified Party of its
election to assume the defense of such Proceeding, the Indemnifying Party will
not, as long as it diligently conducts such defense, be liable to the
Indemnified Party under this Article VII for any fees of other
counsel or any other expenses with respect to the defense of such Proceeding,
in each case subsequently incurred by the Indemnified Party in connection with
the defense of such Proceeding; provided that any delay or failure to so notify
the Indemnifying Party shall relieve the Indemnifying Party of its obligations
hereunder only to the extent, if at all, that it is prejudiced by reason of
such failure or delay.  Actual or
threatened action by a Governmental Authority or other Person is not a
condition or prerequisite to the Indemnifying Party’s obligations under this Article VII.  If the Indemnifying Party assumes the defense
of a Proceeding, (i) it will be conclusively established for purposes of
this Agreement that the claims made in that Proceeding are within the scope of
and subject to indemnification under this Article VII; (ii) no
compromise or settlement of such claims may be effected by the Indemnifying
Party without the Indemnified Party’s consent unless (A) there is no
finding or admission of any violation of Legal Requirement or any violation of
the rights of any Person and no effect on any other claims that may be made
against the Indemnified Party, and (B) the sole relief provided is
monetary damages that are paid in full by the Indemnifying Party and that
includes as an unconditional term thereof the release by the claimant or the
plaintiff of the Indemnified Party from all liability in respect of such
Proceeding and the matters that are subject to the indemnification claim; and (iii) the
Indemnified Party will have no liability with respect to any compromise or
settlement of such claims effected without its consent.  The Indemnified Party shall have the right to
employ separate counsel in any Proceeding in which the Indemnifying Party has
assumed the defense and to participate in the defense thereof, but the fees and
expenses of such counsel shall be at the expense of the Indemnified Party
(notwithstanding any other provision of this Article VII) unless
the Indemnifying Party has failed or refuses to employ counsel or unless the
Indemnifying Party is not pursuing the defense of the Proceedings or that there
exists actual or potential conflicts of interest which make representation by
the same counsel inappropriate.  The
Indemnified Party’s right to participate in the defense or response to any
Proceeding shall not be deemed to limit or otherwise modify the Indemnifying
Party’s obligations under this Article VII.  If notice is given to an Indemnifying Party
of the commencement of any Proceeding and the Indemnifying Party does not,
within twenty (20) days after the Indemnified Party’s notice is given, give
notice to the Indemnified Party of its election to assume the defense of such
Proceeding, the Indemnified Party will have the right to undertake the defense
of such Proceeding.  Any settlement or
compromise made or caused to be made by the Indemnified Party (unless the
Indemnified Party has the exclusive right to settle or compromise under Section 7.3)
or the Indemnifying Party, as the case may be, of any Proceeding of the kind
referred to in Section 7.3 shall also be binding upon the
Indemnifying Party or the Indemnified Party, as the case may be, in the same
manner as if a final judgment or decree had been entered by a court of
competent jurisdiction in the amount of such settlement or compromise;
provided, that (i) no obligation, restriction or Loss shall be imposed on
the Indemnified Party as a result of such settlement or compromise without its
prior written consent, which consent shall not be unreasonably withheld, and (ii) the
Indemnified Party will not compromise or settle any such Proceeding without the
prior written consent of the Indemnifying Party, which consent shall not be
unreasonably withheld.

 

27

 

Section 7.4                                   Limitations
of Liability

 

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

 

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

 

(c)                                  THE SOLE AND EXCLUSIVE LIABILITY AND
RESPONSIBILITY OF EACH INDEMNIFYING PARTY TO ANY INDEMNIFIED PARTY UNDER THIS
AGREEMENT, AND THE SOLE AND EXCLUSIVE REMEDY OF ANY INDEMNIFIED PARTY AGAINST
ANY INDEMNIFYING PARTY UNDER THIS AGREEMENT SHALL BE AS SET FORTH IN THIS ARTICLE
VII AND SECTION 8.2; PROVIDED, HOWEVER, THAT THE LIMITATIONS
SET FORTH IN THIS SECTION 7.4 SHALL NOT APPLY IN THE CASE OF FRAUD
OR AN INTENTIONAL MISREPRESENTATION BY ANY INDEMNIFYING PARTY.  TO THE EXTENT THAT ANY INDEMNIFIED PARTY HAS
ANY LOSSES FOR WHICH IT MAY ASSERT ANY OTHER RIGHT TO INDEMNIFICATION,
CONTRIBUTION OR RECOVERY FROM ANY INDEMNIFYING PARTY (WHETHER UNDER THIS
AGREEMENT OR UNDER ANY COMMON LAW THEORY OR ANY LEGAL REQUIREMENT), EXCEPT FOR
FRAUD OR INTENTIONAL MISREPRESENTATION, SUCH INDEMNIFYING PARTY HEREBY WAIVES,
RELEASES AND AGREES NOT TO ASSERT SUCH RIGHT, AND SUCH PARTY AGREES TO CAUSE
EACH OF ITS RESPECTIVE INDEMNIFIED PARTIES TO WAIVE, RELEASE AND AGREE NOT TO
ASSERT SUCH RIGHT, REGARDLESS OF THE THEORY UPON WHICH ANY CLAIM MAY BE
BASED, WHETHER CONTRACT, EQUITY, TORT, WARRANTY, STRICT LIABILITY OR ANY OTHER
THEORY OF LIABILITY.

 

28

 

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

 

Section 7.5                                   Survival.  All representations, warranties,
covenants and obligations in the Agreement, the Company Disclosure Schedule,
the REG Disclosure Schedule, the certificates delivered pursuant to Article VI
and any other certificate delivered pursuant to this Agreement shall survive
the Closing and the consummation of the transactions contemplated hereby,
subject to Section 9.1.

 

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

 

Section 7.7                                   Express
Negligence.  THE FOREGOING INDEMNITIES ARE INTENDED TO BE ENFORCEABLE
AGAINST THE PARTIES IN ACCORDANCE WITH 

 

29

 

THE
EXPRESS TERMS AND SCOPE THEREOF NOTWITHSTANDING ANY EXPRESS NEGLIGENCE RULE,
DOCTRINE RELATING TO INDEMNIFICATION FOR STRICT LIABILITY OR ANY SIMILAR
DIRECTIVE THAT WOULD PROHIBIT OR OTHERWISE LIMIT INDEMNITIES BECAUSE OF THE
NEGLIGENCE (WHETHER SOLE, CONCURRENT, ACTIVE OR PASSIVE) OR OTHER FAULT OR
STRICT LIABILITY OF ANY OF THE INDEMNIFIED PARTIES.

 

ARTICLE VIII

TERMINATION

 

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

 

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

 

(b)                by the Purchaser or REG by giving written
notice to the Sellers at any time (i) if any Seller has breached any
representation, warranty, covenant or agreement contained in this Agreement in
a manner that, individually or in the aggregate, has or is reasonably expected
to have a Material Adverse Effect with respect to Purchaser, REG or the Company
or a materially adverse effect on  the
timely consummation of the transactions contemplated hereby, the Purchaser has
notified the Seller of the breach and the breach has continued uncured for a
period of thirty (30) days after the notice of breach or (ii) if the
Closing shall not have occurred on or before May 1, 2008 by reason of the
failure of any condition precedent under Section 6.1 hereof or if
any such condition becomes impossible to fulfill (in each case, unless the
failure or impossibility results primarily from the Purchaser or REG breaching
any representation, warranty, covenant or agreement contained in this
Agreement); or

 

(c)                 by the Sellers giving written notice to
the Purchaser and REG at any time (i) if the Purchaser or REG has breached
any representation, warranty, covenant or agreement contained in this Agreement
in a manner that, individually or in the aggregate, has or is reasonably
expected to have a Material Adverse Effect with respect to Purchaser, REG,
Members or the Company or a materially adverse effect on  the timely consummation of the
transactions contemplated hereby, the Sellers have notified the Purchaser and
REG of the breach and the breach has continued uncured for a period of thirty
(30) days after the notice of breach, or (ii) if the Closing shall not
have occurred on or before May 1, 2008 by reason of the failure of any
condition precedent under Section 6.2 hereof or if any such
condition becomes impossible to fulfill (in each case, unless the failure or
impossibility results primarily from a Seller breaching any representation,
warranty, covenant or agreement contained in this Agreement).

 

Section 8.2                                   Effect of Termination;
Liquidated Damages.  Termination of this Agreement pursuant to
Section 8.1 shall terminate all obligations of the parties
hereunder, without liability of any party to any other party (except for the
liability of any party then in breach), except for the obligations under Section 5.6,
this Section 8.2, Article VII and Sections 9.1, 9.3,
9.6, 9.13 and 9.14.  In the
event this Agreement is terminated pursuant to Section 8.1(b)(i),
Company shall pay to Purchaser and REG as liquidated damages One Million U.S. 

 

30

 

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

 

ARTICLE IX

MISCELLANEOUS

 

Section 9.1                                   Survival.  The representations and warranties contained in Articles
II and III shall survive for twelve (12) months after the date such
representation and warranty at issue is made under this Agreement, except that (a) all
representations and warranties set forth in Sections 2.5 and 2.7
hereof shall survive until the expiration of all applicable statutes of limitation
and any extensions thereof and (b) all representation and warranties set
forth in Sections 2.1, 2.2, 3.1, 3.2, and 3.3
will continue in full force and effect indefinitely.  All other obligations of the parties hereto
shall survive indefinitely.

 

Section 9.2                                   Amendment
and Modification; Waiver.  Any term of this Agreement may be amended, modified or
supplemented and the observance of any term of this Agreement may be waived
(either generally or in a particular instance and either retroactively or
prospectively), only by the written agreement of the Sellers, the Purchaser and
REG.  Any waiver pursuant to this Section 9.2
shall not operate as a waiver of, or estoppel with respect to, any subsequent
or other failure.

 

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

 

	
  If to BIG, to:

  	
   

  	
  Biodiesel
  Investment Group, LLC

  	
   

  	
   

  
	
   

  	
   

  	
  1661 International Drive, Suite 400

  	
   

  	
   

  
	
   

  	
   

  	
  Memphis, Tennessee 38120

  	
   

  	
   

  
	
   

  	
   

  	
  Attn: Mark A. Burke, President

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone No.: 901-818-3033

  	
   

  	
   

  

 

31

 

	
   

  	
   

  	
  Facsimile No.: 901-767-4441

  	
   

  	
   

  
	
   

  	
   

  	
  Email: mburke@markaburke.com

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  with
  a copy to:

  	
   

  	
  Wyatt, Tarrant & Combs, LLP

  	
   

  	
   

  
	
   

  	
   

  	
  500 West Jefferson Street, Suite 2800

  	
   

  	
   

  
	
   

  	
   

  	
  Louisville, Kentucky 40202

  	
   

  	
   

  
	
   

  	
   

  	
  Attn: Robert A. Heath

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone No.: 502-562-7201

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile No.: 502-589-0309

  	
   

  	
   

  
	
   

  	
   

  	
  Email: rheath@wyattfirm.com

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  If to Bunge, to:

  	
   

  	
  Bunge North
  America, Inc.

  	
   

  	
   

  
	
   

  	
   

  	
  11720 Borman
  Drive

  	
   

  	
   

  
	
   

  	
   

  	
  PO Box 28500

  	
   

  	
   

  
	
   

  	
   

  	
  St. Louis,
  Missouri 63146

  	
   

  	
   

  
	
   

  	
   

  	
  Attn: General
  Manager- Biofuels

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone No.:
  314-292-2512

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile No.:
  314-292-2112

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Bunge North
  America, Inc.

  	
   

  	
   

  
	
   

  	
   

  	
  11720 Borman Drive

  	
   

  	
   

  
	
   

  	
   

  	
  PO Box 28500

  	
   

  	
   

  
	
   

  	
   

  	
  St. Louis, Missouri
  63146

  	
   

  	
   

  
	
   

  	
   

  	
  Attn: General Counsel

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone No.:
  314-292-2512

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile No.:
  314-292-2112

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Thompson Coburn, LLP

  	
   

  	
   

  
	
   

  	
   

  	
  One US Bank Plaza

  	
   

  	
   

  
	
   

  	
   

  	
  St. Louis, Missouri
  63101

  	
   

  	
   

  
	
   

  	
   

  	
  Attn: Kimberly M.
  Eilerts

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone No.: 314-552-6172

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile No.:
  314-552-7172

  	
   

  	
   

  
	
   

  	
   

  	
  Email:
  keilerts@thompsoncoburn.com

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  If to Purchaser, to:

  	
   

  	
  Blackhawk Biofuels, LLC

  	
   

  	
   

  
	
   

  	
   

  	
  22 Chicago Avenue

  	
   

  	
   

  
	
   

  	
   

  	
  Freeport, IL 61032-4230

  	
   

  	
   

  
	
   

  	
   

  	
  Attn: Ron Mapes, Chair

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone No.: 815-235-2461

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile No.: 815-235-4727

  	
   

  	
   

  
	
   

  	
   

  	
  Email: mapesfarms@blkhawk.net

  	
   

  	
   

  

 

32

 

	
  with a copy to:

  	
   

  	
  Lindquist & Vennum, PLLP

  	
   

  	
   

  
	
   

  	
   

  	
  4200 IDS Center

  	
   

  	
   

  
	
   

  	
   

  	
  80 South Eighth Street

  	
   

  	
   

  
	
   

  	
   

  	
  Minneapolis, MN 55402-2274

  	
   

  	
   

  
	
   

  	
   

  	
  Attn: Dean Edstrom

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone No.: 612-371-3955

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile No.: 612-371-3207

  	
   

  	
   

  
	
   

  	
   

  	
  Email: dedstrom@lindquist.com

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  If to REG, to:

  	
   

  	
  Renewable Energy
  Group, Inc. and

  	
   

  	
   

  
	
   

  	
   

  	
  REG Danville, LLC

  	
   

  	
   

  
	
   

  	
   

  	
  416 S. Bell Avenue

  	
   

  	
   

  
	
   

  	
   

  	
  PO Box 888

  	
   

  	
   

  
	
   

  	
   

  	
  Ames, IA 50010

  	
   

  	
   

  
	
   

  	
   

  	
  Attn: Jeffrey
  Stroburg

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone No.:
  515-239-8121

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile No.:
  515-239-8009

  	
   

  	
   

  
	
   

  	
   

  	
  Email:  jeff.stroburg@regfuel.com

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Wilcox Polking Gerken Schwartzkopf & Copeland, P.C.

  	
   

  	
   

  
	
   

  	
   

  	
  115 E. Lincolnway Street, Suite 200

  	
   

  	
   

  
	
   

  	
   

  	
  Jefferson, Iowa

  	
   

  	
   

  
	
   

  	
   

  	
  Attn:   John A.
  Gerken, Esq.

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone No.: 515-386-3158

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile No.: 515-386-8531

  	
   

  	
   

  
	
   

  	
   

  	
  Email: jgerken@wilcoxlaw.com

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  If to the Company, to:

  	
   

  	
  Biofuels Company of America, LLC

  	
   

  	
   

  
	
   

  	
   

  	
  1661 International Drive, Suite 400

  	
   

  	
   

  
	
   

  	
   

  	
  Memphis, Tennessee 38120

  	
   

  	
   

  
	
   

  	
   

  	
  Attn: Mark A. Burke, President

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone No.: 901-818-3033

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile No.: 901-767-4441

  	
   

  	
   

  
	
   

  	
   

  	
  Email: mburke@markaburke.com

  	
   

  	
   

  

 

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

 

Section 9.5                                   Assignment.  This Agreement and all of the provisions hereof shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns. 
Neither this Agreement nor any of the rights, interests or obligations
hereunder shall be assigned by (a) the Purchaser or REG without the prior
written consent of the Sellers; (b) the Sellers or any of them without the
prior written consent of the Purchaser and REG; (c) the Purchaser without
the prior written consent of REG; or (d) REG without the prior 

 

33

 

written
consent of Purchaser.  No permitted
assignment shall relieve the assigning party of any of its obligations
hereunder.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 9.14                            Jury
Waiver.  EACH OF THE PARTIES HEREBY
UNCONDITIONALLY WAIVES ANY RIGHT TO A JURY TRIAL WITH RESPECT TO AND IN ANY
ACTION, PROCEEDING, CLAIM, COUNTERCLAIM, DEMAND, DISPUTE OR OTHER MATTER
WHATSOEVER ARISING OUT OF THIS AGREEMENT.

 

[SIGNATURE
PAGE FOLLOWS]

 

34

 

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

 

	
   

  	
  SELLERS:

  
	
   

  	
   

  
	
   

  	
  BIODIESEL
  INVESTMENT

  
	
   

  	
  GROUP,
  LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
    /S/  Mark A. Burke

  
	
   

  	
  Name: Mark A. Burke

  
	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
  BUNGE
  NORTH AMERICA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
    /S/  Eric Hakmiller

  
	
   

  	
  Name: Eric Hakmiller

  
	
   

  	
  Title: Vice
  President & General Manager

  
	
   

  	
           
   Bunge Biofuels

  
	
   

  	
   

  
	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  BLACKHAWK BIOFUELS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
    /S/  Ronald Mapes

  
	
   

  	
  Name: Ronald Mapes

  
	
   

  	
  Title:  Chairman

  
	
   

  	
   

  
	
   

  	
  REG:

  
	
   

  	
   

  
	
   

  	
  RENEWABLE ENERGY GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
    /S/  Jeffrey
  Stroburg

  
	
   

  	
  Name: Jeffrey Stroburg

  
	
   

  	
  Title: Chairman and CEO

  
	
   

  	
   

  
	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  BIOFUELS COMPANY OF AMERICA, LLC

  
	
   

  	
   

  
	
   

  	
  By: 

  	
    /S/  Mark A. Burke

  
	
   

  	
  Name: Mark A. Burke

  
	
   

  	
  Title: President

  

 

ASSET PURCHASE AGREEMENT SIGNATURE PAGE

 

35

 

EXHIBIT A

DEFINITIONS

 

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

 

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

 

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

 

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

 

“Assets” shall mean the Facility, the Assumed
Contracts, furniture, equipment, Intellectual Property Assets, personal
property and intangible assets (including tax credits and Governmental
Authorizations), and any leasehold interests in real property and fixtures,
excluding Excluded Assets, owned directly or indirectly by the Company.

 

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

 

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

 

A-1

 

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

 

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

 

“BIG” shall have the meaning set forth in the
recitals.

 

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

 

“Bunge” shall have the meaning set forth in the
recitals.

 

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

 

“Closing” shall have the meaning set forth in Section 1.3.

 

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

 

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

 

“Code” means the Internal Revenue Code of 1986,
as amended.

 

“Company” shall have the meaning set forth in
the recitals.

 

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

 

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

 

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

 

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

 

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

 

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

 

“Debt Service Fund Account” means that certain
escrow account established on behalf of Company to Fifth Third Bank whereby
Company has deposited the required cash portion of the 

 

A-2

 

Debt Service Amount, such
cash portion in the amount of $2,800,000, which amount represents eighty
percent (80%) of the Debt Service Fund Amount.

 

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

 

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

 

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

 

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

 

“Effective Date” shall have the meaning set
forth in the recitals.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

A-3

 

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

 

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

 

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

 

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

 

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

 

“Facility” shall have the meaning set forth in
the Recitals.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“IFA” means the Illinois finance Authority.

 

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

 

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

 

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

 

A-4

 

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

 

“IRS” means the United States Internal Revenue
Service.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Permitted Liens” means (i) mechanics’
liens, workmen’s liens, carriers’ liens, repairmen’s liens, landlord’s liens,
vendor’s liens, liens for master’s or crew’s wages or other like liens arising
or incurred in the ordinary course of business in respect of obligations that
are not overdue, (ii) statutory liens for Taxes, assessments and other
similar governmental charges that are not yet due or are being contested in
good faith and for which adequate reserves have been established, (iii) liens
incurred or deposits made to secure the performance of bids, contracts,
statutory obligations, surety and appeal bonds incurred in the ordinary course
of business, (iv) liens that arise under zoning, land use and other
similar imperfections of title that arise in the ordinary course of business
and that, individually or in the aggregate, do not materially affect the
Company’s business as presently conducted or the value or marketability of such
title, (v) liens in 

 

A-5

 

the ordinary course that
do not materially impair the Company’s use of the property or asset, (vi) those
liens, if any, permitted to be imposed by the Purchaser, including those set
forth on Schedule 2.5(b) of the Company’s Disclosure Schedule or (vii) mortgage
liens and security interests granted to Fifth Third Bank by the Company with
respect to the Assets securing indebtedness in an amount not to exceed
$24,650,000 as of the Closing Date.

 

“Person” means any individual, Entity or
Governmental Authority.

 

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

 

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

 

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

 

“Purchaser” shall have the meaning set forth in
the recitals.

 

“Purchaser’s Indemnified Parties” shall have
the meaning set forth in Section 7.1(a).

 

“Real Property” shall have the meaning set
forth in Section 2.5(a).

 

“REG” shall have the meaning set forth in the
recitals.

 

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

 

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

 

“REG Equipment
Allowance” shall mean the amount of $10,000 to be paid by Purchaser to REG
following the Closing upon submission of an invoice therefor in exchange for
equipment to be provided by REG or its Affiliates to the Company and Purchaser.

 

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

 

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

 

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

 

“Reimbursements” shall have the meaning set
forth in Section 1.2(d).

 

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

 

A-6

 

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

 

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

 

“SEC” means the Securities and Exchange
Commission.

 

“Securities Act” shall mean the Securities Act
of 1933, as amended.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

A-7

 

EXHIBITS AND SCHEDULES

 

	
  Exhibit A

  	
   

  	
  Definitions

  
	
  Exhibit B

  	
   

  	
  Escrow Agreement

  
	
  Exhibit C

  	
   

  	
  Oil Feedstock Supply Agreement

  
	
  Exhibit D

  	
   

  	
  Services Agreement

  
	
  Exhibit E

  	
   

  	
  Bill of Sale

  
	
  Exhibit F

  	
   

  	
  Assignment and Assumption Agreement

  
	
  Exhibit G

  	
   

  	
  Confidentiality Agreement

  
	
  Exhibit H

  	
   

  	
  Stockholder Agreement

  
	
  Exhibit I

  	
   

  	
  Registration Rights Agreement

  
	
  Exhibit J

  	
   

  	
  Preliminary Testing Description

  
	
   

  	
   

  	
   

  
	
  Schedule 2.2

  	
   

  	
  Noncontravention

  
	
  Schedule 2.4

  	
   

  	
  Title to Assets

  
	
  Schedule 2.5(a)

  	
   

  	
  Description of Real Property

  
	
  Schedule 2.5(c)(vi)

  	
   

  	
  Right of First Offer, etc.

  
	
  Schedule 2.5(c)(viii)

  	
   

  	
  Utilities Exceptions

  
	
  Schedule 2.7

  	
   

  	
  Environmental Compliance

  
	
  Schedule 2.8(b)

  	
   

  	
  Breach of Assumed Contract

  
	
  Schedule 2.8(c)

  	
   

  	
  Notice of Claims Under Assumed Contract

  
	
  Schedule 2.8(d)

  	
   

  	
  Consents and Notices

  
	
  Schedule 2.11

  	
   

  	
  Compliance with Laws

  
	
  Schedule 2.12

  	
   

  	
  Permits

  
	
  Schedule 2.13

  	
   

  	
  Insurance

  
	
  Schedule 2.14

  	
   

  	
  Employee Matters

  
	
  Schedule 2.15

  	
   

  	
  Benefit Plans

  
	
  Schedule 2.16

  	
   

  	
  Intellectual Property

  
	
  Schedule 2.17

  	
   

  	
  Brokers

  
	
  Schedule 3.5

  	
   

  	
  REG Financial Information

  
	
  Schedule 3.6

  	
   

  	
  Undisclosed Liabilities

  
	
  Schedule 4

  	
   

  	
  Assumed Contracts

  
	
  Schedule 5.2

  	
   

  	
  Pre-Closing Activities

  

 

Except for Exhibit A, exhibits and schedules to
the Asset Purchase Agreement are not being filed herewith.  The registrant undertakes to furnish
supplementally a copy of any omitted exhibit or schedule to the Commission upon
request, pursuant to Item 601(b)(2) of Regulation S-K.EXHIBIT
10.2

 

First
Amendment to Asset Purchase Agreement

 

The Asset Purchase Agreement
dated March 14, 2008 (the “Asset Purchase Agreement”) by and among each of
the undersigned is hereby amended by deleting “May 1, 2008” in Sections
8.1(b)(ii) and 8.1(c)(ii) and inserting in lieu thereof “May 9,
2008”. Except as amended hereby, the Asset Purchase Agreement remains in full
force and effect and is not amended or modified in any respect.

 

IN WITNESS WHEREOF, each of
the parties hereto has executed this First Amendment as of May 1, 2008.

 

 

	
   

  	
  SELLERS:

  
	
   

  	
  BIODIESEL
  INVESTMENT GROUP, LLC

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /S/  Mark A. Burke

  
	
   

  	
  Name: Mark A. Burke

  
	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
  BUNGE
  NORTH AMERICA, INC.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /S/  Michael M. Scharf

  
	
   

  	
  Name: Michael M. Scharf

  
	
   

  	
  Title: Senior Vice
  President

  
	
   

  	
   

  
	
   

  	
  PURCHASER:

  
	
   

  	
  BLACKHAWK
  BIOFUELS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/  Ronald L. Mapes

  
	
   

  	
  Name: Ronald L.
  Mapes

  
	
   

  	
  Title: Chairman

  
	
   

  	
   

  
	
   

  	
  REG:

  
	
   

  	
  RENEWABLE ENERGY GROUP,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/  Daniel J. Oh

  
	
   

  	
  Name: Daniel J. Oh

  
	
   

  	
  Title: Chief
  Operating Officer

  
	
   

  	
   

  
	
   

  	
  COMPANY:

  
	
   

  	
  BIOFUELS
  COMPANY OF AMERICA, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/  Mark A. Burke

  
	
   

  	
  Name: Mark A. Burke

  
	
   

  	
  Title: President

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