Document:

EXHIBIT 10.15

 

THE ASSOCIATED GENERAL
CONTRACTORS OF AMERICA

 

 

STANDARD
FORM OF DESIGN-BUILD

AGREEMENT AND GENERAL CONDITIONS

BETWEEN OWNER AND CONTRACTOR

 

 

TABLE OF ARTICLES

 

	
  1.

  	
  AGREEMENT

  
	
  2.

  	
  GENERAL PROVISIONS

  
	
  3.

  	
  CONTRACTOR’S RESPONSIBILITIES

  
	
  4.

  	
  OWNER’S RESPONSIBILITIES

  
	
  5.

  	
  SUBCONTRACTS

  
	
  6.

  	
  CONTRACT TIME

  
	
  7.

  	
  CONTRACT PRICE

  
	
  8.

  	
  CHANGES IN THE WORK

  
	
  9.

  	
  PAYMENT

  
	
  10.

  	
  INDEMNITY, LIMITATION OF LIABILITY, INSURANCE AND WAIVER OF
  SUBROGATION

  
	
  11.

  	
  TERMINATION OF THE AGREEMENT AND OWNER’S RIGHT TO
  PERFORM CONTRACTOR’S RESPONSIBILITIES

  
	
  12.

  	
  DISPUTE RESOLUTION

  
	
  13.

  	
  MISCELLANEOUS PROVISIONS

  
	
  14.

  	
  EXISTING CONTRACT DOCUMENTS

  
	
  15.

  	
  OTHER CONTINGENCIES

  

 

 

This Agreement has important legal and
insurance consequences. Consultation with an attorney and insurance consultant
is encouraged with respect to its completion or modification.

 

STANDARD FORM OF
DESIGN-BUILD AGREEMENT AND

GENERAL CONDITIONS BETWEEN OWNER AND CONTRACTOR

 

ARTICLE 1

AGREEMENT

 

This Agreement is made this                        day
of May in the year 2008, by and between the

 

	
   

  	
  OWNER

  	
  Blackhawk Biofuels, LLC

  
	
   

  	
  (Name and Address)

  	
  22 South Chicago Street

  
	
   

  	
   

  	
  Freeport, IL 61032

  
	
   

  	
   

  	
   

  
	
   

  	
  and the

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CONTRACTOR

  	
  REG CONSTRUCTION &

  
	
   

  	
   

  	
  TECHNOLOGY GROUP, LLC

  
	
   

  	
  (Name and Address)

  	
  416 S Bell Avenue, PO Box 888

  
	
   

  	
   

  	
  Ames, IA 50010

  
	
   

  	
   

  	
   

  
	
   

  	
  for services in connection with the following (the “Project”):

  
	
   

  	
   

  	
   

  
	
   

  	
  PROJECT

  	
  Upgrades to existing 45 million gallon/year Biodiesel Plant located
  in Danville, Illinois.

  
				

 

Notice
to the parties shall be given at the above addresses.

 

ARTICLE 2

GENERAL PROVISIONS

 

2.1          TEAM RELATIONSHIP. The Owner and the
Contractor agree to proceed with the Project on the basis of trust, good faith
and fair dealing. The Contractor agrees to procure the architectural and
engineering services set forth below, and to furnish construction and
administration of the Work.

 

2.2          ARCHITECT/ENGINEER. Architectural and
engineering services shall be retained by the Contractor from independent
design professionals licensed under the laws of the state where the Project is
located. The person or entity providing architectural and engineering services
shall be referred to as the “Architect/Engineer.”  The architectural and engineering services
shall be procured and payments for such services shall be made pursuant to a
separate agreement between the Contractor and the Architect/Engineer. The
architectural and engineering 

 

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services are independent of the work or
services provided directly by the Contractor. The Architect/Engineer for the
Project is Todd & Sargent, Inc.

 

2.3          EXTENT OF AGREEMENT. This Agreement is
solely for the benefit of the parties, represents the entire and integrated
agreement between the parties, and supersedes all prior negotiations,
representations or agreements, either written or oral except as otherwise
specifically set forth herein.

 

2.4          DEFINITIONS. Capitalized terms used in this
Agreement are defined as follows:

 

2.4.1       “Additional Services”
shall be as defined in Section 3.7.

 

2.4.2       “Architect/Engineer”
shall be as defined in Section 2.2.

 

2.4.3       “Application for
Payment” shall mean the application prepared by Contractor and submitted to
Owner for payment in accordance with Article 9.

 

2.4.4       “Change Order” shall be
as defined in Section 8.1.

 

2.4.5       “Claims” shall be as
defined in Section 10.1.5.

 

2.4.6       “Confidential
Information” shall be as defined in Section 13.6.

 

2.4.7       “Contract Documents”
means collectively:

 

2.4.7.1    Change Orders and written amendments to this Agreement
signed by both the Owner and Contractor;

 

2.4.7.2    This Agreement, except for the existing Contract
Documents set forth in Section 2.4.7.5 below;

 

2.4.7.3    The Drawings and Specifications;

 

2.4.7.4    The information provided by the Owner pursuant to Section 4.1.2.1;

 

2.4.7.5    The documents in existence at the time of this
Agreement which are set forth in Article 14;

 

2.4.7.6    The Owner’s Program.

 

In the event of any inconsistency, conflict or ambiguity among the
Contract Documents, the Contract Documents shall govern in the order in which they
are listed above.

 

2.4.8       “Contract Price” shall
be as defined in Article 7.

 

2.4.9       “Crown” shall mean
Crown Ironworks Company, its affiliates and their respective contractors and
suppliers.

 

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2.4.10     “DeSmet” shall mean
DeSmet Ballestra North America, Inc.

 

2.4.11     “Day” shall mean a
calendar day.

 

2.4.12     “Disclosing
Party” shall be as defined in Section 13.6.

 

2.4.13     “Drawings
and Specifications” shall be as defined in Section 3.1.1.

 

2.4.14     “Estimated Contract Price” shall be as defined
in Article 7 and the Scope of Work and Estimated Budget Letter.

 

2.4.15     “Guaranteed
Maximum Price” shall be as defined in Article 7.

 

2.4.16     “Hazardous
Material” shall be as defined in Section 3.3.1.

 

2.4.17     “License”
shall be as defined in Section 3.1.2.

 

2.4.18     “Liquidated
Damages” shall be as defined in Section 6.2.

 

2.4.19     “Notice
to Proceed” shall be as defined in Section 6.1.

 

2.4.20     “Owner’s
Program” shall mean an initial description of the Owner’s objectives, including
budgetary and time criteria, space requirements and relationships, flexibility
and expendability requirements, special equipment and systems, and site
requirements.

 

2.4.21     “Process
Guarantee Letter” shall be as defined in Section 3.6.6.

 

2.4.22     “Protected
Party” shall be as defined in Section 13.6.

 

2.4.23     “Project”
shall be as defined in Article 1.

 

2.4.24     “Provider”
shall be as defined in Section 13.6.

 

2.4.25     “Recipient”
shall be as defined in Section 13.6.

 

2.4.26     “Representatives”
shall be as defined in Section 13.6.

 

2.4.27     “Schedule
of Work” shall be as defined in Section 3.2.4.

 

2.4.28     “Schedule
of Values” shall mean the schedule attached hereto as Exhibit A.

 

2.4.29     “Scope
of Work” shall be defined as in Article 7.

 

2.4.30     “Scope
of Work and Estimated Budget Letter” shall be defined as in Article 7.

 

2.4.31     “Separate
Contractor” shall mean a separate contractor employed by the Owner who is not a
Subcontractor, a Subsubcontractor or the Architect/Engineer.

 

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2.4.32     “Subcontractor”
shall mean a person or entity who has an agreement with the Contractor to
perform any portion of the Work. The term Subcontractor does not include the
Architect/Engineer or any Subsubcontractor or Separate Contractor.

 

2.4.33     “Substantial Completion” of the Work occurs on
the date when construction is sufficiently complete in accordance with the
Contract Documents so that the Owner can occupy or utilize the Project for the
use for which it is intended (Substantial Completion not being conditioned upon
the ability to remove processed waste water from the Project). This date shall
be confirmed by a certificate of Substantial Completion signed by the Owner and
Contractor. The certificate shall state the respective responsibilities of the
Owner and Contractor for security, maintenance, heat, utilities, damage to the
Work, and insurance. The certificate shall also list the items to be completed
or corrected, and establish the time for their completion and correction.

 

2.4.34     “Subsubcontractor”
shall mean a person or entity who has an agreement with a Subcontractor to
perform any portion of the Work.

 

2.4.35     “Technology”
shall be as defined in Section 3.1.2.

 

2.4.36     “Work”
shall mean completion of the Drawings and Specifications in accordance with Section 3.2,
the Additional Services provided in accordance with Section 3.7, and all
other services which are necessary to complete the Project in accordance with
and as reasonably inferable from the Contract Documents.

 

ARTICLE 3

CONTRACTOR’S RESPONSIBILITIES

 

The Contractor shall be responsible for procuring the design and for
the construction of the Work consistent with the Owner’s Program, as such Owner’s
Program may be modified by the Owner during the course of the Work. The
Contractor shall exercise reasonable skill and judgment in the performance of
the Work.

 

3.1          DESIGN SERVICES.

 

3.1.1       DRAWINGS AND SPECIFICATIONS. The
Contractor shall submit for the Owner’s written approval drawings and
specifications for the Project based on the Contract Documents or any further
development of Contract Documents that have been approved in writing by the
Owner (“Drawings and Specifications”). The Drawings and Specifications shall
set forth in detail the requirements for construction of the Work, and shall be
based upon codes, laws or regulations enacted at the time of their preparation
and updated for any changes in the same during construction (but any time or
increase in cost associated with such change shall be to the account of Owner).
Construction shall be in accordance with these approved Drawings and
Specifications. One set of these documents shall be furnished to the Owner
prior to commencement of construction. Contractor will provide “as-built”
drawings to Owner upon Substantial Completion.

 

3.1.2       OWNERSHIP OF DOCUMENTS, TECHNOLOGY. For
purposes of this Agreement “Technology” shall mean all expertise, knowledge,
data, designs, know how, 

 

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Drawings and
Specifications, blue prints, reports, processes, techniques, and other
proprietary and/or intellectual property developed by or licensed to Contractor
or any entity affiliated or related to Contractor, including any entity with
which Contractor has a right to the above property through an intellectual
property license, with respect to the design, construction, operation,
maintenance or repair of biodiesel production facilities in general, and
employed by Contractor in biodiesel plants it constructs as of the date of this
Agreement. Effective upon Contractor’s receipt of final payment under Section 9.3.1,
or the uncured default of Contractor under Section 11.2.2 and Owner
performing Contractor’s obligations hereunder, Contractor shall grant to Owner
a limited, non-exclusive, perpetual, royalty-free and irrevocable license
including the right to sublicense (where the rights of the sublicense shall be
limited to the same extent as the rights of the Owner hereunder) to use any and
all of the Technology solely in connection with the design, construction, operation,
maintenance and repair of the Project but not otherwise (the “License”). Notwithstanding
the foregoing, if it is determined under Article 12 of this Agreement that
Contractor was not in default at the time of conveyance of the License to the
Owner, then the License shall be deemed revoked, subject to the Owner’s
entitlement to have the License transferred to it in accordance with the
provisions of this section upon Contractor’s receipt of final payment hereunder.
The Owner’s rights to the Technology, under the License shall be limited to the
Technology as of the date of this Agreement and shall not include any future
licenses, developments, modifications, improvements, enhancements or
derivations of the Technology that are made by or on behalf of Contractor or
any entity affiliated or related to Contractor, unless offered by Contractor to
and purchased by the Owner. Such License shall be assignable to any mortgage
lender of the Project providing financing for its construction or operation and
to any subsequent owners of the Project. Owner agrees that it shall not sell to
third parties the Technology or License, except as part of the sale of the
Project, shall not use the Technology or License to build other facilities,
plants or structures, or distribute such Technology or License to third parties
except for the purpose of constructing, operating, maintaining, repairing or
replacing Owner’s property encompassing or relating to the Project, and then
only subject to appropriate provisions of confidentiality limiting the use of
such Technology or License for such purpose.

 

3.1.3       Contractor shall not be
responsible for any loss, injury or damage or failure of process or equipment,
to the extent they arise due to any modifications to the Technology, the process
or the equipment used in the operation of the Project, that were made without
Contractor’s prior approval or direction in writing or arise due to a failure
to operate, use or maintain the Project in accordance with the operating
manuals or the written directions of Contractor as provided to the Owner.

 

3.1.4       The designs, plans,
specifications, process and other engineering or technical information or data
provided directly or indirectly to Owner by Crown is proprietary to Crown and
shall at all times remain its exclusive property. Owner’s rights with respect
to such property of Crown shall be limited to such rights as are assigned to
Owner, and consented to by Crown. Notwithstanding the foregoing, Contractor and
Owner will work with Crown to seek Crown’s consent to allow any rights granted
by Crown to be transferable to any mortgage lender on the Project and to any
subsequent owner of the Project.

 

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3.2          CONSTRUCTION SERVICES.

 

3.2.1       Construction will commence
at the Project site in accordance with Section 6.1.

 

3.2.2       In order to complete
the Work, the Contractor shall provide all necessary construction supervision,
inspection, construction equipment, construction labor, materials, tools and
subcontracted items.

 

3.2.3       The Contractor shall
give all notices and comply with all laws and ordinances during the term of
this Agreement and during construction of the Project. Where there is a change
in the laws or ordinances after the effective date of this Agreement, the
Contractor shall be responsible for ensuring compliance with such new law or
ordinance, but any time or increase in cost associated with such change shall
be to the account of the Owner. If the Contractor considers such change to be a
change for purposes of Section 8.1, the Contractor may make a claim for a
Change Order under Section 8.1.

 

3.2.4       The Contractor shall
maintain the schedule of work which schedule shall indicate the dates for the
start and completion of the various stages of the construction including the
dates when information and approvals are required from the Owner (“Schedule of
Work”). The Schedule of Work shall be revised as required by the conditions of
the Work. Such schedule, or a separate schedule, shall set forth estimated construction
completion dates.

 

3.2.5       The Owner shall assist
the Contractor in securing the building permits necessary for performing the
Work and for the construction and operation of the Project.

 

3.2.6       The Contractor shall
take necessary precautions for the safety of Owner, Contractor, Subcontractors,
Subsubcontractors and their respective employees and invitees, on the Project
and shall comply with all applicable provisions of federal, state and municipal
safety laws to prevent accidents or injury to persons on, about or adjacent to
the Project site. The Contractor, directly or through its Subcontractors, shall
erect and properly maintain at all times, as required by the conditions and
progress of the Work, necessary safeguards for the protection of workers and
the public. The Contractor, however, shall not be responsible for the
elimination or abatement of safety hazards created or otherwise resulting from
work at the Project site carried on by the Owner or its employees, agents,
invitees, Separate Contractors or tenants. The Owner agrees to cause its
employees, agents, invitees, Separate Contractors and tenants to abide by and
fully adhere to all applicable provisions of federal, state and municipal
safety laws and regulations. The above provision shall not relieve Contractor,
Subcontractors or Subsubcontractors of their responsibility for the safety of
persons or property in the performance of their work, nor for compliance with
all applicable provisions of relevant laws.

 

3.2.7       The Contractor shall
keep full and accurate books and records as may be necessary for proper
financial management of the Work under this Agreement. The Owner shall be
afforded access to all the Contractor’s records, books, correspondence,
instructions, drawings, receipts, vouchers, memoranda and similar data relating
to the Work. The Contractor shall preserve all such records for a period of
three years after the final payment or longer where required by law.

 

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3.2.8       The Contractor shall
provide monthly written reports to the Owner on the progress of the Work
including copies of minutes from any site meetings. Contractor shall provide
other written and verbal reports to Owner from time to time as reasonably
required.

 

At all times the Contractor shall maintain the site of the Work free
from debris and waste materials resulting from the Work. At the completion of
the Work, the Contractor shall remove from the Project site all construction
equipment, tools, surplus materials, waste materials and debris.

 

3.3          HAZARDOUS MATERIAL.

 

3.3.1       A “Hazardous Material”
is any substance or material and in such quantities, as identified now or in
the future as hazardous under any federal, state or local law or regulation, or
any other substance or material which may be considered hazardous or otherwise
subject to statutory or regulatory requirements governing handling, disposal
and/or clean-up. The Contractor shall not be obligated to commence or continue
Work until any known or suspected Hazardous Material discovered at the Project
site has been removed, remediated, rendered or determined to be harmless by the
Owner as certified by an independent testing laboratory and approved by the
appropriate government agency.

 

3.3.2       If after the
commencement of the Work, known or suspected Hazardous Material is discovered
at the Project site, the Contractor shall be entitled to immediately stop Work
in the affected area, and the Contractor shall report the condition to the
Owner and, if required, the appropriate government agency.

 

3.3.3       The Contractor shall
not be required to perform any Work relating to or in the area of known or
suspected Hazardous Material without written mutual agreement.

 

3.3.4       The Owner shall be
responsible for retaining an independent testing laboratory to determine the
nature of the material encountered and whether it is a Hazardous Material
requiring corrective measures and/or remedial action. Such measures shall be
the sole responsibility of the Owner, and shall be performed in a manner minimizing
any adverse effect upon the Work. The Contractor shall resume Work in the area
affected by any Hazardous Material only upon written agreement between the
parties after the Hazardous Material has been removed or rendered harmless.

 

3.3.5       If the Contractor
incurs additional costs and/or is delayed due to the presence of known or
suspected Hazardous Material which was not introduced to the Project site by
Contractor, any Subcontractor or any Subsubcontractor, the Contractor shall be
entitled to an equitable adjustment in the Contract Price and/or the date of
Substantial Completion.

 

3.3.6       To the fullest extent
permitted by law, the Owner shall indemnify and hold harmless the Contractor,
Subcontractors and Subsubcontractors, and their invitees, agents, officers,
directors and employees of each of them, from and against any and all claims,
damages, losses, costs and expenses, including but not limited to attorney’s
fees, costs and expenses incurred in connection with litigation or arbitration,
arising out of or relating to the performance of the Work in any area affected
by Hazardous Material provided the Hazardous Material was not introduced to the
Project site by Contractor, any Subcontractor or any Subsubcontractor.

 

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3.3.7       Owner shall not be
responsible for hazardous conditions and/or Hazardous Materials introduced to
the Project site by Contractor, Architect/Engineer, Subcontractors or
Subsubcontractors or their invitees, agents, officers, directors or employees. To
the fullest extent permitted by law, Contractor shall indemnify and hold
harmless Owner, the Separate Contractors and their invitees, agents, officers,
directors and employees, from and against any and all claims, damages, losses,
costs and expenses, including but not limited to attorney’s fees, costs and
expenses, arising out of or resulting from those hazardous conditions and/or
Hazardous Materials introduced to the Project site by Contractor,
Subcontractors or Subsubcontractors or from anyone whose acts they may be
liable.

 

3.3.8       The terms of this Section 3.3
shall survive the completion of the Work under this Agreement and/or any
termination of this Agreement.

 

3.4          ROYALTIES, PATENTS AND COPYRIGHTS. The
Contractor shall pay all royalties and license fees which may be due on the
inclusion of any patented or copyrighted materials, methods or systems selected
by the Contractor and incorporated in the Work. The Contractor shall defend,
indemnify and hold the Owner harmless from all suits or claims for infringement
of any patent rights or copyrights arising out of such selection or use by
Owner. Contractor represents and warrants that it has all right and interest in
and to the Technology (or has obtained all such rights and interests) related
to the design, construction, operation, maintenance and repair of the
Work/Project and has the power and authority to grant the License to Owner as
contemplated by this Section. Owner shall pay no license fee or royalty to
Contractor or to any other person for Owner’s use of the Technology. The
consideration for the License is included in the amounts payable by Owner to
Contractor for the construction of the Work under this Agreement.

 

Contractor, at Contractor’s expense and at the direction of Owner,
shall defend any action or proceeding brought against Owner based on any claim
that the Work or the Project, or any part thereof, or that the operation or use
of the Work or the Project, or any part thereof, constitutes infringement upon
any United States patent or copyright, now or hereafter issued, including any
claim relating to the failure of Contractor to pay royalties or license fees. If
Owner is enjoined from the operation or use of the Work or the Project, or any
part thereof as a result of any patent or copyright suit, claim or proceeding,
Contractor shall at its sole expense take reasonable steps to procure the right
to operate or use the Work or the Project. If Contractor cannot so procure such
right within a reasonable time, Contractor shall promptly, at Contractor’s
expense, (i) modify the Work or the Project so as to avoid infringement of
any such patent or copyright or (ii) replace such Work with Work that does
not infringe or violate any such patent or copyright; provided, however, any
modified or replacement Work shall continue to enable the Project to meet any
and all performance guarantee criteria. Contractor shall indemnify, defend and
hold harmless Owner from and against any and all claims, damages, losses, costs
and expenses including attorney fees, costs and expenses, arising out of or
resulting from any claim for infringement with respect to the use of the
Technology related to and/or incorporated into the Work or the Project or for
any breach of any provision of this Section.

 

All provisions of this Section shall survive and remain in full
force and effect notwithstanding any termination or expiration of this
Agreement or the License. The above 

 

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indemnifications are given by Contractor to, and shall also apply for
the benefit of any subsequent owners of the Project.

 

3.5          TAX EXEMPTION. If in accordance with
the Owner’s direction an exemption is claimed for taxes, the Owner agrees to
defend, indemnify and hold the Contractor harmless from any related liability,
penalty, interest, fine, tax assessment, attorneys fees or other expense or
cost incurred by the Contractor as a result of or related to any action taken
by the Contractor in accordance with the Owner’s direction.

 

3.6          WARRANTIES AND COMPLETION.

 

3.6.1       The Contractor warrants
that all materials and equipment furnished under this Agreement will be new
unless otherwise specified, of good quality, in conformance with the Contract
Documents, and free from defective workmanship and materials. Warranties shall
commence on the date of Substantial Completion. The Contractor agrees to
correct all construction performed under this Agreement which proves to be
defective in workmanship and materials within such one year period or for such
longer periods of time as may be set forth with respect to specific warranties
for equipment, parts or other items required by the Contract Documents.

 

3.6.2       Those products,
equipment, systems or materials incorporated in the Work at the direction of or
upon the specific request of the Owner shall be covered exclusively by the
warranty of the manufacturer. There are no warranties which extend beyond the
description on the face thereof.

 

3.6.3       The Contractor shall
secure required certificates of inspection, testing or approval and deliver
them to the Owner.

 

3.6.4       The Contractor shall
collect all written warranties and equipment manuals and deliver them to the
Owner.

 

3.6.5       With the assistance of
the Owner’s maintenance personnel, the Contractor shall direct the checkout of
utilities and operations of systems and equipment for readiness, and assist in
their initial start-up and testing.

 

3.6.6       Contractor guarantees
and warrants that the Work/Project will achieve the performance requirements
with respect to the operation of the Work/Project as set forth in that certain
Process Guarantee Letter dated April 7, 2008, by and between the
Contractor and the Owner, which Process Guarantee Letter is incorporated into
this Agreement (“Process Guarantee Letter”). In the event of non compliance
with the performance requirements set forth in the Process Guarantee Letter,
Contractor shall take all action as necessary to remedy the deficiencies that
prevented the successful achievement of the performance requirements at
Contractor’s sole cost and expense.

 

Performance tests will be conducted jointly by Contractor and Owner to
verify achievement of the performance requirements. If the performance tests
fail to achieve the performance requirements, Contractor shall promptly take
such action as may be necessary to remedy, at its expense, all deficiencies
which prevented the successful completion of the 

 

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performance test. Contractor shall be required at its sole cost and
expense, to conduct one or more additional performance tests, until such time
that the performance tests confirm that the corrective measures have corrected
the deficiencies and the Work/Project meets the performance requirements.

 

Compliance with the performance requirements of the Process Guarantee
Letter shall be deemed to have been met when the cold filtration process accumulates three 24-hour
periods of operation producing soy biodiesel that passes the “ASTM
D6217-98(2003)e1 Modified” test at a rate equal to or greater than 41,287 lbs
per hour and when the FFA process accumulates one 24-hour period of operation
producing biodiesel feedstock with an equal to or less than 0.05% FFA at a rate
equal to 42,187 lbs per hour, all in accordance with the performance
requirements set forth in the Process Guarantee Letter.

 

3.6.7       Contractor further
warrants that the Work/Project shall demonstrate that it does not exceed those
air emission levels cumulatively allocable to the Project contained in, and
does not violate the terms and conditions of the air permits issued to the
Owner for the Project. If the Project fails to meet such air emission levels,
the Contractor, at Contractor’s sole cost and expense, shall correct any
defects or deficiencies in the Work/Project as necessary so that the Project
does not violate or exceed such air emission levels set forth in the air
permits. Contractor shall continue to take corrective measures until subsequent
performance tests demonstrate that the Project does not exceed the air emission
levels and otherwise complies with the performance requirements.

 

3.6.8       The standard of care
for all design and construction services performed by Contractor shall be the
care and skill ordinarily used by members of the design and construction
profession practicing under similar conditions at the same time and locality of
the Project with experience in designing and building biodiesel production
facilities. Notwithstanding this standard of care, the parties have agreed upon
specific performance standards for certain aspects of the Work, which standards
have been or will be set forth in any performance guarantee criteria. The
design and construction professional services shall be performed to achieve
such standards.

 

3.6.9       The warranty provided
by the Contractor in this Agreement shall be void and the Contractor shall not
be responsible for any loss, injury or damage or failure of process or
equipment, if any modifications are made by the Owner to the Work/Project, or
any material modifications to the process, or the equipment, used in the
operation of the Project, without the Contractor’s prior written approval or
direction in writing, or arise due to a failure to operate, use or maintain the
Project in accordance with the operating manuals or the written directions of
the Contractor as provided to the Owner.

 

3.6.10     Notwithstanding
anything in this Agreement, the Contractor’s liability with respect to all
equipment and services manufactured or supplied by Crown shall be limited to
procuring warranties and guarantees provided by such entities and the rendering
of all reasonable assistance to the Owner for the purpose of enforcing the
same, provided that nothing in this section shall derogate Contractor’s
obligations pursuant to this Agreement to properly perform the Work and achieve
Substantial Completion.

 

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3.7          ADDITIONAL SERVICES. Contractor shall
provide or procure the following additional services (the “Additional Services”)
upon the request of the Owner. A written agreement between the Owner and
Contractor shall define the extent of such Additional Services, such Additional
Services shall be considered a Change in the Work, unless they are specifically
included in Article 14.

 

3.7.1       Documentation of the
Owner’s Program, or establishing the Project budget.

 

3.7.2       Appraisals of existing
equipment, existing properties, and new equipment.

 

3.7.3       Consultations and
representations other than normal assistance in securing building permits,
before governmental authorities or others having jurisdiction over the Project.

 

3.7.4       Artistic renderings,
models and mockups of the Project or any part of the Project or the Work.

 

3.7.5       Interior design and
related services including procurement and placement of furniture, furnishings,
artwork and decorations.

 

3.7.6       Making revisions to
design documents after they have been approved by the Owner when revisions are
due to causes beyond the control of the Contractor.

 

3.7.7       Design, coordination,
management, expediting and other services supporting the procurement of
materials to be obtained, or work to be performed, by the Owner, including but
not limited to telephone systems, computer wiring networks, sound systems,
alarms, security systems and other specialty systems which are not a part of
this Agreement

 

3.7.8       Estimates, proposals,
appraisals, consultations, negotiations and services in connection with the
repair or replacement of an insured loss.

 

3.7.9       The premium portion of
overtime work ordered by the Owner including productivity impact costs.

 

3.7.10     Document reproduction
exceeding the limits provided for in this Agreement.

 

3.7.11     Out-of-town travel by
the Architect/Engineer in connection with the Work, except between the
Architect/Engineer’s office, Contractor’s office, Owner’s office and the
Project site.

 

3.7.12     Serving or preparing to
serve as an expert witness in connection with any proceeding, legal or
otherwise, regarding the Project where the Contractor and the Owner are not
adverse parties.

 

3.7.13     Preparing reproducible
record drawings from marked-up prints, drawings or other documents that
incorporate significant changes in the Work made during the construction.

 

12

 

3.7.14     Operator training
requested by Owner that extends past Contractors’ standard turn-key services. Standard
services include two weeks of pre-startup off-site training along with one week
on-site training. This is followed by two weeks of start-up support and
off-site support as needed for a period of one month.

 

ARTICLE 4

OWNER’S RESPONSIBILITIES

 

4.1          INFORMATION AND SERVICES PROVIDED BY OWNER.

 

4.1.1       The Owner shall provide
full information in a timely manner regarding requirements for the Project,
including the Owner’s Program and other relevant information.

 

4.1.2       The Owner shall
provide:

 

4.1.2.1    All necessary information describing the physical
characteristics of the site, including surveys, site evaluations, legal
descriptions, existing conditions, subsurface and environmental studies,
reports and investigations;

 

4.1.2.2    Inspection and testing services during construction as
required by law or as mutually agreed; and

 

4.1.2.3    Unless otherwise provided in the Contract Documents,
necessary approvals, site plan review, rezoning, easements and assessments,
necessary permits, fees and charges required for the construction, use,
occupancy or renovation of permanent structures, including legal and other
required services.

 

4.1.3       The Owner shall provide
reasonable evidence satisfactory to the Contractor, prior to commencing the
Work and on the first of each month during the progress of the Work, that
sufficient funds are available and committed for the entire cost of the
Project, including an allowance for changes in the Work as may be approved in
the course of the Work. Unless such reasonable evidence is provided, the
Contractor shall not be required to commence or continue the Work. The
Contractor may stop Work after seven (7) days’ written notice to the Owner
if such evidence is not presented within a reasonable time. The failure of the
Contractor to insist upon the providing of this evidence at any one time shall
not be a waiver of the Owner’s obligation to make payments pursuant to this
Agreement, nor shall it be a waiver of the Contractor’s right to request or
insist that such evidence be provided at a later date.

 

4.1.4       The Contractor shall be
entitled to rely on the completeness and accuracy of the information and
services required by this Section 4.1.

 

4.2          RESPONSIBILITIES DURING DESIGN.

 

4.2.1       The Owner shall review
and approve further development of the Drawings and Specifications.

 

13

 

4.3          RESPONSIBILITIES DURING CONSTRUCTION.

 

4.3.1       The Owner shall review
the Schedule of Work and timely respond to its obligations.

 

4.3.2       If the Owner becomes
aware of any error, omission or failure to meet the requirements of the
Contract Documents or any fault or defect in the Work, the Owner shall give
prompt written notice to the Contractor of same.

 

4.3.3       The Owner shall
communicate with the Subcontractors, Subsubcontractors, suppliers and
Architect/Engineer only through the Contractor. The Owner shall have no
contractual obligations to Subcontractors, Subsubcontractors, suppliers, or the
Architect/Engineer.

 

4.3.4       The Owner shall provide
insurance for the Project as provided in Article 10.

 

4.4          OWNER’S REPRESENTATIVE. The Owner’s
representative shall be selected by Owner and Owner shall notify Contractor
accordingly. The representative:

 

4.4.1       Shall be fully
acquainted with the Project;

 

4.4.2       Agrees to furnish the
information and services required of the Owner pursuant to Section 4.1 so
as not to delay the Work; and

 

4.4.3       Shall have authority to
bind the Owner in all matters requiring the Owner’s approval, authorization or
written notice. If the Owner changes its representative or the representative’s
authority as listed above, the Owner shall notify the Contractor in advance in
writing.

 

4.4.4       The Owner’s
Representative is Brad Oeltjenbruns.

 

ARTICLE 5

SUBCONTRACTS

 

Work not performed by the Contractor with its own forces shall be
performed by Subcontractors or Subsubcontractor.

 

5.1          RETAINING SUBCONTRACTORS. The Contractor shall
not retain any Subcontractor (nor shall any Subcontractor retain any
Subsubcontractor) to whom the Owner has a reasonable and timely objection,
provided that the Owner agrees to increase the Contract Price for any
additional costs incurred by the Contractor as a result of such objection. Owner
acknowledges the intention of Contractor to subcontract all or a portion of the
Work to TSW, LLC, and Owner agrees to same for all purposes under this
Agreement. The Contractor shall not be required to retain any Subcontractor to
whom the Contractor has a reasonable objection.

 

14

 

5.2          MANAGEMENT OF SUBCONTRACTORS. The Contractor shall
be responsible for the management of the Subcontractors and the
Subsubcontractors in the performance of their work.

 

5.3          ASSIGNMENT OF SUBCONTRACT AGREEMENTS. The
Contractor shall provide for assignment of Subcontractor and Subsubcontractor
agreements in the event the Owner terminates this Agreement for cause as
provided in Section 11.2. Following such termination, the Owner shall
notify in writing those Subcontractors and Subsubcontractors whose assignments
will be accepted, subject to the rights of sureties, if any.

 

ARTICLE 6

CONTRACT TIME

 

6.1          COMMENCEMENT OF THE WORK. Contractor shall be
authorized to commence the Work after Contractor gives Owner written notice to
proceed (“Notice to Proceed”), which Notice to Proceed shall be given by Owner
within two Days of Owner closing on the purchase of the assets of Biofuels
Company of America, LLC located in Danville, Illinois.. Actual construction at
the Project site shall commence after May 12, 2008, and shall proceed in
general accordance with the Schedule of Work as such schedule may be amended
from time to time, subject, however, to the provisions of Sections 3.3, 4.1.3
and 6.3.

 

6.2          SUBSTANTIAL COMPLETION. The date of Substantial
Completion of the Work shall be no later than 10 months after actual
commencement of construction at the Project site under the provisions of the
foregoing paragraph, so long as the Notice to Proceed is given by Owner to
Contractor no later than May 12, 2008 to allow the foregoing schedule to
be met, and subject to adjustment in accordance with the provisions of Section 6.3
and Article 8. Owner and Contractor agree that as liquidated damages for
delay, Contractor shall pay Owner $6,000 for each day that expires after the date
determined under this Section as the date of Substantial Completion until
such time as Substantial Completion is actually attained.

 

6.3          DELAYS IN TIME WORK.

 

6.3.1       If causes beyond the
Contractor’s control delay the progress of the Work, then the Contract Price
and/or the date of Substantial Completion shall be modified by Change Order as
appropriate. Such causes shall include but not be limited to: changes ordered
in the Work, acts or omissions of the Owner (including but not limited to delay
in issuing the Notice to Proceed) or Separate Contractors, the Owner preventing
the Contractor from performing the Work pending dispute resolution, Hazardous
Materials except those Hazardous Materials arising under Section 3.3.7,
materially differing site conditions, more than six inches of frost in the
ground at Project site on or after April 1, 2008, adverse weather
conditions not reasonably anticipated, fire, unusual transportation delays,
labor disputes, or unavoidable accidents or circumstances not the result of
Contractor’s, Subcontractor’s or Subsubcontractor’s negligence or willful
misconduct.

 

6.3.2       In the event delays to
the Project are encountered for any reason, the parties agree to undertake
reasonable steps to mitigate the effect of such delays.

 

15

 

ARTICLE 7

CONTRACT PRICE

 

The Estimated Contract Price is $10,844,327 subject to adjustment in
accordance with the provisions of Section 6.3 and Article 8, the
Contract Price being Cost of the Work plus a 10% Contractor’s fee, all as set
forth in the Scope of Work and Estimated Budget Letter dated April 25,
2008, by and between the Contractor and the Owner, which Scope of Work and
Estimated Budget Letter is incorporated into this Agreement (“Scope of Work and
Estimated Budget Letter”), and provided that the Contract Price shall not in
any event exceed $11,747,633 (“Guaranteed Maximum Price”). Owner acknowledges
the Contract Price does not include a contingency amount of $903,306 or any
amounts for builders risk insurance. “Cost” shall be as defined on Addendum A
attached hereto. In the event a contingency remains upon completion of the
Work, the Owner and Contractor shall mutually agree to specific additions to
the Work, which keep the total Project under the Guaranteed Maximum Price. In
the event Contractor has reasonable evidence (estimated to be 90 days after
formal notice to proceed and downpayment) that the Cost of the Work will exceed
the estimated Cost of the Work, the Owner and Contractor shall either agree to
a Change Order in accordance with the provisions of Article 8, or the
Owner will approve specific reductions to the scope of Work as set forth in the
Scope of Work and Estimated Budget Letter (the “Scope of Work”) necessary to
reduce the Cost of the Work where the resulting final price shall be less than
or equal to the Guaranteed Maximum Price. The Owner agrees not to make any
changes to the Scope of Work that negatively affect the Performance Guarantees
in the Process Guarantee Letter dated April 7, 2008.

 

ARTICLE 8

CHANGES IN THE WORK

 

Changes in the Work which are within the general scope of this
Agreement may be accomplished by Change Order without invalidating this
Agreement.

 

8.1          CHANGE ORDERS. A “Change Order” is a
written instrument, issued after execution of this Agreement, signed by the Owner
and Contractor stating their agreement upon a change and any adjustment in the
Contract Price and/or the date of Substantial Completion.

 

8.2          DETERMINATION OF COST. An increase or
decrease in the Contract Price resulting from a change in the Work shall be
determined by mutual agreement of the parties. If an increase or decrease
cannot be agreed to, and the Owner issues a written order for the Contractor to
proceed with the change, the adjustment in the Contract Price shall be
determined by the reasonable expense and savings of the performance of the Work
resulting from the change. If there is a net increase in the Contract Price, a
reasonable adjustment shall be made first to the contingency amount, then to
the Scope of Work all in accordance with Article 7. In the case of a net
decrease in cost, the amount of decrease in the Contract Price will not include
a reduction in overhead and profit. The Contractor shall maintain a documented,
itemized accounting which evidences the expenses and savings. The Contractor’s
overhead and profit for changes resulting in an increase in the Contract Price
shall be 10%.

 

16

 

8.3          NO OBLIGATION TO PERFORM. The Contractor shall
not be obligated to perform changed Work until a Change Order has been executed
by the Owner and Contractor, except as provided in Section 8.2

 

8.4          ADJUSTMENT OF UNIT PRICES. If a proposed Change
Order alters original quantities to a degree that application of previously
agreed to unit prices would be inequitable to either the Owner or the
Contractor, the unit prices and the Contract Price shall be equitably adjusted.

 

8.5          UNKNOWN CONDITIONS. If in the performance
of the Work the Contractor finds latent, concealed or subsurface physical
conditions which materially differ from the conditions the Contractor
reasonably anticipated, or if physical conditions are materially different from
those normally encountered and generally recognized as inherent in the kind of
work provided for in this Agreement, then the Contract Price and/or the date of
Substantial Completion shall be equitably adjusted by Change Order within a
reasonable time after the conditions are first observed.

 

8.6          CLAIMS FOR ADDITIONAL COST OR TIME. For any
claim for an increase in the Contract Price and/or an extension in the date of
Substantial Completion, the Contractor shall give the Owner written notice of
the claim within twenty-one (21) days after the occurrence giving rise to
the claim or within twenty-one (21) days after the Contractor first
recognizes the condition giving rise to the claim, whichever is later. Except
in an emergency, notice shall be given before proceeding to perform the change
in the Work giving rise to the claim for increase in the Contract Price or
extension of the date of Substantial Completion. Claims for design and
estimating costs incurred in connection with possible changes requested by the
Owner, but which do not proceed, shall be made within twenty-one (21) days
after the decision is made not to proceed. Any change in Contract Price and/or
date of Substantial Completion resulting from such claim shall be authorized by
Change Order.

 

8.7          EMERGENCIES. If any emergency
occurs affecting the safety of persons and/or property, the Contractor shall
reasonably act to prevent threatened damage, injury or loss. Any change in the
Contract Price and/or extension of the date of Substantial Completion on
account of emergency work shall be determined as provided in this Article.

 

ARTICLE 9

PAYMENT

 

9.1          INITIAL PAYMENT. Within two business
days of Owner closing upon its debt financing with its senior secured lender,
and in accordance with any of such lender’s commercially reasonable payment
requirements, Owner shall pay Contractor 10% of the Contract Price, or
$1,084,432 , towards the Contract Price. Retainage on this Project shall be in
the amount of 5% of each invoice provided by Contractor and such retainage
shall become due in accordance with Section 9.2.7 (Owner agreeing that
there shall be no retainage from the payment referenced in this Section).

 

17

 

9.2          PROGRESS PAYMENTS. Prior to submitting
the first Application for Payment, the Contractor shall provide a Schedule of
Values satisfactory to the Owner, consisting of a breakdown of the Contract
Price.

 

9.2.1       On or before the 30th
day of each month after the Work has commenced, the Contractor shall submit to
the Owner an Application for Payment in accordance with the Schedule of Values
based upon the Work completed and materials stored on the Project site or at
other locations approved by the Owner.

 

9.2.2       Within fifteen (15)
business days after receipt of each monthly Application for Payment and upon
Contractor’s complying with all Owner’s senior secured lender’s commercially reasonable
payment requirements, including delivery of signed lien waivers, the Owner (or
as otherwise required by Owner’s senior secured lender) shall pay directly to
the Contractor the appropriate amount for which Application for Payment is
made, less amounts previously paid by the Owner less any retainage.

 

9.2.3       If the Owner fails to
pay the Contractor at the time payment of any amount becomes due, then the
Contractor may, at any time thereafter, upon serving written notice that the
Work will be stopped within five (5) days after receipt of the notice by
the Owner, and after such five (5) day period, stop the Work until payment
of the amount owing has been received.

 

9.2.4       Payments due but unpaid
shall bear interest at the same interest rate the Owner is paying on its
construction loan or at the current “prime rate” as announced in the Wall
Street Journal, whichever is higher, plus two points.

 

9.2.5       The Contractor warrants
and guarantees that title to all Work, materials and equipment covered by an
Application for Payment, whether incorporated in the Project or not, will pass
to the Owner upon receipt of such payment by the Contractor free and clear of
all liens, claims, security interests or encumbrances, hereinafter referred to
as “liens.”

 

9.2.6       The Owner’s progress
payment, occupancy or use of the Project, whether in whole or in part, shall
not be deemed an acceptance of any Work not conforming to the requirements of
the Contract Documents.

 

9.2.7       Upon Substantial
Completion, Owner shall pay the Contractor the unpaid balance of the Contract
Price, less a sum equal to the Contractor’s and Owners mutually agreed upon
estimated cost of completing any unfinished items. The Owner thereafter shall
pay the Contractor monthly the amount retained for unfinished items as each
item is completed. Contractor shall notify Owner when it believes the Work is
substantially complete. Within five (5) days of Owner’s receipt of
Contractor’s notice, Owner and Contractor will jointly inspect such Work to
verify that it is substantially complete in accordance with the Contract
Documents. If such Work is substantially complete, Contractor and Owner shall
jointly prepare and issue a Certificate of Substantial Completion that will set
forth (i) the date of Substantial Completion of the Work, (ii) the
remaining items of Work that have to be completed before final payment, (iii) provisions
establishing Owner’s and Contractor’s responsibility for the Project’s
security, maintenance, utilities and insurance pending final payment, and (iv) an
acknowledgement that 

 

18

 

warranties commence to
run on the date of Substantial Completion, except as may otherwise be noted in
the Certificate of Substantial Completion.

 

9.3                               FINAL
PAYMENT.

 

9.3.1       Final payment,
consisting of the unpaid balance of the Contract Price, shall be due and
payable when the Work is fully completed. Before issuance of final payment, the
Owner may request satisfactory evidence that all payrolls, materials bills and
other indebtedness connected with the Work have been paid or otherwise
satisfied and may require delivery of any and all lien waivers not previously
delivered along with indemnifications of liens by Contractor for the benefit of
the Owner and the mortgage lender to the Project.

 

9.3.2       In making final payment
the Owner waives all claims except for:

 

9.3.2.1    Outstanding liens;

 

9.3.2.2    Improper workmanship or defective materials appearing
within one year after the date of Substantial Completion;

 

9.3.2.3    Work not in conformance with the Contract Documents;
and

 

9.3.2.4    Terms of any special warranties required by the
Contract Documents or as otherwise provided.

 

9.3.3       In accepting final
payment, the Contractor waives all claims except those previously made in
writing and which remain unsettled.

 

9.3.4       At the time of
submission of its final Application for Payment, Contractor shall provide or
deliver the following: (1) An affidavit that there are no claims,
obligations or liens outstanding or unsatisfied for labor, services, materials,
etc., (2) A general release executed by Contractor waiving all claims except
those claims previously made in writing to Owner, (3) The operating
manuals, warranties and other deliverables required by the Contract Documents, (4) Certificates
of Insurance to confirm that required coverages will remain in effect
consistent with the requirements of the Contract Documents, and (5) Such
other reasonable customary documents as are necessary for Owner and its lender
to obtain the required clean title to the Project which shall include all final
lien waivers from the Contractor, the Subcontractors and the Subsubcontractors.

 

9.3.5       Contractor shall
indemnify, defend and hold harmless Owner from and against any claims or
mechanics liens brought against Owner or against the Project as a result of the
failure of Contractor, Subcontractors or Subsubcontractors or those for whose
acts they are responsible, to pay for any services, materials, labor,
equipment, taxes or other items or obligations furnished or incurred for or in
connection with the Work. Within fifteen (15) days of receiving notice from
Owner that such a claim or mechanics lien has been filed, Contractor shall
commence to take the steps necessary to discharge said claim or lien,
including, if necessary, the furnishing of a mechanics lien bond if effective in Illinois, or other
security acceptable to Owner to insure over such liens. If
Contractor fails to do so, Owner will have the right to discharge the claim or
lien and hold Contractor liable for costs and expenses incurred including
attorney’s fees 

 

19

 

and costs. The
foregoing obligation of Contractor shall be subject to reasonable disputes that
Contractor may have with respect to any claim or mechanics lien provided
Contractor provides written notice of such dispute to Owner, Contractor bonds
over such item, and Owner agrees to delay the enforcement of its rights under
this Section.

 

ARTICLE 10

INDEMNITY, LIMITATION OF LIABILITY, INSURANCE AND WAIVER OF SUBROGATION

 

10.1        INDEMNITY. Contractor and Owner shall have the
following indemnifications, limitations of liability, and obligations hereunder:

 

10.1.1     Contractor
shall indemnify, defend and hold Owner, and its directors, managers, officers,
employees, and invitees harmless from and against any and all claims, suits,
losses, liabilities, costs, damages and expenses (to the extent not covered by
insurance policy or policies required to be placed pursuant to this Agreement),
including, without limitation, reasonable attorney fees and court costs, of any
kind or character arising out of or in any manner relating or attributed to: (i) any
inaccuracy in any representation or warranty of Contractor contained in this
Agreement, or (ii) any failure by Contractor to perform or observe in full
any covenant, agreement or condition to be performed or observed by it under
this Agreement which has not been remedied following notice and the expiration
of the applicable remedial periods, or (iii) any negligent act or willful
misconduct by Contractor or by anyone for whom it is responsible in law
including the Subcontractors and the Subsubcontractors. Any and all claims for
indemnification made under this Section must be made in writing within the
period provided by the applicable statute of limitations or such claims shall
be void.

 

10.1.2     Owner shall indemnify, defend, and hold Contractor,
and its directors, managers, officers, employees and invitees, harmless from
and against any and all claims, suits, losses, liabilities, costs, damages and
expenses (to the extent not covered by insurance policy or policies required to
be placed pursuant to this Agreement), including, without limitation,
reasonable attorney fees and court costs, of any kind or character arising out of
or in any manner relating or attributed to: 
(i) any inaccuracy in any representation or warranty of Owner
contained in this Agreement, or (ii) any failure by Owner to perform or
observe in full any covenant, agreement or condition to be
performed or observed by it under this Agreement which has not been remedied
following notice and the expiration of the applicable remedial periods, or (iii) any
negligent act or willful misconduct by the Owner or by anyone for whom it is
responsible in law including the Separate Contractors. Any and all claims for
indemnification made under this Section must be made in writing within the
period provided by the applicable statute of limitations or such claims shall
be void.

 

10.1.3     Neither
the Owner nor Contractor shall have recourse, and shall not bring any claim,
against any members, shareholders, directors, officers, managers, partners,
representatives or employees of Contractor or the Owner (or any of the
respective successors or assigns of such members, shareholders, directors,
officers, managers, partners, representatives or employees), with respect to
the obligations to be performed by Contractor or the Owner under this
Agreement.

 

20

 

10.1.4     Other
than the Liquidated Damages provided for under Section 6.2.2, in no event
shall either party be liable to the other party for indirect, incidental,
consequential, economic loss, punitive, special or exemplary damages, lost
production, loss of use, loss of profit or revenue, loss of goodwill or for the
loss of any fees or bonuses which have not been earned in accordance with the
terms of this Agreement, and each party releases the other party from the same;
provided, however, that notwithstanding the foregoing, obligations for indemnification
arising under Sections 3.3.6, 3.3.7, 3.4, 3.6.6 and 3.6.7 shall not be limited
by the foregoing provisions of this Section 10.1.4 in respect of claims by
third parties.

 

10.1.5     After
application of insurance proceeds as provided by a policy or policies of
insurance as required to be placed pursuant to this Agreement, the liability of
Contractor with respect to any and all claims, costs, losses or damages arising
out of or incurred by the Contractor under any of the provisions of or arising
out of the performance or non-performance of this Agreement, whether based on
strict liability, product liability, breach of contract, breach of statutory
duty, tort, negligence or any other legal or equitable basis or otherwise (“Claims”),
shall not exceed in the cumulative aggregate $250,000, inclusive of any
Liquidated Damages paid or incurred by Contractor, but not to include any of
Contractor’s costs to complete any warranty service or repairs to the
Work/Project.

 

10.1.6     In the event of a sale by the Owner of the Project,
the Owner agrees to cause the purchaser to enter into an agreement whereby the
purchaser consents to be bound by and to be afforded the benefit of this Section 10.1.

 

10.1.7     Notwithstanding the terms of this Section 10.1,
the Owner agrees that its recourse against Crown and its employees shall be as
set out in and limited by the warranties and guarantees provided by Crown,
copies of which have been provided to the Owner for its review and acceptance.

 

10.2                        CONTRACTOR’S
LIABILITY INSURANCE.

 

10.2.1     The Contractor shall
obtain and maintain insurance coverage for the following claims which may arise
out of the performance of this Agreement, whether resulting from the Contractor’s
operations or by the operations of any Subcontractor or Subsubcontractor,
anyone in the employ of any of them, or by an individual or entity for whose
acts they may be liable:

 

10.2.1.1      Workers’ compensation, disability benefit and other
employee benefit claims under acts applicable to the Work;

 

10.2.1.2      Under applicable employers liability law, bodily
injury, occupational sickness, disease or death claims of the Contractor’s,
Subcontractor’s or Subsubcontractor’s employees;

 

10.2.1.3      Bodily injury, sickness, disease or death claims for
damages to persons not employed by the Contractor, Subcontractors or
Subsubcontractors;

 

21

 

10.2.1.4      Usual personal injury liability claims for damages
directly or indirectly related to the person’s employment by the Contractor,
Subcontractors or Subsubcontractors or for damages to any other person;

 

10.2.1.5      Damage to or destruction of tangible property,
including the resulting loss of use, claims for property other than the Work
itself and other property insured under Section 10.5;

 

10.2.1.6      Bodily injury, death or property damage claims
resulting from motor vehicle liability in the use, maintenance or ownership of
any motor vehicle; and

 

10.2.1.7      Contractual liability claims involving the Contractor’s
obligations under Section 11.1.1.

 

10.2.2     The Contractor shall
also obtain and maintain Commercial General Liability, Automobile Liability and
Umbrella Liability Insurance which shall list Owner as an “Additional Insured”
on a primary and non-contributory basis and shall be written for not less than
the following limits of liability:

 

	
  10.2.2.1

  	
   

  	
  Commercial General Liability Insurance

  	
   

  

 

	
  (a)

  	
   

  	
  Each Occurrence Limit

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  General Aggregate

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c) 

  	
   

  	
  Products/Completed Operations
  Aggregate

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d)  

  	
   

  	
  Personal and
  Advertising Injury Limit 

  	
   

  	
  $

  	
  1,000,000 

  	
   

  

 

	
  10.2.2.2

  	
   

  	
  Comprehensive Automobile Liability Insurance

  	
   

  

 

	
  (a)

  	
   

  	
  Combined Single Limit
  Bodily Injury

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
   

  	
   

  	
  and Property Damage

  	
   

  	
  Each Occurrence

  	
   

  

 

	
  10.2.2.3

  	
   

  	
  Umbrella Liability

  	
   

  	
  $

  	
  10,000,000

  	
   

  

 

	
  10.2.2.4

  	
   

  	
  Employer’s Liability

  	
   

  	
   

  	
   

  	
   

  

 

	
  (a)

  	
   

  	
  Bodily Injury by
  Accident

  	
   

  	
  $

  	
  500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b) 

  	
   

  	
  Bodily Injury by
  Disease (Each Employee)

  	
   

  	
  $

  	
  500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c) 

  	
   

  	
  Bodily by Disease (Policy
  Limit)

  	
   

  	
  $

  	
  500,000

  	
   

  

 

22

 

10.2.3     Commercial General
Liability Insurance may be arranged under a single policy for the full limits
required or by a combination of underlying policies and an Excess or Umbrella
Liability policy.

 

10.2.4     The policies shall contain
a provision that coverage will not be cancelled or not renewed until at least
thirty (30) days prior written notice has been given to the Owner, and that
certificates of insurance showing required coverage to be in force shall be
delivered to the Owner prior to commencement of the Work and upon reasonable
request by the Owner thereafter.

 

10.2.5     Products and Completed
Operations insurance shall be maintained for a minimum period of at least two (2)
years after either ninety (90) days following the date of Substantial
Completion or final payment, whichever is earlier.

 

10.3                        PROFESSIONAL
LIABILITY INSURANCE. The Architect/Engineer’s professional
liability insurance for claims arising from the negligent performance of
professional services under this Agreement shall be written for not less than
$3,000,000 per claim and in the aggregate with a deductible not to exceed
$150,000. These requirements shall be continued in effect for three (3) years
after the date of Substantial Completion.

 

10.4                        OWNER’S
LIABILITY INSURANCE. The Owner shall be responsible for obtaining
and maintaining its own liability insurance.

 

10.5                        INSURANCE
TO PROTECT PROJECT.

 

10.5.1     The Owner shall obtain
and maintain property insurance in a form acceptable to the Contractor upon the
entire Project for the full cost of replacement at the time of any loss. This
insurance shall include as named insureds the Owner, Contractor,
Architect/Engineer, Subcontractors and Subsubcontractors. This insurance shall
insure against loss from the perils of fire and extended coverage, and shall
include “all risk” insurance for physical loss or damage including without
duplication of coverage, at least theft, vandalism, malicious mischief,
transit, collapse, falsework, temporary buildings, debris removal, flood,
earthquake, testing and resultant damage caused by design, workmanship or
materials. The Owner shall increase limits of coverage, if necessary, to
reflect estimated replacement cost. The Owner shall be responsible for any
co-insurance penalties or deductibles. This insurance shall include coverage
for testing and start up.

 

10.5.2     If the Owner occupies
or uses a portion of the Project prior to its Substantial Completion, such
occupancy or use shall not commence prior to a time mutually agreed to by the
Owner and the Contractor and to which the insurance company or companies
providing the property insurance have consented by endorsing the policy or
policies. Such insurance shall not be cancelled or lapsed on account of partial
occupancy. Consent of the Contractor to such early occupancy or use shall not
be unreasonably withheld.

 

10.5.3     The Owner shall obtain
and maintain boiler and machinery insurance as necessary. The interests of the
Owner, Contractor, Architect/Engineer, Subcontractors and Subsubcontractors
shall be protected under this coverage.

 

23

 

10.5.4     The Owner shall
purchase and maintain insurance to protect the Owner, Contractor,
Architect/Engineer, Subcontractors and Subsubcontractors against loss of use of
Owner’s property due to those perils insured against pursuant to Section 10.5.1.
Such policy will provide coverage for expediting expenses of materials,
continuing overhead of the Owner and the Contractor, Architect/Engineer,
Subcontractors and Subsubcontractors, necessary labor expense including
overtime, loss of income by the Owner and other determined exposures.

 

10.5.5     Upon the Contractor’s
request, the Owner shall provide the Contractor with a copy of all insurance
policies in which Contractor has an interest pursuant to the terms of this
Agreement. Copies of any subsequent endorsements shall be furnished to the
Contractor. Certificates of insurance showing coverage required to be carried
by Owner to be in force shall be delivered to the Contractor prior to
commencement of the Work, and upon reasonable requests by the Contractor
thereafter. The Contractor shall be given thirty (30) days’ notice of
cancellation, non-renewal, or any endorsements restricting or reducing coverage.
The Owner shall give written notice to the Contractor before commencement of
the Work if the Owner will not be obtaining property insurance. In that case,
the Contractor may obtain insurance in order to protect its interest in the
Work as well as the interest of the Architect/Engineer, Subcontractors and
Subsubcontractors in the Work. The Contract Price shall be increased by the
cost of this insurance through Change Order. If the Contractor is damaged by
failure of the Owner to purchase or maintain property insurance or to so notify
the Contractor, the Owner shall bear all reasonable costs incurred by the
Contractor arising from the damage.

 

10.6                        PROPERTY
INSURANCE LOSS ADJUSTMENT.

 

10.6.1     Any insured loss shall
be adjusted with the Owner and the Contractor and made payable to the Owner as
trustee for the insureds, as their interests may appear, subject to any
applicable mortgagee requirements.

 

10.6.2     Upon the occurrence of
an insured loss, monies received will be handled in accordance with any
mortgagee’s lending documents or otherwise will be deposited in a separate
account and the trustee of such account shall make distributions in accordance
with the agreement of the parties in interest, or in the absence of such
agreement, in accordance with an arbitration award pursuant to Article 12.

 

10.7        WAIVER OF SUBROGATION.

 

10.7.1     The Owner and
Contractor waive all rights against each other, the Architect/Engineer, and any
of their respective employees, agents, consultants, Subcontractors,
Subsubcontractors, and Separate Contractors for damages caused by risks covered
by insurance provided in Section 10.5 and for workers compensation claims
(if such waiver is allowable under the laws of the applicable jurisdiction) to
the extent they are covered by that insurance, except such rights as they may
have to the proceeds of such insurance held by the Owner and Contractor as
trustees. The Contractor shall require similar waivers from the
Architect/Engineer and all Subcontractors and Subsubcontractors, and shall
require each of them to include similar waivers in their subcontracts and
consulting agreements.

 

24

 

10.7.2   If during
the Project construction period the Owner insures properties, real or personal
or both, at or adjacent to the site by property insurance under policies
separate from those insuring the Project, or if after final payment property
insurance is to be provided on the completed Project through a policy or
policies other than those insuring the Project during the construction period,
the Owner shall waive all rights in accordance with the terms of Section 10.7.1
for damages caused by fire or other causes of loss covered by this separate
property insurance. All separate policies shall provide this waiver of
subrogation by endorsement.

 

10.7.3   If the
policies of insurance referred to in this Section require an endorsement
to provide for continued coverage where there is a waiver of subrogation, the
owners of such policies will cause them to be so endorsed.

 

ARTICLE 11

TERMINATION OF THE AGREEMENT AND OWNER’S RIGHT TO

PERFORM CONTRACTOR’S RESPONSIBILITIES

 

11.1        TERMINATION BY THE CONTRACTOR.

 

11.1.1     Upon seven (7) days’
written notice to the Owner, the Contractor may terminate this Agreement for
any of the following reasons:

 

11.1.1.1         If
the Work has been stopped by the Owner for a thirty (30) day period;

 

11.1.1.2         Under
court order or order of other governmental authorities having jurisdiction;

 

11.1.1.3         As
a result of the declaration of a national emergency or other governmental act
during which, through no act or fault of the Contractor, materials are not
available; or

 

11.1.1.4         Because
of the Owner’s failure to pay the Contractor in accordance with this Agreement;

 

11.1.1.5         If
the Work is suspended by the Owner for sixty (60) days;

 

11.1.1.6         If
the Owner materially delays the Contractor in the performance of the Work;

 

11.1.1.7         If
the Owner otherwise materially breaches this Agreement, and such material
breach has not been cured by Owner within ten (10) days of written notice
from Contractor of such material breach; or

 

11.1.1.8         If
the Owner fails to furnish reasonable evidence that sufficient funds are
available and committed for the entire cost of the Project in accordance with Section 4.1.3
of this Agreement.

 

25

 

11.1.2     Upon termination by the
Contractor in accordance with Section 11.1.1, the Contractor shall be
entitled to recover from the Owner payment for all Work executed and for any
proven loss, cost or expense, excluding lost profits (other than as expressly
set forth in this Section 11.1.2), in connection with the Work, plus all
demobilization costs. In addition, the Contractor shall be paid an amount
calculated as set forth below:

 

11.1.2.1      If the Contractor terminates this Agreement prior to
commencement of the construction, the Contractor shall be paid the unpaid
balance of the Contractor’s design costs as set forth in the Schedule of Values
plus 5% of the remaining balance of the Contract Price.

 

11.1.2.2      If the Contractor terminates this Agreement after
commencement of the construction, the Contractor shall be paid the unpaid
balance of the Contractor’s design costs as set forth in the Schedule of Values
plus 10% of the remaining balance of the Contract Price.

 

11.1.2.3      In either event set forth in Section 11.1.2.1 or
11.1.2.2, the payments as provided in Section 9.1 shall be credited to the
Owner’s account at the time of termination.

 

11.1.2.4      The Owner shall also pay to the Contractor fair
compensation, either by purchase or rental at the election of the Owner, for
any equipment retained. The Owner shall assume and become liable for
obligations, commitments and unsettled claims that the Contractor has
previously undertaken or incurred in good faith in connection with the Work or
as a result of the termination of this Agreement. As a condition of receiving
the payments provided hereunder, the Contractor shall cooperate with the Owner
by taking all steps necessary to accomplish the legal assignment of the
Contractor’s rights and benefits to the Owner, including the execution and
delivery of required papers.

 

11.2        OWNER’S RIGHT TO PERFORM CONTRACTOR’S
OBLIGATIONS AND TERMINATION BY THE OWNER FOR CAUSE.

 

11.2.1     If the Contractor
persistently fails to perform any of its obligations under this Agreement, the
Owner may, after seven (7) days’ written notice, during which period the
Contractor fails to perform such obligation, undertake to perform such
obligations. The Contract Price shall be reduced by the cost to the Owner of
performing such obligations.

 

11.2.2     Upon seven (7) days’
written notice to the Contractor and the Contractor’s surety, if any, the Owner
may terminate this Agreement for any of the following reasons:

 

11.2.2.1      The Contractor persistently utilizes improper materials
and/or inadequately skilled workers;

 

11.2.2.2      The Contractor does not make proper payment to
laborers, material suppliers or Subcontractors;

 

26

 

11.2.2.3      The Contractor does not timely prepare and deliver to
Owner’s lender any documentation reasonably required by such lender including,
but not limited to lien waivers;

 

11.2.2.4      The Contractor persistently fails to abide by the
orders, regulations, rules, ordinances or laws of governmental authorities
having jurisdiction; or

 

11.2.2.5      The Contractor otherwise materially breaches this
Agreement.

 

If the Contractor fails to cure within the seven (7) days, the
Owner, without prejudice to any other right or remedy, may take possession of
the site and complete the Work utilizing any reasonable means. In this event,
the Contractor shall not have a right to further payment until the Work is
completed, with any further payments reduced by Owner’s reasonable costs of
completion of the Work and damages suffered by Owner as a result of Contractor’s
actions. The Agreement may be immediately terminated by Owner in the event
Contractor becomes financial insolvent as reasonably determined by Owner.

 

11.2.3     The Agreement may be
immediately terminated by Owner in the event Contractor becomes insolvent or
becomes the subject of any bankruptcy proceeding or has a receiver or trustee
appointed over any of its assets or its business.

 

11.2.4     In the event the Owner
exercises its rights under this Section, upon the request of the Contractor the
Owner shall provide a detailed accounting of the cost incurred by the Owner.

 

11.3                        TERMINATION
BY OWNER WITHOUT CAUSE. If the Owner terminates this Agreement
other than as set forth in Section 11.2, the Owner shall pay the
Contractor for all Work executed and for any proven loss, cost or expense,
excluding lost profits (other than as expressly set forth in this Section 11.3),
in connection with the Work, plus all demobilization costs. In addition, the
Contractor shall be paid an amount calculated as set forth below:

 

11.3.1     If the Owner terminates
this Agreement prior to commencement of the construction, the Contractor shall
be paid the unpaid balance of the Contractor’s design costs as set forth in the
Schedule of Values plus 5% of the remaining balance of the Contract Price.

 

11.3.2     If the Owner terminates
this Agreement after commencement of the construction, the Contractor shall be
paid the unpaid balance of the Contractor’s design costs as set forth in the
Schedule of Values plus 10% of the remaining balance of the Contract Price.

 

11.3.3     In either event set
forth in Section 11.3.1 or 11.3.2, the initial payment as provided in Section 9.1
shall be credited to the Owner’s account at the time of termination.

 

11.3.4     The Owner shall also pay
to the Contractor fair compensation, either by purchase or rental at the
election of the Owner, for any equipment retained. The Owner shall assume and
become liable for obligations, commitments and unsettled claims that the
Contractor has previously undertaken or incurred in good faith in connection
with the Work or as a result of the termination of this Agreement. As a
condition of receiving the payments provided hereunder, the Contractor shall
cooperate with the Owner by taking all steps necessary to 

 

27

 

accomplish the legal
assignment of the Contractor’s rights and benefits to the Owner, including the
execution and delivery of required papers.

 

11.4        SUSPENSION BY THE OWNER FOR CONVENIENCE.

 

11.4.1     The Owner may order the
Contractor in writing to suspend, delay or interrupt all or any part of the
Work without cause for such period of time as the Owner may determine to be
appropriate for its convenience.

 

11.4.2  Adjustments
caused by suspension, delay or interruption shall be made for increases in the
Contract Price and/or the date of Substantial Completion. No adjustment shall
be made if the Contractor is or otherwise would have been responsible for the
suspension, delay or interruption of the Work, or if another provision of this
Agreement is applied to render an equitable adjustment.

 

ARTICLE 12

DISPUTE RESOLUTION

 

12.1        INITIAL DISPUTE RESOLUTION. If a
dispute arises out of or relates to this Agreement or its breach, the parties
shall endeavor to settle the dispute first through direct discussions. If the
dispute cannot be settled through direct discussions, the parties shall
endeavor to settle the dispute by mediation under the Construction Industry
Mediation Rules of the American Arbitration Association before recourse to
arbitration. Issues to be mediated are subject to the exceptions in Section 12.2
for arbitration. The location of the mediation shall be the location of the
Project. Once one party files a request for mediation with the other party and
with the American Arbitration Association, the parties agree to conclude such
mediation within sixty (60) days of filing of the request.

 

12.2        AGREEMENT TO ARBITRATE. Any
controversy or claim arising out of or relating to this Agreement or its breach
not resolved by mediation, except for claims which have been waived by the
making or acceptance of final payment, shall be decided by arbitration in
accordance with the Construction Industry Arbitration Rules of the
American Arbitration Association then in effect unless the parties mutually
agree otherwise. Notwithstanding Section 13.2, this agreement to arbitrate
shall be governed by the Federal Arbitration Act.

 

12.3        NOTICE OF DEMAND. A
written demand for arbitration shall be filed with the American Arbitration
Association and the other party to this Agreement within a reasonable time
after the dispute or claim has arisen, but in no event after the applicable
statute of limitations for a legal or equitable proceeding would have run.

 

12.4        AWARD. The arbitration award
shall be final. Judgment upon the award may be confirmed in any court having
jurisdiction.

 

12.5        WORK CONTINUANCE AND PAYMENT. Unless
otherwise agreed in writing, the Contractor shall continue the Work and
maintain the approved schedules during any arbitration proceedings. If the
Contractor continues to perform, the Owner shall continue to make payments in
accordance with this Agreement.

 

28

 

12.6        MULTIPARTY PROCEEDING. The
parties agree that all parties necessary to resolve a claim shall be parties to
the same arbitration proceeding. Appropriate provisions shall be included in
all other contracts relating to the Work to provide for the consolidation of
arbitrations.

 

12.7        COST OF DISPUTE RESOLUTION. All costs
of any arbitration, including attorney’s fees and costs, shall be paid by the
party or parties and in such amounts, as determined by the arbitrator.

 

12.8        EQUITABLE RELIEF. Notwithstanding
anything herein contained to the contrary, any party may use the appropriate
courts to obtain emergency equitable relief.

 

ARTICLE 13

MISCELLANEOUS PROVISIONS

 

13.1        ASSIGNMENT. Neither
the Owner nor the Contractor shall assign their interest in this Agreement
without the written consent of the other except as to the assignment of
proceeds. Notwithstanding the preceding sentence, Owner can collaterally assign
the Agreement to its bona fide lender providing financing to the Project,
provided that the Owner shall remain liable for the Owner’s obligations under
this Agreement. Notwithstanding the preceding sentence, Owner may assign the
Agreement to a subsequent owner of the Project, provided that the subsequent
owner assumes all of Owner’s obligations under this Agreement, and with the
Owner remaining liable for the Owner’s obligation under the Agreement unless
otherwise released in writing by Contractor, Contractor’s release not to be
unreasonably withheld if the subsequent owner demonstrates financial
capabilities of completing the Project comparable to the financial capability
of Owner prior to such assignment.

 

13.2        GOVERNING LAW. This
Agreement shall be governed by the law in effect at the location of the
Project.

 

13.3        SEVERABILITY. The
partial or complete invalidity of any one or more provisions of this Agreement
shall not affect the validity or continuing force and effect of any other
provision.

 

13.4        NO WAIVER OF PERFORMANCE. The
failure of either party to insist, in any one or more instances, on the
performance of any of the terms, covenants or conditions of this Agreement, or
to exercise any of its rights, shall not be construed as a waiver or
relinquishment of such term, covenant, condition or right with respect to
further performance.

 

13.5        TITLES. The titles given to
the Sections of this Agreement are for ease of reference only and shall not be
relied upon or cited for any other purpose.

 

13.6        CONFIDENTIALITY. Owner
agrees that in the performance of this Agreement, Owner may receive or
otherwise learn of certain items of information that are non-public, proprietary,
or confidential to Contractor or to parties with whom Contractor has entered
into contractual relationships (herein “Confidential Information” with respect
to Contractor), to include but not be limited to this Agreement, information
concerning Contractor’s operations, processes, methods and accumulated
experience incidental to the construction and operation of 

 

29

 

biodiesel plants such as the Project,
the disclosure of which to third parties would be injurious to Contractor or to
parties with whom Contractor has entered into contractual relationships. Contractor
agrees that in the performance of this Agreement, Contractor will receive
financial information, and may otherwise learn of certain items of information
that are non-public, proprietary, or secrets of Owner or of parties with whom
Owner has entered into contractual relationships (herein “Confidential
Information” with respect to Owner), the disclosure of which to third parties
would be injurious to Owner or to parties with whom Owner has entered into
contractual relationships. Each party as recipient (the “Recipient”) agrees not
to use the Confidential Information of the other party (the “Provider”) for any
purpose other than as required to perform this Agreement. Recipient agrees to
disclose the Confidential Information of the Provider only to such directors,
officers, managers, employees, affiliates, consultants, agents, and third
parties (“Representatives”) as are required to allow Recipient to perform under
this Agreement, who are first informed of the restrictions upon use of the
Confidential Information and who agree to keep such information confidential
and who agree to be bound by the terms of these confidentiality provisions to
the same extent as if they were parties hereto. Recipient will be responsible
for any breach of these confidentiality provisions by any of its
Representatives and agrees to take all reasonable measures to restrain its
Representatives from prohibited or unauthorized disclosure or use of the
Confidential Information. Recipient agrees that the actual or threatened
disclosure of the Confidential Information would cause the Provider immediate
and irreparable harm which may not be adequately compensated by money damages. Accordingly,
in the event of a breach or anticipated breach of these confidentiality
provisions by Recipient or its Representatives, the Recipient specifically
agrees, that in addition to all other remedies available at law, the Provider
shall be entitled to equitable relief, including an injunction to limit or
prevent such actual or threatened disclosure, together with recovery of costs
of litigation from Recipient as a result of such breach or anticipated breach,
including reasonable attorney fees. These obligations of confidentiality shall
not apply to any information which:  (a) was
known to Recipient or was in the public domain prior to disclosure hereunder;
or (b) becomes known to the public from a source other than Recipient; or (c) is
disclosed to Recipient by a third party having a legal right to make such
disclosure.

 

The parties acknowledge that in order to comply with certain statutory
or regulatory requirements, and to comply with court or administrative agency
orders or other compelled disclosure, this Agreement (or portions thereof) may
need to be disclosed to the Securities Exchange Commission, state securities
bureaus, or other regulators or a court. In the event a party hereto (the “Disclosing
Party”) is required by applicable published governmental regulations or
judicial or administrative order to disclose Confidential Information
including, but not limited to, the terms of this Agreement, prior to any such
disclosure the Disclosing Party must, to the extent reasonably possible:  (i) notify the other party (the “Protected
Party”) promptly in writing of the requirement or order so that the parties may
seek a protective order or other appropriate remedy and/or the Protected Party
may waive compliance with the provisions of this Agreement; and (ii) cooperate
with the Protected Party and use its best efforts to obtain and maintain a
protective order or other appropriate remedy. In the event that such protective
order or other remedy is not obtained and, in the opinion of counsel disclosure
is legally required, the Disclosing Party will furnish, to the extent
reasonably possible, only that portion of the Confidential Information which is
legally required to be disclosed.

 

30

 

13.7                        OTHER PROVISIONS.

 

13.7.1              Contractor warrants and guarantees that
the Project will be capable of obtaining BQ-9000 accreditation.

 

13.7.2              Owner is responsible for providing all
commodities required for the start-up and/or testing of the Project.  Owner is responsible for making necessary
arrangements for the prompt removal of processed waste water from the Project.

 

13.7.3              Builders risk insurance has not been
included in this Agreement.  At Owner’s
request, builders risk insurance will be obtained and maintained by the
Contractor and the Owner agrees to promptly reimburse Contractor at Contractor’s
actual cost for the costs of such insurance, outside of this Agreement.

 

13.7.4               
Contractor shall be responsible for security during the construction of
the Project during dayshift working hours Monday through Friday, if the plant
is not running.  Owner shall be
responsible for security at the site  at
all other times.  In the event that Owner
requests Contractor provide site security during times other than dayshift
working hours Monday through Friday while the plant is not running, Owner shall
promptly reimburse Contractor for actual expenses incurred to provide security
and further provided that Owner acknowledges and agrees that such additional
security cost is not included in the cost of the Work as set forth in Article 7.

 

13.7.5              This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

ARTICLE 14

EXISTING  CONTRACT DOCUMENTS

 

The documents in
existence at the time of execution of this Agreement are as follows:

 

REG Proposal Letter
dated March 13, 2008;

 

Process Guarantee
Letter dated April 7, 2008;

 

Scope of Work and
Estimated Budget Letter dated April 25, 2008;

 

Crown Iron Works
Proposal # C08-237-R2 dated April 8, 2008; and

 

Contract Drawings:  DSK 111, 112 &113 dated April 9,
2008.

 

ARTICLE 15

OTHER CONTINGENCIES

 

This Agreement shall be
deemed terminated, with no continuing liability to either party, in the event
Owner is unable to close on its senior secured debt financing by May 12,
2008, in an amount sufficient to complete the Project.

 

31

 

All amounts paid by
Owner to Contractor prior to such termination shall be forfeited by Owner and
earned by Contractor.

 

 

	
   

  	
  BLACKHAWK BIOFUELS,
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BY:

  	
     /S/ Ronald L. Mapes

  
	
   

  	
   

  	
   

  
	
   

  	
  PRINT NAME:

  	
    Ronald L. Mapes

  
	
   

  	
   

  	
   

  
	
   

  	
  PRINT TITLE:

  	
    Chair

  
					

 

 

	
   

  	
  REG CONSTRUCTION &
  TECHNOLOGY GROUP, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BY:

  	
     /S/  Daniel J. Oh

  
	
   

  	
   

  	
   

  
	
   

  	
  PRINT NAME:

  	
    Daniel J. Oh

  
	
   

  	
   

  	
   

  
	
   

  	
  PRINT TITLE:

  	
    President

  
					

 

32

 

Addendum
A

 

“Cost” shall be defined
as including the following items for determination of cost for Work under Article 7
of the Agreement:

 

·                  Wages paid for
labor in the direct employ of the Contractor in the performance of the Work;

·                  Salaries
of Contractor’s employees, in whatever capacity employed;

·                  Cost
of all employee benefits and taxes including but not limited to worker’s
compensation, unemployment compensation, Social Security, health, dental,
welfare, retirement and other fringe benefits as required by law, labor
agreements, or paid under Contractor’s standard personnel policy, insofar as
such costs are paid to employees of the Contractor in the performance of the
Work;

·                  Reasonable
transportation, travel, hotel, and moving expenses of the Contractor’s
personnel incurred in connection with the Work. 
Reasonable travel includes per diem at rates that vary from $47.50/day
to $99.00/day based on position and travel from employees home to the jobsite
at the government’s stipulated mileage rate;

·                  Cost
of all materials, supplies and equipment purchased and incorporated in the
Work, including costs of inspection and testing (if not provided by the Owner),
transportation, storage and handling;

·                  Payments
made by the Contractor to Subcontractors for work performed under this
Agreement;

·                  Fees
and expenses for design services procured or furnished by the Contractor;

·                  Cost,
including transportation and maintenance of all materials, supplies, equipment,
temporary facilities, and hand tools not owned by the workers that are used or
consumed in the performance of the Work, less salvage value and/or residual
value, and cost less salvage value on such items used, but not consumed that remain
the property of the Contractor, with cost of “hand tools” to be paid at the
rate of 8% of the actual labor;

·                  Rental
charges of all necessary machinery and equipment, exclusive of hand tools owned
by workers, used at the worksite, whether rented from the Contractor or others,
including installation, repair and replacement, dismantling, removal,
maintenance, transportation and delivery costs, with rental from unrelated
third parties to be reimbursed at actual cost and rentals from Contractor or
its affiliates, subsidiaries or related parties shall be reimbursed at the
prevailing rates in the locality of the Project up to 85% of the value of the
piece of equipment;

·                  Cost
of the premiums for all insurance and surety bonds that the Contractor is
required to procure or deems necessary, and approved by the Owner;

·                  Sales,
use, gross receipts or other taxes, tariffs or duties related to the Work for
which Contractor is liable;

·                  Permits,
fees, licenses, tests, royalties, damages for infringement of patents and/or
copyrights, including costs of defending related suits for which the Contractor
is not responsible, and deposits lost for causes other than Contractor’s
negligence;

·                  Losses,
expenses or damages to the extent not compensated by insurance or otherwise,
and the cost of corrective work and/or redesign during construction and for one
year following the Date of Substantial Completion, provided that such
corrective work and/or redesign did not arise from Contractor’s negligence;

 

33

 

·                  All
costs associated with establishing, equipping, operating, maintaining and
demobilizing the field office;

·                  Reproduction
costs, photographs, costs of telegrams, facsimile transmissions, long distance
telephone calls, data processing services, postage, express delivery charges,
telephone service at the Project worksite and reasonable petty cash expenses at
the field office;

·                  All
water, power and fuel costs necessary for the Work;

·                  Cost
of removal of all non-hazardous substances, debris and waste materials;

·                  Costs
incurred due to an emergency affecting the safety of persons and/or property;

·                  Legal,
mediation and arbitration fees and costs, other than those arising from
disputes between the Owner and Contractor, reasonably and properly resulting
from the Contractor’s performance of the Work;

·                  All
costs directly incurred in the performance of the Work or in connection with
the Project and not included in the Contractor’s fee as set forth in Article 7,
which are reasonably inferable from the Contract Documents as necessary to
produce the intended results;

·                  Building
permits necessary for the construction of the Project;

·                  Utility
costs, including but not limited to water, gas, oil, electricity, snow removal,
weather protection, temporary toilets, protection and altering of public
utilities, protection and repairs of existing or adjoining property, rental
property for storage of materials and equipment or parking, expenses related to
advertising and hiring construction workers for this Project, costs related to
Contractor’s drug free workplace and safety policies for this Project, vehicle
allowance and mileage reimbursement, and the cost of discharge of mechanic’s
liens not otherwise recoverable; and

·                  Losses
and expenses not compensated by insurance or otherwise sustained by the
Contractor in connection with the Work provided they were not caused by the
negligence or failure to fulfill a specific responsibility of the Contractor.

 

34EXHIBIT 10.16

 

NOTE: THE APPEARANCE OF “[***]” IN
THIS EXHIBIT INDICATES MATERIAL WHICH HAS BEEN OMITTED PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE
ACT OF 1934. A COPY OF THE EXHIBIT CONTAINING THE OMITTED MATERIAL HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

Oil Feedstock Supply Agreement

 

This
Oil Feedstock Supply Agreement (this “Agreement”) is made and entered into as
of May 9, 2008 (“Effective Date”), by and between Blackhawk Biofuels, LLC,
a Delaware limited liability company (“Producer”), Renewable Energy Group, Inc.,
a Delaware corporation (“REG”) and Bunge North America, Inc., a New York
corporation (“Bunge”) (each of Producer and Bunge a “Contracting Party,” and collectively
the “Contracting Parties”).

 

A.                                   A biodiesel
plant is currently under construction by Biofuels Company of America, LLC (“BCA”)
for which BCA and Bunge have entered into that certain Oil Feedstock Supply
Agreement originally made and entered into as of September 5, 2006, and
amended and restated as of November 3, 2006.

 

B.                                     As of the
Effective Date, Producer will have purchased all of the assets of BCA and will
own the biodiesel plant (the “Facility”) located adjacent to Bunge’s existing
oil processing facility in Danville, Illinois, pursuant to that certain Asset
Purchase Agreement dated as of March 14, 2008, by and between Producer,
Bunge, BCA, REG, and Biodiesel Investment Group, LLC (the “Purchase Agreement”).

 

C.                                     The Facility will be managed and operated by REG Services
Group, LLC, an Affiliate of REG.

 

D.                                    Producer
desires to buy, and Bunge desires to sell, all soybean oil (“Oil”) feedstock
required for biodiesel production at the Facility, all in accordance with the
fees, payment, delivery, and other terms set forth in this Agreement.

 

Therefore,
the Parties agree:

 

1.                                       Exclusive
Supplier.  To the
extent contemplated by this Agreement, Bunge will have the exclusive right to
provide all Oil that Producer requires for biodiesel  production
at the Facility during the Term (as defined in Section 5.1 hereof),
including the Facility as initially constructed and any modifications or
expansions thereof.

 

1.1                                 Provision of
Standard Monthly Amounts.  In
accordance with the provisions of this Agreement, each month during the Term
(as defined in Section 5.1 hereof), Bunge has the exclusive right to
provide, and Producer the right to purchase from Bunge, all Oil that Producer
requires for biodiesel  production at
the Facility up to the Standard Monthly Amount (as defined in Section 1.3).  It is the expectation of the Contracting
Parties that the Oil to be supplied to Producer under this Agreement will be
originally processed at Bunge’s oil processing facility in Danville, Illinois,
except to the extent production at Bunge’s Danville facility is insufficient to
meet Producer’s needs.

 

 

1.2                                 Overage Amounts.  If Producer requires any Oil for biodiesel  production at the Facility in excess of the Standard
Monthly Amount for a given month, Producer may not obtain any such quantity of
Oil without first complying with the following procedures:

 

(a)                                  Producer must
notify Bunge (an “Overage Request”) with regard to a given month of the
quantity of Oil in excess of the Standard Monthly Amount that Producer wishes
to procure for such month.

 

(b)                                 Within 24 hours
after receiving an Overage Request, Bunge will notify Producer how much Oil
(the “Proposed Quantity”) Bunge is willing to supply to Producer in response to
such Overage Request.

 

(c)                                  Bunge will have
the exclusive right to provide, and Producer will have the right to purchase
from Bunge, the Proposed Quantity upon the terms set forth in a Specific Order
(as defined in Section 2.2) negotiated by the Contracting Parties.  If the Contracting Parties cannot mutually
agree upon the terms of a Specific Order for such Proposed Quantity within 24
hours after Bunge’s receipt of an Overage Request, then Producer may obtain a
quantity of oil equal in volume to the Proposed Quantity from any third party
at any price that it negotiates; provided that such third-party price may not
be equal to or higher than the last price offered by Bunge during the
negotiations between the Contracting Parties.

 

(d)                                 To the extent
that the quantity specified by Producer in a specific Overage Request exceeds
the applicable Proposed Quantity, then Producer may obtain a quantity of Oil
equal to such excess amount from any third party at any price that it
negotiates.

 

1.3                                 Standard
Monthly Amount.  The initial
“Standard Monthly Amount” will be 9,333,333 pounds of Oil.  Notwithstanding anything contained in this
Agreement to the contrary, Bunge will have no obligation to supply any Oil
pursuant to this Agreement prior to October 1, 2008, unless otherwise
agreed by the Contracting Parties.  After
March 1, 2009, the Contracting Parties will negotiate whether to make
reasonable modifications to the Standard Monthly Amount.

 

1.4                                 Alternate
Feedstock.  If Producer
elects to utilize a vegetable oil feedstock other than Oil, Producer will
provide Bunge with a fair opportunity to participate in procuring such
alternate feedstock for Producer.

 

2.                                       Order and
Delivery.

 

2.1                                 Forecasts.  At least three months prior to the beginning
of each six-month period during the Term (from January 1 to June 30,
and from July 1 to December 31), Producer will deliver to Bunge its
best, good faith estimate (each a “Forecast”) of anticipated Oil requirements
during such six-month period at the Facility. 
The purpose of the Forecasts is to provide notice to Bunge of
anticipated Oil requirements and Bunge’s actual obligation to deliver Oil to
the Facility shall be governed by the other sections of this Article 2.

 

2.2                                 Specific Orders.  After Producer proposes to purchase Oil, the
Contracting Parties will negotiate in good faith the Basis (as defined in
Schedule 4.1) and delivery date(s) for the 

 

2

 

applicable quantity of oil,
and if agreed, will enter into a purchase agreement for such Oil in the form
attached hereto as Exhibit A (a “Specific Order”), which will set forth
the mutually agreed-upon Basis and delivery date(s).  Subject to the other provisions of this
Agreement (including Section 3.1), Bunge will deliver to Producer Oil as
required by Specific Orders under this Article 2.

 

2.3                                Amounts.

 

(a)                                  Monthly
Confirmations.  At least 60
days before the first day of each month during the Term (the “Notice Date”),
Producer will deliver to Bunge a written confirmation (each a “Monthly
Confirmation”) of its Oil requirements at the Facility for such month.  By way of illustration, Producer will deliver
a Monthly Confirmation for April of a given (non-Leap) year on or before January 31
of that year, and then deliver a Monthly Confirmation for May of that year
on or before March 1 of that year. 
Each Monthly Confirmation will include (i) amounts under all
then-existing Specific Orders for such month and (ii) any additional
amounts requested by Producer for such month. 
If by the Notice Date for a month, the Contracting Parties have not
entered into one or more Specific Orders sufficient to cover such additional
amounts of Oil requested in the applicable Monthly Confirmation (i.e., not
already covered by Specific Orders), then Bunge will have no obligation to
enter into Specific Order(s) for any portion of such additional amounts of
Oil, subject to the following sentence. 
Notwithstanding the foregoing sentence, until the date that is 30 days
before the first day of the month for which delivery of Oil is being requested,
the Contracting Parties agree that they will negotiate in good faith the Basis
and delivery date(s) for, and if agreed, will enter into Specific Orders
(which will set forth the mutually agreed-upon Basis and delivery date(s)) for
up to five million additional pounds of Oil. 
In addition, Producer will give Bunge reasonable advance notice of any
circumstances that would reasonably be expected to materially affect Oil
requirements at the Facility. 
Notwithstanding anything to the contrary in this Agreement, Bunge will
have no obligation to supply Producer with any Oil in a given month in excess
of 105% of the quantity stated in the applicable Monthly Confirmation.

 

(b)                                 Production
Schedules.  If the
Contracting Parties have entered into Specific Orders within the time frames
set out under Section 2.3(a) sufficient to cover all of the Oil
requested by Producer for a month in a timely delivered Monthly Confirmation,
then Bunge will provide a quantity of Oil sufficient to permit Producer to
maintain its actual production schedule for the month as described in such
Monthly Confirmation, subject to Sections 2.3(a) and 3.1(a) hereof.  On Thursday of each week, Producer will
provide Bunge notice of Producer’s best estimate (a “Weekly Estimate”) of its
production schedule for the following production week (Monday through Sunday).

 

2.4                                 Futures Price.  The “Futures Price” for any given quantity of
Oil under this Agreement (whether or not identified in a Specific Order or
actually delivered by Bunge) will be the Chicago Board of Trade (“CBOT”)
futures price set by the Contracting Parties prior to the first business day of
the month in which such Oil will be delivered to Producer; provided that if the
Contracting Parties have not set such CBOT futures price prior to such first
business day, then the Futures Price for such quantity of Oil will be deemed to
be the closing futures price on 

 

3

 

the CBOT for the nearby
soybean oil contract on the last business day of the month just prior to the
applicable delivery month.

 

2.5                                Delivery.

 

(a)                                  Delivery and
Receiving.

 

(i)                                     Bunge will
deliver Oil sold under this Agreement to the Facility primarily via a pipeline
(the “Pipeline”) from Bunge’s existing storage Tank #10 at its oil processing
facilities in Danville; provided that Bunge may deliver Oil to the Facility via
truck if (A) the Pipeline is not operating or (B) the production of
Oil from Bunge’s oil processing facilities in Danville is insufficient to meet
Producer’s needs and Producer agrees to purchase Oil from Bunge from a source
other than Bunge’s Danville oil processing facility, subject to Section 1.2.  Producer will ensure that the Facility has
the capability to receive and unload Oil delivered via the Pipeline and/or
truck.  All labor and equipment necessary
to receive Oil will be supplied by Producer without charge to Bunge.  Producer will direct the receiving of all Oil
purchased hereunder in a good and workmanlike manner in accordance with Bunge’s
reasonable requirements and normal industry practice.  Producer will maintain (at its own expense)
its receiving facilities in accordance with applicable laws and regulations and
in safe operating condition in accordance with normal industry standards.

 

(ii)                                  Bunge will
direct the delivery of all Oil purchased hereunder in a good and workmanlike
manner in accordance with Producer’s reasonable requirements and normal
industry practice.  All labor and
equipment necessary to deliver Oil will be supplied by Bunge without charge to
Producer.

 

(iii)                               Producer shall
be responsible for the design and installation of the entire Pipeline,
including the feedstock supply pump (noted as PME-5001 on Producer’s P&ID
#450, rev.C, the “Supply Pump”) to be located near Tank #10; provided
that Bunge shall have the right to review and approve the design,
specifications, and time for installation of any portion of the Pipeline on
Bunge’s property.  Producer will maintain
(at its own expense) the Supply Pump and the entire Pipeline, including the
portions on Bunge’s property, in accordance with applicable laws and
regulations and in safe operating condition in accordance with normal industry
standards.  Bunge hereby grants Producer
and its agents and designees all necessary rights of access across Bunge’s
property in order to permit Producer to meet its obligations under this Section 2.5(a)(iii).  If Producer becomes aware of any leaks in or
from the Supply Pump or the Pipeline, Producer will immediately notify
Bunge.  If Bunge is required to deliver
Oil via truck to the Facility because the Pipeline is not operating, the costs
to provide such alternate delivery shall be borne by Producer.

 

(b)                                 Flow Meter;
Records.  With regard to Oil delivered
to the Facility via the Pipeline, Producer will determine the volume of
delivered Oil by using a flow meter attached to the Pipeline and located on
Producer’s leased property.  Producer
will install 

 

4

 

the
flow meter and maintain (at its own expense) the accuracy of the flow meter and
ensure that it is NTEP-approved and inspected and certified by the State of
Illinois.  As requested by Bunge on no
more than a quarterly basis, the Contracting Parties will engage a third-party
testing firm to test the accuracy of the flow meter and will share equally the
costs of such testing.  Producer will
maintain all flow meter records of Oil deliveries for at least one year after
their creation and provide copies of such records to Bunge upon request.  Such flow meter records will determine the
volume of Oil delivered via the Pipeline for which Producer is obligated to pay
pursuant to Article 4.  Producer
will report to Bunge the volume of any Oil delivery via the Pipeline to the
Facility at least once per day, or at such times as reasonably requested by
Bunge.

 

(c)                                  Origin Weights.  With regard to Oil delivered to the Facility
via truck, the volume of Oil delivered will be set in accordance with weights
determined at the point of origin of such Oil.

 

(d)                                 Standards.  All Oil delivered to the Facility will meet
the “Quality Standards” set forth in Exhibit B as evidenced by the
sampling and quality control procedures set forth in Exhibit B.  For Oil delivered via truck, Bunge will
provide a Certificate of Analysis for each shipment.  If Bunge delivers Oil which does not meet the
Quality Standards, Producer may reject such Oil in accordance with Exhibit B
and this Agreement.

 

(e)                                  Testing.  If Producer knows or reasonably suspects that
any Oil delivered by Bunge to the Facility does not meet the Quality Standards
(or permissible deviations therefrom), then Producer may obtain, at Producer’s
sole cost and expense, independent laboratory tests of the affected Oil at a
mutually agreed upon laboratory. 
Producer shall immediately notify Bunge of the testing of any Oil within
24 hours of its delivery to the Facility and Producer shall promptly complete
such testing.  Bunge shall have the
right, upon reasonable advance notice and at Bunge’s sole cost and expense, to
test Oil for which title has passed to Producer pursuant to Section 2.6.

 

2.6                                 Title.  Title, risk of loss, and responsibility for
the quality of Oil will pass to Producer when (a) such Oil conveyed via
the Pipeline crosses the inlet valve of the Supply Pump, or (b) such Oil
conveyed via truck is received by Producer. 
If any Oil supplied under this Agreement fails to comply with the terms
of this Agreement as a result of causes or conditions proven to have existed
prior to the time when title passed to Producer, then Producer’s exclusive
remedy and recourse will be to reject such non-compliant Oil (and provide Bunge
with written notice of such rejection) within 48 hours after the time of
delivery (or have notified Bunge of the testing of such Oil under Section 2.5(d) and
promptly complete such testing), in which case Bunge will replace such
non-compliant Oil with a like amount of compliant Oil.  In addition, Bunge shall only be obligated to
replace such non-compliant Oil to the extent that Producer has not processed
and has kept such non-compliant Oil segregated from other Oil at the Facility.  Producer will make such non-compliant Oil
available to Bunge for Bunge to remove from the Facility at Bunge’s cost.  Bunge will not be responsible for any failure
of Oil to comply with the terms of this Agreement which results from causes or
conditions arising after the time title passes to Producer.  Any failure by Producer to provide written
notice of rejection as set forth in this Section 2.6 will be deemed an
absolute and unconditional waiver of its rejection right and any 

 

5

 

claims relating to such
Oil.  At Bunge’s request, Producer will
promptly deliver to Bunge a representative sample of any rejected Oil.

 

2.7                                 Producer Use of
Oil.  Producer can use the Oil that
it purchases under this Agreement for any of its internal business purposes in
connection with biodiesel at any location that it controls, or is owned,
managed or controlled by REG or any wholly-owned subsidiary of REG (“Other REG
Locations”).  For the sake of
clarification, (a) Producer’s internal business purposes do not include
the sale of Oil to any person or entity other than to Other REG Locations, and (b) Producer
or REG are solely responsible for the performance and cost of transporting any
Oil from the Facility to any Other REG Location.  Prior to transporting any Oil from the
Facility to any Other REG Location, Producer shall notify Bunge of such plan,
to give Bunge an opportunity to supply an equal amount of soybean oil to such
Other REG Location from a different Bunge facility.  Should Bunge desire to supply an equal
quantity of soybean oil to such Other REG Location from a different Bunge
facility, Producer shall have the option of purchasing the other soybean oil
from Bunge, or transporting the Oil from the Facility.  If Producer chooses to so purchase the other
soybean oil from Bunge, such purchase of soybean oil from a different Bunge
facility shall nonetheless count towards Producer’s purchases under Section 3.2(a)(i),
thereby reducing the Unpurchased Amount for such month as computed under Section 3.2(a)(i).

 

2.8                                 Limits on Bunge
Obligation to Flat Price Oil.  Notwithstanding anything to the contrary in
this Agreement, Bunge will have no obligation to price any Oil under a proposed
Specific Order at any time prior to six months before the anticipated Effective
Date.  Further, to the extent that any
Oil proposed to be priced under any Specific Order would cause the aggregate
quantity of Oil that has been priced under all then-existing Specific Orders to
exceed the Credit Limit (as defined below), then Bunge will have no obligation
to price such excess amount Oil at any time more than five days before the
first day of the month in which such excess Oil is proposed to be
delivered.  The “Credit Limit” will be a
quantity of Oil to be set from time-to-time by Bunge; provided that Producer
will be entitled at any time to require Bunge to identify the then-applicable
Credit Limit.  Notwithstanding any other
provision in this Section 2.8, Bunge may agree to flat price in excess of
the Credit Limit if it is satisfied (in its sole discretion) with credit
enhancements or other protections proposed by Producer.

 

3.                                       Other Delivery
Provisions.

 

3.1                                 Maximum Delivery Amounts.

 

(a)                                  Except as otherwise agreed
in accordance with Section 1.2 of this Agreement, Bunge will have no
obligation to supply Producer with any quantity of Oil in excess of (i) during
any given month of a Crop Year, the then-applicable Standard Monthly Amount
(the “Maximum Monthly Amount”), or (ii) during any given Crop Year, the product
of (A) the then-applicable Standard Monthly Amount, times
(B) 12 (the “Maximum Aggregate Amount”). 
A “Crop Year” is a one-year period
beginning October 1 and ending September 30 the following year.

 

(b)                                 “Soybean Crop
Production” is equal to the product of (i) the total number of acres in
the States of Illinois and Indiana (combined)
planted with soybeans multiplied 

 

6

 

by (ii) the
bushels of soybeans yielded per acre. 
The “Soybean Crop Production Trend” for
the Crop Year beginning October 1, 2008, will be 660 million bushels,
based on an assumed yield of 46.9 bushels/acre. 
For all subsequent Crop Years during the Term, the Soybean Crop
Production Trend will be equal to the product of (X) the prior year’s
Soybean Crop Production Trend multiplied by (Y) 1
plus the percentage increase in trend
yield compared to the trend yield for the prior Crop Year, as reported by the
U.S. Department of Agriculture (“USDA”) in the Annual Base Line Report,
released at the USDA Federal Outlook Conference in February of each year.

 

(c)                                  If the
percentage ratio (the “Actual/Trend Ratio”) of (i) the actual Soybean Crop Production projection for the given Crop
Year set forth in a USDA production report during
such Crop Year to (ii) the
Soybean Crop Production Trend for such Crop Year results in an “Oil Reduction
Percentage” in accordance with Table 3.1(c), then the Monthly Maximum
Amount for all following months during such Crop Year will be reduced by a
percentage amount equal to such Oil Reduction Percentage.

 

Table 3.1(c)

 

	
  Actual/Trend Ratio

  	
   

  	
  Oil Reduction Percentage

  
	
  Greater than 90%

  	
   

  	
  Zero

  
	
  90%

  	
   

  	
  15%

  
	
  Each percentage point less than 90%

  	
   

  	
  An additional percentage point in addition to 15%

  

 

For example, if the actual Soybean Crop Production
projection total for a Crop Year is 574.2 million bushels and the Soybean
Crop Production Trend for such Crop Year was 660 million bushels, then the
Actual/Trend Ratio would be 87% and the Monthly Maximum Amount for every
following month during such Crop Year would be reduced by 18%.

 

(d)                                 If the Monthly
Maximum Amounts during a Crop Year have been reduced in accordance with Section 3.1(c),
but a subsequent USDA production report for another month during such Crop Year
indicates that the Actual/Trend Ratio is greater than 90%, then the Maximum
Monthly Amount for the following months during such Crop Year shall be restored
to the original Maximum Monthly Amount before applying any applicable Oil
Reduction Percentage.

 

3.2                                 Unpurchased
Amounts.

 

(a)                                  Notwithstanding
anything to the contrary in this Agreement, during the six-month period
beginning October 1, 2008, Producer will accept delivery of, and pay Bunge
for, at least 5.75 million pounds of Oil, and during all subsequent months
during the Term, Producer will accept delivery of, and pay Bunge for, at least
7.0 million pounds of Oil.  Producer
will pay Carrying Fees and Storage Interest on a monthly basis to Bunge on any
Unpurchased Amounts (as defined below) until such Unpurchased Amounts are reduced
to zero in accordance with Sections 3.2(b) and 3.3.

 

7

 

(i)                                     For any month
during the Term, an “Unpurchased Amount” will be determined on the last day of
such month and will be equal to the number of pounds by which the amount of Oil
which Producer is obligated to purchase pursuant to Section 3.2(a) exceeded
the amount of Oil that Producer actually purchased during such month.

 

(ii)                                  For a given
month, the “Carrying Fee” will be equal to the product of: (A) the CBOT
storage fees per pound for that month, multiplied by (B) the
aggregate of Producer’s Unpurchased Amounts.

 

(iii)                               For a given
month, the “Storage Interest” will be equal to one month’s interest at an
annual rate equal to the prime rate (as reported on the last business day of
the previous month by the Wall Street Journal) on the product of: (A) the
closing CBOT futures price for the nearby Oil contract on the last day of the
month just prior to the given month plus the
applicable Basis, multiplied by (B) the
aggregate of Producer’s Unpurchased Amounts.

 

(b)                                 If the number
of pounds of Oil purchased by Producer during a month exceeds the amount of Oil
which Producer is obligated to purchase pursuant to Section 3.2(a) for
such month, then the oldest Unpurchased Amounts for which Producer is paying
Carrying Fees and Storage Interest will be reduced by such excess number of
pounds.

 

3.3                                 Settlement
Sales of Unpurchased Amounts.

 

(a)                                  Unless earlier
reduced to zero pursuant to Section 3.2(b), Bunge may conduct a Settlement
Sale of each Unpurchased Amount upon the 12-month anniversary of the first day
of the month for which such Unpurchased Amount was generated (e.g., Bunge may
conduct a Settlement Sale on May 1, 2010, of any Unpurchased Amount
generated during the month beginning May 1, 2009).  Following the completion of such Settlement
Sale, and the payment by the applicable party of any obligations generated
thereby (as set forth in this Section 3.3), the Unpurchased Amount sold in
such Settlement Sale will be reduced to zero for purposes of Section 3.2.

 

(b)                                 Producer may
request by written notice to Bunge at least 10 days in advance, that Bunge
conduct a Settlement Sale of all or any portion of its Unpurchased Amounts that
have been determined to be outstanding as of the date of such notice.

 

(c)                                  Notwithstanding
anything to the contrary herein, if at any time the aggregate of all
Unpurchased Amounts exceeds 10 million pounds of Oil, then Bunge may conduct a
Settlement Sale of all Unpurchased Amounts of Oil in excess of such
10 million-pound limit.

 

(d)                                 In connection
with any Settlement Sale of an Unpurchased Amount (or deemed Settlement Sale
under Section 3.3(f)), Producer will pay to Bunge an “Unpurchased Amount
Fee” equal to the product of (i) the total number of pounds of Oil in the
applicable Unpurchased Amount(s), times (ii) $[***].

 

8

 

(e)                                  Bunge may
conduct a “Settlement Sale” by attempting to sell on the open market an amount
of soybean oil (deemed to be sold from its Danville plant) equal to any
specified Unpurchased Amount(s).  Subject
to Section 3.3(e), if the purchase price that Bunge receives in such sale
of oil is:

 

(i)                                     lower than the
Total Price that would have been applicable to such Unpurchased Amount under Section 4.1,
then Producer will pay to Bunge an amount equal to: the product of: (A) the
difference between the two prices, multiplied by (B) the
quantity of Oil so sold by Bunge; or

 

(ii)                                  higher than the
Total Price that would have been applicable to such Unpurchased Amount under Section 4.1,
then Bunge will pay to Producer an amount equal to: the product of (A) the
difference between the two prices, multiplied by (B) the
quantity of Oil so sold by Bunge.

 

(f)                                    If the
Contracting Parties had not entered into Specific Order(s) for any or all
Unpurchased Amount(s), then on the date that such a Settlement Sale would
otherwise have occurred for such Unpurchased Amount(s) under this
Agreement, (i) Bunge will be deemed to have conducted such a Settlement
Sale, and (ii) Producer will pay the appropriate Unpurchased Amount Fee to
Bunge.

 

(g)                                 Producer shall
pay Carrying Fees and Storage Interest on any Unpurchased Amounts for any time
period prior to the shipment of any amount of Oil sold pursuant to a Settlement
Sale.

 

3.4                                 Scheduled
Facility Shutdown.  The
Facility and Bunge’s Oil processing facility are each subject to periodic
shut-down periods for the purpose of performing maintenance.  Each of the Contracting Parties agree to
provide reasonable notice to the other of any scheduled shut-down periods and
to reasonably cooperate in coordinating a mutually agreeable shut-down period
for both facilities.

 

4.                                       Price and
Payment.

 

4.1                                 Price.  For all Oil delivered to the Facility,
Producer will pay Bunge a price per pound (the “Total Price”) equal to the
total of: (a) the Futures Price set by the Contracting Parties, plus (b) the Basis (as defined in Schedule 4.1)
set forth in the applicable Specific Order for such Oil.

 

4.2                                 Transaction
Fees.  For every 12-month period
during the Term commencing on the Effective Date, Producer will pay Bunge a “Transaction
Fee” equal to the product of (a) the total number of pounds of Oil
delivered to the Facility during the applicable 12-month period which complied
with the Quality Standards, times (b) $[***]; provided that if Bunge delivers less than
112 million pounds of Oil to Producer within the applicable 12-month
period due to Producer’s (i) breach of this Agreement or (ii) failure
to order or accept a total of 112 million pounds of Oil (as reduced by the
total amount of Oil delivered by Bunge during such 12-month period that was
properly rejected by Producer for failure to comply with the Quality
Standards), then the Transaction Fee for such 12-month period will be $[***].

 

9

 

4.3                                 Payments.

 

(a)                                  Producer will
pay Bunge in advance each Monday the Total Price for all Oil to be delivered
under the applicable Weekly Estimate that covers the seven-day period beginning
on such Monday.  For any Oil not covered
by Specific Orders or a Weekly Estimate, Producer will pay Bunge in advance the
Total Price for such Oil before Bunge delivers such Oil.  Bunge agrees to review the payment terms on
or before April 1, 2009.  To the
extent Bunge determines, in its sole discretion, that market conditions and
Producer’s credit justify a change in such payment terms, then Bunge may notify
Producer that Bunge will deliver an invoice to Producer every Tuesday by 12:00 p.m.
Central Time during the Term (or the next business day if a Tuesday falls on a
national holiday) that bills Producer for the Total Price determined pursuant
to Section 4.1 for all Oil delivered to the Facility during the seven-day
period ending at 11:59 p.m. on the Friday four days before the applicable
Tuesday.  If Bunge has made such a
determination, then Producer would be permitted to pay each such invoice by
12:00 p.m. Central Time on the day after Bunge delivers such invoice

 

(b)                                 Within 10 days
after the end of any month with regard to which Producer is obligated to pay
Carrying Fees and/or Storage Interest, Producer will pay to Bunge all such
Carrying Fees and/or Storage Interest.

 

(c)                                  Within 10 days
after Bunge conducts a Settlement Sale (or is deemed to have conducted such a
Settlement Sale), the applicable Contracting Party will pay to the other
Contracting Party any sums required to be paid under Section 3.3(d), (e),
or (f).

 

(d)                                 Within 10 days
after the end of each 12-month period contemplated by Section 4.2,
Producer will pay to Bunge the Transaction Fee applicable to such period.

 

(e)                                  Interest will
accrue on amounts past due at a rate per annum equal
to the lesser of (a) the prime rate (as reported on the last business day
of the previous month by the Wall Street Journal) plus
2%, and (b) the highest rate permitted by law.  All amounts due to Bunge under this Agreement
will be paid by wire transfer without setoff, counterclaim or deduction.

 

4.4                                 Tax.  For purposes of personal property taxation
and/or assessment or other similar taxation, if any, any tax assessed on Oil
received, handled, delivered, stored or loaded by Bunge for the account and
benefit of Producer will be the responsibility of Producer, and at no time will
Bunge be responsible for the payment of any such tax.

 

4.5                                 REG Preferred
Stock.  In addition to the price and
payment set forth in this Section 4, REG shall issue and cause to be
delivered by Producer to Bunge, and Producer shall deliver to Bunge upon the
Effective Date, One Hundred Twenty Seven Thousand, Two Hundred Seventy-Three
(127,273) shares of REG’s Series B Preferred Stock, which shares shall be
subject to (i) the same representations, warranties, limitations and
restrictions as contained in Sections 2.20, 2.21, 2.22, 2.23, 2.24, 2.25 and
5.10 of the Purchase Agreement and (ii) the Amended and Restated
Stockholder Agreement dated July 18, 2007. 
Bunge agrees to execute all 

 

10

 

documents as may be
reasonably requested by REG related to the issuance of REG’s Series B
Preferred Stock to Bunge.

 

5.                                       Term and
Termination.

 

5.1                                 Term.  The “Term” of this Agreement will begin upon
the Effective Date and, unless earlier terminated in accordance with the terms
hereof, will expire upon the sixth anniversary of the Effective Date; provided
that Producer may renew this Agreement for an additional two-year period by
giving a written renewal notice to Bunge and REG no later than 12 months prior
to expiration of the initial terms.

 

5.2                                 Termination
Rights.

 

(a)                                  Either
Contracting Party may terminate this Agreement immediately upon notice to the
other Contracting Party if such other Contracting Party has (i) materially
breached any representation, warranty, or obligation under this Agreement, and (ii) failed
to remedy such breach within thirty (30) days after the terminating Party has
given notice of such breach, or if such breach cannot reasonably be cured
within such 30-day period, such other Party has failed to commence and
diligently pursue remedy of the breach and failed to remedy such breach not
later than 120 days after the terminating Party has given notice of such
breach.

 

(b)                                 Bunge may
terminate this Agreement immediately upon notice to Producer if Producer fails
to pay any amount due under this Agreement within ten (10) days after
Bunge gives Producer written notice of such nonpayment.

 

(c)                                  Either
Contracting Party may terminate this Agreement immediately upon notice to the
other Contracting Party if (i) such other Contracting Party files a
petition for adjudication as a bankrupt, for reorganization or for an
arrangement under any bankruptcy or insolvency law, (ii) an involuntary
petition under such law is filed against such other Contracting Party and is
not dismissed, vacated or stayed within sixty (60) days thereafter, (iii) such
other Contracting Party makes an assignment of all or substantially all of its
assets for the benefit of creditors.

 

(d)                                 Bunge may
terminate this Agreement immediately upon notice to Producer if there is a
Change of Control of Producer.  A “Change
of Control” occurs upon any of: (i) a sale of all or substantially all of
the assets of Producer; (ii) a merger or consolidation involving Producer,
excluding a merger or consolidation after which 50% or more of the outstanding
voting equity interests of Producer continue to be held by the same holders
that held 50% of more of the outstanding voting equity interests of Producer
immediately before such merger or consolidation; or (iii) any issuance
and/or acquisition of voting equity interests of Producer that results in a
person or entity holding 50% or more of the outstanding voting equity interests
of Producer, excluding any underwriter in any firmly underwritten offering and
excluding any persons or entities that collectively held 50% of more of the outstanding
voting equity interests of Producer immediately before such issuance or
acquisition.  Notwithstanding the
foregoing, a Change of Control will be deemed not to have occurred if (A) there
has been a sale of all or substantially all 

 

11

 

of
the assets of Producer to REG or any of its Affiliates, a merger or
consolidation of Producer into REG or any of its Affiliates, or an issuance
and/or acquisition of voting equity interests of Producer that results in REG
or any of its Affiliates holding 50% or more of the outstanding voting equity
interests of Producer, and (B) Bunge has agreed in writing, in its
reasonable discretion, that REG has guaranteed all of Producer’s obligations
under this Agreement and that such guarantee is sufficient to ensure payment of
such obligations.

 

(e)                                  Either
Contracting Party may terminate this Agreement in accordance with Section 9.3
hereof.

 

(f)                                    Bunge may
terminate this Agreement immediately upon the dissolution of Producer, unless (A) Producer’s
assets are acquired by REG or any of its Affiliates which assumes the
performance of this Agreement, and (B) Bunge has agreed in writing, in its
reasonable discretion, that REG has guaranteed all of Producer’s obligations
under this Agreement and that such guarantee is sufficient to ensure payment of
such obligations.

 

5.3                                 Survival.  The provisions of this Agreement which
expressly or by their nature survive expiration or termination of this
Agreement, including, but not limited to, Sections 4.3, 5.3, 7, 8, 9, 13 and
14, will remain in effect after the expiration or termination of this
Agreement.

 

6.                                       Disclaimer of
Warranties.  EXCEPT AS
EXPRESSLY PROVIDED IN THIS SECTION AND THE AGREEMENT, BUNGE MAKES NO
STATUTORY, WRITTEN, ORAL, EXPRESSED OR IMPLIED WARRANTIES, REPRESENTATIONS OR
GUARANTEES OF ANY KIND CONCERNING THE OIL SOLD UNDER THIS AGREEMENT, OR ITS
QUALITY, SOURCE, OR CHARACTERISTICS, INCLUDING WITHOUT LIMITATION ANY WARRANTY
OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE.  NOTWITHSTANDING, BUNGE WARRANTS THAT AT THE
TIME TITLE TO OIL PASSES TO PRODUCER:

 

(a)                                  BUNGE WILL HAVE
DEFENSIBLE TITLE TO SUCH OIL; AND

 

(b)                                 BUNGE WILL HAVE
THE RIGHT TO SELL SUCH OIL FREE OF LIENS, ENCUMBERANCES AND ADVERSE CLAIMS OF
ANY KIND.

 

7.                                       Limitation of
Liability.  In no event will either
Contracting Party (or any of its officers, directors, employees, agents or
Affiliates) be liable to the other Party for any special, incidental or
consequential damages arising out of or related to this Agreement (including,
but not limited to, damages for lost profits or income).  For purposes of this Agreement: (a) the
term “Affiliate” means a Person that directly, or indirectly through one or
more intermediaries, controls or is controlled by, or is under common control
with, the party specified, with “control”
or  “controlled” meaning the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting securities or voting interests,
by contract or otherwise;
and (b) the term “Person” shall mean any individual, general
partnership, limited partnership, limited liability company, joint venture,
trust, business trust, cooperative, association or other entity of whatever
nature.

 

12

 

8.                                       Remedies.

 

8.1                                 Bunge’s
Remedies.

 

(a)                                  Bunge may
immediately suspend its performance under this Agreement until Producer has
paid all amounts due under this Agreement if Producer fails to pay any amount
upon the date when such amount is due under this Agreement.

 

(b)                                 Bunge may
specifically enforce Producer’s obligation to purchase exclusively from Bunge
any Oil needed to operate the Facility as provided in this Agreement.

 

(c)                                  No right, power
or remedy conferred by this Agreement will be exclusive of any other right,
power or remedy now or hereafter available to Bunge at law, in equity, by
statute or otherwise.

 

8.2                                 Producer’s
Remedies.  If Bunge
does not deliver to Producer the quantities of Oil required of Bunge under this
Agreement, Producer may obtain substitute quantities of Oil from other
sources.  PRODUCER’S EXCLUSIVE REMEDY,
WHETHER IN TORT, CONTRACT, OR OTHERWISE WITH RESPECT TO THE FAILURE BY BUNGE TO
DELIVER OIL IN THE QUANTITIES REQUIRED BY THIS AGREEMENT WILL BE FOR BUNGE TO
REIMBURSE PRODUCER FOR ITS REASONABLE COSTS TO COVER BY OBTAINING SUBSTITUTE
QUANTITIES OF OIL.  EXCEPT AS EXPRESSLY
PROVIDED IN THIS SECTION 8.2, BUNGE WILL NOT BE LIABLE FOR ANY DAMAGES OR
COSTS ASSOCIATED WITH THE FAILURE OF PRODUCER TO OBTAIN SUCH REPLACEMENT OIL.

 

9.                                       Force Majeure.

 

9.1                                 Definition of
Force Majeure Event.  Each of the
Contracting Parties is excused from performing its obligations under this
Agreement to the extent that such performance is prevented by an act or event
(a “Force Majeure Event”) whether or not foreseen, that: (i) is beyond the
reasonable control of, and is not due to the fault or negligence of, such
Contracting Party, and (ii) could not
have been avoided by such Contracting Party’s
exercise of due diligence, including, but not limited to, a labor controversy,
strike, lockout, boycott, transportation stoppage, action of a court or public
authority, fire, flood, earthquake, storm, war, civil strife, terrorist action,
epidemic, or act of God; provided that a Force Majeure Event will not include
economic hardship, changes in market conditions, or insufficiency of
funds.  Notwithstanding the foregoing
sentence, a Force Majeure Event does not excuse any obligation to make any
payment required by this Agreement (including but not limited to Section 3.2)
and will not affect Bunge’s right to terminate this Agreement pursuant to Section 5.2(b)(ii).  For the purpose of clarification and not for
purposes of limitation, an act or event which occurs at Bunge’s existing
oil processing facility in Danville, Illinois that prevents Bunge’s performance
under this Agreement through use of such processing facility shall be
considered a Force Majeure Event under this Agreement.

 

9.2                                 Conditions Regarding Force Majeure Event.  A Contracting Party claiming a Force Majeure Event must: (i) use
commercially reasonable efforts to cure, mitigate, or remedy the effects of its
nonperformance; provided that neither Contracting Party will have any obligation hereunder to settle
a strike or labor dispute; (ii) bear the burden of demonstrating its
existence; and 

 

13

 

(iii) notify
the other Contracting Party of the occurrence
of the Force Majeure Event as quickly as reasonably possible, but no later than
five business days after learning of the occurrence of the Force Majeure
Event.  Any Contracting Party that fails to notify the other Contracting
Party of the occurrence of a Force Majeure
Event as required by this Section 9.2 will forfeit its right to excuse
performance of its obligations due to such Force Majeure Event.  When a Contracting Party claiming a Force Majeure Event is able to
resume performance of its obligations under this Agreement, it will immediately
give the other Contracting Party
notice to that effect and resume performance. 
For the purpose of clarification and not for purposes of limitation, if
a Force Majeure Event occurs which impedes Bunge’s ability to provide
quantities of Oil in accordance with this Agreement (which, for purposes of
clarification and not for purposes of limitation, shall include a Force Majeure
Event occurring at Bunge’s existing oil processing facility in Danville,
Illinois that prevents Bunge’s performance under this Agreement through
use of such processing facility), Bunge
shall reasonably cooperate with Producer to obtain substitute quantities of Oil
from other sources during the period Bunge is excused from performance
as a result of such event, but Bunge’s obligation pursuant to this Section 9.2
to cure, mitigate or remedy the effects of its nonperformance shall not include
an obligation for Bunge to identify, contract for or otherwise act on Producer’s
behalf in obtaining substitute quantities of Oil from other sources and Bunge
shall not be obligated to pay any additional costs for procuring substitute Oil
pursuant to Section 8.2 or otherwise; provided, however, that Bunge may
offer to Producer and Producer may purchase from Bunge, in each Contracting
Party’s discretion, substitute Oil from other sources at a price which will
include any additional delivery or other costs. During the time that Bunge’s
performance is suspended under this Agreement as a result of a Force Majeure
Event, Producer’s obligations to purchase minimum quantities of Oil as set
forth in this Agreement shall be suspended.

 

9.3                                 Third Parties;
Termination.  During any
period that a Contracting Party claiming a Force Majeure Event is excused from
performance under this Agreement, the other Contracting Party may accept
performance from other parties as it may reasonably determine under the
circumstances.  If a Contracting Party
has not performed under this Agreement due to a Force Majeure Event for four
consecutive months or more, the other Contracting Party may terminate this
Agreement immediately upon notice to the non-performing Contracting Party.

 

10.                                 Insurance.

 

10.1                           Workers’
Compensation.  Each of the
Contracting Parties warrants to the other that all of its employees that
provide services under this Agreement will be covered as required by law for
workers’ compensation and employer’s liability insurance.

 

10.2                           Other Required
Coverage.

 

(a)                                  Each of the
Contracting Parties will maintain automobile liability insurance against claims
for bodily injury, death and property damage, with limits of not less than
$1,000,000 per person and not less than $1,000,000 per accident or occurrence;
alternatively, combined single limits of not less than $1,000,000.  Such insurance will name the other
Contracting Party, its parents, subsidiaries and Affiliates as additional
insureds thereunder.

 

14

 

(b)                                 Each of the
Contracting Parties will maintain commercial general liability insurance
(including, without limitation, coverage for Contractual Liability and
Products/Completed Operations) against claims for bodily injury, death and
property damage, with limits of not less than $10,000,000 in one accident or
occurrence; alternatively, combined single limits of not less than $10,000,000
each accident or occurrence, $10,000,000 Products/Completed Operations
aggregate and $10,000,000 general aggregate. 
The foregoing insurance maintained by Producer will name Bunge, its
parents, subsidiaries and Affiliates as additional insureds thereunder.  The foregoing insurance maintained by Bunge
will name Producer, its parents, subsidiaries and Affiliates as additional
insureds under Bunge’s broad form vendors endorsement to Bunge’s general
liability policy.

 

(c)                                  Producer shall secure, pay for and maintain Pollution Legal Liability
insurance covering losses caused by pollution conditions that arise from the
operations of Producer.  This insurance
shall provide coverage for bodily injury, including death; loss or damage to
property, including loss of use of damaged property or of property that has not
been physically injured; cleanup costs; and costs and expenses incurred in the
investigation, defense, or settlement of claims.  This coverage shall be maintained in force
for the Term of this Agreement with available limits of not less than
$5,000,000.00 per occurrence.  Bunge, its
parents, subsidiaries, and Affiliates shall be named as an additional insured
and such coverage shall not require the exhaustion of any other coverage.

 

(d)                                 The minimum
limits of coverage required by this Agreement may be satisfied by a combination
of primary and excess or umbrella insurance policies; provided that any such
excess or umbrella insurance policies follow the form of the primary insurances
and contain a drop down provision in case of exhaustion of underlying limits
and/or aggregates.  Policies provided
hereunder shall provide for thirty (30) days prior written notice of any
cancellation or material change.

 

10.3                           Policy
Requirements.  All
insurance policies required by this Agreement will (a) provide coverage on
an “occurrence” basis (other than Pollution
Legal Liability insurance which shall be on a claims made basis); (b) provide
that no cancellation, non-renewal or material change will be effected without
giving the other Contracting Party at least ten days’ prior written notice; and
(c) be valid and enforceable policies issued by insurers of recognized
responsibility, properly licensed in the State where the Facility is located,
with an A.M. Best’s Rating of A- or better and Class VII or
better.  Such insurance policies will not
contain a cross-liability exclusion or an exclusion for punitive or exemplary
damages where insurable under law.  Prior
to the Effective Date and, thereafter, within five business days of renewal,
certificates and endorsements of such insurance will be delivered to the other
Contracting Party, as appropriate, as evidence of the specified insurance
coverage.  From time to time, upon a
Contracting Party’s request, the other Contracting Party will provide the
requesting Contracting Party, within five business days, a certificate of
insurance evidencing the required coverage to be maintained hereunder.

 

11.                                 Relationship of
Parties.  This Agreement creates no
relationship other than those of seller and buyer between the Contracting
Parties hereto.  Specifically, there is
no agency, partnership, 

 

15

 

joint venture or other joint or mutual enterprise or undertaking
created hereby and no Contracting Party, or any of such Contracting Party’s
representatives, agents or employees, will be deemed to be the representative,
agent or employee of the other Contracting Party.  No Contracting Party will have authority to
act on behalf of or bind any other Contracting Party, except as otherwise
specifically agreed.  In addition, there
is no agency, partnership, joint venture or other joint or mutual enterprise or
undertaking created hereby between Bunge and REG, and none of Bunge, or any of
its representatives, agents or employees, will be deemed to be the
representative, agent or employee of REG. REG will not have authority to act on
behalf of or bind Bunge in any way.

 

12.                               Confidentiality.

 

12.1                           Definition of
Confidential Information.  The term “Confidential
Information” means all material or information relating to a Contracting Party’s
business operations and affairs (including trade secrets) that such Contracting
Party treats as confidential.  Without
limiting the generality of the foregoing, all information regarding quantities
of Oil requested, supplied, or capable of being supplied and any pricing matter
under this Agreement will be deemed to be Confidential Information of the
appropriate Contracting Party.

 

12.2                           Use of Confidential
Information.  During the Term and for
three years thereafter, no Contracting Party will (a) use any Confidential
Information of the other Contracting Party for any purpose other than in
accordance with this Agreement or for its and its Affiliates’ internal business
purposes, or (b) disclose Confidential Information to any person, except
to its personnel (and its Affiliates’ personnel) who are subject to
nondisclosure obligations comparable in scope to this Section 12 and who
have a need to know such Confidential Information in order to perform under
this Agreement.  Notwithstanding the
foregoing, the Contracting Parties acknowledge that Bunge and its Affiliates
may perform services for other third parties similar to the services provided
to Producer hereunder and that the disclosure or use by Bunge or its Affiliates
of Confidential Information in the course of the provision of such services or
for Bunge’s and its Affiliates’ own internal business purposes shall not be
considered a violation of this Section 12.

 

12.3                           Disclosure of
Confidential Information. 
Notwithstanding Section 12.2, any Contracting Party may use for any
purpose or disclose any material or information that it can demonstrate (i) is
or becomes publicly known through no act or fault of such Contracting Party; (ii) is
developed independently by such Contracting Party without reference to the
other Contracting Party’s Confidential Information; (iii) is known by such
Contracting Party when disclosed by the other Contracting Party, and such
Contracting Party does not then have a duty to maintain its confidentiality; or
(iv) is rightfully obtained by such Contracting Party from a third party
not obligated to preserve its confidentiality who did not receive the material
or information directly or indirectly from the other Contracting Party.  A Contracting Party also may disclose another
Contracting Party’s Confidential Information to the extent required by a court
or other governmental authority (and including necessary disclosures pursuant
to requirements of the Securities Exchange Commission (“SEC”) or state
securities bureaus), provided that the disclosing Contracting Party (a) gives
the other Contracting Party advance written notice of the disclosure, (b) uses
reasonable efforts to resist disclosing the Confidential Information, (c) cooperates
with the other Contracting Party on request to obtain a protective order or
otherwise limit the disclosure (including the redaction of information relating
to Bunge and/or 

 

16

 

this Agreement requested by Bunge and
determined not to be required for disclosure), and (d) as soon as
reasonably possible, provides a letter from its counsel confirming that such
Confidential Information is, in fact, required to be disclosed.

 

12.4                           Injunctive Relief.  Each Contracting Party acknowledges and
agrees that its breach or threatened breach of any provision of this Section 12
would cause the other Contracting Party irreparable injury for which it would
not have an adequate remedy at law.  In
the event of a breach or threatened breach, the non-breaching Contracting Party
will be entitled to injunctive relief in addition to all other remedies it may
have at law or in equity.

 

13.                               Governing Law;
Disputes.

 

13.1                           Governing Law.  This
Agreement shall be governed by and construed in accordance with the laws of the
State of Missouri, excluding any applicable conflicts-of-law rule or
principle that might refer the construction or interpretation of this Agreement
to the laws of another state.

 

13.2                           Notice of Dispute.  If any dispute shall arise under or in
connection with this Agreement, the Contracting Parties hereto agree to follow
the procedures set forth in this Section 13 in an effort to resolve the
dispute prior to the commencement of any formal proceedings; provided, however, that either Contracting Party may
institute judicial proceedings seeking equitable relief or remedies without
following the procedures set forth herein. 
The Contracting Parties shall attempt in good faith to resolve any
dispute arising out of or relating to this Agreement, the breach, termination,
or validity hereof, or the transactions contemplated herein promptly by
negotiation between representatives who have authority to settle the
controversy.  Either Contracting Party
may give the other Contracting Party written notice that a dispute exists (a “Notice
of Dispute”) setting forth a statement of such Party’s position.  Within twenty (20) business days of the
delivery of the Notice of Dispute, representatives of the Contracting Parties
shall meet at a mutually acceptable time and place, and thereafter as long as
they both reasonably deem necessary, to exchange relevant information and attempt
to resolve the dispute.  If the matter
has not been resolved within thirty (30) days of the disputing Contracting
Party’s delivering its Notice of Dispute, the dispute shall be referred to the
respective presidents, general managers or comparable senior executives of the
Contracting Parties who shall within twenty (20) additional days meet to
attempt in good faith to resolve the dispute.

 

13.3                           Mediation.  If the matter still has not been resolved
within sixty (60) days of the delivery of the Notice of Dispute, then either
Contracting Party may seek to resolve the dispute through mediation
administered by the Commercial Mediation Rules of the American Arbitration
Association.  If the Contracting Parties
fail to resolve the dispute within twenty-one (21) days after starting
mediation, then either Contracting Party may initiate appropriate proceedings
to obtain a judicial resolution of the dispute.

 

13.4                           Negotiations;
Jurisdictional Matters.  If a
representative of any Contracting Party intends to be accompanied at a meeting
by an attorney, the other negotiator shall be given at least three (3) business
days’ notice of such intention and may also be accompanied by an attorney.  All negotiations pursuant to this clause are
confidential and shall be treated as compromise and settlement negotiations for
purposes of the Federal Rules of Evidence and similar state rules of 

 

17

 

evidence. 
Any proceeding initiated by either Contracting Party hereto shall be
commenced and prosecuted in the United States District Courts for the Eastern
District of Missouri or the state courts in St. Louis County, Missouri, and any
courts to which an appeal may be taken, and each Contracting Party hereby
consents to and submits to the personal jurisdiction of each of such courts.

 

13.5                           Waiver of Jury Trial.  EACH CONTRACTING PARTY IRREVOCABLY WAIVES ANY
AND ALL RIGHTS TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

14.                               Notices.  All notices required or permitted under this
Agreement will be in writing and will be deemed given and made: (i) if by
personal delivery, on the date of such delivery, (ii) if by facsimile, on
the date sent (as evidenced by confirmation of transmission by the transmitting
equipment), (iii) if by nationally recognized overnight courier, on the
next business day following deposit, and (iv) if by certified mail, return
receipt requested, postage prepaid, on the third business day following such
mailing; in each case addressed to the address or facsimile number shown below
for such Contracting Party or REG, or such other address or facsimile number as
such Contracting Party or REG may give to the other Contracting Party or REG by
notice:

 

	
  In the case
  of Bunge:

  	
   

  	
  Bunge North
  America, Inc.

  
	
   

  	
   

  	
  11720 Borman Drive

  
	
   

  	
   

  	
  St. Louis, MO 63146

  
	
   

  	
   

  	
  Attn: Senior Vice President - Oils

  
	
   

  	
   

  	
  Facsimile: (314) 292-2146

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Bunge North America, Inc.

  
	
   

  	
   

  	
  11720 Borman Drive

  
	
   

  	
   

  	
  St. Louis, MO 63146

  
	
   

  	
   

  	
  Attn: General Counsel

  
	
   

  	
   

  	
  Facsimile: (314) 292-2521

  
	
   

  	
   

  	
   

  
	
  In the case
  of Producer:

  	
   

  	
  Blackhawk
  Biofuels, LLC

  
	
   

  	
   

  	
  22 Chicago Avenue

  
	
   

  	
   

  	
  Freeport, IL 61032-4230

  
	
   

  	
   

  	
  Attn: Ron Meyers

  
	
   

  	
   

  	
  Facsimile:
  (815) 235-4727

  
	
   

  	
   

  	
   

  
	
  With a copy
  to:

  	
   

  	
  Lindquist &
  Vennum, PLLP

  
	
   

  	
   

  	
  4200 IDS
  Center

  
	
   

  	
   

  	
  80 South
  Eighth Street

  
	
   

  	
   

  	
  Minneapolis,
  MN 55402-2274

  
	
   

  	
   

  	
  Attn: Dean R. Edstrom, Esq.

  
	
   

  	
   

  	
  Facsimile:
  (612)-371-3207

  

 

18

 

	
  In the case of REG:

  	
   

  	
  Renewable Energy Group, Inc.

  
	
   

  	
   

  	
  416 S Bell Avenue, PO Box 888

  
	
   

  	
   

  	
  Ames, IA 50010-0888

  
	
   

  	
   

  	
  Attn: Nile Ramsbottom

  
	
   

  	
   

  	
  Facsimile: 515-239-8019

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Wilcox, Polking, Gerken, Schwarzkopf & Copeland, P.C.

  
	
   

  	
   

  	
  115 E. Lincolnway, Suite 200

  
	
   

  	
   

  	
  Jefferson, IA 50129

  
	
   

  	
   

  	
  Attn: John Gerken

  
	
   

  	
   

  	
  Facsimile: 515-386-8531

  

 

15.                               Entire Agreement;
No Third Party Beneficiaries.  This
Agreement constitutes the entire agreement between the Parties with respect to
the subject matter hereof and supersedes all prior agreements and
understandings, both written and oral, between the Contracting Parties with
respect to the subject matter hereof. 
Subject to Section 16, this Agreement does not, and is not intended
to, confer any rights or remedies upon any person other than the Contracting
Parties.

 

16.                               Amendments; Waiver.  The Contracting Parties and REG
may amend this Agreement only by a written agreement of the Contracting Parties and
REG.  In the event of a conflict between
the terms of this Agreement and the terms contained in a Specific Order, the
terms of this Agreement shall control. 
No provision of this Agreement may be waived, except as expressly
provided herein or pursuant to a writing signed by the Contracting Party against
whom the waiver is sought to be enforced. 
No failure or delay in exercising any right or remedy or requiring the
satisfaction of any condition under this Agreement, and no “course of
dealing” between the Contracting Parties, operates as a waiver or estoppel of
any right, remedy or condition.  A waiver
made in writing on one occasion is effective only in that instance and only for
the purpose that it is given and is not to be construed as a waiver on any
future occasion or against any other person.

 

17.                               Assignment.

 

17.1                           No Assignment.  No Contracting Party may assign this
Agreement, or assign or delegate any of its rights, interests, or obligations
under this Agreement, voluntarily or involuntarily, whether by merger,
consolidation, dissolution, operation of law, or any other manner, without the
prior written consent of the other Contracting Party, and any purported
assignment or delegation without such consent will be void.

 

17.2                           Permitted Assignments
Without Consent.  Notwithstanding Section 17.1,
(a) Bunge may assign this Agreement, or assign or delegate any of its
rights, interests, or obligations under this Agreement, to any of its
Affiliates without Producer’s prior written consent; (b) Producer may
assign this Agreement, or assign or delegate any of its rights, interests, or
obligations under this Agreement, to REG or any of REG’s Affiliates without
Bunge’s prior written consent, but only to the extent that Bunge has agreed in
writing, in its reasonable discretion, that REG has guaranteed all of Producer’s
obligations under this Agreement and that such guarantee is sufficient to
ensure payment of such obligations, and only if such assignment has been
consented to by Fifth Third Bank; and (c) Producer may assign this
Agreement, or 

 

19

 

assign or delegate any of its rights, interests, or obligations under
this Agreement, to Fifth Third Bank pursuant to that certain Assignment of Oil
Feedstock Supply Agreement between Producer and Fifth Third Bank, dated as of
even date herewith, to the extent that (i) such assignment is required by
that certain Loan Agreement between Producer and Fifth Third Bank, dated as of
even date herewith, and (ii) such assignment is permitted by that certain
Oil Supply Cure Rights Agreement between Bunge and Fifth Third Bank, dated as
of even date herewith.  Producer may only
effect an assignment to Fifth Third Bank as contemplated by this Section 17
to the extent that Producer delivers to Bunge, at least ten (10) days
prior to any such assignment, (A) a written notice of such assignment and (B) a
copy of the instrument of assignment in form and substance reasonably
acceptable to Bunge, which approval will not be unreasonably withheld,
conditioned or delayed.

 

17.3                           Permitted Assignment by
Fifth Third Bank.  To the extent that
Fifth Third Bank becomes an assignee of this Agreement in accordance with this Section 17,
Fifth Third Bank may assign its interest in this Agreement to any third party
that has acquired all of Producer’s interest in that certain Ground Lease
Agreement between Bunge Milling, Inc. and Producer, dated as of even date
herewith, provided that such assignment is made in accordance with (a) the
terms of that certain Landlord and Mortgagee Agreement between Bunge Milling, Inc.
and Producer, dated as of even date herewith, and (b) the Oil Supply Cure
Rights Agreement described in Section 17.2.

 

17.4                           Successors and Assigns.  Subject to Sections 17.1, 17.2, and
17.3, this Agreement binds and benefits the Contracting Parties and their
respective permitted successors and assigns. 
Notwithstanding anything to the contrary, REG may not assign any of its
rights or obligations under this Agreement.

 

18.                               Severability.  If a court or arbitrator with proper
jurisdiction determines that any provision of this Agreement is illegal,
invalid, or unenforceable, the remaining provisions of this Agreement remain in
full force.  The Contracting Parties will
negotiate in good faith to replace such illegal, invalid, or unenforceable
provision with a legal, valid, and enforceable provision that carries out the
Contracting Parties’ intentions to the greatest lawful extent under this
Agreement.

 

19.                               Interpretation.  Each Contracting Party has been represented
by counsel during the negotiation of this Agreement and agrees that any
ambiguity in this Agreement will not be construed against one of the Contracting
Parties.

 

20.                               Further Assurances.  Each Contracting Party (and REG, if
applicable) will execute and cause to be delivered to the other Contracting
Party (and
REG, if applicable) such instruments and other documents, and will take such
other actions, as the other Contracting Party (and REG, if applicable) may reasonably
request for the purpose of carrying out or evidencing any of the transactions
contemplated by this Agreement.

 

21.                               Counterparts.  This Agreement may be executed by the
Contracting Parties and REG by facsimile and in separate counterparts, each of
which when so executed will be deemed to be an original and all of which
together will constitute one and the same agreement.

 

20

 

[Signature page follows]

 

21

 

IN WITNESS WHEREOF, the Contracting Parties and REG have caused this
Agreement to be executed the day and year first above written.

 

 

	
  BUNGE
  NORTH AMERICA, INC.

  	
   

  	
  BLACKHAWK BIOFUELS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /S/   Eric Hakmiller

  	
   

  	
  By:

  	
   

  	
  /S/   Ronald L. Mapes

  
	
  Name:

  	
   

  	
  Eric Hakmiller

  	
   

  	
   

  	
  Ronald L. Mapes, Chair

  
	
  Title:

  	
   

  	
  VP Bunge Biofuels

  	
   

  	
   

  
										

 

 

RENEWABLE ENERGY GROUP, INC.

 

 

	
  By:

  	
  /S/   Jeffrey Stroburg

  	
   

  
	
  Jeffrey Stroburg, CEO & Chairman of the Board

  	
   

  

 

 

OIL FEEDSTOCK SUPPLY AGREEMENT
SIGNATURE PAGE  

 

22

 

SCHEDULE 4.1

 

1.                                     The
Contracting Parties will mutually determine the “Basis” under each Specific
Order, based in part upon reference to:

 

(a)                                 The
basis that Bunge charges to third parties for oil originally processed at
Danville, Illinois;

 

(b)                                The
basis that Bunge charges to its affiliates for oil originally processed at
Danville, Illinois;

 

(c)                                 The
basis paid by Producer and/or Bunge for other oil, as delivered to the
Facility;

 

(d)                                The
basis paid by Producer for oil delivered to other locations, with the price
adjusted to reflect the freight differential to the Facility;

 

(e)                                 The
basis that Bunge charges for oil originally processed at locations other than
Danville, Illinois that is delivered to other locations, with the price
adjusted to reflect the freight differential to the Facility; and

 

(f)                                   Any
other published materials regarding basis.

 

2.                                     Bunge
will pass through to Producer with no mark-up for Bunge’s benefit all
transportation charges for Oil originally processed at a facility other than in
Danville, Illinois; provided that Bunge will use commercially reasonable
efforts to negotiate the lowest possible transportation rates.

 

23

 

EXHIBIT A

FORM OF SPECIFIC ORDER

 

[to be inserted as subsequently agreed by the Contracting Parties]

 

24

 

EXHIBIT B

QUALITY STANDARDS

 

Crude degummed soybean oil per NOPA specifications except as below:

 

Maximum 1.0% FFA by weight

Maximum 0.2% Moisture

Maximum 0.1% Impurities

Maximum 200 ppm Phosphorus

Maximum 100 ppm Calcium

Maximum 70 ppm Magnesium

Maximum 10 ppm Sulfur

Maximum 1.5% Unsaponifiables

 

The chemical analysis to determine quality will include the qualitative
test for fish oil and marine animal oils as prescribed by AOAC Method No. 974.20
and will be negative.

 

Physical Requirements:

 

Crude Degummed Soybean Oil will be pure soybean oil. It will be
produced from fair average quality crude soybean oil from which the major
portion of the gums naturally present has been removed by hydration and
mechanical or physical separation.

 

Quality Sampling and Control Procedures:

 

Prior to Beginning Use:

 

·                  Agitate Bunge’s
Tank #10 using maximum mechanical agitation and pump circulation to achieve
homogeneity.

·                  After
homogeneity is assured, Bunge to zone sample Tank #10 every ten feet including
three bottom samples.

·                  Bunge/BCA
laboratory analysis to ensure that zone samples meet Quality Standards in this Exhibit B.

·                  All analytical
results must minimally meet NOPA specifications for de-gummed soy bean
oil.  Residual hexane levels must meet
the requirements in any existing applicable governmental permits.

 

Ongoing Quality Procedures:

 

·                  Bunge to provide
a certificate of analysis for any day tanks that are transferred to Tank
#10.  All samples to minimally meet NOPA
specifications for degummed soy bean oil.

 

25

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