Document:

renewablefuelcorpf10ex10-07.htm

Exhibit 10.7

 

SHARE EXCHANGE AGREEMENT

 

THIS SHARE EXCHANGE AGREEMENT (hereinafter referred to as "this Agreement") is entered into as of this 5th day of September 2008, by and between Renewable Fuel Corp, a Nevada corporation (“RFC”), on the one hand, and CAERUS, LTD. (“Caerus”).  Each of RFC and Caerus may be referred to herein as a “Party” and collectively as the “Parties.”

RECITALS

 

	
  

	
A.

	
RFC is a Nevada corporation with its offices at 7251 West Lake Mead Blvd., Suite 300, Las Vegas, Nevada 89128, United States of America.

 

	
  

	
B.

	
CAERUS, LTD. a British West Indies (BWI) corporation, with its offices at Box 599, Meridian House, Caribbean Place, Leeward Highway, Providenciales, Turks & Caicos Islands, BWI, is a shareholder of Bio Refining Industries Inc. (“BRII”), a Nevada corporation with its offices at 7251 West Lake Mead Blvd., Suite 300, Las Vegas, Nevada 89128, United States of America, and owns 100% of the issued and outstanding common stock of BRII (the “BRII Shares”).

	
  

	
C.

	
RFC agrees to acquire the BRII Shares being the whole 100% of the issued and outstanding securities of BRII from Caerus in exchange (the “Exchange”) for the issuance of certain shares of RFC common stock to Caerus or its designees (hereinafter referred to as the “RFC Common Stock”) on the terms described herein.

AGREEMENT

 

NOW THEREFORE, based on the foregoing recitals and for and in consideration of the mutual covenants and agreements hereinafter set forth and the mutual benefits to the Parties to be derived herefrom, and intending to be legally bound hereby, the Parties hereby agree as follows:

 

ARTICLE I

REPRESENTATIONS, COVENANTS AND

WARRANTIES BY CAERUS, LTD.

As an inducement to, and to obtain the reliance of RFC, except as set forth in the RFC Schedules (as attached hereafter with this Agreement), Caerus Ltd., represents and warrants as of the date hereof and as of the Closing Date, as defined below, as follows:

 

Section 1.01          Legal Capacity  

Caerus has full legal capacity to execute this Agreement and perform his obligations under the terms of this Agreement without being in breach of any law in Malaysia and to consummate the transactions herein contemplated.

  

  

  

Section 1.02          Ownership and Exchange of BRII Shares

Caerus owns the number of BRII Shares set forth opposite his or its name on Exhibit A free and clear of any restrictions on transfer (other than any restrictions under any applicable current governing laws, taxes, security interests, options, warrants, purchase rights, contracts, commitments, equities, claims, and demands. Caerus hereby warrants that he is not a party to any option, warrant, purchase right, or other contract or commitment that could require him to sell, transfer, or otherwise dispose of any capital stock or shares of BRII (other than this Agreement). Caerus hereby further warrants that he is not a party to any voting trust, proxy, or other agreement or understanding with respect to the voting of any capital stock or shares of BRII. The relevant portion of the BRII Shares to be exchanged by Caerus have been duly authorized and validly issued and are fully paid and non-assessable and have not have been issued in violation of any preemptive right of stockholders or rights of first refusal. Upon the transfer of the relevant portion of the BRII Shares which belongs to Caerus herewith at the Closing, RFC will acquire good and valid title to such number of BRII Shares free and clear of all claims, liens, security interests, pledges, charges, encumbrances, stockholders’ agreements, and voting trusts.

Section 1.03          Validity of Transaction

This Agreement which has been duly executed, and delivered by Caerus, is the legal, valid, and binding obligation of Caerus, and is enforceable as to Caerus in accordance with its terms except as may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting creditors’ rights generally, and subject to general principles of equity (regardless of whether enforcement is considered in a proceeding in equity or at law). No consent, authorization, approval, order, license, certificate, or permit of or from, or declaration or filing with, any federal, state, local, or other governmental authority or of any court or other tribunal is required by Caerus for the execution, delivery, or performance of this Agreement by Caerus, except as would not affect the ability of Caerus to perform any of its obligations under this Agreement.

Neither the execution and the delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will (i) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any government, governmental agency, or court to which Caerus is subject, or (ii) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument, or other arrangement to which Caerus is a party or by which he or it is bound or to which any of his or its assets is subject.

Section 1.04          Investment Intent

Caerus is acquiring the RFC Common Stock pursuant hereto for its own account for nvestment and not with a view to, or for sale in connection with, any public distribution thereof in violation of the Securities Act of 1933, as amended (hereinafter referred to as the “Securities Act”), it being understood that Caerus has the right to sell such shares in its sole discretion, and that by this representation and warranty, Caerus is not required to hold any portion of the RFC Common Stock for any period of time, subject to the requirements of applicable law. Caerus understands that such number of the RFC Common Stock, as of Closing, have not been registered for sale under the Securities Act or qualified under applicable state securities laws, and that the RFC Common Stock  will be delivered to it pursuant to one or more exemptions from the registration or qualification requirements of such securities laws and that the representations and warranties contained in this Section 1.04 are given with the intention that RFC may rely thereon for purposes of claiming such exemptions.

  

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Section 1.05          Transfer of RFC Common Stock

Caerus will not sell or otherwise dispose of any number of shares of the RFC Common Stock unless (a) a registration statement with respect thereto has become effective under the Securities Act and such securities have been qualified under applicable state securities laws or (b) such registration and qualification are not required and, if RFC so requests, there is presented to RFC a legal opinion reasonably satisfactory to RFC to such effect. Caerus consents that the transfer agent for the relevant number of the RFC Common Stock may be instructed not to transfer any RFC Common Stock unless it receives satisfactory evidence of compliance with the foregoing provisions, and that there may be endorsed upon any certificate representing the RFC Common Stock (and any certificates issued in substitution therefor) the following legend calling attention to the foregoing restrictions on transferability and stating in substance:

"THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ISSUED WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR QUALIFICATION UNDER THE BLUE SKY LAWS OF ANY JURISDICTION.  SUCH SECURITIES MAY NOT BE SOLD, ASSIGNED, TRANSFERRED OR OTHERWISE DISPOSED OF, BENEFICIALLY OR ON THE RECORDS OF THE CORPORATION, UNLESS THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT AND QUALIFIED UNDER APPLICABLE BLUE SKY LAWS, OR AN EXEMPTION FROM SUCH REGISTRATION AND QUALIFICATION IS AVAILABLE."

RFC shall, upon the request of any holder of a certificate bearing the foregoing legend and the surrender of such certificate, issue a new certificate without such legend if (i) the security evidenced by such certificate has been effectively registered under the Securities Act and qualified under any applicable state securities law and sold by the holder thereof in accordance with such registration and qualification or (ii) such holder shall have delivered to RFC a legal opinion reasonably satisfactory to RFC to the effect that the restrictions set forth herein are no longer required or necessary under the Securities Act or any applicable state law.

ARTICLE II

REPRESENTATIONS, COVENANT AND

WARRANTIES OF RFC

 

As an inducement to, and to obtain the reliance of the BRII Shareholders, except as set forth in the BRII Shareholder Schedules (as attached hereinafter), RFC represents and warrants, as of the date hereof and as of the Closing Date, as follows:

  

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Section 2.01          Organization; Authorization

RFC, a Nevada corporation incorporated in the United States of America, is in good standing with all applicable agencies. Included in the RFC Schedules are complete and correct copies of the articles of incorporation, and bylaws of RFC as in effect on the date hereof. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not, violate any provision of RFC’s articles of incorporation or bylaws. RFC has taken all actions required by law, its certificate of incorporation, or otherwise to authorize the execution and delivery of this Agreement.

Section 2.02          Legal Proceedings

There are no legal actions against RFC or its directors, officers, or shareholders, and RFC knows of no threatened legal actions against RFC, its directors, officers, or shareholders, nor is RFC engaged in any legal actions against other parties.

Section 2.03          Business and Financial Condition

The business and financial condition of RFC are as set forth in the financial statements of RFC provided to the BRII Shareholders as of the date hereof.

Section 5.04          Capitalization

As of the date of this Agreement, the authorized capital of RFC is 500,000,000 shares of common stock, par value $0.0001 per share, of which 80,960,000 shares are issued and outstanding. All issued and outstanding shares are legally issued, fully paid, and non-assessable and not issued in violation of the preemptive or other rights of any person.

 

ARTICLE III

THE EXCHANGE

 

Section 3.01      The Exchange

(a)  On the terms and subject to the conditions set forth in this Agreement, Caerus shall assign, transfer and deliver, free and clear of all liens, pledges, encumbrances, charges, restrictions or known claims of any kind, nature, or description, the BRII Shares in BRII set forth on Exhibit A attached hereto, constituting the voting shares of common stock, of BRII held by Caerus; the objective of the Exchange being the acquisition by RFC of the whole 100% of the issued and outstanding common stock of BRII.

(b)  In exchange for the transfer of the BRII Shares by Caerus, RFC shall issue to Caerus or its designees, the RFC Common Stock in an aggregate of 120,908,000 shares of restricted common stock for Caerus or its designees.

  

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(c)   It is the intention of the parties that on the date of the Closing (hereinafter referred to as the “Closing Date”):-

	
  

	
(i) There will be an aggregate of 204,286,160 shares in RFC issued and outstanding (hereinafer referred to as “RFC Total Common Stock”); and

	
  

	
(ii) Of those 89,508,000 shares, Caerus or its designees will hold an aggregate of 120,908,000 shares of the RFC Total Common Stock, and the remaining existing RFC shareholders will hold an aggregate of 83,738,160 shares of RFC Total Common Stock; and

(d)   At the Closing, on surrender by Caerus of its certificate or certificates representing the BRII Shares to RFC or its registrar or transfer agent, Caerus or its designees shall receive a certificate or certificates evidencing his or her proportionate interest in the RFC Common Stock , respectively; and

(e)  It is not the intention of RFC to create a new class of RFC Total Common Stock in connection with the restrictive nature of a portion of the stock issued.

Section 3.02          Anti-Dilution

The number of shares of RFC Total Common Stock issuable upon the Exchange pursuant to Section 3.01 shall be appropriately adjusted to take into account any stock split, stock dividend, reverse stock split, recapitalization, or similar change in the RFC Total Common Stock which may occur, between the date of the execution of this Agreement and the Closing Date.

Section 3.03          Closing Events

At the Closing, RFC and Caerus shall execute, acknowledge, and deliver (or shall ensure to be executed, acknowledged, and delivered), any and all certificates, opinions, financial statements, schedules, agreements, resolutions, rulings or other instruments required by this Agreement to be so delivered at or prior to the Closing, as applicable, together with such other items as may be reasonably requested by the parties hereto and their respective legal counsel in order to effectuate or evidence the transactions contemplated hereby.

 

Section 3.04          Closing

The Closing Date of this Agreement shall be the date on which this Agreement is executed by the latter Party to execute the Agreement.  The “Final Completion Date” of this Agreement shall be the earlier of (a) that date which is one year from the Closing Date or (b) that date on which both Parties acknowledge and agree that the Special Covenants in Article IV below, the conditions precedent set forth in Article V below, and the conditions precedent set forth in Article VI shall have been satisfied to the satisfaction of each of the parties.

  

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Section 3.05          Termination

This Agreement may be terminated by the Board of Directors of RFC or Caerus, acting together, in the event that RFC or Caerus do not meet the conditions precedent set forth in Articles IV and VI, or if an event of default shall have occurred, and shall not have been cured within fifteen (15) days of the occurrence of such default. If this Agreement is terminated pursuant to this section, this Agreement shall be of no further force or effect, and no obligation, right or liability shall arise hereunder. For purposes of this Agreement, “Event of Default” shall mean (a) the breach by any Party to this Agreement of any of the material terms of this Agreement; or (b) the failure or refusal by any Party to this Agreement to complete the transactions contemplated by this Agreement.  In the event of a default by the defaulting party, the non-defaulting party shall be entitled to receive, as liquidated damages and not as a penalty, the sum of RM220,000 from the defaulting party. Additionally, in the event this Agreement is terminated pursuant to this Section 3.05, the Parties hereby agree to return, to their respective owners or producers, any and all documents in their possession relating to the transaction contemplated by this Agreement within ten (10) days of such termination.

ARTICLE IV

SPECIAL COVENANTS

 

Section 4.01          Access to Properties and Records

RFC and Caerus will each afford to the officers and authorized representatives of the other full access to the properties, books and records of RFC or BRII as the case may be, in order that each may have a full opportunity to make such reasonable investigation as it shall desire to make of the affairs of the other, and each will furnish the other with such additional financial and operating data and other information as to the business and properties of RFC or BRII as the case may be, as the other shall from time to time reasonably request.

 

Section 4.02          Delivery of Books and Records

At the Closing, Caerus shall deliver to RFC the originals of the corporate minute books, books of account, contracts, records, and all other books or documents of BRII now in the possession of either of Caerus or its representatives.

Section 4.03          Third Party Consents and Certificates

RFC and Caerus agree to cooperate with each other in order to obtain any required third party consents to this Agreement and the transactions herein contemplated.

 

Section 4.04          Indemnification

 

(a)   Caerus agrees to indemnify RFC and each of the officers, agents and directors of RFC as of the date of execution of this Agreement against any loss to which it or they may become subject arising out of or based on any claim which is finally determined by a court of competent jurisdiction that (i) Caerus did not have good title to the BRII Shares or (ii) that the BRII Shares were subject to a lien or encumbrance. The indemnification provided for in this paragraph shall survive the Closing and consummation of the transactions contemplated hereby and termination of this Agreement for one year following the Closing.

  

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(b)  RFC hereby agrees to indemnify Caerus as of the date of execution of this Agreement against any loss to which it or they may become subject arising out of or based on any inaccuracy appearing in or misrepresentation made under Article II of this Agreement. The indemnification provided for in this paragraph shall survive the Closing and consummation of the transactions contemplated hereby and termination of this Agreement for one (1) year following the Closing.

(c)  Caerus hereby covenants with RFC that it will indemnify and at all time keep RFC indemnified against any tax liability or taxation assessable or recoverable on or from BRII to the extent of their tax liability in relation to profits of BRII prior to the Closing Date, unless the same has been disclosed to RFC in writing.

(d) Notwithstanding the completion of the Exchange, all warranties, undertakings, covenants, representations and obligations of Caerus herein contained shall continue thereafter to subsist for one (1) year following the Closing. Caerus hereby undertakes to, and covenants and agrees with RFC that it shall at all times hereafter keep RFC fully and effectively indemnified against any depletion or diminution of the assets of BRII and any loss, damage, cost and expense which RFC may, directly or indirectly, suffer as a result of or in connection with any misrepresentation contained herein or any breach of any of the warranties, covenants and obligations set out herein. In particular, the Parties hereby agree that Caerus shall indemnify RFC for any claims, expenses, losses, damages, suits or any actions whatsoever caused or incurred by Caerus to BRII, whether jointly or severally prior to the Closing.

Section 4.06          The Acquisition of BRII Common Stock

RFC and Caerus understand and agree that the consummation of this Agreement, including the issuance of the BRII Common Stock to Caerus or its designees in the Exchange for the BRII Shares as contemplated hereby constitutes the offer and sale of securities under the Securities Act and applicable state statutes. RFC and Caerus agree that such transactions shall be consummated in reliance on exemptions from the registration and prospectus delivery requirements of such statutes, which depend, among other items, on the circumstances under which such securities are acquired.

 

(a)  In order to provide documentation for reliance upon the exemptions from the registration and prospectus delivery requirements for such transactions, Caerus shall execute and deliver to RFC a Suitability Letter and an Investment Representation Letter in substantially the same form as that attached hereto as Exhibit SL and Exhibit IRL, respectively.

 

(b)  In connection with the transaction contemplated by this Agreement, RFC and Caerus shall each file, with the assistance of the other and their respective legal counsel, such notices, applications, reports, or other instruments as may be deemed by them to be necessary or appropriate in an effort to document reliance on such exemptions, and the appropriate regulatory authority in the states where Caerus reside unless an exemption requiring no filing is available in such jurisdictions, all to the extent and in the manner as may be deemed by such parties to be appropriate.

  

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(c)  In order to more fully document reliance on the exemptions as provided herein, Caerus and RFC shall execute and deliver to the other, at or prior to the Closing, such further letters of representation, acknowledgment, suitability, or the like as Caerus or RFC and their respective counsel may reasonably request in connection with reliance on exemptions from registration under such securities laws.

 

(d)  Caerus acknowledges that the basis for relying on exemptions from registration or qualifications are factual, depending on the conduct of the various parties, and that no legal opinion or other assurance will be required or given to the effect that the transactions contemplated hereby are in fact exempt from registration or qualification.

(e)   Caerus shall grant and shall cause BRII to grant RFC their full cooperation in allowing RFC to conduct the due diligence. RFC shall complete the due diligence and notify Caerus in writing whether or not it is satisfied with the findings of the due diligence before the date of this Agreement.

(f)           In return for the cooperation outlined in Section 4.05 (e) above, RFC shall grant Caerus its full cooperation in allowing Caerus to conduct the due diligence. Caerus shall complete the due diligence and notify RFC in writing whether or not it is satisfied with the findings of the due diligence before the date of this Agreement.

ARTICLE V

CONDITIONS PRECEDENT TO OBLIGATIONS

OF RFC

The obligations of RFC under this Agreement are subject to the satisfaction, at or before Closing, of the following conditions:

 

Section 5.01  Accuracy of Representations and Performance of Covenants.

The representations and warranties made by Caerus in this Agreement were true when made and shall be true at Closing with the same force and effect as if such representations and warranties were made at and as of Closing (except for changes therein permitted by this Agreement). Caerus shall have performed or complied with all covenants and conditions required by this Agreement to be performed or complied with by Caerus prior to or at the Closing. RFC shall be furnished with a certificate, signed by Caerus and dated the Closing Date, to the foregoing effect.

  

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Section 5.02          Information Provided

RFC shall have been furnished with that information on the business and affairs of BRII which it deems, in its sole and absolute discretion, to be necessary for it to make its decision to proceed with the Closing.

Section 5.03          No Material Adverse Change

As of the Closing, there shall not have occurred any material adverse change, financially or otherwise, which materially impairs the ability of BRII to conduct its business or the earning power thereof.

 

Section 5.04          Financial Statements

BRII shall have completed its audited consolidated financial statements and shall have provided such to RFC.

Section 5.05          Due Diligence

Caerus shall have provided to RFC, to the satisfaction of RFC, the information of BRII as set forth in the BRII Schedules 5.06 (a) through (m). RFC  shall have the right, in addition to any rights to terminate this Agreement set forth in Section 3.05 above, to terminate this transaction in the event that (a) Caerus shall not provide all the required information in relation to BRII in its possession to the satisfaction of RFC; or (b) RFC shall determine in its sole discretion, based on its review of the materials provided by Caerus in the BRII Schedules 5.06, that it is not in the best interest of RFC  to continue with the transactions contemplated by this Agreement.

ARTICLE VI

CONDITIONS PRECEDENT TO OBLIGATIONS

OF CAERUS

 

The obligations of Caerus under this Agreement are subject to the satisfaction, at or before the Closing Date, of the following conditions:

Section 6.01          Accuracy of Representations and Performance of Covenants

The representations and warranties made by RFC in this Agreement were true when made and shall be true as of the Closing Date (except for changes therein permitted by this Agreement) with the same force and effect as if such representations and warranties were made at and as of the Closing Date. Additionally, RFC shall have performed and complied with all covenants and conditions required by this Agreement to be performed or complied with by RFC.

 

Section 6.02          Issuance of Shares

Shares of the BRII Common Stock to be issued by RFC to Caerus or its designees at Closing shall have been issued.

  

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Section 6.03          Due Diligence

RFC shall have provided to Caerus to the satisfaction of Caerus, the information of RFC as set forth in the BRII Schedule. Caerus shall have the right, in addition to any rights to terminate this Agreement set forth in Section 3.05 above, to terminate this transaction in the event that (a) RFC shall not provide all the required information in its possession to the satisfaction of Caerus; or (b) Caerus shall determine in its sole discretion, based on its review of the materials provided by RFC, that it is not in the best interest of Caerus to continue with the transactions contemplated by this Agreement.

ARTICLE VII

SATISFACTION OF CONDITIONS PRECEDENT;

 FINAL COMPLETION DATE

The obligations of Caerus under this Agreement are subject to the satisfaction, after the Closing, of the following condition:

Section 7.01          Satisfaction of All Conditions Precedent

If all of the conditions precedent set forth in Article V and Article VI have been satisfied to the satisfaction of RFC and Caerus, RFC and Caerus shall have the right, but not the obligation, to declare that the Final Completion Date has been reached, and that the transaction described in this Agreement shall be final and complete.

Section 7.02          Rescission for Non-satisfaction of Conditions Precedent

(a)           In the event that all of the conditions precedent set forth in Article V have not been met and satisfied by Caerus to the satisfaction of RFC before the first anniversary of the Closing Date of this Agreement, RFC shall have the right, but not the obligation, to rescind this Agreement, whereupon:

	
  

	
(i)

	
RFC shall re-transfer the BRII Shares to Caerus or its designees and issue the share certificates duly registered in the name of Caerus or its designees; and

	
  

	
(ii)

	
Caerus shall return the RFC Common Stock to RFC; and

	
  

	
(iii)

	
The transaction contemplated by this Agreement shall be null and void.  Upon completion of the matters referred to above, this Agreement shall be of no further effect and thereafter, neither party hereto shall have any claims against the other save and except in respect of any antecedent breach of the provisions of this Agreement.

(b)           In the event that all of the conditions precedent set forth in Article VI have not been met and satisfied by RFC to the satisfaction of Caerus before the first anniversary of the Closing Date of this Agreement, RFC shall have the right, but not the obligation, to rescind this Agreement, whereupon:

  

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(i)

	
RFC shall re-transfer the BRII Shares to Caerus or its designees and issue the share certificates duly registered in the name of Caerus or its designees; and

	
  

	
(ii)

	
Caerus shall return the RFC Common Stock to RFC; and

	
  

	
(iii)

	
The transaction contemplated by this Agreement shall be null and void.  Upon completion of the matters referred to above, this Agreement shall be of no further effect and thereafter, neither party hereto shall have any claims against the other save and except in respect of any antecedent breach of the provisions of this Agreement.

Upon completion of the matters referred to above, this Agreement shall be of no further effect and thereafter, neither party hereto shall have any claims against the other save and except in respect of any antecedent breach of the provisions of this Agreement.

ARTICLE VII

MISCELLANEOUS

 

Section 8.01          Brokers 

RFC and Caerus agree that, except as set out on Schedule 8.01 of the RFC Schedules and the BRII Schedules, there were no finders or brokers involved in bringing the parties together or who were instrumental in the negotiation, execution or consummation of this Agreement. RFC and Caerus each agree to indemnify the other against any claim by any third person other than those described above for any commission, brokerage, or finder's fee arising from the transactions contemplated hereby based on any alleged agreement or understanding between the indemnifying party and such third person, whether express or implied from the actions of the indemnifying party.

Section 8.02          Governing Law

(a)           The parties hereby agree that for purposes of compliance, each party shall be governed by all its relevant current applicable governing laws

(b)           This Agreement shall be governed by, enforced, and construed under and in accordance with the laws of the state of Nevada, USA.

(c)           Any dispute, controversy or claim arising out of or relating to this Agreement, or the breach, termination or invalidity thereof, shall be settled by arbitration in accordance with the Judicial Arbitration & Mediation Services, Inc. (JAMS) rules and procedures as then in force, before a panel of three arbitrators, wich each of RFC and Caerus selecting one arbitrator and the third arbitrator to be selected pursuant to JAMS Comprehensive Arbitration Rules and Procedures, in accordance with the Laws of the State of Nevada  applicable to agreements made and to be performed entirely therein.  The place of arbitration shall be Las Vegas, Nevad< USA, and the language to be used in the arbitration proceedings shall be English.

  

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Section 8.03          Notices

Any notice or other communications required or permitted hereunder shall be in writing and shall be sufficiently given if personally delivered to it or sent by telecopy, overnight courier or registered mail or certified mail, postage prepaid, addressed as follows:

 

 

	
 If to Caerus, to: 

	
CAERUS LTD.

Box 599, Meridian House,

Caribbean Place, Leeward Highway,

Providenciales, Turks & Caicos Islands, BWI

 

	
If to RFC, to: 

	
7251 West Lake Mead Blvd., Suite 300, Las Vegas,

Nevada 89128,

United States of America

or such other addresses as shall be furnished in writing by any party in the manner for giving notices hereunder, and any such notice or communication shall be deemed to have been given (i) upon receipt, if personally delivered, (ii) on the day after dispatch, if sent by overnight courier, (iii) upon dispatch, if transmitted by telecopy and receipt is confirmed by telephone and (iv) three (3) days after mailing, if sent by registered or certified mail.

Section 8.04          Attorney's Fees

In the event that either party institutes any action or suit to enforce this Agreement or to secure relief from any default hereunder or breach hereof, the prevailing party shall be reimbursed by the losing party for all costs, including reasonable attorney's fees, incurred in connection therewith and in enforcing or collecting any judgment rendered therein.

Section 8.05          Confidentiality

Each party hereto agrees with the other that, unless and until the transactions contemplated by this Agreement have been consummated, it and its representatives will hold in strict confidence all data and information obtained with respect to another party or any subsidiary thereof from any representative, officer, director or employee, or from any books or records or from personal inspection, of such other party, and shall not use such data or information or disclose the same to others, except (i) to the extent such data or information is published, is a matter of public knowledge, or is required by law to be published; or (ii) to the extent that such data or information must be used or disclosed in order to consummate the transactions contemplated by this Agreement. In the event of the termination of this Agreement, each party shall return to the other party all documents and other materials obtained by it or on its behalf and shall destroy all copies, digests, work papers, abstracts or other materials relating thereto, and each party will continue to comply with the confidentiality provisions set forth herein.

  

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Section 8.06          Schedules; Knowledge

Each party is presumed to have full knowledge of all information set forth in the other party's schedules delivered pursuant to this Agreement.

Section 8.07          Third Party Beneficiaries

This contract is strictly between RFC  and Caerus, and, except as specifically provided, no director, officer, stockholder (other than Caerus), employee, agent, independent contractor or any other person or entity shall be deemed to be a third party beneficiary of this Agreement.

Section 8.08          Expenses

Whether or not the Exchange is consummated, each of RFC and Caerus will bear its own respective expenses, including legal, accounting and professional fees, incurred in connection with the Exchange or any of the other transactions contemplated hereby.

 

Section 8.09          Entire Agreement

This Agreement represents the entire agreement between the parties relating to the subject matter thereof and supersedes all prior agreements, understandings and negotiations, written or oral, with respect to such subject matter.

 

Section 8.10          Survival; Termination

The representations, warranties, and covenants of the respective parties shall survive the Closing Date and the consummation of the transactions herein contemplated for a period of one (1) year.

Section 8.11          Counterparts

This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which taken together shall be but a single instrument.

  

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Section 8.12          Amendment or Waiver

Every right and remedy provided herein shall be cumulative with every other right and remedy, whether conferred herein, at law, or in equity, and may be enforced concurrently herewith, and no waiver by any party of the performance of any obligation by the other shall be construed as a waiver of the same or any other default then, theretofore, or thereafter occurring or existing. At any time prior to the Closing Date, this Agreement may by amended by a writing signed by all parties hereto, with respect to any of the terms contained herein, and any term or condition of this Agreement may be waived or the time for performance may be extended by a writing signed by the party or parties for whose benefit the provision is intended.

[SIGNATURE PAGE FOLLOWS.]

 

 

 

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IN WITNESS WHEREOF, the corporate parties hereto have caused this Agreement to be executed by their respective officers, hereunto duly authorized, as of the date first-above written.

 

CAERUS, LTD

By:           /s/                                                                

Name:                                                                           

RENEWABLE FUEL CORP

By:     /s/ William Van Vliet                                        

Name:

Title: Director

 

 

 

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Exhibit SL

SUITABILITY LETTER

(TO BE COMPLETED BY CAERUS)

TO:             RENEWABLE FUEL CORP

 

I make the following representations with the intent that they may be relied on by RENEWABLE FUEL CORP (the "Company"), in determining my suitability as a purchaser of securities of the Company (the "Shares").

 

2.  I have had the opportunity to ask questions of, and receive answers and information, from the officers of the Company and I deemed such information sufficient to make an investment decision on the Company.

 

3.  I have such knowledge and experience in business and financial matters that I am capable of evaluating the Company, its business activities, and the risks and merits of this prospective investment, and I am not utilizing a purchaser representative (as defined in regulation D) in connection with the evaluation of such risks and merits, except as set forth in paragraph 3.

 

4.  I shall provide a separate written statement from each purchaser representative on RFC Representative Acknowledgment form available from the Company in which is disclosed (i) the relationship of RFC representative with the Company, if any, which has existed at any time during the previous two years, and compensation received or to be received as a result of such relationship, and (ii) the education, experience, and knowledge in financial and business matters which enables RFC representative to evaluate the relative merits 7and risks of an investment in the Company.

 

5.  The undersigned and RFC representatives listed above, if any, together have such knowledge and experience in financial and business matters that they are capable of evaluating the Company and the proposed activities thereof and the merits and risks of this prospective investment.

 

6.  I have adequate means of providing for my current needs and possible personal contingencies and have no need in the foreseeable future for liquidity of an investment in the Company.

 

7.  Instructions: Complete either (a) or (b) below, as applicable:

 

(a)  FOR ACCREDITED INVESTORS. I confirm that I am an "accredited investor" as defined under rule 501 of regulation D promulgated under the Securities Act of 1933, as amended (the "Securities Act"), as checked below:

  

15

  

(i)  Any bank as defined in section 3(a)(2) of the Securities Act or any savings and loan association or other institution as defined in section 3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to section 15 of the Securities Exchange Act of 1934; any insurance company as defined in section 2(13) of the Securities Act; any investment company registered under the Investment Company Act of 1940 or a business development company as defined in section 2(a)(48) of that Act; any small business investment company licensed by the U. S. Small Business Administration under section 301(c) or (d) of the Small Business Investment Act of1958; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000; any employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, if the investment decision is made by a plan fiduciary, as defined in section3(21) of such Act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors;

o Yes o No

 

(ii)  Any private business development company as defined in section 302(a)(22) of the Investment Advisers Act of 1940;

 

o Yes o No

 

(iii)  Any organization described in section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;

 

o Yes o No

 

(iv)  Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of a general partner of that issuer;

 

o Yes o No

 

(v)  Any natural person whose individual net worth or joint net worth with that person's spouse, at the time of his or her purchase exceeds $1,000,000;

 

o Yes o No

 

For purposes of category (v), the term "net worth" means the excess of total assets over total liabilities. In computing net worth for the purposes of category (v) above, the undersigned's principal residence must be valued either at (A) cost, including the cost of improvements, net of current encumbrances upon the property or (B) the appraised value of the property as determined upon a written appraisal used by an institutional lender making a loan to the individual secured by the property, including the cost of subsequent improvements, net of current encumbrances upon the property.

  

16

  

 

(vi)  Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year;

 

o Yes o No

 

In determining income, the undersigned should add to his or her adjusted gross income any amounts attributable to tax exempt income received, losses claimed as a limited partner in any limited partnership, deductions claimed for depletion, contributions to an IRA or Keogh retirement plan, alimony payments, and any amount by which income from long-term capital gains has been reduced in arriving at adjusted gross income.

 

(vii)  Any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in section 230.506(b)(2)(ii); and

 

o Yes o No

 

(viii)  Any entity in which all of the equity owners are accredited investors.

 

o Yes o No

 

(b)  FOR NONACCREDITED INVESTORS. I am not an accredited investor.

 

The following information is being provided here in lieu of furnishing a personal financial statement.

 

(i)  My net worth excluding principal residence, furnishings, and automobiles is at least ______________ times the total investment I intend to make in the Company;

 

(ii)  My annual disposable income, after excluding all of my personal and family living expenses and other cash requirements for current obligations, is such that the loss of my entire investment in the Company would not materially alter my standard of living;

 

o Yes o No

 

(iii)  Considering the foregoing and all other relevant factors in my financial and personal circumstances, I am able to bear the economic risk of an investment in the Company.

 

o Yes o No

  

17

  

7.  I have previously been advised that I would have an opportunity to review all the pertinent facts concerning the Company, and to obtain any additional information which I might request, to the extent possible or obtainable, without unreasonable effort and expense, in order to verify the accuracy of the information provided me.

 

8.  I have personally communicated or been offered the opportunity to communicate with executive officers of the Company to discuss the business and financial affairs of the Company, its products and activities, and its plans for the future. I acknowledge that if I would like to further avail myself of the opportunity to ask additional questions of the Company, the Company will make arrangements for such an opportunity on request.

 

9.  I have been advised that no accountant or attorney engaged by the Company is acting as my representative, accountant, or attorney.

 

10.  I will hold title to my interest as follows:

 

	
o

	
 Community Property

	
o

	
Separate Property

	  	  	  	  
	

o

	
 Joint Tenants, with Right of Survivorship

	
o

	
Tenants in Common

	  	  	  	  
	  	  	
o

	
Other (Single Person, Trust, Etc., Please Indicate.)

	  	  	  	  
	  	  	  	
_________________________________

 

11.  I am a bona fide resident of the state of __________. The address below is my true and correct principal residence.

 

DATED this ____ day of __________, 2008

 

Signed by:

 /s/

                                                                                                    

	
Name:

	
CAERUS, LTD.

	
Address:

	
Box 599, Meridian House,

	  	
Caribbean Place, Leeward Highway,

	  	
Providenciales, Turks & Caicos Islands, BWI

 

  

18

  

Exhibit IRL 

INVESTMENT REPRESENTATION LETTER

(TO BE SIGNED BY CAERUS)

To:              RENEWABLE FUEL CORP

 

Re: Purchase of shares of Common Stock of RENEWABLE FUEL CORP   

Gentlemen:

 

In connection with the acquisition by the undersigned of shares of Common Stock of RENEWABLE FUEL CORP (the “Securities”), the undersigned represents that the Securities are being acquired without a view to, or for, resale in connection with any distribution of such Securities or any interest therein without registration or other compliance under the Securities Act of 1933, as amended (the "Securities Act"), and that the undersigned has no direct or indirect participation in any such undertaking or in the underwriting of such an undertaking.

 

The undersigned understands that the Securities have not been registered, but are being acquired by reason of a specific exemption under the Securities Act as well as under certain state statutes for transactions by an issuer not involving any public offering and that any disposition of the subject Securities may, under certain circumstances, be inconsistent with this exemption and may make the undersigned an "underwriter" within the meaning of the Securities Act. It is understood that the definition of an "underwriter" focuses on the concept of "distribution" and that any subsequent disposition of the subject Securities can only be effected in transactions which are not considered distributions. Generally, the term "distribution" is considered synonymous with "public offering" or any other offer or sale involving general solicitation or general advertising. Under present law, in determining whether a distribution occurs when securities are sold into the public market, under certain circumstances one must consider the availability of public information regarding the issuer, a holding period for the securities sufficient to assure that the persons desiring to sell the securities without registration first bear the economic risk of their investment, and a limitation on the number of securities which the stockholder is permitted to sell and on the manner of sale, thereby reducing the potential impact of the sale on the trading markets. These criteria are set forth specifically in rule 144 promulgated under the Securities Act. After one year from the date the Securities are fully paid for and the subscription is accepted by the issuer, all as calculated in accordance with rule 144(d),sales of the Securities in reliance on rule 144 can only be made in limited amounts in accordance with the terms and conditions of that rule. After two year from the date the Securities are fully paid for, as calculated in accordance with rule 144(d), it can generally be sold without meeting these conditions provided the holder is not (and has not been for the preceding three months) an affiliate of the issuer.

  

19

  

The undersigned acknowledges that the Securities must be held and may not be sold, transferred, or otherwise disposed of for value unless it is subsequently registered under the Securities Act or an exemption from such registration is available; the issuer is under no obligation to register the Securities under the Securities Act or under section 12 of the Securities Exchange Act of 1934, as amended, except as may be expressly agreed to by it in writing; if rule 144 is available, and no assurance is given that it will be, initially only routine sales of such Securities in limited amounts can be made in reliance on rule 144 in accordance with the terms and conditions of that rule; the issuer is under no obligation to the undersigned to make rule 144 available, except as may be expressly agreed to by it in writing; in the event rule 144 is not available, compliance with regulation A or some other exemption may be required before the undersigned can sell, transfer, or otherwise dispose of such Securities without registration under the Securities Act; the issuer's registrar and transfer agent will maintain a stop transfer order against the registration of transfer of the Securities; and the certificate representing the convertible promissory notes and warrants composing the Securities will bear a legend in substantially the following form so restricting the sale of such Securities.

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND ARE "RESTRICTED SECURITIES" WITHIN THE MEANING OF RULE 144 PROMULGATED UNDER THE SECURITIES ACT. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD OR TRANSFERRED WITHOUT COMPLYING WITH RULE 144 IN THE ABSENCE OF AN EFFECTIVE REGISTRATION OR OTHER COMPLIANCE UNDER THE SECURITIES ACT.

 

The issuer may refuse to register transfer of the Securities in the absence of compliance with rule 144unless the undersigned furnishes the issuer with a "no-action" or interpretative letter from the U.S. Securities and Exchange Commission or an opinion of counsel reasonably acceptable to the issuer stating that the transfer is proper; further, unless such letter or opinion states that the Securities are free of any restrictions under the Securities Act, the issuer may refuse to transfer the Securities to any transferee who does not furnish in writing to the issuer the same representations and agree to the same conditions with respect to such Securities as are set forth herein. The issuer may also refuse to transfer the Securities if any circumstances are present reasonably indicating that the transferee's representations are not accurate.

 

Very truly yours,

	
Signed by:

	
Dated

              /s/                                                                                             

	
Name:

	
CAERUS, LTD.

	
Address:

	
Box 599, Meridian House,

	  	
Caribbean Place, Leeward Highway,

	  	
Providenciales, Turks & Caicos Islands, BWI

 

  

20

  

EXHIBIT A

THE BRII SHAREHOLDERS

	
Name of Vendors

 

	
Number of Shares of the BRII

Shareholders’ Shares

to be Tendered

 

	
Number of RFC’s Common

Stock  to be Issued

	
CAERUS LTD.

	
60,454,000

	
120,908,000

  

21

  

EXHIBIT B

DESIGNEES OF CAERUS LTD.

	
Name

	
Address

	
Number of shares of RFC  Common Stock

	
Caerus Ltd.

 

	
Box 599, Meridian House

Caribbean Place, Leeward

Highway Provinciales Turks

and Caicos Islands B.W.I.

	
89,508,000

	
Green Technology Systems

Inc.

	  	
9,300,000

	
Archer Limited

 

	  	
9,500,000

	
Northern Holding Corp

 

	  	
9,600,000

	
Signet Capital Limited

 

	  	
3,000,000

	  	  	  
	  	  	  
	  	  	  
	  	  	  

  

22

  

THE BRII SCHEDULES

	
Schedule 1.01

	
Copy of Caerus Ltd. Corporate Resolution specifically permitting the Execution and Delivery of the Share Exchange Agreement

  

23

  

 

RFC SCHEDULES

	
  

	
Exhibit RFC 1 - Copy of Articles of Incorporation and Amendments

	
  

	
Exhibit RFC 2 - Copy of Renewable Fuel Corp Bylaws

	
  

	
Exhibit RFC 3 - Copy of Corporate Resolution specifically permitting the Execution and Delivery of the Share Exchange Agreement

 

 

 

24renewablefuelcorpf10ex10-08.htm

Exhibit 10.8

 

 

	
 

CONFIDENTIAL INVESTOR QUESTIONNAIRE

 

RENEWABLE FUEL CORP

a Nevada corporation

 

 

 

 

 

INSTRUCTIONS:

 

	
  

	
1.

	
In order to assure compliance with applicable federal law, it is necessary to obtain information regarding the financial position and experience of investors in the Company.  Please complete this Confidential Investor Questionnaire.

 

	
  

	
2.

	
Please return the completed Confidential Investor Questionnaire to:

 

C. Parkinson Lloyd, Esq.

 

c/o Durham Jones & Pinegar

 

111 East Broadway

 

Suite 900

 

Salt Lake City, UT 84111

 

Telephone:   (801) 415-3000

 

Facsimile:   (801) 415-3500

 

Email:   plloyd@djplaw.com

 

	
  

	
3.

	
Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Subscription Agreement.

 

  

  

  

PART I.                      GENERAL INFORMATION (ATTACH ADDITIONAL SHEETS IF NECESSARY)

 

	  	
To be completed by all Investors.

 

	
 

	
1.

	
Name:

	
Oilcorp International Limited

	  	  	  	  
	 	 	 
	
 

	
2.

	
Address:

	  	  	  	
Business:

	
No. 2-2, Jalan SS6/8, Kelana Jaya, 47301 Petaling Jaya, Selangor, Malaysia

	  	  	  	  	  
	  	  	  	
Registered:

	
Palm Grove House, P.O. Box 438, Toad Town, Tortola, British Virgin Islands

	  	  	  	  	  
	  	
Note:  The Company may deliver time-sensitive documents by Federal Express.  Please provide the Partnership with a street address since Federal Express will not deliver to post office boxes.

	 	 	 
	
 

	
3.

	
Telephone:

	  	  	  	
Business:

	
(603) 7804 4843

	  	  	  	
Residence:

	
(      ) Not applicable

	 	 	 	 
	
 

	
4.

	
Date of Birth:

	
Not applicable

	
 

	
 

	
(to be completed by individual Investors)

 

	
 

	
5.

	
Marital status:

	
Not applicable

	
 

	
 

	
(to be completed by individual Investors)

 

	
 

	
6.

	
Social Security Number or Federal Employer Identification Number:

	
Not applicable

 

	
 

	
7.

	
The undersigned is (check the applicable subparagraph):

	  	  	o	
A United States Person; or

	  	  	 	
A non-United States Person.

 

For purposes of this Confidential Investor Questionnaire, “United States Person” or “U.S. Person” means (A) any natural person resident in the United States; (B) any partnership or corporation organized or incorporated under United States laws; (C) any estate of which any executor or administrator is a U.S. Person; (D) any trust of which any trustee is a U.S. Person; (E) any agency or branch of a foreign entity located in the United States; (F) any non-discretionary account (other than an estate or trust) held by a dealer or other fiduciary for the benefit of a U.S. Person; (G) any discretionary account (other than an estate or trust) held by a dealer or other fiduciary incorporated or resident in the United States; and (H) any partnership or corporation organized or incorporated under the laws of any foreign jurisdiction and formed by a U.S. Person principally for the purpose of investing in unregistered securities (unless owned by accredited investors who are not natural persons, estates or trusts).  A “non-United States Person” means any person other than a United States Person.

 

  

2

  

 

PART II.                      INVESTMENT REPRESENTATIONS

 

	  	
To be completed by all Investors.

 

	
A.

	
Legal Structure of Investor (INDIVIDUALS SHOULD SKIP)

 

	
 

 

	
1.

 

	
The Investor has been duly formed and is validly existing and has full power and authority to invest in the Partnership.  The person signing on behalf of the undersigned has the authority to execute and deliver the Subscription Agreement on behalf of the Investor and to take other actions with respect thereto.

 

	
 

	
2.

	
Indicate the form of entity of the undersigned:

 

	  	  	o	
Limited Partnership

 

	  	  	o	
General Partnership

 

	  	  	x	
Corporation

 

	  	  	o	
Limited Liability Company

 

	  	  	o	
Revocable Trust (If the trust does not have $5 million in assets or if the trust was specifically formed for the purpose of this investment, identify each grantor and indicate under what circumstances the trust is revocable by the grantor.  Also indicate the category in Section B below that describes how each such grantor is qualified as an “Accredited Investor”):

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	
(Continue on a separate piece of paper, if necessary.)

 

	  	  	o	
Other type of Trust (indicate type of trust and, for trusts other than pension trusts, name the grantors and beneficiaries):

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	
(Continue on a separate piece of paper, if necessary.)

 

	  	  	o	
Other form of organization (indicate form of organization):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	
 

	
3.

	
The approximate date the undersigned entity was formed:

	
18 November 2008

	 	 	 	 
	
 

	
4.

	
State of principal place of business:

	
British Virgin Islands

	 	 	 	 
	
 

	
5.

	
Country of organization:

	
British Virgin Islands

  

3

  

	
B.

	
Verification of Status as an “Accredited Investor”

 

In order for the Partnership to offer and sell the Interests in conformity with state and federal securities laws, the following information must be obtained regarding your investor status.

 

If an INDIVIDUAL, please answer the following items:

 

	 	
o

True

 

	
o

False

	
(1)   The Investor is a natural person whose net worth, either individually or jointly with such Investor’s spouse, exceeds $1,000,000;

	 	
o

True

 

	
o

False

	
(2)   The Investor is a natural person who had an income in excess of $200,000, or joint income with such Investor’s spouse in excess of $300,000, in each of the two most recent years and reasonably expects to have income reaching the same level in the current year;

	 	
o

True

 

	
o

False

	
(3)   The Investor is a director, executive officer, or manager of the Company.

The term “net worth” means the excess of total assets over total liabilities.  In calculating “net worth,” the undersigned may include the estimated fair market value of the Investor’s principal residence as an asset.

 

In determining individual “income,” the Investor should (i) add to the Investor’s individual adjusted gross income (exclusive of any spousal income) any amounts attributable to tax exempt income received, losses claimed as a member in any limited partnership, deductions claimed for depletion, contributions to an IRA or Keogh retirement plan to the extent vested, alimony payments, and any amount by which income from long-term capital gains has been reduced in arriving at adjusted gross income and (ii) subtract from the Investor’s individual adjusted gross income any unrealized capital gain.

 

If NOT AN INDIVIDUAL (e.g. partnership, corporation, or limited liability company), please check each category that is applicable:

 

	
  x

	
(1)

	 	
The Investor is a corporation, a partnership, a limited liability company, a Massachusetts or similar business trust, or an organization described in Section 501(c)(3) of the Internal Revenue Code, not formed for the specific purpose of acquiring the Interest, with total assets in excess of $5,000,000;

 

	
o

	
(2)

	 	
The Investor is a bank as defined in Section 3(a)(2) of the Securities Act, or a savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act, whether acting in its individual or fiduciary capacity;

 

	
o

	
(3)

	 	
The Investor is a broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934;

 

	
o

	
(4)

	 	
The Investor is an insurance company as defined in Section 2(13) of the Securities Act;

 

	
o

	
(5)

	 	
The Investor is an investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act;

 

	
o

	
(6)

	 	
The Investor is a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958;

 

	
o

	
(7)

	 	
The Investor is a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, and such plan has total assets in excess of $5,000,000;

 

  

4

  

 

	
o

	
(8)

	 	
The Investor is an employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, and (i) the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or (ii) the employee benefit plan has total assets in excess of $5,000,000 or, (iii) if a self-directed plan, the investment decisions are made solely by persons that are accredited investors;

 

	
o

	
(9)

	 	
The Investor is a private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940;

 

	
o

	
(10)

	
 

	
The Investor is a manager of the Partnership;

 

	
o

	
(11)

	 	
The Investor is a trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Interest, whose purchase is directed by a sophisticated person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of investing in the Partnership;

 

	
o

	
(12)

	 	
The Investor is an entity in which all of the equity owners qualify under any of the above categories (including the categories for individuals listed in the immediately preceding section).  If the undersigned belongs to this investor category only, list the equity owners of the undersigned, and the investor category which each such equity owner satisfies:

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	
(Continue on a separate piece of paper, if necessary.)

 

 

	
C.

	
Verification of Status as an Employee Benefit Plan (SKIP IF AN INDIVIDUAL):

 

The undersigned is:

 

	 	
o

True

 

	
o

False

	
(1)   an employee benefit plan (as defined in section 3(3) of ERISA), whether or not it is subject to the provisions of Title I of ERISA; or

	 	
o

True

 

	
o

False

	
(2)   a plan described in section 4975(e)(1) of the Internal Revenue Code; or

	 	
o

True

	
o

False

	
(3)   an entity which is deemed to be a “benefit plan investor” under the Final Regulation of the Department of Labor, published in the Federal Register on November 13, 1986 (the “Final Regulation”) because its underlying assets include “plan assets” by reason of a plan’s investment in the entity (including, by way of example only, a partnership not qualifying as an operating company within the meaning of the Final Regulation, which is 25% or more owned by entities described in (1) or (2) above).

 

If the Investor is an Employee Benefit Plan (the “Plan”) within the meaning of Title I of the Employee Retirement Income Security Act of 1974:

 

	 	
o

True

	
o

False

	
The investment in the Partnership is a permitted investment under the documents and instruments governing the Plan.

  

5

  

THE UNDERSIGNED AGREES TO NOTIFY THE COMPANY IMMEDIATELY IF ANY  RESPONSE ABOVE BECOMES INACCURATE AT ANY TIME, INCLUDING ANY TIME FOLLOWING THE CLOSING.  If the undersigned is uncertain as to the correct response above, the undersigned should consult with its legal counsel in completing its response above, or should contact C. Parkinson Lloyd, Esq. at (801) 415-3000, counsel to the Company.

 

 

	
Executed on:  2 December 2008                                                                                                             

                                                                        Date

 

Oilcorp International Limited                                                                                                                 

                                                         Print Name of Investor

 

By /s/                                                                                                                                                          

                                                                      Signature

 

Ng Huat Tian, Director                                                                                                                            

                                               Print Name of Signatory and Title

 

WITNESS::   /s/                                                                                                                                         

                                                                       Signature

 

Koh Sui Ming                                                                                                                                            

                                                           Print Name of Witness

 

* * * * *

  

6

  

ANNEX A

 

The relevant section of Rule 13d-3 of the Securities and Exchange Act of 1934 as amended, as referred to in Section C of Part II of the Confidential Investor Questionnaire, provides:

 

(a)           ... “[a] beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares:

 

(1)           Voting power which includes the power to vote, or to direct the voting of, such security; and/or

 

(2)           Investment power which includes the power to dispose, or to direct the disposition of, such security.

 

(b)           Any person who, directly indirectly, creates or uses a trust, proxy, power of attorney, pooling arrangement or any other contract, arrangement, or device with the purpose or effect of divesting such person of beneficial ownership of a security or preventing the vesting of such beneficial ownership as part of a plan or scheme to evade the reporting requirements of Section 13(d) or 13(g) of the Act shall be deemed for purposes of such sections to be the beneficial owner of such security.

 

(c)           All securities of the same class beneficially owned by a person, regardless of the form which such beneficial ownership takes, shall be aggregated in calculating the number of shares beneficially owned by such person.

 

(d)           Notwithstanding the provisions of paragraphs (a) and (b) of this rule:

 

(1)           (i)    A person shall be deemed to be the beneficial owner of a security, subject to the provisions of paragraph (b) of this rule, if that person has the right to acquire beneficial ownership of such security within 60 days, including but not limited to any right to acquire:

 

(A)           through the exercise of any option, warrant or right;

 

(B)           through the conversion of a security;

 

(C)           pursuant to the power to revoke a trust, discretionary account, or similar arrangement; or

 

(D)           pursuant to the automatic termination of a trust, discretionary account or similar arrangement; provided, however; any person who acquires a security or power specified in paragraph (A), (B) or (C) above, with the purpose or effect of changing or influencing the control of the issuer, or in connection with or as a participant in any transaction having such purpose or effect, immediately upon such acquisition shall be deemed to be the beneficial owner of the securities which may be acquired through the exercise or conversion of such security or power.  Any securities not outstanding which are subject to such options, warrants, rights or conversion privileges shall be deemed to be outstanding for the purpose of computing the percentage of outstanding securities of the class owned by such person but shall not be deemed to be outstanding for the purpose of computing the percentage of the class by any other person.

 

(2)           A member of a national securities exchange shall not be deemed to be a beneficial owner of securities held directly or indirectly by it on behalf of another person solely because such member is the record holder of such securities and, pursuant to the rules of such exchange, may direct the vote of such securities, without instruction, on other than contested matters or matters that may affect substantially the rights or privileges of the holders of the securities to be voted, but is otherwise precluded by the rules of such exchange from voting without instruction.

  

 

  

 

(3)           A person who in the ordinary course of business is a pledgee of securities under a written pledge agreement shall not be deemed to be the beneficial owner of such pledged securities until the pledgee has taken all formal steps necessary which are required to declare a disposition of such pledged securities will be exercise, provided that: (i) the pledge agreement is ‘bona fide’ and was not entered into with the purpose nor with the effect of changing or influencing the control of the issuer, nor in connection with any transaction having such purpose or effect, including any transaction subject to Rule 13d-3(b); (ii) the pledgee is a person specified in Rule 13d-1(b)(1)(ii), including persons meeting the conditions set forth in paragraph (G) thereof; and (iii) the pledgee agreement, prior to default, does not grant to the pledgee:  (A) the power to vote or to direct the vote of the pledged securities; or (B) the power to dispose or direct the disposition of the pledged securities, other than the grant of such power(s) pursuant to a pledge agreement under which credit is extended subject to Regulation T and in which the pledgee is a broker or dealer registered under Section 15 of the Act.

 

(4)           A person engaged in business as an underwriter of securities who acquires securities through his participation in good faith in a firm commitment underwriting registered under the Securities Act of 1933 shall not be deemed to be the beneficial owner of such securities until the expiration of forty days after the date of such acquisition.

 

* * * * *

 

  

 

  

 

   

  SUBSCRIPTION AGREEMENT 

 

 

PRIVATE PLACEMENT OF SHARES OF SERIES A PREFERRED STOCK

OF

RENEWABLE FUEL CORP

a Nevada corporation

 

NEITHER THE SHARES OF PREFERRED STOCK NOR THE SHARES OF COMMON STOCK UNDERLYING THE PREFERRED STOCK (COLLECTIVELY, THE “SECURITIES”) REFERRED TO IN THIS SUBSCRIPTION AGREEMENT HAVE BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY OTHER JURISDICTION.  SUCH SECURITIES ARE BEING OFFERED AND SOLD IN RELIANCE UPON EXEMPTIONS PROVIDED BY THE SECURITIES ACT.

 

A PURCHASER OF SECURITIES SHOULD BE PREPARED TO BEAR THE ECONOMIC RISK OF THE INVESTMENT FOR AN INDEFINITE PERIOD OF TIME BECAUSE THE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OR THE LAWS OF ANY OTHER JURISDICTION, AND, THEREFORE, CANNOT BE SOLD UNLESS THEY ARE SUBSEQUENTLY REGISTERED OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE.  THE ISSUER IS NOT OBLIGATED TO REGISTER THE SECURITIES UNDER THE SECURITIES ACT OR THE LAWS OF ANY OTHER JURISDICTION.  INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

 

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THE OFFERING MATERIALS.  ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

 

 

CAREFULLY REVIEW AND FOLLOW THE INSTRUCTIONS

IMMEDIATELY BEHIND THIS COVER PAGE.

 

INCOMPLETE SUBSCRIPTION AGREEMENTS

AND CONFIDENTIAL INVESTOR QUESTIONNAIRES

WILL BE RETURNED TO SUBSCRIBERS FOR COMPLETION.

 

  

 

  

INSTRUCTIONS TO SUBSCRIBERS

 

In order to subscribe for shares of Series A Preferred Stock of Renewable Fuel Corp, a Nevada Corporation (the “Company”), please do the following:

 

1.             Please Read and Complete the Subscription Agreement in Its Entirety.  It contains certain statements and certain representations required to be made by each investor.  Complete, date and sign and have witnessed the two signature pages of the Subscription Agreement.

 

2.             Please Read and Complete the Confidential Investor Questionnaire.  The information is intended to establish among other things, whether you are an “accredited investor” within the meaning of the Securities Act of 1933, as amended.  Complete, date and sign and have witnessed the signature page of the Confidential Investor Questionnaire.

 

3.             Please Read and Complete the Appropriate Internal Revenue Service Form.  The Form W-9 (Request for Tax Identification Number and Certification) must be completed if you are a U.S. person, corporation, partnership, limited liability company, trust, or other entity.  If you are not a U.S. person, corporation, partnership, limited liability, trust or other entity, then please complete and return either Form W-8BEN (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding), Form W-8ECI (Certificate of Foreign Person’s Claim for Exemption From Withholding on Income Effectively Connected With the Conduct of a Trade or Business in the United States), Form W-8EXP (Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding) or Form W-8IMY (Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding), whichever is appropriate.  The information contained on these forms will be used by the Company in filing its U.S. federal, state and local income tax and information returns.

 

4.             Please Read the Confidential Term Sheet.  The Confidential Term Sheet provides important information about the offering and other information you should consider before subscribing to purchase shares of the Company’s securities.

 

5.             Return Documents.  Please return (a) the completed Subscription Agreement with two signed and witnessed signature pages, (b) the completed, signed and witnessed Confidential Investor Questionnaire, and (c) the completed and signed Form W-9, W-8BEN, W-8ECI, W-8EXP or W-8IMY, which ever is appropriate, to:

 

C. Parkinson Lloyd, Esq.

c/o Durham Jones & Pinegar

111 East Broadway

Suite 900

Salt Lake City, UT 84111

Telephone:   (801) 415-3000

Facsimile:   (801) 415-3500

Email:   plloyd@djplaw.com

  

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FOLLOWING REVIEW OF THE SUBSCRIPTION AGREEMENT, QUESTIONNAIRES AND ATTACHMENTS, WHERE APPLICABLE, BY DURHAM JONES & PINEGAR, THE SUBSCRIPTION AGREEMENT WILL BE FORWARDED TO THE PRESIDENT OF THE COMPANY FOR ACCEPTANCE IN THE SOLE DISCRETION OF THE COMPANY.

 

INCOMPLETE SUBSCRIPTION AGREEMENTS WILL BE RETURNED TO SUBSCRIBERS FOR COMPLETION.

 

6.             Wire Transfer Instructions.  Please arrange for a wire of immediately available funds in the amount of your initial capital contribution on the date of the Closing (as defined in Section 0 of the Subscription Agreement) into the Company’s bank account in accordance with the following wire transfer instructions:

 

	  	
Account Name:

	
Renewable Fuel Corp

	  
	 	 	 	 
	  	
Reference:

	
[Insert Name of Subscriber]

	  
	 	 	 	 
	  	
Bank:

	
CitiBank

	  
	 	 	 	 
	  	
Account Number:

	  	  
	 	 	 	 
	  	
ABA/Transit No.:

	  	  

 

7.             Questions.  If you have questions about completing the Subscription Agreement, please contact C. Parkinson Lloyd, Esq. of Durham Jones & Pinegar, legal counsel for the Company, at (801) 415-3000.

 

ALL INFORMATION SHOULD BE TYPED OR PRINTED IN INK.

ANY CORRECTIONS MUST BE INITIALED.

 

PLEASE NOTIFY THE COMPANY IMMEDIATELY IF THE INFORMATION YOU SUPPLY BECOMES INACCURATE AT ANY TIME, INCLUDING ANY TIME FOLLOWING THE CLOSING.

 

  

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RENEWABLE FUEL CORP

a Nevada corporation

 

SUBSCRIPTION AGREEMENT

 

	
TO: 

	
Renewable Fuel Corp

	 	

c/o Durham Jones & Pinegar, P.C.

	 	111 East Broadway, Suite 900
	 	Salt Lake City, Utah 84111
	 	Attn:    C. Parkinson Lloyd, Esq.

 

Ladies and Gentlemen:

The undersigned subscribing investor (the “Investor” or the “undersigned”) understands that (a) Renewable Fuel Corp, a newly formed Nevada corporation (the “Company”), has been formed pursuant to Nevada corporate law, and (b) the Company is offering shares of its Series A Convertible Preferred Stock (the “Shares”) to certain qualified investors, at a per share price of $10.00 per share.  The undersigned has been provided with the final Confidential Term Sheet (the “Term Sheet”) as set forth in Appendix A, as well as the Certificate of Designation of Rights and Preferences of the Series A Preferred Stock (the “Certificate of Designation”).  Capitalized terms used but not defined in this Subscription Agreement (the “Subscription Agreement”) shall have the respective meanings given them in the Term Sheet or the Certificate of Designation, as applicable.

 

1.             Subscription.  Subject to the terms and conditions hereof, the undersigned hereby tenders this subscription (the “Subscription”) in the amount set forth on the undersigned’s signature page hereto or such lesser amount as the President of the Company shall choose to accept pursuant to Section 2 below.  By signing below, the undersigned acknowledges and agrees to the terms, conditions, rights, and preferences of the Series A Preferred Stock as set forth in the Certificate of Designation.

 

2.             Acceptance of Subscription.  It is understood and agreed that this Subscription Agreement is made subject to the following terms and conditions:

 

(a)           The President of the Company shall have the right to accept or reject this Subscription, in whole or in part, in its sole and absolute discretion.  This Subscription shall be deemed to be accepted and in the amount stated by the President of the Company when signed by the President of the Company.  If the President of the Company chooses to accept only part of the Subscription amount, then the President of the Company shall be authorized to revise the amount indicated as the Subscription on the undersigned’s signature page to this Subscription Agreement and shall notify the undersigned in writing of such revision promptly after the Closing.

  

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3.             Closing; Conditions to Closing.

 

(a)           Time and Place of Closing.  The closing of the sale and purchase of the undersigned’s Shares (the “Closing”) shall take place at the offices of the Company on such date and at such time as shall be selected by the President of the Company (the “Closing Date”).

 

(b)           Undersigned’s Conditions to Closing.  The undersigned’s obligations hereunder are subject to the fulfillment, prior to or at the Closing, of each of the following conditions:

 

(i)           The Company’s acceptance of the undersigned’s Subscription.

 

(c)           Company’s Conditions to Closing.  The Company’s obligations hereunder are subject to acceptance by the President of the Company of the undersigned’s Subscription, and to the fulfillment, prior to or at the Closing, of each of the following conditions:

 

(i)           The representations and warranties of the undersigned contained in this Subscription Agreement shall be true and correct at the Closing.

 

(ii)           All proceedings in connection with the transactions contemplated hereby and all documents and instruments incident to such transactions shall be satisfactory in substance and form to the Company and Durham Jones & Pinegar, its counsel, and the Company and its counsel shall have received all such counterpart originals or certified or other copies of such documents as the Company may reasonably request.

 

(d)           Subscription Amount Payable at Closing.  The undersigned’s Subscription Amount shall be due and payable at the Closing.

 

4.             Representations, Warranties, and Agreements of the Company.  The Company represents, warrants and agrees as follows:

 

(a)           The Company is duly and validly organized and validly existing as a corporation under the laws of the State of Nevada, and has all requisite power and authority under its Articles of Incorporation, as amended, and such laws to conduct its business as described in the Articles of Incorporation.

 

(b)           The Company is not in violation of any term of its Articles of Incorporation or Bylaws or this Subscription Agreement nor is it in material violation of any term of any other mortgage, indenture, contract, agreement, instrument, judgment, decree, order, statute, rule or regulation which is applicable or to which it is bound.

 

(c)           Neither the execution and delivery of this Subscription Agreement or any other agreement or document contemplated hereby or thereby, nor the offer, issuance or sale of the Shares, requires any consent, approval or authorization from, or filing, registration or qualification with, any federal, state or local governmental or regulatory authority in the United States (including, without limitation, registration under the Securities Act of 1933, as amended (the “Securities Act”)) on the part of the Company, except for compliance by the Company with Regulation D (“Regulation D”) promulgated under the Securities Act and the requirements of any applicable state securities (“Blue Sky”) laws, all of which filings required to be made prior to the Closing have been or will have been made.

  

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(d)           There are no actions, proceedings or investigations pending or threatened against the Company (or any basis therefor known to the Company).

 

(e)            If Oilcorp International Limited (“Oilcorp”) chooses to take advantage of the Debt Conversion under the terms of the Series A Preferred Stock as set forth in the Certificate of Designation, the Company covenants and agrees to grant to Oilcorp a second position security interest (the “Second Position Security Interest”) in the Biodiesel production plant at Gebeng Industrial Park, Kuantan, Pahang (the “Plant”), and the Company shall take all steps necessary to secure and perfect Oilcorp’s security interest in the Plant;  provided, however, that once the Debt Amount (as defined in the Certificate of Designation) has been either (i) repaid in full or (ii) converted into shares of the Company’s common stock as outlined in the Certificate of Designation, the Second Position Security Interest shall be terminated and released and shall be of no further force and effect.

 

(f)            All other terms of the Term Sheet agreed between the parties, if not otherwise set forth in the Certificate of Designation or this Subscription Agreement, shall become binding on the Parties upon (a) the signature of this Subscription Agreement by Oilcorp and (b) the acceptance of the subscription by the Company.

 

5.             Representations, Warranties, and Agreements of the Undersigned.  The undersigned hereby represents and warrants to the Company as follows:

 

(a)           The undersigned either (i) is an “accredited investor” within the meaning of Securities and Exchange Commission (“SEC”) Rule 501 of Regulation D, as presently in effect, or (ii) (A) certifies that the undersigned is not a “U.S. person” within the meaning of SEC Rule 902 of Regulation S, as presently in effect, and that the undersigned is not acquiring the Shares for the account or benefit of any U.S. person, (B) agrees to resell the Shares only in accordance with the provisions of Regulation S, pursuant to registration under the Securities Act, or pursuant to an available exemption from registration and agrees not to engage in hedging transactions with regard to such Shares unless in compliance with the Securities Act, (C) agrees that any certificates, if any, for the Shares issued to the undersigned shall contain a legend to the effect that transfer is prohibited except in accordance with the provisions of Regulation S, pursuant to registration under the Securities Act or pursuant to an available exemption from registration and that hedging transactions involving such Shares may not be conducted unless in compliance with the Securities Act, and (D) agrees that the Company is hereby required to refuse to register any transfer of any portion of the Shares issued to the undersigned not made in accordance with the provisions of Regulation S, pursuant to registration under the Securities Act, or pursuant to an available exemption from registration.

 

(b)           The Shares are being acquired for the undersigned’s own account for investment, with no intention of distributing or selling any portion thereof and not with a view to any distribution thereof within the meaning of the Securities Act, and will not be transferred by the undersigned in violation of the Securities Act or the then applicable rules or regulations thereunder.  No one other than the undersigned has any interest in or any right to acquire the Shares.

  

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(c)           By reason of the undersigned’s business or financial experience, or that of the undersigned’s professional advisor, the undersigned is capable of evaluating the merits and risks of an investment in the Company and of protecting its own interests in connection with the transaction.

 

(d)           The undersigned has received and carefully read and understands the Confidential Term Sheet, this Subscription Agreement, and the Confidential Investor Questionnaire.

 

(e)           No representations or warranties have been made to the undersigned by the Company or any agent of said persons or entities, other than as set forth herein.

 

(f)           The undersigned has been afforded an opportunity to ask questions of and receive answers satisfactory to the undersigned from the Company concerning the Company, and the Company has made available all additional information which the undersigned has requested.

 

(g)           The undersigned has not relied upon any offering material or literature other than the Confidential Term Sheet, the Confidential Investor Questionnaire, and written information (if any) furnished or made available by the Company.

 

(h)           The address set forth on the signature page hereto is the undersigned’s true and correct residence, if an individual, or principal place of business, if an entity other than an individual.

 

(i)           The undersigned has investigated the acquisition of the Shares to the extent the undersigned deemed necessary or desirable, and the Company has provided the undersigned with any assistance it has requested in connection therewith.

 

(j)           The undersigned has full power and authority to make the representations referred to in this Subscription Agreement, to purchase the Shares, to deliver and pay the Subscription Amount, and to comply with the terms of this Subscription Agreement.

 

(k)           The undersigned acknowledges and is aware of the following:

 

(i)           An investment in the Company is speculative and involves a high degree of risk of loss.

 

(ii)           The Shares have not been registered under the Securities Act or any state securities laws, and the transfer thereof is restricted by the Securities Act, and applicable state securities laws.  The Shares will not be, and the undersigned will have no rights to require that the Shares be, registered under the Securities Act.  There will be no public market for the Shares, the undersigned may not be able to avail itself of the provisions of Rule 144 of the Securities Act with respect to the Shares, and, the undersigned may have to hold the Shares acquired indefinitely.

  

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(iii)           No state or federal agency has made any finding or determination as to the fairness of the terms of the offering and sale of the Shares.

 

(l)           The execution and delivery of this Subscription Agreement, the Confidential Investor Questionnaire, and any other document contemplated hereby or thereby, the consummation of the transactions contemplated hereby and thereby, and the performance of the undersigned’s obligations hereunder and thereunder, will not conflict with, or result in any violation of or default under, any provision of any charter, by-laws, trust agreement, partnership agreement or other governing instrument applicable to the undersigned, or any agreement or other instrument to or by which the undersigned or the properties of the undersigned is a party or may be bound.

 

(m)           If executing this Subscription Agreement in a representative or fiduciary capacity on behalf of the person, partnership, trust, estate, corporation, or other entity for whom the undersigned is acting in this matter, that such person, partnership, trust, estate, corporation or other entity has full right and power to execute, deliver, and perform this Subscription Agreement, and to become a shareholder of the Company, and that each of the representations contained in this Subscription Agreement are true and accurate with respect to such person, partnership, trust, estate, corporation or other entity.

 

(n)           The acceptance of the undersigned’s Subscription Agreement together with the appropriate remittance in the form of the Subscription Amount will not breach any applicable money laundering rules and regulations and the undersigned undertakes to provide verification of its identity reasonably satisfactory (on a confidential basis), to the Company and/or any entity acting on the Company’s behalf in respect of the acceptance of subscriptions, promptly on request.

 

(o)           The undersigned understands that due to money laundering requirements operating within their respective jurisdictions, the Company, and any entity acting on the Company’s behalf, may require further identification of the undersigned before this Subscription Agreement can be processed.  The undersigned agrees that the Company shall be held harmless and indemnified by the undersigned against any loss arising from the failure to process this Subscription Agreement if such information as has been required from the undersigned has not been provided by the undersigned.

(p)           THE UNDERSIGNED UNDERSTANDS THAT THE LEGAL AND ECONOMIC MATTERS RELATING TO ITS INVESTMENT IN THE COMPANY ARE COMPLEX AND THAT THE UNDERSIGNED IS FREE TO SEEK INDEPENDENT PROFESSIONAL GUIDANCE OR COUNSEL WITH RESPECT THERETO.  THE UNDERSIGNED HAS EITHER SOUGHT SUCH ADVICE OR COUNSEL OR DETERMINED, AFTER CAREFULLY READING THE CONFIDENTIAL TERM SHEET, THIS SUBSCRIPTION AGREEMENT, AND THE OTHER DOCUMENTS AND AGREEMENTS CONTEMPLATED HEREBY AND THEREBY, TO FOREGO SUCH ADVICE.  THE UNDERSIGNED ACKNOWLEDGES THAT COUNSEL TO THE COMPANY IS NOT ACTING AS COUNSEL TO THE UNDERSIGNED.

  

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(q)           THE UNDERSIGNED IS NOT RELYING UPON ANY WRITTEN OR ORAL REPRESENTATION OR ADVICE FROM THE COMPANY, THE OFFICERS OR DIRECTORS OF THE COMPANY, OR ANY OF THEIR RESPECTIVE AGENTS OR REPRESENTATIVES, WITH RESPECT TO (i) ANY LEGAL, TAX, ECONOMIC OR OTHER CONSIDERATIONS INVOLVED IN THE UNDERSIGNED’S INVESTMENT IN THE COMPANY, OR (ii) THE MEANING OR EFFECT OF ANY TERMS OR CONDITIONS OF THIS SUBSCRIPTION AGREEMENT OR ANY OTHER DOCUMENT OR AGREEMENT CONTEMPLATED HEREBY OR THEREBY.

 

(r)           The undersigned has completed the attached Confidential Investor Questionnaire, which is incorporated herein and made a part hereof, and that the information contained therein is complete and accurate as of the date hereof and shall be accurate as of the date of the Closing.

 

(s)           In the event Oilcorp chooses to take advantage of the Debt Conversion as outlined in the Certificate of Designation, Oilcorp agrees to release and terminate that the Second Position Security Interest in the Biodiesel production plant at Gebeng Industrial Park, Kuantan, Pahang (the “Plant”) interest in the Plant once the Debt Amount (as defined in the Certificate of Designation) has been either (i) repaid in full or (ii) converted into shares of the Company’s common stock as outlined in the Certificate of Designation above.

 

(t)           All other terms of the Term Sheet agreed between the parties, if not otherwise set forth in the Certificate of Designation or this Subscription Agreement, shall become binding on the Parties upon (a) the signature of this Subscription Agreement by Oilcorp and (b) the acceptance of the subscription by the Company.

 

The foregoing representations and warranties are true and accurate as of the date hereof and shall be true and accurate as of the date of Closing and shall survive such date.  If in any respect such representation and warranties shall not be true and accurate prior to Closing, the undersigned shall give immediate notice of such fact to the Company at c/o Durham Jones and Pinegar, 111 East Broadway, Suite 900, Salt Lake City, UT 84111 (Fax: (801) 415-3500), Attn: C. Parkinson Lloyd, Esq., by facsimile or telegram with written confirmation of receipt, specifying which representations and warranties are not true and accurate and the reasons therefor.

 

6.             Indemnification.  The undersigned acknowledges that the undersigned understands the meaning and legal consequences of the representations and warranties made by the undersigned herein and in the attached Confidential Investor Questionnaire and that the Company is relying on such representations and warranties in making its determination to accept or reject this Subscription.  The undersigned hereby agrees to indemnify and hold harmless the Company, its agents, and each director, officer or employee of the Company from and against any and all loss, damage or liability due to or arising out of a breach of any such representation or warranty of the undersigned.

 

  

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7.             Time; No Revocation.  Time shall be of the essence in this Subscription Agreement.  The undersigned agrees that this Subscription Agreement and any agreement of the undersigned made hereunder is irrevocable, and that this Agreement shall survive the death or legal incapacity of the undersigned.

 

8.             Notices.  All notices or other communications given or made hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed telex or facsimile if sent during normal business hours of the recipient, if not, then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt, if addressed to the Company, 7251 West Lake Mead Blvd, Suite 300, Las Vegas, Nevada, 89128, Attn: Richard Henderson, or to the undersigned at the address set forth on the signature page hereto, or at such other place as a party may designate by written notice to the other party in accordance with this Section 8.

 

9.             Survival of Agreements, Representations and Warranties.  All agreements, representations and warranties contained herein or made in writing by or on behalf of a party hereto in connection with the transactions contemplated by this Subscription Agreement shall survive the execution and delivery of this Subscription Agreement, any investigation at any time made by any party, and the sale and purchase of the undersigned’s Shares of the Company’s common stock and payment therefor.

 

10.           Modification or Termination.  Neither this Subscription Agreement nor any provisions hereof shall be waived, modified, discharged or terminated except by an instrument in writing signed by the party against whom any waiver, modification, discharge or termination is sought; provided, however, that if this Subscription is rejected in full by the Company, then this Subscription Agreement shall be null and void and of no further force and effect, and no party shall have any rights against any other party hereunder, and the Company shall promptly return or cause to be returned to the undersigned this Subscription Agreement.

 

11.           Successors and Assigns.  This Subscription Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.  If the undersigned is more than one person, their obligations shall be joint and several, and the agreements, representations, warranties and acknowledgments herein contained shall be deemed to be made by and be binding upon each such person and its successors and assigns.  Notwithstanding the foregoing, this Subscription Agreement is not transferable or assignable by the undersigned and any such attempted transfer or assignment shall be null and void.

 

12.           Complete Agreement of the Parties.  This Subscription Agreement and the other agreements or documents referred to herein or therein contain the entire agreement of the parties, and there are no representations, covenants or other agreements except as stated or referred to herein and in such other agreements or documents.

 

13.           Severability.  Any term or provision of this Subscription Agreement that is invalid or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms or provisions of this Subscription Agreement or affecting the validity or enforceability of any of the terms or provisions of this Subscription Agreement in any other jurisdiction.

  

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14.           Counterparts.  This Subscription Agreement may be executed in any number of counterparts, each of which shall be an original but all of which taken together shall constitute one agreement.

 

15.           Governing Law.  This Agreement shall be governed by and construed under the laws of the State of Nevada as applied to agreements among US residents entered into and to be performed entirely within the United States.

 

16.           General.  Signatures transmitted by facsimile shall be effective and binding as if an original.  By executing the signature page to this Subscription Agreement, the undersigned agrees to be bound by the foregoing.

 

[SIGNATURES TO FOLLOW]

 

 

 

 

 

8

 

 

RENEWABLE FUEL CORP

a Nevada corporation

 

SUBSCRIPTION AGREEMENT

SIGNATURE PAGE

 

 

	
Very truly yours,

 

 

                 Oilcorp International Limited                                                                        

Print Subscriber’s Full Legal Name

 

                 /s/                                                                                                                       

Signature

 

                 Ng Huat Tian, Director                                                                                   

Print Title of Signatory

(if applicable)

 

                                                                                                                                            

Social Security Number or Federal Employer Identification Number

 

                 (603) 7804 4843                                                                                                 

Telephone Number

 

                 (603) 7804 6212                                                                                                 

Facsimile Number

                                                                                                         

                                                                                                                                            

Email Address

 

Residence Address:

                                                                                                          

                                                                                                         

                                                                                                         

 

 

Mailing Address (if different):

                                                                                                                                             

                                                                                                                                             

                                                                                                                                             

 

	  	
SUBSCRIPTION AMOUNT:

 

US$ 22,111,664                                                                                   

 

 

NUMBER OF PREFERRED SHARES: 2,211,166                          

 

Dated: December 2nd, 2008

 

 

WITNESSED:          /s/                                                                          

                                                 Signature

 

                 Koh Sui Ming                                                                       

                                Print Witness’ Full Legal Name

 

 

                                                                                                                  

                                Print Witness’ Full Legal Name

 

 

 

 

	  	  	  

  

 

  

RENEWABLE FUEL CORP

a Nevada corporation

 

ACCEPTANCE

 

Renewable Fuel Corp, a Nevada corporation (the “Company”), hereby accepts the above Subscription Agreement and Investor’s Subscription to acquire shares of the Company’s Series A Preferred Stock in the amounts set forth below, upon the terms and conditions of the Subscription Agreement to which this Acceptance is attached and of which it is a part.

 

	  	
ACCEPTED BY:

	  	  	  
	  	
RENEWABLE FUEL CORP

	  	
a Nevada corporation

	  	  	  
	  	  	  
	  	
By:

	
/s/ William Van Vliet

	  	  	
William Van Vliet

	 	 02 December 2008

 

 

	  	
WITNESS:

	
/s/ Cho Nam Sang

	  
	  	
Name:  Cho Nam Sang

	  

 

 

Subscription Accepted:

 

Per share price = $10.00 per Preferred Share

 

Number of Preferred Shares: 2,211,166                                                                      

 

Subscription Amount: $22,111,664                                                                            

 

 

 

 

 

APPENDIX A

 

FINAL TERM SHEET

 

  

  

  

THIS DOCUMENT IS NOT TO BE CONSIDERED A SOLICITATION TO BUY OR SELL ANY SECURITY. THE TERMS OUTLINED ARE SUMMARY IN NATURE, AND ANY AGREEMENT MUST BE REFLECTED IN ONE OR MORE COMPREHENSIVE AND LEGALLY BINDING DOCUMENTS. THE PROPOSED TRANSACTION IS ALSO SUBJECT TO DUE DILIGENCE PROCEDURES.

 

Oilcorp Berhad/

Renewable Fuel Corp

CONFIDENTIAL TERM SHEET

Proposed Private Placement Purchase of up to

$22,111,664

Regulation D Offering of Restricted Series A Convertible Preferred Stock

of

Renewable Fuel Corp, a Nevada corporation

 

	
CLOSING DATE:

	
The date on which Oilcorp Berhad (the “Investor”) and Renewable Fuel Corp (the “Company”) enter into definitive securities purchase documents.

 

	
SECURITIES OFFERED:

	
Series A Convertible Preferred Stock of the Company pursuant to the terms set forth herein.

 

	
PURCHASE PRICE;

	  
	
PAYMENT

	
The aggregate purchase price shall be $22,111,664 (the “Investment Amount”).  Investor shall have the right to pay the Investment Amount in cash or through conversion of existing obligations of the Company at the same price per share as cash, at the sole discretion of the Company.

 

	
CONVERTIBLE

	  
	
INSTRUMENT:

	
$22,111664 aggregate purchase price of the Series A Convertible Preferred Stock (the “Preferred Stock”) of the Company, at a per share price of $10.00 per share.  The Conversion Price for conversion either into Common Stock or debt (as described below) of the Preferred Stock is $1.00.

 

	
AUTOMATIC

	  
	
CONVERSION:

	
If, at any time during the twelve months following the purchase of the Preferred Stock (the “Initial Conversion Period”), the Company’s common stock begins trading on a stock exchange, market, or other trading facility, the issued and outstanding Preferred Stock will immediately convert, on a one (1) share of Preferred Stock for ten (10) shares of common stock basis, into shares of common stock.

  

  

  

 

	  	
Following the Initial Conversion Period and until such time as the Preferred Stock has been converted into debt (as described immediately below) (the “Subsequent Conversion Period”), if the Company’s common stock begins trading on a stock exchange, market, or other trading facility, the issued and outstanding Preferred Stock will immediately convert, on a one (1) share of Preferred Stock for ten (10) shares of common stock basis, into shares of common stock.

 

	
OPTIONAL

	  
	
CONVERSION:

	
At any time following the Initial Conversion Period, provided that Company’s common stock is not trading on a stock exchange, market, or other trading facility resulting in the automatic conversion as described above, the Investor shall have the right, but not the obligation, to convert all, but not less than all, of the shares of Preferred Stock into a debt obligation (the “Debt Amount”) of the Company (the “Debt Conversion”).  If the Investor chooses to take advantage of the Debt Conversion, the Company will pay interest on the principal amount of the debt at a rate of 8%, payable quarterly in arrears, by issuing shares of the Company’s common stock at a conversion/purchase rate of $1.00 per share.

 

	  	
If the Investor chooses to take advantage of the Debt Conversion, the Investor shall have the right to receive from the Company fifty percent (50%) of the Company’s Net Income After Taxes (as defined in the Company’s annual audited financial statements) until the full amount of the Debt Amount has been repaid or until the Company’s common stock begins trading on a stock exchange, market, or other trading facility, at which time the remaining outstanding Debt Amount shall automatically convert into shares of the Company’s common stock at a conversion price of $1.00.

 

	
SECURITY INTEREST:

	
If the Investor chooses to take advantage of the Debt Conversion, the Company shall grant to the Investor a second position security interest (the “Second Position Security Interest”) in the Biodiesel production plant at Gebeng Industrial Park, Kuantan, Pahang (the “Plant”), and the Company shall take all steps necessary to secure and perfect Oilcorp’s security interest in the Plant;  provided, however, that once the Debt Amount (as defined above) has been either (i) repaid in full or (ii) converted into shares of the Company’s common stock as outlined above, the Second Position Security Interest shall be terminated and released and shall be of no further force and effect.

  

  

  

 

	
INTEREST:

	
Eight percent (8%) interest payable quarterly in arrears in shares of common stock of the Company, on the terms set forth below.  Interest shall be not be payable during the Initial Conversion Period, and shall begin to accrue during the Subsequent Conversion Period, commencing on the first anniversary of the closing of the purchase of the Preferred Stock, unless such Preferred Stock has been converted into shares of the Company’s common stock, as set forth below.  Assuming no conversion has taken place, beginning on the first anniversary of the purchase of the Preferred Stock, the Company will pay 8% on the outstanding unconverted and unpaid balance of the Investment.

	  	  
	  	
As noted above, if the Investor chooses to take advantage of the Debt Conversion, the Company will pay interest on the principal Debt Amount at a rate of 8%, payable quarterly in arrears, by issuing shares of the Company’s common stock at a conversion/purchase rate of $1.00 per share.  If the Investor does not choose the Debt Conversion, the Company will pay interest on the Investment Amount at a rate of 8%, payable quarterly in arrears, by issuing shares of the Company’s common stock at a conversion/purchase rate of $1.00 per share.

	  	  
	
CONVERSION

	  
	
PRICE:

	
The Preferred Stock will be convertible into shares of the Company’s common stock (upon an Automatic Coversion) or debt (upon an Optional Conversion) at a conversion price of $1.00.

 

	
CONDITIONS

	  
	
TO CLOSING:

	
Closing is subject to conditions precedent including the following:

 

	  	
(1) satisfactory completion of legal, accounting, IP, and other due diligence;

 

	  	
(2) approval by a majority of the shareholders of Oilcorp Berhad, if required.

 

	  	
(3) full implementation of the Company’s Stock Option program for key employees of the Company.

 

  

  

  

 

	
CONFIDENTIALITY:

	
Except as required by law or regulation, the contents of this Term Sheet , or the fact that one has been issued, will not be publicly disclosed (in forms such as press releases, public filings, etc.) without the prior permission of Oilcorp Berhad.

 

	
OTHER TERMS:

	
As required by the Investors, the definitive transaction agreements may contain other terms not specified above that are agreed to by the Company.

 

	  	
The offering is also subject to the negotiation and execution of definitive legal documentation, the terms of which may vary from the terms of this Term Sheet and the satisfactory due diligence investigation of the Investors.  The Investor, alone or together with its counsel or advisors, should review such documentation for itself. The terms of such final documentation will represent all of the agreements between the Company and the Investors.

ACCEPTED AND AGREED TO

this 2nd day of December, 2008.

OILCORP BERHAD

 

 

By:  /s/

Name: Ng Huat Tian

Title:  Director

RENEWABLE FUEL CORP

By: /s/ William VanVliet

Name: William Van Vliet

Title:  Chairman

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