Document:

exv10w2

 

Exhibit 10.2

Agreement for Phase 2 Services

and

Statement of Intent

between

Victory Renewable Fuels, LLC

and

Renewable Energy Group, LLC

WHEREAS, Victory Renewable Fuels, LLC (Victory Renewable Fuels) has made a commitment to
develop a Biodiesel Plant and is diligently developing a business plan that will move this project
forward, and

WHEREAS, Renewable Energy Group, LLC (“REG”) was formed to provide turn-key engineering and
construction (design-build) services for biodiesel facilities,

NOW THEREFORE, IT IS AGREED by and between Victory Renewable Fuels and REG as follows:

	 	1.	 	In recognition of REG’s expertise and technical assistance capabilities, Victory
Renewable Fuels will retain REG to complete Phase 2 services, including the following:

	 	A.	 	The design development documents which further define the concepts
developed in Phase 1. The scope of Phase 2 includes design work necessary to fix
the size and character of the project, establish dimensional relationships,
define electrical and mechanical systems and requirements, establish
infrastructure and utility requirements, and identify and define other essential
elements of the project. This includes but is not necessarily limited to:

	 	•	 	Site plan including roads and rail spur(s)
	 
	 	•	 	Site grading and drainage plan
	 
	 	•	 	Process flow diagrams (PFDs)
	 
	 	•	 	General arrangement (GA) drawings
	 
	 	•	 	Technical specifications
	 
	 	•	 	A 3-D color rendering of the project

	 	B.	 	The Design-Build Construction Agreement.

					
	 	 	 	 	 
	 
	 	 	 	406 First Street
	 
	 	 	 	PO Box 68
	 
	 	 	 	Ralston, IA 51459
	 
	 	CONFIDENTIAL
	 	(712) 667-3500
	 
	 	 	 	Fax(712) 667-3599
	Page 1 of 3
	 	 	 	www.renewable-energy-group.com

 

 

	 	C.	 	The Design-Build construction schedule. The schedule shall show the
interrelationship of activities in order to meet Victory Renewable Fuels desired
project completion date.
	 
	 	D.	 	Final Contract Price
	 
	 	E.	 	Assistance with permitting.
	 
	 	F.	 	Cash flow projections.
	 
	 	G.	 	Assist in the presentation of the completed plan to potential investors and lenders.

	2.	 	In consideration of REG’s agreement to provide the foregoing services, Victory
Renewable Fuels agrees to pay the sum of $300,000, in three installments: 1) 1/3 upon
signing this agreement, 2) 1/3 in 30 days and 3) 1 /3 in 60days. If Victory Renewable
Fuels proceeds ahead with the construction of a biodiesel facility REG agrees that the
foregoing $300,000 payment shall be credited against the cost of such facilities. Travel
and subcontractor expenses that are incurred in order to complete this Agreement will be
treated as reimbursable expenses and billed separately at cost plus a markup of ten
percent (10%).
	 
	3.	 	The foregoing sets out the agreement with respect to Phase 2 Services to be
provided by REG to Victory Renewable Fuels. Phase 3 of the project is final
design and construction. It is Victory Renewable Fuels’ intent that the
services to be rendered under Phase 3 be awarded to REG, the parties agreeing
in good faith to negotiate, agree to and execute definitive agreements and
contacts relating to the engineering and construction of a biodiesel facility.
Furthermore, it is Victory Renewable Fuels’ intent to enter into a Management
and Operations Services Agreement with West Central Cooperative.
	 
	4.	 	Any and all designs, plans, specifications, processes and other engineering or technical
information or data which are delivered to Victory Renewable Fuels in connection with this
Agreement (“Confidential Information”) are confidential and proprietary to REG and shall
at all times remain the sole and exclusive property of REG. Victory Renewable Fuels shall
not directly or indirectly be permitted, nor shall Victory Renewable Fuels permit any
other party, to use, transfer, assign, disclose, divulge or publish any such Confidential
Information to any third party for any reason or purpose whatsoever without the prior
written consent of REG. Victory Renewable Fuels may disseminate Confidential Information
to such of its employees, agents and representatives (“Consultants”) as may need to know
to aid Victory Renewable Fuels in analyzing for the purposes as set out above, but not
until such Consultants are aware of these provisions with respect to confidentiality, the
need to prevent further dissemination of Confidential Information shall be returned to REG
at its request.

					
	 	 	 	 	 
	 
	 	 	 	406 First Street
	 
	 	 	 	PO Box 68
	 
	 	 	 	Ralston, IA 51459
	 
	 	CONFIDENTIAL
	 	(712) 667-3500
	 
	 	 	 	Fax(712) 667-3599
	Page 2 of 3
	 	 	 	www.renewable-energy-group.com

 

 

This agreement shall not be construed to convey any rights in REG’s intellection properties,
including intellectual properties included in or related to the Confidential Information. Victory
Renewable Fuels may acquire only such rights in these intellectual properties as may be conveyed
under the terms of further construction agreements entered into between the parties, if any.

     Entered into as of the 17 day of Jan., 2005.

	 	 	 	 	 	 	 	 	 	 	 
	CUSTOMER:	 	 	 	DESIGN-BUILD SERVICES PROVIDER:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	VICTORY RENEWABLE FUELS, LLC	 	 	 	RENEWABLE ENERGY GROUP, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By

	 	/s/ Allen L. Blauwet
 

	 	 
	 	By
	 	/s/ Myron Danzer
 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Print Name Allen L. Blauwet	 	 	 	Print Name Myron Danzer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Print Title Chairman	 	 	 	Print Title Sales/Production Manager	 	 

[Handwritten: It is understood that REG has agreed that it will provide all normal
Phase 2 services to Victory Renewable Fuels for the sum of $150,000.—  Furthermore it
is agreed by and between REG and Victory Renewable Fuels that the additional $150,000.—
provided by VRF under this contract will provide for additional engineering by REG in
excess of the basic Phase 2 agreement.

	 	 	 	 	 	 	 	 	 	 	 
	Victory Renewable Fuels LLC	 	 	 	Renewable Energy Group LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By

	 	/s/ Allen L. Blauwet Chairman
 

	 	 	 	By
	 	Myron Danzer
 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Jan. 17, 2006
	 	 	 	 	 	Jan. 20, 2006]	 	 

					
	 	 	 	 	 
	 
	 	 	 	406 First Street
	 
	 	 	 	PO Box 68
	 
	 	 	 	Ralston, IA 51459
	 
	 	CONFIDENTIAL
	 	(712) 667-3500
	 
	 	 	 	Fax(712) 667-3599
	Page 2 of 3
	 	 	 	www.renewable-energy-group.comexv10w3

 

Exhibit 10.3

OPTION TO PURCHASE

     This Agreement is between Thadd D. Knoblock and Wendy S. Knoblock, husband and wife, Trent
L. Knoblock and Heather M. Knoblock, husband and wife, Troy J. Knoblock and Donna M. Knoblock,
husband and wife, and Travis R. Knoblock and Kathy S. Knoblock, husband and wife, hereinafter
referred to as First Parties and Victory Renewable Fuels LLC, hereafter referred to as Second
Party:

     WHEREAS, First Parties are the owners of the following described real estate:

That part of the Southwest Quarter (SW 1/4) of Section Twenty (20), lying West of
the Great Northern Railroad Right-of-Way in Township Ninety-nine (99) North, Range
Forty-six (46) West of the 5th P.M., Lyon County, Iowa.

and

WHEREAS, Second Parties desire to obtain an Option to Purchase said described property;

     In consideration of One Thousand Dollars ($1,000.00) and the mutual covenants and promises
herein, it is agreed as follows:

	 	1.	 	Second Parties shall have the option to acquire
	 
	 	 	 	That part of the Southwest Quarter (SW ‘A) of Section Twenty (20), lying West of
the Great Northern Railroad Right-of-Way in Township Ninety-nine (99) North, Range
Forty-six (46) West of the 5th RM., Lyon County, Iowa.
	 
	 	2.	 	The exercise price shall be $5,000.00 per acre plus all transaction costs
required to complete the transfer to Second Party herein including but not limited
to, abstracting fees, transfer tax, recording fees, document preparation fees, title
opinion fees and survey costs.
	 
	 	3.	 	First Parties agree to pay taxes pro-rated to date of possession if the
option is exercised.
	 
	 	4.	 	This Option shall be effective until December 31, 2006, unless extended in
writing by the parties.
	 
	 	5.	 	Second Party agrees to pay First Parties for any crop damage if possession
is taken by Second Party prior to crop removal by First Parties.
	 
	 	6.	 	Second Party shall exercise said option by giving written notice of the
intent to exercise the option.
	 
	 	7.	 	First Parties agree that Second Party shall have the right of access for the
purpose of doing any surveying, testing and inspection. Second Party agrees to pay
First

1

 

	 	 	Parties for any crop damage done as a result of said activities. First Parties agree
to cooperate with any rezoning requests by Second Party.
	 
	8.	 	Possession and closing shall occur within 45 days after the election to exercise said
option subject to completion of the necessary abstracting, title work and rezoning
proceedings, if any.
	 
	9.	 	The First Parties agree to deliver a warranty Deed free of any liens, but subject to
easements of record, and any zoning and other ordinances.
	 
	10.	 	Second Party agrees to cooperate with First Parties if First Parties elect to do a
like-kind exchange or a deferred exchange.
	 
	11.	 	This Agreement is binding upon the parties, their successors and assigns.
	 
	12.	 	The parties may use any equitable or legal remedies to enforce the terms of this
agreement.
	 
	13.	 	The Parties warrant they have their Tenants’ consent and approval for this agreement and
will indemnify the other party for any Tenant objection and costs that either party may
incur as the result of said objection, including reasonable attorney fees and court costs.
	 
	14.	 	The Parties agree to execute a Memorandum of this Agreement to be recorded.

Dated this 21st day of April, 2006.

	 	 	 	 	 	 	 
	  /s/ Thadd D. Knoblock
 

           Thadd D. Knoblock

	 	 
	 	  /s/ Wendy S. Knoblock
 

           Wendy S. Knoblock
	 	 
	 
	 	 	 	 	 	 
	  /s/ Trent L. Knoblock

	 	 	 	  /s/ Heather M. Knoblock	 	 
	 

	 	 	 	 	 	 
	           Trent L. Knoblock

	 	 	 	           Heather M. Knoblock	 	 
	 
	 	 	 	 	 	 
	  /s/ Troy J. Knoblock

	 	 	 	  /s/ Donna M. Knoblock	 	 
	 

	 	 	 	 	 	 
	           Troy J. Knoblock

	 	 	 	           Donna M. Knoblock	 	 
	 
	 	 	 	 	 	 
	  /s/ Travis R. Knoblock

	 	 	 	  /s/ Kathy S. Knoblck	 	 
	 

	 	 	 	 	 	 
	           Travis R. Knoblock

	 	 	 	           Kathy S. Knoblock	 	 

FIRST PARTIES

2

 

	 	 	 	 	 	 	 	 	 	 	 
	VICTORY RENEWABLE FUELS LLC	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	BY:	 	/s/ Allen L. Blauwet	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Its
	 	Pres.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	BY:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Its	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 

SECOND PARTY

3

 

STATE OF IOWA, COUNTY OF LYON, ss:

     On this 21st of April,2006, before me, the undersigned, a
Notary Public in and for said State, personally appeared Thadd D. Knoblock and Wendy S. Knoblock,
husband and wife, to me known to be the identical persons named in and who executed the foregoing
instrument, and acknowledged that they executed the same as their voluntary act and deed.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	[Stamped: DAVID LANTZ	 	 	 	 	 	 
	 

	 	 	 	Commission Number 717910

MY COMMISSION EXPIRES
	 	 	 	/s/ David Lantz
 

           NOTARY PUBLIC
	 	 
	 

	 	 	 	Aug 12, 2008]	 	 	 	 	 	 

STATE OF IOWA, COUNTY OF LYON, ss:

     On this 21st of April, 2006, before me, the undersigned, a
Notary Public in and for said State, personally appeared Trent L. Knoblock and Heather M.
Knoblock, husband and wife, to me known to be the identical persons named in and who executed the
foregoing instrument, and acknowledged that they executed the same as their voluntary act and
deed.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	[Stamped: DAVID LANTZ	 	 	 	 	 	 
	 

	 	 	 	Commission Number 717910

MY COMMISSION EXPIRES
	 	 
	 	/s/ David Lantz
 

           NOTARY PUBLIC
	 	 
	 

	 	 	 	Aug 12, 2008]	 	 	 	 	 	 

STATE OF IOWA, COUNTY OF LYON, ss:

     On this 21st of April, 2006, before me, the
undersigned, a Notary Public in and for said State, personally appeared Troy J. Knoblock and Donna
M. Knoblock, husband and wife, to me known to be the identical persons named in and who executed
the foregoing instrument, and acknowledged that they executed the same as their voluntary act and
deed.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	[Stamped: DAVID LANTZ	 	 	 	 	 	 
	 

	 	 	 	Commission Number 717910

MY COMMISSION EXPIRES
	 	 	 	/s/ David Lantz
 

           NOTARY PUBLIC
	 	 
	 

	 	 	 	Aug 12, 2008]	 	 	 	 	 	 

STATE OF IOWA, COUNTY OF LYON, ss:

     On this 21st of April, 2006, before me, the undersigned,
a Notary Public in and for said State, personally appeared Travis R. Knoblock and Kathy S.
Knoblock, husband and wife, to me known to be the identical persons named in and who executed the
foregoing instrument, and acknowledged that they executed the same as their voluntary act and deed.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	[Stamped: DAVID LANTZ	 	 	 	 	 	 
	 

	 	 	 	Commission Number 717910

MY COMMISSION EXPIRES
	 	 
	 	/s/ David Lantz
 

           NOTARY PUBLIC
	 	 
	 

	 	 	 	Aug 12, 2008]	 	 	 	 	 	 

 

 

STATE OF IOWA, COUNTY OF LYON, ss:

     On this 22nd of April, 2006, before me, the undersigned,
a Notary Public in and for said State, personally appeared Allen L. Blauwet and                      to me
personally known, who being by me duly sworn [Handwritten: affirmed] did say that the persons are
President and                      acknowledged the execution of said instrument to be the
voluntary act and deed of said limited liability company, by it voluntarily executed.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	/s/ Merlin Meyer	 	 
	 	 	 	 	 	 	 
	 	 	 	 	                     NOTARY PUBLIC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	[Stamped
	 	:
	 	MERLIN MEYER	 	 
	 

	 	 	 	 	 	Commission Number 713856	 	 
	 

	 	 	 	 	 	MY COMMISSION EXPIRES	 	 
	 

	 	 	 	 	 	NOVEMBER 30, 2007]	 	 

 

 

Prepared by: Paul Kippley, 110 N. Marshall St., Rock Rapids, IA 51246 (712) 472-2567

MEMORANDUM OF OPTION TO PURCHASE

     An Option to Purchase has been granted to Victory Renewable Fuels, LLC, from Thadd D.
Knoblock and Wendy S. Knoblock, husband and wife, Trent L. Knoblock and Heather M. Knoblock,
husband and wife, Troy J. Knoblock and Donna M. Knoblock, husband and wife, and Travis R. Knoblock
and Kathy S. Knoblock, husband and wife, for the following described real estate:

That part of the Southwest Quarter (SW 1/4) of Section Twenty (20), lying West of the Great
Northern Railroad Right-of-Way in Township Ninety-nine (99) North, Range Forty-six (46)
West of the 5th P.M., Lyon County, Iowa.

A copy of the Option to Acquire can be obtained from Victory Renewable Fuels, LLC.

     This Option automatically lapses on December 31, 2006 unless extended in writing by the
parties. If extended a Memorandum to that effect shall be recorded.

     Dated this 21st day of April, 2006.

	 	 	 	 	 	 	 
	  /s/ Thadd D. Knoblock
 

           Thadd D. Knoblock

	 	 
	 	  /s/ Wendy S. Knoblock
 

           Wendy S. Knoblock
	 	 
	 
	 	 	 	 	 	 
	  /s/ Trent L. Knoblock

	 	 	 	  /s/ Heather M. Knoblock	 	 
	 

	 	 	 	 	 	 
	           Trent L. Knoblock

	 	 	 	           Heather M. Knoblock	 	 
	 
	 	 	 	 	 	 
	  /s/ Troy J. Knoblock

	 	 	 	  /s/ Donna M. Knoblock	 	 
	 

	 	 	 	 	 	 
	           Troy J. Knoblock

	 	 	 	           Donna M. Knoblock	 	 
	 
	 	 	 	 	 	 
	  /s/ Travis R. Knoblock

	 	 	 	  /s/ Kathy S. Knoblck	 	 
	 

	 	 	 	 	 	 
	           Travis R. Knoblock

	 	 	 	           Kathy S. Knoblock	 	 

 

 

STATE OF IOWA, COUNTY OF LYON, ss:

     On this 21st of April,2006, before me, the undersigned, a
Notary Public in and for said State, personally appeared Thadd D. Knoblock and Wendy S. Knoblock,
husband and wife, to me known to be the identical persons named in and who executed the foregoing
instrument, and acknowledged that they executed the same as their voluntary act and deed.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	[Stamped: DAVID LANTZ	 	 	 	 	 	 
	 

	 	 	 	Commission Number 717910
	 	 
	 	   /s/ David Lantz
 

	 	 
	 	 	MY COMMISSION EXPIRES	 	 	 	NOTARY PUBLIC	 	 
	 

	 	 	 	Aug 12, 2008]	 	 	 	 	 	 

STATE OF IOWA, COUNTY OF LYON, ss:

     On this 21st of April, 2006, before me, the undersigned, a
Notary Public in and for said State, personally appeared Trent L. Knoblock and Heather M.
Knoblock, husband and wife, to me known to be the identical persons named in and who executed the
foregoing instrument, and acknowledged that they executed the same as their voluntary act and
deed.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	[Stamped: DAVID LANTZ	 	 	 	 	 	 
	 

	 	 	 	Commission Number 717910
	 	 
	 	   /s/ David Lantz
 

	 	 
	 	 	MY COMMISSION EXPIRES	 	 	 	NOTARY PUBLIC	 	 
	 

	 	 	 	Aug 12, 2008]	 	 	 	 	 	 

STATE OF IOWA, COUNTY OF LYON, ss:

     On this 21st of April, 2006, before me, the
undersigned, a Notary Public in and for said State, personally appeared Troy J. Knoblock and Donna
M. Knoblock, husband and wife, to me known to be the identical persons named in and who executed
the foregoing instrument, and acknowledged that they executed the same as their voluntary act and
deed.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	[Stamped: DAVID LANTZ	 	 	 	 	 	 
	 

	 	 	 	Commission Number 717910

MY COMMISSION EXPIRES
	 	 
	 	  /s/ David Lantz
 

NOTARY PUBLIC
	 	 
	 

	 	 	 	Aug 12, 2008]	 	 	 	 	 	 

STATE OF IOWA, COUNTY OF LYON, ss:

     On this 21st of April, 2006, before me, the undersigned, a
Notary Public in and for said State, personally appeared Travis R. Knoblock and Kathy S. Knoblock,
husband and wife, to me known to be the identical persons named in and who executed the foregoing
instrument, and acknowledged that they executed the same as their voluntary act and deed.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	[Stamped: DAVID LANTZ	 	 	 	 	 	 
	 

	 	 	 	Commission Number 717910

MY COMMISSION EXPIRES
	 	 
	 	   /s/ David Lantz
 

NOTARY PUBLIC
	 	 
	 

	 	 	 	Aug 12, 2008]

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