Exhibit 10.16EMPLOYMENTAGREEMENT(Plant Manager)     THISEMPLOYMENT AGREEMENT (“Agreement”) is made and entered into effective as of the 18th*day*of December, 2006 (“Effective Date”), by and between E Energy Adams, LLC, a Nebraska limitedliability company (“E ENERGY”) and Lance Liebergen (“Employee”).     WHEREAS, the parties acknowledge that E ENERGY was formed for the purpose of developing aproject to build and operate a 50 million gallon dry mill corn-processing ethanol plant in GageCounty, Nebraska near Adams **(the “Business of E**ENERGY”); and     WHEREAS, the parties agree and acknowledge the Business of E ENERGY is a highly competitiveone, both inside of and outside the state of Nebraska; and     WHEREAS, the parties agree and acknowledge E ENERGY has, is and will likely continue todevelop valuable confidential techniques and valuable proprietary and confidential information,forms and methods for use in the Business of E ENERGY; and     WHEREAS, Employee agrees and acknowledges that Employee will have access to said valuabletechniques and employ said valuable proprietary and confidential information, forms and methods inearning income in the employ of E ENERGY; and     WHEREAS, the parties further agree and acknowledge that Employee’s position is one ofconsiderable responsibility and requires considerable experience and requires Employee to developand maintain good relationships with E ENERGY: (i) suppliers and potential suppliers, (ii)customers and potential customers and (iii) employees, and that E ENERGY will incur substantialtime and expense to replace an employee who has the experience and relationships of Employee; and     WHEREAS, as a condition of employment and continued employment of Employee by E ENERGY, theparties mutually agree that confidentiality is required in connection with the Business of E ENERGYand in connection with the identity of E ENERGY’S suppliers and customers, and that accordingly, itis vital that E ENERGY be protected from direct or indirect competition from Employee during hisemployment and for a reasonable period of time thereafter; and     WHEREAS, E ENERGY and Employee now desire to provide for the employment of Employee by EENERGY, after the effective date of this Agreement, upon the terms and conditions set forth in thisAgreement.     NOW THEREFORE, in consideration of the mutual covenants contained herein and for other goodand valuable consideration, the receipt and sufficiency of which is hereby acknowledged, theparties hereto agree as follows:
 

 
AGREEMENT1. Employment and Duties. Effective as of the Effective Date, E ENERGY will employ Employeeand Employee will accept such employment upon the terms and conditions set forth in this Agreement.Employee shall be the Plant Manager for E ENERGY and shall report directly to the CEO/GeneralManager or to such other person as the CEO designates. Employee shall devote substantially hisentire time and attention to the Business of E ENERGY. In so doing, Employee agrees to contributehis best skills and services at all times for the business and benefit of E ENERGY. Employee herebyrepresents and confirms that he is under no contractual or legal commitment that would prevent himfrom fulfilling his duties and responsibilities as set forth in this Agreement. During hisemployment with E ENERGY, Employee may participate in charitable activities and personal investmentactivities to a reasonable extent and he may serve as a director of business and civicorganizations as approved by the CEO, so long as such activities do not interfere with theperformance of his duties and responsibilities hereunder. Employee may participate in otherbusiness activities that do not otherwise interfere with his duties under this Agreement with theprior consent of the CEO.2. Term and Termination of Employment. The term of Employee’s employment under thisAgreement shall commence on the Effective Date of this Agreement and shall continue thereafteruntil terminated as follows:     a. E ENERGY may terminate this Agreement without cause by notifying Employee of suchtermination at least 30 days in advance of the effective date of such termination. E ENERGY mayterminate this Agreement for cause at any time without prior notice to Employee.     b. This Agreement shall automatically terminate upon the death or permanent disability (asdetermined in good faith by the Board of Directors) of Employee.     c. Employee may terminate this Agreement by notifying the CEO of such termination at least 90days in advance of the effective date of such termination, However, in the event Employeeterminates this Agreement prior to one year from the Effective Date, Employee will be required torepay all reasonable recruiting costs incurred by E ENERGY in recruiting him and his replacement.Except as provided herein, all of Employee’s right to compensation and other benefits hereundershall terminate upon the date his employment terminates, except: as may be mandated by law withrespect to health insurance or other benefits.3. Position and Duties. Employee shall be the Plant Manager of E ENERGY and shall have theauthority, duties, and responsibilities commensurate and consistent with such position and title asdesignated by the CEO from time to time, including, within established limitations, (a) budgeting,managing and controlling departmental or office-specific expenditures, as applicable; (b) planning,developing and implementing strategy for operational management and development so as tomeet such performance plans, budgets and timescales as may be adopted by the Board; (c)establishing and maintaining
 

 
appropriate systems for measuring key aspects of operational management and development; and (d)monitoring, measuring and reporting on operational issues; and (e) ensuring compliance with anyrelevant requirements for quality management, health and safety, legal stipulations, and generalduties of care. Employee will be the senior management person in the plant at E ENERGY and will,subject to the supervision of the CEO, have discretion and authority to manage and direct theday-to-day plant affairs and plant operations of E ENERGY, and to hire and terminate (afterconsulting with the HR Manager and CEO) the employment of plant employees of E ENERGY. Employeewill report to the CEO and perform such other duties and responsibilities as the CEO shall assignto him from time to time consistent with his position. All plant staff and other plant functionsand all plant operations of E ENERGY will report directly or indirectly (through a subordinate ofEmployee who reports directly or indirectly to Employee) to Employee, unless the CEO concludes ingood faith that a direct reporting relationship with respect to any staff or function is requiredby applicable law or written policies of E ENERGY, or is reasonably necessary to fulfill hisfiduciary obligations to E ENERGY.4. Compensation.     a. Base Salary. For all services rendered by Employee to E ENERGY hereunder, Employeeshall be paid an annual base salary of Ninety Thousand Dollars ($90,000.00). Which base salarypayments shall be paid in accordance with E ENERGY’S payroll policies and procedures as establishedfrom time to time. 90 days after the official start up of the plant, the base salary will beincreased to Ninety-Five Thousand Dollars ($95,000). During each year after the first year ofEmployee’s employment hereunder, the CEO will conduct an annual performance review of Employee andthereafter establish Employee’s base salary for the upcoming year.     b. Pre-Start up Bonus. For exceptional services rendered by Employee to E ENERGYprior to startup, a bonus up to and including, but not greater than, Twenty ThousandDollars ($20,000) may be awarded at the discretion of the CEO and Board of Directors or theCommittee.     c. Annual Performance Bonus. Beginning ninety (90) days after the startup, Employeewill be eligible for an annual performance bonus up to and including, but not greater than, 50% ofhis base salary at the discretion of the CEO and Board of Directors. Such bonus will be based uponachievement of certain profitability and operational efficiencies relative to the industry andsuch other criteria that the CEO and Board of Directors from time to time determine intheir sole discretion.     d. Employee Benefits. While Employee is employed by E ENERGY hereunder, Employeewill be entitled to participate in all employee benefit plans and programs of E ENERGY, includingwithout limitations, a 401(K) plan, Section 125 Cafeteria Plan, and medical, dental, life, longterm disability, and disability insurance plans, to the extent E ENERGY offers such plans , in itssole discretion, and to the extent that Employee meets the eligibility requirements of eachindividual plan or program as generally applicable to other employees of E ENERGY provided,however, that except as herein otherwise provided E ENERGY provides no assurance as to the adoptionor continuance of any particular employee benefit plan or program and Employee’s participation insuch plan or program is subject to the provisions, rules and regulations generally applicable to otheremployees of E ENERGY.
 

 
     e. Expenses. While Employee is employed by E ENERGY hereunder, EENERGY will reimburse Employee for reasonable and necessary out-of-pocket business, travel andeducational expenses incurred by him in the performance of his duties and responsibilitieshereunder, subject to E ENERGY’s policies and procedures for expense verification and documentationin effect from time to time     f. Paid Time Off and Holidays. While Employee is employed by E ENERGY hereunder,Employee shall be entitled to paid PTO days as follows:1 to 4 years of employment 15 days per year