Document:

Exhibit 10.3

Dakota Plains Holdings, Inc.

2011 EQUITY INCENTIVE PLAN
 
Non-Statutory Stock Option Agreement

  

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Name
 of Optionee:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 No.
 of Shares Covered:

 	
  

 	
 Date
 of Grant:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Exercise
 Price Per Share:

 	
  

 	
 Expiration
 Date:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Exercise
 Schedule: 

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Date(s)
 of

 Exercisability

 	
  

 	
 No.
 of Shares as to Which

 Option Becomes Exercisable

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 

          This
is a Non-Statutory Stock Option Agreement (“Agreement”) between Dakota Plains Holdings, Inc.
(the “Company”),
and the optionee identified above (the “Optionee”) effective as of
the date of grant specified above.

Background

	
  

 	
  

 	
  

 
	
  

 	
 A.

 	
 The
 Company maintains the Dakota Plains Holdings, Inc. 2011 Equity Incentive Plan
 (the “Plan”).

 
	
  

 	
  

 	
  

 
	
  

 	
 B.

 	
 Under
 the Plan, the Board of Directors of the Company (the “Board”) or a committee of
 two or more directors of the Company (the “Committee”) appointed by
 the Board administers the Plan and has the authority to determine the awards
 to be granted under the Plan (if the Board has not appointed a committee to
 administer the Plan, then the Board shall constitute the Committee).

 
	
  

 	
  

 	
  

 
	
  

 	
 C.

 	
 The
 Committee has determined that the Optionee is eligible to receive an award
 under the Plan in the form of a non-statutory stock option (the “Option”).

 
	
  

 	
  

 	
  

 
	
  

 	
 D.

 	
 The
 Company hereby grants the Option to the Optionee under the terms and
 conditions as follows:

 

Terms and Conditions*

	
  

 	
  

 
	
 1.

 	
 Grant. The Optionee is granted the Option to
 purchase the number of Shares specified at the beginning of this Agreement.

 
	
  

 	
  

 
	
 2.

 	
 Exercise
 Price. The price to
 the Optionee of each Share subject to the Option will be the exercise price
 specified at the beginning of this Agreement.

 
	
  

 	
  

 
	
 3.

 	
 Non-Statutory
 Stock Option. The
 Option is not intended to be an “incentive stock option” within the
 meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the
 “Code”).

 
	
  

 	
  

 
	
 4.

 	
 Exercise
 Schedule. The
 Option will vest and become exercisable as to the number of Shares and on the
 dates specified in the exercise schedule at the beginning of this Agreement.
 The exercise schedule will be cumulative; thus, to the extent the Option has
 not already been exercised and has not expired, terminated or been cancelled,
 the Optionee or the person otherwise entitled to exercise the Option as
 provided herein may at any time, and from time to time, purchase all or any
 portion of the Shares then purchasable under the exercise schedule. 

 
	
  

 	
  

 
	
  

 	
 The
 Option may also be exercised in full (notwithstanding the exercise schedule)
 under the circumstances described in Section 8 of this Agreement if it has
 not expired prior thereto.

 
	
  

 	
  

 
	
 5.

 	
 Expiration. 

 

          (a)          Timing.
The Option will expire at 5:00 p.m. Central Time on the earliest of:

                    (1)          The
expiration date specified at the beginning of this Agreement;

                    (2)          The
expiration of the period after the termination of employment of the Optionee
within which the Option can be exercised (as specified in Section 7 of this
Agreement);

                    (3)          Upon
termination of the Optionee’s employment for cause or if it is determined by
the Company within ten days after termination of the Optionee’s employment by
the Optionee that cause existed for termination by the Company, the date of
such determination; or

                    (4)          The
date (if any) fixed for cancellation pursuant to section 12(b) of the Plan.

          (b)          Expiration
Final. In no event may anyone exercise the Option, in whole or in
part, after it has expired, notwithstanding any other provision of this Agreement.

          (c)          Rescission.
In addition, if the Option is exercised, and prior to the delivery of the
certificate representing the Shares so purchased, it is determined that cause
for termination existed, then the Company, in its sole discretion, may rescind
the Option exercise by the Optionee and terminate the Option.

	
  

 	
  

 
	
 6.

 	
 Procedure
 to Exercise Option.

 

          (a)          Notice of
Exercise. The Option may be exercised by delivering written notice
of exercise to the Company at the principal executive office of the Company, to
the attention of the Company’s 

	
  

 	
  

 
	
  

 	
  

 
	
  

 	
  

 
	
 *          Unless
 the context indicates otherwise, terms that are not defined in this Agreement
 shall have the meaning set forth in the Plan as it currently exists or as it
 is amended in the future.

 

2

Secretary,
in the form attached to this Agreement. The notice shall state the number of
Shares to be purchased, and shall be signed by the person exercising the
Option. If the person exercising the Option is not the Optionee, he/she also
must submit appropriate proof of his/her right to exercise the Option.

          (b)          Tender of
Payment. Upon giving notice of any exercise hereunder, the Optionee
shall provide for payment of the purchase price of the Shares being purchased
through one or a combination of the following methods:

                    (1)          Cash
(including check, bank draft or money order);

                    (2)          To
the extent permitted by law, through a broker assisted cashless exercise in
which the Optionee simultaneously exercises the Option and sells all or a
portion of the Shares thereby acquired pursuant to a brokerage or similar
relationship and uses the proceeds from such sale to pay the purchase price of
such Shares; or

                    (3)          By
delivery to the Company of unencumbered Shares having an aggregate Fair Market
Value on the date of exercise equal to the purchase price of such Shares. 

                    (4)          To
the extent permitted by law, through a broker assisted cashless exercise in
which the Optionee simultaneously exercises the Option and sells all or a
portion of the Shares thereby acquired pursuant to a brokerage or similar
relationship and uses the proceeds from such sale to pay the purchase price of
such Shares;

          (c)          Limitation
on Payment by Shares. Notwithstanding Section 6(b), the Option may
not be exercised through payment of any portion of the purchase price with
Shares if, in the opinion of the Committee, payment in such manner could have
adverse financial accounting consequences for the Company that were not
applicable at the time of the grant.

          (d)          Delivery of
Certificates. As soon as practicable after the Company receives the
notice and purchase price provided for above, it shall deliver to the person
exercising the Option, in the name of such person, a certificate or
certificates representing the Shares being purchased. The Company shall pay any
original issue or transfer taxes with respect to the issue or transfer of the
Shares and all fees and expenses incurred by it in connection therewith. All
Shares so issued shall be fully paid and nonassessable. Notwithstanding
anything to the contrary in this Agreement, no certificate for Shares
distributable under the Plan shall be issued and delivered unless the issuance
of such certificate complies with all applicable legal requirements including,
without limitation, compliance with the provisions of applicable state
securities laws, the Securities Act and the Exchange Act.

	
  

 	
  

 
	
 7.

 	
 Employment Requirement. The Option may be exercised only while
 the Optionee remains employed with the Company or a parent or subsidiary
 thereof, and only if the Optionee has been continuously so employed since the
 date the Option was granted; provided that:

 

          (a)          Post-Employment.
The Option may be exercised for three months after termination of
the Optionee’s employment if such cessation of employment is for a reason other
than death or disability, but only to the extent that it was exercisable
immediately prior to termination of employment, provided that if termination of
the Optionee’s employment shall have been for cause, the Option shall expire,
and all rights to purchase Shares hereunder shall terminate, immediately upon
such termination.

          (b)          Death or
Disability. The Option may be exercised for one year after
termination of the Optionee’s employment if such termination of employment is
because of death or disability of the Optionee.

3

          (c)          Change in
Control. If the Optionee’s employment terminates after a declaration
made pursuant to section 12(b) of the Plan in connection with an event, the
Option may be exercised at any time permitted by such declaration.

	
  

 	
  

 
	
 8.

 	
 Acceleration of Vesting.

 

          (a)          Death or
Disability. In the event of the death or disability of the Optionee,
any portion of the Option that was not previously exercisable shall become
immediately exercisable in full if the Optionee shall have been continuously
employed by the Company or a parent or subsidiary thereof between the date the
Option was granted and the date of such death or disability.

          (b)          Change in
Control. If a Change in Control of the Company shall or is to occur,
then the Option, if not already exercised in full or otherwise terminated,
expired or cancelled, shall become immediately exercisable in full and shall
remain exercisable during the remaining term of the Option.

          (c)          Discretionary
Acceleration. Notwithstanding any other provisions of this Agreement
to the contrary, the Committee may, in its sole discretion, declare at any time
that the Option shall be immediately exercisable.

	
  

 	
  

 
	
 9.

 	
 Limitation on Transfer. During the lifetime of the Optionee, only
 the Optionee or his/her guardian or legal representative may exercise the
 Option. The Option may not be assigned or transferred by the Optionee
 otherwise than by will or the laws of descent and distribution or pursuant to
 a qualified domestic relations order as defined by the Code or Title I of the
 Employee Retirement Income Security Act, or the rules thereunder.

 
	
  

 	
  

 
	
 10.

 	
 No Shareholder Rights
 Before Exercise. No
 person shall have any of the rights of a shareholder of the Company with
 respect to any Share subject to the Option until the Share actually is issued
 to him/her upon exercise of the Option.

 
	
  

 	
  

 
	
 11.

 	
 Discretionary Adjustment. In the event of any reorganization,
 merger, consolidation, recapitalization, liquidation, reclassification, stock
 dividend, stock split, combination of shares, rights offering, or
 extraordinary dividend or divestiture (including a spin off), or any other
 change in the corporate structure or Shares of the Company, the Committee (or
 if the Company does not survive any such transaction, a comparable committee
 of the Board of Directors of the surviving corporation) may, without the
 consent of the Optionee, make such adjustment as it determines in its
 discretion to be appropriate as to the number and kind of securities subject
 to and reserved under the Plan and, in order to prevent dilution or
 enlargement of rights of the Optionee, the number and kind of securities
 issuable upon exercise of the Option and the exercise price hereof.

 
	
  

 	
  

 
	
 12.

 	
 Tax Withholding. Delivery of Shares upon exercise of the
 Option shall be subject to any required withholding taxes. As a condition
 precedent to receiving Shares upon exercise of the Option, the Optionee shall
 be required to pay to the Company, in accordance with the provisions of
 paragraph 14 of the Plan, an amount equal to the amount of any required
 withholdings. In lieu of all or any part of such a cash payment, a person
 exercising the Option may cover all or any part of the minimum required tax
 withholdings through a reduction in the number of Shares delivered to the
 person exercising the Option or through a subsequent return to the Company of
 Shares delivered to the person exercising the Option (in each case, such
 Shares having an aggregate Fair Market Value on the date of exercise equal to
 the amount of the withholding taxes being paid through such delivery,
 reduction or subsequent return of Shares). Notwithstanding the foregoing, no
 person shall be permitted to pay any such withholdings with Shares, or
 through a reduction in the number of 

 

4

	
  

 	
  

 
	
  

 	
 Shares to be delivered
 upon exercise of the Option, if the Committee, in its sole discretion,
 determines that payment in such manner is undesirable.

 
	
  

 	
  

 
	
 13.

 	
 Interpretation of This
 Agreement. All
 decisions and interpretations made by the Committee with regard to any
 question arising hereunder or under the Plan shall be binding and conclusive
 upon the Company and the Optionee. If there is any inconsistency between the
 provisions of this Agreement and the Plan, the provisions of the Plan shall
 govern.

 
	
  

 	
  

 
	
 14.

 	
 Discontinuance of
 Employment. This
 Agreement shall not give the Optionee a right to continued employment with
 the Company or any parent or subsidiary of the Company, and the Company or
 any such parent or subsidiary employing the Optionee may terminate his/her
 employment at any time and otherwise deal with the Optionee without regard to
 the effect it may have upon him/her under this Agreement.

 
	
  

 	
  

 
	
 15.

 	
 Option Subject to Plan,
 Articles of Incorporation and By Laws. The Optionee acknowledges that the Option
 and the exercise thereof is subject to the Plan, the Articles of
 Incorporation, as amended from time to time, and the By Laws, as amended from
 time to time, of the Company, and any applicable federal or state laws, rules
 or regulations.

 
	
  

 	
  

 
	
 16.

 	
 Obligation to Reserve
 Sufficient Shares.
 The Company shall at all times during the term of the Option reserve and keep
 available a sufficient number of Shares to satisfy this Agreement.

 
	
  

 	
  

 
	
 17.

 	
 Binding Effect. This Agreement shall be binding in all
 respects on the heirs, representatives, successors and assigns of the
 Optionee.

 
	
  

 	
  

 
	
 18.

 	
 Choice of Law. This Agreement is entered into under the
 laws of the State of Minnesota and shall be construed and interpreted
 thereunder without regard to its conflict of law principles.

 
	
  

 	
  

 
	
 19.

 	
 Acknowledgement of Receipt
 of Copy. By
 execution of this Agreement, the Optionee acknowledges having received a copy
 of the Plan.

 

          The
Optionee and the Company have executed this Agreement as of the ____ day of
________, 20__.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 OPTIONEE

 
	
  

 	
  

 
	
  

 	
  

 
	
  

 	
 DAKOTA PLAINS HOLDINGS, INC.

 
	
  

 	
  

 
	
  

 	
 By 

 	
  

 
	
  

 	
    Its 

 	
  

 

5Exhibit 10.4

Dakota Plains Holdings, Inc.

2011 EQUITY INCENTIVE PLAN
 
Restricted
Stock Agreement  

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Full
 Name of Employee:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 No.
 of Shares of Common Stock Covered:

 	
  

 	
 Date
 of Issuance:

 
	
  

 	
  

 	
  

 
	
 Vesting
 Schedule:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 

 Vesting Date*

 	
 No.
 of Shares Which

 Become Vested (Cumulative)

 
	
  

 	
  

 	
  

 
	
  

 
	
  

 	
  

 	
  

 
	
  

 
	
  

 	
  

 	
  

 
	
  

 
	
   *  Provided,
 however, that all Shares subject to this Agreement will vest immediately in
 full upon the terms described in Section 3 of this Agreement.

 

          This
Restricted Stock Agreement is made between Dakota Plains Holdings, Inc. (the “Company”),
and the employee identified above (the “Employee”) effective as of
the date of issuance specified above (the “Effective Date”).

	
  

 	
  

 	
  

 
	
  

 	
 A.

 	
 The Company desires to
 give the Employee an inducement to acquire a proprietary interest in the
 Company and an added incentive to advance the interests of the Company by
 granting the Employee restricted shares of Common Stock of the Company (the “Shares”),
 on the terms and conditions and subject to the restrictions set forth herein;
 and

 
	
  

 	
  

 	
  

 
	
  

 	
 B.

 	
 The Company and the
 Employee desire to enter into this Agreement to set forth the terms and
 conditions of such grant.

 
	
  

 	
  

 
	
  

 	
 Now, therefore, the
 Company and the Employee mutually agree as follows:

 

	
  

 	
  

 
	
 1.

 	
 Grant of Restricted Stock.

 

          (a)          Subject
to the terms and conditions of this Agreement, the Company has granted to the
Employee the number of Shares specified at the beginning of this Agreement.
Such Shares are subject to the restrictions provided for in this Agreement and
are referred to collectively as the “Restricted Shares” and each as a “Restricted
Share.”

          (b)          Each
Restricted Share will be evidenced by a duly issued stock certificate (which
may represent more than one Restricted Share) registered in the name of the Employee.
The Employee will have all rights of a shareholder of the Company with respect
to each Restricted Share (including the right to

receive
dividends and other distributions, if any). However, all restrictions provided
for in this Agreement will apply to each Restricted Share and to any other
securities distributed with respect to such Restricted Share. No Restricted
Share may be sold, transferred, pledged, hypothecated or otherwise encumbered
or disposed of until such Restricted Share has vested in the Employee in
accordance with all terms and conditions of this Agreement. Each Restricted
Share will remain restricted and subject to forfeiture to the Company unless
and until such Restricted Share has vested in the Employee in accordance with
all of the terms and conditions of this Agreement. Each stock certificate
evidencing any Restricted Share may contain such legends and stock transfer
instructions or limitations as may be determined or authorized by the Company
in its sole discretion. The Company may, in its sole discretion, retain custody
of any such certificate throughout the period during which any restrictions are
in effect and require, as a condition to issuing any such certificate, that the
Employee tender to the Company a stock power duly executed in blank relating to
such custody.

	
  

 	
  

 
	
 2.

 	
 Normal
 Vesting. If the
 Employee remains continuously employed by the Company or a parent or
 subsidiary thereof, then the Restricted Shares will vest in the numbers and
 on the dates specified in the Vesting Schedule at the beginning of this
 Agreement. 

 
	
  

 	
  

 
	
 3.

 	
 Accelerated
 Vesting.
 Notwithstanding Section 2 of this Agreement, the Restricted Shares will
 vest immediately upon a Change in Control as defined in Section 5 of
 this Agreement if the Employee has been continuously employed by the Company
 or a parent or subsidiary thereof through the date immediately prior to the
 occurrence of a Change in Control.

 
	
  

 	
  

 
	
 4.

 	
 Issuance
 of Unrestricted Shares. Upon the vesting of any Restricted Shares,
 such vested Restricted Shares will no longer be subject to forfeiture as
 provided in Section 6 of this Agreement, but will continue to be subject
 to the provisions of Section 8 of this Agreement.

 
	
  

 	
  

 
	
 5.

 	
 Change
 in Control. A “Change in
 Control” of the Company means the following:

 

          (a)          The
acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”)) of beneficial ownership (within the meaning
of Exchange Act Rule 13d-3) of 30% or more of either (i) the then
outstanding Shares (the “Outstanding Company Common Stock”) or
(ii) the combined voting power of the then outstanding voting securities
of the Company entitled to vote generally in the election of the Board of
Directors of the Company (the “Outstanding Company Voting Securities”);
provided, however, that the following acquisitions will not constitute a Change
in Control:

                    (1)          any
acquisition of Shares or voting securities of the Company directly from the
Company (excluding any acquisition resulting from the exercise of a conversion
or exchange privilege with respect to outstanding convertible or exchangeable
securities unless such outstanding convertible or exchangeable securities were
acquired directly from the Company);

                    (2)          any
acquisition of Shares or voting securities of the Company by the Company, any
of its wholly owned subsidiaries, or any shareholder of the Company as of the
Effective Date;

                    (3)          any
acquisition of Shares or voting securities of the Company by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any
of its subsidiaries, or

                    (4)          any
acquisition by any corporation with respect to which, immediately following
such acquisition, more than 70% of, respectively, the then outstanding shares
of common stock of such corporation and the combined voting power of the then
outstanding voting securities of such corporation entitled to vote generally in
the election of directors is then beneficially owned, directly or indirectly,
by 

2

all
or substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such acquisition in
substantially the same proportions as was their ownership, immediately prior to
such acquisition, of the Outstanding Company Common Stock and Outstanding Company
Voting Securities, as the case may be;

          (b)          The
individuals who constitute the Incumbent Directors cease for any reason to
constitute at least a majority of the Board of Directors of the Company (the “Board”),
with the term “Incumbent Directors” meaning (1) the members of the
Board as of the Effective Date, and (2) any individual who becomes a
member of the Board after such date whose election, or nomination for election
by the shareholders of the Company, was approved by the vote of at least a
majority of the then Incumbent Directors, but excluding any individual whose
initial assumption of office as a director of the Company occurs as a result of
an actual or threatened election contest with respect to the election or
removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of any person other than the Board;

          (c)          Approval
by the shareholders of the Company of a reorganization, merger, consolidation
or statutory exchange of Outstanding Company Voting Securities, unless,
immediately following such reorganization, merger, consolidation or exchange,
all or substantially all of the individuals and entities who were the
beneficial owners, respectively, of the Outstanding Company Common Stock and
Outstanding Company Voting Securities immediately prior to such reorganization,
merger, consolidation or exchange beneficially own, directly or indirectly,
more than 70% of, respectively, the then outstanding shares of common stock and
the combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors, as the case may be, of the
corporation resulting from such reorganization, merger, consolidation or
exchange in substantially the same proportions as was their ownership,
immediately prior to such reorganization, merger, consolidation or exchange, of
the Outstanding Company Common Stock and Outstanding Company Voting Securities,
as the case may be; or

          (d)          Approval
by the shareholders of the Company of (1) a complete liquidation or
dissolution of the Company or (2) the sale or other disposition of all or
substantially all of the assets of the Company, other than to a corporation
with respect to which, immediately following such sale or other disposition,
more than 70% of, respectively, the then outstanding shares of common stock of
such corporation and the combined voting power of the then outstanding voting
securities of such corporation entitled to vote generally in the election of
directors is then beneficially owned, directly or indirectly, by all or
substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such sale or other disposition
in substantially the same proportion as was their ownership, immediately prior
to such sale or other disposition, of the Outstanding Company Common Stock and
Outstanding Company Voting Securities, as the case may be.

Notwithstanding
the above, a Change in Control shall not be deemed to occur with respect to the
Employee if the acquisition of the 30% or greater interest referred to in
paragraph (1) is by a group, acting in concert, that includes the Employee
or if at least 30% of the then outstanding common stock or combined voting
power of the then outstanding voting securities (or voting equity interests) of
the surviving corporation or of any corporation (or other entity) acquiring all
or substantially all of the assets of the Company shall be beneficially owned,
directly or indirectly, immediately after a reorganization, merger,
consolidation, statutory share exchange or disposition of assets referred to in
paragraphs (3) or (4) by a group, acting in concert, that includes the
Employee.

3

	
  

 	
  

 
	
 6.

 	
 Forfeiture. If (a) the Employee’s employment
 with the Company, or a parent or subsidiary thereof, is terminated for any
 reason, whether by the Company with or without cause, voluntarily or
 involuntarily by the Employee or otherwise, or (b) the Employee attempts
 to transfer or otherwise dispose of any of the Restricted Shares or the
 Restricted Shares become subject to attachment or any similar involuntary
 process, in violation of this Agreement, then any Restricted Shares that have
 not previously vested (including pursuant to Section 3 of this
 Agreement) will be forfeited by the Employee to the Company, the Employee
 will thereafter have no right, title or interest whatever in such Restricted
 Shares, and, if the Company does not have custody of any and all certificates
 representing Restricted Shares so forfeited, the Employee must immediately
 return to the Company any and all certificates representing Restricted Shares
 so forfeited. Additionally, the Employee must deliver to Company a stock
 power duly executed in blank relating to any and all certificates
 representing Restricted Shares forfeited to the Company in accordance with
 the previous sentence or, if such stock power has previously been tendered to
 the Company, the Company will be authorized to deem such previously tendered
 stock power delivered, and the Company will be authorized to cancel any and
 all certificates representing Restricted Shares so forfeited and issue and
 deliver to the Employee a new certificate for any Shares which vested prior
 to forfeiture.

 
	
  

 	
  

 
	
 7.

 	
 Lock-Up. If requested by the Company in connection
 with any registration of the offering of any securities of the Company under
 the Securities Act of 1933, as amended (the “Securities Act”), the
 Employee will not sell or otherwise transfer any securities of the Company
 during the 180-day period (or such other period as may be requested in
 writing by the managing underwriter of such offering and agreed to in writing
 by the Company) (the “Market Standoff”) following the
 effective date of a registration statement of the Company filed under the
 Securities Act. Such restrictions will apply only to the first registration
 statement of the Company to become effective under the Securities Act that
 includes securities to be sold on behalf of the Company to the public in an
 underwritten public offering under the Securities Act. The Company may impose
 stop transfer instructions with respect to securities subject to the
 foregoing restrictions until the end of such Market Standoff.

 
	
  

 	
  

 
	
 8.

 	
 Transfer
 Restrictions.

 

          (a)          The
Employee understands that, notwithstanding the vesting of the Restricted Shares
under Sections 2 and 3 of this Agreement, none of the Shares issued to the
Employee pursuant to this Agreement have been (nor are anticipated to be)
registered under the Securities Act, or any state securities laws, in reliance
upon exemptions from registration. The Shares, therefore, cannot be sold unless
they are subsequently registered under the Securities Act or the Employee
obtains an opinion of counsel satisfactory to the Company that such sale may be
effected without violation of applicable federal or state securities laws.

          (b)          The
Company is not required (1) to transfer on its books any Shares that have
been sold or otherwise transferred in violation of any of the provisions of
this Agreement or (2) to treat as owner of such Shares or to accord the
right to vote or pay dividends to any transferee to whom such Shares have been
so transferred.

	
  

 	
  

 
	
 9.

 	
 Limitation
 on Change in Control Payments. Notwithstanding anything in this Agreement to the contrary, if,
 with respect to the Employee, the acceleration of the vesting of Restricted
 Shares as provided in Section 3 of this Agreement (which acceleration
 could be deemed a “payment” within the meaning of Section 280G(b)(2) of
 the Internal Revenue Code of 1986, as amended (the “Code”)), together with any
 other payments which the Employee has the right to receive from the Company
 or any corporation which is a member of an “affiliated group” (as defined in Section 1504(a)
 of the Code without regard to Section 1504(b) of the Code) of which the
 Company is a member, would constitute a “parachute payment” (as defined in

 

4

	
  

 	
  

 
	
  

 	
 Section 280G(b)(2) of the Code), then the “payments” to the Employee
 will be reduced to the largest amount as will result in no portion of such
 “payments” being subject to the excise tax imposed by Section 4999 of
 the Code. Without limiting the prior sentence, the Employee will have the
 discretion to determine which “payments” will be reduced so that no portion
 of such “payments” are subject to the excise tax imposed by Section 4999
 of the Code. Notwithstanding anything to the contrary in this Section 9,
 if the Employee is subject to a separate agreement with the Company that
 expressly addresses the potential application of Section 280G or 4999 of
 the Code (including, without limitation, that “payments” under such agreement
 or otherwise will be reduced, that such “payments” will not be reduced or
 that such “payments” will be “grossed up” for tax purposes), then this
 Section 9 will not apply, and any “payments” to the Employee pursuant to
 Section 3 of this Agreement will be treated as “payments” arising under
 such separate agreement.

 
	
  

 	
  

 
	
 10.

 	
 Employment. This Agreement does not give the Employee
 any right to continued employment with the Company or any parent or
 subsidiary thereof, and the Company or any parent or subsidiary thereof
 employing the Employee may terminate such employment or otherwise treat the
 Employee without regard to the effect it may have upon the Employee or any
 Restricted Shares under this Agreement.

 
	
  

 	
  

 
	
 11.

 	
 Tax
 Withholding. The
 parties to this Agreement recognize that the Company or a parent or
 subsidiary of the Company may be obligated to withhold federal and state
 income taxes or other taxes upon the vesting of the Restricted Shares, or, in
 the event that the Employee elects under Section 83(b) of the Code to
 report the receipt of the Restricted Shares as income in the year of receipt,
 upon the Employee’s receipt of the Restricted Shares. The Employee agrees
 that, at such time, if the Company or a parent or subsidiary is required to
 withhold such taxes, the Employee will promptly pay in cash upon demand to
 the Company, or the parent or subsidiary having such obligation, such amounts
 as shall be necessary to satisfy such obligation.

 
	
  

 	
  

 
	
 12.

 	
 Miscellaneous. This Agreement is binding in all respects
 on the Employee’s heirs, representatives, successors and assigns. This
 Agreement will be governed by and construed in accordance with the laws of
 the State of Minnesota. This Agreement contains all terms and conditions with
 respect to the subject matter hereof and no amendment, modification or other
 change hereto will be of any force or effect unless and until set forth in a
 writing executed by the Employee and the Company.

 

5

          The
Employee and the Company have executed this Agreement as of the Effective Date.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 
	
  

 	
     ____________________,
 Employee

 
	
  

 	
  

 
	
  

 	
 DAKOTA PLAINS HOLDINGS, INC.

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
      Its

 	
  

 

[Signature
Page to Restricted Stock Agreement]

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