Document:

<PAGE>

                                                                    EXHIBIT 10.1

                     VASCO Data Security International, Inc.
                              EMPLOYMENT AGREEMENT

      This Employment Agreement ("Agreement") is made and entered into as of
January 1, 2005 (the "Effective Date"), by and between VASCO Data Security
International, Inc., a Delaware corporation (the "Company"), and E-SECUVISION
BVBA (incorporated on 17.11.1999), having its registered office at 8501
Bissegem, Dumortierlaan 9, hereby represented by Mr. Jan VALCKE, Managing
Director, who, as an Independent Contractor, commits himself jointly and
severally; hereinafter referred to as (the "Executive").

      WHEREAS, the Company and the Executive desire to enter into this Agreement
to establish the rights and obligations of the Executive and the Company in such
employment relationship; and

      WHEREAS, the terms of this Agreement have been approved by the Board of
Directors of the Company,

      NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Executive and the Company
hereby agree as follows:

1. Employment of Executive.

      As of the Effective Date, the Company hereby engages and employs Executive
in an executive capacity as described in Exhibit A attached hereto, and
Executive hereby accepts such employment and agrees to act as an employee of the
Company in accordance with the terms of employment hereinafter specified
("Executive Employment").

2. Term of Executive Employment.

      The period of Executive Employment shall begin on the Effective Date and
continue until terminated as hereinafter provided (the "Employment Period").

3. Duties.

      (a) Executive shall be employed by Company as an Officer of the Company in
the capacity and with the duties set forth in Exhibit A attached hereto.

      (b) Nothing contained herein shall be construed so as to prohibit
Executive from performing such other or additional duties or responsibilities,
and exercising such other or additional authority in furtherance of the goals of
the Company, as the Executive and Chief Executive Officer and/or the Board of
Directors of the Company shall from time to time agree upon.

      (c) Executive shall devote such portion of his business time and attention
as is necessary to appropriately and efficiently discharge his duties and
responsibilities as herein set forth. If Executive so discharges his duties, he
may engage in other business and civic activities, in addition to those relating
to the Company's business, if such activities are not otherwise prohibited by
the terms of this Agreement, or do not substantially interfere with the
performance of such responsibilities.

4. Executive Salary and Compensation.

      (a) Base Salary. During the Employment Period, the Company shall pay or
cause to be paid to Executive an initial base salary ("Base Salary") as set
forth in Exhibit A attached hereto and made a part hereof, payable to Executive
on a periodic basis in accordance with the Company's then current executive
salary payment practice; provided, however, that the installments may not be
made less frequently than on a monthly basis. Such Base Salary shall be subject
to review in accordance with the Company's normal practice for executive salary
review from time to time in effect, and will not be

<PAGE>

reduced without the prior written consent of Executive. Any increase in Base
Salary shall be in writing and be attached to this Agreement as an amendment to
Exhibit A.

      (b) Incentive Compensation. The Compensation Committee of the Company's
Board of Directors (the "Committee") shall determine for each fiscal year of the
Company during the Employment Period the amount of incentive compensation, if
any, to be awarded to the Executive.

      (c) Taxes. The Executive shall be solely responsible for the payment of
any and all taxes and social contributions assessed by any and all government
agencies including, but not limited to, income and social security taxes related
to the compensation referred to in Section 4(a) and 4(b) of this Agreement

5. Expenses. The Company shall pay or reimburse Executive in accordance with the
Company's policy for all expenses reasonably incurred by Executive during the
period of Executive's Employment in connection with the performance of
Executive's duties under this Agreement, including, without limitation, travel,
entertainment and other business related expenses. The Company will also pay to
Executive a car allowance, in lieu of reimbursing Executive for car-related
expenses, of EURO 868 monthly. As the Company may reasonably request, Executive
shall provide to the Company documentation or supporting information relating to
the expenses for which Executive seeks reimbursement.

6. (a) Termination of Executive Employment Other than by the Executive. The
Company shall have the option to terminate Executive's employment with or
without cause, for any reason whatsoever, without any breach of this Agreement
under the following circumstances:

      (i)      Death or Disability. The Executive's employment hereunder shall
            terminate upon his death, and may be terminated by the Company in
            the event of his Disability, which for the purposes of this
            Agreement shall mean being unable to perform his duties to the
            Company as set forth herein for a continuous period of at least one
            hundred and eighty (180) days, provided that the Executive does not
            return to work on a substantially full-time basis within thirty (30)
            days after Notice of Termination is given by the Company pursuant to
            the provisions of this paragraph. A return to work of less than
            thirty (30) days shall not interrupt a continuous period of
            Disability. During any period that the Executive fails to perform
            his duties hereunder as a result of incapacity due to physical or
            mental illness, the Executive shall continue to receive his Base
            Salary at the rate then in effect until the date his employment is
            terminated.

      (ii)     Cause. The Company may terminate the Executive's employment for
            cause. For the purpose of this Agreement, "Cause" shall mean: any
            act by the Executive that constitutes fraud, dishonesty, bad faith
            or a felony toward the Company; any violation of the Company's then
            published Code of Ethics; the conviction of the Executive of a
            felony or crime involving moral turpitude; the Executive entering
            into any transaction or contractual relationship causing diversion
            of business opportunity from the Company (other than on behalf of
            the Company, or with the prior written consent of the Board of
            Directors of the Company); or the Executive's willful and continued
            neglect of his material duties hereunder after thirty (30) days
            written notice to the Executive by the Board of Directors. The
            Company will pay to the Executive all compensation owing through the
            date of termination; however, in no event will any bonus be paid to
            an Executive terminated for Cause. Executive is bound by the
            Non-Compete terms contained in this Agreement for the period of time
            set forth in Exhibit A.

      (iii)    Without Cause. The Company may terminate the Executive's
            employment hereunder without cause. If the Executive is terminated
            without Cause, the Company shall continue to pay the Executive his
            Base Salary at the rate then in effect for the period set forth in
            Exhibit A, from the Date of Termination. Executive is bound by the
            Non-Compete terms contained in this Agreement for the period of time
            set forth in Exhibit A.

   (b)   Termination of Employment by Executive.

      (i)      The Executive may terminate his employment at any time. If the
            Executive terminates his employment with the Company, the Company
            shall pay the Executive all compensation owing through the Date of
            Termination. Executive is bound by the Non-Compete terms contained
            in this Agreement for the period of time set forth in Exhibit A.

<PAGE>

      (ii)     For Good Reason. If the Executive terminates his employment for
            Good Reason, the Company shall continue to pay the Executive his
            Base Salary at the rate then in effect for the period set forth as
            Severance in Exhibit A, from the Date of Termination. Executive is
            bound by the Non-Compete terms contained in this Agreement for the
            period of time set forth in Exhibit A. For purposes of this
            Agreement, "Good Reason" shall mean:

               (1)   the assignment to the Executive of any duties inconsistent
                     in any respect with the Executive's position (including
                     status, offices, titles and reporting requirements),
                     authority, duties or responsibilities or any other action
                     by the Company which results in a diminution in such
                     position, authority, duties or responsibilities, excluding
                     for this purpose an isolated, insubstantial and inadvertent
                     action not taken in bad faith and which is remedied by the
                     Company promptly after receipt of notice thereof given by
                     the Executive;

               (2)   any failure by the Company to comply with any provision of
                     any employment agreement entered into between the Executive
                     and the Parent Company (or any direct or indirect
                     subsidiary thereof) other than an isolated, insubstantial
                     and inadvertent failure not occurring in bad faith and
                     which is remedied by the Company promptly after receipt of
                     notice thereof given by the Executive; or

               (3)   any failure by the Company to continue at least its
                     customary base compensation payments to the Executive.

      Any good faith determination of "Good Reason" made by the Executive shall
be conclusive.

   (c) Notice of Termination. Any termination of the Executive's employment
by the Company hereunder or by the Executive other than termination upon the
Executive's death, shall be communicated by written Notice of Termination to the
other party. For purposes of this Agreement, a "Notice of Termination" means a
notice that shall indicate the specific termination provision in this Agreement
relied upon, and shall set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive's
employment under the provision so indicated.

   (d) Date of Termination. "Date of Termination" shall mean:

      (i)   If Executive's employment is terminated by his death, the date of
            his death;

      (ii)  If the Executive's employment is terminated by the Company as a
            result of Disability pursuant to this paragraph, the date that is
            thirty (30) days after Notice of Termination given; provided the
            Executive shall not have returned to the performance of his duties
            on a full-time basis during such thirty (30) day period.

      (iii) If the Executive terminates his employment at his election pursuant
            to this paragraph, the date that is ten (10) days after Notice of
            Termination is given.

      (iv)  If the Executive's employment is terminated by the Company without
            Cause pursuant to this paragraph, the date that is ten (10) days
            after Notice of Termination is given.

      (v)   If the Executive's employment is terminated by the Company for Cause
            pursuant to this paragraph, the date on which Notice of Termination
            is given.

7. Change in Control.

   (a) For purposes hereof, a "Section 7 Termination" shall have occurred
if Executive's employment is terminated by the Company other than for Cause, at
any time following the occurrence of a change in control of VASCO Data Security
International, Inc. (the "Parent Company") or the Company.

   (b) "Change in Control" shall mean the happening of any of the following
events:

      (i)   An acquisition by any individual, entity or group (within the
            meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a
            "Person") of beneficial ownership (within the meaning of Rule 13d-

<PAGE>

            3 promulgated under the Exchange Act) of 25% or more of either (1)
            the then outstanding shares of common stock of the Company (the
            "Outstanding Company Common Stock") or (2) the combined voting power
            of the then outstanding voting securities of the Company entitled to
            vote generally in the election of directors (the "Outstanding
            Company Voting Securities"); excluding, however, the following: (1)
            any acquisition directly from the Company, other than an acquisition
            by virtue of the exercise of a conversion privilege unless the
            security being so converted was itself acquired directly from the
            Company, (2) any acquisition by the Company; (3) any acquisition by
            any employee benefit plan (or related trust) sponsored or maintained
            by the Company or any corporation controlled by the Company; or (4)
            any acquisition by any Person pursuant to a transaction which
            complies with clauses (1), (2) and (3) of subsection (iii) of this
            Section 7(b); or

      (ii)  Within any period of 24 consecutive months, a change in the
            composition of the Board such that the individuals who, immediately
            prior to such period, constituted the Board (such Board shall be
            hereinafter referred to as the "Incumbent Board") cease for any
            reason to constitute at least a majority of the Board; provided,
            however, for purposes of this Section 7(b)(ii), that any individual
            who becomes a member of the Board during such period, whose
            election, or nomination for election by the Company's stockholders,
            was approved by a vote of at least a majority of those individuals
            who are members of the Board and who were also members of the
            Incumbent Board (or deemed to be such pursuant to this proviso)
            shall be considered as though such individual were a member of the
            Incumbent Board; but, provided further, that any such individual
            whose initial assumption of office occurs as a result of either an
            actual or threatened election contest (as such terms are used in
            Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or
            other actual or threatened solicitation of proxies or consents by or
            on behalf of a Person other than the Board shall not be so
            considered as a member of the Incumbent Board; or

      (iii) The approval by the stockholders of the Company of a reorganization,
            merger or consolidation or sale or other disposition of all or
            substantially all of the assets of the Company ("Corporate
            Transaction"); excluding, however, such a Corporate Transaction
            pursuant to which (1) all or substantially all of the individuals
            and entities who are the beneficial owners, respectively, of the
            outstanding Company Common Stock and Outstanding Company Voting
            Securities immediately prior to such Corporate Transaction will
            beneficially own, directly or indirectly, more than 60% of,
            respectively, the 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 Corporate Transaction
            (including, without limitation, a corporation which as a result of
            such transaction owns the Company or all or substantially all of the
            Company's assets, either directly or through one or more
            subsidiaries) in substantially the same proportions as their
            ownership, immediately prior to such Corporate Transaction, of the
            outstanding Company Common Stock and Outstanding Company Voting
            Securities, as the case may be, (2) no Person (other than the
            Company; any employee benefit plan (or related trust) sponsored or
            maintained by the Company, by any corporation controlled by the
            Company, or by such corporation resulting from such Corporate
            Transaction) will beneficially own, directly or indirectly, more
            than 25% of, respectively, the outstanding shares of common stock of
            the corporation resulting from such Corporate Transaction or the
            combined voting power of the outstanding voting securities of such
            corporation entitled to vote generally in the election of directors,
            except to the extent that such ownership existed with respect to the
            Company prior to the Corporate Transaction, and (3) individuals who
            were members of the Board immediately prior to the approval by the
            stockholders of the Corporation of such Corporate Transaction will
            constitute at least a majority of the members of the board of
            directors of the corporation resulting from such Corporate
            Transaction; or

      (iv)  The approval by the stockholders of the Company of a complete
            liquidation or dissolution of the Company, other than to a
            corporation pursuant to a transaction which would comply with
            clauses (1), (2) and (3) of subsection (iii) of this Section 7(b),
            assuming for this purpose that such transaction were a Corporate
            Transaction.

   (c) If a Section 7 Termination occurs, the Company shall continue to pay
to Executive, as severance compensation, his Base Salary and Incentive
Compensation at the rate then in effect for the period set forth in Exhibit A,
from the effective date of Executive's termination. Executive is bound by the
Non-Compete terms contained in this Agreement for the period of time set forth
in Exhibit A. In lieu of regular payments of Base Salary, the Executive shall be

<PAGE>

entitled to receive, upon Executive's written election, a lump sum payment equal
to the present value of the stream of monthly payments due and unpaid. Executive
may also similarly elect to receive a lump sum payment equal to the present
value of the Incentive Compensation due pursuant to this Agreement. For purposes
of this computation, present value shall be calculated on the basis of the prime
rate of interest announced by the Company's principal bank, or if it has no such
bank, published in the Wall Street Journal, on the date of Executive's election
to receive the lump sum payments provided for herein.

   (d) In the event of a Change in Control, if the Executive terminates his
employment for Good Reason, the Company shall continue to pay the Executive his
Base Salary and Incentive Compensation at the rate then in effect for the period
set forth as Severance in Exhibit A, from the Date of Termination. In lieu of
regular payments of Base Salary, the Executive shall be entitled to receive,
upon Executive's written election, a lump sum payment equal to the present value
of the stream of monthly payments due and unpaid. Executive may also similarly
elect to receive a lump sum payment equal to the present value of the Incentive
Compensation due pursuant to this Agreement. Executive is bound by the
Non-Compete terms contained in this Agreement for the period of time set forth
in Exhibit A.

8. Non-Compete. In the event Executive terminates his employment or is
terminated pursuant to this Agreement, Executive hereby agrees that he shall
not, directly or indirectly, as employee, agent, consultant, stockholder,
director, co-partner or in any other individual or representative capacity, own,
operate, manage, control, invest in or participate in any manner in, act as a
consultant or advisor to, render services for (alone or in association with any
person, firm, corporation or entity), or otherwise assist any firm, corporation
or entity which is in direct competition with the Company ("Competitor") upon
the terms and conditions and for the term set forth in Exhibit A; provided,
however, that nothing contained herein shall be construed to prevent Executive
from investing in the stock of a Competitor, but only if Executive is not
involved in the business of said Competitor and if Executive and his associates
(as such term is defined in Regulation 14(A) promulgated under the Securities
Exchange Act of 1934, as in effect on the date hereof), collectively, do not own
more than an aggregate of two (2%) percent of the stock of such Competitor.

9. Mitigation of Amounts Payable Under This Agreement. The Executive shall not
be required to mitigate the amount of any payment provided for pursuant to this
Agreement by seeking other employment or otherwise, and, further, any payment or
benefit to be provided to Executive pursuant to this Agreement shall not be
reduced by any compensation or other amount earned or collected by Executive at
any time before or after the termination of Executive Employment hereunder.

10. Miscellaneous.

   (a) Notice. Any notice or other communication required or permitted
hereunder shall be in writing and shall be deemed given when delivered in person
or other forms of delivery including certified mail, fax, etc., to the following
addresses:

      (i)   if to the Company, to:

            VASCO Data Security International, Inc.
            1901 South Meyers Road, Suite 210
            Oakbrook Terrace, IL 60181
            Attn: Compensation Committee Chairman

      (ii)  If to Executive to:

            To the address set forth in Exhibit A.

      Any party may change its address for notice hereunder by notice to the
other party hereto.

   (b) Governing Law. The parties agree that this Agreement shall be construed
and governed in accordance with the laws of the State of Illinois applicable to
agreements made and to be performed entirely within such state.

   (c) Binding Effect. This Agreement shall be binding upon and incur to the
benefit of the parties hereto and their respective heirs, legal representatives,
executors, administrators, successors and assigns.

<PAGE>

   (d) Counterparts. This Agreement may be executed simultaneously in one or
more counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

   (e) Entire Agreement. This Agreement represents the entire agreement and
understanding of the parties hereto with respect to the matters set forth
herein. This Agreement supersedes all prior negotiations, discussions
correspondence, communications, understandings and agreements between the
parties, written or oral, relating to the subject matter of this Agreement. This
specifically includes the Agreement signed between the Executive and VASCO Data
Security NV, a wholly owned subsidiary of VASCO Data Security Europe which, in
turn, is a wholly owned subsidiary of the Parent Company, VASCO Data Security
International, Inc., effective November 1, 1999, which is hereby rendered null
and void. This Agreement may be amended, superseded, canceled, renewed, or
extended and the terms hereof may be waived, only by a written instrument signed
by the parties hereto or, in the case of a waiver, by the party waiving
compliance.

   (f) Waivers. No delay on the part of any party in exercising any right, power
or privilege hereunder shall operate as a waiver thereof. Nor shall any waiver
on the part of any party of any such right, power or privilege hereunder, nor
any single or partial exercise of any right, power or privilege hereunder,
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege hereunder.

   (g) Headings. The headings in this Agreement are inserted for convenience
only and are not to be considered in the interpretation or construction of the
provisions hereof.

   (h) Arbitration. Except for any claim or dispute which gives rise or could
give rise to equitable relief under this Agreement, at the request of the
Executive any disagreement, dispute, controversy or claim arising out of or
relating to this Agreement or the breach hereof shall be settled exclusively and
finally by arbitration. The arbitration shall be conducted in accordance with
such rules and before such arbitrator as the parties shall agree and if they
fail to so agree within 15 days after demand for arbitration, such arbitration
shall be conducted in accordance with the Commercial Arbitration Rules of the
American Arbitration Association (hereinafter referred to as "AAA Rules"). Such
arbitration shall be conducted in Chicago, Illinois, or in such other city as
the parties to the dispute may designate by mutual consent. The arbitral
tribunal shall consist of three arbitrators (or such lesser number as may be
agreed upon by the parties) selected according to the procedure set forth in the
AAA Rules in effect on the date hereof and the arbitrators shall be empowered to
order any remedy which is appropriate to the proceedings and issues presented to
them. The chairman of the arbitral tribunal shall be appointed by the American
Arbitration Association from among the three arbitrators so selected. Any party
to a decision rendered in such arbitration proceedings may seek an order
enforcing the same by any court having jurisdiction.

   (i) No Strict Construction. The language used in this Agreement will be
deemed to be the language chosen by the Executive and the Company to express
their mutual intent, and no rule of strict construction will be applied against
the Executive or Company.

   IN WITNESS WHEREOF, the Company and Executive have signed this Agreement as
of June 29, 2005.

                                        VASCO Data Security International, Inc.

                                        By:   /s/ Michael A. Mulshine
                                           -------------------------------------
                                                 Michael A. Mulshine
                                            Its: Compensation Committee Chairman

                                        By:   /s/ Jan Valcke
                                            ------------------------------------
                                                 Jan VALCKE

<PAGE>

                     VASCO Data Security International, Inc.
                              EMPLOYMENT AGREEMENT

                                    EXHIBIT A

Address: Jan Valcke
                  Managing Director
                  E-SECUVISION BVBA
                  8501 Bissegem, Dumortierlaan 9
                  Belgium

Salary: EURO 260,000 annualized to be billed to the appropriate subsidiary or
subsidiaries of the Company as determined by the Executive

Incentive Compensation: EURO 75,000 annually based upon achievement of
performance objectives set by the Compensation Committee of the Board of
Directors

Effective Date:  January 1, 2005

Title:   President and Chief Operating Officer

         Duties: Executive shall act as President and Chief Operating Officer of
         the Company and shall report directly to the Company's Chief Executive
         Officer. His responsibilities shall include overseeing and managing the
         day-to-day operations of the Company including sales, marketing, R&D,
         manufacturing, human resources, shipping, and all other operations,
         with the exception of finance and administration which reports to the
         Company's Chief Financial Officer. Executive will comply with all rules
         and regulations set out by the Sarbanes-Oxley Act of 2002 including,
         but not limited to, the active, constructive support of the Company's
         Code of Ethics and will manage the Company in an honest and trustworthy
         manner. Executive will also be charged with communicating clearly and
         truthfully with investors, analysts, the press, and other individuals
         and institutions.

Executive Leaves Without a Change of Control:

1. Terminated by the Company without Cause:
         Severance                                            Yes     24 months
         Non-compete                                          Yes     12 months

2. Terminated by the Company with Cause:
         Severance                                            No      0 months
         Non-compete                                          Yes     12 months

3. Executive quits without Good Reason:
         Severance                                            Yes     0 months
         Non-compete                                          Yes     12 months

4. Executive quits with Good Reason:
         Severance                                            Yes     24 months
         Non-compete                                          Yes     24 months

Executive Leaves In The Event of a Change of Control:

1.  Terminated
         Severance                                            Yes     24 months
         Non-compete                                          Yes     24 months

<PAGE>

2. Executive quits for Good Reason:
         Severance                                            Yes     24 months
         Non-compete                                          Yes     24 months

Severance & Non-compete:

Severance is meant to provide the executive with a reasonable period of time in
which to find new employment. So long as Severance continues, the executive is
expressly prohibited from joining a firm that is competitive to the Company.
After the Severance period is complete, and through the last month of the
Non-compete period, the executive is prohibited from contacting in any manner, a
customer or prospect of the Company that existed at the time of the executive's
departure from the Company. If there is no Severance, for the defined
Non-compete period from the executive's separation from the Company, the
executive is prohibited from contacting in any manner, a customer or Prospect of
the Company that existed at the time of the executive's departure from the
Company. A Prospect is defined as an organization that is listed on the
Company's forecasting reporting system at the time of the executive's separation
from the Company.<PAGE>

                                                                     EXHIBIT 4.2

                             SIOUXLAND ETHANOL, LLC

                             SUBSCRIPTION AGREEMENT

                   Limited Liability Company Membership Units

                                $10,000 PER UNIT

                     MINIMUM INVESTMENT OF 2 UNITS ($20,000)
                     1 UNIT INCREMENTS THEREAFTER ($10,000)

The undersigned subscriber, desiring to become a member of Siouxland Ethanol,
LLC ("Siouxland"), a Nebraska limited liability company, with its principal
place of business at 110 East Elk Street, Jackson, Nebraska 68743, hereby
subscribes for the purchase of the membership interests of Siouxland, and agrees
to pay the related purchase price, identified below.

A. SUBSCRIBER INFORMATION. Please print your individual or entity name and
address. Joint subscribers should provide their respective names. Your name and
address will be recorded exactly as printed below.

      1.    Subscriber's Printed Name _________________________________________

      2.    Title, if applicable:     _________________________________________

      3.    Subscriber's Address:     _________________________________________

             Street                   _________________________________________

             City, State, Zip Code    _________________________________________

      4.    Email Address:            _________________________________________

B. NUMBER OF UNITS PURCHASED. You must purchase at least 2 units. Your ownership
interest may not exceed 40% of all our outstanding membership units. We
presently have 195 units outstanding. Accordingly, assuming that we sell the
minimum number of 1,900 units in this offering, you may not purchase more than
838 units. The maximum number of units to be sold is 4,600.

        [ ]

C. PURCHASE PRICE. Indicate the dollar amount of your investment (minimum
investment is $20,000).

1. Total Purchase Price     =   2. 1st Installment   +   3. 2nd Installment
($10,000 Per Unit               (10% of the Total        (90% of the
multiplied by the               Purchase Price)          Total Purchase Price)
number in box B above.)

       [ ]                  =         [ ]            +           [ ]

D. GENERAL INSTRUCTIONS FOR SUBSCRIBERS:

You should read the Prospectus dated [DATE OF EFFECTIVENESS] (the "Prospectus")
in its entirety including exhibits for a complete explanation of an investment
in Siouxland Ethanol, LLC. To subscribe, you must:

INSTRUCTIONS IF YOU ARE SUBSCRIBING PRIOR TO THE COMPANY'S RELEASE OF FUNDS FROM
ESCROW: If you are subscribing prior to the Company's release of funds from
escrow, you must follow Steps 1 through 5 below:

      1. Complete all information required in this Subscription Agreement, and
date and sign the Subscription Agreement on page 6 and the Member Signature Page
to our Operating Agreement attached to this Subscription Agreement as Exhibit A.

                                       1
<PAGE>

      2. Immediately provide your personal (or business) check for the first
installment of ten percent (10%) of your investment amount made payable to U.S.
Bank, escrow agent for Siouxland Ethanol LLC. You will determine this amount in
box C.2 on page 1 of this Subscription Agreement.

      3. Execute the Promissory Note and Security Agreement on page 7 of this
Subscription Agreement evidencing your commitment to pay the remaining ninety
percent (90%) due for the Units that is attached to this Subscription Agreement
and grant Siouxland Ethanol, LLC a security interest in your Units.

      4. Deliver each of the original executed documents referenced in Items 1
and 3 of these Instructions, together with your personal or business check
described in Item 2 of these Instructions to the following:

              Siouxland Ethanol, LLC
              110 E. Elk Street
              Jackson NE 68743

      5. Upon written notice from Siouxland Ethanol, LLC stating that its sales
of Units have exceeded the Minimum Offering amount of $19,000,000, you must,
within twenty (20) days secure an additional personal (or business) check for
the second installment of ninety percent (90%) of your investment amount made
payable to U.S. Bank, NA escrow agent for Siouxland Ethanol, LLC in satisfaction
of the Promissory Note and Security Agreement. You will determine this amount in
box C.3 on page 1 of this Subscription Agreement. You must deliver this check to
the same address set forth above in Instruction 4 within twenty (20) days of the
date of Siouxland's written notice. If you fail to pay the second installment
pursuant to the Promissory Note and Security Agreement, Siouxland shall be
entitled to retain your first installment and to seek other damages, as provided
in the Promissory Note and Security Agreement. This means that if you are unable
to pay the 90% balance of your investment amount within 20 days of our notice,
you may have to forfeit the 10% cash deposit.

      Your funds will be placed in Siouxland's escrow account at U.S. Bank, NA.
The funds will be released to Siouxland or returned to you in accordance with
the escrow arrangements described in the Prospectus. Siouxland may, in its sole
discretion, reject or accept any part or all of your subscription. If Siouxland
rejects your subscription, your Subscription Agreement and investment will be
promptly returned to you, plus nominal interest, minus escrow fees. Siouxland
may not consider the acceptance or rejection of your subscription until a future
date near the end of this offering.

INSTRUCTIONS IF YOU ARE SUBSCRIBING AFTER THE COMPANY'S RELEASE OF FUNDS FROM
ESCROW: If you are subscribing after the Company's release of funds from escrow,
you must follow Steps 1 through 3 below:

      1. Complete all information required in this Subscription Agreement, and
date and sign the Subscription Agreement on page 6 and the Member Signature Page
to our Operating Agreement attached to this Subscription Agreement as Exhibit A.

      2. Immediately provide your personal (or business) check for the entire
amount of your investment (as determined in Box C.1 on page 1) made payable to
"SIOUXLAND ETHANOL, LLC."

      3. Deliver the original executed documents referenced in Item 1 of these
Instructions, together with your personal or business check described in Item 2
of these Instructions to the following:

              Siouxland Ethanol, LLC
              110 East Elk Street
              Jackson NE 68743

      If you are subscribing after we have released funds from escrow and we
accept your investment, your funds will be immediately at-risk as described in
the Prospectus. Siouxland may, in its sole discretion, reject or accept any part
or all of your subscription. If Siouxland rejects your subscription, your
Subscription Agreement and investment will be returned to you promptly, plus
nominal interest, minus escrow fees. Siouxland may not consider the acceptance
or rejection of your subscription until a future date near the end of this
offering.

                                       2
<PAGE>

YOU MAY DIRECT YOUR QUESTIONS TO ONE OF OUR DIRECTORS LISTED BELOW OR TO
SIOUXLAND AT 402-632-2676.

<TABLE>
<CAPTION>
   Director                     Cell Number                Home Number
   --------                     ------------               -----------
<S>                             <C>                        <C>
Tom Lynch                       712-251-3719               402-632-4995
Pam Miller                      712-251-0302               402-698-2122
Ronald Wetherell                712-436-2266               712-436-2488
Shennen Saltzman                712-203-1581               402-494-7592
</TABLE>

E. ADDITIONAL SUBSCRIBER INFORMATION. The subscriber, named above, certifies the
following under penalties of perjury:

      1.    FORM OF OWNERSHIP. Check the appropriate box (one only) to indicate
            form of ownership. If the subscriber is a Custodian, Corporation,
            Partnership or Trust, please provide the additional information
            requested.

            [ ]   Individual

            [ ]   Joint Tenants with Right of Survivorship (Both signatures must
                  appear on Page 6.)

            [ ]   Corporation, Limited Liability Company or Partnership
                  (Corporate Resolutions, Operating Agreement or Partnership
                  Agreement must be enclosed.)

            [ ]   Trust
                        Trustee's Name: _______________________________________
                        Trust Date: ___________________________________________

            [ ]   Other: Provide detailed information in the space immediately
                  below.
                  _____________________________________________________________
                  _____________________________________________________________
                  _____________________________________________________________

      2.    SUBSCRIBER'S TAXPAYER INFORMATION. Check the appropriate box if you
            are a non-resident alien, a U.S. Citizen residing outside the United
            States or subject to backup withholding. Trusts should provide their
            taxpayer identification number. Custodians should provide the
            minor's Social Security Number. All individual subscribers should
            provide their Social Security Number. Other entities should provide
            their taxpayer identification number.

            [ ]   Check box if you are a non-resident alien

            [ ]   Check box if you are a U.S. citizen residing outside of the
                  United States

            [ ]   Check this box if you are subject to backup withholding

            Subscriber's Social Security No.       ____________________________

            Joint Subscriber's Social Security No. ____________________________

            Taxpayer Identification No.            ____________________________

      3.    MEMBER REPORT ADDRESS. If you would like duplicate copies of member
            reports sent to an address that is different than the address
            identified in section A, please complete this section.

            Address: ___________________________________________
                     ___________________________________________

      4.    STATE OF RESIDENCE.

            State of Principal Residence:                ______________________

            State where driver's license is issued:      ______________________

            State where resident income taxes are filed: ______________________

            State(s) in which you have maintained your principal residence
            during the past three years:

            a [ ]                  b. [ ]                   c. [ ]

                                       3
<PAGE>

      5.    SUITABILITY STANDARDS. You cannot invest in Siouxland unless you
            meet one of the following suitability tests (a or b) set forth
            below. Please review the suitability tests and check the box next to
            the following suitability test that you meet. For husbands and wives
            purchasing jointly, the tests below will be applied on a joint
            basis.

            a. [ ] I (We) have annual income from whatever source of at least
                   $45,000 and a net worth of at least $45,000, exclusive of
                   home, furnishings and automobiles; or

            b. [ ] I (We) have a net worth of at least $100,000, exclusive of
                   home, furnishings and automobiles.

      6.    SUBSCRIBER'S REPRESENTATIONS AND WARRANTIES. You must read and
            certify your representations and warranties by initially where
            indicated and by signing and dating this Subscription Agreement.

(Initial    By signing below the subscriber represents and warrants to
here)       Siouxland that he, she or it:

_______     a.    has received a copy of Siouxland's Prospectus dated [DATE OF
                  EFFECTIVENESS] and the exhibits thereto;

_______     b.    has been informed that the Units of Siouxland are offered and
                  sold in reliance upon a federal securities registration;
                  Nebraska, South Dakota, and Iowa securities registrations; and
                  exemptions from securities registrations in various other
                  states, and understands that the Units to be issued pursuant
                  to this subscription agreement can only be sold to a person
                  meeting requirements of suitability;

_______     c.    has been informed that the securities purchased pursuant to
                  this Subscription Agreement have not been registered under the
                  securities laws of any state other than the States of
                  Nebraska, South Dakota and Iowa, and that Siouxland is relying
                  in part upon the representations of the undersigned Subscriber
                  contained herein;

_______     d.    has been informed that the securities subscribed for have not
                  been approved or disapproved by the Nebraska, South Dakota or
                  Iowa Securities Departments or any other regulatory authority,
                  nor has any regulatory authority passed upon the accuracy or
                  adequacy of the Prospectus;

_______     e.    intends to acquire the Units for his/her/its own account
                  without a view to public distribution or resale and that
                  he/she/it has no contract, undertaking, agreement or
                  arrangement to sell or otherwise transfer or dispose of any
                  Units or any portion thereof to any other person;

_______     f.    understands that there is no present market for Siouxland's
                  membership units, that the membership units will not trade on
                  an exchange or automatic quotation system, that no such market
                  is expected to develop in the future and that there are
                  significant restrictions on the transferability of the
                  membership units;

_______     g.    has been encouraged to rely upon the advice of his legal
                  counsel and accountants or other financial advisers with
                  respect to the tax and other considerations relating to the
                  purchase of units;

_______     h.    has received a copy of the Siouxland Amended and Restated
                  Operating Agreement, dated February 24, 2005, and understands
                  that upon closing the escrow by Siouxland, the subscriber and
                  the membership units will be bound by the provisions of the
                  Amended and Restated Operating Agreement which contains, among
                  other things, provisions that restrict the transfer of
                  membership units;

_______     i.    understands that the Units are subject to substantial
                  restrictions on transfer under state securities laws along
                  with restrictions in the Siouxland Amended and Restated
                  Operating Agreement and agrees that if the membership units or
                  any part thereof are sold or distributed in the future, the
                  subscriber shall sell or distribute them pursuant to the terms
                  of the Amended and Restated Operating Agreement, and the
                  requirements of the Securities Act of 1933, as amended, and
                  applicable state securities laws;

_______     j.    meets the suitability test marked in Item 5 above and is
                  capable of bearing the economic risk of this investment,
                  including the possible total loss of the investment;

_______     k.    understands that Siouxland will place a restrictive legend on
                  any certificate representing any unit containing substantially
                  the following language as the same may be amended by the
                  Directors of Siouxland in their sole discretion:

                                       4
<PAGE>

                        THE TRANSFERABILITY OF THE UNITS REPRESENTED BY THIS
                        CERTIFICATE IS RESTRICTED. SUCH UNITS MAY NOT BE SOLD,
                        ASSIGNED, OR TRANSFERRED, NOR WILL ANY ASSIGNEE, VENDEE,
                        TRANSFEREE, OR ENDORSEE THEREOF BE RECOGNIZED AS HAVING
                        ACQUIRED ANY SUCH UNITS FOR ANY PURPOSES, UNLESS AND TO
                        THE EXTENT SUCH SALE, TRANSFER, HYPOTHECATION, OR
                        ASSIGNMENT IS PERMITTED BY, AND IS COMPLETED IN STRICT
                        ACCORDANCE WITH, APPLICABLE STATE AND FEDERAL LAW AND
                        THE TERMS AND CONDITIONS SET FORTH IN THE AMENDED AND
                        RESTATED OPERATING AGREEMENT AS AGREED TO BY EACH
                        MEMBER.

                        THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT
                        BE SOLD, OFFERED FOR SALE, OR TRANSFERRED IN THE ABSENCE
                        OF EITHER AN EFFECTIVE REGISTRATION UNDER THE SECURITIES
                        ACT OF 1933, AS AMENDED, AND UNDER APPLICABLE STATE
                        SECURITIES LAWS, OR AN OPINION OF COUNSEL SATISFACTORY
                        TO THE COMPANY THAT SUCH TRANSACTION IS EXEMPT FROM
                        REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
                        AMENDED, AND UNDER APPLICABLE STATE SECURITIES LAWS.

_______     l.    understands that, to enforce the above legend, Siouxland may
                  place a stop transfer order with its registrar and stock
                  transfer agent (if any) covering all certificates representing
                  any of the membership units;

_______     m.    has examined the information presented in the prospectus and
                  exhibits and is competent to evaluate and establish that the
                  investment is consistent with the subscriber's risk tolerance
                  and investment goals such that the subscriber can bear the
                  economic risk of the purchase of Units including the total
                  loss of the undersigned's investment;

_______     n.    may not transfer or assign this subscription agreement, or any
                  of the subscriber's interest herein;

_______     o.    has written his, her, or its correct taxpayer identification
                  number under Item 3 on this subscription agreement;

_______     p.    is not subject to back up withholding either because he, she
                  or it has not been notified by the Internal Revenue Service
                  ("IRS") that he, she or it is subject to backup withholding as
                  a result of a failure to report all interest or dividends, or
                  the IRS has notified him, her or it that he is no longer
                  subject to backup withholding (Note this clause (p) should be
                  crossed out if the backup withholding box in Item 2 is
                  checked);

_______     q.    understands that execution of the attached Promissory Note and
                  Security Agreement will allow Siouxland or its assigns to
                  pursue the obligor for payment of the amount due thereon by
                  any legal means, including, but not limited to, acquisition of
                  a judgment against the obligor in the event that the
                  subscriber defaults on that Promissory Note and Security
                  Agreement; and

_______     r.    acknowledges that Siouxland may retain possession of
                  certificates representing subscriber's Units to perfect its
                  security interest in those Units.

SIGNATURE OF SUBSCRIBER/ JOINT SUBSCRIBER:

DATE: _______________________________

INDIVIDUALS:                                     ENTITIES:

_______________________________________________  ______________________________
  Name of Individual Subscriber (Please Print)   Name of Entity (Please Print)

_______________________________________________  ______________________________
     Signature of Individual                     Print Name and Title of Officer

                                       5
<PAGE>

__________________________________________________    __________________________
Name of Joint Individual Subscriber (Please Print)    Signature of Officer

__________________________________________________
     Signature of Joint Individual Subscriber

ACCEPTANCE OF SUBSCRIPTION BY SIOUXLAND ETHANOL, LLC:

Siouxland Ethanol, LLC hereby accepts the subscription for the above Units.

Dated this ___________ day of ___________________________, 200_______.

SIOUXLAND ETHANOL, LLC

By: _____________________________________

Its: _____________________________________

                                       6
<PAGE>

                     PROMISSORY NOTE AND SECURITY AGREEMENT

Date of Subscription Agreement: ___________________________________, 200__.

                                $10,000 PER UNIT

            MINIMUM INVESTMENT OF 2 UNITS ($20,000), 1 UNIT INCREMENTS
            THEREAFTER ($10,000)

___________ Number of Units subscribed

___________ Total Purchase Price ($10,000 per Unit multiplied by number of Units
            subscribed)

(_________) Less Initial Payment (10% of Principal Amount)

___________ Principal Balance

FOR VALUE RECEIVED, the undersigned hereby promises to pay to the order of
Siouxland Ethanol, LLC, a Nebraska limited liability company ("Siouxland"), at
its principal office located 110 East Elk Street, Jackson, Nebraska 68743, or at
such other place as required by Siouxland, the Principal Balance set forth above
in one lump sum to be paid without interest within 20 days following the call of
the Siouxland Board of Directors, as described in the Subscription Agreement. In
the event the undersigned fails to timely make any payment owed, the entire
balance of any amounts due under this full recourse Promissory Note and Security
Agreement shall be immediately due and payable in full with interest at the rate
of 12% per annum from the due date and any amounts previously paid in relation
to the obligation evidenced by this Promissory Note and Security Agreement may
be forfeited at the discretion of Siouxland.

The undersigned agrees to pay to Siouxland on demand, all costs and expenses
incurred to collect any indebtedness evidenced by this Promissory Note and
Security Agreement, including, without limitation, reasonable attorneys' fees.
This Promissory Note and Security Agreement may not be modified orally and shall
in all respects be governed by, construed, and enforced in accordance with the
laws of the State of Nebraska.

The provisions of this Promissory Note and Security Agreement shall inure to the
benefit of Siouxland and its successors and assigns, which expressly reserves
the right to pursue the undersigned for payment of the amount due thereon by any
legal means in the event that the undersigned defaults on obligations provided
in this Promissory Note and Security Agreement.

The undersigned waives presentment, demand for payment, notice of dishonor,
notice of protest, and all other notices or demands in connection with the
delivery, acceptance, performance or default of this Promissory Note and
Security Agreement.

The undersigned grants to Siouxland, and its successors and assigns ("Secured
Party"), a purchase money security interest in all of the undersigned's
Membership Units of Siouxland now owned or hereafter acquired. This security
interest is granted as non-exclusive collateral to secure payment and
performance on the obligation owed Secured Party from the undersigned evidenced
by this Promissory Note and Security Agreement. The undersigned further
authorizes Secured Party to retain possession of certificates representing such
Membership Units and to take any other actions necessary to perfect the security
interest granted herein.

Dated:    , 200  .
OBLIGOR/DEBTOR:                               JOINT OBLIGOR/DEBTOR:

_________________________________________     __________________________________
Printed or Typed Name of Joint Obligor        Printed or Typed Name of Obligor

By: _____________________________________     By: ______________________________
    (Signature)                                   (Signature)

_________________________________________
Officer Title if Obligor is an Entity

_________________________________________

_________________________________________
Address of Obligor

                                       7
<PAGE>

                                   EXHIBIT "A"

                              MEMBER SIGNATURE PAGE

                                     ADDENDA
                                     TO THE
                              AMENDED AND RESTATED
                             OPERATING AGREEMENT OF
                             SIOUXLAND ETHANOL, LLC

      The undersigned does hereby represent and warrant that the undersigned, as
a condition to becoming a Member in Siouxland Ethanol, LLC, has received a copy
of the Amended and Restated Operating Agreement, dated February 24, 2005, and,
if applicable, all amendments and modifications thereto, and does hereby agree
that the undersigned, along with the other parties to the Amended and Restated
Operating Agreement, shall be subject to and comply with all terms and
conditions of said Amended and Restated Operating Agreement in all respects as
if the undersigned had executed said Amended and Restated Operating Agreement on
the original date thereof and that the undersigned is and shall be bound by all
of the provisions of said Amended and Restated Operating Agreement from and
after the date of execution hereof.

INDIVIDUALS:                                  ENTITIES:
___________________________________________   __________________________________
   Name of Individual Member (Please Print)      Name of Entity (Please Print)
___________________________________________   __________________________________
   Signature of Individual                       Print Name and Title of Officer
___________________________________________   __________________________________
   Name of Joint Individual Member (Please       Signature of Officer
   Print)
___________________________________________
   Signature of Joint Individual Member

Agreed and accepted on behalf of the
Company and its Members:

SIOUXLAND ETHANOL, LLC

By: ___________________________________________

Its: __________________________________________

                                       1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]