Document:

Exhibit 10.8

 

EXECUTION COPY

 

MANAGEMENT AGREEMENT

                This Management Agreement (this “Agreement”)
is entered into as of the 30th day of June, 2006, by and between
Hawkeye Renewables, LLC, a Delaware limited liability company (the “Company”), and THL Managers VI, LLC, a Delaware limited
liability company (the “Sponsor”).

WHEREAS, certain affiliates of the Sponsor (the “Investors”) have acquired membership interests of the
Company’s parent, Hawkeye Intermediate, LLC (the “Investment”)
pursuant to that certain Membership Interest Purchase Agreement dated as of May
11, 2006, by and among the Company, the Investors, Hawkeye Holdings, L.L.C. and
the persons listed on the signatures pages thereto (as amended to date, the “Purchase Agreement”);

WHEREAS, in connection with the Investment and related
transactions, the Sponsor provided advice and analysis including advice with
respect to debt facilities and arrangements, and related arrangements and other
matters (collectively, “Advisory Services”);

WHEREAS, the Company will require the Sponsor’s management
advisory services in connection with its business operations and execution of
its strategic plan; and

WHEREAS, the Sponsor is willing to provide such services to
the Company.

NOW, THEREFORE, in consideration of the mutual covenants contained
herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound, hereby agree as follows:

1.             Services.  The Sponsor
hereby agrees that if, during the term of this Agreement (the “Term”), the Company reasonably and specifically requests
that the Sponsor provide the services set forth below and, in the case of the
services described in subsections (a) and (b), the Sponsor agrees to provide
such services, the Sponsor or one of its affiliates will provide the following
services to the Company and its subsidiaries:

 

(a)           advice in connection with the
negotiation and consummation of agreements, contracts, documents and
instruments related to the Company’s finances or relationships with banks or
other financial institutions;

(b)           advice with respect to the
development and implementation of strategies for improving the operating,
marketing and financial performance of the Company, and other senior management
matters related to the business, administration and policies of the Company;
and

(c)           review and comment on the descriptive
memorandums of potential acquisition opportunities for the Company.

The Sponsor shall
have no obligation to the Company as to the method or timing of services
rendered hereunder (provided that services shall be rendered in a reasonably
timely manner), and the Company shall not have any right to dictate or direct
the details of the performance of services by the Sponsor rendered hereunder.

 

The parties hereto
expressly acknowledge that the services to be performed hereunder by the
Sponsor shall not include investment banking or other financial advisory
services rendered by Sponsor or its affiliates to the Company in connection
with any specific acquisition, divestiture, refinancing or recapitalization by
the Company or any of its subsidiaries for which the Sponsor may be entitled to
receive additional compensation by mutual agreement of the Company or its
subsidiary and the Sponsor.  This
Agreement shall in no way prohibit the Sponsor or any of its affiliates or any
of their respective partners (both general and limited), members (both managing
and otherwise), officers, directors, employees, agents or representatives from
engaging in other activities, whether or not competitive with any business of
the Company of any of its affiliates.

2.             Payment of Fees.  In exchange for the Advisory
Services and the Sponsor’s agreement to provide the services described in
clauses (a), (b) or (c) of Section 1, the Company hereby agrees to pay to
the Sponsor (or its designee(s)) the following fees:

                                (a)           a transaction fee in connection with
the transactions contemplated in the Purchase Agreement payable at the Closing
(as defined in the Purchase Agreement) of $20,000,000; and

                                (b)           an annual management fee (the “Fee”) equal to the greater of (i) $2,000,000 or (ii)
1.0% of Adjusted EBITDA, payable semi-annually in advance (with respect to
subsection (ii), based on the prior year’s Adjusted EBITDA) beginning at the
Closing and thereafter on January 2nd and July 2nd of each year, provided, however, that if
either of such dates falls on a Saturday, Sunday, or a federal holiday, then
such payment shall be on the first business day thereafter.  With respect to subsection (ii), such Fee
payable shall be adjusted promptly following the determination of Adjusted
EBITDA for such fiscal year or on termination of this Agreement.  For purposes of this Agreement, the term “Adjusted EBITDA” shall have the same meaning set forth in
the Company’s principal credit agreement then in effect before deducting (A)
the Fee payable pursuant to this Section 2(b) and all other fees payable under
any other management agreements between affiliates of interest holders of the Company
and the Company and (B) any expenses relating to options or other equity
compensation recognized under Statement of Financial Accounting Standards 123.

                Each payment made pursuant to
this Section 2 shall be paid by wire transfer of immediately available funds to
the accounts specified on Exhibit A attached hereto, or to such other
account(s) as the Sponsor may specify in writing to the Company.  The first installment of the Fee shall be
payable at the Closing and shall be prorated to reflect the portion of the
current fiscal year which elapses from the Closing to July 2, 2006.  All references to “per annum” or “annual”
herein refer to the fiscal year of the Company.

3.             Term.  This Agreement shall be effective as of the
date hereof and shall continue in full force and effect until the earlier of
(i) seven (7) years from the date hereof, or (ii) the consummation of a public
offering of equity securities of the Company (or a successor corporation to the
Company) (the “IPO”); provided, however,
that if an IPO has not occurred within 24 months from the date hereof, then
upon termination of this Agreement upon such IPO, the Company shall pay to the
Sponsor a lump-sum termination fee equal to the net present value of the Fee
for a seven (7) year period (based upon the Fee for the immediately preceding
year) calculated using a discount rate equal to the ten-year treasury rate on
the date of such termination, provided, however, that such payment shall not
exceed $10,000,000.  Upon any termination
of this Agreement, each of (a) the 

 

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obligations
of the Company under Section 4 below, (b) any and all owed and unpaid
obligations of the Company under Section 2 above, and (c) the provisions of
Section 8, shall survive any termination of this Agreement to the maximum
extent permitted under applicable law.

4.             Expenses; Indemnification.

(a)           Expenses.  In addition to the fees set forth
in Section 2 hereof, the Company agrees to pay on demand all reasonable costs
and expenses incurred by the Sponsor and its affiliates or any of them in
connection with this Agreement and in connection with performing services
hereunder including but not limited to air travel charged at charter equivalent
rates, reasonable legal, consulting, out-of-pocket and other expenses,
including reasonable legal fees and expenses of outside counsel to Sponsor, and
any other consultants or advisors retained by the Sponsor or its counsel
arising in connection therewith, and the performance of
services hereunder (including, without limitation, reasonable fees and expenses
of independent professionals, research, transportation and per diem costs).

 

(b)           Indemnity and
Liability. The Company will indemnify and hold harmless each of the
Sponsor, its affiliates and their respective partners (both general and limited),
members (both managing and otherwise), officers, directors, employees, agents
and representatives (each such Person being an “Indemnified
Party”) from and against any and all losses, claims, damages and
liabilities, whether joint or several, expenses of any nature (including
reasonable attorneys’ fees and disbursements), judgments, fines, settlements
and other amounts arising from any and all claims, demands, actions, suits or
proceedings, whether civil, criminal, administrative, arbitral or investigative,
in which an Indemnified Party was involved or may be involved, or threatened to
be involved, as a party or otherwise (the “Liabilities”),
related to, arising out of or in connection with the advisory and consulting
services contemplated by this Agreement or the engagement of the Sponsors
pursuant to, and the performance by the Sponsors of the services contemplated
by, this Agreement, and any other action taken by an Indemnified Party on
behalf of the Company, whether or not pending or threatened, and any other
action taken by an Indemnified Party on behalf of the Company, whether or not
resulting in any liability and whether or not such action, claim, suit,
investigation or proceeding is initiated or brought by the Company.  The Company will reimburse any Indemnified
Party for all reasonable costs and expenses (including reasonable attorneys’
fees and expenses) as they are incurred in connection with investigating,
preparing, pursuing, defending or assisting in the defense of any action,
claim, suit, investigation or proceeding for which the Indemnified Party would
be entitled to indemnification under the terms of the previous sentence, or any
action or proceeding arising therefrom, whether or not such Indemnified Party
is a party thereto, provided that, subject to the following sentence, the
Company shall be entitled to assume the defense thereof at its own expense,
with counsel satisfactory to such Indemnified Party in its reasonable
judgment.  Any Indemnified Party may, at
its own expense, retain separate counsel to participate in such defense, and in
any action, claim, suit, investigation or proceeding in which both the Company
and/or one or more of its subsidiaries, on the one hand, and an Indemnified
Party, on the other hand, is, or is reasonably likely to become, a party, such
Indemnified Party shall have the right to employ one separate counsel at the
expense of the Company and to control its own defense of such action, claim,
suit, investigation or proceeding if, in the reasonable opinion of counsel to
such Indemnified Party, a conflict or potential conflict exists between the
Company, on the one hand, and such Indemnified Party, on the other hand, that
would make such separate representation advisable.  The Company agrees that it will not, without
the prior written consent of the applicable 

 

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Indemnified Party, settle,
compromise or consent to the entry of any judgment in any pending or threatened
claim, suit, investigation, action or proceeding relating to the matters
contemplated hereby (if any Indemnified Party is a party thereto or has been
threatened to be made a party thereto) unless such settlement, compromise or
consent includes an unconditional release of the applicable Indemnified Party
and each other Indemnified Party from all liability arising or that may arise
out of such claim, suit, investigation, action or proceeding.  Provided the Company is not in breach of its
indemnification obligations hereunder, no Indemnified Party shall settle or compromise
any claim subject to indemnification hereunder without the consent of the
Company.  The Company will not be liable
under the foregoing indemnification provision with respect to any Indemnified
Party, to the extent that any loss, claim, damage, liability, cost or expense
is determined by a court, in a final judgment from which no further appeal may
be taken, to have resulted primarily from the gross negligence or willful
misconduct by an Indemnified Party.  If
an Indemnified Party is reimbursed hereunder for any expenses, such
reimbursement of expenses shall be refunded to the extent it is finally
judicially determined that the Liabilities in question resulted primarily from
the gross negligence or willful misconduct of such Indemnified Party.  As used herein, the term “Person” shall be construed in the broadest sense and means
and includes a natural person, a partnership, a corporation, an association, a
joint stock company, a limited liability company, a trust, a joint venture, an
unincorporated organization and any other entity and any federal, state,
municipal, foreign or other government, governmental department, commission,
board, bureau, agency or instrumentality, or any private or public court or
tribunal.

The
Company agrees that if any indemnification sought by any Indemnified Party pursuant
to this Section 4 is unavailable for any reason or is insufficient to hold the
Indemnified Party harmless against any Liabilities referred to herein, then the
Company shall contribute to the Liabilities for which such indemnification is held unavailable or insufficient in
such proportion as is appropriate to reflect the relative benefits received (or
anticipated to be received) by the Company, on the one hand, and the
Indemnified Party, on the other hand, in connection with the transactions that gave
rise to such Liabilities or, if such allocation is not permitted by applicable
law, not only such relative benefits but also the relative faults of the
Company, on the one hand, and the Indemnified Party, on the other hand, as well
as any other equitable considerations, subject to the limitation that in any
event the aggregate contribution by the Indemnified Parties to all Liabilities
with respect to which contribution is available hereunder shall not exceed the
fees actually received by the Sponsor in connection with the transaction which
gave rise to such Liabilities (excluding any amounts paid as reimbursement of
expenses).

For the avoidance of
doubt, any director designated by the Sponsor or any of its affiliates and
serving on the Company’s board of directors shall not be entitled to seek
indemnification under this Agreement in their capacity as a director of the
Company, such directors instead will be entitled to indemnification provided
under applicable law, pursuant to the Company’s organizational documents, and
any other contractual arrangements applicable to such director.

5.             Assignment.  Except as
provided below, no party hereto shall have the right to assign this
Agreement.  The Sponsor acknowledges that
its services under this Agreement are unique. 
Accordingly, any purported assignment by the Sponsor (other than as
specifically permitted below) shall be void. 
Notwithstanding the foregoing, the Sponsor may assign all or part of its
rights and obligations hereunder to any affiliate of the Sponsor that provides
services similar to those called for by this Agreement.

 

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6.             Amendments and Waivers. 
No amendment or waiver of any term, provision or condition of this
Agreement shall be effective, unless in writing and executed by the Sponsor and
the Company.  No waiver on any one
occasion shall extend to or effect or be construed as a waiver of any right or
remedy on any future occasion.  No course
of dealing of any Person nor any delay or omission in exercising any right or
remedy shall constitute an amendment of this Agreement or a waiver of any right
or remedy of any party hereto.

7.             Opportunities.

(a)          Freedom
to Pursue Opportunities.  In
recognition that the Sponsor (to include, for purposes of this Section 7,
affiliates, associated investment funds or portfolio companies) currently has,
and will in the future have or will consider acquiring, investments in numerous
companies with respect to which the Sponsor may serve as an advisor, a director
or in some other capacity, and in recognition that the Sponsor have myriad
duties to various investors and partners, and in anticipation that the Company,
on the one hand and the Sponsor on the other hand, may engage in the same or
similar activities or lines of business and have an interest in the same areas of corporate opportunities, and in
recognition of the benefits to be derived by the Company hereunder and
in recognition of the difficulties which may confront any advisor who desires
and endeavors fully to satisfy such advisor’s duties in any particular situation,
the provisions of this Section 7(a) are set forth to regulate, define and guide
the conduct of certain affairs of the Company as they may involve the
Sponsor.  Except as the Sponsor may
otherwise agree in writing after the date hereof:

(i)         The
Sponsor shall have the right (A) to directly or indirectly engage in any
business (including, without limitation, any business activities or lines of
business that are the same as or similar to those pursued by, or competitive with, the Company and its subsidiaries), (B)
to directly or indirectly do business with any client or customer of the
Company and its subsidiaries, (C) to take any other action that the Sponsor
believes in good faith is necessary to or appropriate to fulfill its
obligations as described in the first sentence of this Section 7(a), and (D)
not to present potential transactions, matters or business opportunities to the
Company or any of its subsidiaries, and to pursue, directly or indirectly, any
such opportunity for itself, and to direct any such opportunity to another
person.

(ii)        The
Sponsor shall have no duty (contractual or otherwise) to communicate or present
any corporate opportunities to the Company or any of its subsidiaries or to
refrain from any actions specified in Section 7(a)(i), and the Company, on its
own behalf and on behalf of its subsidiaries, hereby renounce and waive any
right to require the Sponsor to act in a manner inconsistent with the
provisions of this Section 7(a).

(iii)       The
Sponsor shall not be liable to the Company or any of its subsidiaries for
breach of any duty (contractual or otherwise) by reason of any activities or
omissions of the types referred to in this Section 7(a) or of any such person’s
participation therein.

(b)           Limitation
of Liability.  In no event will the
Sponsor be liable to the Company or any of its subsidiaries for any indirect,
special, incidental or consequential damages, including, 

 

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without limitation, lost profits or savings, whether
or not such damages are foreseeable, or for any third-party claims (whether
based in contract, tort or otherwise), relating to the services to be provided
by the Sponsor hereunder.

8.             Miscellaneous.

(a)           Choice of Law.  This Agreement shall be governed
by and construed in accordance with the domestic substantive laws of the State
of New York without giving effect to any choice or conflict of law provision or
rule that would cause the application of the domestic substantive laws of any
other jurisdiction.

(b)           Consent to Jurisdiction.  Each of the parties agrees that
all actions, suits or proceedings arising out of or based upon this Agreement
or the subject matter hereof shall be brought and maintained exclusively in the
federal and state courts of the State of New York.  Each of the parties hereto by execution hereof
(i) hereby irrevocably submits to the jurisdiction of the federal and state
courts in the State of New York for the purpose of any action, suit or
proceeding arising out of or based upon this Agreement or the subject matter
hereof and (ii) hereby waives to the extent not prohibited by applicable law,
and agrees not to assert, by way of motion, as a defense or otherwise, in any
such action, suit or proceeding, any claim that it is not subject personally to
the jurisdiction of the above-named courts, that it is immune from
extraterritorial injunctive relief or other injunctive relief, that its
property is exempt or immune from attachment or execution, that any such
action, suit or proceeding may not be brought or maintained in one of the
above-named courts, that any such action, suit or proceeding brought or
maintained in one of the above-named courts should be dismissed on grounds of forum
non  conveniens, should be transferred to any court other than one
of the above-named courts, should be stayed by virtue of the pendency of any
other action, suit or proceeding in any court other than one of the above-named
courts, or that this Agreement or the subject matter hereof may not be enforced
in or by any of the above-named courts. 
Each of the parties hereto hereby consents to service of process in any
such suit, action or proceeding in any manner permitted by the laws of the
State of New York, agrees that service of process by registered or certified
mail, return receipt requested, at the address specified in or pursuant to
Section 11 is reasonably calculated to give actual notice and waives and agrees
not to assert by way of motion, as a defense or otherwise, in any such action,
suit or proceeding any claim that service of process made in accordance with Section
11 does not constitute good and sufficient service of process.  The provisions of this Section 8(b) shall not
restrict the ability of any party to enforce in any court any judgment obtained
in a federal or state court of the State of New York.

(c)           Waiver of Jury Trial. TO
THE EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH CANNOT BE WAIVED, EACH OF THE
PARTIES HERETO HEREBY WAIVES, AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS
PLAINTIFF, DEFENDANT, OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN
RESPECT OF ANY ISSUE, CLAIM, DEMAND, CAUSE OF ACTION, ACTION, SUIT OR
PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE SUBJECT HEREOF,
IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER IN CONTRACT
OR TORT OR OTHERWISE.  Each of the
parties hereto acknowledges that it has been informed by each other party that
the provisions of this Section 8(c) constitute a material inducement upon which
such party is relying and will rely in entering into this Agreement and the
transactions contemplated hereby.  Any of
the parties hereto may file an original 

 

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counterpart or a copy of
this Agreement with any court as written evidence of the consent of each of the
parties hereto to the waiver of its right to trial by jury.

                9.             Independent
Contractor.  The parties agree and
understand that the Sponsor is and shall act as an independent contractor of
the Company in the performance of its duties hereunder.  The Sponsor is not, and in the performance of
its duties hereunder will not hold itself out as, an employee, agent or partner
of the Company.

                10.           Merger/Entire
Agreement.  This Agreement contains
the entire understanding of the parties with respect to the subject matter
hereof and supersedes any prior communication or agreement with respect
thereto.

                11.           Notice.  All
notices, demands, and communications of any kind which any party may require or
desire to serve upon any other party under this Agreement shall be in writing
and shall be served upon such other party and such other party’s copied persons
as specified below by facsimile or by personal delivery to the address set
forth for it below or to such other address as such party shall have specified
by notice to each other party or by mailing a copy thereof by certified or
registered mail, or by Federal Express or any other reputable overnight courier
service, postage prepaid, with return receipt requested, addressed to such
party and copied persons at such addresses. 
In the case of service by facsimile or personal delivery, it shall be deemed
complete on the first business day after the date of actual delivery to such
address.  In case of service by mail or
by overnight courier, it shall be deemed complete, whether or not received, on
the third day after the date of mailing as shown by the registered or certified
mail receipt or courier service receipt. 
Notwithstanding the foregoing, notice to any party or copied Person of
change of address shall be deemed complete only upon actual receipt by an officer
or agent of such party or copied person.

If to the Company:

Hawkeye
Renewables, LLC

21050 140th Street

Iowa Falls, IA  50126

Attention:  Chief Executive
Officer

Facsimile:  (641) 648-8925

 

If to the Sponsor:

THL Managers VI, LLC

c/o Thomas H. Lee Partners, L.P.

100 Federal Street

Boston, MA 02110

Attention: Scott Sperling

                   Thomas Hagerty

                   Soren Oberg

Facsimile: 
(617) 227-3514

 

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with a
copy to:

Weil, Gotshal &
Manges LLP

100 Federal Street

Boston, Massachusetts
02110

Attention: James Westra

                   Marilyn
French

Facsimile:  (617) 772-8333

 

 

12.           Severability.  If in any
judicial or arbitral proceedings a court or arbitrator shall refuse to enforce
any provision of this Agreement, then such unenforceable provision shall be
deemed eliminated from this Agreement for the purpose of such proceedings to
the extent necessary to permit the remaining provisions to be enforced.  To the full extent, however, that the
provisions of any applicable law may be waived, they are hereby waived to the
end that this Agreement be deemed to be a valid and binding agreement
enforceable in accordance with its terms, and in the event that any provision
hereof shall be found to be invalid or unenforceable, such provision shall be
construed by limiting it so as to be valid and enforceable to the maximum
extent consistent with and possible under applicable law.

13.           Counterparts.  This
Agreement may be executed in any number of counterparts and by each of the
parties hereto in separate counterparts, each of which when so executed shall
be deemed to be an original and all of which together shall constitute one and
the same agreement.

14.           Headings.  All
descriptive headings in this Agreement are inserted for convenience only and
shall be disregarded in construing or applying any provision of this Agreement.

15.           Prevailing Party.  If any legal
action or other proceedings is brought for a breach of this Agreement or any of
the warranties herein, the prevailing party shall be entitled to recover its
reasonable attorneys’ fees and other costs incurred in bringing such action or
proceeding, in addition to any other relief to which such party may be
entitled.

* * * * *

 

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IN WITNESS WHEREOF, each of the parties has caused this Agreement to be
executed on its behalf as an instrument under seal as of the date first above
written by its officer or representative thereunto duly authorized.

 

 

	
   

  	
  HAWKEYE
  RENEWABLES, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

	
   

  	
  THL MANAGERS VI, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Thomas H. Lee Partners,
  L.P., its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  THL Equity Advisors VI,
  L.P., its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott Sperling

  
	
   

  	
   

  	
  Name: Scott Sperling

  
	
   

  	
   

  	
  Title: Managing
  Director

  

 

 

9Exhibit 10.9

 

EXECUTION COPY

 

 

RESTRICTED UNIT AGREEMENT

 

This Restricted Unit
Agreement (this “Agreement”) is made as of this 30th day
of June, 2006 (the “Effective Date”) between Hawkeye Intermediate, LLC,
a Delaware limited liability company (the “Company”), Hawkeye Holdings,
Inc., a Delaware corporation (“IPO Corp.”), and Timothy Callahan (the “Employee”).
Certain capitalized terms used herein are defined in Section 7
hereof.

 

WHEREAS, the Company
believes it to be in the best interests of the Company and its unitholders to
take action to promote work-force stability, to reward performance and
otherwise align interests of key management employees with those of the
Company;

 

WHEREAS, accordingly the
Company has determined to issue restricted units in accordance with the
provisions of this Agreement; and

 

WHEREAS, after the
Conversion (as defined below) it is intended that the provisions of this
Agreement shall continue to apply to the common stock of IPO Corp. received in
the Conversion.

 

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

 

1.             Issuance of Employee Units.

 

(a)           Upon execution of this Agreement, the Company will issue
to the Employee that number of Class B Common Units of the Company (the “Class B
Common Units”) set forth below such Employee’s name on the signature page
attached hereto. All of such Class B Common Units issued to the Employee hereby
are referred to herein as “Employee Units.”  To secure the Company’s rights under the
Repurchase Option in Section 3, the Company will retain possession
of the certificates representing the Employee Units and will provide the
Employee with copies thereof, provided that upon the Company’s or IPO Corp.’s
initial Public Offering (as defined in the Securityholders’ Agreement), the
Company or IPO Corp., as the case may be, shall immediately deliver original
certificates representing the Vested Units (if the Company has an initial
Public Offering) or vested Restricted Stock (as herein defined) (if IPO Corp.
has an initial Public Offering) to Employee.

 

(b)           In connection with the acquisition of the Employee Units
hereunder, the Employee represents and warrants to the Company that:

 

(i)            the Employee Units to be acquired by
the Employee pursuant to this Agreement will be acquired for the Employee’s own
account, for investment only and not with a view to, or intention of,
distribution thereof in violation of the Securities Act, or any applicable
state securities laws, and the Employee Units

 

 

will not be disposed of in
contravention of the Securities Act or any applicable state securities laws or
this Agreement or the Securityholders Agreement;

 

(ii)           the Employee has such knowledge and
experience in business and financial matters and with respect to investments in
securities of privately held companies so as to enable the Employee to
understand and evaluate the risks and benefits of his or her investment in the
Employee Units;

 

(iii)          the Employee has no need for liquidity
in his or her investment in the Employee Units and is able to bear the economic
risk of his or her investment in the Employee Units for an indefinite period of
time and understands that the Employee Units have not been registered or
qualified under the Securities Act or any applicable state securities laws, by
reason of the issuance of the Employee Units in a transaction exempt from the
registration and qualification requirements of the Securities Act or such state
securities laws and, therefore, cannot be sold unless subsequently registered
or qualified under the Securities Act or such state securities laws or an
exemption from such registration or qualification is available;

 

(iv)          the Employee acknowledges that he or
she is aware that the Employee Units may not be sold pursuant to Rule 144
promulgated under the Securities Act unless all of the conditions of that Rule
are met. Among the current conditions for use of Rule 144 by certain holders is
the availability to the public of current information about the Company. Such
information is not now available, and the Company has no current plans to make
such information available;

 

(v)           the Employee has had an opportunity
to ask questions and receive answers concerning the terms and conditions of the
offering of the Employee Units and has had full access to or been provided with
such other information concerning the Company as the Employee has requested;
and

 

(vi)          this Agreement constitutes the legal,
valid and binding obligation of the Employee, enforceable in accordance with
its terms, and the execution, delivery and performance of this Agreement by the
Employee does not and will not conflict with, violate or cause a breach of any
agreement, contract or instrument to which the Employee is a party or any
judgment, order or decree to which the Employee is subject.

 

(c)           As an inducement to the Company to issue the Employee
Units to the Employee and as a condition thereto, the Employee acknowledges and
agrees that:

 

(i)            neither the issuance of the Employee
Units to the Employee nor any provision contained herein shall entitle the
Employee to remain in the employment of the Company or its subsidiaries or
affect the right of the Company to terminate the Employee’s employment at any
time for any reason; and

 

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(ii)           except as provided in any other
agreement between the Company or any subsidiary thereof and the Employee, the
Company shall have no duty or obligation to disclose to the Employee, and the
Employee shall have no right to be advised of, any material information
regarding the Company and its subsidiaries, if any, at any time prior to, upon
or in connection with the forfeiture of the Employee Units upon the termination
of the Employee’s employment with the Company or a subsidiary thereof.

 

(d)           In connection with the issuance of the Employee Units or
the Restricted Stock, the Company and IPO Corp. jointly and severally represent
and warrant that:

 

(i)            the Company is a limited liability
company duly formed, validly existing and in good standing under the laws of
the jurisdiction of its formation and has all requisite limited liability
company power and authority to own, lease and operate the assets used in its
business, to carry on its business as presently conducted, to enter into this
Agreement, to perform its obligations hereunder, and to consummate the
transactions contemplated hereby;

 

(ii)           IPO Corp. is a corporation duly
incorporated, validly existing and in good standing under the laws of the
jurisdiction of its incorporation and has all requisite corporate power and
authority to own, lease and operate the assets used in its business, to carry
on its business as presently conducted, to enter into this Agreement, to
perform its obligations hereunder, and to consummate the transactions
contemplated hereby;

 

(iii)          the Company has taken all limited
liability company action necessary to authorize its execution and delivery of
this Agreement, its performance of its obligations thereunder, and its
consummation of the transactions contemplated thereby;

 

(iv)          IPO Corp. has taken all corporate
action necessary to authorize its execution and delivery of this Agreement, its
performance of its obligations thereunder, and its consummation of the
transactions contemplated thereby;

 

(v)           this Agreement constitutes a legal,
valid and binding obligation of each of the Company and IPO Corp., enforceable
in accordance with its terms, and the execution, delivery and performance of
this Agreement by each of the Company and IPO Corp., does not and will not
conflict with, violate or cause a breach of the Certificate of Formation or
Operating Agreement of the Company, the Certificate of Incorporation or Bylaws
of IPO Corp., each as amended and as currently in effect, or any agreement,
contract or instrument to which either of the Company or IPO Corp. is a party
or in which it is bound or any law, regulation, ordinance, judgment, order or
decree to which the Company or IPO Corp. is subject;

 

(vi)          no consent, approval, authorization or
other order of, or registration, qualification or filing with, any regulatory
body, administrative

 

3

 

agency or other governmental
body is required for the execution and delivery of this Agreement and the valid
issuance and sale of the Employee Units or the Restricted Stock, other than
such as have been made or obtained, and except for any securities filings
required to be made under federal or state securities laws; and

 

(vii)         the Employee Units and the Restricted
Stock have been duly authorized, and when issued in accordance with the terms
of this Agreement, will be duly and validly issued, fully paid and
nonassessable, and will not have been issued in violation of any preemptive
rights or similar rights to subscribe for or purchase securities of either the
Company or IPO Corp.

 

2.             Hurdle Amount and Vesting of Employee Units.

 

(a)           Hurdle Amount. The Hurdle Amount (as such term is
defined in the LLC Agreement) applicable to the Employee Units is $390,000,000,
and represents the aggregate fair market value of all of the equity of the
Unitholders (as that term is defined in the LLC Agreement) as of the date
hereof (after giving effect to the acquisition of membership interests of the
Company by THL).

 

(b)           Vesting. The Employee Units granted hereunder will
be deemed “vested” (the “Vested Units”) in accordance with this Section 2(b).

 

(i)            Vesting in General. Employee
Units will become Vested Units as follows:

 

(A)          Fifty percent (50%) of the Employee
Units granted under this Agreement (the “Time Units”) will vest in
forty-eight (48) equal installments on the last day of each calendar month
occurring after the date of this Agreement; provided, that the Employee is an
employee, whether at-will or otherwise, of an Employer on such date.

 

(B)           Fifty percent (50%) of the Employee
Units granted under this Agreement (the “Time-Performance Units”) will
vest in sixty (60) equal installments on the last day of each calendar month
occurring after the date of this Agreement; provided, that the
Employee is an employee, whether at-will or otherwise, of an Employer on such
date; further  provided  that, no such Time-Performance
Units will be considered vested unless THL has previously (together with any
proceeds to be received concurrently at the time of determination) received in
cash proceeds (the “Return”) either as distributions with respect to, or
from the sale or disposition of, THL’s initial equity investment in the Company
and any subsequent equity investments in the Company (the “Investment”)
(excluding any management or transaction fees or expenses but including any
amounts received by THL in respect of the cash savings, if any, in U.S. federal
income or Iowa franchise taxes as a result of the increase in tax basis of the
Company’s assets as a result of the acquisition of the

 

4

 

Company’s interests by THL
as the date hereof and any other payment made to THL under Section 3.6(b) of
the Securityholders’ Agreement) an amount equal to 200% of THL’s Investment
(the “Return Hurdle”)..

 

(ii)           Vesting Upon a Change of Control.
Notwithstanding Section 2(b)(i):

 

(A)          all Time Units that have not
previously vested will become Vested Units upon a Change of Control; and

 

(B)           all Time-Performance Units that have
not previously vested will vest in full upon a Change of Control if the Return
Hurdle has been met. In the event of a Change of Control in which all or a
portion of the consideration payable to the Company’s equityholders is in the
form of equity securities, the value of the equity securities will be included
in the calculation of whether the Return Hurdle has been met. If the Return
Hurdle has not been met, then that number of Time-Performance Units that have
not previously vested will vest as follows: 
(i) the total number of unvested Time-Performance Units multiplied
by (ii) the Percentage. The Percentage shall equal the following
number, expressed as a percentage: 
(x) 0.5 multiplied  by (y) the percentage by which the
Return exceeds 100% of THL’s Investment.

 

For purposes of illustration
only, if the Return was 150%, then the Time-Performance Units would be 25%
vested, and if the Return was 110%, then the Time-Performance Units would be 5%
vested

 

(iii)          Vesting Upon Termination Without
Cause; Good Reason or Certain Instances of Death or Disability.
Notwithstanding Section 2(b)(i), in the event the Employee’s employment with an
Employer, whether at will or otherwise, is terminated (A) by an Employer
for any reason other than Cause (as defined in this Agreement), (B) by the
Employee for Good Reason (as defined in this Agreement); or (C) by reason
of the Employee’s death or Disability (as defined in this Agreement) which
occurs in connection with the performance of the Employee’s employment duties,
then the vesting of the Employee Units will accelerate as follows:

 

(A)          if, at the time of such termination,
less than 33.33% of the Employee Units are Vested Units (based only on the time
portion of vesting and assuming, for purposes of this subparagraph (iii) only,
that the performance goals of the Time-Performance Units have been met), then
33.33% of the Employee Units shall be deemed Vested Units;

 

(B)           if, at the time of such termination
at least 33.33%, but less than 66.66% of the Employee Units are Vested Units
(based only on the time portion of vesting and assuming, for purposes of this
subparagraph

 

5

 

(iii) only, that the
performance goals of the Time-Performance Units have been met), then 66.66% of
the Employee Units shall be deemed Vested Units; and

 

(C)           if, at the time of such termination,
at least 66.66%, but less than 100%, of the Employee Units are Vested Units
(based only on the time portion of vesting and assuming, for purposes of this
subparagraph (iii) only, that the performance goals of the Time-Performance
Units have been met), then 100% of the Employee Units shall be deemed Vested
Units.

 

(iv)          Vesting Upon Death or Disability.
Notwithstanding Section 2(b)(i), in the event the Employee’s employment
with an Employer, whether at will or otherwise, is terminated by reason of
death or Disability (other than death or Disability which occurs in connection
the performance of the Employee’s employment duties), then vesting of the
Employee Units shall be accelerated by one year such that the applicable date
of termination for vesting shall be deemed to be one year after the actual date
of termination.

 

(c)           Transfers of Employment Among Employers. For
purposes of this Agreement, any transfer of the Employee’s employment from one
Employer to another Employer shall not constitute a termination of employment
with an Employer.

 

3.             Repurchase or Forfeiture of Employee Units.

 

(a)           In the event that the Employee ceases to be an employee,
whether at-will or otherwise, of an Employer, then all Employee Units which are
not Vested Units in accordance with Section 2 hereof, will be forfeited
and returned to the Company.

 

(b)           In the event the Employee ceases to be an employee of an
Employer (i) by reason of termination by an Employer for Cause, or (ii) by
reason of the Employee’s voluntary termination with or without Good Reason,
then all Employee Units which are Vested Units in accordance with Section 2
hereof, will be subject to repurchase by the Company, at the Company’s option
(the “Repurchase Option”), for Fair Market Value. The Repurchase Option
shall terminate upon the Company’s or IPO Corp.’s initial Public Offering (as
defined in the Securityholders’ Agreement).

 

(c)           The Repurchase Option shall be exercised by the Company,
or its designee, from time to time, with respect to Vested Units within 270
days after the date of termination by delivering to the Employee a written
notice of exercise and a check in the amount of the Fair Market Value, if
applicable, determined as of the date the Employee ceased to be employed by an
Employer. Upon delivery of such notice and payment of the purchase price as
described above (or automatically upon any forfeiture of Employee Units
pursuant to Section 3(a), the Company, or its designee, shall become the
legal and beneficial owner of the Employee Units being repurchased and all
rights and interest therein or related thereto, and the Company, or its
designee, shall have the right to transfer to its own name the number of
Employee Units being repurchased

 

6

 

without further action by
the Employee or any of his or her transferees. If the Company or its designee
elects to exercise the Repurchase Option pursuant to this Section 3
and the Employee or his or her transferee fails to deliver the Employee Units
in accordance with the terms hereof, the Company, or its designee, may, at its
option, in addition to all other remedies it may have, deposit the purchase
price in an escrow account administered by an independent third party (to be
held for the benefit of and payment over to the Employee or his or her
transferee in accordance herewith), whereupon (or, in any case, upon any forfeiture
of Employee Units pursuant to this Section 3) the Company shall by
written notice to the Employee cancel on its books the certificates(s)
representing such Employee Units registered in the name of the Employee and all
of the Employee’s or his or her transferee’s right, title, and interest in and
to such Employee Units shall terminate in all respects; provided that the
Company shall instruct the escrow agent to release the purchase price to the
Employee immediately following the Employee’s or his or her transferee’s
delivery of certificates representing the Employee Units or a written
acknowledgement by the Employee that the Employee’s or his or her transferee’s
right, title and interest in and to such Employee Units has been terminated in
all respects.

 

(d)           Notwithstanding the foregoing, if at any time the Company
elects to repurchase any Employee Units pursuant to the Repurchase Option, the
Company shall pay the purchase price for the Employee Units it purchases
(i) first, by offsetting indebtedness, if any, owing from the Employee to
the Company and (ii) then, by the Company’s delivery of cash for the remainder
of the purchase price, if any, against delivery of the certificates or other
instruments representing the Employee Units so purchased, duly endorsed; provided
that, (x) if any such cash payment at the time such payment is required
to be made would result (A) in a violation of any law, statute, rule,
regulation, policy, order, writ, injunction, decree or judgment promulgated or
entered by any federal, state, local or foreign court or governmental authority
applicable to the Company or any of its subsidiaries or any of its or their
property or (B) after giving effect thereto, in a Financing Default, or
(y) if the Board determines in good faith that immediately prior to such
purchase there shall exist a Financing Default which prohibits such purchase
((x) and (y) collectively the “Cash Deferral Conditions”), the portion
of the cash payment so affected may be made by the Company’s delivery of a
promissory note or senior preferred units of the Company with a liquidation
preference equal to the balance of the purchase price. The promissory note or
senior preferred units shall accrue interest or yield, as the case may be,
annually at the “prime rate” published in The Wall Street Journal on the date
of issuance, which interest or yield, as the case may be, shall be payable at
maturity. The value of each such senior preferred unit shall as of its issuance
be deemed to equal (A) the portion of the cash payment paid by the
issuance of such preferred units divided by (B) the number of senior
preferred units so issued. Any senior preferred units or the promissory note shall be redeemed or
payable when and to the extent the Cash Deferral Condition which prompted their
issuance no longer exists. The Company shall use its reasonable best efforts to
cause any Cash Deferral Conditions to be resolved.

 

(e)           In the event that Employee Units are repurchased or
forfeited pursuant to this Section 3, the Employee and his or her
successors, assigns or Representatives shall

 

7

 

take (at the Company’s
expense) all steps necessary and desirable to obtain all required third-party,
governmental and regulatory consents and approvals and take all other actions
necessary and desirable to facilitate consummation of such repurchase in a
timely manner.

 

4.             Conversion of Class B Common Units. Upon the
Conversion, the terms of this Agreement, including, without limitation, all
vesting and forfeiture provisions, will continue to apply to any shares of
common stock of IPO Corp. received in exchange for Class B Common Units (the “Restricted
Stock”) and thereafter all references to the “Company” shall mean IPO Corp.
and all references to the “Employee Units” shall mean the Restricted Stock.

 

5.             Legend.

 

The certificates
representing the Employee Units will bear the following legend:

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO FORFEITURE,
REPURCHASE RIGHTS AND CERTAIN OTHER AGREEMENTS SET FORTH IN A RESTRICTED UNIT
AGREEMENT DATED AS OF JUNE 30, 2006, BETWEEN THE COMPANY, HAWKEYE HOLDINGS,
INC. AND THE OTHER SIGNATORY THERETO. A COPY OF SUCH AGREEMENT MAY BE OBTAINED
BY THE HOLDER HEREOF AT THE COMPANY’S PRINCIPAL PLACE OF BUSINESS WITHOUT
CHARGE.

 

THE
SALE, TRANSFER, ASSIGNMENT, PLEDGE, OR ENCUMBRANCE OF THE SECURITIES
REPRESENTED BY THIS CERTIFICATE AND THE RIGHTS OF THE HOLDER OF SUCH SECURITIES
IN RESPECT OF THE ELECTION OF DIRECTORS ARE SUBJECT TO A SECURITYHOLDERS
AGREEMENT DATED JUNE 30, 2006 AMONG THE COMPANY AND CERTAIN HOLDERS OF ITS
EQUITY INTERESTS. COPIES OF SUCH AGREEMENT MAY BE OBTAINED AT NO COST BY
WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE
SECRETARY OF THE COMPANY.

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT
AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
ANY STATE SECURITIES OR BLUE SKY LAWS. THESE SECURITIES MAY NOT BE SOLD OR
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER
SAID ACT OR LAWS.”

 

6.             Restrictions on Transfer, Conversion and Voting.

 

(a)           The Company and the Employee acknowledge and agree that
the Employee Units are subject to and restricted by the Securityholders
Agreement. Notwithstanding anything to the contrary contained in the
Securityholders Agreement regarding rights to transfer Employee Units, any
Employee Units that have not become Vested Units pursuant to Section 2
hereof may not be transferred to any Person.

 

8

 

(b)           Prior to any Transfer, the transferee shall agree, by
execution of a Joinder Agreement, to be bound by this Agreement as holder of
Employee Units and by the Securityholders Agreement. Any Transfer or attempted
Transfer of any Employee Units in violation of the preceding sentence shall be
void, and the Company shall not record such Transfer on its books or treat any
purported transferee of such Employee Units as the owner of such Employee Units
for any purpose.

 

(c)           In the event any Employee Units have
voting rights, the Employee agrees that so long as the Employee owns Employee
Units which have not become Vested Units pursuant to Section 2
hereof, the Employee shall be obligated to vote all of his, her or its Employee
Units which have not become Vested Units pursuant to Section 2
hereof in the same manner and proportions as the votes cast by the holders of a
majority of the Company’s voting equity interests not subject to such
repurchase rights. If the Employee fails or refuses to vote his, her or its
Employee Units which have not become Vested Units pursuant to Section 2
hereof as required by, or votes his, her or its Employee Units which have not
become Vested Units pursuant to Section 2 hereof in contravention
of this Section 6(c), then the Employee hereby grants to each of
the Chief Executive Officer and Chief Financial Officer of the Company, acting
solely in his or her capacity as such, an irrevocable proxy, coupled with an
interest, to vote such Employee Units in accordance with Section 6(c).

 

7.             Definitions.

 

The following terms shall
have the meanings ascribed below:

 

“Affiliate” of any
particular Person means any other Person controlling, controlled by or under
common control with such particular Person or, with respect to any individual,
such individual’s spouse and descendants (whether natural or adopted) and any
trust, partnership, limited liability company or similar vehicle established
and maintained solely for the benefit of (or the sole members or partners of
which are) such individual, such individual’s spouse and/or such individual’s
descendants.

 

“Board” means the
Board of Managers of the Company and, after the Conversion, the Board of
Directors of IPO Corp.

 

“Cause” shall mean,
with respect to the Employer of Employee, (a) the admission, confession, or
plea bargain to or conviction in a court of law of any felony or other crime
involving moral turpitude or the commission by the Employee of any other act or
any omission to act involving dishonesty, disloyalty or fraud, involving the
Company which is material; (b) engaging in conduct that is demonstrably and
materially injurious to the business, reputation, character, or community
standing of the Employer (c) continued material failure to perform the material
duties of the Employee’s employment for 15 days after written notice from the
Employer to the Employee providing a detailed description of the failure
constituting cause; (d) gross negligence or willful misconduct with respect to
the Employer that is demonstrably and materially injurious to the Company; or
(e) breach of any restrictive covenant with the Employer not cured within 15
days of written notice from the Employer to the Executive providing a

 

9

 

detailed description of the
activities constituting Cause (or if the Employee’s employment with an Employer
is pursuant to an employment agreement at the time of his termination of
employment, then Cause shall be as defined in such employment agreement).

 

“Change of Control”
shall mean the consummation of a transaction, whether in a single transaction
or in a series of related transactions that are consummated contemporaneously
(or consummated pursuant to contemporaneous agreements), with any other party or
parties, other than an Affiliate of THL, on an arm’s-length basis, pursuant to
which (a) a party or group (as defined under Rule 13d under the Securities
Exchange Act of 1934, as amended) who is not a unitholder of the Company on the
Effective Date, acquires, directly or indirectly (whether by merger, stock
purchase, recapitalization, reorganization, redemption, issuance of capital
stock or otherwise), more than 50% of the voting power of the Company or
otherwise becomes entitled to designate a majority of the members of the
Company’s Board, or (b) such party or parties, directly or indirectly, acquire
assets constituting all or substantially all of the assets of the Company and
its subsidiaries on a consolidated basis.

 

“Class B Common Units”
has the meaning set forth in Section 1(a) hereof.

 

“Code” shall mean the
Internal Revenue Code of 1986, as amended.

 

“Conversion” shall
mean the conversion of Class B Common Units of the Company to common stock of
IPO Corp. in accordance with Section 3.6 of the Securityholders Agreement.

 

“Disability” shall
mean any physical or mental disability of the Employee rendering the Employee
unable to perform the duties of his employment for a period of at least 120
days out of any twelve-month period. Any determination of Disability shall be
made by the Board in consultation with a qualified physician or physicians
selected by the Board and reasonably acceptable to the Employee.

 

“Employee Units” has
the meaning set forth in Section 1(a) hereof. The Employee Units
will continue to be Employee Units in the hands of any holder other than the
Employee (except for the Company and except for transferees in a public sale)
and, except as otherwise provided herein, each such other holder of the
Employee Units will succeed to all rights and obligations attributable to the
Employee as a holder of the Employee Units hereunder. The Employee Units will
also include equity interests of the Company issued with respect to the
Employee Units by way of an equity split, dividend of equity or other
recapitalization.

 

“Employer” means the
Company and its subsidiaries and at all times includes Hawkeye Renewables, LLC
and IPO Corp. and their subsidiaries and shall also include any successor to
the Company after a Change in Control.

 

“Fair Market Value”
shall be determined by the Board in good faith; provided, however,
that if Employee does not agree to the Board’s determination of Fair Market
Value, the parties shall submit not later than ninety (90) days following

 

10

 

Employee’s receipt of the Board’s determination of Fair Market Value
the matter to PriceWaterhouse Coopers (or any accounting firm mutually agreed
to by the Employee and the Company) (the “Accountants”), for resolution. The
Company or IPO Corp., as the case may be, and Employee shall provide access to
and shall deliver copies of the books and records, including work papers,
financial statements, schedules and notes thereto, of the Company or IPO Corp.,
as the case may be, and any such documents or information as the Accountants
request to determine the Fair Market Value. The parties shall have the
opportunity to present to the Accountants any material relevant to the
determination of Fair Market Value and to discuss the matter with the Accountants,
provided that the other parties hereto receive a copy of any and all such
documents and information delivered to the Accountants and are afforded the
opportunity to be present at any meeting with the Accountants and to discuss
its views with the Accountants. The Company or IPO Corp., as the case may be,
and Employee, will each bear 50% of the Accountants’ fees and expenses for such
resolution. The Accountants’ determination of Fair Market Value will be final,
conclusive and binding on the parties and nonappealable.

 

“Financing Default”
means any event of default or breach under the Senior Debt Agreements.

 

“Good Reason”
means:  (i) a material diminution in
or assignment of duties inconsistent with Employee’s position prior to the date
of this Agreement or a change in the Employee’s direct reporting relationship,
provided, however, that a change in title shall not itself be considered a
material diminution; (ii) a reduction in base salary or a reduction in any
annual bonus (it being understood that the failure to receive an annual bonus
or a reduced annual bonus due to failure to meet applicable performance targets
shall not be considered a reduction in annual bonus hereunder); (iii) if the
Employee’s employment with an Employer is pursuant to an employment agreement
at the time of his termination of employment, then Good Reason shall be as
defined in such employment agreement; (iv) any material breach of the
Securityholders’ Agreement, the IPO Corp. Securityholders’ Agreement or the LLC
Agreement by the Company which is not cured within 15 days after written notice
of such breach is provided by Executive to the Company; or (v) any material
breach of the Executive Employment and Non-Competition Agreement dated June 30,
2006 among the Employee, Hawkeye Renewables, LLC, Hawkeye Holdings, Inc. and
Hawkeye Intermediate, LLC by an Employer which is not cured within 15 days
after written notice of such breach is provided by Executive to the Employer.

 

“IPO Corp.
Securityholders’ Agreement”  means
the IPO Corp. Securityholders’ Agreement dated June 30, 2006 between Hawkeye
Holdings, Inc. and certain securityholders of IPO Corp., as amended, modified
or supplemented from time to time.

 

“LLC Agreement” means
that certain Amended and Restated Limited Liability Company Agreement of the
Company dated June 30, 2006 by and among the Company, Hawkeye Holdings,
L.L.C., certain Affiliates of THL and the other parties thereto.

 

11

 

“Person” shall be
construed broadly and shall include, without limitation, an individual, a
partnership, an investment fund, a limited liability company, a corporation, an
association, a joint stock company, a trust, a joint venture, an unincorporated
organization and a governmental entity or any department, agency or political
subdivision thereof.

 

“Representative”
means, with respect to the deceased Employee, the duly appointed, qualified and
acting personal representative (or personal representatives collectively) of
the estate of the deceased Employee (or portion of such estate that includes
Employee Units), whether such personal representative holds the position of
executor, administrator or other similar position qualified to act on behalf of
such estate.

 

“Securities Act”
means the Securities Act of 1933, as amended, or any successor federal law then
in force.

 

“Securityholders
Agreement” means the Limited Liability Securityholders Agreement dated June
30, 2006 between the Company and certain securityholders of the Company, as
amended, modified or supplemented from time to time.

 

“Senior Debt Agreements”
shall mean (i) that certain First Lien Credit Agreement dated as of
June 30, 2006 (the “First Lien Credit Agreement”), among the
Company, THL-Hawkeye Acquisition LLC, a Delaware limited liability company (“Merger
Sub”), to be merged with and into Hawkeye Renewables, LLC, a Delaware
limited liability company (the “Operating Company”), the lenders party
thereto (the “First Lien Lenders”), and Credit Suisse, as administrative
agent and as collateral agent for the First Lien Lenders, (ii) all other
Loan Documents (as defined in the First Lien Credit Agreement) delivered in
connection with the First Lien Credit Agreement, (iii) that certain Second
Lien Credit Agreement dated as of June 30, 2006 (the “Second Lien
Credit Agreement”), among the Company, Merger Sub, to be merged with and
into the Operating Company, the lenders party thereto (the “Second Lien
Lenders”), and Credit Suisse, as administrative agent and as collateral
agent for the Second Lien Lenders and (iv) all other Loan Documents (as
defined in the Second Lien Credit Agreement) delivered in connection with the
Second Lien Credit Agreement.

 

“THL” means Thomas H.
Lee Equity Fund VI, L.P., a Delaware limited partnership, and its Affiliates.

 

“Transfer” means the
sale, transfer, assignment, pledge or other disposal (whether with or without
consideration and whether voluntarily or involuntarily or by operation of law)
of any Employee Units; provided, that a Transfer does not include any Employee
Units which are Vested Units or Restricted Stock that has vested in accordance
with the terms of this Agreement.

 

8.             General Provisions.

 

(a)           Severability. The parties agree that each provision
herein shall be treated as a separate and independent clause, and the
unenforceability of any one clause shall in

 

12

 

no way impair the enforceability of any other clauses of this
Agreement. If any one or more provisions of this Agreement is held to be
invalid or unenforceable for any reason, including due to being overbroad in
scope activity, subject or otherwise: (i) this Agreement shall be considered
divisible; (ii) such provision shall be deemed inoperative to the extent it is
deemed invalid or unenforceable; and (iii) in all other respects this Agreement
shall remain full force and effect; provided, however, that if any such
provision maybe made valid or enforceable by limitation thereof, then such
provision shall be deemed to be so limited and shall be valid and/or enforceable
to the maximum extent permitted by applicable law.

 

(b)           Entire Agreement. This Agreement and the
Securityholders Agreement constitute
the entire agreement and understanding of the parties hereto concerning the
subject matter hereof and from and after the date of this Agreement, this
Agreement shall supersede any other prior negotiations, discussions, writings,
agreements or understandings, both written and oral, between the parties with
respect to such subject matter.

 

(c)           Counterparts. This Agreement may be executed in
separate counterparts, each of which is deemed to be an original and all of
which taken together constitute one and the same agreement.

 

(d)           Successors and Assigns.

 

(i)             This Agreement is personal to the
Employee and without the prior written consent of the Company shall not be
assignable by the Employee. This Agreement shall inure to the benefit of and
shall be enforceable by the Employee and the Employee’s legal representatives,
heirs, successors and permitted assigns.

 

(ii)            This Agreement shall inure to the
benefit of and be binding upon the Company and its successors and assigns.

 

(iii)           Nothing in this Agreement, express or
implied, is intended to or shall confer upon any person other than the parties
hereto, and their respective heirs, legal representatives, successors, and
permitted assigns, any rights, benefits, or remedies of any nature whatsoever
under or by reason of this Agreement.

 

(e)           Governing Law. This Agreement shall be governed by
and construed in accordance with the laws of the State of Delaware, without
giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Delaware or any other jurisdiction) that would cause
the application of the law of any jurisdiction other than the State of Delaware.

 

(f)            Remedies. Each of the parties to this Agreement
and any such Person granted rights hereunder whether or not such Person is a
signatory hereto shall be entitled to enforce its rights under this Agreement
specifically to recover damages and costs (including reasonable attorney’s
fees) for any breach of any provision of this Agreement and to exercise all
other rights existing in its favor. The parties hereto agree and

 

13

 

acknowledge that money damages may not be an adequate remedy for any
breach of the provisions of this Agreement and that any party and any such
Person granted rights hereunder whether or not such Person is a signatory
hereto may in its sole discretion apply to any court of law or equity of
competent jurisdiction for specific performance and/or other injunctive relief
(without posting any bond or deposit) in order to enforce or prevent any
violations of the provisions of this Agreement.

 

(g)           Amendment and Waiver. The provisions of this
Agreement may be amended and waived only with the prior written consent of the
Company and the Employee and no course of conduct or failure or delay in
enforcing the provisions of this Agreement shall be construed as a waiver of
such provisions or affect the validity, binding effect or enforceability of
this Agreement or any provision hereof.

 

(h)           Notices. Any notice provided for in this Agreement
must be in writing and must be either personally delivered, transmitted via
facsimile, mailed by first class mail (postage prepaid and return receipt
requested) or sent by reputable overnight courier service (charges prepaid) to
the recipient at the address below indicated or at such other address or to the
attention of such other person as the recipient party has specified by prior
written notice to the sending party. Notices will be deemed to have been given
hereunder and received when delivered personally, when received if transmitted
via facsimile, five (5) days after deposit in the U.S. mail and one (1) day after
deposit with a reputable overnight courier service.

 

If to the Company or IPO
Corp., to:

 

Hawkeye Intermediate, LLC

Hawkeye Holdings, Inc.

c/o Hawkeye Renewables, LLC

21050 140th Street

Iowa Falls, IA 50126

	
  Attention:

  	
  Chief Executive Officer

  
	
  Facsimile:

  	
  (641) 648-8925

  

 

With a copy to:

 

Thomas H. Lee Partners, L.P.

100 Federal Street, 35th
Floor

Boston, MA  02110

	
  Attention:

  	
  Scott Sperling

  
	
   

  	
  Thomas Hagerty

  
	
   

  	
  Soren Oberg

  
	
  Facsimile:

  	
  (617) 227-3514

  

 

If to the Employee, to the
address set forth underneath the Employee’s name on the signature pages hereto.

 

14

 

(i)            Business Days. If any time period for giving
notice or taking action hereunder expires on a day which is a Saturday, Sunday
or holiday in the state in which the Company’s chief executive office is
located, the time period for giving notice or taking action shall be
automatically extended to the business day immediately following such Saturday,
Sunday or holiday.

 

(j)            Survival of Representations, Warranties and Agreements.
All representations, warranties and agreements contained herein shall survive
the consummation of the transactions contemplated hereby and the termination of
this Agreement indefinitely.

 

(k)           Descriptive Headings. The descriptive headings of
this Agreement are inserted for convenience only and do not constitute a part
of this Agreement.

 

(l)            Construction. Where specific language is used to
clarify by example a general statement contained herein, such specific language
shall not be deemed to modify, limit or restrict in any manner the construction
of the general statement to which it relates. The language used in this
Agreement shall be deemed to be the language chosen by the parties to express
their mutual intent, and no rule of strict construction shall be applied
against any party.

 

(m)          WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO
HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING
OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 

(n)           Nouns and Pronouns. Whenever the context may
require, any pronouns used herein shall include the corresponding masculine,
feminine or neuter forms, and the singular form of nouns and pronouns shall
include the plural and vice versa.

 

 

[SIGNATURE
PAGE FOLLOWS]

 

15

 

IN WITNESS WHEREOF, the
parties hereto have executed this Restricted Unit Agreement as of the date
first written above.

 

	
   

  	
  HAWKEYE INTERMEDIATE, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bruce Rastetter

  
	
   

  	
  Name:

  	
  Bruce Rastetter

  
	
   

  	
  Title:

  	
  CEO

  
	
   

  	
   

  	
   

  
	
   

  	
  HAWKEYE HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bruce Rastetter

  
	
   

  	
  Name:

  	
  Bruce Rastetter

  
	
   

  	
  Title:

  	
  CEO

  
					

 

16

 

	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
  /s/ Timothy Callahan

  
	
   

  	
  Timothy Callahan

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Number of Employee Units
  Received:
 650,000

  

 

17

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