Document:

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Exhibit 10.1

EMPLOYMENT AND SEPARATION AGREEMENT

     This EMPLOYMENT AND SEPARATION
AGREEMENT (“Agreement”) is made on September 18, 2006 between
SteelCloud, Inc. (“SteelCloud”) and Robert Richmond (“Employee”).

     WHEREAS, SteelCloud desires to employ Employee as SteelCloud’s Chief Operating Officer and
Employee desires to accept such employment from SteelCloud; and

     WHEREAS
the parties desire to record the arrangements made for such
employment;

     NOW, THEREFORE, the parties agree as follows:

     1. TERM OF EMPLOYMENT. Employee’s employment with SteelCloud shall continue from the date
first above written for a period of one year, subject to the termination rights of either party as
set forth in sections 5 or 7 below. This Agreement shall continue thereafter from month to month
unless terminated by either party pursuant to the terms of this Agreement.

     2. DUTIES AND POSITION. Employee shall be the Chief Operating Officer of SteelCloud, and shall
exert his best efforts to provide day to day operational management in furtherance of SteelCloud’s
business, which shall include, but not be limited to, all aspects of the operating of the business,
development and cultivation of business relationships and opportunities, marketing, advertising,
promotion, hiring, firing and supervision of all employees, office management, and fulfilling all
administrative functions in the operation of SteelCloud’s business. Employee shall report directly
to Cliff Sink, SteelCloud’s Chief Executive Officer. The parties contemplate that Employee shall
work not less than full time, and shall be available seven days a week, as needed, throughout the
period of this Agreement.

     3. SALARY / BENEFITS.

          a. For his services, SteelCloud shall pay Employee a Salary of $175,000.00 per year, payable
pro rata on the regular payroll days of the company, less federal, state, and local taxes and other
required withholdings. The Salary is subject to change at the discretion of SteelCloud’s Board of
Directors.

          b. In addition to the Salary set forth above, SteelCloud shall provide to Employee the
following employee benefits: (1) paid family coverage health and dental insurance under the
standard SteelCloud policies for said insurance, and (2) paid vacation and sick leave pursuant to
the standard SteelCloud policies.

          c. In addition, upon presentation of satisfactory documentation, Employee shall be reimbursed
those out of pocket expenses reasonably incurred in the performance of his duties. SteelCloud
reserves the right to refuse reimbursement of expenditures which were not pre-approved and which
SteelCloud finds are inappropriate.

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          d. In addition to the foregoing, Employee and SteelCloud shall enter into (i) a separate stock
option agreement, pursuant to which Employee will be given an option for 100,000 SCLD shares, such
option to vest over a period of 4 years, subject to the terms of the separate stock option
agreement; and (ii) a separate bonus agreement, pursuant to which Employee shall be entitled to a
bonus, not to exceed $25,000 per year, subject to the terms of the bonus agreement. The parties
agree to negotiate in good faith the terms of these agreements.

     4. EMPLOYEE TO DEVOTE FULL TIME TO COMPANY. Employee will exert his best efforts, energies and
attention on a full time basis to the business of SteelCloud. During this employment, Employee
will not engage in any other non-passive business activity, regardless of whether such activity is
pursued for profit, gain, or other pecuniary advantage, or regardless of whether such activity is
competitive with SteelCloud.

     5. DISABILITY/ILLNESS. If Employee is unable to perform his duties, as described in
paragraph number 2, as a result of illness and such illness continues
for more than sixty (60) days, SteelCloud may terminate Employee’s employment, and/or otherwise modify this
Agreement with regard to Employee’s compensation and duties.

     6. CONFIDENTIALITY/PROPRIETARY INFORMATION. Employee acknowledges that during the course of
his employment relationship with SteelCloud, there may be disclosed to him certain trade secrets,
methodology, or other proprietary data of SteelCloud and others with which SteelCloud has
contractual relationships (hereinafter “Confidential Information”); said Confidential Information
consisting of, but not limited to: customer lists, pricing data, SteelCloud’s financial
information, technical information, and marketing, production, or merchandising systems or plans.
Employee agrees that he shall not during, or at any time after the termination of, his employment
relationship with SteelCloud, use for himself or others, or disclose or divulge to others,
including but not limited to future employers or other businesses with which he may have a
contractual relationship, any Confidential Information. Should Employee reveal or threaten to
reveal any of this information, SteelCloud shall be entitled to an injunction restraining Employee
from disclosing same, or from rendering any services to any entity to whom said information has
been or is threatened to be disclosed. The right to secure an injunction is not exclusive, and
SteelCloud may pursue any other remedies it has against Employee for a breach or threatened breach
of this condition, including the recovery of damages from Employee.

     7. TERMINATION OF AGREEMENT. Employee and SteelCloud recognize that Employee is an employee at
will and that this Agreement and Employee’s employment may be terminated by either party at any
time, with or without cause, provided that any such termination is in accordance with the terms
contained below.

          a. If SteelCloud shall terminate Employee without cause effective prior to the first
anniversary of this Agreement, SteelCloud shall pay Employee severance equal to the balance of his
annual Salary not paid because of the termination effective prior to the anniversary date.
SteelCloud may pay this severance, at its option, in a lump sum, or in installments no less often
than SteelCloud’s regular salary payment schedule from the effective date of termination until the
pay period covering the first anniversary of this Agreement.

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          b. If the Employee shall terminate his employment, Employee shall give SteelCloud sixty (60)
days notice. During this period, Employee shall perform such functions as required by the Company
and shall be paid his Salary. Notwithstanding the foregoing, should there be a Change in Control
of SteelCloud effective prior to the first anniversary of this Agreement, which Employee reasonably
determines to impact negatively his position at SteelCloud, Employee may terminate this Agreement
immediately and, if he does terminate, he shall be entitled to severance pay equal to his annual
Salary of $175,000. SteelCloud may pay this severance, at its option, in a lump sum, or in
installments no less often than SteelCloud’s regular salary payment schedule over the course of a
year. A “Change in Control” shall be deemed to have occurred should there be a dissolution or
liquidation of SteelCloud or a partial liquidation involving 50% or more of the assets of the
company, a reorganization of the company in which another entity is the survivor, a merger or
reorganization of the company under which more than 50% of SteelCloud’s common stock outstanding
prior to the merger or reorganization is converted into cash or into a security of another entity,
a sale of more than 50% of the company’s assets, or a similar event that the Board of Directors
determines, in its discretion, materially alters the structure of the company or its ownership.

          c. If SteelCloud shall terminate the Employee for cause, Employee shall have no right to
receive any notice. “For cause” as used in this paragraph shall mean Employee’s deliberate violation of a company rule reasonably designed to protect the legitimate
business interests of SteelCloud, or when Employee’s acts or omissions are of such a nature or so
recurrent as to manifest a willful disregard of those interests and the duties and obligations he
owes to SteelCloud.

          d. Employee agrees that, immediately upon the termination of his relationship with SteelCloud,
regardless of the reason, he shall return to SteelCloud all Confidential Information and also all
other documents and property of SteelCloud, including, but not necessarily limited to: data
descriptions, reports, manuals, correspondence, customer lists, computers, and all other materials
and all copies thereof relating in any way to SteelCloud’s business, or in any way obtained by him
during the course of his employment relationship with SteelCloud. Employee further agrees that he
shall not retain copies, notes or abstracts of the foregoing.

     8. RESTRICTION ON POST EMPLOYMENT.

          a. For a period of two (2) years after the termination of Employee’s employment (which, if
applicable, shall be the last day of any notice period set forth in sections 7(a) or 7(b) above),
notwithstanding the cause or reason for termination, Employee shall not compete, directly or
indirectly, with SteelCloud. Employee understands that the term “not compete” as used in this
paragraph shall mean that he shall not (i) own, manage, operate, consult with, or be employed by, a
competing business; (ii) solicit or assist in the solicitation of any of SteelCloud’s accounts or
customer(s); or (iii) encourage any of SteelCloud’s other employees to cease their employment with
SteelCloud. Employee understands that the term “competing business” as used in this paragraph
means a business engaged in the design, development, distribution, or sale of hardware or software
that competes with SteelCloud branded appliances (including antivirus, intrusion protection, and
security appliances).

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          b. Employee agrees that SteelCloud may notify any future or prospective employer or third
party business with which Employee may contract of the existence of this agreement.

          c. As an additional and cumulative remedy to any other remedy available to SteelCloud, the
covenants contained in this Agreement shall be enforceable by specific performance and by
preliminary and permanent injunctive relief and if any court of record shall finally adjudicate
that the constraints provided for herein are too broad as to the area, activity, time covered, or
any other matter, then said area, activity, time covered, or any other matter may be reduced to
whatever extent the court deems reasonable and the covenants may be enforced as to such reduced
area, activity, time, or other matter.

     9. ASSISTANCE IN LITIGATION. Employee shall, upon reasonable notice, furnish such information
and proper assistance to SteelCloud as it may reasonably require in connection with any litigation
in which it is, or may become, a party either during or after his employment. In the event that
Employee fails to assist SteelCloud, it shall reimburse SteelCloud all legal fees, court costs and
damages resulting in whole or in part from this failure to assist.

     10. ENFORCEMENT PROVISIONS.

          a. Each party agrees that, if it breaches any of the terms of this agreement, it shall pay the
other party the costs that party may incur in enforcing this agreement or seeking damages for his
breach, including reasonable attorney’s fees. In the event that either party is required to seek
legal assistance to obtain compliance with this Agreement or to enforce the provisions of this
Agreement, the second party shall pay to the first party in addition to all the sums that it may be
called on to pay, all the first party’s costs and expenses, including, but not limited to,
attorneys’ fees actually incurred by that party regardless of whether court action is initiated.

          b. Any legal action brought to enforce any claim or right arising from the provisions of this
agreement shall be brought in the court of appropriate jurisdiction in the County of Fairfax in the
Commonwealth of Virginia and the law of the Commonwealth of Virginia shall govern. If any of the
provisions of this Agreement shall contravene, or be invalid under, the laws of the Commonwealth of
Virginia, such contravention or invalidity shall not invalidate the entire Agreement, but it shall
be construed as if not containing the particular provision or provisions held to be invalid, and
the rights and obligations of the parties shall be construed and enforced accordingly.

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     11. NOTICES. Any notice or communication required or permitted by the terms of this Agreement
shall be deemed received when hand delivered to the person to whom the notice is directed, or when
otherwise received by that person as demonstrated by any mail, facsimile, or commercial courier
receipt:

If to the Company, notice shall be directed to:

Mr. Cliff Sink

Chief Executive Officer

SteelCloud

14040 Park Center Road, Suite 210

Herndon, VA 20171

If to Employee, notice shall be directed to

Bob Richmond

 

 

          or to such other address as either party may designate from time to time by written notice to
the other party.

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     12. MISCELLANEOUS PROVISIONS.

          a. This Agreement sets forth all of the parties’ promises, agreements, conditions, warranties
and representations, oral or written, express or implied, among them with respect to the terms of
employment, and there are no promises, agreements, conditions, warranties or representations, oral
or written, express or implied, among them with respect to the terms of employment other than as
set forth herein.

          b. This Agreement supercedes any prior agreements between Employee and SteelCloud.

          c. Any modification of this Agreement or additional obligation assumed by either party in
connection with this Agreement shall be binding only if placed in writing and signed by each party
or an authorized representative of each party.

          d. This Agreement shall inure to the benefit of, and shall be binding upon, the parties and
their respective successors, heirs, and personal representatives.

          e. This Agreement shall not be assignable by Employee.

          f. The failure of either party to this Agreement to insist upon the performance of any of the
terms and conditions of this Agreement, or the waiver of any breach of any of the terms and
conditions of his Agreement, shall not be construed as thereafter waiving any such terms and
conditions, but the same shall continue and remain in full force and effect as if no such
forbearance or waiver had occurred.

          g. The parties hereto stipulate and agree that the rule of construction to the effect that any
ambiguities are to be or may be resolved against the drafting party shall not be employed in the
interpretation of this Agreement to favor.

     IN WITNESS WHEREOF, each party to this Agreement has caused it to be executed on the date
indicated above.

	 	 	 	 	 	 
	 	 	 	/s/ Clifton W. Sink	 	/s/ Robert Richmond
	 	 	 
	SteelCloud, Inc. by:	 	Clifton W. Sink 	 	Robert Richmond
	its Chief Executive
Officer 	 	 

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Exhibit 4.3

IMPOUNDMENT AGREEMENT

THIS IMPOUNDMENT AGREEMENT, made and entered into this                     day of September, 2006, by and between
Agassiz Energy, LLC, a Minnesota limited liability company (hereinafter called the “Issuer”) and
Bremer Bank, N.A. (a national banking association) with principal offices in Crookston, Minnesota
(hereinafter called the “Impoundment Agent”);

WITNESSETH:

WHEREAS, Issuer has applied to the Commissioner of Commerce for the State of Minnesota (hereinafter
called the “Commissioner”), as well as with the U.S. Securities and Exchange Commission and other
states, for registration of 58,500,000 membership units for sale to the residents of the State of
Minnesota; and

WHEREAS, as a condition of registration of such offering under the Securities Laws of the State of
Minnesota, the Commissioner requires that the Issuer provide for the impoundment of the proceeds to
be received from such offering of securities; and

WHEREAS, the Issuer and the Impoundment Agent desire to enter into an agreement with respect to the
same impoundment of proceeds.

NOW, THEREFORE, in consideration of the premises and agreements set forth herein, the parties
hereto agree as follows:

	1.	 	PROCEEDS TO BE PLACED IN ESCROW: All proceeds received from the sale of the securities
subject to this Impoundment Agreement on or after the date hereof shall be paid to the
Impoundment Agent within two (2) business days from the date of sale, and deposited by
Impoundment Agent in an escrow account. During the term of this Impoundment Agreement, the
Issuer shall cause all checks received by it in payment for such securities to be either
payable to the Impoundment Agent or endorsed forthwith to the Impoundment Agent.

	2.	 	IDENTITY OF SUBSCRIBERS: The Issuer shall cause to be delivered to the Impoundment Agent two
(2) signed counterparts of each Subscription Agreement which shall contain, among other
things, the name and address of each subscriber thereto, the date and amount subscribed, and
the amount paid, or, in the alternative, shall furnish to the Impoundment Agent with each
deposit of funds in the impoundment a list of the persons who have subscribed the money,
showing the name, address, date and amount of subscription, and amount of money paid. All
proceeds so deposited shall remain the property of the subscriber and shall not be subject to
any liens or charges by the Impoundment Agent, or judgments or creditors’ claims against the
Issuer until released to the Issuer as hereinafter provided.

 

 

	3.	 	DISBURSEMENT OF FUNDS: The disbursements of funds is conditioned upon the receipt by the
Impoundment Agent of:

	 	(a)	 	cash proceeds from unit sales deposited in the escrow account from received and accepted subscriptions for a minimum of $42,500,000 in equity capital in the offering or any subsequent offering;

	 	(b)	 	a signed commitment letter for the debt financing from a reputable lender with demonstrated ability to fulfill its obligations under the commitment letter in an amount which, when added to the amount of equity proceeds and commitments having been received and all grant proceeds having been received or awarded will yield at least $108,500,000;

	 	(c)	 	an executed definitive design-build agreement with a
reputable design builder with demonstrated ability to fulfill its
obligations under the design-build agreement to construct the proposed ethanol plant; and

	 	(d)	 	written verification that the Company has received all permits necessary to begin construction of its proposed ethanol plant.

The disbursement of
funds is further conditioned that, upon the receipt by the Impoundment Agent of a through d,
above, the Impoundment Agent notifying the Commissioner in writing of a) the impoundment
of such cash proceeds, b) the receipt of the signed commitment letter for the debt
financing and c) written verification that the Company has received all permits necessary
to begin construction.  The Company must also not be subject to any legal orders prohibiting
the offering or the construction or operation of the proposed ethanol plan or orders from the
Minnesota Department of Commerce, Securities Division, revoking the effectiveness of the
registration of the units being offered in the offering.  The Commissioner must also be
provided either by the Company or the Impoundment Agent with a copy of the executed
construction agreement and the written debt financing commitment agreement.

Upon receipt of these items, the Commissioner will determine whether the minimum
requirements of impoundment have been met subject to the escrow assets verification of cash
proceeds in escrow. The Commissioner will direct the release of fund or return of the
proceeds according.

Upon receipt by the Impoundment Agent of written authorization from the Commissioner, then
the Impoundment Agent, on demand of the Issuer, shall pay over to the Issuer all impounded
funds.

If the specified minimum amount of proceeds have not been impounded during the term of
impoundment or any of the other conditions have not been satisfied, then, within three (3)
business days after the last day of the term of impoundment, the Impoundment Agent shall
notify the Commissioner in writing that the conditions of impoundment have not been
satisfied. The Impoundment Agent shall, within a reasonable time, but in no event not more
than thirty (30) days after the last day of the term of impoundment, refund to each
subscriber at the address appearing on the Subscription Agreement or list of subscribers,
or at such other address as shall be furnished to the Impoundment Agent by the subscriber
in writing, all sums paid pursuant to the subscription, and shall then notify the
Commissioner in writing of such refund.

	4.	 	TERM OF IMPOUNDMENT: This impoundment shall terminate on the three hundred sixty-fifth
(365th) day following the effective date of the registration of the Issuer’s
securities in the State of Minnesota, unless extended by the consent in

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	 	 	writing of the parties hereto and all subscribers to the securities subscribed to date and
the Commissioner. Upon termination hereof, whether after extension or otherwise, the
Impoundment Agent shall disburse the funds in the impoundment account in the manner and
upon the terms directed in paragraph 3 hereof. The Issuer may abandon the sale of
securities any time prior to the date above. Upon the receipt of a copy of the Resolution
authorizing said abandonment, duly attested to by the Secretary of the Issuer, accompanied
by the written consent of the Commissioner, Impoundment Agent shall be authorized to refund
the moneys received from the subscribers.

	5.	 	TERMINATION BY REVOCATION OR SUSPENSION: If at any time prior to the termination under
paragraph 4 of this Impoundment Agreement, said Impoundment Agent is advised by the
Commissioner that the registration to sell securities has been revoked or suspended, said
Impoundment Agent shall thereupon return all funds to the respective subscribers.

	6.	 	CONSENT OF COMMISSIONER TO RELEASE FUNDS: No funds shall be released to the Issuer hereunder
except upon the express written authorization of the Commissioner. If the Commissioner finds
that any conditions of this Impoundment Agreement have not been satisfied, or that any
provisions of the Minnesota Securities Laws or regulations have not been complied with, then
the Commissioner may withhold such authorization for release of funds by the Impoundment Agent
to the Issuer and may direct the Impoundment Agent to return the funds to the subscribers. In
making a determination hereunder, the Commissioner may require from the Issuer a statement of
all expenses and/or all amounts paid into the escrow, certified by an independent certified
public accountant or an officer of the Issuer and any further financial or other information
as the Commissioner may deem appropriate or helpful in making such determination.

	7.	 	INSPECTION OF RECORDS: The Commissioner may, at any time, inspect the records of the
Impoundment Agent, insofar as they relate to this Impoundment Agreement, for the purpose of
determining compliance with and conformance to the provisions of this Impoundment Agreement.

	8.	 	DUTY AND LIABILITY OF THE IMPOUNDMENT AGENT: The sole duty of the Impoundment Agent, other
than as herein specified, shall be to receive said funds and hold them subject to release, in
accordance with the written instructions of the Commissioner, and the Impoundment Agent shall
be under no duty to determine whether the Issuer is complying with requirements of the
Commissioner in tendering to the Impoundment Agent said proceeds of the sale of said
securities.

The Impoundment Agent may conclusively rely upon and shall be protected in acting upon any
statement, certificate, notice, request, consent, order or other document believed by it to
be genuine and to have been signed or presented by the proper party or parties. The
Impoundment Agent shall have no duty or

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liability to verify any such statement, certificate, notice, request, consent, order or
other document and its sole responsibility shall be to act only as expressly set forth in
this Impoundment Agreement. The Impoundment Agent shall be under no obligation to
institute or defend any action, suit or proceeding in connection with this Impoundment
Agreement unless first indemnified to its satisfaction. The Impoundment Agent may consult
counsel in respect of any question arising under this Impoundment Agreement and the
Impoundment Agent shall not be liable for any action taken or omitted in good faith upon
advice of such counsel. All funds held by Impoundment Agent pursuant to this Impoundment
Agreement shall constitute trust property for the purposes for which they are held and the
Impoundment Agent shall not be liable for any interest thereon.

	9.	 	IMPOUNDMENT AGENT’S FEE: The Impoundment Agent shall be entitled to reasonable compensation
for its services. The fee agreed upon for services rendered hereunder is intended as full
compensation for the Impoundment Agent’s services as contemplated by this Impoundment
Agreement; provided, however, in the event that the conditions of this Impoundment Agreement
are not fulfilled, or the Impoundment Agent renders any material service not contemplated in
this Impoundment Agreement, or there is any assignment of interest in the subject matter of
this Impoundment Agreement, or any material modification hereof, or if any material
controversy arises hereunder, or the Impoundment Agent is made a party to or justifiably
intervenes in any litigation pertaining to this Impoundment Agreement, or the subject matter
hereof, the Impoundment Agent shall be reasonably compensated for such extraordinary services
and reimbursed for all costs and expenses, including reasonable attorneys’ fees, occasioned by
any delay, controversy, litigation, or event, and the same may be recoverable from the Issuer
only.

	10.	 	BINDING AGREEMENT AND SUBSTITUTION OF IMPOUNDMENT AGENT: The terms and conditions of this
Impoundment Agreement shall be binding on the heirs, executors and assigns, creditors or
transferees, or successors in interest, whether by operation of law or otherwise, of the
parties hereto. If, for any reason, the Impoundment Agent named herein should be unable or
unwilling to continue as such Impoundment Agent, then the other parties to this Impoundment
Agreement may substitute, with the consent of the Commissioner, another Impoundment Agent.
Any apportionment of the fees provided for in paragraph 9 will be subject to agreement of the
parties.

	11.	 	ISSUANCE OF CERTIFICATES: Until the terms of this Impoundment Agreement have been met and
the funds hereunder released to the Issuer, the Issuer may not issue any certificates or other
evidences of securities, except subscription agreements.

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IN WITNESS WHEREOF, the parties hereto have executed this Impoundment Agreement on the date first
above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	ISSUER:	 	 	 	IMPOUNDMENT AGENT:
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	AGASSIZ ENERGY, LLC	 	 	 	BREMER BANK, N.A.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Its:
	 	 	 	 	 	 	 	Its:	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 

Accepted for filing:

	 	 	 
	 
	 	 
	Commissioner of Commerce

	 	 

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