Document:

Exhibit
10.5

 

LLC UNIT PLEDGE
AGREEMENT

 

This LLC Unit Pledge Agreement (the “Agreement”) is made effective as of
May 31, 2005, between and among B-New, LLC, an Ohio limited liability company (“BNEW”),
TechCom Group, LLC, a Florida limited liability company (“TechCom”), Buhler,
Inc., a Minnesota corporation (“Buhler”), (individually a “Pledgor” and
collectively the “Pledgors”), and Dakota Growers Pasta Company, Inc., a North Dakota corporation (hereinafter
the “Lender”).

 

W I T N E S S E T H

 

WHEREAS,
the Lender and DNA Dreamfields Company, LLC (the “Borrower”) have entered into
a 2005 Line of Credit Loan Agreement dated as of this date (as the same may be
amended, restated, renewed or supplemented, from time to time, the “Loan
Agreement”), pursuant to which the Lender will extend a line of credit to the
Borrower;

 

WHEREAS,
the Lender requires, as a condition to the extension of credit to the Borrower
that the Pledgors each pledge all of their right, title and interest in and to
all LLC units they own that represent ownership in the Borrower to secure the
obligations of the Pledgor;

 

WHEREAS, the Pledgors by this Agreement each agree that all limited liability
company units issued by the Borrower to each Pledgor shall be pledged and
provided as collateral security for the payment and performance of the
obligations of the Borrower to the Lender, with such limited liability company
units being referred to hereinafter as the “Pledged Units”; and

 

WHEREAS,
the Lender would not be willing to extend credit unless the Pledgor shall have
pledged the Pledged Units to the Lender pursuant to this Agreement.

 

NOW, THEREFORE,
in consideration of the premises and mutual covenants herein contained, and in
further consideration of the Lender’s extension of credit to the Borrower, the
parties hereby agree as follows:

 

Section 1 - Pledge.  The Pledgor hereby pledges and assigns to the
Lender, and grants to the Lender a continuing security interest in, the
following (the “Pledged Collateral”):

 

(i)                                     The Pledged Units
and the certificates, if any, representing the Pledged Units, and all dividends
or distributions and cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in exchange for
any or all of the Pledged Units;

 

(ii)                                  All additional
limited liability company units of the Borrower from time to time acquired by
the Pledgor by stock split or by the exercise of any conversion or option
rights, and the certificates representing such additional shares, and all
dividends, cash, instruments and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of such shares; and

 

 

(iii)                               Any and all proceeds of
any of the foregoing upon the sale or other disposal of the foregoing for any
reason.

 

The certificates for the Pledged Units
accompanied by instruments of assignment duly executed in blank by the Pledgor
have been delivered to the Pledgee.

 

Section 2 - Security for Obligations.  This Agreement secures the payment of all
obligations or liabilities of the Borrower now or hereafter existing under the
Loan Agreement (all such obligations being referred to as the “Obligations”).

 

Section 3 - Further Assurances.  The Pledgor agrees that at any time and from
time to time, at the expense of the Pledgor, the Pledgor will promptly execute
and deliver all further instruments and documents, and take all further action,
that may be reasonably necessary or desirable, or that the Lender may
reasonably request, in order to perfect and protect any security interest
granted or purported to be granted hereby or to enable the Lender to exercise
and enforce its rights and remedies hereunder with respect to any Pledged
Collateral.

 

Section 4 - Voting Rights; Dividends;
Etc.  So long as no Event of Default
(as defined in the Loan Documents) exists and is continuing:

 

(i)                                     The Pledgor shall
be entitled to exercise any and all voting and other consequential rights
pertaining to the Pledged Collateral or any part thereof for any purpose not inconsistent
with the terms of this Agreement or the Loan Documents; provided, however,
that, prior to exercising any material right as a unitholder, the Pledgor shall
first give the Lender at least five days’ written notice of the manner in which
the Pledgor intends to exercise, or the reasons for refraining from exercising,
any right as a shareholder and shall not exercise any such right if the
exercise of such right could constitute an Event of Default.

 

(ii)                                  The Pledgor shall be
entitled to receive and retain any and all cash distributions or dividends paid
in respect of the Pledged Collateral that may be permitted under and in
accordance with the Loan Documents.

 

Section 5 - Transfers and Other
Liens; Additional Shares.  The
Pledgor agrees that, subject to the terms and conditions of the Amended and
Restated Operating Agreement of the Borrower, it may sell, transfer or
otherwise dispose of, or grant any option to buy or sell with respect to, any
of the Pledged Collateral, subject to this Agreement.  However the Pledgor shall not create or
permit to exist any lien, security interest, or other charge or encumbrance
upon or with respect to any of the Pledged Collateral, except for the security
interest under this Agreement.

 

Section 6 - Lender Appointed Attorney-in-Fact.  The Pledgor hereby appoints the Lender
attorney-in-fact, with full authority in the place and stead of the Pledgor and
in the name of the Pledgor or otherwise, to take any action and to execute any
instrument which the Lender may deem necessary or advisable to accomplish the
purposes of this Agreement, including, without limitation, upon and during the
continuation of any Event of Default (as defined in the Loan Documents), to
receive, endorse and collect all instruments made payable to the Pledgor
representing any dividend, interest payment or other distribution in respect of
the Pledged Collateral or any part thereof and to

 

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give full discharge for the same. 
The Pledgor covenants and agrees to execute any further
power-of-attorney that may, as determined in the Lender’s reasonable
discretion, be necessary or advisable to appoint the Lender as the Pledgor’s
attorney-in-fact as set forth in this Section 6.

 

Section 7 - Remedies upon Default.  If any Event of Default, as defined in the
Loan Documents, shall have occurred and be continuing:

 

(a)                                  Upon written notice
from the Lender, the right of Pledgor to receive dividends and to vote the
Pledged Units shall cease, and all such rights shall become vested in the
Lender.  In addition to other rights and
remedies provided for herein or otherwise available to it, the Lender may
exercise all the rights and remedies of a secured party on default under the
Uniform Commercial Code in effect in the State of North Dakota at that time,
and the Lender may also, without notice except as specified below, sell the
Pledged Collateral or any part thereof, in accordance with and subject to
applicable law, for cash, on credit or for future delivery, and upon such other
terms as are commercially reasonable. 
The Lender shall not be obligated to make any sale of Pledged Collateral
regardless of notice of sale having been given.

 

(b)                                 Any cash held by the
Lender as Pledged Collateral and all cash proceeds received by the Lender from
any sale of or collection from all or any part of the Pledged Collateral, may
be held by the Lender as collateral for, and/or be applied in whole or in part
by the Lender against, all or any part of the Obligations or the obligations of
the Borrower under the Loan Documents (in the manner as provided in the Loan
Documents).  Any surplus of such cash or
cash proceeds held by the Lender and remaining after payment in full of all the
Obligations shall be paid to the Pledgor.

 

Section 8 - Enforcement Rights.  If the Lender shall determine to exercise its
right hereunder to sell all or any of the Pledged Collateral, the Pledgor
agrees that, upon request of the Lender, the Pledgor will do or cause to be
done all such other acts and things as may be reasonably necessary to make such
sale of the Pledged Collateral or any part thereof valid and binding and in
compliance with applicable law.

 

Section 9 - Security Interest
Absolute.  All rights of the Lender
and security interest hereunder, and all obligations of each Pledgor hereunder,
shall be absolute and unconditional irrespective of:

 

(i)                                     any lack of
validity or enforceability of the Note(s) or any other Loan Document (as
defined in the Loan Documents) or agreement or instrument relating thereto;

 

(ii)                                  any change in the time, manner or place of payment
of, or in any other term of, all or any of the Obligations, or any amendment or
waiver or any consent to any departure from the Notes or any other Loan
Document;

 

(iii)                               any exchange, release or
non-perfection of any other collateral, or any release or amendment or waiver
of, or consent to departure from all or any of the obligations under the Loan
Documents; or

 

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(iv)                              any other circumstance
which might otherwise constitute a defense available to, or a discharge of the
Pledgor, any other party to any Loan Document, or a third party obligor except
for such waivers as are required by applicable law and cannot be waived under
applicable law.

 

Section 10 - Amendment.  No amendment or waiver of any provisions of
this Agreement shall be effective unless the same shall be in writing and
signed by the Lender and the Pledgor, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given.

 

Section 11 - Continuing Security
Interest; Transfer of Note(s).  This
Agreement shall create a continuing security interest in the Pledged Collateral
and shall (i) remain in full force and effect until payment in full of the
Obligations (other than contingent indemnity obligations), (ii) be binding upon
the Pledgor, its successors, legal representatives, estate, heirs, devisees,
legatees and assigns, and (iii) inure to the benefit of the Lender and its
successors, permitted transferees and permitted assigns.  Upon the payment in full of the obligations
of the Borrower under the Loan Documents and the termination of any obligation
of the Lender to extend any credit thereunder, the Lender shall deliver such of
the Pledged Collateral as shall not have been sold or otherwise applied
pursuant to the terms hereof to the Pledgor.

 

Section 12 - Governing Law; Terms.  This Agreement shall be governed by the laws
of the State of North Dakota, without regard to the choice of law provisions
thereof.  Unless otherwise defined
herein, capitalized terms used herein shall have the respective meanings given
in the Loan Documents.

 

Section 13 - Expenses.  Each Pledgor will upon demand pay to the
Lender the amount of any and all reasonable costs and expenses, including the
reasonable fees and expenses of its counsel and of any experts and agents,
which the Lender may incur in connection with (i) the custody or preservation
of, or the sale, collection from, or other realization upon, any of the Pledged
Collateral, (ii) the exercise or enforcement of any of the rights of the Lender
hereunder or (iii) the failure by the Pledgor to perform or observe any of the
provisions hereof; provided, however, that the aggregate of all payments to the
Lender by the Pledgors pursuant to this Section 13 shall not exceed
$100,000.00.

 

Section 14 – Representations and
Warranties.  The Pledgor represents
and warrants, which representations and warranties shall survive the execution
and delivery of this Agreement, that:

 

(a)                                  The Pledgor is the
direct and beneficial owner of the Pledged Units, and the Pledged Collateral,
upon consummation of the transactions contemplated by the Loan Agreement will
be owned by the Pledgor free and clear of any lien, security interest, charge
or encumbrance.

 

(b)                                 The execution,
delivery and performance by Pledgor of this Agreement has been duly authorized,
does not require the consent of any governmental body or other regulatory
authority, and will not violate, conflict with or result in a breach of any
provision of any agreement, indenture or other instrument to which the Pledgor
is a party or is bound by.

 

(c)                                  None of the Pledged
Units has been issued or transferred in violation of any applicable federal and
state securities laws.

 

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(d)                                 There are no options,
warrants, calls, conversion rights or other similar commitments relating to the
Pledged Units.

 

Section 15 – Notices.  All notices and other communications under
this Agreement shall be in writing and deemed to have been given: (a) on the
date of delivery if hand delivered; (b) on the day after mailing if sent via
overnight courier; (c) three days after the postmarked date if mailed postage
prepaid, certified or registered; or (d) on the date of transmission if sent
via facsimile (provided the sender receives a machine-generated confirmation of
successful transmission) addressed to the address of such party as follows:

 

	
  If to the Pledgor:

  	
   

  	
  B-New, LLC

  
	
   

  	
   

  	
  11321
  Terwilligers Creek Drive

  
	
   

  	
   

  	
  Cincinnati, OH
  45249

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TechCom Group,
  LLC

  
	
   

  	
   

  	
  10,000 SW 52nd
  Avenue, Unit 177

  
	
   

  	
   

  	
  Gainesville, FL
  32608

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Buhler, Inc.

  
	
   

  	
   

  	
  P.O. Box 9497

  
	
   

  	
   

  	
  13105 12th
  Avenue North

  
	
   

  	
   

  	
  Plymouth, MN
  55440-9497

  
	
   

  	
   

  	
   

  
	
  If to the Secured Party:

  	
   

  	
  Dakota Growers
  Pasta Company, Inc.

  
	
   

  	
   

  	
  One Pasta Avenue

  
	
   

  	
   

  	
  Carrington, ND
  58421-2500

  
	
   

  	
   

  	
  Attention: Chief
  Executive Officer

  
	
   

  	
   

  	
  Fax: 701 652-3552

  

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF,
the Pledgor and the Lender have executed and delivered this LLC Unit Pledge
Agreement as of the date first above written.

 

	
   

  	
  PLEDGOR:

  
	
   

  	
   

  
	
   

  	
  B-New, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jonathan Hall

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Principal

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TechCom Group, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jonathan Scot Anfinsen

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Buhler, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Beat Haeni

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Head Corporate Development-Buhler Group

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Heinz Hoessli

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Chief Financial Officer – Buhler, Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE LENDER:

  
	
   

  	
   

  
	
   

  	
  Dakota Growers Pasta Company, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Timothy J. Dodd

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  President, Chief Executive Officer

  	
   

  

 

6EXHIBIT 10.1

 

June 17, 2005

 

Jeannine P. Sargent

 

 

Dear Jeannine:

 

I am pleased to confirm our offer to promote you to the position of
Executive Vice President, Marketing and Business Development and General
Manager, Nano-Bio Instruments Group, reporting to me.  The effective date of the promotion will be June 6,
2005.  The terms applicable to
your promotion are as follows:

 

•                                          Your
revised bi-weekly salary will be $11,153.85. 
This equates to an annual salary rate of $290,000.00.

 

•                                          You will remain on the annual Management Bonus Plan.  The plan is based on company performance,
which at target can be up to 60%
percent of your annual base salary in accordance with a Board approved
Management Bonus Plan.  (Your 2005 Bonus calculation will be based on
EBITA results vs. plan, allocated at 75% Metrology and 25% Corporate).

 

•                                          Veeco
will provide a three-year cash incentive bonus based on achieving revenue and
EBITA goals over a three-year period for Nano-Bio Instruments, to be completed
within 60 days.

 

•                                          In
the event you are terminated
without “Cause” or you resign for “Good Reason” (each as defined below), the
following would apply:

 

Severance.  Veeco will pay you a salary continuation
benefit equal to your base salary payable over 18 months, less applicable
deductions.  You will also receive a pro
rata portion of the bonus you would have received for the year in which
termination occurs under annual cash incentive plans in effect at the time of
termination based on your and the Company’s performance relative to the goals
under such plans (less amounts previously paid).  Such amount shall be payable on the same
date(s) that the Company makes it bonus payments to employees generally with
regard to such year.  In addition, if you
are enrolled in Veeco’s medical and dental plans at the time of separation and
elect to continue coverage under COBRA, then your contribution amount during
the period in which salary continuation benefits are payable will be the normal
employee (Veeco-subsidized) contribution rate.

 

Extended Exercise Period.  The exercise period for any Veeco stock
options granted to you on or after the date hereof and held by you at the

 

1

 

time of such termination or resignation (“Options”) would continue
until the earlier of (x) 12 months following the date of such termination or
resignation and (y) the expiration of the original term of such Options.

 

Option Acceleration.  In addition, if such termination or
resignation occurs within 12 months following a “Change of Control” (as defined
below), any unvested Options shall become immediately and fully vested and
exercisable as of such date.

 

Receipt of the separation benefits described above is conditioned upon
your execution (without revocation) of a general release of claims, including
non-competition and non-solicitation provisions for the duration of the salary
continuation period described above, substantially in the form attached as Annex
A hereto.  If termination occurs as a
result of a change of control, the non-competition provisions shall apply to
the Company as it existed pre-acquisition.

 

I believe our relationship will continue to be mutually beneficial and
feel this position offers you the challenge and responsibility you desire.

 

If you agree with the foregoing, please sign and return a copy of this
letter.

 

	
  Sincerely,

  	
  ACCEPTED AND AGREED:

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Edward H. Braun

  	
   

  	
  /s/ Jeannine P. Sargent

  	
   

  
	
  Edward H. Braun

  	
  Jeannine P. Sargent

  
	
  Chairman and Chief Executive Officer

  	
   

  
				

 

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Additional Provisions

 

As used above, the following definitions shall apply:

 

“Cause” shall mean (i) your willful and substantial
misconduct, (ii) your repeated, after written notice, neglect of duties or
failure to perform your assigned duties, (iii) your commission of any
material fraudulent act with respect to Veeco or its business, or (iv) your
conviction of (or plea of no contest to) a crime constituting a felony.

 

“Change of Control” shall mean: 
(a) any person or group of persons becomes the beneficial owner of
securities representing 50 percent or more of Veeco’s outstanding voting
securities, or (b) the approval by Veeco’s stockholders of one of the
following:

 

(i)  Any merger or statutory plan of exchange (“Merger”) in which
Veeco would not be the surviving corporation or pursuant to which Veeco’s
voting securities would be converted into cash, securities or other property,
other than a Merger in which the holders of Veeco’s voting securities
immediately prior to the Merger have the same proportionate ownership of voting
securities of the surviving corporation after the Merger;

 

(ii)  Any Merger in which the holders of outstanding voting
securities of Veeco prior to such Merger will not, in the aggregate, own a
majority of the outstanding voting securities of the combined entity after such
Merger; or

 

(iii)  Any sale or other transfer (in one transaction or a series
of related transactions) of all or substantially all of the Veeco’s assets or
the adoption of any plan or proposal for Veeco’s liquidation or dissolution.

 

“Good Reason” shall mean (a) a reduction of your base
salary, other than as part of a salary reduction program affecting management
employees generally, (b) a reduction in your target bonus potential below
60% of base salary, or (c) an involuntary diminution in your title,
authority or responsibilities.

 

Please note that this letter does not alter the “at-will” nature of
your employment with Veeco.  This means
that your employment may be terminated by you or by Veeco at any time, with or
without cause.  As described above,
however, you may be entitled to severance benefits depending upon the
circumstances of the termination of employment.

 

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