Document:

exv10w1

 

Exhibit 10.1

CONSULTING AGREEMENT

     THIS CONSULTING AGREEMENT (the “agreement”) is made effective as of the 29th day of
November, 2005, (the “Effective Date”) by and between The Biodiesel Group, LLC, an Iowa limited
liability company (“consultant”)and Western Dubuque Biodiesel, LLC, an Iowa limited liability
company (“client”).

     WHEREAS, client intends to develop, finance and construct a biodiesel plant in or near Farley,
Iowa (“the project”); and

     WHEREAS, consultant has a background in project planning, planning and assisting seed money
and equity funding drives and contracting for the construction, management and operation of
biodiesel plants and is willing to provide those services to client based on its background and
experience; and

     WHEREAS, client desires to contract for those services.

     NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein client
hereby engages consultant and consultant hereby accepts such engagement upon the terms and
conditions hereinafter set forth.

     1. Term. Consultant’s engagement with client shall commence as of the effective date and
continue until 30 days after the plant is in operation. However, this agreement may be terminated
at any time by either party upon thirty (30) days prior written notice of the party’s intent to
terminate this agreement. Upon termination, neither client nor consultant shall have any further
rights or obligations under the terms of this agreement other than delivery of payments for
services to which consultant may be entitled at the date of termination. Should consultant fail to
perform its duties as required herein, fail to devote adequate time to its duties with client or
exceed its authority as a representative of client, in client’s sole discretion, client may
immediately terminate this agreement for cause by providing a written notice by certified mail or
personal service to Warren L. Bush, 306 W. 4th St., P.O. Box 159, Wall Lake, IA
51466-0159. Such termination for cause shall take effect immediately upon receipt of such notice.
In the event this contract is terminated by client, whether with or without cause, consultant will
receive the 500 membership units in client previously issued to its members.

     2. Services. Consultant shall serve as the client’s project consultant and will perform
the following duties incident to the project, subject to client’s approval:

	 	a.	 	Arrange for the completion of a feasibility study by a qualified service
provider.
	 
	 	b.	 	Assist in the formation of a limited liability company and
drafting an appropriate operating agreement.

 

 

	 	c.	 	Assist in the completion of a business plan.
	 
	 	d.	 	Provide five members to serve on the board of directors until the first annual
meeting of members in association with those directors appointed by client. (With the
opportunity to make an additional equity investment at whatever opportunity is granted
to active board members).
	 
	 	e.	 	Arrange for necessary legal, accounting and advertising services and monitor
the quality of and charges for those services until financial close.
	 
	 	f.	 	Assist in the preparation of a confidential private placement memorandum for
seed capital investors.
	 
	 	g.	 	Invest $100,000 of seed capital into the project on a 2 units for 1 basis.
Consultant will also
secure a minimum of $500,000 of additional seed money on a 2 units for 1 basis, and
assist in the client’s own seed capital drive, which shall also be offered on a 2
units for 1 basis.
	 
	 	h.	 	Assist in choice of and negotiation for securing plant site.
	 
	 	i.	 	Assist legal counsel in completing and securing approval of the client’s
prospectus for its equity drive.
	 
	 	j.	 	Assist in preparation of the power point presentation for use in the client’s
equity drive.
	 
	 	k.	 	Assist in the equity drive in conjunction with the board of directors to raise
such additional equity capital as is required by the lender. Consultant shall assist
in presenting the power point presentation and in answering questions from prospective
investors.
	 
	 	l.	 	Assist in the education of area lenders including, without limitation, the
preparation of a “banker’s book” tailored to the project.
	 
	 	m.	 	Assist legal counsel and the board of directors in negotiating the service and
construction contracts with Renewable Energy Group, LLC or other engineering or
construction companies and the management, operation and seed stock procurement
contracts with West Central Cooperative or other suitable management company.
	 
	 	n.	 	Contact and negotiate with prospective lead lenders to secure the necessary
borrowed funds to complete the project.
	 
	 	o	 	Assist client in hiring a qualified project manager.
	 
	 	p.	 	Perform such other reasonably necessary duties as client may require for the
timely and successful securing of debt financing and commencement of construction of
the project, including without limitation, cooperating with the client’s personnel
similarly engaged.

     Subject to client’s approval, consultant shall determine the manner in which the services are
to be performed and the specific hours to be worked by consultant’s members or employees. Client
will rely on consultant’s members to commit as many hours as may be reasonably necessary to fulfill
consultant’s commitments under this agreement.

 

 

     3. Employees, Members, Agents. Consultant’s employees, members or agents, if any, who
perform services for client under this agreement shall also be bound by the terms of this
agreement.

     4. Compensation for Services. Consultant shall receive payment for services in the
amount of $120,000 payable at the rate of $ 20,000 per month for a period of six (6) months,
payable monthly, with an automatic deduction to be made from client’s checking account and an
automatic deposit to be made in consultant’s checking account on the 1st day of each month
following the month in which consultant has provided services during the term of this agreement,
beginning January 1, 2006. Further, consultant will receive 500 restricted ownership units in the
company upon the adoption of client’s operating agreement, which will be issued in units of 100
shares to the individual members of consultant as directed by those individual members.

     5. Expenses. Client shall reimburse consultant’s members for all reasonable, ordinary
and necessary expenses incurred by such members in performance of their duties hereunder, including
without limitation, reimbursement for automobile mileage at the maximum deduction rate allowed by
the Internal Revenue Service for business miles or such other rate to which the parties hereto may
later agree, cost of supplies, phone expenses, postage and any other expenses incurred in the
furtherance of clients’s project.

     6. Support Services. Client will provide the following support services for the benefit
of consultant as approved by client: office space, secretarial support and office supplies.

     7. Successors and Assigns Bound. This agreement shall be binding upon the client and
consultant, their respective members, heirs, executors, administrators, successors in interest or
assigns, including without limitation, any partnership, corporation or other entity into which the
client may be
merged or by which it may be acquired (either directly, and directly or by operation of law), or to
which it may assign its rights under this agreement. Notwithstanding the foregoing, any assignment
by consultant of this agreement or of any interest herein, or of any money due to or to become due
by reason of the terms hereof without the prior written consent of the client shall be void.

     8. Relationship of the Parties. The parties understand that consultant is an independent
contractor with respect to client, and neither consultant nor its members are employees of client.
Client will not provide fringe benefits, including health insurance benefits, paid vacation or any
other employee benefits for the benefit of consultant, its members or employees.

 

 

     9. Injuries. Consultant acknowledges its obligation to obtain appropriate insurance
coverage for its own benefit and for the benefit of the its members, employees and agents.
Consultant waives any right to recover from client for any injuries that its members or employees
may sustain while performing services under this agreement.

     10. Return of Records. Upon termination of this agreement, consultant shall deliver all
records, notes, data, memoranda, models and equipment of any nature that are in consultant’s
possession or control and that are client’s property or relate to client’s business.

     11. Waiver. The waiver by client or consultant of its rights under this agreement or the
failure of the client or consultant promptly to enforce any provision hereof shall not be construed
as a waiver of any subsequent breach of the same or any other covenant, term or provision.

     12. Entire Agreement. This agreement constitutes the entire agreement between the
parties hereto with regard to the subject matter hereof, and there are no agreements,
understandings, specific restrictions, warranties or representations relating to said subject
matter between the parties other than those set forth herein or herein provided for. This agreement
terminates and replaces any prior agreement between the client and consultant. No amendment or
modification of this agreement shall be valid or binding unless in writing and signed by the party
against whom such amendment or modification is to be enforced.

     13. Notices. Any notice required to be given hereunder shall be in writing and shall be
deemed to be sufficiently served by either party on the other party if such notice is delivered
personally or is sent by certified mail, return receipt requested, addressed as follows:

	 	 	 
	To consultant:

	 	The Biodiesel Group, LLC:

c/o Warren L. Bush 

PO Box 159

Wall Lake, IA 51466-0159
	 
	To client:

	 	Western Dubuque Biodiesel, LLC 

PO Box 82

Farley, IA 52046

     14. Governing Law. This agreement is entered into pursuant to and shall be governed by
in accordance with the laws of the State of Iowa.

 

 

     IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the effective date.

	 	 	 	 	 	 	 
	THE BIODIESEL GROUP, LLC	 	WESTERN DUBUQUE BIODIESEL, LLC
	 
	 	 	 	 	 	 
	By:

	 	/s/ William J. Horan
	 	By:
	 	/s/ William G. Schueller
	 

	 	 
	 	 	 	 
	 

	 	William J. Horan, Manager
	 	 	 	William G. Schueller, Chairman
	 
	By:

	 	/s/ Warren L. Bush
	 	By:
	 	/s/ Joyce Jarding
	 

	 	 
	 	 	 	 
	 

	 	Warren L. Bush, Secretary
	 	 	 	Joyce Jarding, Secretary

STATE OF IOWA, DUBUQUE COUNTY: ss

     On this 29th day of November, 2005, before me, a Notary Public in and for the State
of Iowa personally appeared William J. Horan and Warren L. Bush, to me personally known, who being
by me duly sworn did say that those persons respectively are manager and secretary of The Biodiesel
Group, LLC, and that said instrument was signed on behalf of The Biodiesel Group, LLC by authority
of its managers and the said William J. Horan and Warren L. Bush acknowledged the execution of
said instrument to be the voluntary act and deed of The Biodiesel Group, LLC by them voluntarily
executed.

	 	 	 	 
	GEORGE A. DAVIS

	 	 
	 
	Iowa Notortial Seal

	 	/s/ George A. Davis
	 
	Commission Number: 199715

My Commission Expires: 12/17/07

	 	NOTARY PUBLIC
	 

STATE OF IOWA, DUBUQUE COUNTY: ss

     On this 29th day of November, 2005, before me, a Notary Public in and for the State of Iowa
personally appeared William G. Schueller and Joyce Jarding, to me personally known, who being by me duly sworn did say that those persons respectively are
chairman and secretary of Western Dubuque Biodiesel, LLC, and that said instrument was signed on
behalf of Western Dubuque Biodiesel, LLC by authority of its directors and the said William G.
Schueller and Joyce Jarding acknowledged the execution of said instrument to be the voluntary act
and deed of Western Dubuque Biodiesel, LLC by them voluntarily executed.

	 	 	 	 
	GEORGE A. DAVIS

	 	 
	 
	Iowa Notortial Seal

	 	/s/ George A. Davis
	 
	Commission Number: 199715

My Commission Expires: 12/17/07

	 	
NOTARY PUBLICexv10w2

 

Exhibit
10.2

MEMBERSHIP UNIT OPTION AGREEMENT

     THIS AGREEMENT made March 22, 2006, between Western Dubuque Biodiesel, LLC, an Iowa
limited liability company (hereinafter the “Company”), and the Directors of the Company
(hereinafter “the Directors”).

     WHEREAS, the company was organized for the purpose of developing, owning and operating a 30
million gallon per year biodiesel plant near Farley, Iowa (the “Project” or the “Plant”);

     WHEREAS, the Company desires to provide the directors an incentive to advance the Project and
interests of the Company and determines that such incentive should be in the form of options to
purchase membership units of the Company;

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and
for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties
hereby agree as follows:

     1. GRANT OF OPTION. The Company hereby grants each Director, serving as a member
of the Company’s Board of Directors as of the date of this Agreement, the right, privilege, and
option to purchase up to 100 units of the Company for the purchase price of $500 per unit. Such
options shall be subject to the conditions hereinafter provided. All units purchased by such
Directors pursuant to such options are subject to the terms of the Operating Agreement of the
Company (the “Operating Agreement”).

     2. EXERCISE AND TERMINATION OF OPTION. The Directors may exercise their options
granted under this Agreement upon debt closing and execution of definitive loan documents by the
Company with lenders necessary to capitalize the project as set forth in the Company’s prospectus
filed with the Iowa Securities Bureau in connection with its state registration statement. “Debit
Closing” shall mean the Company has completed everything necessary to execute, and the Company has
executed, definitive loan documents with lenders necessary to capitalize the project as set forth
in the Company’s prospectus. The Directors shall have no more than 30 days following debt closing
and execution of definitive loan documents to exercise the option provided herein, and the
Directors after such expiration shall have no further right to exercise the options or any rights
to the units that were subject to the Options and not exercised or purchase.

     3. METHOD OF PAYMENT. The payment of the exercise price is due in full upon
exercise of any or all of an option granted herein. The Directors shall pay the exercise price by
delivering cash payment (in the form of a check or wire transfer as directed by the Company) in an
amount of the total exercise price.

     4. DELIVERY OF MEMBERSHIP UNITS. Upon receipt by the Company of a signature page
of the Operating Agreement signed by the Directors and any other reasonable documentation required
by the Company to effectuate the issuance of the units, the Company shall make immediate delivery
of such membership certificates evidencing the units, provided that if any law or regulation
requires the Company to take any action with respect to the units before the issuance thereof, then
the date of delivery of such units shall be extended for the period necessary to take such action.

     5. NON-TRANSFERABILITY. Except as provided in this Section 5, the options are
nontransferable by the Directors during their lifetime and are transferable thereafter only in
accordance with the laws of descent and distribution. The Director shall have no rights to the
units which are subject to the options until payment in full of the option/exercise price and
delivery to the Directors of such units as herein provided.

     6. AUTHORITY. Each of the signatories hereto certifies that such party has all
necessary authority to execute this Agreement

     7. AMENDMENTS. This Agreement sets forth the entire understanding of the parties
and supersedes any prior agreements, oral or written, as to the subject matter hereof. This
Agreement may be amended or modified by, and only by a written instrument executed by the parties hereto.

 

 

     8. SEVERABILITY. Any term or provision of this Agreement which is invalid or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms
and provisions of this Agreement or affecting the validity or enforceability of any of the terms or
provisions of this Agreement in any other jurisdiction.

     9. WAIVER. The failure of any party hereto to insist in any one or more
instances upon performance of any term or condition of this Agreement shall not be construed as a
waiver of future performance of any such term, covenant or condition, but the obligation of such
party with respect thereto shall continue in full force and effect.

     10. GOVERNING LAW. This Agreement shall be governed and construed in accordance
with the laws of the State of Iowa without reference to its conflict of law rules. Each of the
parties hereto irrevocably submits to the jurisdiction of any state or federal court sitting in the
State of Iowa in any action or proceeding brought to enforce or otherwise arising out of or
relating to this Agreement.

     11. INTERPRETATION. The parties agree that each has had an opportunity to
negotiate fully the terms of this Agreement and that this Agreement shall not be interpreted in
favor of or against the party drafting the Agreement.

     IN WITNESS WHEREOF, the parties have caused this agreement to be executed in duplicate by
their duly authorized representatives on the date first above written.

THE COMPANY

	 	 	 	 	 
	By:

	 	/s/ William G. Schueller	 	 
	 

	 	 	 	 
	 

	 	William G. Schueller,
	 	Its: Chairman

[DIRECTOR/OPTIONEE’S SIGNATURES ON FOLLOWING PAGE]

 

 

DIRECTORS:

	 	 	 
	/s/ Craig Breitbach

	 	/s/ Warren L. Bush
	 

	 	 
	Craig Breitbach

	 	Warren L. Bush
	 
	 	 
	/s/ George Davis

	 	/s/ Jack Friedman
	 

	 	 
	George Davis

	 	Jack Friedman
	 
	 	 
	/s/ William J. Horan

	 	/s/ Joyce Jarding
	 

	 	 
	William J. Horan

	 	Joyce Jarding
	 
	 	 
	/s/ Bruce Klostermann

	 	/s/ Alan Manternach
	 

	 	 
	Bruce Klostermann

	 	Alan Manternach
	 
	 	 
	/s/ Denny Mauser

	 	/s/ Mark Muench
	 

	 	 
	Denny Mauser

	 	Mark Muench
	 
	 	 
	/s/ Dave O’Brien

	 	/s/ William Schueller
	 

	 	 
	Dave O’Brien

	 	William Schueller
	 
	 	 
	/s/ Tom Schroeder
	 	 
	 
	 	 
	Tom Schroeder

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