Document:

exv10w10

 

Exhibit 10.10

CORN PRODUCTS INTERNATIONAL, INC.

ANNUAL INCENTIVE PLAN

	1.	 	Definitions. When the following terms are used herein with initial capital letters, they
shall have the following meanings:

     Code – the Internal Revenue Code of 1986, as it may be amended from time to time, and
any proposed, temporary or final Treasury Regulations promulgated thereunder.

     Committee – the Compensation Committee of the Board of Directors of the Company.
Unless the Board of Directors determines otherwise, each member of the Committee shall be an
“outside director” within the meaning of Section 162(m) of the Code and a “Non-Employee
Director” within the meaning of Rule 16b-3 under the Exchange Act.

     Company – Corn Products International, Inc., a Delaware corporation.

     Exchange Act – shall mean the Securities Exchange Act of 1934, as amended.

     Participant - shall mean the Chairman and Chief Executive Officer and any other
executive officer or key employee of the Company who is designated by the Committee at any
time as a Participant in this Plan.

     Performance Measures – shall mean the criteria and objectives, established by the
Committee in its sole discretion, which shall be satisfied or met as a condition to a
Participant’s receipt of a bonus payment for a Performance Period. The Committee may amend
or adjust the Performance Measures for a Performance Period in recognition of unusual or
nonrecurring events affecting the Company or its financial statements or changes in law or
accounting, but only, in the case of a bonus payment that is intended to qualify as
“qualified performance-based compensation” under Section 162(m) of the Code, to the extent
such adjustment would not cause any portion of the bonus payment to be nondeductible
pursuant to Section 162(m) of the Code. In the case of a bonus that is intended to qualify
as qualified performance-based compensation under Section 162(m) of the Code, the
Performance Measures shall be based on one or more of the following business criteria,
determined with respect to the performance of Company as a whole, or, where determined to be
appropriate by the Committee, with respect to the performance of one or more divisions or
groups within the Company, or with respect to the performance of individual Participants:
net sales; pretax income before allocation of corporate overhead and bonus; budget; earnings
per share; net income; return on stockholders’ equity; return on assets; return on capital
employed; attainment of strategic and operational initiatives; appreciation in and/or
maintenance of the price of the common

 

 

stock or any other publicly traded securities of the Company; market share; gross
profits; earnings before interest and taxes; earnings before interest, taxes, depreciation
and amortization; economic value-added models; comparisons with various stock market
indices; increase in number of customers and/or reductions in costs; total stockholder
return (based on the change in the price of a share of the Company’s common stock and
dividends paid); operating income; and cash flows (including, but not limited to, operating
cash flow, free cash flow, cash flow return on equity and cash flow return on investment)
for the applicable Performance Period.

     Performance Period – shall mean the twelve consecutive month period which coincides
with the Company’s fiscal year.

     Plan – shall mean the Corn Products International, Inc. Annual Incentive Plan as set
forth herein and as from time to time amended.

	2.	 	Administration.

     2.1 Committee. The Plan shall be administered by the Committee.

     2.2 Determinations Made For Each Performance Period. With respect to each Performance Period,
the Committee shall:

     (a) Designate Participants for that Performance Period.

     (b) Determine the amount or formula for determining each Participant’s maximum bonus
payment for the Performance Period.

     (c) Establish the Performance Measures for the Performance Period, including the
identification of any events for which adjustments are to be made to the Performance
Measures.

     (d) Establish the Performance Measure targets for the Performance Period.

In the case of bonus payments that are intended to qualify as qualified performance-based
compensation under Section 162(m) of the Code, the Committee shall take the above actions on or
before the 90th day of the Performance Period, except to the extent that failure to do so would not
cause any portion of the bonus payment to be nondeductible pursuant to Section 162(m) of the Code.

     2.3 Certification. Following the close of each Performance Period and prior to payment of any
bonus under the Plan, the Committee must certify in writing that the applicable Performance Measure
targets and all other factors upon which a bonus is based have been attained.

     2.4 Stockholder Approval. The material terms of this Plan shall be disclosed to and approved
by stockholders of the Company in accordance with Section 162(m) of the Code. No bonus shall be
paid under this Plan unless such stockholder approval has been obtained.

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	3.	 	Bonus Payment.

     3.1 Formula. Each Participant who (i) is an employee of the Company on the last day of a
Performance Period, or whose employment was terminated during the Performance Period due to
retirement, disability or death, and (ii) was employed by the Company during at least six months of
the Performance Period, shall be eligible to receive a bonus payment for a Performance Period in an
amount established by, or determined under a bonus formula established by, the Committee for the
Performance Period based on the attainment of the Performance Measure targets for the Performance
Period. A Participant who is eligible to receive a bonus payment for a Performance Period, but who
was not actively employed during the entire Performance Period, shall receive a prorated bonus
payment determined in accordance with rules established by the Committee.

     3.2 Limitations. In the case of bonus payments that are intended to qualify as qualified
performance-based compensation under Section 162(m) of the Code, the following limitations shall
apply:

     (a) No payment if Performance Measure threshold not achieved. In no event shall any
Participant receive a bonus payment hereunder if the minimum threshold Performance Measure
requirement applicable to the bonus payment is not achieved during the Performance Period.

     (b) No payment in excess of preestablished amount. No Participant shall receive a
bonus payment under this Plan for any Performance Period in excess of $2.5 million.

     (c) Committee may reduce bonus payment. The Committee retains sole discretion to
reduce the amount of or eliminate any bonus otherwise payable to a Participant under this
Plan. The Committee may exercise such discretion by establishing conditions for the payment
of bonuses in addition to the Performance Measure targets, including the achievement of
financial, strategic or individual goals, which may be objective or subjective, as it deems
appropriate.

	4.	 	Bonus Payments.

     4.1 Time and Form of Payments. The bonus payment payable to a Participant under the Plan for
a Performance Period shall be paid to the Participant in cash as soon as determined by the
Committee after it has certified that the Performance Measure targets and all other factors upon
which the bonus payment for the Participant is based have been attained; provided, however, that
such payment shall not be made earlier than January 1 immediately following the calendar year in
which the Performance Period ends or later than March 15 immediately following the calendar year in
which the Performance Period ends.

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     4.2 Nontransferability. Participants shall not have the right to assign, encumber or
otherwise anticipate the payments to be made under this Plan, and the benefits provided hereunder
shall not be subject to seizure for payment of any debts or judgments against any Participant.

     4.3 Tax Withholding. In order to comply with all applicable federal or state income tax laws
or regulations, the Company may take such action as it deems appropriate to ensure that all
applicable federal or state payroll, withholding, income or other taxes, which are the sole and
absolute responsibility of a Participant, are withheld or collected from such Participant.

5.    Amendment and Termination. The Committee may amend this Plan prospectively at any time and for
any reason deemed sufficient by it without notice to any person affected by this Plan and may
likewise terminate or curtail the benefits of this Plan both with regard to persons expecting to
receive benefits hereunder in the future and persons already receiving benefits at the time of such
action, subject to any requirement of stockholder approval required by applicable law, rule or
regulation, including Section 162(m) of the Code.

6.   Miscellaneous.

     6.1 Effective Date. The effective date of the Plan shall be January 1, 2000.

     6.2 Headings. Headings are given to the Sections and subsections of the Plan solely as a
convenience to facilitate reference. Such headings shall not be deemed in any ways material or
relevant to the construction or interpretation of the Plan or any provision thereof.

     6.3 Applicability to Successors. This Plan shall be binding upon and inure to the benefit of
the Company and each Participant, the successors and assigns of the Company, and the beneficiaries,
personal representatives and heirs of each Participant. If the Company becomes a party to any
merger, consolidation or reorganization, this Plan shall remain in full force and effect as an
obligation of the Company or its successors in interest.

     6.4 Employment Rights and Other Benefits Programs. The provisions of this Plan shall not give
any Participant any right to be retained in the employment of the Company. In the absence of any
specific agreement to the contrary, this Plan shall not affect any right of the Company, or of any
affiliate of the Company, to terminate, with or without cause, the participant’s employment at any
time. This Plan shall not replace any contract of employment, whether oral, or written, between
the Company and any Participant, but shall be considered a supplement thereto. This Plan is in
addition to, and not in lieu of, any other employee benefit plan or program in which any
Participant may be or become eligible to participate by reason of employment with the Company.
Receipt of benefits hereunder shall have such effect on contributions to and benefits under such
other plans or programs as the provisions of each such other plan or program may specify.

     6.5 No Trust Fund Created. This Plan shall not create or be construed to create a trust or
separate fund of any kind or fiduciary relationship between the Company or any affiliate and a
Participant or any other person. To the extent that any person acquires a right to receive

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payments from the Company or any affiliate pursuant to this Plan, such right shall be no
greater than the right of any unsecured general creditor of the Company or of any affiliate.

     6.6 Governing Law. The place of administration of the Plan shall be in the State of Illinois.
The Plan shall be construed and administered in accordance with the laws of the State of Illinois,
without giving effect to principles relating to conflict of laws.

     6.7 Severability. If any provision of the Plan is or becomes or is deemed to be invalid,
illegal or unenforceable in any jurisdiction such provision shall be construed or deemed amended to
conform to applicable laws, or if it cannot be so construed or deemed amended without, in the
determination of the Committee, materially altering the purpose or intent of the Plan, such
provision shall be stricken as to such jurisdiction, and the remainder of the Plan shall remain in
full force and effect.

     6.8 Qualified Performance-Based Compensation. In the case of bonus payments that are intended
to qualify as qualified performance-based compensation under Section 162(m) of the Code, all of the
terms and conditions of the Plan shall be interpreted in such a fashion as to qualify such payments
as qualified performance-based compensation within the meaning of Section 162(m) of the Code.

5exv4w2

 

Exhibit 4.2

MINNERGY, LLC

SUBSCRIPTION AGREEMENT

Limited Liability Company Membership Units

$1.00 per Unit

Minimum Investment of 20,000 Units ($20,000)

5,000 Unit Increments Thereafter ($5,000)

The undersigned subscriber (“Subscriber”), desiring to become a member of MinnErgy, LLC
(“MinnErgy”), a Minnesota limited liability company, with its principal place of business at 4455
Theurer Boulevard, PO Box 186, Winona, Minnesota 55987 hereby subscribes for the purchase of
membership units of MinnErgy, and agrees to pay the related purchase price, identified below.

A. SUBSCRIBER INFORMATION. Please print your individual or entity name and address. If we accept
your subscription, the units will be titled in the name of the subscriber as it appears below.
Joint subscribers should provide both names. Your name and address will be recorded exactly as
printed below. Please provide your home, business and/or mobile telephone number. If desired,
please also provide your e-mail address.

	 	 	 	 	 	 	 	 	 
	 	1.	 	 	Subscriber’s Printed Name
	 	 	 	 
	 	 	 	 	 

	 	 

	 	 
	 	2.	 	 	Title, if applicable
	 	 	 	 
	 	 	 	 	 

	 	 

	 	 
	 	3.	 	 	Subscriber’s Address
	 	 	 	 
	 
	 	 	 	 	Street
	 	 	 	 
	 	 	 	 	 

	 	 

	 	 
	 	 	 	 	City, State, Zip Code
	 	 	 	 
	 	 	 	 	 

	 	 

	 	 
	 	4.	 	 	E-mail Address
	 	 	 	 
	 	 	 	 	 

	 	 

	 	 
	 	5.	 	 	Home Telephone Number
	 	 	 	 
	 	 	 	 	 

	 	 

	 	 
	 	6.	 	 	Business Telephone Number
	 	 	 	 
	 	 	 	 	 

	 	 

	 	 
	 	7.	 	 	Mobile Telephone Number
	 	 	 	 
	 	 	 	 	 

	 	 

	 	 

B. NUMBER OF UNITS PURCHASED. You must purchase at least 20,000 units. The minimum number of units
to be sold is 58,000,000 and the maximum number of units to be sold in the offering is 78,000,000.

	 	 	 
	 

	
Unit(s)	 

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

	 	 	 	 	 	 	 	 	 
	1. Total Purchase Price
	 	=
	 	2. 1st Installment
	 	+
	 	3. 2nd Installment
	($1.00 per unit multiplied 

by number of units)
	 	 	 	(10% of Total Purchase Price)
	 	 	 	(90% of Total Purchase Price)
	 	 	=
	 	 	 	+
	 	 

D. GENERAL INSTRUCTIONS FOR SUBSCRIBERS:

     You should read the Prospectus dated [DATE OF EFFECTIVENESS] (the “Prospectus”) in its
entirety including the exhibits for a complete explanation of an investment in MinnErgy.

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

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

     2. Immediately provide a personal (or business) check for the first installment of ten percent
(10%) of your investment amount. The check should be made payable to “Winona National Bank, escrow
agent for MinnErgy, LLC.” You will determine this amount in box C.2 on page 1 of this Subscription
Agreement.

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

     4. Deliver the original executed documents referenced in paragraphs 1 and 3 of these
instructions, together with a personal or business check as described in Paragraph 2 of these
instructions to:

MinnErgy, LLC

4455 Theurer Boulevard, PO Box 186

Winona, Minnesota 55987

     5. Within 20 days of written notice from MinnErgy that your subscription has been accepted,
you must remit an additional personal (or business) check for the second installment of ninety
percent (90%) of your investment amount made payable to “Winona National Bank, escrow agent for
MinnErgy, LLC” in satisfaction of the Promissory Note and Security Agreement. You will determine
this amount in box C.3 on page 1 of this Subscription Agreement. You must deliver this check to
the same address set forth above in paragraph 4 within twenty (20) days of the date of MinnErgy’s
written notice. If you fail to pay the second installment pursuant to the Promissory Note and
Security Agreement, MinnErgy shall be entitled to retain your first installment and to seek other
damages, as provided in the Promissory Note and Security Agreement. This means that if you are
unable to pay the 90% balance of your investment amount within 20 days of our notice, you may have
to forfeit the 10% cash deposit.

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

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

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

     2. Immediately provide your personal (or business) check for the entire amount of your
investment (as determined in box C.1 on page 1) made payable to “MinnErgy, LLC.”

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

MinnErgy, LLC

4455 Theurer Boulevard, PO Box 186

Winona, Minnesota 55987

     If you are subscribing after we have released funds from escrow and we accept your investment,
your funds will be immediately at-risk as described in the Prospectus. MinnErgy may, in its sole
discretion, reject or accept any part or all

 2

 

of your subscription. If MinnErgy rejects your
subscription, your Subscription Agreement and investment will be returned to you promptly, plus
nominal interest. MinnErgy may not consider the acceptance or rejection of your subscription until
a future date near the end of this offering.

You may direct your questions to the governors listed below or to MinnErgy at (507) 858-0022.

	 	 	 	 	 
	NAME	 	POSITION	 	PHONE NUMBER
	Dan Arnold

	 	Chairman of the Board and Governor
	 	(507) 858-0022
	Ron Scherbring

	 	President/CEO and Governor
	 	(507) 858-0050
	Chris Arnold

	 	Secretary, CFO and Governor
	 	(507) 858-0051
	Dave Arnold

	 	Governor
	 	(507) 858-0052
	Mike Daley

	 	Governor
	 	(507) 858-0053
	Harland Knight

	 	Governor
	 	(507) 858-0054
	Bea Koch

	 	Governor
	 	(507) 858-0055
	Glen Lutteke

	 	Governor
	 	(507) 858-0056
	Rich Mikrut

	 	Governor
	 	(507) 858-0057
	Bob Pennington

	 	Governor
	 	(507) 858-0058
	Tony Wasinger

	 	Governor
	 	(507) 858-0059

	 	 	 	 	 	 	 	 	 	 	 	 	 
	E.	 	Additional Subscriber Information. Subscriber, named above, certifies the following under
penalties of perjury:
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	1.	 	 	Form of Ownership. Check the appropriate box (one only) to indicate form of
ownership. If the subscriber is a Custodian, Corporation, Partnership or Trust, please
provide the additional information requested.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	o
	 	Individual	 	 	 	 
	 	 	 	 	 	 	o	 	Joint Tenants with Right of Survivorship (Both signatures must appear on page 6.)
	 	 	 	 	 	 	o	 	Corporation, Limited Liability Company or Partnership (Corporate
Resolutions, Operating Agreement or Partnership Agreement must be enclosed.)
	 

	 	 	 	 	 	o
	 	Trust	 	 	 	 
	 	 	 	 	 	 	 	 	      Trustee’s Name:                                                             
	 	 	 	 	 	 	 	 	      Trust Date:                                                             
	 	 	 	 	 	 	o	 	Other: Provide detailed information in the space immediately below.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	2.	 	 	Subscriber’s Taxpayer Information. Check the appropriate box if you are a
non-resident alien, a U.S. Citizen residing outside the United States, and/or subject
to backup withholding. All individual subscribers should provide their Social Security
Numbers. Trusts should provide the trust’s taxpayer identification number. Custodians
should provide the minor’s Social Security Number. Other entities should provide the
entity’s taxpayer identification number.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	o	 	Check box if you are a non-resident alien
	 	 	 	 	 	 	o	 	Check box if you are a U.S. citizen residing outside of the United States
	 	 	 	 	 	 	o	 	Check this box if you are subject to backup withholding
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Subscriber’s Social Security No.	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	Joint Subscriber’s Social Security No.	 	 
	 

	 	 	 	 	 	 	 	 	 	 

	 	 
	 	 	 	 	 	 	Taxpayer Identification No.	 	 
	 

	 	 	 	 	 	 	 	 	 	 

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

	 	 	 	 	 	Address:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

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	 	 	 	4.	 	 	State of Residence.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	State of Principal Residence:
	 

	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	State where driver’s license is issued:
	 

	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	State where resident income taxes are filed:
	 

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

	 	 	 	 	 	  a.
	 	  b.
	 	  c.
	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	5.	 	 	Suitability Standards and Confidential Investor Information. You cannot invest
in MinnErgy unless you meet one of the following suitability tests a) or b) or the
heightened standards for Iowa investors set forth in c) set forth below. Please review
the suitability tests and check the box next to the following suitability test that you
meet. For husbands and wives purchasing jointly, the tests below will be applied on a
joint basis.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	a. o	 	I (We) have annual income from whatever source of at least
$45,000 and a net worth of at least $45,000, exclusive of home,
furnishings and automobiles; or
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	b. o	 	I (We) have a net worth of at least $150,000, exclusive of
home, furnishings and automobiles.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	c. o	 	I (We) reside in Iowa and I (We) have a net worth of $70,000
(exclusive of home, auto and furnishings) and annual income of $70,000 or, in
the alternative, a net worth of $250,000 (exclusive of home, auto and
furnishings).
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	6.	 	 	Subscriber’s Representations and Warranties. You must read and certify your
representations and warranties by placing your initials where indicated and by signing
and dating this Subscription Agreement. Joint subscribers are also required to
initial and sign as indicated.

(Initial here) (Joint initials) By signing below the subscriber represents and warrants to MinnErgy
that:

	 	 	 	 	 
	                    
	 	                    
	 	a. he, she or it has received a copy of MinnErgy’s Prospectus dated [DATE OF EFFECTIVENESS] and the exhibits
thereto or has received notice that this sale has been made pursuant to a registration statement in which a
final prospectus would have been required to have been delivered in the absence of Rule 172;

	 	 	 	 	 

	                    
	 	                    
	 	b. the units of MinnErgy are offered and sold in reliance upon a federal securities registration; state
registrations in Iowa, Minnesota, and Wisconsin; and exemptions from securities registrations in various
other states, and understands that the units to be issued pursuant to this subscription agreement can only
be sold to a person meeting requirements of suitability;

	 	 	 	 	 

	                    
	 	                    
	 	c. the securities purchased pursuant to this Subscription Agreement have not been registered under the
securities laws of any state other than Iowa, Minnesota, and Wisconsin and that MinnErgy is relying in part
upon the representations of the undersigned Subscriber contained herein;

	 	 	 	 	 

	                    
	 	                    
	 	d. the securities subscribed for have not been approved or disapproved by the SEC, or the Iowa, Minnesota, and
Wisconsin Securities Departments or any other regulatory authority, nor has any regulatory authority passed
upon the accuracy or adequacy of the Prospectus;

	 	 	 	 	 

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

	 	 	 	 	 

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

	 	 	 	 	 

	                    
	 	                    
	 	g. he, she or it is encouraged to seek the advice of his legal counsel and accountants or other financial
advisers with respect to investor-specific tax and/or other considerations relating to the purchase and
ownership of units;

	 	 	 	 	 

	                    
	 	                    
	 	h. he, she or it has received a copy of MinnErgy’s Second Amended and Restated

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	 	 	 	 	Member Control Agreement, dated May 4, 2007, and understands that upon closing the escrow by MinnErgy, the subscriber and the
membership units will be bound by the provisions of the Second Amended and Restated Member Control Agreement which contains, among
other things, provisions that restrict the transfer of membership units;

	 	 	 	 	 

	                    
	 	                    
	 	i. the units are subject to substantial restrictions on transfer under certain tax and securities
laws along with restrictions in MinnErgy’s Second Amended and Restated Member Control Agreement,
and agrees that if the membership units or any part thereof are sold or distributed in the
future, the subscriber shall sell or distribute them pursuant to the terms of the Member Control
Agreement, and the requirements of the Securities Act of 1933, as amended, and applicable tax and
securities laws;

	 	 	 	 	 

	                    
	 	                    
	 	j. he, she or it meets the suitability test marked in Item E.5 above;

	 	 	 	 	 

	                    
	 	                    
	 	k. he, she or it is capable of bearing the economic
risk of this investment, including the possible total loss of the investment
[Minnesota subscribers should NOT initial this subsection];

	 	 	 	 	 

	                    
	 	                    
	 	l. MinnErgy will place a restrictive
legend on any certificate representing any unit containing substantially
the following language as the same may be amended by the Governors of
MinnErgy in their sole discretion:

	 	 	 	 	 

	 	 	 	 	THE TRANSFERABILITY OF THE COMPANY UNITS REPRESENTED BY THIS
CERTIFICATE IS RESTRICTED. SUCH UNITS MAY NOT BE SOLD, ASSIGNED,
OR TRANSFERRED, AND NO ASSIGNEE, VENDEE, TRANSFEREE, OR ENDORSEE
THEREOF WILL BE RECOGNIZED AS HAVING ACQUIRED ANY SUCH UNITS FOR
ANY PURPOSES, UNLESS AND TO THE EXTENT SUCH SALE, TRANSFER,
HYPOTHECATION, OR ASSIGNMENT IS PERMITTED BY, AND IS COMPLETED IN
STRICT ACCORDANCE WITH, THE TERMS AND CONDITIONS SET FORTH IN THE
MEMBER CONTROL AGREEMENT OF THE COMPANY, AS AMENDED FROM TIME TO
TIME.

	 	 	 	 	 

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

	 	 	 	 	 

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

	 	 	 	 	 

	                    
	 	                    
	 	n. he, she or it may not transfer or assign this Subscription Agreement, or any of
the subscriber’s interest herein without the prior written consent of MinnErgy;

	 	 	 	 	 

	                    
	 	                    
	 	o. he, she or it has written his, her, or its correct taxpayer identification
number under Item E.2 on this Subscription Agreement;

	 	 	 	 	 

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

	 	 	 	 	 

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

	 	 	 	 	 

	                    
	 	                    
	 	r. MinnErgy may retain possession of certificates representing subscriber’s units
to perfect its security interest in those units.

 5

 

	 	 	 	 	 	 	 
	Signature of Subscriber/Joint Subscriber:	 	 	 	 
	 
	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Individuals:	 	 	 	Entities:
	 
	 	 	 	 	 	 
	 	 	 	 	 
	Name of Individual Member (Please Print)	 	 	 	Name of Entity (Please Print)
	 
	 	 	 	 	 	 
	 	 	 	 	 
	Signature of Individual	 	 	 	Print Name and Title of Officer
	 
	 	 	 	 	 	 
	 	 	 	 	 
	Name of Joint Individual Member (Please Print)	 	 	 	Signature of Officer
	 
	 	 	 	 	 	 
	 	 	 	 	 
	Signature of Joint Individual Member	 	 	 	 

ACCEPTANCE OF SUBSCRIPTION BY MINNERGY, LLC:

MinnErgy, LLC hereby accepts Subscriber’s subscription for                      units.

Dated this                     day of                                         , 200___.

	 	 	 	 	 
	MINNERGY, LLC
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Its:
	 	 	 	 
	 

	 	 	 	 

 6

 

PROMISSORY NOTE AND SECURITY AGREEMENT

     Date of Subscription Agreement:                                         , 200___.

$1.00 per Unit

Minimum Investment of 20,000 Units ($20,000); Units Sold in 5,000 Unit Increments Thereafter ($5,000 each)

	 	 	 	 	 
	 

	 	 	 	Number of Units Subscribed
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 	 	Total Purchase Price ($1.00 per unit multiplied by number of units subscribed)
	 

	 	 

	 	 
	 
	 	 	 	 
	 

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

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 	 	Principal Balance
	 

	 	 

	 	 

FOR VALUE RECEIVED, the undersigned hereby promises to pay to the order of MinnErgy, LLC, a
Minnesota limited liability company (“MinnErgy”), at its principal office located at 4455 Theurer
Boulevard, PO Box 186, Winona, Minnesota 55987, or at such other place as required by MinnErgy, the
Principal Balance set forth above in one lump sum to be paid without interest within 20 days
following the call of the MinnErgy Board of Governors, as described in the Subscription Agreement.
In the event the undersigned fails to timely make any payment owed, the entire balance of any
amounts due under this full recourse Promissory Note and Security Agreement shall be immediately
due and payable in full with interest at the rate of 12% per annum from the due date and any
amounts previously paid in relation to the obligation evidenced by this Promissory Note and
Security Agreement may be forfeited at the discretion of MinnErgy.

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

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

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

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

Dated:                                                            , 200__.

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	OBLIGOR/DEBTOR:	 	 	 	JOINT OBLIGOR/DEBTOR:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Printed or Typed Name of Obligor	 	 	 	Printed or Typed Name of Joint Obligor	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

(Signature)
	 	 
	 	 	 	 

(Signature)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Officer Title if Obligor is an Entity	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	Address of Obligor

	 	 	 	 	 	 	 	 

 7

 

Exhibit A

MEMBER SIGNATURE PAGE

ADDENDUM TO THE

SECOND AMENDED AND RESTATED MEMBER CONTROL AGREEMENT

OF MINNERGY, LLC

     The undersigned does hereby warrant, represent, covenant and agree that: (i) the undersigned,
as a condition to becoming a Member in MinnErgy, LLC, has received a copy of the Second Amended and
Restated Member Control Agreement dated November 2, 2007, and, if applicable, all amendments and
modifications thereto; (ii) the undersigned shall be subject to and comply with all terms and
conditions of such Member Control Agreement in all respects, as if the undersigned had executed
said Member Control Agreement on the original date thereof; and (iii) the undersigned is and shall
be bound by all of the provisions of said Member Control Agreement from and after the date of
execution of this Addendum.

	 	 	 	 	 	 	 	 	 
	Individuals:	 	 	 	Entities:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Name of Individual Member (Please Print)	 	 	 	Name of Entity (Please Print)	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Signature of Individual	 	 	 	Print Name and Title of Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Name of Joint Individual Member (Please Print)	 	 	 	Signature of Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Signature of Joint Individual Member	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Agreed to and accepted on behalf of the

Company and its Members:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	MINNERGY, LLC	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Its:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

C-1

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