Document:

Exhibit 10.2

 

[SCHEDULE B]

 

[Listing
of Additional Indebtedness]

 

PROMISSORY NOTE

 

To Master Security Agreement
No.                   

 

                    

(Date)

 

FOR
VALUE RECEIVED, Acusphere, Inc., a Delaware corporation, located at the
address stated below (“Maker”)
promises, jointly and severally if more than one, to pay to the order of Oxford Finance Corporation or any
subsequent holder hereof (each, a “Payee”)
at its office located at 133 N. Fairfax
Street, Alexandria, VA 22314 or at such other place as Payee or the
holder hereof may designate, the principal sum of                                 Dollars ($                               ), with interest on the unpaid principal
balance, from the date hereof through and including the dates of payment, at a fixed
interest rate of
                percent
(                     %)
per annum, in                     
(                )
consecutive                installments
of principal and interest as follows:

 

Periodic

 

Installment Amount

 

each (“Periodic Installment”)
and a final installment which shall be in the amount of the total outstanding
principal and interest. The first Periodic Installment shall be due and payable
on                                   
and the following Periodic Installments and the final installment shall be due
and payable on the first day of each succeeding month (each, a “Payment Date”) beginning                              .
Such installments have been calculated on the basis of a 360-day year of twelve
30-day months. Each payment may, at the option of the Payee, be calculated and
applied on an assumption that such payment would be made on its due date. Maker
agrees to pay any initial partial month interest payment from the date of this
Note to the first day of the following month (“Interim Interest”).

 

The
acceptance by Payee of any payment which is less than payment in full of all
amounts due and owing at such time shall not constitute a waiver of Payee’s
right to receive payment in full at such time or at any prior or subsequent
time.

 

The
Maker hereby expressly authorizes the Payee to insert the date value is
actually given in the blank space on the face hereof and on all related
documents pertaining hereto.

 

This Note may be secured by a security agreement, chattel mortgage,
pledge agreement or like instrument (each of which is hereinafter called a “Security Agreement” and any Security Agreement, this
Note and any other document evidencing or securing this loan is hereinafter
called a “Debt Document”).

 

 

Time
is of the essence hereof. If any installment or any other sum due under this
Note or any Security Agreement is not received when due (subject to applicable
cure periods, if any), the Maker agrees to pay, in addition to the amount of
each such installment or other sum, a late payment charge of five percent (5%)
of the amount of said installment or other sum, but not exceeding any lawful
maximum. If (i) Maker fails to make payment of any amount due hereunder ;
or  (ii) Maker is in default under, or
fails to perform under any term or condition contained in any Security
Agreement, in either case, subject to applicable cure periods, if any, then the
entire principal sum remaining unpaid, together with all accrued interest
thereon and any other sum payable under this Note or any Security Agreement, at
the election of Payee, shall immediately become due and payable, with interest
thereon at the lesser of eighteen percent (18%) per annum or the highest rate
not prohibited by applicable law from the date of such accelerated maturity
until paid (both before and after any judgment).

 

Notwithstanding
anything to the contrary contained herein or in the Security Agreement, Maker
may prepay in full, but not in part, its entire Indebtedness hereunder by
payment of the entire Indebtedness plus an additional sum as a premium equal to
the following percentages of the remaining principal balance for the indicated
period:

 

From
the date of this Note until the first annual anniversary date of this Note: six
percent (6%)

 

From
the first annual anniversary date of this Note until the second annual
anniversary date of this Note: five percent (5%)

 

From
the second annual anniversary date of this Note until the third annual
anniversary date of this Note: four percent (4%)

 

From
the third annual anniversary date of this Note until the fourth annual
anniversary date of this Note: two percent (2%)

 

Notwithstanding
the foregoing, Maker may prepay in full, but not in part, its entire
Indebtedness hereunder by payment of the entire Indebtedness without having to
pay the additional sums described above as premiums in the event that Payee
does not consent on a timely basis to (i) any of the distributions described in
Section 3(i) of the Security Agreement, (ii) any of the payments described in
Section 3(j) of the Security Agreement or (iii) any of the transactions
described in Section 7(a)(xiv) of the Security Agreement.

 

The
Maker and all sureties, endorsers, guarantors or any others (each such person,
other than the Maker, an “Obligor”)
who may at any time become liable for the payment hereof jointly and severally
consent hereby to any and all extensions of time, renewals, waivers or
modifications of, and all substitutions or releases of, security or of any
party primarily or secondarily liable on this Note or any Security Agreement or
any term and provision of either, which may be made, granted or consented to by
Payee, and agree that suit may be brought and maintained against any one or
more of them, at the election of Payee without joinder of any other as a party
thereto, and that Payee shall not be required first to foreclose, proceed
against, or exhaust any security hereof in order to enforce payment of this
Note. The Maker and each Obligor hereby waives presentment, demand for payment,
notice of nonpayment, protest, notice of protest, notice of dishonor, and all
other notices in connection herewith, as well as filing of suit (if permitted
by law) and diligence in collecting this Note or enforcing any of the security
hereof, and agrees to pay (if and to the extent permitted by law) all expenses
incurred in collection, including Payee’s actual attorneys’ fees. Maker and
each Obligor agrees that fees not in excess of twenty percent (20%) of the
amount then due shall be deemed reasonable.

 

Maker
and Payee intend to strictly comply with all applicable federal and Virginia
laws, including applicable usury laws (or the usury laws of any jurisdiction
whose usury laws are deemed to apply to the Note or any other Debt Document
despite the intention and desire of the parties to apply the usury laws of the
Commonwealth of Virginia). Accordingly, the provisions of this paragraph shall
govern and control over every other provision of this Note or any other Debt
Document which conflicts or is inconsistent with this Section, even if such
provision declares that it controls. As used in this paragraph, the term “interest” includes the aggregate of all
charges, fees, benefits or other compensation which constitute interest under
applicable law, provided that, to the maximum extent permitted by
applicable law, (a) any non-principal payment shall be characterized as an
expense or as compensation for something other than the use, forbearance or
detention of money and not as interest, and (b) all interest at any time
contracted for, reserved, charged or received shall be amortized, prorated,
allocated and spread, in equal parts during the full term of the obligations. In
no event shall Maker or any other person be obligated to pay, or Payee have any
right or privilege to reserve, receive or retain, (a) any interest in excess of
the maximum amount of non-usurious interest permitted under the laws of the
Commonwealth of Virginia or the applicable laws (if any) of the United States
or of any other state, or (b) total interest in excess of the amount which
Payee could lawfully have contracted for, reserved, received, retained or
charged had the interest been calculated for the full term of the obligations. On
each day, if any, that the interest rate (the “Stated Rate”) called for
under this Note or any other Debt Document exceeds the maximum non-usurious
rate, the rate at which interest shall accrue shall automatically be fixed by
operation of this sentence at the maximum non-usurious rate for that day. Thereafter,
interest shall accrue at the Stated Rate unless and until the Stated Rate again
exceeds the maximum non-usurious rate, in which case, the provisions of the
immediately 

 

 

preceding
sentence shall again automatically operate to limit the interest accrual rate
to the maximum non-usurious rate. The daily interest rates to be used in
calculating interest at the maximum non-usurious rate shall be determined by
dividing the applicable maximum non-usurious rate by the number of days in the
calendar year for which such calculation is being made. None of the terms and
provisions contained in this Note or in any other Debt Document which directly
or indirectly relate to interest shall ever be construed without reference to
this paragraph, or be construed to create a contract to pay for the use,
forbearance or detention of money at an interest rate in excess of the maximum
non-usurious rate. If the term of any obligation is shortened by reason of
acceleration of maturity as a result of any Default or by any other cause, or
by reason of any required or permitted prepayment, and if for that (or any
other) reason Payee at any time, including but not limited to, the stated
maturity, is owed or receives (and/or has received) interest in excess of
interest calculated at the maximum non-usurious rate, then and in any such
event all of any such excess interest shall be canceled automatically as of the
date of such acceleration, prepayment or other event which produces the excess,
and, if such excess interest has been paid to Payee, it shall be credited pro
tanto against the then-outstanding principal balance of Maker’s obligations
to Payee, effective as of the date or dates when the event occurs which causes
it to be excess interest, until such excess is exhausted or all of such
principal has been fully paid and satisfied, whichever occurs first, and any
remaining balance of such excess shall be promptly refunded to its payor.

 

THE MAKER HEREBY UNCONDITIONALLY WAIVES ITS RIGHTS TO A
JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF, DIRECTLY
OR INDIRECTLY, THIS NOTE, ANY OF THE RELATED DOCUMENTS, ANY DEALINGS BETWEEN
MAKER AND PAYEE RELATING TO THE SUBJECT MATTER OF THIS TRANSACTION OR ANY
RELATED TRANSACTIONS, AND/OR THE RELATIONSHIP THAT IS BEING ESTABLISHED BETWEEN
MAKER AND PAYEE. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF
ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT (INCLUDING, WITHOUT
LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER
COMMON LAW AND STATUTORY CLAIMS.)  THIS
WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN
WRITING, AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS,
SUPPLEMENTS OR MODIFICATIONS TO THIS NOTE, ANY RELATED DOCUMENTS, OR TO ANY
OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS TRANSACTION OR ANY RELATED
TRANSACTION. IN THE EVENT OF LITIGATION, THIS NOTE MAY BE FILED AS A WRITTEN
CONSENT TO A TRIAL BY THE COURT.

 

This
Note and any Security Agreement constitute the entire agreement of the Maker
and Payee with respect to the subject matter hereof and supercedes all prior
understandings, agreements and representations, express or implied.

 

No
variation or modification of this Note, or any waiver of any of its provisions
or conditions, shall be valid unless in writing and signed by an authorized
representative of Maker and Payee. Any such waiver, consent, modification or
change shall be effective only in the specific instance and for the specific
purpose given.

 

Any
provision in this Note or any Security Agreement which is in conflict with any
statute, law or applicable rule shall be deemed omitted, modified or altered to
conform thereto.

 

Upon
receipt of an affidavit of an officer of Payee as to the loss, theft,
destruction or mutilation of this Note or any Debt Document which is not of
public record, and, in the case of any such loss, theft, destruction or
mutilation, upon surrender and cancellation of such Note or other Debt
Document, Maker will issue, in lieu thereof, a replacement Note or other Debt
Document in the same principal amount thereof and otherwise of like tenor.

 

It
is understood and agreed that this Note and all of the Debt Documents were
negotiated and have been or will be delivered to Payee in the Commonwealth of
Virginia, which State the parties agree has a substantial relationship to the
parties and to the underlying transactions embodied by this Note and the Debt
Documents. Maker agrees to furnish to Payee at Payee’s office in Alexandria,
VA, all further instruments, certifications and documents to be furnished
hereunder. The parties also agree that if collateral is pledged to secure the
debt evidenced by this Note, that the state or states in which such collateral
is located each have a substantial relationship to the parties and to the
underlying transaction embodied by this Note and the Debt Documents.

 

MAKER
AGREES THAT THE PAYEE OF THIS NOTE SHALL HAVE THE OPTION BY WHICH STATE LAWS
THIS NOTE SHALL BE GOVERNED AND CONSTRUED: (A) THE LAWS OF THE COMMONWEALTH OF
VIRGINIA; OR (B) IF COLLATERAL HAS BEEN PLEDGED TO SECURE THE DEBT EVIDENCED BY
THIS NOTE, THEN BY THE LAWS OF THE STATE OR STATES WHERE THE COLLATERAL IS
LOCATED, AT PAYEE’S OPTION. THIS CHOICE OF STATE LAWS IS EXCLUSIVE TO THE PAYEE
OF THIS NOTE. MAKER SHALL NOT HAVE ANY OPTION TO CHOOSE THE LAWS BY WHICH

 

 

THIS
NOTE SHALL BE GOVERNED. MAKER AND GUARANTORS HEREBY CONSENT TO THE EXERCISE OF
JURISDICTION OVER IT BY ANY FEDERAL COURT SITTING IN VIRGINIA OR ANY VIRGINIA
COURT SELECTED BY PAYEE, FOR THE PURPOSES OF ANY AND ALL LEGAL PROCEEDINGS
ARISING OUT OF OR RELATING TO THE NOTE, THE LOAN AGREEMENT AND ALL OTHER
DOCUMENTS. MAKER AND GUARANTORS IRREVOCABLY WAIVE, TO THE FULLEST EXTENT
PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY SUCH PROCEEDING BROUGHT IN ANY SUCH COURT, ANY CLAIM
BASED ON THE CONSOLIDATION OF PROCEEDINGS IN SUCH COURTS IN WHICH PROPER VENUE
MAY LIE IN DIVERGENT JURISDICTIONS, AND ANY CLAIM THAT ANY SUCH PROCEEDING
BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. MAKER AND
GUARANTORS HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW,
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS NOTE, THE OTHER DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED
THEREBY.

 

 

	
   

  	
  Acusphere, Inc.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  (Witness)

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
  (Print name)

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
  (Address)

  	
   

  
	
   

  	
  Federal Tax ID #:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:Exhibit 10.9

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT,
dated this 17th day of October, 2005, between Dakota Ethanol, L.L.C., a South
Dakota limited liability company, hereinafter called “Employer” and Scott A.
Mundt, of Brookings, South Dakota, hereinafter called “Employee.”

 

W I T N E S S E T H:

 

1.                                     Definitions.

 

(a)                                  “Adjusted Earnings” means Employer’s earnings calculated
before deductions for interest expense, income taxes, depreciation and
amortization, and without including any governmental incentive income as
determined by Employer using Generally Accepted Accounting Principles applied
on a consistent basis.

 

(b)                                 “Applicable Guidance” means Treasury Regulations issued
pursuant to Code §409A, or other written Treasury or IRS guidance regarding
Code §409A, which is in addition to Notice 2005-1.

 

(c)                                  “Board” means the Board of Managing Members of the Employer.

 

(d)                                 “Book Value” means the book value of the Employer as
disclosed by the Employer’s books of account regularly maintained in accordance
with generally accepted accounting principles applied on a consistent basis.

 

(e)                                  “Change in Control” of the Employer means a change: (i) in
the ownership of the Employer; (ii) in the effective control of the
Employer; or (iii) in the ownership of a substantial portion of the assets
of the Employer, within the meaning of Notice 2005-1, Q/As 11-14 or in
Applicable Guidance.

 

(f)                                    “Code” means the Internal Revenue Code of 1986, as amended.

 

(g)                                 “Net Income” means Operational Revenues minus Operational
Costs as determined by using generally accepted accounting principles applied
on a consistent basis before income taxes.

 

(h)                                 “Operational Costs” means all normal and reasonable costs and
expenses directly and indirectly associated with the daily operation of the
Employer.  These expenses may include,
without limitation, administrative and general overhead expenses, utilities,
production inputs, supplies, transportation, general supplies, raw material
acquisitions, insurance premiums, marketing expenses, repair expenses, maintenance
expenses, engineering expenses, data processing expenses, legal, accounting and
audit fees, billing expenses, expenses of preparing tax returns and reports,
taxes, travel, telephone, salaries of employees (including social security and
Medicare, relief, pensions, and other benefits) interest, and other incidental
business expenses incurred in connection with Employer’s business.

 

 

(i)                                     “Operational Revenues” means all revenues from Employer’s
operations, including, but not limited to, sales of ethanol, byproducts and
ancillary operations.

 

(j)                                     “Separation from Service” means an Employee’s termination of
employment  with the Employer or as
otherwise defined in Applicable Guidance.

 

2.                                       Employment.  The Employer hereby employs the Employee, and
the Employee hereby accepts employment upon the terms and conditions
hereinafter set forth.

 

3.                                     Duties
of Employee.  Employee shall serve as
the Transition Coordinator of Employer.  
Subject to the direction of the Board, Employee shall have full
authority to operate on a day-to-day basis, and manage the business and affairs
of Employer and shall perform such other executive, managerial and
administrative duties as are from time to time assigned to him by the Board and
which are normally associated with the position of Transition Coordinator.  Employee agrees as follows:

 

(a)                                  Employee
shall devote his working time, knowledge and skill solely and exclusively to
the business of Employer.  Employee shall
not be engaged in any other trade, business or enterprise except as an investor
for himself or any other person, business or company while employed by
Employer.

 

(b)                                 Employee
shall at all times represent the interests of Employer to the utmost of
Employee’s capacity and ability and Employee shall serve Employer loyally and
faithfully.

 

(c)                                  The
Employee’s hours of work shall be as dictated by the requirements of the duties
for which Employee is responsible.

 

(d)                                 Employee
agrees to observe and comply with all applicable rules and regulations
established by the Employer.

 

4.                                       Compensation.  As compensation for his services, the
Employer shall pay to the Employee as follows:

 

(a)                                  Base
Compensation.  An annual base salary
of Ninety Thousand Dollars (90,000.00), payable in equal bi-monthly
installments during the term of his employment. The Board will review the base
salary annually.

 

(b)                                 Variable
Incentive Compensation.  In addition
to the Base Compensation, as an incentive to Employee to achieve high
profitability, to promote collection of those revenues billed and to encourage
quality and efficiency of operation, the Employer shall pay to the Employee
Variable Incentive Compensation equal to three-tenths of one percent (0.3%) of
the monthly Adjusted Earnings in each month of the fiscal

 

2

 

year. Adjusted Earnings are based on the most recent monthly financial
statements produced by the Employer and provided to the Board.  The Employer will pay the Variable Incentive
Compensation to Employee the first regularly scheduled payroll following Board
approval of the previous month’s financial statements.  Should the Variable Incentive Compensation
for the month result in a negative amount, such amount will be deducted from
any future Variable Incentive Compensation. 
For the last month of the fiscal year, this Variable Incentive
Compensation payment will not be paid until following completion of the
Employer’s annual audit, and within ninety (90) days of the end of the fiscal
year, .  This final payment, when added
to the previous Variable Incentive Compensation payments, will adjust the
annual Variable Incentive Compensation to equal three-tenths of one percent
(0.3%) of Employer’s audited annual Adjusted Earnings for the fiscal year.  During any fiscal year Employee only works a
part of the fiscal year, the final payment will adjust the Variable Incentive
Compensation to reflect that the Variable Incentive Compensation payments equal
three-tenths of one percent (0.3%) of the Employer’s audited Adjusted Earnings
for only that portion of the year in which Employee was employed by Employer.

 

5.                                       Employee
Benefits.  This Agreement is not
intended to and shall not be deemed to be in lieu of any rights, benefits and
privileges to which Employee may be entitled as an employee of Employer under any
plan of employee benefits or any other arrangement providing employee benefits
to Employer’s employees, including, but not limited to, vacation, medical and
health insurance, life insurance, and any qualified retirement plan which may
now be in effect or hereafter adopted by Employer as amended from time to time
in the Employer’s sole discretion. To the extent the following benefits are
offered to all of Employer’s employees, Employer shall provide the following
enhanced benefits to Employee:

 

1.   Medical Insurance.
Employer agrees to pay the full premium for family coverage for any medical
insurance plan Employer offers to all of its employees.  To the extent Employer offers more than one
option to employees for medical insurance, Employer agrees to pay the full
premium for family coverage for the option chosen by Employee.

 

2.  Dental Insurance.
Employer agrees to pay the full premium for family coverage for dental
insurance.

 

3.  Short Term Disability.
Employer agrees to pay the full premium for Short Term Disability insurance.

 

4.  Paid Time Off.  Employee will receive 20 days of PTO during
the first year, 25 days during the second year, and 30 days per year
thereafter. Employee will provide advance notice to the Board for vacation time
exceeding 5 consecutive business days.

 

3

 

6.                                       Expenses.  Employer will reimburse Employee for all
reasonable business related expenses upon the presentment by Employee, from
time to time, of an itemized account of such expenditures and receipts
therefor.

 

7.                                       Change
in Control.  Upon a Change in
Control, Employer shall pay Employee the following, payable in cash in a lump
sum on the first day of the month following the Change in Control:

 

(a)                                  If
the total financial consideration paid for Employer constituting the Change of
Control equals or exceeds one and one half the Book Value of the Employer
calculated as of the last day of the month preceding the final event
constituting the Change of Control, Employer shall pay Employee a lump sum
payment equal to three (3) times Employee’s annual Base Compensation in
effect on the date of the Change of Control; or

 

(b)                                 If
the total financial consideration paid for Employer constituting the Change of
Control is less than one and one-half times the Book Value of the Employer
calculated as of the last day of the month preceding the final event
constituting the Change of Control, Employer will pay Employee an amount equal
to his annual Base Compensation in effect on the date of the Change of Control.

 

8.                                       Withholding.
The Employer will withhold from any payment to Employee made pursuant to this
Agreement and from any amount taxable under Code §409A, all applicable taxes,
and any and all other amounts required to be withheld under federal, state or
local law, including Notice 2005-1 and Applicable Guidance, and any voluntary
reductions elected by Employee.

 

9.                                       Excess
Parachute Payment.  Notwithstanding
any provision of this Agreement to the contrary, Employer shall not pay any
benefit to the extent the benefit would be a nondeductible parachute payment
under Section 280G of the Internal Revenue Code.

 

10.                                 Termination
With or Without Cause.  Employee is
an Employee at will.  It is understood
and agreed that either Employee or Employer may terminate this Agreement at any
time with or without cause and without formal notice.  If terminated, with cause (cause defined as
theft, embezzlement, sexual harassment, conviction of a felony or misdemeanor
involving moral turpitude),Employee shall not be entitled to any advance
notice, severance pay or any other compensation other than compensation earned
to date of the termination.  If
terminated without cause following completion of a six month probationary
period, the employee will receive a severance payment in the amount of 3 months
base compensation

 

11.                                 Trade
Secrets.  Employee acknowledges that
in the course of employment, Employee will acquire confidential information of
a special and unique nature and value relating to Employer’s business and
relating to any subsidiaries and affiliates of Employer.  Such information shall be considered a trade
secret owned by the Employer, which information shall include, but is not
limited to, specifications, samples, tools, technical information, data, market
information, customers, relationship with experts, consultants and governmental
agencies, information concerning

 

4

 

Employer’s systems, policies, methods of operation, procedures,
manuals, financial reports, and pricing and all other non-public information
acquired by Employee as a result of or during the course of employment.  Employer shall retain ownership of all rights
to all materials, except materials which are readily available to anyone in the
ethanol industry.  Reuse of the materials
or concepts is prohibited without the prior written consent of Employer.  Employee agrees that all such information
acquired during the course of employment, whether such information is
communicated in written or verbal form, and whether such information is in
recorded or unrecorded form and whether it is maintained solely at Employer’s
offices or also maintained elsewhere or combined or maintained by Employee
solely or in combination with other information, constitute trade secrets of
Employer.

 

Employee shall not at any time or in any manner, either directly or
indirectly, divulge or disclose Employer’s trade secrets to any other person or
entity, and Employee shall not use such trade secrets in competition with
Employer or for the gain or benefit of Employee or any other person or
company.  The obligations of Employee
under this paragraph 11 shall survive the termination of this Agreement.

 

Following termination of employment, Employee shall not remove or
retain any document, copy of document, client or prospect files, or any other
recording, in any type or form, relating to said trade secrets.  Employee shall not utilize or divulge said
trade secrets to any other person or company, regardless of whether such
knowledge or information is in recorded form or otherwise.

 

12.                                 Agreement
Not to Compete.  In consideration of
the Employer’s hiring and continued employment of Employee, and Employer making
Employer’s trade secrets available to Employee, the sufficiency of which
consideration is conclusively acknowledged, Employee agrees not to engage
directly or indirectly, either personally or as an employee, associate,
partner, or otherwise, or by means of any corporation or other legal entity, or
otherwise, in any business in competition with Employer or its subsidiaries,
divisions, or affiliates, during the course of employment and for a period of
six months from the date of the termination of employment, within South Dakota,
Minnesota, Nebraska, Iowa, or any other state in which Employer operates an
ethanol plant so long as Employer (or related entity) continues to carry on a
like business in the described territory (the “Restricted Territory”).

 

The parties have attempted to limit Employee’s rights to compete only
to the extent necessary to protect Employer from unfair competition.  The parties recognize, however, that
reasonable people may differ in making such a determination.  Employee acknowledges that he will be able to
earn a livelihood without violating the foregoing restrictions and that his
ability to earn a livelihood without violating such restrictions is a material
condition to his execution of this Agreement with Employer.

 

Employee agrees that if Employee obtains or commences employment
(whether full-time or part-time) with any other employer during the six-month
period referred to in this section, Employee shall provide such new employer
with a copy of this Agreement, and Employee agrees that Employer may provide
copies of this Agreement to such new employer. 
Employee agrees that Employer shall have the right to inform such new
employer of Employee’s obligations hereunder.

 

5

 

For purposes of this section, the Employer shall include, in addition
to the Employer specifically identified herein, any successor to Employer and
any purchaser of Employer’s business.

 

13.                                 Remedies
for Breach of Trade Secrets and Non-Competition Agreement.  Employee expressly agrees that Employee’s
violation of this Agreement relating to trade secrets and/or non-competition
shall entitle Employer to injunctive relief. 
Employer shall be entitled to any and all further or other rights and
remedies available at law or in equity. 
If a legal action is instituted to enforce the provisions of this
Agreement, or any part of it, the prevailing party shall be entitled to
recovery of reasonable attorneys’ fees and costs, including discovery costs, as
determined by the Court.

 

14.                               Assignment.  This Agreement is a personal services
contract and neither party may assign his or its duties or obligations
hereunder without first obtaining the written consent of the other parties
hereto.

 

15.                               Notices.  Any notice required or permitted to be given
under this Agreement shall be sufficient if in writing and if sent by certified
mail to the Employee’s residence in the case of the Employee or to the Employer’s
principal office in the case of the Employer.

 

16.                               Waiver
of Breach.  The waiver by the
Employer of a breach of any provisions of this Agreement by the Employee shall
not operate or be construed as a waiver of any subsequent breach by Employee.

 

17.                                 Counterparts.  This Agreement may be executed in multiple
counterparts all of which shall constitute but one Agreement.

 

18.                               Entire
Agreement.  This instrument contains
the entire agreement of the parties.  It
may not be changed orally but only by an agreement in writing signed by the
party against whom the enforcement of any waiver, change, modification,
extension or discharge is sought.

 

19.                               Binding
Effect.  This Agreement shall be
binding upon and inure to the benefit of the parties, their heirs, legal
representatives, successors and assigns.

 

20.                               Governing
Law.  This Agreement shall be
construed in accordance with and governed by the laws of the State of South
Dakota.

 

21.                               Severability.  The parties agree that if any part, term,
paragraph or provision of this Agreement is in any manner held to be invalid,
illegal, void or in any manner unenforceable, or to be in conflict with any law
of the State of South Dakota, then the validity of the remaining portions or
provisions of this Agreement shall not be affected, and such part, term,
paragraph or provision shall be construed and enforced in an manner designed to
effectuate the intent expressed in this Agreement to the maximum extent
permitted by law.

 

6

 

IN WITNESS WHEREOF, this Employment Agreement has been signed on the
date  and year first above written.

 

	
   

  	
  EMPLOYER:

  
	
   

  	
   

  
	
   

  	
  DAKOTA ETHANOL, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Brian
  Woldt

  	
   

  
	
   

  	
    Its

  	
  Chairman

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Scott
  A. Mundt

  	
   

  
	
   

  	
  Scott A.
  Mundt

  
					

 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}]]