Document:

<PAGE>

                                                                   Exhibit 10.28

                           SOUTHWEST PIPELINE PROJECT
                           RAW WATER SERVICE CONTRACT

Contract No.:    RW-6
Customer Entity: RED TRAIL ENERGY LLC

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                          <C>
I.   PARTIES

II.  INTRODUCTION

III. DEFINITIONS

IV.  TERM OF CONTRACT

     1.   EFFECTIVE CONTRACT

     2.   RENEWAL

V.   RAW WATER SERVICE: DELIVERY OF RAW WATER

     1.   QUALITY OF RAW WATER

     1.A. INTENDED USE

     2.   TYPE OF SERVICE

     3.   QUANTITY OF RAW WATER AND FLOW RATE

     4.   POINT OF DELIVERY AND PRESSURE

     4.A. CUSTOMERS DISTRIBUTION SYSTEM

     5.   ADDITIONAL RAW WATER

     6.   WATER SHORTAGES

     7.   CURTAILMENT FOR MAINTENANCE PURPOSES

     8.   MEASUREMENT OF RAW WATER

     9.   RESPONSIBILITY FOR USE OF RAW WATER

VI.  RAW WATER SERVICE: RAW WATER RATES AND PAYMENT FOR RAW WATER

     1.   NOTICE OF CONNECTION AND BEGINNING OF RAW WATER SERVICE PAYMENTS

     1.A. PREPAID PAYMENT

     2.   PAYMENT FOR RAW WATER SERVICE

     3.   MINIMUM ANNUAL RAW WATER PURCHASE: PAYMENTS

     4.   PAYMENT FOR OPERATION, MAINTENANCE, AND REPLACEMENT (OM&R)

     5.   PAYMENT FOR CAPITAL COSTS

     6.   BILLING PROCEDURES

     7.   WHEN PAYMENTS ARE DUE

     8.   DELINQUENT PAYMENTS AND DEFAULT SUSPENSION OF RAW WATER SERVICE

     9.   PENALTY FOR LATE PAYMENT

     10.  REFUSAL OF RAW WATER
</TABLE>

Contract No. : RW-6                                                 Page 1 of 14
Red Trail Energy LLC

<PAGE>

<TABLE>
<S>                                                                          <C>
VII. GENERAL PROVISIONS

     1.   RULES AND REGULATIONS

     2.   REMEDIES NOT EXCLUSIVE

     3.   AMENDMENTS

     4.   WAIVER OF RIGHTS

     5.   ASSIGNMENTS

     6.   UNALLOCATED CAPACITY

VIII. TERMINATION

     1.   BY MUTUAL AGREEMENT

     2.   FOR MISUSE

IX.  MERGER CLAUSE
</TABLE>

                                                                    Page 2 of 14

<PAGE>

                                   I. PARTIES

This contract is by and between the Southwest Water Authority, a governmental
entity created and existing pursuant to North Dakota Century Code chapter
61-24.5-03, hereinafter referred to as the Authority, the State Water
Commission, hereinafter referred to as the Commission; and Red Trail Energy LLC
hereinafter referred to as the Customer.

                                II. INTRODUCTION

1.   Under the authority of the Act of the North Dakota Legislative Assembly of
     1981 (1981 N.D. Sess. Laws 613, Section 3), the North Dakota State Water
     Commission (Commission) was directed to develop preliminary designs for a
     water supply pipeline facility for supplementation of the water resources
     of Dickinson and the area of North Dakota south and west of the Missouri
     River for multiple purpose, including domestic, industrial, rural water
     district, and municipal customers. This water pipeline facility is known as
     the Southwest Pipeline Project.

2.   The Southwest Pipeline Project was authorized by the North Dakota
     Legislative Assembly, substantially in accordance with Plan B of the
     Preliminary Engineering Design Final Report for the Southwest Pipeline
     Project, State Water Commission Project No. 1736, dated September 1982.

3.   The Southwest Pipeline Project was amended by the North Dakota Legislative
     Assembly in 1989 (Section 61-24.3-06-1, NDCC), from a water supply project
     to an integrated water supply, water distribution and water delivery
     project for cities and individual customers.

4.   The Legislative Assembly created the Southwest Water Authority in 1991
     (Chapter 61-24.5, NDCC), for the purpose of providing local operation,
     maintenance, and management of the Southwest Pipeline Project.

5.   In 1995, the State Water Commission entered into an agreement with the
     Authority whereby the completed portions of the Southwest Pipeline Project
     were transferred to the Authority for operation, maintenance and
     management.

6.   The Southwest Pipeline Project was amended by the North Dakota Legislative
     Assembly in 2005 (Section 61-24.3-07, NDCC), to allow expanded industrial
     use.

7.   Under North Dakota Century Code chapter 61-24.5-09 the Authority may enter
     into water service contracts for the delivery and distribution of water,
     and for the collection of rates, charges, and revenues from such delivery
     of water.

8.   The Customer desires to enter into a water service contract with the
     Authority, pursuant to the laws of the State of North Dakota, for a water
     supply from the Southwest Pipeline Project for use by the Customer, for
     which the Customer will make payments to the Authority at the rates and
     pursuant to the terms and conditions set forth in this contract.

                                                                    Page 3 of 14

<PAGE>

                                 III. DEFINITIONS

The following terms and definitions apply to this contract unless otherwise
specified:

1.   "Additional raw water" means raw water purchased by the "Customer" in
     addition to its minimum annual raw water purchase.

2.   "Base consumer price index" means the consumer price index, as defined
     herein, as of January 1, 1995, adjusted to account for any changes in base.

3.   "Capital costs" means all costs incurred by the Commissions which are
     properly chargeable, in accordance with generally accepted accounting
     practices, to the construction of and the furnishing of equipment for the
     "Project," including the costs of surveys, engineering studies, exploratory
     work, designs, preparations of construction plans and specifications,
     acquisitions, acquisitions of lands, easements and rights-of-way,
     relocation work, and related essential legal, administrative and financial
     work.

4.   "Commission" means the State Water Commission.

5.   "Consumer price index: (CPI)" means the consumer price index for all urban
     consumers, which is a monthly statistical measure of the average change in
     prices in a fixed market basket of goods and services. The consumer price
     index is base on the prices of food, clothing, shelter, fuel, drugs,
     transportation fares, doctors' and dentists' fees, and other goods and
     services that people buy for day-to-day living.

6.   "Domestic use" means the use of water by an individual, or by a family unit
     or household, for personal needs and for drinking, washing, sanitary, and
     culinary uses.

7.   "Manager" means the person employed by the Authority to be in charge of and
     supervise the operation and maintenance of the Project.

8.   "Maximum flow rate" means the maximum number of gallons of raw water which
     may be delivered through the Project by the Authority to a raw water
     customer entity during any one minute time period.

9.   "Minimum annual raw water purchase" means the minimum gallons of raw water
     which a raw water customer entity agrees to purchase and pay for during a
     year.

10.  "Operation, maintenance, and replacement costs" means all operation costs
     incurred by the Authority, including all energy costs incurred by the
     Authority for pumping raw water through the Project, for the maintenance
     and administration of the Project, and for any amounts that the State Water
     Commission determines are necessary to establish reserve funds to meet
     anticipated replacement costs and extraordinary maintenance of Project
     works. Operation, maintenance and replacement costs shall be referred to
     in this contract as OM&R costs.

                                                                    Page 4 of 14
<PAGE>

11.  "Potable water" means water fit for human consumption.

12.  "Project" means the Southwest Pipeline Project, State Water Commission
     Project No. 1736.

13.  "Raw water" means untreated water not suitable for domestic use.

14.  "Raw water rate for capital costs" means the rate per each 1,000 gallons of
     raw water to be paid by raw water customer entities for capital costs of
     the Project.

15.  "Raw water customer entities" means those persons, municipalities, rural
     water cooperatives, corporations, and other entities which have entered
     into and executed raw water service contracts with the Authority for the
     purchase of raw water from the Project.

16.  "Unallocated capacity" means the capacity of the raw water which is not
     allocated and contractually committed to individual raw and/or potable
     water customers by virtue of raw and/or potable water service contracts.

17.  "Year" means the period from January 1 through December 31, both dates
     inclusive.

                              IV. TERM OF CONTRACT

1.   Effective Date.

     This contract is effective for ten (10) years from the date of connection
     by the Customer unless terminated sooner by mutual agreement of the
     parties.

2.   Renewal.

     Under terms and conditions mutually agreeable to the parties to this
     contract, renewals of this contract may be made for successive periods not
     to exceed ten (10) years.

                   V. RAW WATER SERVICE: DELIVERY OF RAW WATER

1.   Quality of Raw Water.

     All water received pursuant to this contract, or any renewal, extension, or
     modification thereof, shall be raw untreated water which does not meet
     water quality standards of the North Dakota Department of Health and
     Consolidated Laboratories for domestic use.

1.A. Intended Use.

     Processing ethanol and by products produced therefrom.

                                                                    Page 5 of 14

<PAGE>

2.   Type of Service.

     Constant flow not to exceed 600 gpm. Customer shall provide adequate on
     site storage to meet their processing needs.

3.   Quantity of Raw Water and Flow Rate.

     Minimum annual water purchase. The Customer agrees to purchase and make
     payment for not less than 200 million gallons per year (minimum annual raw
     water purchase) during the entire term of this contract (380 gpm). The
     Customer may purchase and make payment for water in excess of this amount
     as long as the Project's ability to meet other demands is not impaired.

     If, in the first year of service under this contract actual use begins
     later than January 1, the minimum annual raw water purchase shall be
     reduced by 16.7 million gallons for each full calendar month in which
     service was not provided. The full minimum annual raw water will be
     required in all subsequent years.

4.   Point of Delivery and Pressure.

     The Authority shall furnish raw water to the Customer at a pressure range
     of 40 psi to 55 psi at a point located at the Southwest Pipeline Project
     Contract 2-3A at the 30" ductile iron pipeline ten (10) inch turnout at
     Station 63+46 located in the NE 1/4 of Section 6, Township 139 North, Range
     92 West. If greater pressure than the range specified herein at the point
     of connection is required by the Customer, the cost of providing such
     greater pressure shall be borne by the Customer.

4.A. Customers Distribution System.

     The customers distribution system includes all works (service line, meter
     equipment, storage, appurtenances, etc.) extending from the point of
     delivery to the customers destination. Customer is responsible for all
     costs associated with installation of such works including O&M
     responsibilities for a minimum period of four (4) years after such works
     are put into service. At that time customer may have the option of
     transferring ownership and O&M responsibilities for all such work up to and
     including the meter equipment to the Commission. The customers remaining
     distribution system beyond the meter equipment including storage facilities
     shall remain the customers responsibility.

5.   Additional Raw Water.

     In addition to the minimum annual water purchase specified in Section V,
     subsection 3 of this contract, the Customer may purchase additional raw
     water. The Authority shall not be obligated in any way to supply raw water
     at a "greater" flow rate than the maximum flow rater specified in this
     contract. If the Customer desires to secure a contractual right to a
     greater maximum flow rate than specified in this contract, must be amended
     to provide a greater minimum annual raw water purchase, subject to Section

                                                                    Page 6 of 14

<PAGE>

     VII, subsection 3 and 6.

6.   Water Shortages.

     a.   No liability for shortages. No liability shall against the Authority,
          the Commission, or any of its officers, agents, or employees for any
          damage or inconvenience, direct or indirect, arising from any water
          shortages or other interruptions in raw water deliveries resulting
          from accident to or failure of Project works and facilities, whether
          or not attributable to negligence of officers, agents, or employees of
          the Authority, or from any other cause. The contractual obligations of
          the Customer under this contract shall not be reduced or altered by
          reason of such shortages or interruptions.

     b.   Interruption of service during water shortages. The Authority has the
          right during times of water shortages, from any cause, to interrupt
          raw water service to serve customer with higher priority as referenced
          in Section VII, subsection 6.

7.   Curtailment for Maintenance Purposes.

     The Authority may temporarily discontinue or reduce the amount of raw water
     to be furnished for the purpose of maintaining, repairing, replacing,
     investigating or inspecting any of the facilities and works necessary for
     the furnishing of raw water. To the extent possible, the Authority will
     give reasonable notice in advance of any temporary discontinuance or
     reduction. No advance notice is required in case of an emergency. In no
     event shall any liability accrue against the Authority, the Commission, or
     any of its officers, agents, or employees for any damage or inconvenience
     direct or indirect, arising from such temporary discontinuance or reduction
     for maintenance and repair purposes.

8.   Measurement of Raw Water.

     The Customer shall furnish, install, operate and maintain, at its own
     expense, at the point of delivery, the necessary metering equipment and
     required devices of standard type for properly measuring the quantity of
     raw water delivered to the Customer. The Customer shall pay all costs of
     this equipment, easements, engineering services, contract administration
     and installation. Pipeline installations including all appurtenances will
     be in accordance with Southwest Pipeline Project specifications. The
     Authority, accompanied by an authorized Customer representative, shall be
     permitted access at all times to the master meter equipment, appurtenances,
     and associated equipment. The Customer will designate authorized
     representatives that can be made available to accompany the Authority
     representative upon short notice (four hours or less).

     If the Customer, in good faith, believes the measurement of raw water
     delivered to be in error, they shall present a claim of error, in writing,
     to the Manager/CEO, either in person or by certified mail to the address of
     the manager. A claim of error presented after a claim has become delinquent
     shall not prevent discontinuance of service as provided in this contract.
     The Customer agrees to continue to make payments for raw water service

                                                                    Page 7 of 14

<PAGE>

     after a claim of error has been presented, however, the payment will be
     under protest and will not prejudice the Customer's claim of error.

     Upon presenting its claim of error and payment for the actual cost of
     calibration to the Authority, the Authority will calibrate the meter. If
     the meter is found to over register by more than two percent (2%) of the
     correct volume, the Customers payment for the cost of calibration will be
     refunded and the meter readings for that meter shall be corrected for the
     twelve (12) months previous to the calibration by the percentage of
     inaccuracy found in such tests. The amount of any overpayment as a result
     of over-registration shall be applied first to any delinquent payments for
     raw water service, and at the option of the Customer, any remaining amounts
     shall be refunded or credited upon future payments for raw water service in
     the ensuing years.

     If any meter fails to register for any period, the amount of raw water
     delivered during such period shall be deemed to be the amount of raw water
     delivered in the corresponding period immediately prior to the failure,
     unless the Authority and the Customer shall agree upon a different amount.
     The Customer and the Authority shall have access to the meter at all
     reasonable times for the purpose of verifying its readings.

9.   Responsibility of Use of Raw Water.

     The Customer shall be responsible for the control and use of all raw water
     beyond the point of connection and all services, maintenance, and repair of
     the Customer's distribution system. The Customer shall indemnify and hold
     the Authority, the Commission, its officers, agents, employees, and
     successors and assigns harmless from every claim for damage to persons or
     property, direct or indirect, and of whatever nature, arising out of or
     connected with the control, distribution, and use of raw water delivered
     under this contract, and the operation, maintenance, and replacement of the
     Customer's distribution system. The Customer's distribution system includes
     all works extending from the point of connection to the Customer's
     destination.

VI. RAW WATER SERVICE: RAW WATER RATES AND PAYMENT FOR RAW WATER

The Customer agrees to pay for raw water and raw water service in accordance
with the following terms and conditions:

1.   Notice of Connection and Beginning of Raw Water Service Payments.

     Upon approval, the Authority shall notify the Customer in writing of the
     date when the Customer may connect to the Project Transmission System. The
     Customer will make monthly payments for water and water service, beginning
     on the connection date specified in the notice.

                                                                    Page 8 of 14

<PAGE>

1.A. Prepaid Payment.

     Prior to connection the Customer will deposit with the Authority a
     prepayment of $80,000. This deposit will be held in escrow until such time
     (minimum of three years) as it is determined that the Customer has
     established a consistent payment record. The Customer may be allowed to
     apply $40,000 toward its water bill at such time, however, the Authority
     may continue to retain $40,000 in escrow until end of this ten year
     contract. Upon renewal of the contract, the Customer may request the
     Authority to apply the remaining $40,000 or any part thereof to their water
     bill. Accrued interest, if any, will remain with the Authority.

2.   Payment for Raw Water Service.

     The Customer's water service payment for each month shall equal the sum of
     the following:

     a.   The Customer's proportionate share of the operation, maintenance, and
          replacement costs excluding the cost of treatment; plus

     b.   The Customer's payment for capital costs.

3.   Minimum Annual Raw Water Purchase; Payments.

     The Customer will pay for the minimum annual raw water purchase in
     accordance with the rates and terms specified in this contract, regardless
     of whether or not the Customer actually uses the minimum annual raw water
     purchase.

     If, by December, 31 of any year, the Customer has not used the minimum
     annual raw water purchase, payment for the difference between the minimum
     annual raw water purchase and the amount used shall be due.

4.   Payment for Operation, Maintenance, and Replacement (OM&R).

     The Customer will make monthly payments to the Authority for its share of
     the OM&R for the Project. The amount of such payment will be determined as
     follows:

     a.   Prior to February 1 of each year, the Authority shall establish and
          adopt a budget for OM&R for the Project for the immediate ensuing
          year. The Authority shall have the authority to include in such budget
          for each year an amount to be accumulated and maintained in a reserve
          fund for the purpose of replacement and for extraordinary maintenance
          of project works. The reserve fund shall be accumulated and maintained
          in an amount to be determined by the State Water Commission. The
          reserve fund shall be deposited and maintained in a separate account
          in accordance with the laws of the State of North Dakota.

                                                                    Page 9 of 14

<PAGE>

     b.   The Authority will then estimate the total annual water sales for the
          immediate ensuing year, and calculate the "estimated water rate for
          operation, maintenance, and replacement" for the Project by dividing
          the amount of the estimated budget for OM&R for the immediate ensuing
          year by the estimated total annual water sales for such ensuing year.

     c.   The monthly payment to be made by the Customer to the Authority for
          OM&R shall be determined by multiplying the amount of water actually
          delivered to the Customer for each month times the estimated water
          rate for OM&R, excluding the cost of treatment.

     d.   At the end of each year, the Authority shall prepare a statement of
          the actual cost for OM&R for that same year.

     e.   The Authority will then determine the adjustment to be applied to the
          Customer's payment for OM&R for the previous year. The adjustment
          shall be calculated by first dividing the amount of water actually
          delivered to the Customer by the Authority during the previous year by
          the previous year's total annual water sales to determine the
          Customer's proportionate share (fraction) of the OM&R costs for the
          previous year. This fraction shall then be multiplied times the actual
          total cost for OM&R for the previous year, which shall be the amount
          of the Customer's proportionate share of OM&R costs for the previous
          year. The Authority shall then subtract the total amount of the
          Customer's proportionate share of OM&R costs for the previous year
          from the total amount actually paid by the Customer for OM&R during
          the previous year, which shall be the adjustment to be applied to the
          Customer's water service payments for the next ensuing year.

          If the Customer's proportionate share of OM&R costs for the previous
          year is more than the total amount actually paid by the Customer
          during the previous year for OM&R, the difference shall be owed by the
          Customer to the Authority. The amount due and owing to the Authority
          by the Customer as a result of such adjustment shall be applied to and
          added to the Customer's monthly payments for water for the next four
          (4) months of the immediate ensuing year in equal monthly
          installments.

          If the Customer's proportionate share of OM&R costs for the previous
          year is less than the total amount actually paid by the User during
          the previous delinquent payments of the Customer for water service,
          and the remaining sum, if any, shall be credited against the
          Customer's monthly payments for water service for the next four (4)
          months of the immediate ensuing year in equal monthly credits.

5.   Payment for Capital Costs.

     The Customer will pay to the Authority a water rate for capital costs of
     the Project. The revenues from this water rate for capital costs shall be
     paid by the Authority as directed by the Legislative Assembly.

                                                                   Page 10 of 14

<PAGE>

     a.   Base water rate for capital costs. The base rate for capital costs for
          constant flow shall be seventy-two cents ($0.72) per each one thousand
          (1,000) gallons of water.

     b.   Adjustment of water rate for capital costs. The State Water Commission
          shall have the authority to adjust the water rate for capital costs
          annually in accordance with the increase or the decrease in the
          Consumer Price Index(CPI). The formula for determining the adjustment
          to the water rate for capital costs for each year is as follows: The
          CPI for September 1 of each year shall be divided by the base CPI of
          four hundred forty-eight and four tenths (448.4). The result of this
          calculation shall be reduced by one (1), and then multiplied by the
          base water rate for capital costs. The product of this formula is the
          adjustment to the water rate for capital costs, and shall be added to
          the base water rate for capital costs for the next year.
          Notwithstanding the foregoing basis for adjusting the water rate for
          capital costs, the Commission shall have the authority to decrease the
          adjustment to the water rate for capital costs, as it deems
          appropriate and necessary, after considering data on changes to the
          medial incomes of project water users, substantial increases in OM&R
          costs, or other factors.

     c.   Monthly water payment for capital costs. The amount of payment each
          month by the Customer to the Authority for capital costs shall be
          calculated by multiplying the water rate for capital costs times the
          amount of water actually delivered to the Customer each month.

6.   Billing Procedures.

     The metering equipment at the point of connection shall be read monthly,
     and the Authority will furnish, at the address shown on the signature page
     of this contract, not later than the first (1st) day of month, an itemized
     statement of the payment due for raw water service for the preceding month.

7.   When Payments Are Due.

     All payments for raw water service under this contract for OM&R, and for
     capital costs, shall be made no later than the fifteenth (15th) day of each
     month. Payments not made by such date shall be considered delinquent and in
     default.

8.   Delinquent Payments and Default: Suspension of Raw Water Service.

     The Customer shall meet its obligation under this contract, and will make
     in full, all payments required by this contract on or before the date such
     payments become due. In the event of default, the Authority, in its
     discretion, may suspend delivery of water through the project during the
     period of default. During any period of default, the Customer remains
     obligated to make all payments required under this contract. Any action of
     the Authority shall not limit or waive any remedy provided by the contract
     or by law for the recovery of money due or which may become due under this
     contract.

                                                                   Page 11 of 14

<PAGE>

9.   Penalty for Late Payment.

     A penalty of one percent (1%) per month will be imposed upon all delinquent
     payments. Penalties will not be charged against any adjustment made
     pursuant to Section V, subsection 8.

10.  Refusal of Raw Water.

     The Customer's failure or refusal to accept delivery of water to which it
     is entitled under this contract will in no way relieve the Customer's
     obligation to make payments in accordance with this contract.

                            VII. GENERAL PROVISIONS

1.   Rules and Regulations.

     The Authority has the authority to develop and adopt such rules and
     regulations as it deems appropriate to carry out this contract and to
     govern the administration of this contract. Such rules and regulations
     shall not be inconsistent with this contract. The Customer agrees to comply
     with such rules and regulations.

2.   Remedies Not Exclusive

     The use of any remedy specified herein for the enforcement of this contract
     is not exclusive and does not prohibit the use of or limit the application
     of, any other remedy available by law.

3.   Amendments.

     This contract may be amended any time by mutual agreement of the parties in
     writing, except insofar as any proposed amendments are in any way contrary
     to applicable law.

4.   Waiver of Rights.

     Any waiver at any time by either party of its rights with respect to a
     default or any other matter arising in connection with this contract, will
     not be deemed to be a waiver with respect to any other default or matter.

5.   Assignment

     The provisions of this contract are binding upon the successors and assigns
     of the respective parties. Any assignment or transfer will not be valid
     unless approved by the Authority and Commission. The Authority and the
     Commission shall not approve any assignment or transfer to any raw water
     customer unless the water customer has the necessary ability to satisfy the
     obligations of this contract.

                                                                   Page 12 of 14

<PAGE>

6.   Unallocated Capacity.

     The Customer understands and agrees that the Authority and the Commission
     will give preference to treated water for municipal, domestic, and rural
     water needs before executing raw water service contracts or allowing
     additional raw water purchases for the delivery of unallocated capacity to
     water customers for other uses.

                                VIII. TERMINATION

1.   By Mutual Agreement.

     This contract may be terminated by mutual agreement of the parties.

2.   For Misuse.

     This contract may be terminated upon discovery that the Customer has
     utilized raw water for domestic use or a use inconsistent with the terms of
     this contract. The Authority will be relieved of all obligations under this
     contract, and the Customer will be required to immediately disconnect his
     distribution system from the connection point.

                               IX. MERGER CLAUSE

This agreement constitutes the entire agreement between the parties. No waiver,
consent, modification, or a change of terms of this agreement shall bind either
party unless in writing, signed by the parties, and attached herein. Such
waiver, consent, modification, or change, if made, is effective only in the
specific instance and for the specific purpose given. There are no
understandings, agreements, or representations, oral or written, not specified
herein regarding this agreement.

                                                                   Page 13 of 14

<PAGE>

STATE WATER COMMISSION                  ATTEST:

By: /s/ Dale Frink                      By: /s/ Todd Sando
    ---------------------------------       ------------------------------------
Dale Frink, Chief Engineer and          Todd Sando, Assistant State Engineer
Secretary North Dakota State Water      North Dakota State Water Commission
Commission

Date 3-31-2006

SOUTHWEST WATER AUTHORITY               ATTEST:

By: /s/ Loren Myran                     By: /s/ Leonard Jacobs
    ---------------------------------       ------------------------------------
Loren Myran, Chairman                   Leonard Jacobs, Secretary
Southwest Water Authority               Southwest Water Authority

Date 4-3-06

RED TRAIL ENERGY, LLC                   ATTEST:

By: /s/ Ambrose R. Hoff                 By: /s/ Mick A. Miller
    ---------------------------------       ------------------------------------
Title: President                        Title: GENERAL MANAGER
Red Trail Energy, LLC                   Red Trail Energy, LLC

Date 3-8-06

Contact No. : RW-6                                                 Page 14 of 14
Red Trail Energy LLCexv10w1

 

EXHIBIT 10.1

TALEO CORPORATION

2004 STOCK PLAN

RESTRICTED STOCK AGREEMENT

Grant # ____________

NOTICE OF GRANT

     Taleo Corporation (the “Company”) hereby awards you, [NAME OF EMPLOYEE] (the “Grantee”),
10,000 shares of restricted Common Stock of the Company (the “Restricted Stock”) under the
Company’s 2004 Stock Plan (the “Plan”). The date of this Restricted Stock Agreement (the
“Agreement”) is [MONTH/DAY], [YEAR] (the “Grant Date”). Subject to the provisions of Appendix A
(attached hereto), the principal features of this grant are as follows:

Total Number of Shares of Restricted Stock:

	 	 	 	 	 
	Scheduled Vesting Dates:	 	Number of Shares:
	Grant Date (the “Vesting Commencement Date”)

	 	 	0	 

 

			
	*	 	Except as otherwise provided in Appendix A, Grantee will not vest in the Restricted Stock unless
he or she is A Service Provider through the applicable vesting date(s).

     Your signature below indicates your agreement to receive the Shares subject to this Award and
your agreement and understanding that this Award is subject to all of the terms and conditions
contained in the Plan and in this Agreement, which include this Notice of Grant and Appendix A.
For example, important additional information on vesting and forfeiture of the Shares covered by
this grant is contained in Paragraphs 3 through 5 of Appendix A. PLEASE BE SURE TO READ ALL OF
APPENDIX A, WHICH CONTAINS THE SPECIFIC TERMS AND CONDITIONS OF THIS AGREEMENT.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	TALEO CORPORATION	 	 	 	GRANTEE
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	[NAME]	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Title:	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	Date:	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 

 

 

APPENDIX A

TERMS AND CONDITIONS OF RESTRICTED STOCK AGREEMENT

     1. Award. The Company hereby awards to the Grantee, as a separate incentive in
connection with his employment and not in lieu of any salary or other compensation for his or her
services, the number of Shares of Restricted Stock indicated on the first page of this Agreement,
subject to all of the terms and conditions in this Agreement and the Plan. By accepting this award
of Restricted Stock, the par value of $0.00001 for each Share of Restricted Stock will be deemed
paid by the Grantee by past services rendered, and will be subject to the appropriate tax
withholdings.

     2. Shares Held in Escrow. Unless and until the Shares of Restricted Stock shall have
vested in the manner set forth in Paragraphs 3 or 4, such Shares shall be issued in the name of the
Grantee and held by the Secretary of the Company (or its designee) as escrow agent (the “Escrow
Agent”), and shall not be sold, transferred or otherwise disposed of, and shall not be pledged or
otherwise hypothecated. The Company may determine to issue the Shares in book entry form and/or
may instruct the transfer agent for its Common Stock to place a legend on the certificates
representing the Restricted Stock or otherwise note its records the restrictions on transfer set
forth in this Agreement and the Plan. The certificate or certificates representing such Shares
shall not be delivered by the Escrow Agent to the Grantee unless and until the Shares have vested
and all other terms and conditions in this Agreement have been satisfied.

     3. Vesting Schedule/Period of Restriction. Subject to Paragraphs 4 and 5 of this
Agreement, the Shares of Restricted Stock awarded by this Agreement shall vest in accordance with
the vesting provisions set forth in the Notice of Grant, subject to Section 13 of the Plan. Shares
of Restricted Stock shall not vest in the Grantee in accordance with any of the provisions of this
Agreement unless the Grantee shall have remained a Service Provider from the Vesting Commencement
Date through the applicable vesting date.

     4. Administrator Discretion. The Administrator, in its discretion, may accelerate the
vesting of the balance, or some lesser portion of the balance, of the unvested Shares of Restricted
Stock at any time, subject to the terms of the Plan. If so accelerated, such Shares will be
considered as having vested as of the date specified by the Administrator.

     5. Forfeiture. Notwithstanding any contrary provision of this Agreement, the balance
of the Shares of Restricted Stock that have not vested at the time the Grantee ceases to be a
Service Provider will be forfeited and automatically transferred to and reacquired by the Company
at no cost to the Company. The Grantee shall not be entitled to a refund of any of the price paid
for the Shares of Restricted Stock forfeited to the Company pursuant to this paragraph 5. [The
Grantee hereby appoints the Escrow Agent with full power of substitution, as the Grantee’s true and
lawful attorney-in-fact with irrevocable power and authority in the name and on behalf of the
Grantee to take any action and execute all documents and instruments, including, without
limitation, stock powers which may be necessary to transfer the certificate or certificates
evidencing such unvested Shares to the Company upon such cessation of the Service Provider
relationship.

     6. Death of Grantee. Any distribution or delivery to be made to the Grantee under
this Agreement will, if the Grantee is then deceased, be made to the administrator or executor of
the Grantee’s estate. Any such administrator or executor must furnish the Company with (a) written
notice of his or her status as transferee, (b) evidence satisfactory to the Company to establish
the validity of the transfer and compliance with any laws or regulations pertaining to said
transfer, and (c) written acceptance of the terms and conditions of this Award as set forth in this
Agreement.

     7. Withholding of Taxes. The Company (or the employing Parent or Subsidiary) will
withhold a portion of the Shares of Restricted Stock that have an aggregate market value sufficient
to pay the minimum federal, state and local income, employment and any other applicable taxes
required to withheld by the Company (or the employing Parent or Subsidiary) with respect to the
Shares. No fractional Shares will be withheld or issued pursuant to the grant of the Restricted
Stock Award and the issuance of Shares thereunder; unless determined otherwise by the Company, any
additional withholding necessary for this reason will be done by the Company through the Grantee’s
paycheck or

 

 

through direct payment by the Grantee to the Company in the form of cash, check or other cash
equivalent. The Company (or the employing Parent or Subsidiary) may instead, in its discretion,
require the Grantee to pay an amount necessary to pay the applicable taxes directly to the Company
in the form of cash, check or other cash equivalent, and/or may withhold an amount necessary to pay
the applicable taxes from the Grantee’s paycheck, in each case with no withholding of Shares. In
the event the withholding requirements are not satisfied through the withholding of Shares (or,
through the Grantee’s paycheck or direct payment, as indicated above), no Restricted Stock will be
granted to the Grantee (or his or her estate) unless and until satisfactory arrangements (as
determined by the Administrator) have been made by the Grantee with respect to the payment of any
income and other taxes which the Company determines must be withheld or collected with respect to
such Shares. In addition and to the maximum extent permitted by law, the Company (or the employing
Parent or Subsidiary) has the right to retain without notice from salary or other amounts payable
to the Grantee, cash having a sufficient value to satisfy any tax withholding obligations that
cannot be satisfied through the withholding of otherwise deliverable Shares. By accepting this
Award, the Grantee expressly consents to the withholding of Shares and to any cash or Share
withholding as provided for in this paragraph 7. All income and other taxes related to the
Restricted Stock Award and any Shares delivered in payment thereof are the sole responsibility of
the Grantee.

     8. Rights as Stockholder. Neither the Grantee nor any person claiming under or
through the Grantee will have any of the rights or privileges of a stockholder of the Company in
respect of any Shares deliverable hereunder unless and until certificates representing such Shares
(which may be in book entry form) have been issued, recorded on the records of the Company or its
transfer agents or registrars, and delivered to the Grantee or the Escrow Agent (including through
electronic delivery to a brokerage account). After such issuance, recordation and delivery, the
Grantee will have all the rights of a stockholder of the Company with respect to voting such Shares
and receipt of dividends and distributions on such Shares.

     9. No Effect on Employment. The Grantee’s employment with the Company and any Parent
or Subsidiary is on an at-will basis only, subject to the provisions of Applicable Law.
Accordingly, subject to any written, express employment contract with the Grantee, nothing in this
Agreement or the Plan shall confer upon the Grantee any right to continue to be employed by the
Company or any Parent or Subsidiary or shall interfere with or restrict in any way the rights of
the Company or the employing Parent or Subsidiary, which are hereby expressly reserved, to
terminate the employment of the Grantee at any time for any reason whatsoever, with or without good
cause. Such reservation of rights can be modified only in an express written contract executed by
a duly authorized officer of the Company or the Parent or Subsidiary employing the Grantee.

     10. Address for Notices. Any notice to be given to the Company under the terms of
this Agreement will be addressed to the Company, in care of its Secretary, at Taleo Corporation,
575 Market Street, Eighth Floor, San Francisco, California 94105, or at such other address as the
Company may hereafter designate in writing.

     11. Grant is Not Transferable. Except to the limited extent provided in Paragraph 6
above, the unvested Shares subject to this grant and the rights and privileges conferred hereby
will not be transferred, assigned, pledged or hypothecated in any way (whether by operation of law
or otherwise) and will not be subject to sale under execution, attachment or similar process. Upon
any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of any unvested Shares
subject to this grant, or any right or privilege conferred hereby, or upon any attempted sale under
any execution, attachment or similar process, this grant and the rights and privileges conferred
hereby immediately will become null and void.

     12. Binding Agreement. Subject to the limitation on the transferability of this grant
contained herein, this Agreement will be binding upon and inure to the benefit of the heirs,
legatees, legal representatives, successors and assigns of the parties hereto.

     13. Additional Conditions to Issuance of Certificates for Shares and Release from
Escrow. The Company shall not be required to issue any certificate or certificates for Shares
hereunder or release such Shares from the escrow established pursuant to Paragraph 2 prior to
fulfillment of all the following conditions: (a) the admission of such Shares to listing on all
stock exchanges on which such class of stock is then listed; (b) the completion of any registration
or other qualification of such Shares under any state or federal law or under the rulings or
regulations of the Securities and Exchange Commission or any other governmental regulatory body,
which the Administrator shall, in its absolute discretion, deem necessary or advisable; (c) the
obtaining of any approval or other clearance from any state or federal

 

 

governmental agency, which the Administrator shall, in its absolute discretion, determine to
be necessary or advisable; and (d) the lapse of such reasonable period of time following the date
of grant of the Restricted Stock as the Administrator may establish from time to time for reasons
of administrative convenience. The Administrator shall, in its absolute discretion, determine when
such conditions have been fulfilled.

     14. Plan Governs. This Agreement is subject to all terms and provisions of the Plan.
In the event of a conflict between one or more provisions of this Agreement and one or more
provisions of the Plan, the provisions of the Plan will govern. Capitalized terms used and not
defined in this Agreement will have the meaning set forth in the Plan.

     15. Administrator Authority. The Administrator will have the power to interpret the
Plan and this Agreement and to adopt such rules for the administration, interpretation and
application of the Plan as are consistent therewith and to interpret or revoke any such rules
(including, but not limited to, the determination of whether or not any Shares of Restricted Stock
have vested). All actions taken and all interpretations and determinations made by the
Administrator in good faith will be final and binding upon the Grantee, the Company and all other
interested persons. No person acting as or on behalf of the Administrator will be personally
liable for any action, determination or interpretation made in good faith with respect to the Plan
or this Agreement.

     16. Captions. Captions provided herein are for convenience only and are not to serve
as a basis for interpretation or construction of this Agreement.

     17. Agreement Severable. In the event that any provision in this Agreement will be
held invalid or unenforceable, such provision will be severable from, and such invalidity or
unenforceability will not be construed to have any effect on, the remaining provisions of this
Agreement.

     18. Entire Agreement. This Agreement constitutes the entire understanding of the
parties on the subjects covered. The Grantee expressly warrants that he or she is not executing
this Agreement in reliance on any promises, representations, or inducements other than those
contained herein.

     19. Modifications to the Agreement. Modifications to this Agreement or the Plan can
be made only in an express written contract executed by a duly authorized officer of the Company.

     20. Amendment, Suspension or Termination of the Plan. By accepting this award, the
Grantee expressly warrants that he or she has received a Restricted Stock Award under the Plan, and
has received, read and understood a description of the Plan. The Grantee understands that the Plan
is discretionary in nature and may be modified, suspended or terminated by the Company at any time.

     21. Notice of Governing Law. This option shall be governed by, and construed in
accordance with, the laws of the State of California without regard to principles of conflict of
laws.

     22. Labor Law. By accepting this Restricted Stock Award, the Grantee acknowledges
that: (a) the grant of this Award is a one-time benefit which does not create any contractual or
other right to receive future grants of Restricted Stock, or benefits in lieu of Restricted Stock;
(b) all determinations with respect to any future grants, including, but not limited to, the times
when the Restricted Stock shall be granted, the number of Shares of Restricted Stock subject to
each Award and the time or times when the Restricted Stock shall vest, will be at the sole
discretion of the Company; (c) the Grantee’s participation in the Plan is voluntary; (d) the value
of these Shares of Restricted Stock is an extraordinary item of compensation which is outside the
scope of the Grantee’s employment contract, if any; (e) this award of Restricted Stock is not part
of the Grantee’s normal or expected compensation for purposes of calculating any severance,
resignation, redundancy, end of service payments, bonuses, long-service awards, pension or
retirement benefits or similar payments; (f) the vesting of these Shares of Restricted Stock will
cease upon termination of employment for any reason except as may otherwise be explicitly provided
in the Plan or this Agreement; (g) the future value of the underlying Shares is unknown and cannot
be predicted with certainty; (h) these Shares of Restricted Stock have been granted to the Grantee
in the Grantee’s status as a Service Provider of the Company or its Parent or one of its
Subsidiary; (i) any claims resulting from this Restricted Stock Award shall be enforceable, if at
all, against the Company; and (j) there shall be no additional obligations for any Parent or
Subsidiary employing the Grantee as a result of these Restricted Stock Awards.

 

 

     22. Disclosure of Grantee Information. By accepting this Restricted Stock Award, the
Grantee consents to the collection, use and transfer of personal data as described in this
paragraph. The Grantee understands that the Company and its Parent and Subsidiaries hold certain
personal information about him or her, including his or her name, home address and telephone
number, date of birth, social security or identity number, salary, nationality, job title, any
shares of stock or directorships held in the Company, details of all awards of Restricted Stock or
any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or
outstanding in his or her favor, for the purpose of managing and administering the Plan (“Data”).
The Grantee further understands that the Company and/or its Parent and/or its Subsidiaries will
transfer Data among themselves as necessary for the purpose of implementation, administration and
management of his or her participation in the Plan, and that the Company and/or any of its Parent
and/or Subsidiaries may each further transfer Data to any third parties assisting the Company in
the implementation, administration and management of the Plan. The Grantee understands that these
recipients may be located in the European Economic Area, or elsewhere, such as in the U.S. or Asia.
The Grantee authorizes the Company to receive, possess, use, retain and transfer the Data in
electronic or other form, for the purposes of implementing, administering and managing his or her
participation in the Plan, including any requisite transfer to a broker or other third party with
whom he or she may elect to deposit any Shares of stock acquired from this award of Restricted
Stock of such Data as may be required for the administration of the Plan and/or the subsequent
holding of Shares of stock on his or her behalf. The Grantee understands that he or she may, at
any time, view the Data, require any necessary amendments to the Data or withdraw the consent
herein in writing by contacting the Human Resources department for the Company and/or its
applicable Parent or Subsidiary.

o    0    o

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