Document:

Exhibit
10.19

EXHIBIT
D

ICM
License Agreement

THIS
LICENSE AGREEMENT (this “License Agreement”) is entered into
and made effective as of the 5th day of May, 2006 (“Effective Date”) by and
between Millennium Ethanol, LLC, a South Dakota limited liability company (“OWNER”),
and ICM, Inc., a Kansas corporation (“ICM”).

WHEREAS,
OWNER has entered into that certain Design-Build Lump Sum Contract dated May 5,
2006 (the “Contract”) with Fagen, Inc., a Minnesota corporation (“Fagen”),
under which Fagen is to design and construct a 100 million gallon per year
ethanol plant for OWNER to be located in or near Marion, South Dakota (the “Plant”);

WHEREAS,
ICM has granted Fagen the right to use certain proprietary technology and
information of ICM in the design and construction of the Plant; and

WHEREAS,
OWNER desires from ICM, and ICM desires to grant to OWNER, a license to use
such proprietary technology and information in connection with OWNER’S
ownership, operation, maintenance and repair of the Plant, all upon the terms
and conditions set forth herein;

NOW,
THEREFORE, the parties, in consideration of the foregoing premises and the
mutual promises contained herein and for other good and valuable consideration,
receipt of which is hereby acknowledged, agree as follows;

1.               Upon
substantial completion of the Plant by Fagen pursuant to the terms of the
Contract or, if later, payment by OWNER of all amounts due and owing to Fagen
under the Contract, ICM grants to OWNER a limited license to use the
Proprietary Property (hereinafter defined) solely in connection with the
ownership, operation, maintenance and repair of the Plant, subject to the
limitations provided herein (the “Purpose”).

2.               The
“Proprietary Property” means, without limitation, documents, Operating
Procedures (hereinafter defined), materials and other information that are
furnished by ICM to OWNER in connection with the Purpose, whether orally,
visually, in writing, or by any other means, whether tangible or intangible,
directly or indirectly (including, without limitation, through Fagen) and in
whatever form or medium including, without limitation, the design, arrangement,
configuration, and specifications of (i) the combinations of distillation,
evaporation, and alcohol dehydration equipment (including, but not limited to,
pumps, vessels, tanks, heat exchangers, piping, valves and associated
electronic control equipment) and all documents supporting those combinations;
(ii) the combination of the distillers grain drying (DGD), and heat recovery
steam generation (HRSG) equipment (including, but not limited to, pumps,
vessels, tanks, heat exchangers, piping and associated electronic control
equipment) and all documents supporting those combinations; and (iii) the
computer system, known as the distributed control system (DCS and/or PLC)
(including, but not limited to, the software configuration, programming,
parameters, set points, alarm points, ranges, graphical interface, and system
hardware connections) and all documents supporting that system.  The “Operating Procedures” means, without
limitation, the process equipment and specifications manuals, standards of
quality, service protocols, data collection methods, construction
specifications, training methods, engineering standards and any other
information prescribed by ICM from time to time concerning the Purpose.
Proprietary Property shall not include any information or materials that OWNER
can demonstrate by clear and convincing written evidence: (i) was lawfully in
the possession of OWNER prior to disclosure by ICM or Fagen; (ii) was in the
public domain prior to disclosure by ICM or Fagen; (iii) was disclosed to OWNER
by a third party other than Fagen having the legal right to

 D-1
 

possess and disclose such information or materials; or
(iv) after disclosure by ICM or Fagen comes into the public domain through no
fault of OWNER or its members, directors, officers, employees, agents,
contractors, consultants or other representatives (hereinafter collectively
referred to as “Representatives”). Information and materials shall not be
deemed to be in the public domain merely because such information is embraced
by more general disclosures in the public domain, and any combination of
features shall not be deemed to be within the foregoing exceptions merely
because individual features are in the public domain if the combination itself
and its principles of operation are not in the public domain.

3.               OWNER
shall not use the Proprietary Property for any purpose other than the Purpose.
OWNER shall not use the Proprietary Property in connection with any expansion
or enlargement of the Plant. ICM and its Representatives shall have the express
right at any time to enter upon the premises of the Plant to inspect the Plant
and its operation to ensure that OWNER is complying with the terms of this
License Agreement.

4.               OWNER’s
failure to materially comply with the Operating Procedures shall void all
guarantees, representations and warranties, whether expressed or implied, if
any, that were given by ICM to OWNER, directly or indirectly through Fagen,
concerning the performance of the Plant that ICM reasonably determines are
materially affected by OWNER’s failure to materially comply with such Operating
Procedures. OWNER agrees to indemnify, defend and hold harmless ICM, Fagen and
their respective Representatives from any and all losses, damages and expenses
including, without limitation, reasonable attorneys’ fees resulting from,
relating to or arising out of Owner’s or its Representatives’ (a) failure to
materially comply with the Operating Procedures or (b) negligent use of the
Proprietary Property.

5.               Any
and all modifications to the Proprietary Property made by OWNER or its
Representatives shall be the property of ICM. 
OWNER shall promptly notify ICM of any such modification and  OWNER agrees to assign all right, title
and interest in such modification to ICM; provided, however, OWNER shall retain
the right, at no cost, to use such modification in connection with the Purpose.

6.               ICM
has the exclusive right and interest in and to the Proprietary Property and the
goodwill associated therewith. OWNER will not, directly or indirectly, contest
ICM’s ownership of the Proprietary Property. OWNER’s use of the Proprietary
Property does not give OWNER any ownership interest or other interest in or to
the Proprietary Property except for the limited license granted to OWNER
herein.

7.               OWNER
shall pay no license fee or royalty to ICM for OWNER’s use of the Proprietary
Property pursuant to this License Agreement, the consideration for the limited
license granted herein is certain payments by Fagen to ICM, which is funded by
and included in the amounts payable by OWNER to Fagen for the construction of
the Plant under the Contract.

8.               OWNER
may not assign the limited license granted herein, in whole or in part, without
the prior written consent of ICM, which will not be unreasonably withheld or
delayed. Prior to any assignment, OWNER shall obtain from such assignee a
written instrument, in form and substance reasonably acceptable to ICM,
agreeing to be bound by all the terms and provisions of this License Agreement.
Any assignment of this License Agreement shall not release OWNER from (i) its
duties and obligations hereunder concerning the disclosure and use of the
Proprietary Property by OWNER or its Representatives, or (ii) damages to ICM
resulting from, or arising out of, a breach of such duties or obligations by
OWNER or its Representatives. ICM may assign its right, title and interest in
the Proprietary Property, in whole or part, subject to the limited license
granted herein.

 D-2
 

9.               The
Proprietary Property is confidential and proprietary. OWNER shall keep the
Proprietary Property confidential and shall use all reasonable efforts to
maintain the Proprietary Property as secret and confidential for the sole use
of OWNER and its Representatives for the Purpose. OWNER shall retain all
Proprietary Property at its principal place of business and/or the Plant. OWNER
shall not at any time without ICM’s prior written consent, copy, duplicate,
record, or otherwise reproduce the Proprietary Property, in whole or in part,
or otherwise make the same available to any unauthorized person provided, OWNER
shall be permitted to copy, duplicate or otherwise reproduce the Proprietary
Property in whole or in part in connection with, and to the extent it is
necessary and essential for, the Purpose so long as all such copies, duplicates
or reproductions are kept at its principal place of business and/or the Plant
and are treated the same as any other Proprietary Property. OWNER shall not
disclose the Proprietary Property except to its Representatives who are
directly involved with the Purpose, and even then only to such extent as is
necessary and essential for such Representative’s involvement. OWNER shall
inform such Representatives of the confidential and proprietary nature of such
information and, if requested by ICM, OWNER shall obtain from such
Representative a written instrument, in form and substance reasonably
acceptable to ICM, agreeing to be bound by all of the terms and provisions of
this License Agreement to the same extent as OWNER. OWNER shall make all
reasonable efforts to safeguard the Proprietary Property from disclosure by its
Representatives to anyone other than permitted hereby. OWNER shall notify ICM
immediately upon discovery of any unauthorized use or disclosure of the
Proprietary Property, or any other breach of this License Agreement by OWNER or
its Representatives, and shall cooperate with ICM in every reasonable way to
help ICM regain possession of the Proprietary Property and prevent its further
unauthorized use or disclosure. In the event that OWNER or its Representatives
are required by law to disclose the Proprietary Property, OWNER shall provide
ICM with prompt written notice of same so that ICM may seek a protective order
or other appropriate remedy. In the event that such protective order or other
appropriate remedy is not obtained, OWNER or its Representatives will furnish
only that portion of the Proprietary Property which in the reasonable opinion
of its or their legal counsel is legally required and will exercise its
reasonable efforts to obtain reliable assurance that the Proprietary Property
so disclosed will be accorded confidential treatment.

10.         OWNER
agrees to indemnify ICM for any and all damages (including, without limitation,
reasonable attorneys’ fees) arising out of or resulting from any unauthorized
disclosure or use of the Proprietary Property by OWNER or its Representatives.
OWNER agrees that ICM would be irreparably damaged by reason of a violation of
the provisions contained herein and that any remedy at law for a breach of such
provisions would be inadequate. OWNER agrees that ICM shall be entitled to seek
injunctive or other equitable relief in a court of competent jurisdiction
against OWNER or its Representatives for any unauthorized disclosure or use of
the Proprietary Property without the necessity of proving actual monetary loss
or posting any bond. It is expressly understood that the remedy described
herein shall not be the exclusive remedy of ICM for any breach of such
covenants, and ICM shall be entitled to seek such other relief or remedy, at
law or in equity, to which it may be entitled as a consequence of any breach of
such duties or obligations.

11.         The
duties and obligations of OWNER under this License Agreement, and all
provisions relating to the enforcement of such duties and obligations shall
survive and remain in full force and effect notwithstanding any termination or
expiration of the Contract or this License Agreement.

12.         ICM
may terminate this License Agreement upon written notice to OWNER if OWNER
willfully or wantonly (a) uses the Proprietary Property for any purpose, or (b)
discloses the Proprietary Property to anyone, in each case other than permitted
herein. Upon termination of this License Agreement, OWNER shall cease using the
Proprietary Property for any purpose (including the Purpose) and, upon request
by ICM, shall promptly return to ICM all documents or other materials in OWNER’s
or its Representatives’ possession that contain Proprietary Property in
whatever format,

 D-3
 

whether written or electronic, including any and all
copies or reproductions of the Proprietary Property. OWNER shall permanently
delete all such Proprietary Property from its computer hard drives and any
other electronic storage medium (including any backup or archive system). OWNER
shall deliver to ICM a written certificate which certifies that all electronic
copies or reproductions of the Proprietary Property have been permanently
deleted.

13.         The
laws of the State of Kansas, United States of America (or US), shall govern the
validity of the provisions contained herein, the construction of such
provisions, and the interpretation of the rights and duties of the parties. Any
legal action brought to enforce or construe the provisions of this License
Agreement shall be brought in the federal or state courts located in Wichita,
Kansas, and the parties agree to and hereby submit to the exclusive
jurisdiction of such courts and agree that they will not invoke the doctrine of
forum non conveniens or other similar defenses in any such action brought in
such courts. Notwithstanding the foregoing, nothing in this License Agreement
will affect any right ICM may otherwise have to bring any action or proceeding
relating to this License Agreement against OWNER or its properties in the
courts of any jurisdiction. In the event the Plant is located in, or OWNER is
organized under the laws of a country other than the US, OWNER hereby
specifically agrees that any injunctive or other equitable relief granted by a
court located in the State of Kansas, US, or any award by a court located in
the State of Kansas, shall be specifically enforceable as a foreign judgment in
the country in which the Plant is located, OWNER is organized or both, as the
case may be, and agrees not to contest the validity of such relief or award in
such foreign jurisdiction, regardless of whether the laws of such foreign
jurisdiction would otherwise authorize such injunctive or other equitable
relief, or award.

14.         OWNER
hereby agrees to waive all claims against ICM and ICM’s Representatives for any
consequential damages that may arise out of or relate to this License
Agreement, the Contract or the Proprietary Property whether arising in
contract, warranty, tort (including negligence), strict liability or otherwise,
including but not limited to losses of use, profits, business, reputation or
financing. OWNER further agrees that the aggregate recovery of OWNER and Fagen
(and everyone claiming by or through OWNER and Fagen), as a whole, against ICM
and ICM’s Representatives, collectively, for any and all claims that arise out
of, relate to or result from this License Agreement, the Proprietary Property
or the Contract, whether arising in contract, warranty, tort (including
negligence), strict liability or otherwise, shall not exceed One Million US
Dollars ($1,000,000).

15.         The
terms and conditions of this License Agreement constitute the entire agreement
between the parties with respect to the subject matter hereof and supersede any
prior understandings, agreements or representations by or between the parties,
written or oral. Any rule of construction to the effect that any ambiguity is
to be resolved against the drafting party shall not be applicable in the interpretation
of this License Agreement. This License Agreement may not be modified or
amended at any time without the written consent of the parties.

16.         All
notices, requests, demands, reports, statements or other communications (herein
referred to collectively as “Notices”) required to be given hereunder or
relating to this License Agreement shall be in writing and shall be deemed to
have been duly given if transmitted by personal delivery or mailed by certified
mail, return receipt requested, postage prepaid, to the address of the party as
set forth below. Any such Notice shall be deemed to be delivered and received
as of the date so delivered, if delivered personally, or as of the third
business day following the day sent, if sent by certified mail. Any party may,
at any time, designate a different address to which Notices shall be directed
by providing written notice in the manner set forth in this paragraph.

17.         In
the event that any of the terms, conditions, covenants or agreements contained
in this License Agreement, or the application of any thereof, shall be held by
a court of competent jurisdiction to be

 D-4
 

invalid, illegal or unenforceable, such term,
condition, covenant or agreement shall be deemed void ab initio and shall be
deemed severed from this License Agreement. In such event, and except if such
determination by a court of competent jurisdiction materially changes the
rights, benefits and obligations of the parties under this License Agreement,
the remaining provisions of this License Agreement shall remain unchanged
unaffected and unimpaired thereby and, to the extent possible, such remaining
provisions shall be construed such that the purpose of this License Agreement
and the intent of the parties can be achieved in a lawful manner.

18.         The
duties and obligations herein contained shall bind, and the benefits and
advantages shall inure to, the respective successors and permitted assigns of
the parties hereto.

19.         The
waiver by any party hereto of the breach of any term, covenant, agreement or condition
herein contained shall not be deemed a waiver of any subsequent breach of the
same or any other term, covenant, agreement or condition herein, nor shall any
custom, practice or course of dealings arising among the parties hereto in the
administration hereof be construed as a waiver or diminution of the right of
any party hereto to insist upon the strict performance by any other party of
the terms, covenants, agreement and conditions herein contained.

20.         In
this License Agreement, where applicable, (i) references to the singular shall
include the plural and references to the plural shall include the singular, and
(ii) references to the male, female, or neuter gender shall include references
to all other such genders where the context so requires.

IN WITNESS WHEREOF, the
parties hereto have executed this License Agreement, the Effective Date of
which is indicated on page 1 of this License Agreement.

	
  OWNER:

  	
   

  	
  ICM:

  
	
   

  	
   

  	
   

  
	
  Millennium
  Ethanol, LLC

  	
   

  	
  ICM, Inc.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Steve Domm

  	
   

  	
   

  	
  By:

  	
  /s/ Dave Vander Griend

  	
   

  
	
   

  	
   

  	
   

  
	
  Title: CEO

  	
   

  	
  Title: CEO

  
	
   

  	
   

  	
   

  
	
  Date Signed:
  5/9/06

  	
   

  	
  Date Signed: 5-15-06

  
	
   

  	
   

  	
   

  
	
  Address for
  giving notices:

  	
   

  	
  Address for giving notices:

  
	
   

  	
   

  	
   

  
	
  300 N Broadway

  Marion, SD 57043

  	
   

  	
  301 N First Street

  Colwich, KS 67030

  
							

 

 D-5Exhibit
10.20

MILLENNIUM
ETHANOL L.L.C. 

RISK MANAGEMENT AGREEMENT

FOR

GRAIN PROCUREMENT AND
BYPRODUCT MARKETING

This document is
to define the agreement by which John Stewart & Associates, an Introducing
Broker for Iowa Grain Company, will provide risk management services to 

MILLENNIUM ETHANOL L.L.C.
  John Stewart and Associates will further
be referred to as JS&A. 

Risk management
within a commodity based business can take as many different forms as there are
managements wishing to achieve this task. The design of which is greatly
influenced by the degree and type of risk, management is comfortable with and
the amount of capital available for risk management at a given time. For this
reason the scope of this document will be to define the responsibilities of all
parties involved and to a certain degree the approach by which JS&A will
attempt to achieve this task.

It is important
that it be understood that many of these parameters are in a continual state of
change and for this reason while we  attempt
to be fairly broad in the definition of our responsibilities and approach this
document cannot and is not intended to be all inclusive.

JS&A will
provide risk management services pertaining to;

Grain Hedging

Grain Pricing Information

Aid in purchase of grain

Assistance in risk management as it pertains to Ethanol, and By-Products

JS&A will work with
Millennium Ethanol L.L.C. providing advice regarding the hedging of grains,
milling by-product owned or expected to be owned by it and Ethanol, in order to
reduce the price risk of such ownership, and provide information related to  the hedged position to respond to all
management requirements.

JS&A will provide
both current and future grain pricing information to Millennium Ethanol L.L.C.
JS&A will on an ongoing basis bring recommendations, of trades to be
executed, to your designated personnel as to the cash corn and or futures and
options positions to be established. Following your approval of and agreement,
JS&A will execute the necessary futures and options to the best of our
ability. We will continue to advise as to any adjustments that need to be made
to this position and execute them following your approval.

JS&A will also
be available and provide the necessary counsel to your risk committee and or
board as to the rational for the proposed position, its risk parameters and an
estimate of the capital required.

JS&A does not
view risk management in a processing environment to be a function of picking
the highs and lows of individual commodity prices at a given point in time. But
rather as an ongoing function comprised of formulating a studied opinion of
price based upon historical perspectives of the current Supply and demand
factors and then employing that opinion in a system of “Asset Management” based
on processing margins and profitability.

Tools employed to
accomplish this include but are not limited to our analysis and projection of
futures highs and lows, regional grain S/D’s specific to your location,
regional basis histories relating back to the S/D’s and the employment of a
Risk Management Matrix that enables us to build a history of processing margins
for the individual facility, evaluate projected forward margins by individual
components: corn, by-products, and ethanol, and also track and evaluate the corn
by-product spread. This information is employed to evaluate current margins and
develop an opinion as to future margins and when to lock margin in.

The basic tools
for risk management are forward cash contracts, buying and selling futures
contracts and buying and selling put and call options. All of these can be
employed.

To Recap

JS&A will
provide consulting and risk management services as it pertains to Grain
Hedging, Grain Price Information, and assist in risk management as it pertains
to Ethanol and By Products.

In addition
JS&A will make available our proprietary resources for price forecasting,
regional S/D’s, basis analysis and margin management and analysis.

Additionally, we
will instruct all relevant personnel as to its use. Upon your recommendation
JS&A will manage the execution of the necessary positions and continually
advise Millennium Ethanol L.L.C. management of any necessary adjustments.

It is our
understanding that the primary intent of engaging our professional services is
for the benefit of the staff and management of Millennium Ethanol L.L.C.

JS&A services
commence upon execution of this agreement. In exchange for the above services a
fee of $2500.00 per month will be charged beginning when activity dictates but
not to precede plant startup more than 90 days. In addition the initial payment
will not be due until the plant is in operation. It is also understood that
these services are dependant on JS&A being the clearing broker for
Millennium Ethanol L.L.C. at a rate of $15.00 per contract plus clearing and
exchange fees

This agreement
does not preclude or limit JS&A from conducting their normal course of
business.

Except as required
by any governmental agency, court or tribunal of competent jurisdiction,
JS&A will not disclose to any third party or use for any purposes any
confidential information or the existence of any business relationship with
Millennium Ethanol L.L.C.

This agreement
shall remain in effect for one year and continue on a month to month basis
thereafter unless either party notifies the other in writing that it wishes to
terminate this agreement.

If the terms are
in accordance with your understanding and acceptable to you please sign, date,
and return the duplicate copy of this letter.

	
  

  	
  Sincerely,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Tom Tucker

  	
   

  
	
   

  	
  John Stewart & Associates

  	
   

  
	
   

  	
  Thomas Tucker

  	
   

  

 

	
  Millennium Ethanol L.L.C.

  
	
   

  
	
   

  
	
  /s/ Steve Domm

  	
   

  
	
  By

  
	
   

  
	
   

  
	
  CEO

  	
   

  
	
  Title

  
	
   

  
	
   

  
	
  4/4/06

  	
   

  
	
  Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]