Document:

exv10w19

 

Exhibit 10.19

CONFIDENTIAL TERMINATION AGREEMENT AND GENERAL RELEASE OF CLAIMS

     THIS TERMINATION AGREEMENT AND GENERAL RELEASE OF CLAIMS (the “Agreement”) dated as of
February 14, 2007 is entered into by and between Gerald J. Houston, an individual (“Executive”),
and LifeVantage Corporation (f/k/a Lifeline Therapeutics, Inc.), a Colorado corporation
(“LifeVantage”).

     WHEREAS, LifeVantage and Executive entered into an Employment Agreement effective as of
January 4, 2006 (the “Employment Agreement”);

     WHEREAS, LifeVantage and the Executive herein desire to terminate Executive’s employment and
amend the terms of the Employment Agreement to the extent, and only to the extent, provided herein;

     NOW, THEREFORE, in consideration of the mutual promises and covenants set forth below, the
parties, intending to be legally bound, agree as follows:

          1. Termination of Employment.

     Executive’s employment with LifeVantage shall terminate effective June 16, 2007 (“Termination
Date”). While Executive will continue to be employed by
LifeVantage from February 16, 2007 to the
Termination Date, commencing February 16, 2007, Executive shall no longer be Chief Financial
Officer or a director or officer of LifeVantage or any partially-owned or wholly-owned subsidiary
of LifeVantage.

          2. Severance Payment.

     As full, sufficient and complete consideration for Executive’s promises and releases contained
herein, LifeVantage agrees to provide Executive the following:

	 	2.1	 	Cash Payment. LifeVantage shall provide cash payment to Executive in
the following amounts: (a) Executive’s accrued unpaid Base Salary to February 15,
2007 and any bonus earned but not paid as of February 15, 2007; and (b) an amount
equal to four (4) months of Executive’s Salary, at the rate in effect as of February
15, 2007, not including any bonus, benefits nor other payments, from which the normal
payroll and tax deductions will be made (the “Cash Payments”). The Cash Payments
shall be paid as follows: (i) subparagraph (a) shall be paid on February 15, 2007 and
(ii) subparagraph (b) shall be paid in equal installments in accordance with
LifeVantage’s normal payroll cycle.
	 
	 	2.2	 	Stock Options. As of the date of this Agreement, stock options for a
total of eighty thousand (80,000) shares of LifeVantage’s common stock previously have
vested pursuant to the Employment Agreement and the Option, as defined in the
Employment

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	 	 	 	Agreement, and Executive’s rights to any additional vesting under the
Option shall terminate. Except as provided herein, the terms and
conditions of such Option shall continue to be governed and controlled
pursuant to the corresponding option agreement.

	 	2.3	 	Additional Benefits. LifeVantage shall provide Executive with
continued long term care insurance and medical insurance, including disability, plans
or arrangements until the Termination Date. In addition, LifeVantage shall provide
Executive with his personal laptop computer.
	 
	 	2.4	 	COBRA Coverage. Executive shall be eligible for COBRA coverage on
the first date following the Termination Date payable 100% by Executive.
	 
	 	2.5	 	Hours Commitment. Executive agrees to provide services to the Board
of Directors of LifeVantage until the Termination Date, not to exceed 15 hours per
week of commitment by Executive.

     For purposes of this Agreement, the consideration set forth in this paragraph 2 shall
collectively be referred to as the “Payments.”

          3. Additional Payment or Actions.

     Except as provided under paragraph 2 of this Agreement, Executive agrees that no additional
payments or actions of any kind are due under this Agreement or the Employment Agreement, except
that reimbursable expenses incurred by Executive prior to the Termination Date shall be paid in
accordance with LifeVantage’s established practices.

          4. Acknowledgment of Additional Consideration; No Admission.

     Executive acknowledges that the payment and other undertakings described above in Section 2,
will fully discharge and satisfy all of LifeVantage’s obligations for monies and any other
consideration due to Executive by reason of his employment, including, but not limited to, all
LifeVantage’s obligations under the Employment Agreement, and that these undertakings will also
provide him with additional monies and undertakings that are not otherwise due to Executive
now, nor in the future, and that constitute valuable consideration for Executive’s release of
claims and other promises herein. This Agreement is not an admission by either LifeVantage
or Executive of any wrongdoing or liability.

          5. Release.

     In exchange for LifeVantage’s payments and other undertakings as described herein, Executive,
for himself and his heirs, legal representatives, successors and assigns, does hereby completely
release and forever discharge LifeVantage, its parent,

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subsidiaries and affiliated companies, and their respective shareholders, officers, directors,
representatives, employees, former employees, agents, attorneys, successors and assigns (herein
collectively the “Releasees”) from all claims, rights, demands, actions, obligations and causes of
action of any and every kind, nature and character, known or unknown, that Executive may now have
or has ever had or will have against them based on any act or omission that occurred through the
date this Agreement is signed, including without limitation : (a) any and all claims of “wrongful
discharge,” breach of express or implied contract, breach of the implied covenant of good faith and
fair dealing, wrongful discharge in violation of public policy, intentional infliction of emotional
distress, negligent infliction of emotional distress, fraud and defamation; (b) any tort of any
nature; (c) any and all claims arising under any federal, state, county or municipal statute,
constitution or ordinance, including but not limited to Title VII of the Civil Rights Act of 1964,
the Civil Rights Act of 1991, the Age Discrimination in Employment Act, the Older Workers Benefit
Protection Act, the Americans with Disabilities Act, the Employee Retirement Income Security Act,
and any other laws and regulations relating to Executive’s employment; (d) any and all claims for
compensation, bonuses, severance pay, stock options, restricted stock, vacation pay, expense
reimbursement, attorneys’ fees and costs; and (e) any and all claims for relief of any kind,
regardless of the basis for such claim or the nature of the remedy sought, subject only to the
exclusion set forth in the following sentence.

          6. Return of Property.

     To the extent he has not already done so, Executive shall immediately return to LifeVantage
all of LifeVantage’s property, including all keys, credit cards, files, documents, business
records, customer records, computer discs and other LifeVantage property and assets that may be in
his possession or control. Executive shall not keep copies of any documents or other property that
he received in his capacity as an officer, employee or director of LifeVantage.

          7. Non-Disclosure Covenant.

     Executive further agrees that Executive will not discuss or otherwise disclose the terms and
conditions of this Agreement. Executive will not disclose, discuss nor reveal the monetary or other
terms of this Agreement to any other persons, entities or organizations, except his immediate
family members, attorneys, tax preparers, financial advisors, and any agency to which he is
required to report his income, unless disclosure is compelled by subpoena or other legal process or
is necessary to enforce his rights under this Agreement. In the event Executive discloses the terms
of this Agreement to any of the aforementioned individuals to whom disclosure is permitted,
Executive shall specifically advise the recipient of the confidentiality provision herein and shall
expressly condition the disclosure upon the recipient’s agreement to maintain the confidentiality
of this Agreement. If at any time in the future Executive believes that he may be required by
subpoena or other legal process to disclose the terms of this Agreement, he will provide written
notification to LifeVantage immediately, and in no event less than seventy-two (72) hours before
any such compelled disclosure is due to be made. Executive recognizes that LifeVantage may
disclose part or all of the terms and conditions of this Agreement.

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          8. Governing Law.

     This Agreement shall be construed in accordance with the laws of the State of Colorado without
regard to the conflicts of laws provisions thereof. Venue for any adjudication hereof shall be
only in the appropriate state or federal court in Colorado, and the parties consent to personal
jurisdiction in such state and federal courts.

          9. Severability.

     The provisions of this Agreement shall be considered to be separable and independent of each
other. In the event any provision of this Agreement is found by a court of competent jurisdiction
to be invalid, such finding shall not affect the validity or effectiveness of any or all of the
remaining provisions of this Agreement.

          10. Voluntary Execution of Agreement.

     This Agreement is executed voluntarily and without any duress or undue influence on the part
or on behalf of the parties hereto, with the full intent of releasing all claims. Each party
acknowledges that (i) they have been advised by the other to consult an attorney regarding any
potential claims as well as the terms and conditions of this Agreement before executing it, (ii)
they have read the Agreement and they fully understand the terms of this Agreement including,
without limitation, the significance and consequences of the general release in Section 5 hereof,
(iii) they are executing this Agreement in exchange for consideration in addition to anything of
value to which they are entitled, and (iv) they are fully satisfied with the terms of this
Agreement and are executing this Agreement voluntarily, knowingly and willingly and without duress.

          11. Noncompetition, Nonsolicitation and Confidentiality.

     Except as set forth herein, the terms and conditions set forth in Section 4, Noncompetition,
Nonsolicitation, and Section 5, Confidentiality, of the Employment Agreement shall remain in full
force and effect. Except as set forth herein, nothing contained in this Agreement shall be deemed
to revoke or limit in any way the provisions and survivability of Sections 4 and 5 of the
Employment Agreement. Notwithstanding anything to the contrary contained in the Employment
Agreement, Executive is free to engage directly or indirectly in any business or pursuit with any
third party as long as such business or pursuit is not directly competitive with the business of
LifeVantage as that business is conducted on the date of this Agreement.

          12. Cooperation with Legal Proceedings.

     Executive agrees to reasonably cooperate with LifeVantage and any other party upon request of
LifeVantage in the defense or prosecution of any claims or actions now in existence or that may be
brought in the future against or on behalf of LifeVantage, which relate to events or occurrences
that transpired while the Executive was employed by LifeVantage. Executive’s reasonable
cooperation in connection with such claims or

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actions shall include, but not be limited to, being available to meet with counsel to prepare
for discovery or trial and to act as a witness. Executive also agrees to reasonably cooperate,
upon the request of LifeVantage or its parent in connection with any investigation or review by any
federal, state, or local regulatory authority that relates to events or occurrences that transpired
while Executive was employed by LifeVantage.

          13. Non-Disparagement.

     As of the Termination Date, Executive agrees not to make any oral or written statements or
otherwise engage in any act that is intended or may reasonably be expected to harm the reputation,
business, prospects or operations of LifeVantage or any of its respective directors or executive
officers or any persons related to the foregoing. As of the Termination Date, LifeVantage further
agrees not to, and to use its reasonable best efforts to ensure that its directors and executive
officers will not, make any oral or written statements to employees or members of the Board of
Directors of LifeVantage or other outside individuals or otherwise engage in any act that is
intended or may reasonably be expected to harm the reputation, business or prospects of Executive.

          14. Public Statements.

     At a time to be determined in LifeVantage’s sole discretion, LifeVantage may issue a statement
for dissemination announcing Executive’s departure. Executive will not issue any statement either
within or outside LifeVantage regarding his departure or the terms of this Agreement without first
obtaining LifeVantage’s prior written approval, such approval not to be unreasonably withheld,
conditioned or delayed.

          15. Counterparts.

     This Agreement may be executed in any number of counterparts, each of which shall be deemed an
original and all of which together shall be deemed to be one and the same instrument.

          16. Notices.

     All notices, requests, claims, demands or other communications hereunder shall be in writing
and shall be deemed given when delivered personally, upon receipt of a transmission confirmation if
sent by telecopy or like transmission and on the next business day when sent by a reputable
overnight carrier service to the parties at the following addresses (or at such other address for a
party as shall be specified by like notice):

     If to LifeVantage:

Lifevantage Corporation

6400 South Fiddler, Suite 1970

Engelwood, CO 80111

Attention: Corporate Secretary

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With a copy to:

Kendall, Koenig & Oelsner

1675 Broadway, Suite 750

Denver, CO 80202

Attention: Brad Schoenfeld

If to Executive:

Gerald J. Houston

5200 South Ulster Street, #1624

Greenwood Village, CO 80111

          17. Entire Agreement.

     This Agreement constitutes the entire agreement between the parties and supersedes all other
agreements and understandings between them that may have related to the subject matters contained
herein. This Agreement shall not in any manner limit the obligations of Executive or rights of
LifeVantage under Sections 4, 5, 6 and 10 of the Employment Agreement; provided, however, that if
there is a conflict between the terms and conditions of this Agreement and the Employment
Agreement, the terms and conditions of this Agreement shall control. No modification, amendment nor
waiver of any of the provisions of this Agreement shall be effective unless approved in writing by
both parties.

     The parties to this Agreement have executed this Agreement as of the day and first written
above.

	 	 	 	 	 	 
	LIFEVANTAGE CORPORATION
 	 	EXECUTIVE 	 
	 
	 
	By:  	/s/ James J. Krejci
 	 	 /s/ Gerald J. Houston 	 
	 	Name:  	James J. Krejci           	 	Gerald J. Houston 	 
	 	Title:  	CEO 	 	 	 

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Exhibit 10.7

AMENDED AND RESTATED LEASE

     This Amended and Restated Lease is effective as of November 1, 2006, by and between CHS Inc.,
a Minnesota cooperative corporation (“Landlord”) and US Bio Energy Corporation (“Tenant”).

RECITALS

     A. Landlord is the owner of that certain commercial office building located at 5500 Cenex
Drive, Inver Grove Heights, Minnesota 55077 (the “Building”) and the underlying real property (the
“Property”).

     B. Landlord and Tenant entered into a Lease Agreement dated June 1, 2006 for that portion of
the Building, consisting of approximately 10,757.5 rentable square feet (8,606 useable square feet)
of office, storage and conference space, located on the 1st floor of the Building;

     C. Landlord and Tenant desire to amend and restate the Lease to include an additional 882.5
rentable square feet as of November 1, 2006 and an additional 1529 rentable square feet as of
December 1, 2006, which is more particularly described in, and outlined on, Exhibits A and
B, respectively, attached hereto and made a part hereof(collectively the “Premises”).

AGREEMENT

1. LEASE OF PREMISES. In consideration of the foregoing and the mutual promises,
agreements and obligations contained herein, and subject to the terms and conditions hereinafter
set forth, Landlord does hereby lease, let and demise to Tenant, and Tenant does hereby lease from
Landlord, the Premises. On November 1, 2006, Tenant shall lease an additional 882.5 rentable
square feet for a total of 11,640 rentable square feet (9312 useable square feet) as outlined on
the attached Exhibit A. Commencing on December 1, 2006 Tenant shall lease an additional
1529 rentable square feet for a total of 13,169 rentable square feet (10,535 useable square feet)
as outlined on the attached Exhibit B. Appurtenant to the Premises shall be a license for
Tenant to have access over, on and through the Building and the Property for use of the parking
lots, driveways, sidewalks and other Common Areas (as defined in Section 18 below).

2. USE. Tenant will use and occupy the Premises as a business office and for no other
purpose whatsoever. Tenant agrees not to occupy or use the Premises, or permit any portion of the
Premises to be occupied or used, for any business or purpose which is unlawful, disruptive or
hazardous due to fire or other risks or to permit anything to be done which would in any way
increase the rate of fire insurance coverage or jeopardize the extent of coverage on the Property,
the improvements located thereon, or its contents. Tenant shall not store or permit the storage of
hazardous or flammable materials or chemicals in the Premises or any other portion of the Property,
unless such storage shall have been previously approved by Landlord and in all events, such storage
shall be in compliance with the requirements of federal, state and local laws, ordinances or
regulations and the requirements of Landlord’s and Tenant’s insurance carriers. Under no
circumstances shall Tenant dispose of hazardous or flammable materials or chemicals in the Premises
or on the Property.

3. TERM.

     (a) Initial Term. The initial term of this Lease will commence on June 1, 2006 and will
continue for a period of five (5) years until May 31, 2011 (the “Initial Term”), unless sooner
terminated as

 

 

provided herein.

     (b) Renewal Term. Subject to Landlord’s right to terminate at the expiration of the Initial
Term described in Section 3(c), Tenant shall have the right, but not the obligation, to renew this
Lease of the Premises for one (1) additional renewal term of five (5) years commencing on June 1,
2011, and continuing until May 31, 2016 (the “Renewal Term”), upon the same terms and conditions as
are set forth herein; provided, however, that in order to renew this Lease for the Renewal Term,
Tenant must give Landlord written notice of Tenant’s election to do so 90 days prior to expiration
of the Initial Term. The Initial Term and Renewal Term are sometimes collectively referred to
herein as the “Term.”

     (c) Landlord’s Right to Terminate at Expiration of the Initial Term. Notwithstanding anything
to the contrary contained herein, including but not limited to Section 3(b), Landlord shall have
the absolute right to terminate this Lease at the expiration of the Initial Term if: (i) Landlord
determines that it wants the Premises for its own use or for the use by any subsidiary or affiliate
of Landlord or a joint venture involving Landlord; and (ii) Landlord gives Tenant at least 120
days’ notice of such termination.

     (d) Early Termination Option. Tenant may terminate this Lease upon 90 days’ written notice
prior to the end of the third or fourth 12-month period of the Initial Term under the Lease;
provided however, if the Lease is terminated at the end of: (i) the third 12-month period during
the Initial Term, Tenant shall pay to Landlord an amount equal to 40% of the Improvement Allowance
(as defined in Paragraph 39), which equates to $36,145.20; or (ii) the fourth 12-month period of
the Initial Term, Tenant shall pay to Landlord an amount equal to 20% of the Improvement Allowance,
which equates to $18,072.60.

4. RENT.

     (a) Initial Term; Rent. Tenant agrees to pay to Landlord in advance on or before the first
day of each month in United States currency the following sums as “Rent” during the Initial Term of
this Lease:

          (i) Twelve Thousand Four Hundred thirty-four and 17/100 ($12,434.17) as Rent each month from
June 1, 2006 through October 31, 2006 of the Initial Term;

          (ii) Twenty Thousand Eight Hundred Fifty-five and 00/100 ($20,855.00) as Rent each month from
November 1, 2006 through November 30, 2006 of the Initial Term;

          (iii) Twenty-three Thousand Five Hundred Ninety-four and 46/100 ($23,594.46) as Rent each
month from December 1, 2006 through May 31, 2007 of the Initial Term;

          (iv) Twenty-four Thousand One Hundred Eighty-four and 32/100 ($24,184.32) as Rent each month
during the second twelve (12) months of the Initial Term;

          (v) Twenty-four Thousand Seven Hundred Eighty-eight and 93/100 ($24,788.93) as Rent each month
during the third twelve (12) months of the Initial Term; and

          (vi) Twenty-five Thousand Four Hundred Eight and 65/100 ($25,408.65) as Rent each month during
the fourth twelve (12) months of the Initial Term.

          (vii) Twenty-six Thousand Forty-three and 87/100 ($26,043.87) as Rent each month

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during the fifth twelve (12) months of the Initial Term.

     (b) Renewal Term; Rent. The annual increases in Rent for any 12-month period under the 5-year
Renewal Term under this Lease will be 2.5% of the annual Rent charged during the immediately
preceding twelve (12) month period.

     (c) Late Fee. Tenant agrees to pay interest to Landlord on any Rent or additional rent
payable under this Lease which is not timely paid at a rate equal to the lower of (a) fifteen per
cent (15%) per annum of the unpaid Rent or additional rent, or (b) the maximum rate of interest
permitted by law, from and after the date any such amount is due until paid.

5. UTILITIES AND MAINTENANCE. Landlord will provide, at its expense, heat, air
conditioning, water, sewer services, electricity, janitorial and routine maintenance services to
the Premises, the Building and the Property. Heating and air conditioning will be provided during
normal business hours from 6:30 a.m. to 5:30 p.m., Monday through Friday, and from 8:00 a.m. to
12:00 noon on Saturdays. If maintenance or repair of the Premises, the Building or the Property is
required as a result of the acts or omissions of Tenant, its employees, agents, or invitees,
Landlord will perform such maintenance and repair and charge the cost thereof, including a gross
hourly charge for maintenance employees of Landlord required to perform the work, as additional
rent, to Tenant, and such additional rent will be paid by Tenant within thirty (30) days of its
receipt of a statement of such charges. Notwithstanding the foregoing, Landlord shall be
responsible for performing all regular maintenance and repair of the Premises required as a result
of ordinary wear and tear at no expense to Tenant. Tenant will pay all telephone and
telecommunications charges, including any and all charges relating to computer equipment, except
electricity charges, allocable to its business activities in the Building. Landlord shall maintain
the Building and Property in good condition and repair as an office building. Except as otherwise
provided herein, all other maintenance and repair of the Premises, Building or Property will be
performed by Landlord at Landlord’s expense. In the event there is an interruption in utility
services to the Premises which materially and adversely affects the conduct of Tenant’s business
therein, Tenant’s sole remedy will be an abatement of Rent during the period of such interruption,
so long as Landlord works diligently to get such service restored, it being expressly understood
and agreed by the parties that Landlord will in no event be liable for any direct, indirect,
consequential, special, punitive or any other damages, or any lost profits of any kind whatsoever,
suffered by Tenant as a result of, or arising out of, any such interruption in service, unless such
interruption is caused by Landlord’s negligence, or reckless or intentional acts or omissions.

6. PARKING. Landlord will provide Tenant and its employees and guests with parking in the
general parking lot of the Building at no additional charge. The aforesaid parking lot may be used
by Tenant in common with Landlord and other tenants of the Building and their guests subject to
such reasonable rules as may be established by Landlord from time to time, and shall not be deemed
to confer on Tenant, its employees or guests, any rights to reserved or preferential parking in the
foregoing areas.

7. ADDITIONAL SERVICES AND BUILDING FACILITIES.

     (a) Services Provided. The following services will be provided during the Term of the Lease,
and such costs are included in the Rent:

          (i) Heating and air conditioning will be provided during normal business hours from 6:30 AM to
5:30 PM Monday through Friday, and from 8:00 AM to 12:00 PM on Saturday.

          (ii) Parking provided in general parking lot.

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          (iii) Routine maintenance services.

          (iv) Routine building security services and main entrance controls.

          (v) Snow and ice removal from sidewalks, parking lot and driveways.

          (vi) Lawn care and landscaping services.

          (vii) The Building will be open for business on weekdays, excluding CHS-designated holidays,
from 6:30 AM to 5:30 PM. Employees of Tenant shall have access to the Building at other times by
means of a controlled access security card, which will be distributed on request from a
pre-identified Tenant representative.

          (viii) Routine security services from an outside vendor from 4:00 PM to 8:30 AM Monday through
Friday and 24 hours on Saturday, Sunday and CHS-designated holidays. Special rules apply to after
hour or weekend activities for security purposes and are available upon request.

          (ix) Receptionist services are in place at front desk Monday through Friday 8:00 AM to 4:30
PM, except CHS-designated holidays.

          (x) Use of Common Areas, including parking lot, landscaped areas, corporate conference rooms,
cafeteria dinning area and other such areas provided for common use.

     (b) Other Available Services. Subject to Landlord offering such services, Tenant may utilize
any of the following services at the Building. These services are billed on a per usage basis, and
the fees are subject to change Fees can be provided to Tenant upon request.

(i) Special project services

(ii) Office move coordination

(iii) Design services

(iv) Furniture purchasing and furniture inventory control

(v) Off site storage

(vi) Special security services

(vii) Storage at Building 5300

(viii) Mail Station identification

(ix) Mail sorting, delivery and pick-up
(x) Mail courier

(xi) Postage/Labor jobs (i.e. folding and stuffing)

(xii) Loading dock

(xiii) Copy center

(xiv) Paper record storage

(xv) Local/long distance telephone services

(xvi) Heating and cooling during non-business hours

(xvii) Package shipping and receiving

8. REAL ESTATE TAXES. Tenant will have no responsibility for the payment of real estate
taxes or assessments due in connection with the Property.

9. ENCUMBRANCES. Tenant will not encumber the Premises or this Lease in any way,

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including but not limited to mortgaging or creating any other security interest in, or allowing the
filing of a mechanics’ lien against the Premises or any part thereof, or transferring, assigning or
otherwise granting any interest in the Lease, without the prior written consent of Landlord.
Notwithstanding, Tenant, in its sole discretion, may encumber or grant a security interest in
Tenant’s personal property used at or fixtures installed in the Premises.

10. POSSESSION OF PREMISES. Except as otherwise expressly provided in this Section 10,
Tenant agrees to lease the Premises “AS IS”, and Landlord makes no warranties of any sort regarding
the Premises, including but not limited to any warranties as to their condition or suitability for
Tenant’s current or intended uses. Except as provided in Section 39, Landlord will not make any
improvements to the Premises in connection with the execution or performance of this Lease, or
otherwise, unless (a) it is separately agreed to in writing by the parties; and (b) it is at
Tenant’s sole cost and expense.

11. HOLD HARMLESS. Landlord shall not be responsible for loss or damage to property or
injury to persons occurring in or about the Premises by reason of any condition, defect, matter or
thing on said Premises, the remainder of the Building, or the Property, or any of the improvements
of which the Premises are a part, or for the acts, omissions or negligence of persons in and about
the said Property, other than those resulting from the negligence or willful misconduct or omission
of Landlord, its agents or employees. Subject to the waiver of subrogation provisions of Paragraph
24, Tenant agrees to indemnify, defend, and save Landlord harmless from all liabilities, losses,
damages, expenses, costs of action, suits, interest, fines, penalties, claims and judgments (to the
extent that the same are not paid out of the proceeds of any policy of insurance) related to losses
or claims of injuries to persons occurring in or about the Premises, resulting from any act,
omission, or neglect of Tenant, its agents, servants, employees, customers or invitees, including
acts or omissions arising out of Tenant’s failure to perform, fully and promptly, each and every
covenant, condition and agreement of this Lease. Tenant, at its own cost and expense, will defend
any and all suits that may be brought and claims that may be made for which Tenant has agreed to
indemnify Landlord. Subject to the waiver of subrogation provisions of Paragraph 24, Landlord
agrees to indemnify, defend, and save Tenant harmless from all liabilities, losses, damages,
expenses, costs of action, suits, interest, fines, penalties, claims and judgments (to the extent
that the same are not paid out of the proceeds of any policy of insurance) related to losses or
claims of injuries to persons occurring in or about the Premises, the Building or the Property,
resulting from any act, omission, or neglect of Landlord, its agents, servants, employees,
customers or invitees, including acts or omissions arising out of Landlord’s failure to perform,
fully and promptly, each and every covenant, condition and agreement of this Lease. Landlord, at
its own cost and expense, will defend any and all suits that may be brought and claims that may be
made for which Landlord has agreed to indemnify Tenant.

12. ACCESS TO PREMISES. The Building shall be open for business on weekdays, excluding
CHS-designated holidays, from 6:30 a.m. to 5:30 p.m. Employees of Tenant and clients, if
accompanied by an employee of Tenant, shall have access to the Premises at other times by means of
a controlled access security card, which shall be distributed to Tenant by Landlord upon request.

13. COMPLIANCE WITH LAWS AND REGULATIONS. Tenant agrees to comply in all material respects
with all laws, ordinances, and governmental orders, rules and regulations (state, federal,
municipal, or promulgated by other agencies or bodies having any jurisdiction thereof), and all
Building rules, regulations and policies adopted by Landlord from time to time, relating to the
use, condition or occupancy of the Premises. Should Tenant receive notice of any violation or
inquiry as to a possible violation of federal, state or local laws, ordinances or regulations
related to its use, condition or occupancy, Tenant shall provide immediate notice to Landlord and
such further information as Landlord shall request.

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14. ENTRY FOR REPAIRS; INSPECTION. The Landlord or its employees or agents shall have the
right without any diminution of Rent or other charges payable hereunder by Tenant to enter the
Premises at reasonable times for the purposes of exhibiting the Premises to prospective tenants of
the Premises or purchasers of the Building and for inspection, cleaning, repairing, altering or
improving the Premises or the Building or Property, but nothing contained in this paragraph shall
be construed as imposing any obligation on the Landlord to make any repairs, alterations, or
improvements not otherwise specifically provided for in this Lease. In exercising the foregoing
right of entry, Landlord will provide no less than 24 hours prior notice to Tenant for the purposes
of exhibiting the Premises to prospective tenants of the Premises or purchasers of the Building,
and in all other cases, reasonable notice to Tenant, and will exercise reasonable care in an effort
to minimize the disruption to Tenant’s business operations.

15. ALTERATIONS. Tenant will not make any alterations, repairs, additions or improvements
in or to the Premises or add, subtract, or in any way change any locks, plumbing, wiring or other
services therein without the prior written consent of Landlord as to the alterations, additions or
improvements to be made to the Premises. Such consent will not be unreasonably withheld or delayed
by Landlord.

16. MECHANIC’S LIENS. In the event that any mechanic’s lien is filed against the Premises,
the Building or the Property as a result of Tenant’s alterations, additions, improvements or other
actions or omissions, Tenant shall immediately notify Landlord. Landlord shall have the right, but
not the obligation, after forty five (45) days from the filing of the lien, if the lien is not then
discharged, and in addition to all other remedies granted hereunder or by applicable law, to pay
the lien, without inquiring into the validity thereof, and Tenant will immediately reimburse
Landlord for the total amount of that payment, together with reasonable attorneys’ fees and other
costs actually incurred by Landlord in discharging the lien, as additional rent hereunder. In the
event that Tenant wishes to contest any such lien, it will post security in the form of a bond or
other collateral deemed sufficient by Landlord, in its sole discretion, within the 45 day period
provided above. If any such lien is not discharged within one (1) year after posting security, or
sooner if necessary to allow a sale or mortgaging of the Property or due to any other necessity,
Landlord will have the right to use such amounts posted as security to pay and discharge the lien.
Nothing contained herein will be deemed a waiver of the right of Landlord to declare an Event of
Default under Paragraph 27, if Tenant has failed to discharge any such lien within 45 days of
filing.

17. SIGNS. Tenant agrees that no sign, advertisement or notice will be placed or painted on
any part of the outside or inside of the Building or the Property or outside the Premises. Tenant
agrees that it will be permitted to have a sign inside the Premises and on the 1st floor
building directory using CHS standard inserts. Landlord reserves the right to remove any signs
placed or painted in violation of this section at the expense of Tenant.

18. COMMON AREAS. Common areas will consist of all parts of the Building and Property and
improvements thereon not under Lease exclusively to Tenant or other tenants or available for Lease
to other tenants, or used exclusively by Landlord, including, but not limited to, parking areas,
access roads and facilities, driveways, sidewalks and other walkways, stairways, hallways,
elevators, restrooms, landscaped areas, conference areas, cafeteria, and such other areas and
improvements provided for common use and benefit of tenants (the “Common Areas”). Landlord and
Tenant, and their invitees, employees, and visitors, shall have common and non-exclusive rights to
the use of said Common Areas, subject, however, to Landlord’s exclusive right to establish, modify
and enforce reasonable rules and regulations with respect to all Common Areas and facilities for
the safety, comfort and convenience of the owners, occupants, tenants and invitees of the Building
and the Property and the right of Landlord to establish reasonable procedures and schedules for use
of common facilities, such as loading docks, to allow use by all tenants.

6

 

19. QUIET ENJOYMENT. Landlord hereby warrants that, subject to the terms and conditions
hereof, Tenant will peacefully have, hold and enjoy the Premises during the full Term of this Lease
and any extensions or renewals thereof.

20. ASSIGNMENT AND SUBLETTING. Tenant may sublease or assign all or any portion of the
Premises to any affiliate or subsidiary of Tenant, and/or any entity resulting from a merger or
consolidation involving Tenant, with Landlord’s prior written consent which shall not be
unreasonably withheld or delayed. Tenant agrees not to assign this Lease or sublet or license the
Premises or any part thereof, whether by voluntary act, operation of law, or otherwise, without the
specific prior written consent of Landlord in each instance, which consent shall not be
unreasonably withheld or delayed. No assignment of this Lease by Tenant, nor any sublease of the
Premises, whether or not consented to by Landlord, will release Tenant of any obligations under
this Lease. Landlord’s interest hereunder will be freely assignable, but Landlord will provide
Tenant with notice of any such assignment.

21. RISK OF LOSS. Tenant assumes the risk of loss or damage to any personal property used
or stored by it in or at the Premises caused by fire, water, theft, war, vermin, flood, or any
other casualty or peril normally included in multi-peril all-risk insurance and agrees not to look
to Landlord for indemnification for the same and hereby releases Landlord from any liability for
any such loss or damage, except to the extent such loss was caused or contributed to by the
negligence, recklessness or intentional act or omission of Landlord.

22. LOSS BY CASUALTY. If the Premises or Building are damaged or destroyed by fire or
other casualty rendering the Premises wholly untenantable, Landlord or Tenant will have the right
to terminate this Lease, provided written notice thereof is given to the other within sixty (60)
days after such damage or destruction and the Rent shall be abated for the unexpired portion of the
Term of the Lease from the date of such damage or destruction. If a portion of the Premises is
damaged and Tenant reasonably determines that it will take more than sixty (60) days to restore the
Premises, Tenant may terminate the Lease upon giving Landlord written notice within thirty (30)
days after the occurrence of such damage. If all or a portion of the Premises is damaged by fire
or other casualty, and neither party elects to terminate this Lease, Landlord shall, at its
expense, proceed with reasonable diligence to restore the Premises to as near the condition which
existed immediately prior to such damage or destruction as reasonably possible and the Rent shall
abate during such period of time as the Premises are untenantable. Should only a portion of the
Premises be untenantable and Tenant continues to occupy and conduct business in the Premises in
part, Tenant will be entitled to a partial abatement of Rent in an amount determined based upon the
proportion that the untenantable portion of the Premises bears to the entire Premises. Landlord
will have no obligation to repair or replace fixtures or personal property owned by Tenant.

23. PROPERTY INSURANCE. Landlord will at all times during the Term of this Lease maintain
a policy or policies of insurance insuring the Building against loss or damage by fire, explosion
or other hazards and contingencies and flood if required, or any other casualty or peril normally
included in multi-peril, all-risk insurance for an amount deemed reasonably necessary by Landlord
based upon typical coverages for comparable properties, which insurance will be subject to the
rights of the mortgagee of the Property, if any, under a standard mortgagee’s clause. Landlord
will not be obligated in any way or manner to insure the personal property of Tenant or other
property which Tenant may have upon or within the Premises, any fixtures installed by or paid for
by Tenant upon or within the Premises, or any additional improvements which Tenant may construct on
the Premises. Landlord assumes the risk of loss or damage to the Building and Property (but not to
the personal property of Tenant, or fixtures or improvements made or paid for by Tenant, as
hereinabove provided) caused by fire, water, theft, war, vermin, flood, or any other casualty or
peril normally included in multi-peril, all-risk insurance and agrees

7

 

not to look to Tenant for indemnification for the same and hereby releases Tenant from any
liability for any such loss or damages, except to the extent such loss or damages were caused or
contributed to by the gross negligence, recklessness or intentional act or omission of Tenant.

24. PUBLIC LIABILITY INSURANCE. Tenant will, during the Term hereof, keep in full force and
effect, at its expense, a policy or policies of commercial general liability insurance with respect
to the Premises and the business of Tenant, under policies and with insurance carriers reasonably
acceptable to Landlord, in which Tenant will be named insured and Landlord will be covered as an
additional insured under such reasonable policy limits as are required by Landlord, which limits
will in no event be less than $1,000,000 combined single limit. Such policy or policies provided
under this paragraph will provide that thirty (30) days’ written notice must be given to Landlord
prior to cancellation thereof. Tenant will furnish evidence reasonably satisfactory to Landlord
prior to the commencement date of this Lease, and at such other times as Landlord reasonably
requests, but at least annually on the anniversary of the commencement date of the term of this
Lease, that all required coverage is in full force and effect.

25. WAIVER OF SUBROGATION. Anything in this Lease to the contrary notwithstanding, Landlord
and Tenant hereby waive and release each other from any and all rights of recovery, claim, action
or cause of action, against each other, their agents, officers and employees for any loss or damage
that may occur to the Premises, improvements to the Property of which the Premises are a part, or
personal property (building contents) located on the Property, by reason of fire, the elements, or
any other casualties covered by extended coverage property insurance, regardless of cause of
origin, including negligence of Landlord or Tenant and their agents, officers and employees to the
extent of any insurance company which has issued policies of fire and extended coverage insurance
to Landlord or Tenant, written notice of the terms of the mutual waiver as contained in this
paragraph, and to have the insurance policies properly endorsed, in order to verify the acceptance
by the insurance companies of the waivers of subrogation contained.

26. CONDEMNATION. If, during the Term of this Lease, all or a substantial part of the
Premises are taken or condemned for any public purpose, or a deed is given by Landlord in lieu
thereof, and the taking would prevent or materially interfere with the use of the Premises for the
purpose for which they are being used, this Lease will terminate and the Rent will be abated during
the unexpired portion of this Lease effective on the date physical possession is taken by the
condemning authority. Tenant will have no claim to any condemnation award of Landlord, nor will it
have the right to claim separately for any value it may have attributed to its leasehold interest
in the Premises, except that Tenant may apply for any award to which it may be entitled for moving
expenses and trade fixtures only.

27. EVENTS OF DEFAULT. The occurrence of any of the following events shall be deemed an
event of default hereunder (“Events of Default”);

     (a) Tenant shall fail to pay when due any monthly installment of Rent or additional rent as
herein provided, whether or not legal or formal demand has been made therefor, and such default
continues for ten (10) days after written notice from Landlord to Tenant.

     (b) Tenant shall permit the filing of a lien against the Premises or the Property which is not
discharged or contested within forty five (45) days of filing pursuant to Section 16.

     (c) Tenant shall fail to maintain insurance required pursuant to Section 24.

     (d) Tenant shall abandon or vacate the Premises.

8

 

     (e) Tenant shall become insolvent or commit an act of bankruptcy or become bankrupt or take
the benefit of any statute that may be in force for bankrupt or insolvent debtors or become
involved in voluntary or involuntary winding up proceedings or a receiver shall be appointed for
the business, property, affairs or revenues of Tenant.

     (f) Tenant shall violate the terms of this Lease pertaining to the use of the Premises.

     (g) Tenant shall violate or fail to perform any of the other material conditions, covenants or
agreements contained herein and such default is not cured within thirty (30) days of receipt of
notice thereof from Landlord, provided, however if such default cannot be reasonably cured within
such thirty (30) day period, then Tenant shall not be in default if Tenant shall have commenced to
cure the default within such thirty (30) day period and diligently proceeds to cure the default
within forty-five (45) days from receipt of notice.

28. DEFAULT REMEDIES. If an Event of Default occurs pursuant to Paragraph 27, time being
of the essence, Landlord may resort to any and all legal remedies or combination of remedies which
Landlord may desire to assert, including but not limited to one or more of the following: (a) enter
the Premises and remove all persons and property therefrom, with or without terminating this Lease,
(b) declare the Lease at an end and terminated, (c) sue for the Rent due and to become due under
the Lease, less any Rent received by Landlord from reletting of the Premises, and for any damages
sustained by Landlord, and (d) continue the Lease in effect and relet the Premises on such terms
and conditions as Landlord may deem advisable with Tenant remaining liable for the monthly Rent
plus the reasonable cost of obtaining possession of the Premises and of any repairs necessary to
prepare the Premises for reletting, less the rentals received from such reletting, if any. No
action of Landlord will be construed as an election to terminate the Lease unless written notice of
such intention is given to Tenant. Tenant agrees to pay as additional rent all reasonable
attorneys’ fees and other costs and expenses incurred by Landlord in enforcing any of Tenant’s
obligations under this Lease.

29. LANDLORD’S RIGHT TO CURE DEFAULTS. If Tenant should default in the making of any
payment or in the performance of any act herein required to be made or done by Tenant, Landlord
may, at its option, make such payment or perform such act. Should Landlord so act, all expenses
thereof, with interest thereon as determined herein, will be reimbursed by Tenant to Landlord and
will constitute additional rent due and payable with the next monthly installment of Rent. Landlord
shall not be entitled to declare a default based upon Tenant’s failure to pay or failure to act, if
Landlord has paid or performed such act on behalf of Tenant during any cure period granted to
Tenant hereunder. However, Tenant’s failure to timely reimburse Landlord for such payment or act
shall constitute an Event of Default under this Lease.

30. SURRENDER. On the last day of the Term of this Lease, or the earlier termination
hereof, Tenant will peaceably surrender the Premises in good condition and repair consistent with
Tenant’s duty to make repairs as provided for in this Lease, ordinary wear and tear and casualty
loss excepted. On or before said last day, Tenant will, at its expense, remove all of Tenant’s
personal property, equipment and fixtures it is entitled to remove from the Premises, repairing any
damage caused thereby, and any property not removed will be deemed abandoned. If the Premises are
not surrendered at the end of the Term of this Lease or the earlier termination thereof, Tenant
will indemnify Landlord against loss or liability resulting from delay by Tenant in so surrendering
the Premises, including, without limitation, claims made by any succeeding tenant founded on such
delay or losses incurred by Landlord due to such claims or the loss of a prospective Tenant. Tenant
will promptly surrender all keys for the Premises to Landlord at the place then fixed for payment
of Rent and will inform Landlord of combinations on any locks and safes on the Premises.

9

 

31. WAIVER. Failure of Landlord to declare any default immediately upon occurrence
thereof, or delay in taking any action in connection therewith, will not waive such default, but
Landlord shall have the right to declare any such default at any time thereafter.

32. HOLDING OVER. If, without Landlord’s written consent, Tenant remains in possession of
the Premises after the expiration or other termination of the Lease, Tenant shall be deemed to be
occupying the Premises upon a tenancy at sufferance only, at a monthly rental equal to one hundred
fifty per cent (150%) the monthly Rent otherwise payable hereunder on the last day of the term of
this Lease immediately prior to the expiration or termination of such term. Such tenancy at
sufferance may be terminated by Landlord at any time in accordance with Minnesota law, or in the
absence of any such Minnesota law governing such circumstance, then by notice to Tenant thirty (30)
days in advance of such termination. Any month-to-month tenancy or tenancy at sufferance hereunder
will be subject to all other terms and conditions of the Lease and nothing contained in this
Section 32 will be construed to limit or impair any of Landlord’s rights of reentry or eviction or
constitute a waiver thereof.

33. SUBORDINATION TO LEASE AND MORTGAGE. Tenant agrees that this Lease will be subordinate
to any mortgage that may now or hereafter be placed upon the Building, the Property or any part
thereof, and to any and all advances to be made thereunder, and to the interest thereon, and all
renewals, replacements, and extensions thereof, provide however such mortgagee agrees to not
disturb Tenant’s possession of the Premises so long as Tenant is not in default hereunder. In
confirmation of such subordination, Tenant will promptly execute and deliver any instrument, in
recordable form, as is reasonably required or requested by Landlord’s mortgagee, including but not
limited to a subordination, non-disturbance and attornment agreement in which Tenant agrees to
attorn to such mortgagee in the event of foreclosure provided Tenant’s rights under the Lease are
not disturbed.

34. ESTOPPEL CERTIFICATES. The parties agree to promptly execute upon request of the other
party an estoppel certificate addressed to any mortgagee, purchaser, assignee or other third party
certifying as to facts related to this Lease in a form reasonably acceptable to the requesting
party and Tenant will agree to any such notice provisions as may be reasonably required by Landlord
or Landlord’s mortgagee.

35. ENTIRE AGREEMENT. The Lease embodies the entire agreement between the parties as to
subject hereof. There are no promises, terms, conditions or obligations referring to the subject
matter, other than those contained herein. There may be no modifications to this Lease, except in
writing, executed with the same formalities as this Lease.

36. CAPTIONS. The captions are inserted only as a matter of convenience and for reference
and in no way define, limit to describe the scope of this sublease nor the intent of any provision
thereof.

37. SUCCESSORS AND ASSIGNS. The covenants and conditions herein contained will, subject to
the provisions of Section 20 hereof, apply to and bind the successors, executors, administrators
and assigns of all the parties hereto.

38. NOTICES. Whenever in this Lease it shall be required or permitted that notice or demand
be given or served by either party to this Lease to or on the other, such notice or demand will be
given or served and shall not be deemed to have been given or served unless in writing and
forwarded by certified or registered mail, return receipt requested, or sent by overnight express
courier, or sent by facsimile and followed by overnight express delivery, addressed as follows:

10

 

	 	 	 	 	 
	 

	 	To Landlord:
	 	CHS Inc.
	 

	 	 	 	Attn: Roger Tschida
	 

	 	 	 	5500 Cenex Drive
	 

	 	 	 	Inver Grove Heights, MN 55077
	 

	 	 	 	Facsimile: 651-355-6352
	 
	 	 	 	 
	 

	 	Copy to:
	 	CHS Inc.
	 

	 	 	 	Attn: Legal Department
	 

	 	 	 	5500 Cenex Drive
	 

	 	 	 	Inver Grove Heights, MN 55077
	 

	 	 	 	Facsimile: 651-355-4554
	 
	 	 	 	 
	 

	 	To Tenant:
	 	US BioEnergy Corporation
	 

	 	 	 	Attn. Greg Schlicht
	 

	 	 	 	5500 Cenex Drive, Mailstop 175
	 

	 	 	 	Inver Grove Heights, MN 55077
	 

	 	 	 	Facsimile: 651-355-8301

Such notices may be changed from time to time by either party by serving notices as above provided.

     39. TENANT IMPROVEMENTS.

     (a) Landlord and Tenant shall meet with Landlord’s designers and agree upon a set of plans and
specifications and/or construction drawings (collectively the “Plans and Specifications”), covering
all work to be performed by Landlord in constructing Tenant improvements within the Premises (the
“Tenant Improvements”). Tenant shall have five (5) days after receipt of the Plans and
Specifications in which to review and to give to Landlord written notice of its approval of the
Plans and Specifications or its requested changes to the Plans and Specifications. Tenant shall
have no right to request any changes to the Plans and Specifications which would either materially
alter the Premises or make any exterior or structural changes to the Premises or the Building. If
Tenant fails to approve or request changes to the Plans and Specifications by five (5) days after
its receipt thereof, then Tenant shall be deemed to have approved the Plans and Specifications and
the same shall thereupon be final. If Tenant requests any changes to the Plans and Specifications,
Landlord shall make those changes which are reasonably requested by Tenant. Tenant may not
thereafter disapprove the revised portions of the Plans and Specifications unless Landlord has
unreasonably failed to incorporate Tenant’s requests and, subject to the foregoing, the Plans and
Specifications, as modified by said revisions, shall be deemed to be final upon the submission of
said revisions to Tenant. Tenant shall at all times in its review of the Plans and Specifications,
and of any revisions thereto, act reasonably and in good faith. After the Plans and Specifications
have been made or deemed final pursuant to the procedures set forth hereinabove, any subsequent
changes to the Plans and Specifications requested by Tenant shall be at Tenant’s sole cost and
expense and subject to Landlord’s written approval, which approval shall not be unreasonably
withheld, conditioned or delayed.

     (b) Landlord shall pay costs associated with the construction of the Tenant Improvements in an
amount equal to $10.50 per useable square foot of space in the Premises based on 8606 useable
square feet, for a maximum total amount of $90,363 (the “Improvement Allowance”). If the cost of
constructing the Tenant Improvements exceeds the Improvement Allowance, the sums spent by Landlord
in excess of

11

 

the Improvement Allowance shall be considered additional rent, to be paid by Tenant to
Landlord with thirty (30) days upon receipt of Landlord’s invoice therefore. The Improvement
Allowance must be spent within the first 12 months of the Lease or whatever is outstanding shall be
forfeited.

     (c) Landlord shall use reasonable speed and diligence to substantially complete construction
of the Tenant Improvements in a good and workmanlike manner and to have the Premises ready for
occupancy on or before June 1, 2006 as to Parcel A and on or before November 1, 2006 as to Parcel
C. No liability whatsoever shall arise or accrue against Landlord by reason of its failure to
deliver or afford possession of the Premises unless it is a direct result of Landlord’s negligence
or willful misconduct. Such failure to deliver possession of the Premises to Tenant by the dates
herein stated shall automatically postpone the date of commencement of the Initial Term of this
Lease and payment of Rent and shall extend the termination date by the corresponding number of
days.

     (d) The costs of constructing the Tenant Improvements shall include, but are not limited to,
the actual costs of construction (including the overhead and profit of Landlord’s contractors),
construction management expenses, the cost of all permits and approvals, and all design costs and
other charges of Landlord’s designers, architects and engineers in the review and preparation of
the Plans and Specifications.

IN WITNESS WHEREOF, the Landlord and Tenant have duly executed these presents in proper legal
manner.

	 	 	 	 	 	 	 	 	 	 	 
	CHS INC.	 	 	 	US BIO ENERGY CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Patrick M. Kluempke	 	 	 	By:	 	/s/ Brian Thome	 	 
	 

	 	 

Patrick M. Kluempke
	 	 	 	 	 	 

Brian Thome
	 	 
	Its:

	 	Executive Vice President
	 	 	 	Its:
	 	President	 	 

12

 

 Exhibit
A

 

 

Exhibit
B

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