Document:

exv10w24

 

Exhibit
10.24

US BioEnergy

April 30, 2005

Jeff Roskam

2868 N. Ridge Road

Wichita, KS 67205

Dear Jeff:

The purpose of this Letter Agreement is to set forth our agreement in regard to your severance
arrangement. Although your employment is “at will” and may be terminated by you or United Bio
Energy, LLC (“UBE”) at any time for any reason, UBE has agreed to provide you with a particular
severance pay benefit in the event UBE terminates your employment without Cause or, following a
Change in Control, your employment is terminated without Cause, or by you for Good Reason.

Terms not otherwise defined in this letter (the “Letter Agreement”) shall have the meaning given
such terms on Schedule 1, which is incorporated herein by reference.

Specifically, we have agreed as follows:

	 	1.	 	Severance.

	 	a.	 	If your employment is terminated or resignation is requested by UBE
without Cause, UBE will pay you 150% of your annual base salary
(excluding bonus) in effect as of the Date of Termination in a single cash
sum within 30 days of the date of your termination. Additionally, UBE
will pay for the reasonable cost of out-placement services or support.
You will be eligible for continuation of your group insurance coverage
under COBRA, providing you elect to do so, remain eligible and continue
to pay the premiums promptly. We will send you information concerning
your COBRA continuation coverage following your termination.
	 
	 	b.	 	If you resign, if UBE terminates your employment for Cause or if your
employment terminates as a result of your death or permanent disability,
you shall be entitled to receive your base salary accrued but unpaid as of
the date of termination, but shall not be entitled to receive any salary
continuation benefit. If your employment terminates by reason of your
disability, you will be eligible for continuation of your group insurance
coverage under COBRA, providing you elect to do so, you remain
eligible and you continue to pay the premiums promptly. We will send
you information concerning your COBRA continuation coverage
following your termination.
	 
	 	c.	 	In case of termination without Cause, you shall be entitled to
receive the
amounts due you under Section 1 (a) only upon your execution and

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US BioEnergy

delivery to UBE of a general release in the form of Exhibit A attached to this
Letter Agreement.

d. You will have the right to reasonable access to your personnel file under the
same policy as defined in UBE’s personnel handbook.

	 	2.	 	Change in Control.

	 	a.	 	If a Change in Control shall occur and your employment is terminated or
resignation requested by UBE without Cause or by you for Good Reason,
UBE will pay you 150% of your annual base salary (excluding bonus) in
effect as of the date of termination in a single cash sum within 30 days of
the date of your termination. Additionally, UBE will pay for the
reasonable cost of out-placement services or support. You will be
eligible for continuation of your group insurance coverage under
COBRA, providing you elect to do so, you remain eligible and you
continue to pay the premiums promptly. We will send you information
concerning your COBRA continuation coverage following your
termination.
	 
	 	b.	 	Any payments under Section 2(a) are in lieu of and will offset the amount
of any severance to which you are entitled under Section 1. Additionally,
immediately prior to a Change in Control, you will become vested in all
stock options that been granted to you and you will be entitled to exercise
all rights to receive all benefits you may have under any and all US
BioEnergy stock purchase and stock option plans.
	 
	 	c.	 	In the event that the vesting of the options, together with all other
payments and the value of any benefit received or to be received by you
would result in all or a portion of such payment being subject to excise
tax under Section 4999 of the Code, then your payment shall be either
(A) the full payment or (B) such lesser amount that would result in no
portion of the payment being subject to excise tax under Section 4999 of
the Code (the “Excise Tax”), whichever of the foregoing amounts, taking
into account the applicable Federal, state, and local employment taxes,
income taxes, and the Excise Tax, results in the receipt by you, on an
after-tax basis, of the greatest amount of the payment notwithstanding
that all or some portion of the payment may be taxable under 4999 of the
Code.

	 	3.	 	Tax Withholding. You agree that UBE may withhold from any payments to you
under this Letter Agreement (and forward to the appropriate taxing authority) any
taxes required to be withheld under applicable law.

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US BioEnergy

	 	4.	 	Remedies. In addition to any other remedies UBE has, UBE will discontinue
payments to you of any amounts under this Letter Agreement if after written
notice with 10 days to cure you continue to violate any of your obligations under
this Letter Agreement. Even if UBE ceases payments pursuant to this Section,
your release of claims against UBE will remain valid and fully enforceable in
consideration of the benefits that you received prior to your breach of this Letter
Agreement. All disputes or claims arising out of or in any way related to this
Letter Agreement, including the making of this Letter Agreement, shall be
submitted to and determined exclusively by final and binding arbitration of the
American Arbitration Association (“AAA”) using the National Rules for the
Resolution of Employment Disputes, unless such rules are inconsistent with the
provisions of this Letter Agreement, Arbitration proceedings may be initiated by
either of us upon notice to the other and to the AAA. Unless we agree on the
person or persons to serve as arbitrators within thirty (30) days of the AAA’s
delivery of the list of proposed arbitrators, then, at the request of either of us,
three neutral arbitrators selected by the AAA shall conduct arbitrations. Each of
us will be responsible for the fees and expenses of our own legal counsel, the
respective experts retained by us and the respective witnesses we call, but the
fees and expenses of the arbitrators will be shared by us equally. All arbitrations
will be held in Brookings, South Dakota. The arbitrators’ award must include
findings of fact and conclusions of law showing the legal and factual bases for
the arbitrators’ decision. The arbitrators’ award may be entered by any court of
competent jurisdiction. Notwithstanding the foregoing, we agree that, in addition
to any remedies at law, either party is entitled as a matter of right to injunctive
relief from any court of competent jurisdiction to restrain the other party from
violating this Letter Agreement pending a final determination by arbitration.
	 
	 	5.	 	Cooperation. For a reasonable period after termination of employment, you
agree to be available to, cooperate with and assist UBE as it may reasonably
request in connection with any litigation or other legal proceeding, claims or
potential claims or any internal or governmental investigation with respect to
matters about which you have or may have knowledge as a result of your
employment with UBE. In the event UBE requests your assistance in any
litigation or regulatory matter after your employment terminates, UBE will pay
or reimburse you for any out-of-pocket costs and for any time you spend on such
matter as requested by UBE, at a daily rate based on your annual base salary at
the time of termination.
	 
	 	6.	 	Successors. This Letter Agreement shall not be assignable, in whole or in part,
by you. This Letter Agreement shall be binding upon and inure to the benefit of
UBE and its successors and assigns and upon any person acquiring, by merger,
consolidation, purchase of assets or otherwise, all or substantially all of the assets

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US BioEnergy

	 	 	 	and business of UBE, and the successor shall be substituted for UBE under this
Letter Agreement.
	 
	 	7.	 	Entire Agreement. This Letter Agreement constitutes our entire
agreement and supersedes all prior discussions, understandings and agreements with
respect to the severance benefits that UBE has agreed to provide to you. This Letter
Agreement shall be governed and construed by the laws of the State of South Dakota
and may be amended only in writing signed by both of us. You consent to the personal
jurisdiction of the State of South Dakota and you also waive any argument that such a
forum is not convenient, and agree that any litigation and or arbitration relating to
this Letter Agreement will be venued in Sioux Falls, South Dakota.

If this Letter Agreement accurately sets forth our agreement and understanding in regard to
these matters, please sign this Letter Agreement where indicated below and return the executed
letter to me for our files. A separate copy is enclosed for your records.

	 	 	 	 	 	 	 
	 	 	US BIOENERGY CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Gordon W. Ommen	 	 
	 

	 	 	 	 

Gordon W. Ommen, CEO and President ________
	 	 

	 	 	 
	Accepted and Agreed:
	 	 
	 
	 	 
	/s/ Jeffrey Roskam
	 	 
	 

JEFFREY ROSKAM

	 	 

III Main Avenue, Suite 200, Brookings, SD 57006     tele (605) 696-3150      fax (605) 696-3153      www.usbioenergy.net       info@usbioenergy.net

 

 

US BioEnergy

Schedule 1

Definitions

“Good Cause” shall mean one or more of the following:

	 	a.	 	willful and premeditated failure or refusal of you to render services to UBE;
	 
	 	b.	 	the commission by you of a willful breach of fiduciary duty to UBE or an
intentional and knowing fraud against UBE or any customer, supplier, client,
agent or employee thereof;
	 
	 	c.	 	the engaging by you in intentional or willful misconduct that violates a material
provision of any written policy, code of conduct or directive of the Board of
Directors of US BioEnergy or that could result in an enforcement action or
sanctions against UBE or you by any state or federal agency or department or any
foreign government or agency having jurisdiction over UBE or you (it being
understood that mere negligence by you in the performance of your duties is not
Good Cause);
	 
	 	d.	 	the breach by you of any provision of this Letter Agreement;
	 
	 	e.	 	the commission of a felony by you; or
	 
	 	f.	 	prior to a Change in Control, your unsatisfactory performance after specific notice
by UBE of your performance deficiencies, description of expectations and a 30
calendar day opportunity to cure.

“Change in Control” shall mean:

	 	a.	 	Acquisition of Stock of US BioEnergy. Any “person” (as such term is used in
Section 13(d) and 4(d) of the Securities Exchange Act of 1934, as amended (“Exchange
Act”)), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly of securities representing 50% or more of the combined
voting power of US BioEnergy’s then outstanding voting securities, but shall not include

	 	i.	 	any acquisition of voting securities of US BioEnergy directly from US
BioEnergy other than in connection with a transaction described in (c) below;
	 
	 	ii.	 	any acquisition or beneficial ownership by US BioEnergy or any
subsidiary;
	 
	 	iii.	 	any acquisition or beneficial ownership by any employee benefit plan
(or related trust) sponsored or maintained by US BioEnergy or one or more of its
subsidiaries;

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US BioEnergy

	 	iv.	 	any acquisition of beneficial ownership by any person with respect to
which, immediately following such acquisition, more than 50% of the combined
voting power of US BioEnergy’s then outstanding voting securities of US
BioEnergy is then beneficially owned, directly or indirectly, by all or
substantially all of the persons who beneficially owned voting securities of US
BioEnergy immediately prior to such acquisition in substantially the same
proportions as their ownership of such voting securities, as the case may be,
immediately prior to such acquisition;

	 	b.	 	Change in Board of Directors. A majority of the members of the Board of US
BioEnergy shall not be Continuing Directors. “Continuing Directors” means
individuals who, on the date hereof, are directors of BioEnergy; individuals
elected as directors of BioEnergy subsequent to the date hereof recommended for
approval by shareholders by US BioEnergy or for whose election proxies shall
have been solicited by BioEnergy; or any individual elected or appointed by the
Board to fill vacancies on the Board caused by death or resignation (but not by
removal) or to fill newly-created directorships.
	 
	 	c.	 	Merger or Consolidation. Approval by the shareholders of US BioEnergy of a
reorganization, merger or consolidation of US BioEnergy or a statutory exchange
of outstanding voting securities of US BioEnergy, unless, immediately following
such reorganization, merger, consolidation or exchange, all or substantially all of
the persons who were the beneficial owners, respectively, of voting securities of
US BioEnergy immediately prior to such reorganization, merger, consolidation or
exchange beneficially own, directly or indirectly, more than 50% of, respectively,
the combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors and the then outstanding shares of
common stock, as the case may be, of the corporation resulting from such
reorganization, merger, consolidation or exchange in substantially the same
proportions as their ownership immediately prior to such reorganization, merger,
consolidation or exchange, of the voting securities of US BioEnergy, as the case
may be;
	 
	 	d.	 	Liquidation or Sale of Assets. Approval by the shareholders of US BioEnergy of
(i) a complete liquidation or dissolution of US BioEnergy or (ii) the sale or other
disposition of all or substantially all of the assets of US BioEnergy (in one or a
series of transactions), other than to a corporation with respect to which,
immediately following such sale or other disposition, more than 50% of,
respectively, the combined voting power of the then outstanding voting securities
of such corporation entitled to vote generally in the election of directors and the
then outstanding shares of common stock of such corporation is then beneficially
owned, directly or indirectly, by all or substantially all of the persons who were
the beneficial owners, respectively, of the voting securities of US BioEnergy
immediately prior to such sale or other disposition in substantially the same
proportions as their beneficial ownership immediately prior to such sale or other
disposition, of the voting securities of US Bio Energy, as the case may be

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US BioEnergy

“Good Reason” shall exist if:

	 	a.	 	US BioEnergy has materially breached any of the terms of this Letter Agreement;
	 
	 	b.	 	you are assigned duties which are materially inconsistent with your position,
duties and responsibilities;
	 
	 	c.	 	your annual base salary is reduced below the amount in effect immediately prior
to the Change in Control;
	 
	 	d.	 	Bankruptcy of US BioEnergy;

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US BioEnergy

RELEASE AGREEMENT

EXHIBIT A

     In consideration of the benefits to be afforded to the undersigned under that certain
Executive Severance Agreement dated                     , 2005 between UNITED BIO ENERGY,
LLC, (“UBE”) and the undersigned (the “Severance Agreement”), the undersigned agrees to do the
following things:

	1.	 	The undersigned hereby releases UBE, its past and present affiliates, and its and
their past and present officers, directors, agents, shareholders, employees, attorneys,
insurers and indemnitors (collectively, the “Releasees”) from any and all claims and causes
of action, known or unknown, which the undersigned may have against any and all of them.
Through this release, the undersigned extinguishes all causes of action against the Releasees
occurring up to the date on which the undersigned signs this release agreement, including but
not limited to any contract, compensation or benefit claims; intentional infliction of
emotional distress, defamation or any other tort claims; and all claims arising from any
federal, state or municipal law or ordinance, including the you Retirement Income Security
Act and the Family and Medical Leave Act. This release extinguishes any potential claims of
employment discrimination arising from the undersigned’s employment with and termination of
employment with or resignation from UBE, including specifically any claims under the Human
Relations Act, the Americans With Disabilities Act, Title VII of the Civil
Rights Act of 1964, the Older Workers Benefit Protection Act, and the Age
Discrimination in Employment Act. This release does not extinguish any claims: (i) that
arise against UBE after the undersigned signs this release agreement; (ii) arising under
this release agreement; (iii) to any benefits to which the undersigned is otherwise
entitled under any UBE benefit plan as of the date of this release agreement; (iv) related
to workers’ compensation; (v) arising under unemployment compensation law; or (vi) to the
right to indemnification under UBE bylaws or insurance. The undersigned certifies that he
(a) has not filed any claims, complaints or other actions against any Releasee; and (b) is
hereby waiving any right to recover from any Releasee under any lawsuit or charge filed by
the undersigned or any federal, state or local agency on the undersigned’s behalf based
upon any event occurring up to the date on which the undersigned signs this release
agreement. The undersigned acknowledges that he has been advised by UBE to review his
rights and responsibilities under this release agreement with his own lawyer.
	 
	 	 	The undersigned has 21 days to review and consider this release agreement. If the
undersigned signs this release agreement before 21 days have elapsed from the date on which
the undersigned first receives it, then the undersigned will be voluntarily waiving his
right to the full 21 day review period. The undersigned also has the right to rescind this
release agreement within 7 calendar days of the date upon which the undersigned signs it.
The undersigned understands that if the undersigned desires to rescind this release
agreement, the undersigned must put the rescission in writing and

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US BioEnergy

	 	 	deliver it to Chief Executive Officer, US BioEnergy Corporation, 111 Main Avenue,
Brookings, South Dakota 57006 by hand or by mail within 7 calendar days of the date on
which the undersigned signs this release agreement. If the undersigned delivers the
rescission by mail, it must be postmarked within 7 calendar days of the date on which the
undersigned signs this release agreement and sent by certified mail, return receipt
requested, If the undersigned rescinds this release agreement, all of UBE’s obligations
to the undersigned under the Severence Agreement, other than payment of accrued unused
paid time off, will immediately cease and UBE will owe the undersigned nothing under the
Severence Agreement.
	 
	2.	 	At UBE’s specific request and at mutually convenient times while the undersigned is
receiving payments under the Severence Agreement, the undersigned agrees to
consult with UBE additional compensation as outlined in the Letter Agreement
Section 5, with respect to a limited amount of transitional UBE business matters.
The undersigned also agrees to cooperate with UBE in any current or future claims or
lawsuits involving UBE where the undersigned has knowledge of the underlying
facts, and UBE will pay or reimburse the undersigned for any pre-approved travel or
similar expenses related to any such litigation and for such other expenses as agreed
to by UBE. In addition, the undersigned agrees that he will not voluntarily aid,
assist, or cooperate with any claimants or plaintiffs or their attorneys or agents in any
claims or lawsuits commenced in the future against UBE, provided, however, that nothing
in this release agreement will be construed to prevent the undersigned from testifying
truthfully as required by valid legal or administrative process.
	 
	3.	 	The undersigned agrees that he will continue to not speak negatively and with respect
towards UBE and US BioEnergy Corporation.
	 
	4.	 	The undersigned agrees to maintain the confidentiality of the terms of this release
agreement and the terms of the Severence Agreement related hereto, to the extent not
publicly disclosed by UBE, and agrees not to disclose such terms to anyone other
than his family members, tax and legal advisors or as otherwise required by law.

     This release agreement shall not in any way be construed as an admission of liability by UBE
or as an admission that UBE has acted wrongfully with respect to the undersigned. UBE specifically
denies and disclaims any such liability or wrongful acts.

     The undersigned understands that if he violates any obligation that he has to UBE under this
release agreement or the Severence Agreement, all payments and benefits to him hereunder will
immediately cease. In such event, the undersigned’s release of his claims shall remain fully in
effect in consideration of the payments and benefits that the undersigned received prior to any
such breach.

     The undersigned hereby declares that he has entered into this release agreement
voluntarily, without coercion, duress, or reliance on any representations by any UBE
employee, agent or lawyer.

III Main Avenue, Suite 200, Brookings, SD 57006     tele (605) 696-3150      fax (605) 696-3153      www.usbioenergy.net       info@usbioenergy.net

 

 

US BioEnergy

     Acknowledged and agreed to, with declarations confirmed, this                    day of                    , 200_.

	 	 	 	 	 
	 

	 	 

          Jeffrey Roskam
	 	 

III Main Avenue, Suite 200, Brookings, SD 57006     tele (605) 696-3150      fax (605) 696-3153      www.usbioenergy.net       info@usbioenergy.netexv10w25

 

Exhibit 10.25

CONSULTING AGREEMENT

     THIS AGREEMENT is made effective as of April 30, 2005, by and between US BioEnergy
Corporation, a South Dakota corporation (the “Company”), and David VanderGriend (“Consultant”).

     WHEREAS, Consultant has agreed to perform services for the Company and to that end, the
Company and Consultant have agreed upon the terms and conditions of such consultancy as embodied in
this Agreement.

     NOW, THEREFORE, in consideration of the premises and the respective undertakings of the
Company and Consultant set forth below, the Company and Consultant agree as follows:

ARTICLE I

SCOPE OF WORK

     1.1 Engagement. Upon the terms and conditions set forth in this Agreement, the Company
hereby engages Consultant to perform the Services, as defined below, and Consultant hereby accepts
such engagement. The Services shall mean, and be limited to, the rendering of advice by Consultant
to the Company regarding technology at the Company’s proposed or future ethanol plants.
Notwithstanding the foregoing, the Company acknowledges that Consultant is an employee of ICM,
Inc., a Kansas corporation (“ICM”), who is in the business of designing and constructing ethanol
plants and the Company agrees that nothing in this Consulting Agreement shall be construed or
interpreted as requiring Consultant to disclose any information or technology of ICM or any other
person or entity.

     1.2 Scope of Work. Consultant shall provide the Services to the Company from time to
time over the duration of this Agreement as reasonably required by the Company. The Company shall
use reasonable efforts to notify the Consultant as soon as practicable as to when the Company
desires the Services. The Consultant will perform the Services either at a location the Company
shall specify or at a location the Consultant shall specify, as the circumstances require. However,
the Consultant will not deny reasonable and infrequent requests to provide Services in other
locations within the United States as requested from time to time by the Company.

     1.3 Services for Others. Consultant may provide services that are identical or similar
to the Services for any other person, entity or organization including, without limitation, ICM.
Nothing in this Agreement shall be construed or interpreted as prohibiting or otherwise restricting
the Consultant from engaging in the same or any similar business as the Company in any manner
whatsoever, including without limitation, as a proprietor, partner, member, investor, stockholder,
director, officer, employee, consultant, independent contractor, or otherwise.

 

 

ARTICLE 2

INDEPENDENT CONTRACTOR

     2.1 Status of Independent Contractor. Consultant is an independent contractor and not
an employee, partner, or co-venturer of, or in any other service relationship with, the Company,
and the manner in which Consultant’s services are rendered shall be within Consultant’s sole
control and discretion.

     2.2 Compliance With Laws; Authority. In the discharge of his duties, Consultant shall
comply with all of applicable laws. Consultant does not have any authorization to speak for,
represent, or obligate the Company in any manner without the prior written authorization from the
Board. Consultant shall not hold himself out as having such authority to any other person.
Consultant shall not enter into any agreement or incur any obligations on the Company’s behalf, or
commit the Company in any manner without the Company’s prior written consent.

ARTICLE 3

COMPENSATION AND BENEFITS

     3.1 Compensation, In consideration of the Services and in lieu of any cash or
compensation of any other kind for the Services, effective as of the date of this Agreement the
Company shall issue to Consultant the warrant (the “Warrant”) to purchase 100,000 shares of the
Company’s Class A common stock (the “USB Shares”) attached hereto as Exhibit A.

     3.2 Representations as to Warrant. Consultant is acquiring the Warrant and the USB
Shares for the purpose of investment and not with a view to or for sale in connection with any
distribution thereof. Consultant (a) is able to bear the loss of his entire investment in the
Warrant and the USB Shares without any material adverse effect on his financial condition, and (b)
has such knowledge and experience in financial and business matters that he is capable of
evaluating the merits and risks of the investment to be made by him in the Warrant and the USB
Shares pursuant to this Agreement. Consultant will notify the Company in writing before selling or
otherwise disposing of the Warrant or the USB Shares, describing briefly the nature of any such
sale or other disposition, and no such sale or other disposition shall be made unless and until (a)
the Company has received an opinion of counsel reasonably satisfactory to the Company that such
proposed disposition or transfer may be lawfully made without the registration of the Warrant or
the USB Shares pursuant to the Securities Act of 1933, as amended and applicable state securities
laws or (b) an effective registration of the Warrant or the USB Shares under the Securities Act of
1933, as amended and applicable state securities laws. The Company shall require that the Warrant
and certificate representing the USB Shares be stamped or imprinted with an appropriate legend
reflecting the foregoing restrictions.

     3.3 Expenses. The Company agrees to reimburse Consultant directly for all actual
reasonable and necessary expenditures that are directly related to the Services rendered to the
Company by Consultant under this Agreement. These expenditures include, but are not limited

 

 

to, expenses related to travel (i.e. airfare, hotel, meals, parking, taxis etc.), telephone calls,
postal expenditures equipment purchases and system component purchases; provided, however, that any
expenditure which exceeds one hundred dollars ($100) must be authorized by an officer of the
Company in writing prior to the expenditure.

     3.4 Insurance; Benefits. The Company will not obtain any workers’ compensation
insurance for Consultant. Consultant shall comply with the workers’ compensation law concerning
Consultant. Consultant shall not be entitled to participate in or receive benefits under any group
benefit plan maintained or sponsored by the Company. Consultant shall be responsible for all
payroll and other taxes arising from compensation and other amounts paid to him under this
Agreement.

ARTICLE 4

TERM AND CANCELLATION

     4.1 Term. This Agreement shall be effective as of the date set forth above and shall
continue in full force and effect until April 30, 2008 (the “Term”), unless terminated as provided
in this Article 4 or unless extended by the parties by mutual agreement. The provisions of Articles
5 through 10, inclusive, of this Agreement shall survive any termination of this Agreement and
remain in full force and effect thereafter.

     4.2 Certain Definitions.

          (a) “Cause” shall mean any one or more of the following: (i) willful failure or refusal of
Consultant to render the Services to the Company in accordance with his obligations under Section
1.2; (ii) the commission by Consultant of an act of fraud or embezzlement against the Company;
(iii) the willful engaging by Consultant in conduct that is injurious to the Company (it being
understood that mere negligence in performance of duties is not Cause under this Agreement); (iv)
Consultant has been convicted or has pleaded nolo contendere to criminal misconduct (except for
parking violations, minor traffic violations and other petty or insignificant misdemeanors); (v)
any material breach by Consultant of this Agreement.

          (b) “Good Reason” shall mean: (i) a material breach of this Agreement by the Company or (ii)
assigning to Consultant duties that are materially inconsistent with his position, responsibilities
and status.

          (c) “Disability” shall exist if Consultant is substantially incapable of performing his
duties due to physical or mental illness, bodily injury or disease for a period of more than thirty
(30) consecutive days.

     4.3 Termination Upon Certain Events. This Agreement shall terminate immediately upon
the death or Disability of Consultant, upon written notice by the Company of termination for Cause,
upon written notice by Consultant of termination for Good Reason or upon mutual agreement of
Consultant and the Company. Further, either party may terminate this Agreement

 

 

upon fifteen (15) days’ written notice.

     4.4 Return of Property. On termination of this Agreement, (i) Consultant shall deliver
promptly to the Company all records, manuals, books, blank forms, documents, letters, memoranda,
notes, notebooks, reports, data, tables, calculations or copies thereof, which are the property of
the Company or which relate in any way to the Services, the business, products, practices or
techniques of the Company, and all other property and Confidential Information of the Company,
including, but not limited to, all documents which in whole or in part contain any trade secrets or
confidential information of the Company or relating to the Services, which in any of these cases
are in his possession or under his control; provided, however, Consultant may delete or redact from
such documents any trade secret or confidential information that does not belong to the Company;
and (ii) the Company shall return to Consultant all property and information, if any, in the
possession of the Company or any of its employees, representatives or agents not furnished to the
Company in connection with the Services performed under this Agreement on the request of
Consultant.

ARTICLE 5

CONFIDENTIAL INFORMATION

     5.1 Non-Disclosure. In performing services under this Agreement, Consultant may be
exposed to and may be required to use certain “Confidential Information” (as hereinafter defined)
of the Company. Consultant agrees that he will not use directly or indirectly, such Confidential
Information for the benefit of any person, entity or organization other than the Company, or
disclose such Confidential Information without the written authorization of an officer of the
Company, either during or after the term of this Agreement, for a period of 5 years after the date
of termination of this Consulting Agreement.

     5.2 Definition. “Confidential Information” means information not generally known
whether presently existing or developed in the future, including trade secrets, about the Company’s
methods, processes, technology, intellectual property, products, Inventions, vendor names, customer
lists, management systems and sales and marketing plans. All information disclosed to Consultant
during the term of this Agreement that Consultant has a reasonable basis to believe is Confidential
Information or which is treated by the Company as Confidential Information shall be presumed to be
Confidential Information.

     5.4 Exceptions. The burden of establishing that any information possessed by
Consultant is not Confidential Information shall be that of Consultant. The Confidential
Information of the Company shall not include any information that:

          (a) became generally known or available to the public other than as a result of a disclosure
by Consultant or anyone to whom Consultant transmitted the information;

          (b) was available to Consultant on a non-confidential basis prior to the Company’s disclosure
to Consultant or the date of this Consulting Agreement;

 

 

          (c) became available to Consultant on a non-confidential basis from a source other than one
who is bound to the Company by a nondisclosure or confidentiality agreement or other obligation of
secrecy with respect to such information; or

          (d) was developed by Consultant or any person, entity or organization other than the Company
including, without limitation, ICM.

     5.5 Additional Requirements. Confidential Information furnished by the Company to
Consultant under this Agreement shall be used by Consultant solely for the purpose and furtherance
of the Services and shall be treated by Consultant with at least the same degree of care as he
accords his own confidential and proprietary information.

ARTICLE 8

RIGHT TO INJUNCTIVE RELIEF

     8.1 The Company and Consultant both acknowledge that a breach of any of the terms of Articles
5 of this Agreement could render irreparable harm to the Company, and that a remedy at law for
breach of the Agreement may be inadequate, and that the Company shall therefore be entitled to any
and all equitable relief, including, but not limited to, injunctive relief, and to any other remedy
that may be available under any applicable law or agreement between the parties. The Company and
Consultant both acknowledge that the constraints within the Articles of this Agreement are
reasonably necessary to protect the legitimate interests of the Company, are reasonable in scope
and duration and are not unduly restrictive.

ARTICLE 9

INDEMNIFICATION

     9.1 To the extent permitted by law, the Company shall indemnify and hold harmless Consultant
from any and all actions, suits, proceedings, claims, causes of action, liabilities, penalties,
demands, assessments, judgments, costs and expenses and reasonable attorneys’ fees, including all
indirect, special, incidental or consequential losses or damages or expenses arising from the
breach of this Agreement by the Company or the failure of Company to perform its duties pursuant to
this Agreement, except that the Company shall in no case be liable for any loss arising from the
breach of this Agreement by Consultant, the failure of Consultant to perform his duties pursuant to
this Agreement or the willful misconduct or gross negligence of Consultant.

     9.2 To the extent permitted by law, Consultant shall indemnify and hold harmless the Company,
its affiliates, directors, officers, employees, servants, agents, and each of them, from any and
all actions, suits, proceedings, claims, causes of action, liabilities, penalties, demands,
assessments, judgments, costs and expenses and reasonable attorneys’ fees, including all indirect,
special, incidental or consequential losses or damages or expenses arising from the breach of this
Agreement by the Consultant or the failure of the Consultant to perform his duties pursuant to this
Agreement, except that the Consultant shall in no case be liable for any loss arising from the

 

 

breach of this Agreement by Company, the failure of Company to perform its duties pursuant to this
Agreement or the willful misconduct or gross negligence of the Company. Notwithstanding any other
provision of this Agreement, the aggregate liability of Consultant to the Company under this
Agreement shall not exceed the total compensation payable to Consultant under this Agreement and
Consultant shall have the option, in lieu of paying such liability in cash or other immediately
available funds, to assign his right, title and interest in the Warrant or USB Shares acquired
under section 3.1 above to Company.

ARTICLE 10

GENERAL PROVISIONS

     10.1 Survival. Consultant’s and the Company’s respective rights and obligations under
this Agreement are unconditional and shall survive and continue after any expiration or termination
of the Agreement, and shall bind the parties and their respective legal representatives, heirs,
successors and assigns.

     10.2 Severability. In the event any provision of this Agreement is held unenforceable
by a court of competent jurisdiction, such provision shall be severed and shall not affect the
validity or enforceability of the remaining provisions.

     10.3 Governing Law., This Agreement shall be governed by and construed in accordance
with the internal laws (and not the laws of conflicts) of the State of South Dakota.

     10.4 Entire Understanding. This Agreement and the Warrant constitute the complete
agreement of the parties, setting forth the entire understanding and agreement of the parties as to
the subject matter contained therein and supersedes all prior discussions and understandings in
respect to the subject of this Agreement and the Warrant, whether written or oral.

     10.5 Amendment. No modification, amendment, termination or attempted waiver of this
Agreement, or any provision thereof, shall be valid unless in writing signed by the party against
whom the same is sought to be enforced.

     10.6 Waiver. The waiver by the Company of a breach of any provision of this Agreement
by Consultant shall not operate or be construed as a waiver of any other or subsequent breach by
Consultant.

     10.7 Assignment. This Agreement may not be assigned by either party without the prior
written consent of the other party. The benefits and obligations of this Agreement shall be binding
upon and inure to the parties hereto, their successors and assigns.

     10.8 Trade Secrets. The rights of the Company under this Agreement are in addition to

 

 

any rights of the Company with respect to the protection of trade secrets and confidential
information arising out of the common or statutory law of the State of South Dakota, or the law of
any state or country where Consultant may from time to time be employed or found.

     10.9 Notices. Any notice required or permitted to be given under this Agreement shall
be sufficient if in writing and if sent by facsimile or by certified/registered mail with return
receipt requested to the addresses set forth below. Notices shall be deemed given only upon receipt
(proof of receipt shall include the return receipt and the facsimile transmission confirmation):

     If to the Company:

Chad Hatch

US BioEnergy Corporation

326 Main Avenue, Suite 209

Brookings, South Dakota

Facsimile: 605-696-3153

with a copy to:

Michael Weaver

Lindquist & Vennum P.L.L.P

4200 IDS Center 80 South 8th Street

Minneapolis, Minnesota 55402-2205

Facsimile: 612-371-3207

     If to Consultant:

David VanderGriend

310 N. First St.

PO Box 397

Colwich, KS 67030

Facsimile: 316-796-0570

     IN WITNESS WHEREOF, this Agreement has been executed by the Company and Consultant as of the
date set forth in the first paragraph.

	 	 	 	 	 	 	 
	 	 	US BIOENERGY CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ GORDON OMMEN
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 

	 	 

	 	 	 	 	 	 
	 

	 	/s/ DAVID VANDERGRIEND
 

David VanderGriend

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