Document:

form8k_070209exh103.htm

    CONSULTING
AGREEMENT

     

    THIS CONSULTING AGREEMENT (the
“Agreement”), made this 2nd day of July 2009, is entered by and between
Southwest Iowa Renewable Energy, LLC (“SIRE” or the “Company”), and Cindy
Patterson, (the “Consultant”).

     

    WHEREAS, the Company desires
to retain the services of the Consultant and the Consultant desires to perform
certain consulting and related services for the Company;

     

    NOW, THEREFORE, in
consideration of the mutual covenants and promises contained herein, the parties
hereby agree as follows:

     

    
      	
               
      

            	
              1.

            	
              Consulting
      Services.

            

    

     

    (a)           Services and
Duties.  The Consultant agrees to provide such consulting and
related services with respect to the Company's financial accounting as may be
requested by the Company during the term of this Agreement.

     

    (b)           Availability.  The
Consultant shall be available to the Company (i) on a regular basis for
telephone consultation and (ii) on an “as-needed” basis, in person, at the
Company’s place of business and such other places as the Company shall from time
to time request, during the entire Consultation Period, as defined
below.

     

    (c)           Limitation on Consultant’s
Services and Availability.  Notwithstanding the provisions of
subsections (a) and (b) of this Section 1 above, the Company acknowledges that
the Consultant may be engaged in full-time employment with a third-party
employer during the term of this Agreement and that the Consultant shall not be
obligated to (i) comply with requests by the Company for Consultant’s services
and/or (ii) comply with requests by the Company that the Consultant be available
either by telephone or in person at times or in such a manner that will
interfere with the Consultant’s ability to perform the Consultant’s duties and
responsibilities of the Consultant to the Consultant’s third party
employer.  Consultant and Company agree to, in good faith, attempt to
find alternative times or attempt to make alternative arrangements so that the
services requested by the Company of the Consultant and/or the requests of the
Company that the Consultant be available either by telephone or in person be at
times and/or provided in a manner that will not interfere with the Consultant’s
ability to perform the Consultant’s duties and responsibilities of the
Consultant to the Consultant’s third party employer.

     

    
      	
               
      

            	
              2.

            	
              Confidentiality.

            

    

     

    (a)           The
Company acknowledges that the Consultant has or may have other employment,
business interests or requirements which the Consultant will pursue during her
consultancy hereunder; provided, however, that the Consultant shall not, either
during the Consulting Period or thereafter, either directly or indirectly, or
for competitive or other purposes, disclose or cause to be disclosed any
information, materials, systems, procedures, processes, manuals, forms, customer
lists, employee lists, or other trade

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    secrets
or confidential information regarding the Company or any of the Company’s
affiliates to any individual or entity other than to individuals at the Company
who are authorized to receive trade secret or confidential
information.  The Consultant shall not, either during the Consulting
Period or thereafter, either directly or indirectly, use or cause to be used
such trade secrets or confidential information in a manner that conflicts with
the best interests of the Company and its affiliates.

     

    (b)           Upon
termination of this Agreement or at any other time upon request by the Company,
the Consultant shall promptly deliver to the Company all records, files,
memoranda, notes, designs, data, reports, price lists, customer lists, drawings,
plans, computer programs, software, software documentation, sketches, laboratory
and research notebooks and other documents (and all copies or reproductions of
such materials) relating to the business of the Company and its affiliates and
all other property of the Company and its affiliates.

     

    (c)           The
Consultant acknowledges that any breach of the provisions of this paragraph 2(c)
shall result in serious and irreparable injury to the Company for which the
Company cannot be adequately compensated by monetary damages
alone.  The Consultant agrees, therefore, that, in addition to any
other remedy it may have, the Company shall be entitled to enforce the specific
performance of this Agreement by the Consultant and to seek both temporary and
permanent injunctive relief (to the extent permitted by law), plus the Company’s
costs and attorneys’ fees.`

     

    3.           Term.  The
term of this Agreement shall be twelve (12) months commencing on July 13, 2009
and ending July 9, 2010, unless renewed upon the agreement of both parties;
provided, after October 2, 2009, either party may terminate this Agreement at
any time, with or without cause, on thirty (30) days prior written notice to the
other party (such period, including any renewals thereof, being referred to as
the “Consultation Period”).  Notwithstanding any other provision of
this Agreement, at any time during the term of this Agreement the failure of
Consultant to fully comply with any terms of this Agreement shall entitle the
Company to terminate this Agreement immediately upon written notice to
Consultant and upon termination the Company shall have no further liability
hereunder or obligation to render severance payments pursuant to the parties'
Separation Agreement and General Release of All Claims, dated July 2, 2009
..

     

    4.           Compensation.

     

    (a)           Consulting
Fees.  Between July 13, 2009 and October 2, 2009, Consultant
shall provide services to the Company in exchange for the severance payments
made pursuant to the parties' Separation Agreement and General Release of All
Claims, dated July 2, 2009.  Beginning October 5, 2009, the Company
shall pay the Consultant a consulting fee in the amount of $75.00 per hour for
each hour services are provided by the Consultant to the Company.

     

    (b)           Expenses.  The
Company shall reimburse the Consultant for out of pocket expenses reasonably
incurred on behalf of the Company in providing the services under

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    this
Agreement, including travel expenses to the extent authorized by the
Company,  subject to customary documentation.

     

    (c)           Payment/Reimbursement.  Payment
of consulting fees beginning October 5, 2009, and reimbursement for expenses for
the previous month for the entire term of this agreement shall be made by the
Company to the Consultant on the last business day of the following
month.  On or before the fifteenth (15th) of each month for services
provided after October 2, 2009 and for expenses incurred during the Consultation
Period, the Consultant must provide to the Company an itemized statement, in a
form satisfactory to the Company, of services provided and expenses incurred
(including receipts for all expenses) during the previous month as a condition
precedent to any payment under this Agreement.

     

    (d)           Benefits.  The
Consultant shall not be entitled to any benefits, coverages or privileges,
including, without limitation, social security, unemployment, medical or pension
payments, made available to employees of the Company, except as provided under
the Separation Agreement and General Release of All Claims between the Company
and the Consultant.

     

    (e)           Tax
Information.  Notwithstanding any other provision hereof, the
Company shall not be obligated to pay to the Consultant any amounts hereunder
until the Consultant shall provide to the Company any necessary information
required and requested by the Company to comply with any applicable tax or other
laws.

     

    5.           Cooperation.  The
Consultant shall use her best efforts in the performance of her obligations
under this Agreement.  The Company shall provide such access to its
information and property as may be reasonably required in order to permit the
Consultant to perform her obligations hereunder.  The Consultant shall
cooperate with the Company’s personnel, shall not interfere with the conduct of
the Company’s business and shall observe all policies, rules and regulations of
the Company and applicable law.

     

    6.           Independent
Contractor Status.  The Consultant and the Company understand
and intend that the Consultant shall perform all services under this Agreement
as an independent contractor and not as an employee of the
Company.  The manner of and means by which the Consultant executes and
performs her obligations hereunder are to be determined by the Consultant in her
reasonable discretion.  The Consultant is not authorized to assume or
create any obligation or responsibility, express or implied, on behalf of, or in
the name of, the Company or to bind the Company in any manner, unless, in each
instance, the Consultant shall receive the prior written approval of the Company
to so assume, obligate or bind the Company.

     

    7.           Taxes.  No
income tax or payroll tax of any kind shall be withheld or paid by the Company
on behalf of the Consultant for any payment made under this Agreement after
October 5, 2009.  The Consultant agrees to be responsible for all
taxes and similar payments arising out of any of her activities contemplated by
this Agreement, including without limitation, federal, state, and local income
tax, social security tax (FICA), self employment taxes, unemployment insurance
taxes and all other taxes, fees and withholding.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    8.           Entire
Agreement.  This Agreement and the Separation Agreement and
General Release of All Claims, executed contemporaneously with this Agreement,
contain the entire agreement between the parties with respect to the matters
contemplated thereby.

     

    9.           Amendment.  This
Agreement may be amended or modified only by a written instrument executed by
both the Company and the Consultant.

     

    10.           Governing
Law.  This Agreement and all disputes arising hereunder shall
be subject to, governed by and construed in accordance with the laws of the
State of Iowa.

     

    11.           Waiver.  No
delay or omission by the Company in exercising any right under this Agreement
shall operate as a waiver of that or any other right.  A waiver or
consent given by the Company on any one occasion shall be effective only in that
instance and shall not be construed as a bar or waiver of any right on any other
occasion.

     

    12.           Severability.  In
the event that any provision of this Agreement shall be invalid, illegal or
otherwise unenforceable, the validity, legality and enforceability of the
remaining provisions shall in no way be affected or impaired
thereby.

     

    13.           Miscellaneous.

     

    (a)           This
Agreement shall be binding upon, and inure to the benefit of, both parties and
their respective successors and assigns, including, without limitation, any
corporation to which the Company may assign its rights hereunder, or into which
the Company may be merged or which may succeed to its assets or business;
provided, however, that the obligations of the Consultant are personal and shall
not be assigned by the Consultant.

     

    (b)           The
captions of the sections of this Agreement are for convenience of reference only
and in no way define, limit or affect the scope or substance of any section of
this Agreement.

     

    (c)           This
Agreement may be executed in two or more counterparts, each of which will be
deemed an original, but all of which together will constitute one and the same
agreement.

     

    [Signature
Page Follows]

     

    

    
      
        -4-

      

      
         

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year set forth above.

     

    
                                
THE COMPANY:

       

    

    
      
        	 	Southwest
      Iowa Renewable Energy, LLC	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ James
      M. Lay	 
	 	 	Title: 
      Interim President and CEO	 
	 	 	 	 
	 	 	 	 

      

    

     

     

                              
THE CONSULTANT:

     

    
      
        	 	 	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Cindy
      Patterson	 
	 	 	Cindy
      Patterson	 
	 	 	 	 
	 	 	 	 

      

     

    

     

     

     

     

    
      
         

      

      
        -5-form8kexh102_070209.htm

    Exhibit
10.2

     

    SEPARATION AGREEMENT AND
RELEASE OF ALL CLAIMS

    

    This
Separation Agreement and Release of All Claims (the “Agreement”) is made and
entered into between Southwest Iowa Renewable Energy, LLC (“SIRE” or the
“Company”) and Cindy Patterson (the “Employee”).  The Company and the
Employee are referred to herein as the “parties”.

    

    In
consideration of the promises herein, the parties agree as follows:

     

    
      	
              1.

            	
              Employee
      resigned from her employment with SIRE effective July 10,
      2009.  Except as specifically provided herein, Employee’s
      eligibility for all compensation and benefits from the Company ceased on
      the effective date of her resignation.  Employee acknowledges
      and agrees that she has already been paid all compensation, accrued but
      unused vacation allowance, and other benefits due up through her last
      paydate.  Employee represents and acknowledges that she has not
      suffered any workplace injury during her employment with the
      Company.

            

    

    

    
      	
              2.

            	
              If
      this Agreement becomes effective, Employee will receive severance pay from
      SIRE in the amount of $23,076.91, representing twelve (12) weeks' salary,
      paid in bi-weekly installments in accordance with the Company’s customary
      payroll cycle. The initial installment will be paid on the first regularly
      scheduled payroll date occurring no earlier than July 13, 2009, and at
      least eight days after a signed copy of this Agreement is received by the
      Company from the Employee. Also if this Agreement becomes effective, SIRE
      will directly pay Employee's COBRA or Iowa Continuation Coverage premiums
      for the months of August and September, 2009, if she is eligible for and
      satisfactorily submits the required applications for such coverage, and
      will also include a payment of $1,000, representing relocation expenses
      previously incurred by Employee, with the initial installment of her
      severance pay.  Employee expressly agrees the payments provided
      for in this paragraph will exhaust in full any and all obligations the
      Company has or may have to Employee in regard to compensation, vacation
      benefits, incentive awards, or bonus payments of any kind.  The
      payments provided for in this paragraph will be subject to all applicable
      federal, state, and local payroll taxes and any other deductions required
      by law will be deducted.  The payment set forth in this
      paragraph will not be made until on or after eight days after a signed
      copy of this Agreement is received by the Company from the
      Employee.  The payment will be included in Employee’s W-2
      form for the appropriate year.

            

    

    

    
      	
              3.

            	
              During
      the term of this Agreement, Employee understands that her continued
      compensation is contingent upon Employee assisting in providing a smooth
      transition as to Employee’s prior job duties by providing: (a) on site
      assistance through the June month end close of the Agris accounting
      system, and (b) professional consulting services pursuant to the
      Consulting Agreement dated July 2, 2009, Attached as Exhibit
      1  Company agrees to reimburse Employee for any out of pocket
      expenses incurred by Employee resulting from her consulting activities
      performed on behalf of SIRE.

            

    

    

    
      	
              4.

            	
              Employee
      agrees that in her position with SIRE she had access to certain
      confidential and proprietary Information, including but not limited
      to:  sales information, customer and potential customer
      identities, customer purchasing histories, prices and pricing strategies,
      prospective business and marketing plans, suppliers, contractual terms,
      technical materials, processes, product designs, financial information
      including financial statements and projections, employee lists, personal
      employee information, computer systems, codes, software and programs and
      all other similar information or data (collectively the “Confidential
      Information”).  Employee agrees that she will never use or
      disclose any Confidential Information except to the extent required by
      law. If she should be required by law to use or disclose any Confidential
      Information, she will, unless it is a violation of law to do so,
      immediately provide the Human Resources Manager at SIRE written notice
      regarding the disclosure and cooperate in any attempt SIRE may deem
      appropriate to avoid such disclosure, at SIRE’s
  expense.

            

    

    
      
      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              5.

            	
              Employee
      acknowledges that any disclosure not permitted by Section 4 by Employee to
      any third party of any Confidential Information constitutes a material
      breach of this Agreement.

            

    

    

    
      	
              6.

            	
              Employee
      agrees that the existence of this Agreement and all of its terms shall
      remain completely confidential, and that she will not disclose the
      existence of this Agreement, or any of its terms or conditions with any
      third party; provided, however, Employee may disclose the existence and
      terms of this Agreement as required by law and to her attorney,
      accountant, financial advisor, and/or a potential employer, so long as
      such person agrees to be bound by the terms of this non-disclosure
      provision;  provided further that the Employee may disclose the
      fact that the Employee resigned from employment with SIRE on July 10,
      2009, the circumstances of the Employee's resignation from employment with
      SIRE and that the Employee resigned on good terms with SIRE, all without a
      potential employer having to agree to be bound by the non-disclosure
      provision, so long as such disclosures do not result in the disclosure of
      any Confidential Information. Employee further agrees not to make
      disparaging remarks about the Company or any of its affiliates, officers,
      directors or employees and agrees not to voluntarily participate in or aid
      in or encourage any third party in connection with any lawsuit against the
      Company or its affiliates.  Should Employee violate the
      confidentiality or non-disparagement terms of this Agreement, including
      but not limited to paragraphs 4, 5, and 6, Employee agrees that this shall
      be a material breach of this Agreement and that the Company shall be
      entitled to the immediate return of all money paid to her under the terms
      of this Agreement, along with all costs and attorney’s fees expended by
      the Company in pursuing the matter, and any other relief that may be
      awarded to the Company for damages caused by breach of those provisions or
      as otherwise provided in this
Agreement.

            

    

    

    
      	
              7.

            	
              Employee
      agrees that she will not in the future apply for or accept employment or
      reinstatement of employment with the
Company.

            

    

    

    
      	
              8.

            	
              Employee
      shall return all SIRE property within her possession or control, including
      computer and cell phone equipment, and any Company documents in any media
      or tangible format including electronic copies, by August 28,
      2009.

            

    

    

    
      	
              9.

            	
              Employee
      for herself, her personal representatives, heirs, executors,
      administrators, and assigns, hereby fully and forever RELEASES,
      DISCHARGES, and holds harmless from any liability, the Company, its
      owners, administrators, officers, representatives, insurers, employees,
      and agents, in their official and individual capacities, from any and all
      causes of action or claims, including, but not limited to, any claims she
      may have arising under the ADEA (Age Discrimination in Employment Act, 29
      USC §621 et. seq.), the Older Worker Benefit Protection Act, any other
      federal, state, or local discrimination laws, or any other federal, state,
      or local statute or common law cause of action, including any action based
      on any contract between Employee and the Company, and from any claims for
      attorneys’ fees, costs, expenses, and any and all other damages, whether
      known or unknown, which Employee ever had, now has, hereafter may have, or
      claims to have against any of the above named entities or persons, on
      account of or in any way arising out of or resulting directly or
      indirectly from her employment or the ending of her employment with SIRE
      or the performing by her of any services for the Company, or her
      compensation or benefits relating thereto through the date of the
      execution of this Agreement.  Employee further agrees that she
      has not filed and will not file any lawsuit for those claims hereby
      released and that any such lawsuit will be considered a material breach of
      this Agreement.  Further, if Employee has filed or anytime in
      the future files a charge or claim with any state, federal or local
      governmental agency based on any claim released herein or if any such
      agency pursues a claim on Employee’s behalf, Employee agrees that she
      hereby releases any right to and will not accept any damages or other
      legal or equitable relief that may result from that charge or

               

            

    

    
      
      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        	
                 

              	
                claim.
      The Company similarly releases and forever discharges Employee of and from
      any and all claims or causes of action arising from or relating to
      Employee’s employment with SIRE.  The
      parties understand and agree that this release does not affect any rights
      not waivable by law or any claims that have not accrued as of the
      effective date of this Agreement, including any claims relating to the
      parties' obligations under this
Agreement.

              

      

       

    

    
      	
              10.

            	
              Both
      Employee and the Company understand that the facts upon which this
      Agreement is based may hereafter prove to be other than the facts now
      known by or believed by either of them to be true.  Each party
      expressly accepts and assumes the risk of the facts proving to be
      different, and each party agrees that the terms of this Agreement shall be
      effective and not subject to termination or rescission by reason of any
      such difference in facts.

            

    

    

    
      	
              11.

            	
              This
      Agreement shall be construed and interpreted in accordance with the laws
      of the State of Iowa and any action to enforce this Agreement must be
      brought in Pottawattamie County, Iowa.  The parties consent to
      the jurisdiction of the courts located in Council Bluffs, Pottawattamie
      County, Iowa for the purposes of any action enforcing or relating to the
      terms of this Agreement.  The terms of this Agreement shall in
      all cases be construed as a whole, according to its fair meaning, and not
      strictly for or against any of the parties
  hereto.

            

    

    

    
      	
              12.

            	
              This
      Agreement shall be construed and interpreted so as to be
      enforceable to the fullest extent permitted by law, and to the extent that
      any provision shall be deemed unenforceable or invalid, such invalidity
      and unenforceability shall not affect the enforceability or validity of any
      other provision hereof. Any waiver of any breach of a provision of this
      Agreement shall not constitute the waiver of any additional breach of that
      provision or breach of any other provision of this
    Agreement.

            

    

    

    
      	
              13.

            	
              This
      Agreement binds and inures to the benefit of the parties hereto, and their
      personal representatives, heirs, executors, administrators, assigns, and
      successors in interest.

            

    

    

    
      	
              14.

            	
              It
      is expressly understood and agreed that SIRE denies any wrongdoing in
      connection with the employment or the ending of the employment of Employee
      and the payment of the severance sum and other consideration given in this
      Agreement is not and is never to be construed as an admission of liability
      by the Company.  Further, the parties agree that this Agreement
      shall not be interpreted to render Employee a prevailing party for any
      purpose including, but not limited to, the awarding of attorney’s fees
      under any statute.

            

    

    

    
      	
              15.

            	
              This
      Agreement and the Consulting Agreement, executed contemporaneously with
      this Agreement, contain the entire agreement between the parties with
      respect to the matters contemplated thereby.   This
      Agreement can be modified, changed, or amended only in writing signed by
      both SIRE and Employee.

            

    

    

    
      	
              16.

            	
              The
      Company maintains directors and officers insurance on a claims made basis
      which includes present and former officers within the scope of its
      coverage as insured persons under the policy.  With respect to the
      such insurance as maintained by the Company from time to time, the
      Company agrees that the Company will not take any action to terminate,
      eliminate, release or diminish any such directors and officers insurance
      coverage as the same may apply to the
Employee.

            

    

    

    
      	
              17.

            	
              By
      signing this Agreement, Employee hereby acknowledges the
      following:

            

    

    
      
        	
                 
      

              	
                a.

              	
                She
      understands its terms and conditions;

              
	 	b.	She
      has been advised of her right to consult an attorney to review the
      Agreement;

      

    

    
      
      

    

    
      
      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
      

    

    
      
        	 	c.	She
      understands that she does not waive any rights or claims that may arise
      after the date the Agreement is executed;
	 	d.	She
      will be receiving, if this Agreement becomes effective, consideration
      beyond anything of value to which she is already
  entitled;
	
                 
      

              	
                e.

              	
                She
      understands that she has twenty-one [21] days from the date upon which she
      had been provided a copy of this Agreement, to accept
  it;

              

      

    

    
      	
               
      

            	
              f.

            	
              If
      she accepts this Agreement, she must execute it by the 21st
      day after it was given to her and return a signed original of this
      Agreement to SIRE’s Human Resources
Manager;

            

    

    
      
        	
                 
      

              	
                g.

              	
                She
      understands that the Company reserves the right to withdraw the offer set
      forth in the Agreement if the Agreement is not executed and returned
      during the 21 day time period;

              
	 	h.	
                She
      understands that once executed, this Agreement is revocable by her for
      seven [7] days and the Agreement shall not be effective until the end of
      the seven [7] day revocation period and will only be effective if not
      timely revoked. Revocation must be by written notice of revocation
      delivered to SIRE’s Human Resources Manager within the seven-day
      revocation period.

              

      

    

    
      
      

    

    

    The
undersigned have completely read this Agreement, understand and voluntarily
accept all of its terms, have current capacity to enter into this Agreement, have had the
opportunity, if they so chose, to review it with legal counsel, and execute it
voluntarily.

    

    IN
WITNESS WHEREOF, the undersigned have executed this Separation Agreement and
Release of All Claims.

    

    CAUTION:  READ BEFORE
SIGNING.  EMPLOYEE UNDERSTANDS THAT BY SIGNING THIS SEPARATION AGREEMENT AND
RELEASE OF ALL CLAIMS SHE GIVES UP ANY RIGHTS SHE HAS TO PURSUE
ANY CLAIMS FOR MONETARY COMPENSATION WHETHER KNOWN OR UNKNOWN AGAINST THE COMPANY OR ANY
OF THE PERSONS OR ENTITIES RELEASED HEREIN INCLUDING CLAIMS
UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT, THE OLDER WORKER
BENEFIT PROTECTION ACT, AND ALL OTHER FEDERAL, STATE OR LOCAL LAW CLAIMS,
INCLUDING ANY CLAIMS FOR
DAMAGES, ARISING FROM HER EMPLOYMENT OR THE ENDING OF HER EMPLOYMENT AT
SIRE OR THE PERFORMANCE BY HER OF ANY SERVICES FOR THE
COMPANY.

    

    

    Southwest
Iowa Renewable Energy, LLC

    

    
      
        
          
            	 	 	 
	 	 	 	 
	
                    By:
      

                  	/s/ James
      M. Lay	 	 Date: 
      7/2/09
	 	Company
      Representative	 	 
	 	 	 	 
	 	 	 	 

          

        

      

    
      
        
          	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                  By:

                	
                  /s/
      Cindy Patterson

                	 
      	
                  Date: 
      7/2/09

                
	 
      	
                  Cindy
      Patterson, Employee

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