Document:

Exhibit
10.1

 

MEMBERSHIP
UNIT PURCHASE AGREEMENT

 

This MEMBERSHIP UNIT PURCHASE AGREEMENT (the
“Purchase Agreement”), effective as of May 1, 2005, among and between Dakota
Growers Pasta Company, Inc., a North Dakota corporation (“Dakota”), B-New, LLC,
an Ohio limited liability company (“BNEW”), TechCom Group, LLC, a Florida
limited liability company (“TechCom”), and Buhler, Inc., a Minnesota
corporation (“Buhler”) (Dakota, BNEW, TechCom and Buhler may be referred to
herein as a “Member” and collectively as the “Members”).

 

RECITALS

 

WHEREAS, the Members entered into an
Operating Agreement as of October 31, 2003, and entered into a first
amendment of the Operating Agreement effective February 9, 2004, a second
amendment of the Operating Agreement effective October 25, 2004 and a
third amendment of the Operating Agreement effective November 1, 2004
(collectively, the “Agreement”);

 

WHEREAS, the Members are all of the members
of DNA Dreamfields Company, LLC, an Ohio limited liability company  (“DNA”);

 

WHEREAS, BNEW is desirous to sell, and Dakota
is desirous to purchase, 12.88 of its Membership Units for Two Million, Six
Hundred Sixty-Six Thousand, Six Hundred and Sixty-Seven Dollars ($2,666,667);

 

WHEREAS, TechCom is desirous to sell, and
Dakota is desirous to purchase, 6.44 of its Membership Units for One Million,
Three Hundred Thirty-Three Thousand, Three Hundred and Thirty-Three Dollars
($1,333,333);

 

WHEREAS, the Members agree to waive DNA’s
right of first refusal as provided in Section 4(A) of the Agreement; and

 

WHEREAS, the Members, through execution of
this Purchase Agreement, provide the consent of members as proscribed in Section 4(B)
of the Agreement.  Additionally, the
Members have simultaneously amended and restated the Agreement by executing an
Amended and Restated Agreement.

 

NOW, THEREFORE, the parties hereto agree as
follows:

 

1.                                       Agreement to
Purchase Membership Units from BNEW. 
In consideration of the transfer of 12.88 Membership Units to Dakota,
Dakota has, simultaneously with its execution of this Purchase Agreement, paid
Two Million, Six Hundred Sixty-Six Thousand, Six Hundred and Sixty-Seven
Dollars ($2,666,667) to BNEW.

 

 

2.                                       Agreement to
Purchase Membership Units from TechCom. 
In consideration of the transfer of 6.44 Membership Units to Dakota,
Dakota has, simultaneously with its execution of this Purchase Agreement, paid
One Million, Three Hundred Thirty-Three Thousand, Three Hundred and
Thirty-Three Dollars ($1,333,333) to TechCom.

 

3.                                       BNEW’s
Representation and Warranty.  BNEW
represents and warrants: that it is the owner of the 12.88 Membership Units to
be sold to Dakota; that the 12.88 Membership Units are free and clear of all
encumbrances, liens or other claims; and that BNEW has the right to sell and
convey the Membership Units to Dakota.

 

4.                                       TechCom’s
Representation and Warranty.  TechCom
represents and warrants:  that it is the
owner of the 6.44 Membership Units to be sold to Dakota; that the 6.44
Membership Units are free and clear of all encumbrances, liens or other claims;
and TechCom has the right to sell and convey the Membership Units to Dakota.

 

5.                                       Counterparts.  This Purchase Agreement may be executed in
counterparts which taken together shall constitute one instrument,
notwithstanding the fact that all parties have not executed this Purchase
Agreement on the same date or that all signatures do not appear on the same
copy.

 

6.                                       Captions.  Captions are included for convenient
reference only and shall not affect the interpretation of any provision of this
Purchase Agreement or the Amended and Restated Agreement.

 

7.                                       Severability.  The invalidity, illegality, or
unenforceability of any provision of this Purchase Agreement shall not affect
or impair the validity, legality, and enforceability of the other provisions
hereof or of the Agreement or the Purchase Agreement.

 

8.                                       Consent of
Members.  By execution of this
Purchase Agreement, each of the Members hereby consent to the transfer of the
Membership Units as described above, as required under Section 4(B) of the
Agreement.  In addition, by execution of
this Purchase Agreement, each of the Members hereby agree and acknowledge that,
by virtue of the agreement of all of the Members, DNA does hereby waive the
right of first refusal provided for in Section 4(A) of the Agreement with
respect to the transfer of the Membership Units as described above.  Dakota, BNEW and TechCom do hereby agree that
Buhler has executed this Purchase Agreement solely for the purpose of the
agreements and acknowledgements contained in this Section 8.

 

9.                                       Choice of Law.  This Purchase Agreement shall be governed by
and construed in accordance with the internal laws of the State of Ohio.

 

 

IN WITNESS WHEREOF, the parties have executed this Amendment.

 

	
   

  	
  B-New, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Jonathan Hall

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Principal

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  May 17, 2005

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TechCom Group, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jonathan Scot Anfinsen

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  May 16, 2005

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Buhler, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Beat Haeni

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Head Corporate Development-

  Buhler Group

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Achim Klotz

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  President—Buhler, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  May 18, 2005

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Dakota Growers Pasta Company, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Timothy J. Dodd

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  President, Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  June 27, 2005Exhibit
10.2

 

AMENDED AND RESTATED

DNA DREAMFIELDS COMPANY, LLC

OPERATING
AGREEMENT

 

THIS
AMENDED AND RESTATED OPERATING AGREEMENT (the “Agreement”) is entered into
effective as of May 1, 2005, between and among B-New, LLC, an Ohio limited
liability company (“BNEW”), TechCom Group, LLC, a Florida limited liability
company (“TechCom”), Buhler, Inc., a Minnesota corporation (“Buhler”), and
Dakota Growers Pasta Company, Inc., a North Dakota corporation (“Dakota”)
(BNEW, TechCom, Buhler and Dakota may be referred to herein as a “Member” and
collectively as the “Members”).

 

RECITALS:

 

WHEREAS,
the Members are all of the members of DNA Dreamfields Company, LLC, an Ohio
limited liability company (the “Company”), as of the date hereof; and

 

WHEREAS, the Members have previously entered
into a DNA, LLC Operating Agreement, dated October 31, 2003, and have also
entered into amendments to such Operating Agreement adopted on February 9,
2004, October 25, 2004 and November 6, 2004, with the original
Operating Agreement dated October 31, 2003 as amended by the three
amendments constituting the current LLC Operating Agreement of the Company
(collectively, the “Old Agreement”)

 

WHEREAS, the Members desire to amend certain
rights and obligations relating to the Company and their ownership thereof and,
to the extent not modified by the provisions of this Agreement, to restate the
rights and obligations contained in the Old Agreement;

 

WHEREAS, to reflect such amendments and the
restatement of those provisions of the Old Agreement which are intended to
continue in full force and effect, the Members desire to adopt this Agreement
to replace the Old Agreement, with the intention that this Agreement shall
constitute the sole agreement of the Members with respect to the internal operation
and affairs of the Company;

 

WHEREAS, the
Old Agreement is hereby terminated and replaced in its entirety with this
Agreement;

 

WHEREAS, as
part of the amendments to the Old Agreement to be reflected in this Agreement,
the Members desire to appoint Dakota to manage the business and affairs of the
Company (in such role identified as the “Managing Member”) with the rights and
powers set forth throughout this Agreement;

 

NOW,
THEREFORE, the parties hereto agree as follows:

 

1.                                       Purpose.    The
Company has been formed to license the Technology (as hereinafter defined), and
in connection therewith to develop, manufacture in North America, and sell
globally low digestible carbohydrate pasta, rice and potatoes under the
Dreamfields name (the “Brand”), and to otherwise exploit and ultimately sell
the Brand.

 

 

2.                                       Capital
Contributions.

 

(A)                              Previous Contributions
and Ownership of Units

 

(i)                                     Each
Member has contributed cash or other assets to the capital of the Company and
effective as of the date hereof holds the number of membership units (“Units”)
in the Company listed on Exhibit A.

 

(ii)                                  Buhler
shall contribute, when and as needed, additional funds up to $128,683 for:
development of science performed internally or externally; and
credential/claims development performed internally or externally.  Such contributions shall be made by the
payment by Buhler to the Company of applicable invoices submitted by vendors of
the Company and applicable internal costs incurred by Buhler and accounted for
by Buhler to the Managing Member.  The
aforementioned additional funds are the remaining part of the additional
capital contribution by Buhler in the aggregate amount of $1,105,495 as agreed
in the Old Agreement, and the $128,683 specified above reflects Buhler’s
contributions made and services performed for months ending before April 1,
2005.

 

(iii)                               Buhler
previously assigned and conveyed all of its rights, title and interest in and
to processing technology specifically developed and applied for Dreamfields
pasta to the Company as a capital contribution.

 

(iv)                              BNEW
previously assigned and conveyed all of its rights, title and interest in and
to the Brand to the Company as a capital contribution.

 

(v)                                 TechCom
previously granted the license to the Technology to the Company, as more
particularly described in Section 6(E)(iii), as a capital contribution.

 

(vi)                              The
historic capital contributions of the various Members and the capital accounts
of such Members, adjusted for the transfers of Units, are reflected in the
Ownership of Units stated on Exhibit A and shall be determined in the
accordance with the books and records of the Company.

 

(B)                                Additional
Contributions.  If at any time the
Company’s Members, by a “Super Majority” (as defined below in Section 6(A)(vii))
vote, shall decide, in good faith and in the best interests of the Company,
that additional equity contributions beyond that described in section (A)
above are required to further the purposes of the Company, then each Member
shall be given at least 30 days to contribute a portion of the amount of
additional capital required pursuant to a subscription for additional
Units.  The purchase price per Unit shall
be determined by a Super Majority vote. 
The number of Units to which each Member shall be entitled to subscribe
shall be equal to a fraction of the total number of Units to be offered, the
numerator of which shall equal the then number of Units held by the Member, and
the denominator of which shall equal the then aggregate number of Units then
held by all Members.

 

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(C)                                Capital
Call Deficiencies.             In the
event a Member fails to subscribe for the full number of Units to which he is
entitled under the provisions of subsection (B) above within 30 days after
written notice (a “Capital Call Notice”), any other Member or Members who are
willing and able to make such contribution may do so in proportion to the then
respective number of Units held by them, or in such other proportion as they
may otherwise agree.

 

(D)          Loans by Members.  If, by a Super Majority vote, the Members
agree that the Company requires additional funds, any Member or Affiliate
thereof may, but shall not be obligated to, advance such funds.  Interest and similar charges or fees for
loans or other advancements made by a Member or Affiliate thereof may equal but
not exceed the amount which would be charged by unrelated lending institutions
on comparable loans for the same purpose in Cincinnati, Ohio, as determined in
good faith by the unanimous vote of the Company’s Members.  As used herein, “Affiliate” means any person
or entity who, directly or indirectly, controls, is controlled by or is under
common control with, the specified person. The Members agree that except as expressly
set forth herein, no Member shall be obligated to make any capital contribution
or loan to the Company after the date hereof.

 

3.                                       Allocations;
Distributions.

 

(A)                              Section 704
Capital Accounts.  Throughout the
term of the Company, a Section 704 Capital Account shall be maintained for
each Member.  Such Section 704
Capital Account shall be determined and maintained at all times in strict
accordance with all of the provisions of Treasury Regulations § 1.704-1(b)(2)(iv),
as amended from time to time.  In
connection with maintenance of such Section 704 Capital Accounts, the
Company shall maintain a set of books and records (the “Section 704 Books”)
in accordance with the accounting principles embodied in Regulation §1.704-1(b)(2)(iv),
as amended from time to time.

 

(B)                                Tax
Basis Capital Accounts.  In addition
to the Section 704 Capital Accounts, the Company shall maintain a “Tax
Basis Capital Account” for each Member to reflect such Member’s interest in the
Company determined with respect to the adjusted basis for tax purposes of
Company assets, and in connection therewith shall maintain a set of books and
records (the “Tax Basis Books”) in accordance with principles of federal income
tax accounting.

 

(C)                                Additional
Capital Accounts.  In addition to the
Section 704 Capital Accounts and the Tax Basis Capital Accounts, the
Company shall maintain additional capital accounts for each Member and such
books and records as the Managing Member deems appropriate.

 

(D)                               Asset
Revaluation.  Upon a change in the
interest of a Member in the Company, the assets of the Company may, upon the
approval of the Company’s Managing Member, be revalued on the books of the
Company to reflect the fair market value of such assets at the time of the
occurrence of such event, and the Section 704 Capital Accounts of the
Members shall be adjusted in the manner provided in Treasury Regulations § 1.704-1(b)(2)(iv)(f)
and (g).

 

3

 

(E)                                 Allocations.

 

(i)                                     After
giving effect to the special allocation provisions hereof, and except as set forth
in subsection (ii) below, profits and losses shall be allocated among the
Members in proportion to their respective Units.

 

(ii)                                  Notwithstanding
anything contained herein, any gain on sale of the Brand shall be allocated as
necessary so that after reducing the Members’ respective Section 704
capital accounts by any distribution made or to be made pursuant to Section 3(F)(ii),
and after then allocating such gain, the Members’ respective Section 704
capital account balances are in proportion to their respective Units.

 

(iii)                               The
following special allocations shall be made in the following order:

 

(a)                                  Minimum
Gain Chargeback.  If there is a net
decrease in minimum gain, as such term is used in Regulation §1.704-2(d), for a
Company taxable year, then the Members shall be allocated items of income and
gain in accordance with Regulation §1.704-2(f). 
This subsection (a) is intended to comply with the minimum gain
chargeback requirement in such section of the Regulations and shall be
interpreted consistently therewith.

 

(b)                                 Member
Loan Minimum Gain Chargeback.  If there
is a net decrease in minimum gain attributable to nonrecourse liability, as set
forth in Regulation Section 1.704-2(i), for a taxable year, then any
Member with a share of such minimum gain shall be allocated items of Company
income and gain in accordance with such Regulation.

 

(c)                                  Qualified
Income Offset.  If a Member unexpectedly
receives any adjustment, allocation, or distribution, described in Regulation
§1.704-1(b)(2)(ii)(d)(4), (5), or (6), items of income and gain shall be
specially allocated to such Member in an amount and manner sufficient to
eliminate, to the extent required by the Regulations, the Adjusted Capital
Account Deficit of such Member as quickly as possible.

 

(d)                                 Nonrecourse
Deductions.  Nonrecourse deductions, as
such term is used in Regulation §1.704-2(c), for any fiscal year or other
period shall be specially allocated among the Members in proportion to their
respective Units.

 

(e)                                  Member
Nonrecourse Deduction.  Any deduction
attributable to nonrecourse deductions, as such term is defined in Regulation
§1.704-2(i)(2), for any fiscal year or other period shall be specially
allocated to the Member who bears the risk of loss with respect to the
liability to which such nonrecourse deductions are attributable in accordance
with Regulation §1.704-2(i)(1).

 

(f)                                    Curative
Allocations.  The allocations set forth
herein (the “Regulatory Allocations”) are intended to comply with certain
requirements of Regulation §1.704-1(b). 
Notwithstanding any other provision of this Section, the

 

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Regulatory Allocations shall be taken into
account in allocating other Profits, Losses and items of income, gain, loss and
deduction among the Members so that, to the extent possible, the net amount of
such allocations of other Profits, Losses and other items and the Regulatory
Allocations to each Member shall be equal to the net amount that would have
been allocated to each such partner if the Regulatory Allocations had not been
taken into account.

 

(g)                                 With
respect to property of the Company that is in the Company’s Section 704
Books at a value that differs from the value of such property as reflected in
the Company’s Tax Basis Books, allocations of income, gain, loss and deduction
with respect to such property shall be shared among the Members in a manner
that takes into account the variations between the Tax Basis Book value of such
property and the Section 704 Book value of such property in the same
manner as variations between the adjusted tax basis and fair market value of
property contributed to a partnership are taken into account in determining a
partner’s share of tax items under Code Section 704(c).

 

(F)                                 Distributions.

 

(i)                                     Distributable
Cash Flow from operations shall be: (a) allocated among and distributed to the
Members in proportion to their respective Units; (b) calculated at least
annually as of the end of each year (and on any more frequent basis determined
by the Company’s Managing Member); and (c) distributed to the Members not later
than 90 days after the end of each year.

 

(ii)                                  Distributable
Cash Flow from the sale of the Brand shall be: 
(a) allocated as follows:  26.61%
to BNEW; 13.30% to TechCom; 39.63% to Dakota; and 20.46% to Buhler;  (b) distributed to the Members not later than
30 days after the receipt of the price therefore, provided that if the price is
anything other than cash, the Company may delay distribution until such time as
the price is converted into cash.

 

(iii)                               As
used herein, the term “Distributable Cash Flow” means cash revenues without
deduction for depreciation, but after deducting cash funds used to pay all
other expenses, debt payments, obligations, capital improvements and
replacements and after deducting additional cash funds in such amounts that the
Company’s Managing Member determines are appropriate to retain as a reserve for
contingencies.

 

(G)                                754
Election.  The Company may elect,
pursuant to Internal Revenue Code Section 754, to adjust the basis of the
Company property when a Member sells his interest in the Company.  If this election is made, then to the extent
an adjustment to the adjusted tax basis of any Company asset pursuant to
Internal Revenue Code Sections 734(b) or 743(b) is required, such adjustment to
the Section 704 Capital Accounts shall be treated as an item of gain or
loss, as the case may be, and such gain or loss shall be specially allocated to
the Members in a manner consistent with Treasury Regulations §1.704-1(b)(2)(iv)(m).

 

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(H)                               Liquidating
Distribution.  The proceeds of any
liquidation sale upon the dissolution of the Company shall be applied and
distributed within 90 days after the closing of any such sale in the following
order of priority: (i) First, to creditors other than the Members; (ii) Second,
to the Members other than for capital; (iii) Third, to the Members in
accordance with the positive balance in the Section 704 Capital Accounts
of each Member as such Section 704 Capital Account is determined after
making all adjustments thereto for the taxable year of the Company during which
the liquidation occurred, as are required by Regulation §1.704-1(b), such
adjustments to be made within the time specified in the Regulations.

 

4.                                       Transfers.

 

(A)                              Right
of First Refusal.  No Member shall
sell, assign or transfer his Units to any person, unless the Member desiring to
make the transfer (hereinafter referred to as the “Transferor”) shall have
first made the offer to sell hereinafter described and such offer shall not
have been accepted.

 

(i)                                     The
Transferor must first notify the Company in writing, which notice (the “Notice”)
shall consist of a statement of the intention to transfer, the name and address
of the prospective purchaser, the number of Units involved in the proposed
transfer, and the terms of the transfer.

 

(ii)                                  Within
30 days after receipt of the Notice, the Company may, at its option, and acting
as determined by the unanimous vote of the other Members, purchase all, but not
less than all, of the Units proposed to be transferred.  The Company shall exercise the election to
purchase by giving written notice thereof to the Transferor; failure to provide
such notice within the required time period shall constitute an election not to
purchase.  In any event, the election
notice shall specify the date for a closing of the purchase which shall not be
more than 30 days after the date of the election notice.

 

(iii)                               The
purchase price which shall be paid to the Transferor by the Company shall equal
the price set forth in, and shall otherwise be on the terms contained in, the
Notice.

 

(iv)                              If
the Company does not elect to purchase all of the Units proposed to be
transferred, Transferor may make a bona fide transfer to the prospective
purchaser named in the Notice, subject to subsection (B) below and
provided such sale is made in strict accordance with the terms therein
stated.  However, if the Transferor shall
fail to consummate such transfer within 45 days following the expiration of the
time herein provided for election, such Units shall again become subject to all
restrictions of this Agreement.

 

(B)                                Consent
of Members.  Notwithstanding anything
contained herein, no Member shall sell, transfer, convey, assign, pledge or in
any way encumber his Units in the Company, or any part thereof or interest
therein, without the unanimous written

 

6

 

consent of all other Members.  If such consent is obtained, the transferee
will be admitted as a Member only if and when the following conditions are met:

 

(i)                                     The
transferee must execute, and agree to hold such Units subject to this
Agreement; and

 

(ii)                                  The
sale or transfer must comply with an applicable exemption from the registration
requirements of the Securities Act of 1933, as amended, and applicable state
securities statutes and, if requested by the Company, the transferor or
transferee shall furnish the Company with an opinion of legal counsel to such
effect.

 

5.                                       Termination.

 

(A)                              Dissolution.  The Company shall be dissolved upon the
Termination of any Member, unless a majority-in-interest of the other Members
consent to continue the business of the Company within 30 days after the date
of Termination.

 

(B)                                Definitions.

 

(i)                                     As
used herein, “Termination” means: (a) a Bankruptcy Event; (b) a Member who is
an individual dies or is adjudicated an incompetent; (c) a trust that is a
Member terminates; (d) a corporation, limited liability company or partnership
that is a Member dissolves; or (e) if an estate is a Member, the distribution
of the estate’s membership interest.

 

(ii)                                  As
used herein, “Bankruptcy Event” means a Member that does any of the following:
(a) makes an assignment for the benefit of creditors; (b) files a voluntary
petition in bankruptcy; (c) is adjudicated a bankrupt or insolvent; (d) files a
petition or answer in any reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief proceeding under any
law or rule that seeks for itself any of those types of relief; (e) files an
answer or other pleading admitting or failing to contest the material
allegations of a petition filed against him or her in any proceeding seeking
the relief described in clause (d) of this subsection (ii); (f) a period
of 120 days has elapsed after the commencement against the Member of any
proceedings seeking the relief described in clause (d) of this subsection (ii),
and the proceeding has not been dismissed; (g) a period of 90 days has elapsed
after the appointment of a trustee, receiver, or liquidator for the Member or
for all or any substantial part of his or her properties without the Member’s
consent to acquiescence, and the appointment has not been vacated or stayed; or
(h) a period of 90 days has elapsed after the expiration of that stay, and the
appointment has not been vacated.

 

(C)                                Withdrawal.                               Except
as expressly permitted herein, no Member shall withdraw or retire or in any way
be entitled to a return of any part of its capital account without the
unanimous consent of the Members.

 

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6.                                       Management
Matters.

 

(A)                              Member
Meetings.

 

(i)                                     Place.  All meetings of the Members shall be held
either at the principal office of the Company or at any other place within the
United States, designated by the Managing Member.

 

(ii)                                  Annual
and Periodic Meetings.  An annual
meeting of the Members shall be held at 9:00 AM on the first Tuesday in May of
each year if not a legal holiday, and if a legal holiday, then at the same time
on the next succeeding day not a legal holiday. 
In the event that such annual meeting is omitted by oversight or
otherwise on the date herein provided for, the Managing Member shall cause a
meeting in lieu thereof to be held as soon thereafter as is convenient, and any
business transacted or elections held at such meeting shall be as valid as if
transacted or held at the annual meeting. 
Periodic meetings may be held from time to time at the discretion of the
Managing Member, who shall provide notice of any such periodic meetings pursuant
to subpart (iv) below.

 

(iii)  Special Meetings.  Special meetings of the Members may be called
by the Managing Member or by any two Members acting jointly. Calls for special
meetings shall specify the time, place and object or objects thereof, and no business
other than that specified in the call therefor shall be considered at any such
meetings.

 

(iv)                              Notice
of Meetings.  A written or printed
notice of the annual, periodic or any special meeting of the Members, stating
the time and place, and in case of special meetings, the objects thereof, shall
be given to each Member entitled to vote at such meeting appearing on the books
of the Company, by mailing same to his address as the same appears on the
records of the Company, not less than 7 days or more than 60 days before the
date of the meeting; provided, however, that no failure or irregularity of
notice of any annual meeting shall invalidate the same or any proceeding
thereat.  All notices with respect to any
Units to which persons are jointly entitled may be given to that one of such
persons who is named first upon the books of the Company and notice so given
shall be sufficient notice to all the holders of such shares.

 

(v)                                 Quorum.  A majority in number of the Units authorized,
issued and outstanding, represented by the holders of record thereof, in person
or by proxy, shall be requisite to constitute a quorum at any meeting of
Members.

 

(vi)                              Proxies.  Any Member entitled to vote at a meeting of
Members may be represented and vote thereat by proxy appointed by an instrument
in writing, subscribed by the Member, or by his duly authorized attorney, and
submitted to the Managing Member at or before such meeting.

 

(vii)                           Voting.  On any matter requiring the unanimous consent
or agreement of the Members, each Member shall have one (1) vote.  On any matter requiring the consent of a
majority in interest of the Members, each Member shall have one vote per Unit
and consent shall have been obtained if: (a) at a meeting of the Members, upon
due notice as required hereunder, at which a quorum is present, Members holding
at least 51% of the total votes present, in person and by proxy, vote in favor;
or (b) Members holding at least 51% of the outstanding Units consent in
writing.  For purposes of this Agreement,
a “Super Majority” shall have voted for or consented to any

 

8

 

matter if (a) at a meeting of the Members,
upon due notice as required hereunder, at which a quorum is present, Members
holding at least 75% of the total votes present, in person and by proxy, vote
in favor; or (b) holders of at least 75% of the outstanding Units consent in
writing.

 

(B)                                Managing Member.  As indicated above, Dakota shall serve as the
Managing Member of the Company.  The
Managing Member shall make all decisions with respect to the Company, its
business, assets and operations that are not expressly reserved or delegated to
the unanimous or Super Majority vote of the Members of the Company pursuant to
the terms and conditions of this Agreement. 
Dakota shall continue to serve as the Managing Member until an amendment
to this Agreement is unanimously adopted by the Members appointing another
Member to serve as the “Managing Member” hereunder.

 

(C)                                Transactions
Requiring Unanimous Consent.  Notwithstanding
anything contained herein to the contrary, the unanimous consent of the Members
shall be required to: (a) sell all or substantially all assets of the Company,
and/or sell the Brand; (b) consummate any merger, reorganization or
consolidation involving the Company where the Company is not the surviving
entity; or (c) admit any new Member or issue Units to any party other than a
then current Member.

 

(D)                               Transactions
Requiring Super Majority Vote. 
Notwithstanding anything contained herein to the contrary, the following
matters shall be approved or consented to by the Members only upon a Super
Majority vote: (a) grant or sell licensing, manufacturing or distribution
rights to Brand rice or potato products if such rights are granted to a Member
or Affiliate; (b) pay any fee or remuneration to, or enter into, amend or
change any business contract or arrangement with, any Member or Affiliate
thereof; or (c) appoint any officer or pay any salary, wage, fee or other
remuneration to any officer; or (d) purchase any material asset for or on
behalf of the Company outside the ordinary course of business; or (e) incur any
material liability, obligation or expense for or on behalf of the Company
outside the ordinary course of business.

 

(E)                                 Transactions With Members.

 

(i)                                     The
Company is hereby authorized to engage TechCom to manage the implementation of
the licensed Technology and to provide additional management services within
the areas of metabolic science, clinical research, IP development and
credential development, and in consideration therefore to pay TechCom for
services rendered and for expenses incurred in performing such services, upon
the Company’s receipt of appropriate and timely invoices for such services from
TechCom, supported by such supplemental documentation as may be satisfactory to
the Managing Member. TechCom shall provide such services as an independent
contractor, and payments of the management fee to TechCom shall constitute
payments for services rendered and shall thus be accounted for as an expense of
the Company and be paid prior to any distribution of Distributable Cash Flow
hereunder.

 

(ii)                                  Subject
to the terms hereof, and except for expenses incurred by TechCom in performing
its management services under subsection (i) above for which TechCom

 

9

 

shall be responsible, the Members further
authorize the Company to reimburse a Member for any reasonable, actual,
out-of-pocket expenses incurred by the Member in performing its responsibilities
hereunder or in connection with business of the Company, within 30 days after
approval of payment by the Managing Member, and all unreimbursed expenses shall
be paid prior to distribution of Distributable Cash Flow.

 

(iii)                               Subject
to the terms and conditions of this Agreement, TechCom previously granted a
license to the Company with respect to the Technology.  TechCom confirms and agrees that it hereby
grants to the Company an unconditional, irrevocable, royalty-free, perpetual,
exclusive, world wide license to use TechCom’s patent pending technology to
market and manufacture pasta, rice and potatoes only (the “Technology”),
including all improvements to the Technology hereafter developed by TechCom,
and TechCom shall promptly disclose to the Company in writing any improvements
to the Technology hereafter made by TechCom.  
The Company may, at its expense, make such improvements to the
Technology as it deems appropriate subject to the prior consent of TechCom, and
the license granted hereunder shall cover such improvements, provided the
Company shall promptly disclose to TechCom in writing any improvements to the
Technology made by the Company, and TechCom shall be free, at no cost to
TechCom, to use such improvements with respect to other food products.  TechCom hereby warrants to the Company that
to the best of TechCom’s knowledge, the Company’s use of the Technology as
contemplated hereby do not infringe the intellectual property rights of any
third party.  The Company and TechCom
shall, at the request of either the Company or TechCom, enter into a license
agreement confirming the terms of such license which shall contain normal and
customary terms not inconsistent with the terms hereof and which shall provide
as follows:

 

(1)                                  If the Company
desires to use the Technology in any market outside of the United States of
America and TechCom has not yet filed patent applications in such market, then
the Company agrees to pay all expenses and fees required during the period the
Company uses the Technology in such market pursuant to such license for the
preparation, filing, prosecution, maintenance, annuities related to any patent
application filed by TechCom, such costs to be paid by the Company within 30
days of delivery of an invoice and reasonable supporting documentation;

 

(2)                                  If the Company or
TechCom becomes aware of any infringement or alleged infringement of any patent
rights covering the Technology, such party shall immediately notify the other
party in writing of the name and address of the alleged infringer, the alleged
acts of infringement and any available evidence of infringement, and the
parties shall work jointly in good faith to use their reasonable best efforts
to prevent infringement and defend the patents, provided all legal fees to do
so shall be paid for by the Company, and any litigation shall be directed by
and legal counsel shall be engaged by TechCom, all with consultation by the
Company;

 

(3)                                  As between the
Company and TechCom, the Company shall be solely responsible for all product
liability claims and damages arising from the

 

10

 

manufacture, sale or use of any Brand
products , and shall obtain reasonable and appropriate insurance therefore; and

 

(4)                                  Except for
manufacturing and/or distribution contracts for Brand products or a sale by the
Company of all or substantially all of its assets or any other liquidation, the
Company shall not assign or sublicense such license rights without the prior
written consent of TechCom.

 

(iv)                              The
Company has granted exclusive manufacturing rights for Brand pasta products to
Dakota pursuant to the terms of the Manufacturing Agreement dated December 26,
2003.  The Company has authorized Dakota
to distribute the Brand products pursuant to the Services Agreement dated December 26,
2003.  The Company shall be authorized
(but not obligated) to grant exclusive manufacturing rights for Brand rice
and/or potatoes to Dakota, subject to Dakota’s capability to manufacture such
products and subject to approval by the Super Majority vote of the Members.

 

(F)                                 Certain Market
Transactions.  The Members
acknowledge that TechCom desires the Company to market and sell products the
same or substantially the same as the Brand products except under a different
brand name and different price, in connection with humanitarian or charitable
causes related to public health projects, institutional markets (e.g., school
lunch, feeding programs) and governmental markets.  The Members agree to consider such ventures
in good faith and to work cooperatively with TechCom to consummate such
ventures.

 

7.                                       Additional
Interests.  Any membership interest
in the Company issued to any Member after the date hereof (including any
additional subscription or contribution or any purchase of an already outstanding
interest) shall automatically become subject to the terms and restrictions
hereof without the requirement of further action.  The term “Units” as used herein shall include
any such additional interest.

 

8.                                       Legend.  Each certificate, if any, for any interest in
the Company now held or hereafter issued by the Company shall, in addition to
any other legend required by applicable law, be endorsed with a legend
indicating that the transfer of such Unit is subject to the restrictions
contained herein.

 

9.                                       Financial
Reporting.

 

(A)                              The Company shall maintain and provide to each Member upon request, the
financial statements listed in clauses (i) and (ii) below, prepared, in each
case in accordance with then-current Generally Accepted Accounting Principles
(other than Capital Contributions, Profits and Losses and other allocations,
distributions and other adjustments with respect to Member’s Capital Accounts,
which shall construed, determined and reported to Members in accordance with
this Agreement.)

 

(i)                                     As soon as practicable following the end of each Company fiscal year (and
in any event not later than ninety (90) days after the end of such fiscal
year), a balance sheet of the Company as of the end of such fiscal year and the
related statements of operations, Members’

 

11

 

Capital Accounts and changes therein, and
cash flows for such fiscal year, together with appropriate notes to such
financial statements, all of which shall be audited and certified by the
Company’s accountants, and in each case, to the extent the Company was in
existence, setting forth in comparative form the corresponding figures for the
immediately preceding fiscal year.

 

(ii)                                  As soon as reasonably practicable following the end of each of the first
three fiscal quarters of each fiscal year and following the end of each of the
first eleven (11) fiscal months of each fiscal year (and in any event not later
than thirty (30) days after the end of such fiscal quarter or fiscal month, as
the case may be), an unaudited balance sheet of the Company as of the end of
such fiscal quarter or fiscal month, as the case may be, and the related
unaudited statements of operations and cash flows for such fiscal quarter or
fiscal month, as the case may be, and for the fiscal year to date, in each
case, to the extent the Company was in existence, setting forth in comparative
form the corresponding figures for the prior fiscal year’s fiscal quarter or
fiscal month, as the case may be, and the fiscal quarter or fiscal month, as
the case may be, just completed.

 

(B)                                Within 90 days after the end of the Company’s fiscal year, the Company
shall furnish each Member with all information necessary for the preparation of
such portion of their federal income tax return as it relates to the Company.

 

10.                                 Records.  The Members and their designated
representatives shall be permitted access to Company records at all reasonable
times on reasonable prior notice for the purpose of evaluating or protecting
their investment in the Company or to obtain information necessary to comply
with legal obligations.

 

11.                                 Tax Matters Partner.  The Managing Member, or such person
designated by the Managing Member from time to time, shall be the “Tax Matters
Partner” as defined in Code §6231(a)(7). The Tax Matters Partner shall, at the
Company’s expense, exercise due diligence on behalf of the Company in
responding to and resisting any Internal Revenue Service attempts to adjust
Company items of income, gain, loss, deduction or credit.  The specific actions to be taken by the Tax
Matters Partner, including commencement of litigation, shall be determined by
it in its sole discretion.  At the
Company’s expense, the Tax Matters Partner may retain such counsel and other
advisors as it deems necessary in order to promptly respond to or pursue any
Internal Revenue Service inquiry, statement, or other administrative or
judicial proceeding.

 

12.                                 Dissolution of the
Company.

 

(A)                              Dissolution.  The Company shall terminate and be dissolved
upon the first to occur of the following: (i) December 31, 2050; (ii) the
sale or disposition of all or substantially all assets of the Company; (iii)
upon a Super Majority vote of the Members; or (iv) upon the Termination of a
Member as provided in Section 5, unless the requisite Members elect to
continue the Company in accordance with the terms thereof.

 

(B)                                Liquidation.  Upon the dissolution of the Company, the
Managing Member shall proceed to liquidate and wind up the Company.  Subject to the unanimous consent of the
Members, all assets of the Company shall be sold at public or private sale, and
on approved terms and conditions; provided that if the Members are unable to
reach unanimous

 

12

 

agreement within 30 days after dissolution (unless extended by their
unanimous consent), all assets of the Company shall be sold by public auction
after at least 30 days’ prior written notice to all of the Members.

 

13.                                 Power of
Attorney.  Each Member
hereby irrevocably constitutes and appoints the Managing Member, with full
power of substitution as his true and lawful attorney in his name, place and
stead to make, execute, acknowledge, file or record any and all documents
necessary or appropriate to duly organize, qualify or maintain the Company as a
limited liability company under the laws of Ohio or any other applicable
jurisdiction, or to record the termination and dissolution thereof, or to
consummate the sale or transfer of any interest in accordance with the terms
hereof or amendment hereto arising therefrom. 
It is expressly intended by each of the Members that the power of
attorney granted hereunder is coupled with an interest, and it is agreed that
said power of attorney shall survive the delivery of an assignment by said
Member of the whole or any portion of his interest, provided that the foregoing
power of attorney of the assignor Member shall survive the delivery of such
assignment solely for the purpose of enabling the Members to execute, sign,
acknowledge and file any and all instruments necessary to effect the
substitution of the assignee as a Member.

 

14.                                 Liability of
Officers, Managers and Members.

 

(A)                              Limitation
on Liability.  No Manager or Member
(or agent, employee, officer, director or affiliate thereof) shall be liable,
responsible or accountable in damages or otherwise to the Company or any Member
for any loss, damage, liability or expense incurred by the Company or Member by
reason of any act, alleged act or omission of such Manager or Member (or agent,
employee, officer, director or affiliate thereof) which was performed in good
faith on behalf of the Company in a manner reasonably believed by it to be
within the scope of the authority granted to it hereunder or by law, and in, or
not opposed to, the best interests of the Company, provided that such Manager
or Member (or agent, employee, officer, director or affiliate thereof) is not
guilty of gross negligence or willful misconduct. Except as otherwise provided
in the preceding sentence, notwithstanding anything contained herein, no Member
(or agent, employee, officer, director or affiliate thereof) shall be liable
under a judgment, decree, or order of a court, or in any other manner, for the
debts or any other obligations or liabilities of the Company, nor shall any
Member be required to make any capital contribution or loan to the Company
after the date hereof except as set forth in section 2(A) above, nor shall
any Member be required to restore a deficit balance in its capital accounts or,
after its capital contributions set forth in section 2(A) have been made,
to make any additional contributions, assessments, or payments to the Company.

 

(B)                                Indemnification.  The Company hereby agrees to indemnify and
hold harmless each Manager and Member (or agent, employee, officer, director or
affiliate thereof) from and against any claim, demand, loss, damage, liability
or expense by reason of any act, alleged act or omission performed or omitted
by any such party in good faith on behalf of the Company in a manner reasonably
believed it to be within the scope of the authority conferred by this Agreement
or by law and in, or not opposed to, the best interests of the Company, so long
as such party is not guilty of gross negligence or willful misconduct.

 

13

 

15.                                 Public
Announcements.  No Member, nor any of
their respective affiliates or representatives, shall issue any press release
or public statement concerning this Agreement, the formation or existence of
the Company or the transactions contemplated hereby without obtaining the prior
written or verbal approval of the other Members, unless such disclosure is
required by applicable law or regulation or by an order from a court of
competent jurisdiction;  provided,
however, that the Member intending to make such release shall give the other
Members prior notice and shall use its best efforts consistent with such
applicable law, regulation or order to consult with the other parties with
respect to the text of any such release of information.

 

16.                                 Counterparts.  This Agreement may be executed in
counterparts which taken together shall constitute one instrument,
notwithstanding the fact that all parties have not executed this Agreement on
the same date or that all signatures do not appear on the same copy.

 

17.                                 Notices.  All notices, offers, acceptances, waivers and
other communication under this Agreement shall be in writing and shall be
sufficiently given when received and receipted for through certified mail,
return receipt requested, or when personally delivered.  Except as otherwise provided in this
Agreement, time shall be counted to or from the date of personal receipt or the
date certified delivery is indicated as having been made.

 

18.                                 Captions.  Captions are included for convenient
reference only and shall not affect the interpretation of any provision of this
Agreement.

 

19.                                 Severability.  The invalidity, illegality, or
unenforceability of any provision of this Agreement shall not affect or impair
the validity, legality, and enforceability of the other provisions hereof and
the Agreement shall be construed in all respects as if such invalid or
unenforceable provisions were omitted.

 

20.                                 Waiver.  Neither any course of conduct nor any delay
by any of the parties hereto in exercising any rights hereunder shall waive any
rights of such party under this Agreement.

 

21.                                 Modifications.  This Agreement may be amended only upon the
unanimous consent of the Members; provided that the Managing Member is hereby
authorized to amend this Agreement to reflect any transfers of Units upon any
such transfer.

 

22.                                 Choice of Law.  This Agreement shall be governed by and
construed in accordance with the internal laws of the State of Ohio, and in
particular by ORC Section 1705.01 et  seq., and shall be
entered in the record of minutes of the proceedings of the members of the
Company.

 

14

 

IN
WITNESS WHEREOF, the parties have executed this Agreement effective as of the
date first set forth above.

 

	
  Witnessed By:

  	
  B-New, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Jonathan Hall

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Principal

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TechCom Group, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Jonathan Scot Anfinsen

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Buhler, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Beat Haeni

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Head Corporate Development – Buhler

  Group

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Achim Klotz

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  President-Buhler, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dakota Growers Pasta Company, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Timothy J. Dodd

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  President, Chief Executive Officer

  	
   

  
						

 

15

 

EXHIBIT A

 

Date:  Effective May 1, 2005

 

	
   

  	
   

  	
  No. of

  	
   

  
	
  Member

  	
   

  	
  Units

  	
   

  
	
  B-New, LLC

  	
   

  	
  15.12

  	
   

  
	
  TechCom
  Group, LLC

  	
   

  	
  17.56

  	
   

  
	
  Buhler, Inc.

  	
   

  	
  27.00

  	
   

  
	
  Dakota
  Growers Pasta Company, Inc.

  	
   

  	
  52.32

  	
   

  

 

16

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