Document:

exv10w25

 

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
	 	 	 

 

 

EXHIBIT A

US BIOENERGY CORPORATION

STOCK OPTION AWARD TO

Dave VanderGriend

 

THIS AGREEMENT is between US BioEnergy Corporation, (the “Company”) and the individual named above
(the “Optionee”). Pursuant to the Company’s 2005 Stock Incentive Plan (the “Plan”), the Company
and the Optionee hereby agree as follows:

	1.	 	Grant. The Company grants to the Optionee under the Plan, and the Optionee accepts
from the Company, the following Stock Option to purchase the Company’s Class A common stock
(“Shares”):

	 	 	 	 
	 
	 	 
	 	Date of Grant

	 	April 30,2005
	 
	 	 	 	 
	 	Number of Shares subject to the Stock Option

	 	100,000
	 
	 	 	 	 
	 	Exercise Price per Share

	 	$1.00
	 
	 	 	 	 
	 	Type of Stock Option

	 	Non-qualified
	 
	 	 	 	 
	 	Expiration Date of Stock Option

	 	April 30,2008
	 
	 	 	 	 
	 	Time and Amount of Shares Exercisable

	 	100,000 on or after date of grant.

	2.	 	Incorporation of Plan. This Stock Option consists of this Award page, the
separate Terms and Conditions for Stock Option Awards, which contains additional terms
governing the acceleration of the exercise and earlier termination of the option. This Award
and the Terms and Conditions are subject to the terms and conditions of the Plan and to all
interpretations, amendment, rules and regulations established in connection with the Plan.
Any capitalized terms shall be as defined in the Plan. In the event of any inconsistency
between the Terms and Conditions and the Plan as so interpreted or amended, the Plan will
control.

	 	 	 	 	 
	 	US BIOENERGY CORPORATION

 	 
	 	By:  	/s/  GORDON
OMMEN	 
	 	 	 	 
	 	 	Its: 	 	 

1

 

ADDITIONAL TERMS AND CONDITIONS

OF NONQUALIFIED OPTIONS UNDER THE

US BIOENERGY CORPORATION 2005 STOCK INCENTIVE PLAN

     1. Active Service. The Optionee must, in the case of an employee, be in the employ of
the Company, or in the case of a non-employee director or Consultant, be obligated to serve in
that capacity on the relevant dates specified in the Award on which the option first becomes
exercisable with respect to the Shares.

     2. Change in Control. In the event the Optionee, in the case of an employee, is in
the employ of the Company, or in the case of a non-employee director or Consultant, is obligated
to serve in that capacity, on the effective date of a Change in Control of the Company, then the
Optionee may exercise this Option as to the total number of Shares remaining under this Option,
notwithstanding the installment exercise specified in the Award.

     3. Termination of Option. Unless the Committee determines otherwise, the period of
exercise of the vested and exercisable portion of the Award shall end on the earliest of the
Expiration Date specified in the Award or any of the following:

     3.1 Disability; death. If the Optionee ceases to be employed by (or in
the case of a non-employee director or Consultant, to render services to) the
Company or any subsidiary, by reason of the Optionee’s death or Disability, the
vested portion of the Award may thereafter be exercised, to the extent it was
exercisable at the time of death or Disability (or on such accelerated basis as the
Committee shall determine at or after grant), by the Optionee (or the legal
representative of the estate or the legatee of the Optionee under the will of the
Optionee), but may not be exercised more than one year after the date of such death
or Disability; or

     3.2 For Cause or Resignation. If an Optionee’s ceases to be employed by
(or in the case of a non-employee director or Consultant, to render services to) the
Company or any subsidiary and such termination is by the Company for Cause or by the
Optionee, the Award and all rights associated therewith, whether then exercisable or
not, will thereupon terminate immediately; or

     3.3 Without Cause. If the Optionee ceases to be employed by (or in the
case of a Consultant, to provide services to) the Company or any subsidiary, and
such termination is by the Company for any reason other than death, Disability or
for Cause, the vested portion of the Award may thereafter be exercised, to the
extent; it was exercisable at the time of such termination, for 90 days from the
date of such termination; or

     3.4 Change in Control. In the event of a Change in Control of the
Company, on such earlier date as determined by the Committee in accordance
with the terms of the Plan.

2

 

Neither the Plan nor the Award shall confer any right to continued service with the Company,
nor interfere with the right of the Optionee to resign or be removed as an employee, director or
Consultant of the Company,

     4. Method of Exercise of Option. Subject to the terms of the Plan, the option may be
exercised in whole or in part by filing a written notice with the Secretary of the Company at its
headquarters prior to the Company’s close of business on the last business day that occurs prior to
the Expiration Date. Such notice shall specify the number of Shares which the Optionee elects to
purchase, and shall be accompanied by payment of the Exercise Price for such Shares indicated by
the election in cash, check or bank draft. The Committee, in its discretion, may permit the
Optionee to pay the Exercise Price by delivery of a promissory note or by delivering Shares that
have been held by the Optionee for at least six months, the Fair Market Value of which is equal to
the Exercise Price. The Option shall not be exercisable if and to the extent the Company determines
that such exercise would violate applicable state or Federal securities laws.

     5. Withholding. All transfers and issuances under the Award are subject to
withholding of all applicable taxes if any. The Committee, in its discretion, and subject to such
requirements as the Committee may impose prior to the occurrence of tax withholding pursuant to
the Award, may permit the withholding obligations to be satisfied through cash payment by the
Optionee, through the surrender of Shares which the Optionee already owns, or through the
surrender of Shares to which the Optionee is otherwise entitled under the Plan; provided, however,
that such Shares may be used to satisfy not more than the Company’s minimum statutory withholding
obligation (based on minimum statutory withholding rates for Federal and state tax purposes,
including payroll taxes, that are applicable to such supplemental taxable income).

     6. Status and Rights as a Shareholder. Neither the Optionee nor the Optionee’s
executor, administrator, heirs, or legatees, shall be or have any rights or privileges of a
shareholder of the Company in respect of the Shares transferable upon exercise of the Option
granted hereunder, unless the transferee has caused the Optionee’s name to be entered as the
shareholder of record on the books of the Company, and if Shares are in certificate form, such
certificates representing the Shares have been endorsed, transferred and delivered.

     7. Limitations on Shares.

     3. As a further condition to the Award and the issuance of Shares to the Optionee upon
exercise of the option, the Optionee agrees to the following:

     7.0 Investment Intent.

     7.1 Prior to the receipt of the certificates pursuant to the exercise of the
option granted hereunder, the Optionee shall, if required in the Company’s
discretion, demonstrate an intent to hold the Shares acquired by exercise of
the option for investment and not with a view to resale or distribution thereof to
the public, by delivering to the Company an investment certificate or letter in
such form as the Company may require.

     7.2 Compliance with Securities Laws. Shares acquired upon exercise
of this Option may not be sold, transferred, pledged or otherwise disposed of
unless the Shares are eligible for resale pursuant to an effective registration under

3

 

the Securities Act of 1933, of unless the Company has received an opinion of counsel
satisfactory to the Company that said registration is not required.

     7.3 Lock-Up. In the event the Company advises the Optionee that it
plans an underwritten public offering of its Common Stock in compliance with the
Securities Act of 1933, as amended, and the underwriter(s) seek to impose
restrictions under which certain shareholders may not sell or contract to sell or
grant any option to buy or otherwise dispose of part or all of their stock purchase
rights of the underlying Common Stock, the Optionee will not, for a period not to
exceed 180 days from the effective date of the Company’s registration statement,
sell or contract to sell or grant an option to buy or otherwise dispose of any shares of Stock acquired pursuant to the exercise of any Stock Option granted to
Optionee pursuant to the Plan or any of the underlying shares of Stock without the
prior written consent of the underwriter(s) or its representative(s).

     7.4 Sales by Affiliates. The Optionee will comply with Rule 145 of the
Securities Act of 1933 and any other restrictions imposed under other applicable
legal or accounting principles if the Optionee is an “affiliate” (as defined in
such applicable legal and accounting principles) at the time of the transaction,
and the Optionee will execute any documents necessary to ensure compliance with
such rules.

The Company reserves the right to place a legend on any stock certificate issued upon the exercise
of a Stock Option pursuant to the Plan to assure compliance with this Section 7.

     8. Tag Along Rights. If the holders of a majority of the voting power of the Company’s
capital stock desire to, collectively, sell or otherwise dispose of a majority of the stock having
such voting power (a “Sale Transaction”), they may give a notice (the “Sale Notice”) to all
shareholders who have acquired Shares by the exercise of any Stock Option granted under the Plan.
The holders of such Shares shall then be obligated to take all lawful action requested by the
shareholders giving the Sale Notice to sell or transfer their Shares as a part of the Sales
Transaction for the same price per Share as is received by the shareholders giving the Sales
Notice. The actions requested may include, without limitation, the deposit of certificates and duly
executed stock powers with an escrow agent designated by the shareholders giving the Sales Notice.
The provisions of this Section 8 will terminate upon completion by the Company of an initial public
offering of its stock.

     9. Right of Repurchase. In the event of the termination of the Optionee’s employment
for any reason, the Company may, upon written notice at any time thereafter, repurchase any Shares
acquired by the Optionee pursuant to the exercise of any stock option and the Optionee must sell
any such shares to the Company, with the per Share price being the Fair Market Value of the Shares
as of the date of the termination of the Optionee’s employment, or, in the case of a termination
for Cause, an amount equal to the lesser of Fair Market Value or the Exercise Price for the
Shares, Such payment shall be made in the form of cash or promissory note payable in no more than
five annual installments and bearing a reasonable rate of interest. The provisions of this Section
9 will terminate upon completion by the Company of an initial public offering of its stock.

4exv10w29

 

Exhibit 10.29

US BIOENERGY CORPORATION

STOCK OPTION AGREEMENT

THIS AGREEMENT dated November 17, 2005 is between US BioEnergy Corporation (the “Company”) and
Global Ethanol, Inc. (the “Optionee”).

WHEREAS, this Agreement is made in connection with that certain Termination Agreement dated
November 17, 2005 by and between the Company and US Bio Resource Group, LLC (the “Termination
Agreement”) and is the stock option agreement referenced in the Termination Agreement;

WHEREAS, this Agreement incorporates the terms of the Company’s 2005 Stock Incentive Plan (the
“Plan”),

NOW, THEREFORE, in consideration of the foregoing, and the respective covenants and agreement of
the parties contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and the Optionee hereby agree as follows:

	1.	 	Grant. The Company grants to the Optionee, and the Optionee accepts from the Company,
the following Option to purchase shares (the “Shares”) of the Company’s Class A common stock
(“Stock”):

	 	 	 
	Date of Grant

	 	November 17, 2005
	 
	 	 
	Number of Shares subject to the Option

	 	3,250,000 
	 
	 	 
	Exercise Price per Share

	 	$1.00 
	 
	 	 
	Type of Option

	 	Non-qualified
	 
	 	 
	Expiration Date of Option

	 	November 17, 2015
	 
	 	 
	Vesting

	 	This Option shall be vested in
full, and exercisable in full, as
to all of the Shares as of the Date
of Grant.

	2.	 	Incorporation of Terms and Conditions: Supremacy of Plan. This Option consists of
this Option page and the separate Terms and Conditions of Nonqualified Options. This Option
and the Terms and Conditions are subject to the terms and conditions of the Plan and to all
interpretations, amendment, rules and regulations established in connection with the Plan. Any
capitalized terms in this Option or the attached Terms and Conditions shall have the
respective meanings assigned to them in the Plan. In the event of any inconsistency between
the Terms and Conditions and the Plan as so interpreted or amended, the Plan will control.

 

 

     IN WITNESS WHEREOF, this Stock Option Agreement has been executed and delivered as of the date
first set forth above.

	 	 	 	 	 
	 	US BIOENERGY CORPORATION

 	 
	 	By:	  /s/ Gordon Ommen
 	 
	 
	 	Its 	  President/CEO	 
	 	 	 	 
	 

	 	 	 	 	 
	Accepted and Agreed:

GLOBAL ETHANOL, INC.

 	 	 
	By:	  /s/ Roland Fagen
 	 	 
	 
	Its	  CEO	 	 
	 	 	 	 
	 

[Signature page to Stock Option Agreement]

2

 

Additional Terms And Conditions

These Additional Terms and Conditions relate to that certain Non-Qualified Stock Option Agreement
Dated November 17, 2005 Between US BioEnergy Corporation and Global Ethanol, Inc. (the “Optionee”)
which incorporates the terms of the US BioEnergy Corporation 2005 Stock Incentive Plan.

     1. Termination of Option. Unless the Committee determines otherwise, the period of
exercise this Option shall end on the earliest of the Expiration Date specified in this Option or
any of the following:

	 	1.1	 	For Cause or Resignation. If Roland J. Fagen ceases to render services
to the Company as a director, officer, employee or consultant and such termination is
by the Company for Cause, this Option and all rights associated therewith will
thereupon terminate immediately; or
	 
	 	1.2	 	Change in Control. In the event of a Change in Control of the Company,
on such earlier date as determined by the Committee in accordance with the terms of the
Plan.

Neither the Plan nor this Option shall confer any right to continued service with the Company, nor
interfere with the right of the Optionee to resign or be removed as an director, officer, employee
or consultant of the Company.

     2. Method of Exercise of Option. Subject to the terms of the Plan, this Option may be
exercised in whole or in part by filing a written notice with the Secretary of the Company at its
headquarters prior to the Company’s close of business on the Expiration Date. Such notice shall
specify the number of Shares which the Optionee elects to purchase, and shall be accompanied by
payment of the Exercise Price for such Shares indicated by the election in cash, check or bank
draft. At its election, the Optionee may pay the Exercise Price by delivery of a promissory note or
by delivering Shares that have been held by the Optionee for at least six months, the Fair Market
Value of which is equal to the Exercise Price. This Option shall not be exercisable if, and to the
extent, the Company determines that such exercise would violate applicable state or federal
securities laws.

     3. Withholding. All transfers and issuances under this Option are subject to
withholding of all applicable taxes, if any. The Committee, in its discretion, and subject to such
requirements as the Committee may impose prior to the occurrence of tax withholding pursuant to
this Option, may permit the withholding obligations to be satisfied through cash payment by the
Optionee, through the surrender of Shares which the Optionee already owns, or through the surrender
of Shares to which the Optionee is otherwise entitled under the Plan; provided, however, that such
Shares may be used to satisfy not more than the Company’s minimum statutory withholding obligation
(based on minimum statutory withholding rates for federal and state tax purposes, including payroll
taxes, that are applicable to such supplemental taxable income).

3

 

     4. Status and Rights as a Shareholder. Nothing in this Option shall confer on the
Optionee any right with respect to continuation of any relationship with the Company or any of its
subsidiaries, whether as a director, officer, employee or consultant or otherwise, or limit the
right of the Company to terminate any relationship with Optionee at any time, with or without
cause. Neither the Optionee nor the Optionee’s successors or assigns shall be or have any rights or
privileges of a shareholder of the Company in respect of the Shares issuable upon exercise of this
Option, unless the Company has caused the Optionee’s name to be entered as the shareholder of
record on the books of the Company, and if Shares are in certificate form, such certificates
representing the Shares have been issued and delivered.

     5. Transferability of Award. This Option is not transferable in any manner by the
Optionee. The terms of this Option shall be binding upon the successors and assigns of the
Optionee.

     6. Limitations on Shares. As a further condition to this Option and the issuance of
Shares to the Optionee upon exercise of the option, the Optionee agrees to the following:

	 	6.1	 	Investment Intent. Prior to the receipt of the certificates pursuant to
the exercise of this Option, the Optionee shall, if required in the Company’s
discretion, demonstrate an intent to hold the Shares acquired by exercise of this
Option for investment and not with a view to resale or distribution thereof to the
public, by delivering to the Company an investment certificate or letter in such form
as the Company may require.
	 
	 	6.2	 	Compliance with Securities Laws. Shares acquired upon exercise of this
Option may not be sold, transferred, pledged or otherwise disposed of unless the Shares
are eligible for resale pursuant to an effective registration under the Securities Act
of 1933, or unless the Company has received an opinion of counsel satisfactory to the
Company that said registration is not required.
	 
	 	6.3	 	Lock-Up. In the event the Company advises the Optionee that it plans an
underwritten public offering of its Common Stock in compliance with the Securities Act
of 1933, as amended, and the Company or the underwriter(s) seek to impose restrictions
under which certain shareholders may not sell or contract to sell or grant any option
to buy or otherwise dispose of part or all of their stock purchase rights of the
underlying Common Stock, the Optionee will not, for a period not to exceed 180 days
from the effective date of the Company’s registration statement, sell or contract to
sell or grant an option to buy or otherwise dispose of any shares of Stock acquired
pursuant to the exercise of any Award granted to Optionee pursuant to the Plan or any
of the underlying shares of Stock without the prior written consent of the
underwriters) or its representative(s).
	 
	 	6.4	 	Sales by Affiliates. The Optionee will comply with Rule 145 of the
Securities Act of 1933 and any other restrictions imposed under other applicable legal
or accounting principles if the Optionee is an “affiliate” (as defined in such
applicable legal and accounting principles) at the time of the transaction, and the
Optionee will execute any documents necessary to ensure compliance with such rules.

4

 

     The Company reserves the right to place a legend on any stock certificate issued upon the
exercise of an Award pursuant to the Plan to assure compliance with this Section 6.

     7. Right of Repurchase. In the event of the termination of the Optionee’s service to
the Company as a director, officer or employee for Cause, the Company may, upon written notice at
any time thereafter, repurchase any Shares acquired by the Optionee pursuant to the exercise of
this Option and the Optionee must sell any such Shares to the Company, with the per Share price
payable by the Company to the Optionee for such Shares being an amount equal to the lesser of Fair
Market Value or the Exercise Price for the Shares. Such payment shall be made in the form of cash
or promissory note payable in no more than five annual installments and bearing a reasonable rate
of interest.

     8. Proxy. Upon exercise of the Option, the Shares to be issued to the Optionee shall
automatically be subject to the form of proxy in favor of CHS Inc. attached hereto as Exhibit A and
in connection with the grant of this Option, the Optionee shall execute and deliver to CHS Inc.
such form of proxy in contemplation of this section. Following the exercise of this Option in
accordance with its terms, Optionee shall again execute and deliver such form of proxy, if
requested by the Company, and Optionee shall take such other further action and execute such other
documents as may reasonably be requested by the Company, to further the purposes of this section.

5

 

Exhibit
A

IRREVOCABLE PROXY

     WHEREAS, the undersigned is executing this Irrevocable Proxy in connection with that certain
Subscription Agreement dated as of the date below (the “Subscription Agreement”) between US
BioEnergy Corporation (the “Company”) and CHS Inc. (“CHS”).

     The undersigned hereby irrevocably constitutes and appoints Jay Debertin or John Schmitz, or
either of them, with full power of substitution and revocation, the undersigned’s true and lawful
agent, attorney and proxy, for the undersigned and in the undersigned’s name, place and stead, to
vote, or otherwise give consent with respect to, all voting securities of the Company held by the
undersigned at any and all meetings, regular or special, of holders of voting securities of the
Company or any adjournment(s) or postponement(s) thereof, giving and granting to each of said
attorney all the powers the undersigned would possess if personally present at such meeting:

	 	(a)	 	for the election to the Board of Directors of the Company of such persons as CHS is
entitled to appoint pursuant to the terms of Section 8 of the Subscription Agreement (each,
an “Appointee”) until the undersigned shall receive a notice from the Company and CHS that
such appointment right has been terminated;
	 
	 	(b)	 	once elected, for the presence at all times on the Board of Directors of the Company of
each Appointee until the undersigned shall receive a notice from the Company and CHS that
such appointment right has been terminated.

     The undersigned agrees that the undersigned shall not transfer any voting securities held by
the undersigned unless such transferee agrees to be bound by the provisions of this proxy.

     By executing this proxy, the undersigned hereby revoke all proxies heretofore made by the
undersigned with respect to the subject matter contained herein. The undersigned acknowledge that
this proxy is coupled with an interest in the common stock of the Company and is irrevocable by the
undersigned until the undersigned shall receive a notice from the Company and CHS of termination of
this proxy.

Dated: November 17, 2005.

	 	 	 	 	 
	 	GLOBAL ETHANOL, INC.

 	 
	 	By:  	 	 
	 	 	 	 
	 	Its:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]