Document:

exv4w2

 

Exhibit 4.2

CARDINAL ETHANOL, LLC

SUBSCRIPTION AGREEMENT

Limited Liability Company Membership Units

$5,000.00 per Unit

Minimum Investment of 4 Units ($20,000)

1 Unit Increments Thereafter ($5,000)

The undersigned subscriber, desiring to become a member of Cardinal Ethanol, LLC (“Cardinal
Ethanol”), an Indiana limited liability company, with its principal place of business at 2 OMCO
Square, Suite 201, Winchester IN 47394, hereby subscribes for the purchase of the membership
interests of Cardinal Ethanol, and agrees to pay the related purchase price, identified below.

A. SUBSCRIBER INFORMATION. Please print your individual or entity name and address. Joint
subscribers should provide their respective names. Your name and address will be recorded exactly
as printed below.

	 	 	 	 	 	 	 	 	 
	 

	 	 	1.	 	 	Subscriber’s Printed Name
	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	Title, if applicable
	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	3.	 	 	Subscriber’s Address
	 	 
	 

	 	 	 	 	 	     Street
	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	     City, State, Zip Code
	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	4.	 	 	E-mail Address (optional)
	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	5.	 	 	Home Telephone Number
	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	6.	 	 	Business Telephone Number
	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	7.	 	 	Mobile Telephone Number
	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	8.	 	 	Subscriber’s Social

Security Number
	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	9.	 	 	Joint Subscriber’s Social

Security Number
	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	10.	 	 	Taxpayer Identification
No. (Business Entities)
	 	 
	 

	 	 	 	 	 	 	 	 

B. NUMBER OF UNITS PURCHASED. You must purchase at least 4 units. Your ownership interest may not
exceed 40% of all our outstanding membership units. We presently have 568 units outstanding.
Therefore, the maximum number of units you may own is 3,827 units if we sell the minimum offering
and 6,787 units if we sell the maximum.

	 	 	 	 	 	 	 
	 

	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 
	 	 	 

C. PURCHASE PRICE. Indicate the dollar amount of your investment (minimum investment is
$20,000).

	 	 	 	 	 	 	 	 	 
	1. Total Purchase Price

($5,000.00 Per Unit multiplied

by the number in box B above.)
	 	=
	 	2.
1st
Installment

(10% of the Total Purchase
Price)
	 	+
	 	3.
2nd
Installment

(90% of the Total Purchase
Price)

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	=	 	 	 	+	 	 
	 
	 	 	 	 	 	 	 	 

D. GENERAL INSTRUCTIONS FOR SUBSCRIBERS:

You should read the Prospectus dated [Date of Effectiveness] (the “Prospectus”) in its entirety
including exhibits for a complete explanation of an investment in Cardinal Ethanol, LLC. To
subscribe, you must:

1

 

INSTRUCTIONS IF YOU ARE SUBSCRIBING PRIOR TO THE COMPANY’S RELEASE OF FUNDS FROM ESCROW:
If you are subscribing prior to the Company’s release of funds from escrow, you must follow Steps 1
through 5 below:

     1. Complete all information required in this Subscription Agreement, and date and sign the
Subscription Agreement on page 6 and the Member Signature Page to our Second Amended and Restated
Operating Agreement attached to this Subscription Agreement as Exhibit A.

     2. Immediately provide your personal (or business) check for the first installment of ten
percent (10%) of your investment amount made payable to “First Merchants Trust Company, N.A.,
escrow agent for Cardinal Ethanol, LLC.” You will determine this amount in box C.2 on page 1 of
this Subscription Agreement.

     3. Execute the Promissory Note and Security Agreement on page 7 of this Subscription Agreement
evidencing your commitment to pay the remaining ninety percent (90%) due for the Units that is
attached to this Subscription Agreement and grant Cardinal Ethanol a security interest in your
Units.

     4. Deliver each of the original executed documents referenced in Items 1 and 3 of these
Instructions, together with your personal or business check described in Item 2 of these
Instructions to either of the following:

	 	 	 
	Cardinal Ethanol, LLC

	 	First Merchants Trust Company, N.A.
	Attention: Angela Armstrong

	 	Attention: N. Jane Smith
	2 OMCO Square, Suite 201

	 	P.O. Box 1467
	Winchester, IN 47394

	 	Muncie, IN 47308

     5. Upon written notice from Cardinal Ethanol stating that its sales of Units have exceeded the
Minimum Offering amount of $45,000,000, you must, within thirty (30) days secure an additional
personal (or business) check for the second installment of ninety percent (90%) of your investment
amount made payable to “First Merchants Trust Company, N.A., escrow agent for Cardinal Ethanol,
LLC” in satisfaction of the Promissory Note and Security Agreement. You will determine this amount
in box C.3 on page 1 of this Subscription Agreement. You must deliver this check to the same
address set forth above in Instruction 4 within thirty (30) days of the date of Cardinal Ethanol’s
written notice. If you fail to pay the second installment pursuant to the Promissory Note and
Security Agreement, Cardinal Ethanol shall be entitled to retain your first installment and to seek
other damages, as provided in the Promissory Note and Security Agreement.

Your funds will be placed in Cardinal Ethanol’s escrow account at First Merchants Trust Company,
N.A. The funds will be released to Cardinal Ethanol or returned to you in accordance with the
escrow arrangements described in the Prospectus. Cardinal Ethanol may, in its sole discretion,
reject or accept any part or all of your subscription. If Cardinal Ethanol rejects your
subscription, your Subscription Agreement and investment will be promptly returned to you, plus
nominal interest, minus escrow fees. Cardinal Ethanol may not consider the acceptance or rejection
of your subscription until a future date near the end of this offering.

INSTRUCTIONS IF YOU ARE SUBSCRIBING AFTER THE COMPANY’S RELEASE OF FUNDS FROM ESCROW: If
you are subscribing after the Company’s release of funds from escrow, you must follow Steps 1
through 3 below:

     1. Complete all information required in this Subscription Agreement, and date and sign the
Subscription Agreement on page 6 and the Member Signature Page to our Second Amended and Restated
Operating Agreement attached to this Subscription Agreement as Exhibit A.

     2. Immediately provide your personal (or business) check for the entire amount of your
investment (as determined in Box C.1 on page 1) made payable to “Cardinal Ethanol, LLC.”

     3. Deliver the original executed documents referenced in Item 1 of these Instructions,
together with your personal or business check described in Item 2 of these Instructions to the
following:

Cardinal Ethanol, LLC

Attention: Angela Armstrong

2 OMCO Square, Suite 201

Winchester IN 47394

2

 

     If you are subscribing after we have released funds from escrow and we accept your investment,
your funds will be immediately at-risk as described in the Prospectus. Cardinal Ethanol may, in
its sole discretion, reject or accept any part or all of your subscription. If Cardinal Ethanol
rejects your subscription, your Subscription Agreement and investment will be returned to you
promptly, plus nominal interest, minus escrow fees. Cardinal Ethanol may not consider the
acceptance or rejection of your subscription until a future date near the end of this offering.

You may
direct your questions to one of our directors listed below or to Cardinal Ethanol at
701-883-5783.

	 	 	 	 	 
	Director	 	Telephone Number	 
	Troy Prescott
	 	 	(765) 969-5541	 
	Tom Chalfant
	 	 	(765) 729-3129	 
	Ralph Brumbaugh
	 	 	(937) 423-0964	 
	Thomas Chronister
	 	 	(260) 437-0418	 
	Everett Hart
	 	 	(937) 459-7301	 
	Jeremey Herlyn
	 	 	(765) 914-4938	 
	Steven Snider
	 	 	(765) 744-1881	 
	Jerrold Voisinet
	 	 	(937) 773-1069	 
	Andrew Zawosky
	 	 	(937) 459-0162	 

E. Additional Subscriber Information. The subscriber, named above, certifies the following under
penalties of perjury:

	 	1.	 	Form of Ownership. Check the appropriate box (one only) to indicate form of
ownership. If the subscriber is a Custodian, Corporation, Partnership or Trust, please
provide the additional information requested.

	 	 	 	 	 	 	 	 	 
	 

	 	o
	 	Individual
	 	 	 	 
	 	 	o	 	Joint Tenants with Right of Survivorship (Both signatures must appear on Page 6.)
	 	 	o	 	Corporation, Limited Liability Company or Partnership
(Corporate Resolutions, Operating Agreement or Partnership Agreement must be
enclosed.)
	 

	 	o
	 	Trust	 	 	 	 
	 

	 	 	 	     Trustee’s Name:

     Trust Date:
	 
 

 
 

	 	  
	 	 	o	 	Other: Provide detailed information in the space immediately below.
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

	 	2.	 	Subscriber’s Taxpayer Information. Check the appropriate box if you are a
non-resident alien, a U.S. Citizen residing outside the United States or subject to
backup withholding. Trusts should provide their taxpayer identification number.
Custodians should provide the minor’s Social Security Number. All individual
subscribers should provide their Social Security Number. Other entities should provide
their taxpayer identification number.

	 	 	 	 	 
	 

	 	o
	 	Check box if you are a non-resident alien
	 

	 	o
	 	Check box if you are a U.S. citizen residing outside of the United States
	 

	 	o
	 	Check this box if you are subject to backup withholding

	 	 	 	 	 	 	 
	 

	 	Subscriber’s Social Security No.
	 	 
 

	 	 
	 

	 	Joint Subscriber’s Social Security No.
	 	 
 

	 	 
	 

	 	Taxpayer Identification No.
	 	 	 	 
	 

	 	 	 	 	 	 

	 	3.	 	Member Report Address. If you would like duplicate copies of member reports
sent to an address that is different than the address identified in section A, please
complete this section.

	 	 	 	 	 	 	 
	 

	 	Address:
	 	 
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 
	 	 
	 

	 	 	 	 	 	 

3

 

	 	4.	 	State of Residence.

	 	 	 	 	 	 	 
	 

	 	State of Principal Residence:
	 	 
 

	 	 
	 

	 	State where driver’s license is issued:
	 	 
 

	 	 
	 

	 	State where resident income taxes are filed:
	 	 
 

	 	 

State(s) in which you have maintained your principal residence during the past three
years:

	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	

	 	 
	 	 	a	 	 	b.	 	c.	 
	

	 	 
	 	 	 	 	 	 	 	 	 

	 	5.	 	Suitability Standards. You cannot invest in Cardinal Ethanol unless you meet
one, or more, of the following suitability tests (a or b) set forth below. Please
review the suitability tests and check the box(es) next to the following suitability
test that you meet. For husbands and wives purchasing jointly, the tests below will be
applied on a joint basis.

	 	 	 	 	 	 	 
	 

	 	a.
	 	o
	 	I (We) do not reside in Kentucky and I (we) have annual income from whatever
source of at least $45,000 and a net worth of at least $45,000,
exclusive of home, furnishings and automobiles; or
	 
	 	 	 	 	 	 
	

	 

	 	b.
	 	o
	 	I (We) do not reside in Ohio and I (we) have a net
worth of at least $100,000, exclusive of home, furnishings and automobiles; or
	

	 
	 	 	 	 	 	 
	

	 

	 	c.
	 	o
	 	I (We) reside in Ohio and I (we) have a net worth of
$200,000, exclusive of home, home furnishings, and automobiles;
	

	

	 

	 	d.
	 	o
	 	I (We) reside in Kentucky and my total investment does not exceed 10% of my (our) net worth, exclusive of home, home furnishings, and automobiles.
	

	 	6.	 	Subscriber’s Representations and Warranties. You must read and certify your
representations and warranties by placing your initials where indicated and by signing
and dating this Subscription Agreement. Joint subscribers are also required to
initial and sign as indicated.

(Initial here) (Joint initials) By signing below the subscriber represents and warrants to Cardinal Ethanol that he, she or it:

	 	 	 	 	 	 	 
	                    

	 	                    
	 	a.
	 	has received a copy of Cardinal Ethanol’s Prospectus
dated [effective date] and the exhibits thereto or has
received notice that this sale has been made pursuant
to a registration statement in which a final
prospectus would have been required to have been
delivered in the absence of Rule 172;
	 
	 	 	 	 	 	 
	

	                    

	 	                    
	 	b.
	 	has been informed that the units of Cardinal Ethanol
are offered and sold in reliance upon a federal
securities registration; state registrations in
Florida, Georgia, Illinois, Indiana, Kentucky,
and Ohio; and exemptions from
securities registrations in various other states, and
understands that the units to be issued pursuant to
this subscription agreement can only be sold to a
person meeting requirements of suitability;
	

	 
	 	 	 	 	 	 
	

	                    

	 	                    
	 	c.
	 	has been informed that the securities purchased
pursuant to this Subscription Agreement have not been
registered under the securities laws of any state
other than Florida, Georgia, Illinois, Indiana,
Kentucky, and Ohio and that
Cardinal Ethanol is relying in part upon the
representations of the undersigned Subscriber
contained herein;
	

	 
	 	 	 	 	 	 
	

	                    

	 	                    
	 	d.
	 	has been informed that the securities subscribed for
have not been approved or disapproved by the SEC, or
the Florida, Georgia, Illinois, Indiana, Kentucky,
and Ohio Securities Departments
or any other regulatory authority, nor has any
regulatory authority passed upon the accuracy or
adequacy of the Prospectus;
	

	 
	 	 	 	 	 	 
	                    

	 	                    
	 	e.
	 	 intends to acquire the units for his/her/its own
account without a view to public distribution or
resale and that he/she/it has no contract,
undertaking, agreement or arrangement to sell or
otherwise transfer or dispose of any units or any
portion thereof to any other person;

4

 

	 	 	 	 	 	 	 
	                    

	 	                    
	 	f.
	 	understands that there is no present market for
Cardinal Ethanol’s membership units, that the
membership units will not trade on an exchange or
automatic quotation system, that no such market is
expected to develop in the future and that there are
significant restrictions on the transferability of the
membership units;
	 
	 	 	 	 	 	 
	                    

	 	                    
	 	g.
	 	has been encouraged to seek the advice of his legal
counsel and accountants or other financial advisers
with respect to investor-specific tax and/or other
considerations relating to the purchase and ownership
of units;
	 
	 	 	 	 	 	 
	                    

	 	                    
	 	h.
	 	has received a copy of the Cardinal Ethanol Second
Amended and Restated Operating Agreement, dated
February 1, 2006, and understands that upon closing
the escrow by Cardinal Ethanol, the subscriber and the
membership units will be bound by the provisions of
the Second Amended and Restated Operating Agreement
which contains, among other things, provisions that
restrict the transfer of membership units;
	 
	 	 	 	 	 	 
	                    

	 	                    
	 	i.
	 	understands that the units are subject to substantial
restrictions on transfer under certain tax and
securities laws along with restrictions in the
Cardinal Ethanol Second Amended and Restated Operating
Agreement, and agrees that if the membership units or
any part thereof are sold or distributed in the
future, the subscriber shall sell or distribute them
pursuant to the terms of the Second Amended and
Restated Operating Agreement, and the requirements of
the Securities Act of 1933, as amended, and applicable
tax and securities laws;
	 
	 	 	 	 	 	 
	                    

	 	                    
	 	j.
	 	meets the suitability test marked in Item 5 above and
is capable of bearing the economic risk of this
investment, including the possible total loss of the
investment;
	 
	 	 	 	 	 	 
	

	                    

	 	                    
	 	k.
	 	understands that Cardinal Ethanol will place a
restrictive legend on any certificate representing any
unit containing substantially the following language
as the same may be amended by the Directors of
Cardinal Ethanol in their sole discretion:
	

	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	THE TRANSFERABILITY OF THE MEMBERSHIP UNITS REPRESENTED BY THIS
CERTIFICATE IS RESTRICTED. SUCH UNITS MAY NOT BE SOLD, ASSIGNED,
OR TRANSFERRED, AND NO ASSIGNEE, VENDEE, TRANSFEREE OR ENDORSEE
THEREOF WILL BE RECOGNIZED AS HAVING ACQUIRED ANY SUCH UNITS FOR
ANY PURPOSES, UNLESS AND TO THE EXTENT SUCH SALE, TRANSFER,
HYPOTHECATION, OR ASSIGNMENT IS PERMITTED BY, AND IS COMPLETED IN
STRICT ACCORDANCE WITH, APPLICABLE FEDERAL AND STATE LAW AND THE
TERMS AND CONDITIONS SET FORTH IN THE SECOND AMENDED AND RESTATED
OPERATING AGREEMENT OF THE COMPANY, AS AMENDED FROM TIME TO TIME.
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD,
OFFERED FOR SALE OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND
UNDER APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH TRANSACTION IS EXEMPT FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND
UNDER APPLICABLE STATE SECURITIES LAWS.
	 
	 	 	 	 	 	 
	                    

	 	                    
	 	l.
	 	understands that, to enforce the above legend,
Cardinal Ethanol may place a stop transfer order with
its registrar and stock transfer agent (if any)
covering all certificates representing any of the
membership units;

5

 

	 	 	 	 	 	 	 
	                    

	 	                    
	 	m.
	 	understands that, to enforce the above legend,
Cardinal Ethanol may place a stop transfer order with
its registrar and stock transfer agent (if any)
covering all certificates representing any of the
membership units;
	 
	 	 	 	 	 	 
	                    

	 	                    
	 	n.
	 	has knowledge and experience in business and financial
matters as to be able to evaluate the merits and risks
of an investment in the units, believes that the
investment in units is suitable for the subscriber and
can bear the economic risk of the purchase of units
including the total loss of the undersigned’s
investment;
	 
	 	 	 	 	 	 
	                    

	 	                    
	 	o.
	 	may not transfer or assign this subscription
agreement, or any of the subscriber’s interest herein;
	 
	 	 	 	 	 	 
	                    

	 	                    
	 	p.
	 	has written his, her, or its correct taxpayer
identification number under Item E.2 on this
subscription agreement;
	 
	 	 	 	 	 	 
	                    

	 	                    
	 	q.
	 	is not subject to back up withholding either because
he, she or it has not been notified by the Internal
Revenue Service (“IRS”) that he, she or it is subject
to backup withholding as a result of a failure to
report all interest or dividends, or the IRS has
notified him, her or it that he is no longer subject
to backup withholding (Note this clause (p) should be
crossed out if the backup withholding box in Item E.2
is checked);
	 
	 	 	 	 	 	 
	                    

	 	                    
	 	r.
	 	understands that execution of the attached Promissory
Note and Security Agreement will allow Cardinal
Ethanol or its assigns to pursue the obligor for
payment of the amount due thereon by any legal means,
including, but not limited to, acquisition of a
judgment against the obligor in the event that the
subscriber defaults on that Promissory Note and
Security Agreement; and
	 
	 	 	 	 	 	 
	                    

	 	                    
	 	s.
	 	acknowledges that Cardinal Ethanol may retain
possession of certificates representing subscriber’s
Units to perfect its security interest in those units.

[Remainder of page intentionally left blank.]

6

 

Signature of Subscriber/ Joint Subscriber:

			
	Date:	 	                                        

	 	 	 
	Individuals:	 	Entities:
	 

	 	 
	     Name of Individual Subscriber (Please Print)

	 	Name of Entity (Please Print)
	 
	 	 
	 

	 	 
	     Signature of Individual

	 	Print Name and Title of Officer
	 
	 	 
	 

	 	 
	     Name of Joint Individual Subscriber (Please Print)

	 	 Signature of Officer
	 
	 	 
	 

     Signature of Joint Individual Subscriber

	 	 

ACCEPTANCE OF SUBSCRIPTION BY CARDINAL ETHANOL, LLC:

Cardinal Ethanol, LLC hereby accepts Subscriber’s subscription for                     units.

Dated this                     day of                                         , 200                    .

	 	 	 	 	 
	CARDINAL ETHANOL, LLC	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Its:
	 	 	 	 
	 

	 	 	 	 

7

 

PROMISSORY NOTE AND SECURITY AGREEMENT

Date of Subscription Agreement:                                         , 200                    .

$5,000.00 per Unit

Minimum Investment of 4 Units ($20,000), 1 Unit Increments Thereafter ($5,000)

	 	 	 
	 

	 	Number of Units subscribed
	 

	 	 
	 
	 	 
	 

	 	Total Purchase Price ($5,000.00 per Unit multiplied by number of Units subscribed)
	 

	 	 
	 
	 	 
	(       )

	 	 Less Initial Payment (10% of Principal Amount)
	 

	 	 
	 
	 	 
	 

	 	Principal Balance
	 

	 	 

FOR VALUE RECEIVED, the undersigned hereby promises to pay to the order of Cardinal Ethanol, LLC,
an Indiana limited liability company (“Cardinal Ethanol”), at its principal office located at 2
OMCO Square, Suite 201, Winchester IN 47394, or at such other place as required by Cardinal
Ethanol, the Principal Balance set forth above in one lump sum to be paid without interest within
30 days following the call of the Cardinal Ethanol Board of Directors, as described in the
Subscription Agreement. In the event the undersigned fails to timely make any payment owed, the
entire balance of any amounts due under this full recourse Promissory Note and Security Agreement
shall be immediately due and payable in full with interest at the rate of 12% per annum from the
due date and any amounts previously paid in relation to the obligation evidenced by this Promissory
Note and Security Agreement may be forfeited at the discretion of Cardinal Ethanol.

The undersigned agrees to pay to Cardinal Ethanol on demand, all costs and expenses incurred to
collect any indebtedness evidenced by this Promissory Note and Security Agreement, including,
without limitation, reasonable attorneys’ fees. This Promissory Note and Security Agreement may
not be modified orally and shall in all respects be governed by, construed, and enforced in
accordance with the laws of the State of Indiana.

The provisions of this Promissory Note and Security Agreement shall inure to the benefit of
Cardinal Ethanol and its successors and assigns, which expressly reserves the right to pursue the
undersigned for payment of the amount due thereon by any legal means in the event that the
undersigned defaults on obligations provided in this Promissory Note and Security Agreement.

The undersigned waives presentment, demand for payment, notice of dishonor, notice of protest, and
all other notices or demands in connection with the delivery, acceptance, performance or default of
this Promissory Note and Security Agreement.

The undersigned grants to Cardinal Ethanol, and its successors and assigns (“Secured Party”), a
purchase money security interest in all of the undersigned’s Membership Units of Cardinal Ethanol
now owned or hereafter acquired. This security interest is granted as non-exclusive collateral to
secure payment and performance on the obligation owed Secured Party from the undersigned evidenced
by this Promissory Note and Security Agreement. The undersigned further authorizes Secured Party to
retain possession of certificates representing such Membership Units and to take any other actions
necessary to perfect the security interest granted herein.

	 	 	 
	Dated:      , 200 .
	 	 
	OBLIGOR/DEBTOR:

	 	  JOINT OBLIGOR/DEBTOR:

	 	 	 	 	 	 	 
	 	 	 
	Printed or Typed Name of Obligor	 	Printed or Typed Name of Joint Obligor
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	 

	 	(Signature)
	 	 	 	(Signature)
	 
	 	 	 	 	 	 
	 	 	 	 	 
	Officer Title if Obligor is an Entity	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	Address of Obligor	 	 	 	 

8

 

EXHIBIT “A”

MEMBER SIGNATURE PAGE

ADDENDA

TO THE

SECOND AMENDED AND RESTATED OPERATING AGREEMENT OF

CARDINAL ETHANOL, LLC

     The undersigned does hereby represent and warrant that the undersigned, as a condition to
becoming a Member in Cardinal Ethanol, LLC, has received a copy of the Second Amended and Restated
Operating Agreement, dated February 1, 2006, and, if applicable, all amendments and modifications
thereto, and does hereby agree that the undersigned, along with the other parties to the Second
Amended and Restated Operating Agreement, shall be subject to and comply with all terms and
conditions of said Second Amended and Restated Operating Agreement in all respects as if the
undersigned had executed said Second Amended and Restated Operating Agreement on the original date
thereof and that the undersigned is and shall be bound by all of the provisions of said Second
Amended and Restated Operating Agreement from and after the date of execution hereof.

	 	 	 
	Individuals:	 	Entities:
	 

	 	 
	      Name of Individual Member (Please Print)

	 	     Name of Entity (Please Print)
	 
	 	 
	 

	 	 
	     Signature of Individual

	 	     Print Name and Title of Officer
	 
	 	 
	 

	 	 
	     Name of Joint Individual Member (Please Print)

	 	     Signature of Officer
	 
	 	 
	 

     Signature of Joint Individual Member

	 	 

Agreed and accepted on behalf of the

Company and its Members:

	 	 	 	 	 
	CARDINAL ETHANOL, LLC	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Its:
	 	 	 	 
	 

	 	 

	 	 

9exv10w3

 

Exhibit 10.3

TRANSITION/RESIGNATION AND RELEASE AGREEMENT

Name of Executive: Koreen A. Ryan

Date of this Agreement: March 14, 2006

Resignation Date: April 3, 2006

     This Transition/Resignation and Release Agreement (this “Agreement”) is entered into as of the
"Date of this Agreement” indicated above, by and among Enesco Group, Inc. (hereinafter, together
with its successors, referred to as the “Company”), on behalf of itself, its predecessors,
successors, subsidiaries, divisions, assigns, affiliates and all of their present and former
officers, directors, employees, agents, attorneys and representatives (collectively, the
"Releasees”), and the individual whose name is set forth above, on behalf of herself and her
agents, spouse, dependents, assignees, attorneys, executors, heirs and representatives
(“Executive”), and is intended to set forth all the rights, duties, obligations and concessions of
the parties. In consideration of the mutual promises contained in this Agreement and other lawful
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties agree as follows:

     1. Employment Transition.

	 	(a)
	 	The Company and the Executive acknowledge that as of the Date
of this Agreement, Executive has resigned her responsibilities as Senior Vice
President, General Counsel and Secretary of the Company and, until the
“Resignation Date” indicated above, Executive shall assume the employment
duties as a legal advisor to the Company. During the employment period between
the Date of this Agreement and the Resignation Date, Executive shall make her
services as an employee available to authorized representatives of the Company
as specifically requested by the President and Chief Executive Officer of the
Company, but Executive shall not initiate services, or represent herself as
authorized to act, on behalf of the Company (other than to inform third
parties, including search firms and prospective employers, of her provision of
transitional legal advisory service to the Company through the Resignation
Date), and shall cease reporting to work at any of the Company’s locations,
unless otherwise requested by the President and Chief Executive Officer.
During the employment period between the Date of this Agreement and the
Resignation Date, Executive shall be paid at her current base salary rate and
continue to participate in the employee benefits plans in which she was
enrolled on the Date of this Agreement. Executive will also receive payment of
her bonus for the prior fiscal year in the amount of $7,200.00. Such services
shall involve the areas and matters in which she was involved prior to the Date
of this Agreement, including investigations, threatened or actual litigation
and regulatory actions concerning the Company. She should also provide to the
Company, if requested, information relating to ongoing matters of interest to
the Company, and aid in transitioning management of the Law Department. In
requesting any such services, the Company will take into

 

 

	 	 	 	consideration the
Executive’s personal commitments, will give the Executive as much advance
notice as reasonably possible, and ask that she be available at such time or
times, and at such location or locations, as are reasonable and mutually
convenient to her and the Company.

	 	(b)
	 	Executive and the Company agree that Executive’s last day of
employment with the Company shall be the Resignation Date indicated above.
Following the Resignation Date, (i) Executive shall be paid the four days of
accrued but unpaid vacation to which she is entitled, (ii) be provided any
vested benefits to which she is entitled under the Company’s employee benefits
plans, and (iii) be furnished with any required information regarding her
employee benefit continuation or conversion rights. Notwithstanding the
foregoing, in the event Executive does not timely sign and return this
Agreement, or revokes this Agreement pursuant to Paragraphs 13 and 19 (below),
Executive’s Resignation Date shall be April 3, 2006.

2. Consideration. As consideration for the release and the other promises of
Executive contained in this Agreement, the Company will provide Executive with the following
compensation and benefits, provided Executive timely signs and returns this Agreement, does
not revoke it, and timely signs and returns the identical general release and covenant not
to sue pursuant to Paragraphs 13 and 19 (below):

	 	(a)
	 	Executive shall be entitled to receive as separation pay an
amount equal to $181,500.00 which is eleven (11) months of her current annual
base salary payable in installments in accordance with the Company’s regular
payroll payment schedule. Payment of separation pay shall commence after the
seven (7) day revocation period described below has passed.

	 
	 	(b)
	 	If Executive elects to exercise her applicable COBRA
continuation rights to continue her Company sponsored medical benefits, such
medical benefits shall be provided to her by the Company paying the employer
portion of the COBRA continuation premium and her paying the employee portion
of the COBRA continuation premium at the Company active employee contribution
rate for medical benefits for the earlier of nine (9) months or until she
becomes eligible for coverage under another employer’s health benefits plan.
Thereafter, Executive will be required to pay the full applicable COBRA
premium.

	 
	 	(c)
	 	The Company hereby releases Executive from the obligation to
repay to the Company the $35,000.00 sign-on bonus which Executive received from
the Company pursuant to Executive’s April 13, 2005 offer
letter.

3. COBRA Continuation. The Company will notify Executive of her rights under the
Consolidated Omnibus Budget Reconciliation Act (“COBRA”). Except as otherwise provided in
Paragraph 2(b) above, Executive’s participation in any and all Company benefit programs
shall end on the Resignation Date set forth above.

Page 2 of 12

 

4. No Further Entitlements. Executive agrees that she has been paid and received
all compensation, pay and benefits from the Company to which she is entitled under federal,
state or local wage and hour, or other law. Executive understands and acknowledges she has
no further entitlements, other than those included in this Agreement and except with respect
to rights, if any, that have vested as of the Resignation Date under the Company’s employee
benefit plans and such rights which she has under the indemnification provisions of the
Company’s bylaws (the “Indemnification Bylaws”), the Company’s Directors and Officers’
Insurance (“D&O Insurance”) and the Company’s Employed Lawyers’ Professional Liability
Insurance. Executive also acknowledges that she has suffered no known workplace injury for
which Executive has not already filed a workers’ compensation claim.

5. Expense Reports and Return of Company Property. Executive agrees that no later
than one (1) week from the Resignation Date, Executive shall submit all expense reports, if
any, that she owes the Company for expenses she has incurred. Upon submission of proper
receipts, the Company agrees to reimburse Executive for any business expenses she incurred
and paid on behalf of the Company per Company policy. Executive further agrees that on or
before the Resignation Date Executive shall return to the Company all property of the
Company, including but not limited to, computer and communications equipment, keys, security
access and credit cards. Executive further agrees to return all corporate documents,
handbooks, policy manuals, records, documents, notes and materials (in paper and electronic
form), no later than the Resignation Date.

6. Nonadmission. The parties agree that the Company’s payment or offer of payment
under this Agreement, the Executive’s resignation and acceptance of such payment and the
releases herein shall not be construed as an admission of any liability on the part of the
Company or the Executive of a violation of any federal, state or local statute, or other
source of law.

7. Nondisparagement. Executive shall not, directly or indirectly, make or cause to
be made any disparaging, derogatory, misleading or false statement, whether orally or in
writing, to any person or entity, including members of the investment community, press, and
customers, competitors and advisors to the Company, about the Releasees, or the business
strategy, plans, policies, practices or operations of the Company. Similarly, the Company
shall not, directly or indirectly, make or cause to be made any disparaging, derogatory,
misleading or false statement, whether orally or in writing, to any person or entity,
including members of the investment community, press, and customers, competitors and
advisors to the Company, about Executive, or the Executive’s performance while working at
the Company. In order to conform to the terms of this Nondisparagement provision, the
Chairman of the Board of the Company shall instruct the officers and members of the Board of
Directors of the Company not to, directly or indirectly, make or cause to be made any
disparaging, derogatory, misleading or false statement, whether orally or in writing, to any
person or entity, including members of the investment community, press, and customers,
competitors and advisors to the Company, about the Executive or the Executive’s performance
while working at the Company. The President and Chief Executive Officer of the Company
shall provide written confirmation

Page 3 of 12

 

to Executive that she and the other officers and members
of the Board of Directors have been duly instructed and acknowledge their obligations as
described above. As soon as practicable, the Chairman of the Board of Directors of the
Company will provide a written recommendation in the form attached hereto as Attachment I,
and she will respond to any verbal reference inquiries consistent therewith. All inquiries
regarding Executive will be directed to the Chairman of the Board of Directors. In
addition, the statement issued by the Company regarding Executive’s resignation from
employment shall be substantially in the form attached hereto as Attachment II and any
internal and/or external communications thereafter by the officers and members of the Board
of Directors of the Company regarding Executive’s resignation from employment shall be
consistent therewith. Notwithstanding the foregoing provisions of this Paragraph 7, the
Releasees and the Executive may each confer in confidence with their respective legal
representatives and nothing herein shall prevent any party from responding truthfully to any
information requests or questions posed in any formal or informal legal, regulatory,
administrative or investigative proceedings involving any court, tribunal or governmental
body or agency or as otherwise as required by law.

8. Release. Executive waives, releases, acquits and forever discharges the Company
and the other Releasees from any and all claims, actions or combinations of claims and
actions of any kind, at law or in equity, before judicial, administrative or arbitrational
tribunals, which have arisen or may arise, in common law or equity, relating to Executive’s
employment with or termination from the Company, including but not limited to claims for
compensation, severance pay, attorney fees, breach of contract, wrongful termination,
defamation, intentional infliction of emotional distress, tort, personal injury, invasion of
privacy, or any other claim whatsoever, and/or any alleged violations of any federal, state,
or local civil rights statutes including but not limited to Title VII of the Civil Rights
Act of 1964, as amended, the Civil Rights Act of 1866, the Civil Rights Act of 1871, the
Civil Rights Act of 1991, the Pregnancy Discrimination Act, the Equal Pay Act of 1963, the
Employee Retirement Income Security Act of 1974, the American with Disabilities Act and the
Rehabilitation Act of 1973, the Family and Medical Leave Act, the Worker Retraining
Notification Act, the Illinois Human Rights Act, or any other federal or state statute,
local ordinance or common law pertaining or relating in any manner to the Executive’s
employment with the Company or termination from employment with the Company, other than for
the performance of this Agreement, challenges to the validity of Executive’s waiver of
rights pursuant to the Age Discrimination in Employment Act (hereinafter referred to as the
“ADEA”), vested rights under any of the Company’s benefit plans in accordance with their
terms, rights under the Indemnification provisions contained in the Company’s Bylaws, D&O
Insurance, and the Employed Lawyers’ Professional Liability Insurance. Executive’s right to
file an administrative charge of discrimination, any claims which Executive may make under
state workers’ compensation or unemployment laws or any claim which by law Executive cannot
waive. Further, Executive agrees that this release is made voluntarily, knowingly and
without coercion.

Executive also agrees never to sue any of the Releasees or become a party to a lawsuit on
the basis of any claim of any type whatsoever arising out of or related to Executive’s
employment with and/or separation from employment with the Company and/or any of

Page 4 of 12

 

the other Releasees, other than a lawsuit to challenge this release under the ADEA or to enforce
Executive’s rights under this Agreement. To the extent permitted by law, Executive further
waives her right to any monetary recovery should any federal, state, or local administrative
agency pursue any claims on her behalf arising out of or related to her employment with
and/or separation from employment with the Company and/or any of the other Releasees.

Executive further acknowledges and agrees in the event that she breaches the provisions of
this Paragraph 8, (a) the Company shall be entitled to apply for and receive an injunction
to restrain any violation of Paragraph 8, (b) the Company shall not be obligated to continue
the availability of the consideration delineated in Paragraph 2 above, (c) Executive shall
be obligated to pay to the Company its costs and expenses in enforcing this Paragraph 8
release and defending against such lawsuit (including court costs, expenses and reasonable
legal fees), and (d) as an alternative to (c), at the Company’s option, Executive shall be
obligated upon demand to repay to the Company all but $1,000.00 of the consideration paid or
provided to her pursuant to Paragraph 2 above, and the foregoing shall not affect the
validity of this Paragraph 8 release and shall not be deemed to be a penalty nor a
forfeiture.

EXECUTIVE UNDERSTANDS THAT THIS PARAGRAPH 8 GENERAL RELEASE AND WAIVER OF THE RIGHT TO SUE
INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS TO THE DATE OF EXECUTIVE’S SIGNATURE
BELOW.

The Company, for itself and on behalf of the other Releasees, hereby waive, release, acquit
and forever discharge the Executive from any and all claims, actions or combinations of
claims and actions of any kind, at law and in equity, before judicial, administrative or
arbitrational tribunals, which have arisen or may arise, in common law or equity, relating
to any action taken by the Executive up to the date of the signing of this Agreement, other
than for the performance of this Agreement or any claims arising out of any activities by
Executive that constitute gross negligence, fraud or criminal misconduct. As of the date of
the Company’s signature below, the Company has no knowledge of any such fraudulent, criminal
or grossly negligent activities by the Executive.

9. Promise Not to Seek Re-employment. Executive promises not to reapply or
otherwise seek re-employment with the Company.

10. Resignation. Executive hereby resigns all officer positions she may hold in the
Company and in any other entity for which Executive serves as an officer all effective as of
the Date of this Agreement. Executive agrees to execute and deliver appropriate formal
letters prepared by the Company confirming resignation to each affected entity upon the
Company’s request.

11. Confidentiality of Agreement. Executive agrees that the terms of this
Agreement, including but not limited to issues concerning Executive’s employment separation,
the terms of this Agreement, or the fact that Executive received monies under

Page 5 of 12

 

this
Agreement, are confidential. Executive covenants and promises not to disclose any of the
terms of this Agreement to any third party with the exception of her spouse, financial or
legal advisors, or as authorized in writing by the President and Chief Executive Officer of
the Company or as requested or required by any court or administrative agency (and then only
after prompt notice to the Company to permit the Company to seek a protective order). If
Executive discloses the terms and conditions of this Agreement to a permitted third party
identified in this Paragraph 11, Executive will inform such person that further disclosure
is prohibited.

12. Further Obligations of the Executive. Executive acknowledges and agrees that
she remains fully bound by all of the terms and conditions of the Associates Agreement
Regarding Confidential Information, Copyrightable Writings and Inventions which she entered
into with the Company on April 23, 2005 and the confidentiality provision in the Company’s
Change in Control Agreement which she entered into with the Company on January 17, 2006.
Other than as noted herein, the Company acknowledges that Executive has no other restrictive
covenants obligations to the Company.

13. Contractual Capacity. Executive agrees and acknowledges that she has entered
into this Agreement knowingly and voluntarily and without pressure or duress. By signing
this Agreement, Executive states that she:

	 	(a)
	 	has read it fully and understands the Agreement’s terms and
conditions;

	 
	 	(b)
	 	has been advised to consult with an attorney of her own choice
at her own expense prior to executing this Agreement;
 
	 
	 	(c)
	 	has waived any legal claim or any right to bring a lawsuit
against the Company based on any actions taken by the Company up to the date of
the signing of this Agreement;
 
	 
	 	(d)
	 	has had or may have at least twenty-one (21) days during which
to consider this Agreement prior to signing it and acknowledges that any
revisions to this Agreement will not restart the running of the twenty-one day
period which commenced on March 14, 2006;
 
	 
	 	(a)
	 	has an additional seven (7) calendar days thereafter to revoke
her decision to sign this Agreement; and if she desires to revoke this
Agreement, a written revocation must be delivered and received pursuant to
Paragraph 19 (below);

	 
	 	(f)
	 	is not waiving or releasing any rights or claims that may arise
after the date she signed this Agreement, except those rights or claims waived
or released pursuant to the identical general release of claims and covenant
not to sue referenced in Paragraph 19 below;
 
	 
	 	(g)
	 	is not waiving or releasing any rights or claims that may arise
after the date she signed the identical general release of claims and covenant
not to sue referenced in Paragraph 19 below;

Page 6 of 12

 

	 	(h)
	 	has received adequate consideration for the release and waivers
contained in this Agreement in the form of money and other benefits in addition
to that which she is already entitled to receive.

14. Cooperation With Company. Executive will be available pursuant to Paragraph 1
(above). Executive agrees from and after the Resignation Date to make herself available to
the Company to provide reasonable cooperation and assistance to the Company with respect to
the areas and matters in which she was involved during her employment, including any
threatened or actual litigation or regulatory action concerning the Company, and to provide
the Company, if requested, information relating to ongoing matters of interest to the
Company. The Company will take into consideration the Executive’s personal and business
commitments, will give the Executive as much advance notice as reasonably possible, and ask
that she be available at such time or times, and at such location or locations, as are
mutually convenient to her and the Company. To the extent Executive’s services are required
pursuant to this Paragraph 14 for any extended period following the date payment of
separation pay ends (other than in connection with any governmental or regulatory inquiry or
action), the Company will pay to Executive a per diem amount calculated based on Executive’s
annual base salary in effect immediately prior to the Resignation Date. The Company agrees
to reimburse the Executive for the actual out-of-pocket expenses she incurs as a result of
her complying with this Paragraph 14, subject to her submission to the Company of
documentation substantiating such expenses as the Company may reasonably require.

15. Entire Agreement. This Agreement contains all the terms and conditions agreed
upon by the parties and supersedes any prior agreement between the parties regarding
Executive’s employment with and resignation from employment with the Company. No provision
of this Agreement may be altered, modified and/or cancelled except upon the express written
consent of the parties. Notwithstanding the foregoing, the provisions of this Agreement
necessary to carry out the intention of the parties as expressed herein shall survive the
termination or expiration of the Agreement.

16. Severability. If any provision is held to be overbroad, invalid or
unenforceable, such provision shall be deemed deleted and replaced by a valid, legal and
enforceable provision which so far as possible achieves the parties’ intent in agreeing to
the original provision and the remaining terms of this Agreement shall continue in full
force and effect.

17. Governing Law. This Agreement shall be governed and construed in accordance
with the laws of the State of Illinois. Except for the Company’s right and power to seek
injunctive relief pursuant to Paragraph 8 above and in conjunction with Paragraph 12 above,
and except for Executive’s rights to enforce the Company’s payment and indemnification
obligations pursuant to Company’s Bylaws, the Company D&O insurance policy, the Company’s
Employed Lawyers’ Professional Liability Insurance Policy, or the terms of Paragraphs 2 and
4 above, any dispute or controversy arising under or in connection with this Agreement shall
be settled exclusively by arbitration by a single arbitrator in accordance with the National
Rules For The Resolution Of Employment Disputes of the American Arbitration Association.
Only a person who is a

Page 7 of 12

 

practicing attorney admitted to a state bar may serve as the
arbitrator. The expenses of arbitration and reimbursement of a prevailing party’s
reasonable legal fees and expenses shall be determined by the arbitrator in the arbitrator’s
sole discretion. Any result reached by the arbitrator shall be binding on all parties to
the arbitration, and no appeal may be taken. It is agreed that any party to any award
rendered in such arbitration proceeding may seek a judgment upon the award and that judgment
may be entered thereon by any court having jurisdiction. The arbitration shall be conducted
in Chicago, Illinois.

Any lawsuit or other proceeding with respect to this Agreement may be brought only in the
courts of the State of Illinois or of the United States of America for the State of
Illinois. Each of the Executive and the Company hereby waives any right to a trial by jury
in any lawsuit, proceeding or action to enforce or defend any right under this Agreement or
any document delivered or to be delivered in connection with this Agreement and agrees that
any lawsuit, proceeding or action will be tried before a court and not before a jury.

18. Effective Date. The Agreement shall become effective, as of the Date of this
Agreement, once Executive has signed and dated the Agreement (below) and has not revoked it
within the following seven-day period.

19. Notices of Revocation/Identical Release. This Agreement may be revoked by
delivering a written notice of revocation, by hand, mail or facsimile, no later than the
close of business on the seventh day after the Executive signs it to:

Ms. Cynthia L. Passmore

President and Chief Executive Officer

Enesco Group, Inc.

225 Windsor Drive

Itasca, IL 60143

If Executive has not returned this Agreement to Cynthia L. Passmore, President and Chief
Executive Officer of the Company, countersigned by Executive, within twenty-one (21) days
after the Date of this Agreement, Executive will be deemed to have rejected the Company’s
offer as set forth above. In further consideration of the agreements and covenants set
forth in this Agreement, and as a condition for Executive’s receipt of the consideration
delineated in Paragraph 2 above, Executive agrees that following the Date of Resignation,
but no later than three (3) days thereafter, Executive shall execute and deliver to Cynthia
L. Passmore, President and Chief Executive Officer of the Company, an identical general
release of claims and covenant not to sue in all respects identical to Paragraph 8 of this
Agreement covering all acts or failures to act through the date Executive executes such
identical release and covenant not to sue.

20. Payment and Withholding. The Company shall be responsible as employer for
payment of all cash compensation and separation payments provided herein. Consistent with
prior practices of the Company, the Company shall be entitled to withhold from any amounts
to be paid to the Executive hereunder any federal, state, local, or foreign

Page 8 of 12

 

withholding or
other taxes or charges which it is from time to time required to withhold as well as any
monies owed the Company by the Executive. The Company shall be entitled to rely on an
opinion of counsel if any question as to the amount or requirement of any such withholding
shall arise.

21. No Waiver. No waiver by any party at any time of any breach by any other party
of, or compliance with, any condition or provision of this Agreement to be performed by a
party shall be deemed a waiver of similar or dissimilar provisions or conditions at any
time.

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

23. Construction. The parties acknowledge that this Agreement is the result of
arm’s-length negotiations between sophisticated parties each afforded representation by
legal counsel. Each and every provision of this Agreement shall be construed as though both
parties participated equally in the drafting of same, and any rule of construction that a
document shall be construed against the drafting party shall not be applicable to this
Agreement.

Page 9 of 12

 

EXECUTIVE ACKNOWLEDGES THAT SHE HAS READ AND FULLY UNDERSTANDS THE FOREGOING PROVISIONS OF
THIS AGREEMENT, CAN HAVE OR HAS HAD AT LEAST TWENTY-ONE (21) DAYS TO EVALUATE THE TERMS OF
THIS AGREEMENT, HAS BEEN ADVISED TO CONSULT WITH LEGAL COUNSEL AT HER OWN EXPENSE BEFORE
SIGNING THIS AGREEMENT, HAS RECEIVED AND REVIEWED ALL INFORMATION PROVIDED TO HER IN
CONNECTION WITH THIS AGREEMENT AND FREELY AND WITHOUT RESERVATIONS ENTERS INTO THIS
AGREEMENT.

	 	 	 	 	 	 
	 

	 	ENESCO GROUP, INC.
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	By:
	/s/ Cynthia L. Passmore
	 	 

	 	 
	 
	 	 	 	 
	 	 	Printed
Name:  Cynthia L. Passmore

	
	 
	 	 	 	 
	 	 	Title:  President and Chief Executive Officer

	 
	 
	 	 	 	 
	 	 	Signature Date:
	April 3, 2006	 
	 	 

	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	EXECUTIVE
	 
	 	 	 	 
	 	 	Signature:
	 /s/ Koreen A. Ryan
	 	 	 	 

	 
	 
	 	 	 	 
	 	 	Printed
Name:  Koreen A. Ryan

	 
	 
	 	 	 	 
	 	 	Signature Date:
	March 23, 2006	 
	 	 	 	 

	 	 

Page 10 of 12

 

ATTACHMENT I

TO WHOM IT MAY CONCERN:

Koreen A. Ryan served as general counsel, secretary and senior vice president of Human Resources of
Enesco Group, Inc. When Koreen started at Enesco in May 2005, she provided leadership and guidance
through innumerable legal issues involving, among other things, our credit facility, changes at the
key leadership level, substantial revisions of our Company’s periodic filings, and working closely
with the NYSE and PCX to sustain our listing status. In addition, Koreen worked independently and
with support from outside counsel to manage the legal and corporate communications departments. In
November, we added to her responsibilities leadership of the human resources group. Koreen has
made significant contributions to the Company as we made many operational and structural changes
within the organization in 2005 and 2006.

We thank Koreen for all of her contributions and wish her all the best in her future endeavors.

	 	 	 	 	 
	 	Very truly yours,

Anne-Lee Verville

Chairman, Board of Directors

 	 
	 	 	 
	 	 	 
	 	 	 

 

 

ATTACHMENT II

Enesco Group, Inc., a leader in the giftware, and home and garden décor industries, today announced
that Koreen A. Ryan, senior vice president of Human Resources, general counsel and secretary,
resigned from the Company to pursue other opportunities. Ryan will depart Enesco on April 3, 2006.

“Koreen has made significant contributions to the Company as we made many operational and
structural changes within the organization this past year,” said Cynthia Passmore, President and
CEO of Enesco. “We thank her for all of her contributions and wish her all the best in her future
endeavors.”

The Legal, Human Resources and Corporate Communications departments within Enesco will report
directly to the President and CEO, until a new general counsel is named.

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