Document:

exv10w41

 

EXHIBIT 10.41

MEMBER

ETHANOL FUEL MARKETING AGREEMENT

     THIS AGREEMENT, entered into as of this 1st day of January, 2008, (“Effective Date”) by and
between RPMG, Inc., a Minnesota corporation, hereinafter referred to as “RPMG”); and Red Trail
Energy, a North Dakota limited liability company, hereinafter referred to as “Member”).

     WITNESSETH:

     WHEREAS, RPMG is a Minnesota corporation engaged in the business of marketing fuel grade
ethanol for the members of Renewable Products Marketing Group, LLC (“LLC”) and others, and

     WHEREAS, Member operates a plant in Richardton, ND for the production of ethanol (the
“Facility”), and is a member of LLC, and

     WHEREAS, as a condition to its membership in RPMG, Member has agreed to market all of the
fuel grade ethanol produced, by Member at the Facility through RPMG and RPMG has agreed to market
such ethanol production; and

     WHEREAS, the parties desire to enter into this Agreement, for purposes of setting out the
terms and conditions of the marketing arrangement;

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

     1.  Exclusive Marketing Representative. RPMG shall, subject to the terms and
conditions of this Agreement, be the sole marketing representative for the entire fuel grade
ethanol production of Member at the Facility during the term of this Agreement.

     2. Ethanol Specifications. All of the ethanol produced by Member at the Facility for
marketing by RPMG will, when delivered to a common carrier by Member, be fuel grade ethanol at
least 200 proof (denatured), and conform to the specifications described in A.S.T.M. 4806 and such
other specifications thai may be, from time to time, promulgated by the industry for E-Grade
denatured, fuel ethanol (herein referred to as “fuel grade ethanol” or “ethanol”).

     3.  Marketing Pool. RPMG shall have the exclusive right to market all the fuel grade
ethanol produced by Member at the Facility during the term of this Agreement. The ethanol will
be marketed on a “pooled” basis with other producers under contract with RPMG, and RPMG
shall use commercially reasonable efforts to market all such fuel grade ethanol on a pooled
basis.

     4.  Risk of Loss. RPMG shall be responsible for and shall bear the risk of loss of (subject to the terms of this Agreement) all ethanol marketed for Member by RPMG from the
time the product crosses the loading flange at the Facility in either a railcar and/or tank
truck.

 

			
	*	 	insert any exceptions i.e. alcohol sold for human consumption, limited sale of E85.

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     5. Specific Marketing Tasks. RPMG shall be responsible for and shall have
complete discretion in the marketing., sale and delivery of all fuel grade ethanol produced by
the
Facility during the term of this Agreement, including, but not limited to:

	 	•	 	Scheduling sufficient railcar, tank trucks and other transport;
	 
	 	•	 	Negotiating the rates and tariffs to be charged for delivery of production to the
customer;
	 
	 	•	 	Promoting and advertising the sale of ethanol;
	 
	 	•	 	Tracking delivery;
	 
	 	•	 	Negotiation of all purchase agreements with consumers and any complaints in connection therewith; and
	 
	 	•	 	Accounting for all sales and related expenses and collection of
accounts,
including any legal collection procedures as may be necessary.

     6. Negotiation of Ethanol Price. RPMG will use commercially reasonable efforts to
obtain the best price for all ethanol sold by it subject to the terms of this Agreement, but
shall
have complete discretion to fix the price, terms and conditions of the sale of Member’s
ethanol
production.

     7. Ethanol Marketing Under Pooling Arrangement. RPMG shall market the ethanol
production of Member under the pooling arrangement maintained by RPMG for LLC members
and other contracting producers. Under such pooling arrangement, RPMG will market the
aggregate production of all LLC members and other contracting non-member producers to
customers. Member shall furnish estimates of production to RPMG as hereinafter provided and
based on such estimates and the estimated production of all other pool participants, RPMG
shall
contract for the sale of such estimated production. Determination of Member’s share of revenue and payment of the ethanol selling price to Member shall be made by RPMG as follows:

     (a) The Estimated Pooled Netback. RPMG initially shall pay Member an Estimated Pooled
Netback on a weekly basis. For purposes of this Agreement, the Estimated Pooled Netback
will be calculated and paid as follows:

     (i) The Estimated Gross Ethanol Selling Price. Each calendar month, RPMG shall
estimate (in good faith) the delivered ethanol selling price per gallon of all
ethanol that RPMG has committed to sell to its customers through operation of the
ethanol pool. This amount will hereinafter be referred to as the “Estimated Gross
Ethanol Selling Price.”

     (ii) The Deduction for Estimated Direct Ethanol Distribution Expense. In the
same manner, RPMG shall estimate (in good faith) all distribution expenses
directly incurred in connection with distributing the ethanol
sold under this Agreement for the account of each pool participant (the “Estimated
Direct Ethanol Distribution Expense”). The Estimated Direct Ethanol Distribution
Expense will include, but not necessarily be limited to, all of RPMG’ transportation
costs, terminal shrinkage, rail car costs,, throughput costs, storage costs,
demurrage, inventory costs, insurance, collection costs, working capital costs,
hedging costs, the management fee fixed from time to time by the Board of

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Directors of Renewable Products Marketing Group, LLC, and other distribution costs
directly incurred in connection with distributing the ethanol sold for the account of
each pool participant.

     (iii) The Estimated Pooled Netback . The difference between the Estimated
Gross Ethanol Selling Price and the Estimated Direct Ethanol Distribution Expense shall
be the Estimated Pooled Netback.

     (iv) Payment of Estimated Pooled Netback. RPMG, on a weekly basis, will
calculate and pay Member on a net 10-day basis an amount equal to the Estimated Pooled
Netback for the preceding week multiplied by the number of gallons of ethanol delivered by
Member to RPMG for the period.

     (b) The Actual Pooled Netback.

     (i) Calculation of Actual Pooled Netback. At the end of each calendar month,
promptly after the information necessary to calculate the Actual Pooled Netback becomes
available, RPMG will calculate the Actual Pooled Netback for the preceding month. RPMG
shall use the same methodology that is used to calculate the Estimated Pooled Netback
except that the calculation shall be based on the actual gross ethanol selling price for
all pooled ethanol sold during the month and the actual direct distribution expense
incurred by RPMG during the period. For purposes of this calculation the actual direct
distribution expense attributable to Member shall include any demurrage charges incurred
by RPMG for rail cars located at Member’s Facility.

     (ii) Reconciliation of Estimated and Actual Netback. Within fifteen days
after the end of each month, RPMG shall furnish to Member a reconciliation of the
Estimated Pooled Netback to the Actual Pooled Netback for the preceding month. If the
Estimated Pooled Netback paid to Member exceeded the Actual Pooled Netback, Member will
refund to RPMG the overpayment within ten (10) days after receipt of the reconciliation.
On the other hand, if the Estimated Pooled Netback paid was less than the Actual Pooled
Netback owed to Member, then RPMG will pay Member the additional amount owed to Member
within ten (10) days after the completion of the reconciliation. In lieu of Member
directly refunding any amounts to RPMG by separate payment, and RPMG directly refunding
any amounts to Member by separate payment, under this Section 7 the parties may offset or
apply the such amounts to subsequent payments.

     (c) Audit. Within ninety (90) days following the end of RPMG’ fiscal year end,
Member shall have the right to inspect the books and records of RPMG for the purpose of auditing
calculations of the Actual Pooled Netback Ethanol Selling Price for
the preceding year. Member
shall give written notice to RPMG of its desire to conduct an audit and RPMG shall provide
reasonable access to all financial information necessary to complete such audit. The audit shall
be conducted by an accounting firm agreeable to both parties and shall be completed within 45 days
after the completion of RPMG’ annual audit, but no later than 150 days following RPMG’ fiscal
year. The cost of the audit shall

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be the responsibility of Member unless the auditor determines that RPMG underpaid Member by
more than 3% for the period audited, in which case RPMG shall pay the cost of the audit. If
the auditor determines that RPMG underpaid Member, RPMG shall promptly pay such
underpayment to Member and if the auditor determines that RPMG overpaid Member, Member
shall promptly pay the overpayment to RPMG. The determination of the auditor shall be final
and binding on both parties. If Member fails to exercise its right to audit as provided in
this Section 8(c) for any year, it shall be deemed to have waived any claim to dispute the
Actual Netback Ethanol Selling Price for such year.

     8. Estimated 12-Month Volume.  As of the Effective Date Member will provide
RPMG with Member’s best estimate of its anticipated monthly ethanol production for the next
twelve (12) months to assist RPMG in developing appropriate marketing strategies for the
ethanol to be produced by Member.

     9. Updated Monthly Volume Estimates.  On or before the first day of each month,
after the Effective Date, Member will provide RPMG with its updated best estimate of Member’s
anticipated monthly ethanol production for each of the next twelve (12) months, so that RPMG
will have rolling ethanol production estimates from Member for each of the next twelve (12)
months during the entire time that this Agreement is in effect. RPMG shall be entitled to
rely
upon such estimates in marketing and selling the pooled ethanol production of all pool
participants. From time to time RPMG may enter into forward contracts to sell estimated pooled
production beyond the 12-month period covered by the estimated production of Member. Any
such commitment will be based on market conditions and projected pooled production based on
ail pool participants estimated and historical production, Member acknowledges that such
commitments are in the best interest of pool participants and RPMG may rely on Member’s
continued production beyond the 12 month estimates for such purpose. RPMG shall provide
Member with a schedule of committed pooled production at least monthly.

     10. Obligation to Deliver after Termination.  Notwithstanding termination of this
Agreement, Member shall be obligated to deliver to RPMG for marketing by RPMG in
accordance with, this Agreement, the estimated production of Member for the twelve (12) months
following termination of this Agreement and Member’s percentage of any committed pooled
production beyond such twelve (12) month period based upon Member’s average monthly
percentage contribution to the total pooled production for the preceding 12 months.

     11. Ethanol Shortage/Open Market Purchase.  If Member is unable to deliver its
estimated monthly ethanol production and if as a consequence of the non-delivery and in order
to
meet its sale obligations to third parties, RPMG is required to purchase ethanol in the

marketplace, RPMG may purchase ethanol in the marketplace at such reasonable price and in
such reasonable quantity as is required to meet its delivery obligations; provided, however,
that
prior to making such purchases RPMG shall communicate the terms and conditions of such
purchases to Member and Member shall have the right to meet such terms and conditions. If
Member is unable or unwilling to deliver the required ethanol on such terms and conditions,
RPMG may complete the purchase. If it does so, and as a result thereof incurs a financial
loss, Member will reimburse RPMG for any such loss or RPMG may elect to set off such financial
loss against future payments to Member over a period not to exceed twenty four (24) months.

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     12. Accounts Receivable/Rail Car Leases/Termination of Contract. RPMG will lease
railcars to be used by Member and all lease costs will be included in the calculation of Direct
Ethanol Distribution Expense. If this Agreement is terminated for any reason the lease for the
railcars leased by RPMG for the transport of Member’s ethanol shall be assigned to Member. In such
case Member shall assume the lease and shall be obligated to the terms and conditions of said
lease. RPMG shall provide Member the opportunity to review and approve the terms and conditions of
any such railcar lease as well as the terms and conditions of any amendments or modifications to
any such railcar lease before RPMG first executes the same. The parties understand that the
assignment of the lease is subject to the approval of the lessor of the railcars. If the lessor
refuses to consent to the assignment, Member shall indemnify and hold harmless RPMG for any future
claim, liability or expenses with respect to such leases from and after the date of assignment.

     13. No “Take or Pay”. The parties agree that this is not a “take or pay contract” and
that RPMG’ liability is limited to payment for ethanol delivered by Member pursuant to this
Agreement.

     14. Term. The term of this Agreement shall commence on the Effective Date and
shall continue so long as Member remains a member of LLC.

     15. Termination. This Agreement may be terminated under the circumstances set
out below.

     (a)
Termination of Membership. This Agreement shall automatically terminate when
Member ceases to be a Member of LLC.

     (b) Termination for Intentional Misconduct. If either party engages in
intentional misconduct reasonably likely to result in significant adverse consequences to
the other party, the party harmed or likely to be harmed by the intentional misconduct may
terminate this Agreement immediately, upon written notice to the party engaging in the
intentional misconduct.

     (c) Termination for Uncured Breach. If one of the parties breaches the terms of
this Agreement, the other party may give the breaching party a notice in writing which
specifically sets out the nature and extent of the breach, and the steps that must be taken
to cure the breach. After receiving the written notice, the breaching party will then have
thirty (30) days to cure the breach, if the breach does not involve a failure to market and
distribute ethanol as required by this Agreement. If the breach involves a failure to
market and distribute ethanol as required by this Agreement, then the breaching party will
have five (5) days after receiving the written notice to cure the breach. If the breaching
party does not cure any breach within the applicable cure period, then the non-breaching
party will have the right to terminate this Agreement immediately.

     (d) Member Insolvency, etc. RPMG may terminate this Agreement if Member becomes
insolvent, has a receiver appointed over its business or assets and such receiver is not
discharged within 30 days, files a petition in bankruptcy or has a petition

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in bankruptcy filed against it which, in either case, is not dismissed within 30 days, or
ceases to produce ethanol for 30 days or more.

     (e) Termination by Mutual Written Agreement. This Agreement may also be
terminated upon any terms and under any conditions which are mutually agreed upon in
writing by the parties.

     16. Licenses
and Permits; Records. Member at all times shall have and maintain
all of
the licenses and permits necessary to construct and operate the Facility. Member shall comply with
all laws, regulations, rules and requirements of governmental authorities, including but not
limited to the Renewable Fuels Standard of RINS reporting. In addition, Member shall establish
record keeping and reporting systems compatible with the RPMG load out reporting system, currently
ETS and AccuLoad III.

     17. Good and Marketable Title. Member represents that it will have good and
marketable title to all of the ethanol marketed for it by RPMG and that said ethanol will be free
and clear of all liens and encumbrances.

     18. Subordination. In order to satisfy the payment obligations in Section 7 of this
Agreement, RPMG may be required to obtain working capital from financing resources. Member agrees
and acknowledges that the payment terms in this Agreement are a benefit to Member and agrees that
it will subordinate its right to payment hereunder to the rights of any lender providing working
capital to RPMG, provided that all Members of RPMG are required to agree to such subordination.
Member shall execute such subordination agreement and other documents as may be necessary to
evidence this undertaking.

     19. Independent Contractor. Nothing contained in this Agreement will make RPMG
the agent of Member for any purpose whatsoever. RPMG and its employees shall be deemed to
be independent contractors with full control over the manner and method of performance of the
services they will be providing on behalf of Member under this
Agreement.

     20. Samples. Member will take and retain for a minimum of 60 days at least 2
samples of product per day at the point of delivery. At the request of RPMG, Member agrees to
provide RPMG with samples of its ethanol produced at the Facility so that it may be tested for
product quality on a regular basis.

     21. Insurance. During the entire term of this Agreement, Member will maintain
insurance coverage. At a minimum, Member’s insurance coverage must include:

     (a) Commercial general product and public liability insurance, with liability
limits of at least $5 million in the aggregate;

     (b) Property and casualty insurance adequately insuring its production
facilities and its other assets against theft, damage and destruction on a replacement
cost
basis;

     (c) Workers’ compensation insurance to the extent required by law; and

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     (d) RPMG shall be added as an additional insured under the commercial general product
and public liability insurance policy and the property and casualty insurance policy.

     Member will not change its insurance coverage during the term of this Agreement if
such change results in a failure to maintain the minimums set out above, and the policies
shall provide that they may not be cancelled or terminated without at least 30 days prior
written notice to RPMG.

     22. Indemnification and Hold Harmless — Member. If a third party makes a claim against
RPMG or any person or organization related to it as the result of the actions or omissions of
Member or any person or organization related to Member including, but not limited to, claims
relating to the quality of ethanol produced by Member or the performance of its obligations under
this Agreement, Member shall indemnify RPMG and its related persons and organizations and hold them
harmless from any liabilities, damages, costs and/or expenses, including costs of litigation and
reasonable attorneys fees which they incur as a result of any such claims.

     23. Indemnification and Hold Harmless — RPMG. The indemnification obligations of the
parties under this Agreement will be mutual and RPMG, therefore, makes the same commitment to
indemnify Member and its related persons or organizations to the extent any claim is made against
Member or its related person arising out of any action or omission of RPMG.

     24. Survival of Terms/Dispute Resolution. All representations, warranties and
agreements made in connection with this Agreement will survive the termination of this Agreement.
The parties will, therefore, be able to pursue claims related to those representations, warranties
and agreements after the termination of this Agreement, unless those claims are barred by the
applicable statute of limitations. Similarly, any claims that the parties have against each other
that arise out of actions or omissions that take place while this Agreement is in effect will
survive the termination of this Agreement. This means that the parties may pursue those claims
even after the termination of this Agreement, unless applicable statutes of limitation bar those
claims. The parties agree that should a dispute between them arise in connection with this
Agreement, the parties will complete, in good faith, attempt to mediate the dispute prior to the
filing of any action in any court. Such mediation session shall occur at a place that is mutually
agreeable, and shall be conducted by a mediator to be selected by mutual agreement of the parties.

     25. Choice of Law. This Agreement shall be governed by, interpreted under and enforced in
accordance with Minnesota law, without regard to conflicts of law principles.

     26. Assignment. Neither party may assign its rights or obligations under this
Agreement without the written consent of the other party, which consent will not be unreasonably
withheld. Member shall be entitled to grant a security intent in its rights under this Agreement
solely for financing purposes.

     27. Entire Agreement. This Agreement constitutes the entire agreement between the
parties covering everything agreed upon or understood in the transaction and supersedes any

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other preexisting Agreement between the parties with respect to the same subject matter. There are
no oral promises, conditions, representations, understandings, interpretations, or terms of any
kind as conditions or inducements to the execution hereof or in effect between the parties, except
as expressed in this Agreement. No change or addition shall be made to this Agreement except by a
written document signed by all parties hereto.

     28. Execution of Counterparts. This Agreement may be executed by the parties on any
number of separate counterparts, and by each party on separate counterparts, each of such
counterparts being deemed by the parties to be an original instrument; and all of such
counterparts, taken together, shall be deemed to constitute one and the same instrument.

     29. Duplicate Counterpart Includes Facsimile. The parties specifically agree and
acknowledge that a duplicate hereof shall include, but not be limited to, a counterpart produced by
virtue of a facsimile (“fax”) machine.

     30. Binding Effect. This Agreement shall be binding upon, and shall inure to the
benefit of, the parties hereto and there respective heirs, personal representatives, successors and
assigns.

     31. Confidential
Information. The parties acknowledge that they will be exchanging
information about their businesses under this Agreement which is confidential and proprietary, and
the parties agree to handle that confidential and proprietary information in the manner described
in this Section 23.

     (a) Definition of Confidential Information. For purposes of this Agreement,
the term “Confidential Information” will mean information related to the business
operations of Member or RPMG that meets all of the following criteria:

     (i) The information must not be generally known to the public and must not be
a part of the public domain;

     (ii) The information must belong to the party claiming it is confidential and
must be in that party’s possession;

     (iii) The information must have been protected and safeguarded by the party
claiming it is confidential by measures that were reasonable under the
circumstances before the information was disclosed to the other party’

     (iv) Written information must be clearly designated in writing as
“Confidential Information” by the party claiming it is confidential before it is
disclosed to the other party, except that all information about costs and prices
will always be considered Confidential Information under this Agreement without the
need for specifically designating it as such; and

     (v) Verbal Confidential Information which is disclosed to the other party must
be summarized in writing, designated in writing as “Confidential Information’’ and
transmitted to the other party within ten (10) days of the verbal disclosure.

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     (b) Limitations on the Use of Confidential Information. Each party agrees that
it will not use any Confidential Information thai it obtains about the other party for any
purpose other than to perform its obligations under this Agreement.

     (c) The Duty not to Disclose Confidential Information. The parties agree that they will
not disclose any Confidential information about each other to any person or organization,
other than their respective legal counsel and accountants, without first getting written
consent to do so from the other party. Notwithstanding the foregoing, if a party or anyone
to whom such party transmits Confidential Information in accordance with this Agreement is
requested or required (by deposition, interrogatories, requests for information or documents
in legal proceedings, subpoenas, civil investigative demand or
similar process, SEC filings
or administrative proceedings) in connection with any proceeding, to disclose any
Confidential Information, such party will give the disclosing party prompt written notice of
such request or requirement so that the disclosing party may seek an appropriate protective
order or other remedy and/or waive compliance with the provisions of this Agreement, and the
receiving party will cooperate with the disclosing party to obtain such protective order.
The fees and costs of obtaining such protective order, including payment of reasonable
attorney’s fees, shall be paid for by the disclosing party. If such protective order or
other remedy is not obtained or the disclosing party waives compliance with the relevant
provisions of this Agreement, the receiving party (or such other persons to whom such
request is directed) will furnish only that portion of the Confidential Information which,
in the opinion of legal counsel, is legally required to be disclosed, and upon the
disclosing party’s request, use commercially reasonable efforts to obtain assurances
that the confidential treatment will be accorded to such information. This will be the case
both while this Agreement is in effect and for a period of five (5) years after it has been
terminated.

     (d) The Duty to Notify the Other Party in Cases of Improper Use or
Disclosure. Each party agrees to immediately notify the other party if either party
becomes aware of any improper use of or any improper disclosure of
the Confidential information of the other party at any time while this Agreement is in effect, and for a
period of five (5) years after it has been terminated.

     (e) Protection of the Confidential Information. Each party agrees to develop
effective procedures for protecting the Confidential Information that it obtains from the
other party, and to implement those procedures with the same degree of care that it uses in
protecting its own Confidential Information.

     (f) Return of the Confidential Information. Immediately upon the termination
of this Agreement, each party agrees to return to the other party all of the other party’s
Confidential Information that is in its possession or under its control.

     32. Notices. Any notice or other communication required or permitted hereunder
shall be in writing and shall be considered delivered in all respects when it has been delivered by
hand or mailed by first class mail postage prepaid, addressed as follows:

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	TO:	 	RPMG, Inc.
809 East Main Street, Suite 2
Belle Plaine, MN 56011

With a copy to:

TO:     Member

With a copy to:

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     IN WITNESS WHEREOF, the parties hereto have set their hands the day and year first written
above.

	 	 	 	 	 
	 	RPMG, INC.

 	 
	 	By:  	/s/
Randy Hahn	 
	 
	 	Its   CEO	 
	 	 	 	 
	 
	 	Member

 	 
	 	By:  	/s/
Mick J. Miller	 
	 
	 	Its:   PRESIDENT
& CEO	 
	 	 	 	 
	 

11exv10w42

 

EXHIBIT 10.42

CONTRIBUTION AGREEMENT

THIS AGREEMENT, made and entered into as of the 1st day of January, 2008, by and between RENEWABLE
PRODUCTS MARKETING GROUP, LLC (“RPMG”), and RED TRAIL ENERGY, LLC (“Red Trail”), a North Dakota
limited liability company, PO Box 11, Richardton, North Dakota 58652.

     WITNESSETH:

     WHEREAS, RPMG is a limited liability company formed for the purpose of marketing ethanol for
its Members and others; and

     WHEREAS, Red Trail produces ethanol products located at Richardton, North Dakota and is
desirous of becoming a Member of RPMG and RPMG is desirous of having Red Trail become a Member.

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

     1. Membership. As of January 1, 2008, Red Trail is hereby admitted as a Member of
RPMG, having an initial Membership Interest of 8.333%. RPMG agrees that Schedule A to the RPMG
Member Control Agreement shall be revised as set forth in Exhibit A to this Agreement. RPMG
acknowledges that the Members have approved the admission of Red Trail as required by the Member
Control Agreement between the Company and its Members.

     2. Consideration. In consideration for its Membership in RPMG, Red Trail shall make
the following capital contribution:

	 	a.	 	An initial contribution of $105,000, receipt of which is
hereby
acknowledged;

	 
	 	b.	 	An additional $500,000 to be paid on a monthly basis in an
amount equal
to $0.01 minus RPMG operating expenses, multiplied by the total gallons
of ethanol production sold by RPMG for Red Trail during the month;

	 
	 	c.	 	Red Trail may at any time prepay all or any part of the
outstanding
balance of its capital contribution;

	 
	 	d.	 	The unpaid balance of the deferred capital contribution is
due and payable to RPMG irrespective of Red Trail’s continuation as a member
of, or using the marketing services of RPMG, and shall become immediately due
and payable if Red Trail ceases to be a member of RPMG for any reason,
including termination of the Member Ethanol Fuel Marketing Agreement.

     3. Other Agreements. As a condition to its admission as a Member of RPMG, Red
Trail has executed and delivered to RPMG a Member Ethanol Fuel Marketing Agreement dated as of
January 1, 2008 and acknowledges receipt of and agrees to be bound by the RPMG

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Amended and Restated Member Control Agreement and the RPMG Amended and Restated Bylaws and
Operating Agreement. In the event it is determined that there is an inconsistency between this
Agreement and the aforesaid Agreements, the aforesaid Agreements shall control.

     4. Governing Law. This Agreement and the rights of the parties hereunder will be
governed by, interpreted, and enforced in accordance with the laws of the State of Minnesota.

     5. Binding Effect. This Agreement will be binding upon and inure to the benefit of the
parties and their respective successors and assigns.

     6. Severability. If any provision of this Agreement is held to be illegal, invalid,
or unenforceable under the present or future laws effective during the term of this Agreement,
such provision shall be fully severable; this Agreement shall be construed and enforced as if such
illegal, invalid, or unenforceable provision had never comprised a part of this Agreement; and the
remaining provisions of this Agreement shall remain in full force and effect and shall not be
affected by the illegal, invalid, or unenforceable provision or by its severance from this
Agreement. Furthermore, in lieu of such illegal, invalid, or unenforceable provision, there shall
be added automatically as a part of this Agreement a provision as similar in terms to such
illegal, invalid, or unenforceable provision as may be possible and be legal, valid, and
enforceable.

     7. Additional Documents and Acts. Red Trail agrees to execute and deliver such
additional documents and instruments and to perform such additional acts as may be necessary or
appropriate to effectuate, carry out and perform all of the terms, provisions, and conditions of
this Agreement and the transactions contemplated hereby.

     8. No Third Party Beneficiary. This Agreement is made solely and specifically among
and for the benefit of the parties hereto, and their respective successors and assigns, and no
other person will have any right, interest, or claims hereunder or be entitled to any benefits
under or on account of this Agreement as a third party beneficiary or otherwise.

     9. Notices. Any notice to be given or to be served upon the Company or any party
hereto in connection with this Agreement must be in writing and will be deemed to have been given
and received when delivered to the address specified by the party to receive the notice. Such
notices will be given to Red Trail at the address specified in the Company’s Required Records. Red
Trail may, at any time by giving five (5) days’ prior written notice to the other Members and the
Company, designate any other address in substitution of the foregoing address to which such notice
will be given.

     IN WITNESS WHEREOF, the parties hereto have hereunto set their hands the day and year first
above written.

	 	 	 	 	 	 	 	 	 	 	 
	RENEWABLE PRODUCTS	 	 	 	RED TRAIL ENERGY, LLC	 	 
	MARKETING GROUP, LLC	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By

	 	/s/ Randy Hahn
	 	 	 	By
	 	/s/ Mick J. Miller	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Its

	 	CEO
	 	 	 	Its
	 	PRESIDENT & CEO	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

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SCHEDULE A

As of January 1, 2008

	 	 	 	 	 	 	 	 	 
	Name of Member	 	Percentage Interest	 	Voting Interest
	Chippewa Valley Ethanol Co., LLLP
	 	 	8.333	%	 	 	8.333	%
	Denco, LLC
	 	 	8.333	%	 	 	8.333	%
	Heartland Corn Products
	 	 	8.333	%	 	 	8.333	%
	Corn Plus
	 	 	8.333	%	 	 	8.333	%
	Al-Corn Clean Fuel LP
	 	 	8.333	%	 	 	8.333	%
	Central MN Ethanol Co-op
	 	 	8.333	%	 	 	8.333	%
	Minnesota Energy
	 	 	8.333	%	 	 	8.333	%
	KAAPA Ethanol, LLC
	 	 	8.333	%	 	 	8.333	%
	Mid-Missouri Energy, LLC
	 	 	8.333	%	 	 	8.333	%
	Golden Grain Energy, LLC
	 	 	8.333	%	 	 	8.333	%
	Dakota Ethanol. LLC
	 	 	8.333	%	 	 	8.333	%
	Red Trail Energy, LLC
	 	 	8.333	%	 	 	8.333	%

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]