Document:

exv10w1

 

Exhibit 10.1

CHANGE IN CONTROL AGREEMENT

          THIS AGREEMENT, dated ___, ___, is made by and between US BioEnergy Corporation (the
“Company”), and ___(the “Executive”).

          WHEREAS, the Company considers it essential to the best interests of its stockholders to
foster the continued employment of key management personnel; and

          WHEREAS, the Board recognizes that, as is the case with many publicly held corporations, the
possibility of a Change in Control exists and that such possibility, and the uncertainty and
questions which it may raise among management, may result in the departure or distraction of
management personnel to the detriment of the Company and its stockholders; and

          WHEREAS, the Board has determined that appropriate steps should be taken to reinforce and
encourage the continued attention and dedication of members of the Company’s management, including
the Executive, to their assigned duties without distraction in the face of potentially disturbing
circumstances arising from the possibility of a Change in Control;

          NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained,
the Company and the Executive hereby agree as follows:

          1. Defined Terms. The definitions of capitalized terms used in this Agreement are
provided in the last Section hereof.

          2. Term of Agreement. The Term of this Agreement shall commence on the date hereof
and shall continue in effect through December 31, 2009; provided, however, that
commencing on January 1, 2009 and each January 1 thereafter, the Term shall automatically be
extended for one additional year unless, not later than September 30 of the preceding year, the
Company or the Executive shall have given notice not to extend the Term; and further
provided, however, that if a Change in Control shall have occurred during the Term,
the Term shall expire no earlier than twenty-four (24) months beyond the month in which such Change
in Control occurred.

          3. Company’s Covenants Summarized. In order to induce the Executive to remain in the
employ of the Company and in consideration of the Executive’s covenants set forth in Section 4
hereof, the Company agrees, under the conditions described herein, to pay the Executive the
Severance Payments and the other payments and benefits described herein. No Severance Payments shall be payable under this Agreement
unless there shall have been (or, under the terms of the second sentence of Section 6.1 hereof,
there shall be deemed to have been) a termination of the Executive’s employment with the Company
following a Change in Control and during the Term. This Agreement shall not be construed as
creating an express or implied contract of

 

 

employment and, except as otherwise agreed in writing
between the Executive and the Company, the Executive shall not have any right to be retained in the
employ of the Company.

          4. The Executive’s Covenants. The Executive agrees that, subject to the terms and
conditions of this Agreement, in the event of a Potential Change in Control during the Term, the
Executive will remain in the employ of the Company until the earliest of (i) a date which is six
(6) months from the date of such Potential Change in Control, (ii) the date of a Change in Control,
(iii) the date of termination by the Executive of the Executive’s employment for Good Reason or by
reason of death, Disability or Retirement, or (iv) the termination by the Company of the
Executive’s employment for any reason.

          5. Compensation Other Than Severance Payments.

          5.1 Following a Change in Control and during the Term, during any period that the Executive
fails to perform the Executive’s full-time duties with the Company as a result of incapacity due to
physical or mental illness, the Company shall pay the Executive’s full salary to the Executive at
the rate in effect at the commencement of any such period, together with all compensation and
benefits payable to the Executive under the terms of any compensation or benefit plan, program or
arrangement maintained by the Company during such period (other than any disability plan), until
the Executive’s employment is terminated by the Company for Disability.

          5.2 If the Executive’s employment shall be terminated for any reason following a Change in
Control and during the Term, the Company shall pay the Executive’s full salary to the Executive
through the Date of Termination at the rate in effect immediately prior to the Date of Termination
or, if higher, the rate in effect immediately prior to the first occurrence of an event or
circumstance constituting Good Reason, together with all compensation and benefits payable to the
Executive through the Date of Termination under the terms of the Company’s compensation and benefit
plans, programs or arrangements as in effect immediately prior to the Date of Termination or, if
more favorable to the Executive, as in effect immediately prior to the first occurrence of an event
or circumstance constituting Good Reason.

          5.3 If the Executive’s employment shall be terminated for any reason following a Change in
Control and during the Term, the Company shall pay to the Executive the Executive’s normal
post-termination compensation and benefits as such payments become due. Such post-termination
compensation and benefits shall be determined under, and paid in accordance with, the Company’s
retirement, insurance and other compensation or benefit plans, programs and arrangements as in
effect immediately prior to the Date of Termination or, if more favorable to the Executive, as in effect
immediately prior to the occurrence of the first event or circumstance constituting Good Reason;
provided, however, that the Executive shall be entitled to a cash payment in respect of the
Executive’s accrued paid time off, calculated based on the Executive’s base

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salary in effect at the Date of Termination (without giving effect to any change thereto constituting Good Reason).

          5.4 Upon the occurrence of a Change in Control, all of the Executive’s then-outstanding
options, restricted stock and other equity awards from the Company which vest based on continued
service with the Company shall immediately vest. All of the Executive’s then-outstanding options,
restricted stock and other equity awards which vest based on the achievement of specific
performance criteria will vest on a pro-rata basis to the extent that the performance criteria have
been achieved as of the date of the Change in Control. If and to the extent actual performance
results as of the Change in Control date cannot be determined at the time of the Change in Control,
such performance-based equity awards will vest on a pro-rata basis as of the date of the Change in
Control assuming performance at the target level was achieved.

          6. Severance Payments.

          6.1 Subject to Section 6.2 hereof, if the Executive’s employment is terminated during the two
year period immediately following a Change in Control and during the Term, other than (A) by the
Company for Cause, (B) by reason of death or Disability, or (C) by the Executive without Good
Reason, then the Company shall pay the Executive the amounts, and provide the Executive the
benefits, described in this Section 6.1 (“Severance Payments”), in addition to any payments and
benefits to which the Executive is entitled under Section 5 hereof. For purposes of this
Agreement, the Executive’s employment shall be deemed to have been terminated following a Change in
Control by the Company without Cause or by the Executive with Good Reason, if within the 90 day
period prior to a Change in Control (i) the Executive’s employment is terminated by the Company
without Cause and such termination was at the request or direction of a Person who has entered into
an agreement with the Company the consummation of which would constitute a Change in Control, (ii)
the Executive terminates his employment for Good Reason prior to a Change in Control and the
circumstance or event which constitutes Good Reason occurs at the request or direction of such
Person, or (iii) the Executive’s employment is terminated by the Company without Cause or by the
Executive for Good Reason and such termination or the circumstance or event which constitutes Good
Reason is otherwise in connection with or in anticipation of a Change in Control.

          (A) In lieu of any further salary payments to the Executive for periods subsequent to
the Date of Termination and in lieu of any severance benefit otherwise payable to the
Executive, the Company shall pay to the Executive a lump sum severance payment, in cash,
equal to [three] [two] times the sum of (i) the Executive’s base salary as in effect
immediately prior to the Date of Termination or, if higher, in effect immediately prior to
the first occurrence of an event or circumstance constituting Good Reason, and (ii) the greater
of (1) the target annual bonus of the Executive pursuant to any annual bonus or incentive
plan maintained by the Company in respect of the fiscal year in which occurs the Date of
Termination or (2) the annual bonus earned by the

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Executive pursuant to any annual bonus or
incentive plan maintained by the Company with respect to the fiscal year ending immediately
prior to the fiscal year in which occurs the Date of Termination.

          (B) For the [thirty-six (36)] [twenty-four (24)] month period immediately following
the Date of Termination, the Company shall arrange to provide the Executive and his
dependents health, vision care and dental insurance benefits substantially similar to those
provided to the Executive and his dependents immediately prior to the Date of Termination
or, if more favorable to the Executive, those provided to the Executive and his dependents
immediately prior to the first occurrence of an event or circumstance constituting Good
Reason, at no greater after tax cost to the Executive than the after tax cost to the
Executive immediately prior to such date or occurrence; provided, however,
that, unless the Executive consents to a different method, such health insurance benefits
shall be provided through a third-party insurer. Benefits otherwise receivable by the
Executive pursuant to this Section 6.1(B) shall be reduced to the extent benefits of the
same type are received by or made available to the Executive by a subsequent employer
during the [thirty-six (36)] [twenty-four (24)] month period following the Executive’s
termination of employment (and any such benefits received by or made available to the
Executive shall be reported to the Company by the Executive).

          6.2 (A) Notwithstanding any other provisions of this Agreement, in the event that any payment
or benefit received or to be received by the Executive (including any payment or benefit received
in connection with a Change in Control or the termination of the Executive’s employment, whether
pursuant to the terms of this Agreement or any other plan, arrangement or agreement) (all such
payments and benefits, including the Severance Payments, being hereinafter referred to as the
“Total Payments”) would not be deductible (in whole or part), by the Company, an affiliate or
Person making such payment or providing such benefit as a result of section 280G of the Code, then,
to the extent necessary to make such portion of the Total Payments deductible (and after taking
into account any reduction in the Total Payments provided by reason of section 280G of the Code in
such other plan, arrangement or agreement), the cash Severance Payments shall first be reduced (if
necessary, to zero), and all other Severance Payments shall thereafter be reduced (if necessary, to
zero); provided, however, that the Executive may elect to have the noncash
Severance Payments reduced (or eliminated) prior to any reduction of the cash Severance Payments.

          (B) For purposes of this limitation, (i) no portion of the Total Payments the receipt or
enjoyment of which the Executive shall have waived at such time and in such manner as not to
constitute a “payment” within the meaning of section 280G(b) of the Code shall be taken into
account, (ii) no portion of the Total Payments shall be taken into account which, in the opinion of tax counsel (“Tax Counsel”) reasonably acceptable to the
Executive and selected by the accounting firm which was, immediately prior to the Change in
Control, the Company’s independent auditor (the “Auditor”), does not constitute a “parachute
payment” within the meaning of section 280G(b)(2) of the Code,

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including by reason of section
280G(b)(4)(A) of the Code, (iii) the Severance Payments shall be reduced only to the extent
necessary so that the Total Payments (other than those referred to in clauses (i) or (ii)) in their
entirety constitute reasonable compensation for services actually rendered within the meaning of
section 280G(b)(4)(B) of the Code or are otherwise not subject to disallowance as deductions by
reason of section 280G of the Code, in the opinion of Tax Counsel, and (iv) the value of any
noncash benefit or any deferred payment or benefit included in the Total Payments shall be
determined by the Auditor in accordance with the principles of sections 280G(d)(3) and (4) of the
Code.

          (C) If it is established pursuant to a final determination of a court or an Internal Revenue
Service proceeding that, notwithstanding the good faith of the Executive and the Company in
applying the terms of this Section 6.2, the Total Payments paid to or for the Executive’s benefit
are in an amount that would result in any portion of such Total Payments being subject to the
Excise Tax, then, if such repayment would result in (i) no portion of the remaining Total Payments
being subject to the Excise Tax and (ii) a dollar-for-dollar reduction in the Executive’s taxable
income and wages for purposes of federal, state and local income and employment taxes, the
Executive shall have an obligation to pay the Company upon demand an amount equal to the sum of (i)
the excess of the Total Payments paid to or for the Executive’s benefit over the Total Payments
that could have been paid to or for the Executive’s benefit without any portion of such Total
Payments being subject to the Excise Tax; and (ii) interest on the amount set forth in clause (i)
of this sentence at the rate provided in section 1274(b)(2)(B) of the Code from the date of the
Executive’s receipt of such excess until the date of such payment.

          6.3 Subject to Section 14 hereof, the payments provided in subsection (A) of Section 6.1
hereof shall be made not later than the fifth day following the Date of Termination. At the time
that payments are made under this Agreement, the Company shall provide the Executive with a written
statement setting forth the manner in which such payments were calculated and the basis for such
calculations including, without limitation, any opinions or other advice the Company has received
from Tax Counsel, the Auditor or other advisors or consultants (and any such opinions or advice
which are in writing shall be attached to the statement).

          6.4 The Company also shall pay to the Executive all legal fees and expenses incurred by the
Executive in disputing in good faith any issue hereunder relating to the termination of the
Executive’s employment, in seeking in good faith to obtain or enforce any benefit or right provided
by this Agreement or in connection with any tax audit or proceeding to the extent attributable to
the application of section 4999 of the Code to any payment or benefit provided hereunder. Such
payments shall be made within five (5) business days after delivery of the Executive’s written
requests for payment accompanied with such evidence of fees and expenses incurred as the Company reasonably
may require.

          7. Termination Procedures and Compensation During Dispute.

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          7.1 Notice of Termination. After a Change in Control and during the Term, any
purported termination of the Executive’s employment (other than by reason of death) shall be
communicated by written Notice of Termination from one party hereto to the other party hereto in
accordance with Section 10 hereof. For purposes of this Agreement, a “Notice of Termination” shall
mean a notice which shall indicate the specific termination provision in this Agreement relied upon
and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive’s employment under the provision so indicated. Further, a Notice of
Termination for Cause is required to include a copy of a resolution duly adopted by the affirmative
vote of not less than three-quarters (3/4) of the entire membership of the Board at a meeting of
the Board which was called and held for the purpose of considering such termination (after
reasonable notice to the Executive and an opportunity for the Executive, together with the
Executive’s counsel, to be heard before the Board) finding that, in the good faith opinion of the
Board, the Executive was guilty of conduct set forth in clause (i) or (ii) of the definition of
Cause herein, and specifying the particulars thereof in detail.

          7.2 Date of Termination. “Date of Termination,” with respect to any purported
termination of the Executive’s employment after a Change in Control and during the Term, shall mean
(i) if the Executive’s employment is terminated for Disability, thirty (30) days after Notice of
Termination is given (provided that the Executive shall not have returned to the full-time
performance of the Executive’s duties during such thirty (30) day period), and (ii) if the
Executive’s employment is terminated for any other reason, the date specified in the Notice of
Termination (which, in the case of a termination by the Company, shall not be less than thirty (30)
days (except in the case of a termination for Cause) and, in the case of a termination by the
Executive, shall not be less than fifteen (15) days nor more than sixty (60) days, respectively,
from the date such Notice of Termination is given).

          7.3 Dispute Concerning Termination. If within fifteen (15) days after any Notice of
Termination is given, or, if later, prior to the Date of Termination (as determined without regard
to this Section 7.3), the party receiving such Notice of Termination notifies the other party that
a dispute exists concerning the termination, the Date of Termination shall be extended until the
earlier of (i) the date on which the Term ends or (ii) the date on which the dispute is finally
resolved, either by mutual written agreement of the parties or by a final judgment, order or decree
of an arbitrator or a court of competent jurisdiction (which is not appealable or with respect to
which the time for appeal therefrom has expired and no appeal has been perfected);
provided, however, that the Date of Termination shall be extended by a notice of
dispute given by the Executive only if such notice is given in good faith and the Executive pursues
the resolution of such dispute with reasonable diligence.

          7.4 Compensation During Dispute. If a purported termination occurs following a Change
in Control and during the Term and the Date of Termination is extended in accordance with Section
7.3 hereof, the Company shall continue to pay the Executive the full compensation in effect when
the notice giving rise to the dispute was

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given (including, but not limited to, salary) and continue the Executive as a participant in all
compensation, benefit and insurance plans in which the Executive was participating when the notice
giving rise to the dispute was given, until the Date of Termination, as determined in accordance
with Section 7.3 hereof. Amounts paid under this Section 7.4 are in addition to all other amounts
due under this Agreement (other than those due under Section 5.2 hereof) and shall not be offset
against or reduce any other amounts due under this Agreement.

          8. No Mitigation. The Company agrees that, if the Executive’s employment with the
Company terminates during the Term, the Executive is not required to seek other employment or to
attempt in any way to reduce any amounts payable to the Executive by the Company pursuant to
Section 6 hereof or Section 7.4 hereof. Further, except as specifically provided in Section 6.1(B)
hereof, no payment or benefit provided for in this Agreement shall be reduced by any compensation
earned by the Executive as the result of employment by another employer, by retirement benefits, by
offset against any amount claimed to be owed by the Executive to the Company, or otherwise.

          9. Successors; Binding Agreement.

          9.1 In addition to any obligations imposed by law upon any successor to the Company, the
Company will require any successor (whether direct or indirect, by purchase, merger, consolidation
or otherwise) to all or substantially all of the business and/or assets of the Company to expressly
assume and agree to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place.

          9.2 This Agreement shall inure to the benefit of and be enforceable by the Executive’s
personal or legal representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees. If the Executive shall die while any amount would still be payable to the
Executive hereunder (other than amounts which, by their terms, terminate upon the death of the
Executive) if the Executive had continued to live, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Agreement to the executors, personal
representatives or administrators of the Executive’s estate.

          10. Notices. For the purpose of this Agreement, notices and all other communications
provided for in the Agreement shall be in writing and shall be deemed to have been duly given when
delivered or mailed by United States registered mail, return receipt requested, postage prepaid,
addressed, if to the Executive, to the address inserted below the Executive’s signature on the
final page hereof and, if to the Company, to the address set forth below, or to such other address
as either party may have furnished to the other in writing in accordance herewith, except that
notice of change of address shall be effective only upon actual receipt:

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To the Company:

US BioEnergy Corporation

5500 Cenex Drive

Inver Grove Heights, Mn 55077

Attention: General Counsel

          11. Miscellaneous. No provision of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing and signed by the
Executive and such officer as may be specifically designated by the Board. No waiver by either
party hereto at any time of any breach by the other party hereto of, or of any lack of compliance
with, any condition or provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. This Agreement supersedes any other agreements or representations, oral or
otherwise, express or implied, with respect to the subject matter hereof which have been made by
either party; provided, however, that this Agreement shall supersede any agreement
setting forth the terms and conditions of the Executive’s employment with the Company only in the
event that the Executive’s employment with the Company is terminated on or following a Change in
Control, by the Company other than for Cause or by the Executive for Good Reason. The validity,
interpretation, construction and performance of this Agreement shall be governed by the laws of the
State of South Dakota, without reference to the conflicts of laws provisions thereof. All
references to sections of the Exchange Act or the Code shall be deemed also to refer to any
successor provisions to such sections. Any payments provided for hereunder shall be paid net of
any applicable withholding required under federal, state or local law and any additional
withholding to which the Executive has agreed. The obligations of the Company and the Executive
under this Agreement which by their nature may require either partial or total performance after
the expiration of the Term (including, without limitation, those under Sections 6 and 7 hereof)
shall survive such expiration.

          12. Validity. The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this Agreement, which
shall remain in full force and effect.

          13. Counterparts. This Agreement may be executed in several counterparts, each of
which shall be deemed to be an original but all of which together will constitute one and the same
instrument.

          14. Section 409A Compliance. It is the intention of the Company and the Executive that
this Agreement not result in taxation of the Executive under Section 409A of the Code and the
regulations and guidance promulgated thereunder and that the Agreement shall be construed in
accordance with such intention. Without limiting the generality of the foregoing, the Company and
the Executive agree as follows:

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     (i) Notwithstanding anything to the contrary herein, if the Executive is a “specified
employee” (within the meaning of Section 409A(a)(2)(B)(i) of the Code) with respect to the Company,
any amounts (or benefits) otherwise payable to or in respect of him under this Agreement pursuant
to the Executive’s termination of employment with the Company shall be delayed, to the extent
required so that taxes are not imposed on the Executive pursuant to Section 409A of the Code, until
the earliest date permitted by Section 409A(a)(2) of the Code;

     (ii) For purposes of this Agreement, the Executive’s employment with the Company will not be
treated as terminated unless and until such termination of employment constitutes a “separation
from service” for purposes of Section 409A of the Code;

     (iii) To the extent necessary to comply with the provisions of Section 409A of the Code and
the guidance issued thereunder (A) reimbursements to the Executive as a result of the operation of
Section 6.1(B) or Section 6.4 hereof shall be made not later than the end of the calendar year
following the year in which the reimbursable expense is incurred and shall otherwise be made in a
manner that complies with the requirements of Treasury Regulation Section 1.409A-3(i)(l)(iv) and
(B) if Executive is a “specified employee” (within the meaning of Section 409A(a)(2)(B)(i) of the
Code), any reimbursements to the Executive as a result of the operation of such sections with
respect to a reimbursable event within the first six months following the Date of Termination which
are required to be delayed pursuant to Section 14(i) shall be made as soon as practicable following
the date which is six months and one day following the Date of Termination (subject to clause (A)
of this sentence); and

     (iv) If the provisions of Section 5.4 are applicable to an equity or equity-based award
subject to the provisions of Section 409A of the Code and the immediate payment of the award
contemplated by Section 5.4 would result in taxation under Section 409A, payment of such awards
shall be made upon the earliest date upon which such payment may be made without resulting in
taxation under Section 409A of the Code.

          15. Definitions. For purposes of this Agreement, the following terms shall have the
meanings indicated below:

          (A) “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of
the Exchange Act.

          (B) “Auditor” shall have the meaning set forth in Section 6.2 hereof.

          (C) “Base Amount” shall have the meaning set forth in section 280G(b)(3) of the Code.

          (D) “Board” shall mean the Board of Directors of the Company.

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          (E) “Cause” for termination by the Company of the Executive’s employment shall mean the
Executive’s (i) commission of a felony or other crime of moral turpitude, (ii) breach of any
material term of the severance agreement or the company’s policies and procedures, as in effect
from time to time, (iii) willful and continued failure to perform material duties of his position
or habitual neglect of any such material duties, which failure or neglect continues after the
employee has been given notice and 30 days to cure, or (iv) willful engaging in conduct that is
materially injurious to the company, monetarily or otherwise.

          (F) A “Change in Control” shall be deemed to have occurred if the event set forth in any one
of the following paragraphs shall have occurred:

          (I) Any “person” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act) acquires or becomes a “beneficial owner” (as defined in
Rule 13d-3 or any successor rule under the Securities Exchange Act), directly or
indirectly, of securities of the Company representing 50% or more of the combined
voting power of the Voting Securities, provided, however, that the following shall
not constitute a Change in Control pursuant to this Section 15(F)(I): (A) any
acquisition of Voting Securities or Stock of the Company directly from the Company
other than in connection with a transaction described in Section 15(F)(III); (B)
any acquisition or beneficial ownership by the Company or a Subsidiary; (C) any
acquisition or beneficial ownership by any employee benefit plan (or related trust)
sponsored or maintained by the Company or one or more of its Subsidiaries; (D) any
acquisition or beneficial ownership by any corporation with respect to which,
immediately following such acquisition, more than 50% of the combined voting power
of the Company’s then outstanding Voting Securities and the Stock of the Company is
then beneficially owned, directly or indirectly, by all or substantially all of the
persons who beneficially owned Voting Securities and Stock of the Company
immediately prior to such acquisition in substantially the same proportions as
their ownership of such Voting Securities and Stock, as the case may be,
immediately prior to such acquisition; or

          (II) A majority of the members of the Board shall not be Continuing Directors;
or;

          (III) The consummation of a merger, consolidation or reorganization of the
Company or a statutory exchange of outstanding Voting Securities of the Company,
unless, immediately following such merger, consolidation, reorganization or
exchange, all or substantially all of the persons who were the beneficial owners,
respectively, of Voting Securities and Stock of the Company immediately prior to
such reorganization, merger, consolidation or exchange beneficially own, directly
or indirectly, more than 50% of, respectively, the combined voting

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power of the then outstanding voting securities entitled to vote generally in
the election of directors and the then outstanding shares of common stock, as the
case may be, of the corporation resulting from such reorganization, merger,
consolidation or exchange in substantially the same proportions as their ownership
immediately prior to such reorganization, merger, consolidation or exchange, of the
Voting Securities and Stock of the Company, as the case may be; or

          (IV) Approval by the shareholders of the Company of (x) a complete liquidation
or dissolution of the Company or (y) the consummation of the sale or other
disposition of all or substantially all of the assets of the Company (in one or a
series of transactions), other than to a corporation with respect to which,
immediately following such sale or other disposition, more than 50% of,
respectively, the combined voting power of the then outstanding voting securities
of such corporation entitled to vote generally in the election of directors and the
then outstanding shares of common stock of such corporation is then beneficially
owned, directly or indirectly, by all or substantially all of the persons who were
the beneficial owners, respectively, of the Voting Securities and Stock of the
Company immediately prior to such sale or other disposition in substantially the
same proportions as their beneficial ownership immediately prior to such sale or
other disposition, of the Voting Securities and Stock of the Company, as the case
may be.

          (G) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

          (H) “Company” shall mean US BioEnergy Corporation and, except in determining whether or not
any Change in Control of the Company has occurred, shall include any successor to its business
and/or assets which assumes and agrees to perform this Agreement by operation of law, or otherwise.

          (I) “Continuing Directors” means: (i) individuals who, on the date of this Agreement, are
directors of the Company; (ii) individuals elected as directors of the Company subsequent to the
date hereof for whose election proxies shall have been solicited by the Board; and (iii) any
individual elected or appointed by the Board to fill vacancies on the Board caused by death or
resignation (but not by removal) or to fill newly-created directorships; provided, however, that a
Continuing Director shall not include a director whose initial assumption of office is in
connection with an actual or threatened election contest, including, but not limited to, a consent
solicitation, relating to the election of directors of the Company.

          (J) “Date of Termination” shall have the meaning set forth in Section 7.2 hereof.

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          (K) “Disability” shall be deemed the reason for the termination by the Company of the
Executive’s employment, if, as a result of the Executive’s incapacity due to physical or mental
illness, the Executive shall have been absent from the full-time performance of the Executive’s
duties with the Company for a period of six (6) consecutive months, the Company shall have given
the Executive a Notice of Termination for Disability, and, within thirty (30) days after such
Notice of Termination is given, the Executive shall not have returned to the full-time performance
of the Executive’s duties.

          (L) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time.

          (M) “Executive” shall mean the individual named in the first paragraph of this Agreement.

          (N) “Good Reason” for termination by the Executive of the Executive’s employment shall mean
the occurrence (without the Executive’s express written consent) after any Change in Control, or
prior to a Change in Control under the circumstances described in clauses (ii) and (iii) of the
second sentence of Section 6.1 hereof (treating all references in paragraphs (I) through (VI) below
to a “Change in Control” as references to a “Potential Change in Control”), of any one of the
following acts by the Company, or failures by the Company to act, unless such act or failure to act
is corrected prior to the Date of Termination specified in the Notice of Termination given in
respect thereof:

          (I) a material adverse alteration in the nature or status of the Executive’s
duties, responsibilities or stature from those in effect immediately prior to the
Change in Control;

          (II) a material reduction in the Executive’s salary or target annual bonus
opportunity from those in effect immediately prior to the Change in Control;

          (III) failure by the Company to pay the Executive current compensation within
a reasonable period after that compensation is due;

          (IV) failure by the Company to provide the Executive with benefits that are
substantially similar in the aggregate to those provided to the Executive
immediately prior to the Change in Control, except for reductions in benefits which
apply to all similarly situated individuals;

          (V) a relocation of the Executive’s principal place of employment to a new
work location 50 miles or more from the Executive’s place of employment immediately
prior to the Change in Control, excluding a relocation to the Minneapolis/St. Paul,
Minnesota greater metropolitan area; or

12

 

          (VI) the failure by the Company to require a successor to assume this
Agreement.

          The Executive’s continued employment shall not constitute consent to, or a waiver of rights
with respect to, any act or failure to act constituting Good Reason hereunder.

          (O) “Notice of Termination” shall have the meaning set forth in Section 7.1 hereof.

          (P) “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified
and used in Sections 13(d) and 14(d) thereof

          (Q) “Potential Change in Control” shall be deemed to have occurred if the event set forth in
any one of the following paragraphs shall have occurred:

          (I) the Company enters into an agreement, the consummation of which would
result in the occurrence of a Change in Control;

          (II) the Company or any Person publicly announces an intention to take or to
consider taking actions which, if consummated, would constitute a Change in
Control;

          (III) any Person becomes the Beneficial Owner, directly or indirectly, of
securities of the Company representing [15]% or more of either the then outstanding
            shares of common stock of the Company or the combined voting power of the Company’s
then outstanding securities (not including in the securities beneficially owned by
such Person any securities acquired directly from the Company or its affiliates);
or

          (IV) the Board adopts a resolution to the effect that, for purposes of this
Agreement, a Potential Change in Control has occurred.

          (R) “Retirement” shall be deemed the reason for the termination by the Executive of the
Executive’s employment if such employment is terminated in accordance with the Company’s retirement
policy, including early retirement, generally applicable to its salaried employees.

          (S) “Severance Payments” shall have the meaning set forth in Section 6.1 hereof.

          (T) “Stock” means the common stock, $0.01 par value per share, of the Company.

13

 

          (U) “Subsidiary” means any corporation (other than the Company), foreign or domestic, in an
unbroken chain of corporations beginning with the Company if each of the corporations (other than
the last corporation in the unbroken chain) owns stock possessing 50% or more of the total combined
voting power of all classes of stock in one of the other corporations in the chain.

          (V) “Tax Counsel” shall have the meaning set forth in Section 6.2 hereof.

          (W) “Term” shall mean the period of time described in Section 2 hereof (including any
extension, continuation or termination described therein).

          (X) “Total Payments” shall mean those payments so described in Section 6.2 hereof.

          (Y) “Voting Securities” means the Company’s then outstanding securities entitled to vote
generally in the election of directors.

14

 

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

	 	 	 	 	 
	 	US BIOENERGY CORPORATION

 	 
	 	By:  	 	 
	 	 	    Name:  	 	 
	 	 	    Title: 	 	 
	 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	EXECUTIVE
	 	 
	 

	 	 	 	 
	 	 
	 

	 	Address:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

15exv10w2

 

AIRCRAFT LEASE AGREEMENT

Effective September 20, 2007

Between

CapitalineFlight Services, LLC (“Lessor”)

And

US BioEnergy Corporation (“Lessee”)

Regarding

2007 Cessna T206H Turbo Stationair, Nav III

Manufacturer’s Serial No: T20608758

FAA Registration Mark: N2451A

1

 

THIS AIRCRAFT LEASE AGREEMENT (the “Agreement”) is entered into this 2nd day of October,
2007, between, Capitaline Flight Services, LLC a South Dakota limited liability company, with its
principal office in Brookings, South Dakota (“Lessor”); and US BioEnergy Corporation, a South
Dakota corporation, with its principal office in Inver Grove Heights, Minnesota (“Lessee”).

     WHEREAS, Lessor wishes to lease on an hourly basis its Cessna T206H Turbo Stationair, Nav III,
Manufacturer’s Serial Number T20608758, Federal Aviation Administration (“FAA”) Registration Mark
N2451A, and the appliances, communications equipment, accessories, instruments and other items of
equipment installed thereon (the “Aircraft’) to Lessee, and Lessee wishes to lease the Aircraft
from Lessor;

     NOW, THEREFORE, in consideration of and subject to the terms and conditions herein, Lessor and
Lessee agree as follows:

1. LEASE; TERM

     a. Effective Date. This Agreement is effective as of September 20, 2007.

     b. Lease Term. Lessee hereby agrees to lease the Aircraft on a non-exclusive hourly
basis from Lessor, and Lessor hereby agrees lo lease the Aircraft to Lessee, pursuant to the terns
and conditions in this Agreement. Lessor reserves the right of use of the Aircraft by Lessor or
other lessees of the Aircraft. This Agreement shall commence on the first date written above and
continue in full force until terminated by either party upon 30 day’s prior written notice or
earlier pursuant to Section 7, below.

     c. Availability and Delivery. The Aircraft shall be available to Lessee, and shall be
scheduled for use, on an as-needed and first-come, first-serve basis with respect to use by Lessor,
Lessee and other lessees of the Aircraft. In order to schedule the use of the Aircraft, Lessee
shall contact Lessor and specify the dates and times use of the Aircraft is requested. At such
time, Lessor shall indicate whether or not the Aircraft is available. Should the Aircraft not be
available at the requested time, Lessor may indicate alternative dates and times the Aircraft is
available to Lessee. Lessee shall not have the right to use the Aircraft for a period of time that
would exceed 7 consecutive days without the prior consent of Lessor. The home base of operation of
the Aircraft shall be Brookings, SD (“Base of Operations”).

2. USE OF AIRCRAFT

     a. Permitted Use. Notwithstanding anything herein to the contrary, during the times
the Aircraft is leased to Lessee:

     i. Operations. Lessee’s operations shall be conducted under Part 91 of the
Federal Aviation Regulations. In no event shall any revenue passengers or cargo be
permitted on board the Aircraft during any such flights.

     ii. Dry Lease. The parties intend that this Agreement shall constitute a “dry”
operating lease. During each usage by Lessee, Lessee shall have possession, command, and
operational control over the Aircraft, aircrew and maintenance; provided that during each
reserved use by Lessor or other lessee of the Aircraft, Lessor or such other lessee, as
applicable, shall have possession command and operational control of the Aircraft.
“Operational control” shall mean, consistent with 14 C.F.R. § 1.1 and FAA guidelines, the
exercise of authority over initiating, conducting, or terminating a flight. Lessee shall

2

 

exercise complete control over the phases of operation of the Aircraft requiring
aviation expertise for all flights under this Agreement.

     iii. Flight Crew. Lessee shall be solely responsible for supplying a flight
crew for Lessee’s operations of the Aircraft, as Lessee’s expense. Lessee shall ensure that
all flight crews (1) are FAA certified and duly qualified to operate the Aircraft in
accordance with all applicable laws and regulations; and (2) meet the applicable
requirements of, and are qualified and approved under, Lessor’s insurance policies in
Section 8 of this Agreement.

     iv. Pilot in Command. Lessor and Lessee acknowledge and agree that, contrary
provisions of Section 2 notwithstanding, (i) the pilot in command (“PIC”) of any flight, in
her or his sole discretion, my terminate the flight, refuse to commence the flight, or take
any other flight-related action which in her or his sole judgment is necessitated by
considerations of safety, (ii) the PIC of any flight shall have final and complete
authority to postpone or cancel the flight for any reason or condition which in his or her
judgment would compromise the safety of the flight, and (iii) no such action of the PIC
shall create or support any liability for loss, injury, damage, or delay to Lessor.

     v. Security Precautions. Lessee shall at all times use reasonable care and
diligence to maintain the security and safety of the Aircraft and to abide by applicable
security regulations and recommendations of the FAA, Department of Transportation, or local
airport authorities. Lessee shall secure or hangar the Aircraft at any time it is to be
unattended by Lessee or Lessee’s crew.

     vi. Lessee and Lessor (or their authorized agents) shall execute certificates of
acceptance of delivery and acceptance of redelivery of the Aircraft prior to each use of
the Aircraft by Lessee and following redelivery of the Aircraft to Lessor after such use by
Lessee. Following each use by Lessee hereunder, the Aircraft shall be returned to the Base
of Operation by Lessee.

     b. Compliance with Laws. Lessee shall not use or cause or permit the Aircraft to be
used in any way inconsistent with state, federal or international law or the law of any place to
which the Aircraft may go, or contrary to any manufacturer’s operation manuals and instructions, or
in violation of any airworthiness certificate, license or registration. Lessee shall not use or
cause or permit the Aircraft to be used in any way that would endanger the registration or
airworthiness of the Aircraft.

     c. Compliance with Insurance. Lessee shall not operate the Aircraft or permit or
suffer the Aircraft to be operated in conflict with the terms of the insurance coverage pursuant to
Section 8 of this Agreement. Lessee shall abide by all geographical limitations of such insurance.

3. RENT, TAXES AND PAYMENTS

     a. Rent. As rent for the lease of the Aircraft, the Lessee shall pay to the Lessor
the amounts set forth in Schedule 1 (“Rent”). Lessee will pay Rent to Lessor no later than the
15th day of the calendar month for the rental activity in the preceding month.

     b. Taxes. Lessee shall be responsible for any taxes (other than those based on
Lessor’s income), including but not limited to sales, use, embarkation or passenger departure
taxes, customer duties, charges or levies of the United States, any state or local government or
any

3

 

foreign government related to Lessee’s use, possession, or lease of the Aircraft (collectively
“taxes”). Except as otherwise specified in Schedule 1 or any applicable invoice, neither the Rent
nor any other payments to be made by Lessee under this Agreement includes the amount of any such
taxes which may be assessed or levied by any taxing jurisdictions as a result of the lease of the
Aircraft to Lessee, or the use of the Aircraft by Lessee. Lessee shall be responsible for, shall
indemnify and hold harmless Lessor against, and shall remit to Lessor all such Taxes together with
each payment of Rent at the time required by applicable taw.

     c. Operating Costs. Lessee shall be responsible for all expenses related to Lessee’s
use of the Aircraft, including, without limitation, all necessary ground and flight operations
support such as charts, forms, aircraft cleaning (interior and exterior), lavatory service,
deicing, catering, and aircraft stocks (i.e. newspapers, beverages, snacks), all landing fees and
other Airport charges assessed or imposed away from the Base of Operations, all fuel, oil, and
lubricants, and all crew hiring costs and crew expenses. Lessee shall pay all such expenses
directly unless otherwise agreed to in advance by Lessor. To the extent Lessor pays for such
expenses, Lessor shall invoice Lessee for the expenses in conjunction with the invoices for the
Rent and Lessee will reimburse Lessor in accordance with Section 3(a).

     d. Payments. All payments or reimbursements due by virtue of this Agreement shall be
made to the Lessor at such address or bank accounts as may be specified to Lessee by Lessor by
written notice from time to time.

4. TITLE AND SECURITY

     a. Title; No Liens. Title to the Aircraft and all equipment subject to this Agreement
is retained by Lessor at all times. Lessee may not pledge or encumber the Aircraft in any manner
whatsoever, nor permit any liens, other than liens arising by operation of law or liens solely
attributable to Lessor, to attach thereto, and Lessee shall promptly cause to be removed any such
lien which may be placed on the Aircraft as a result of Lessee’s action or inaction hereunder.
Except as set forth in the immediately subsequent paragraph (b), Lessor shall not permit any lien
or encumbrance of any kind whatsoever to be created or exist upon the Aircraft if such lien or
eucumbrance may or does interfere with Lessee’s quiet use and enjoyment of the Aircraft hereunder.

     b. Security Interests. In the event that this Agreement or the Aircraft are subject to
a security agreement between Lessor and its lender, all rights of Lessee under this Agreement will
be subordinate to the rights of under such a security agreement. To the extent, if any, that this
Agreement constitutes chattel paper under the UCC in connection with such a security agreement, the
original of this Agreement shall be delivered to the lender upon demand as sectary for the
obligation of Lessor.

5. REGISTRATION

Lessee undertakes that at all times under this Agreement it shall not do or allow to be done
anything whereby the registration of the Aircraft with the FAA may be forfeited or imperiled.

6. MAINTENANCE; COSTS OF OPERATION; NO ALTERATIONS

     a. Maintenance. Lessor shall pay for costs of any repairs or maintenance of the
Aircraft required during the term associated with Lessee’s use, movement and operation of the
Aircraft, including, without limitation, all service, repairs, tests, and maintenance necessary to

4

 

maintain the Aircraft in accordance with FAA regulations, as amended from time to time;
provided, however, Lessee shall be responsible and pay for any maintenance and repairs to the
Aircraft which are the result of misuse of the Aircraft by Lessee or otherwise occasioned by the
negligence or willful misconduct of Lessee, its employees, and guests. Lessor shall have no
expense or liability for repair or maintenance delays and shall not be liable to Lessee for any
damage from loss of profit or loss of use of Aircraft, either before or after delivery of Aircraft
to Lessee. Lessee shall clean the interior of the Aircraft after each use by Lessee. Lessee shall
promptly notify Lessor of any damage or required maintenance or repair of the Aircraft or the
performance of any such repair and maintenance.

     b. Aircraft Documents. Lessor shall maintain and preserve, or cause to be maintained
and preserved, in the English language, all Aircraft Documents required by the FAA, the Aircraft
manufacturer and the manufacturers of all component parts thereof, and in a current, accurate, and
complete manner and shall be available at all reasonable times for examination and inspection by
Lessee. For purposes of this Agreement, “Aircraft Documents” means all records and documents (i)
required by the applicable law or any manufacturer’s warranty or any applicable maintenance service
plan to be maintained with respect to the Aircraft (ii) customarily maintained with respect to
aircraft of the same category and class as the Aircraft, or (iii) otherwise associated with the
Aircraft, including without limitation, flight records, maintenance and inspection records,
modification and repair records, overhaul records, historical records, manuals, logbooks,
authorizations, and drawings. Notwithstanding the foregoing, at any times that Aircraft is in the
possession, command and control of Lessee, Lessee shall complete and maintain all Aircraft
Documents as required by applicable laws and regulations in connection with such lease and use of
the Aircraft by Lessee. All Aircraft Documents shall remain the sole property of Lessor.

     c. No Alterations. Lessee shall not alter, modify, or make additions or improvements
to the Aircraft without the prior written permission of Lessor, and any such alterations,
modifications, additions or improvements shall immediately become the property of Lessor.

     d. Maior Maintenance Events. Notwithstanding anything to the contrary in this Section
6, Lessee shall be entitled to reimbursement from Lessor for all amounts paid directly to third
parties for, or may request that Lessor directly pay, any invoice received in connection with, any
unusual, non-routine, or extraordinary maintenance or repairs, except when the result of misuse or
occasioned by the negligence or willful misconduct of Lessee, its employees or guests, as provided
in paragraph 6.a. above, including, without limitation, in each case, costs of engine overhauls and
costs associated with routine schedule maintenance and inspections. Lessee shall not contract for
or incur any such expense without the prior approval of Lessor.

7. TERMINATION

     a. By Lessor. Lessor may immediately terminate this Agreement upon the occurrence of
any one of the following:

     i. In the event Lessee fails to pay Rent or other sums due under this Agreement, and
such failure is not corrected within 15 days after receipt by Lessee of written notice by
Lessor, or

     ii. In the event Lessee operates the Aircraft in a manner not permitted by Lessor’s
insurance or FAA rules or regulations, upon written notice to Lessee; or

5

 

     iii. In the event Lessee fails to observe or fulfill any term, condition and/or
provision of this Agreement other than those specified in Sections 7(a)(i) or 7(a)(ii) and
such failure is not corrected within 30 days after receipt by Lessee of written notice from
Lessor.

     b. By Lessee. Lessee may immediately terminate this Agreement in the event Lessor
fails to observe or fulfill any term, condition and/or provision of this Agreement and such failure
is not corrected within 30 days after written notice by Lessee.

     c. Rights Upon Termination. Upon the termination of this Agreement, rights of the
Lessee as to the Aircraft pursuant to this Agreement shall immediately cease and terminate. If the
Lessor terminates this Agreement as provided in this Section 7, Lessee shall notwithstanding such
termination, be liable to the Lessor for any arrears of Rent or other amounts due under this
Agreement. The provisions of Sections 4, 5, 6 and 8 shall survive the termination of this
Agreement.

8. INSURANCE AND INDEMNIFICATION

     a. Insurance. Lessor shall provide insurance coverage related to Lessee’s possession,
use, maintenance and operations of the Aircraift, under policies in form and substance and with
insurers reasonably satisfactory to Lessee, as follows:

     i. Liability. The policies will insure liability for personal injuries, death
or property damages, arising or occasioned in any manner by the acts or omissions of
Lessor, Lessee, or others with respect to the custody, operation or use of or with respect
to said Aircraft in an amount not less than $1,000,000 per occurrence relative to
the personal injuries and/or death, and relative to the property damage of others, all set
within a single limit of coverage. Lessee shall be an additional named insured on said
policies.

     ii. Hull Insurance. The policies will insure against the loss or damage from
any cause or causes to the Aircraft for not less than $500,000 unless a different value is
agreed upon in writing between Lessee and Lessor. The policies shall be for the benefit of
Lessor with Lessor named as the sole loss payee. Any policies insuring against the loss or
damage to the Aircraft will provide a waiver of subrogation in favor of Lessee. Lessee
shall be responsible and shall reimburse Lessor for the amount of the deductible, if any,
if the damage to said Aircraft is incurred during Lessee’s use hereunder. Such deductible
will not exceed $5,000 in motion or $2,000 not in motion unless agreed upon in writing
between Lessee and Lessor. Such policies need not include coverage against war risks.

     iii. Conditions. The policies shall also specifically grant approval for all
Lessee’s pilots that meet the requirements of the policies, including, without limitation,
pilots approved by the insurer and pilots that meet the requirements of any “open pilot
warranty” under the policy. Such insurance under this Section 8 shall be primary, without
any right of contribution from Lessee or any insurance maintained by Lessee. Lessor’s
insurance shall provide that any cancellation or substantive change in coverage shall not
be effective as to Lessee without written notice to Lessee from Lessor’s insurer at least
10 days for cancellation due to nonpayment, 7 days for cancellation due to war risks, or
otherwise 30 days for any other change or cancellation.

     iv. Certificates of Insurance. Lessor shall deliver to Lessee a certificate
of insurance upon executive of this Agreement, as well as additional certificates from
time-to-

6

 

time as requested by Lessee, but not less often than annually. Such certificate shall
include evidence of premiums paid and all policy amendments or endorsements necessary to
satisfy the requirements of this Section 8.

     b. Indemnification by Lessee. Lessee agrees to indemnify, defend, and hold Lessor and
all other users of the Aircraft harmless from (i) any and all fines, citations, forfeitures, or
penalties of any kind imposed by the FAA or any other governmental entity, and (ii) any loss,
damage, cost, expense, claim, or liability whatsoever, including attorney fees and related costs,
arising out of operation, use, or possession of the Aircraft by Lessee during the term of this
Agreement, except to the extent arising from the negligence or willful misconduct by Lessor or
other users, and except to the extent of insurance proceeds received by Lessor pursuant to the
insurance policies in Section 8a, to which the waiver of subrogation may apply.

     c. Indemnification by Lessor. Lessor agrees to indemnify, defend, and hold Lessee
harmless from any and all fines, citations, forfeitures, or penalties of any kind imposed by the
FAA or any other governmental entity arising out of the operation, use, or possession of the
Aircraft by Lessor or other users, except to the extent arising out of the negligence or willful
misconduct of Lessee.

     d. Additional Coverage. Lessee shall be solely responsible for obtaining any
insurance coverages desired on behalf of Lessee in excess of or in addition to the insurance
maintained by and on behalf of Lessor as provided herein.

9. REPRESENTATIONS AND WARRANTIES / DISCLAIMER

     a. By Lessor. Lessor represents and warrants to Lessee that Lessor has full authority
to enter into and fulfill this Agreement and has taken all steps and has done all acts required by
applicable law to permit Lessor to enter into and fulfill this Agreement, and upon execution, this
Agreement shall become the legal, valid and binding obligation of Lessor, enforceable in accordance
with its terms.

     b. By Lessee. Lessee represents and warrants to Lessor that:

     i. Lessee is not and shall not be bound by any other agreements, restrictions, or
obligations which do or would in any way interfere with or be inconsistent with or be
violated by this Agreement, nor shall Lessee assume any such obligations or restrictions,
which do or would in any way interfere with or be inconsistent with or be violated by this
Agreement.

     ii. Lessee has full authority to enter into and fulfill this Agreement and has taken
all steps and has done all acts required by applicable law to permit Lessee to enter into
and fulfill this Agreement and that upon execution, this Agreement shall become the legal,
valid and binding obligation of Lessee, enforceable in accordance with its terms.

     c. Disclaimer; Limitation of Liability. EXCEPT AS EXPRESSLY STATED TO THE CONTRARY
HEREIN, THE AIRCRAFT IS BEING LEASED BY LESSOR TO THE LESSEE HEREUNDER ON A COMPLETELY “AS IS”,
“WHERE IS”, BASIS. EACH ACCEPTANCE AND USE BY LESSEE OF THE AIRCRAFT UNDER THIS LEASE SHALL
CONSTITUTE AN ACKNOWLEDGEMENT BY LESSEE OF ITS INSPECTION OF THE AIRCRAFT AND THAT THE AIRCRAFT IS
IN ACCEPTABLE CONDITION FOR LESSEE’S USE AND OPERATION UNDER THIS LEASE. THE WARRANTIES AND

7

 

REPRESENTATIONS SET FORTH IN THIS AGREEMENT ARE EXCLUSIVE AND IN LIEU OF, AND OWNER DISCLAIMS
AND OPERATOR WAIVES, ALL OTHER REPRESENTATIONS OR WARRANTIES OF EVERY KIND WHATSOEVER, WHETHER
EXPRESS OR IMPLIED OR ARISING FROM A COURSE OF PERFORMANCE OR DEALING OR USAGE OF TRADE, INCLUDING,
WITHOUT LIMITATION, REPRESENTATIONS OF AND WARRANTIES, WITH RESPECT TO THE AIRCRAFT, OF
AIRWORTHINESS, VALUE, CONDITION, DESIGN, MERCHANTABILITY, COMPLIANCE WITH SPECIFICATIONS,
CONSTRUCTION AND CONDITION, OPERATION, FITNESS FOR A PARTICULAR USE, ABSENCE OF LATENT AND OTHER
DEFECTS WHETHER OR NOT DISCOVERABLE, ABSENCE OF ANY INFRINGEMENT OF ANY PATENT, TRADEMARK OR
COPYRIGHT, AND QUALITY OF MATERIALS OR WORKMANSHIP. IN NO EVENT SHALL EITHER PARTY TO THIS
AGREEMENT BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND
WHATSOEVER, INCLUDING, WITHOUT LIMITATION, DAMAGES ARISING FROM LOSS OF USE, LOSS OF REVENUE OR
PROFIT.

10. NOTICES

     All notices or other communications required under this Agreement shall be in writing and
shall be effective when delivered personally or deposited in the mail, postage prepaid, and
addressed to the parties at their respective addresses first written above, unless by such notice a
different party or address shall have been designated in writing.

11. MISCELLANEOUS

     a. Entire Agreement; Amendments. This Agreement constitutes the entire agreement of
the parties as of the date hereof and supersedes all prior or independent, oral or written
agreements, understandings, statements, representations, commitments, promises and warranties made
with respect to the subject matter of this Agreement. This Agreement may not be amended except in a
writing signed by all parties.

     b. Severability. Any provision of this Agreement which is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof, and any such
prohibitions or unenforceability in any jurisdiction. To the extent permitted by applicable law,
each of Lessor and Lessee hereby waives any provision of applicable law which renders any provision
hereof prohibited or unenforceable in any respect.

     c. No Assignment. Neither party may assign its fights or obligations under this
Agreement without the prior written permission of the other; provided however Lessor may assign all
of Lessor’s rights and obligations under this Agreement in connection with the sale or other
transfer of the ownership of the Aircraft, in which case, Lessor shall be relieved of an from any
liability with respect to the obligations and covenants of Lessor contained in this Agreement
arising out of any act or occurrence occurring after the date of such sale or transfer, so long as
transferee shall assume and agree to carry out the covenants and obligations of Lessor under this
Agreement.

     d. Further Assurances. The parties hereto agree to cooperate with each other in
effectuating this Agreement, and, at the reasonable request of the other party, to execute and
deliver such further documents or instruments and take such further actions as shall reasonably be
requested in order to carry out the proposes of this Agreement.

8

 

     e. No Waiver. Neither party shall be deemed to have waived any breach by the other
party of any provision of this Agreement unless it expressly does so in writing. If either patty
shall expressly waive any right hereunder, such waiver shall not be construed as a continuing
waiver of other rights under the same or other provisions of this Agreement.

     f. Force Majeure. Either party shall be relieved of its obligations hereunder if the
performance hereof is delayed or prevented or interrupted by any cause beyond its reasonable
control, including but not limited to, acts of God, public enemies, war, civil disorder, fire,
flood, explosion, labor disputes or strikes, or any acts or orders of any governmental authority.

     g. Attorneys Fees. In the event any action or proceeding is initiated to enforce any
term or provision of this Agreement, then the prevailing party in such action or proceeding shall
be entitled to recover, in addition to all other rights and remedies available in law and in
equity, reasonable attorney fees and expenses incurred in connection therewith.

12. GOVERNING LAW

This Agreement shall be governed by and interpreted in accordance with the laws of the State of
South Dakota (excluding its choice of law rules) and the United States of America.

13. TRUTH IN LEASING

TRUTH IN LEASING STATEMENT UNDER SECTION 91.23 OF THE FEDERAL AVIATION REGULATIONS.

a. LESSEE WILL CONTINUE AT ALL TIMES UNDER THIS LEASE TO MAINTAIN AND
INSPECT THE AIRCRAFT UNDER FAR PART 91 FOR ALL OPERATIONS TO BE CONDUCTED UNDER THIS LEASE.

b.  LESSEE AGREES, CERTIFIES AND KNOWINGLY ACKNOWLEDGES THAT WHEN THE
AIRCRAFT IS OPERATED UNDER THIS AGREEMENT, LESSEE SHALL BE KNOWN AS, CONSIDERED, AND SHALL
IN FACT BE THE OPERATOR OF THAT AIRCRAFT. LESSEE IS RESPONSIBLE FOR OPERATIONAL CONTROL OF
THE AIRCRAFT UNDER THIS LEASE.

c. THE PARTIES UNDERSTAND THAT AN EXPLANATION OF FACTORS BEARING ON
OPERATIONAL CONTROL AND PERTINENT FEDERAL AVIATION REGULATIONS CAN BE OBTAINED FROM THE
NEAREST FAA FLIGHT STANDARDS DISTRICT OFFICE.

LESSEE HEREBY ACKNOLWEDGES THIS TRUTH IN LEASING STATEMENT AND THAT LESSEE UNDERSTANDS THE
RESPONSIBILITIES FOR COMPLIANCE WITH APPLICABLE FEDERAL REGULATIONS.

	 	 	 	 	 
	
Signature of Lessee: 
	 	/s/ 
Gregory S. Schlicht	 	 
	 

	 	

	 	 
	 
	 	 	 	 
	Printed
Name of Lessee:
	 	 Gregory S. Schlicht	 	 
	 

	 	 

	 	 

9

 

IN WITNESS WHEREOF, the parties have entered into this Aircraft Lease Agreement on the date first
written above.

	 	 	 	 	 
	LESSOR:

	 	 	 	LESSEE:
	 
	 	 	 	 
	Capitaline Flight Services, LLC

	 	 	 	US BioEnergy Corporation
	 
	 	 	 	 
	          /s/ Steven P. Myers

	 	 	 	           /s/ Gregory S. Schlicht
	 

	 	 	 	 
	By: Steven P. Myers

	 	 	 	By: Gregory S. Schlicht
	Is: President

	 	 	 	Its: Vice President, General
Counsel and Corporate Secretary

10

 

Schedule 1

To Aircraft Lease Agreement dated October 2, 2007

Lease Payment

Lessee will pay monthly installments that equal:

	 	 	 	 	 
	Base Monthly Fee
	 	$	5,000.00	 
	Hourly Charge for Use of Aircraft:
	 	$	125.00	 

Payments will be made on or before the 15th of each month.

11

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