Document:

Exhibit 10.21

                      CONSULTING SERVICES AGREEMENT

THIS CONSULTING SERVICES AGREEMENT entered into this 10th day of January, 2005
(hereinafter "Effective Date") by and between STONE STREET ADVISORS, LLC, a
Nevada Limited Liability Company ("Stone Street") with its principal office at
101 Hudson Street - Suite 3700, Jersey City, New Jersey 07302, and McKENZIE BAY
INTERNATIONAL, LTD., a Delaware corporation, with its principal office located
at 975 Spaulding Avenue, Grand Rapids, Michigan 49546 (the "Company").

The Company desires to engage Stone Street to perform as an independent
contractor to provide certain consulting and advisory services to the Company as
designated below, and Stone Street desires to accept such engagement by the
Company, pursuant to the terms and conditions of this Consulting Agreement.

In consideration of the representations, warranties, mutual covenants and
agreements set forth herein, the parties agree as follows:

1.	SCOPE OF SERVICES.

a.	Duties and Performance.  From time to time during the term of this
Agreement, Stone Street shall provide such advisory services to the Company with
regard various types of financial arrangements, including, equity line of credit
financing, debt financing, other forms of direct investment in the Company and
general corporate matters (the "Services").

b.	Independent Contractor Status.  The parties agree that Stone Street is
an independent contractor performing Services hereunder and not an employee of
the Company.  Stone Street may use contractors or other third parties of Stone
Street's choice to assist Stone Street in rendering such Services.  Unless
otherwise agreed by Stone Street in writing, the Company shall be responsible
for payment of all compensation or expenses payable or reimbursable to Stone
Street and/or such third parties.  Nothing herein or in the performance hereof
shall imply either a joint venture or principal and agent relationship between
the parties, nor shall either such relationship be deemed to have arisen under
this Agreement.

2.	COMPENSATION AND EXPENSES.

a.	Fee.  In respect to Stone Street performing any Services hereunder the
Company shall pay to Stone Street, a fee as earned by Stone Street in an amount
as agreed upon, at such time, by the Company and Stone Street (the "Fee").

3.	INDEMNIFICATION.  Exhibit A attached hereto and made a part hereof
sets forth the understanding of the parties with respect to the indemnification
and exculpation of Stone Street.  The provisions of Exhibit A shall survive, and
remain in full force and effect after, the termination of this Agreement until
fully performed.

4.	TERM AND TERMINATION.	The initial term of this Agreement shall be for
a period commencing on the Effective Date hereof and ending on the one
anniversary of the date of this Agreement; thereafter, unless previously
terminated, and neither party has given notice of termination, this Agreement
shall be automatically renewed for successive year periods of one year each.
Either party may terminate this Agreement without cause or without the necessity
of specifying cause by giving written notice of termination to the other party.
This Agreement shall terminate upon its expiration or upon receipt of this
notice of termination by the non-terminating party.  Notwithstanding the
termination of this Agreement, Sections 3 and 5 shall continue in force and
effect and shall survive such termination.

5.	MISCELLANEOUS.

a.	Notice.  All notices and other communications hereunder shall be in
writing and delivered by Federal Express or any other generally recognized
overnight delivery service, or by hand, to the appropriate party at the address
stated in the initial paragraph of this Agreement for such party or to such
other address as a party indicates in a notice to the other party delivered in
accordance with this Section.

b.	Severability.  Should one or more provisions of this Agreement be held
unenforceable, for whatever cause, the validity of the remainder of this
Agreement shall remain unaffected.  The parties shall, in such event, attempt in
good faith to agree on new provisions which best correspond to the object of
this Agreement.

c.	Entire Agreement.  The parties have entered into the present
Agreement after negotiations and discussions, an examination of its text, and an
opportunity to consult counsel.  This Agreement constitutes the entire
understanding between the parties regarding to specific subject matter covered
herein.  This Agreement supersedes any and all prior written or oral contracts
or understandings between the parties hereto and neither party shall be bound by
any statements or representations made by either party not embodied in this
Agreement.  No provisions herein contained shall be waived, modified or altered,
except by an instrument in writing, duly executed by the parties hereto.

d.	Governing Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of New Jersey, without giving effect to
any choice of law of conflict of law provision or rule whether such provision or
rule is that of New Jersey or any other jurisdiction.  Each party irrevocably
consents to the exclusive personal jurisdiction of the Superior Courts of Hudson
County New Jersey sitting in Jersey City New Jersey or the United States
District Court for the District of New Jersey, sitting in Newark New Jersey, in
connection with any action, suit or proceeding relating to or arising out of
this Agreement or any of the transactions or relationships contemplated hereby.
Each party, to the maximum extent permitted by law, hereby waives any objection
that such party may now have or hereafter have to the jurisdiction of such
courts on the basis of inconvenient forum or otherwise.  Each party waives trial
by jury in any proceeding that may arise with respect to this Agreement.

e.	No Implied Waivers.  No delay or omission by either party to exercise
its rights and remedies in connection with the breach or default of the other
shall operate as or be construed as a waiver of such rights or remedies as to
any subsequent breach.

f.	Counterparts.  This Agreement may be executed in any number of
counterparts, but all counterparts hereof shall together constitute but one
agreement.  In proving this Agreement, it shall not be necessary to produce or
account for more than one counterpart signed by both of the parties.

g.	Binding Nature.  This Agreement shall be binding upon and shall inure to
the benefit of the successors and assigns of the respective parties to this
Agreement.

h.	Assignment.  Except as set forth in this Agreement, neither party will
have the right to assign, pledge or transfer all or any part of this Agreement
without the prior written consent of the other, and any such purported
assignment, pledge or transfer by a party without such prior written consent
shall be void.

i.	Capacity.  Stone Street represents to the Company and the Company
represents to Stone Street, that each person signing this Agreement on their
behalf has the full right and authority to do so, and to perform its obligations
under this Agreement.

j.	Captions.  The captions appearing in this Agreement are inserted only as
a matter of convenience and for reference and in no way define, limit or
describe the scope and intent of this Agreement or any of the provisions hereof.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the Effective Date.

STONE STREET ADVISORS, LLC	        McKENZIE BAY INTERNATIONAL, LTD.

By: /s/  Matthew Beckman                By:/s/ Gregory Bakeman
---------------------------             --------------------------
Name:    Matthew Beckman	        Name:  Gregory Bakeman
Title:   President                      Title:	         CFOEXHIBIT 10.9

 

HORMEL FOODS
CORPORATION

NONEMPLOYEE DIRECTOR DEFERRED STOCK PLAN

(Plan Adopted October 4, 1999; Amended and Restated November 24, 2003)

 

1.             Purpose
of the Plan.  The purpose of the
Hormel Foods Corporation Nonemployee Director Deferred Stock Plan (the “Plan”)
is to provide an opportunity for nonemployee members of the Board of Directors
(the “Board”) of Hormel Foods Corporation (the “Company”) to increase their
ownership of the Common Stock, par value $.0586 per share, of the Company (“Common
Stock”), and thereby align their interest in the long-term success of the
Company with that of the other stockholders of the Company.  This will be accomplished by allowing each
participating director to elect voluntarily to defer all or a portion of his or
her retainer and meeting fees into the right to receive shares of Common Stock
at a later date pursuant to elections made by such director under this Plan.

 

2.             Eligibility.  Individuals who are members of the Board of
the Company (“Directors”) and who are not also officers or other employees of
the Company or its subsidiaries are eligible to participate in this Plan (“Eligible
Directors”).

 

3.             Administration.  This Plan will be administered by the
Compensation Committee of the Board (the “Committee”), which is composed solely
of two or more Nonemployee Directors (as defined in Rule 16b-3 promulgated
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)).  All questions of interpretation of this Plan
will be determined by the Committee, and each determination, interpretation or
other action that the Committee makes or takes pursuant to the provisions of
this Plan will be conclusive and binding for all purposes and on all
persons.  The Committee will not be
liable for any action or determination made in good faith with respect to this
Plan.

 

4.             Election
to Defer Receipt of Retainer and Fees.

 

4.1           Election
to Defer Cash Compensation.  Each
Eligible Director who decides to participate in this Plan (a “Participating
Director”) may irrevocably elect to defer receipt of cash equal to 25%, 50%,
75% or 100% of the annual cash retainer (“Retainer”) payable to that Director
for services to be rendered as a Director in the “Plan Year” (as defined below)
following such election and 25%, 50%, 75% or 100% of the meeting fees payable
for attendance at Board meetings or meetings of Committees of the Board (“Meeting
Fees”) otherwise payable to such Director for services performed after the
effective date of the Deferral Election (as defined in Section 4.2).  As of the date of adoption of this Plan,
Eligible Directors are customarily paid the Retainer one-half on February 1 and
one-half on August 1 of each year, and Meeting Fees are paid on the day of the
meeting.  As used herein, “Plan Year”
means the approximately 12-month period which runs from the election of
Directors at the annual meeting of stockholders of the Company until the next
meeting of stockholders at which Directors are elected by stockholders of the
Company.  The amounts to be deferred will
be in the form of Common Stock units credited to an account for the
Participating Director (a “Deferred Stock Account”).  No shares of Common Stock will be issued to a
Participating Director until he or she receives a payment under the Plan
pursuant to Section 6.

 

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4.2           Manner
of Making Deferral Election.  A
Participating Director may elect to defer payment of Retainer and Meeting Fees
pursuant to this Plan by filing, no later than January 15 of each year (or by
such other date as the Committee shall determine), an irrevocable election with
the Committee on a form provided for that purpose (“Deferral Election”).  The Deferral Election shall be effective with
respect to the Retainer and Meeting Fees otherwise payable during the first
calendar quarter of the following Plan Year unless the Participating Director
shall revoke or change the election in accordance with the procedure set forth
in Section 4.6.  The Deferral Election
form shall specify an amount to be deferred expressed as a percentage of the
Participating Director’s Retainer and Meeting Fees.

 

4.3           Credits
to Deferred Stock Account for Deferrals. 
On the last business day of each calendar quarter of the Plan Year (the “Credit
Date”),  a Participating Director shall
receive a credit to his or her Deferred Stock Account.  The amount credited shall be in the form of
stock units in a number equal to the number of shares of Common Stock (rounded
to the nearest one-hundredth of a share) determined by dividing (i) the product
of an amount equal to the Retainer and Meeting Fees specified for deferral that
would otherwise have been paid to the Participating Director for the applicable
calendar quarter multiplied by 105% by (ii) the Fair Market Value of one share
of Common Stock on the Credit Date.

 

4.4           Dividend
Credit.  Each time a dividend is paid
on the Common Stock, the Participating Director shall receive a credit of stock
units to his or her Deferred Stock Account equal to either the number of shares
(if a stock dividend is paid) or that number of shares of Common Stock (rounded
to the nearest one-hundredth of a share) having a Fair Market Value on the
dividend payment date (if a cash dividend is paid) equal to the amount of the
dividend that would have been payable on the number of shares of Common Stock
equal to the number of stock units credited to the Participating Director’s
Deferred Stock Account on the dividend record date.

 

4.5           Fair
Market Value.  For purposes of
converting dollar amounts into shares of Common Stock, the Fair Market Value of
each share of Common Stock shall be equal to the closing price of one share of
the Company’s Common Stock on the New York Stock Exchange-Composite
Transactions (or such other principal stock exchange on which the Common Stock
may then be listed) on the last business day of the applicable calendar quarter
of the Plan Year for credits under Section 4 or the applicable payment date
pursuant to Section 6.

 

4.6           Change
in Election.  Each Participating
Director may irrevocably elect in writing to change an earlier Deferral
Election, either to change the percentage of such Director’s Retainer and
Meeting Fees to be deferred or to discontinue making deferrals and currently
receive the entire Retainer and Meeting Fees in cash (an “Amended Election”).  Such Amended Election shall not become
effective until the first calendar quarter of the Plan Year commencing after
the date of receipt of such Amended Election by the Company.

 

4.7           Termination
of Service as a Director.  If a
Participating Director leaves the Board before the conclusion of any Plan Year
calendar quarter, he or she will be paid the quarterly installment of the
Retainer and Meeting Fees entirely in cash, notwithstanding that a Deferral
Election or Amended Election is on file with the Committee.  The date of termination of

 

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a Participating Director’s
service as a Director of the Company will be deemed to be the date of
termination recorded on the personnel or other records of the Company or the
Board.

 

5.             Shares
Available for Issuance.

 

5.1           Maximum
Number of Shares Available.  Subject
to adjustment pursuant to Section 5.2, the maximum number of shares of Common
Stock that shall be available for issuance under this Plan shall be
300,000.  Shares issuable under this Plan
may be either authorized but unissued shares, shares held in the treasury of
the Company or shares acquired on the open market or otherwise.

 

5.2           Adjustments
to Shares.  In the event of any
reorganization, merger, consolidation, recapitalization, liquidation,
reclassification, stock dividend, stock split, combination of shares, rights
offering, divestiture or extraordinary dividend, an appropriate adjustment will
be made in the number and/or kind of securities available for issuance under
this Plan to prevent either the dilution or the enlargement of the rights of
the Eligible Directors and Participating Directors.

 

6.             Deferral
Payment.

 

6.1           Election
Regarding Form of Deferral Payment. 
At the time of making the Deferral Election, each Participating Director
shall also complete a deferral payment election specifying one of the payment
options described in Sections 6.2 and 6.3, and the year following termination
of service as a Director in which amounts credited to the Participating
Director’s Deferred Stock Account shall be paid in a lump sum pursuant to
Section 6.2, or in which installment payments shall commence pursuant to
Section 6.3.  The deferral payment
election shall be irrevocable as to all amounts credited to the Participating
Director’s Deferred Stock Account.  The
Participating Director may change the deferral payment election by means of a
subsequent deferral payment election in writing that will take effect for
deferrals credited after the date the Company receives such subsequent deferral
payment election.

 

6.2           Payment
of Deferred Stock Accounts in a Lump Sum. 
Unless a Participating Director elects to receive payment of his or her
Deferred Stock Account in installments as described in Section 6.3, credits to
a Participating Director’s Deferred Stock Account shall be payable in full on
February 15 of the year following the Participating Director’s termination of
service on the Board (or the first business day thereafter) or such other later
date as elected by the Participating Director pursuant to Section 6.1.  All payments shall be made in shares of
Common Stock, with one share of Common Stock issued for each stock unit
credited to the Participating Director’s Deferred Stock Account, plus cash in
lieu of any fractional share. 
Notwithstanding the foregoing, in the event of a Change of Control (as
defined in Section 11), credits to a Participating Director’s Deferred Stock
Account as of the business day immediately prior to the effective date of the
transaction constituting the Change of Control shall be paid in full to the
Participating Director or the Participating Director’s beneficiary or
estate,  as the case may be, in whole
shares of Common Stock (together with cash in lieu of a fractional share) on such
date.

 

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6.3           Payment
of Deferred Stock Accounts in Installments. 
A Participating Director may elect to have his or her Deferred Stock
Account paid in annual installments commencing the year following termination
of service as a Director or commencing in a later year as elected by the
Participating Director pursuant to Section 6.1. 
All payments shall be made in shares of Common Stock, with one share of
Common Stock issued for each stock unit credited to the Participating Directors
Deferred Stock Account, plus cash in lieu of any fractional share.  All installment payments shall be made
annually on February 15 of each year (or the first business day thereafter).  The amount of each installment payment shall
be computed as the number of shares credited to the Participating Director’s
Deferred Stock Account on the relevant installment payment date, multiplied by
a fraction, the numerator of which is one and the denominator of which is the
total number of installments elected (not to exceed five) minus the number of
installments previously paid.  Amounts
paid prior to the final installment payment shall be rounded to the nearest
whole number of shares; the final installment payment shall be for the whole
number of stock units then credited to the Participating Director’s Deferred
Stock Account, together with cash in lieu of any fractional share.  Notwithstanding the foregoing, in the event
of a Change of Control (as defined in Section 11),  credits to a Participating Director’s
Deferred Stock Account as of the business day immediately prior to the
effective date of the transaction constituting the Change of Control shall be
paid in full to the Participating Director or the Participating Director’s
beneficiary or estate, as the case may be, in whole shares of Common Stock
(together with cash in lieu of a fractional share) on such date.

 

7.             Limitation
on Rights of Eligible and Participating Directors.

 

7.1           Service
as a Director.  Nothing in this Plan
will interfere with or limit in any way the right of the Company’s Board or its
stockholders to remove an Eligible Director or Participating Director from the
Board.  Neither this Plan nor any action
taken pursuant to it will constitute or be evidence of any agreement or
understanding, express or implied, that the Company’s Board or its stockholders
have retained or will retain an Eligible Director or Participating Director for
any period of time or at any particular rate of compensation.

 

7.2           Nonexclusivity
of the Plan.  Nothing contained in
this Plan is intended to effect, modify or rescind any of the Company’s
existing compensation plans or programs or to create any limitations on the
Board’s power or authority to modify or adopt compensation arrangements as the
Board may from time to time deem necessary or desirable.

 

8.             Plan
Amendment, Modification and Termination. 
The Board may suspend or terminate this Plan at any time.  The Board may amend this Plan from time to
time in such respects as the Board may deem advisable in order that this Plan
will conform to any change in applicable laws or regulations or in any other
respect that the Board may deem to be in the Company’s best interests.

 

9.             Effective
Date and Duration of the Plan.  This
Plan shall become effective as of the date the Board approves this Plan and
will continue until the earlier to occur of (i) the termination of the Plan by
Board or (ii) the tenth anniversary of the date of approval of this Plan by the
Board.

 

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10.           Participants
Are General Creditors of the Company. 
The Participating Directors and beneficiaries thereof shall be general,
unsecured creditors of the Company with respect to any payments to be made
pursuant to this Plan and shall not have any preferred interest by way of
trust, escrow, lien or otherwise in any specific assets of the Company.
Although the Company expects to set aside monies or other assets to meet its
obligations hereunder (there being no obligation to do so), the same shall, nevertheless,
be regarded as a part of the general assets of the Company subject to the
claims of its general creditors, and neither any Participating Director nor any
beneficiary thereof shall have a legal, beneficial or security interest
therein.

 

11.           Change
of Control.  “Change of Control”
means any one of the following events:

 

(a)           The
acquisition by any person, entity or “group”, within the meaning of
Section 13(d)(3) or 14(d)(2) the Exchange Act, other than The Hormel
Foundation, the Company or any of its wholly owned subsidiaries, or any
employee benefit plan of the Company and/or any of its wholly owned
subsidiaries, of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 20% or more of either the then
outstanding shares of Common Stock or the combined voting power of the Company’s
then outstanding voting securities in a transaction or series of transactions
not approved in advance by a vote of at least three-quarters of the Continuing
Directors (as defined below); or

 

(b)           Individuals
who, as of the effective date of the Plan, constitute the Board of Directors of
the Company (the “Continuing Directors”) cease for any reason to constitute at
least a majority of the Board, provided that any person becoming a director
subsequent to the effective date of the Plan whose election, or nomination for
election by the Company’s stockholders, was approved in advance by a vote of at
least  three-quarters of the Continuing  Directors (other than a nomination of an individual whose
initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of the directors of
the Company or other actual or threatened solicitation of proxies or consents
by or on behalf of a person, entity or “group” within the meaning of Section
13(d)(3) or Section 14(d)(2) of the Exchange Act, other than the Board) shall
be, for purposes of this Plan, considered as a Continuing Director; or

 

(c)           Approval
by the stockholders of the Company of a reorganization, merger, consolidation,
liquidation or dissolution of the Company or of the sale (in one transaction or
a series of related transactions) of all or substantially all of the assets of
the Company other than a reorganization, merger, consolidation, liquidation,
dissolution or sale approved in advance by three-quarters of the Continuing
Directors; or

 

(d)           The
first purchase under any tender offer or exchange offer (other than an offer by
the Company or any of its wholly owned subsidiaries) pursuant to which shares
of Common Stock are purchased; or

 

5

 

(e)           Any
other event that a majority of the Continuing Directors in its sole discretion
shall determine constitutes a Change of Control.

 

12.           Miscellaneous.

 

12.1         Securities
Law and Other Restrictions. 
Notwithstanding any other provision of  this
Plan or any Deferral Election or Amended Election delivered pursuant to this
Plan, the Company will not be required to issue any shares of Common Stock
under this Plan and a Participating Director may not sell, assign, transfer or
otherwise dispose of shares of Common Stock issued pursuant to this Plan,
unless (a) there is in effect with respect to such shares a registration
statement under the Securities Act of 1933, as amended (the “Securities Act”)
and any applicable state securities laws or an exemption from such registration
under the Securities Act and applicable state securities laws and (b) there has
been obtained any other consent, approval or permit from any other regulatory
body that the Committee, in its sole discretion, deems necessary or
advisable.  The Company may condition
such issuance, sale or transfer upon the receipt of any representations or
agreements from the parties involved, and the placement of any legends on
certificates representing shares of Common Stock, as may be deemed necessary or
advisable by the Company, in order to comply with such securities law or other
restriction.

 

12.2         Governing
Law.  The validity, construction,
interpretation, administration and effect of this Plan and any rules,
regulations and actions relating to this Plan will be governed by and construed
exclusively in accordance with the internal laws (without regard to conflict of
laws principles) of the State of Delaware.

 

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