Document:

Exhibit 10.4                 WHOLE LIVING, INC.

November 11, 2005

William M. Fifield
755 East 620 North
Provo, Utah 84606

Re:    Employment Agreement

Dear Mr. Fifield:

This letter is to confirm our mutual understanding with respect to your
employment by Whole Living, Inc., a Utah corporation (the "Company").  The
terms and conditions set forth in this letter shall be referred as the
"Agreement."  In consideration of the mutual promises and covenants contained
in this Agreement, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby mutually acknowledged, we have agreed as
follows:

      1.    Employment.

      (a)   The Company will employ you, and you agree to be employed by the
Company, as its Vice President, to have and perform such responsibilities,
duties and authority as are customary to such position.  You agree to devote
your full business time and energies to the business and affairs of the
Company and to the fulfillment of your obligations to the Company hereunder.
You agree to perform you duties faithfully, diligently and competently, using
your best efforts to further the business of the Company.  Your duties shall
include but are not limited to marketing and communications, product creation
and creative writing.

      2.    Term of Employment.

      (a)   Your employment shall commence on the date of this Agreement and
shall continue until the first anniversary hereof (the "Term").  The Term of
your employment shall be automatically extended for two successive one-year
periods, unless either you or the Company gives written notice to the other at
least three (3) months prior to the expiration of the Term that such party
elects not to extend the Term of this Agreement.  Each one-year extension
shall also be referred to as the "Term".  Notwithstanding the foregoing, your
employment with the Company may be terminated prior to expiration of the Term
as follows:

            (i)    at the will of the Company for any reason provided, the
Company provides you with written notice of its decision to terminate your
employment no less than thirty (30) days prior to the effective date of such
termination.  You acknowledge that your employment with the Company is and
shall continue to be at-will, as defined under applicable law;

<PAGE>

            (ii)   immediately upon your death;

            (iii)  by the Company if you are unable due to illness, accident
or other physical or mental incapacity, with or without reasonable
accommodation, to perform the services provided for hereunder for an aggregate
of thirty (30) business days within any period of ninety (90) consecutive
business days during the term hereof;

            (iv)   by the Company for "Cause" (as defined below), provided
that termination solely for Cause shall follow written notice to you of such
event constituting Cause and your failure to cease the violative acts or
omissions and cure any consequences of such acts or omissions within thirty
(30) days following such notice;

            (v)    by you based upon any reason provided, that the termination
shall only be effective if you have given written notice to the Company no
less than ninety  (90) days prior to the effective date of such termination.
Following termination of your employment with the Company, you shall be
entitled to severance benefits equal to the amount of your base salary for a
ninety (90) day period to be paid over the ninety (90) day period in biweekly
increments.

      (b)   For the purposes of this Agreement:

            (i)  "Cause" shall mean (A)  any action or omission by you
involving willful misconduct or gross negligence; (B) your conviction of a
felony, either in connection with the performance of your obligations to the
Company or which conviction otherwise shall adversely affect your ability to
perform such obligations, or shall materially adversely affect the business
activities or goodwill of the Company; (C) willful disloyalty, deliberate
dishonesty, breach of fiduciary duty or any act of fraud or embezzlement; or
(D) your breach of the terms of this Agreement; and

      (c)   Upon termination of your employment with the Company, you shall
cease holding yourself out to third parties as an employee of the Company or
otherwise take any action on behalf of the Company.  You shall also deliver to
the Company any property of the Company which may be in your possession
including products, materials, memoranda, notes, records, reports or other
documents in any medium whatsoever.

      3.    Compensation.

            (a)   During the period of your employment with the Company
hereunder, the Company shall pay you a monthly salary of seven thousand eight
hundred fifty dollars ($7,850.00) paid in biweekly increments.  In addition to
your annual base salary, and as

                               -2-

<PAGE>

additional consideration for the releases contained herein, you shall receive
upon execution of this Agreement three hundred thousand (300,000) shares of
the Company's restricted common stock.

      4.    Benefits and Reimbursements.  While you are employed by the
Company hereunder, you will be entitled to participate in the employee health
insurance plan and programs of the Company to the extent that you meet the
eligibility requirements for each individual plan or program. This benefit
will be paid by the Company for the term of your employment. The Company
provides no assurance as to the adoption or continuance of any particular
employee benefit plan or program, and your participation in any such plan or
program shall be subject to the provisions, rules and regulations applicable
thereto.

      5.    Protected Information.  You shall at all times prior to and
following any termination of your employment with the Company for any reason
maintain in confidence any information disclosed to or developed by you during
the course of performing services for the Company and which is not generally
available to the public (other than as a result of your wrongful disclosure),
including but not limited to, information and facts concerning the Company
financial status, business plans, financing sources and terms, potential
transactions, current and potential client/borrower lists, Company,
techniques, vendors, licensors, investors, marketing plans or any other
proprietary information of the Company or of any third party provided to you.
You shall not use or disclose any of such information except in the course of
the performance of your duties for the Company.

      6.    Indemnification.

      (a)   The Company agrees to defend, indemnify and hold you harmless from
any and all losses, claims, suits, causes of action, injuries, liabilities or
damages and associated expenses of any kind and nature whatsoever which shall
include, but not be limited to, reasonable attorney's fees and other
litigation expenses, arising from or relating in any way to your fulfillment
of your duties and obligations under this Agreement and any action brought
against the Company which does not involve or arise from your willful
misconduct or gross negligence.

      (b)   You agree to defend, indemnify and hold the Company harmless from
any and all losses, claims, suits, causes of action, injuries, liabilities or
damages, and associated expenses of any kind and nature whatsoever which shall
include, but not be limited to, reasonable attorney's fees and other
litigation expenses, arising from or relating in any way to your willful
misconduct or gross negligence in the performance of your duties hereunder or
otherwise

      (c)   The parties hereto agree that if such a claim is made, such an
action commenced or such a demand made against you and/or the Company, then
either party shall notify the other, in writing, of the action, complaint or
demand in order that the responsible party under this section may present its
defense in a timely fashion against the action, demand or claim.  The
responsible party under this section shall keep the other party fully
informed, at the responsible party's expense, of its defense of the claim,
complaint or

                               -3-

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demand which notice shall include, but is not limited to, providing the other
party with copies of any written correspondence, pleadings or any and all
administrative or judicial decisions.  Each party agrees to reasonably
cooperate with the other to whatever extent is reasonably necessary to protect
or defend against the claim, complaint or demand.  Said cooperation shall
include, but is not limited to, fully agreeing to execute any and all
documents necessary to defend against any claim, complaint or demand.

      (d)   In addition to the indemnifications contained herein, each party
shall promptly inform the other of any suspected actions or activities of
third parties that would result in the Company having any claim, demand or
cause of action against such third party and, with respect to such activities
as are suspected, the Company shall have the right, but not the obligation, to
institute an action against such third party.

      7.    Negative Information.

            The parties agree at all times prior to and following any
termination of your employment with its Company for any reason that they will
not disseminate any negative information, statements or representations about
the other or any employee, agent or representative of the other and each will
employ such efforts as are reasonable to protect anyone else from making
derogatory statements about the other. Upon written notification of any
violation of the promises contained in this paragraph, the violating party
agrees to take immediate action to stop the violation and provide a written
report to the non-violating party containing a detailed description of what
action was taken to stop the violation and what if any remedial action was
taken by the violating party. Said written report shall be delivered to the
non violating party within ten (10) days of the request of notification of
violation by the other party.

      8.    Release.

            For good and valuable consideration, receipt of which is hereby
acknowledged, you acting on behalf of yourself, and your successors and
assigns, do hereby fully and forever release and discharge the Company and its
respective subsidiaries, affiliates, divisions, components, successors and
assigns, their employees, officers, directors, agents, and attorneys, from any
and all claims, demands, obligations, liabilities, indebtedness, breaches of
duty, costs or attorney fees, or any relationship, acts, omissions,
misfeasance, cause or causes of action, sums of money, accounts, and promises
of every type, kind, nature, description or character, and irrespective of
how, why or by reason of what facts, which could, might, or may be claimed to
exist, of whatever kind or name, known or unknown, suspected or unsuspected,
liquidated or unliquidated, each as though fully set forth herein at length,
which in any way arise out of, are connected with, or related to any
professional, commercial or business dealings or relationship between the
parties hereto up to and including the date of this release.  Nothing in this
paragraph is intended to or shall release or waive any right or obligation of
the parties to this Agreement arising under this Agreement.

                               -4-

<PAGE>

      9.    Noncompetition.

      (a)   We each recognize and acknowledge the highly competitive nature of
the industry in which the Company conducts its business and the proprietary
nature of such business activities.  You acknowledge and agree that a business
will be deemed competitive with the Company and constitute a "Competitive
Business" if, during the period during which the covenant not to compete
contained in this Section 9 applies, that business includes, as one of its
primary businesses, any of the Competitive Activities.
For such purposes, "Competitive Activities" shall refer to any of the
following activities:

      Any business operating anywhere in the world, that engages in
Competitive Activities which contribute or constitute more than fifty percent
(50%) of any entity's (including a corporation, limited liability company,
partnership, joint venture or any division, subsidiary or partner thereof)
gross revenues. For example, the sale of whole food products by a subsidiary
of a multilevel marketing company would constitute the primary business of
that subsidiary if the sale of whole food products constituted more than fifty
percent (50%0 of that subsidiary's gross sales. Under this example, you could
work for the multilevel marketing company but not for its subsidiary selling
whole food products unless that subsidiary's revenue constitutes more than
fifty percent (50%) of the consolidated gross revenue of the multilevel
marketing company and its subsidiary.

      For such purposes, "Competitive Activities" shall refer to any of the
following activities.

      The local, regional or worldwide manufacturing, marketing and selling of
any and all forms of whole food products and essential oils comparable or in
any way similar to products manufactured, marketed or sold by the Company or
products that are being developed, tested or prepared for sale, manufacturing
or marketing by the Company (including but not limited to "Pulse" products and
variations thereof).

      (b)   During your employment with the Company and during the
Post-Termination Period (as defined below), you shall not:

            (i)    for yourself or on behalf of or through any other person or
entity, directly or indirectly, either as principal, agent, stockholder,
employee, consultant, representative or in any other capacity, own manage,
operate, control, or be employed by, either as an employee or independent
contractor, or otherwise associate in any business-related manner with, engage
in or have a financial interest in any Competitive Business;

            (ii)   either individually or on behalf of or through any other
person, directly or indirectly, solicit, entice or persuade or attempt to
solicit, entice or persuade any  employee or consultant to the Company to
leave the services of the Company for any reason; or

                               -5-
<PAGE>

            (iii)  either individually or on behalf of through other person,
directly or indirectly, solicit, divert or appropriate or attempt to solicit,
divert or appropriate, for the purposes of competing with the Company, any
customer, distributor, associate, client or vendor of the Company or otherwise
interfere with any prospective business opportunity of the Company that
represent a Competitive Activity.

      (c)   "Post-Termination Period" means (i) the period of thirty-six (36)
consecutive months immediately following the termination of your employment
for cause or termination of your employment by you pursuant to paragraph
2(a)(iv) or 2(a)(v) above; (ii) the period of twenty-four (24) consecutive
months immediately following the termination of your employment by the Company
pursuant to paragraph 2(a)(i) or 2(a)(iii) above. Notwithstanding the above,
the post-termination period shall cease immediately upon the cessation of all
business by the Company

      (d)   You further acknowledge that (i) the type of activities which are
prohibited by this Agreement are narrow and reasonable in relation to the full
set of skills and qualifications that you possess and afford you sufficient
latitude to earn your livelihood in non-prohibited activities during any
Post-Termination Period, (ii) the geographical scope of the provisions of this
Agreement is reasonable, legitimate and fair to you, (iii) the scope and
character of the competitive activities restricted in this Agreement fairly
and accurately reflect the activities which you perform for the Company, (iv)
your performance of services for the Company and undertakings in this Section
8 represent material consideration for the Company's execution of this
Agreement, (v) and the restrictions are reasonably necessary to protect the
legitimate interests of the Company, including without limitation the
Company's protection of confidential information, customer relationships and
goodwill.

      9.    Disclosure to Future Employers.  You agree that you will provide
and that the Company may provide, in its discretion, a copy of the covenants
contained in Sections 6 and 8 above to any business or enterprise which you
may directly or indirectly own, manage, operate, join, control or in which you
participate in the management, operation, financing, or control, or with which
you may be connected as an officer, director, employee, partner, principal,
agent, representative, consultant or otherwise.

      10.    No Conflicting Agreements.  You hereby represent and warrant that
you have no commitments or obligations inconsistent with this Agreement.

      11.    Additional Representations.  You make the following additional
warranties and representations that are an inducement upon which the Company
is relying to enter into this Agreement.

                               -6-

<PAGE>

      (a)    All information provided to the Company by you is accurate and
complete.

      (b)    The execution of this Agreement by you will not violate or
constitute a breach of the terms of any other agreement or commitment to which
you are a party.

      (c)    You acknowledge that no representations, promises, guarantees or
warranties of any kind are made or have been made by us or by any person
representing himself or herself to be the Company's authorized agent or
representative to induce you to execute this Agreement except as specifically
set forth herein.

      12.    General.

      (a)    Notices.  All notices, requests, consents and other communication
hereunder shall be in writing, shall be addressed to the receiving party at
any address designated by the party in writing, and shall be either (i)
delivered by hand, (ii) sent by nationally recognized overnight courier
service, (iii) sent by facsimile transmission or (iv) sent by registered mail,
return receipt requested, postage prepaid and a copy thereof sent by ordinary
mail on the same day.  All notices, requests, consents and other
communications hereunder shall be deemed to have been given either (x) upon
delivery if by hand, by facsimile transmission or by overnight courier or (y)
on the third business day following mailing if sent by registered mail.

      (b)    Entire Agreement.  This Agreement embodies the entire agreement
and understanding between the parties hereto with respect to the subject
matter hereof and supersedes all prior oral or written agreements and
understandings relating to the subject matter hereof.  No statement,
representation, warranty, covenant or agreement of any kind not expressly set
forth in this Agreement shall affect, or be used to interpret, change or
restrict, the express terms and provisions of this Agreement.

      (c)    Modifications and Amendments.  The terms and provisions of this
Agreement may be modified or amended only by written agreement executed by the
parties hereto.

      (d)    Waivers and Consents.  The terms and provisions of this Agreement
may be waived, or consent for the departure there from granted, only by
written document executed by the party entitled to the benefits of such terms
or provisions and, if such party is the Company, by the Company.  No such
waiver or consent shall be deemed to be or shall constitute a waiver or
consent with respect to any other terms or provisions of this Agreement,
whether or not similar.  Each such waiver or consent shall be effective only
in the specific instance and for the purpose for which it was given, and shall
not constitute a continuing waiver or consent.

      (e)    Assignment.  The Company may assign its rights and obligations
hereunder to any person or entity who succeeds to all or substantially all of
the Company's business as part of a sale of the business of the Company.  Your
rights and obligations under this Agreement are personal and may not be
assigned by you.

                               -7-

<PAGE>

      (f)    Governing Law.  This Agreement and the rights and obligations of
the parties hereunder shall be construed in accordance with and governed by
the law of the State of Utah, without giving effect to the conflict of law
principles thereof.

      (g)    Severability.  The parties intend this Agreement to be enforced
as written.  If, however, any portion or provision of this Agreement shall to
any extent be declared illegal or unenforceable by a duly authorized court
having jurisdiction, then the remainder of this Agreement, or the application
of such portion or provision in circumstances other than those as to which it
is so declared illegal or unenforceable, shall not be affected thereby, and
each portion and provision of this Agreement shall be valid and enforceable to
the fullest extent permitted by law.

      (h)    Injunctive Relief.  You hereby expressly acknowledge that any
breach or threatened breach of any of  the terms or conditions set forth in
Sections 5 or 6 of this Agreement will result in substantial, continuing and
irreparable injury to the Company.  Therefore, you agree that, in addition to
any other remedy that may be available to the Company, the Company shall be
entitled to injunctive or other equitable relief by a court of appropriate
jurisdiction in the event of any breach or threatened breach of the terms of
Sections 5 or 6 of this Agreement.

      (i)    Jurisdiction.  You and the Company agree that any and all
disputes, actions, or proceedings arising out of or relating to this Agreement
or in any way connected to your employment with the Company shall be litigated
solely and exclusively in the United States District Court for the District of
Utah, Central Division.  You and the Company irrevocably consent to the
jurisdiction and venue of any such court and waive any argument that venue in
such forums in not convenient.

      (j)    Expenses.  Should any party breach this Agreement, in addition to
all other remedies available at law or in equity, such party shall pay all of
the other party's costs and expenses resulting there from and/or incurred in
enforcing this Agreement, including legal fees and expenses.

      (k)    Interpretation.  The parties hereto acknowledge and agree that:
(i) each party and its or his counsel reviewed and negotiated the terms and
provisions of this Agreement and have contributed to its revision; (ii) the
rules of construction to the effect that any ambiguities are resolved against
the drafting party shall not be employed in the interpretation of this
Agreement; and (iii) the terms and provisions of this Agreement shall be
construed fairly as to all parties hereto and not in favor of or against any
party, regardless of which party was generally responsible for the preparation
of this Agreement.

      (l)    Counterparts.  This Agreement may be executed in one or more
counterparts, and by different parties hereto on separate counterparts, each
of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

                               -8-

<PAGE>

     If the foregoing accurately sets forth our agreement, please so indicate
by signing and returning to us the enclosed copy of this letter, where upon
this letter shall become a binding agreement between us as of the date first
written above.

                     [Signature Page Follows]

                               -9-

<PAGE>

                              Very truly yours,

                              WHOLE LIVING, INC.

                              By: /s/ Douglas J. Burdick

                                  Its: President

Acknowledged and Agreed:

/s/ William M. Fifield
___________________________
William M. Fifield

Dated: _____________________

             [Signature Page to Employment Agreement]exv10w3

 

Exhibit 10.3

CHANGE IN CONTROL AGREEMENT

     AGREEMENT between Penford Corporation, a Washington corporation (the “Corporation”), and
___ (the “Executive”), dated as of
___ (the “Effective Date”).

RECITALS

     A. The Executive is an executive officer or key employee of the Corporation and an integral
part of its management.

     B. The Corporation wishes to assure both itself and the Executive of continuity of management
in the event of any actual or threatened change in control of the Corporation.

     C. This Agreement is not intended to alter the compensation and benefits that the Executive
could reasonably expect in the absence of the occurrence of a Change in Control, as defined in this
Agreement; consequently, this Agreement will be operative only upon the Executive’s termination
during the term of this Agreement after the occurrence of a Change in Control.

     NOW, THEREFORE, it is hereby agreed as follows;

     1. Definitions. For purposes of this Agreement, the following terms shall have the meanings
set forth below.

          “Average Target Attainment Bonus” shall mean the product of the Executive’s Target Bonus in
the year of the Executive’s termination of employment multiplied by the average of the percentages
of Target Bonuses attained by the Executive for the three fiscal years preceding the year of the
Executive’s termination of employment in which the Executive was a participant in the Corporation’s
bonus plan administered for executive officers and key employees for a full fiscal year, or such
fewer number of fiscal years in which the Executive was a participant in such bonus plan for a full
fiscal year, or the Target Bonus for the year of termination if the Executive has not previously
been a participant for a full fiscal year in such bonus plan. The percentages of Target Bonuses
attained shall be computed by including all bonuses paid with respect to a fiscal year regardless
of whether a bonus is paid pursuant to a plan or awarded on a discretionary basis, but shall not
include any bonus paid in the year of the Executive’s termination of employment or any
discretionary bonus paid which are directly attributable to a Change in Control. For example,
assume the Executive has a Target Bonus in the year of the Executive’s termination of 50% of Base
Salary and with respect to the preceding three fiscal years was awarded bonuses which represented
80%, 120% and 70%, respectively, of the Executive’s then applicable Target Bonuses of 35%, 40% and
40%, then the Average Target Attainment Bonus would be 90% times 50% or 45% of Base Salary.
Management shall maintain a record of the Average Target Attainment Bonuses and such record shall
be reviewed and concurred to by the compensation committee of the Corporation.

 

 

          “Base Salary” shall mean an amount equal to the greater of (i) the Executive’s annual base
salary at the rate in effect on the date of a Change in Control, or (ii) the Executive’s annual
base salary at the rate in effect on the date of the Executive’s termination of employment, either
without regard to any reduction made in connection with an event constituting Good Reason
hereunder. In either case Base Salary shall be determined prior to any deductions actually taken
from salary including without limitation (1) for salary reductions or deferrals under any plan of
the Corporation, (2) for payments of employee benefits under any plan of the Corporation which were
charged to the Executive, and (3) for the purchase of stock under any plan of the Corporation.

          “Cause” means a finding by the Board of Directors in good faith that (i) the Executive’s
employment has been terminated for gross misconduct in connection with the Executive’s position as
an officer of the Corporation that results in demonstrably material injury to the Corporation, or
(ii) the Executive has breached a covenant of the Executive set forth in this Agreement (if, after
written notice by the Corporation to the Executive and a thirty (30) day opportunity by the
Executive to cure during which the Executive does not cure the condition). For this purpose, bad
judgment, negligence and policy disagreements with the Board of Directors shall not constitute
gross misconduct, nor shall any act or omission of the Executive that was reasonably believed by
the Executive to have been in, and not opposed to, the interests of the Corporation.

          “Change in Control” shall mean any of the following events:

	 	(i)	 	The Corporation is merged, consolidated or
reorganized (“Reorganization”) with another entity and as a result of
which less than 50% of the outstanding voting interests or securities
of the surviving or resulting entity immediately after the
Reorganization are owned in the aggregate by the former shareholders of
the Corporation, as the same shall have existed immediately prior to
such Reorganization, in substantially the same proportions as their
ownership before such Reorganization;
	 
	 	(ii)	 	The Corporation sells all or “Substantially
All” of its assets to another entity that is not a wholly-owned
subsidiary or affiliate of the Corporation, provided that a sale shall
constitute Substantially All of the Corporation’s assets only if the
fair market value of the consideration received for such assets exceeds
50% of the fair market value of the Corporation’s average total market
capitalization during the twenty (20) trading days ending twenty (20)
trading days prior to the first public announcement of such sale;
provided further that the fair market value of the consideration
received and the total market capitalization of the Corporation shall
be as reasonably determined by the Board of Directors in good faith and
that both the Corporation’s stock and any publicly traded consideration
received in a sale shall be valued using the closing price for such
security (y) for the period referenced above in the case of the
Corporation’s stock and (z) the

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	 	 	 	average closing prices for the first twenty (20) trading days after
the Closing of any sale or other transaction in which any publicly
traded consideration is received;
	 
	 	(iii)	 	Any person, within the meaning of Sections
3(a)(9), 13(d) or 14(d) (as in effect on the date hereof) of the
Securities and Exchange Act of 1934 (“Exchange Act”) (“Person”), other
than any employee benefit plan then maintained by the Corporation,
acquires more than 40% of the outstanding voting securities of the
Corporation (whether, directly, indirectly, beneficially or of record).
For purposes hereof, ownership of voting securities shall take into
account and shall include ownership as determined by applying the
provisions of Rule 13d-3(d)(1)(i) (as in effect on the date hereof)
pursuant to the Exchange Act; or
	 
	 	(iv)	 	During any 24 month period, individuals who
constitute the Board of Directors of the Corporation at the beginning
of such period cease for any reason to constitute at least a majority
thereof, unless the election, or nomination for election by the
Corporation’s shareholders, of each new director was approved by the
vote of at least two-thirds of the directors then still in office who
were directors of the Corporation at the beginning of such period;
provided that no individual shall be considered so approved if such
individual initially assumed office as a result of or in connection
with an actual or threatened solicitation of proxies or consents by or
on behalf of a Person other than the Board of Directors of the
Corporation.

          “CIC Amount” shall have the meaning set forth in Annex B.

          “Compensation Period” shall have the meaning set forth in Annex B.

          “Disability” shall mean, to the extent such term is not defined in an Employment Agreement, if
any, a physical or mental condition as a result of which the Executive has been approved for
benefits under a Corporation-sponsored long-term disability plan, policy or arrangement in which
the Executive participates.

          “Employment Agreement” shall mean a written offer letter or employment between the Executive
and the Corporation, if any, covering the terms and conditions of employment with the Corporation.

          “Good Reason” shall exist under any of the following conditions (if, after written notice by
the Executive to the Corporation and a thirty (30)day opportunity by the Corporation to cure during
which the Corporation does not cure the condition):

	 	(i)	 	The Executive’s most significant duties,
responsibilities or authority held, prior to the date of the Change in
Control or at any time after the date of the Change in Control are
reduced or

3

 

	 	 	 	diminished in other than an immaterial manner without the Executive’s
written consent;
	 
	 	(ii)	 	Either (A) the Executive’s Base Salary or
Target Bonus are reduced by the Corporation from the levels in effect
immediately prior to a Change in Control without the Executive’s
written consent, or (B) the Executive’s health, welfare and other
benefits referred to in Paragraph 6 are denied or modified in a manner
different than changes applicable to other executive officers of the
Corporation or any controlling entity without the Executive’s written
consent, and (C) the aggregate effect of all such reductions, denials
and modifications (including any increases in compensation, bonuses, or
benefits) represents more than an immaterial reduction to the Executive’s overall
compensation package in existence prior to the Change in Control;
	 
	 	(iii)	 	The Corporation violates the material terms of
this Agreement, or the Executive’s Employment Agreement, if any;
	 
	 	(iv)	 	The Executive is required to relocate his or
her principal place of employment to a location which is more than 50
miles from both his principal place of employment and his principal
residence prior to the announcement of an agreement or transaction that
results in a Change in Control (for avoidance of doubt the principal
place or employment and principal residence for the Executive shall be
set forth on Annex B hereto and shall be updated from time to time,
provided that the failure to so update shall not preclude this
provision from being applicable); or
	 
	 	(v)	 	There is a liquidation, dissolution,
consolidation or merger of the Corporation or transfer or sale of all
or a Substantially All (as defined above) of its assets, unless a
successor (by merger, consolidation or otherwise) to which all or
Substantially All of its assets have been transferred or sold has
assumed (either by operation of law or otherwise) all duties and
obligations of the Corporation under this Agreement and any Employment
Agreement, if any.

          “Outplacement Period” shall have the meaning set forth in Annex B.

          “Target Bonus” shall mean an amount equal to the target bonus payable to the Executive under
the Corporation’s annual incentive bonus plan in effect for the fiscal year of the Executive’s
termination of employment, or other fiscal years specifically referenced in this Agreement, without
regard, to any reduction made in connection with an event constituting Good Reason hereunder.

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          “Termination of the Executive’s Employment” shall (a) mean (i) termination by the Corporation
of the employment of the Executive for any reason other than Cause, death, or Disability; or (ii)
termination by the Executive of his or her employment for Good Reason in the absence of
circumstances that constitute Cause; and (b) shall be interpreted in a manner consistent with the
term “separation from service” under Section 409A(a)(2)(i) of the Internal Revenue Code of 1986, as
amended (“Code”).

          “Waiver and Release Agreement” shall mean the written waiver and release agreement attached
hereto as Annex A, which the Executive must execute on or within forty-five (45) days after his
last day of employment in favor of the Corporation, and not thereafter revoke, in order to be
entitled to receive any payments or benefits under paragraphs 4, 5, 6 and 7 of this Agreement.

     2. Term of Agreement. This Agreement shall remain in effect until terminated by the
Corporation in accordance with this paragraph or, if a Change in Control occurs prior to such
termination by the Corporation, until the obligations of the Corporation pursuant to this Agreement
have been fulfilled. This Agreement shall terminate one year after the date the Corporation gives
the Executive written notice of the termination of this Agreement; except that if a Change in
Control occurs prior to the termination date, this Agreement shall remain in effect with respect to
all rights accruing as a result of the occurrence of the Change in Control.

     3. Termination of Employment. If, during the term of this Agreement, there is a Termination
of the Executive’s Employment within twenty-four (24) months after a Change in Control, then the
Executive shall receive the compensation and benefits described in paragraphs 4, 6 and 7. Section
5 shall apply upon a Change in Control with or without a Termination of the Executive’s Employment.
Notwithstanding the foregoing, a termination shall not have occurred under this Agreement if, in
connection with a Change in Control, the Executive terminates employment with the Corporation and
becomes an employee of the acquiring or controlling entity or one of its affiliates which succeeds
to the business of the Corporation under terms and conditions that would not give rise to Good
Reason had employment with the Corporation continued.

     4. Compensation. Subject to the provisions of paragraphs 3, 10 and 13, the Executive shall
have the right to receive the CIC Amount (as defined in Annex B)) during the Compensation Period
(as defined in Annex B). Fifty percent (50%) of the CIC Amount shall be payable within thirty
(30) days after Termination of the Executive’s Employment and the remaining fifty percent (50%) of
the CIC Amount shall be paid in equal monthly installments over the Compensation Period. In
addition, the Executive shall be paid his or her prorated Target Bonus for the fiscal year in which
the Executive was terminated within thirty (30) days after Termination of the Executive’s
Employment. The prorated Target Bonus shall be determined by multiplying the Target Bonus by a
fraction the numerator of which shall be the number of full or partial months that the Executive
was employed during the fiscal year in which the Termination of the Executive’s Employment
occurred. To the extent a bonus for the fiscal year prior to the year in which the Termination of
the Executive’s Employment occurs has not been paid at the time of the Termination of the
Executive’s Employment, such bonus as determined in good faith and consistently with prior practice
shall be paid to the Executive not later than the time such bonuses were generally paid in the
prior year. Notwithstanding the foregoing, if necessary to

5

 

meet the requirements of subparagraphs (2)(A)(i) and (B)(i) of Code Section 409A(a)(2), the
compensation that would normally be paid during the first six (6) months after the Termination of
the Executive’s Employment shall not be paid to an Executive who is a specified employee (as
defined in Code Section 409A(a)(2)(B)(i)) until the six-month anniversary of the Termination of the
Executive’s Employment (or, if earlier, the date of his or her death). If such a delay is
required, the aggregate compensation for the first six months after the Termination of the
Executive’s Employment shall be paid in a single lump sum on (or as soon as practicable after) the
six-month anniversary, after which time the compensation shall be paid at the same time and in the
same manner as it was paid immediately prior to the Executive’s termination until the end of the
Compensation Period.

     5. Equity. All stock options, restricted stock, restricted stock units and other equity based
rights and interests outstanding immediately prior to the Change in Control shall become vested
immediately prior to the Change in Control and shall be exercisable, transferable, payable or
otherwise available in accordance with the plan, grant, agreement or other instrument setting forth
the Executive’s rights.

     6. Benefits. Subject to the provisions in Paragraphs 3, 10, and 13, accrued vacation through
the date of Termination of the Executive’s Employment shall be paid within thirty (30) days of the
effective date of the Waiver and Release Agreement. The Executive, his or her dependents,
beneficiaries and/or estate shall continue during the Compensation Period to be entitled to all
benefits under medical, dental, life insurance and similar plans (except for any disability plan)
that are in effect on the Executive’s termination date. If by reason of a plan provision, adverse
tax consequences to the Corporation or the Executive, law or government regulation or third-party
contractual restriction the Executive, his or her dependents, beneficiaries and/or estate cannot
receive or participate in a benefit, then the Corporation shall, to the extent necessary, pay or
provide for payment of such benefit or a reasonably equivalent benefit to the Executive, his or her
dependents, beneficiaries and/or estate in the same amount and manner as they would have been
provided by the relevant plan provided by the Corporation prior to the Executive’s termination date
(e.g., through the payment by the Corporation of a portion of COBRA premiums). Notwithstanding the
foregoing, if the Executive is employed by another employer, the Corporation shall not provide any
medical, dental, life insurance or similar benefit to the extent a comparable benefit is provided
by the other employer. The participation of the Executive in the Penford Corporation Retirement
Plan, the Penford Corporation 401(k) Plan or any other plan described in Code Section 401(a) shall
terminate after the Executive’s termination date in accordance with the terms of such plans and the
Corporation shall not be obligated to provide equivalent benefits. Notwithstanding the foregoing,
to the extent necessary to meet the requirements of subparagraphs (2)(A)(i) and (B)(i) of Code
Section 409A(a)(2), the benefits that would normally be provided under this paragraph 6 (including
treatment of the Executive as having not terminated employment for purposes of continued health
and welfare benefits or cash payments in lieu thereof) during the first six (6) months of the
Compensation Period shall not be provided to an Executive who is a specified employee (as defined
in Code Section 409A(a)(2)(B)(i)) until the six-month anniversary of such Executive’s Termination
of Employment (or, if earlier, the date of his or her death). If such a delay is required, the
Executive will not be treated as having continued employment during the first six months of the
Compensation Period until the six-month anniversary of the Executive’s Termination of Employment.
Also on such six-month anniversary, the Executive will receive a lump sum cash

6

 

payment equal to the value of any health and welfare benefits that could not be provided
during such six months. After the six-month anniversary, these benefits under this paragraph 6
will continue through the end of the Compensation Period.

     7. Outplacement Services. Subject to compliance with Paragraphs 3, 10 and 13, the
Corporation shall pay for the cost of senior executive-level outplacement services for the
Executive for the Outplacement Period (defined in Annex B). Outplacement services shall be
provided by such executive outplacement firm selected by the Executive and reasonably approved by
the Corporation. The Executive shall commence utilization of such senior executive-level
outplacement services within ninety (90) days following his or her termination date.

     8. Effect of Death. In the event of death of the Executive during the Compensation Period,
the compensation that would otherwise have been paid to the Executive under this Agreement shall be
paid to the Executive’s estate. Coverage of any dependents under any plan described in paragraph 6
shall continue for the Compensation Period as though the Executive had remained alive. Nothing in
this paragraph shall affect any other payments by the Corporation due in respect of the Executive’s
death.

     9. Section 280G Tax Payment.

     (a) Impact of Section 280G. Except as otherwise provided in Annex B and notwithstanding any
other provisions of this Agreement, if the aggregate “present value” (as defined in Section
280G(d)(4) of the Code) of all “parachute payments” (as defined in Section 280G(b)(2) of the Code)
made to or for the benefit of the Executive under this Agreement equals or exceeds three times the
Executive’s “base amount” (as defined in Section 280G(b)(3) of the Code), such that a deduction
would not be allowed to the Company under Section 280G for all or any part of such payments, or if
the payments made hereunder would cause the Executive to be liable for tax under Section 4999 of
the Code then the parachute payments under this Agreement shall be reduced so that the aggregate
present value of such payments shall total one hundred dollars ($100.00) less than three times the
base amount. The purpose of such reduction is to ensure that the payments to the Executive will
not constitute a parachute payment within the meaning of Section 280G(b)(2) of the Code, that the
Company will be entitled to the maximum deduction for all amounts paid under this Agreement, and
that the Executive will not be subject to tax under Section 4999 of the Code. The Executive shall
have the right to receive the benefit of any amendments to Section 280G of the Code that increase
the amount that may be received without loss of the deduction to the Company.

     (b) Opinion of Counsel. In the event of any change in, or further interpretation of, Sections
280G or 4999 of the Code and the regulations promulgated thereunder, the Executive shall be
entitled by written notice to the Corporation to request an opinion of tax counsel regarding the
application of such change in any of the foregoing, and the Corporation shall use its best efforts
to cause such opinion to be rendered as promptly as practicable. All fees and expenses of tax
counsel incurred in connection with this Agreement shall be borne by the Corporation.

7

 

     10. Waiver and Release. As a condition to receiving any payments and benefits under
paragraphs 4, 6 and 7 hereunder, the Executive shall execute (and not later revoke) the Waiver and
Release Agreement on or within thirty (30) days after written request. The Corporation shall have
no obligation to make any payments or provide any benefits to the Executive hereunder unless and
until the effective date of the Waiver and Release Agreement, as defined therein.

     11. Corporation’s Setoff Rights. The payments and benefits made or provided to the Executive
or to the Executive’s spouse or other beneficiary under this Agreement shall be subject to setoff
by the Corporation by the amount of any claim of the Corporation against the Executive or the
Executive’s spouse or other beneficiary for any debt or obligation of the Executive or the
Executive’s spouse or other beneficiary to the Corporation.

     12. No Mitigation. The Executive shall have no duty to seek employment following termination
of employment or otherwise to mitigate damages. The amounts or benefits payable or available to
the Executive, the Executive’s spouse or other beneficiary under this Agreement shall not be
reduced by any amount the Executive may earn or receive from employment with another employer or
from any other source.

     13. Impact on Existing Severance and Benefit Plans. Payments or benefits under this Agreement
are in lieu of any payments or benefits to which the Executive may be entitled under any other
separation plan or policy of the Corporation, and shall be coordinated with the Executive’s
Employment Agreement, if any, such that the Executive shall receive the maximum amount of
separation pay available under either agreement, but shall not receive any duplication of benefits.
No provision in this Agreement shall be construed to reduce or impair the Executive’s rights and
benefits under such retirement or welfare plans, policies or arrangements. Payments and benefits
provided under paragraphs 4, 5, 6 or 7, however, shall not be considered eligible compensation, nor
shall the period attributable to such payments or benefits be considered eligible service, under
any retirement or welfare plan, policy or arrangement maintained by the Corporation.

     14. Non-Competition, Non-Solicitation, Non-Disparagement and Confidentiality. The Executive
agrees that:

     (a) During the Executive’s employment with the Corporation and during the Compensation Period,
the Executive shall not, either directly or indirectly be employed by or otherwise engaged by or
have any equity interest (other than ownership of 2% or less of the outstanding stock of any entity
listed on the New York or American Stock Exchange or any other recognized stock exchange or
included in the National Association of Securities Dealers Automated Quotation System) in any
business that is directly competitive with any business in which the Corporation or any of its
subsidiaries was involved or had under active consideration immediately prior to the Change in
Control and in which the Executive was engaged during his or her employment prior to a termination.

     (b) During the Executive’s employment with the Corporation and during the Compensation Period,
the Executive shall not, either directly or indirectly

8

 

	 	(i)	 	hire, offer to hire, entice away or in any other manner
persuade or attempt to persuade any officer, employee, consultant or agent of
the Corporation or any of its subsidiaries to alter or discontinue his or her
relationship with Corporation or its subsidiaries, other than general
advertisements not targeted at employees of the Corporation or its
subsidiaries;
	 
	 	(ii)	 	solicit, divert, or in any other manner persuade or attempt to
persuade any supplier of the Corporation or any of its subsidiaries to alter or
discontinue its relationship with the Corporation or any of its subsidiaries;
or
	 
	 	(iii)	 	solicit, divert, take away or attempt to solicit, divert or
take away any customers of the Corporation or its subsidiaries.

     (c) At all times during the Executive’s employment with the Corporation and during and after
the Compensation Period, the Executive will not divulge or appropriate to the Executive’s own use
or the use of others any secret or confidential information or knowledge pertaining to the business
of the Corporation, or any of its subsidiaries, obtained during his employment by the Corporation
or any of its subsidiaries; provided that this provision shall not apply to information that is or
becomes publicly available without breach by the Executive.

     (d) At all times during the Executive’s employment with the Corporation and during and after
the Compensation Period, the Executive will not publicly disparage the Corporation or its
subsidiaries or any of their respective directors, officers or employees. At all times, the
Corporation will not publicly disparage the Executive and will direct its officers and directors to
not publicly disparage the Executive.

     (e) The Corporation and the Executive agree that the provisions of this paragraph 14 do not
impose an undue hardship on the Executive and are not injurious to the public; that this provision
is necessary to protect the business of the Corporation and its subsidiaries; that the nature of
the Executive’s responsibilities with the Corporation have provided the Executive with access to
confidential information that is valuable and confidential to the Corporation and its subsidiaries;
that the Corporation would not enter into this Agreement if the Executive did not agree to the
provisions of this paragraph 14; that the scope of this paragraph 14 is reasonable in terms of
length of time and geographical scope; and that adequate consideration supports this paragraph 14.
In the event that a court determines that the geographical scope of this provision in unreasonably
broad or the length of time is unreasonably long, the Executive agrees that such Court should
narrow such provision to the extent necessary to make it reasonable and enforce the provision as
narrowed. Nothing in this Agreement restricts the Executive from responding to process of law. In
such a circumstance, the Executive must immediately notify the Corporation of such process in order
to enable the Corporation to seek protective relief if appropriate.

     (f) The Executive’s entitlement to benefits under this Agreement is conditioned upon the
Executive’s compliance with the provisions of this paragraph 14.

     15. Arbitration of All Disputes. Any controversy or claim arising out of or relating to this
Agreement or the breach hereof shall be settled by arbitration in the City of Chicago in accordance
with the laws of the State of Washington by three arbitrators, one of whom shall be

9

 

appointed by the Corporation, one of whom shall be appointed by the Executive and one of whom
shall be appointed by the first two arbitrators. The arbitration shall be conducted in accordance
with the rules of the American Arbitration Association, except with respect to the selection of
arbitrators which shall be as provided in this paragraph. Judgment upon the award rendered by the
arbitrators may be entered in any court having jurisdiction thereof. In the event that it shall be
necessary or desirable for the Executive to retain legal counsel or incur other costs and expenses
in connection with the enforcement of the Executive’s rights under this Agreement, the Corporation
shall pay the Executive’s reasonable attorneys’ fees and costs and expenses in connection with such
enforcement (including the enforcement of any arbitration award in court), regardless of the final
outcome, unless the arbitrators shall determine that under the circumstances recovery by the
Executive of any such fees, costs and expenses would be unjust. Notwithstanding any other
provisions of this Agreement regarding dispute resolution, including this paragraph 15, the
Executive agrees that Executive’s violation of any provision of paragraph 14 of this Agreement
(“Restrictive Covenants”) would cause the Corporation irreparable harm which would not be
adequately compensated by monetary damages and that an injunction may be granted by any court or
courts having jurisdiction, restraining the Executive from violation of the terms of this
Agreement, upon any breach or threatened breach of the Executive of the obligations set forth in
any of the Restrictive Covenants. The preceding sentence shall not be construed to limit the
Corporation from any other relief or damages to which it may be entitled as a result of the
Executive’s breach of any provision of this Agreement, including Restrictive Covenants.

     16. Indemnification and Insurance. All rights to indemnification by the Corporation now
existing in favor of the Executive as provided in the Articles of Incorporation or Bylaws of the
Corporation shall continue in full force and effect, and the Corporation shall also advance
expenses for which indemnification may ultimately be claimed as such expenses are incurred to the
fullest extent permitted under applicable law. After a Change in Control, the Corporation shall
not amend its Articles of Incorporation or Bylaws or any agreement in any manner which adversely
affects the rights of the Executive to indemnification thereunder. Any provision contained herein
notwithstanding, this Agreement shall not limit or reduce any rights of the Executive to
indemnification pursuant to applicable law. In addition, the Corporation will maintain directors’
and officers’ liability insurance, or purchase “tail coverage,” for a period of at least six years
for acts and omissions of the Executive through the date on which the Executive’s employment is
terminated, providing coverage comparable to the coverage in effect immediately prior to the Change
in Control.

     17. Notices. Any notices, requests, demands and other communications provided for by this
Agreement shall be sufficient if in writing and if sent by registered or certified mail, or
delivered by a nationally recognized overnight delivery service, postage or charges prepaid, to the
Executive at the last address he has filed in writing with the Corporation and to the Corporation
at its principal executive offices.

     18. Assignment. Neither the Corporation nor the Executive may assign this Agreement or any
rights, duties or obligations hereunder to any third party other than by operation of law or
merger, consolidation, reorganization or sale of the Corporation, without the other party’s
consent. The Corporation’s rights, duties and obligations under this Agreement shall be binding
obligations of any successor in interest to the Corporation to the fullest extent

10

 

enforceable by law. No interest of the Executive (or the Executive’s spouse or other
beneficiary), nor any right to receive any payment or distribution hereunder, shall be subject to
sale, transfer, assignment, pledge, attachment or garnishment or otherwise be assigned or
encumbered, and any attempt to do so shall be void. No such interest or right shall be taken,
voluntarily or involuntarily, for the satisfaction of the obligations or debts of, or other claims
against, the Executive (or the Executive’s spouse or other beneficiary), including claims for
alimony, child support, separate maintenance and claims in bankruptcy.

     19. Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the substantive laws of the State of Washington.

     20. Amendments. This Agreement may not be changed, waived or discharged orally, but only by
an instrument in writing, signed by the party against which enforcement of such change, waiver or
discharge is sought.

     21. Successors. This Agreement shall extend to and be binding upon the Corporation, its
successors and assigns. For purposes of this Agreement, unless the context otherwise requires,
references to the Corporation shall include its subsidiaries.

     22. Severability. In the event that any provision of this Agreement shall be determined to be
invalid or unenforceable for any reason, the remaining provisions of this Agreement shall be
unaffected thereby and shall remain in full force and effect.

     23. Headings. The headings of the paragraphs in this Agreement are solely for convenience or
reference and shall not control the meaning or interpretation of any provision of this Agreement.

     24. Entire Agreement. This Agreement including Annexes A and B constitutes the entire
agreement between the parties with respect to the subject matter hereof and supersedes all prior
agreements, written or oral, between the parties with respect to such subject matter.

[SIGNATURE PAGE TO FOLLOW]

11

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered
as of the date first above written.

	 	 	 	 	 
	 	 	PENFORD CORPORATION
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	Title	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	 	 	[Executive’s Name]

12

 

ANNEX A

PENFORD CORPORATION

WAIVER AND RELEASE AGREEMENT

     In consideration for the pay and benefits to be provided to me by Penford Corporation (the
“Corporation”) under the terms of paragraphs 4, 6 or 7 of the Penford Corporation Change in Control
Agreement entered into between me and the Corporation, dated
___, ___ (the “Agreement”),
I hereby acknowledge, understand and agree under this agreement (the “Release”) to the following:

	1.	 	In consideration of the foregoing, including, without limitation, payment to me of the
determined amounts under the Agreement, I hereby release the Corporation and all of its
partners, affiliates, parents, predecessors, successors, assigns, officers, members,
directors, trustees, employees, shareholders, agents, administrators, representatives,
attorneys, insurers or fiduciaries, past, present or future (collectively, the “Released
Parties”) from any claims, actions, causes of action, demands, obligations or damages of any
kind arising from my employment and the separation of that employment that I ever had or now
have upon or by reason of any matter, cause or thing, up to and including the day on which I
sign this Release (the “Claims”).
	 
	2.	 	The Claims I am waiving include, but are not limited to, my selection for termination, claims
of wrongful discharge, Claims for the payment of any salary, wages, bonuses or commissions,
Claims under common law or any federal or state statute, include Claims under Title VII of the
Civil Rights Act of 1964, as amended; Claims under the Americans with Disabilities Act; Claims
under the Age Discrimination in Employment Act (“ADEA”); all Claims under the Fair Labor
Standards Act; Claims under the National Labor Relations Act; all Claims under the Family and
Medical Leave Act; Claims relating to the Corporation’s intellectual property, confidential
and proprietary information and trade secrets; Claims of misrepresentation or detrimental
reliance, Claims for severance pay (other than for the separation pay and benefits payable
under the Agreement), Claims based on breach of contract, defamation, intentional infliction
of emotional distress, tort, personal injury, invasion of privacy, violation of public policy,
negligence or any other Claim for any type of relief, whether federal, state or local, whether
statutory, regulatory or common law or otherwise. This Release does not apply to any Claims
directly related to the enforcement of the Agreement, Claims which I may make under state
workers’ compensation or unemployment laws and/or any Claims I cannot waive as a matter of
law.
	 
	3.	 	I intend this Release to be binding on my successors and I specifically (i) waive any
applicable law (and confirm that I have no Claim under any law providing rights to employees)
and (ii) agree not to file or continue any Claim in respect of matters covered by this
Release. I further agree never to institute any suit, complaint, proceeding, grievance or
action of any kind at law, in equity, or otherwise in any court of the United States or in any
state, or in any administrative agency of the United States or any state,

A-1

 

	 	 	county or municipality, or before any other tribunal, public or private, against the
Corporation arising from or relating to my employment with or my termination of employment
from the Corporation and/or any other occurrences to the date of this Release, other than a
Claim challenging the validity of this Release under the ADEA.

	4.	 	I am further waiving my right to receive money or other relief in any action instituted by me
or on my behalf by any person, entity or governmental agency. Nothing in this Release shall
limit the rights of any governmental agency or your right of access to, cooperation or
participation with any governmental agency, including without limitation, the United States
Equal Employment Opportunity Commission. I further agree to waive my rights under any other
statute or regulation, state or federal, which provides that a general release does not extend
to Claims which the creditor does not know or suspect to exist in his favor at the time of
executing the release, which if known to him must have materially affected his settlement with
the debtor.
	 
	5.	 	I further acknowledge and agree that if I breach the provisions of paragraph 2, 3 or 4 above,
then (i) the Corporation shall be entitled to apply for and receive an injunction to restrain
any such breach, (ii) the Corporation shall not be obligated to continue payment of any pay or
benefits described in paragraph 4 of the Agreement, (iii) I shall be obligated to pay to the
Corporation its costs and expenses in enforcing this Release and defending against such
lawsuit (including court costs, expenses and reasonable legal fees), and (iv) as an
alternative to (iii), at the Corporation’s option, I shall be obligated upon demand to repay
to the Corporation all but $1,000.00 of the pay and benefits paid or made available to me
pursuant to paragraph 4 of the Agreement. I further agree that the foregoing covenants in
this paragraph 5 shall not affect the validity of this Release and shall not be deemed to be a
penalty or a forfeiture.
	 
	6.	 	In further consideration of the promises made by the Corporation in this Release, I
specifically waive and release the Corporation from all Claims I may have as of the date I
sign this Release arising under the ADEA. I further agree that:

	 	(a)	 	My waiver of rights under this Release is knowing and voluntary and in
compliance with the Older Workers Benefit Protection Act of 1990 (“OWBPA”);
	 
	 	(b)	 	I understand the terms of this Release;
	 
	 	(c)	 	The consideration offered by the Corporation under the Agreement in exchange
for the signing of this Release represents consideration over and above that to which I
would otherwise be entitled, and that the consideration would not have been provided
had I not signed or agreed in advance to sign this Release;
	 
	 	(d)	 	The Corporation is hereby advising me in writing to consult with an attorney at
my own expense prior to executing this Release;
	 
	 	(e)	 	The Corporation has given me a period of at least forty-five (45) days within
which to consider this Release;

A-2

 

	 	(f)	 	Following my execution of this Release, I have seven (7) days in which to
revoke this Release by written notice. An attempted revocation not actually received
by the Corporation prior to the revocation deadline will not be effective;
	 
	 	(g)	 	This entire Release shall be void and of no force and effect if I choose to so
revoke, and if I choose not to so revoke this Release shall then become effective and
enforceable; and
	 
	 	(h)	 	This Section 6 does not waive rights or claims that may arise under the ADEA
after the date I sign this Release. To the extent barred by the OWBPA, the covenant
not to sue contained in Section 3 does not apply to Claims under the ADEA that
challenge the validity of this Release.

	7.	 	To revoke this Release, I must send a written statement of revocation by registered or
certified mail, or delivered by a nationally recognized overnight delivery service, postage or
charges prepaid, to the Corporation at its principal executive offices. The revocation must
be received no later than 5:00 p.m. on the seventh day following my execution of this Release.
If I do not revoke, the eighth day following my acceptance will be the “effective date” of
this Release.
	 
	8.	 	I agree to cooperate fully with the Corporation, other Corporation affiliates, and their
legal counsel in connection with any disputes arising out of matters with which I was directly
or indirectly involved while serving as an employee of the Corporation. This cooperation
shall include, but shall not be limited to, meeting with, and providing information to, the
Corporation and its legal counsel, maintaining the confidentiality of any past or future
privileged communications with the Corporation legal counsel (outside and in-house counsel),
and making myself available to testify truthfully by affidavit, in depositions, or in any
other forum on behalf of the Corporation. The foregoing shall be reasonable and shall not
interfere unreasonably with my then employment. If and to the extent that the Corporation
shall require my assistance pursuant to this Section 8 after the Compensation Period as
defined in the Agreement, the Corporation shall pay me $250 per hour for such services.

[SIGNATURE PAGE TO FOLLOW]

A-3

 

     I acknowledge that I remain bound by, and reaffirm my intention to comply with, continuing
obligations under any agreements between myself and the Corporation, as presently in effect,
including, but not limited to, my confidentiality obligations.

* * *

     BY SIGNING THIS RELEASE, I ACKNOWLEDGE THAT: I HAVE READ THIS RELEASE AND UNDERSTAND ITS
TERMS; I HAVE HAD THE OPPORTUNITY TO REVIEW THIS RELEASE WITH LEGAL OR OTHER PERSONAL ADVISORS OF
MY OWN CHOICE; I UNDERSTAND THAT BY SIGNING THIS RELEASE I AM RELEASING THE RELEASED PARTIES OF ALL
CLAIMS AGAINST THEM; I HAVE BEEN GIVEN AT LEAST TWENTY-ONE DAYS TO CONSIDER THE TERMS AND EFFECT OF
THIS RELEASE; AND I VOLUNTARILY AGREE TO ITS TERMS.

SIGNED this _____________ day of _________________, 20___.

                                                                                

                    the Executive

A-4

 

Tier I — CEO and CFO

CHANGE IN CONTROL AGREEMENT

ANNEX B

SPECIFIC PROVISIONS APPLICABLE

TO

___
(“Executive”)

     This Annex B is attached to a Change in Control Agreement between Penford Corporation and the
undersigned Executive and contain specific provisions applicable to the Executive:

     “CIC Amount” shall mean an amount equal to the product of the sum of the Executive’s Base
Salary plus the Executive’s Average Target Attainment Bonus, times 2.5.

     “Compensation Period” shall mean the period between the Executive’s termination date and
thirty (30) months after such termination date.

     “Outplacement Period” shall mean a period of twelve (12) months.

     “Termination of the Executive’s Employment” shall also include:

(iii) termination by written notice from the Executive during the thirty (30) day
period beginning on the one-year anniversary of the date of the Change in Control,
provided that the Executive shall not have been previously terminated by the
Corporation for Cause or terminated his or her employment without Good Reason.

The following shall apply in lieu of Paragraph 9 of the attached Change in Control Agreement.

9. Section 280G Tax Payment.

     (b) Excise Tax. If any payment made or benefit provided to the Executive under paragraphs 4,
5, 6 or 7 (a “Termination Payment”) is subject to an excise tax under Section 4999 of the Code (the
“Excise Tax”), the Corporation (or successor) shall pay an additional amount to the Executive in a
single sum (the “Gross-Up Payment”), so that the net amount of the Termination Payment received by
the Executive is not reduced by the Excise Tax (or by any interest penalties or additions thereto
required to be paid by the Executive).

     (c) Gross-Up Payment. The Gross-Up Payment shall be an amount equal to the sum of (i) the
Excise Tax (plus any interest, penalties or additions thereto required to be paid by the Executive)
on the Termination Payment and (ii) the additional Excise Tax and additional federal, state and
other income taxes (plus any interest, penalties or additions on all such amounts required to be
paid by the Executive) owing on the amount received under clause (i) and owing

B-1

 

Tier I — CEO and CFO

on the amount received under this clause (ii). The Gross-Up Payment shall be determined at
the expense of the Corporation by a nationally recognized firm of certified public accountants
selected by the Corporation. The Gross-Up Payment shall be based on the following assumptions:

	 	(i)	 	All payments and benefits making up the Termination Payment
shall be deemed “parachute payments” within the meaning of Section 280G(b)(2)
of the Code, and all “excess parachute payments” shall be deemed to be subject
to the Excise Tax, except to the extent that independent tax counsel selected
by the Corporation opines that such payments or benefits are not subject to the
Excise Tax.
	 
	 	(ii)	 	The Executive shall be deemed to pay federal, state and other
income taxes at the highest marginal rate of taxation applicable to the
Executive for the applicable calendar year.

     (d) Payment of Gross-Up. An estimated Gross-Up Payment shall be made to the Executive no
later than thirty (30) business days following the effective date of the Waiver and Release
Agreement as defined therein. In the event the estimated Gross-Up Payment is less than the amount
actually due to the Executive under this paragraph 9, the amount of any shortfall shall be paid to
the Executive within ten (10) business days after the determination of the shortfall. Any
overpayment, or amount refunded to the Executive resulting from an overpayment of the Gross-Up
Payment, shall be paid to the Corporation within ten (10) business days after the determination of
the overpayment or receipt of the refund.

     (e) Opinion of Counsel. In the event of any change in, or further interpretation of, sections
280G or 4999 of the Code and the regulations promulgated thereunder, the Executive shall be
entitled by written notice to the Corporation to request an opinion of tax counsel regarding the
application of such change in any of the foregoing, and the Corporation shall use its best efforts
to cause such opinion to be rendered as promptly as practicable. All fees and expenses of tax
counsel incurred in connection with this Agreement shall be borne by the Corporation.

[SIGNATURE PAGE TO FOLLOW]

B-2

 

Tier I — CEO and CFO

     The execution of this Annex B to the Change in Control Agreement is hereby acknowledged this
___day of ___, 2006.

	 	 	 	 	 
	 	 	PENFORD CORPORATION
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	Title	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	 	 	[Executive’s Name]

     Principal Residence:

     Principal Place of Employment:

Executive agrees to promptly notify the Corporation of any change in his or her principal
residence or principal place of employment.

B-3

 

Tier II
— 30 or 24 months

CHANGE IN CONTROL AGREEMENT

ANNEX B

SPECIFIC PROVISIONS APPLICABLE

TO

___
(“Executive”)

     This Annex B is attached to a Change in Control Agreement between Penford Corporation and the
undersigned Executive and contains specific provisions applicable to the Executive:

     “CIC Amount” shall mean an amount equal to the product of the sum of the Executive’s Base
Salary plus the Executive’s Average Target Attainment Bonus, times 2.0.

     “Compensation Period” shall mean the period between the Executive’s termination date and
twenty-four (24) months after such termination date.

     “Outplacement Period” shall mean a period of six (6) months.

     The execution of this Annex B to the Change in Control Agreement is hereby acknowledged this
___ day of ___, 2006.

	 	 	 	 	 
	 	 	PENFORD CORPORATION
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	Title	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	 	 	[Executive’s Name]

     Principal Residence:

     Principal Place of Employment:

Executive agrees to promptly notify the Corporation of any change in his or her principal
residence or principal place of employment.

B-1

 

Tier III
— 12 months

ANNEX B

SPECIFIC PROVISIONS APPLICABLE

TO

___
(“Executive”)

     This Annex B is attached to a Change in Control Agreement between Penford Corporation and the
undersigned Executive and contains specific provisions applicable to the Executive:

     “CIC Amount” shall mean an amount equal to the product of the sum of the Executive’s Base
Salary plus the Executive’s Average Target Attainment Bonus.

     “Compensation Period” shall mean the period between the Executive’s termination date and
twelve (12) months after such termination date.

     “Outplacement Period” shall mean a period of six (6) months.

     The execution of this Annex B to the Change in Control Agreement is hereby acknowledged this
___day of ___, 2006.

	 	 	 	 	 
	 	 	PENFORD CORPORATION
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	Title	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	 	 	[Executive’s Name]

     Principal Residence:

     Principal Place of Employment:

Executive agrees to promptly notify the Corporation of any change in his or her principal
residence or principal place of employment.

B-1

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