Document:

THIRD LOAN MODIFICATION AGREEMENT

         This Third Loan Modification Agreement (this "Loan Modification
Agreement") is entered into as of November 11, 2006, by and between SILICON
VALLEY BANK, a California-chartered bank, with its principal place of business
at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production
office located at 535 Fifth Avenue, 27th Floor, New York, New York 10017
("Bank") and AXS-ONE INC., a Delaware corporation with its chief executive
office located at 301 Route 17 North, Rutherford, New Jersey 07070 ("Borrower").

1.       DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other
indebtedness and obligations which may be owing by Borrower to Bank, Borrower is
indebted to Bank pursuant to a loan arrangement dated as of September 13, 2005,
evidenced by, among other documents, a certain Amended and Restated Loan and
Security Agreement dated as of September 13, 2005, between Borrower and Bank, as
amended by a certain First Loan Modification Agreement dated as of March 14,
2006, between Borrower and Bank, and as further amended by a certain Second Loan
Modification Agreement dated as of October 31, 2006, between Borrower and Bank
(as amended, the "Loan Agreement"). Capitalized terms used but not otherwise
defined herein shall have the same meaning as in the Loan Agreement.

2.       DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by
the Collateral as described in the Loan Agreement and the Intellectual Property
Collateral as described in a certain Intellectual Property Security Agreement
dated as of October 31, 2006 (the "IP Security Agreement") (together with any
other collateral security granted to Bank, the "Security Documents").

Hereinafter, the Security Documents, together with all other documents
evidencing or securing the Obligations shall be referred to as the "Existing
Loan Documents".

3.       DESCRIPTION OF CHANGE IN TERMS.

         A.    Modifications to Loan Agreement.

               1     The Loan Agreement shall be amended by deleting the
                     following, appearing as Section 4 of the Schedule to the
                     Loan Agreement:

                       "SECTION 1       CREDIT LIMIT
                       ----------

                       (Section 1.1):   An amount not to exceed the lesser of
                                        (A) or (B), below:

                                  (A)   (i)   $2,000,000.00 (the "Maximum
                                              Credit Limit"); minus

                                  (ii)         the aggregate amounts then
                                  undrawn on all outstanding letters of
                                  credit, foreign exchange contracts, or any
                                  other accommodations issued or incurred, or
                                  caused to be issued or incurred by Silicon
                                  for the account and/or benefit of the
                                  Borrower.

                                  (B)   (i)   70.0% of the amount of the
                                  Borrower's Eligible Accounts; minus

                                        (ii)  the aggregate amounts then
                                  undrawn on all outstanding letters of
                                  credit, foreign exchange contracts, or any
                                  other accommodations issued or incurred, or
                                  caused to be issued or incurred by Silicon
                                  for the account and/or benefit of the
                                  Borrower.

                                  Silicon may, from time to time, modify the
                                  advance rate(s) set forth herein in its good
                                  faith business judgment upon notice to
                                  Borrower based on changes in collection
                                  experience with respect to the Accounts or
                                  other issues or factors relating to the
                                  Accounts or the Collateral.

                                        Letter of Credit/Foreign Exchange
                                        Contract/Cash Management Services
                                        Sublimit

                                        (Section 1.6, 1.7, 1.8): $1,000,000.00"

                     and inserting in lieu thereof the following:

                       "SECTION 1       CREDIT LIMIT
                       ----------

                       (Section 1.1):   An amount not to exceed the lesser of
                                        (A) or (B), below:

                                  (A)   (i)   $4,000,000.00 (the "Maximum
                                              Credit Limit"); minus

                                  (ii)  the aggregate amounts then undrawn on
                                  all outstanding letters of credit, foreign
                                  exchange contracts, or any other
                                  accommodations issued or incurred, or caused
                                  to be issued or incurred by Silicon for the
                                  account and/or benefit of the Borrower.

                                  (B)   (i)   70.0% of the amount of the
                                  Borrower's Eligible Accounts; minus

                                  (ii)  the aggregate amounts then undrawn on
                                  all outstanding letters of credit, foreign
                                  exchange contracts, or any other
                                  accommodations issued or incurred, or caused
                                  to be issued or incurred by Silicon for the
                                  account and/or benefit of the Borrower.

                       Silicon may, from time to time, modify the advance
                       rate(s) set forth herein in its good faith business
                       judgment upon notice to Borrower based on changes in
                       collection experience with respect to the Accounts or
                       other issues or factors relating to the Accounts or the
                       Collateral.

                                  Letter of Credit/Foreign Exchange Contract/
                                  Cash Management Services Sublimit

                                  (Section 1.6, 1.7, 1.8): $1,000,000.00"

B.       Acknowledgment of Default; Forbearance by Bank.  Borrower acknowledges
         that it is currently in default under the Loan Agreement by its
         failure to comply with (i) the financial covenant set forth in
         subsection (a) of Section 5 of the Schedule to the Loan Agreement
         (relative to Borrower's Adjusted Quick Ratio) as of the months ended
         July 31, 2006, August 31, 2006 and September 30, 2006, and (ii) the
         financial covenant set forth in subsection (b) of Section 5 of the
         Schedule to the Loan Agreement (relative to Borrower's EBITDAS) as of
         the quarter ended September 30, 2006 (the "Defaults"). Bank, however,
         hereby agrees to forbear from exercising its rights and remedies with
         respect to the Defaults until the earlier to occur of (i) an Event of
         Default under the Loan Agreement (other than the failure of the
         Borrower to comply with the above covenants) or (ii) December 10,
         2006. The Borrower hereby acknowledges and agrees that except as
         specifically provided herein, nothing in this Section or anywhere in
         this Loan Modification Agreement shall be deemed or otherwise
         construed as a waiver by the Bank of any of its rights and remedies
         pursuant to the Existing Loan Documents, applicable law or otherwise.

4.       FEES. Borrower shall reimburse Bank for all legal fees and expenses
incurred in connection with this amendment to the Existing Loan Documents.

5.       RATIFICATION OF IP SECURITY AGREEMENT. Borrower hereby ratifies,
confirms and reaffirms, all and singular, the terms and conditions of the IP
Security Agreement and acknowledges, confirms and agrees that the IP Security
Agreement contains an accurate and complete listing of all Intellectual Property
Collateral as defined therein.

6.       RATIFICATION OF PERFECTION CERTIFICATE. Borrower hereby ratifies,
confirms and reaffirms, all and singular, the terms and disclosures contained in
a certain Perfection Certificate dated as of August 11, 2004 between Borrower
and Bank, and acknowledges, confirms and agrees the disclosures and information
Borrower provided to Bank in the Perfection Certificate have not changed, as of
the date hereof.

7.       CONSISTENT CHANGES. The Existing Loan Documents are hereby amended
wherever necessary to reflect the changes described above.

8.       RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and
reaffirms all terms and conditions of all security or other collateral granted
to the Bank, and confirms that the indebtedness secured thereby includes,
without limitation, the Obligations.

9.       NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that
Borrower has no offsets, defenses, claims, or counterclaims against Bank with
respect to the Obligations, or otherwise, and that if Borrower now has, or ever
did have, any offsets, defenses, claims, or counterclaims against Bank, whether
known or unknown, at law or in equity, all of them are hereby expressly WAIVED
and Borrower hereby RELEASES Bank from any liability thereunder.

10.      CONTINUING VALIDITY. Borrower understands and agrees that in modifying
the existing Obligations, Bank is relying upon Borrower's representations,
warranties, and agreements, as set forth in the Existing Loan Documents. Except
as expressly modified pursuant to this Loan Modification Agreement, the terms of
the Existing Loan Documents remain unchanged and in full force and effect.
Bank's agreement to modifications to the existing Obligations pursuant to this
Loan Modification Agreement in no way shall obligate Bank to make any future
modifications to the Obligations. Nothing in this Loan Modification Agreement
shall constitute a satisfaction of the Obligations. It is the intention of Bank
and Borrower to retain as liable parties all makers of Existing Loan Documents,
unless the party is expressly released by Bank in writing. No maker will be
released by virtue of this Loan Modification Agreement.

11.      COUNTERSIGNATURE. This Loan Modification Agreement shall become
effective only when it shall have been executed by Borrower and Bank.

            [The remainder of this page is intentionally left blank]

         This Loan Modification Agreement is executed as of the date first
written above.

BORROWER:                                        BANK:

AXS-ONE INC.                                     SILICON VALLEY BANK

By:      /S/ Joseph P. Dwyer                     By:      /S/ Jay T. Tracy
   ---------------------------------                ----------------------

Name:     Joseph P. Dwyer                        Name:    Jay T. Tracy
     -------------------------------                  ----------------

Title:   Chief Financial Officer                 Title:   Vice President
      ------------------------------                   -----------------exv10w32

 

EXHIBIT 10.32

	 	 	 
	

	 	NEW JOBS LOAN AGREEMENT

JSND /WORKFORCE SOLUTIONS

SFN 58217(02-06)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	ADMINISTRATOR	 	 	 	COMPANY
	Job Service North Dakota	 	 	 	Red Trail Energy, LLC
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	1000 East Divide Ave / P.O. Box 5507	 	3682 Highway 8 South
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Bismarck

	 	North Dakota
	 	58506-5507
	 	Richardton
	 	ND
	 	 	58652	 

Project Number ND-018-06

This North Dakota New Jobs Training Agreement (the Agreement) is made and entered into as of
September 11, 2006, (the Effective Date) between Job Service North Dakota, an agency of the state
of North Dakota, (the Administrator) located at 1000 East Divide Avenue, P.O. Box 5507, Bismarck,
North Dakota, and Red Trail Energy LLC, a ND corporation (the Employer).

	A.	 	Pursuant to Chapter 52-02.1 of the North Dakota Century Code, (the Act) the Administrator
has determined to enter into this Agreement with the Employer for the purpose of establishing
a Project (the Project) (as defined in the Act), whereby the Employer will hire, educate, and
train approximately 33 employees (the New Employees) to perform manufacturing of fuel at its
Richardton, ND location.

	B.	 	The Administrator and the Employer are parties to a Preliminary North Dakota New Jobs
Training Agreement dated September 11, 2006, (the Preliminary Agreement).

	C.	 	First National Bank (the Lender) located at 1620 Dodge Street, Omaha NE, 68197, has notified
the Administrator that the Employer has qualified for a loan (the Loan) to fund training (the
Training) identified in the Project to be provided to Employees filling new job positions
created under this Agreement.

Now, therefore, in consideration of the premises and mutual representations and agreements
hereinafter contained and intending to be legally bound hereby, the parties agree as follows:

ARTICLE 1

Representations, Warranties, and Covenants

	1.1	 	Representations. Warranties, and Covenants of the Administrator. The
Administrator represents, warrants, and covenants that:

	 	a.	 	The Administrator is a state agency duly organized and validly existing
under the laws of the state of North Dakota (the State).

 

	 	b.	 	The Administrator has all requisite power, authority, and legal right to
execute, deliver, and perform this Agreement.
	 
	 	c.	 	This Agreement has been duly executed and delivered on behalf of the Administrator.
	 
	 	d.	 	Upon the execution of this Agreement, the Administrator shall notify the State
Tax Commissioner, pursuant to Section 52-02.1-02 of the Act, of the existence of this
Agreement and the identity of the Employer by providing the State Tax Commissioner with
a copy of the executed Agreement.

	1.2	 	Representations, Warranties, and Covenants of the Employer. The Employer
represents, warrants, and covenants that:

	 	a.	 	The Employer is a corporation duly organized and validly existing under the
laws of the State of North Dakota and is qualified to do business in the State of North
Dakota.
	 
	 	b.	 	The Employer has all requisite powers, authority, and legal right to execute,
deliver, and perform this Agreement.
	 
	 	c.	 	The execution, delivery, and performance of this Agreement by the Employer has
been duly authorized by all necessary corporate action.
	 
	 	d.	 	This Agreement has been duly executed and delivered on behalf
of the Employer by its duly authorized representatives.
	 
	 	e.	 	The execution, delivery, and performance of this Agreement by the Employer does
not violate or conflict with: (i) any existing law, ordinance, or governmental rule
or regulation to which the Employer is subject, (ii) any provision of the Employer’s
charter or bylaws, or (iii) any term, condition, or provision of any
indenture, agreement, mortgage, or lease, or any other restriction, obligation, or
instrument to which the employer is a party or by which it is bound except for any such
violation or conflict that would not have a material adverse affect on the business of
the employer.
	 
	 	f.	 	The base employment level (as defined in the Act) of the Employer in the State in
connection with the Project as of the Effective Date was 6 full-time jobs.
	 
	 	g.	 	Subject to Section 2.10 below, the total number of new job positions filled or to
be filled by the Employer during the Project (the New Positions) is set forth on Exhibit
A, all of which positions are being created in connection with the expansion of the
Employer’s business operations in the state, which are located at 3682 Highway 8 S,
Richardton, ND 58652.
	 
	 	h.	 	None of the individuals filling new job positions created under this agreement
had commenced work as full-time employees in those new job positions as of the
Effective Date.
	 
	 	i.	 	Until the Loan has been paid in full, the Employer shall pay the New Employees
being employed in new job positions covered under this Agreement an annual rate not
less than $7.50 per hour plus benefits within the first 12 months of employment in a
new job position covered under this Agreement.

2

 

ARTICLE 2

Project, Program Service, Program Costs, Loan Repayment

	2.1	 	Project Duration. The commencement date of the Project is the Effective Date,
and the completion date of the Project is September 11, 2016.

	2.2	 	Program Services. The Project program service covered under this Agreement shall
consist of on-the-job training and classroom training activities provided by or for the
Employer for the purpose of educating and training the New Employees. The Training shall
consist of:

On-the-job / classroom training as set forth in Exhibit A.

	2.3	 	Program Costs. The program costs (as defined in the Act) anticipated to be
incurred by the Employer in connection with the Project, including the deferred costs to be
paid pursuant to the Loan, are identified in Exhibits A and B. The Employer agrees to pay,
or cause to be paid, such program costs as follows:

	 	a.	 	The actual costs incurred or to be incurred in connection with providing
the Training pursuant to Section 2.2 above shall be paid directly by the Employer.
	 
	 	b.	 	An amount of $8,491.00 shall be paid to the Administrator from the proceeds
of the Loan in full payment for all of the Administrator’s costs incurred or to be
incurred by the Administrator in connection with the Project. This Administration Fee
is five percent of the total State income tax withholding allowable
for this project.
	 
	 	b.	 	The state income tax withholding on wages paid by the Employer for each New
Employee under this Agreement shall be paid by the Employer to the State Tax
Commissioner in accordance with applicable law, which payments shall permit the
repayment of the Loan through the new jobs credit from income tax withholding (as
defined in the Act) pursuant to Section 52-02.1-03 of the Act. If the amount of such
income tax withholding is insufficient to pay in full any installment due and payable
under the note evidencing the loan (the Note), or any installment due and payable
under the Note shall not have been made timely in accordance with Section 52-02.1-03
of the Act, the Note, and Section 2.8 below, the Lender shall so notify the Employer
in writing (any such notice, an Insufficiency Notice), within ten business days after
the receipt by the Employer of a duly issued Insufficiency Notice, the Employer shall
pay or cause to be paid to the Lender the amount of such insufficiency, which payment
if made within such ten business day period, shall be deemed timely made and shall
not constitute a default under the Note.

	1.3	 	Maximum Deferral of Program Cost Payments. The deferral of program cost payments
through the new jobs credit from withholding (as defined in the Act) shall not exceed ten
years from the Effective Date, provided that payments in respect of any such credits accrued
prior to the tenth anniversary of the Effective Date may be made thereafter to pay any
amounts due and owing under the Note.

	1.3	 	Maximum On-the-Job Training Costs. The on-the-job training costs for the Project
shall not exceed 50 percent of the gross wages paid by the Employer to the New Employees in
the first full calendar year after the Effective Date.

	2.4	 	The Maximum New Jobs Credit From Withholding. The maximum new jobs credit from
withholding (as defined in the Act) allowed for the Project shall be $169,813.00.

	2.7	 	Assessment of Project. The Administrator shall have the right to monitor the
Training under this Agreement at reasonable times and intervals upon prior written notice to
the Employer.

3

 

	2.8	 	Procedures for Loan Repayment: New Jobs Credit From Withholding. Pursuant to
Section 52-02.1-03 of the Act, until the Loan shall have been repaid in full, the Loan
shall be repaid by receipt of the new jobs credit from withholding, subject to the
obligations of the Employer to make payments pursuant to any duly issued insufficiency
Notice as set forth in Section 2.3(c) above.

	2.9	 	Additional Tax Information.

The Employer has executed and delivered to the Administrator an Authorization To
Disclose Tax Information and Designation of Representative, Form 500, authorizing
the State Tax Commissioner to release to the Administrator and the State Treasurer
information regarding the Employer’s delinquency or Failure to pay any income tax
withholding required to be paid by the state.

	 	b.	 	The Employer shall provide such other information as the State Tax
Commissioner may require by law.

	2.10	 	 Right to Renegotiate Regarding Fewer New Employees. If the Employer, for any
reason
whatsoever anticipates that fewer than 33 New Employees shall have been hired by
September 11, 2008, the Employer shall so notify the Administrator in
writing (any such notice, a Renegotiation Notice), specifying the number of New Employees
that shall be hired by September 11, 2008. Within ten days after receipt of a
Renegotiation Notice, the Administrator shall reasonably determine, in accordance with the
provisions of this Section 2.9, the reduced maximum amount of the new jobs credit from
withholding that will be allowed for the Project (the Reduced Maximum), and shall so
notify the Employer in writing (any such notice, a Renegotiation Response). The Reduced
Maximum shall be calculated, based upon the reduced number of New Employees set forth in
the Renegotiation Notice, pursuant to the procedures set forth in Exhibit A that the
Administrator used to calculate the maximum set forth in Section 2.6 above. An amendment
to the terms of this Agreement shall be affected pursuant to this Section 2.10 as follows:

	 	a.	 	If, within ten days after receipt of a Renegotiation Response, the Employer
accepts the terms or does not respond, this agreement shall thereupon be deemed to be
amended so that the number of New Employees to be hired by September 11, 2008, shall be
the number set forth in the Renegotiation Notice, and the reduced maximum amount of the
new jobs credit from withholding that will be allowed for the Project will be as set
forth in the Renegotiation Response.
	 
	 	b.	 	If, within ten days after receipt of a Renegotiation Response, the Employer
objects to the terms, the Administrator and the Employer shall use their best efforts
to avoid a termination of this agreement and to enter into an amendment to this
Agreement that, in light of the changed circumstances, will result in each party
realizing, as nearly as possible, the anticipated benefits of this Agreement.

Upon any amendment to this Agreement being affected pursuant to this Section 2.10, the
Administrator shall so notify the State Tax Commissioner and State Treasurer in writing.

4

 

	2.11	 	Right to Renegotiate Regarding Additional New Employees. If the Employer, for
any reason whatsoever, anticipates that more than 33 New Employees shall have been hired
by September 11, 2008 the Employer shall so notify the Administrator in writing (any such
notice, a Renegotiation Notice), specifying the number of New Employees that shall be
hired by September 11, 2008.
	 
	 	 	Within ten days after receipt of a Renegotiation Notice, the Administrator shall
reasonably determine, in accordance with the provisions of this Section 2.9, the increased
maximum amount of the new jobs credit from withholding that will be allowed for the
Project (the Increased Maximum), and shall so notify the Employer in writing (any such
notice, a Renegotiation Response). The Increased Maximum shall be calculated, based upon
the additional number of New Employees set forth in the Renegotiation Notice, pursuant to
the procedures set forth in Exhibit A that the Administrator used to calculate the maximum
set forth in Section 2.6 above. An amendment to the terms of this Agreement shall be
affected pursuant to this Section 2.11 as follows:

	 	a.	 	If within ten days after receipt of a Renegotiation Response, the Employer
accepts the terms, or does not respond, this agreement shall thereupon be deemed to
be amended so that the number of New Employees to be hired by September 11, 2008,
shall be the number set forth in the Renegotiation Notice and the increased maximum
amount of
the new jobs credit from withholding that will be allowed for the Project will be as
set forth in the Renegotiation Response.
	 
	 	a.	 	If within ten days after receipt of a Renegotiation Response, the Employer
objects to the terms, the Administrator and the Employer shall use their best
collaborative efforts to avoid a termination of this agreement and to enter into an
amendment to this Agreement that, in light of the changed circumstances, will result
in each party realizing, as nearly as possible, the anticipated benefits of this
Agreement.

Upon any amendment to this Agreement being affected pursuant to this Section 2.11, the
Administrator shall so notify the State Tax Commissioner and State Treasurer in writing.

ARTICLE 3

Term and Termination

	2.0	 	Term. This Agreement shall become effective as of the Effective Date and shall
continue in affect until all payments shall have been made pursuant to Sections 2.3 (c) and
2.4 above, or such earlier date as the Loan shall have been repaid in full, unless earlier
terminated pursuant to this Article III.

	3.2	 	Termination by the Administrator. This Agreement may be terminated by the
Administrator in accordance with the provisions of this Section 3.2 if any of the following
events, shall occur as a result of any cause other than force majeure (as described in
Section 3.3 below):

	 	a.	 	The Employer fails to hire 33 New Employees by September 11, 2008, except in
accordance with Section 2.10 above.

5

 

	 	b.	 	The Employer fails in any material respect to provide the Training to the
New
Employees in accordance with this Agreement.
	 
	 	c.	 	Prior to the completion date of the Project, the Employer ceases or announces
the
cessation of the Project in the State, unless the Project is transferred to another
facility in the State and the Administrator receives reasonable assurances that all
amounts then payable under the Note will be paid when due.
	 
	 	d.	 	The Employer makes any material representation, warranty, or statement in this
Agreement, or any other document required to be provided to the
Administrator pursuant to
this Agreement, which, in light of the circumstances in which such representation,
warranty, or statement was made, was false or misleading in any material respect, and is
not subsequently corrected by the Employer.
	 
	 	e.	 	The Employer fails to pay, or cause to be paid when due, the amount required to
be paid to the Administrator pursuant to Section 2.3(b) above.
	 
	 	f.	 	The Employer files in any court or agency, pursuant to any statute or regulation
of any state or the United States, a petition in bankruptcy or insolvency or for
reorganization or for the appointment of a receiver or trustee of its assets; the
Employer is served with an involuntary petition against it, filed in any insolvency
proceeding, and such petition shall not be dismissed within 90 days after the filing;
or the Employer proposes or is a party to any dissolution or liquidation or makes an
assignment for the benefit of its creditors.
	 
	 	g.	 	The Employer fails to file any tax return or report required to be filed by the
State or to pay when due any taxes which have become due and payable to the State,
except such as are being contested in good faith and by proper proceedings. Prior to
affecting a termination pursuant to this Section 3.2, the Administrator shall so
notify the Employer in writing (any such notice, a Termination Notice), setting forth
the reasons. Commencing upon receipt of a Termination Notice, the Administrator and the
Employer shall have a period of 30 days in which to reconcile the issues relating to the
event, giving rise to the Termination Notice. If, at the end of the 30-day period,
the Administrator shall reasonably determine that such reconciliation has not been, or
cannot be achieved, the Administrator may affect the termination of this Agreement by
delivery of a final written notice (the Final Termination Notice) to the Employer, the
Lender, the State Tax Commissioner, and the State Treasurer. The Final Termination
Notice shall provide for the suspension of the repayment of the Loan through the new
jobs credit from income tax withholding pursuant to Section 52-02.1-03 of the Act.

	3.3	 	Force Majeure. No failure by the Employer to perform any of its obligations in
connection with this Agreement (other than the failure to make required payments) shall give
rise to a right of termination by the Administrator pursuant to Section 3.2 above, or
subject the Employer to any liability if such failure results from any cause beyond the
reasonable control of the Employer, including without limitation: acts of God; fire;
explosion; flood; drought; war; riot; sabotage; embargo: strikes or other labor disputes;
failure of suppliers to deliver on schedule: materials, equipment, or machinery;
interruption of or delay in transportation; a national health emergency; or compliance with
any order or regulation of any government entity.

6

 

3.4 Termination by the Employer. This Agreement may be terminated by the Employer
in accordance with the provisions of this Section 3.4 if the Loan is not repaid through the
new jobs credit from income tax withholding as provided in this Agreement and none of the
events specified in Section 3.2 above shall have occurred and be
continuing. The Employer
may affect such termination by so notifying the Administrator in writing setting forth the
reasons therefore.

ARTICLE 4

General Provisions

	4.1	 	Compliance With Laws and Rules. The Employer and the Administrator shall each comply
with the requirements of the Act and the rules promulgated, and with all other applicable
state laws, orders, policies, and regulations. The Administrator shall provide notice to the
Employer of any amendments to the Act, and within 30 days after receipt of any such notice,
the Employer shall comply with the amendments set forth therein or provide notice to the
Administrator of the Employer’s inability to comply with such amendments.

	4.2	 	Entire Agreement: Amendment. This Agreement contains the entire understanding of the
parties with respect to the subject matter and supersedes all previous verbal and written
agreements with respect to such subject matter. Except as otherwise provided in Section
2.10 above, this Agreement may be amended only by a written agreement signed by an officer
or other authorized representative of the party against whom enforcement of the amendment
is sought.

	4.3	 	Assignment: Successors and Assigns. The Employer may not assign this Agreement or
any of its rights or obligations hereunder except to a wholly owned subsidiary of the Employer
or a successor to all or substantially all of the Employer’s business, or otherwise with the
written consent of the Administrator. This Agreement shall be binding upon and inure to the
benefit of the successors and assigns of the parties.

	4.4	 	No Agency. It is understood that the Employer shall have the status of an
independent contractor under this Agreement and that nothing in this Agreement shall be
construed as authorization for either party to act as an agent for the other party.

	4.5	 	Notices. All notices or other communications required under this agreement shall be
in writing and deemed duly given upon receipt if delivered in person or by registered or
certified mail, postage prepaid, return receipt requested, or by any recognized overnight
delivery service, addressed as follows:

7

 

	 	 	 
	If to the Employer, to:

	 	Red Trail Energy, LLC
	 

	 	Attention Mick Miller
	 

	 	3682 Highway 8 South
	 

	 	Richardton, ND 58562
	 
	 	 
	If to the Administrator, to:
	 	 
	 

	 	Job Service North Dakota
	 

	 	Attention Executive Director
	 

	 	1000 East Divide Avenue
	 

	 	P.O. Box 5507
	 

	 	Bismarck, North Dakota 58506-5507
	 
	 	 
	If to the Lender, to:
	 	 
	 

	 	First National Bank
	 

	 	Chris Reiner / Andrew Wong
	 

	 	1620 Dodge St
	 

	 	Omaha, NE 68197
	 
	 	 
	If to the State Treasurer, to:
	 	 
	 

	 	North Dakota State Treasurer
	 

	 	State Capitol
	 

	 	600 East Boulevard Avenue
	 

	 	Bismarck, North Dakota 58505
	 
	 	 
	If to the State Tax Commissioner, to:
	 	 
	 

	 	North Dakota State Tax Commissioner
	 

	 	State Capitol
	 

	 	600 East Boulevard Avenue
	 

	 	Bismarck, North Dakota 58505

8

 

	4.6	 	References to Sections and Exhibits. All references in this Agreement to a section or
exhibit shall be deemed to refer to a section or exhibit to this Agreement unless the context
requires otherwise.
	 
	4.7	 	Terms Defined in the Act. All terms used in this Agreement and defined in the Act
shall be deemed to be used in this Agreement as defined in the Act unless the context requires
otherwise.
	 
	4.8	 	Counterparts. This Agreement shall become binding when any one or more counterparts,
individually or taken together , has been executed on behalf of both of the parties.
	 
	4.9	 	Equal Opportunity. No individual shall be excluded from participation in, denied
the benefits of, subject to discrimination under, or denied employment in the administration
or in connection with the Project because of race , color , disability , or political
affiliation or belief. The Employer will take affirmative action to ensure that applicants for
the New Positions are employed , and that employees are treated during their employment by the
Employer without regard to their race , color , religion , national origin , handicap , age,
sex, political affiliation or belief, or citizenship.
	 
	4.10	 	Governing Law. The validity, performance, construction , and affect of this Agreement
will be governed by the laws of the state of North Dakota without giving affect to the
principles of conflicts of law.

IN WITNESS WHEREOF, the Administrator and the Employer each have caused this Agreement to be
executed on its behalf by a duly authorized officer as of the Effective Date.

	 	 	 	 
	Job Service North Dakota

	 	Red Trail Energy, LLC	 
	 
	 	 	 
	Signature

	 	Signature	 
	 
	 	 	 
	/s/ Maren Daley

	 	/s/ Mick Miller	 
	Maren Daley

	 	Mick Miller	 
	 
	 	 	 
	Executive Director

	 	President & CEO	 
	 
	 	 	 
	Date 9/21/06

	 	Date 9-21-06	 

9

 

Exhibits to be Attached

Exhibit A

          Training Proposal

          Table of Contents

Introduction

Staffing Projection and Withholding Credits

Training Plan

Exhibit B

          Budget Summary

10

 

Exhibit A

TRAINING PROPOSAL

Red Trail Energy, LLC, the Employer

11

 

Table of Contents

Exhibit A

Introduction

Withholding Credit Projection and Position Creation Schedule

Training Plan

Exhibit B

Budget Summary

12

 

Introduction

			
	Need:	 	To provide training to new employees of Red Trail Energy, LLC hired as a result of new job
expansion in Richardton, North Dakota.

			
	Objective:	 	To train a new work force of approximately 33 employees in North Dakota.

			
	Strategies:	 	Red Trail Energy, LLC will utilize supervised classroom instruction and on-the-job
training.

13

 

Red Trail Energy, LLC

New Jobs Creation Training Agreement

State Income Tax Withholding Credit

Projection and New Job Position Schedule

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Position Average	 	 	 	 	 	Total Project State
	 	 	 	 	 	 	 	 	 	 	Annual State	 	Position Average State	 	Income Tax
	Position	 	 	 	New Job Position	 	Income Tax	 	Income Tax Withholding for	 	Withholding Credit
	Number	 	New Job Position Title	 	Annual Wage	 	Withholding	 	Project Period	 	Available
	 	001-001	 	 	Lab Manager
	 	$	60,000.00	 	 	$	1,134.00	 	 	$	11,340.00	 	 	$	11,340.00	 
	 	002-002	 	 	Main Manager
	 	$	65,000.00	 	 	$	1,326.03	 	 	$	13,260.00	 	 	$	13,260.00	 
	 	003-003	 	 	Operations Supervisor
	 	$	55,000.00	 	 	$	968.03	 	 	$	9,680.00	 	 	$	9,680.00	 
	 	004-004	 	 	Scale Operator
	 	$	45,000.00	 	 	$	679.50	 	 	$	6,795.00	 	 	$	6,795.00	 
	 	005-005	 	 	Lead Maintenance Tech
	 	$	45,760.00	 	 	$	695. 55	 	 	$	6,955.52	 	 	$	6,955.52	 
	 	006-009	 	 	Lead Operators
	 	$	45,760.00	 	 	$	695.55	 	 	$	6,955.52	 	 	$	27,822.08	 
	 	010-021	 	 	Operators
	 	$	35,360.00	 	 	$	452.61	 	 	$	4,526.08	 	 	$	54,312.90	 
	 	022-023	 	 	Utility Operators
	 	$	27,040.00	 	 	$	267.70	 	 	$	 2,676.96	 	 	$	5,353.92	 
	 	024-026	 	 	Load out Operators
	 	$	24,960.00	 	 	$	224.64	 	 	$	2,246.40	 	 	$	6,739.20	 
	 	027-030	 	 	Maint Techs
	 	$	35,360.00	 	 	$	452.61	 	 	$	4,526.08	 	 	$	18,104.32	 
	 	031-031	 	 	Purchasing Agent
	 	$	35.360.00	 	 	$	452.61	 	 	$	4,526.08	 	 	$	4,526.08	 
	 	032-032	 	 	Lab Tech
	 	$	24.960.00	 	 	$	224.64	 	 	$	2,246.40	 	 	$	2,246.40	 
	 	033-033	 	 	Office Assistant
	 	$	27,040.00	 	 	$	267.70	 	 	$	2,676.96	 	 	$	2,676.96	 
	TOTAL	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	169,812.44	 

14

 

TRAINING PLAN

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Project Payment Schedule
	 	 	 	 	Facility/	 	Length of	 	Start	 	End	 	Number	 	Position	 	 	 
	Occupation	 	Type of Training	 	Course	 	Course	 	Date	 	Date	 	Trained	 	Average	 	Total
	 
	 	 	 	Red Trail	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lab Manager
	 	OJT/Classroom	 	Energy, LLC	 	16 wks.	 	9/11/06	 	9/11/08	 	1	 	$11,340.00	 	$	11,340.00
	 
	 	 	 	Red Trail	 	 	 	 	 	 	 	 	 	 	 	 	 
	Main Manager
	 	OJT/Classroom	 	Energy, LLC	 	16 wks.	 	9/11/06	 	9/11/08	 	1	 	$13,260.00	 	$	13,260.00
	
	 		 	Red Trail	 	 	 	 	 	 	 	 	 	 	 	 	 
	Operations Supervisor
	 	OJT/Classroom	 	Energy, LLC	 	16 wks.	 	9/11/06	 	9/11/08	 	1	 	$9,680.00	 	$	9,680.00
	 
	 	 	 	Red Trail	 	 	 	 	 	 	 	 	 	 	 	 	 
	Scale Operator
	 	OJT/Classroom	 	Energy, LLC	 	16 wks.	 	9/11/06	 	9/11/08	 	1	 	$6,795.00	 	$	6,795.00
	
	 		 	Red Trail	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lead Maintenance Tech
	 	OJT/Classroom	 	Energy, LLC	 	16 wks.	 	9/11/06	 	9/11/08	 	1	 	$6,955.52	 	$	6,955.52
	 
	 	 	 	Red Trail	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lead Operators
	 	OJT/Classroom	 	Energy, LLC	 	16 wks.	 	9/11/06	 	9/11/08	 	4	 	$6,955.52	 	$	27,822.08
	 
	 	 	 	Red Trail	 	 	 	 	 	 	 	 	 	 	 	 	 
	Operators
	 	OJT/Classroom	 	Energy, LLC	 	16 wks.	 	9/11/06	 	9/11/08	 	12	 	$4,526.08	 	$	54,312.96
	 
	 	 	 	Red Trail	 	 	 	 	 	 	 	 	 	 	 	 	 
	Utility Operators
	 	OJT/Classroom	 	Energy, LLC	 	16 wks.	 	9/11/06	 	9/11/08	 	2	 	$2,676.96	 	$	5,353.92
	 
	 	 	 	Red Trail	 	 	 	 	 	 	 	 	 	 	 	 	 
	Load Out Operators
	 	OJT/Classroom	 	Energy, LLC	 	16 wks.	 	9/11/06	 	9/11/08	 	3	 	$2,246.40	 	$	6,739.20
	 
	 	 	 	Red Trail	 	 	 	 	 	 	 	 	 	 	 	 	 
	Maint Techs
	 	OJT/Classroom	 	Energy, LLC	 	16 wks.	 	9/11/06	 	9/11/08	 	4	 	$4,526.08	 	$	18,104.32
	 
	 	 	 	Red Trail	 	 	 	 	 	 	 	 	 	 	 	 	 
	Purchasing Agent
	 	OJT/Classroom	 	Energy, LLC	 	16 wks.	 	9/11/06	 	9/11/08	 	1	 	$4,526.08	 	$	4,526.08
	 
	 	 	 	Red Trail	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lab Tech
	 	OJT/Classroom	 	Energy, LLC	 	16 wks.	 	9/11/06	 	9/11/08	 	1	 	$2,246.40	 	$	2,246.40
	 
	 	 	 	Red Trail	 	 	 	 	 	 	 	 	 	 	 	 	 
	Office Assistant
	 	OJT/Classroom	 	Energy, LLC	 	16 wks.	 	9/11/06	 	9/11/08	 	1	 	$2,676.96	 	$	2,676.96

15

 

Exhibit B

Budget Summary

The source of training funds is from Self-Financing to be repaid from the North Dakota New
Jobs State Income Tax Withholding Credit.

The training fund dollars will be allocated in the following areas:

	 	 	 	 	 
	Administration Fee
	 	$	8,491.00	 
	Total Allowable Withholding
	 	$	169,813.00	 

Job Service North Dakota is an equal opportunity employer / program provider.

Auxiliary aids and services are available upon request to individuals with disabilities.

 

 

	 	 	 
	

	 	TRAINING PARTICIPANTS

JSND / WORKFORCE SOLUTIONS
SFN 54255(R. 2-06)

Name of Company

Training Program

Contract Number

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Employee Last Name/First Name	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Social Security	 	 	Hourly Wage	 	 	Type of	 	 	Training Date	 
	(Alphabetical Order)	 	Street Address	 	 	City	 	 	State	 	 	Zip Code	 	 	Number	 	 	at Training	 	 	Training	 	 	Completion

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]