Document:

SECURITIES PURCHASE
AGREEMENT

 

THIS SECURITIES
PURCHASE AGREEMENT (this “Agreement”) is made as of the later date set forth on the signature pages hereto,
by and among BioDrain Medical, Inc., a Minnesota corporation (the “Company”), and the purchaser whose name and
address are set forth on the signature page annexed hereto (the “Purchaser”). The foregoing parties are sometimes
referred to hereinafter individually as a “Party” or collectively as the “Parties.”

 

RECITALS

 

WHEREAS, pursuant
to the Subscription Application of the Purchaser of even date herewith (each a “Subscription Application”),
and pursuant to Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506
promulgated thereunder, the Company desires to sell to the Purchaser and the Purchaser desires to acquire from the Company that
number of units of the Company’s securities (the “Units”) as are set forth on the Purchaser’s signature
page annexed hereto, at a price of $0.07 per Unit, subject to the terms and conditions of this Agreement and the other documents
or instruments contemplated hereby; and

 

WHEREAS, each
Unit consists of: (i) one share of the Company’s $0.01 par value common stock (the “Common Stock”), and
(ii) a five-year warrant, in the form of Exhibit A attached hereto, to purchase one (1) share of Common Stock at an exercise
price of $0.15 per share (collectively, “Warrants”).

 

NOW, THEREFORE,
in consideration of the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties do hereby covenant and agree as follows:

 

AGREEMENT

 

Section 1.              Sale
and Issuance of Units.

 

1.1           Subject
to the terms and conditions of this Agreement, the Company’s board of directors has authorized the sale and issuance of up
to 7,142,858 Units (the “Offering”). At the Closing (as defined below), the Company shall sell and issue to
the Purchaser, and the Purchaser shall purchase from the Company, the number of Units set forth on the Purchaser’s signature
page hereto. The Company intends to enter into this same form of purchase agreement with certain other purchasers (collectively,
the “Other Purchasers”, and collectively with the Purchaser, the “Purchasers”) and expects
to complete sales of Units to them. The maximum number of Units that the Company may sell to the Purchasers is 7,142,858, unless
a higher amount is authorized by the Company’s board of directors in its sole discretion. The Purchaser’s obligations
hereunder are expressly not subject to or conditioned on the purchase of Units by any or all of such Other Purchasers.

 

1.2           The
aggregate purchase price for the Units to be purchased by the Purchaser (the “Purchase Price”) shall be the
amount set forth on the Purchaser’s signature page hereto.

 

    	 

    	 

    

 

Section 2.              The
Closing.

 

2.1           The
closing of the sale and issuance to the Purchaser (the “Closing”) shall take place on the date when the Company’s
legal counsel, Richardson & Patel, LLP (the “Escrow Agent”), receives all of the materials required pursuant
to the Escrow Agreement annexed hereto as Exhibit B (the “Escrow Agreement”), including, without limitation,
immediately available funds via wire transfer or a certified check equal to the subscription amount set forth on the Purchaser’s
signature page hereto.

 

2.2           At
the Closing, the Company shall instruct its transfer agent to issue and deliver to the Purchaser a certificate representing the
Common Stock, against receipt by the Escrow Agent of a certified bank check or wire transfer in an aggregate amount equal to the
Purchase Price for the Units set forth on the Purchaser’s signature page hereto.

 

Section 3.              Representations
and Warranties of the Company.

 

The Company hereby
represents and warrants to the Purchaser as follows:

 

3.1           Organization.

 

The Company is duly
organized, validly existing and in good standing under the laws of the State of Minnesota and is qualified to conduct its business
as a foreign corporation in each jurisdiction where the failure to be so qualified would have a material adverse effect on the
Company.

 

3.2           Authorization
of Agreement, Etc.

 

The execution, delivery,
and performance by the Company of its obligations under this Agreement, the Escrow Agreement, the Subscription Application, the
Warrants and each other document or instrument contemplated hereby or thereby (collectively, the “Transaction Documents”)
has been duly authorized by all requisite corporate action on the part of the Company; and this Agreement and the Transaction Documents
have been duly executed and delivered by the Company. Each of the Transaction Documents, when executed and delivered by the Company,
constitutes the valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, subject
to applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium, or other similar laws affecting creditors’
rights and remedies generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement
is sought in a proceeding at law or in equity).

 

3.3           Issuance
of Common Stock and Warrants.

 

The Units are
duly authorized and, when paid for and issued in accordance with the Transaction Documents, will be duly and validly issued, fully
paid, and nonassessable, free and clear of all liens.

 

Section 4.          Representations
and Warranties of the Purchaser.

 

The Purchaser hereby
represents and warrants to the Company as follows:

 

    	2

    	 

    

 

4.1           Authorization
of the Documents.

 

The Purchaser has all
requisite power and authority (corporate or otherwise) to execute, deliver, and perform its obligations under the Transaction Documents,
and the execution, delivery, and performance by the Purchaser of its obligations under the Transaction Documents has been duly
authorized by all requisite action on the part of the Purchaser and each such Transaction Document, when executed and delivered
by the Purchaser, shall constitute the valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance
with its terms, subject to applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other similar
laws affecting creditors’ rights and remedies generally, and subject, as to enforceability, to general principles of equity
(regardless of whether enforcement is sought in a proceeding at law or in equity).

 

4.2           Investment
Representations.

 

All of the representations,
warranties, and information of the Purchaser as set forth in the Purchaser’s Subscription Application are incorporated by
reference herein, shall be deemed to be a part hereof, and shall be true and correct at the Closing with the same force and effect
as if made by the Purchaser as of the date thereof.

 

4.3           Access
to Company Information.

 

The Purchaser acknowledges
that it has been afforded access and the opportunity to obtain all financial and other information concerning the Company that
such Purchaser desires (including the opportunity to meet with the Company’s executive officers, either in person or telephonically).
The Purchaser has reviewed copies of all reports filed by the Company (the “Filings”) with the Securities and
Exchange Commission (the “Commission”) under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), since December 31, 2009, all of which are available for review at www.sec.gov. The Purchaser further acknowledges
that it is familiar with the contents of the Filings and that there is no further information about the Company that the Purchaser
desires in determining whether to acquire the Units in the Offering.

 

4.4           Risk
Factors

 

The Purchaser acknowledges
that the Company is a development stage company with limited revenues and currently not operating with positive cash-flow from
operations, and there can be no assurances that the Company will ever develop its operations as currently contemplated. The Purchaser
acknowledges that an investment in the Units is extremely speculative and that there is a substantial likelihood that the investor
will lose their entire investment.

 

Section 5.             Brokers
and Finders.

 

The Company shall not
be obligated to pay any commission, brokerage fee, or finder’s fee based on any alleged agreement or understanding between
the Purchaser and a third person in respect of the transactions contemplated hereby. The Purchaser hereby agrees to indemnify the
Company against any claim by any third person for any commission, brokerage fee, finder’s fee, or other payment with respect
to this Agreement or the transactions contemplated hereby based on any alleged agreement or understanding between the Purchaser
and any such third person, whether express or implied from the actions of the Purchaser or anyone acting or purporting to act on
behalf of the Purchaser.

 

    	3

    	 

    

 

Section 6.              Indemnification
by the Purchaser.

 

The Purchaser hereby
agrees to indemnify and defend (with counsel acceptable to the Company) the Company and its officers, directors, employees, and
agents and hold them harmless from and against any and all liability, loss, damage, cost, or expense, including costs and reasonable
attorneys’ fees, incurred on account of or arising from:

 

(a)          any
breach of or inaccuracy in any of the Purchaser’s representations, warranties, or agreements made herein, in any of the Transaction
Documents, or in any document or instrument contemplated hereby or thereby; and

 

(b)          any
action, suit, or proceeding based on a claim that the Purchaser’s representations, warranties or agreements made herein,
in any of the Transaction Documents, or in any document or instrument contemplated hereby or thereby, were inaccurate or misleading,
or otherwise cause for obtaining damages or redress from the Company or any current or former officer, director, employee, or agent
of the Company under the Securities Act.

 

Section 7.              Successors
and Assigns.

 

This Agreement shall
bind and inure to the benefit of the Company, the Purchaser, and their respective successors and assigns.

 

Section 8.              Entire
Agreement.

 

This Agreement and
the other writings and agreements referred to in this Agreement or delivered pursuant to this Agreement contain the entire understanding
of the Parties with respect to the subject matter hereof and supersede all prior agreements and understandings, whether written
or verbal, among the Parties with respect thereto.

 

Section 9.              Notices.

 

All notices, demands
and requests of any kind to be delivered to any Party in connection with this Agreement shall be in writing and shall be deemed
to have been duly given if personally delivered or if sent by internationally-recognized overnight courier or by registered or
certified mail, return receipt requested and postage prepaid, addressed as follows:

 

if to the Company, to:

 

BioDrain Medical, Inc.

2915 Commers Drive, Suite 900

Eagan, MN 55121

Attention: Bob Myers, Acting Chief
Financial Officer

 

    	4

    	 

    

 

with a copy to:

 

Richardson & Patel LLP

750 Third Avenue

9th Floor

New York, NY 10017

Attention: Kevin Friedmann

 

if to the Purchaser, to:

 

at the address of the Purchaser
set forth on the Purchaser’s signature page hereto;

 

or to such other address
as the Party to whom notice is to be given may have furnished to the other Parties to this Agreement in writing in accordance with
the provisions of this Section. Any such notice or communication shall be deemed to have been received (i) in the case of personal
delivery, on the date of such delivery, (ii) in the case of internationally-recognized overnight courier, on the next business
day after the date when sent and (iii) in the case of mailing, on the third business day following that on which the piece of mail
containing such communication is posted.

 

Section 10.            Amendments.

 

This Agreement may
not be modified or amended, nor may any provision of this Agreement be waived, except as evidenced by a written agreement duly
executed by Purchasers who hold a majority of the Common Stock and shares of Common Stock underlying Warrants acquired in the Offering.

 

Section 11.            Governing
Law; Waiver of Jury Trial.

 

All questions concerning
the construction, interpretation, and validity of this Agreement shall be governed by and construed and enforced in accordance
with the domestic laws of the State of New York without giving effect to any choice or conflict of law provision or rule (whether
in the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than
the State of New York. In furtherance of the foregoing, the internal law of the State of New York will control the interpretation
and construction of this Agreement, even if under such jurisdiction’s choice of law or conflict of law analysis, the substantive
law of some other jurisdiction would ordinarily or necessarily apply.

 

Section 12.             Submission
to Jurisdiction.

 

Any legal action or
proceeding with respect to this Agreement may be brought in the courts of the State of New York and the United States of America
located in the Borough of Manhattan in the City of New York, New York, and, by execution and delivery of this Agreement, the Company
hereby accepts for itself and in respect of its property, generally and unconditionally, the jurisdiction of the aforesaid courts.
The Purchaser hereby irrevocably waives, in connection with any such action or proceeding, any objection, including, without limitation,
any objection to the venue or based on the grounds of forum non conveniens, which it may now or hereafter have to the bringing
of any such action or proceeding in such respective jurisdictions. The Purchaser hereby irrevocably consents to the service of
process of any of the aforementioned courts in any such action or proceeding by the mailing of copies thereof by registered or
certified mail, postage prepaid, to it at its address as set forth herein.

 

    	5

    	 

    

 

Section 13.            Severability.

 

It is the desire and
intent of the Parties that the provisions of this Agreement be enforced to the fullest extent permissible under the law and public
policies applied in each jurisdiction in which enforcement is sought. Accordingly, in the event that any provision of this Agreement
would be held in any jurisdiction to be invalid, prohibited, or unenforceable for any reason, such provision, as to such jurisdiction,
shall be ineffective, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability
of such provision in any other jurisdiction. Notwithstanding the foregoing, if such provision could be more narrowly drawn so as
not to be invalid, prohibited, or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn,
without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in
any other jurisdiction.

 

Section 14.            Independence
of Agreements, Covenants, Representations and Warranties.

 

All agreements and
covenants hereunder shall be given independent effect so that if a certain action or condition constitutes a default under a certain
agreement or covenant, the fact that such action or condition is permitted by another agreement or covenant shall not affect the
occurrence of such default, unless expressly permitted under an exception to such covenant. In addition, all representations and
warranties hereunder shall be given independent effect so that if a particular representation or warranty proves to be incorrect
or is breached, the fact that another representation or warranty concerning the same or similar subject matter is correct or is
not breached will not affect the incorrectness of or a breach of a representation and warranty hereunder. The exhibits and any
schedules annexed hereto are hereby made part of this Agreement in all respects.

 

Section 15.            Counterparts.

 

This Agreement may
be executed in any number of counterparts, and each such counterpart of this Agreement shall be deemed to be an original instrument,
but all such counterparts together shall constitute but one agreement. Facsimile or PDF counterpart signatures to this Agreement
shall be acceptable and binding.

 

Section 16.            Headings.

 

The section and paragraph
headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation
of this Agreement.

 

    	6

    	 

    

 

Section 17.            Expenses.

 

Each Party shall pay
its own fees and expenses incurred in connection with the negotiation, execution, delivery and performance of this Agreement, the
Transaction Documents and any document or instrument contemplated hereby or thereby.

 

Section 18.            Preparation
of Agreement.

 

The Company prepared
this Agreement and the Transaction Documents solely on its behalf. Each Party to this Agreement acknowledges that: (i) the Party
had the advice of, or sufficient opportunity to obtain the advice of, legal counsel separate and independent of legal counsel for
any other Party hereto; (ii) the terms of the transactions contemplated by this Agreement are fair and reasonable to such Party;
and (iii) such Party has voluntarily entered into the transactions contemplated by this Agreement without duress or coercion. Each
Party further acknowledges that such Party was not represented by the legal counsel of any other Party hereto in connection with
the transactions contemplated by this Agreement, nor was he or it under any belief or understanding that such legal counsel was
representing his or its interests. Each Party agrees that no conflict, omission, or ambiguity in this Agreement, or the interpretation
thereof, shall be presumed, implied, or otherwise construed against any other Party to this Agreement on the basis that such Party
was responsible for drafting this Agreement.

 

Section 19.            Use
of Proceeds.

 

The Company shall use
the net proceeds from the Offering for general working capital and general corporate purposes and debt service obligations.

 

Section 20.            Signature
Page.

 

It is hereby agreed
that the execution by the Purchaser of this Subscription Agreement, in the place set forth herein, will constitute agreement by
the Purchaser to be bound by the terms and conditions of (1) this Subscription Agreement and (2) the Warrant, in the form attached
hereto as Exhibit A.

 

[signature
pages follow]

 

    	7

    	 

    

  

IN WITNESS WHEREOF,
each of the undersigned has duly executed this Securities Purchase Agreement as of the later date set forth on the signature pages
below.

 

	 	 	COMPANY:
	 	 	 
	Date: _______________, 2012	 	BioDrain Medical, Inc.
	 	 	 
	 	By:	 
	 	 	Name: Joshua Kornberg
	 	 	Title:   Chief Executive Officer

 

[Purchaser’s
Signature Page FollowS]

 

    	 

    	 

    

 

Purchaser
Signature Page to BioDrain Medical, Inc. 

Securities
Purchase Agreement

 

	PURCHASER:	 	 
	 	 	 
	 	 	 
	Name of Purchaser (Individual or	 	Name of Individual representing
	  Institution)	 	Purchaser (if an Institution)
	 	 	 
	 	 	 
	Title of Individual representing	 	Signature of Individual Purchaser or
	  Purchaser (if an Institution)	 	Individual representing Purchaser
	 	 	 
	Address:	 	 
	 	 	 
	Telephone:	 	 
	 	 	 
	Facsimile:	 	 
	 	 	 
	 	 	 
	Number of Units	 	 
	 	 	 
	 	 	 
	Aggregate Purchase Price	 	 
	 	 	 
	 	 	 
	DateExhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement is made and entered
into this 19th day of June, 2012, by and between South Dakota Soybean Processors, LLC, a South Dakota limited liability
company ("SDSP"), and Thomas J. Kersting ("Employee").

 

RECITALS

 

A.           SDSP
desires to employ Employee as its Chief Executive Officer, and Employee desires to be employed by SDSP in this capacity.

 

B.           SDSP
and Employee desire that their employment relationship be governed by the terms and conditions of this Agreement.

 

NOW, THEREFORE, the parties agree as follows:

 

1.          Employment.
SDSP hereby employs Employee, and Employee hereby accepts such employment, upon the terms and conditions set forth in this Agreement.

 

2.          Duties.
Employee shall be engaged in full-time employment by SDSP as SDSP's Chief Executive Officer. Employee shall use Employee's best
efforts to promote the interests of SDSP and shall devote such time, energy and skill as may be required to perform Employee's
duties under this Agreement. The duties and responsibilities of Employee shall include those duties and responsibilities consistent
with Employee's employment position with SDSP and such other duties and responsibilities that SDSP, acting through its Board of
Managers, from time to time may assign to Employee. If requested by SDSP's Board of Managers, Employee's duties shall include general
management and oversight of any affiliates of SDSP.

 

3.          Other
Activities. Employee shall devote substantially all of Employee's working time and efforts during the normal business hours
of SDSP to the business and affairs of SDSP and to the diligent and faithful performance of the duties and responsibilities assigned
to Employee pursuant to this Agreement. Employee may not engage in any other activity that conflicts with Employee's obligations
to SDSP.

 

4.          Review.
Employee shall undergo annual performance and salary reviews. Such reviews shall be conducted by SDSP's Board of Managers and shall
be held on or about January 15 of each year or as soon thereafter as may be scheduled by the Board of Managers.

 

5.          Base
Salary. For all services to be rendered by Employee to SDSP pursuant to this Agreement, SDSP shall pay Employee a base salary
(the "Base Salary") of $210,105.00 per year. The Board of Managers of SDSP, each year in conjunction with the annual
performance and salary review described in Section 4 above, shall review the Base Salary and determine in its sole discretion whether
an adjustment to the Base Salary should be made. The Base Salary shall be paid in periodic installments in accordance with SDSP's
regular payroll practices. The Base Salary shall be subject to tax and other deductions and withholdings as required by law.

    	Employment Agreement
Page 1

    	Exhibit 10.1

    

 

6.          Bonus.
In addition to the Base Salary paid to Employee, SDSP may, but shall not be required to, pay to Employee a profit sharing benefit
as determined by the Board of Managers of SDSP in its sole discretion.

 

7.          Vacation.
Employee shall be entitled to paid vacations and holidays in accordance with the policies of SDSP in effect from time-to-time for
similarly situated employees.

 

8.          Other
Benefits. Employee shall be entitled to participate in such benefit plans or programs which SDSP from time to time may make
available to similarly situated employees, subject to the same terms, conditions and eligibility requirements as are applicable
to such employees. Employee shall receive a copy of SDSP's Employee Handbook further detailing the benefits to which Employee is
entitled and SDSP's personnel and general policies. SDSP, acting through its Board of Managers, shall be entitled to amend, modify
or replace the Employee Handbook and personnel regulations and policies in its sole discretion.

 

9.          Expenses.
Employee shall be entitled to reimbursement by SDSP of reasonable ordinary and necessary travel and other expenses incurred by
Employee in performing his duties under this Agreement, in accordance with the policies established by SDSP for similarly situated
employees and upon proper accounting by Employee for such expenses, including any accounting required by applicable federal tax
laws and regulations.

 

10.         Life
Insurance. SDSP, in sole its discretion, may purchase or renew insurance on the life of Employee. Employee shall submit to
reasonable medical examinations and otherwise reasonably cooperate with SDSP in connection with obtaining such insurance.

 

11.         Term
and Termination.

 

(a)          Term.
The term of employment under this Agreement shall commence on the date of this Agreement and shall continue thereafter unless and
until terminated as provided in this Section 11. Either party may terminate Employee's employment with SDSP at any time and for
any reason, and this Agreement shall terminate effective as of the date of termination of such employment, except as otherwise
expressly provided herein. The provisions in this Agreement relating to "cause" shall not be construed as restricting
SDSP's right to terminate Employee's employment, but shall relate only to the determination and payment of any amounts that may
be payable to Employee under this Agreement. Notwithstanding anything to the contrary in this Agreement, Employee shall at all
times be an "at-will" employee of SDSP.

 

(b)          Termination
By Employee. If this Agreement is terminated by Employee or is terminated due to Employee's death, Employee or Employee's
estate or beneficiaries, as the case may be, shall be entitled to receive: (i) the Base Salary through the effective date of such
termination or the date of Employee's death, as the case may be; (ii) any other amounts earned, accrued, or owed to Employee under
this Agreement but not paid as of the effective date of such termination or the date of Employee's death, as the case may be;
and (iii) any other benefits payable to Employee under any benefit plans or programs of SDSP in effect on the date of such termination
or the Employee's death, as the case may be.

    	Employment Agreement
Page 2

    	Exhibit 10.1

    

 

(c)          Termination
By SDSP For Cause. If this Agreement is terminated by SDSP for “cause” as defined below, Employee shall be entitled
to receive (i) the Base Salary through the effective date of such termination; (ii) any other amounts earned, accrued or owed to
Employee under this Agreement but not paid as of the effective date of such termination; and (iii) any other benefits payable to
Employee upon such termination under any benefit plans or programs of SDSP in effect on the date of such termination.

 

(d)          Termination
By SDSP Without Cause. If this Agreement is terminated by SDSP without "cause", Employee shall be entitled to receive:
(i) the Base Salary until the effective date of such termination; (ii) any other amounts earned, accrued or owed to Employee under
this Agreement but not paid as of the effective date of such termination; and (iii) any other benefits payable to Employee upon
such termination under any benefit plans or programs of SDSP in effect on the date of such termination.

 

(e)          Occurrence
of Extraordinary Event. Notwithstanding anything to the contrary herein, upon the occurrence of an "extraordinary event"
as defined below, this Agreement shall be deemed to have been terminated by SDSP without cause, thereby entitling Employee to
the payments described in subsection (d) above. For purposes of this Agreement, the term "extraordinary event" shall
mean (i) the merger or consolidation of SDSP with another entity in which SDSP is not the surviving entity, unless Employee is
employed in a similar position by the surviving entity; or (ii) the voluntary sale of all or substantially all of the assets of
SDSP as a going concern, unless Employee is employed in a similar position by a successor company that has purchased substantially
all of the assets of SDSP.

 

(f)          Definition
of Cause. For purposes of this Agreement, the term "cause" shall mean: (i) Employee's confession or conviction of
theft, fraud, embezzlement or other crime involving dishonesty; (ii) Employee's excessive absenteeism (other than by reason of
physical injury, disease, or mental illness) without reasonable cause; (iii) Employee's act or omission constituting a material
breach of any provision of this Agreement, including Sections 12, 13, 14 and 15 below; (iv) habitual and material negligence by
Employee in the performance of Employee's duties under this Agreement; (v) Employee's abuse, misuse or destruction of property
of SDSP, its affiliates, or its customers; (vi) Employee's making or publishing of false or malicious statements concerning SDSP;
or (vii) material failure by Employee to comply with the policies of SDSP or a lawful directive of the Board of Managers of SDSP
and the failure to cure such non-compliance within ten days after his receipt of a written notice from the Board of Managers setting
forth in reasonable detail the pat1iculars of such non-compliance. The preceding list is not intended to be exhaustive; other
conduct of a similar nature may result in the termination of this Agreement for "cause." However, the results of SDSP's
operations or any business judgment made in good faith by Employee shall not constitute an independent basis for termination of
this Agreement for "cause." The provisions in this Agreement relating to cause shall not be construed as restricting
SDSP's right to terminate Employee's employment, but shall relate only to the determination and payment of Base Salary and any
other amounts or benefits that may be payable to Employee under this Agreement.

    	Employment Agreement
Page 3

    	Exhibit 10.1

    

 

12.         Confidential
Information. Employee acknowledges and agrees that SDSP owns and controls proprietary information concerning the operations,
processes, methods and accumulated experience incidental to producing, processing, refining, marketing and selling soybased and
related agricultural products, services and systems, including business and technical information, financial information, accounting
data, marketing techniques and materials, business plans, business operations, pricing policies and manuals, profit margins, expense
ratios, personnel information, customer information, supplier information, technology, intellectual property, trade secrets, ideas,
discoveries, inventions, patents, patent applications, techniques, drawings, designs, plans, specifications and products (the
"Confidential Information"), Employee agrees that by reason of Employee's employment by SDSP, Employee has, and/or may
in the future come into possession of, knowledge of or contribute to the Confidential Information. Employee agrees that all Confidential
Information is and shall remain the exclusive property of SDSP and that, during the term of this Agreement and following the termination
hereof for any reason, Employee shall not disclose or use the Confidential Information for any purpose except in the course of
Employee's duties under this Agreement in furtherance of SDSP's business.

 

13.         Delivery
of Confidential Information and Employer Property. Upon request of SDSP and in any event upon termination of Employee's employment
for any reason, Employee shall promptly deliver to SDSP all Confidential Information, including all originals, copies, summaries
or extracts of books, catalogues, sale brochures, customer lists, prospective customer lists, price lists, employee manuals, notes,
photographs, tape recordings, specifications, operations manuals and all other documents or tangible materials reflecting or referencing
Confidential Information, as well as all other materials furnished to or acquired by Employee as a result of or during the course
of Employee's employment.

 

14.         Non-Competition.
To prevent improper use of Confidential Information and unfair competition and diminution of the goodwill and other proprietary
interests of SDSP, Employee agrees that, during the term of this Agreement and for a period of one (I) year following the termination
hereof for any reason, and in a geographical area encompassing all of North America, Employee shall not, directly or indirectly,
own, manage, operate, control, be employed by, work for, consult with or for, participate in, or be connected in any manner whatsoever
with, the ownership, operation or control of any business that: (a) solicits any customer of SDSP for the purpose of obtaining
the business of such customer in competition with SDSP; (b) solicits any prospective customer of SDSP (meaning any person or entity
with whom SDSP has had any significant contact to develop new business), for the purpose of obtaining the business of such customer
in competition with SDSP; or (c) engages in any business which is the same or essentially the same as the business of SDSP.

 

15.         Non-Solicitation.
During the term of this Agreement and for a period of one (1) year following the termination hereof for any reason, Employee,
directly or indirectly, shall not employ, solicit for employment, assist any other person in employing or soliciting for employment,
or advise or recommend to any other person that such other person employ or solicit for employment, any person who then is, or
during any portion of the twelve (12) months prior to such employment or solicitation, an employee of SDSP.

 

16.         Reasonableness
of Restrictions. Employee acknowledges that he has carefully read and considered the provisions of this Agreement and, having
done so, agrees that the restrictions and limitations in this Agreement are reasonable as to geographic scope and duration and
are necessary to protect SDSP's proprietary interests in the Confidential Information and to preserve for SDSP the competitive
advantages necessary for their success.

    	Employment Agreement
Page 4

    	Exhibit 10.1

    

 

17.         Remedies.
Employee acknowledges and agrees that it is impossible to measure in money the damages which will accrue to SDSP if Employee breaches
any of Employee's obligations under Sections 12, 13, 14 or 15 above, and that SDSP would be irreparably damaged by such breach
by Employee. Accordingly, if any action or proceeding is instituted by or on behalf of SDSP to enforce such sections, Employee
hereby waives any claim or defense thereto that SDSP has an adequate remedy at law or that SDSP has not been irreparably injured
thereby. The rights and remedies of SDSP pursuant to this section are cumulative, and shall not exclude any other right or remedy
SDSP may have pursuant to this Agreement or at law or in equity.

 

18.         Costs.
In the event either party hereto institutes legal proceedings to enforce the terms of this Agreement, the prevailing party shall
be entitled to recover reasonable costs and attorneys' fees incurred in connection with such proceeding.

 

19.         Successors
and Assigns. This Agreement shall be binding upon, inure to the benefit of, and be enforceable by the parties hereto and their
respective successors and assigns. The services to be provided by Employee hereunder are personal in nature, and Employee may not
assign or transfer this Agreement or any right or obligation hereunder.

 

20.         Survival.
Upon termination of this Agreement for any reason, any section that by its nature should survive this Agreement shall survive and
continue in effect and be binding upon the Parties, including Sections 11 through 18.

 

21.         Severability.
The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other
provision hereof, which other provisions shall remain in full force and effect. Without limiting the foregoing, the parties agree
that the covenants contained in Sections 12, 13, 14 and 15 above are independent of one another and severable. In the event any
part of the covenants contained in such sections is held to be invalid or unenforceable, the remaining parts thereof shall continue
to be valid and enforceable as though the invalid and unenforceable part had not been included herein. If any provisions of the
covenants contained in Sections 12, 13, 14 or 15 relating to the time period, geographical area, or restricted activity are declared
by a court to exceed the maximum time periods or restricted activities which such court deems reasonable and enforceable, the
parties agree that the court making such a determination shall have the power and is directed to reduce the time period, geographical
area, and/or restricted activity to the maximum time period, geographical area, and/or restricted activity which such court deems
reasonable.

 

22.         Waiver.
The waiver by SDSP of a breach of any covenant of this Agreement, or the failure of SDSP to take action against any other employee
for similar breaches, shall not operate or be construed as a waiver of any subsequent or later breach by Employee.

 

23.         Governing
Law; Jurisdiction. All rights and obligations missing out of or relating to this Agreement shall be governed by and construed
in accordance with the laws of the State of South Dakota. The parties hereby agree that any legal proceeding brought to enforce
the terms

    	Employment Agreement
Page 5

    	Exhibit 10.1

    

 

Employment Agreement Pages." of this Agreement shall be
brought in the courts of the State of South Dakota located in Brookings County, South Dakota, and the parties hereby consent to
the jurisdiction and venue of such courts.

 

24.         Entire
Agreement: Amendment. This Agreement represents the entire agreement between the parties relating to the subject matter hereof.
No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed
to in writing by Employee and SDSP.

 

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

 

	SOUTH DAKOTA SOYBEAN	 	EMPLOYEE
	PROCESSORS, LLC 	 	 
	 	 	 
	/s/ Ronald Gorder	 	/s/ Tom J. Kersting
	Chairman of the Board of Managers	 	Thomas J. Kersting

    	Employment Agreement
Page 6

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