THIS AGREEMENT made and entered into this 8
day of July, 2010, to be effective as of July 8,
2010, by and between Red Trail Energy, LLC of Richardton, North Dakota (hereinafter collectively referred to
as "RTE "), and Gerald Bachmeier residing at Morris, Minnesota (hereinafter referred to as "Employee"):
WHEREAS, RTE desires to assure itself of the services of Employee; and
WHEREAS, Employee desires to employed by RTE.
NOW, THEREFORE, in consideration of the covenants and agreements herein contained, the parties
hereto agree as follows:
1. Employment. RTE agrees to employ Employee and Employee agrees to accept such
employment upon the terms and conditions hereinafter set forth.
2. Duties. Employee shall serve as the chief executive officer of RTE, performing such services as
the Operating Agreement provides, and as the Board of Governors of RTE may, from time to time, determine.
3. Term. This Agreement shall be for a five year and 6 month (5.5 year) term commencing on
July 8, 2010, and terminating December 31, 2015, subject, however, to prior termination as provided at Section
4. Base Salary. In consideration for the Employee's services under this Agreement, RTE agrees
to pay the Employee an initial base salary at a rate of One Hundred Thirty-Five Thousand Dollars ($135,000)
from July 8, 2010 through December 31, 2010 (the Base Salary). The Base Salary shall be subject to any
withholding required by law and shall be payable in bi-weekly installments. The Base Salary is also subject to an
increase starting January 1, 2011 of Ten Thousand and no/100 ($10,000) per year for each year after the first six
months of employment. Thus for the year January 1, 2011 through December 31, 2011 Employee's base salary
shall be $145,000; January 1, 2012 through December 31, 2012 the base salary shall be $155,000; January 1,
2013 through December 31, 2013 the base salary shall be $165,000;