EMPLOYMENT AGREEMENT

Exhibit 99.1

EMPLOYMENT AGREEMENT

     This Employment Agreement (the “Agreement”) is effective as of one o’clock a.m. Central Daylight Time August 8, 2008, by and between Red Trail Energy, LLC (the “Company”), and Mark Klimpel (the “Executive”).

     Whereas, the Company is engaged in the business of owning and operating a corn-based ethanol plant;

     Whereas, Executive and Company recognize and acknowledge that Executive’s executive responsibilities will give Executive knowledge of all aspects of the Company’s operations, including its business plans and strategies, current and contemplated ethanol projects and ventures, customers, and other proprietary information, which information would seriously harm Company if provided to a competitor.

     Whereas, the Company desires to employ the Executive and the Executive desires to be employed by the Company; and

     Whereas, the Company and the Executive desire to enter into this Agreement to set forth the rights, duties, benefits and obligations with respect to the employment of the Executive by the Company under the terms and conditions herein provided.

     Now, Therefore, in consideration of the Executive’s employment with the Company, and the mutual and respective covenants and agreements of the parties herein contained, and other good and valuable consideration present but not specifically set forth, the parties hereto agree as follows:

     1. Employment. The Company hereby agrees to employ the Executive, and the Executive hereby agrees to be employed by the Company, on the terms and conditions set forth herein. This Agreement and Executive’s duties hereunder shall commence on one o’clock p.m. Central Daylight Time August 8, 2008 (the “Start Date”) and this Agreement and Executive’s employment hereunder shall end on the fifth anniversary thereafter, unless sooner terminated in accordance with the provisions of Section 6 hereof (the “Term”). Thereafter, the Term and any extension of this Agreement shall be automatically extended for successive one year periods unless either party gives the other party written notice at least sixty (60) days in advance of the anniversary date that the Agreement shall expire on the next anniversary date or the Agreement is terminated as provided in Section 6 of this Agreement.

     2. Position and Duties. During the Term and any extension of this Agreement, the Executive shall serve as Chief Financial Officer of the Company or such other executive position as assigned by the Company. The Executive shall perform those job duties customary to his position and as assigned by the Company’s Board of Governors (the “Board”) to the extent such other duties assigned by the Board are consistent with Executive’s position.

          3. Compensation and Related Matters.

          (a) Base Salary. The Executive shall receive an annual base salary of One Hundred Fifteen Thousand Dollars ($115,000.00), less required and authorized withholding and

deductions (“Base Salary”). The Base Salary shall increase a minimum of 6% per year, on the anniversary date of the Executive’s original date of hire, during the term and any extension of this Agreement.

          (b) Bonus. During the Term and any extension of this Agreement, in addition to the Base Salary, the Executive may be eligible to earn an annual bonus of up to 20% of the Base Salary in effect at the time the Bonus is calculated. The Bonus is due and payable to the Executive on or before January 15 of the year following the year for which the Bonus is being calculated (i.e. January 15, 2009 for the year ended December 31, 2008). The following criteria will be evaluated by the Compensation Committee of the Board in determining the bonus percentage:

               (1) Bonus Criteria: The Executive’s Bonus shall be based on the following criteria:

                    (a) The Executive shall be awarded 50% of the Bonus (10% of Base Salary then in effect) each year as long as the Executive is employed on December 31 of the year for which the Bonus is calculated (i.e. employed on December 31, 2008 for the year ended December 31, 2008).

                    (b) The remaining 50% of the Bonus (10% of the Base Salary) shall be determined by the performance of the Executive. The Compensation Committee, with input from the President and CEO of the Company, shall rate the Executive’s performance upon the completion of each calendar year. If less than the full 10% of Base Salary, the Compensation Committee shall provide written documentation of the areas they felt the Executive underperformed and should work to improve.

          (c) Benefits. Executive shall be entitled to all rights and benefits for which he is eligible under the terms and conditions of the Company’s standard employee handbook and the benefits and compensation practices that may be in effect from time to time and provided by the Company to its employees generally. In addition to, and not in limitation of, the foregoing, during the Term and any extension of this Agreement, the Executive started employment with three (3) weeks (15 business days) of paid vacation per year exclusive of any business day with respect to which the Company is closed for business due to any federal, state or local holiday or any day off generally granted by the Company to its employees, subject to the Company’s then-current vacation policy (which shall not have the effect of reducing said three (3) weeks (15 business days) of paid vacation. The Executive shall earn one additional day of vacation for each year employed with the Company, so noted on January 1 of each successive year of employment. In addition to, and not in limitation of the foregoing, during the Term and any extension of this Agreement the Executive shall receive any additional benefits generally provided by the Company to executive employees of the Company.

          (d) Expense Reimbursement. The Company will reimburse the Executive for reasonable business expenses in accordance with the Company’s standard expense account and reimbursement policies.

          (e) Vehicle Allowance. During the Term and any extension of this Agreement, in addition to the Base Salary, Bonus and Benefits, the Executive shall receive $500 per month as a vehicle allowance. The Company also agrees to pay for fuel used by the Executive for commuting to work at the Plant site.

          4. Representations and Warranties of Executive. In order to induce the Company to employ the Executive, the Executive hereby represents and warrants to the Company as follows:

          (a) Binding Agreement. This Agreement has been duly executed and delivered by the Executive and constitutes a legal, valid and binding obligation of the Executive and is enforceable against the Executive in accordance with its terms.

          (b) No Violations of Law. The execution and delivery of this Agreement and the other agreements contemplated hereby by the Executive do not, and the performance by the Executive of his obligations under this Agreement and the other agreements contemplated hereby will not, violate any term or provision of any law, or any writ, judgment, decree, injunction, or similar order applicable to the Executive.

          (c) Litigation. The Executive is not involved in any proceeding, claim, lawsuit, or investigation alleging wrongdoing by the Executive before any court or public or private arbitration board or panel or governmental department, commission, board, bureau, agency or instrumentality.

          (d) No Conflicting Obligations. Executive is not under, or bound to be under in the future, any obligation to any person or entity that is or would be inconsistent or in conflict with this Agreement or would prevent, limit, or impair in any way the performance by him of his obligations hereunder, including but not limited to any duties owed to any former employers not to compete or use or disclose Confidential Information. Executive represents and agrees that he will not disclose to the Company or use on behalf of the Company any Confidential Information or trade secrets belonging to a third party, including any former employer. Executive further represents and agrees that he has returned, or will return before his last day of employment with his current employer, all property belonging to Executive’s current and previous employers, including but not limited to any and all Confidential Information. Provided these representations are met by Executive and Executive has acted in good faith and has not otherwise violated any contractual or legal obligations, the Company will provide and pay for legal services to defend the Executive in the event of litigation initiated by Executive’s preceding employer. In the event the Company is required to defend Executive pursuant to this Section, the Company and Executive shall be represented by the same legal counsel as chosen by the Company.

          (e) Opportunity to Review. Executive has carefully read and fully understands all provisions of this Agreement, and Executive has had a full opportunity to review this Agreement before signing and to have all the terms of this Agreement explained to him by counsel.

     5. Confidentiality, Assignment of Inventions and Copyrights.

A) Except as provided by any statutory notice provided herewith, the entire right, title and interest to all Inventions;

“Inventions”, as used herein, means all inventions conceived or made or reduced to practice in whole or in part by Employee after being employed by the Company, including discoveries, improvements, designs, processes, techniques, equipment, trademarks, and ideas (whether patentable or not and including, without limitation, those that might be copyrightable).

B) The entire right, title and interest to any United States or foreign Letters Patents which may issue or that has issued with respect to Inventions;

C) The entire right, title and interest to any renewals, reissues, extensions, substitutions, continuations, continuations-in-part, or divisions that may be filed with respect to the Inventions, applications, and patents;

D) The right to apply for Letters Patents in foreign countries in its own name and to claim any priority rights to which such foreign applications are entitled under international conventions, treaties or otherwise; and

E) The right to sue for past, present, and future infringement of such Inventions and Letters Patent.

     6. Termination.

          (a) Termination upon Death. If the Executive dies during the Term or any extension of this Agreement, this Agreement shall terminate, except that the Executive’s legal representatives shall be entitled to receive the Base Salary and other accrued benefits earned up to the date of the Executive’s death.

          (b) Termination By The Company With Cause. The Company has the right, at any time during the Term and any extension of this Agreement, to terminate the Executive’s employment with the Company for Cause (as defined below) by giving written notice to the Executive as described in this Section 6(b) below. Prior to the effectiveness of termination for Cause under subclause (i), (ii), (iii) or (iv) below, the Executive shall be given thirty (30) calendar days’ prior written notice from the Company, specifically identifying the reasons which are alleged to constitute Cause for any termination pursuant to the aforementioned subclauses, and an opportunity to cure in the event the Executive disputes such allegations; provided, however, that the Company shall have no obligation to continue to employ the Executive following such thirty (30) calendar day notice period unless the Executive’s cure meets the Company’s reasonable satisfaction. The Company’s termination of the Executive’s employment for Cause under subclause (v) or (vi) below shall be effective immediately upon the Company’s written notice to the Executive. If the Company terminates Executive’s employment for Cause, the Company’s obligation to the Executive shall be limited solely to the payment of unpaid Base Salary accrued up to the effective date of termination plus any accrued but unpaid bonus and benefits.

     As used in this Agreement, the term “Cause” shall mean and include (i) the Executive’s abuse of alcohol that affects Executive’s performance of Executive’s duties under this Agreement, or misuse of any controlled substance; (ii) a willful act of fraud, dishonesty or breach of fiduciary duty on the part of the Executive with respect to the business or affairs of the Company; (iii) material failure by the Executive to comply with applicable laws and regulations or professional standards relating to the business of the Company; (iv) material failure by the Executive to satisfactorily perform his duties hereunder, a material breach by the Executive of this Agreement, or Executive engaging in conduct that materially conflicts with the best interests of the Company or that may materially harm the Company’s reputation; (v) the Executive being subject to an inquiry or investigation by a governmental authority or self-regulatory organization such that the existence of such inquiry or investigation may result in damage to the Company’s business interests, licenses, reputation or prospects; or (vi) conviction of a felony.

          (c) Termination By The Company Without Cause. The Company shall have the right, at any time during the Term and any extension of this Agreement, to terminate the Executive’s employment with the Company without Cause by giving written notice to the Executive, which termination shall be effective thirty (30) calendar days from the date of such written notice. The Company may provide 30 days pay in lieu of notice. If the Company terminates the Executive’s employment without Cause, the Company’s obligation to the Executive shall be limited solely to (i) unpaid Base Salary plus any bonus and benefits accrued up to the effective date of termination; and (ii) payments equal to the Executive’s then-current Base Salary for a period of six (6) months payable on the Company’s then current payroll practices during the six (6) months after termination or in one lump sum payment at the Executive’s discretion. As a condition to his receipt of the post-employment payments under this Section 6(c), Executive shall be in compliance with Section 5 of this Agreement, and required to execute, return, not rescind and comply with a release of claims agreement in favor of the Company, in a form substantially similar to the attached Exhibit A. Executive shall have no duty to mitigate damages under this Section 6(c) during the applicable severance period and, in the event Executive shall subsequently receive income from providing Executive’s services to any person or entity, including self employment income, or otherwise, then no such income shall in any manner offset or otherwise reduce the payment obligations of the Company hereunder.

          (d) Termination By The Company Through Change in Control of the Company. Termination of the Executive’s employment related to a change in control of the Company (as defined in Section 8 of this Agreement) shall be covered under the provisions of Section 6( c) of this Agreement (Termination by the Company Without Cause), unless otherwise provided in Sections 6(d), 6(d)(1), 6(e), 6(e)(1), 6(e)(2), or 6(e)(3), as applicable.

               (1) If a change in control of the Company takes place during the Term and any extension of this agreement, and the Chief Executive Officer (Mick Miller) and/or Plant Manager (Ed Thomas) do not continue employment after the change in control, and an offer of employment has been extended to the Executive, the Executive shall have the option to choose employment with the new Company or to be covered under the provisions of Section 6( c) of this agreement (Termination by the Company Without Cause).

          (e) Termination By The Company Through Change in Control of the Company related to any potential acquirer in discussions with the Company as of July

2008. If, as of July 2008 Red Trail Energy had entered in to merger negotiations with a potential acquirer, the following shall apply and Sections 6(d) and (d)(1) will not apply to any change in control that occurs due to those negotiations.

               (1) If a change in control occurs involving the potential acquirer (and/or its financial backers), and the Executive is not offered continued employment, then the Company’s obligation to the Executive shall be limited solely to (i) unpaid Base Salary plus any bonus and benefits accrued up to the effective date of termination; and (ii) payments equal to the Executive’s then-current Base Salary for a period of twelve (12) months, payable on the Company’s then current payroll practices during the twelve (12) months after termination or in one lump sum payment, at the Executive’s discretion.

               (2) If a change in control occurs involving the potential acquirer (and/or its financial backers) and the Chief Executive Officer (Mick Miller) and/or Plant Manager (Ed Thomas) do not continue employment after the change in control for a period not less than twelve (12) months, and an offer of employment has been extended to the Executive, the Executive shall have the option to choose employment with the new Company or to be covered under the provisions of Section 6(e)(1) of this agreement. If either the Chief Executive Officer or the Plant Manager leave employment within 6 months of the change of control date, the Executive shall have the option to continue employment or be covered under the provisions of Section 6(e)(1) of this Agreement. If either the Chief Executive Officer or the Plant Manager leave employment at any time after 6 months of the change of control date, Executive shall have the option, exercisable within 30 days of the date when the Chief Executive Officer or Plant Manager leave employment, to continue employment or be covered under the provisions of Section 6(e)(1) of this Agreement, except that Executive shall be entitled to only receive the then-current Base Salary for a period of six (6) months payable on the Company’s then current payroll practices during the six (6) months after termination or in one lump sum payment, at the Executive’s discretion.

               (3) Termination By the Executive for “Good Reason.” If a change in control occurs involving the potential acquirer (and/or its financial backers), the Executive may exercise his right, under the terms of this Agreement, to terminate his employment for the following reasons (“Good Reason”): (i) being asked to relocate to a location different from the current plant location (Richardton, ND), (ii) reassignment of duties inconsistent with duties customary to the Executive’s position, (iii) a demotion from current Executive position or (iv) a proposed decrease in salary or benefits, the Executive shall be entitled to receive (i) the Base Salary and other accrued but unpaid bonus and benefits earned up to the date of requested termination and (ii) payments equal to the Executive’s then-current Base Salary for a period of (12) months payable on the Company’s then current payroll practices during the twelve (12) months after termination or in one lump sum payment, at the Executive’s discretion. The Executive shall be able to exercise his right, under this Section 6(e)(3) if any of the above mentioned circumstances occur within six (6) months of the date of a change in control occurring in a transaction with Asset Solutions, LLC.

          (f) Termination By The Executive. The Executive has the right, at any time during the Term and any extension of this Agreement, to terminate his employment with the Company by giving written notice to the Company, which termination shall be effective sixty

(60) calendar days from the date of such written notice. If the Executive terminates his employment, the Company’s obligation to the Executive shall be limited solely to the payment of unpaid Base Salary accrued up to the effective date of termination plus any accrued but unpaid bonus and benefits except as provided in Sections 6(d), 6(d)(1), 6(e), 6 (e)(1), 6(e)(2), 6(e)(3) and 6(f)(1).

               (1) Termination By the Executive for “Good Reason.” If, at any time during the Term and any extension of this Agreement, the Executive exercises his right, under the terms of this Agreement, to terminate his employment for the following reasons (“Good Reason”): (i) being asked to relocate to a location different from the current plant location (Richardton, ND), (ii) reassignment of duties inconsistent with duties customary to the Executive’s position, (iii) a demotion from current Executive position or (iv) a proposed decrease in salary, the Executive shall be entitled to receive (i) the Base Salary and other accrued but unpaid bonus and benefits earned up to the date of requested termination and (ii) payments equal to the Executive’s then-current Base Salary for a period of (6) months payable on the Company’s then current payroll practices during the six (6) months after termination or in one lump sum payment, at the Executive’s discretion.

          (f) Termination Upon Disability. This Agreement shall terminate upon Executive’s disability, as defined below. Executive shall be entitled to receive (i) the Base Salary and other accrued but unpaid bonus and benefits earned up to the date of Executive’s disability and (ii) payments equal to the Executive’s then current Base Salary for a period of six (6) months payable on the Company’s then current payroll practices during the six (6) months after the termination or in one lump sum, at the Executive’s discretion.

     For purposes of this Agreement, “Disability” shall mean (i) Executive is considered totally disabled under Company’s group disability plan in effect at the time, if any, or (ii) in the absence of a group disability plan applicable to Executive, Executive is disabled within the meaning of section 22(e)(3) of the Internal Revenue Code.

     7. Code Section 409A. Notwithstanding anything herein to the contrary, if any payments to be made to the Executive hereunder are subject to the requirements of Code Section 409A and the Company determines that Executive is a “specified employee” as defined in Code Section 409A as of the date of the termination, such payments shall not be paid or commence earlier than the date that is six months after the termination, but shall be paid or commence during the calendar year following the year in which the termination occurs and within thirty (30) calendar days of the earliest possible date permitted under Code Section 409A.

     8. Change in Control (defined). For purposes of this agreement, “Change of Control” shall mean a sale of all or substantially all of the assets of the Company; the event of a merger, exchange, reorganization of the Company with or into any other entity; or the occurrence of any transaction requiring member approval for a transaction involving the Company, such as a sale of all or substantially all of the Company’s assets.

     9. Successors; Assignment, Etc.; Third Party Beneficiaries.

          (a) Executive consents to and the Company shall have the right to assign this Agreement to its successors or assigns. All covenants or agreements hereunder shall inure to the benefit of and be enforceable by or against its successors or assigns.

          (b) Neither this Agreement nor any of the rights or obligations of the Executive under this Agreement may be assigned or delegated except as provided in the last sentence of this Section 9(b). This Agreement and all rights of the Executive hereunder shall inure to the benefit of and be enforceable by, and shall be binding upon, the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees, and legatees. If the Executive should die while any amounts would still be payable to him hereunder had he continued to live, then all such amounts (unless otherwise provided herein) shall be paid in accordance with the terms of this Agreement to the devisee, legatee, or other designee under the Executive’s testamentary will or, if there be no such will, to the Executive’s estate.

     10. Notice. For purposes of this Agreement, all notices and other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered in person or when mailed by United States registered or certified mail, return receipt requested, first-class postage prepaid, addressed as follows:

or to such other address as any party may have furnished to the other in writing in accordance with this Section 10, except that notices of any change of address shall be effective only upon actual receipt.

     11. Miscellaneous. No provision of this Agreement may be modified, waived, or discharged unless such waiver, modification, or discharge is agreed to in writing signed by the Executive and such officers as may be specifically designated by the board of governors of the Company. No waiver by either party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of any similar or dissimilar condition or provision at the same or any other time. No agreements or representations (whether oral or otherwise, express or implied) with respect to the subject matter of this Agreement have been made by either party which are not set forth expressly in this Agreement or which are not specifically referred to in this Agreement. The validity, interpretation, construction, and performance of this Agreement shall be governed by the laws of the State of North Dakota. Unless the context otherwise requires, words using the singular or plural number shall respectively include the plural or singular number, and pronouns of any gender shall include each other gender.

     12. Validity. If any provision of this Agreement is held to be illegal, invalid, or unenforceable under any present or future law or court decision, and if the rights or obligations

of the Company and the Executive will not be materially and adversely affected thereby, (a) such provision shall be fully severable from this Agreement, (b) this Agreement shall be construed and enforced as if such illegal, invalid, or unenforceable provision had never comprised a part hereof, (c) the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance herefrom, and (d) in lieu of such illegal, invalid, or unenforceable provision, there shall be added automatically as a part of this Agreement a legal, valid, and enforceable provision as similar to the terms and intent of such illegal, invalid, or unenforceable provision as may be possible.

     13. Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.

     14. Litigation. The parties agree that the exclusive venue for any litigation commenced by the Company or the Executive relating to this Agreement shall be the state courts located in Burleigh County, North Dakota and the United States District Court of North Dakota in Burleigh County, North Dakota. The parties waive any rights to object to venue as set forth herein, including any argument of inconvenience for any reason.

     15. Entire Agreement. This Agreement constitutes (i) the binding agreement between the parties and (ii) represents the entire agreement between the parties and supersedes all prior agreements relating to the subject matter contained herein. All prior negotiations concerning Executive’s employment with the Company have been merged into this Agreement and are reflected in the terms herein.

     16. Consideration. Executive and Company agree that the provisions of this Agreement are reasonable and necessary for the protection of Company and its business. In exchange for Executive’s agreement to be bound by the terms of this Agreement, Company has provided Executive the consideration provided in this Agreement, which Executive accepts and acknowledges as adequate consideration. All benefits and other compensation provided by Company to Executive are subject to change from time to time at the discretion of Company with or without prior notice. Executive agrees that any changes in his or her compensation and/or benefits during the Term or any extension of this Agreement will not impair the validity or enforceability of the remaining terms of this Agreement.

          In Witness Whereof, the parties have duly executed and delivered this Agreement as of the date first above written.