EMPLOYMENT CONTRACT



                  AGREEMENT made the 17th day of June, 2006



BETWEEN:


                                          Steven Reader, of the City of Oakville
                                          in the Province of Ontario

                                          (the "Employee")

                                          - and -


                                          NORTHERN ETHANOL, INC., a corporation
                                          incorporated under the laws of
                                          Delaware

                                          ("Northern" or the "Company")

            RECITALS:

            WHEREAS  the  Employee is an  experienced  senior  executive  in the
energy industry.;

            AND  WHEREAS  Northern  wishes to employ  the  Employee  as its Vice
President Development and Chief Operating Officer;

            AND WHEREAS the  Employee is willing to be employed by Northern  and
render such services on the terms and conditions hereinafter set forth;

<PAGE>

                  NOW, THEREFORE, IN CONSIDERATION of the mutual covenants and
agreements herein contained and of other good and valuable consideration, the
parties agree with one another as follows:


1.    INTERPRETATION

1.1   DEFINITIONS

         In this  agreement,  unless there is something in the subject matter or
context inconsistent therewith,

         "ACT" means the Employment  Standards Act of Ontario as the same may be
         amended or restated, or any comparable successor legislation;

         "AFFILIATE"  and  "SUBSIDIARY"  shall  have  the  respective   meanings
         ascribed to such terms by the Business  Corporations  Act  (Ontario) on
         the date hereof;

         "BUSINESS DAY" means any day of the week except Saturday, Sunday or any
         statutory or civic holiday observed in Toronto, Ontario;

         "CONFIDENTIAL  INFORMATION"  includes,  but  is  not  limited  to:  any
         information,  know-how, data, patent,  copyright,  Intangible Property,
         trade  secret,  process,  technique,  program,  design or formula;  any
         marketing,  advertising,  financial,  commercial,  sales or programming
         matter;  any  customer or supplier  lists or pricing  information;  any
         confidential  information of customers,  suppliers or any other parties
         to whom the Company has  obligations  of  confidentiality;  any budget,
         plan, model or analysis; any written materials, compositions, drawings,
         diagrams,   computer  programs,   studies,  work  in  progress,  visual
         demonstrations,  ideas or concepts;  any other data including the terms
         and  conditions of any completed or potential  transaction;  and any of
         the forgoing derived in whole or in part from Confidential  Information
         whether in oral,  written,  graphic,  electronic,  or any other form or
         medium  whatsoever,  of the or  relating  to the  Company  that  may be
         disclosed to, or in the possession of, the Employee in connection  with
         his employment hereunder. The term "Confidential Information" shall not
         include the following:

<PAGE>

         (i)      information  which is now or which hereafter  becomes publicly
                  known or available  through no negligent act or failure on the
                  part of the Employee, whether through breach of this Agreement
                  or otherwise; or

         (ii)     information  which the Employee is by law, order of a Court of
                  competent jurisdiction,  or other legal compulsion required to
                  disclose   (provided,   that  information  shall  continue  to
                  constitute Confidential Information is subject to a protective
                  order or other  action  of the  Court  or the  parties  to the
                  proceeding in order to protect the confidentiality thereof);


         "INCLUDING"  means  "including  without  limitation"  and  shall not be
         construed  to limit  any  general  statement  which it  follows  to the
         specific or similar items or matters immediately following it;

         "INTANGIBLE PROPERTY" means all discoveries,  inventions, improvements,
         techniques, concepts and ideas, whether patentable or not, know-how and
         similar intangible property made,  discovered,  conceived,  invented or
         improved by the Employee  during the term of his employment  hereunder,
         whether alone or with others and whether during  regular  working hours
         and through the use of the  facilities  and  property of the Company or
         any affiliate or otherwise, in any way relating to the Company; and

         "PERSON"  includes  an  individual,  corporation,   partnership,  joint
         venture, trust, unincorporated organization, the Crown or any agency or
         instrumentality thereof or any other entity recognized by law.

1.2   HEADINGS

         The division of this agreement into  paragraphs and  subparagraphs  and
the insertion of headings are for  convenience  of reference  only and shall not
affect the  construction or  interpretation  of this agreement.  The headings in
this agreement are not intended to be full or precise  descriptions  of the text
to  which  they  refer  and  shall  not be  considered  part of this  agreement.
References to a paragraph or a subparagraph are to the  corresponding  paragraph
or subparagraph of this agreement.

<PAGE>

1.3   NUMBER AND GENDER

         In this  agreement,  words  in the  singular  include  the  plural  and
vice-versa and words in one gender include all genders.

1.4   CURRENCY

         In this agreement, all financial amounts are in Canadian Dollars.


2.    EMPLOYMENT

         The Company agrees to employ the Employee and the Employee accepts such
employment on and subject to the terms of this agreement.  The Employee shall be
the Vice President  Development and Chief  Operating  Officer and shall have the
duties and responsibilities set out in Section 4.


3.    TERM

         The  Employee's  employment  shall  commence  on July 15th,  2006 or as
mutually agreed and continue until July 14th, 2010 unless earlier  terminated in
accordance with Section 11 (the "TERM").


4.    DUTIES AND RESPONSIBILITIES

         So long as this  agreement  continues  in full  force and  effect,  the
Employee shall

      (a)   devote his energies to the business and affairs of NORTHERN;

      (b)   well and faithfully serve NORTHERN; and

      (c)   use his best efforts,  skills and abilities to promote the interests
            of NORTHERN.

<PAGE>

            The Employee's duties and responsibilities shall also include:

            (i)   all  technology,  marketing  and related  commercial  services
                  necessary  or  incidental  to the sale of ethanol  products in
                  North America and Europe;

            (ii)  business development services; and

            (iii) generally providing such services as are required to carry out
                  the marketing , development and financial affairs of a company
                  with operations and assets similar to Northern.

         The Employee  shall also perform such other tasks and duties related to
the  foregoing as may from time to time be  determined by the Board of Directors
or such person as the Chief Executive Officer may designate. The Employee shall,
in carrying out the  obligations  under this  agreement,  report directly to the
Chief Executive Officer, or such person as the Board of Directors may designate.
The Employee shall work based out of the Company's offices in Toronto, Ontario.

         The Employee acknowledges that the hours of work involved will vary and
be irregular and are those hours required to meet the objectives of the Company.
The Employee  acknowledges that this paragraph  constitutes an agreement to work
such hours where such agreement is required by applicable legislation.

         The Employee  shall also submit to such medical and other  examinations
and provide  such  samples as are  reasonably  necessary  to obtain key man life
insurance on his life.


5.    CONFIDENTIAL INFORMATION

         The Employee acknowledges that during the course of his employment with
the Company,  the Employee will acquire Confidential  Information.  Confidential
Information  is the  exclusive  property of the Company.  Further,  the Employee
acknowledges that the Company's business and Northern depend  significantly upon
maintaining  the  confidentiality  of  Confidential   Information.   In  partial
consideration for the Employee's  employment  hereunder,  the Employee covenants
and agrees that he shall not, at any time during the term of his  employment  by
the Company or  thereafter,  until such  information  becomes part of the public
domain,  reveal,  divulge or make known to any persons or entity (other than the
Company  and its duly  authorized  Employees)  or use for his own or any other's
benefit, or to the detriment of the Company, the Confidential Information or his
knowledge of any of the business or financial affairs of Northern,  which during
or after his employment pursuant hereto is made known to the Employee.

<PAGE>

6.    INVENTIONS AND DISCOVERIES

         The  Employee  agrees to fully and freely (and  without  expense to the
Company during the Term) communicate to the Company, and the Employee assigns to
the Company, all Intangible Property.  All Intangible Property shall be the sole
and exclusive  property of the Company and, upon its request at any time or from
time to time  during  the  term  or  after  the  termination  of the  Employee's
employment,  the Employee  shall  deliver to the Company all designs,  drawings,
sketches, models,  prototypes,  notes and other data and records relating to the
Intangible  Property,  that may be in his  possession or otherwise  available to
him. The Employee  agrees that he will at all times (both during the continuance
of his  employment  hereunder and at all times  thereafter  provided the Company
pays for all reasonable and approved  expenses  related thereto) take all action
and execute and file all such  documents to assist the Company or its  assignees
in every way to protect  the rights of the Company or its  assignees  under this
paragraph and to vest in the Company or its  assignees the entire right,  title,
interest and benefits (including without limitation patent and copyright rights)
in and to any and all of the Intangible Property. The Employee shall not (either
during the  continuance of his employment  hereunder or at any time  thereafter)
disclose any of the  Intangible  Property to any person,  firm or company or use
any of the  Intangible  Property for his own  purposes,  to the detriment of the
Company or for any purpose  other than those of the Company and its  affiliates.
Without  limiting  the  foregoing,  Employee  recognizes  and  understands  that
Employee's  duties at the  Company may include  the  preparation  of  materials,
including without  limitation  written or graphic  materials,  and that any such
materials  conceived or written by Employee shall be done as "work made for hire
as defined and used in the United States Copyright Act of 1976, 17 U.S.C. ss. et
seq.". In the event of publication of such materials,  Employee understands that
since the work is a "work made for hire", the Company will solely retain and own
all rights in said materials, including right of copyright.


7.    VACATION

         The Employee  shall be entitled to 4 weeks of paid vacation per year to
be taken at such times as agreed to by the parties.  Any unused  vacation  shall
accrue to the  following  year up to a maximum of ten days.  Any unused  balance
beyond the maximum of ten days will be paid out by the Company. The Company also
agrees to pay the Employee car expenses in the amount of $1,000.00 per month.

<PAGE>

8.    EXPENSES

         The Company  shall pay to the Employee on a monthly  basis upon receipt
of a true, complete and accurate monthly expense report with supporting invoices
and other documentation, the Company shall pay or reimburse the Employee for all
traveling and other direct out-of-pocket expenses actually and properly incurred
by him in connection  with the  performance  of his duties  hereunder.  With the
exception  of  expenses  related to business  travel  approved by the Company in
advance any single expense over $500.00 and any monthly  expenses over $2,000.00
in the  aggregate  shall only be paid or  reimbursed by the Company if they have
been approved by the Company in advance of their incurrence.


9.    COMPENSATION

9.1   SALARY

         The Employee shall receive a monthly salary of $22,000.00 payable on or
before the 30th day of each month,  subject to applicable  statutory  deductions
(the "Base Salary").  The "Base Salary" will be adjusted to $25,000 monthly upon
confirmation  of all financing  required for  construction  of the first ethanol
plant.  Additionally  when the first ethanol plant  commences  construction  the
employees  "Base Salary"  shall be increased to $27,000.00  monthly and when the
first  plant  commences  production  the  base  salary  shall  be  increased  to
$30,000.00 monthly. The Employee shall also be entitled to an annual bonus up to
fifty percent (50%) of his annual  compensation.  The amount of such bonus shall
be  determined  prior to February 15th in each year and paid by month end by the
Board of Directors having regard to its financial performance and the Employee's
individual  performance.  The  Employee  shall have vested,  in equal  quarterly
instalments  over  thirty-six  [36] months,  Three  Hundred  Thousand  [300,000]
options for common  shares at a strike  price of $1.00 each.  The common  shares
issued on the exercise of these  options shall be  unrestricted  as permitted by
law.

<PAGE>

9.2   STOCK OPTION PLAN

         The Company  will  implement  an  incentive  stock  option plan for its
officers,  directors,  employees  and  service  providers.  Upon  implementation
(including receipt of all necessary  regulatory approval) of the Company's stock
option plan,  the Employee  shall be entitled to  participate as an executive in
such plan in accordance  with the terms and  conditions  thereof and  applicable
law.



10.   BENEFITS

         The Employee  acknowledges  and agrees that Company does not  currently
maintain any benefit plans for its  employees  including  group life,  accident,
sickness,  dental and medical insurance or pension plans. The Company intends to
adopt a benefit  plan,  in its  discretion,  commensurate  with those  generally
offered to  employees  in the ethanol or  petrochemical  industry.  The Employee
shall be entitled to  participate  at no direct cost as an executive in any such
plan in accordance with the terms and conditions thereof.

11.   TERMINATION

         The  Employee's  employment  hereunder may be terminated in each of the
circumstances in subparagraphs 11.1 to 11.4 inclusive:


11.1  DEATH

         The Employee's employment hereunder shall automatically  terminate upon
his death.  For the  purposes  of Section  12, in the event that the  Employee's
employment  is  terminated  pursuant to this Section 11.1 or Section  11.2,  all
references  to  Employee,  shall be deemed to be  references  to the  Employee's
heirs,  executors,   administrators  or  legal  personal   representatives,   as
applicable in the circumstances.

11.2  DISABILITY

         The Company may terminate the  Employee's  employment  hereunder if the
Employee,  by reason of physical or mental disability,  is unable to fulfill his
obligations  and duties  hereunder on the basis agreed in this  contract  (other
than by reason of authorized  vacation or leave) for a period in excess of three
consecutive  months,  subject to applicable law. It is  acknowledged  and agreed
that the salary  contemplated  by Section 9.1 is not payable during periods that
the Employee is unable to fulfill his  obligations  and duties  hereunder on the
basis  agreed  in this  contract  after  three  months(other  than by  reason of
authorized vacation or leave).

<PAGE>

11.3  CAUSE

         The Company may  terminate  the  Employee's  employment  hereunder  for
cause. The term "cause" shall include:

         (a)      any  material  failure by the  Employee to observe and perform
                  any of his covenants  and  obligations  hereunder,  where such
                  failure  has not been  cured  within  two (2) weeks of written
                  notice thereof by the Company to the Employee.

         (b)      fraud and dishonesty,  gross negligence,  unethical or immoral
                  conduct or willful  malfeasance  by the Employee in connection
                  with the performance of his duties hereunder; or


11.4  WITHOUT CAUSE

During the nine (9) month period  immediately after the commencement of the Term
(the  "Earn  Out  Period"),  the  Company  may  only  terminate  the  Employee's
employment for cause pursuant to Section 11.3 hereof, and shall therefore not be
entitled  to  terminate  the  Employee  during the Earn Out Period by  providing
notice or  payment in lieu of  notice.  The  Company  may  terminate  Employee's
employment  hereunder at any time without cause on six (6) months notice (or pay
in lieu of notice).  Except as  otherwise  outlined in this  section,  after the
effective date of such termination, the Employee shall be entitled to no further
rights or benefits hereunder or in connection with his employment by the Company
whether pursuant to this Agreement, the Act, applicable law or otherwise.  After
the  termination of the employment of the Employee  hereunder for any reason the
Employee  shall  not,  directly  or  indirectly,  take any  action to damage the
goodwill,  the business or the relationships of Northern. The Employee expressly
agrees  that  the  foregoing   represents  the  Company's  maximum   termination
obligations.

<PAGE>

12.   COMPETITION AND NON-SOLICITATION

         The Employee  shall not during the two (2) years  following the date of
         the Agreement:

         (a)      work for, or be  interested  in, any business  which  provides
                  services  or  products  which are  directly  competitive  with
                  services or products offered by the Company or a subsidiary or
                  affiliate of Company.  For the purpose of this Agreement,  the
                  term "work for or be interested  in any  business"  means that
                  the Employee is a stockholder,  director,  officer,  employee,
                  partner, individual proprietor, lender or consultant with that
                  business, but not if (i) his interest is limited solely to the
                  passive ownership of five percent (5%) or less of any class of
                  the equity or debt  securities of a  corporation  whose shares
                  are listed for  trading on a national  securities  exchange or
                  traded in the  over-the-counter  market. In the event that any
                  part of this Section 12 is adjudged  invalid or  unenforceable
                  by any court of record,  board of  arbitration  or judicial or
                  quasi judicial entity having jurisdiction thereof by reason of
                  length of time, geographical coverage,  activities covered, or
                  for any  other  reason,  then  the  invalid  or  unenforceable
                  provisions  of this  covenant  shall be  deemed  reformed  and
                  amended to the maximum extent permissible under applicable law
                  and  shall  be  enforced  and  enforceable  as so  amended  in
                  accordance  with the  intention  of the  parties as  expressed
                  herein.

         (b)      directly  or  indirectly:  (i)  solicit the trade of, or trade
                  with, any present or  prospective  customer of the Company for
                  any business purpose that directly or indirectly competes with
                  the  business  of  Company or a  subsidiary  or  affiliate  of
                  Company;  or (ii) solicit or induce,  or attempt to solicit or
                  induce,  any  employee  of  Company to leave  Company  for any
                  reason  whatsoever,  or assist or participate in the hiring of
                  any employee of Company to work for another entity.

13.   GENERAL

13.1  INJUNCTIVE RELIEF

<PAGE>

         The Employee acknowledges that the injury that would be suffered by the
Company as a result of a breach of the provisions of any provision of Sections 5
and 12 of this  Agreement  would be  irreparable  and that an award of  monetary
damages  to the  Company  for  such a  breach  would  be an  inadequate  remedy.
Consequently Company will have the right, in addition to any other rights it may
have, to obtain injunctive relief to restrain any breach or threatened breach or
otherwise to  specifically  enforce any  provisions of Sections 5 and 12 of this
Agreement,  subject to applicable  law, and the Company will not be obligated to
post bond or other security in seeking such relief.

13.2  TOLLING PERIOD


         The non-competition,  non-disclosure and  non-solicitation  obligations
contained in Sections 5 and 12 of this Agreement shall be extended by the length
of time during which Employee shall have been in breach of any of the provisions
of such Sections 5 and 12.



13.3  ENTIRE AGREEMENT

         This agreement  constitutes  the entire  agreement  between the parties
pertaining to the  employment of the Employee by the Company and  supersedes all
prior agreements, negotiations, discussions and understandings, written or oral,
between the parties. There are no representations, warranties, conditions, other
agreements  or  acknowledgements,  whether  direct  or  collateral,  express  or
implied, that form part of or affect this agreement,  or which induced any party
to enter into this agreement or on which reliance is placed by any party, except
as specifically set forth in this agreement.


13.4. AMENDMENT

         This  agreement  may be  amended  or  supplemented  only  by a  written
agreement signed by each party.

<PAGE>

13.5. WAIVER OF RIGHTS

         Any  waiver  of, or consent to depart  from,  the  requirements  of any
provision  of this  agreement  shall be  effective  only if it is in writing and
signed by the party  giving it, and only in the  specific  instance  and for the
specific  purpose  for which it has been given.  The rights and  remedies of the
parties to this  Agreement  are  cumulative  and not  alternative.  Neither  the
failure  nor any  delay by either  party in  exercising  any  right,  power,  or
privilege under this Agreement will operate as a waiver of such right, power, or
privilege,  and no single or  partial  exercise  of any such  right,  power,  or
privilege will preclude any other or further  exercise of such right,  power, or
privilege or the exercise of any other right, power, or privilege.


13.6. APPLICABLE LAW

         This  agreement  shall be governed by and construed in accordance  with
the laws in force in the Province of Ontario.  Each party irrevocably submits to
the  non-exclusive  jurisdiction  of the courts of Ontario  with  respect to any
matter arising hereunder or related hereto.

13.7. TIME

         Time is and shall  remain of the essence of this  agreement  and all of
its provisions.

13.8. NOTICES

         Any notice, demand or other communication (in this Section, a "notice")
required  or  permitted  to be given or made  hereunder  shall be in writing and
shall be sufficiently given or made if:

         (a)      delivered in person during normal business hours on a Business
                  Day and left with a receptionist or other responsible Employee
                  of the  relevant  party at the  applicable  address  set forth
                  below;

         (b)      sent by prepaid first class mail; or

         (c)      sent by any electronic  means of sending  messages,  including
                  telex or facsimile transmission, which produces a paper record
                  ("Electronic  Transmission") during normal business hours on a
                  Business Day charges  prepaid and  confirmed by prepaid  first
                  class mail;
<PAGE>

                  in the case of a notice to the Employee, addressed to him at:
                      221 Douglas Avenue
                      Oakville, ON   L6J 3S2

                  and in the case of a notice to the Company, addressed to it
                  at:
                      Northern Ethanol Inc.
                      193 King Street East,
                      Toronto, Ontario
                      Attention:  CEO
                      Telecopier No.: 416-867-9675

         Each notice sent in  accordance  with this  Section  shall be deemed to
have been received:

         (a)      on the day it was delivered;

         (b)      on the third Business Day after it was mailed  (excluding each
                  Business   Day  during   which   there   existed  any  general
                  interruption  of postal  services  due to  strike,  lockout or
                  other cause); or

         (c)      on the same day that it was sent by  Electronic  Transmission,
                  or on the  first  Business  Day  thereafter  if it was sent by
                  Electronic  Transmission after 5:00 p.m. local time or the day
                  on  which  it was sent by  Electronic  Transmission  was not a
                  Business Day.

         The Employee or the Company may change the address for notice by giving
notice to each other as provided in this Section.

13.9. NO THIRD PARTY BENEFITS

         The terms and provisions of this Agreement are intended  solely for the
benefit of the Employee and Northern and their respective affiliates, successors
or permitted assigns, and it is not the intention of the parties to confer third
party beneficiary rights upon any other person.

<PAGE>

13.10. ASSIGNMENT

         Neither this agreement nor any rights or obligations hereunder shall be
assignable  by the Employee  without the prior  written  consent of the Company.
Subject  thereto,  this  agreement  shall enure to the benefit of and be binding
upon the parties and their respective heirs,  executors,  administrators,  legal
personal  representatives,  successors  (including  any  successor  by reason of
amalgamation or statutory arrangement of any party) and permitted assigns.

13.11 NO PARTNERSHIP OR JOINT VENTURE OF AGENCY

         None of the  parties  to this  Agreement  are nor  shall any of them be
deemed to be partners  or joint  venturers  with one another and nothing  herein
shall be construed so as to impose any liability as such on any of them.

13.12. FURTHER ASSURANCES

         Each party shall do such acts and shall execute such further documents,
conveyances,  deeds,  assignments,  transfers  and the like,  and will cause the
doing of such acts and will cause the execution of such further documents as are
within its power as any other  party may in writing at any time and from time to
time reasonably request be done and or executed, in order to give full effect to
the provisions of this agreement.

<PAGE>

         IN WITNESS  WHEREOF the parties have duly executed this  agreement this
17th day of June, 2006.

                                            /s/Steven Reader
                                            --------------------
                                            Steven Reader


                                            NORTHERN ETHANOL, INC.


                                            By:/s/ Gordon Laschinger
                                               ------------------------
                                            Gordon Laschinger,
                                            Chief Executive Officer