exhibit10-16.htm


    Exhibit
      10.16

    January
      18, 2008

    


    Employment
      Letter

    Allen
      A.
      Perron

    123
      14th
      Avenue

     Kirkland,
      WA 98033

    


    Dear
      Mr.
      Perron:

    Please
      allow this letter to serve as the entire agreement between Better Biodiesel,
      Inc., d/b/a GeoBio Energy, Inc. (the “Company”) and you, Allen A. Perron (the
“Employee”) with respect to certain aspects of your employment with the Company
      (the “Employment Latter”).  The Company acknowledges and agrees that
      Mr. Perron is an independent Business Consultant serving other clients.

    Beginning
      Date

    The
      Employee will work for the Company beginning on January 18, 2008.

    Responsibilities

    Employee
      will serve as the Company’s Chief Financial Officer (CFO). Employee will be
      responsible for corporate accounting, financial statements and disclosures,
      system of internal controls, relations with independent CPA’s, and the filing of
      financial documents with the Securities and Exchange Commission.

    Compensation

    Salary:  $150
      per hour (“Salary”).  Upon signing this agreement, the Company will
      pay a $2,500 retainer to the Employee to be applied to future hours worked.
      Employee will submit hours worked every two weeks and Company will pay for
      such
      hours within 30 calendar days.

    Cash
      Bonus:  Availability and amount of bonus is discretionary on the part
      of GeoBio Energy, Inc. and its Board of Directors.

    Equity:  As
      of the date of this Employment Letter, the Company shall grant to the Employee,
      warrants representing 1% of the outstanding shares as of January 17, 2008 with
      an exercise price equal to the closing price as quoted in the public market
      as
      of that day. Or if no trading took place on that day, the closing price on
      the
      last day that a trade was made.  The warrants will vest: ten percent
      (10%) upon signing this agreement; 10% immediately subsequent to meeting each
      significant SEC filing requirement (i.e. 10Q, 10K, 8K with financial statements
      or pro forma financial statements or any registration statement) and 10% for
      any
      payment for services not made within 45 days of employee’s bill
      date.   The remaining unvested warrants will vest one year from
      the date of this agreement.   The warrants may be exercised on a
      cash or cashless basis.  The warrants shall expire three (3) years
      from the date that the warrants are granted.

    Other
      Compensation Provisions:

    The
      Company recognizes that Mr. Perron is an independent Business Consultant serving
      other clients. During the course of the Employee’s engagement hereunder, the
      Employee will remain a consultant serving other clients. Employee will endeavor
      to do so in a manner that will not detract from his responsibilities under
      this
      agreement.  The Company acknowledges and consents to such
      arrangement.

    Benefits

    The
      Employee will be eligible for any Company employment retirement and/or 401(k)
      plan and for vacation and holidays consistent with the Company’s policy as it
      applies to senior management, and the Employee will be exempt from any delay
      periods required for eligibility.

    The
      Employee must receive written evidence that the Company maintains directors’ and
      officers’ insurance to cover Employee in an amount reasonably acceptable to the
      Employee at no additional cost to the Employee, and the Company will maintain
      such insurance at all times while this agreement remains in effect.

    Furthermore,
      the Company will maintain such insurance coverage with respect to occurrences
      arising during the term of this agreement for at least three years following
      the
      termination or expiration of this agreement or will purchase a directors’ and
      officers’ extended reporting period, or “tail,” policy to cover the
      Employee.

    Termination

    The
      Company may terminate the Employee’s employment for any reason upon at least30
      days’ prior written notice to the Employee, such termination to be effective on
      the date specified in the notice, provided that such date is no earlier than
      30
      days from the date of delivery of the notice.  Likewise, the Employee
      may terminate his or her employment for any reason upon at least 30 days’ prior
      written notice to the Company, such termination to be effective on the date
      30
      days following the date of the notice.  The Employee will continue to
      render services and to be paid during such 30-day period, regardless of who
      gives such notice.  The Employee may terminate this agreement
      immediately if the Company has not remained current in its obligations under
      this letter or the Company engages in or asks the Employee to engage in or
      to
      ignore any illegal or unethical conduct.

    This
      agreement will terminate immediately upon the death or disability of the
      Employee.  For purposes of this agreement, disability will be as
      defined by the applicable policy of disability insurance or, in the absence
      of
      such insurance, by the Company’s Board of Directors acting in good faith.

    


    


    Miscellaneous

    This
      agreement contains the entire agreement between the parties with respect to
      the
      matters contained herein, superseding any prior oral or written statements
      or
      agreements.

    The
      Company agrees to allow Employee to use the Company’s logo and name in marketing
      materials for the sole purpose of identifying the Company as a current or past
      client of Mr. Perron. Mr. Perron will not use the Company’s logo or name in any
      press release or general circulation advertisement without the Company’s prior
      written consent.

    The
      provisions in this agreement concerning the payment of salary, bonus and equity
      will survive any termination or expiration of this agreement.

    The
      terms
      of this agreement are severable and may not be amended except in a writing
      signed by the parties.  If any portion of this agreement is found to
      be unenforceable, the rest of this agreement will be enforceable except to
      the
      extent that the severed provision deprives either party of a substantial portion
      of its bargain.

    This
      agreement will be governed by and construed in all respects in accordance with
      the laws of the State of Washington, without giving effect to conflicts-of-laws
      principles.

    Each
      person signing below is authorized to sign on behalf of the party indicated,
      and
      in each case such signature is the only one necessary.

    Please
      sign below and return a signed copy of this letter to indicate your agreement
      with its terms and conditions.

    Sincerely
      yours,

     

          Better
      Biodiesel, Inc.

    


    


        ________________________________

          Name:
      David M. Otto

          Title:
      Director, Authorized Officer

          Acknowledged
      and agreed by:

    


        EMPLOYEE:

        Allen
      A. Perron

    


    


      _________________________________

             Allen
      A. Perron

    


    Date:
      1/18/07