Document:

Exhibit
4.2

    

    AMENDED
AND RESTATED MEMBER CONTROL AGREEMENT

    FOR

    RED
TRAIL ENERGY, LLC

     

    This is
an Amended and Restated Member Control Agreement for Red Trail Energy, LLC,
dated effective as of May 28, 2009 by and among Red Trail Energy, LLC, a North
Dakota limited liability company, and the Persons named on the attached Schedule
A.

     

    ARTICLE
1.

    DEFINITIONS

     

    1.1           Defined
Terms.  The terms defined
in this Article shall have the meanings given to them in this Article for
purposes of this Agreement.  Certain other capitalized terms in this
Agreement may be defined elsewhere in this Agreement.  All defined
terms in this Agreement include the singular and the plural as the context
indicates.

     

    1.2           Agreement.  “Agreement” means
this Member Control Agreement as amended or restated.

     

    1.3           Articles
of Organization.  “Articles of
Organization” or “Articles” means the Articles of Organization for the Company
filed with the North Dakota Secretary of State as amended or
restated.

     

    1.4           Board of
Governors.  “Board of
Governors” or “Board” means the Board of Governors of the Company.

     

    1.5           Capital
Accounts.  “Capital
Accounts” mean the capital accounts required to be maintained by the Company for
each Member as provided in this Agreement.

     

    1.6           Code.  “Code” means the
Internal Revenue Code of 1986, as amended, and any comparable successor to such
Code.  All references to a section of the Code shall mean and include
any subsequent amendment or replacement of such section.

     

    1.7           Company.  “Company” means
Red Trail Energy, LLC.

     

    1.8           Event of
Termination.  An “Event of
Termination” means an event described in Section 13.1.

     

    1.9           Financial
Rights.  “Financial
Rights” mean a Person’s rights to share in income, gain, receipt, loss,
deduction, credit and distribution as provided in this Agreement and any right
to assign such rights.

     

    1.10        
Governance
Rights.  “Governance
Rights” mean all of a Member’s rights as a Member in the Company except for
Financial Rights or any right to assign Financial Rights.

    
      
         

      

      
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    1.11         Governor.  “Governor” or
“Board member” means each natural person serving on the
Board.  Governors or Board members are collectively referred to as
“Governors” or “Board members.”  A Governor must be a Member of the
Company, or an authorized representative of an entity member.

     

    1.12         LLC
Act.  “LLC Act” means
the North Dakota limited liability company act, as amended, and any comparable
successor to such LLC Act.  All references to a section of the LLC Act
shall mean and include any subsequent amendment or replacement of such
section.

     

    1.13         Members.  “Members” mean
all Persons reflected in the required records of the Company as the owners of
all or some Governance Rights of a Membership Interest.  Members are
individually referred to as a “Member.”  A Person may be a Member
without having voting rights, but a Person is not a Member if the Person’s
Membership Interest consists only of Financial Rights.

     

    1.14         Membership
Interest.  “Membership
Interest” means the interest in the Company consisting of each Person’s
Financial Rights and/or Governance Rights and any right such Person has to
assign such Person’s Financial Rights and/or Governance Rights.  The
Membership Interests for all such Persons are collectively referred to as the
“Membership Interests.”

     

    1.15         Officer.  “Officer” means
the natural person elected, appointed, or otherwise designated as an Officer
pursuant to this Agreement and the LLC Act, including the President and
Treasurer.  An Officer need not be a Member of the
Company.  An Officer is a “Manager” for purposes of the LLC
Act.

     

    1.16         Person.  “Person” includes
a natural person or a domestic or foreign limited liability company,
corporation, partnership, limited partnership, joint venture, association,
business trust, estate, trust, enterprise, and any other legal or commercial
entity.

     

    1.17         Treasury
Regulations.  The “Treasury
Regulations” mean the treasury regulations promulgated under the
Code.

     

    1.18         Units.  “Units” are used
to designate Membership Interests as provided in Article 4 of this
Agreement.

     

    ARTICLE
2.

    SCOPE
AND EFFECT OF AGREEMENT

     

    2.1           Member
Control Agreement.  The Persons who
are parties to this Agreement intend to make specific arrangements relating to
the (i) formation, operations, ownership, governance, management, and
dissolution of the Company; (ii) allocation of income, receipt, gain, loss,
deduction, credit, and distribution; (iii) receipt of additional capital,
admission of new Members and all valuation issues associated with the receipt of
such additional capital and admission of Members; (iv) transfer or encumbrance,
whether voluntary or involuntary, of Membership Interests; and (v) other matters
related to the Company.  This Agreement shall constitute a Member
Control Agreement under Section 10-32-50 of the LLC Act.  It is
expressly intended that, during the entire term of this Agreement, the
provisions of this Agreement shall supersede any provisions of the LLC Act, as
they now exist or as may be subsequently amended or restated, that are
inconsistent or conflict with the provisions of this Agreement to the maximum
extent permitted by law.

    
      
         

      

      
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    2.2           Prior
Agreements.  This Agreement
supersedes all prior agreements to which any or all of the parties to this
Agreement are parties to the extent that such prior agreements are inconsistent
with this Agreement.

     

    2.3           Parties
Subject to Agreement.  This Agreement
shall be binding on and inure to the benefit of the Company; each Person owning
a Membership Interest; and their respective heirs, legal representatives,
successors, and assigns.  This Agreement is enforceable by and against
Persons who are parties to this Agreement, and this Agreement is binding upon
and enforceable against Persons who acquire an interest in a Membership Interest
or in a contribution agreement having knowledge of the existence of this
Agreement.  A Person’s express agreement to be bound by this Agreement
or any amendment or restatement of this Agreement may be evidenced by such
Person or such Person’s legal representative either (i) signing this Agreement
or such amendment or restatement, or any predecessor Member Control Agreement of
the Company; (ii) signing a signature page to this Agreement or such amendment
or restatement that references this Agreement and/or such amendment or
restatement, or signing a signature page to any predecessor Member Control
Agreement of the Company; or (iii) signing any other document, statement or
instrument that evidences agreement to be a party to this Agreement and/or such
amendment or restatement, or signing any other document, statement or instrument
that evidences agreement to be a party to any predecessor Member Control
Agreement of the Company.

     

    2.4           Membership
Interests Subject to Agreement.  This Agreement
shall apply to all Membership Interests of the Company which are now owned or
hereafter acquired by or on behalf of any Person, whether by purchase, dividend,
split, or other recapitalization, gift, devise, or any other means
whatsoever.

     

    2.5           Amendment
of Agreement.  The terms and
provisions of this Agreement may be amended, restated or terminated only by the
agreement of the Members holding at least 66.67% of the Units having Governance
Rights entitled to vote, except as may be otherwise specifically provided in
this Agreement, provided, however, in no event may this Agreement be amended to
provide for less than unanimous consent to avoid dissolution under
Section 13.2.   Amending or restating this Agreement will
not give rise to dissenters’ rights as provided in Section 10-32-54 of the LLC
Act.

     

    2.6           Enforcement
of Agreement.  If a Person
violates the terms of this Agreement, the Company and/or any Member may take
legal action against such Person or pursue an order compelling such Person to do
something or restraining such Person from doing something.  If a
Person violates the terms of this Agreement, the Company and/or any Member will
be entitled to recover from such Person reasonable attorney’s fees and costs
incurred in connection with enforcing the terms of this Agreement.  If
a court deems any term of this Agreement to be overly broad, superseded by the
LLC Act, or otherwise unenforceable or void, the court may modify and thereafter
enforce the term and the balance of this Agreement to the fullest extent
permitted by law, or sever such term if it cannot be so modified and enforce all
of the other terms of this Agreement to the fullest extent permitted by
law.

    
      
         

      

      
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    2.7           Arbitration.  Any dispute
arising out of or relating to this Agreement or the breach thereof (including
fraud in the inducement) shall be discussed between the parties in a good-faith
effort to arrive at a settlement.  If such dispute cannot be resolved
through discussion, such dispute shall be settled by arbitration
administered by the American Arbitration Association (“AAA”) under its
Commercial Arbitration Rules.  The AAA Optional Rules for Emergency
Measures of Protection shall also apply to the proceedings.  The
arbitration shall be conducted in Burleigh County, North Dakota by a single
arbitrator.  The costs of the arbitration, including the arbitrator’s
compensation, shall be borne equally by the parties, except that the arbitrator
shall have discretion to reallocate such costs.  Each party shall bear its
own attorneys’ fees.  Judgment on the award may be entered in any court
having jurisdiction thereof.

     

    ARTICLE
3.

    ORGANIZATION
OF COMPANY

     

    3.1          Formation
of the Company.  The Company is a
limited liability company formed pursuant to the terms of the LLC Act except as
otherwise provided in this Agreement, and the rights and liabilities of the
Persons owning or holding Membership Interests, Governors and Officers are as
provided under the LLC Act, except as otherwise provided in this
Agreement.

     

    3.2          Term of
the Company.  The Company shall
exist perpetually until it is terminated in accordance with this Agreement and
the LLC Act.

     

    3.3          Indemnification.  The Company shall
indemnify each Member, Governor, Officer and agent of the Company in such
manner, under such circumstances, and to such extent as permitted by Section
10-32-99 of the LLC Act.

     

    3.4          Tax
Matters.

     

    
      	
               
      

            	
              (1)

            	
              Tax
      Status.  The Company
      shall be classified and taxed as a partnership for federal and state
      income tax purposes except to the extent that the Company is to be
      disregarded as an entity for federal and state income tax purposes
      pursuant to applicable provisions of the Code.  If the Company
      is disregarded for income tax purposes, the Company shall not be
      disregarded as a separate legal entity for any other purpose, including
      but not limited to, diminishing in any respect the LLC Act providing that
      a Person owning or holding Membership Interests, Governor, Officer or
      other agent of the Company is not, merely on account of such status,
      personally liable for the acts, debts, liabilities, or obligations of the
      Company.

            

    

     

    
      	
               
      

            	
              (2)

            	
              Tax
      Matters Partner.  Any “tax
      matters partner” of the Company required to be appointed by the Code shall
      be the Person selected by the Board that meets the qualifications of the
      Code and applicable Treasury
Regulations.

            

    

    
      
         

      

      
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              (3)

            	
              Tax
      Elections.  All
      elections permitted or required to be made for federal or state income tax
      purposes on behalf of the Company, including but not limited to, the
      election under Section 754 of the Code, and all revocations of such
      elections, shall be made by the
Board.

            

    

     

    ARTICLE
4.

    MEMBERSHIP
INTERESTS, UNITS AND REGISTRATION

     

    4.1          Class of
Membership Interests.  The Company shall
initially have one class of Membership Interests, having the Governance Rights
and Financial Rights described in this Agreement.  The Board may
establish one or more additional classes or series of Units, designate each such
additional class or series, and fix the relative rights and preferences of each
such additional class or series.

     

    4.2          Additional
Classes of Membership Interests.  Membership
Interests of the Company of a different class or series than the existing
Membership Interests may only be issued by the Board.

     

    4.3          Units.  The Company shall
use Units to designate Membership Interests for purposes of allocating income,
gain, receipt, loss, deduction, credit, and distribution; voting; and such other
purposes as provided in this Agreement.

     

    
      	
               
      

            	
              (1)

            	
              General.  Each Unit
      shall represent Governance Rights consisting of one vote per Unit when a
      vote is permitted or required by this Agreement and the LLC Act and
      Financial Rights consisting of the right to the allocations of income,
      gain, receipt, loss, deduction and credit and the right to distributions
      as provided in the Agreement.

            

    

     

    
      	
               
      

            	
              (2)

            	
              Assignment.  If any
      Governance Rights or Financial Rights are separately assigned as provided
      in this Agreement, the Company shall reflect in the required records of
      the Company the number of Units designating Governance Rights and the
      number of Units designating Financial
Rights.

            

    

     

    
      	
               
      

            	
              (3)

            	
              Required
      Records.  Ownership
      of Membership Interests and the Units designating Membership Interests,
      including the Governance Rights and Financial Rights, shall be as is
      reflected in the required records of the Company and shall be binding on
      the Company only to the extent so reflected.  No transfer or
      assignment of Membership Interests, Governance Rights or Financial Rights
      and no designation of Units shall be effective until reflected in the
      required records of the Company and then only to the extent so
      reflected.  The Company may request written evidence of any
      transfer or assignment in a form and content acceptable to the Company
      before reflecting any such transfer, assignment, or designation in the
      required records of the Company.  Any allocations of income,
      gain, receipt, loss, deduction, credit, and distribution by the Company
      and votes made, in each case, in reliance on the Company’s required
      records shall acquit the Company of all liability to any Person who may
      have an interest in such allocations, distributions, or
    vote.

            

    

    
      
         

      

      
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    ARTICLE
5.

    CAPITAL
AND OTHER ACCOUNTS

     

    5.1          Required
Capital Accounts.

     

    
      	
               
      

            	
              (1)

            	
              Establishment
      and Operation of Accounts.  The Company
      shall maintain a separate Capital Account for each Person owning a
      Membership Interest having Financial Rights in accordance with Section
      704(b) of the Code and applicable Treasury Regulations.  Each
      such Capital Account shall be (i) increased by the initial contribution
      made to the Company by such Person; (ii) increased by additional
      contributions, if any, made to the Company by such Person; (iii) decreased
      by distributions made from the Company to such Person; and (iv) otherwise
      adjusted as provided in this
Agreement.

            

    

     

    
      	
               
      

            	
              (2)

            	
              Maintenance
      of Accounts.  The Capital
      Accounts shall be maintained in accordance with Section 704(b) of the Code
      and applicable Treasury Regulations.  The Board may,
      notwithstanding any other provisions in this Agreement, alter the method
      by which Capital Accounts are maintained in order to comply with Section
      704(b) of the Code and applicable Treasury
  Regulations.

            

    

     

    
      	
               
      

            	
              (3)

            	
              Events
      Triggering Revaluation.  The Board
      shall restate the value of the Capital Accounts (and by so doing the value
      of the old contributions) upon (i) any contribution made to the Company;
      (ii) any distribution from the Company that was not made in proportion to
      all Units; and (iii) the determination by the Board that a re-valuation is
      appropriate to maintain Capital Accounts in accordance with Section 704(b)
      of the Code and applicable Treasury Regulations.  The Board may
      use any method it determines appropriate to revalue the Capital
      Accounts.  If a contribution is made to the Company, absent any
      valuation method specifically adopted by the Board, the Capital Accounts
      shall be deemed to have been revalued by the Board such that, immediately
      after the receipt of such contribution, the value of each Capital Account
      for each Person owning a Membership Interest having Financial Rights will
      bear the same proportion to the value of all Capital Accounts for all
      Persons owning Membership Interests having Financial Rights as the number
      of such Person’s Units designating Financial Rights bears to all of the
      Units designating Financial Rights.  It is intended that the
      methods of revaluation of Capital Accounts provided in this Section of the
      Agreement override Section 10-32-57 of the LLC Act including the
      revaluation of the old
contributions.

            

    

     

    5.2          Additional
Accounts.  The Company may
maintain additional accounts for each Person owning a Membership Interest having
Financial Rights to reflect the equity shown on the Company’s financial
statements, to record such Person’s basis for income tax purposes, or for any
other purpose.

    
      
         

      

      
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    5.3          No
Interest; Effect of Balances.  A positive
balance in a Capital Account or any other account for a Person shall not bear
interest; affect the allocation of income, gain, receipt, loss, deduction or
credit to a Person; or entitle a Person to any distributions or other economic
benefits.  A negative balance in a Capital Account or any other
account for a Person shall not constitute an obligation of such Person to the
Company except as specifically provided in this Agreement or as such Person may
otherwise specifically agree in writing.

     

    ARTICLE
6.

    ALLOCATIONS

     

    6.1          General
Allocations.  All items of
income, gain, receipt, loss, deduction, and credit of the Company for each
fiscal year shall be allocated among all of the Persons owning Membership
Interests having Financial Rights, and to such Person’s Capital Accounts, in the
proportion that the total number of each Person’s Units having Financial Rights
bears to all of the Units having Financial Rights.

     

    6.2          Allocations
for Income Taxes.  The allocations
in Section 6.1 apply with respect to allocations solely for income tax purposes
except as provided in this Section 6.2.  Allocations pursuant to this
Section 6.2 shall not affect, or in any way be taken into account in computing,
any Person’s Capital Account, right to vote, or allocable shares of income,
gain, receipt, loss, deduction, credit or distribution as provided in any other
Section of this Agreement.

     

    
      	
               
      

            	
              (1)

            	
              Section 704(c).  Income,
      gain, receipt, loss, deduction, and credit with respect to any property
      contributed to the Company shall, solely for income tax purposes, be
      allocated so as to take account of any variation between the adjusted
      basis of such property to the Company for income tax purposes and the
      value ascribed to such property in the Company’s books and records in
      accordance with Section 704(c) of the Code and applicable Treasury
      Regulations.  In addition, if the Capital Accounts or any asset
      of the Company is revalued pursuant to the provisions of this Agreement or
      Section 704(b) of the Code and applicable Treasury Regulations, subsequent
      allocations of income, gain, receipt, loss, deduction, and credit for
      income tax purposes with respect to such asset shall take account of any
      variation between the adjusted basis of such asset for federal income tax
      purposes and its adjusted value in the same manner as under Section 704(c)
      and applicable Treasury Regulations.  Any elections or other
      decisions relating to such allocations shall be made by the
      Board.

            

    

     

    
      	
               
      

            	
              (2)

            	
              Section
      754.  Any
      election by the Company under Section 754 of the Code to adjust the basis
      of the Company assets pursuant to Section 734 of the Code or Section 743
      of the Code shall be made in the sole discretion of the
      Board.  If such an election is made, allocations of Company
      items of income, gain, receipt, loss, deduction, and credit shall be made
      in a manner consistent with such allocation of items in accordance with
      Section 734 and/or Section 743 of the Code, as the case may
      be.

            

    

    
      
         

      

      
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              (3)

            	
              Section
      706(d).  In the
      event of any changes in Membership Interests during a fiscal year, then
      for purposes of this Article 6, the Board shall take into account the
      requirements of Section 706(d) of the Code and shall have the right to
      select any method of determining the varying interests of the Persons
      owning Membership Interests of the Persons owning Membership Interests
      having Financial Rights during the year which satisfies Section 706(d) of
      the Code.

            

    

     

    ARTICLE
7.

    DISTRIBUTIONS

     

    7.1          Distributions.

     

    
      	
               
      

            	
              (1)

            	
              Interim
      Distributions.  Subject to
      Section 10-32-64 of the LLC Act, distributions may be made from the
      Company at such times and in such amounts as determined from time to time
      by the Board to the Persons owning Membership Interests having Financial
      Rights in the proportion that the total number of each Person’s Units
      having Financial Rights bears to all of the Units having Financial
      Rights.  It is intended that the method of allocating
      distributions provided in this Section overrides Section 10-32-60 of the
      LLC Act.

            

    

     

    
      	
               
      

            	
              (2)

            	
              Terminating
      Distributions.  Upon
      termination of the Company, assets of the Company, including proceeds from
      liquidation of the Company’s assets, shall be applied in the following
      order of priority:

            

    

     

    
      	
               
      

            	
              (a)

            	
              To
      creditors of the Company, including Persons owning Membership Interests
      who are creditors, to the extent otherwise permitted by law, in
      satisfaction of liabilities of the Company other than liabilities for
      interim distributions or terminating distributions to Persons owning
      Membership Interests having Financial
Rights.

            

    

     

    
      	
               
      

            	
              (b)

            	
              To
      reasonable reserves, if any, deemed necessary by the Board to provide for
      the contingent liabilities of the
Company.

            

    

     

    
      	
               
      

            	
              (c)

            	
              To
      Persons owning Membership Interests having Financial Rights in the
      proportion of each Person’s positive Capital Account
      balance.  It is intended that the method of allocating
      distributions provided in this Section overrides Section 10-32-131, subd.
      1(c) of the LLC Act.

            

    

     

    7.2          Liquidations.  Notwithstanding
anything herein to the contrary, the Board may provide for non-pro rata
distributions in the event of a distribution that reduces the outstanding
Membership Interests of a Person.

    
      
         

      

      
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    7.3          In
Kind.  Distributions
from the Company may be in cash or in kind, but no Person shall have any right
to demand and receive any distribution from the Company in any form other than
cash.

     

    ARTICLE
8.

    ISSUANCE
OF MEMBERSHIP INTERESTS AND UNITS; CONTRIBUTIONS

     

    8.1          Issuance
of Membership Interests and Units.  The Board is
authorized to accept contributions, issue, sell and deliver Membership Interests
having Governance Rights and Financial Rights, Governance Rights only, or
Financial Rights only, and, in each case, consisting of the class of Membership
Interest that is then authorized to such Persons, at such times, and upon such
terms and conditions as the Board shall determine.  The Board shall
establish a price in money or other consideration, or a minimum price, or a
general formula or method by which the price of such Membership Interests shall
be determined.  The Board shall also fix the number of Units to
designate such Membership Interests.  There is no limitation on the
number of Units used to designate such Membership Interests that may be so
issued by the Board.  If the Board does not specifically designate
when issuing Membership Interests pursuant to this Agreement that such
Membership Interest has Governance Rights and Financial Rights, Governance
Rights only, or Financial Rights only, such Membership Interest shall be deemed
to have both Governance Rights and Financial Rights for all purposes of this
Agreement.

     

    8.2          Issuance
of Rights to Purchase.  The Board is
further authorized to enter into contribution agreements and contribution
allowance agreements and to otherwise grant and issue rights to subscribe for,
purchase, exchange securities for, or to convert securities into, Membership
Interests having Governance Rights and Financial Rights, Governance Rights only,
or Financial Rights only, and, in each case, consisting of the class of
Membership Interest that is then authorized with such Persons, at such times,
and upon such terms and conditions as the Board shall determine.  The
Board shall fix the terms, provisions and conditions of such agreements,
including the price in money or other consideration, or a minimum price, or a
general formula or method by which the price of the Membership Interests shall
be determined or the exchange or conversion basis or the price at which such
Membership Interests may be purchased or subscribed for.  The Board
shall also fix the number of Units to designate such Membership
Interests.  There is no limitation on the number of Units used to
designate such Membership Interests that may be so issued by the
Board.

     

    8.3          Unit
Dividends and Splits.  The Board shall
have the authority to declare and effect any dividend or split of any Units used
to designate the class of Membership Interest of the Company that is then
authorized in which the number of Units of such Membership Interests are
increased or decreased ratably.

     

    8.4          Valuation
of Contributions.  The Board shall
value all non-monetary contributions made to the Company in exchange for
Membership Interests.  Whenever the Company accepts contributions, the
Board shall also revalue the Capital Accounts as provided in Article 5 of this
Agreement.

    
      
         

      

      
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    8.5          Preemptive
Rights.  No Member, merely
because of such Member’s status as a Member or an owner of Units, shall have any
preemptive rights to purchase any Units proposed to be sold or issued by the
Company.  Nothing in this Agreement shall limit the right of the
Company to grant, by contract or otherwise, preemptive or first refusal rights
to one or more Members.

     

    ARTICLE
9.

    ADMISSION
OF MEMBERS

     

    9.1          Admission
Following Issuance of Membership Interest.  If the Board
issues Membership Interests having Governance Rights to a Person who is not then
a Member, such Person shall be admitted as a Member as of the effective date
that (i) such Person pays or is required to pay to the Company the amount the
Board determines to be contributed to the Company in exchange for the Membership
Interests to be issued to such Person, and (ii) such Person executes and
delivers to the Company such Person’s agreement to be bound by this Agreement in
such form and content as is acceptable to the Board.  If the Board
issues Membership Interests to a Person who is then a Member, such Person shall
continue as a Member and shall be bound by this Agreement and such Membership
Interests shall be automatically subject to this Agreement.  Upon
completion of any of such actions, the Company shall reflect the name and
address of the Member; the nature and type of contribution; the type of
Membership Interest, including the Governance Rights and Financial Rights; and
the number of Units designating such Membership Interest in the required records
of the Company as of such effective date.

     

    9.2          Admission
Following Transfer or Assignment.  The following
provisions apply to transferees or assignees of Membership
Interests.

     

    
      	
               
      

            	
              (1)

            	
              Assignment
      Which Includes Governance Rights.  Any
      transferee or assignee of a Membership Interest having Governance Rights
      who is not already a Member may be admitted, subject to the affirmative
      approval of such transferee or assignee as a Member by the Board, as a
      Member with respect to such Membership Interest as of the effective date
      that such Person executes and delivers to the Company such Person’s
      agreement to be bound by this Agreement in such form and content as is
      acceptable to the Board.  Any transferee or assignee of a
      Membership Interest in the Company who is already a Member shall continue
      as a Member and shall be bound by this Agreement and such Membership
      Interests shall be automatically subject to this
  Agreement.

            

    

     

    
      	
               
      

            	
              (2)

            	
              Assignee
      of Only Financial Rights.  Any Person
      who is not a Member but who is a transferee or assignee of a Membership
      Interest having only Financial Rights shall entitle such Person to
      receive, to the extent assigned, the share of the profits and losses and
      the distributions to which the assignor would otherwise be entitled but
      shall not entitle or empower such Person to become a Member, to exercise
      any Governance Rights, to receive any notices from the Company or to cause
      dissolution of the Company.

            

    

    
      
         

      

      
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              (3)

            	
              Reflection
      in Required Records.  Upon
      completion of any such actions, the Company shall reflect in the required
      records of the Company the name and address of the transferee or assignee;
      the nature and extent of the transfer or assignment; the type of
      Membership Interest so transferred or assigned; whether the Governance
      Rights or Financial Rights or both were transferred or assigned; and the
      number of Units used to designate such Membership
  Interest.

            

    

     

    ARTICLE
10.

    MEMBERS

     

    10.1        Voting.  Each Member shall
have one vote for each Unit having Governance Rights entitled to vote that is
reflected in the name of such Member in the required records of the Company,
subject to cumulative voting rights as set forth in the Articles of
Organization.  It is intended that the method of voting by Members
provided in this Section and throughout this Agreement is intended to override
Section 10-32-40.1, subd. 5.  At each meeting of the Members, every
Member owning Units having Governance Rights entitled to vote shall be entitled
to vote in person or by proxy duly appointed by an instrument in writing
subscribed by such Member.  Procedures for notice, voting, and conduct
of any meeting of Members shall be as provided in the Operating Agreement of the
Company.

     

    ARTICLE
11.

    BOARD
OF GOVERNORS

     

    11.1        General
Authority.  The business and
affairs of the Company shall be directed by a Board of Governors, which shall be
composed of governors elected in the manner and shall operate in the manner
provided in the Operating Agreement of the Company.

     

    ARTICLE
12.

    OFFICERS

     

    12.1        General
Authority.  The business and
affairs of the Company shall be managed by the Officers subject to the direction
of the Board of Governors, which Officers shall operate in the manner provided
in the Operating Agreement of the Company.

     

    ARTICLE
13.

    EVENTS
TERMINATING MEMBERSHIP

     

    13.1        Events of
Termination.  The continued
membership of a Member in the Company is terminated upon the first to occur of
any of the following events occurring with respect to a Member (each an “Event
of Termination”):

     

    
      	
               
      

            	
              (1)

            	
              The
      Member’s death;

            

    

     

    
      	
               
      

            	
              (2)

            	
              The
      Member’s retirement or resignation as a Member of the Company as defined
      in Section 10-32-30 of the LLC
Act;

            

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (3)

            	
              The
      redemption of such Member’s complete Membership Interest in the
      Company;

            

    

     

    
      	
               
      

            	
              (4)

            	
              An
      assignment or a buyout of such Member’s Membership Interest that leaves
      such Member with no Governance Rights as provided in Sections 10-32-32 or
      10-32-119 of the LLC Act;

            

    

     

    
      	
               
      

            	
              (5)

            	
              The
      Member’s bankruptcy;

            

    

     

    
      	
               
      

            	
              (6)

            	
              The
      dissolution of such Member that is a domestic or foreign limited liability
      company, corporation, partnership, limited partnership, joint venture,
      operation, business trust, estate, trust, enterprise, or any other legal
      or commercial entity;

            

    

     

    
      	
               
      

            	
              (7)

            	
              A
      merger in which the Company is not the surviving organization;
      or

            

    

     

    
      	
               
      

            	
              (8)

            	
              The
      occurrence of any other event that terminates the continued membership of
      the Member in the Company.

            

    

     

    13.2        Effect of
Event of Termination.  If an Event of
Termination occurs with respect to any Member, the following provisions shall
apply:

     

    
      	
               
      

            	
              (1)

            	
              Dissolution
      Avoidance Consent. An event that
      terminates the continued membership of a Member shall not cause the
      company to be dissolved unless it is the last or sole member of the
      Company. After the occurrence of an event, as provided in Section 13.1,
      that terminates the continued membership of another Member in the Company,
      each remaining Member may be asked to consent to the continuation of the
      Company as a legal entity without dissolution and to the continuation of
      its business, pursuant to the power set forth in Article V of the
      Articles of Organization of the
Company.

            

    

     

    
      	
               
      

            	
              (2)

            	
              Effect
      on Member.  An Event of
      Termination does not give a Member a right to have such Member’s
      Membership Interest purchased except as specifically provided in this
      Agreement.  The Membership Interest of such Member shall
      continue to have the same Governance Rights and Financial Rights as
      existed immediately prior to such Event of Termination except to the
      extent that such Event of Termination resulted in the redemption of such
      Membership Interest or the cancellation of such Membership Interest as in
      the event of a merger in which the Company is not the surviving
      organization.

            

    

     

    
      	
               
      

            	
              (3)

            	
              Effect
      on Transferee or Assignee.  Any
      transferee or assignee of such Member’s Membership Interest having
      Governance Rights and Financial Rights or only Governance Rights may be
      admitted as a Member as provided in Article 9 of this Agreement; provided,
      if such Event of Termination occurs with respect to the last or sole
      Member of the Company, the legal representative of such Member shall be
      deemed to be admitted as a Member as of the effective date of such Event
      of Termination and shall be deemed to own the Membership Interest owned by
      such Member immediately prior to such Event of Termination, including all
      Governance Rights and Financial Rights, and, in such event, the Company
      shall not be dissolved as provided in Section 10-32-109 of the LLC
      Act.

            

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    ARTICLE
14.

    TRANSFERS
AND RESTRICTIONS REGARDING MEMBERSHIP INTERESTS

     

    14.1        Permitted
Transfer or Assignment.  A Person may
freely transfer or assign all or any portion of such Person’s Membership
Interest, including Governance Rights and/or Financial Rights, under the
following conditions:

     

    
      	
               
      

            	
              (1)

            	
              by
      sale, gift, or devise to a spouse or child of such
  Person;

            

    

     

    
      	
               
      

            	
              (2)

            	
              following
      the death, withdrawal, bankruptcy, divorce, separation, dissolution or
      termination of such Person;

            

    

     

    
      	
               
      

            	
              (3)

            	
              by
      a Person and any related persons (as defined in
      Section 267(b) of the Code) in one or more transactions during
      any thirty (30) calendar day period of Membership Interests
      representing in the aggregate less than two percent (2%) of the total
      outstanding Membership Interests in the
Company;

            

    

     

    
      	
               
      

            	
              (4)

            	
              by
      a Person and any other Persons, acting together, of Membership Interests
      representing in the aggregate more than fifty percent (50%) of the total
      outstanding Membership Interests in the
Company;

            

    

     

    
      	
               
      

            	
              (5)

            	
              by
      transfer effected through a qualified matching service
      program;

            

    

     

    
      	
               
      

            	
              (6)

            	
              or
      otherwise, subject to the restrictions set forth in this
      Agreement.

            

    

     

    The transferor or assignor of all or
any such portion of such Membership Interest shall continue to be a Member of
the Company to the extent such transferor or assignor retains a Membership
Interest having Governance Rights, but shall cease to be the owner of the
Governance Rights and/or Financial Rights transferred or
assigned.  The transferee or assignee of the Governance Rights and
Financial Rights or only Governance Rights may be admitted as a Member as
provided in Article 9 of this Agreement.

     

    14.2        Conditions
Precedent to Transfers.  The Board of
Governors, in its sole discretion, may elect not to recognize any transfer of
Units unless and until the Company has received:

     

    
      	
               
      

            	
              (1)

            	
              an
      opinion of counsel (whose fees and expenses shall be borne by the
      transferor) satisfactory in form and substance to the Board that such
      transfer may be lawfully made without registration or qualification under
      applicable state and federal securities laws, or such transfer is properly
      registered or qualified under applicable state and federal securities laws
      and if, requested by the Company that such transfer will not cause the
      company to be treated as a publicly traded
  partnership;

            

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (2)

            	
              such
      documents and instruments of conveyance executed by the transferor and
      transferee as may be necessary or appropriate in the opinion of counsel to
      the Company to effect such transfer, except that in the case of a transfer
      of units involuntarily by operation of law, the transfer shall be
      confirmed by presentation of legal evidence of such transfer, in form and
      substance satisfactory to the
Company;

            

    

     

    
      	
               
      

            	
              (3)

            	
              the
      transferor’s Unit certificate;

            

    

     

    
      	
               
      

            	
              (4)

            	
              the
      transferee’s taxpayer identification number and sufficient information to
      determine the transferee’s initial tax basis in the interest transferred,
      and any other information reasonably necessary to permit the company to
      file all required federal and state tax returns and other legally required
      information statements or returns;
and

            

    

     

    
      	
               
      

            	
              (5)

            	
              other
      conditions on the transfer of units adopted by the Board from time to time
      as it deems appropriate, in its sole
discretion.

            

    

    

    IN
WITNESS WHEREOF, the Company and Members have executed this Agreement with all
of the schedules referenced herein effective as of the date first above
written.

     

    
      
        
          
            	
                    RED
      TRAIL ENERGY, LLC

                  
	 
      	 
      
	
                    By:

                  	
                    /s/ Mike Appert

                  
	
                    Its:
      Chairman

                  

          

        

      

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    COUNTERPART
SIGNATURE PAGE

    TO

    MEMBER
CONTROL AGREEMENT

    FOR

    RED TRAIL
ENERGY, LLC

    

    IN WITNESS WHEREOF,
______________________ has executed this Member Control Agreement of Red Trail
Energy, LLC dated effective as of _______________________, 20__, as of
_______________________, 20__.

    

    
      
        	
                 
      

              	 
      

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
A

    TO

    MEMBER
CONTROL AGREEMENT

    OF

    RED TRAIL
ENERGY, LLC

    

    
      
        
          
            
              
                	
                        Name

                      	 	
                        Addresses

                      	 	
                        Number of Units With Full

                        Governance and Financial RightsUnassociated Document

    
       

      Exhibit
10.1

       

    

    
      Extreme
Mobile Coatings
Worldwide Corp.

    

    
      225 TWO OAKS DRIVE

      NICHOLASVILLE, KY
40356

    

     

     

    
      Mr. Kenneth
Rosenzweig

      Cloudtech Sensors
Inc.

      13 Laetitia Lane

      Landenberg, PA
19350

    

    
    

     

     

    
      	
              Re:

            	 
      	
              LETTER OF INTENT BY AND BETWEEN
      CLOUDTECH SENSORS
      INC.

            	 
      	
            

    

    
      	 
      	 
      	
              ("THE COMPANY") and EXTREME
      MOBILE COATINGS WORLDWIDE CORP
      ("EXTREME")

            	
            

    

     

     

    
      	
              Dear Mr.
      Rosenzweig:

            

    

     

     

    Pursuant
to our discussions this letter confirms and memorializes the understanding and
agreement between Cloudtech Sensors, Inc. (hereinafter, "THE COMPANY") and
Extreme Mobile Coatings Corp., Ltd. (hereinafter "EXTREME"), a company who has
its shares publicly traded on the NASDAQ OTC Bulletin Board.

     

    THE
TRANSACTION

     

    1 (a)
EXTREME is a publicly owned reporting corporation with over      shareholders.
It is conducting an active business. Cloudtech Sensors Inc. (hereinafter, "THE
COMPANY") is a privately held corporation with approximately 435
shareholders.

     

    1(b) The
transaction contemplated hereby is that THE COMPANY will provide ALL OF ITS
COMMON STOCK SHARES at a ratio of one to one or one (1) share of its common
stock for one (1) share of EXTREME.

     

    As of May
5, 2009, EXTREME had 178,043,180 shares issued and outstanding.

     

    As of May
5, 2009, THE COMPANY had 33,407,124 common shares and 5,084 Preferred A issued
and outstanding. Once the acquisition is completed, THE COMPANY would become an
operating subsidiary of EXTREME.

     

    1(c) THE
COMPANY agrees and understands that the acquisition is on an "as is"
basis.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    1(d) The
acquisition contemplated herein does include the assumption of all THE COMPANY'S
debts. EXTREME will extend a bridge loan of approximately $300,000 for various
obligations and fees prior to Closing. However, all sums are due in full by
certified funds, bank check, or wire transfer as of the date of the Closing. It
is anticipated that the parties will enter into a more formal agreement which
will determine the time and place of the Closing.

     

    CONFIDENTIALITY

     

    2. Except
as required by law, any documents, data or other information (the "Confidential
Information") supplied by THE COMPANY pursuant to this Letter of Intent shall be
treated as confidential by EXTREME and by any party to which EXTREME discloses
such, and shall not be disclosed publicly in any manner without the prior
written consent of THE COMPANY. Without prior consultation with THE COMPANY,
EXTREME shall not make any legally required disclosure of Confidential
Information, nor make any public announcement or filing in which THE COMPANY's
name appears. Likewise, any Confidential Information supplied by EXTREME
pursuant to this Letter of Intent shall not be disclosed publicly in any manner
without the prior express written consent of EXTREME. Without prior consultation
with EXTREME, THE COMPANY shall not make any legally required disclosure of such
Confidential Information, nor make any public announcement or filing in which
EXTREME's name appears.

     

    
      MERGERS AND
ACQUISITIONS

    

    
    

     

    3. During
the period that THE COMPANY is engaged by EXTREME, EXTREME will agree not to
directly or indirectly initiate any discussions or other contracts, or solicit
any inquiries or indications, concerning merger, acquisition or possible
Financing Transaction without giving prior notice to THE COMPANY.

     

    
      	
                  4. 
      

            	
              INTENTIONALLY LEFT
      BLANK.

            
	 
      
	
              5.  

            	
              INTENTIONALLY LEFT
      BLANK.

            

    

    
       

      REPRESENTATIONS
AND WARRANTIES OF EXTREME

       

    

    
    

      6.1 Due Incorporation and Qualification:
EXTREME has been duly incorporated, is validly existing and is in
good standing under the laws of country of United Kingdom, located at 225 Two
Oaks Drive, Nicholasville, Kentucky 40356 and
in the State of Delaware and is duly qualified as a foreign corporation (except
where the failure to so qualify would not have a material adverse effect on the
business of EXTREME) for the transaction of business and is in good standing in
each jurisdiction in which the ownership or leasing of its properties or the
conduct of its business requires such qualification. EXTREME has all requisite
corporate power and authority necessary to own or hold its properties and
conduct its business.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
    

     

    6.2 Authorized Capital: EXTREME will have
an authorized and outstanding capitalization, and all of the then issued and
outstanding shares of Common Stock will have been duly and validly authorized
and issued and will be full paid and non-assessable. None of the holders of such
outstanding shares of Common Stock is subject to personal liability solely by
reason of being such a holder. No Preferred Shares are issued and
outstanding.

     

    6.3 Financial Statements: The financial
statements of EXTREME fairly represent the financial position and results of
operations of EXTREME at the dates thereof and for the periods in conformity
with generally accepted accounting principals, consistently applied throughout
the periods involved. EXTREME is a "shell corporation" with minimal liquid
assets, and the liabilities of the Company do exceed its liquid assets by more
than $700,000.

     

    6.4 No Material Adverse Changes: (i) There
has not been any material change in the condition, financial or otherwise, of
EXTREME since its last financial statements, which would have materially
adversely affected its ability to conduct its operations; and (ii) EXTREME has
not incurred any material liabilities or obligations, direct or contingent, not
in the ordinary course of business. The liabilities of EXTREME do exceed its
liquid assets.

     

    6.5 Taxes: EXTREME has filed all federal
tax returns and all state and municipal and local tax returns (whether relating
to income, sales, franchise, real or personal property or other types of taxes)
required to be filed under the laws of the United States and applicable states,
and has paid in full all taxes which have become due pursuant to such returns or
claimed to be due by any taxing authority or otherwise due and owing, provided,
EXTREME has not paid any tax, assessment, charge, levy or license fee that it
contests in good faith and by proper proceedings and adequate reserves for the
accrual of same are maintained if required by generally accepted accounting
principles. Each of the tax returns heretofore filed by EXTREME correctly and
accurately reflects the amount of its tax liability thereunder. EXTREME has
withheld, collected and paid all other levies, assessments, license fees and
taxes to the extent required and with respect to payments, to the extent that
the same have become due and payable.

     

    
      6.6 No
Pending Actions: There are no actions,
suits, proceedings, claims or hearings
of any
kind or nature to the best of the knowledge
of EXTREME, any investigations or inquiries, before or by any court,
governmental authority, tribunal or instrumentality, pending or threatened
against EXTREME, or involving the properties, financial position or results of
operations of EXTREME, or which could have materially adversely affected the
transactions or other acts then contemplated by this Agreement or the validity
or enforceability of this Agreement.

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    6.7 Due Authorization: EXTREME has full
right, power and authority to enter into this Agreement and to perform all of
its obligations hereunder and thereunder. This Agreement was duly authorized,
executed and delivered by EXTREME. No issuance of shares of EXTREME's capital
stock shall be required as a condition to the execution, validity or
enforceability. This Agreement constitutes, upon execution and delivery, a valid
and binding obligation of EXTREME, enforceable in accordance with its respective
terms (except (i) as the enforceability thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting
creditors' rights generally or by general principles of equity, and; (ii) that
the enforceability of the indemnification and contribution provisions of this
Agreement may be limited by the federal securities laws and public policy, and
no consent, approval, authorization, order of, or filing with any court or
governmental authority or any other third party is required to consummate the
transactions contemplated by this Agreement.

     

    6.8 Non-Default; Non-Circumvention: During
the operative period, EXTREME is not in violation of its Articles of
Incorporation or by-laws or, in default in the performance or observance of
any material obligation, agreement, covenant or condition contained in any
material contract, lease or other instrument to which it is a party, and
EXTREME's execution and delivery of this Agreement, and the incurrence of the
obligations herein and therein set forth, and the consummation of the
transactions contemplated do not (i) conflict with, or constitute a breach of,
or a default under the articles or certificate of incorporation or by-laws of
EXTREME, or any material contract, lease or other material agreement or
instrument to which EXTREME is a party or in which EXTREME has a beneficial
interest or by which the EXTREME is bound; (ii) violate any existing applicable
law, rule, regulation, judgment, order or decree of any governmental agency or
court, domestic or foreign, having jurisdiction over EXTREME or any of its
properties or business; or (iii) have or have had any material adverse effect on
any permit, certification, registration, approval, consent, license or franchise
necessary for EXTREME to own or lease and operate any of its properties and to
conduct its business or the ability of EXTREME to make use thereof.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    6.9 No Regulatory Problems: EXTREME (i)
has not filed a registration statement which is the subject of any pending
proceeding or examination under Section 8 of the Securities Act, or is the
subject of any refusal order or stop order thereunder; (ii) is not subject to
any pending proceeding under Rule 261 of the Securities Act or any similar rule
adopted under Section 3(b) of
the Securities Act, or to an order entered thereunder; (iii) has not been
convicted of any felony or misdemeanor in connection with the purchase or sale
of any security involving the making of any false filing with the Securities and
Exchange Commission (the "Commission"); (iv) is not subject to any order,
judgment, or decree of any court of competent jurisdiction temporarily or
preliminary restraining or enjoining EXTREME from engaging in or continuing any
conduct or practice in connection with the purchase or sale of any security or
involving the making of any false filing with the Commission, or (v) is not
subject to a United States Postal Service false representation order entered
under Section 3005 of Title 39, United States Code, or a temporary restraining
order or preliminary injunction entered under Section 3007 of Title 39,
with respect to conduct alleged to have violated Section 3005 of Title 39,
United States Code. None of EXTREME's directors, officers, or beneficial owners
of 10 percent or more of any class of its equity securities (i) has been
convicted of any felony or misdemeanor in connection with the purchase or sale
of any security involving the making of a false filing with the Commission, or
arising out of the conduct of the business of an underwriter, broker, dealer,
municipal securities dealer, or investment advisor; (ii) is, or has been subject
to any order, judgment, or decree of any court of competent jurisdiction
temporarily or preliminary conjoining or restraining, or is, or has been subject
to any order, judgment, or decree of any court of competent jurisdiction
permanently enjoining or restraining such person from engaging in or continuing
any conduct or practice in connection with the purchase or sale of any
security, or involving the making of a false filing with the Commission, or
arising out of the conduct of the business of an underwriter, broker, dealer,
municipal securities dealer, or investment advisor; (iii) is, or has been
subject to an order of the Commission entered pursuant to Section 15(b), 158(a)
or 158(c) of the Securities Exchange Act of 1934, as amended ("1934 Act"), or is
subject to an order of the Commission entered pursuant to Section 203(e) or (f)
of the Investment Advisors Act of 1940; (iv) is, or has been suspended or
expelled from membership in, or suspended or barred from association with a
member of an exchange registered as a national security exchange pursuant to
Section 6 of the 1934 Act, an association registered as a national securities
association under Section 15A of the 1934 Act, or a Canadian securities exchange
or association for any act or omission to act constituting conduct inconsistent
with just and equitable principles of trade, or (v) is or has been subject to a
United States Postal Service false representation order entered under Section
3005 of Title 39, United States Code, or is subject to a restraining order or
preliminary injunction entered under Section 3007 of Title 39, United States
Code, with respect to conduct alleged to have violated Section 3005 of Title 39,
United States Code.

     

    6.10
No Violations: EXTREME is not in
violation of any material franchise, license, permit, applicable law, rule,
regulation, judgment or decree of any governmental agency or court, domestic or
foreign, having jurisdiction over EXTREME or any of its properties or
business.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    6.11
Conduct of Business: EXTREME has
all necessary authorizations, approvals, orders, licenses, certificates and
permits (collectively, the "Approvals") of and from all governmental regulatory
officials and bodies, to own or lease its properties and conducts its
business and EXTREME has been doing business in compliance with all such
material Approvals, and all Federal, state and local laws, rules and
regulations, other than any such Approvals, laws, rules and regulations, the
failure to comply with which would not have material adverse effect on EXTREME,
its business, properties or operations. All licenses and findings of suitability
required to be obtained by any affiliate of EXTREME have been obtained and are
in full force and effect.

     

    6.12
Title to Property. Insurance:
EXTREME has good title to, or valid and enforceable leasehold estates in, all
items of real property owned or leased by it, and continues to have good title
to, or valid and enforceable leases or subleases with respect to, all items of
personal property (tangible and intangible), free and clear of all liens,
encumbrances, claims, security interests, defects of title, and restrictions of
any material nature whatsoever, and liens for real estate taxes not yet due and
payable. No default or notice of default exists or has been declared by the
landlord or sublessor under any of such leases or subleases. EXTREME has
adequately insured its tangible and/or real properties against loss or damage by
fire or other casualty (other than earthquake and flood) and at all relevant
times maintained such insurance in adequate amounts, on terms generally offered
by reputable insurance carriers.

     

    6.13
Intangibles: EXTREME owns or
possesses the requisite licenses or rights to use all patents, patents -
pending, trademarks, service marks, service names, trade names, and other rights
(collectively, the "Intangibles") described as owned or used by it. There are no
proceeding or action by any person pertaining to, or proceeding or claim pending
or, to the best knowledge of EXTREME, threatened and EXTREME has not received
any notice of conflict with the asserted rights of others which challenges the
exclusive right of EXTREME with respect to any Intangibles used in the conduct
of THE COMPANY's business. To the best knowledge of EXTREME, the Intangibles and
THE COMPANY's operations do not infringe on any intangibles held by any third
party.

     

    REPRESENTATIONS
AND WARRANTIES OF THE COMPANY

     

    THE
COMPANY will represent and warrant to EXTREME as follows:

     

    7.1 Due Incorporation and Qualification:
THE COMPANY has been duly incorporated, is validly existing and is in good
standing under the laws of its state of incorporation and is duly qualified as a
foreign corporation (except where the failure to so qualify would not have a
material adverse effect on the business of THE COMPANY) for the transaction of
business and is in good standing in each jurisdiction
in which the ownership or leasing of its properties or the conduct of its
business requires such qualification. THE COMPANY has all requisite corporate
power and authority necessary to own or hold its properties and conduct its
business.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    7.2 Authorized Capital: THE COMPANY will
have an authorized and outstanding capitalization, and all of the then issued
and outstanding shares of Common Stock will have been duly and validly
authorized and issued and will be fully paid and non-assessable. None of the
holders of such outstanding shares of Common Stock is subject to personal
liability solely by reason of being such a holder.

     

    7.3 Financial Statements: The financial
statements of THE COMPANY fairly present the financial position and results of
operations of THE COMPANY at the dates thereof and for the periods consistently
applied throughout the periods involved.

     

    7.4 No Material Adverse Changes: (i) There
has not been any change in the condition, financial or otherwise, of THE COMPANY
since its last financial statements which would have materially adversely
affected its ability to conduct its operations; and (ii) THE COMPANY has not
incurred any material liabilities or obligations, direct or contingent, not in
the ordinary course of business. The liabilities of THE COMPANY do exceed its
liquid assets. More than $400,000 for outside services are expected to be
negotiated to a lower value. Additionally, there are certain accruals for
consultants which are about $500,000 which we expect to settle for less than
$200,000 and/or payout overtime. The Company provided a complete list to
EXTREME.

     

    7.5 Taxes: THE COMPANY has filed all
federal tax returns as of June 30, 2007 and intends to file its June 30, 2008;
there is no tax owed for any period. The COMPANY has filed all state and
municipal and local tax returns (whether relating to income, sales, franchise,
real or personal property or other types of taxes) required to be filed under
the laws of the United States and applicable states, and has paid in full all
taxes which have become due pursuant to such returns or claimed to be due by any
taxing authority or otherwise due and owing, provided, THE COMPANY has not paid
any tax, assessment, charge, levy or license fee that it contests in good faith
and by proper proceedings and adequate reserves for the accrual of same are
maintained if required by generally accepted accounting principles. Each of the
tax returns heretofore filed by THE COMPANY correctly and accurately reflects
the amount of its tax liability thereunder. THE COMPANY has withheld, collected
and paid all other levies, assessments, license fees and taxes to the extent
required and with respect to payments, to the extent that the same have become
due and payable.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    7.6 No Pending Actions: There are no
actions, suits, proceedings, claims or hearings of any kind or nature or, to the
best of the knowledge of THE COMPANY, any investigations or inquiries, before or
by any court, governmental authority, tribunal or instrumentality, pending or
threatened against THE COMPANY, or involving the properties of the COMPANY which
could have resulted in any material adverse change in the business, properties,
financial position or results of operations of THE COMPANY, or which could have
materially adversely affected the transactions or other acts then contemplated
by this Agreement or the validity or enforceability of this
Agreement.

     

    7.7 Due Authorization: THE COMPANY has
full right, power and authority to enter into this Agreement and to perform all
of its obligations hereunder and thereunder. This Agreement was duly authorized,
executed and delivered by THE COMPANY. No issuance of shares of THE COMPANY's
capital stock shall be required as a condition to the execution, validity or
enforceability hereof. This Agreement constitutes, upon execution and delivery,
a valid and binding obligation of THE COMPANY, enforceable in accordance with
its respective terms (except (i) as the enforceability thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting creditors' rights generally or by general principles of equity; and
(ii) that the enforceability of the indemnification and contribution provisions
of this Agreement may be limited by the Federal securities laws and public
policy), and no consent, approval, authorization, order of, or filing with, any
court or governmental authority or any other third party is required to
consummate the transactions contemplated by this Agreement.

     

    7.8 Non-Default: Non-Contravention: THE
COMPANY is not in violation of its articles or certificate of incorporation or
by- laws or, in default in the performance or observance of any material
obligation, agreement, covenant or condition contained in any material contract,
lease or other instrument to which it is a party, and THE COMPANY's execution
and delivery of this Agreement, and the incurrence of the obligations herein and
therein set forth, and the consummation of the transactions contemplated do not
(i) conflict with, or constitute a breach of, or a default under the articles or
certificate of incorporation or by-laws of THE COMPANY, or any material
contract, lease or other material agreement or instrument to which THE COMPANY
is a party or in which THE COMPANY has a beneficial interest or by which the
COMPANY is bound; (ii) violate any existing applicable law, rule, regulation,
judgment, order or decree of any governmental agency or court, domestic or
foreign, having jurisdiction over THE COMPANY or any of its properties or
business; or (iii) have or have had any material adverse effect on any permit,
certification, registration, approval, consent, license or franchise necessary
for THE COMPANY to own or lease and operate any of its properties and to conduct
its business or the ability of THE COMPANY to make use thereof.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    7.9 No Regulatory Problems: THE COMPANY
(i) has not filed a registration statement which is the subject of any pending
proceeding or examination under Section 8 of the Securities Act, or is the
subject of any refusal order or stop order thereunder; (ii) is, and has not been
subject to any pending proceeding under Rule 261 of the Securities Act or any
similar rule adopted under Section 3(b) of the Securities Act, or to an order
entered thereunder; (iii) has not been convicted of any felony or misdemeanor in
connection with the purchase or sale of any security involving the making of any
false filing with the Securities and Exchange Commission (the "Commission); (iv)
is and has not been subject to any order, judgment, or decree of any court of
competent jurisdiction temporarily or preliminary restraining or enjoining THE
COMPANY from engaging in or continuing any conduct or practice in connection
with the purchase or sale of any security or involving the making of any false
filing with the Commission, or (v) is, and has not been subject to a United
States Postal Service false representation order entered under Section 3005 of
Title 39, United States Code, or a temporary restraining order or preliminary
injunction entered under Section 3007 of Title 39, with respect to conduct
alleged to have violated Section 3005 of Title 39, United States Code. None of
THE COMPANY's directors, officers, or beneficial owners of 10 percent or more of
any class of its equity securities (i) has been convicted of any felony or
misdemeanor in connection with the purchase or sale of any security involving
the making of a false filing with the Commission, or arising out of the conduct
of the business of an underwriter, broker, dealer, municipal securities dealer,
or investment advisor; (ii) is, or has been subject to any order, judgment, or
decree of any court of competent jurisdiction temporarily or preliminary
conjoining or restraining, or is subject to any order, judgment, or decree of
any court of competent jurisdiction permanently enjoining or restraining such
person from engaging in or continuing any conduct or practice in connection with
the purchase or sale of any security, or involving the making of a false filing
with the Commission, or arising out of the conduct of the business of an
underwriter, broker, dealer, municipal securities dealer, or investment advisor;
(iii) is, or has been subject to an order of the Commission entered pursuant to
Section 15(b), 158(a) or 158(c) of the Securities Exchange Act of 1934, as
amended ("1934 Act"), or is subject to an order of the Commission entered
pursuant to Section 203(e) or (f) of the Investment Advisors Act of 1940; (iv)
is, or has been suspended or expelled from membership in, or suspended or barred
from association with a member of an exchange registered as a national security
exchange pursuant to Section 6 of the 1934 Act, an association registered as a
national securities association under Section 15A of the 1934 Act, or a Canadian
securities exchange or association for any act or omission to act constituting
conduct inconsistent with just and equitable principles of trade, or (v) is, or
has been subject to a United States Postal Service false representation order
entered under Section 3005 of Title 39, United States Code, or is subject to a
restraining order or preliminary injunction entered under Section 3007 of Title
39, United States Code, with respect to conduct alleged to have violated Section
3005 of Title 39, United States Code.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    7.10
No Violations: THE COMPANY is
not in violation of any material franchise, license, permit, applicable law,
rule, regulation, judgment or decree of any governmental agency or court,
domestic or foreign, having jurisdiction over THE COMPANY or any of its
properties or business.

     

    7.11
Conduct of Business: THE COMPANY
has all necessary authorizations, approvals, orders, licenses, certificates and
permits (collectively, the "Approvals") of and from all governmental regulatory
officials and bodies, to own or lease its properties and conducts its business
and THE COMPANY has been doing business in compliance with all such material
Approvals, and all Federal, state and local laws, rules and regulations, other
than any such Approvals, laws, rules and regulations, the failure to comply with
which would not have material adverse effect on THE COMPANY, its business,
properties or operations. All licenses and findings of suitability required to
be obtained by any affiliate of THE COMPANY have been obtained and are in full
force and effect.

     

    7.12
Title to Property. Insurance:
THE COMPANY has good title to, or valid and enforceable leasehold estates in,
all items of real property owned or leased by it, and continues to have good
title to, or valid and enforceable leases or subleases with respect to, all
items of personal property (tangible and intangible), free and clear of all
liens, encumbrances, claims, security interests, defects of title, and
restrictions of any material nature whatsoever, and liens for real estate taxes
not yet due and payable. No default or notice of default exists or has been
declared by the landlord or sublessor under any of such leases or subleases. THE
COMPANY has adequately insured its tangible and/or real properties
against loss or damage by fire or other casualty (other than earthquake and
flood) and at all relevant times maintained such insurance in adequate amounts,
on terms generally offered by reputable insurance carriers.

     

    7.13
Intangibles: THE COMPANY owns or
possesses the requisite licenses or rights to use all patents, patents -
pending, trademarks, service marks, service names, trade names, and other rights
(collectively, the "Intangibles") described as owned or used by it. There are no
proceeding or action by any person pertaining to, or proceeding or claim pending
or, to the best knowledge of THE COMPANY, threatened and THE COMPANY has not
received any notice of conflict with the asserted rights of others which
Challenges the exclusive right of THE COMPANY with respect to any Intangibles
used in the conduct of THE COMPANY's business. To the best knowledge of THE
COMPANY, the Intangibles and THE COMPANY's operations do not infringe on any
intangibles held by any third party.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      INDEMNIFICATION

       

    

    8.1
EXTREME agrees to indemnify and holds harmless THE COMPANY, its directors,
employees, agents and controlling persons from and against any and all losses,
claims, damages, liabilities and expenses joint and several (including all
reasonable fees of counsel, whether or not resulting in liability), caused by or
resulting out of EXTREME's actions pursuant to this Agreement; provided,
however, that EXTREME will not be liable hereunder to the extent that any loss,
claim, damage, liability or expense is found to have resulted primarily from THE
COMPANY's gross negligence or bad faith in performing the services described
above.

     

    8.2 THE
COMPANY agrees to indemnify and holds harmless EXTREME, its directors,
employees, agents and controlling persons from and against any and all losses,
claims, damages, liabilities and expenses joint and several (including all
reasonable fees of counsel, whether or not resulting in liability), caused by or
resulting out of THE COMPANY's actions pursuant to this Agreement; provided,
however, that THE COMPANY will not be liable hereunder to the extent that any
loss, claim, damage, liability or expense is found to have resulted primarily
from EXTREME's gross negligence or bad faith in performing the services
described above.

     

    PUBLIC
NOTICE

     

    9.1.
Before the Closing, neither EXTREME nor THE COMPANY, without written consent by
both parties, shall make any public release of  information regarding the
matters contemplated herein except (i) that EXTREME and THE COMPANY, may each
continue such communications with employees, customers, suppliers, franchisees,
lenders, lessors, shareholders, members, and other particular groups as may be
legally required or necessary or appropriate and not inconsistent with the best
interests of the other party or the prompt consummation of the transactions
contemplated by this letter; and (ii) as required by law.

    
       

      CLOSING

    

    
    

     

    10. The
parties will use their best efforts to close the transaction within thirty (30)
days from this date, unless the date of closing is extended by agreement
between the parties, or unless required with respect to Securities and Exchange
Commission filings it shall close when permissible under the Rules and
Regulations of the Securities and Exchange Commission. This transaction will be
subject to certain filing requirements with the Securities and Exchange
Commission. The parties agree to cooperate on all required fillings with the
Securities and Exchange Commission, and all filings shall be made in a timely
manner.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
       

    

    OTHER
TRANSACTIONS DURING PENDANCY HEREOF

     

    11. In
the event a transaction occurs during the pendency of this Agreement and EXTREME
is not the surviving entity in such Transaction, or in the event that all or
substantially all of THE COMPANY's assets has been sold during such period,
EXTREME agrees to cause the acquirer or acquirers to assume and honor the
obligations and liabilities of EXTREME hereunder.

    
       

      CORPORATION
RECORDS SERVICE

    

    
    

     

    12.
EXTREME agrees that (through their best efforts) for a period of five (5) years
from the Effective Date it will register and remain covered by the Corporation
Records Service published by Standard & Poor's corporation.

     

    TRANSFER
AGENT

     

    13.
EXTREME shall retain a transfer agent acceptable to THE COMPANY for the common
shares for a period of five (5) years following this financing
transaction.

     

    
      QUARTERLY
FINANCIAL REVIEW

    

    
    

     

    14. For a
period of five (5) years from the date of the financing transaction, the
surviving corporation shall cause its regularly engaged independent certified
public accountants to review the Company's financial statements for each of the
first three (3) fiscal quarters prior to the announcement of quarterly financial
information, the filing of the Company's Form 100 quarterly report and the
mailing of quarterly financial information to stockholders.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    REPRESENTATION
ON THE BOARD OF DIRECTORS

     

    15. For a
period of not less than five (5) years from the execution of this Agreement,
EXTREME, the surviving entity will recommend and use its best efforts to appoint
or elect (as the case may be) a designee of EXTREME, reasonably acceptable to
THE COMPANY, as nonvoting advisor to, or as a member of
its Board of Directors. Such designee or member shall attend meetings of the
Board and receive no more or less compensation than is paid to other
non-management directors of THE COMPANY and shall be entitled to receive
reimbursement for all reasonable expenses incurred in attending such meetings
including, but not limited to, meals, lodging and transportation. To the extent
permitted by law, THE COMPANY will agree to indemnify EXTREME and its designee
for the actions of such designee as advisor to or director of THE COMPANY. In
the event, EXTREME, the surviving company maintains a liability insurance policy
affording coverage for the acts of its officers and directors, it will
agree, if possible, to include each of EXTREME and its designee as an insured
under such policy. If EXTREME does not exercise its option to designate an
advisor or member of the Company's Board of Directors, EXTREME shall
nevertheless have the right to send a representative (who need not be the same
individual from meeting to meeting, although EXTREME shall endeavor to send the
same representative to each meeting) to observe each meeting of the Board of
Directors. The Company agrees to give EXTREME notice of each such meeting not
later than it gives such notice and provides such items to the
directors.

    
       

      RIGHT NOT
TO PROCEED

    

    
    

     

    16.
EXTREME reserves the right not to proceed with this transaction, if in its sole
and exclusive judgment and option (i) market conditions, including the market
for the Shares, are unsuitable for the investor(s); (ii) THE COMPANY has
furnished to EXTREME false or misleading information; (iii) an adverse change
has occurred in the financial condition, business, or prospects of EXTREME; (iv)
THE COMPANY has failed to:

    
      
        (a) Cooperate with due
diligence in good faith with EXTREME;

        
          (b) Expeditiously proceed
with due diligence in good faith to obtain all licenses
and approvals; or

        

      

    

    (c)
Comply with all applicable statutes, laws, rules and regulations; (v)
EXTREME cannot expeditiously proceed with an offering, or (vi) an action, suit
or proceeding at law or in equity is commenced or brought against THE COMPANY or
EXTREME by any federal, state or other commission, board or agency, where any
unfavorable decision may adversely affect the business property financial
condition or income of the Company.

     

    
      GOVERNING
LAW

    

    
    

     

    17. This
letter shall be deemed to have been made and delivered in Delaware and shall be
governed as to validity, interpretation, construction, effect and in all other
respects by the internal laws of the State of Delaware. THE COMPANY and EXTREME
(i) agree that any legal suit, action or proceeding arising
out or relating to this letter shall be instituted exclusively in Delaware. THE
COMPANY and EXTREME further agree to accept and acknowledge service of any and
all process which may be served in any such suit, action or proceeding in
Delaware and agree that service of process upon it sent by certified mail to its
address above set forth shall be deemed in every respect effective service of
process upon it in any such suit, action or proceeding.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
    

    
      NOTICE

       

    

    18. Any
notice, election or demand given or made pursuant hereto shall be given or made
in writing and signed by the sending party or its attorney, and shall be deemed
given (i) when personally delivered; (ii) one business day following delivery to
a reputable overnight courier service, or (iii) two (2) days following the day
when sent by prepaid registered or certified mail, return receipt requested,
in all cases to the respective party at its address given, with copies to
Michael Krome Esq. 8 Teak Court, Lake Grove, New York 11755. email: michael@kromelaw.com and

     

    
      If to THE
COMPANY:

    

    
    

     

    
      Mr. Kenneth
Rosenzweig

      Cloudtech Sensors
Inc.

      13 Laetitia Lane

      Landenberg, PA
19350

    

     

    
      If to
EXTREME:

    

    
    

     

    
      Mr. Charles
Woodward

      Extreme Mobile Coating
Ltd.

      225 Two Oaks Drive

      Nicholasville, Kentucky
40356

    

     

    AMENDMENT
AND MODIFICATION

     

    19. This
Letter of Intent supersedes any and all prior agreements between the parties
hereto respecting the subject matter hereof, maybe amended only in writing and
shall be binding upon our legal representatives and assigns.

     

    
    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    ENTIRE
UNDERSTANDING

     

    20. This
Agreement represents the entire understanding between the parties, and all prior
discussions and negotiations are merged in it.

     

    If the foregoing correctly sets forth
the understanding and agreement between THE COMPANY and EXTREME, please so
indicate in the space provided for the purpose below.

     

    
      
        	 	 	

                Sincerely,

              	 
	
              	
              	Michael
      Krome Esq. 	 

      

    

     

     

    
      
        	ACCEPTED AND AGREED:	 	 	 	 
	 	 	 	 	 	 
	CLOUDTECH SENSORS INC. (THE
      COMPANY)	 	 	 	 
	 	 	 	 	 	 
	By:	
                

              	 	 	
              	 
	 	
                

                  Authorized
      Signatory

                

              		 	
              	 
	 	Kenneth
      S. Rosenzweig 	 	 	 	 
	 	
                

                  

                    Chairman

                  

                

              	 	 	
              	 

      

    

     

    
       

      
        
          	ACCEPTED AND AGREED:	 	 	 	 
	 	 	 	 	 	 
	
                  EXTREME
      MOBILE COATINGS-WORLDWIDE CORP. (EXTREME)

                	 	 	 
	 	 	 	 	 	 
	By:	
                  

                    

                  

                	 	 	
                	 
	 	
                  

                    Authorized
      Signatory

                  

                	 	 	
                	 
	 	
                  

                    Charles
      Woodward

                  

                	 	 	
                	 
	 	

                  President and
      CEO 

                	 	 	 	 

        

      

       

      
        
          
          

        

        
          15

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