Document:

Exhibit 10.1
Lease Agreement

     This lease is made and entered into by and between Venture III Associates,
 a New Jersey General Partnership, 1497 Lakewood Road, in the Township of Dover,
 Ocean County, New Jersey, referred to in this contract as Landlord, and Future
 Fuels, Inc., a Nevada Corporation, referred to in this contract as Tenant.

                                   Witnesses:

     1. Premises and Terms. Landlord does hereby demise unto Tenant, and Tenant
 Does hereby hire from Landlord, six (6) acres more or less as required by
 Tenant, of the premises situate in the Township of Dover, Town of Toms River,
 county of Ocean, and the State of New Jersey as follows: Lot 26, Block 410 on
 the Official Tax Map of the Township of Dover, more commonly known as 1497
 Lakewood Road, Toms River, New Jersey, for the express purpose of erecting and
 operating a waste to ethanol production facility ("Demised Premises"). Tenant
 and Landlord hereby agree that the exact acreage and area of the premises to be
 occupied and improved by Tenant shall be in accordance with the site plans and
 specifications that shall be prepared by Tenant's engineer at Tenant's sole
 cost and shall be mutually determined by Tenant and Landlord

<PAGE>

     To have and to hold, the Demised Premises unto Tenant for a term commencing
 upon the execution of this Lease Agreement, and extending until midnight on the
 day preceding the 15th anniversary of such date, and for any additional periods
 of time during which the Demised Premises is leased by the Tenant pursuant to
 the option granted in Section 4 hereof ("Term"), at the rent and upon the
 terms, covenants and conditions herein contained.

     2. Definitions. As used herein, the following terms shall have the meanings
     ascribed to them herein: "Landlord's Improvements" shall mean all
     structures, improvements, roads and items of property, whether

 real or personal, located on the Demised Premises on the date hereof, together
 with all additions or alterations thereto and such other property, whether real
 or personal, as Landlord may hereafter place on that part of the Demised
 Premises.

     "Tenant's improvements" shall mean all buildings, structures, improvements,
 roads and items of property, whether real or personal, including the proposed
 waste to ethanol production facility erected upon the Demised Premises, but not
 including any surfacing material used to cover the Demised Premises or a
 portion thereof, as Tenant may hereafter construct or otherwise place on the
 Demised Premises.

     3. Rent. In consideration for the execution of this Lease Agreement, and as
 full satisfaction of rents due from the date of execution of this Agreement to
 the first date of operation of Tenant's proposed waste to ethanol facility,
 Tenant will compensate Landlord with one million shares of Future Fuels, Inc.
 common stock issued at par value. Beginning on the first date of operation of
 Tenant's proposed waste to ethanol facility, and for the entire Term remaining
 thereafter, Tenant shall pay to Landlord rent at the annual rate of $40,000 per
 acre (but in no event less than six acres) occupied by Tenant in advance on the
 first day of each month during the Term, at the above stated address of
 Landlord or such other place as Landlord may designate by notice to Tenant, as
 well as 3% of the net operating profits of the proposed waste to ethanol plant
 as determined on a quarterly basis. The rent for any fractional month shall be
 apportioned on the basis of the actual number of days in such month The annual
 rate shall be adjusted on the first date of each calendar year of the Term in
 accordance with the Consumer Price Index. The Consumer Price Index as used in
 this Section 3 refers to the Consumer Price Index for New York City published
 by the U.S. Department of Labor which uses 2005 as an average of 100 and the
 price index on the first day of each calendar year of the Term shall be
 considered to be the index of the preceding month. If such index no longer
 exists or if a substantial change is made in the terms or numbers contained in
 such index, a reliable governmental or other nonpartisan publication evaluating
 the information theretofore used in determining such index shall be used.
 Adjustments shall be calculated by the difference between the index on the date
 hereof and the date in question. For example, if the index on the date hereof
 is 130 and on the renewal date is 160, then the adjusted rental will be 160/130
 times the basic rental set forth in Section 3 hereof.

     4. Option To Renew. Tenant shall have the option to renew this Lease
 Agreement for 9 successive periods of 10 years each. Tenant shall exercise such
 option by giving written notice to Landlord not more than 180 days and not less
 than 90 days prior to the expiration of the initial term of this Lease
 Agreement or any subsequent renewal term. If Tenant shall not elect to renew
 this Lease Agreement more than 90 days prior to the expiration of such initial
 or renewal term, then Landlord shall be free to lease the Demised Premises for
 any subsequent period. Any such renewal shall be upon the terms and conditions
 of this Lease Agreement and shall be subject to the rent increases specified in
 Section 3 hereof.

<PAGE>

         In the event that Tenant fails to renew the Feedstock Agreement entered
 into by and between Tenant and Ocean County Recycling Center, Inc. for terms
 congruent with the renewal term herein, despite Ocean County Recycling Center,
 Inc.'s satisfactory performance under same, Tenant's Option to Renew shall be
 considered null and void. In the event that Ocean County Recycling Center, Inc.
 fails to perform its obligations under the aforesaid Feedstock Agreement,
 Tenant is under no obligation to renew same, and the Option to Renew granted in
 this Lease Agreement shall remain in full force and effect.

     5. Tenant shall have the right to purchase the demised premises for the
 price and at the terms as shall be contained in a written bona fide offer from
 a third party which is acceptable to Landlord at any time during the term of
 this lease. Landlord shall provide Tenant with a copy of the said written
 offer. Thereafter, Tenant shall have 30 days from receipt to elect to purchase
 the said premises at the price and subject to the terms of the said written
 third party offer by written notice to Landlord and to forthwith execute a
 contract of sale prepared by Landlord incorporating said terms. In the event
 that Tenant fails to exercise the right to purchase the premises within the
 time prescribed or in the event Tenant waives said right in writing or fails to
 enter into a written contract to purchase the premises within a reasonable time
 after submission by Landlord, Landlord shall have the right to convey title to
 the third party for the consideration and at the terms set forth in the third
 party offer to purchase. In the event said third party transaction does not
 close within 120 days from the date of the receipt by Landlord of the third
 party offer to purchase, the right of first refusal granted to Tenant shall
 again apply to the above third party offer or to any new offer received by
 Landlord. Nothing in this Lease shall be construed as providing Tenant with a
 right to purchase if the Landlord transfers or sells the Demised Property to
 one or more of its principles, currently Joseph and Louis Sanzaro, and/or to
 any entity owned substantially by Joseph and/or Louis Sanzaro or their Spouses;
 however, the terms of this lease Agreement shall survive such transfer or sale.

     6. Landlord's and Tenant's Covenants. Landlord and Tenant hereby agree to
 comply with the terms of the Feedstock Agreement, entered into by and between
 Future Fuels, Inc. and Ocean County Recycling Center, Inc., who currently and
 will continue to occupy and operate upon a portion of the premises not demised
 to the Tenant.

         The Feedstock Agreement is incorporated in this lease and made part of
 it, a copy of which is attached hereto. Any breach of the Feedstock Agreement
 by Tenant, or contractual interference with same by Landlord, shall constitute
 a material breach of the terms of lease.

     7. Maintenance and Repairs. Landlord shall maintain the Demised Premises
 and Landlord's Improvements in good repair, reasonable wear and tear excepted,
 and shall at its own cost and expense promptly make all necessary repairs
 thereto not occasioned by the act or omission of Tenant.

     Tenant shall maintain the Tenant's Improvements in good repair and in
 compliance with applicable codes and other requirements, reasonable wear and
 tear excepted and Tenant shall at its own cost and expense promptly make all
 necessary repairs, interior, exterior, ordinary as well as extraordinary.

     The provisions of this Section shall not apply to repairs or reconstruction
 in the event of eminent domain, fire or other casualty or as herein otherwise
 specifically provided.

     8. Water and Other Utilities Services. Tenant shall pay for all water,
 electricity and other utilities consumed by Tenant on the Demised Premises
 during the Term. Tenant shall also pay for the cost assessed by any utility
 company or municipality for the provision of such services.

<PAGE>

     9. New Construction and Alterations. During the Term, Tenant shall
 undertake construction of Tenant's Improvements, specifically, the proposed 52
 million gallon waste to ethanol production facility, make alterations thereto
 and take any other actions with respect thereto and may, with Landlord's
 consent, not to be unreasonably withheld, by use of blacktop or other surfacing
 material, cover the Demised Premises or a portion thereof. Tenant shall make
 Tenant's Improvements and surface the Demised Premises or a portion thereof in
 accordance with the local ordinances. Tenant shall construct Tenants
 Improvements in accordance with the highest standards in the industry and in
 conformance with the Permit, as defined in the Feedstock Agreement, and
 applicable municipal, state, and federal law, rules, and regulations. Tenant
 shall be solely responsible for the costs of obtaining and maintaining all land
 use approvals, permits, and land use compliance necessary for the operation of
 the Tenant's Improvements.

     10. Uses. Landlord hereby agrees, represents and warrants that Tenant may
 use and occupy the Demised Premises only for the express purpose of erecting a
 52 million gallon waste to ethanol production facility.

     11. Mechanics' Liens. Tenant shall, within 60 days after the date of
 filing, discharge by bond or otherwise any mechanic's lien filed against the
 Demised Premises because of any work done or material furnished at the request
 of the Tenant.

     12. Taxes. Tenant covenants and agrees to pay to Landlord, before any
 penalties or interest shall accrue thereon, only such increases in real
 property taxes that may be taxed, charged, levied, assessed or imposed on the
 Demised Premises or any part thereof in respect of any part of the Term solely
 by reason of the existence of the Tenant's Improvements using the year of
 execution of this Lease Agreement as the Base Year. The tax increase in respect
 of the fiscal period in which the Term shall commence or terminate shall be
 apportioned. Landlord shall on demand furnish to Tenant evidence of any tax
 payment required hereunder.

     If by law any real property tax is payable, or may at the option of the
 taxpayer be paid, in installments, Tenant may, whether or not interest shall
 accrue on the unpaid balance thereof, pay the same, and any accrued interest on
 any unpaid balance thereof, in installments as each installment becomes due and
 payable, but in any event before any fine, penalty, or cost may be added
 thereto for nonpayment of any installments or interest. If such installment
 payments require the written election of the taxpayer, Landlord shall make such
 election. Tenant shall not be required to pay any installment other than those
 relating to a fiscal period within the Term, except that any installment
 relating to the fiscal period in which this Lease shall end shall not be
 apportioned between Landlord and Tenant. Tenant shall make payment to Landlord
 of any amount due hereunder, no less than forty-five (45) days prior to such
 real property tax being due.

     Landlord agrees that it will not settle, compromise, or otherwise act with
 respect to any proposed tax assessment of the Demised Premises without first
 giving Tenant timely notice thereof. Both Landlord and Tenant may protest any
 such assessment or proposed assessment and both shall, upon written request of
 the other, join in any such protest to the extent necessary. The costs of any
 such protests shall be borne equally.

     13. Landlord Not Liable for Damage to Tenant's Improvements. Landlord shall
 not be responsible to Tenant for any loss or damage to the Tenant's
 Improvements including environmental clean up to Tenant's Improvements for any
 cause whatever, except the willful or negligent act of Landlord and the default
 by Landlord in any material obligation of Landlord herein which directly
 results in damages to Tenant's Improvements.

<PAGE>

     14. Tenant Not Liable for Damage to Landlord's Improvements. Tenant shall
 not be responsible to Landlord for any loss or damage to the Landlord's
 Improvements, except the willful or negligent act of Tenant and the default by
 Tenant in any obligation of Tenant herein.

     15. Liability Insurance or Surety Bond. Tenant shall not be obligated to
 obtain Liability Insurance or Surety Bond until such a time that Tenant
 occupies the Demised Premises for purposes of constructing the Production
 Faciltiy. At such time, Tenant shall carry at its own expense public liability
 insurance or surety bond of not less than $ 3, 000,000 for injury to or death
 of one person, and not less than $ 5,000,000 for injury to or the death of two
 or more persons arising out of a single accident or occurrence on the Demised
 Premises which shall also insure the contingent liability, if any, of Landlord
 naming the Landlord as an additional insured in such policies. Tenant shall
 furnish Landlord with a certificate of such insurance policies, which shall
 also provide that such insurance policies shall not be reduced or changed
 without first giving Landlord 10 days' written notice of such change. Tenant
 shall not be obligated to obtain Liability Insurance or Surety Bond for
 property damage until such a time that Tenant occupies the Demised Premises for
 purposes of constructing the Production Faciltiy. At such time, Tenant shall
 carry its own expense property damage insurance or surety bond in an amount
 that is mutually agreed upon by Tenant and Landlord to be sufficient which also
 shall insure the contingent liability, if any, of Landlord naming the Landlord
 as an additional insured in such policies. Tenant shall furnish Landlord with a
 certificate of such insurance policies, which shall also provide that such
 insurance policies shall not be reduced or changed without first giving
 Landlord 10 days' written notice of such change.

     In the event that Tenant is unable to obtain liability insurance or a
 surety bond in the above said amounts, Tenant shall issue Landlord a guarantee
 of indemnification acceptable to Landlord in place of public liability
 insurance and property damage insurance policies.

     16. Fire and Other Casualty Insurance. Tenant shall not be obligated to
 obtain Fire and Other Casualty Insurance until such a time that Tenant occupies
 the Demised Premises for purposes of constructing the Production Faciltiy. At
 such time, Tenant shall, at Tenant's own cost and expense, keep the Tenant's
 Improvements, exclusive of foundations, insured against loss or damage by fire
 and those perils covered by "extended coverage" insurance in reasonable
 amounts. The policies of such insurance shall name as the insured Landlord and
 Tenant, as their interest may appear. All such insurance shall be written by
 responsible companies duly authorized to transact business in the state in
 which the Demised Premises are located.

     17. Subrogation. Landlord and tenant hereby agree to cause any insurance
 policy covering the tenant's improvements against loss by fire and the hazards
 covered by an extended coverage endorsement to contain a waiver of subrogation
 clause or endorsement under which the insurer waives its rights of subrogation
 against either party hereto in connection with any loss or damage covered by
 any such policy. Subject to the provisions of the immediately succeeding
 sentence and only to the extent of the loss or damage covered by such policy,
 landlord and tenant each hereby waives such causes of action either may have or
 acquire against the other which are occasioned by the negligence of either of
 them, or their employees or agents, resulting in personal injury or the
 destruction of or damage to property belonging to the other and located on the
 premises or the building of which they are a part which are caused by fire or
 the hazards covered by such policy. Notwithstanding the foregoing, if such a
 waiver of subrogation clause or endorsement cannot be obtained or is obtainable
 only by the payment of an additional premium charge above that charged by
 companies issuing such insurance without such waiver of subrogation, the party
 ordering such insurance shall notify the other party of such fact and such
 other party shall have a period of ten days after the giving of such notice
 within which to agree to pay such additional premium if such policy is
 obtainable at an additional cost, and the provisions of this paragraph shall be
 of no force or effect for so long as either such insurance cannot be obtained
 or the party in whose favor a waiver of subrogation is desired shall have
 failed to agree to pay the additional premium charge.

<PAGE>

     18. Removal of Tenant's Improvements. Tenant may, but shall not be
 obligated to, remove, free of any right or claim of Landlord, any Tenant's
 Improvements located on the Demised Premises providing that Tenant's financial
 obligations to Landlord are current as of the date of removal. And further
 provided that Tenant returns the Demised Premises to Landlord in the condition
 in which it existed prior to Tenant's Improvements.

     19. Inspection by Landlord. Tenant agrees to permit Landlord and the
 authorized representatives of Landlord to enter the Demised Premises at all
 reasonable times, upon reasonable notice and at reasonable intervals, during
 usual business hours for the purposes of: (a) inspecting the same; and (b)
 making such repairs or reconstruction as is required or permitted to Landlord
 hereunder; and (c) performing any work therein that may be necessary by reason
 of Tenant's default under the terms of this Lease. Nothing herein shall imply
 any duty upon the part of Landlord to do any such work which, under the
 provisions of this lease, Tenant may be required to perform. In so doing,
 Landlord shall cause Tenant the least inconvenience practicable and shall
 perform all repairs or reconstruction as soon as reasonably possible.

     20. Compliance with Ordinances, etc. During the Term, Tenant shall promptly
 execute and comply with all statutes, ordinances, rules, orders, regulations,
 and requirements of the federal, state and municipal governments and of any and
 all their departments and bureaus applicable to Tenant's Improvements and
 Tenant's use of the premises, for the correction, prevention, and abatement of
 nuisances, violations or other grievances, in, upon or connected with the use
 of the premises but only, however, to the extent that such results from the
 particular use of the Tenant.

     21. Casualty Damage. If the Tenant's Improvements are damaged or destroyed
 by any insured against peril, then:

     If substantial damage or destruction to Tenant's Improvements occurs, then
 Tenant shall have 30 days following such damage or destruction wherein to elect
 to terminate or rebuild. If Tenant elects not to rebuild, then Tenant may
 terminate this lease as of the date Tenant returns the Demised Premises to
 Landlord in the condition in which it existed prior to Tenant's Improvements.

     In the event this Lease is terminated under any option or election set
 forth in this Article, then such termination shall be effective as of 60 days
 after the date of the casualty.

     Tenant shall immediately notify Landlord in case of fire or other damage to
 the Tenant's improvements. Upon any rebuilding or repairing in accordance with
 this Lease, Tenant shall not be entitled to any damages from Landlord for any
 inconvenience caused thereby. If Tenant shall determine to remain on the
 Demised Premises, however, the Tenant shall rebuild as quickly as possible the
 Tenant's Improvements and Landlord shall rebuild as quickly as possible
 Landlords Improvements.

<PAGE>

     22. Condemnation. If the whole of the Demised Premises or the sole means of
 access to such part is taken by eminent domain during the Term, then this Lease
 shall terminate as of the date of the taking.

     If a portion only of the Tenant's Improvements or the Demised Premises is
 so taken, Landlord may offer Tenant an additional, equal portion of land on the
 premises to occupy. In the event that such additional land is not available, or
 practically occupied by Tenant, then this Lease shall terminate as to the part
 so taken, and, if in Tenant's reasonable judgment the taking materially impairs
 Tenant's operating on the Demised Premises, Tenant may, by written notice to
 the Landlord given within 30 days after Tenant has received notice of the
 taking, terminate this lease as of the date of the taking.

     If this Lease terminates or is terminated pursuant to any provision of this
 Section, then the Landlord shall be entitled to any award paid: (a) for the
 taking of Landlord's fee interest in the Demised Premises; (b) for any
 severance damage; and (c) for the taking of Landlord's interest in this Lease.
 Tenant shall have the right, on a par with Landlord, to claim in condemnation
 for the value of Tenant's Improvements and shall be entitled to a portion of
 any such award in an amount equal to the value of Tenant's Improvements so
 taken and moving expenses.

     If, after a partial taking, Tenant does not terminate this Lease, then:

     (1) the annual rental payable by the tenant hereunder shall, from and after
 the date on which the tenant is deprived of possession of such part, be reduced
 in that proportion which the remaining portion of the demised premises bears to
 the total value of the demised premises before such taking;

     (2) any work necessary to restore the remaining portion of the Demised
 Premises to a tenantable condition shall be undertaken at the expense of
 Landlord and Tenant in proportion to the amount of the award received by each
 of them;

     (3) while such work is in progress, if any part of the remaining portion of
 the Demised Premises is rendered unusable by Tenant, there shall be a
 reasonable abatement of rent according to the loss of use to Tenant; and

     (4) the amounts payable to Landlord and Tenant by reason of such taking, as
 above stated, shall be applied first to the cost of such restoration.

 Anything herein contained to the contrary notwithstanding, Tenant shall be
 entitled to any award for the taking of any property or trade fixtures of
 Tenant or for any moving expenses of Tenant.

     23. Assignment and Subletting. Tenant may assign this lease, or sublet the
 whole or any part or parts of the Demised Premises, with the prior written
 consent of Landlord which consent shall not be unreasonably withheld or
 delayed; but no assignment or subletting shall relieve Tenant from continuing
 liability from entire performance of this lease and full payment of the rent
 herein provided for.

     24. Events of Default. If any one or more of the following events
 ("default" or "event of default") shall happen:

     (A) Tenant shall default in the due and punctual payment of rent or any
 other payments required by Tenant hereunder and such default shall continue for
 30 days after receipt of written notice from Landlord; or

     (B) Tenant shall neglect or fail to perform or observe any of the covenants
 herein contained on Tenant's part to be performed or observed and Tenant shall
 fail to remedy the same within 30 days after Landlord shall have given to
 Tenant written notice specifying such neglect or failure or within such
 additional period, if any, as may be reasonably required to cure such default
 if it is of such a nature that it cannot be cured within such 30 day period; or

<PAGE>
     (C) Tenant fails to renew the Feedstock Agreement entered into by and
 between Tenant and Ocean County Recycling Center, Inc. for terms congruent with
 the renewal term herein, despite Ocean County Recycling Center, Inc.'s
 satisfactory performance under same.

     (D) The suspension of operation of Tenant's Improvement's for any such
 period of time in which it becomes reasonably clear that operations will not
 resume.

     (E) Tenant shall: (a) admit in writing its inability to pay its debts
 generally as they become due; or (b) file a petition in bankruptcy or for
 reorganization or for the adoption of an arrangement under the Bankruptcy Act
 (as now or in the future amended) or an answer or other pleading be filed by or
 on behalf of Tenant admitting the material allegations of such a petition or
 seeking, consenting to or acquiescing in the relief provided for under such
 Act; or (c) make an assignment of all or of a substantial part of its property
 for the benefit of its creditors; or (d) seek or consent to or acquiesce in the
 appointment of a receiver or trustee for all or a substantial part of its
 property or of the Demised Premises, or of its interest in this Lease; or (e)
 be adjudicated a bankrupt or insolvent, or approve a petition filed against it
 for the effecting of an arrangement in bankruptcy or for a reorganization
 pursuant to the Bankruptcy Act; provided, however, that none of the events
 described in this subparagraph (E) shall constitute an "event of default" if
 Tenant shall continue to pay the rent and such other charges as are reserved
 hereunder; then Landlord shall have the right, at its election, then or at any
 time thereafter, and while such event of default shall continue, to either:

     (A) give Tenant written notice of Landlord's intention to terminate this
 Lease on the date of such notice or on any later date specified therein, and on
 the date specified in such notice Tenant's right to the use, occupancy and
 possession of the Demised Premises shall cease and this Lease shall thereupon
 be terminated; or

     (B) re-enter and take possession of the Demised Premises or any part
 thereof and repossess the same as of Landlord's former estate and expel Tenant
 and those claiming through or under Tenant and remove the effects of both or
 either therefrom without being deemed guilty of any manner of trespass. Any
 such property which is removed may be stored by Landlord in a public warehouse
 or elsewhere at the cost of and for the account of Tenant. Should Landlord
 elect to reenter as provided in this subparagraph (B) or should Landlord take
 possession pursuant to legal proceedings or pursuant to any notice provided for
 by law then this Lease shall be deemed to have been terminated as of the date
 of such repossession or reentry.

 In the event that Landlord does not elect to terminate this Lease as permitted
 in subparagraph (A) above, but on the contrary elects to take possession as
 provided in subparagraph (B) above, then such repossession shall relieve Tenant
 of its liability and obligation under this Lease. In the event of such
 repossession, Tenant shall pay the rent and all additional rent and other sums
 as herein provided up to the time of termination of this Lease (which Landlord
 can declare at any time while Tenant remains in default).

     25. Tenants Rights When Conditioned on Absence of Default. Whenever in this
 Lease a right or obligation of Tenant or Landlord is conditioned upon the
 presence or absence of any default, noncompliance, nonperformance, violation or
 breach by the Tenant of any of the Tenant's obligations under this lease, the
 Tenant shall not be deemed to be in default, noncompliance, nonperformance,
 violation or breach of any such obligation unless and until the Tenant's time
 to rule the same, as herein elsewhere provided, has expired.

<PAGE>

     26. Landlord's Covenants in Respect to Superior. Landlord shall pay when
 due all principal and interest on any mortgage or superior lease to which this
 Lease is subordinate or subordinated, and shall pay all mechanic's liens filed
 against the Demised Premises by reason of any construction required by Landlord
 hereunder.

     27. Surrender of Premises. Upon termination of this lease, whether by lapse
 of time, cancellation pursuant to an election provided for herein, forfeiture
 or otherwise, Tenant shall immediately surrender possession of the Demised
 Premises to Landlord, in the condition that it existed prior to Tenant's
 Improvements, reasonable wear and tear and damage from fire or other casualty
 or peril excepted.

     At any time during the term of this Lease and upon the termination of this
 Lease, Tenant shall have the right to remove from the Demised Premises all
 Tenant's Improvements. If this Lease terminates at any time other than the time
 fixed as the expiration of the Term, Tenant shall have a reasonable time not
 exceeding 60 days thereafter to effect such removal. If any of such property
 shall remain on the Demised Premises after the end of the Term, or after the
 60-day period above specified in the event termination occurs prior to the time
 fixed as expiration of the Term, such property shall be and become the property
 of Landlord without any claim therein of Tenant should Landlord so elect.

     28. Quiet Enjoyment. Landlord covenants that Tenant, so long as Tenant is
 not in default hereunder, shall and may peaceably and quietly have, hold and
 enjoy the premises for and during the Term.

     29. Remedies Cumulative. The specific remedies to which Landlord or Tenant
 may resort under the terms of this lease are cumulative and are not intended to
 be exclusive of any other remedies or means of redress to which they may be
 lawfully entitled in case of any breach or threatened breach by either of them
 or of any provisions of this Lease.

     30. Right To Cure Other Party's Defaults. In the event of any default
 hereunder by Tenant, Landlord may, if such default continues after reasonable
 notice thereof to Tenant, cure such default for the account and at the expense
 of Tenant. If Landlord at any time, by reason of such breach, is compelled to
 pay, or elects to pay, any sum of money or do any act which will require the
 payment of any sum of money or is compelled to incur any expense, including
 reasonable attorneys' fees, in instituting, prosecuting, and/or defending any
 action or proceeding to enforce Landlord's rights hereunder or otherwise, the
 sum or sums so paid by Landlord, with all interest, costs and damages, shall on
 demand be deemed to be additional rent hereunder and shall be due from Tenant
 to Landlord on the first day of the month following the incurring of such
 respective expenses. This provision is in addition to the rights of Landlord to
 terminate this Lease by reason of any default on the part of Tenant.

     In the event of any default hereunder by Landlord, including, by way of
 illustration and not limitation, a default by Landlord in the performance of
 its obligations under Section 4 hereof, Tenant may, if such default continues
 after reasonable notice thereof to Landlord, cure such default for the account
 and at the expense of Landlord. If Tenant at any time, by reason of such
 breach, is compelled to pay, or elects to pay, any sum of money or do any act
 which will require the payment of any sum of money, or is compelled to incur
 any expense, including reasonable attorneys' fees, in instituting, prosecuting
 and/or defending any action or proceeding to enforce Tenant's rights hereunder
 or otherwise, the sum or sums so paid by Tenant, with all interest, costs and
 damages, shall on demand be paid by Landlord to Tenant or may be deducted by
 Tenant from any monies then due or thereafter becoming due from Tenant to
 Landlord. In no event, including the default by Landlord, shall the common
 stock of the Tenant described in Paragraph 3 above be required to be returned
 to Tenant.

<PAGE>

     31. Arbitration. Except as otherwise specifically provided herein, all
 disputes arising under this Lease Agreement shall be submitted to arbitration
 under the rules then obtaining of the American Arbitration Association with
 arbitrators to be selected from that chapter's panel and submission to
 arbitration shall be a condition precedent to the maintenance of any litigation
 respecting any rights or obligations arising under this Lease. Arbitration
 shall take place in Ocean County New Jersey. The award in arbitration shall be
 binding upon the parties hereto and shall be entered as a judgment in the
 applicable court. The arbitrators may in their discretion award costs against
 the losing party or may divide costs in any manner they deem appropriate.
 Notwithstanding the foregoing, nothing in this lease shall prevent a party from
 seeking court intervention for matters that cannot be resolved by arbitration
 such as injunctions and other relief.

     32. Memoranda of Lease. At the request of either party, Landlord and Tenant
 will execute and deliver, in duplicate original counterparts, a recordable
 memorandum of this Lease Agreement identifying the Demised Premises and,
 stating the Term and providing such other information as may reasonably be
 required.

     At or after any modification of this Lease, at the request of either party,
 Landlord and Tenant will execute and deliver, in duplicate original
 counterparts, a recordable memorandum of such modification.

     The costs of recording any such memorandum shall be borne by the party
     requesting the same. 33. Notices. Any notice, demand or request which under
     the terms of this Lease or under any statute must or

 may be given or made by either of the parties hereto to the other party shall
 be in writing, and shall be given by mailing the same by registered mail
 addressed to the address first written above. Either party, however, may
 designate in writing any new or other address to which such notice, demand or
 request shall thereafter be so mailed. Any such notice, demand or request shall
 be deemed given when deposited in a United States general or branch post
 office, maintained by the United States Government, enclosed in a registered,
 prepaid wrapper address as provided above.

     34. No Oral Modification. This instrument contains all the agreements and
 conditions made between the parties hereto with respect to the leasing of the
 Demised Premises, and may not be modified, waived or terminated in any manner
 other than by an agreement in writing signed by all the parties hereto or their
 respective successors in interest.

     35. Rights of Successors and Assigns. The covenants and agreements
 contained in this Lease shall apply, inure to the benefit of and be binding
 upon the parties hereto and their respective successors in interest and legal
 representatives, except as otherwise herein expressly provided. The terms
 "Landlord" and "Tenant", as used in this Lease, shall be deemed to refer to the
 parties executing this Lease as Landlord and Tenant as well as their respective
 successors, assigns, and legal representatives.

     36. Applicable Law. The law of the state in which the Demised Premises are
 located shall govern the rights and duties of the parties to this Lease and the
 interpretation of its provisions.

<PAGE>

     37. Waiver of Trial by Jury. It is mutually agreed by and between Landlord
 and Tenant that the respective parties hereto shall and they hereby do waive
 trial by jury in any action, proceeding or counterclaim brought by either of
 the parties hereto against the other (except for personal injury or property
 damage) on any matters whatsoever arising out of or in any way connected with
 this Lease, the relationship of Landlord and Tenant, Tenant's use of or
 occupancy of the premises, and any emergency statutory or any other statutory
 remedy.

     38. Fees and Expenses. If at any time during the term hereof after notice
 Tenant or Landlord fails, refuses or neglects to do any of the things herein
 provided to be done by it, Landlord or Tenant, as the case may be, shall have
 the right but not the obligation to do the same, but at the cost and for the
 account of the other party, and any amount so expended shall be repaid to
 Landlord or Tenant forthwith upon payment by the other party.

     In the event of any litigation or arbitration between Tenant and Landlord
 to enforce any provision of this Lease or any right of either party hereto, the
 unsuccessful party to such litigation or arbitration shall pay to the
 successful party all costs and expenses, including reasonable attorneys' fees,
 incurred therein. Moreover, if either party hereto without fault is made a
 party to any litigation instituted by or against any other party to this Lease,
 such other party shall indemnify Landlord or Tenant, as the case may be,
 against and save it harmless from all costs and expenses, including reasonable
 attorneys' fees incurred by it in connection therewith.

     39. Captions. The captions as to contents of particular articles herein are
 inserted only for convenience, and are in no way to be construed as parts of
 this Lease or as limitations or qualifications or enlargements of the
 particular articles to which they refer.

         IN WITNESS WHEREOF, the duly authorized officers of each of the
undersigned have set their hand in seal the day and year first above written.

                                  VENTURE III ASSOCIATES,
                                  a New Jersey General Partnership

                                  By:  /s/ Louis Sanzaro            11/03/05
                                       --------------------------
                                  Louis Sanzaro, General Partner

                                  By:  /s/ Joseph Sanzaro           11/03/05
                                       --------------------------
                                  Joseph Sanzaro, General Partner

                                  FUTURE FUELS, INC.,
                                  a Nevada Corporation

                                  By:  /s/ Jack Young
                                       --------------------------
                                       Jack Young President FFIEXHIBIT
        10.1

      

      FORM
        OF EMPLOYMENT AGREEMENT WITH THOMAS EVANS

      

      EMPLOYMENT
        AGREEMENT

       

      THIS
        AGREEMENT
        is
        entered into this as of November 3, 2005 (this “Agreement”)
        by and
        between The Felton Bank (the “Bank”)
        and
        Shore Bancshares, Inc. “Shore
        Bancshares”,
        with
        the Bank, collectively, the “Companies”)
        and
        Thomas Evans (the “Employee”).

       

      WHEREAS,
        Bank
        is a
        subsidiary of Shore Bancshares; and

       

      WHEREAS,
        the
        Employee has been employed by the Bank as President and Chief Executive Officer;
        and

       

      WHEREAS,
        the
        parties hereto desire by writing set forth the continued employment relationship
        of the Companies and the Employee;

       

      NOW
        THEREFORE,
        it is
        AGREED as follows:

       

      1.  The
        Employee is employed as the President and Chief Executive Officer of The
        Felton
        Bank. The Employee shall render administrative and management services to
        the
        Companies such as are customarily performed by persons situated in similar
        executive capacity. The Employee shall also promote, by entertainment or
        otherwise, as and to the extent permitted by law, the business of the Companies.
        The Employee’s other duties shall be such as the Boards of Directors of the
        Companies (the “Boards”) may from time to time reasonably direct, including
        normal duties of an officer of the Companies.

       

      2.  The
        Companies agree to pay the Employee during the term of this Agreement a salary
        at the rate of $105,000.00 per annum, in cash not less frequently than twice
        monthly or at some other reasonable frequency as other employees of the
        Companies are paid. Such rate of salary, or increased rate of salary, if
        any, as
        the case may be, shall be reviewed by the Boards, or by a committee designated
        by the Boards, no less often than annually and may be increased; which increases
        may not be unreasonably denied; but not decreased, in such amounts as the
        Boards
        in their discretion may decide.

       

      3.  The
        Employee shall be eligible to participate in such discretionary bonuses when
        and
        as declared by the Boards.

       

      4. 
         (a)
        The
        Employee shall be entitled to participate in any plan of the Companies relating
        to pension, profit sharing, or other retirement benefits and medical coverage
        or
        reimbursement plans the Companies may adopt for the benefit of its
        employees.

       

       (b) The
        Employee shall be eligible to participate in any fringe benefits which may
        be or
        become applicable to the Companies’ officers including participation in any
        stock option or incentive plans adopted by the Boards, a reasonable expense
        account, and any other benefits which are commensurate with the responsibilities
        and functions to be performed by the Employee under this Agreement.

       

      5.  The
        initial term of employment under this Agreement shall be for 29 months
        commencing on the date of this Agreement and ending on March 31, 2008. Upon
        the
        expiration of the this initial term of employment, the term of employment
        shall
        automatically be extended for another 12 month period and then for successive
        12
        month periods without further action by the parties, unless either party
        shall
        have served notice upon the other 90 days prior to the commencement of any
        period, of its intention that this Agreement shall terminate at the end of
        the
        then current term of employment.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      6.  (a)
        The
        Employee shall devote his full time and best efforts to the performance of
        his
        employment under this Agreement. During the term of this Agreement, the Employee
        shall not, at any time or place, either directly or indirectly, engage in
        any
        business or activity in competition with the business affairs or interest
        of the
        Companies. 

       

       
        (b) During
        the term of this Agreement and, in the event of termination prior to expiration
        of such term, except as otherwise provided in the next sentence, the Employee
        will not be a director, officer, or employee of, or consultant to, any federal
        or state financial, institution other than the Companies or their subsidiaries
        or affiliates, operating within 50 miles of any of the Companies. Such
        non-compete covenant shall terminate and be of no further force and effect
        upon
        the earliest to occur of (i) one year after the expiration date of this
        Agreement or (ii) one year after termination of the Employee’s employment under
        Subsection 9(c) 9 (f)or 9(g).

       

       
        (c) Nothing
        contained in this Section 6 shall be deemed to prevent or limit the right
        of the
        Employee to invest in the capital stock or other securities of any business
        dissimilar from that of the Companies or, solely as a passive and minority
        investor in any business.

       

      7.  The
        Employee shall perform his duties under this Agreement in accordance with
        such
        reasonable standards expected of employees with comparable positions in
        comparable organizations and as may be established from time to time by the
        Boards.

       

      8.  At
        such
        reasonable times as the Boards shall in their discretion permit, the Employee
        shall be entitled, without loss of pay, to absent himself voluntarily from
        the
        performance of his employment under this Agreement, all such voluntary absences
        to count as vacation time; provided that:

       

       
        (a) The
        Employee shall be entitled to an annual vacation in accordance with the policies
        as periodically established by the Boards for senior management officials
        of the
        Companies, which shall in no event be less than three weeks.

       

       
        (b) The
        Employee shall not be entitled to receive any additional compensation from
        the
        Companies on account of his failure to take a vacation; nor shall he be entitled
        to accumulate unused vacation from one fiscal year to the next except to
        the
        extent authorized by the Boards for senior management officials of the
        Companies.

       

       
        (c) In
        addition to the aforesaid paid vacations, the Employee shall be entitled
        without
        loss of pay, to absent himself voluntarily from the performance of his
        employment with the Companies for such additional periods of time and for
        such
        valid and legitimate reasons as the Boards in their discretion may
        determine.

       

       
        (d) In
        addition, the Employee shall be entitled to an annual sick leave as established
        by the Boards for senior management officials of the Companies. In the event
        any
        sick leave shall not have been used during any year, such leave shall not
        accrue
        to subsequent years unless authorized by the Boards. Upon termination of
        his
        employment, the Employee shall not be entitled to receive any additional
        compensation from the Companies for unused sick leave.

       

      9.  The
        Employee’s employment under this Agreement shall be terminated upon the
        following occurrences:

       

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

         

      

      (a) The
        death
        of the Employee during the term of this Agreement, in which event the Employee’s
        estate shall be entitled to receive the compensation due the Employee through
        the last day of the calendar month in which the Employee’s death shall have
        occurred (including any bonus under Section 3, pro rated through the last
        day of
        such calendar month, to which the Employee would have been eligible to receive
        had he been alive when bonuses were next declared), and any vested rights
        and
        benefits of the Employee pursuant to any plan of the Companies, whether or
        not
        written.

       

      (b) The
        Boards may terminate the Employee’s employment at any time, but any termination
        by the Boards other than termination for Cause (defined below), shall not
        prejudice the Employee’s right to compensation or other benefits as provided for
        under this Agreement. The Employee shall have no right to receive compensation
        or other benefits, except at the discretion of the Boards after termination
        for
        Cause. Termination for “Cause” shall mean termination for gross negligence or
        gross neglect or the commission of a felony or gross misdemeanor involving
        moral
        turpitude, fraud, dishonesty or willful violation of any law that results
        in any
        adverse effect on either of the Companies, or for intentional failure to
        perform
        stated duties.

       

      (c) In
        the
        event the Employee’s employment under this Agreement is terminated by the Boards
        without Cause, the Companies shall be obligated to pay the Employee the payment
        of one-year salary based on the current year salary at the time of termination.
        Said sum shall be paid in one lump sum within 15 days of the
        termination.

       

      (d) If
        the
        Employee is removed and/or permanently prohibited from participating in the
        conduct of the Companies’ business by an order issued by the Delaware
        Commissioner of Financial Regulation, the Federal Deposit Insurance Corporation,
        the Board of Governors of the Federal Reserve System, or other appropriate
        supervisory agency, obligations under this Agreement shall terminate, as
        of the
        effective date of the order, but vested rights of the parties shall not be
        affected.

       

      (e) The
        voluntary termination by the Employee during the term of this Agreement with
        the
        delivery of no less than 90 days written notice to the Boards, in which case
        the
        Employee shall be entitled to receive only his compensation, vested rights,
        and
        all employee benefits up to the date of his termination, unless otherwise
        provided by law.

       

      (f) Notwithstanding
        any other provision of this Agreement to the contrary (except Subsection
        9(h)),
        if the Employee’s employment under this Agreement is terminated by the
        Companies, without Employee’s consent and for reason other than Cause, in
        connection with or within 12 months after any Change in Control (defined
        in
        Subsection 9(g) below) of the Companies, or if the Employee voluntarily
        terminates employment for any reason during the 30 day period beginning with
        said Change in Control, the Employee shall be paid an amount equal to the
        difference between (i) the product of 2.99 times the Employee’s “base amount” as
        defined in Section 280G(b)(3) of the Internal Revenue Code, as amended (the
        “Code”) and regulations promulgated thereunder, and (ii) the sum of any other
        parachute payments (as defined under Section 280G(b)(2) of the Code) that
        the
        Employee receives on account of the Change in Control. Said sum shall be
        paid to
        the Employee in one lump sum within 10 days of the termination. This Subsection
        9(f) is not applicable in the event of a termination of the Employee’s
        employment due to Employee’s death or voluntary termination (other than
        voluntary termination pursuant to Subsection 9(g)). 

       

      (g) Notwithstanding
        any other provision of this Agreement to the contrary (except this Subsection
        9(g)), the Employee may voluntarily terminate the Employee’s employment within
        12 months following a Change in Control of the Companies, and the Employee
        shall
        thereupon be entitled to receive the payment described in Subsection 9(f)
        of
        this Agreement, upon the occurrence of any of the following events, or within
        90
        days thereafter, which have not been consented to in advance by the Employee
        in
        writing: (i) the requirement that the Employee perform the Employee’s principal
        executive functions more than 35 miles from the Employee’s primary office as of
        the date of the Change in Control; (ii) a reduction in the Employee’s base
        compensation in effect on the date of the Change in Control or as the same
        may
        be increased from time to time; (iii) the failure by the Companies to continue
        to provide the Employee with the compensation and benefits provided for under
        this Agreement, as the same may be changed by mutual agreement from time
        to
        time, or with benefits substantially similar to those provided to the Employee
        under any employee benefit plan in which the Employee is a participant at
        the
        time of the Change in Control, or the taking of any action which would
        materially reduce any of such benefits or deprive the Employee of any material
        fringe benefit enjoyed by the Employee at the time of the Change in Control;
        (iv) the assignment to the Employee of duties and responsibilities materially
        different from those normally associated with the Employee’s position as
        referenced at Section 1; (v) a failure to elect or reelect the Employee to
        the
        Boards of the Companies (if the Employee is serving on the Boards at the
        time of
        the Change in Control); or (vi) a material diminution or reduction in the
        Employee’s responsibilities or authority (including reporting responsibilities)
        in connection with the Employee’s employment with the Companies. 

       

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

       

      The
        term
“Change
        in Control”
        shall
        mean any one of the following events: (i)
        the
        acquisition of ownership, holding or power to vote more than 25% of the
        Companies’ voting stock; (ii)
        the
        acquisition of the ability to control the election of a majority of the
        Companies’ directors; (iii)
        the
        acquisition of a controlling influence over the management or policies of
        Companies by any person or by person acting as a “group”
        within
        the meaning of Section 12(d) of the Securities Exchange Act of 1934);
(iv)
        the
        acquisition of control of the Companies within the meaning of 12 C.F.R. Part
        5.50 or its applicable equivalent (except in the case of (i), (ii), (iii),
        or
        (iv) if this paragraph, the Companies’ mere formation of a holding company shall
        not itself constitute a Change in Control), or (v)
        during
        the period of two consecutive years, individuals (the “Continuing
        Directors”)
        who at
        the beginning of such period constitute the Boards of the Companies (the
        “Existing
        Board”)
        cease
        for any reason to constitute at least two-thirds thereof, provided that any
        individual whose election as a member of the Existing Board was approved
        by a
        vote of at least two-thirds of the Continuing Directors then in office shall
        be
        considered a Continuing Director. For purposes of this paragraph only, the
        term
“person”
        refers
        to an individual or a corporation, partnership, trust, association, joint
        venture, pool, syndicate, sole proprietorship, unincorporated organization
        or
        any other form
        of
        entity not specifically listed herein.

       

      (h) Any
        payments made to the Employee pursuant to this Agreement, or otherwise, are
        subject to, and conditioned upon their compliance with 12 U.S.C. Section
        1828(k)
        and any regulations promulgated thereunder.

       

      (i) As
        a
        condition of receiving any payments under paragraph 9(c), 9(f) or 9(g), Employee
        shall be required to sign a release and covenant not to sue.

       

      10.  
(a)
        The
        suspension of the Employee from office and/or temporary prohibition from
        participation in the conduct of the affairs of the Companies pursuant to
        notice
        served by the appropriate regulatory agency, unless stayed by appropriate
        proceedings, shall suspend, as of the date of such service, all obligations
        of
        the Companies under the terms of this Agreement.

       

      (b) In
        the
        event the charges specified in a notice served as provided in Section 10(a)
        shall be dismissed, the Companies shall (i)
        pay the
        Employee any compensation withheld from the Employee pursuant to the suspension
        of the Companies’ obligations as required in Section 10(a) and (ii)
        reinstate the obligations suspended as required in Section 10(a).

       

      11.  If
        the
        Employee shall become disabled or incapacitated, as determined by the Employee’s
        physician, to the extent that he is unable to perform the duties provided
        in
        Section 1, he shall nevertheless continue to receive the following percentages
        of his compensation, inclusive of any benefits which may be payable to the
        Employee under the provisions of any disability insurance in effect for the
        Employee, under Section 2 for the following periods of disability: 100% for
        the
        first 6 months, 75% for the next 12 months, and 50% thereafter for the remainder
        of the initial term, or any renewal thereof, of this Agreement. Upon returning
        to active full-time employment, the Employee’s full compensation as set forth in
        this Agreement shall be reinstated. In the event that the Employee returns
        to
        active employment on other than a full-time basis, then his compensation
        as set
        forth in Section 2 may be reduced in proportion to the time spent in said
        employment. If he is again unable to perform the duties provided in Section
        1
        due to illness or other incapacity, benefits under this Section 11 shall
        (a)
        begin
        again at 100% for the first 6 months if he has been engaged in active full-time
        employment for more than 12 months immediately prior to such later absence
        or
        inability or (b)
        resume
        where benefits left off if he has been engaged in active full-time employment
        for 12 months or less immediately prior to such later absence or
        inability.

       

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

         

      

      12. 
         (a)This
        Agreement shall inure to the benefit of and be binding upon any corporate
        or
        other successor of the companies which shall acquire, directly or indirectly,
        by
        merger, consolidation, purchase, or otherwise, all or substantially all of
        the
        assets of the Companies.

       

      (b) Since
        the
        Companies are contracting for the unique and personal skills of the Employee,
        the Employee shall be precluded from assigning or delegating his rights or
        duties hereunder without first obtaining the written consent of the
        Companies.

       

      13.  In
        the
        event a dispute arises over benefits or other provisions under this Agreement,
        then the parties hereto agree to submit the dispute to non-appealable binding
        arbitration. The Board of Arbitrators shall consist of three members, with
        one
        member selected by the Employee, one member selected by the Companies, and
        the
        third member selected by the first two members. The party responsible for
        the
        payment of the costs of such arbitration (including any legal fees and expenses
        incurred by the Employee) shall be determined by the Board. The Board shall
        be
        bound by the rules of the American Arbitration Association in making their
        determination. The parties hereto agree that they and their heirs, personal
        representatives, successors, and assigns shall be bound by the decision of
        such
        Board with respect to any controversy properly submitted to it for
        determination.

       

      Where
        a
        dispute arises as to the Companies’ discharge of the Employee for Cause, such
        dispute shall likewise be submitted to arbitration as above described and
        the
        parties hereto agree to be bound by the decision hereunder.

       

      14.  This
        Agreement supercedes all prior agreements with respect to your employment
        with
        the Companies.

       

      15.  No
        amendments or additions to this Agreement shall be valid unless in writing
        and
        signed by both parties, except as herein otherwise provided.

       

      16.  This
        Agreement shall be governed in all respects whether as to validity,
        construction, capacity, performance or otherwise, by the laws of the State
        of
        Maryland, except to the extent that Federal law shall be deemed to
        apply.

       

      17.  The
        provisions of this Agreement shall be deemed severable and the invalidity
        or
        unenforceability of any provision shall not affect the validity and
        enforceability of the other provisions hereof.

       

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

      IN
        WITNESS WHEREOF, the parties have executed this Agreement as of the date
        written
        above.

       

      
        	 	 	 
	ATTEST:	THE
                FELTON BANK
	 
 
                
                  

                

              	
                 

                 

                
                  

                

                W. Edwin Kee, Jr.,
                  Chairman

              

      

       

      
        	 	 	 
	ATTEST:	SHORE
                BANCSHARES, INC.
	 
 
                
                  

                

              	
                 

                 

                
                  

                

                W. Moorhead Vermilye,
                  Chairman

              

         

      

      
        	 	 	 
	WITNESS:	 
	 
 
                
                  

                

              	
                 

                 

                
                  

                

                Thomas Evans

              

         

      

      
        
           

        

        
          -6-

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