Document:

EXHIBIT
      10.2

    

    SPLIT-OFF
      AGREEMENT

    

    SPLIT-OFF
      AGREEMENT,
      dated
      as of this 1st day of September 2006 (this “Agreement”), by and among Ethanex
      Energy, Inc. (f/k/a New Inverness Explorations, Inc.), a Nevada corporation
      (“Seller”), Amanda Lamothe (“Lamothe”), Luke Willis (“Willis”) (Lamothe and
      Willis are collectively referred to as “Buyer”), New Inverness Leaseco, Inc., a
      Nevada corporation (“Leaseco”), and Ethanex Energy North America, Inc., a
      Delaware corporation (“EENA”).

     

    R
      E C I T A L S:

    

    WHEREAS, Seller
      is
      the owner of all of the issued and outstanding capital stock of Leaseco. Leaseco
      is a newly-formed wholly owned subsidiary of Seller which was organized to
      acquire, and has so acquired, a mineral property option agreement previously
      granted to Seller. Seller has no other businesses or operations;

    

    WHEREAS,
      prior
      to the execution of this Agreement, Seller, EENA, and a newly-formed
      wholly-owned Delaware subsidiary of Seller, Ethanex North America Acquisition
      Corp. (“Acquisition Corp.”), have entered into an Agreement and Plan of Merger
      and Reorganization (the “Merger Agreement”) pursuant to which Acquisition Corp.
      merged with and into EENA with EENA being the surviving entity (the “Merger”),
      and the members of EENA received shares of common stock in Seller in exchange
      for their membership interests in EENA;

    

    WHEREAS,
      the
      execution and delivery of this Agreement was required by EENA as a condition
      subsequent to its execution of the Merger Agreement. The consummation of the
      purchase and sale transaction contemplated by this Agreement was also a
      condition subsequent to the completion of the Merger pursuant to the Merger
      Agreement. Seller has represented to EENA in the Merger Agreement that the
      purchase and sale transaction contemplated by this Agreement would be
      consummated as soon as practicable following the consummation of the Merger,
      and
      EENA relied on such representation in entering into the Merger
      Agreement;

    

    WHEREAS,
      Buyer
      desires to purchase the Shares (as defined in Section
      1.1)
      from
      Seller, and to assume, as between Seller and Buyer, all responsibilities for
      any
      debts, obligations and liabilities of Leaseco, on the terms and subject to
      the
      conditions specified in this Agreement; and

    

    WHEREAS,
      Seller
      desires to sell and transfer the Shares to the Buyer, on the terms and subject
      to the conditions specified in this Agreement.

    

    NOW,
      THEREFORE,
      in
      consideration of the premises and the covenants, promises, and agreements herein
      set forth and for other good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, the parties hereto, intending
      legally to be bound, agree as follows.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    I. PURCHASE
      AND SALE OF STOCK.

     

    1.1 Purchased
      Shares.
      Subject
      to the terms and conditions provided below, Seller shall sell and transfer
      to
      Buyer and Buyer shall purchase from Seller, on the Closing Date (as defined
      in
Section
      1.3),
      all
      the issued and outstanding shares of capital stock of Leaseco (the
“Shares”).

     

    1.2 Purchase
      Price.
      The
      purchase price for the Shares shall be the transfer and delivery by each of
      Peters and Smith to Seller of 5,000,000 shares of common stock of Seller that
      each of them owns, or an aggregate of 10,000,000 shares (the “Purchase Price
      Shares”), deliverable as provided in Section
      2.2.

     

    1.3 Closing.
      The
      closing of the transactions contemplated in this Agreement (the “Closing”) shall
      take place as soon as practicable following the execution of this Agreement.
      The
      date on which the Closing occurs shall be referred to herein as the Closing
      Date
      (the “Closing Date”).

     

    II. CLOSING.

     

    2.1 Transfer
      of Shares.
      At the
      Closing, Seller shall deliver to Buyer certificates representing the Shares,
      duly endorsed to Buyer or as directed by Buyer, which delivery shall vest Buyer
      with good and marketable title to all of the issued and outstanding shares
      of
      capital stock of Leaseco, free and clear of all liens and
      encumbrances.

     

    2.2 Payment
      of Purchase Price.
      At the
      Closing, Buyer shall deliver to Seller a certificate or certificates
      representing the Purchase Price Shares duly endorsed to Seller, which delivery
      shall vest Seller with good and marketable title to the Purchase Price Shares,
      free and clear of all liens and encumbrances.

     

    2.3 Transfer
      of Records.
      On or
      before the Closing, Seller shall arrange for transfer to Leaseco all existing
      corporate books and records in Seller’s possession relating to Leaseco and its
      business, including but not limited to all agreements, litigation files, real
      estate files, mineral leases, personnel files and filings with governmental
      agencies; provided,
      however,
      when
      any such documents relate to both Seller and Leaseco, only copies of such
      documents need be furnished. On or before the Closing, Buyer and Leaseco shall
      transfer to Seller all existing corporate books and records in the possession
      of
      Buyer or Leaseco relating to Seller, including but not limited to all corporate
      minute books, stock ledgers, certificates and corporate seals of Seller and
      all
      agreements, litigation files, real property files, personnel files and filings
      with governmental agencies; provided,
      however,
      when
      any such documents relate to both Seller and Leaseco or its business, only
      copies of such documents need be furnished.

     

    III. BUYER’S
      REPRESENTATIONS AND WARRANTIES.
      Buyer
      represents and warrants to Seller and EENA that:

     

    3.1 Capacity
      and Enforceability.
      Buyer
      has the legal capacity to execute and deliver this Agreement and the documents
      to be executed and delivered by Buyer at the Closing pursuant

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    to
      the
      transactions contemplated hereby. This Agreement and all such documents
      constitute valid and binding agreements of Buyer, enforceable in accordance
      with
      their terms.

     

    3.2 Compliance.
      Neither
      the execution and delivery of this Agreement nor the consummation of the
      transactions contemplated hereby by Buyer will result in the breach of any
      term
      or provision of, or constitute a default under, or violate any agreement,
      indenture, instrument, order, law or regulation to which Buyer is a party or
      by
      which Buyer is bound.

     

    3.3 Purchase
      for Investment.
      Buyer
      is financially able to bear the economic risks of acquiring an interest in
      Leaseco and the other transactions contemplated hereby, and has no need for
      liquidity in this investment. Buyer has such knowledge and experience in
      financial and business matters in general and with respect to businesses of
      a
      nature similar to the business of Leaseco so as to be capable of evaluating
      the
      merits and risks of, and making an informed business decision with regard to,
      the acquisition of the Shares. Buyer is acquiring the Shares solely for his
      own
      account and not with a view to or for resale in connection with any distribution
      or public offering thereof, within the meaning of any applicable securities
      laws
      and regulations, unless such distribution or offering is registered under the
      Securities Act of 1933, as amended (the “Securities Act”), or an exemption from
      such registration is available. Buyer has (i) received all the information
      he has deemed necessary to make an informed investment decision with respect
      to
      the acquisition of the Shares; (ii) had an opportunity to make such
      investigation as he has desired pertaining to Leaseco and the acquisition of
      an
      interest therein and to verify the information which is, and has been, made
      available to him; and (iii) had the opportunity to ask questions of Seller
      concerning Leaseco. Buyer acknowledges that Buyer is an officer and director
      of
      Seller and Leaseco and, as such, has actual knowledge of the business,
      operations and financial affairs of Leaseco. Buyer has received no public
      solicitation or advertisement with respect to the offer or sale of the Shares.
      Buyer realizes that the Shares are “restricted securities” as that term is
      defined in Rule 144 promulgated by the Securities and Exchange Commission under
      the Securities Act, the resale of the Shares is restricted by federal and state
      securities laws and, accordingly, the Shares must be held indefinitely unless
      their resale is subsequently registered under the Securities Act or an exemption
      from such registration is available for their resale. Buyer understands that
      any
      resale of the Shares by him must be registered under the Securities Act (and
      any
      applicable state securities law) or be effected in circumstances that, in the
      opinion of counsel for Leaseco at the time, create an exemption or otherwise
      do
      not require registration under the Securities Act (or applicable state
      securities laws). Buyer acknowledges and consents that certificates now or
      hereafter issued for the Shares will bear a legend substantially as
      follows:

     

    THE
      SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR QUALIFIED UNDER
      ANY APPLICABLE STATE SECURITIES LAWS (THE “STATE ACTS”), HAVE BEEN ACQUIRED FOR
      INVESTMENT AND MAY NOT BE SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED
      EXCEPT PURSUANT TO A REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND
      QUALIFICATION UNDER THE STATE ACTS OR EXEMPTIONS FROM SUCH REGISTRATION OR
      QUALIFICATION REQUIREMENTS (INCLUDING, IN THE CASE OF THE SECURITIES ACT, THE
      EXEMPTIONS AFFORDED BY SECTION 4(1) OF THE

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    SECURITIES
      ACT AND RULE 144 THEREUNDER). AS A PRECONDITION TO ANY SUCH TRANSFER, THE ISSUER
      OF THESE SECURITIES SHALL BE FURNISHED WITH AN OPINION OF COUNSEL OPINING AS
      TO
      THE AVAILABILITY OF EXEMPTIONS FROM SUCH REGISTRATION AND QUALIFICATION AND/OR
      SUCH OTHER EVIDENCE AS MAY BE SATISFACTORY THERETO THAT ANY SUCH TRANSFER WILL
      NOT VIOLATE THE SECURITIES LAWS.

     

    Buyer
      understands that the Shares are being sold to him pursuant to the exemption
      from
      registration contained in Section 4(1) of the Securities Act and that the Seller
      is relying upon the representations made herein as one of the bases for claiming
      the Section 4(1) exemption. 

     

    3.4 Liabilities.
      Following the Closing, Seller will have no liability for any debts, liabilities
      or obligations of Leaseco or its business or activities, and there are no
      outstanding guaranties, performance or payment bonds, letters of credit or
      other
      contingent contractual obligations that have been undertaken by Seller directly
      or indirectly in relation to Leaseco or its business and that may survive the
      Closing. 

     

    3.5 Title
      to Purchase Price Shares.
      Buyer
      is the sole record and beneficial owner of the Purchase Price Shares. At
      Closing, Buyer will have good and marketable title to the Purchase Price Shares,
      which Purchase Price Shares are, and at the Closing will be, free and clear
      of
      all options, warrants, pledges, claims, liens, and encumbrances and any
      restrictions or limitations prohibiting or restricting transfer to Seller,
      except for restrictions on transfer as contemplated by applicable securities
      laws. 

     

    IV. SELLER’S
      AND LEASECO’S REPRESENTATIONS AND WARRANTIES.
      Seller
      and Leaseco, jointly and severally, represent and warrant to Buyer
      that:

     

    4.1 Organization
      and Good Standing.
      Seller
      is a corporation duly incorporated, validly existing, and in good standing
      under
      the laws of the State of Nevada. Leaseco is a corporation duly incorporated,
      validly existing and in good standing under the laws of the State of
      Delaware.

     

    4.2 Authority
      and Enforceability.
      The
      execution and delivery of this Agreement and the documents to be executed and
      delivered at the Closing pursuant to the transactions contemplated hereby,
      and
      performance in accordance with the terms hereof and thereof, have been duly
      authorized by Seller and all such documents constitute the valid and binding
      agreements of Seller enforceable in accordance with their terms.

     

    4.3 Title
      to Shares.
      Seller
      is the sole record and beneficial owner of the Shares. At Closing, Seller will
      have good and marketable title to the Shares, which Shares are, and at the
      Closing will be, free and clear of all options, warrants, pledges, claims,
      liens
      and encumbrances, and any restrictions or limitations prohibiting or restricting
      transfer to Buyer, except for restrictions on transfer as contemplated by
Section
      3.3
      above.
      The Shares constitute all of the issued and outstanding shares of capital stock
      of Leaseco.

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    4.4 WARN
      Act.
      Leaseco
      does not have a sufficient number of employees to make it subject to the Worker
      Adjustment and Retraining Notification Act (“WARN Act”).

     

    4.5 Representations
      in Merger Agreement.
      Leaseco
      represents and warrants that all of the representations and warranties by
      Seller, insofar as they relate to Leaseco, contained in the Merger Agreement
      are
      true and correct.

     

    V. OBLIGATIONS
      OF BUYER PENDING CLOSING.
      Buyer
      covenants and agrees that between the date hereof and the Closing:

     

    5.1 Not
      Impair Performance.
      Buyer
      shall not take any intentional action that would cause the conditions upon
      the
      obligations of the parties hereto to effect the transactions contemplated hereby
      not to be fulfilled, including, without limitation, taking or causing to be
      taken any action that would cause the representations and warranties made by
      any
      party herein not to be true, correct and accurate as of the Closing, or in
      any
      way impairing the ability of Seller to satisfy its obligations as provided
      in
Article
      VI.

     

    5.2 Assist
      Performance.
      Buyer
      shall exercise its reasonable best efforts to cause to be fulfilled those
      conditions precedent to Seller’s obligations to consummate the transactions
      contemplated hereby which are dependent upon actions of Buyer and to make and/or
      obtain any necessary filings and consents in order to consummate the sale
      transaction contemplated by this Agreement.

     

    VI. OBLIGATIONS
      OF SELLER PENDING CLOSING.
      Seller
      covenants and agrees that between the date hereof and the Closing:

     

    6.1 
      Business as Usual.
      Leaseco
      shall operate and Seller shall cause Leaseco to operate in accordance with
      past
      practices and shall use best efforts to preserve its goodwill and the goodwill
      of its employees, customers and others having business dealings with Leaseco.
      Without limiting the generality of the foregoing, from the date of this
      Agreement until the Closing Date, Leaseco shall (a) make all normal and
      customary repairs to its equipment, assets and facilities, (b) keep in
      force all insurance, (c) preserve in full force and effect all material
      franchises, licenses, contracts and real property interests and comply in all
      material respects with all laws and regulations, (d) collect all accounts
      receivable and pay all trade creditors in the ordinary course of business at
      intervals historically experienced, and (e) preserve and maintain Leaseco’s
      assets in their current operating condition and repair, ordinary wear and tear
      excepted. Leaseco shall not (i) amend, terminate or surrender any material
      franchise, license, contract or real property interest, or (ii) sell or
      dispose of any of its assets except in the ordinary course of business. Neither
      Leaseco nor Buyer shall take or omit to take any action that results in Seller
      incurring any liability or obligation prior to or in connection with the
      Closing.

     

    6.2 Not
      Impair Performance.
      Seller
      shall not take any intentional action that would cause the conditions upon
      the
      obligations of the parties hereto to effect the transactions contemplated hereby
      not to be fulfilled, including, without limitation, taking or causing to be
      taken any action which would cause the representations and warranties made
      by
      any party herein

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    not
      to be
      materially true, correct and accurate as of the Closing, or in any way impairing
      the ability of Buyer to satisfy his obligations as provided in Article
      V.

     

    6.3 Assist
      Performance.
      Seller
      shall exercise its reasonable best efforts to cause to be fulfilled those
      conditions precedent to Buyer’s obligations to consum-mate the transactions
      contemplated hereby which are dependent upon the actions of Seller and to work
      with Buyer to make and/or obtain any necessary filings and consents. Seller
      shall cause Leaseco to comply with its obligations under this
      Agreement.

     

    VII. SELLER’S
      AND LEASECO’S CONDITIONS PRECEDENT TO CLOSING.
      The
      obligations of Seller and Leaseco to close the transactions contemplated by
      this
      Agreement are subject to the satisfaction at or prior to the Closing of each
      of
      the following conditions precedent (any or all of which may be waived by Seller
      and EENA in writing):

     

    7.1 Representations
      and Warranties; Performance.
      All
      representations and warranties of Buyer contained in this Agreement shall have
      been true and correct, in all material respects, when made and shall be true
      and
      correct, in all material respects, at and as of the Closing, with the same
      effect as though such representations and warranties were made at and as of
      the
      Closing. Buyer shall have performed and complied with all covenants and
      agreements and satisfied all conditions, in all material respects, required
      by
      this Agreement to be performed or complied with or satisfied by Buyer at or
      prior to the Closing.

     

    7.2 Additional
      Documents.
      Buyer
      shall deliver or cause to be delivered such additional documents as may be
      necessary in connection with the consummation of the transactions contemplated
      by this Agreement and the performance of their obligations
      hereunder.

     

    7.3 Release
      by Leaseco.
      At the
      Closing, Leaseco shall execute and deliver to Seller and EENA a general release
      which in substance and effect releases Seller and EENA from any and all
      liabilities and obligations that Seller and EENA may owe to Leaseco in any
      capacity and from any and all claims that Leaseco may have against Seller,
      EENA,
      or their respective managers, members, officers, directors, stockholders,
      employees and agents (other than those arising pursuant to this Agreement or
      any
      document delivered in connection with this Agreement).

     

    VIII. BUYER’S
      CONDITIONS PRECEDENT TO CLOSING.
      The
      obligation of Buyer to close the transactions contemplated by this Agreement
      is
      subject to the satisfaction at or prior to the Closing of each of the following
      conditions precedent (any and all of which may be waived by Buyer in
      writing):

     

    8.1 Representations
      and Warranties; Performance.
      All
      representations and warranties of Seller and Leaseco contained in this Agreement
      shall have been true and correct, in all material respects, when made and shall
      be true and correct, in all material respects, at and as of the Closing with
      the
      same effect as though such representations and warranties were made at and
      as of
      the Closing. Seller and Leaseco shall have performed and complied with all
      covenants and agreements and satisfied all conditions, in all material respects,
      required by this Agreement to be performed or complied with or satisfied by
      them
      at or prior to the Closing.

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    IX. OTHER
      AGREEMENTS.

     

    9.1 Expenses.
      Each
      party hereto shall bear its expenses separately incurred in connection with
      this
      Agreement and with the performance of its obligations hereunder.

     

    9.2 Confidentiality.
      The
      parties hereto shall not make any public announcements concerning this
      transaction other than in accordance with mutual agreement reached prior to
      any
      such announcement(s) and other than as may be required by applicable law or
      judicial process. If for any reason the transactions contemplated hereby are
      not
      consummated, then Buyer shall return any information received by Buyer from
      Seller or Leaseco, and Buyer shall cause all confidential information obtained
      by Buyer concerning Leaseco and its business to be treated as such.

     

    9.3 Brokers’
      Fees.
      No
      party to this Agreement has employed the services of a broker and each agrees
      to
      indemnify the other against all claims of any third parties for fees and
      commissions of any brokers claiming a fee or commission related to the
      transactions contemplated hereby.

     

    9.4 Access
      to Information Post-Closing; Cooperation.
      

     

    (a) Following
      the Closing, Buyer and Leaseco shall afford to Seller and its authorized
      accountants, counsel, and other designated representatives reasonable access
      (and including using reasonable efforts to give access to persons or firms
      possessing information) and duplicating rights during normal business hours
      to
      allow records, books, contracts, instruments, computer data and other data
      and
      information (collectively, “Information”) within the possession or control of
      Buyer or Leaseco insofar as such access is reasonably required by Seller.
      Information may be requested under this Section
      9.4(a)
      for,
      without limitation, audit, accounting, claims, litigation and tax purposes,
      as
      well as for purposes of fulfilling disclosure and reporting obligations and
      performing this Agreement and the transactions contemplated hereby. No files,
      books or records of Leaseco existing at the Closing Date shall be destroyed
      by
      Buyer or Leaseco after Closing but prior to the expiration of any period during
      which such files, books or records are required to be maintained and preserved
      by applicable law without giving the Seller at least 30 days’ prior written
      notice, during which time Seller shall have the right to examine and to remove
      any such files, books and records prior to their destruction.

     

    (b) Following
      the Closing, Seller shall afford to Leaseco and its authorized accountants,
      counsel and other designated representatives reasonable access (including using
      reasonable efforts to give access to persons or firms possessing information)
      duplicating rights during normal business hours to Information within Seller’s
      possession or control relating to the business of Leaseco. Information may
      be
      requested under this Section
      9.4(b)
      for,
      without limitation, audit, accounting, claims, litigation and tax purposes
      as
      well as for purposes of fulfilling disclosure and reporting obligations and
      for
      performing this Agreement and the transactions contemplated hereby. No files,
      books or records of Leaseco existing at the Closing Date shall be destroyed
      by
      Seller after Closing but prior to the expiration of any period during which
      such
      files, books or records are

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    required
      to be maintained and preserved by applicable law without giving the Buyer at
      least 30 days prior written notice, during which time Buyer shall have the
      right
      to examine and to remove any such files, books and records prior to their
      destruction.

     

    (c) At
      all
      times following the Closing, Seller, Buyer and Leaseco shall use reasonable
      efforts to make available to the other party on written request, the current
      and
      former officers, directors, employees and agents of Seller or Leaseco for any
      of
      the purposes set forth in Section
      9.4(a) or (b)
      above or
      as witnesses to the extent that such persons may reasonably be required in
      connection with any legal, administrative or other proceedings in which Seller
      or Leaseco may from time to be involved.

     

    (d) The
      party
      to whom any Information or witnesses are provided under this Section
      9.4
      shall
      reimburse the provider thereof for all out-of-pocket expenses actually and
      reasonably incurred in providing such Information or witnesses.

     

    (e) Seller,
      Buyer, Leaseco and their respective employees and agents shall each hold in
      strict confidence all Information concerning the other party in their possession
      or furnished by the other or the other’s representative pursuant to this
      Agreement with the same degree of care as such party utilizes as to such party’s
      own confidential information (except to the extent that such Information is
      (i) in the public domain through no fault of such party or (ii) later
      lawfully acquired from any other source by such party), and each party shall
      not
      release or disclose such Information to any other person, except such party’s
      auditors, attorneys, financial advisors, bankers, other consultants and advisors
      or persons with whom such party has a valid obligation to disclose such
      Information, unless compelled to disclose such Information by judicial or
      administrative process or, as advised by its counsel, by other requirements
      of
      law.

     

    (f) Seller,
      Buyer and Leaseco shall each use their best efforts to forward promptly to
      the
      other party all notices, claims, correspondence and other materials which are
      received and determined to pertain to the other party.

     

    9.5 Guarantees,
      Surety Bonds and Letter of Credit Obligations.
      In the
      event that Seller is obligated for any debts, obligations or liabilities of
      Leaseco by virtue of any outstanding guarantee, performance or surety bond
      or
      letter of credit provided or arranged by Seller on or prior to the Closing
      Date,
      Buyer and Leaseco shall use best efforts to cause to be issued replacements
      of
      such bonds, letters of credit and guarantees and to obtain any amendments,
      novations, releases and approvals necessary to release and discharge fully
      Seller from any liability thereunder following the Closing. Buyer and Leaseco,
      jointly and severally, shall be responsible for, and shall indemnify, hold
      harmless and defend Seller from and against, any costs or losses incurred by
      Seller arising from such bonds, letters of credits and guarantees and any
      liabilities arising therefrom and shall reimburse Seller for any payments that
      Seller may be required to pay pursuant to enforcement of its obligations
      relating to such bonds, letters of credit and guarantees.

     

    9.6 Filings
      and Consents.
      Buyer,
      at its risk, shall determine what, if any, filings and consents must be made
      and/or obtained prior to Closing to consummate the purchase and sale
      of

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    the
      Shares. Buyer shall indemnify the Seller Indemnified Parties (as defined in
      Section
      11.1
      below)
      against any Losses (as defined in Section
      11.1
      below)
      incurred by any Seller Indemnified Parties by virtue of the failure to make
      and/or obtain any such filings or consents. Recognizing that the failure to
      make
      and/or obtain any filings or consents may cause Seller to incur Losses or
      otherwise adversely affect Seller, Buyer and Leaseco confirm that the provisions
      of this Section
      9.6
      will not
      limit Seller’s right to treat such failure as the failure of a condition
      precedent to Seller’s obligation to close pursuant to Article
      VII
      above.

     

    9.7 Insurance.
      Buyer
      acknowledges that on the Closing Date, effective as of the Closing, all
      insurance coverage and bonds provided by Seller for Leaseco, and all
      certificates of insurance evidencing that Leaseco maintains any required
      insurance by virtue of insurance provided by Seller, will terminate with respect
      to any insured damages resulting from matters occurring subsequent to Closing.
      

     

    9.8 Agreements
      Regarding Taxes.
      

     

    (a)
      Tax
      Sharing Agreements.
      Any tax
      sharing agreement between Seller and Leaseco is terminated as of the Closing
      Date and will have no further effect for any taxable year (whether the current
      year, a future year, or a past year).

     

    (b)
      Returns
      for Periods Through the Closing Date.
      Seller
      will include the income and loss of Leaseco (including any deferred income
      triggered into income by Reg. §1.1502-13 and any excess loss accounts taken into
      income under Reg. §1.1502-19) on Seller’s consolidated federal income tax
      returns for all periods through the Closing Date and pay any federal income
      taxes attributable to such income. Seller and Leaseco agree to allocate income,
      gain, loss, deductions and credits between the period up to Closing (the
“Pre-Closing Period”) and the period after Closing (the “Post-Closing Period”)
      based on a closing of the books of Leaseco and both Seller and Leaseco agree
      not
      to make an election under Reg. §1.1502-76(b)(2)(ii) to ratably allocate the
      year’s items of income, gain, loss, deduction and credit. Seller, Leaseco and
      Buyer agree to report all transactions not in the ordinary course of business
      occurring on the Closing Date after Buyer’s purchase of the Shares on Leaseco’s
      tax returns to the extent permitted by Reg. §1.1502-76(b)(1)(ii)(B). Buyer
      agrees to indemnify Seller for any additional tax owed by Seller (including
      tax
      owned by Seller due to this indemnification payment) resulting from any
      transaction engaged in by Leaseco during the Pre-Closing Period or on the
      Closing Date after Buyer’s purchase of the Shares. Leaseco will furnish tax
      information to Seller for inclusion in Seller’s consolidated federal income tax
      return for the period which includes the Closing Date in accordance with
      Leaseco’s past custom and practice.

     

    (c)
      Audits.
      Seller
      will allow Leaseco and its counsel to participate at Leaseco’s expense in any
      audits of Seller’s consolidated federal income tax returns to the extent that
      such audit raises issues that relate to and increase the tax liability of
      Leaseco. Seller shall have the absolute right, in its sole discretion, to engage
      professionals and direct the representation of Seller in connection with any
      such audit and the resolution thereof, without receiving the consent of Buyer
      or
      Leaseco or any other party acting on behalf of Buyer or Leaseco, provided that
      Seller will not settle any such audit in a manner which

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    would
      materially adversely affect Leaseco after the Closing Date unless such
      settlement would be reasonable in the case of a person that owned Leaseco both
      before and after the Closing Date. In the event that after Closing any tax
      authority informs the Buyer or Leaseco of any notice of proposed audit, claim,
      assessment, or other dispute concerning an amount of taxes which pertain to
      the
      Seller, or to Leaseco during the period prior to Closing, Buyer or Leaseco
      must
      promptly notify the Seller of the same within 15 calendar days of the date
      of
      the notice from the tax authority. In the event Buyer or Leaseco does not notify
      the Seller within such 15 day period, Buyer and Leaseco, jointly and severally,
      will indemnify the Seller for any incremental interest, penalty or other
      assessments resulting from the delay in giving notice. To the extent of any
      conflict or inconsistency, the provisions of this Section 9.8 shall control
      over
      the provisions of Section 11.2 below.

     

    (d)
      Cooperation
      on Tax Matters.
      Buyer,
      Seller and Leaseco shall cooperate fully, as and to the extent reasonably
      requested by the other party, in connection with the filing of tax returns
      pursuant to this Section and any audit, litigation or other proceeding with
      respect to taxes. Such cooperation shall include the retention and (upon the
      other party’s request) the provision of records and information which are
      reasonably relevant to any such audit, litigation or other proceeding and making
      employees available on a mutually convenient basis to provide additional
      information and explanation of any material provided hereunder. Leaseco shall
      (i) retain all books and records with respect to tax matters pertinent to
      Leaseco relating to any taxable period beginning before the Closing Date until
      the expiration of the statute of limitations (and, to the extent notified by
      Seller, any extensions thereof) of the respective taxable periods, and to abide
      by all record retention agreements entered into with any taxing authority,
      and
      (ii) give Seller reasonable written notice prior to transferring,
      destroying or discarding any such books and records and, if the Seller so
      requests, Buyer agrees to cause Leaseco to allow Seller to take possession
      of
      such books and records.

     

    9.9 ERISA.
      Effective as of the Closing Date, Leaseco shall terminate its participation
      in,
      and withdraw from, all employee benefit plans sponsored by Seller, and Seller
      and Buyer shall cooperate fully in such termination and withdrawal. Without
      limitation, Leaseco shall be solely responsible for (i) all liabilities
      under those employee benefit plans notwithstanding any status as an employee
      benefit plan sponsored by Seller, and (ii) all liabilities for the payment
      of vacation pay, severance benefits, and similar obligations, including, without
      limitation, amounts which are accrued but unpaid as of the Closing Date with
      respect thereto. Buyer and Leaseco acknowledge that Leaseco is solely
      responsible for providing continuation health coverage, as required under the
      Consolidated Omnibus Reconciliation Act of 1985, as amended (“COBRA”), to each
      person, if any, participating in an employee benefit plan subject to COBRA
      with
      respect to such employee benefit plan as of the Closing Date, including, without
      limitation, any person whose employment with Leaseco is terminated after the
      Closing Date.

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

    X. TERMINATION.
      This
      Agreement may be terminated at, or at any time prior to, the Closing by mutual
      written consent of Seller, Buyer and EENA.

     

    If
      this
      Agreement is terminated as provided herein, it shall become wholly void and
      of
      no further force and effect and there shall be no further liability or
      obligation on the part of any party except to pay such expenses as are required
      of such party.

     

    XI. INDEMNIFICATION.

     

    11.1 Indemnification
      by Buyer.
      Buyer
      covenants and agrees to indemnify, defend, protect and hold harmless Seller,
      and
      its officers, directors, employees, stockholders, agents, representatives and
      affiliates (collectively, together with Seller, the “Seller Indemnified
      Parties”) at all times from and after the date of this Agreement from and
      against all losses, liabilities, damages, claims, actions, suits, proceedings,
      demands, assessments, adjustments, costs and expenses (including specifically,
      but without limitation, reasonable attorneys’ fees and expenses of
      investigation), whether or not involving a third party claim and regardless
      of
      any negligence of any Seller Indemnified Party (collectively, “Losses”),
      incurred by any Seller Indemnified Party as a result of or arising from
      (i) any breach of the representations and warranties of Buyer set forth
      herein or in certificates delivered in connection herewith, (ii) any breach
      or nonfulfillment of any covenant or agreement (including any other agreement
      of
      Buyer to indemnify Seller set forth in this Agreement) on the part of Buyer
      under this Agreement, (iii) any debt, liability or obligation of Leaseco,
      (iv) the conduct and operations of the business of Leaseco whether before
      or after Closing, (v) claims asserted against Leaseco whether before or
      after Closing, or (vi) any federal or state income tax payable by Seller
      and attributable to the transaction contemplated by this Agreement.

     

    11.2 Third
      Party Claims.

     

    (a) Defense.
      If any
      claim or liability (a “Third-Party Claim”) should be asserted against any of the
      Seller Indemnified Parties (the “Indemnitee”) by a third party after the Closing
      for which Buyer has an indemnification obligation under the terms of
Section
      11.1,
      then
      the Indemnitee shall notify Buyer and Leaseco (the “Indemnitor”) within 20 days
      after the Third-Party Claim is asserted by a third party (said notification
      being referred to as a “Claim Notice”) and give the Indemnitor a reasonable
      opportunity to take part in any examination of the books and records of the
      Indemnitee relating to such Third-Party Claim and to assume the defense of
      such
      Third-Party Claim and in connection therewith and to conduct any proceedings
      or
      negotiations relating thereto and necessary or appropriate to defend the
      Indemnitee and/or settle the Claim. The expenses (including reasonable
      attorneys’ fees) of all negotiations, proceedings, contests, lawsuits or
      settlements with respect to any Third-Party Claim shall be borne by the
      Indemnitor. If the Indemnitor agrees to assume the defense of any Third-Party
      Claim in writing within 20 days after the Claim Notice of such Third-Party
      Claim
      has been delivered, through counsel reasonably satisfactory to Indemnitee,
      then
      the Indemnitor shall be entitled to control the conduct of such defense, and
      any
      decision to settle such Third-Party Claim, and shall be responsible for any
      expenses of the Indemnitee in connection with the defense of such Third-Party
      Claim so long as the Indemnitor continues such defense until 

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

     

    the
      final
      resolution of such Third-Party Claim. The Indemnitor shall be responsible for
      paying all settlements made or judgments entered with respect to any Third-Party
      Claim the defense of which has been assumed by the Indemnitor. Except as
      provided on subsection (b) below, both the Indemnitor and the Indemnitee must
      approve any settlement of a Third Party Claim. A failure by the Indemnitee
      to
      timely give the Claim Notice shall not excuse Indemnitor from any
      indemnification liability except only to the extent that the Indemnitor is
      materially and adversely prejudiced by such failure.

     

    (b) Failure
      to Defend.
      If the
      Indemnitor shall not agree to assume the defense of any Third-Party Claim in
      writing within 20 days after the Claim Notice of such Third-Party Claim has
      been
      delivered, or shall fail to continue such defense until the final resolution
      of
      such Third-Party Claim, then the Indemnitee may defend against such Third-Party
      Claim in such manner as it may deem appropriate and the Indemnitee may settle
      such Third-Party Claim on such terms as it may deem appropriate. The Indemnitor
      shall promptly reimburse the Indemnitee for the amount of all settlement
      payments and expenses, legal and otherwise, incurred by the Indemnitee in
      connection with the defense or settlement of such Third-Party Claim. If no
      settlement of such Third-Party Claim is made, then the Indemnitor shall satisfy
      any judgment rendered with respect to such Third-Party Claim before the
      Indemnitee is required to do so, and pay all expenses, legal or otherwise,
      incurred by the Indemnitee in the defense against such Third-Party
      Claim.

     

    11.3 Non-Third-Party
      Claims.
      Upon
      discovery of any claim for which Buyer has an indemnification obligation under
      the terms of Section
      11.3
      which
      does not involve a claim by a third party against the Indemnitee, the Indemnitee
      shall give prompt notice to Buyer of such claim and, in any case, shall give
      Buyer such notice within 30 days of such discovery. A failure by Indemnitee
      to
      timely give the foregoing notice to Buyer shall not excuse Buyer from any
      indemnification liability except to the extent that Buyer is materially and
      adversely prejudiced by such failure.

     

    11.4 Survival.
      Except
      as otherwise provided in this Section
      11.4,
      all
      representations and warranties made by Buyer, Leaseco and Seller in connection
      with this Agreement shall survive the Closing. Anything in this Agreement to
      the
      contrary notwithstanding, the liability of all Indemnitors under this
Article
      XI
      shall
      terminate on the third (3rd)
      anniversary of the Closing Date, except with respect to (a) liability for
      any item as to which, prior to the third (3rd)
      anniversary of the Closing Date, any Indemnitee shall have asserted a Claim
      in
      writing, which Claim shall identify its basis with reasonable specificity,
      in
      which case the liability for such Claim shall continue until it shall have
      been
      finally settled, decided or adjudicated, (b) liability of any party for
      Losses for which such party has an indemnification obligation, incurred as
      a
      result of such party’s breach of any covenant or agreement to be performed by
      such party after the Closing, (c) liability of Buyer for Losses incurred by
      a Seller Indemnified Party due to breaches of their representations and
      warranties in Article
      III
      of this
      Agreement, and (d) liability of Buyer for Losses arising out of Third-Party
      Claims for which Buyer has an indemnification obligation, which liability shall
      survive until the statute of limitation applicable to any third party’s right to
      assert a Third-Party Claim bars assertion of such claim.

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

     

    XII. MISCELLANEOUS.

     

    12.1 Notices.
      All
      notices and communications required or permitted hereunder shall be in writing
      and deemed given when received by means of the United States mail, addressed
      to
      the party to be notified, postage prepaid and registered or certified with
      return receipt requested, or personal delivery, or overnight courier, as
      follows:

     

    (a) If
      to
      Seller, addressed to:

     

    Ethanex
      Energy, Inc.

    14500
      Parallel Road, Suite A

    Basehor,
      KS 66007

    Attn:
      Bryan J. Sherbacow, President and Chief Executive Officer

    Facsimile:
      (913) 724-4107

    

    With
      a
      copy to (which shall not constitute notice hereunder):

     

    McGuireWoods
      LLP

    1345
      Avenue of the Americas

    New
      York,
      NY 10105

    Attn:
      Louis W. Zehil, Esq.

    Facsimile:
      (212) 548-2175

    

    (b) If
      to
      Buyer or Leaseco, addressed to:

     

    Amanda
      Lamothe

    29
      Otter
      Avenue, Box 634

    Manitouwadge,
      Ontario Canada P0T 2C0

    

    With
      a
      copy to (which shall not constitute notice hereunder):

     

    Gottbetter
      & Partners, LLP

    488
      Madison Avenue, 12th
      Floor

    New
      York,
      New York 10022

    Attention:
      Adam S. Gottbetter, Esq.

    Facsimile:
      (212) 400-6901

    

    (c) If
      to
      EENA, addressed to:

     

    Ethanex
      Energy North America, Inc.

    14500
      Parallel Road, Suite A

    Basehor,
      KS 66007

    Attn:
      Bryan J. Sherbacow, President and Chief Executive Officer

    Facsimile:
      (913) 724-4107

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    

    With
      a
      copy to (which shall not constitute notice hereunder):

     

    McGuireWoods
      LLP

    1345
      Avenue of the Americas

    New
      York,
      NY 10105

    Attn:
      Louis W. Zehil, Esq.

    Facsimile:
      (212) 548-2175

    

    or
      to
      such other address as any party hereto shall specify pursuant to this
Section
      12.1
      from
      time to time.

     

    12.2 Exercise
      of Rights and Remedies.
      Except
      as otherwise provided herein, no delay of or omission in the exercise of any
      right, power or remedy accruing to any party as a result of any breach or
      default by any other party under this Agreement shall impair any such right,
      power or remedy, nor shall it be construed as a waiver of or acquiescence in
      any
      such breach or default, or of any similar breach or default occurring later;
      nor
      shall any waiver of any single breach or default be deemed a waiver of any
      other
      breach or default occurring before or after that waiver.

     

    12.3 Time.
      Time is
      of the essence with respect to this Agreement.

     

    12.4 Reformation
      and Severability.
      In case
      any provision of this Agreement shall be invalid, illegal or unenforceable,
      it
      shall, to the extent possible, be modified in such manner as to be valid, legal
      and enforceable but so as to most nearly retain the intent of the parties,
      and
      if such modification is not possible, such provision shall be severed from
      this
      Agreement, and in either case the validity, legality and enforceability of
      the
      remaining provisions of this Agreement shall not in any way be affected or
      impaired thereby.

     

    12.5 Further
      Acts.
      Seller,
      Buyer and Leaseco shall execute any and all documents and perform such other
      acts which may be reasonably necessary to effectuate the purposes of this
      Agreement.

     

    12.6 Entire
      Agreement; Amendments.
      This
      Agreement contains the entire understanding of the parties relating to the
      subject matter contained herein. This Agreement cannot be amended or changed
      except through a written instrument signed by all of the parties hereto,
      including EENA. No provisions of this Agreement or any rights hereunder may
      be
      waived by any party without the prior written consent of EENA.

     

    12.7 Assignment.
      No
      party may assign his or its rights or obligations hereunder, in whole or in
      part, without the prior written consent of the other parties.

     

    12.8 Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York, without giving effect to principles of conflicts or choice
      of
      laws thereof.

     

    12.9 Counterparts.
      This
      Agreement may be executed in one or more counterparts, with the same effect
      as
      if all parties had signed the same document. Each such counterpart shall be
      an
      original, but all such counterparts taken together shall constitute a single
      agreement. In the event 

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

     

    that
      any
      signature is delivered by facsimile transmission, such signature shall create
      a
      valid and binding obligation of the party executing (or on whose behalf such
      signature is executed) the same with the same force and effect as if such
      facsimile signature page was an original thereof.

     

    12.10 Section
      Headings and Gender.
      The
      Section headings used herein are inserted for reference purposes only and shall
      not in any way affect the meaning or interpretation of this Agreement. All
      personal pronouns used in this Agreement shall include the other genders,
      whether used in the masculine, feminine or neuter, and the singular shall
      include the plural, and vice
      versa,
      whenever and as often as may be appropriate.

     

    12.11 Specific
      Performance; Remedies.
      Each of
      Seller, Buyer and Leaseco acknowledges and agrees that EENA would be damaged
      irreparably if any provision of this Agreement is not performed in accordance
      with its specific terms or is otherwise breached. Accordingly, each of Seller,
      Buyer and Leaseco agrees that EENA will be entitled to seek an injunction or
      injunctions to prevent breaches of the provisions of this Agreement and to
      enforce specifically this Agreement and its terms and provisions in any action
      instituted in any court of the United States or any state thereof having
      jurisdiction over the parties and the matter, subject to Section
      12.8,
      in
      addition to any other remedy to which they may be entitled, at law or in equity.
      Except as expressly provided herein, the rights, obligations and remedies
      created by this Agreement are cumulative and in addition to any other rights,
      obligations or remedies otherwise available at law or in equity, and nothing
      herein will be considered an election of remedies.
      

     

    12.12 Submission
      to Jurisdiction; Process Agent; No Jury Trial.

     

    (a) Each
      party to the Agreement hereby submits to the jurisdiction of any state or
      federal court sitting in the State of New York, in any action arising out of
      or
      relating to this Agreement and agrees that all claims in respect of the action
      may be heard and determined in any such court. Each party to the Agreement
      also
      agrees not to bring any action arising out of or relating to this Agreement
      in
      any other court. Each party to the Agreement agrees that a final judgment in
      any
      action so brought will be conclusive and may be enforced by action on the
      judgment or in any other manner provided at law or in equity. Each party to
      the
      Agreement waives any defense of inconvenient forum to the maintenance of any
      action so brought and waives any bond, surety, or other security that might
      be
      required of any other Party with respect thereto.

     

    (b) EACH
      PARTY TO THE AGREEMENT HEREBY AGREES TO WAIVE HIS OR HER RIGHTS TO JURY TRIAL
      OF
      ANY DISPUTE BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OTHER AGREEMENTS
      RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT OR ANY DEALINGS AMONG THEM
      RELATING TO THE TRANSACTIONS CONTEMPLATED HEREBY. The scope of this waiver
      is
      intended to be all encompassing of any and all actions that may be filed in
      any
      court and that relate to the subject matter of the transactions, including,
      contract claims, tort claims, breach of duty claims, and all other common law
      and statutory claims. Each party to the Agreement hereby acknowledges that
      this
      waiver is a material inducement to enter into a business relationship and that
      they will continue to rely on the waiver in their related future

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

     

    dealings.
      Each party to the Agreement further represents and warrants that it has reviewed
      this waiver with its legal counsel, and that each knowingly and voluntarily
      waives its jury trial rights following consultation with legal counsel.
      NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, THIS WAIVER IS IRREVOCABLE,
      MEANING THAT IT MAY NOT BE MODIFIED ORALLY OR IN WRITING, AND THE WAIVER WILL
      APPLY TO ANY AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS
      AGREEMENT OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING HERETO. In the event
      of commencement of any action, this Agreement may be filed as a written consent
      to trial by a court.

     

    12.13 Construction.
      The
      parties hereto have participated jointly in the negotiation and drafting of
      this
      Agreement. If an ambiguity or question of intent or interpretation arises,
      this
      Agreement will be construed as if drafted jointly by the parties hereto and
      no
      presumption or burden of proof will arise favoring or disfavoring any party
      because of the authorship of any provision of this Agreement. Any reference
      to
      any federal, state, local, or foreign law will be deemed also to refer to law
      as
      amended and all rules and regulations promulgated thereunder, unless the context
      requires otherwise. The words “include,” “includes,” and “including” will be
      deemed to be followed by “without limitation.” The words “this Agreement,”
“herein,” “hereof,” “hereby,” “hereunder,” and words of similar import refer to
      this Agreement as a whole and not to any particular subdivision unless expressly
      so limited. The parties hereto intend that each representation, warranty, and
      covenant contained herein will have independent significance. If any party
      hereto has breached any representation, warranty, or covenant contained herein
      in any respect, the fact that there exists another representation, warranty
      or
      covenant relating to the same subject matter (regardless of the relative levels
      of specificity) which that party has not breached will not detract from or
      mitigate the fact that such party is in breach of the first representation,
      warranty, or covenant.

     

    

    [Signature
      page follows this page.]

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF,
      the
      parties hereto have hereunto set their hands as of the day and year first above
      written.

     

    

    ETHANEX
      ENERGY, INC.

    

    

    By: 
      /s/
      Amanda Lamothe

    Name: Amanda
      Lamothe

    Title:  Chief
      Executive Officer

    

    

    NEW
      INVERNESS LEASCO, INC.

    

    

    By: 
      /s/
      Amanda Lamothe

    Name: Amanda
      Lamothe

    Title  Chief
      Executive Officer

    

    

    BUYERS

    

    

    /s/
      Amanda Lamothe

    Amanda
      Lamothe

     

     

    /s/
      Luke Willis

    Luke
      Willis

    

    

    ETHANEX
      ENERGY NORTH AMERICA, INC.

    

    

    By: 
      /s/
      Bryan J. Sherbacow

    Name: Bryan
      J.
      Sherbacow

    Title:  Chief
      Executive Officer

    
      
         

      

        -17-EXHIBIT
      10.3

    

    EMPLOYMENT
      AGREEMENT

    

    THIS
      EMPLOYMENT AGREEMENT (this “Agreement”)
      is
      made, entered into and effective as of August 3, 2006 (the “Effective
      Date”),
      between Ethanex Energy North America, Inc. (the “Company”),
      and
      Albert Knapp, an individual (the “Executive”).

    

    WHEREAS,
      the Company and the Executive wish to memorialize the terms and conditions
      of
      the Executive’s employment by the Company in the positions of Executive Vice
      President; 

    

    NOW,
      THEREFORE, in consideration of the covenants and promises contained herein,
      the
      Company and the Executive agree as follows:

    

    1. Employment
      Period.
      The
      Company offers to employ the Executive, and the Executive agrees to be employed
      by Company, in accordance with the terms and subject to the conditions of this
      Agreement, commencing on the Effective Date and terminating on the fourth
      anniversary of the Effective Date (the “Scheduled
      Termination Date”),
      unless terminated in accordance with the provisions of Section 12 below, in
      which case the provisions of Section 12 shall control; provided,
      however,
      that
      unless either party provides the other party with written notice of his or
      its
      intention not to renew this Agreement at least 90 days prior to the expiration
      of the initial term or any renewal term of this Agreement (as the case may
      be),
      this Agreement shall automatically renew for additional one-year periods
      commencing on the day after such expiration date. The Executive affirms that
      no
      obligation exists between the Executive and any other entity which would prevent
      or impede the Executive’s immediate and full performance of every obligation of
      this Agreement.

    

    2. Position
      and Duties.
      During
      the term of the Executive’s employment hereunder, the Executive shall continue
      to serve in, and assume duties and responsibilities consistent with, the
      positions of Executive Vice President, unless and until otherwise instructed
      by
      the Company. The Executive agrees to devote to the Company substantially all
      of
      his working time, skill, energy and best business efforts during the term of
      his
      employment with the Company, and the Executive shall not engage in business
      activities outside the scope of his employment with the Company if such
      activities would detract from or interfere with his ability to fulfill his
      responsibilities and duties under this Agreement or require substantial amounts
      of his time or of his services. 

    

    3. No
      Conflicts.
      The
      Executive covenants and agrees that for so long as he is employed by the
      Company, he shall inform the Company of each and every future business
      opportunity presented to the Executive that arises within the scope of the
      Business of the Company (as defined below) and would be feasible for the
      Company, and that he will not, directly or indirectly, exploit any such
      opportunity for his own account. 

    

    4. Hours
      of Work.
      The
      Executive’s normal days and hours of work shall coincide with the Company’s
      regular business hours. The nature of the Executive’s employment with
      the

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Company
      requires flexibility in the days and hours that the Executive must work, and
      may
      necessitate that the Executive work on other or additional days and hours.
      

    

    5. Location.
      The
      locus of the Executive’s employment with the Company shall be the Company’s
      office located in Basehor, KS and any other locus where the Company now or
      hereafter has a business facility. 

    

    6. Compensation.
      

    

    (a) Base
      Salary.
      During
      the term of this Agreement, the Company shall pay, and the Executive agrees
      to
      accept, in consideration for the Executive’s services hereunder, pro
      rata
      bi-weekly payments of the annual salary of $195,000, less all applicable taxes
      and other appropriate deductions. 

    

    (i) Upon
      successful completion of financing in such amount as is sufficient, in the
      opinion of the Company’s Board of Directors (the “Board”),
      to
      enable the Company to finance the acquisition or construction of the Company’s
      initial operating ethanol producing facility (the “Initial
      Ethanol Facility”),
      the
      Executive’s annual base salary shall be increased to $210,000. 

    

    (ii) The
      Executive’s base salary shall be increased to $270,000 at such time as the
      Initial Ethanol Facility becomes operational, either through the start of
      revenue producing activities of a newly constructed plant or through the
      acquisition of an existing operational plant.

    

    The
      Compensation Committee (the “Compensation
      Committee”)
      of the
      Board shall also review the Executive’s base salary annually and shall make a
      recommendation to the Board as to whether such base salary should be increased
      but not decreased, which decision shall be within the Board’s sole
      discretion.

    

    (b) Annual
      Bonus.
      During
      the term of this Agreement, the Executive shall be entitled to an annual bonus
      of up to 125% of his base salary, decreasing to a maximum of 100% of his base
      salary (considered at the end of the period for which the bonus is being
      calculated) at such time as the Initial Ethanol Facility becomes operational,
      the actual amount of which bonus shall be determined according to achievement
      of
      performance-related financial and operating targets established annually for
      the
      Company and the Executive by the Compensation Committee (or by the independent
      members of the Board if there exists no Compensation Committee). Such
      performance targets for each fiscal year shall be adopted by the Compensation
      Committee promptly after the end of the prior fiscal year, but in no event
      later
      than March 31st
      of the
      current fiscal year (except for fiscal year 2006, the performance targets for
      which are annexed to this Agreement as Exhibit A. Each annual bonus shall be
      paid by the Company to the Executive promptly after the first meeting of the
      Board following the completion of the annual audit, which meeting shall occur
      on
      or about April 15th of each year.

    

    7. Expenses.
      During
      the term of this Agreement, the Executive shall be entitled to payment or
      reimbursement of any reasonable expenses paid or incurred by him in connection
      with and related to the performance of his duties and responsibilities hereunder
      for the Company. 

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    All
      requests by the Executive for payment of
      reimbursement of such expenses shall be supported by appropriate invoices,
      vouchers, receipts or such other supporting documentation in such form and
      containing such information as the Company may from time to time require,
      evidencing that the Executive, in fact, incurred or paid said expenses.

    

    8. Vacation.
      During
      the term of this Agreement, the Executive shall be entitled to accrue, on a
      pro
      rata basis,
      20
      vacation days, per year. The Executive shall be entitled to carry over any
      accrued, unused vacation days from year to year without limitation.

    

    9. Lock-Up
      Agreement.
      Upon
      the closing of the Merger (as defined in Section 17(f) hereof), the Executive
      shall enter into a Lock-Up Agreement with the Company in the form attached
      hereto as Exhibit B.

    

    10. Stock
      Options.
      The
      Company hereby agrees that the Executive
      shall be granted a non-qualified stock option on the terms and conditions
      hereinafter stated:

    

    (a) Grant
      of Options.
      Upon
      the closing of the Merger and the concurrent assignment of this Agreement to
      the
      PubCo, as described in Section 17(f) hereof, the Company will grant
      the
      Executive an option to purchase an aggregate of 250,000 shares of the
      Company’s common voting stock (the “Option”)
      under
      the Company’s 2006 Stock Option Plan (the “Stock
      Option Plan”).
      Such
      grant shall be evidenced by an Option Agreement as contemplated by the Stock
      Option Plan. In subsequent years the Executive shall be eligible for such grants
      of Options and other permissible awards (collectively with Options, “Awards”)
      under the Stock Option Plan as the Compensation Committee or the Board shall
      determine.

    

    (b) Option
      Price; Term.
      The
      per
      share
      exercise price of the Option shall be $1.00, which represents the fair market
      value per share of Company common voting stock on the closing date of the
      Merger. The term of the Option shall be ten years from the date of
      grant.

    

    (c) Vesting
      and Exercise.
      One
      third (33.3%) of the Option shall be vested and exercisable on the first
      anniversary of the grant of the Option, an additional one third (33.3%) of
      the
      Option shall be vested and become exercisable on the second anniversary of
      the
      grant of the Option and the remaining one third (33.4%) of the Options shall
      be
      vested and become exercisable on third anniversary of the grant of the Option.
      

    

    (d) Termination
      of Service; Accelerated Vesting. 

     

    (i) If
      the
      Executive’s employment is terminated for Cause, as such term is defined below,
      all Awards, whether or not vested, shall immediately expire effective the date
      of termination of employment. 

    

    (ii) If
      the
      Executive’s employment is terminated voluntarily by the Executive without Good
      Reason, as such term is defined below, all unvested Awards shall immediately
      expire effective the date of termination of employment. Vested Awards, to the
      extent unexercised, shall expire one month after the termination of
      employment.

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    (iii) If
      the
      Executive’s employment terminates on account of death or Disability, as defined
      below, all unvested Awards shall immediately expire effective the date of
      termination of employment. Vested Awards, to the extent unexercised, shall
      expire one year after the termination of employment.

    

    (iv) If
      the
      Executive’s employment is terminated (A) in connection with a Change of Control,
      as defined below, (B) by the Company without Cause or (C) by the Executive
      for
      Good Reason, all unvested Awards shall immediately vest and become exercisable
      effective the date of termination of employment, and, to the extent unexercised,
      shall expire one year after any such event.

    

    (e) Payment.
      The
      full consideration for any shares purchased by the Executive upon exercise
      of
      the Option shall be paid in cash.

     

    11. Other
      Benefits.
      

    

    (a) During
      the term of this Agreement, the Executive shall be eligible to participate
      in
      incentive, savings, retirement (401(k)), and welfare benefit plans, including,
      without limitation, health, medical,
      dental,
      vision,
      life (including accidental death and dismemberment)
      and
      disability insurance plans (collectively, “Benefit
      Plans”),
      in
      substantially the same manner, including but not limited to responsibility
      for
      the cost thereof, and at
      substantially the same levels, as the Company makes
      such
      opportunities available to all of the Company’s managerial
      or salaried executive
      employees. 

    

    (b) The
      Executive’s spouse and dependent minor children will be covered under the
      Benefit Plans providing health, medical, dental, and vision benefits, in
      substantially the same manner, including but not limited to responsibility
      for
      the cost thereof, and at substantially the same levels, as the Company makes
      such opportunities available to the spouses and dependent minor children to
      all
      of the Company’s managerial or salaried executive employees. 

    

    (c) The
      Company shall purchase and maintain traditional directors and officers liability
      insurance coverage in the amount of at least $5,000,000 covering the Company’s
      officers and directors, including the Executive, as soon as practicable after
      the closing date of the Merger, but in no event later than 30 days following
      the
      Effective Date, provided such coverage is available on commercially reasonable
      terms.

    

    (d)
       Until
      such time as Executive becomes covered by Company medical coverage, the Company
      shall pay the cost of COBRA coverage provided by Executive’s prior employer, to
      the same extent as such coverage was paid for by such prior
      employer.

    

    12. Termination
      of Employment.

    

    (a) Death.
      In the
      event that during the term of this Agreement the Executive dies, this Agreement
      and the Executive’s employment with the Company shall automatically terminate
      and the Company shall have no further obligations or liability to the Executive
      or his heirs, administrators or executors with respect to compensation and
      benefits accruing thereafter,

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    except
      for the obligation to pay the Executor’s heirs, administrators or executors any
      earned but unpaid base salary, unpaid pro
      rata
      annual
      bonus and unused vacation days accrued through the date of death; provided,
      that
      nothing contained in this paragraph shall be deemed to excuse any breach by
      the
      Company of any provision of this Agreement. The Company shall deduct, from
      all
      payments made hereunder, all applicable taxes, including income tax, FICA and
      FUTA, and other appropriate deductions.

    

    (b) “Disability.”
      In
      the
      event that, during the term of this Agreement the Executive shall be prevented
      from performing his duties and responsibilities hereunder to the full extent
      required by the Company by reason of Disability (as defined below) this
      Agreement and the Executive’s employment with the Company shall automatically
      terminate and the Company shall have no further obligations or liability to
      the
      Executive or his heirs, administrators or executors with respect to compensation
      and benefits accruing thereafter, except for the obligation to pay the Executive
      or his heirs, administrators or executors any earned but unpaid base salary,
      unpaid pro
      rata
      annual
      bonus and unused vacation days accrued through the Executive’s last date of
      Employment with the Company; provided,
      that
      nothing contained in this paragraph shall be deemed to excuse any breach by
      the
      Company of any provision of this Agreement including any failure to maintain
      the
      long-term disability insurance coverage required pursuant to Section 10(b)(iv).
      The Company shall deduct, from all payments made hereunder, all applicable
      taxes, including income tax, FICA and FUTA, and other appropriate deductions
      through
      the last date of the Executive’s employment with the Company. For purposes of
      this Agreement, “Disability”
shall
      mean a physical or mental disability that prevents the performance by the
      Executive, with or without reasonable accommodation, of his duties and
      responsibilities hereunder for a period of not less than an aggregate of three
      months during any twelve consecutive months. 

    

    (c) “Cause.”
      

    

    (i) At
      any
      time during the term of this Agreement, the Company may terminate this Agreement
      and the Executive’s employment hereunder for “Cause.” For purposes of this
      Agreement, “Cause”
shall
      be defined as the occurrence of: (A)
      gross
      neglect, malfeasance or gross insubordination in performing the Executive’s
      duties under this Agreement; (B) the Executive’s conviction for a felony,
      excluding convictions associated with traffic violations; (C) an egregious
      act
      of dishonesty (including without limitation theft or embezzlement) or a
      malicious action by the Executive toward the Company’s customers or employees;
      (D) a willful and material violation of any provision of Sections 13 and 14
      hereof; (E) intentional reckless conduct that is materially detrimental to
      the
      business or reputation of the Company; or (F) material failure, other than
      by
      reason of Disability, to carry out reasonably assigned duties or instructions
      consistent with the titles of Executive Vice President (provided that material
      failure to carry out reasonably assigned duties shall be deemed to constitute
      Cause only after a finding by the Board of Directors, or a duly constituted
      committee thereof, of material failure on the part of the Executive and the
      failure to remedy such performance to the Board’s or the committee’s
      satisfaction within 30 days after delivery of written notice to the Executive
      of
      such finding).

    

    (ii) Upon
      termination of this Agreement for Cause, the Company shall have no further
      obligations or liability to the Executive or his heirs, administrators or
      executors with respect to compensation and benefits thereafter, except for
      the
      obligation to pay the Executive

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    any
      earned but unpaid base salary, unpaid pro
      rata
      annual
      bonus and unused vacation days accrued through the Executive’s last day of
      employment with the Company. The Company shall deduct, from all payments made
      hereunder, all applicable taxes, including income tax, FICA and FUTA, and other
      appropriate deductions.

    

    (d) Change
      of Control.
      For
      purposes of this Agreement, “Change
      of Control”
means
      the occurrence of, or the Company’s Board votes to approve: (A) any
      consolidation or merger of the Company pursuant to which the stockholders
      of the Company immediately before the transaction do not retain immediately
      after the transaction, in substantially the same proportions as their ownership
      of shares of the Company’s
      voting
      stock immediately before the transaction, direct or indirect beneficial
      ownership of more than 50% of the total combined voting power of the outstanding
      voting securities of the surviving business entity;
      (B) any
      sale, lease, exchange or other transfer (in one transaction or a series of
      related transactions) of all, or substantially all, of the assets of the Company
      other than any sale, lease, exchange or other transfer to any company where
      the
      Company owns, directly or indirectly, 100% of the outstanding voting securities
      of such company after any such transfer; (C)
      the
      direct or indirect sale or exchange in a single or series of related
      transactions by the stockholders of the Company of more than 50% of the voting
      stock of the Company.

    

    (e) “Good
      Reason.”

     

    (i) At
      any
      time during the term of this Agreement, subject to the conditions set forth
      in
      Section 12(e)(ii) below, the Executive may terminate this Agreement and the
      Executive’s employment with the Company for “Good Reason.” For purposes of this
      Agreement, “Good
      Reason”
shall
      mean the occurrence of any of the following events: (A) the
      assignment, without the Executive’s consent, to the Executive of duties that are
      significantly different from, and that result in a substantial diminution of,
      the duties that he assumed on the Effective Date; (B) the
      assignment, without the Executive’s consent, to the Executive of a title that is
      different from and subordinate to the title specified in Section 2 above,
      provided, however, that the retention of another executive as Executive Vice
      President shall, in and of itself, entitle the Executive to claim a termination
      for Good reason hereunder; (C) any termination of the Executive’s employment by
      the Company, other than a termination for Cause, within
      12
      months after a Change of Control;
      (D) the
      assignment, without the Executive’s consent, to the Executive of duties that are
      significantly different from, and that result in a substantial diminution of,
      the duties that he assumed on the Effective Date within 12 months after a Change
      of Control; or (E) material
      breach by the Company of this Agreement. 

    

    (ii) The
      Executive shall not be entitled to terminate his employment with the Company
      and
      this Agreement for Good Reason unless and until he shall have delivered written
      notice to the Company of his intention to terminate this Agreement and his
      employment with the Company for Good Reason, which notice specifies in
      reasonable detail the circumstances claimed to provide the basis for such
      termination for Good Reason, and the Company shall not have eliminated the
      circumstances constituting Good Reason within 30 days of its receipt from the
      Executive of such written notice. 

    

    (iii) In
      the
      event that the Executive terminates this Agreement and his employment with
      the
      Company for Good Reason, the Company shall pay or provide to the

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    Executive
      (or, following his death, to the Executive’s heirs, administrators or
      executors): (A)
      any
      earned but unpaid base salary, unpaid pro
      rata
      annual
      bonus and unused vacation days accrued through the Executive’s last day of
      employment with the Company; (B) the
      Executive’s full base salary through the Scheduled Termination Date (as the same
      may have been extended through any extensions of this Agreement); (C)
the
      value
      of vacation days that the Executive would have accrued through the Scheduled
      Termination Date; (D) continued
      coverage, at the Company’s expense, under all Benefits Plans in which the
      Executive was a participant immediately prior to his last date of employment
      with the Company, or, in the event that any such Benefit Plans do not permit
      coverage of the Executive following his last date of employment with the
      Company, under benefit plans that provide no less coverage than such Benefit
      Plans, through the Scheduled Termination Date; and
      (E)
      severance in an amount equal to one year’s base salary, as in effect immediately
      prior to the Executive’s termination hereunder. All payments due hereunder shall
      be made within 45 days after the date of termination of the Executive’s
      employment.
      The
      Company shall deduct, from all payments made hereunder, all applicable taxes,
      including income tax, FICA and FUTA, and other appropriate
      deductions.

     

    (iv) The
      Executive shall have no duty to mitigate his damages, except that continued
      benefits required to be provided under Section 11(e)(iii)(D) shall be canceled
      or reduced to the extent of any comparable benefit coverage offered to the
      Executive during the period prior to the Scheduled Termination Date by a
      subsequent employer or other person or entity for which the Executive performs
      services, including but not limited to consulting services. 

    

    (f) Without
      “Cause.”

     

    (i) By
      The
      Executive.
      At any
      time during the term of this Agreement, the Executive shall be entitled to
      terminate this Agreement and the Executive’s employment with the Company without
      Cause by providing prior written notice of at least 90 days to the Company.
      Upon
      termination by the Executive of this Agreement and the Executive’s employment
      with the Company without Cause, the Company shall have no further obligations
      or
      liability to the Executive or his heirs, administrators or executors with
      respect to compensation and benefits thereafter, except for the obligation
      to
      pay the Executive any earned but unpaid base salary, and unused vacation days
      accrued through the Executive’s last day of employment with the Company. The
      Company shall deduct, from all payments made hereunder, all applicable taxes,
      including income tax, FICA and FUTA, and other appropriate
      deductions.

    

    (ii) By
      The
      Company.
      At any
      time during the term of this Agreement, the Company shall be entitled to
      terminate this Agreement and the Executive’s employment with the Company without
      Cause by providing prior written notice of at least 90 days to the Executive.
      Upon termination by the Company of this Agreement and the Executive’s employment
      with the Company without Cause, the Company shall pay or provide to the
      Executive (or, following his death, to the Executive’s heirs, administrators or
      executors): (A) any earned but unpaid base salary, unpaid pro
      rata
      annual
      bonus and unused vacation days accrued through the Executive’s last day of
      employment with the Company; (B) the Executive’s full base salary through the
      Scheduled Termination Date (as the same may have been extended through any
      extensions of this Agreement); (C) the value of vacation days that the Executive
      would have accrued through the Scheduled Termination Date; (D) continued
      coverage, at the Company’s expense, under all

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    Benefits
      Plans in which the Executive was a participant immediately prior to his last
      date of employment with the Company, or, in the event that any such Benefit
      Plans do not permit coverage of the Executive following his last date of
      employment with the Company, under benefit plans that provide no less coverage
      than such Benefit Plans, through the Scheduled Termination Date; and (E)
      severance in an amount equal to one year’s base salary, as in effect immediately
      prior to the Executive’s termination hereunder. All payments due hereunder shall
      be made within 45 days after the date of termination of the Executive’s
      employment. The Company shall deduct, from all payments made hereunder, all
      applicable taxes, including income tax, FICA and FUTA, and other appropriate
      deductions. 

     

    13. Confidential
      Information.
      

    

    (a) The
      Executive expressly acknowledges that, in the performance of his duties and
      responsibilities with the Company, he has been exposed since prior to the
      Effective Date, and will be exposed, to the trade secrets, business and/or
      financial secrets and confidential and proprietary information of the Company,
      its affiliates and/or its clients, business partners or customers (“Confidential
      Information”).
      The
      term “Confidential Information” includes information or material that has actual
      or potential commercial value to the Company, its affiliates and/or its clients,
      business partners or customers and is not generally known to and is not readily
      ascertainable by proper means to persons outside the Company, its affiliates
      and/or its clients or customers.

    

    (b) Except
      as
      authorized in writing by the Board, during the performance of the Executive’s
      duties and responsibilities for the Company and until such time as any such
      Confidential Information becomes generally known to and readily ascertainable
      by
      proper means to persons outside the Company, its affiliates and/or its clients,
      business partners or customers, the Executive agrees to keep strictly
      confidential and not use for his personal benefit or the benefit to any other
      person or entity (other than the Company) the Confidential Information.
“Confidential Information” includes the following, whether or not expressed in a
      document or medium, regardless of the form in which it is communicated, and
      whether or not marked “trade secret” or “confidential” or any similar legend:
      (i) lists
      of
      and/or information concerning customers, prospective customers, suppliers,
      employees, consultants, co-venturers and/or joint venture candidates of the
      Company, its affiliates or its clients or customers; (ii) information
      submitted by customers, prospective customers, suppliers, employees, consultants
      and/or co-venturers of the Company, its affiliates and/or its clients or
      customers; (iii) non-public
      information proprietary to the Company, its affiliates and/or its clients or
      customers, including, without limitation, cost information, profits, sales
      information, prices, accounting, unpublished financial information, business
      plans or proposals, expansion plans (for current and proposed facilities),
      markets and marketing methods, advertising and marketing strategies,
      administrative procedures and manuals, the terms and conditions of the Company’s
      contracts and trademarks and patents under consideration, distribution channels,
      franchises, investors, sponsors and advertisers; (iv) proprietary
      technical information concerning products and services of the Company, its
      affiliates and/or its clients, business partners or customers, including,
      without limitation, product data and specifications, diagrams, flow charts,
      know
      how, processes, designs, formulae, inventions and product development; (v)
      lists
      of
      and/or information concerning applicants, candidates or other prospects for
      employment, independent contractor or consultant

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    positions
      at or with any actual or prospective customer or client of Company and/or its
      affiliates,
      any and
      all confidential processes, inventions or methods of conducting business of
      the
      Company, its affiliates and/or its clients, business partners or customers;
      (vi)
      acquisition or merger targets; (vii) business plans or strategies, data,
      records, financial information or other trade secrets concerning the actual
      or
      contemplated business, strategic alliances, policies or operations of the
      Company or its affiliates; or (viii) any
      and
      all versions of proprietary computer software (including source and object
      code), hardware, firmware, code, discs, tapes, data listings and documentation
      of the Company;
      or (ix
      any other confidential information disclosed to the Executive by, or which
      the
      Executive obligated under a duty of confidence from, the Company, its
      affiliates, and/or its clients, business partners or customers.

    

    (c) The
      Executive affirms that he does not possess and will not rely upon the protected
      trade secrets or confidential or proprietary information of his prior
      employer(s) in providing services to the Company. 

    

    (d) In
      the
      event that the Executive’s employment with the Company terminates for any
      reason, the Executive shall deliver forthwith to the Company any and all
      originals and copies of Confidential Information.

    

    14. Non-Competition
      And Non-Solicitation.
      

     

    (a) The
      Executive agrees and acknowledges that the Confidential Information that the
      Executive has already received and will receive is valuable to the
      Company and
      that
      its protection and maintenance constitutes a legitimate business interest of
      the
      Company, to be protected by the non-competition restrictions set forth herein.
      The Executive agrees and acknowledges that the non-competition restrictions
      set
      forth herein are reasonable and necessary and do not impose undue hardship
      or
      burdens on the Executive. The Executive also acknowledges that the products
      and
      services developed or provided by the Company, its
      affiliates and/or its clients or customers
      are or
      are intended to be sold, provided, licensed and/or distributed to customers
      and
      clients in and throughout the Mid-West (the “Geographic
      Boundary”)
      (to
      the extent the Company comes to own or operate any material asset in other
      areas
      of the United States during the term of the Executive’s employment, the
      definition of Geographic Boundary shall be automatically expanded to cover
      such
      other areas), and that the Geographic Boundary, scope of prohibited competition,
      and time duration set forth in the non-competition restrictions set forth below
      are reasonable and necessary to maintain the value of the Confidential
      Information of, and to protect the goodwill and other legitimate business
      interests of, the Company, its
      affiliates and/or its clients or customers.
      

    

    (b) The
      Executive hereby agrees and covenants that he shall not, without the prior
      written consent of the Company, directly or indirectly, in any capacity
      whatsoever, including, without limitation, as an employee, employer, consultant,
      principal, partner, shareholder, officer, director or any other individual
      or
      representative capacity (other than a holder of less than one percent (5%)
      of
      the outstanding voting shares of any publicly held company), or whether on
      the
      Executive’s own behalf or on behalf of any other person or entity or otherwise
      howsoever, during the Executive’s employment with the Company and for a period
      equal to the greater of (i) one year (two years, if termination of this
      Agreement or of Executive’s employment is pursuant to Section 12(f)(i) hereof)
      following the termination of this Agreement or of the Executive’s

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    employment
      with the Company or (ii) the period during which the Executive continues to
      receive his base salary pursuant to Sections 12(e) or 12(f)(ii) of this
      Agreement following the termination of this Agreement and of the Executive’s
      employment, in the Geographic Boundary:

    

    (i) Engage,
      own, manage, operate, control, be employed by, consult for, participate in,
      or
      be connected in any manner with the ownership, management, operation or control
      of any business in competition with the Business of the Company. The
“Business
      of the Company”
is
      defined as the development and production of ethanol and other alternatives
      to
      petroleum-based fuels within the Geographic Boundary.

    

    (ii) Recruit,
      solicit or hire, or attempt to recruit, solicit or hire, any employee, or
      independent contractor of the Company to leave the employment (or independent
      contractor relationship) thereof, whether or not any such employee or
      independent contractor is party to an employment agreement. 

    

    (iii) Attempt
      in any manner to solicit or accept from any customer of the Company, with whom
      the Executive had significant contact during the term of the Agreement, business
      of the kind or competitive with the business done by the Company with such
      customer or to persuade or attempt to persuade any such customer to cease to do
      business or to reduce the amount of business which such customer has customarily
      done or is reasonably expected to do with the Company, or if any such customer
      elects to move its business to a person other than the Company, provide any
      services (of the kind or competitive with the Business of the Company) for
      such
      customer, or have any discussions regarding any such service with such customer,
      on behalf of such other person.

    

    (iv) Interfere
      with any relationship, contractual or otherwise, between the Company and any
      other party, including; without limitation, any supplier, co-venturer or joint
      venturer of the Company to discontinue or reduce its business with the Company
      or otherwise interfere in any way with the Business of the Company.

    

    15. Dispute
      Resolution.
      The
      Executive and the Company agree that any dispute or claim, whether based on
      contract, tort, discrimination, retaliation, or otherwise, relating to, arising
      from, or connected in any manner with this Agreement or with the Executive’s
      employment with Company shall be resolved exclusively through final and binding
      arbitration under the auspices of the American Arbitration Association
      (“AAA”).
      The
      arbitration shall be held in Basehor, Kansas. The arbitration shall proceed
      in
      accordance with the National Rules for the Resolution of Employment Disputes
      of
      the AAA in effect at the time the claim or dispute arose, unless other rules
      are
      agreed upon by the parties. The arbitration shall be conducted by one arbitrator
      who is a member of the AAA, unless the parties mutually agree otherwise. The
      arbitrators shall have jurisdiction to determine any claim, including the
      arbitrability of any claim, submitted to them. The arbitrators may grant any
      relief authorized by law for any properly established claim. The interpretation
      and enforceability of this paragraph of this Agreement shall be governed and
      construed in accordance with the United States Federal Arbitration Act, 9.
      U.S.C. § 1, et
      seq.
      More
      specifically, the parties agree to submit to binding arbitration any claims
      for
      unpaid wages or benefits, or for alleged discrimination, harassment, or
      retaliation, arising under Title VII of the Civil Rights Act of 1964, the Equal
      Pay Act, the National Labor

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    Relations
      Act, the Age Discrimination in Employment Act, the Americans With Disabilities
      Act, the Employee Retirement Income Security Act, the Civil Rights Act of 1991,
      the Family and Medical Leave Act, the Fair Labor Standards Act, Sections 1981
      through 1988 of Title 42 of the United States Code, COBRA, the New York State
      Human Rights Law, the New York City Human Rights Law, and any other federal,
      state, or local law, regulation, or ordinance, and any common law claims, claims
      for breach of contract, or claims for declaratory relief. The Executive
      acknowledges that the purpose and effect of this paragraph is solely to elect
      private arbitration in lieu of any judicial proceeding he might otherwise have
      available to him in the event of an employment-related dispute between him
      and
      the Company. Therefore, the Executive hereby waives his right to have any such
      employment-related dispute heard by a court or jury, as the case may be, and
      agrees that his exclusive procedure to redress any employment-related claims
      will be arbitration.

    

    16. Notice.
      For
      purposes of this Agreement, notices and all other communications provided for
      in
      this Agreement or contemplated hereby shall be in writing and shall be deemed
      to
      have been duly given when personally delivered, delivered by a nationally
      recognized overnight delivery service or when mailed United States Certified
      or
      registered mail, return receipt requested, postage prepaid, and addressed as
      follows:

    

    If
      to the
      Company: 

    

    Ethanex
      Energy North America, Inc.

    c/o
      McGuireWoods LLP

    1345
      Avenue of the Americas

    New
      York,
      NY 10105

    Attn:
      Louis Zehil, Esq.

    Facsimile:
      (212) 548-2175

     

    If
      to the
      Executive:

    

    Albert
      Knapp

    18291
      158th Street

    Bonner
      Springs, KS 66012

    

    Any
      party
      may change the address to which communications hereunder are to be delivered
      by
      giving the other party notice in the manner herein set forth.

    

    17. Miscellaneous.

    

    (a) All
      issues and disputes concerning, relating to or arising out of this Agreement
      and
      from the Executive’s employment by the Company, including, without limitation,
      the construction and interpretation of this Agreement, shall be governed by
      and
      construed in accordance with the internal laws of the State of New York, without
      giving effect to that State’s principles of conflicts of law.

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

     

    (b) The
      Executive and the Company agree that any provision of this Agreement deemed
      unenforceable or invalid may be reformed to permit enforcement of the
      objectionable provision to the fullest permissible extent. Any provision of
      this
      Agreement deemed unenforceable after modification shall be deemed stricken
      from
      this Agreement, with the remainder of the Agreement being given its full force
      and effect.

    

    (c) The
      Company shall be entitled to equitable relief, including injunctive relief
      and
      specific performance as against the Executive, for the Executive’s threatened or
      actual breach of Sections 13 or 14 of this Agreement, as money damages for
      a
      breach thereof would be incapable of precise estimation, uncertain, and an
      insufficient remedy for an actual or threatened breach of Sections 13 or 14
      of
      this Agreement. The Executive and the Company agree that any pursuit of
      equitable relief in respect of Sections 13 or 14 of this Agreement shall have
      no
      effect whatsoever regarding the continued viability and enforceability of
      Section 15 of this Agreement.

    

    (d) Any
      waiver or inaction by the Company for any breach of this Agreement shall not
      be
      deemed a waiver of any subsequent breach of this Agreement.

    

    (e) The
      Executive and the Company independently have made all inquiries regarding the
      qualifications and business affairs of the other which either party deems
      necessary. The Executive affirms that he fully understands this Agreement’s
      meaning and legally binding effect. Each party has participated fully and
      equally in the negotiation and drafting of this Agreement. Each party assumes
      the risk of any misrepresentation or mistaken understanding or belief relied
      upon by him or it in entering into this Agreement.

    

    (f) The
      Executive’s obligations under this Agreement are personal in nature and may not
      be assigned by the Executive to any other person or entity. This
      Agreement shall inure to the benefit of and be binding upon the Company and
      its
      successors and assigns. The Company shall require any successor (whether direct
      or indirect, by purchase, merger, consolidation or otherwise) to all or
      substantially all of the business and/or assets of the Company expressly to
      assume and agree to perform this Agreement in the same manner and to the same
      extent that the Company would have been required to perform it if no such
      succession had taken place. Failure of the Company to obtain such assumption
      and
      agreement prior to the effective date of any such succession shall be a breach
      of this Agreement and shall entitle the Executive to compensation from the
      Company. For purposes of implementing the foregoing, the Date of Termination
      as
      defined in Section 4(d)(iii) shall be considered the date this Agreement was
      breached and shall entitle Executive to compensation from the Company. As used
      in this Agreement, "Company" shall mean both the Company as defined above and
      any such successor that assumes and agrees to perform this Agreement, by
      operation of law or otherwise. Upon the closing of the contemplated reverse
      merger (the “Merger”)
      of the
      Company with a wholly-owned subsidiary of a public company to be identified
      at a
      later date (the “PubCo”),
      this
      Agreement shall be assigned to and assumed by the PubCo concurrently with the
      closing of the Merger; provided, however, that the position of the Executive
      shall be Chief Executive Officer of the Company as of the closing of the
      Merger.

    

    (g) This
      instrument constitutes the entire Agreement between the parties regarding its
      subject matter. When signed by all parties, this Agreement supersedes and
      nullifies all prior or

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

    contemporaneous
      conversations, negotiations, or agreements, oral and written, regarding the
      subject matter of this Agreement. In any future construction of this Agreement,
      this Agreement should be given its plain meaning. This Agreement may be amended
      only by a writing signed by the Company and the Executive.

    

    (h) This
      Agreement may be executed in counterparts, a counterpart transmitted via
      facsimile, and all executed counterparts, when taken together, shall constitute
      sufficient proof of the parties’ entry into this Agreement. The parties agree to
      execute any further or future documents which may be necessary to allow the
      full
      performance of this Agreement. This Agreement contains headings for ease of
      reference. The headings have no independent meaning.

    

    (i) THE
      EXECUTIVE STATES THAT HE HAS FREELY AND VOLUNTARILY ENTERED INTO THIS AGREEMENT
      AND THAT HE HAS READ AND UNDERSTOOD EACH AND EVERY PROVISION THEREOF. THIS
      AGREEMENT IS EFFECTIVE UPON THE EXECUTION OF THIS AGREEMENT BY BOTH
      PARTIES.

    

    [Signature
      Page Follows]

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the Company and the Executive have executed this Employment
      Agreement as of the day and year first above written.

    

    
      	
              Albert
                Knapp

            	 	
              Ethanex
                Energy North America, Inc.

            
	 	 	 
	
              /s/
                Albert Knapp

            	 	
              By:
                /s/
                Bryan J. Sherbacow

            
	 	 	
              Name:
                Bryan J. Sherbacow

            
	
            	 	
              Title:
                President & CEO

            

    

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

    
Exhibit
      A

    

    Annual
      Performance Targets

    

    	1.  	
            The
              execution of a definitive agreement to site a plant adjacent to an
              existing dry corn milling fractionation
              plant.

          

    	2.  	
            The
              execution of a definitive agreement with an EPC to design/build ethanol
              plants.

          

    	3.  	
            The
              execution of an option to purchase the first operating ethanol
              plant.

          

    	4.  	
            Completion
              of project financing sufficient to construct the Company’s first producing
              ethanol plant.

          

    	5.  	
            Subject
              to applicable regulatory, governmental, or third party consents that
              may
              preclude it, the execution of a definitive agreement to construct the
              facility with the NYSE listed utility.

          

     

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

     

    Exhibit
      B

    

    

    July
      __,
      2006

    

    Tompkins
      Capital Group

    488
      Madison Avenue,

    New
      York,
      New York 10022

    Attention:
      Mr. Mark N. Tompkins

    

    Mr.
      Tompkins:

    

    Reference
      is made to that certain Term Sheet (the “Term Sheet”), dated June __, 2006,
      relating to a proposed business combination between Public Company, a __________
      corporation (the “Company”) and Armistead Power, Inc., a Delaware corporation
      (“Armistead”) and a related private placement financing (the “Transactions”). In
      connection with the Transactions, the Company and Armistead also entered into
      that certain Merger Agreement (the “Merger Agreement”), dated as of June __,
      2006, pursuant to which Armistead stockholders received common stock, par value
      $0.0001 per share, of the Company (the “Common Stock”) in consideration for
      shares of Armistead held by them at the effective time of the merger. In
      consideration of the Company and Armistead entering into the Transaction, and
      for Tompkins Capital Group to facilitate the Transactions and for other good
      and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the undersigned hereby agrees as follows:

    

    1. The
      undersigned hereby covenants and agrees, except as provided herein, not to
      (1)
      offer, sell, contract to sell or otherwise dispose of and (2) transfer title
      to
      (a “Prohibited Sale”) any of the shares (the “Acquired Shares”) of Common Stock
      acquired by the undersigned pursuant to or in connection with the Merger
      Agreement, during the period commencing on the “Closing Date” (as that term is
      defined in the Term Sheet) and ending on the 24-month anniversary of the Closing
      Date (the “Lockup Period”), without the prior written consent of the Company and
      Tompkins Capital Group (which consent shall not be unreasonably withheld).
      Notwithstanding the foregoing, the undersigned shall be permitted from time
      to
      time during the Lockup Period, without the prior written consent of the Company
      or Tompkins Capital Group, as applicable, (i) to acquire shares of Common Stock
      pursuant to the undersigned’s participation in the Company’s stock option plan,
      or (ii) to transfer all or any part of the Acquired Shares to any family member,
      for estate planning purposes or to an affiliate thereof (as such term is defined
      in Rule 405 under the Securities Exchange Act of 1934, as amended), provided
      that such transferee agrees with the Company and Tompkins Capital Group to
      be
      bound hereby, and in any transaction in which holders of the Common Stock of
      the
      Company participate or have the opportunity to participate pro rata, including,
      without limitation, a merger, consolidation or binding share exchange involving
      the Company, a disposition of the Common Stock in connection with the exercise
      of any rights, warrants or other securities distributed to the Company’s
      stockholders, or a tender or exchange offer for the Common Stock, and no
      transaction contemplated by the foregoing clauses (i) or (ii) shall be deemed
      a
      Prohibited Sale for purposes of this Letter Agreement.

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

     

    2. This
      Letter Agreement shall be governed by and construed in accordance with the
      laws
      of the State of New York, without regard to its conflict of laws
      principles.

    

    3. This
      Letter Agreement will become a binding agreement among the undersigned as of
      the
      Closing Date. This Letter Agreement (and the agreements reflected herein) may
      be
      terminated by the mutual agreement of the Company, Tompkins Capital Group and
      the undersigned, and if not sooner terminated, will terminate upon the
      expiration date of the Lockup Period. This Letter Agreement may be duly executed
      by facsimile and in any number of counterparts, each of which shall be deemed
      an
      original, and all of which together shall be deemed to constitute one and the
      same instrument. Signature pages from separate identical counterparts may be
      combined with the same effect as if the parties signing such signature page
      had
      signed the same counterpart. This Letter Agreement may be modified or waived
      only by a separate writing signed by each of the parties hereto expressly so
      modifying or waiving such agreement.

    

    

    Very
      truly yours,

    

    Signature:__________________

    Print
      Name:________________

    

    

    Address:
      ______________________________________

    Number
      of
      shares of Common Stock owned: __________

    Certificate
      Numbers: _____________________________

    
      
         

      

        -17-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]