Document:

Stock Purchase and Shareholders Agreement - Ultra Green Energy Corporation

 Exhibit 10 
 STOCK PURCHASE AND SHAREHOLDERS AGREEMENT 
 This STOCK PURCHASE and SHAREHOLDERS AGREEMENT
(the “Agreement”) is made as of the 24th day of July, 2007 (the “Effective Date”), by and among EarthFirst Technologies, Inc. (“EFTI”), SolarDiesel Corporation f/k/a EarthFirst Americas, Inc., a Florida corporation or
any corporation or other entity formed by Solar Diesel to own its shares and interest in the venture contemplated hereby (“SolarDiesel” or “the Company”), and Ultra Green Energy Corporation (“UGE”). EFTI and UGE shall
collectively be referred to herein as the “Shareholders”). 
 RECITALS 
 A. The Company has entered into a Lease and Supply Agreement (collectively the “Lease”) with Loders Croklaan for the production of ASTM 6751
biodiesel and related products by retrofitting an existing facility previously used for vegetable oil fractionation at Loders’ manufacturing complex at Channahon, Illinois (herein “Channahon Facility”). EFTI, as the Company’s
parent, was required to and has guaranteed the Company’s performance under the Lease. 
 B. On May 9, 2007 the Company and UGE
entered into a Memorandum of Understanding (“MOU”) to set out certain terms for a proposed transaction that would allow the parties to work together in developing and operating the Channahon Facility as a Bio-refinery, taking advantage of
their joint experiences in the production and marketing of biofuels and related products. This MOU contemplated that the parties would execute definitive agreements setting forth their final understandings and terms; and 
 C. The parties desire to enter into this Agreement and execute the documents referenced herein as Exhibits to effectuate the MOU and the Agreement and
Exhibits collectively constitute the definitive agreement called for in the MOU; and 
 D. In addition to effectuating the transaction called
for in the MOU, the Shareholders are entering into this Agreement to provide for corporate or other entity governance and to define their rights and obligations inter se.  
 NOW, THEREFORE, in consideration of the recitals and the mutual promises set forth in this Agreement, Ten Dollars ($10.00) and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Shareholders and the Company, intending to be legally bound, hereby agree as follows: 
 1. DEFINITIONS. As used in this Agreement, the following terms shall have the following meanings: 
  

	 	a.	 “Actual Notice” means receiving or discovering a reliable written disclosure or a writing or document that establishes a material fact. A writing as used
herein includes, but is not limited to a hard or paper copy, facsimilie, an e-mail, a 

	 	 
document in PDF or other analog or digital format provided it is directed to the party required to have Actual Notice under this Agreement. Actual Notice
does not include any form of oral communication or constructive or indirect knowledge of any fact. 

  

	 	b.	“Agreed Construction” means the retrofitting, additions, build-out, furnishing, equipping and fit-out of the Channahon Facility pursuant to plans and on a time schedule
agreed to by the Shareholders in writing. 

  

	 	c.	“Affiliate” of a specified person (the “Specified Person”) means any Person: (a) who directly or indirectly controls, is controlled by or is under common
control with the Specified Person; (b) who owns or controls twenty percent (20%) or more of the Specified Person’s outstanding voting securities or equity interests; (c) of whom such Specified Person owns or controls twenty
percent (20%) or more of the outstanding voting securities or equity interests; (d) who is, or in the year prior to consideration of any Affiliate status hereunder was a director, partner, manager, shareholder, member, executive officer or
trustee of the Specified Person; (e) in whom the Specified Person is, or in the year prior to consideration of any Affiliate status hereunder was or had the power to designate or appoint, a director, partner, manager, shareholder, member,
executive officer or trustee or (f) who has any relationship with the Specified Person by blood, marriage or adoption not more remote than first cousin. 

  

	 	d.	“Affiliate Contract” means a contract where goods and/or services and performance of the contract will be provided or rendered to the Company by an Affiliate.

  

	 	e.	“Agreed Value” means the value for the shares of the Company established by the good faith negotiations of the Shareholders annually, at the time the Annual Budget is
considered by the Shareholders or after the occurrence of a material event that significantly affects the then established Agreed Value. The Agreed Value shall be evidenced by a written document signed by all Shareholders, in the form annexed hereto
as Exhibit “H”. 

  

	 	f.	“Annual Budget” means a written, estimated compilation of all projected operating income and expenses of the Company, by month, for the next calendar year and shall
include a pro-forma opening and closing Balance Sheet, Profit and Loss Statement, Sources and Uses of Working Capital and a Capital Improvements Budget and a year to date comparison to prior years by month. The Annual Budget and all its components
shall be prepared on an accrual basis in accordance with GAAP or if not GAAP, consistent with the accounting methodology in use by the Company and agreed by the Shareholders and shall contain all supporting schedules or other information necessary
for the Shareholders to make an informed decision on the future financial operations of the Company. 

	 	g.	“Appraisal Value” means the Third Party appraised value of the Company’s shares in any year that the Shareholders fail to reach an Agreed Value for the Shares. The
Appraisal Value shall be placed into the Company records and represented by an Appraised Value Certificate in the form annexed hereto as Exhibit I. 

  

	 	h.	“ASTM 6751” means a final biodiesel product that satisfies any current or future standard, regardless of identification number, adopted by the American Society for Testing
of Materials for biodiesel fuel capable of receiving the IRS tax credit and substituting for petroleum diesel in motor fuel, heating oil, conventional generators and power generation by turbines and all other or similar applications.

  

	 	i.	“Board” means the Company’s Board of Directors, or if an LLC it’s Managing Members. 

  

	 	j.	“Bylaws” means the bylaws of the Company, as amended or restated from time to time. 

  

	 	k.	“Best Efforts” means the obligation to make every effort a prudent business person or entity, under similar circumstances, would make when acting in a determined manner to
obtain the intended result by action or expenditure, provided that no action or expenditure will be required that is unreasonably disproportionate or burdensome under the circumstances. 

  

	 	l.	“Business Days” means all days in a calendar year with the exception of Saturdays, Sundays, any day an FDIC insured bank is closed for business and any official Illinois
State Holiday on which the Courts of the State of Illinois are not generally open for business. 

  

	 	m.	“Certificate” means the Certificate of Incorporation of the Company, as amended or restated from time to time. 

  

	 	n.	“Code” means the Internal Revenue Code of 1986, as amended from time to time. 

  

	 	o.	“Company” as used herein primarily refers to Solar Diesel, but in the case of a Substitute Agreement under Paragraph 2 hereof, shall mean the newly formed business entity
which is substituted by the shareholders for Solar Diesel. 

	 	p.	“Competitive Biodiesel Project” means any business venture in which either shareholder has an ownership, management, operational, financial or any other direct or indirect
interest of any kind or nature which is or is to be located within a 300 mile circumference of the Channahon Facility or wherever located that sells or attempts to sell biodiesel or other bio-refinery products like, similar or in competition with
any product being produced or intended to be produced at the Channahon Facility or attempts or intends to sell such products to existing customer(s) of the Channahon Facility or into its designated markets or the markets it actually serves.

  

	 	q.	“Deadlock” means the casting of votes, by Shareholders authorized to cast votes on an issue, in which the votes cast are equal in number for and against the issue, or
otherwise resulting in a non-determination on the issue being presented for a vote. 

  

	 	r.	“Deadlock Notice” means the notice of a deadlock in voting as called for and defined in Section 6.7.1 

  

	 	s.	“Default Purchase” means the purchase and sale of a Shareholder’s shares as provided for and defined in Section 6.6, et seq of this Agreement.

  

	 	t.	“Director” means a member of the Board. 

  

	 	u.	“EFTI Consideration” means shares issued, capital contributed or other things of value provided by EFTI to the Company or any Shareholder hereunder.

  

	 	v.	“Formation Documents” means the Article or Certificate of Incorporation or formation and the Bylaws or Rules and Regulations governing of the Company.

  

	 	w.	“Initial Budget” means the mutually agreed budget for the renovation and start-up of the Channahon Facility. 

  

	 	x.	“Involuntary Transfer” is a proposed or actual transfer of a Shareholder’s shares as described in Section 6.6.1 herein. 

  

	 	y.	“Non-Selling Shareholder” means any Shareholder who is not then making or required to make a Transfer of his, her or its Shares pursuant to this Agreement.

  

	 	z.	“Person” means any individual, corporation, partnership, association, Limited Liability Company, trust, estate, syndicate or other entity. 

	 	aa.	“Profits” and “Losses” means, for each fiscal year of the Company or other period, the net taxable income or loss of the Company as determined in accordance with
the accounting methods followed by the Company for Federal Income Tax purposes and adjusted for non-cash expenses, but including a provision for Reserves, or calculated in such other method as unanimously agreed by all Shareholders. Unless provided
otherwise, an allocation of Profits or Losses shall consist of a pro-rata allocation of all items comprising Profits or Losses. 

  

	 	bb.	“Project Financing “means, if necessary, the bridge or temporary financing obtained by the Shareholders from a Third Party for the purpose of funding the Initial Budget
and subsequently the obtaining of loans or similar accommodations on a permanent basis to provide long term financing of equipment, inventory, site improvements, working capital and other funds needed to operate or expand the Channahon Facility and
to meet any Initial or Annual Budget requirements thereof. 

  

	 	cc.	“Project Guaranty” means a written document or instrument, by which any Shareholder individually is required to pledge its credit, assure performance, co-make, endorse,
indemnify or otherwise become responsible for any payment or performance of the Company. 

  

	 	dd.	“Proportionate Share” means, with respect to each Non-Selling Shareholder, the number of Shares owned by each such Non-Selling Shareholder divided by the total number of
Shares owned by all of the Non-Selling Shareholders. 

  

	 	ee.	“Reserves” means funds from Project Financing or operation of the Channahon Facility which are required by this Agreement or any Initial or Annual Budget to be held for a
specific purpose such as replacement and upgrading of equipment or future working capital. 

  

	 	ff.	“Qualified Public Offering” means the offer of the Company’s Shares pursuant to a registration statement filed and made effective pursuant to the Securities Act
(other than a registration statement on Form S-4 or S-8 or filed in connection with an exchange offer or an offering of securities solely to the Company’s existing Shareholders) which shall be a firm commitment public offering of securities
underwritten by a major bracket underwriter. 

  

	 	gg.	“Securities” means any class of equity securities that the Company now or hereafter is authorized to issue. 

  

	 	hh.	“Securities Act” means the Securities Act of 1933, as amended from time to time. 

	 	ii.	“Selling Shareholder” means a Shareholder who’s Shares are subject to a purchase option of the Company and/or the other Shareholders pursuant to the terms of this
Agreement or who otherwise proposes to Transfer his, her or its Shares. 

  

	 	jj.	“Share” means each share of common stock of the Company, or if the Company is not a corporation then a membership interest or such other written evidence, document or
instrument representing a Shareholder’s ownership interest in the Company. 

  

	 	kk.	“Substitute Agreement” means the corporate or other entity governance documents enacted by the Shareholders in the place of this Agreement, but incorporating the terms set
forth herein, in the event the Shareholders decide to use a newly formed SPE to operate the Channahon Facility in the place of the Company. 

  

	 	ll.	“Third Party” means any third Person, unrelated to any Shareholder, or Affiliate of any Shareholder. and excludes the Company. 

  

	 	mm	“Transfer” means: (a) when used as a verb, to give, sell, exchange, assign, transfer, pledge, hypothecate or otherwise dispose of or encumber or create a security
interest in; and (b) when used as a noun, the nouns corresponding to such verbs, in either case voluntarily or involuntarily, directly or indirectly, by operation of law or otherwise. 

  

	 	nn.	“Unauthorized Transfer” means any Transfer or attempted Transfer of a Shareholder’s Shares in violation of the terms of this Agreement. 

  

	 	oo.	“UGE Consideration” – Means the consideration, promises, assignment of contract and other monies, things or services of value given by UGE to receive Company Shares
or membership interests hereunder. 

 2. UGE PURCHASE OF COMPANY SHARES; CONSIDERATION. 
 The Shareholders, after execution hereof, propose to file an agreed Amendment to the Company’s Articles of Incorporation and take all such actions as
are reasonably necessary to make and reconstitute the Company as a Special Purpose Entity (“SPE”), with its only purpose and business to be the ownership and operation of the Channahon Facility and to comply with all terms and conditions
provided herein. The proposed Amendment is annexed hereto as Exhibit A. Based on the Company being able to achieve this SPE status, the Parties agree to issue shares and provide the considerations to one another as provided in the entirety of this
Section 2. If for any reason the Company 

 
cannot be reconstituted as an SPE, or the Shareholders, or their tax advisors determine that a new corporation or different form of business entity better
suits the Shareholders purposes, or financing of the Channahon Facility is required to be in or benefits from a newly formed business entity now or in the future, the Shareholders agree to form such new business entity and Transfer from the Company
to such business entity any and all assets of or at the time of Transfer are associated with Channahon Facility. In the event of such Transfer an appropriate Substitute Agreement shall be prepared and executed. The Substitute Agreement shall conform
in all material terms, aspects, ownership percentages, profit allocations and respects with this Agreement and incorporate all terms and purposes hereof into such Substitute Agreement. Until the execution of the Substitute Agreement, this Agreement
shall continue to govern the Shareholders. 
 2.1 Share Purchase: UGE, in return for the consideration described and as contributed by
the allocation set forth in Section 2.2, and otherwise herein is hereby transferred, or will be transferred, sold and granted by EFTI and the Company Thirty-Five (35), fully paid and non-assessable Shares of the Company’s common stock
which represents thirty-five percent (35%) of the Company’s authorized and outstanding common stock(or the same proportion of shares under any Substitute Agreement). These Shares will be newly issued by the Company with EFTI’s full consent
and, when issued, will be transferred to UGE free and clear, without any lien, claim or encumbrance of any kind or nature 
 2.2
Consideration for UGE Shares in the Company: In consideration of its purchase of Company Shares, UGE will be contributing and transferring to the Company all of the following: 
 2.2.1 Assignment: Assignment (or re-issuance by a separate, but identical as to party and terms, Off-Take Agreement) to the Company of
60 million gallons of UGE’s right to place biodiesel produced pursuant to a Master Off-Take contract, dated February 16, 2007, a copy of such Assignment being annexed hereto as Exhibit B. Upon execution of Exhibit B, UGE will be
receive Seventeen and one-half (17.5) Shares of the Company, representing a seventeen and one-half percent (17.5%) interest in the Company’s issued and outstanding Shares. 
 2.2.2 Management Agreement: Management Agreement dedicating as many key UGE personnel, including but not limited, to Tom Campone and Ed
Phelan and providing for as much UGE staff time and effort as needed to assist and supervise in the development and then operation of the Channahon Facility on a professional and first rate quality level of operations, including putting in place all
necessary reporting, record-keeping quality control and other processes and procedures to allow qualification for and the ultimate receipt of BQ9000 and Six Sigma certifications for the manufacturing of ASTM 6751 Biodiesel, and Methyl Ester
Sulfonate or other related products meeting their individual ASTM, or if no ASTM designation, the highest industry standard for all such products that will bring the maximum value and salability for such products, from the Channahon Facility or such
other locations as the Shareholders’ authorize. A form of the 

 
Executive Management Agreement is annexed hereto as Exhibit C. Upon execution of Exhibit C, UGE will receive four (4) additional Shares of the Company;
and 
 2.2.3 Working Capital Contribution: The Shareholders are desirous of as quickly as possible entering into a contract or
contracts for the start-up of Agreed Construction at the Channahon Facility. UGE has pre-existing relationships with AMS and Block Electric, and other reputable contractors with familiarity and working knowledge of the Channahon facility. As
UGE’s working capital contribution and prior to obtaining Project Financing, UGE at its own cost and expense shall perform the following: 
  

	 	(a)	Negotiate and coordinate with DeNovo Global Technologies, Inc. (“De Novo”) to minimize engineering expense, maximize in field placements and generate the lowest cost
infra-structure placement with complete “as-built” drawings; and 

  

	 	(b)	assist DeNovo in marking equipment for removal, refurbishing and determining demolition situs, status and schedule and, if feasible complete plans for a first phase capable of
producing approximately 12 million gallons per year capacity using existing reactors and equipment, and 

  

	 	(c)	arrange for AMS to commence demolition and basic to Equipment relocation at the site; and 

  

	 	(d)	arrange for Block Electric to start testing and ringing out needed circuits and placing transmitters and otherwise providing the capability for a revise electrical plan, and

  

	 	(e)	negotiate contracts and take all planning and implementation action needed for the acquisition of glycerin feedstock, conversion to technical grade glycerin and the sale of such
glycerin, and 

  

	 	(f)	work with De Novo, Block, AMS and other contractors to obtain a final cost estimate for the Agreed Improvements, such that the estimate will be sufficient for Project Financing
purposes, and 

  

	 	(g)	be making their Best Efforts to obtain a commitment for Project Financing. 

 It is the Shareholder’s specific intention that this in-kind, working capital advance made available by UGE will be repaid as a first priority from any Project Financing, but shall be at risk if for any reason
the Channahon Facility fails to become operational or the project is otherwise terminated or abandoned by the Company. Upon, completion of all the above, UGE shall receive two (2) shares in the Company); and 

 2.2.4 Grant Expertise: UGE’s expertise in obtaining a grant or grants from the State of
Illinois, local governments, the Federal Government, or otherwise to subsidize construction, operations or sale of Biodiesel or related products produced by the Company at the Channahon facility or such other location as agreed to by the
Shareholders. The Shareholders acknowledge that the amount of any grant may vary based on the estimated annual gallons of biodiesel to be produced at the Channahon Facility, but that at the current time the minimum grant amount sought will be
$3,000,000. Upon receipt of this grant, UGE shall receive two_(2)_Shares in the Company). 
 2.2.5 Certifications: UGE’s expertise
in getting the Channahon Facility operational is a primary reason for EFTI’s entry into this Agreement. Upon UGE getting the Channahon facility operational to the level of 5 million gallons per month and it receives either a BQ 9000 or Six
Sigma Certifications, then UGE shall be entitled to the remaining Shares called for herein such that it will own Shares equivalent to thirty-five percent (35%) of all issued and outstanding Shares of the Company. 
 2.3 Additional Consideration to be Provided UGE by EFTI: In addition to the common shares of the Company to be issued for the UGE Consideration:

 2.3.1 Initial EFTI Shares: UGE shall be receiving on the successful execution and completion of Sections 2.2.1 through 2.2.4 above,
cashless warrants equivalent to four and nine tenths percent (4.9%) of the authorized and outstanding common stock of EFTI on the date hereof at an exercise price of $.07 per share; these shares are subject to Rule 144 restrictions; and

 2.3.2 Additional EFTI Shares: Based on meeting the benchmarks and Channahon Facility goals set forth in the schedule to the Warrant
Agreement, and upon payment of the purchase prices set forth in the Warrant Agreement annexed hereto as Exhibit D, UGE shall also have warrants to acquire up to fourteen percent (14%) of the issued and outstanding common shares of EFTI as of
the date hereof; and 
 2.3.3 Home-Run Warrants: UGE shall be entitled to be issued success warrants for the extraordinary
success of the Channahon Facility in accordance with and provided for under the terms of that Warrant Agreement annexed hereto as Exhibit D; and 
 2.3.4 EFTI Working Capital: Upon Agreement to the Initial Budget, EFTI shall, effective May 1, 2007, advance to the Company up to $125,000 per month to compensate UGE personnel and their related administrative expenses (pursuant
to the Executive Management Agreement) for work done and services provided at or in connection with the Channahon Facility for the months of May through September 2007. This advance shall cease upon the obtaining of Project Financing. This EFTI
advance shall be repaid as a first priority from any Project Financing but shall be at risk if, for any reason, the Channahon Facility fails to become operational, or the project is terminated or abandoned by the Shareholders; and 

 2.3.5 EFTI Personnel: EFTI will make available to the Company Domenic Massari, Pete Calvert and
such other management and technical staff as needed to assist and support in the development, operation and obtaining of financing of the Channahon Facility. 
 2.4 Mutual Efforts and Considerations: The Company, EFTI and UGE will: 
 2.4.1 Project
Financing: Diligently work together using their Best Efforts to obtain Project Financing in the amount of fifteen million dollars ($15,000,000) with a first draw or tranche of seven million, five hundred thousand dollars ($7,500,000). From the
first draw the Shareholder will be reimbursed for all previous contributions and expenses made or paid on account of the Channahon Facility, including without limitation, the $500,000 deposit on the Lease already made by Solar Diesel, and the
working capital amounts referenced in Sections 2.2.3 and 2.3.4 and actually advanced or subject to a Project Guaranty by a Shareholder or its principals through the date Project Financing is closed and the proceeds thereof received by the Company;

 2.4.2 Right of First Refusal: The Shareholders acknowledge that they are each working on additional alternative energy or green
projects. Nothing herein prohibits the Shareholders from working on any other projects, provided that the Shareholders’ agree that neither the Shareholders nor their Affiliates will engage in, become involved with or finance a Competitive
Biodiesel Project, as prohibited in Section 3.3. The Shareholders to hereby grant each other a Right of First Offer to participate as a fifty (50%) (or such other percentage if agreed), joint venture partner, shareholder or member in any
alternative energy or green project the other enters into after the date hereof. This Right of First Offer shall be evidenced by the Shareholders’ execution of that Right of First Offer Agreement annexed hereto as Exhibit E; and 
 2.4.3 M-1 Consulting Agreements: The Parties agree to use Best Efforts to reach agreements with M-1 Capital Securities to provide Project
Financing, other financing and risk management services to the Company with compensation to M-1, to be as agreed by the Shareholders and which may consist of cash payment, a grant of equity, or both. 

 3. SPECIAL DUTIES AND OBLIGATIONS. 
 3.1 Day to Day Management: Subject to the Shareholders’ rights to make all Major Decisions and Major Expenditures (as hereinafter defined)
relating to the Channahon Facility, the Shareholders agree that, provided Tom Campone complies with the terms of the Executive Management Agreement and meets the benchmarks and project goals specified herein and required hereby or in any budget or
schedule established by the Company in a timely fashion, that Tom Campone and such UGE and Company staff under his direction shall have the exclusive right to manage the Channahon Facility’s day to day operations. To evidence this day to day
operational authority, Tom Campone, by unanimous consent, is hereby elected as the President of the Company to serve in accordance with the terms of the Executive Management Agreement. The other key initial and agreed officers of the Company are as
follows: 
  

	 	-	Ed Phelan – Sr. Vice President of Commercial Development 

  

	 	-	Domenic Massari – Sr. Vice President for Strategic Planning 

 3.2 Indemnification For Guaranty Obligation: Prior to the execution of this Agreement, EFTI has provided a corporate parent Project Guaranty of the Lease, and UGE has or may be required to provide one or more Project Guaranties
associated with construction or other phases of the Channahon Facility ( other than and excepting the working capital to be provided by UGE on a risk basis pursuant to Section 2.2.3 hereof) or in connection with its business. To fairly allocate
the burden of any existing or future Project Guaranty that may be required from either Shareholder individually, the Shareholders have executed a Cross-Indemnity Agreement in the form annexed hereto as Exhibit “F”. 
 3.3 Non-Compete Covenant: The Shareholders (and by virtue of the Shareholders’ obtaining acceptable written non-compete agreements from all of
their current or future principals, agents, representatives and key personnel, the Shareholders officers, directors and key employees) hereby covenant and agree that they shall not directly or indirectly, as an officer, agent, employee, consultant,
independent contractor, manager ,shareholder, investor, partner, joint venturer, financier or in any other capacity participate, support or in any way become involved in a Competitive Biodiesel Project during the term hereof and for one year
thereafter. In addition, because money damages are insufficient for any possible damage that may be caused to the Company or the Shareholders by a breach of this covenant, the Shareholders agree that injunctive relief to enjoin such breach is
appropriate and shall be granted by a Court of competent 

 
jurisdiction, upon evidence that a breach of this covenant has occurred and without the need for the Company or a Shareholder seeking such relief
demonstrating the absence of a remedy at law, irreparable injury, the insufficiency of monetary damages or the requirement that the party seeking the injunction post a bond. 
 3.4 Covenant to Not Disclose; Trade Secrets: The Shareholders acknowledge that the Company has and will develop processes, formulations, operating
manuals and protocols, business relationships and other tangible and intangible intellectual property, knowledge and know-how, as well as “trade-secrets” as defined by applicable law. The Shareholders mutually covenant that they shall
protect and preserve all such Company knowledge, relationships and trade secrets and shall not disclose them directly, indirectly, in any part or whole (or provide non-trade secret information that might lead to a Third Party discovering or
re-creating a trade secret) to any Third Party, absent consent by all Shareholders and the Third Party executing a form of Non-Disclore Agreement approved by Counsel for the Company. Any failure or default by a Shareholder of this covenant shall
entitle the Company and/or the other Shareholder to obtain injunctive relief without the need to prove an absence of a remedy at law, irreparable injury or the posting of an injunction bond. 
 4. CONTRIBUTIONS AND CAPITAL 
 4.1 Initial Contributions: Prior to the execution of this Agreement, EFTI properly owned all the issued and outstanding Shares of the Company. By virtue of the execution of this Agreement, and upon UGE making the contributions
required hereby, UGE has become a Shareholder in the Company as provided herein. There Shareholders, as provided herein, shall obtain or retain shares of the Company equal to the following percentages of ownership: 
 65% - EFTI 
 35% - UGE

 In the event of a Substitute Agreement, the Shareholder’s percentage interests shall initially be the same as provided for in this
Agreement. 
 4.2 Additional Required Capital: The Shareholders acknowledge that it is their intent to borrow or finance additional
capital needs of the Channahon Facility to continue and/or maximize its operations, but that there may be a need for additional capital to meet the requirements of the Initial Budget or any Annual Budget that cannot be borrowed or otherwise obtained
from Third Parties. The 

 
Shareholders agree that if additional funds are needed to complete the Agreed Construction, for pre-opening expense, expenses and capital expenditures
necessary to open the Channahon Facility, make payments on the Lease, continue operations or such similar matters in accordance with the Initial Budget or any Annual Budget, then, within ten (10) business days of the written demand of the
Company President or any Director, setting forth the reasonable amount necessary for each Shareholder to contribute, each Shareholder shall contribute in cash or cash equivalent its pro-rata share, based on Share ownership, of the amount requested
as Additional Required Capital. However, to the extent that UGE is receiving (or has met the requirements to receive) Profits in excess of its then existing percentage of ownership in the Company pursuant to Section 5.4, prior to any Profit
distribution to either Shareholder, EFTI shall be entitled to be repaid an amount equal to any Additional Required Capital it has contributed to the Company, in excess of the Additional Required Capital contributed by UGE. 
 4.3 Additional Discretionary Capital: In the event the Shareholders vote to contribute capital beyond that necessary to meet the Initial Budget or
any Annual Budget and such approved capital does not constitute Additional Required Capital such capital shall be considered “Additional Discretionary Capital”, In the case of Additional Discretionary Capital, there shall be no
Section 4.4 penalty for a Shareholder’s failure to contribute. The amount of Additional Discretionary Capital approved by Shareholder vote shall be contributed with twenty (20) business days of written demand by the President or any
Director of the Company. 
 4.4 Failure to Contribute: The Shareholders recognize the this Agreement is made at a time that the
Channahon Facility is in a start-up mode and most susceptible to financial failure. Timely contribution of Additional Required Capital may be essential to the Company’s ability to move the project forward and the failure of either Shareholder
to contribute could jeopardize the financial success and viability of the project and cause a loss to the Shareholders of all capital invested or loans made through the date the Additional Required Capital is called for. Therefore, in the event
either Shareholder shall fail or refuse to timely contribute Additional Required Capital, then the Company shall deliver to the non-contributing Shareholder a Default Notice. The non-contributing Shareholder shall have ten (10) business days to
make the contribution. In the event any Shareholder continues as a non-contributing Shareholder, then the contributing Shareholder shall have the right to make, the non-contributing Shareholder’s contribution by making a Default Contribution
Loan, which shall bear interest at the rate of 15% per annum with a one year maximum term. The Company shall pay or reimburse the contributing Shareholder for all reasonable costs and fees incurred in connection with making or collection of the
Default Contribution 

 
Loan. In the event a contributing Shareholder’s Default Contribution Loan is not paid off by the Company or the other shareholder, one year from the
date it is made, the contributing shareholder shall have the right to either extend its loan, or have the Default Contribution Loan, or any portion thereof requested by the contributing shareholder repaid to the contributing shareholder by receiving
a transfer of newly issued Shares in the Company. The number of newly issued Shares shall be determined by dividing 125% of the loan or loan amounts the contributing Shareholder elects to be repaid by stock issuance by the Agreed Value of the
Company’s Shares or the Appraisal Value of the Company’s shares at the time the Default Contribution Loan is then repaid. For example, if the amount owed for principal, interest, cost and fees on the Default Contribution Loan is $100,000,
the contributing Shareholder elects to convert the entire amount owed to Shares and the Agreed Value or Appraisal Value of the Company’s Shares is $1,000 per share then the following calculation represents the formula described in the above
text. 1) take the $100,000 balance to be converted X’s 125% = $125,000. 2) Divide $125,000 by the share value of $1,000 = 125 Shares. 3) Issue 125 fully paid and non assessable, free and clear Shares of the Company to the contributing
Shareholder. In the event of a conflict between the text of this Section and the Example, the text shall govern for interpretation purposes. The form of Promissory Note that shall be used to evidence a Default Contribution Loan is attached hereto as
Exhibit “G”. 
 4.5 Valuation of Shares: By the time the Annual Budget is approved each year, the Shareholders shall agree on
the value of the Company’s Shares for all purposes under this Agreement, until the time of preparation of the next Annual Budget, except that if either Shareholder in good faith believes that a material event has increased the Company’s
Share value during any year it shall have the right to request an additional valuation. This Agreed Value of the Shares shall be represented by an Agreed Value Certificate in the form annexed hereto as Exhibit “H” and executed by the
President of the Company, affixing the underling resolution and shall be placed in the Company’s records. No Shareholder shall be entitled to request an additional valuation more than two times in any calendar year. If the Shareholders are
unable to agree on the current value of the Company’s Shares, then no later than thirty (30) days after written notice by either Shareholder that they are at an impasse on share valuation, then the Company shall employ a valuation company
or share valuation expert to value the Company’s Shares for all purposes hereunder until the time of approval of the next Annual Budget. The value of the Shares established by a Third Party shall be evidence by an Appraisal Value Certificate in
the form annexed hereto as Exhibit “I” and shall be placed in the records of the Company. If an event requires valuation of the Shares and the valuation process called for in this Section is not complete, then the Closing or other event
requiring valuation shall be extended until twenty (20) Business Days after Share valuation has been determined in accordance herewith. 

	 	5.	DISTRIBUTIONS: The Shareholders agree that it is their intent to profit from operations at the Channahon Facility and to distribute Profits from these operation on a
regular and timely basis. 

 5.1 Reserves: The Shareholders, in the Annual Budget and as required from time to time and
as is commercially reasonable during the year, and prior to any distribution of Profits shall establish necessary Reserves to allow the smooth and orderly operation, maintenance and growth of the Channahon Facility. 
 5.2 Quarterly Distributions: The Company shall distribute Profits, if possible within 30 days of the end of each calendar quarter, with the amount
of such Profits distribution to be established by a Shareholder vote. 
 5.3 Annual Distribution: The Company Shall distribute any
undistributed Profits within 45 days of the end of each calendar year or completion of any Audit, whichever is later in time, unless otherwise agreed by Shareholder vote. 
 5.4 Distribution Percentages: The Shareholders shall be distributed Profits pro rata in accordance with their percentage of share ownership, except
that if UGE meets the financial goals set forth in Exhibit J, and such subsequent annual goals established by the Shareholders, then UGE shall be entitled to receive up to 49% of the Profits agreed to be distributed. 
 6. SHAREHOLDER RESTRICTIONS, RIGHTS AND OBLIGATIONS – The Shareholders agree that initially, and unless otherwise agreed, it is their
intent to maintain the Company’s Shares as closely held between them. The Shareholders have entered into this Agreement and retained or received Shares in the Company based on the other’s involvement and with no contemplation that any
Third Party would hold Company Shares. To affect this intent, the Shareholders have adopted the restrictions on transferability of the Company’s Shares contained in this Section. 
 6.1 Transfer Not Authorized. No Shareholder may Transfer or attempt to Transfer all or any part of its Shares in the Company, except as provided in
this Agreement. Any Permitted Transferee, by accepting the Company’s Shares, shall become subject to all terms and provisions of this Agreement to the same extent and in the same manner as if it had executed this Agreement, whether or not the
Permitted Transferee had access to, had read or in any way had actual knowledge of any term of this Agreement. 
 6.2 Transfer Subject to
Option To Purchase. Each Shareholder is hereby granted an irrevocable, executed (not executory) and separately and fully paid for, 

 
vested option and right to purchase any and all Shares of the other Shareholder under the terms of the provisions of Section 6.6 hereof (the
“Purchase Option”). The Purchase Option is granted upon the execution of this Agreement and is an integral and indivisible part of the Shares issued and of Share ownership and is superior to all other rights of any person or entity to
acquire, own or utilize the Shares. 
 6.3 Transfer Void Any purported or attempted Transfer of all or any portion of any Shares in
violation of the terms of this Agreement shall have no effect and shall be null and void ab initio. Each Shareholder agrees that any such Transfer may and should be enjoined. In the event of any attempted or purported Transfer of Shares in
violation of the terms of this Agreement, the Shares subject to the attempted or purported Transfer shall become non-voting and any holder of such Shares shall have no right to participate or vote in any matter of corporate governance hereunder or
any matter requiring a Shareholder vote. 
 6.4 Legend All Shares now or hereafter owned by the Shareholders shall be subject to the
provisions of this Agreement, and the certificates representing the Shares shall bear the following legend: 
 The sale, transfer or
encumbrance of this certificate is subject to a Shareholders Agreement among SolarDiesel Corporation (the “Company”) and its shareholders (the “Agreement”). A copy of the Agreement is on file in the office of the Secretary of the
Company. The Agreement, among other things, restricts the transfer of the shares of capital stock evidenced by this certificate and provides for an irrevocable purchase option and a buy/sell agreement and other right and obligations allowing these
Shares to be purchased in the first instance by other holders of such Shares or the Company, and as an integral and inseverable part of these rights created and associated with the issuance of these shares, such purchase option and buy/sell right
are superior to any rights attempted to be granted to any non-shareholder or third party in the shares represented by this certificate. In the event of any attempt to transfer or an unauthorized transfer of the shares represented by this
certificate, these shares shall become non-voting and this certificate subject to unilateral cancellation. In the case of a Permitted Transfer, the holder of the Shares, by accepting this certificate, agrees to be and is bound by all terms and
conditions of the Agreement, whether or not the Permitted Transferee has reviewed, received or has access to a copy of the Agreement or has any knowledge of its terms. 

 6.5 Permitted Transfers. 
 6.5.1 Each Shareholder shall have the right to Transfer all or a fractional portion of his, her or its Shares (a “Permitted Transfer”) to
any Person or Persons ( a “Permitted Transferee”) if and only if: 
  

	 	(a)	such Transfer is to an entity 100% wholly owned and controlled by a Shareholder and that remains 100% owned and controlled by a Shareholder. A Permitted Transfer may be made without
the consent of any other Shareholder, provided that and expressly conditioned on the following: 

  

	 	(i)	the Shareholder desiring to make a Permitted Transfer, gives at least Ten (10) Business Days prior notice of the proposed transfer and identifies the Permitted Transferee and
provides written evidence that the Permitted Transferee is 100% wholly owned and must remain 100% wholly owned by the Shareholder transferor; and 

  

	 	(ii)	the transferee of the Permitted Transferee executes a Joinder Agreement substantially in the form of Exhibit “K” and such Permitted Transferee causes to be paid all
reasonable expenses of the Company in connection with the Transfer; and 

  

	 	(iii)	the Company shall have received: (A) an opinion of counsel satisfactory to the Company and its counsel that registration is not required for such Transfer under the Securities
Act or under any applicable state securities laws and that such Transfer will not be in violation of the Securities Act or applicable state securities laws or any rule or regulation promulgated thereunder and/or (B) such other documentation
reasonably requested by the Board in connection with the Transfer. 

  

	 	(b)	 A Shareholder may pledge any or all of his, her or its Shares now or hereafter owned by such Shareholder or grant a security interest therein to secure the
indebtedness of such Shareholder so long as such indebtedness was incurred for the sole purpose of paying into the Company any Additional Required Capital or Additional Discretionary Capital or for the purpose of refinancing indebtedness incurred
for such purpose; provided, however, that any pledgee shall acquire only a security interest in such Shares entitling such pledgee to the proceeds from any sale of such Shares made in compliance with the terms of this Agreement and shall not acquire
title to such Shares or any other 

	 	 
rights incident thereto. The pledge agreements or other related financing agreements of any Shareholder shall be subject to and acknowledge the rights of the
Company and the other Shareholders set forth herein, including the absolute right to cance pledged shares as provided in Section 6.6.5 herein. 

 6.6 Default Purchase in Case of Unauthorized Transfer 
 6.6.1 Involuntary Transfer of Shares.
In the event of a proposed involuntary Transfer of Shares by a Shareholder caused or suffered by operation of law, according to applicable law or mandated by a judicial order (including by not limited to, any Transfer of Shares or other right to
take possession, control or right to sell shares held by a trustee in bankruptcy, creditor under a non-judicial right or power of sale, receiver, custodian, Sheriff, Clerk of Court or similar official or a purchaser at any creditors’, statutory
or court sale), (i) the transferor(s) shall provide timely written notice of such Transfer to the Company and (ii) the Company and then the Non-Selling Shareholders shall have an option to purchase all or any portion of the Shares owned by
such transferor Shareholder in accordance with Section 6.6 hereof. 
 6.6.2 Trigger – Upon the occurrence of any attempted
Unauthorized Transfer or proposed Involuntary Transfer under Section 6.6.1 the Purchase Option rights under Section 6.2 and the procedural rights under this Section are triggered and exercisable. The Default Purchase Rights under this
Section shall be exercised by any other Shareholder or the Company within 60 days of the Company or a Shareholder obtaining Actual Notice of the Unauthorized Transfer or Involuntary Transfer. 
 6.6.3 Purchase Option for Non-Selling Shareholders. After receipt by the Non-Selling Shareholders of Actual Notice of an Unauthorized Transfer or
Involuntary Transfer, then within 45 day after receipt of such Actual Notice of the Unauthorized Transfer or Involuntary Transfer, the Non-Selling Shareholders may exercise the Default Purchase rights granted hereunder and purchase all or a portion
of the shares subject to the Unauthorized Transfer or Involuntary Transfer or any re-issuance thereof in accordance with the provisions of Section 6.6.6 and 6.6.7. 
 6.6.4 Purchase Option for Company. If the Non-Selling Shareholders do not elect to exercise their Default Purchase Rights to purchase all of the Shares subject thereto the Company, within sixty (60) days
may exercise the Default Purchase Rights set forth herein to purchase all of such remaining Shares subject to an Unauthorized Transfer or an Involuntary Transfer, or any re-issuance thereof in accordance with the provisions of Section 6.6.6 and
6.6.7. 

 6.6.5 Actions to Effectuate Default Purchase. The Company is authorized to take all necessary
action to effectuate the Default Purchase Rights of the Shareholders and the Company and to allow the Company or Shareholder to obtain the Shares subject to an Unauthorized Transfer or Involuntary Transfer. These actions include, but are not limited
to the cancellation, without any legal or administrative proceeding and as a contractual right and requirement hereunder, of the Shares subject to the Unauthorized Transfer or Involuntary Transfer and the re-issuance of an equivalent number of
replacement Shares to the Shareholder or the Company exercising Default Purchase Rights under this Section. 
 6.6.6 Default Purchase Price
and Terms. Any purchase of the Shares subject to a Default Purchase under this Section shall be purchased from the Shareholder making the Unauthorized Transfer or suffering an Involuntary Transfer or any unauthorized transferee for a price equal
to multiplying the number of shares subject to the Unauthorized Transfer or Involuntary Transfer times the then existing Agreed Value, or if none the Appraisal Value for a Share of the Company at the time of the Unauthorized Transfer or Involuntary
Transfer, less a 20% Default Purchase Right. This purchase price shall be payable 10% down and by delivering a non-recourse promissory note for the balance of the purchase price, bearing interest at the then prime rate of Bank of America, but not to
exceed 8% and calling for payments based on 90% of the purchase price, payable .8% per month, plus simple interest at the stated interest rate on any outstanding unpaid balance. 
 6.6.7 Closing. The Closing on the Default Purchase Right provided herein shall occur at the Company’s primary business office, no later than
180 days after the Shareholder or the company receive Actual Notice of any Unauthorized Transfer or Involuntary Transfer, 
 6.7 Voluntary
Buy/Sell. The Shareholders desire to cooperate and work together to make the Channahon Facility and related operations of the Company successful, but recognize that it may be possible to reach an impasse in voting on corporate governance or
other business matter. The Shareholders do hereby waive any right to partition or seek a court ordered dissolution of the Company or any similar remedies and do hereby adopt the buy/sell rights set forth herein as their exclusive rights and remedies
in the event the Deadlock on any material Shareholder vote. 
 6.7.1 Deadlock – The Shareholders agree that in the event a
Deadlock exists on any material matter regarding the Company or its operations, they shall discuss all matters fully and completely and use their Best Efforts to cooperate and fully resolve the disputed matter in the best interest of the Company and
all Shareholders. If the Deadlock persists for ten (10) Business Days, then any Shareholder shall have the right to issue a Deadlock Notice. A copy of the Deadlock Notice shall simultaneously be provided to the Company’s outside general
counsel. 

 6.7.2 Mandatory Mediation – Upon the issuance of a Deadlock Notice, the Company’s
outside general counsel shall arrange an immediate mediation with a dis-interested mediator, of such counsel’s sole choice, provided that the selected mediator has at least 5 years experience with public and private company corporate governance
matters and if possible knowledge and experience in the bio-fuels industry. The Shareholders agree to mediate the dispute in good faith and the mediation will proceed to a written resolution or impasse. The Shareholders mediation resolution or
impasse shall be immediately memorialized as part of the Company’s corporate records. If resolved, the Deadlock Notice shall be deemed cancelled. 
 6.7.3 Buy/Sell Notice – If the Mediation results in an impasse, then either Shareholder within 15 Business Days of the recording of such impasse in the Company’s corporate records shall be entitled to
give to the other a Buy/Sell Notice. The Buy/Sell Notice shall provide a price per share and detailed terms for a stock sale and provide that the Shareholder issuing the Buy/Sell Notice will either buy the other Shareholder’s shares or sell its
Shares to the other Shareholder for the price and terms set forth in the Buy/Sell Notice. The other Shareholder shall within twenty (20) business days respond in writing to the Buy/Sell Notice by electing to either sell its Shares to other
Shareholder, or buy the other Shareholder’s Shares on the exact and unmodified terms set forth in the Buy/Sell Notice. In the event the Shareholder receiving the Buy-Sell Notice elects to purchase the Shares of the Shareholder who issued the
Buy-Sell Notice, the written election notification provided herein shall be accompanied by a $25,000 closing deposit. In the event the Shareholder receiving the Buy/Sell Notice elects to sell its Shares, then within 48 hours of receipt of this
election, the issuing Shareholder shall deliver to the other Shareholder a $25,000 closing deposit. Only one Buy/Sell Notice shall be issued in the case of each Deadlock and that shall be the Buy/Sell Notice first placed in the hands of an overnight
mail or delivery service or reputable courier service with sufficient address and instructions for delivery to a Shareholder. 
 6.7.4 Non-Election – In the event neither Shareholder elects to break a Deadlock by
timely exercise of its Buy/Sell rights under this Section 6.7, by delivering a Buy/Sell Notice by the 15th Business Day after the recording of the
mediation impasse in the Company’s corporate records, then solely for purposes of the matter that is the subject of the Deadlock, voting on the subject shall be re-taken based on approval by a simple majority of Shares entitled to vote and
without consideration of any Super-Majority rights provided for hereunder. 

 6.7.5 Default – In the event the Shareholder electing or entitled to purchase the others
Shares under the Buy/Sell procedure described in Section 6.7.3 fails to timely close on the Buy/Sell, then the $25,000 closing deposit made by the other Shareholder shall be deemed forfeited and the other Shareholder shall be entitled to
purchase the shares of the Shareholder who failed to close within Sixty (60) days of the failed closing date. Alternatively, the Shareholder who did not fail to timely close may not elect to purchase the Shares of the Shareholder electing or
entitled to purchase share under the Buy/Sell procedure and retain the closing deposit. In such event, the Deadlock shall be resolved by a vote taken in accordance with the provisions of Section 6.7.4, 
 6.7.6 Closing. The closing of the purchase of Shares pursuant to this Section 6.7 shall occur on the date specified in the Buy/Sell notice,
but no sooner than 60 days after issuance of the Buy/Sell Notice, or if no closing date is so specified, on the sixtieth (60th) day following the issuance of the Buy/Sell Notice. The Closing shall occur at the office of outside general counsel
for the Company. At the closing, the following shall occur: 
  

	 	(a)	The Selling Shareholder shall deliver to the purchasing party the stock certificate or certificates representing all of the Shares to be sold by the Selling Shareholder to the
purchasing party, free and clear of all liens and encumbrances and properly endorsed by the Selling Shareholder, or accompanied by a duly executed stock power, to permit the transfer of said Shares on the stock records of the Company, and

  

	 	(b)	The purchasing party shall pay the purchase price set forth in the Buy/Sell Notice in cash or cash equivalent as provided in Section 6.7.7, less the $25,000 closing deposit it
has made, in accordance with the provisions of Section 6.7.3 hereof, and 

  

	 	(c)	The conditions set forth in this Section shall have been satisfied, and 

  

	 	(d)	Each of the parties to the transaction shall execute and submit such other documents as may be required to consummate the purchase and sale of the Shares. 

6.7.7 Payment of Purchase Price. 
  

	 	(a)	The purchase price shall be the total of any the cash payment due at closing and if applicable deferred payments as provided in the Buy/Sell Notice. 

	 	(b)	The purchase price shall be paid by the issuance and delivery by the purchasing party to the Selling Shareholder: 

  

	 	(i)	A cashier’s check or wire transfer to the account designated by the Selling Shareholder in an amount equal to the cash due at closing under the Buy/Sell Notice; and

  

	 	(ii)	If any part of the purchase price is deferred, the purchasing Shareholder’s recourse promissory note for the balance of the purchase price, if any, which shall be in
substantially the form set forth on Exhibit G. 

 6.7.8 Security for Payment. In the event that a portion or all
of the purchase price is paid pursuant to a promissory note in accordance with Section 6.7.7, the Shares being purchased by the purchasing party shall, at the option of the Selling Shareholder, be pledged to the Selling Shareholder to secure
the full payment of the purchase price pursuant to a Pledge Agreement, which shall be in substantially the form set forth on Exhibit L. 
 7. CORPORATE GOVERNANCE. 
 7.1 Day-to-Day Management: Except for Major Decisions and Major Expenditures as
provided below, as long as budget bench marks are met, the day to day management shall be provided by and under control of UGE personnel led by Tom Campone. 
 7.2 Appointment of Directors: UGE shall have the right to appoint two of the five Company Directors and EFTI shall have the right to appoint three of the five Company Directors. 
 7.3 Major Decisions and Major Expenditures. The Company shall not take any of the following actions without the affirmative Shareholder vote of
Shareholders holding at least 67% of the issued and outstanding shares of the Company stock: 
  

	 	a.	Entering into a contract with any Shareholder or their Affiliates; 

  

	 	b.	Dissolve the Company or cease Channahon Facility operations; 

  

	 	c.	Sell, exchange, lease, sublease, mortgage, pledge or Transfer a material amount of the assets of the Company (including without limitation the Channahon Facility);

  

	 	d.	Cause the Company to merge with or into any other company or purchase another business or entity; 

	 	e.	Enter into, modify, amend or waive any provision of this or any other agreement governing a transaction involving a conflict of interest between any Shareholder or an Affiliate
thereof and the Company or to which any Shareholder or an Affiliate thereof is a party; 

  

	 	f.	Make any capital expenditure or expenditure not in the ordinary course of the Company’s business (or incur any obligation by or on behalf of the Company of such nature) in
excess of $50,000 individually or, in the aggregate over the course of the Company’s fiscal year, in excess of $250,000 that is not specifically provided for in the Annual Budget adopted pursuant to Section 7.4 hereof;

  

	 	g.	Incur or refinance indebtedness in excess of $100,000; 

  

	 	h.	Remove or elect any Director designated by the other Shareholder as allowed hereunder; 

  

	 	i.	Change the nature of the business of the Company; or 

  

	 	j.	Amend the Articles, Formation Documents or otherwise take action to increase the number of authorized or issued shares, except as specifically provided for herein or issue any
Securities or any debt securities convertible into Securities. 

 7.4
Annual Budget. Prior to the beginning of each fiscal year, the President and Chief Executive Officer shall prepare or cause to be prepared a preliminary version of the annual business plan and the Annual Budget for the Company and shall submit
such preliminary plan and budget to the Board for its information no later than thirty (30) days prior to the commencement of the fiscal year covered by such preliminary plan and budget. Thereafter, after the President and Chief Executive
Officer has made or caused to be made such amendments, changes and additions to the preliminary plan and budget as the President and Chief Executive Officer deems appropriate to make it final, the President and Chief Executive Officer shall submit
such final version of the annual business plan and budget to the Board; provided, however, that the President and Chief Executive Officer shall submit such final plan and budget to the Board by the 15th day of the first month of the fiscal year covered by such plan and budget. The Board shall then meet to review and approve such final plan and Annual Budget, with such amendments,
changes and additions as it deems appropriate. Such final plan and budget must be adopted by the Board, and until so approved, the President and Chief Executive Officer will manage the affairs of the Company in accordance with the previous fiscal
year’s annual business plan and Annual Budget. Once the proposed annual business plan and budget is approved, the President and Chief Executive Officer shall have the authority to manage the affairs of the Company in accordance therewith. The
President and Chief Executive Officer shall also prepare or cause to 

 
be prepared and submit to the Board quarterly business reports promptly following the end of each fiscal quarter comparing actual results to the budget and
containing such other information as is necessary to understand the success or failure in achieving the objectives set forth in the applicable approved annual business plan and budget. 
 7.5 Organization Costs. All legal fees, other fees, costs and expenses incurred by or on behalf of the Company in connection with the Channahon
Facility as well as any initial marketing and management expenses in connection therewith, including reasonable travel and entertainment expenses and accounting and other costs and expenses incident thereto, except legal fees and expenses of the
individual Shareholders, whenever incurred shall be paid the Company. 
 8. TERMINATION OF THIS AGREEMENT. 
 8.1 Events. This Agreement and all restrictions on the Transfer of Shares created hereby shall terminate on the occurrence of any of the following
events: 
  

	 	(i)	The adjudication of the Company as a bankrupt, the execution by it of an assignment for the benefit of creditors or the voluntary or involuntary dissolution or receivership of the
Company; 

  

	 	(ii)	A single Shareholder becoming the shareholder of all of the Shares; 

  

	 	(iii)	The execution of a written instrument by the Company and all of the Shareholders who then own Shares which terminates this Agreement; or 

  

	 	(iv)	A Qualified Public Offering. 

 8.2 Effect. The
termination of this Agreement for any reason shall not affect any right or remedy existing hereunder prior to the effective date of its termination. 
 8.3 Arbitration. Except as set forth in Section 6.7.2 or this Section 8.3, all claims arising out of or related to this Agreement, or a breach hereof, that are not otherwise resolved by the parties by negotiation or
voluntary mediation shall be settled by binding arbitration in accordance with the procedures set forth in this Section 8.3. All arbitrations will be conducted in Tampa, Florida, or at another location mutually approved by such parties,
pursuant to the AAA Rules, by one arbitrator. The arbitrator shall be a lawyer who is disinterested in the controversy, shall be independent of the parties, shall have training and experience as an arbitrator and shall have a demonstrated reputation
for fairness and integrity as an arbitrator. The arbitrator is directed by this Agreement to conduct the arbitration hearing expeditiously after demand for arbitration has been filed with the AAA. 

 
Depositions shall be permitted only as deemed appropriate by the arbitrator, upon motion of the party seeking deposition discovery, but shall be limited to
no more than two (2) for each party. The parties to the arbitration will be entitled to conduct document discovery as deemed appropriate by the arbitrator. The arbitrator will resolve any discovery disputes. All parties hereto and the Company
agree that the arbitrator shall have the power to subpoena documents or parties as provided by law. The award of the arbitrator shall provide for an allocation among the parties of all costs and expenses of the arbitration on a basis that is just
and equitable under the circumstances and shall award reasonable attorney’s fees to the prevailing party. The arbitrator shall have no power to award punitive damages except to the extent authorized by any applicable statute. Notices of demand
for arbitration must be given in writing to the Company and the other Shareholders in accordance with Section 9.3 within a reasonable time after the claim has arisen but in no event later than the date when institution of legal or equitable
proceedings based on such claim would be barred by the applicable statute of limitations. The award of the arbitrator shall be in writing, shall be based on the evidence admitted and the applicable law as determined by the arbitrator and shall
contain a reasoned award for each claim. The award rendered by the arbitrator is final and binding on all parties, and judgment may be entered upon it by any court of competent jurisdiction. 
 8.4 Specific Performance. Each Shareholder and the Company recognizes that if he, she or it fails to perform, observe or discharge any of his, her
or its obligations under this Agreement, no remedy at law will provide adequate relief to the Company and the other Shareholders, as applicable. Therefore, the Company and the Shareholders, as applicable, are hereby authorized to demand specific
performance of this Agreement and are entitled to temporary and permanent injunctive relief, without being required to post any bonds, in a court of competent jurisdiction at any time when any Shareholder or the Company fails to comply with any of
the provisions of this Agreement applicable to he, she or it, in addition to monetary damages and legal remedies which may be awarded pursuant to such proceedings or pursuant to any arbitration pursuant to Section 8.3. To the extent permitted
by law, each Shareholder and the Company hereby irrevocably waives any defense that he, she or it might have based on the adequacy of a remedy at law which might be asserted as a bar to such remedy of specific performance or injunctive relief. For
the avoidance of doubt, any party may claim specific enforcement and/or injunctive relief in a court of competent jurisdiction and may request damages and other legal remedies as part of such proceedings; however, if a party is not claiming specific
enforcement and/or injunctive relief, then such claim shall be subject to the arbitration provisions of Section 8.3. 

 9. GENERAL PROVISIONS. 
 9.1 Governing Law. The interpretation, validity and performance of this Agreement shall be governed by the laws of the State of Florida without
regard to its conflicts of laws principles. 
 9.2 Remedies. The rights and remedies provided by this Agreement are cumulative and are
provided in addition to any other rights the parties may have by law, statute, ordinance or otherwise. 
 9.3 Notices. Any notice,
demand or communication required or permitted to be given by any provision of this Agreement shall be deemed to have been sufficiently given or served for all purposes if in writing and (i) delivered personally to the party or to an executive
officer of the party to whom the same is directed, (ii) sent by certified mail, postage and charges prepaid, return receipt requested, (iii) by overnight courier of national reputation or (iv) transmitted by facsimile, in each case
addressed to the address or facsimile number that is set forth in the books and records of the Company. Any such notice shall be deemed to be given as of (i) the date so personally delivered, (ii) if sent by certified mail, three business
days after the date on which the same was deposited in a regularly maintained receptacle for the deposit of United States mail, addressed and sent as aforesaid, (iii) if sent by overnight courier, the next business day and (iv) if sent by
facsimile, the date sent if a copy is also sent on such date by one of the means specified in subsections (i), (ii) and (iii). 
 9.4
Amendment. This Agreement shall not be altered, modified or changed, and no provision of this Agreement shall be waived, except by an amendment or waiver, as applicable, approved by all the Shareholders and a majority of the Directors.

 9.5 Binding Effect; Assignment. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their
respective successors, assigns, heirs and personal representatives; provided, however, that no portion of this Agreement or any of the rights or duties hereunder may be assigned by any party without the prior written consent of the other parties.

 9.6 Interpretation. All terms defined in the singular form shall include the plural and vice versa. Unless otherwise stated, all
sections and subsections referred to herein are sections and subsections of this Agreement. The headings of the sections and subsections in this Agreement are inserted for convenience only and are not intended to interpret, define or limit the scope
or content hereof or any provision hereof. The word “including” shall not be construed as limiting the immediately preceding general term or statement. All amounts payable hereunder shall be paid in US Dollars. Words used herein,
regardless of the number and gender specifically used, shall be deemed and construed to include 

 
any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires. Unless otherwise specifically provided,
any reference in this Agreement to “days” shall refer to calendar days and not business days. 
 9.7 Additional Documents.
Each party hereto shall promptly execute and deliver such additional documents as are reasonably required for the implementation of this Agreement, provided such documents are not inconsistent with the provisions hereof. 
 9.8 No Waiver. No omission or delay on the part of any party hereto in requiring a due and punctual fulfillment of the obligations hereunder by the
other parties hereto shall be deemed to constitute or be construed as a continuing waiver or as a waiver of other or subsequent breaches of the same or other obligations hereunder or as a waiver of any available remedy. 
 9.9 Entire Agreement; Conflict with Formation Documents. This Agreement, including the Exhibits hereto, and the Formation Documents executed by the
Shareholders (and the documents referenced therein) set forth the entire agreement and understanding among the parties with respect to the subject matter hereof and supersede all discussions and negotiations among the parties. It is expressly agreed
that whether or not the Formation Documents fully incorporate the provisions hereof, or any of them, the parties’ rights and obligations shall be governed by this Agreement, which shall prevail in the event of any ambiguity or any inconsistency
between this Agreement and the Formation Documents. 
 9.10 Counterparts. This Agreement may be executed in counterparts, all of which
shall be considered one and the same agreement. The exchange of copies of this Agreement and of signature pages by facsimile transmission or by electronic transmission in Adobe Acrobat format shall constitute effective execution and delivery of this
Agreement as to the parties and may be used in lieu of the original Agreement for all purposes. Signatures of the parties transmitted by facsimile transmission or by electronic transmission in Adobe Acrobat format shall be deemed to be their
original signatures for any purposes whatsoever. 
 9.11 No Partnership. Nothing contained herein shall constitute or be deemed to
constitute a partnership among the parties hereto, and nothing contained herein shall constitute any party an agent of any of the other parties hereto. 
 9.12 Severability. If any court of competent jurisdiction determines any provision hereunder to be prohibited or invalid or unenforceable under applicable law, such provision shall be ineffective only to the
extent of such prohibition, invalidity or unenforceability without prohibiting, invalidating or rendering unenforceable the remainder of the provisions of this Agreement. 

 9.13 No Third Party Beneficiaries. None of the provisions of this Agreement shall be construed to
be for the benefit of or enforceable by any Person other than the parties hereto and, to the extent permitted by this Agreement, their successors in interest. 
 9.14 Mutuality. This Agreement has been drafted and negotiated mutually by the parties, all of which have been represented by legal counsel, and any ambiguity herein shall not be construed in favor of one party
over any other on the basis of which party drafted all or any part of this Agreement. 
 Remainder of page intentionally left blank.
Signature page to follow. 

 THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH 
 MAY BE ENFORCED BY THE PARTIES. 
 IN WITNESS WHEREOF,
the Company and the Shareholders have executed this Agreement as of the Effective Date. 
  

									
	 COMPANY:
	 		 		 	
				
	SolarDiesel Corporation f/k/a EarthFirst Americas, Inc.	 		 		 	
					
	 By:
	 	 /s/ D. Massari
	 		 		 	  

	 Name:
	 	D. Massari	 		 		 	  

	 Title:
	 	Sr. Vice President	 		 		 	  

				
	 SHAREHOLDERS:
	 		 		 	
			
	 EarthFirst Technologies, Inc.
	 		 	Ultra Green Energy Corporation
					
	 By:
	 	 /s/ John Stanton
	 		 	By:	 	 /s/ Tom Campone

	 Name:
	 	John Stanton	 		 	Name:	 	Tom Campone
	 Title:
	 	Chief Executive Officer	 		 	Title:	 	PresidentMemorandum of Agreement - Orion Industrial Services Corporation

 EXHIBIT 10.2 
 Memorandum of Agreement 
 This Memorandum of Agreement (herein “Agreement”) is made this 6th day of August,
2007, by and between EarthFirst Technologies Incorporated., a Florida Corporation (herein “EFTI”) with its principal office at 3000 Bayport Drive, Suite 910, Tampa, Florida 33607, and its wholly owned subsidiary, World Environmental
Solutions Company, Inc., a Florida Corporation (herein “WESCO”), with its principal office located at the same address, and Orion Industrial Services Corporation, an Alabama Limited Liability Company,( herein “OIS”) with its
principal office at 2515 Leroy Stevens Road, Mobile, AL. 36696 EFTI, WESCO, and OIS are sometimes referred to herein as “the Parties”. 
  

	A.	Purpose 

 The purpose of the Parties in entering into this Agreement
is to form a business entity to, develop and sell “CAVD” technology in the form of proprietary modular units and operating systems and proprietary processes designed to recycle waste tire chips into valuable carbon and energy by-products.
(herein “Joint Venture”). The Joint Venture may be subsequently evidenced by a Corporation, LLC or such other formal business structure as the Parties may determine. All licensing revenue, royalties, carbon credits related value and unit
supply fees associated with the licensing and sale of Tire Processing Units shall accrue to the Joint Venture. 
 The Parties agree that this document shall
serve as an operating agreement for the Joint Venture until the company is formed and associated governing agreements documented. 
  

	B.	Definitions 

  

			
	Alpha Unit	  	The demonstration unit located at 2515 Leroy Stevens Road, Mobile, Alabama, 36695, currently owned by WESCO including apparatus and parts there associated therewith.
		
	Alpha Revamp	  	The significant modifications to the Alpha Unit required to be made to advance the CAVD design and performance to the next generation and “prove the technology”. The scope of the
modifications has been developed and a budget established for a project to make the modifications. The project has been named the Alpha Revamp. The funds to pay for the Alpha Revamp represent a major portion of the funds being raised in the initial
stages of the Joint Venture.

  

 Confidential 

			
		
	Alpha Revamp Final Funds	  	means advances to the Joint Venture, other than the Formation Funds and the Advanced Engineering Funds called for in the schedule attached hereto as Exhibit 1. These funds may be structured
as loans from the Parties to the Joint Venture repayable from profits of the Joint Venture.
		
	Ampacet	  	means a identified potential customer for purchase of carbon. Ampacet desires to have a third party construct Tire Processing Units, BETA or Serial Numbered Units capable of supplying 17.0 to
20.0 MMLB/YR of CAVD Carbon.
		
		  	Ampacet has indicated that if satisfied by Alpha Demonstration runs it will sign an agreement for the 17.0 to 20.0 mm lb/yr. Additionally, Ampacet has indicated that once the facility
supplying this carbon is operating it would be interested in ordering additional units that it will own and operate.
		
	Advance Engineering Funds	  	means funds provided by the Parties to the Joint Venture to allow the Alpha Revamp Designs to progress during a period before Alpha Revamp Final Funds are confirmed. These funds are included
in amount proposed by OIS for the Alpha Revamp Contract and as such shall be considered an advance against the fixed price contract between OIS and the Joint Venture.
		
	Beta Concept	  	Beta Concept is a term used in connection with a Tire Processing Unit to be sold to potential customers agreed to accept a developmental unit that does not represent fully developed and final
CAVD technology.

  

 Confidential 

			
		
	Beta Unit(s)	  	Beta Unit is the name given to a CAVD Tire Processing Unit built using the Beta Concept and that is expected to undergo future upgrades as the CAVD technology is refined. Such upgrades shall
be fully designed by the Joint Venture, using OIS and its affiliate Orion Engineering, for implementation by the Beta Unit purchaser at his sole cost.
		
	CAVD	  	means “Catalytic Activated Vacuum Distillation” and is the term WESCO has coined to describe the process and equipment for depolymerizing tires it has developed and is used in CAVD
Tire Processing Units.
		
	Carbon Black	  	means a commercially available array of carbon powder products used for tinting, reinforcement or other similar uses made from various processes (not pyrolysis) and sold into domestic and
international markets. Commonly referred to a “virgin carbon black”, it is available with ASTM specifications.
		
	CAVD Carbon	  	means the carbonaceous materials that result from pyrolysis of waste tire chips. It is a product of the joint venture technology. Its quality allows it to substitute for certain “virgin
carbon black” products, in some cases after further processing.
		
	Carbolytic Materials Company	  	(CMC) an identified potential customer who has competed substantially all of its due diligence for purchase of a BETA Unit. CMC has tested the CAVD carbon and confirmed it to be a replacement
for certain “virgin carbon blacks”.
		
		  	CMC has substantially reached a Master License Agreement with the Joint Venture to purchase a BETA Unit plus additional Serial Numbered Units.

  

 Confidential 

			
		
		  	CMC is a potential partner in the Joint Venture. See provisional agreements section for discussion of CMC’s possible participation in the Joint Venture Company.
		
	Joint Venture Formation Period	  	means the early operational period beginning with establishment of the legal Joint Venture entity, ending with the full funding and authorization of the Alpha Revamp project. The period is
expected to be not more than ninety days.
		
	Joint Venture Formation Funds	  	means initial capital paid by the Parties in accordance with each party’s ownership percentage. The funds are provided to pay legal fees associated with forming the business entity to
assume the Joint Venture agreed by the Parties and to pay for the first phase of the Alpha Revamp Design. The allotment of funds to the Alpha Revamp Advanced Engineering Funds represents funds in Alpha Revamp contract between OIS and the Joint
Venture. These borrowed funds will be replaced when the Alpha Revamp Final Funds are received by the Joint Venture.
		
	JV Technology Refinement Period	  	The time from authorization by the Joint Venture to proceed with the Alpha construction through to receipt of the first Serial Numbered Unit order or October 31, 2008 which ever comes
first.
		
	Purchaser	  	Any party who wishes to purchase a Tire Processing Unit
		
	Serial Numbered Unit(s)	  	Serial Numbered Unit is the name given to a Tire Processing Unit that has been designed to be constructed and operated on a full time commercial basis using CAVD technology and that are not a
Beta Unit.
		
	Signed Carbon Orders	  	means written commitments from customers to purchase CAVD Carbon or value-added products made from CAVD Carbon, when available from an end user. This may take the form of either “Letters
of Intent” or long term contractual agreements.

  

 Confidential 

			
		
	Tire Processing Unit	  	General name given to describe a single instance of CAVD unit for processing of waste tire chips. The unit is the “package concept” of inside battery limits elements and
capabilities that the Joint Venture will sell in a single instance. A Tire Processing Unit may also refer to as a Beta Unit or a Serial Numbered Unit.

  

 Confidential 

	C.	EFTI Recitals 

 EFTI has Technology 
 EFTI has spent over eight years developing its CAVD technology, which includes designs, patents issued and/or applied for, processes, operating methods and conditions, as
well as, other intellectual property and proprietary information. EFTI and certain of its subsidiaries over this time period have invested considerable funds to develop the CAVD technology and to build a demonstration unit referred to herein as the
Alpha Unit. EFTI/WESCO’s Alpha Unit is located and has been operated at 2515 Leroy Stevens Road in space now subleased from OIS. 
 EFTI and its wholly
owned subsidiary WESCO, have developed the Catalytic Activated Vacuum Distillation (“CAVD”) technology to process solid waste. Assisted by an OIS affiliate, EFTI/WESCO has successfully demonstrated the CAVD system for use in processing
rubber tire chips. 
 WESCO has obtained a full operating ADEM air permit for current CAVD operations and holds all other permits necessary to operate the
Alpha Unit on a full time basis. 
 EFTI Alpha Makes Carbon of High Value 
 The Parties acknowledge that they are familiar with the Alpha Unit and have spent great time and effort in due diligence on the Alpha Unit and its by-products, including the CAVD Carbon. The Parties agree that the
Alpha Unit has demonstrated the ability of EFTI/WESCO’s CAVD technology to process waste tire chips into CAVD Carbon that with and without additional processing becomes a suitable replacement for certain virgin carbon blacks. Such value added
carbon helps to make the CAVD Technology economically viable to certain customers that can use the CAVD carbon directly, customers that possess the skill to further process the carbon or who contract to sell that carbon to those who can. 

EFTI Technology Not Yet Commercial 
 EFTI acknowledges that, while
successful in processing tire chips into by-products, the Alpha Unit is in need of significant modifications to operate on a full-time commercial basis and at a nameplate design rate. EFTI/WESCO has requested and received assistance from OIS in
defining a path forward to design and construct modifications to the Alpha Unit allowing it to operate on a continuous, commercially acceptable basis that will satisfy the last of CMC's due diligence requirements to the purchase of a Beta Unit,
which is a 72 hour continuous run at or near rated capacity. EFTI, in recognition of OIS' contribution and in order to secure its continuing participation, on February 26, 2007 entered into an Alliance Agreement with OIS, providing in part,
that EFTI and OIS now share intellectual property ownership of the CAVD technology with OIS and defines OIS as that sole provider of modular Tire Processing Units to all its customers. The strategic alliance formed by the Alliance Agreement now
holds all CAVD technologies and 

  

 Confidential 

 
related intellectual properties of EFTI, WESCO, OIS and their affiliates, including but not limited to patents issued, pending and to be filed in the future
relating to CAVD technology. 
 EFTI Provisional Patent Application to be Amended 
 EFTI agrees that the recent emergency application for patent protection of the second stage reactor and associated vapor takeoff and carbon removal designs compiled by John Kateon shall be amended to reflect his role
as inventor and to add any and all specific claims any Party contributes. OIS and John Kateon agree to participate in the formation and finalization of Patent claims broadly referenced in the provisional patent application or determined to be
necessary to protect additional CAVD intellectual property. The application shall also be amended to reflect these items. Further, the provisional patent application and any resulting or other Patents now or hereafter developed shall be assigned by
their inventor(s) to the Alliance and then to the Joint Venture, for purposes as it relates to the processing of tire chips. 
 EFTI Sublease with OIS is
Home for Alpha 
 EFTI, through its subsidiary WESCO has a sublease with OIS for space at 2515 Leroy Collins Road in Mobile, Alabama in which WESCO now
maintain the Alpha Unit. EFTI and WESCO, maintain separate utilities services to the subleased space, current in all regards, including water service, natural gas service, electrical power, telephone, and waste removal. WESCO also commits that its
sublease is current and it will stay so until assigned to and assumed by the Joint Venture in accordance with the terms hereof. 
 EFTI Batch Reactor 

 EFTI has a “Batch Reactor” which is designed to process small, batch version of feedstock
through the CAVD technology. The Batch Reactor is currently located a Coastal Fabricators, Mobile Alabama. OIS affiliate, Orion Engineering pays monthly rent for the Batch Reactor to Coastal and bills EFTI monthly. EFTI agrees to remove the Batch
Reactor from Coastal Fabricators property and the ship same to Tampa or otherwise assume direct responsibility for paying Coastal for rent beginning July 1st, 2007. It further agrees to settle all past accounts with Orion Engineering related to the Batch Reactor. 
  

	D.	EFTI Agreements 

 OIS-EFTI Alliance Modified 
 EFTI agrees to revise the OIS Alliance Agreement to remove the “processing of waste tires” and assigning that aspect of the technology to the Joint Venture. In
doing so, EFTI and OIS agrees to transfer to the Joint Venture all rights they hold, including patents (granted or applied, and all future patents that may apply to this processing technology), regardless of where held, regardless of the form held,
related to the CAVD technology as it is used to process waste tire chips. 
  

 Confidential 

 WESCO Alpha Unit Title Transfer 
 WESCO joined by EFTI, agrees to transfer clear title to the Alpha Unit, AS-IS, in the condition it currently exists to the Joint Venture, free of any past or pending cost, encumbrances or liens. However, the legal
documentation to accomplish this shall take into consideration and shall effect preservation of the current ADEM air permit until it can be transferred or re-obtained by the Joint Venture. This is required because the Parties recognize that the
obtaining of this permit took almost two years to obtain and is essential to the intended operations in Mobile by the Joint Venture. EFTI understands that the Joint Venture shall assume all costs of further development or modifications to the Alpha
Unit, as well as all costs associate with any future operations thereof. The Joint Venture shall pay for removal and disposal of the Alpha Unit when it deems the unit to have no further value to the venture. EFTI agrees to remove and dispose of all
materials, present on the site, at its cost, including raw materials and residual products not accepted by the Joint Venture for its use. 
 EFTI
Ownership Percentage 
 EFTI agrees to a stated ownership of 50.0% of the Joint Venture, based upon all of its past contributions and upon the agreed
required contributions and advances. EFTI also agrees to make all agreed contributions and advances required by the signing of this Agreement, providing the agreed total of cash contributions and advances to be made after the execution of this
Agreement shall be $450,000.00 payable according to a phased schedule attached hereto as Exhibit 1. There shall be no required EFTI contributions or advances to the Joint Venture, except those described on Exhibit 1 unless the Joint Venture’s
Board unanimously votes to request additional amounts. 
 EFTI Formation Capital 
 EFTI agrees to pay in to the Joint Venture capital in the amount of $50,000.00 toward Joint Venture Formation Funds, within five days of the signing of this Agreement. 
 EFTI Payment of Advanced Engineering Funds 
 EFTI agrees to pay to the
Joint Venture its share of "Advanced Engineering Funds", equaling 50.0% of $70,000.00 or $35,000.00, within five days of the request by the Joint Venture. 
 The Parties agree that they intend to proceed forward even though they have not secured the required additional Alpha Revamp funding of $500,000 and that they will use their best efforts to promptly obtain such funds, but only in a manner
mutually agreed. 
  

 Confidential 

 The Parties understand that the $70,000 is part of the Alpha Revamp Final Funds. The Parties also agree that such funds
are required to keep the Alpha Revamp Design efforts progressing after the initial allotment of Formation Funds have been exhausted and if the Alpha Revamp Final Funds have not been received. The planned due date for the Parties to provide the
Advanced Engineering Funds is September 1, 2007, but The Joint Venture shall establish the final timing of receipt of these funds. 
 If determined
appropriate by the Joint Venture, the Advanced Engineering Funds and Alpha Revamp Final Funds may be structured as loans by the Parties to the Joint Venture, repayable pari passu from the first profits recognized by Joint Venture and prior to profit
distributions. 
 EFTI Resource Support 
 EFTI agrees, as
part of this Agreement and as part of its payment for its ownership in the Joint Venture, to support the Joint Venture by supplying strategic sales and operating personnel to the Joint Venture, to be assigned to the Joint Venture by EFTI, during the
Joint Venture Technology Refinement and Alpha Operation Periods. 
 EFTI Sublease to Remain with EFTI during Start-up 
 EFTI shall maintain and pay for the Sublease until such time that the Joint Venture may assume it, assumed to be at the end of the joint venture Start-up Period.

 EFTI interests in Ampacet Transferred to Joint Venture 
 EFTI agrees to transfer its interest in a business relationship with Ampacet to the Joint Venture and in doing so agrees not to work outside the structure of the Joint Venture to formulate an agreement with Ampacet would benefit EFTI
directly. EFTI has indicated that it employs a consultant who has established the Ampacet relationship. Such consultant has been and continues to be paid by EFTI on an “advance against commission basis” and where ultimately, said
consultant will be paid royalties of 2% of the total revenue received from Ampacet. EFTI it will be compensated for advances made to the consultant from the future royalties or other amounts received from Ampacet when paid. 
 Henceforth, all contact negotiations with Ampacet will be conducted through the Joint Venture Company. 
 EFTI working with Potential Investors to benefit of Joint Venture 
 EFTI is actively working with one or more a
potential investor group(s) to secure participation that would secure the all or part of the missing Alpha Revamp Funds ( fixed amount of $500,000.00) and possibly the Alpha Operating Funds (estimated amount of $250,000.00 ). EFTI has agreed to pay
to one such investor representative (Jeff Brenner) compensation equal to 10% of the funds raised. 
  

 Confidential 

 Further, EFTI has, added to the deal with Mr. Brenner EFTI Warrants, one warrant per net dollar raise with strike
price of $.07 per share. Other details of said agreement shall be made known to the Joint Venture as soon as available. The Joint Venture is not responsible for payment of any upside related to the exercising of said warrants. 
 Any incentives offered by EFTI to potential investors, their representatives or potential customers that have not been revealed and agreed to prior to signing of this
agreement shall be at EFTI’s sole cost. 
 EFTI agrees that no such incentives will be offered in the future without prior agreement of all Parties to
this Agreement and the eventual Joint Venture. 
 The Parties agree that its goal shall be to raise the missing Alpha Revamp funds without changing the
ownership percentages as they are shown herein. They also agree that if these funds are sought as an investment that will dilute the interests of the Parties that any to the Parties may elect to provide a sufficient portion of the funds to maintain
their current ownership percentage. 
 EFTI to Limit Future Independent Actions to Sell CAVD Units. 
 EFTI agrees that all its future efforts, post-signing of this Agreement shall be conducted within a structured effort managed by the Joint Venture. Such efforts shall
include solicitation EFTI or by third parties to offer funding to CAVD purchases, to purchase CAVD units, to purchase CAVD Carbon or other products or to participate in any deal that would result in any of these events coming to pass. 
 EFTI efforts are valued by the Parties and such restrictions as outlined here in are made not to discourage EFTI support of the Joint Venture. Rather, they are made to
assure alignment of all Parties on objective, facts related to performance of the CAVD Technology and the Joint Ventures intended role in the sale of such technology. 
 EFTI participation in Joint Venture customer deals is neither unexpected nor discouraged. However, EFTI agrees not structure such deals in a manner that reduces the Joint Venture interests in such deals below that
typically sought. Under no circumstance shall EFTI or its affiliates enter in to agreements that obligate the Joint Venture in anyway prior to reviewing such deals with the Joint Venture management and receiving full support for the deal.

  

 Confidential 

	E.	OIS Recitals 

 OIS Technology 
 OIS has expended considerable funds researching and developing its knowledge and designs of CAVD technology in general and specifically in a attempt to resolve open
design issues faced by EFTI and WESCO in the use of CAVD technology in both the Alpha Unit and future Tire Processing Units. OIS agreed to and entered into an Alliance Agreement with EFTI to combine the companies’ CAVD technologies,
intellectual property and capabilities to solve the remaining CAVD design issues and to take the technology forward to a commercial status for sale thereafter. Under the Alliance Agreement, OIS gained an exclusive arrangement to supply modular CAVD
Tire Processing Units for EFTI as well as a clear ownership interest warranting a share of fees when OIS did not supply the units. 
 OIS-EFTI Alliance
Modified 
 OIS agrees to revise the EFTI Alliance agreement to remove the “processing of waste tires” and assigning that aspect of the
technology to the Joint Venture. and in doing so OIS and EFTI agree to transfer to the Joint Venture all rights they hold, including patents (granted or applied and all future patents that may apply to tire processing technology) regardless of where
held, regardless of the form held, related to the CAVD technology as it is used to process waste tire chips. 
 OIS Alpha Proposal 
 OIS has developed specific plans to modify the Alpha Unit, once transferred to the Joint Venture. OIS will have a design and construction contract with the Joint Venture
for the Alpha Revamp at a fixed price of $1,450,000. Of this fixed price, OIS will contribute in-kind capital and/or loans if so structured the amount of $550,000. 
 The Parties all agree the terms of the Alpha Revamp contract shall be substantially in the form of the previous contract between WESCO and OIS, with an appropriately revised scope. The parties authorize the Joint Venture to execute the
Alpha Revamp contract with OIS, upon receipt of the Alpha Revamp Final Funding. 
 The Parties further hereby authorize OIS to begin the design work
associated with the subject contract, initially in an amount of $65,000.00 borrowed from Formation Funds and later if funded with Advanced Engineering Funds, which shall be used to acquire additional engineering services in the amount of $70,000.00.

 The Joint Venture shall under no circumstances exceed the limits of these authorizations or sign the subject Alpha Revamp Contract until all the Alpha
Revamp Final Funds are received. 
  

 Confidential 

	F.	OIS Agreements 

 OIS Ownership Percentage 
 OIS agrees to a stated ownership of 50.0% share of the Joint Venture, based upon all of its past contributions and upon the agreed required contributions and advances.
OIS also agrees to make all agreed contributions and advances required by the signing of this Agreement, providing the agreed total funds to be advanced or provided by in-kind contributions shall be $600,000.00 payable according to a phased schedule
attached hereto as Exhibit 1. (This is exclusive of and in addition to OIS obligation to pay for the deconstruction and removal of the Alpha Unit, if required, as provided herein.) There shall be no further OIS required contributions or advances to
the Joint Venture, except those described on Exhibit 1 unless the Joint Venture’s Board unanimously votes to request additional amounts. 
 OIS
Formation Capital 
 OIS agrees to pay in to the Joint Venture, capital in the amount of $50,000, within five days of the signing of this Agreement.

 OIS Payment of Advanced Engineering Funds 
 OIS agrees
to pay in to the Joint Venture the "Advanced Engineering Funds", 50.0% of $70,000.00 or $35,000.00, within five days of the request by the Joint Venture. 
 The Parties agree that no such call for additional capital or advances will be made until the Joint Venture has signed an agreement with a BETA Purchaser for purchase of a BETA Unit. 
 OIS Resource Support 
 OIS agrees, as part of this Agreement and as
part of its payment for its ownership in the Joint Venture, to support the Joint Venture by supplying technical and craft personnel to support the revamped Alpha Unit start-up , including John Kateon to lead the Joint Venture for a period beginning
with its formation for a period of five years or until such time that the parties agree unanimously to change his role. During the Joint Venture Technology Refinement Period the cost of John’s participation will be borne by OIS. 
 OIS further agrees to supply technical and craft personnel to the Alpha Operations Period. 
 OIS commits to development of Operating Procedures at its cost and, if agreed, to supply personnel to manage operations if the Joint Venture Company does not reach an agreement with CMC for supply of these serves in
exchange for carbon. 
  

 Confidential 

 OIS Alpha Revamp Contract 
 OIS and the Joint Venture shall enter into a contract for supply by OIS of the Alpha Revamp designs and construction, the scope to be defined in the contract, for a fixed price of $1,450,000.00 for the Alpha Revamp. Of this fixed price, OIS
will contribute in-kind capital and/or loans if so structured in the amount of $550,000.00. 
 OIS agrees to begin the work on the Alpha Revamp design and
engineering upon the signing of this Agreement and receipt of funds in the amount of $65,000.00 from the Joint Venture Formation Funds. OIS agrees to provide a weekly update of progress on designs to the Parties. 
 OIS will commit to completing the designs upon receipt of the Advanced Engineering Funds in an amount of $70,000.00. Upon completion of designs, if the Alpha Revamp
Final Funding has not been received, the signing of the Alpha Revamp Contract between the Joint Venture and OIS will delayed until such time as Alpha Revamp Final Funds are received by the Joint Venture. 
 The contract for construction of Alpha Revamp will not be signed until the full amount of funds required have been received and are deposited in the Joint Venture
account including as a minimum the remaining funds due from EFTI, $400,000 less amounts paid for the partition wall and Advanced Engineering, and all of the $500,000 to be collected from a Purchaser or an investor. 
 OIS further agrees that it shall start construction of the Alpha Revamp, pursuant to the Contract schedule upon receipt of Alpha Revamp Final Funding, which is
anticipated by the end of September. If these funds are received by the end of September, OIS anticipates the ability for an end of December Mechanical Completion of construction on the Alpha Revamp. A critical path method schedule, which shall be
made part of the Alpha Revamp contract with OIS, will be updated and provided to the Parties within three (3) business days of Alpha Revamp Final Funding. 
 OIS Master Agreement/Contract 
 OIS and the Joint Venture shall enter into a Master Services Agreement, a contract form to govern the supply
of all future Tire Processing Units. The form of the agreement shall be substantially that of the previous contract agreed to between OIS and WESCO for the design and construction Alpha Revamp (contract now nullified). 
 The Joint Venture shall solicit a proposal for the supply of each unit from OIS and issue a separate order with case specific payment terms and schedule. 
  

 Confidential 

 OIS to Pay for Removal of Alpha if Joint Venture Fails 
 OIS agrees to pay all costs for disposal of the Alpha Unit if the Joint Venture fails after successfully emerging from its Technology Refinement Period. Such commitment
is made only if the Joint Venture is unable to pay for the disposal. This commitment excludes any materials including feedstock, by-products or wastes. 
  

 Confidential 

	G.	Joint Recitals and Agreements 

 Joint Venture Purpose Further
Defined 
 The Parties agree that the purpose of the Joint Venture is to takeover the CAVD Technology for the purposes of processing tire chips in its
current state, owning it and further developing it to produce a working Alpha Unit, using the knowledge gained to continue the technology development and initiate its licensing and module sales using the Beta Concept, using this concept to secure
the Beta Unit order from an informed Purchaser. After the Beta's are in operation and additional data is obtained, a point substantially marking the end of the technology development, the Joint Venture shall continue to develop the designs for the
commercial version, then commencing the sales of these units by the Joint Venture., in a restructured Joint Venture organization that has direct employees, paid by the company, ending the payment of personnel by the owner organizations during the
Joint Venture Technology Refinement and Alpha Operations Periods. 
 Joint Venture Company Name – Renewable Carbon Technologies Company

 The Parties agree to name the Joint Venture, Renewable Carbon Technologies Company. The company will be a limited liability company formed in the State
of Delaware with its principal office located at 2515 Leroy Stevens Road, Mobile, Al 36695. 
 Joint Venture Responsible for Technology Development 

 The Joint Venture shall henceforth be responsible for any further design, modification or refinements to the technology beginning with the planned Alpha
Revamp. The parties, in forming the Joint Venture, have provided for the funding required to perform agreed to modifications to the Alpha Unit intended to resolve its operational issues. It has not provided for funding for Beta Unit or later
designs, assumed to be paid for by associated customer orders. 
 The Tire Processing Units development efforts shall be lead by John Kateon until such time
that he and the Parties agree that resources are in place to assume this role. 
 The Parties understand that the proposed Alpha Revamp scope is not assured
to fix all remaining issues with the Alpha Unit design. They agree that if required by the Joint Venture that additional funds will be provided, structured in a manner similar to the Alpha Revamp Final Funding. If the Joint Venture determines that
additional funds are needed and it decides to request such funds from the Joint Venture owners the amounts collected shall be apportioned according to ownership among all owners. 
 The Parties also understand that several scope items remain to be defined including site drainage and containment, fire protection and electrical classifications. These issues are safety and environmental issues that
may result in a need for additional funds to build new facilities before the Alpha Unit will be allowed to operate on a full time basis. 
  

 Confidential 

 The Beta Concept - Developmental Commercial Unit 
 The Parties agree that the current state of the technology, the current configuration of the Alpha and the likelihood that a Beta and/or Commercial Version will be different suggests that the Joint Venture can not
assume it can move from the Alpha directly to commercial units. This fact requires that a Beta version be developed to bridge from the Alpha Unit to the Serial Number Units. The Beta Concept is a term used to convey to early Purchasers that the
technology will remain developmental in this first post Alpha version. 
 Joint Venture Formation Period 
 The Joint Venture shall commence its operation immediately its formation at the earliest opportunity after the signing of this agreement. The legal formation of the Joint
Venture shall mark the start of the Joint Venture Formation Period to a time that either the Alpha Unit Revamp Scope and associated Funding are secured and approved by the managing directors. 
 The parties agree that they are beginning the Joint Venture with insufficient funds to accomplish all of the activities deemed required to Revamp the Alpha Unit and to
operate it for a year. Certain events are required before they will increase their funding to cover these events. The events required include: 
 a) Securing
additional Alpha Revamp Funds from other sources in the amount of $500,000. The anticipated source is an identified potential Purchaser who will provide the funds to secure preferred terms in a Master Purchase Agreement to purchase several tire
Processing Units. Such terms may allow purchase of two BETA units or provide in a separate agreement contract from a buyer of CAVD Carbon. The terms of this funding as equity, loan or otherwise must be agreed to prior to any commitment is made for
obtaining these funds. 
 The Parties agree that if the deal structured to secure the additional Alpha Revamp Finding is such that the Joint Venture must
operate the Alpha beyond a limited demonstration that the deal will be structured to add the operating funds deemed required to run the Alpha for the period desired. 
 b) Securing an order for the Beta Unit, subject to Alpha demonstrations that follow its revamp. We anticipate a contract that includes supply of a Serial Numbered Unit as well. Timing may require start of work on the
second unit before the BETA is in operation. If this is the case the Joint Venture will either make this second unit a BETA or become responsible for its upgrade in the field as required. 
  

 Confidential 

 The Parties agree that the above events should occur within three months of formation of the Joint Venture. Failure of
these events to occur will result in a re-evaluation by the parties, either of which may then elect to stop its participation in the Joint Venture. If one party wishes to end its participation that party will transfer or sell its interest to the
other party at an agreed upon price not to exceed the funds provided by that party plus expenses incurred since the formation of the Joint Venture. 
 c)
Funding of Alpha Operations is understood by the Parties as a critical step still ahead. No funds are currently budgeted to run the revamped Alpha including testing after the revamp is complete. The Parties agree that such funding for testing may be
jointly and unanimously agreed upon as provided by the Joint Venture. They also agree to allow either or both parties to supply such funds as a loan to the Joint Venture. 
 The Parties also agree that there is no plan to operate the Alpha for an extended run such as the one previously planned to supply “CAVD Carbon” to a Purchaser or to a CAVD Carbon buyer. Any such extended
run would require increased Joint Venture management time by the Parties and both agree that it requires separate and additional funding. The Parties agree to entertain all proposals including such as CMC’s original proposal to pay for and
manage the Alpha operations in order to secure the CAVD Carbon for its use. 
 The Parties agree that it will seek funds to operate the revamped Alpha and in
particular the Parties agree that funds must be raised by the parties or secured from interested third parties before an extended run will be attempted. The Parties acknowledge that an extended run without participation of a third party to manage
operations shifts the burden of management and all costs of such operations to the Joint Venture. The Parties agree that no offer to run the Alpha will be made that requires the Parties to fund such operations without prior approval of all Parties.
Any such agreement will be planned, budgeted and funds secured prior to signing any agreement to operate. 
 Joint Venture Technology Refinement Period

 The Parties agree that following its authorization to revamp the Alpha it shall be considered to be in a Technology Refinement Period. During this
period the parties agree to fund separately any develop efforts outside those authorized as part of the Alpha Revamp with all such funding requiring unanimous agreement of the managing directors. 
 The Parties agree while the Alpha operations are essential to the continued development of the technology that its operation for research and development purposes will
be limited and each such period of operation must be planned, budgeted approved and funded by the Joint Venture Company with unanimous consent of the managing directors. 
  

 Confidential 

 The Parties also understand that early Beta Unit operations are key to finishing the technology development to a
commercial level. They agree to support and fund reasonable, planned access to Beat Units during the early operations if not paid for as part of the BETA Unit purchase. 
 The Parties agree to limit the number of Beta Units sold to two unless changed by unanimous agreement of the managing directors. 
 The Technology Refinement Period shall be deemed to have ended when the Joint Venture receives and accepts a Serial Numbered Unit Purchase order and is in receipt of its initial payment of the Serial Numbered Unit Supply Fee. 
 The Parties agree that the owners of the Joint Venture may meet anytime after the initiation of the Alpha Revamp work to cease operation of the Joint Venture at any time
that any of the Parties feel further expenditures will not result in orders for BETA or Serial Numbered Units. 
 The Parties agree that the Technology
Development Phase shall end one year from the authorization to proceed with the Alpha Revamp construction, but not later than October 31, 2008. At that time, the Parties may agree to extend the external support of Technology Refinement or to
require it be paid henceforth by the Joint Venture Company. 
 The Parties agree that the “external funding of personnel” may end before the
deadline for ending the Technology Refinement period if Joint Venture is capable of paying for these costs. 
 The Parties agree that after the end of the
Technology Refinement Period that the Joint Venture will assume the cost its management staff. 
 Alpha Operations Period 
 The Parties agree that it is desirable to operate the Alpha after its revamp for an extended period and that it is likely that demonstrations will be required during the
period prior to Beta Unit operations after which potential purchasers may witness BETA Unit’s in operation. 
 The Parties agree an order for the Alpha
produced carbon is required for a sustained run. The cost of such a run shall be the responsibility of the Joint Venture, supported by its owner organizations with personnel paid for by the Joint Venture Company. During such extended runs brief
periods will be allotted to continue testing as deemed needed by the Technology Refinement process of the Joint Venture Company. 
 The Parties agree that
the Joint Venture may seek and sign such agreements that it may deem appropriate to secure the participation of potential customer of BETA or Serial Numbered Units in operating the Alpha, providing to such customers limited amounts of 

  

 Confidential 

 
products for their testing and further assessment by their customers. Any such participation shall not relinquish the Joint Venture’s ultimate
responsibility for the operation of the Alpha. All such relationships shall be governed by written agreement outlining objectives, roles and costs borne by each party. 
 Joint Venture Organization 
 The Parties agree that the joint venture shall be lead by John Kateon, who will be named
President, CEO. EFTI/WESCO employees performing activities for the Joint Venture during the Joint Venture Technology Refinement and Alpha Operations Periods will report to Mr. Kateon. 
 The Parties also agree and hereby designate the following representatives to serve as the initial Managing Directors of the Joint Venture: 
 OIS – John Kateon 
 EFTI/WESCO –
Domenic Massari 
 The parties agree that John Kateon shall be responsible for Joint Venture Operations during his tenure as President which commence with
the formation of the Joint Venture Company and continue for a period of five years unless altered by unanimous agreement of the Parties. They further agree that Domenic Massari shall be a close associate who will assist in formulating the Joint
Venture business plan and strategies, provide direct support to sales, and assist in drafting of legal documents such a Master License Agreements, Tire Unit Supply Contracts, Non-Disclosure Agreements or other agreements as deemed needed, Domenic
shall, at his discretion use EFTI legal resources to support his efforts. 
 These two representatives will be empowered to commit the Joint Venture in
agreements, contracts or other such arrangements deemed necessary to execute an agreed to business plan under clear terms limiting the debt or future liability of the Joint Venture 
 The Parties agree that payment of costs associated with the supply of support personnel by the Parties is expected to end with the Technology Refinement and Alpha Operations Periods. Thereafter, it is expected that
those continuing to provide support shall either become employees of the Joint Venture Company, paid directly by the Joint Venture or be given contracts for services to be paid for indirectly by payment to the Parties that employ them. Neither party
shall seek compensation for support provided during the Technology Refinement or Alpha Operations Periods. 
 Board of Directors 
 The two managing directors named above shall be permanent members of the Board of Directors of the Joint Venture with others named as discussed elsewhere. 
  

 Confidential 

 Officers of the Joint Venture 
 The Parties agree to name the following as officers of the Joint Venture when the legal entity is formed: 
  

			
	John L. Kateon	  	President, CEO
	Domenic Massari	  	Executive Vice President, Secretary
	Frank Barker	  	Chief Financial Officer, Treasurer
	James Tew	  	Vice president Technology

 Joint Venture Sales Efforts 
 The Parties agree only the Joint Venture shall have the authority to enter into an agreement to provide a BETA or Serial Numbered Unit. Final negotiation of such deals must be left to Managing Directors who agree to
review all such deals before finally committing the Joint Venture. 
 The Parties agree that any efforts by the employees of the parent companies will be
considered informal and that no agreements reached by them associated with purchase of CAVD Tire Processing Units will be binding to the Joint Venture. The Parties agree that agreements made with funding organizations or individuals, agreements with
buyers of CAVD products or any such deal that may impact the ability of the Joint Venture to secure the interests in Tire Process Units it may sell will not be binding on the Joint Venture. 
 EFTI Sublease Assumption after Start-Up 
 The parties agree that the
Joint Venture shall “assume” EFTI's sublease at the end of the Joint Venture Technology Refinement Period if the Parties proceed with the Joint Venture. 
 The Parties agree that if a third party agreement is reached that covers substantially all of the operating costs for the period of Alpha operations prior to and through the end of the Technology Refinement period that the Joint Venture
will cover the sublease rent for the WESCO facilities as one of the costs to be paid by the third party company. 
 Joint Venture to Pay Operating Cost

 The parties agree that the Joint Venture shall “assume” responsibility for payment of all utilities effective the data of mechanical
completion of the Alpha Revamp, paying all costs associated with the operation of the Alpha through to the end of the Joint Venture Start-up Period or as long as the joint venture management agrees that development efforts by the Joint Venture
should continue. 
  

 Confidential 

 Joint Venture to Obtain Permits 
 The Parties agree that permits held by WESCO shall be transferred or re-applied for by the Joint Venture. If timing does not support the Revamped Alpha operation in October then the transaction shall be structured so
that operations may legally commence and be continued under WESCO's permits. The Joint Venture shall be responsible for all operational events and shall do so in full compliance with the applicable operating permits. 
 Joint Venture Formation as Delaware LLC 
 The Parties agree to
formalize their Joint Venture upon receipt of the Formation Funds, in the amount of $100,000 paid by the Parties in accordance with their ownership percentage by formation as a Delaware limited liability company headquartered at 2515 Leroy Stevens
Road, Mobile, AL 36695. The Parties agree to name the Joint Venture, Renewable Carbon Technologies Company, LLC. And that they shall negotiate in good faith and execute an LLC Operating Agreement consistent with the terms of this Agreement.

 The Parties agree that the Joint Venture shall establish a Board of Directors consisting of five members, two selected by EFTI, two selected by OIS and
one selected jointly. The Parties further agree that a unanimous Board vote is required to change the level of funding of the Joint Venture as specified herein. 
 MOA Signing to Trigger Alpha Revamp Design 
 The Parties agree, that upon signing of this Agreement and receipt of the Joint Venture
Formation Funds that it shall immediately enter into a or otherwise authorize OIS to begin design efforts on the Alpha Revamp allotting $65,000.00 of the Formation Funds to this work. Such work shall continue until the allotted funds are expended or
until such time that the Joint Venture may elect to stop said work. Upon final funding of the Alpha Revamp the Formation Funds use to begin the Revamp Designs shall be replaced. 
 Events Set Timing of Continuation of Engineering Designs 
 The Parties agree that, if and when the Joint Venture has
authorized OIS to proceed with engineering and design, the Parties will agree upon the level of additional funding desired and pay in such amounts if unanimously agreed upon. Such amounts may be considered a loan against amounts payable toward the
Alpha Revamp work. 
 Events Set Timing of Final Alpha Revamp Funding 
 The Parties agree that the call for the Alpha Revamp Final Funds shall be timed to coincide with receipt of the additional Alpha Revamp Funds, the $500,000.00 from an outside source or other agreed funding mechanism.

  

 Confidential 

 Beta Order Delay to Cause Reassessment of Agreement 
 The Parties agree that if no Beta Unit Order is forthcoming within the three months of the Alpha Revamp being completed and the Alpha having demonstrated acceptable rate, reliability and products that the parties
shall be conduct a review and establish a mutually agreed upon path forward. 
 Amendments to this Agreement shall be published if any provisions or their
timing are changed. Any party may end its role in the Joint Venture at any time after three months of providing notice. 
 Failure to Provide Formation
Capital 
 Failure of any of the Parties to provide the Formation Capital shall nullify this Agreement in its entirety. This agreement shall expire on
twenty days from signing if any of the Formation Funds have not been received by that date. 
 Failure to Provide Alpha Revamp Funding 
 Failure of any Party to provide the Alpha Revamp Funds according to the agreed-to schedule in Exhibit 1 shall result in a call for a Board meeting to determine a path
forward that includes seeking alternative sources for funds and possible equitable reallocation of ownership shares to the funding source if necessary. 
  

	H.	Provisional Agreement 

 The Parties agree that if CMC, who had been
included in early discussions to form the Joint Venture Company, returns in a timely manner requesting once again to participate, that the Parties shall work to adjust the agreement in a mutually acceptable way to accommodate CMC’s
participation as an owner of the Joint Venture. 
 If CMC returns before the Joint Venture is formed, the Parties agree that the agreement form is
substantially that reached before CMC decided to delay except that CMC may not be able to command a priority position in the Alpha supply of CAVD Carbon. 
 CMC’s interest was in operating the Alpha is to gain access to the CAVD Carbon. It required a priority position in receiving the first 100,000 pounds of Alpha CAVD Carbon produced each month. Such priority position will be problematic
when a contract for CAVD Carbon supply is negotiated with Ampacet or such other carbon customer. It is anticipated that CMC will loose its priority position if it returns after negotiations with another carbon customer have started. 
  

 Confidential 

 MOU Authorization Signatures 
 IN WITNESS WHEREOF, the parties hereto have executed this Memorandum of Understanding on the date set forth above. 
  

			
	Earth First Technologies Inc.	 	
		
	 /s/ John Stanton
	 	
	John Stanton, President and CEO	 	
		
	World Environmental Solutions Company, Inc.	 	
		
	 /s/ Domenic Massari
	 	
	Domenic Massari, Sr. V.P.	 	
		
	Orion Industrial Services Corporation	 	
		
	 /s/ John L. Kateon
	 	
	John L. Kateon, President	 	

  

 Confidential

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]