Document:

CONFIDENTIAL

                                License Agreement
                                     Between
                              Syntroleum Australia
                              Licensing Corporation

                                       and
                            Commonwealth of Australia

                                LICENSE AGREEMENT
                                -----------------

     THIS  LICENSE  AGREEMENT  is  made  and  entered into as of this 3rd day of
August,  2000  by  and  between  Syntroleum  Australia  Licensing Corporation, a
Delaware  corporation  ("Licensor"),  and  the  Commonwealth  of  Australia
("Licensee").
                                    RECITALS
                                    --------
     A.     WHEREAS,  Licensor has entered into the Syntroleum License Agreement
with  Syntroleum pursuant to which Licensor has licensed from Syntroleum certain
patent  rights  and  technical information relating to a Conversion Process; and
     B.     WHEREAS,  under  the provisions of the Syntroleum License Agreement,
Licensor  has the right to grant a sublicense to Licensee to use Licensor Patent
Rights  and Licensor Technical Information in practicing of a Conversion Process
in  Licensed  Facilities  in  the  Licensed  Territory;  and
     C.     WHEREAS,  Licensee  desires  to  enter  into a non-exclusive limited
license  with  Licensor  to  acquire the right to use Licensor Patent Rights and
Licensor  Technical  Information.
     NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth  in  this  Agreement,  the  Parties  agree  as  follows.
                                 1.  DEFINITIONS
                                 ---------------
     The  following  terms  (whether  or  not  underscored)  when  used  in this
Agreement,  including its preamble and recitals, shall, except where the context
otherwise  requires,  have  the  following meanings (such meanings to be equally
applicable  to  the  singular  and  plural  forms  thereof).
1.01     "AFFILIATE"  means, with respect to each Party, any Person in which the
Party  or  its  parent  company(ies)  (one or more parent companies in an upward
series) shall at the time in question directly or indirectly own a fifty percent
(50%)  or  more interest in such Person.  It is understood that:  (i) a Party or
its  parent company(ies) directly owns a fifty percent (50%) or more interest in
a  Person  if that Party or its parent company(ies) individually or collectively
hold(s) shares carrying fifty percent (50%) or more of the voting power to elect
directors  or  other  managers  of  such  Person  and (ii) a Party or its parent
company(ies)  indirectly owns a fifty percent (50%) or more interest in a Person
if  a  series of companies can be specified beginning with a Party or its parent
company(ies),  individually  or  collectively,  and  ending  with such Person so
related  that  each  company  of the series, except such Person, directly owns a
fifty  percent  (50%)  or  more  interest  in  a  later  company  in the series.
1.02     "AGREEMENT"  means  this  License  Agreement.
1.03     "BARREL"  means  forty-two (42) gallons of two hundred thirty-one (231)
cubic  inches  each,  measured  at  sixty  degrees Fahrenheit (60 F) and one (1)
atmosphere  pressure.
1.04     "CHAIN-LIMITING  CATALYST"  means  a  type  of  catalyst  for  use in a
Fischer-Tropsch  Reaction  the  primary  products  of  which  are  predominately
hydrocarbon  molecules  of twenty (20) or fewer carbon atoms which remain liquid
at  ambient  temperature  and  pressure.
1.05     "CONFIDENTIAL  INFORMATION"  means  information of Licensor or Licensee
disclosed  to  the  other  Party  under  this  Agreement, including any formula,
pattern,  compilation,  program,  apparatus, device, drawing, schematic, method,
technique,  know-how,  process  or  pilot  plant  data,  and  other  non-public
information  such  as  business  plans  or  other  technology that:  (a) derives
economic  value, actual or potential, from not being generally known to, and not
being  readily  ascertainable  by  proper means by, other persons who can obtain
economic  value  from  its  disclosure or use, and (b) is the subject of efforts
that  are  reasonable  under  the  circumstances  to maintain its secrecy, which
information  shall  be disclosed in writing and labeled as "Confidential" or the
equivalent, or if disclosed verbally or in other non-written form, identified as
such  at  the  time  of  disclosure  and thereafter summarized in writing by the
disclosing  Party  within  thirty  (30)  days  of  such  initial  disclosure.
Confidential Information includes, without limit, Licensor Catalyst Information,
Licensor  Technical  Information,  and  Licensee  Technical  Information.
1.06     "CONVERSION  PROCESS"  means any process for the conversion of normally
gaseous  hydrocarbons  into a mixture of hydrocarbons which may be a combination
of  normally  gaseous, liquid, or solid hydrocarbons at ambient temperatures and
pressures and comprised of (a) autothermal reforming of a feed stream consisting
substantially of gaseous hydrocarbons in the presence of air, or oxygen-enriched
air  to  create  an  intermediate  feed  stream  containing  carbon monoxide and
molecular  hydrogen, and (b) reacting the intermediate stream in the presence of
a  Fischer-Tropsch  catalyst  to  produce  a  product  stream  consisting of any
combination  of gaseous, liquid or solid hydrocarbons at ambient temperature and
pressure.  The Conversion Process includes all associated internal processes and
technologies  such  as  heat  integration,  separation,  or the recycle, use, or
consumption  of hydrocarbons or other products.  The Conversion Process does not
include any technology related to (i) pre-treatment of the natural gas feedstock
or  (ii)  post-processing the Fischer-Tropsch product stream for a purpose other
than  that  defined  above.
1.07     "EFFECTIVE  DATE"  means  the  date set forth in the first paragraph of
this  Agreement.
1.08     "ESCROW  AGENT"  means  Westpac  Banking  Corporation.
1.09     "ESCROW  AMOUNT"  means  50%  of  the  Initial  License  Fee.
1.10     "ESCROW  AGREEMENT"  means  the  Deposit  Agreement  between  Licensor,
Licensee  and  Westpac  Banking  Corporation.
1.11     "FISCHER-TROPSCH  CATALYST"  means  any  catalyst  for  use  in  a
Fischer-Tropsch Reaction, including, but not limited to, Chain Limiting Catalyst
and  High  Alpha  Catalyst.
1.12     "FISCHER-TROPSCH  REACTION"  means  the  catalytic  reaction  of carbon
monoxide  and  hydrogen,  the  primary  products  of  which  are  hydrocarbons.
1.13     "HIGH  ALPHA  CATALYST" means a type of Fischer-Tropsch Catalyst, whose
alpha  number,  as calculated by the Schulz-Flory distribution equation, is 0.85
or  higher.
1.14     "INITIAL LICENSE FEE" means the initial license fee paid by Licensee to
Licensor  pursuant  to  Section  5.01  of  this  Agreement.
                        -------------
1.15     "INVENTIONS  OR  IMPROVEMENTS" means any process, formula, composition,
device,  catalyst  (including  both  autothermal  reforming  catalysts  and
Fischer-Tropsch  Catalysts),  apparatus,  technology,  know-how,  operating
technique,  improvement,  modification,  or  enhancement  relating  to  the use,
operation,  or  commercialization  of  a  Conversion  Process  and  the products
(including  Synthetic  Product)  of  a  Conversion Process, which is discovered,
made,  designed, developed or acquired by Licensee, solely or with others, since
the  date  of  this  Agreement,  or  used  in a Licensed Plant, in each instance
whether  patentable  or not, including, without limitation, patents, copyrights,
and Confidential Information and further including the full scope and content of
the  intellectual and tangible property included therein and produced therefrom,
e.g.,  drawings,  prints, chemical formulae, prototypes, data, computer programs
and  software,  and  the like.  Inventions or Improvements shall not include any
information  relating  to  methods  of  manufacturing  catalysts  for  use  in a
Conversion  Process.
1.16     "LICENSE  FEE"  means  the  fee  paid  by  Licensee  to  Licensor,  as
consideration for granting a license pursuant to a Site License Agreement to use
Licensor  Technology  at  a  Licensed  Plant,  as  calculated in accordance with
Attachment  2  of  this  Agreement,  and  does  not  include fees related to the
      -------
purchase  of  the associated Process Design Package for such Licensed Plant, any
      -
catalyst  or  any  catalyst  markup.
1.17     "LICENSED  FACILITIES"  means  one  or  more  Licensed  Plants.
1.18     "LICENSED  PLANT"  means  a plant (including modification, expansion or
replacement  thereof)  licensed  to operate pursuant to a Site License Agreement
issued  under  the  terms  of  this  Agreement,  at  a  site within the Licensed
Territory  with  a  design  production capacity measured in Barrels of Synthetic
Product  per  day,  using or designed to use Licensor Technology to practice the
Conversion  Process  to  produce  Marketable  Products.
1.19     "LICENSED  TERRITORY"  means  the  countries  of  Australia,  Papua New
Guinea, East Timor, and Indonesia and their respective territorial waters except
(a)  any  such  country  that,  from  time  to time, may be prohibited, or whose
citizens  (considered  as  a  group)  may  be  prohibited,  by the United States
government from receiving Licensor Technology or the products thereof or (b) any
such  country the inclusion of which in the definition of Licensed Territory is,
or  could  in  good  faith  be  argued  to  be, prohibited by United States law,
including, without limitation, United States Executive Orders and administrative
orders,  rules and regulations.  Licensed Territory shall include territories or
territorial  waters  which  are the subject of official dispute between or among
countries  only  if  all  countries  claiming sovereignty, a sovereign right, or
jurisdiction  over such territories or territorial waters are otherwise included
within  the  definition  of  such  term.
1.20     "LICENSEE  PATENT  RIGHTS" means all rights with respect to patents and
patent  applications  of  all  relevant  countries to the extent that the claims
cover  features or aspects of Inventions or Improvements practiced in a Licensed
Plant,  in each case to the extent that, and subject to the terms and conditions
under  which,  Licensee has the right to grant licenses, immunities or licensing
rights  without  having  to  make  payment  to  others.
1.21     "LICENSEE  TECHNICAL  INFORMATION"  means  all unpatented Inventions or
Improvements practiced in a Licensed Plant, in each case to the extent that, and
subject to the terms and conditions under which, Licensee has the right to grant
licenses,  immunities  or  licensing  rights  without  having to make payment to
others.
1.22     "LICENSOR  CATALYST  INFORMATION"  means,  without  limit,  information
relating to any catalyst, catalyst formulation, conditioning procedure, start-up
procedure,  regeneration  procedure,  or  performance  which  are  licensed  by
Syntroleum  to  Licensor  (with right to sublicensee) pursuant to the Syntroleum
License  Agreement.  Licensor  Catalyst  Information  shall  not  include  any
information  relating  to  methods  for  manufacturing  catalysts  for  use in a
Conversion  Process.
1.23     "LICENSOR  CATALYST  PATENT  RIGHTS"  means  all rights with respect to
patents and patent applications of all relevant countries to the extent that the
claims  cover  features  or aspects of catalysts useable in a Conversion Process
(including,  without  limitation,  autothermal  reforming  catalysts  and
Fischer-Tropsch  Catalysts)  and  expressly  excluding  any  process  operating
techniques  or  apparatus or methods for manufacturing such catalysts, which are
licensed  by  Syntroleum  to Licensor (with right to sublicense) pursuant to the
Syntroleum  license  Agreement.
1.24     "LICENSOR  PATENT  RIGHTS" means all rights with respect to patents and
patent  applications  of  all  relevant  countries to the extent that the claims
cover  features  or  aspects  of  a  Conversion  Process  (including,  without
limitation,  any  operating  techniques  and  apparatus  and expressly excluding
Licensor  Catalyst  Patent  Rights) which are licensed by Syntroleum to Licensor
(with  right  to  sublicense)  pursuant  to  the  Syntroleum  License Agreement.
1.25     "LICENSOR  TECHNICAL  INFORMATION"  means  all  unpatented  information
relating  to  a  Conversion  Process  (including,  without limitation, operating
techniques  and  apparatus for carrying out the Conversion Process and expressly
excluding  Licensor  Catalyst  Information  and  Reactor  Information) which are
licensed  by  Syntroleum  to  Licensor  (with  right to sublicense) prior to the
termination  of this Agreement; in each case to the extent that, and subject to,
the  terms  and  conditions,  including the obligation to account to and/or make
payments  to  others,  under  which Licensor has the right to disclose and grant
rights  to  others.
1.26     "LICENSOR  TECHNOLOGY"  includes  Licensor  Technical  Information  and
Licensor  Patent  Rights  related  to  the  practice of a Conversion Process and
Licensor Catalyst Information and Licensor Catalyst Patent Rights related to the
use  of  Syntroleum  catalysts  in  the  practice  of  a  Conversion Process but
expressly  excluding the right to make, have made, or sell Syntroleum catalysts.
1.26A     "LOAN  AGREEMENT"  means  the  A$  Loan Agreement between Licensee and
Syntroleum  Australia  Credit  Corporation  dated  August  3,  2000.
1.27     "LUBRICANTS"  means  hydrocarbon  base  oils which can be made into, or
blended  with  other  base  oils  to  be made into, without limit (a) automotive
lubricating  oils such as PCMO, HDD, transmission and hydraulic fluids, and gear
oils;  (b)  industrial lubricants such as metalworking lubricants, process oils,
white oils, agricultural spray oils, de-foamers, cutting and quenching oils, and
rubber  processing  oils;  (c)  greases;  (d)  drilling fluids; or (e) any other
specialty  product  agreed  to by the Parties which is not a Marketable Product.
1.28     "MAJOR  EVENT  OF DEFAULT" has the meaning ascribed to that term in the
Loan  Agreement.
1.29     "MARKETABLE  PRODUCTS"  means  finished hydrocarbon fuels, hydrocarbons
consumed  as  fuel,  or  fuel  blending  stocks,  including, but not limited to,
diesel,  kerosene,  gasoline,  and  naphtha processed from Synthetic Product and
expressly  excluding  waxes,  chemicals,  Lubricants,  or  any  other  specialty
hydrocarbon  products  and  subject  to  the  express  condition that Marketable
Products  shall  be  produced  from  Synthetic  Product at the Licensed Plant or
produced from Synthetic Product at a separate facility operated by the Licensee,
or  third  Persons  who  are contractually committed to Licensee to produce only
Marketable Products from such Synthetic Product.  Notwithstanding the foregoing,
Marketable  Products  shall  be  deemed  to  include  any  products:
(a)     produced  at  any  location  by  any  Person  from  a  blended stream of
Synthetic  Product  and  at  least  15%  by  volume  of  produced  crude  oil or
condensate,  in  which  the  Synthetic  Product,  before  any  blending,
(i)     remains  a  liquid  at  sixty  degrees  Fahrenheit  (60  F)  and one (1)
atmosphere  pressure  or,
(ii)     has  a chemical composition consisting of molecules having at least 85%
by volume of which contain no more than 20 carbon atoms each and no more than 1%
by  volume  of  which  contains  more  than  40  carbon  atoms  each;  or
(b)     produced  at  any  location  by  any  Person  from  a  blended stream of
Synthetic  Product  and  at least 40% by volume produced crude oil or condensate
such  that  after  blending  the  mixture  is  a transportable liquid, expressly
excluding  slurries;  or
(c)     produced  by  blending  individual  fractions  distilled  from Synthetic
Product  with  at least 50 % by volume of like distilled fractions from produced
crude  oil  or  condensate,  in  which  each  distilled  fraction from Synthetic
Product, before any blending, has a chemical composition consisting of molecules
having at least 85% by volume of which contain no more than 20 carbon atoms each
and no more than 1 % by volume of which contains more than 40 carbon atoms each,
wherein  the  blending  is  performed  at  any location by the Licensee or third
Persons  who  are contractually committed to Licensee to produce only Marketable
Products  from  such  Synthetic  Product.
Notwithstanding  the  above language in this Section 1.27  hydrocarbons consumed
                                             ------------
as  fuel  by  Licensee at locations which satisfy the conditions of this Section
                                                                         -------
1.27  are  Marketable  Products,  regardless of whether or not they happen to be
  --
waxes,  chemicals,  Lubricants,  or  any  other  specialty hydrocarbon products.
  -
1.30     "PARTIES"  means  Licensor  and  Licensee.
1.31     "PARTY"  means  Licensor  or  Licensee.
1.32     "PERSON"  means  any  natural person, corporation, partnership, limited
liability  company, firm, association, trust, government, governmental agency or
any  other  entity,  other  than  the  Parties.
1.33     "PROCESS DESIGN PACKAGE" means a compilation of text, figures, drawings
and  documentation,  relating to the design and construction of a Licensed Plant
which  may  be  modified from time to time by mutual consent of the Parties (and
expressly  excluding  Reactor  Information) which is necessary and sufficient to
prepare the detailed design and engineering necessary to construct and operate a
Licensed  Plant.
1.34     "REACTOR  INFORMATION" means all information, including but not limited
to  data,  processes, plans, specifications, flow sheets, designs, and drawings,
relating  to  the  internal  design or functions, including, without limitation,
tube  count,  tube  size  and configuration and catalyst volume, relating to any
Syntroleum  autothermal  reformer or Fischer-Tropsch reactors which, at any time
during  the  term  of  this  Agreement,  Licensor  discloses  to  Licensee.
1.35     "REACTOR  VENDOR" shall mean those fabricators approved by Licensor (or
Syntroleum)  to  perform  the  fabrication  and/or  maintenance  and  repair  of
autothermal  reformer  or  Fischer-Tropsch  reactors for installation and use in
Licensed  Facilities.  Licensor  (or  Syntroleum) may, from time to time, add or
remove  any  vendor  from  being  a  Reactor  Vendor.
1.36     "SITE LICENSE AGREEMENT" means an agreement between the Parties, in the
form  attached  to this Agreement as Attachment 3 and which may be modified from
                                     ------------
time  to  time  by  mutual written consent of the Parties, granting the right to
build  and  operate  a  single Licensed Plant, specifying in each case the fixed
site  and  the nominal design capacity, in Barrels of Synthetic Product produced
per  day.
1.37     "START-UP  DATE" means the first full calendar day following a five day
period,  after  completion  of  catalyst  pre-treatment  and  other  preliminary
operations,  during  which  the applicable Licensed Plant produces quantities of
Synthetic  Product  in  an  amount  equal  to at least 75% of the per-day design
production  capacity  of such Licensed Plant averaged over such five day period.
1.38     "SYNTHETIC  PRODUCT"  means  those  hydrocarbons,  having  a  chemical
composition substantially consisting of molecules with five or more carbon atoms
each, produced using Licensor Technology in the practice of a Conversion Process
at  a  Licensed  Plant.
1.39     "SYNTROLEUM"  means  Syntroleum  Corporation,  a  Delaware corporation.
1.40     "SYNTROLEUM  AUSTRALIA  CREDIT"  means  Syntroleum  Australia  Credit
Corporation,  a  Delaware  corporation,  and  a  wholly-owned  subsidiary  of
Syntroleum.
1.41     SYNTROLEUM  LICENSE  AGREEMENT"  means  the  License  Agreement between
Syntroleum  and  Licensor  dated  August  2,  2000.
                         2.  LICENSOR GRANTS TO LICENSEE
                         -------------------------------
2.01     Subject  to the terms and conditions of this Agreement, Licensor grants
to  Licensee  a  limited,  non-exclusive,  non-transferable  (except as provided
Article  8)  right  and  license  to  use  Licensor  Patent  Rights and Licensor
     -----
Technical  Information  to  design,  construct,  operate and maintain (including
     ---
modify,  expand  and  replace) Licensed Facilities under a separate Site License
Agreement  for  each  Licensed  Plant,  to  practice  a  Conversion  Process  to
manufacture  Synthetic  Product  solely for the purpose of producing, using, and
selling  Marketable  Products  anywhere  in  the  world.
2.02     Subject  to the terms and conditions of this Agreement, Licensor grants
to  Licensee  a  limited, non-exclusive, non-transferable (except as provided in
Article  8)  right  to  purchase  from  Reactor  Vendors  the  appropriate
  --------
Fischer-Tropsch  and autothermal reforming reactors for use in the practice of a
  -------
Conversion  Process  at a Licensed Plant.  Licensee shall have no right to make,
have  made, or sell any reactor based on Reactor Information except as expressly
provided  in  this  Section  2.02.
                    -------------
2.03     Subject  to the terms and conditions of this Agreement, Licensor grants
to  Licensee  (a)  the  right  to  purchase  from  Licensor  the  appropriate
Fischer-Tropsch  Catalyst  and,  from  either  Licensor  or  a  catalyst  vendor
designated  by  Licensor, the appropriate autothermal reforming catalyst for use
in  the  practice  of  a  Conversion  Process at a Licensed Plant to manufacture
Synthetic  Product  solely  for  the  purpose  of  producing, using, and selling
Marketable  Products  anywhere  in  the  world  and (b) a limited non-exclusive,
non-transferable  (except  as  provided  in  Article  8) right and license under
                                             ----------
Licensor  Catalyst  Patent  Rights and Licensor Catalyst Information to use such
catalysts  in  the  practice  of  a  Conversion  Process  at a Licensed Plant to
manufacture  Synthetic  Product  solely for the purpose of producing, using, and
selling  Marketable  Products  anywhere in the world. The purchase price for any
catalyst  purchased  by  Licensee from Licensor shall be  equal to the lowest of
(a) Licensor's cost to produce or have produced such catalysts, plus a markup of
twenty  five percent (25%), or (b) if, during the twelve (12) month period prior
to a catalyst purchase by Licensee, the same catalyst (at comparable quantities)
was  sold by Licensor to a third party at a markup less than twenty five percent
(25%),  Licensee  shall be entitled to the lower markup for its current catalyst
purchase.  Licensor  will,  no  more  than  once  per  year,  provide  Licensee
reasonable  access to the relevant books of Licensor to verify the lowest markup
for  such  catalyst.  Licensee  shall have no rights to make, have made, or sell
any  Licensor  Fischer-Tropsch Catalyst or autothermal reforming catalyst, which
is  proprietary  to  Licensor.  Beyond the initial catalyst fill, for a Licensed
Plant,  Licensee  will  have  the  right  to buy replacement catalyst from other
catalyst  suppliers.  If  Licensor  specifies  in  the Process Design Package an
autothermal  reforming  catalyst  commercially  available  from  a  third party,
Licensee  shall  have  the right to purchase such catalyst directly from a third
party.
2.04     In  the event Licensor for any reason is unable to supply Licensee with
such  amounts of Fischer-Tropsch Catalyst as may be reasonably necessary for the
operation  of  a  specific Licensed Plant, Licensor shall provide to one or more
catalyst  vendors designated by Licensor the necessary catalyst recipe, together
with  a  non-exclusive  limited  license  to  make and sell such Fischer-Tropsch
Catalyst to Licensee for use in such Licensed Plant, and Licensee shall have the
right to purchase such Fischer-Tropsch Catalyst from such vendor for use in such
Licensed Plant on the same terms (including price) as set forth in Section 2.03.
                                                                   ------------
2.05     Upon  Licensee's  written request, Licensor will execute a Site License
Agreement  with  respect  to  a  specific  proposed  Licensed  Plant  if:
(a)     Licensee  has delivered to Licensor a Request for Site License Agreement
in  the  form  of  Attachment  1;
(b)     Licensee  is  current  on  all  payments  due  under  prior Site License
Agreements  for  all Licensed Facilities under this Agreement in accordance with
their  respective  terms;  and
(c)     there  is not a material default under this Agreement for which Licensee
is  responsible  resulting  from  or  affecting  a  Licensed  Plant.
Until  such  time  as the above conditions are satisfied, Licensee shall have no
right  or  license to use Licensor Technology at the proposed Licensed Plant. At
the  time  a  Request for Site License Agreement has been submitted by Licensee,
Licensor  shall survey its Reactor Vendors (and cause Syntroleum to do the same)
to  determine  the  lead time for reactor fabrication for the Licensed Plant. If
delivery  time  for  reactors  is greater than 18 months, Licensor shall use its
commercially  reasonable  efforts  to  approve  (or  have  Syntroleum  approve)
additional  Reactor  Vendors  in  order  to  reduce  the  delivery  time.
2.06
(a)     Each Licensed Plant shall remain at the initial plant site for a minimum
of  (i)  seven  (7)  years  from  Start-Up  Date,  or (ii) until the natural gas
reserves  from  which  the  Licensed  Plant  acquires  its  gas supply have been
depleted  to  the point that such reserves are not adequate for operation of the
Licensed  Plant  at  its  design  capacity, whichever first occurs.  Thereafter,
Licensee  may  relocate a Licensed Plant to a new plant site within the Licensed
Territory without obtaining a new Site License Agreement provided (i) request is
made  by  Licensee  to  Licensor  in  the  form of Exhibit C of the Site License
                                                   ---------
Agreement  in  which  Licensee agrees that the Licensed Plant will remain at the
new  site for minimum of seven (7) years and (ii) the Licensee is not in default
under  the  Site  License  Agreement  for  the  Licensed  Plant.
(b)     Notwithstanding  the  provisions  of  Section  2.06(a),  Licensed Plants
                                              ----------------
utilizing  gas  from  leases,  concessions,  or  similar  production  sharing
arrangements  in  which  Licensee owns at least a ten percent (10%) working, net
profits,  equity,  or  other  economic  interest  may, at any time, be relocated
within  the  geographic  boundaries  of any such leases, concessions, or similar
production  sharing  arrangements.
(c)     Nothing  in  this  Agreement shall prohibit Licensee from purchasing gas
from  other  parties  to  manufacture  Synthetic  Product  at any Licensed Plant
pursuant  to  this  Agreement.
(d)     In  the  event that Licensee and Licensor or their respective Affiliates
enter  into  a program for the development of a floating facility using Licensor
Technology  under  the  provisions  of  a written agreement between Licensee and
Licensor,  or  their respective Affiliates, the time period set forth in Section
2.06(a)  and  Section  2.05  of the Site License Agreement  will be reduced from
seven  (7)  years  to  two  (2)  years.
                            3.  TECHNICAL ASSISTANCE
                            ------------------------
3.01     Licensee  shall purchase and Licensor agrees to furnish to Licensee, or
to  a  contractor  designated  by  Licensee (or procure the same is furnished by
Syntroleum),  a  Process Design Package for each Licensed Plant according to the
terms  specified  in  Section  5.08  of  this  Agreement.
                      -------------
3.02     Reactor Information necessary for each Licensed Plant shall be excluded
from the Process Design Package.  However, those elements of Reactor Information
which  are necessary to fabricate such reactors will be provided by Licensor (or
Licensor  will  procure  Syntroleum  provides  such information) directly to the
Reactor Vendors selected by Licensee to manufacture the autothermal reformer and
Fischer-Tropsch  reactors from Licensor's (or Syntroleum's) then current list of
Reactor  Vendors.  Licensor  may,  from  time to time, add or remove any Reactor
Vendor.
3.03     Except as may be set forth in a Process Design Package, the obligations
of  Licensor  under this Agreement do not include the performing of any basic or
detailed  design,  engineering,  training,  consulting,  start-up,  operating or
maintenance  services  with  respect  to  any  Licensed  Plant.  Licensor's
responsibilities for any such services in the design, construction and operation
(including  maintenance)  of  any Licensed Plant shall be as set forth in one or
more  separate  written  engineering  services  agreement(s)  (if  any)  between
Licensor (or Syntroleum as the case may be) and Licensee specifically applicable
to each Licensed Plant.  Licensor will not refuse a request by Licensee to enter
into  such  an  agreement  with  Licensee  for  such  services as are reasonably
requested  by  Licensee and the Parties will each act reasonably in agreeing the
terms  of  such  agreement.  Where  such services cannot be provided by Licensor
(but  can be reasonably provided by Syntroleum), Licensor agrees to procure that
Syntroleum  enters  into  such  agreements  with  Licensee.
3.04     Licensor agrees to disclose to Licensee, upon reasonable request but at
least  once a year, (a) additions to Licensor Technology and (b) improvements or
inventions developed by Licensor (or Syntroleum) relating to Licensor Technology
which have been commercially used or which Licensor determines are in a stage of
development  suitable  for  commercial  use.  Licensor  shall permit Licensee to
reasonably  inspect,  at  mutually  convenient  times, the operating procedures,
process conditions, material balances, energy consumption, catalyst performance,
and  analyses of internal streams and/or Synthetic Product at Syntroleum's pilot
plant  which  are  applicable  to  such  improvements  or  inventions.
3.05     Licensee  shall  provide Licensor 90 days advance written notice of the
anticipated  Start-up  Date  for  each Licensed Plant. Licensee agrees to permit
Licensor  and/or  its  representatives  access  to Licensee's Licensed Plants at
reasonable  and  convenient  times, for inspection and if requested by Licensee,
training,  by  representatives  of  Licensor.  Licensor  shall have the right to
charge  Licensee  a  reasonable  fee  for any training as may be agreed with the
Licensee  on  a  case-by-case  basis.
                         4. LICENSEE GRANTS TO LICENSOR
                         ------------------------------

4.01     Licensor  may, no more than one (1) time per year, request and Licensee
agrees to disclose to Licensor in writing any Inventions or Improvements related
to  the  Conversion  Process.
4.02     Subject  to the terms and conditions of this Agreement, Licensee grants
to  Licensor  a limited, non-exclusive, irrevocable, royalty free, worldwide (a)
right  and license under Licensee Patent Rights and (b) right and license to use
Licensee  Technical  Information  for  the  design,  construction, operation and
maintenance  (including  modify,  expand and replace) of facilities practicing a
Conversion  Process,  together with the right to grant corresponding sublicenses
of  the  Licensee  Patent  Rights  and  Licensee  Technical Information to other
licensees  of  Licensor  Technology  for  use  at  a licensed plant practicing a
Conversion  Process,  provided that any such licensee to whom a sublicense is to
be  granted  shall have granted reciprocal rights to Syntroleum to use and grant
sublicenses  under  such  licensee's patent rights and technical information for
the  benefit  of  Licensee.  Licensee shall have the right to charge  Licensor a
reasonable  fee  for  any  training  with  respect to Licensee Patent Rights and
Licensee  Technical  Information as may be agreed with the Licensor on a case by
case  basis.
4.03     Should Licensee, during the term of this Agreement, make any patentable
Inventions  or  Improvements,  Licensee may, at its sole discretion, file patent
applications with respect to such Inventions or Improvements in its own name and
at  its  own  expense,  and  take such other steps as are necessary, in the sole
judgment  of Licensee, to protect its rights in such Inventions or Improvements.
In  the  event  Licensee declines to file any patent application with respect to
any  Inventions  or  Improvements, it shall promptly notify Licensor in a timely
manner  to  allow  Licensor,  at  its  sole  discretion,  to  file  such  patent
application  at its sole expense, and to take such other steps as are necessary,
in  its  judgment,  to  protect  the  Parties'  rights  in  such  Inventions  or
Improvements,  subject  to  Licensee's  obligation  to  account to third parties
therefore  and  provided  that  title  to  such Inventions or Improvements shall
remain  in  Licensee.
4.04     Licensor  and  Licensee  each agree that they will take all actions and
execute all documents and shall cause their employees, agents and contractors to
take  all  actions  and execute all documents as are necessary or appropriate to
carry  out  the  provisions  of  this  Article  4 or to assist each other in the
                                       ----------
preparation,  filing  and  prosecution  of  patent applications or securing such
protection  referenced  in  this  Article  4  when  so  requested.
                                  ----------
4.05     Licensee shall permit Licensor and/or its representatives to reasonably
inspect,  at  mutually  convenient  times,  the  operating  procedures,  process
conditions,  material  balances,  energy  consumption, catalyst performance, and
analyses  of  internal  streams and/or Synthetic Product which are applicable to
Licensee's  Inventions  or Improvements at any Licensed Plant incorporating such
Inventions  or  Improvements.
4.06     Licensee  agrees  to  provide,  from  time  to time and upon request by
Licensor,  samples  of  Synthetic  Product  and  Marketable Products as they are
produced  by  any  of  Licensee's Licensed Plants to verify compliance with this
Agreement.  Licensor  agrees  to  limit  its  analysis  of  samples of Synthetic
Product  and  Marketable  Products  to  those  analyses  necessary  to determine
compliance  with  the  definition  of  Marketable  Products.
                           5.  LICENSE AND OTHER FEES
                           --------------------------
5.01     Upon execution of this Agreement, but subject to Section 5.02, Licensee
                                                          ------------
shall  pay  Licensor  a  non-refundable  Initial  License  Fee  in the amount of
AUD$30,000,000.
5.02     If,  at  the  time  of  execution  of  this Agreement, the condition in
Schedule 3 to the Loan Agreement has not been satisfied (as determined according
to  that  Loan Agreement), the Escrow Amount shall be paid by Licensee to Escrow
Agent  to  be  held  in  escrow  on the terms set forth in the Escrow Agreement.
5.03     Where  the  condition  in  Schedule  3  to  the Loan Agreement has been
satisfied (as determined according to the Loan Agreement) and, Licensor delivers
a  certification  that  no  event  of  default  by  Licensor has occurred and is
continuing  under this Agreement as of the date of such delivery, Licensee will,
within  three  business  days  of  receipt  by Licensee of such certificate from
Licensor,  instruct  the Escrow Agent to disburse in immediately available funds
to  an  account  identified  by  Licensor to the Escrow Amount together with the
accrued  interest  thereon.
5.04     In  the  event  that  Escrow Agent shall hold the Escrow Amount at 5:00
p.m.  United States Central Standard Time on August 31, 2004, the Licensee shall
be entitled to instruct the Escrow Agent to disburse the Escrow Amount (less any
accrued  interest  thereon)  to  Licensee.  Notwithstanding  such  payment  to
Licensee,  this  Agreement  continues  in  full  force and effect.  Any interest
accrued on the Escrow Amount is payable to the Licensor.  If the Parties dispute
whether  or  not  the  condition  in  schedule  3 to the Loan Agreement has been
satisfied,  or Licensee disputes the certification delivered under Section 5.03,
the  dispute  is  to  be  referred  to the Australian Commercial Disputes Centre
("ACDC").  The  Licensor  and  Licensee must act promptly in good faith and in a
reasonable  manner  with  the  ACDC to agree on and implement a suitable dispute
resolution  process  for  the  dispute.  The  Licensee  shall not be entitled to
instruct the Escrow Agent with respect to the Escrow Amount and the Escrow Agent
shall  continue  to  retain  the  Escrow  Amount  until the dispute is resolved.
5.05     Provided  that  Licensor  shall  have received the Initial License Fee:
(a)     Licensee  shall be entitled to a credit, up to a total of AUD$20,000,000
of  the  Initial  License  Fee,  at a rate of (i) the US$ equivalent (calculated
according  to  Section  5.05(c)) of AUD$.50 for every AUD$1.00 of future license
               ----------------
fees  incurred  by  Licensee for any Site License Agreement for a Licensed Plant
with  a  design  capacity  of  up to 20,000 barrels per day against those future
license  fees,  and  (ii)  the  US$  equivalent (calculated according to Section
                                                                         -------
5.05(c))  of  AUD$1.00  for  every  AUD $1.00 of future license fees incurred by
     --
Licensee  for  any  Site  License  Agreement  for a Licensed Plant with a design
capacity  greater than 20,000 barrels per day against those future license fees.
(b)     In the event that under the Loan Agreement the Commonwealth of Australia
("Commonwealth")  makes  an  election  under  clause  8.5  or  13.5  of the Loan
Agreement,  then  and  in  either case Licensee shall be entitled to a credit in
respect of License fees outstanding when the election is made and future license
fees  incurred  by  Licensee for any Site License Agreement for a Licensed Plant
under  this  Agreement,  equal  to  the  US$ equivalent (calculated according to
Section  5.05(c))  of  the  amount in respect of which the Commonwealth has made
     -----------
that  election.  This  Section 5.05(b) applies notwithstanding that the Licensee
                       ---------------
may  not  be  the  Commonwealth.
(c)     The  exchange rate used to determine the credited amount in US$ shall be
the average exchange rate on the date of the Site License Agreement as quoted by
three  reputable  foreign  exchange  dealers, one nominated by the Licensor, one
nominated  by  the  Licensee,  and  one  jointly  agreed  between  the  Parties.
5.06     Licensee  agrees  to  pay  License  fees to Licensor in accordance with
Attachment  2  for  each  Licensed  Plant.
    ---------
5.07     In  addition  to  the  amount  to be paid by Licensee to Licensor under
Sections  5.01 and 5.06, Licensee agrees to pay Licensor for each Process Design
    ----------     ----
Package, a fee equal to the costs actually incurred by Licensor in preparing the
Process  Design  Package,  plus  10% of the total of such actual cost.  Such fee
shall  be  invoiced  by  Licensor to Licensee after delivery of a Process Design
Package  and  payment  shall  be  due  within 30 days from receipt of invoice by
Licensee.
5.08     Unless  otherwise provided in this Agreement, all amounts payable under
this  Agreement  shall  be  paid  by  Licensee to Licensor at Licensor's address
specified in Section 11.08, or to an account at a bank specified by Licensor, in
             -------------
Australian  dollars.
5.09     In  the  event  Licensee is required to withhold any taxes from amounts
payable to Licensor under this Agreement, Licensee agrees to provide Licensor at
the  time  of  such  withholding with a receipt or other evidence reflecting the
deposit  of  such  taxes  with  the  appropriate  governmental  agency.
                         6.  WARRANTIES AND INDEMNITIES
                         ------------------------------
6.01     Licensor  represents  and  warrants  that  it  is  a  corporation  duly
organized, validly existing, and in good standing under the laws of the State of
Delaware,  USA,  and  has full power and authority to enter into and perform its
obligations  under  this  Agreement.  The execution, delivery and performance of
this  Agreement and all documents relating hereto by Licensor have been duly and
validly  authorized by all requisite corporation action and constitute valid and
binding  obligations of Licensor enforceable in accordance with their respective
terms.
6.02     Licensee  represents  and warrants that it has full power and authority
to  enter  into  and  perform its obligations under this Agreement including the
right  to  grant  the  rights  and  licenses  as  set  forth  in Article 4.  The
                                                                 ---------
execution, delivery and performance of this Agreement and all documents relating
hereto  by  Licensee  have  been  duly  and  validly authorized by all requisite
corporate  action  and  constitute  valid  and  binding  obligations of Licensee
enforceable  in  accordance  with  their  respective  terms.
6.03     Except  as  otherwise  expressly  set  forth in this Agreement or other
written  agreement  between  the Parties, LICENSOR MAKES NO AND HEREBY DISCLAIMS
ANY  EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS OF ANY KIND, INCLUDING ANY
WARRANTY  OF  MERCHANTABILITY,  FITNESS  FOR  A PARTICULAR PURPOSE, OR ANY OTHER
WARRANTIES  OR  REPRESENTATIONS  OF  ANY  KIND  TO  LICENSEE, INCLUDING, WITHOUT
LIMITATION,  ANY  WARRANTY  OR  REPRESENTATION  WITH  RESPECT TO USE OF LICENSOR
TECHNOLOGY  AS  AUTHORIZED  HEREUNDER.
6.04     EXCEPT  FOR  UNAUTHORIZED DISCLOSURE OR USE OF CONFIDENTIAL INFORMATION
OR  UNAUTHORIZED  USE OF PATENT RIGHTS UNDER THIS AGREEMENT, IN NO EVENT SHALL A
PARTY BE LIABLE TO THE OTHER FOR ANY SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE, OR
EXEMPLARY  DAMAGES,  INCLUDING  WITHOUT  LIMITATION,  LOST  PROFITS  OR SAVINGS,
REGARDLESS  OF  THE FORM OF ACTION GIVING RISE TO SUCH A CLAIM FOR SUCH DAMAGES,
WHETHER  IN  CONTRACT OR TORT INCLUDING NEGLIGENCE, EVEN IF LICENSOR OR LICENSEE
HAS  BEEN  ADVISED  OF THE POSSIBILITY OF SUCH DAMAGES.  BUT IF A PARTY IS FOUND
LIABLE,  DESPITE  THE  ABOVE LANGUAGE, TO THE OTHER PARTY FOR SPECIAL, INDIRECT,
CONSEQUENTIAL, INCIDENTAL, PUNITIVE, OR EXEMPLARY DAMAGES THEN THE MAXIMUM LIMIT
OF  SUCH  DAMAGES  IS  AGREED  TO  BE  $5,000.
6.05     A  Party  will  promptly advise the other Party in writing of any claim
made  or  lawsuit  alleging  infringement  of  any  patent  or  copyright  or
misappropriation  of  Confidential Information based on the design, construction
and/or  operation  of  Licensed  Facilities  (including  Synthetic  Product  or
Marketable  Products  produced  from  Licensed  Facilities).
(a)          If  Licensee has made a modification to the Process Design Package,
with  respect  to a Licensed Plant, and infringement or misappropriation by such
Licensed  Plant  would  not  exist  in  the  absence of Licensee's modification,
Licensee  will be solely responsible for any claim or lawsuit. Licensee will (i)
promptly  undertake  at its own expense the defense of the claim or lawsuit, and
(ii)  hold  Licensor and its officers and employees harmless from any liability,
damages  and  other  sums  that  may  be assessed in or become payable under any
decree  or judgment by any court or other tribunal which results from such claim
or lawsuit and from any attorneys fees, costs of litigation and other reasonable
out  of  pocket  expenses  incurred  in  the  defense  of such claim or lawsuit.
(b)          If  the  design,  construction and/or operation of a Licensed Plant
which  is  the  basis  for  alleged  infringement  or  misappropriation,  is  in
accordance with the designs, specifications and operating conditions (including,
but  not  limited to, catalysts) embodied in the Process Design Package for such
Licensed  Plant,  Licensor  will  (i)  promptly undertake at its own expense the
defense  of  the  claim  or lawsuit, and (ii) hold Licensee, its affiliates, and
their  officers,  directors,  and employees harmless from any liability, damages
and  other  sums  that  may be assessed in or become payable under any decree or
judgment by any court or other tribunal which results from such claim or lawsuit
and  from  any  attorneys  fees, costs of litigation and other reasonable out of
pocket  expenses  incurred  in  the  defense  of  such  claim  or  lawsuit.
(c)          A  Party will render all reasonable assistance that may be required
by  the other Party in the defense of  claim or lawsuit alleging infringement or
misappropriation  and  such Party shall have the right to be represented therein
by  advisory  counsel  of  its  selection  and  at  its  expense.
(d)          In  the  event  a  court  or other tribunal finds that infringement
and/or  misappropriation  has  occurred  not  as  a  result  of  Licensee's
modifications,  Licensor  shall  have the option, at its sole expense, to either
(i)  provide designs, specifications and/or operating conditions (including, but
not  limited  to,  catalysts) and make modifications to the Licensed Plant which
avoid  such infringement and/or misappropriation without degrading the economics
or performance of the Licensed Facilities, or (ii) acquire the right to continue
using  the  design,  construction  and  operating conditions (including, but not
limited  to,  catalysts),  which  were  the subject of such  infringement and/or
misappropriation.
(e)          Except  as  provided  in  (d)  above,  a  Party shall not settle or
compromise  any  claim  or  lawsuit  alleging  infringement  or misappropriation
without  the written consent of the other Party if such settlement or compromise
obligates  the  other  Party  to  make any payment or part with any property, to
assume any obligation or grant any licenses or other rights, or to be subject to
any  injunction  by  reason  of  such  settlement  or  compromise.
6.06     Licensor  agrees  to  indemnify  and  hold  harmless  Licensee  and its
officers  and  employees from and against the full amount of any and all claims,
demands,  actions,  damages,  losses,  costs,  expenses, or liability whatsoever
(including  without  limitation  the  costs  of litigation, including reasonable
attorneys'  fees), for patent infringement, property (real and personal) damage,
personal injury or death, fines, or penalties arising in whole or in part out of
the  use of Licensee Patent Rights and Licensee Technical Information in a plant
operated  by  Licensor  or  Person  under  license  from  Licensor.
6.07     Licensor  agrees  to  indemnify  and  hold  harmless  Licensee  and its
officers  and  employees from and against the full amount of any and all claims,
demands,  actions,  damages,  losses,  costs,  expenses, or liability whatsoever
(including  without  limitation  the  costs  of litigation, including reasonable
attorneys'  fees),  for  property (real and personal) damage, personal injury or
death,  fines, or penalties arising in whole or in part out of acts or omissions
in  the  preparation  and  content  (including  design,  engineering,  and
specifications)  of  the  Process  Design  Package  for the Licensed Facilities.
6.08     Licensee  agrees  to  indemnify  and  hold  harmless  Licensor,  its
Affiliates,  their  officers, directors, and employees from and against the full
amount  of  any  and  all  claims,  demands,  actions,  damages,  losses, costs,
expenses,  or  liability  whatsoever  (including without limitation the costs of
litigation,  including  reasonable  attorneys'  fees),  for  property  (real and
personal) damage, personal injury or death, fines, or penalties arising in whole
or  in part out of acts or omissions outside the scope of or any modification to
the  content  (including design, engineering, and specifications) of the Process
Design  Package  for  the  Licensed  Facilities.
6.09     Licensor's  total  obligation  and  liability  to  indemnify  and  hold
Licensee harmless for any and all claims (a) under this Article 6, including but
                                                        ---------
not limited to all expenses incurred by Licensor in assuming Licensee's defense,
making  modifications  to  the  Licensed  Plant  and for paying any judgments or
settlements  on  Licensee's behalf, or for any other reason contemplated by this
Article  6,  (b)  for  failure to meet any process guarantees that may have been
 ---------
provided  under  a separate agreement, or (c) for any other indemnification made
 --
by  Licensor  pursuant  to  this  Agreement, shall in no event exceed 50% of the
total  License  Fees  received from the Licensee for any  Licensed Plant that is
subject  to  the  above  claims.
6.10     Licensee's  total  obligation  and  liability  to  indemnify  and  hold
Licensor  harmless for any and all claims (a) under this Article 6 including but
                                                         ---------
not  limited to all expenses incurred by Licensee in assuming Licensor's defense
and  for  paying  any  judgments or settlements on Licensor's behalf, or for any
other  reason  contemplated  by  this  Article  6,  or  (b)  for  any  other
                                       ----------
indemnification  made  by Licensee pursuant to this Agreement, shall in no event
exceed  50% of the total License Fees received by Licensor from Licensee for any
Licensed  Plant  that  is  subject  to  the  above  claims.
                       7.  CONFIDENTIALITY AND LIMITATIONS
                       -----------------------------------
7.01     Licensee agrees that any Confidential Information disclosed by Licensor
or an Affiliate (including Syntroleum) directly or indirectly to Licensee during
the  period  from the date of Licensee's execution of this Agreement through the
term  of  this  Agreement, will be kept confidential by Licensee for a period of
fifteen (15) years after the date of each disclosure, but not to exceed five (5)
years  after  the  termination  of this Agreement or fifteen (15) years from the
Effective  Date,  whichever last occurs, with the same standard of care Licensee
uses  to  protect  its  own  similar  confidential  information  and,  except as
otherwise  provided in this Agreement, will not be disclosed to others or copied
or  duplicated (except for internal use), and will be used by Licensee solely as
it  relates  to  this  Agreement.  Licensee  may  disclose  such  Confidential
Information to third parties who have executed a secrecy agreement with Licensor
or  Syntroleum  with  confidentiality  terms  no less restrictive than those set
forth  in  this  Section  7.01.
                 -------------
7.02     Licensor agrees that any Confidential Information disclosed by Licensee
directly  or  indirectly  to  Licensor during the term of this Agreement will be
kept  confidential by Licensor for a period of fifteen (15) years after the date
of  each  disclosure,  but not to exceed five (5) years after the termination of
this  Agreement  or  fifteen  (15) years from the Effective Date, whichever last
occurs,  with the same standard of care Licensor uses to protect its own similar
confidential  information,  and  except  as otherwise provided in this Agreement
will  not  be  disclosed  to others or copied or duplicated, and will be used by
Licensor  solely  in  the  development,  marketing and licensing of a Conversion
Process,  and  for  no  other  purpose.  Licensor may disclose such Confidential
Information  to  third  parties  who  have  executed  a  secrecy  agreement with
confidentiality  terms  similar  to  the  confidentiality  provisions  of  this
Agreement.  To the extent reasonably necessary to carry out the purposes of this
Agreement,  Licensor  may  disclose  any  of  the  foregoing  information  to an
Affiliate,  provided that the Affiliate has agreed in writing to be bound by the
relevant  provisions  of  this  Agreement.
7.03     A  Party shall not be subject to the restrictions set forth in Sections
                                                                        --------
7.01 and 7.02 as to the disclosure, duplication or use of disclosed Confidential
----     ----
Information,  which  the receiving Party can prove by competent evidence (a) was
already  known  to  the  receiving Party or an Affiliate prior to the disclosure
thereof  by the disclosing Party; (b) is or becomes part of the public knowledge
or  literature  without breach of this Agreement by the receiving Party but only
after it becomes part of the public knowledge or literature; (c) shall otherwise
lawfully  become  available  to the receiving Party or an Affiliate from a third
party but only after it becomes so available and provided the third party is not
under  obligation of confidentiality to disclosing Party; or (d) is developed by
the  receiving  Party  or  an  Affiliate  independently of any disclosure by the
disclosing  Party to the receiving Party or an Affiliate under this Agreement or
independently  of  any joint research and development activities of Licensee and
Licensor  which  may  occur  under  a  separate  agreement.  Any  Confidential
Information  disclosed  shall  not  be deemed to fall within the confidentiality
exceptions  of  this  Section 7.03 merely because it is embraced by more general
                      ------------
information.  In  any such case set forth in Section 7.03(a), (b), (c), and (d),
                                             ---------------  ---  ---      ---
the  receiving Party shall keep confidential and not disclose to any third party
that  any  such  information  was  also  made  available  to  or acquired by the
receiving Party or an Affiliate from the disclosing Party, and such release from
the  secrecy  obligation shall not be considered as a license to make, sell, use
or  operate  under  any  of  the  disclosing  Party's  proprietary  rights.
7.04     The  receiving Party shall limit access to the Confidential Information
disclosed  to  it  to those employees of the receiving Party or an Affiliate who
reasonably  require  the  same  and  who  are  under  a  legal  obligation  of
confidentiality  on  the  terms set forth in Section 7.01 and Section 7.03.  The
                                             ------------     ------------
receiving Party shall be responsible to the disclosing Party for the performance
by  its  employees  of  their  confidentiality obligations.  The receiving Party
shall  keep a record of any Confidential Information marked "Limited Access" and
the  identity  of  each  employee  who has access to Confidential Information so
marked.  The  receiving  Party  shall  inform the other Party of the identity of
each  such  employee  within  30  days  of  disclosure.
7.05     In  the  event  that  a  Party  which  is  recipient  of  Confidential
Information  from  the  other  Party  is  requested  or  required by deposition,
interrogatory,  request  for  documents, subpoena, civil investigative demand or
similar  process  to  disclose any such  Confidential Information, the receiving
Party  shall  provide  the  disclosing  Party with prompt written notice of such
request  or  requirement  prior  to  making  the requested disclosure, and shall
cooperate  with  the  disclosing  Party  so that the disclosing Party may seek a
protective  order  or  other  appropriate  remedy or, if the disclosing Party so
elects,  waive  compliance  with  the terms of this Agreement. In the event that
such  protective order or other remedy is not obtained, the receiving Party  may
disclose  only that portion of the Confidential Information which the disclosing
Party  is  advised  by  counsel  is  legally  required  to  be  disclosed.
7.06     The  Parties agree that they will each take all actions and execute all
documents,  and  shall cause their employees, agents and contractors to take all
actions  and  execute all documents as are necessary or appropriate to carry out
the  provisions of this Article 7 or to assist each other in securing protection
                        ---------
of intellectual property and Confidential Information referenced in this Article
                                                                         -------
7.
7.07     With  respect  to  any  catalyst  furnished  by Licensor to Licensee or
Syntroleum  for  use  by Licensee at the Licensed Facilities, Licensee will not,
and  Licensee  will  not allow any other person to, analyze, break down, reverse
engineer  or  otherwise  seek  to determine the chemical composition, except for
loss  on  ignition  and bulk density, of any such catalyst, except that Licensee
shall  be  entitled  to (a) perform analyses that Licensor may from time to time
specifically  authorize  in  writing,  to the extent required for monitoring the
performance  of  the  Licensed  Facilities  and for regeneration, reclamation or
disposal of spent catalysts, such authorization not to be unreasonably withheld,
and  (b)  provide results of the aforementioned analyses to other parties to the
extent  required  for  regeneration, reclamation or disposal of spent catalysts,
but  only  after such other parties have entered into an agreement with Licensor
in  a  form attached hereto as Exhibit B of the attached Site License Agreement.
                               ---------
Licensor  will  be  provided  with  a  copy  of all such analyses which has been
approved  in  writing  prior  to  release  to  other  parties.
                                 8.  ASSIGNMENT
                                 --------------
8.01     Subject  to  Section  8.02,  this  Agreement  shall  not be assigned by
                      -------------
Licensee  without  the prior written consent of the Licensor, which consent will
not  be  unreasonably withheld, except that Licensee may, upon written notice to
Licensor,  assign  this  Agreement  to a department, bureau, division, agency or
similar  governmental  entity  that  is under the control of Licensee.  Under no
circumstances shall this Agreement be assigned to Exxon Corporation, Royal Dutch
Shell  or  Sasol  Limited.
8.02     Licensee  may  assign  this  Agreement  to any corporation or authority
which  is  wholly-owned  by  Licensee.
                            9.  TERM AND TERMINATION
                            ------------------------
9.01     This  Agreement  shall  extend  to  the later of (a) fifteen (15) years
from  the Effective Date, (b) five years from the nominal facility maturity date
of  the  last  tranche  offered  under the Loan Agreement, or (c) five (5) years
following  the  effective  date  of the last Site License Agreement issued under
this  Agreement.
9.02     Upon  the  written  notice  from  Licensor  to Licensee of any material
default  under  this  Agreement  (including  any  material  default under a Site
License  Agreement),  other  than  as  noted  in  Section 2.05(c), all rights of
                                                  ---------------
Licensee  under  Section  2.05  of this Agreement, shall be suspended until such
                 -------------
default  is  cured  by Licensee.  Licensee's right to operate any Licensed Plant
which  is in compliance with its Site License Agreement shall not be affected by
either  a  default  under this Agreement or a default under another Site License
Agreement for another Licensed Plant. If a material default under this Agreement
shall continue for a period of one year following written notice of such default
to  Licensee  from Licensor without being cured by Licensee, then Licensor shall
have  the  right  to (a) suspend all rights of Licensee under this Agreement, or
(b)  terminate  this  Agreement upon written notice to Licensee.  The actions by
Licensor under this Section 9.02 shall not prejudice Licensor from enforcing any
                    ------------
claim  which  it  may  have  for damages or otherwise on account of the default.
9.03     Termination  of  this  Agreement  shall  not:
(a)     relieve  Licensee  of its obligations to account for and pay all amounts
due  Licensor  under  this Agreement and all Site License Agreements executed by
Licensee  under  this  Agreement;
(b)     affect  any  rights  granted  Licensee  under Site License Agreements in
effect  on  the  date  of  termination;
(c)     affect  any  rights  granted  under  Article  4 with respect to Licensee
                                             ----------
Patent  Rights  and  Licensee  Technical  Information,  which  shall  survive
termination  in  accordance  with  its  terms;  or
(d)     affect  the  obligations of Licensor and Licensee under Articles 6 and 7
                                                                ----------     -
and  Sections 8.01 and 11.02, which shall survive termination in accordance with
     -------------     -----
their  terms.
9.04     No  Party  to  this  Agreement  shall  be  in default in performing its
obligations under this Agreement to the extent that performing such obligations,
or  any  of  them,  is delayed or prevented by revolution, civil unrest, strike,
labor  disturbances,  epidemic,  accident,  fire,  lightening,  flood,  storm,
earthquake, explosion, blockage or embargo, or any law, proclamation, regulation
or  ordinance,  or  any  other  cause that is beyond the control and without the
fault  or  negligence  of  the Party asserting the benefit of this Section 9.04.
                                                                   ------------
Each  Party  shall do all things reasonably possible to remove the cause of such
default.
9.05     Licensee  shall  have the right to terminate this Agreement in its sole
discretion,  with  or  without  cause,  upon  the  delivery of written notice of
termination  to  Licensor  no  less  than  90  days  prior  to  the date of such
termination.
                        10.  JOINT DEVELOPMENT ACTIVITIES
                        ---------------------------------
10.01          Licensee  shall  have the right during the term of this Agreement
to  propose  to  Licensor  one or more joint development projects of interest to
Licensee  and  relating  to development and/or commercialization of a Conversion
Process,  which  shall  be  governed by a separate written agreement between the
parties  which  shall  not be inconsistent with the terms and conditions of this
Agreement.  Such  projects shall be open to all other Persons as mutually agreed
by the Parties and who agree to pay project costs in a manner agreed upon by the
parties;  provided, however, Licensee shall have the right to proceed alone with
funding  any  such  project.
10.02          A  project  team will be established for each project.  Each team
will  be  made up of members from the Parties who will be appointed by the Party
they  represent.  Each  Party  has  full  discretion over the selection of their
respective  team  members and reserves the right to modify, change, condition or
terminate  any  such  person's  membership  on  the  team.
10.03          Each  project  team  will (a) agree upon a budget for the project
and  the  respective obligations of the Parties for project expenses, (b) define
the schedule and management controls for each project, (c) identify and assemble
the  necessary  resources,  both  internal and external to the Parties, for each
project,  (d)  allocate  funds  and  authorize  expenditures on a periodic basis
related  to each project, (e) communicate to Licensor and Licensee the status of
the  work  on  a  monthly  basis,  and  (f) submit final reports to Licensor and
Licensee.  The  team  shall  hold  meetings  on an "as needed" basis at mutually
acceptable  times  and locations to review and discuss the status and results of
all  projects.
                               11.  MISCELLANEOUS
                               ------------------
11.01     This  Agreement  embodies  the entire intent of the Parties and merges
all prior oral and written agreements between the Parties hereto with respect to
subject  matter  hereof.  No  stipulation,  agreement,  representation  or
understanding  of  the  Parties  hereto  shall  be  valid  or enforceable unless
contained  in  this Agreement or in a subsequent written agreement signed by the
Parties  hereto.  In  the  event of a conflict between this Agreement and a Site
License  Agreement  executed  pursuant  to  this  Agreement, this Agreement will
govern.
11.02     This  agreement  shall be governed by and construed in accordance with
the  laws of the State of Delaware, without regard to conflict of law provisions
thereof.  Any  dispute  claim  or controversy arising out of or relating to this
Agreement on the breach, termination, scope or invalidity (including any dispute
relating  to  patent  invalidity  or  infringement)  of  this Agreement shall be
finally  settled  by  arbitration  conducted  in  accordance  with  the  Rules
Conciliation  and  Arbitration  of  the  International  Chamber  of  Commerce.
(a)     The  arbitration  panel  shall  consist  of  one arbitrator who shall be
nominated  with  the  concurrence  of both parties; failing their agreement, the
arbitrator  shall  be appointed by the Court of Arbitration of the International
Chamber  of  Commerce.
(b)     The  arbitration  shall  be  held  in  New  York  City,  New  York, USA.
(c)     The  arbitration  shall  be  conducted  in  the  English  language.
(d)     The  applicable  procedural rules shall be the Rules of Conciliation and
Arbitration  of  the  International  Chamber  of  Commerce.  In  any  case  not
specifically  covered by those Rules, the arbitrator shall himself formulate the
rules  of  procedure  to  be  followed.
(e)     Arbitration  awards rendered shall not be subject to any form of appeal,
but  judgment  upon  awards  rendered  may  be  entered  in  any  court  having
jurisdiction, or application may be made to such court for a judicial acceptance
of  the  award  and  an  order  of  enforcement,  as  the  case  by  may  be.
11.03     This  Agreement  does not grant and shall not be construed as granting
any  license,  authorization  or  consent,  to  either  Party by the other Party
hereto,  to  use any name, trademark, service mark or slogan of the other Party.
A Party shall not use the other Party's name without written consent, except for
the  identification  of  the  other  Party as a Licensee or Licensor of Licensor
Technology.  The  terms  of  this  Agreement will be maintained in confidence by
each  Party  subject to the same standard of care each Party uses to protect its
confidential  information,  except  as  required  by law.  A press release which
includes  the  name  of  the other Party must have prior written approval of the
other  Party,  except  as  required  by  law.
11.04     Failure  of  either  Licensor  or Licensee at any time or from time to
time to exercise any of its rights under this Agreement or to insist upon strict
performance  of  the  other  Party's obligations hereunder shall not be deemed a
waiver  of  or  to  limit any of such rights or obligations with respect to such
rights  or  obligations  or  any  subsequent  occurrence.
11.05     Licensee may publish the existence of this Agreement but agrees not to
disclose,  without the written consent of the Licensor, any of the terms of this
Agreement  or  any portion thereof, or any amendment concerning the same, except
to  Persons directly involved with design, financing, construction, or operation
of  a  Licensed  Plant  on  a  need-to-know  basis  or  as  required  by  law.
11.06     Licensee  agrees  that  all Licensor information, technology, patents,
and  the  product  produced  directly  by the use thereof, when used outside the
United States of America, shall be used by Licensee subject to and in accordance
with regulations of any department or agency of the United States of America and
Licensee shall not re-export or transship or agree to re-export or transship any
such  Licensor  information,  technology,  patents,  and  the  product  produced
directly  by the use thereof to any destination prohibited by United States law,
including, without limitation, United States executive orders and administrative
orders,  rules,  and regulations or to any destination requiring the approval of
the  United  States  government for such re-exportation or transshipment until a
request  to  do  so  has  been  submitted  to  and approved by the United States
government  and notice of such approval has been provided to Licensor.  Licensee
shall  not  (i)  enter  into  a  transaction  or  dealing,  including,  without
limitation,  re-exporting  the  Licensed  Technology,  or  causing,  financing,
guaranteeing,  authorizing or facilitating an action to enter into a transaction
or dealing, that might reasonably be considered a violation of United States law
by either Licensor or Licensee, or (ii) disclose information in a way that might
reasonably  be considered a violation of United States law by either Licensor or
Licensee.
11.07     Should  any  part or provision of this Agreement be held unenforceable
or  in  conflict with the law of any state or of the United States of America or
of  any foreign country, the validity of the remaining parts or provisions shall
not  be  affected  by  such  holding.
11.08     All  notices  hereunder  shall be addressed to the Parties as follows:
     (a)     If  to  Licensor:
          Syntroleum  Australia  Licensing  Corporation
          1350  S.  Boulder,  Suite  1100
          Tulsa,  OK  74119-3295
          Fax  No.:  (918)  592-7979
          Phone  No.:  (918)  592-7900
          ATTN:  Office  of  the  President
          with  copy  to:
          Syntroleum  Corporation
          1350  S.  Boulder,  Suite  1100
          Tulsa,  OK  74119-3295
          Fax  No.:  (918)  592-7979
          Phone  No.:  (918)  592-7900
          ATTN:  Office  of  the  General  Counsel
     (b)     If  to  Licensee:
          Invest  Australia
          Department  of  Industry  Science  and  Resources
          Commonwealth  of  Australia
          GPO  Box  9839
          20  Allara  Street
          Canberra  ACT  2601
          Australia
          ATTN:  General  Manager
Any  notice required or permitted to be given under this Agreement by one of the
Parties  to  the  other  shall be deemed to have been sufficiently given for all
purposes  hereof  if  mailed  by  registered or certified mail, postage prepaid,
addressed  to  such  Party  at  its  address  indicated  above,  electronically
transmitted and acknowledged by the other Party or by actual delivery of written
notice  to  the  other  Party.
                           12.  GOODS AND SERVICES TAX
                           ---------------------------
12.01     The  payments specified in this Agreement have been calculated without
taking  GST  into  account.
12.02     If  any GST is payable on a taxable supply by the Licensor under or in
connection  with  this  Agreement:
(a)     the Licensor warrants that, at the time of entry into this agreement and
unless  and  until  otherwise  notified  in  writing  to  the  Licensee:
(i)     it  is  a  non-resident;  and
(ii)     it does not make the supply through an enterprise that it carries on in
Australia  or  through  a  resident  agent;
(b)     the Licensee warrants that, at the time of entry into this Agreement and
unless and until otherwise notified in writing to the Licensor, it is registered
for  GST  purposes;  and
(c)     the  Parties  hereby  agree  that  the  GST on the taxable supply by the
Licensor  will  be payable by the Licensee in accordance with Section 83-5(1) of
the  GST  Law.
12.03     If  the  requirements  of  Section  83-5(1)  of  the  GST  Law are not
satisfied,  either  because:
(a)     the  Licensor provides notice to the Licensee in accordance with Section
12.02(a);  or
(b)     for  any  other  reason,
the  provisions  of  Section  12.04  will  apply  to  the  taxable  supply.
                     --------------
12.04     If  GST  is  imposed  on any supply by a party (the "Supplier") to the
other  party  (the  "Recipient") under or in connection with this Agreement, the
Recipient  must  pay  to  the  Supplier,  subject  to the receipt of a valid tax
invoice,  the  amount  of GST imposed at the same time as and in addition to the
amount  the Recipient is required to pay the Supplier for the supply in question
(and  without  setoff),  or  on  demand.
12.05     In  Article  12:
              -----------
"GST  Law" means the A New Tax System (Goods and Services Tax) Act 1999 together
with  all  associated  regulations  and  legislation.
"GST,"  "enterprise,"  "taxable supply," "tax invoice," "non-resident," "carried
on  in Australia" and "resident agent" have the meaning given to them in the GST
Law.
12.06     The  Licensee  and  the  Licensor  acknowledge  and  agree  that  the
warranties  contained  in  Section 12.02 are intended solely for the purposes of
                           -------------
Article  12,  and  that,  accordingly,  any  breach  of  such warranty shall not
  ---------
constitute  a  default or an event of default under this Agreement or any of the
  -----
documents  related  to  the transaction contemplated by this Agreement and shall
not  otherwise  have any consequences for the purposes of this Agreement and any
of  the  documents  related  to  the transaction contemplated by this Agreement,
except  as  expressly  provided  in  Sections  12.03  and  12.04.
                                     ---------------       -----

     IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date
set  forth  above.
                              LICENSOR
                              SYNTROLEUM  AUSTRALIA  LICENSING CORPORATION

                              By:           /s/
                                   ---------------------
                                   Randall  M.  Thompson
                                   Vice  President  and
                                   Chief  Financial  Officer
                                   Date:     8/3/00
                                            -------

                              LICENSEE
                              COMMONWEALTH  OF  AUSTRALIA

                              By:                   /s/
                                              ------------ ---
                              Name:           Mike  Holthuyzen
                                              ----------------
                              Title:          Deputy  CEO
                                              ----------------
                              Date:           8/3/00
                                              ----------------

                            ATTACHMENT  1
                           -------------

                 REQUEST  FOR  SITE  LICENSE  AGREEMENT
                 --------------------------------------

Syntroleum  Australia  Licensing  Corporation
1350  South  Boulder
Suite  1100
Tulsa,  Oklahoma  74119-3295
Attn:  Office  of  the  President
Gentlemen:
Please  issue,  for  immediate  execution,  a Site License Agreement of the form
identical to Attachment 3 of our License Agreement dated August 3, 2000 (License
             ------------
Agreement),  covering  the construction and operation of a Licensed Plant at the
location  set  forth below.  The following information is provided for inclusion
in  the  execution  copies  of  the  Site  License  Agreement:
Licensed  Plant  Location:
City:  _____________________________  State/Province:  _________________
Country:  __________________________  Onshore/Offshore:  ______________
Latitude:  __________________________  Longitude:  ____________________
Maximum  daily  design  capacity,  as  defined  by the Process Design Package is
__________  barrels  of Synthetic Product per day.  To the extent that more than
one licensee of the Licensor Technology (as defined in the License Agreement) is
a  participant in the Licensed Plant, the design capacity of such Licensed Plant
should  be  applied  against  such  licensees' remaining aggregate maximum daily
design  capacities  for  licensed  facilities  under  their  respective  license
agreements  as  follows:
                                   Aggregate  Design
     Entity                              Capacity  Deduction
     ------                              -------------------
______________________________________     ________________
______________________________________     ________________
______________________________________     ________________
We  agree  to pay (subject to Section 5.05 of License Agreement) License Fees in
accordance  with  the  applicable  provisions  of  Attachment  2  of the License
                                                   -------------
Agreement.
Please  forward the appropriate materials to initiate the Process Design Package
and  acknowledge  your  receipt  of  this  request.
Very  truly  yours,
COMMONWEALTH  OF  AUSTRALIA

By____________________________
______________________________
Name
______________________________
Title

                                  ATTACHMENT 2
                                  ------------

                             LICENSE FEE CALCULATION
                             -----------------------

I.     For  purposes  of  this  Attachment 2, the following terms shall have the
                                ------------
meanings  ascribed  thereto:
A.     "LICENSED  PLANT"  means  the  Licensed  Plant  in  which  a Site License
Agreement  for  such  plant  is  issued to and remains (subject to assignment in
accordance  with  Section  8  of  the Site License Agreement) in the name of the
Licensee  who  has  executed  this  Agreement  with  Licensor.
B.     "ROYALTY  RATE"  shall  mean  (i)  the  lowest royalty rate per Barrel of
Synthetic  Product  accepted  by  Licensor  for  a Site License Agreement with a
non-affiliate  for  a  facility  of  comparable size, in the Licensed Territory,
which  is not under a master preferred license agreement, during the twelve (12)
months  immediately  preceding the execution date of the applicable Site License
Agreement  under  this  Agreement, or (ii) if no such Site License Agreement has
been  executed  during  the  twelve  (12) months immediately preceding, then the
royalty  rate per Barrel of Synthetic Product in the last Site License Agreement
with  a non-affiliate, in the Licensed Territory, executed by Licensor, which is
not  under  a  master  preferred  license  agreement,  or  (iii)  if none of the
foregoing  applies,  then  US$0.495  per  Barrel  of  Synthetic Product.  Market
Royalty  Rate  does not include the catalyst price as provided for under Section
                                                                         -------
2.03  of  this  Agreement.
 ---
II.     For  each Site License Agreement executed for Licensed Plants under this
Agreement,  Licensee  agrees  to  pay  (subject  to  Section 5.05 of the License
Agreement)  License  Fees  to  Licensor  on  a prepaid license basis as follows:
A.     Licensee  agrees  to  pay  Licensor  a  one-time,  prepaid  License  Fee
calculated  in  accordance  with  the  following  formula:
                       License Fee = "C" x 350 x 7.5 x "R"
wherein:
"C"     =     the  maximum  daily  design  capacity,  as  defined by the Process
Design  Package,  of such Licensed Plant to produce Marketable Products measured
in  Barrels  of  Synthetic  Product  per  day  for  which such Licensed Plant is
originally  designed  and  constructed,  and
"R"     =     the  Royalty  Rate.
and  payable  in  installments  as  follows:
(i)     20%  within  thirty  (30)  days  after the execution of the Site License
Agreement  for  such  Licensed  Plant;
(ii)     30%  within  thirty  (30)  days  after  delivery  of the Process Design
Package  or within one hundred twenty (120) days after the execution of the Site
License  Agreement  for  such  Licensed  Plant,  whichever  first  occurs;
(iii)     20%  within  thirty  (30)  days  after  the  commencement  of  field
construction  move-in;
(iv)     30% within one-hundred and twenty (120) days after the Start-Up Date of
the  Licensed Plant or a successful Performance Test as specified in any Process
Guarantee  and  Performance  Test  Agreement,  whichever  first  occurs.
B.     Capacity Adjustments:  In the event the actual production capacity of any
       --------------------
Licensed  Plant,  under  II.A.  above, is determined to have either exceeded the
original maximum daily design capacity established in its Site License Agreement
or  is increased through major equipment modification, by more than five percent
(5%)  or  by more than 500 barrels per day, at any time after the Start-up Date,
Licensee  shall  pay (subject to Section 5.05 of the License Agreement) Licensor
an  additional  License Fee, on a prepaid basis, equal to the difference between
(a)  the  prepaid  License  Fee  as  would  have been calculated with the higher
production  capacity  for  such  Licensed  Plant  substituted  for  "C"  in  the
calculation  method  set  forth in II.A. above, and (b) the License Fee as would
have  been  calculated  for such Licensed Plant by the method set forth in II.A.
above  using the original maximum daily design capacity established in each Site
License  Agreement.  The  incremental  License  Fee  due  will be reduced by any
previous  incremental adjustments.  Such additional License Fee shall be payable
within  thirty  (30)  days  after  the  end  of  the calendar year in which such
increase  in  production  capacity  of  such Licensed Plant occurs.  Incremental
License  Fees  for increased production capacity in any Licensed Plant shall not
be  due if the increased production capacity is the result of the initial use of
Licensee  Patent Rights or Licensee Technical information.  The total cumulative
incremental  capacity  adjustments  under  each  Site  License Agreement will be
limited  to  50  percent  of  the  initial  maximum  daily  capacity  under such
Agreement.
III.     Subject  to  Section 5.05 of the License Agreement, upon payment of all
fees  due  under  the  Site  License Agreement for each Licensed Plant, Licensee
shall be deemed to have acquired a fully paid license for such Licensed Plant up
to  the  original  maximum  daily  design  capacity or any adjusted daily design
capacity  made  under the provisions of II.B. above.  Any additional incremental
increases  in  the Licensed Plant capacity will be subject to additional License
Fees  as  calculated  under  Incremental  Adjustments  defined  under II. above.
IV.     All  payments  required  hereunder shall include a statement showing the
details  supporting  the  calculation  of the License Fees being paid.  Licensee
shall  keep accurate and complete records of all natural gas feedstock processed
(volume  and  composition) and all Synthetic Product produced at and either used
internally  within or removed from each Licensed Plant to enable verification of
statements  and  payments  rendered  to  Licensor hereunder.  Licensee agrees to
permit  Licensor,  at Licensor's expense,  to inspect such records on reasonable
notice  and  at  reasonable intervals during normal business hours to verify the
fees  paid  and  payable  under  this  Agreement.

                                  ATTACHMENT 3
                                  ------------
                           SAMPLE - NOT FOR SIGNATURE
                           --------------------------

                             Site License Agreement
                                     Between
                   Syntroleum Australia Licensing Corporation

                                       and

                            Commonwealth of Australia
                                  CONFIDENTIAL

                             SITE LICENSE AGREEMENT
                             ----------------------

     THIS  SITE LICENSE AGREEMENT is made and entered into as of this ___ day of
____________,  ______ by and between Syntroleum Australia Licensing Corporation,
a  Delaware  corporation  ("Licensor"),  and  the  Commonwealth  of  Australia
("Licensee").

                                    RECITALS
                                    --------
     A.     WHEREAS,  Licensor has entered into the Syntroleum License Agreement
with  Syntroleum pursuant to which Licensor has licensed from Syntroleum certain
patent  rights  and  technical information relating to a Conversion Process; and
     B.     WHEREAS,  under  the provisions of the Syntroleum License Agreement,
Licensor  has the right to grant a sublicense to Licensee to use Licensor Patent
Rights  and Licensor Technical Information in practicing of a Conversion Process
in  Licensed  Facilities  in  the  Licensed  Territory;  and
     C.     WHEREAS,  Licensor  and  Licensee  have  entered  into  the  License
Agreement  pursuant  to  which Licensor has sublicensed to Licensee the right to
use  Licensor  Patent  Rights  and Licensor Technical Information in producing a
Conversion  Process in Licensed facilities in the Licensed Territory pursuant to
one  or  more  site  license  agreements;  and
     D.     WHEREAS,  Licensee  desires to enter into this non-exclusive limited
license  with  Licensor  to  use  Licensor  Patent Rights and Licensor Technical
Information in practicing a Conversion Process at the Licensed Plant to make and
sell  Marketable  Products.
     NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth  in  this  Agreement,  the  Parties  agree  as  follows.

                                 1.  DEFINITIONS
                                 ---------------
     The  following  terms  (whether  or  not  underscored)  when  used  in this
Agreement,  including its preamble and recitals, shall, except where the context
otherwise  requires,  have  the  following meanings (such meanings to be equally
applicable  to  the  singular  and  plural  forms  thereof).
1.01     "AFFILIATE"  means, with respect to each Party, any Person in which the
Party  or  its  parent  company(ies)  (one or more parent companies in an upward
series) shall at the time in question directly or indirectly own a fifty percent
(50%)  or  more interest in such Person.  It is understood that:  (a) a Party or
its  parent company(ies) directly owns a fifty percent (50%) or more interest in
a  Person  if that Party or its parent company(ies) individually or collectively
hold(s) shares carrying fifty percent (50%) or more of the voting power to elect
directors  or  other  managers  of  such  Person  and  (b) a Party or its parent
company(ies)  indirectly owns a fifty percent (50%) or more interest in a Person
if  a  series of companies can be specified beginning with a Party or its parent
company(ies),  individually  or  collectively,  and  ending  with such Person so
related  that  each  company  of the series, except such Person, directly owns a
fifty  percent  (50%)  or  more  interest  in  a  later  company  in the series.
1.02     "AGREEMENT"  means  this  Site  License  Agreement.
1.03     "BARREL"  means  forty-two (42) gallons of two hundred thirty-one (231)
cubic  inches  each,  measured  at  sixty  degrees Fahrenheit (60 F) and one (1)
atmosphere  pressure.
1.04     "CHAIN-LIMITING  CATALYST"  means  a  type  of  catalyst  for  use in a
Fischer-Tropsch  Reaction  the  primary  products  of  which  are  predominately
hydrocarbon  molecules  of twenty (20) or fewer carbon atoms which remain liquid
at  ambient  temperature  and  pressure.
1.05     "CONFIDENTIAL  INFORMATION"  means  information of Licensor or Licensee
disclosed  to  the  other  Party  under  this  Agreement, including any formula,
pattern,  compilation,  program,  apparatus, device, drawing, schematic, method,
technique,  know-how,  process  or  pilot  plant  data,  -and  other  non-public
information  such  as  business  plans  or  other  technology that:  (a) derives
economic  value, actual or potential, from not being generally known to, and not
being  readily  ascertainable  by  proper means by, other persons who can obtain
economic  value  from  its  disclosure or use, and (b) is the subject of efforts
that  are  reasonable  under  the  circumstances  to maintain its secrecy, which
information  shall  be disclosed in writing and labeled as "Confidential" or the
equivalent, or if disclosed verbally or in other non-written form, identified as
such  at  the  time  of  disclosure  and thereafter summarized in writing by the
disclosing  Party  within  thirty  (30)  days  of  such  initial  disclosure.
Confidential Information includes, without limit, Licensor Catalyst Information,
Licensor  Technical  Information,  and  Licensee  Technical  Information.
1.06     "CONTRACTOR"  shall  mean  any engineering company approved by Licensor
(or  Syntroleum),  to  perform  the  detailed  engineering,  construction  or
construction  management  in  connection  with the Licensed Plant from a list of
approved  companies.  Licensor  may,  from  time  to  time,  modify  the list of
companies.
1.07     "CONVERSION  PROCESS"  means any process for the conversion of normally
gaseous  hydrocarbons  into a mixture of hydrocarbons which may be a combination
of  normally  gaseous, liquid, or solid hydrocarbons at ambient temperatures and
pressures and comprised of (a) autothermal reforming of a feed stream consisting
substantially of gaseous hydrocarbons in the presence of air, or oxygen-enriched
air  to  create  an  intermediate  feed  stream  containing  carbon monoxide and
molecular  hydrogen, and (b) reacting the intermediate stream in the presence of
a  Fischer-Tropsch  catalyst  to  produce  a  product  stream  consisting of any
combination  of gaseous, liquid or solid hydrocarbons at ambient temperature and
pressure.  The Conversion Process includes all associated internal processes and
technologies  such  as  heat  integration,  separation,  or the recycle, use, or
consumption  of hydrocarbons or other products.  The Conversion Process does not
include any technology related to (i) pre-treatment of the natural gas feedstock
or  (ii)  post-processing the Fischer-Tropsch product stream for a purpose other
than  that  defined  above.
1.08     "EFFECTIVE  DATE"  means  the  date set forth in the first paragraph of
this  Agreement.
1.09     "FISCHER-TROPSCH  CATALYST"  means  any  catalyst  for  use  in  a
Fischer-Tropsch  Reaction including, but not limited to, Chain Limiting Catalyst
and  High  Alpha  Catalyst.
1.10     "FISCHER-TROPSCH  REACTION"  means  the  catalytic  reaction  of carbon
monoxide  and  hydrogen,  the  primary  products  of  which  are  hydrocarbons.
1.11     "HIGH  ALPHA  CATALYST" means a type of Fischer-Tropsch Catalyst, whose
alpha  number,  as calculated by the Schulz-Flory distribution equation, is 0.85
or  higher.
1.12     "INVENTIONS  OR  IMPROVEMENTS" means any process, formula, composition,
device,  catalyst  (including  both  autothermal  reforming  catalysts  and
Fischer-Tropsch  Catalysts),  apparatus,  technology,  know-how,  operating
technique,  improvement,  modification,  or  enhancement  relating  to  the use,
operation,  or  commercialization  of  a  Conversion  Process  and  the products
(including  Synthetic  Product)  of  a  Conversion Process, which is discovered,
made,  designed, developed or acquired by Licensee, solely or with others, since
the  date  the  License Agreement, or used in a Licensed Plant, in each instance
whether  patentable  or not, including, without limitation, patents, copyrights,
and Confidential Information and further including the full scope and content of
the  intellectual and tangible property included therein and produced therefrom,
e.g.,  drawings,  prints, chemical formulae, prototypes, data, computer programs
and  software,  and  the like.  Inventions or Improvements shall not include any
information  relating  to  methods  of  manufacturing  catalysts  for use in the
Conversion  Process.
1.13     "LICENSE  AGREEMENT"  means  the License Agreement between Licensor and
Licensee  dated  August  3,  2000.
1.14     "LICENSE  FEE"  means  the fees paid by Licensee to Licensor under this
Agreement,  as  consideration  for  granting  this Site License Agreement to use
Licensor  Technology  at  a  Licensed  Plant,  as  calculated in accordance with
Exhibit  A  of this Agreement, and does not include fees related to the purchase
     -----
of  the  associated Process Design Package for such Licensed Plant, any catalyst
or  any  catalyst  markup.
1.15      "LICENSED  PLANT"  means  the  plant  initially  located  at:
City:  ________________________  State/Province:  ______________________
Country:  _____________________  Onshore/Offshore:  ___________________
Latitude:  _____________________  Longitude:  _________________________
with  an  initial  maximum  daily  design  capacity of ______________ Barrels of
Synthetic  Product  per  day  licensed  under  this  Agreement  to  use Licensor
Technology  to  practice  a  Conversion  Process to produce Marketable Products.
1.16     "LICENSED  TERRITORY"  means  the  countries  of  Australia,  Papua New
Guinea, East Timor and Indonesia  and their respective territorial waters except
(a)  any  such  country  that,  from  time  to time, may be prohibited, or whose
citizens  (considered  as  a  group)  may  be  prohibited,  by the United States
government from receiving Licensor Technology or the products thereof or (b) any
such  country the inclusion of which in the definition of Licensed Territory is,
or  could  in  good  faith  be  argued  to  be, prohibited by United States law,
including, without limitation, United States Executive Orders and administrative
orders,  rules and regulations.  Licensed Territory shall include territories or
territorial  waters  which  are the subject of official dispute between or among
countries  only  if  all  countries  claiming sovereignty, a sovereign right, or
jurisdiction  over such territories or territorial waters are otherwise included
within  the  definition  of  such  term.
1.17     "LICENSEE  PATENT  RIGHTS" means all rights with respect to patents and
patent  applications  of  all  relevant  countries to the extent that the claims
cover  features or aspects of Inventions or Improvements practiced in a Licensed
Plant,  in each case to the extent that, and subject to the terms and conditions
under  which,  Licensee has the right to grant licenses, immunities or licensing
rights  without  having  to  make  payment  to  others.
1.18     "LICENSEE  TECHNICAL  INFORMATION"  means  all unpatented Inventions or
Improvements practiced in a Licensed Plant, in each case to the extent that, and
subject to the terms and conditions under which, Licensee has the right to grant
licenses,  immunities  or  licensing  rights  without  having to make payment to
others.
1.19     "LICENSOR  CATALYST  INFORMATION"  means,  without  limit,  information
relating to any catalyst, catalyst formulation, conditioning procedure, start-up
procedure,  regeneration  procedure,  or  performance  which  are  licensed  by
Syntroleum  to  Licensor  (with right to sublicensee) pursuant to the Syntroleum
License  Agreement.  Licensor  Catalyst  Information  shall  not  include  any
information  relating  to  methods  for  manufacturing  catalysts  for  use in a
Conversion  Process.
1.20     "LICENSOR  CATALYST  PATENT  RIGHTS"  means  all rights with respect to
patents and patent applications of all relevant countries to the extent that the
claims  cover  features  or aspects of catalysts useable in a Conversion Process
(including,  without  limitation,  autothermal  reforming  catalysts  and
Fischer-Tropsch  Catalysts)  and  expressly  excluding  any  process  operating
techniques  or  apparatus or methods for manufacturing such catalysts, which are
licensed  by  Syntroleum  to Licensor (with right to sublicense) pursuant to the
Syntroleum  license  Agreement.
1.21     "LICENSOR  PATENT  RIGHTS" means all rights with respect to patents and
patent  applications  of  all  relevant  countries to the extent that the claims
cover  features  or  aspects  of  a  Conversion  Process  (including,  without
limitation,  any  operating  techniques  and  apparatus  and expressly excluding
Licensor  Catalyst  Patent  Rights) which are licensed by Syntroleum to Licensor
(with  right  to  sublicense)  pursuant  to  the  Syntroleum  License Agreement.
1.22     "LICENSOR  TECHNICAL  INFORMATION"  means  all  unpatented  information
relating  to  a  Conversion  Process  (including,  without limitation, operating
techniques  and  apparatus  for  carrying out a Conversion Process and expressly
excluding  Licensor  Catalyst  Information  and  Reactor  Information) which are
licensed  by  Syntroleum  to  Licensor  (with  right to sublicense) prior to the
termination  of this Agreement; in each case to the extent that, and subject to,
the  terms  and  conditions,  including the obligation to account to and/or make
payments  to  others,  under  which Licensor has the right to disclose and grant
rights  to  others.
1.23     "LICENSOR  TECHNOLOGY"  includes  Licensor  Technical  Information  and
Licensor  Patent  Rights  related  to  the  practice of a Conversion Process and
Licensor Catalyst Information and Licensor Catalyst Patent Rights related to the
use  of  Syntroleum  catalysts  in  the  practice  of  a  Conversion Process but
expressly  excluding the right to make, have made, or sell Syntroleum catalysts.
1.24     "LUBRICANTS"  means  hydrocarbon  base  oils which can be made into, or
blended  with  other  base  oils  to  be made into, without limit (a) automotive
lubricating  oils such as PCMO, HDD, transmission and hydraulic fluids, and gear
oils;  (b)  industrial lubricants such as metalworking lubricants, process oils,
white oils, agricultural spray oils, de-foamers, cutting and quenching oils, and
rubber  processing  oils;  (c)  greases;  (d)  drilling fluids; or (e) any other
specialty  product  agreed  to by the Parties which is not a Marketable Product.
1.25     "MARKETABLE  PRODUCTS"  means  finished hydrocarbon fuels, hydrocarbons
consumed as fuel, or fuel blending stocks including, but not limited to, diesel,
kerosene,  gasoline,  and naphtha processed from Synthetic Product and expressly
excluding  waxes,  chemicals,  Lubricants,  or  any  other specialty hydrocarbon
products  and subject to the express condition that Marketable Products shall be
produced from Synthetic Product at the Licensed Plant or produced from Synthetic
Product  at  a  separate facility operated by the Licensee, or third Persons who
are contractually committed to Licensee to produce only Marketable Products from
such  Synthetic  Product.  Notwithstanding  the  foregoing,  Marketable Products
shall  be  deemed  to  include  any  products:
(a)     produced  at  any  location  by  any  Person  from  a  blended stream of
Synthetic  Product  and  at  least  15  %  by  volume  of  produced crude oil or
condensate,  in  which  the  Synthetic  Product,  before  any  blending,
(i)     remains  a  liquid  at  sixty  degrees  Fahrenheit  (60  F)  and one (1)
atmosphere  pressure  or,
(ii)     has a chemical composition consisting of molecules having at least 85 %
by  volume of which contain no more than 20 carbon atoms each and no more than 1
%  by  volume  of  which  contains  more  than  40  carbon  atoms  each;  or
(b)     produced  at  any  location  by  any  Person  from  a  blended stream of
Synthetic  Product  and at least 40 % by volume produced crude oil or condensate
such  that  after  blending  the  mixture  is  a transportable liquid, expressly
excluding  slurries;  or
(c)     produced  by  blending  individual  fractions  distilled  from Synthetic
Product  with  at  least 50% by volume of like distilled fractions from produced
crude  oil  or  condensate,  in  which  each  distilled  fraction from Synthetic
Product, before any blending, has a chemical composition consisting of molecules
having at least 85% by volume of which contain no more than 20 carbon atoms each
and  no more than 1% by volume of which contains more than 40 carbon atoms each,
wherein  the  blending  is  performed  at  any location by the Licensee or third
Persons  who  are contractually committed to Licensee to produce only Marketable
Products  from  such  Synthetic  Product.
Notwithstanding the above language in this Section 1.24 hydrocarbons consumed as
                                           ------------
fuel  by Licensee at locations which satisfy the conditions of this Section 1.25
                                                                    ------------
are  Marketable  Products, regardless of whether or not they happen to be waxes,
chemicals,  Lubricants,  or  any  other  specialty  hydrocarbon  products.
1.26     "PARTIES"  means  Licensor  and  Licensee.
1.27     "PARTY"  means  Licensor  or  Licensee.
1.28     "PERSON"  means  any  natural person, corporation, partnership, limited
liability  company, firm, association, trust, government, governmental agency or
any  other  entity,  other  than  the  Parties.
1.29     "PROCESS DESIGN PACKAGE" means a compilation of text, figures, drawings
and  documentation, relating to the design and construction of a Licensed Plant,
which  may  be  modified from time to time by mutual consent of the Parties, and
expressly  excluding  Reactor  Information  which is necessary and sufficient to
prepare the detailed design and engineering necessary to construct and operate a
Licensed  Plant.
1.30     "REACTOR INFORMATION" means all information, including, but not limited
to,  data, processes, plans, specifications, flow sheets, designs, and drawings,
relating to the internal design or functions including, without limitation, tube
count,  tube  size  and  configuration  and  catalyst  volume,  relating  to any
Syntroleum  autothermal  reformer or Fischer-Tropsch reactors which, at any time
during  the  term  of  this  Agreement,  Licensor  discloses  to  Licensee.
1.31     "REACTOR  VENDOR" shall mean those fabricators approved by Licensor (or
Syntroleum)  to  perform  the  fabrication  and/or  maintenance  and  repair  of
autothermal reformer or Fischer-Tropsch reactors for installation and use in the
Licensed  Plant.  Licensor (or Syntroleum) may, from time to time, add or remove
any  vendor  from  being  a  Reactor  Vendor.
1.32     "START-UP  DATE" means the first full calendar day following a five day
period,  after  completion  of  catalyst  pre-treatment  and  other  preliminary
operations,  during  which  the applicable Licensed Plant produces quantities of
Synthetic  Product  in  an  amount  equal  to at least 75% of the per-day design
production  capacity  of such Licensed Plant averaged over such five day period.
1.33     "SYNTHETIC  PRODUCT"  means  those  hydrocarbons,  having  a  chemical
composition substantially consisting of molecules with five or more carbon atoms
each, produced using Licensor Technology in the practice of a Conversion Process
at  the  Licensed  Plant.
1.34     "SYNTROLEUM"  means  Syntroleum  Corporation,  a  Delaware corporation.
1.35     "SYNTROLEUM  LICENSE  AGREEMENT"  means  the  License Agreement between
Syntroleum  and  Licensor  dated  August  2,  2000.
                         2.  LICENSOR GRANTS TO LICENSEE
                         -------------------------------
2.01     Subject  to the terms and conditions of this Agreement, Licensor grants
to  Licensee  a  limited, non-exclusive, non-transferable (except as provided in
Article  8)  right  and  license  to  use  Licensor  Patent  Rights and Licensor
  --------
Technical  Information  to  design,  construct,  operate and maintain (including
  ------
modify,  replace, or expand within the limits defined in Exhibit A, Section IIB)
  --                                                     ---------  -----------
the  Licensed  Plant  to  practice a Conversion Process to manufacture Synthetic
Product  solely  for  the  purpose  of  producing, using, and selling Marketable
Products  anywhere in the world. This grant by Licensor includes improvements in
a  Conversion  Process  developed or acquired by Licensor for fifteen (15) years
from  the  Effective  Date,  for which Licensor has the right to grant licenses,
immunities  or  licensing  rights  without  having to make payment to others and
which  Licensor  is  offering  for  license  to  others.
2.02     Subject  to the terms and conditions of this Agreement, Licensor grants
to  Licensee  a  limited, non-exclusive, non-transferable (except as provided in
Article  8)  right  to  purchase  from  Reactor  Vendors  the  appropriate
  --------
Fischer-Tropsch and  autothermal reforming reactors for use in the practice of a
  -------
Conversion  Process at the Licensed Plant. Licensee shall have no right to make,
have  made, or sell any reactor based on Reactor Information except as expressly
provided  in  this  Section  2.02.
                    -------------
2.03     Subject  to the terms and conditions of this Agreement, Licensor grants
to  Licensee  (a)  the  right  to  purchase  from  Licensor  the  appropriate
Fischer-Tropsch  Catalyst  and,  from  either  Licensor  or  a  catalyst  vendor
designated  by  Licensor, the appropriate autothermal reforming catalyst for use
in  the  practice  of  a Conversion Process at the Licensed Plant to manufacture
Synthetic  Product  solely  for  the  purpose  of  producing, using, and selling
Marketable  Products  anywhere  in  the  world  and (b) a limited non-exclusive,
non-transferable  (except  as  provided  in  Article  8) right and license under
                                             ----------
Licensor  Catalyst  Patent  Rights and Licensor Catalyst Information to use such
catalysts  in  the  practice  of  a  Conversion Process at the Licensed Plant to
manufacture  Synthetic  Product  solely for the purpose of producing, using, and
selling  Marketable  Products  anywhere in the world. The purchase price for any
catalyst  purchased  by  Licensee from Licensor shall be  equal to the lowest of
(a) Licensor's cost to produce or have produced such catalysts, plus a markup of
twenty  five percent (25%), or (b) if, during the twelve (12) month period prior
to a catalyst purchase by Licensee, the same catalyst (at comparable quantities)
was  sold by Licensor to a third party at a markup less than twenty five percent
(25%),  Licensee  shall be entitled to the lower markup for its current catalyst
purchase.  Licensor  will,  no  more  than  once  per  year,  provide  Licensee
reasonable  access to the relevant books of Licensor to verify the lowest markup
for  such  catalyst.  Licensee  shall have no rights to make, have made, or sell
any  Licensor  Fischer-Tropsch Catalyst or autothermal reforming catalyst, which
is  proprietary  to Licensor.  Beyond the initial catalyst fill for the Licensed
Plant,  Licensee  will  have  the  right  to buy replacement catalyst from other
catalyst  suppliers.  If  Licensor  specifies  in  the Process Design Package an
autothermal  reforming  catalyst  commercially  available  from  a  third party,
Licensee  shall  have  the right to purchase such catalyst directly from a third
party.
2.04     In  the event Licensor for any reason is unable to supply Licensee with
such  amounts of Fischer-Tropsch Catalyst as may be reasonably necessary for the
operation  of the Licensed Plant, Licensor shall provide to one or more catalyst
vendors  designated  by  Licensor the necessary catalyst recipe, together with a
non-exclusive  limited license to make and sell such Fischer-Tropsch Catalyst to
Licensee  for  use  in such Licensed Plant, and Licensee shall have the right to
purchase such Fischer-Tropsch Catalyst from such vendor for use in such Licensed
Plant  on  the  same  terms  (including  price)  as  set  forth in Section 2.03.
                                                                   ------------
2.05
     (a)     The  Licensed  Plant  shall  remain at the initial plant site for a
minimum of (i) seven (7) years from Start-Up Date, or (ii) until the natural gas
reserves  from  which  the  Licensed  Plant  acquires  its  gas supply have been
depleted  to  the point that such reserves are not adequate for operation of the
Licensed  Plant  at  its  design  capacity, whichever first occurs.  Thereafter,
Licensee may relocate the Licensed Plant to a new plant site within the Licensed
Territory without obtaining a new Site License Agreement provided (i) request is
made  by  Licensee to Licensor in the form of Exhibit C in which Licensee agrees
                                              ---------
that  the  Licensed  Plant  will remain at the new site for minimum of seven (7)
years  and  (ii)  the  Licensee  is  not  in  default  under  this  Agreement.
     (b)     Notwithstanding  the  foregoing,  the  Licensed Plant utilizing gas
from  leases,  concessions,  or similar production sharing arrangements in which
Licensee  owns  at  least  a  ten percent (10%) working, net profits, equity, or
other  economic  interest  may,  at any time, be relocated within the geographic
boundaries  of  any  such  leases,  concessions,  or  similar production sharing
arrangements.
     (c)     Nothing  in  this Agreement shall prohibit Licensee from purchasing
gas  from  other  parties to manufacture Synthetic Product at the Licensed Plant
pursuant  to  this  Agreement.
     (d)     In  the  event  that  Licensee  and  Licensor  or  their respective
Affiliates enter into a program for the development of a floating facility using
Licensor Technology under the provisions of a written agreement between Licensee
and  Licensor,  or  their  respective  Affiliates,  the time period set forth in
Section  2.06(a)  of  the License Agreement and Section 2.05 of the Site License
Agreement  will  be  reduced  from  seven  (7)  to  two  (2)  years.

                            3.  TECHNICAL ASSISTANCE
                            ------------------------
3.01     Licensee  shall  enter  into  a  process  design  package  agreement to
purchase  a Process Design Package for the Licensed Plant according to the terms
specified  in  Section  5.02  of  this  Agreement.  At  the request of Licensee,
               -------------
Licensor  agrees to enter (or at the request of Licensee procure that Syntroleum
enters)  into  a  technical  services  agreement to provide technical support to
Licensee  related  to  transfer  of  Licensor  Technology.
3.02     Reactor  Information necessary for the Licensed Plant shall be excluded
from  the Process Design Package. However, those elements of Reactor Information
which  are necessary to fabricate such reactors will be provided by Licensor (or
Licensor  will  procure  Syntroleum  provides  such information) directly to the
Reactor Vendors selected by Licensee to manufacture the autothermal reformer and
Fischer-Tropsch  reactors from Licensor's (or Syntroleum's) then current list of
Reactor  Vendors.  Licensor  may,  from  time to time, add or remove any Reactor
Vendor.
3.03     Except as may be set forth in a Process Design Package, the obligations
of  Licensor  under this Agreement do not include the performing of any basic or
detailed  design,  engineering,  training,  consulting,  start-up,  operating or
maintenance  services  with  respect  to  the  Licensed  Plant.  Licensor's
responsibilities for any such services in the design, construction and operation
(including  maintenance)  of  the Licensed Plant shall be as set forth in one or
more  separate  written  engineering  services  agreement(s)  (if  any)  between
Licensor  and Licensee specifically applicable to such Licensed Plant.  Licensor
will  not  refuse  a  request  by  Licensee to enter into such an agreement with
Licensee  for  such  services  as  are  reasonably requested by Licensee and the
Parties will each act reasonably in agreeing the terms of such agreement.  Where
such  services cannot be provided by Licensor (but can be reasonably provided by
Syntroleum),  Licensor  agrees  to  procure  that  Syntroleum  enters  into such
agreements  with  Licensee.
3.04     Licensor agrees to disclose to Licensee, upon reasonable request but at
least  once a year, (a) additions to Licensor Technology and (b) improvements or
inventions  developed  by  Licensor  or  its  Affiliates  (including Syntroleum)
relating  to  Licensor  Technology  which  have  been commercially used or which
Licensor  determines  are in a stage of development suitable for commercial use.
Licensor  shall  permit  Licensee  to reasonably inspect, at mutually convenient
times,  the  operating procedures, process conditions, material balances, energy
consumption,  catalyst  performance,  and  analyses  of  internal streams and/or
Synthetic  Product  at  Syntroleum's  pilot  plant  which are applicable to such
improvements  or  inventions.
3.05     Licensee  shall  provide Licensor 90 days advance written notice of the
anticipated  Start-up  Date  .  Licensee  agrees  to  permit Licensor and/or its
representatives access to the Licensed Plant at reasonable and convenient times,
for  inspection  and  if  requested by Licensee, training, by representatives of
Licensor.  Licensor shall have the right to charge Licensee a reasonable fee for
any  training  as  may  be  agreed  with  the  Licensee on a case by case basis.
                         4. LICENSEE GRANTS TO LICENSOR
                         ------------------------------
4.01     Licensor  may, no more than one (1) time per year, request and Licensee
agrees to disclose to Licensor in writing any Inventions or Improvements related
to  the  Conversion  Process.
4.02     Subject  to the terms and conditions of this Agreement, Licensee grants
to  Licensor  a limited, non-exclusive, irrevocable, royalty free, worldwide (a)
right  and license under Licensee Patent Rights and (b) right and license to use
Licensee  Technical  Information  for  the  design,  construction, operation and
maintenance  (including  modify,  expand and replace) of facilities practicing a
Conversion  Process,  together with the right to grant corresponding sublicenses
of  the  Licensee Patent Rights and the use of Licensee Technical Information to
other  licensees of Licensor Technology for use at a licensed plant practicing a
Conversion  Process,  provided that any such licensee to whom a sublicense is to
be  granted  shall have granted reciprocal rights to Syntroleum to use and grant
sublicenses  under  such  licensee's patent rights and technical information for
the  benefit  of  Licensee.  Licensee shall have the right to charge  Licensor a
reasonable  fee  for  any  training  with  respect to Licensee Patent Rights and
Licensee  Technical  Information as may be agreed with the Licensor on a case by
case  basis.
4.03     Should Licensee, during the term of this Agreement, make any patentable
Inventions  or  Improvements,  Licensee may, at its sole discretion, file patent
applications with respect to such Inventions or Improvements in its own name and
at  its  own  expense,  and  take such other steps as are necessary, in the sole
judgment  of Licensee, to protect its rights in such Inventions or Improvements.
In  the  event  Licensee declines to file any patent application with respect to
any  Inventions  or  Improvements, it shall promptly notify Licensor in a timely
manner  to  allow  Licensor,  at  its  sole  discretion,  to  file  such  patent
application  at its sole expense, and to take such other steps as are necessary,
in  its  judgment,  to  protect  the  Parties'  rights  in  such  Inventions  or
Improvements,  subject  to  Licensee's  obligation  to  account to third parties
therefore  and  provided  that  title  to  such Inventions or Improvements shall
remain  in  Licensee.
4.04     Licensor  and  Licensee  each agree that they will take all actions and
execute all documents and shall cause their employees, agents and contractors to
take  all  actions  and execute all documents as are necessary or appropriate to
carry  out  the  provisions  of  this  Article  4 or to assist each other in the
                                       ----------
preparation,  filing  and  prosecution  of  patent applications or securing such
protection  referenced  in  this  Article  4  when  so  requested.
                                  ----------
4.05     Licensee shall permit Licensor and/or its representatives to reasonably
inspect,  at  mutually  convenient  times,  the  operating  procedures,  process
conditions,  material  balances,  energy  consumption, catalyst performance, and
analyses  of  internal  streams and/or Synthetic Product which are applicable to
Licensee's  Inventions  or  Improvements  used  at  the  Licensed  Plant.
4.06     Licensee  agrees  to  provide,  from  time  to time and upon request by
Licensor,  samples  of  Synthetic  Product  and  Marketable Products as they are
produced  by  any  of  Licensee's Licensed Plants to verify compliance with this
Agreement.  Licensor  agrees  to  limit  its  analysis  of  samples of Synthetic
Product  and  Marketable  Products  to  those  analyses  necessary  to determine
compliance  with  the  definition  of  Marketable  Products.
                           5.  LICENSE AND OTHER FEES
                           --------------------------
5.01     In  consideration  for the rights granted to Licensee by Licensor under
this  Agreement,  the Licensee shall pay (subject to Section 5.05 of the License
Agreement)  License Fees for the Licensed Plant calculated and paid according to
Exhibit  A.
----------
5.02     In  addition  to  the  amounts  to  be paid by Licensee to Licensor (or
Syntroleum  as  the  case  may  be)  under  Section 5.01, Licensee agrees to pay
                                            ------------
Licensor  a  fee  for  the  Process Design Package according to the terms in the
process  design  package  agreement.  Licensee  also  agrees to pay Licensor (or
Syntroleum  as the case may be) for technical services according to the terms in
the  technical  services  agreement,  if  any.
5.03     Unless  otherwise provided in this Agreement, all amounts payable under
this  Agreement  shall  be  paid  by  Licensee to Licensor at Licensor's address
specified in Section 10.08, or to an account at a bank specified by Licensor, in
             -------------
Australian  dollars.
5.04     In  the  event  Licensee is required to withhold any taxes from amounts
payable to Licensor under this Agreement, Licensee agrees to provide Licensor at
the  time  of  such  withholding with a receipt or other evidence reflecting the
deposit  of  such  taxes  with  the  appropriate  governmental  agency.
                         6.  WARRANTIES AND INDEMNITIES
                         ------------------------------
6.01     Licensor  represents  and  warrants  that  it  is  a  corporation  duly
organized, validly existing, and in good standing under the laws of the State of
Delaware,  USA,  and  has full power and authority to enter into and perform its
obligations  under  this  Agreement.  The execution, delivery and performance of
this  Agreement and all documents relating hereto by Licensor have been duly and
validly  authorized by all requisite corporation action and constitute valid and
binding  obligations of Licensor enforceable in accordance with their respective
terms.
6.02     Licensee  represents  and warrants that it has full power and authority
to  enter  into  and  perform its obligations under this Agreement including the
right  to  grant  the  rights  and  licenses  as  set  forth  in Article 4.  The
                                                                 ---------
execution, delivery and performance of this Agreement and all documents relating
hereto  by  Licensee  have  been  duly  and  validly authorized by all requisite
corporate  action  and  constitute  valid  and  binding  obligations of Licensee
enforceable  in accordance with their respective terms.  Licensee represents and
warrants  that the statements made in the Request for Site License Agreement are
true  and  accurate  as  of  the  Effective  Date.
6.03     Except  as  otherwise  expressly  set  forth in this Agreement or other
written  agreement  between  the Parties, LICENSOR MAKES NO AND HEREBY DISCLAIMS
ANY  EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS OF ANY KIND, INCLUDING ANY
WARRANTY  OF  MERCHANTABILITY,  FITNESS  FOR  A PARTICULAR PURPOSE, OR ANY OTHER
WARRANTIES  OR  REPRESENTATIONS  OF  ANY  KIND  TO  LICENSEE, INCLUDING, WITHOUT
LIMITATION,  ANY  WARRANTY  OR  REPRESENTATION  WITH  RESPECT TO USE OF LICENSOR
TECHNOLOGY  AS  AUTHORIZED  HEREUNDER.
6.04     EXCEPT  FOR  UNAUTHORIZED DISCLOSURE OR USE OF CONFIDENTIAL INFORMATION
OR  UNAUTHORIZED  USE OF PATENT RIGHTS UNDER THIS AGREEMENT, IN NO EVENT SHALL A
PARTY BE LIABLE TO THE OTHER FOR ANY SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE, OR
EXEMPLARY  DAMAGES,  INCLUDING  WITHOUT  LIMITATION,  LOST  PROFITS  OR SAVINGS,
REGARDLESS  OF  THE FORM OF ACTION GIVING RISE TO SUCH A CLAIM FOR SUCH DAMAGES,
WHETHER  IN  CONTRACT OR TORT INCLUDING NEGLIGENCE, EVEN IF LICENSOR OR LICENSEE
HAS  BEEN  ADVISED  OF THE POSSIBILITY OF SUCH DAMAGES.  BUT IF A PARTY IS FOUND
LIABLE,  DESPITE  THE  ABOVE LANGUAGE, TO THE OTHER PARTY FOR SPECIAL, INDIRECT,
CONSEQUENTIAL, INCIDENTAL, PUNITIVE, OR EXEMPLARY DAMAGES THEN THE MAXIMUM LIMIT
OF  SUCH  DAMAGES  IS  AGREED  TO  BE  $5,000.
6.05     A  Party  will  promptly advise the other Party in writing of any claim
made  or  lawsuit  alleging  infringement  of  any  patent  or  copyright  or
misappropriation  of  Confidential Information based on the design, construction
and/or  operation  of  the  Licensed  Plant  (including  Synthetic  Product  or
Marketable  Products  produced  from  the  Licensed  Plant).
6.06     If Licensee has made a modification to the Process Design Package, with
respect  to  a  Licensed  Plant,  and  infringement  or misappropriation by such
Licensed  Plant  would  not  exist  in  the  absence of Licensee's modification,
Licensee  will be solely responsible for any claim or lawsuit. Licensee will (a)
promptly  undertake  at its own expense the defense of the claim or lawsuit, and
(b)  hold Licensor, its affiliates, and their officers, directors, and employees
harmless  from  any liability, damages and other sums that may be assessed in or
become payable under any decree or judgment by any court or other tribunal which
results  from  such  claim  or  lawsuit  and  from  any attorneys fees, costs of
litigation  and  other reasonable out of pocket expenses incurred in the defense
of  such  claim  or  lawsuit.
6.07     If  the design, construction and/or operation of a Licensed Plant which
is the basis for alleged infringement or misappropriation, is in accordance with
the designs, specifications and operating conditions (including, but not limited
to,  catalysts)  embodied in the Process Design Package for such Licensed Plant,
Licensor will (a) promptly undertake at its own expense the defense of the claim
or  lawsuit,  and  (b)  hold  Licensee,  its  affiliates,  and  their  officers,
directors,  and  employees  harmless  from any liability, damages and other sums
that  may  be  assessed in or become payable under any decree or judgment by any
court  or  other  tribunal which results from such claim or lawsuit and from any
attorneys  fees, costs of litigation and other reasonable out of pocket expenses
incurred  in  the  defense  of  such  claim  or  lawsuit.
6.08     A  Party  will render all reasonable assistance that may be required by
the  other  Party  in  the defense of  claim or lawsuit alleging infringement or
misappropriation  and  such Party shall have the right to be represented therein
by  advisory  counsel  of  its  selection  and  at  its  expense.
6.09     In  the  event a court or other tribunal finds that infringement and/or
misappropriation  has  occurred  not  as  a  result of Licensee's modifications,
Licensor  shall  have  the  option,  at  its sole expense, to either (a) provide
designs,  specifications and/or operating conditions (including, but not limited
to,  catalysts)  and  make  modifications to the Licensed Plant which avoid such
infringement  and/or  misappropriation  without  degrading  the  economics  or
performance  of  the  Licensed  Facilities, or (b) acquire the right to continue
using  the  design,  construction  and  operating conditions (including, but not
limited  to,  catalysts),  which  were  the subject of such  infringement and/or
misappropriation.
6.10     Except as provided in (d) above, a Party shall not settle or compromise
any  claim  or  lawsuit  alleging  infringement  or misappropriation without the
written  consent  of  the other Party if such settlement or compromise obligates
the  other  Party  to  make any payment or part with any property, to assume any
obligation  or  grant  any  licenses  or  other  rights, or to be subject to any
injunction  by  reason  of  such  settlement  or  compromise.
6.11     Licensor  agrees  to  indemnify  and  hold  harmless  Licensee  and its
officers  and  employees from and against the full amount of any and all claims,
demands,  actions,  damages,  losses,  costs,  expenses, or liability whatsoever
(including  without  limitation  the  costs  of litigation, including reasonable
attorneys'  fees), for patent infringement, property (real and personal) damage,
personal injury or death, fines, or penalties arising in whole or in part out of
the  use of Licensee Patent Rights and Licensee Technical Information in a plant
operated  by  Licensor  or  Person  under  license  from  Licensor.
6.12     Licensor  agrees  to  indemnify  and  hold  harmless  Licensee  and its
officers  and  employees from and against the full amount of any and all claims,
demands,  actions,  damages,  losses,  costs,  expenses, or liability whatsoever
(including  without  limitation  the  costs  of litigation, including reasonable
attorneys'  fees),  for  property (real and personal) damage, personal injury or
death,  fines, or penalties arising in whole or in part out of acts or omissions
in  the  preparation  and  content  (including  design,  engineering,  and
specifications)  of  the  Process  Design  Package  for the Licensed Facilities.
6.13     Licensee  agrees  to  indemnify  and  hold  harmless  Licensor,  its
affiliates,  their  officers, directors, and employees from and against the full
amount  of  any  and  all  claims,  demands,  actions,  damages,  losses, costs,
expenses,  or  liability  whatsoever  (including without limitation the costs of
litigation,  including  reasonable  attorneys'  fees),  for  property  (real and
personal) damage, personal injury or death, fines, or penalties arising in whole
or  in part out of acts or omissions outside the scope of or any modification to
the  content  (including design, engineering, and specifications) of the Process
Design  Package  for  the  Licensed  Facilities.
6.14     Licensor's  total  obligation  and  liability  to  indemnify  and  hold
Licensee harmless for any and all claims (a) under this Article 6, including but
                                                        ---------
not limited to all expenses incurred by Licensor in assuming Licensee's defense,
making  modifications  to  the  Licensed  Plant  and for paying any judgments or
settlements  on  Licensee's behalf, or for any other reason contemplated by this
Article  6,  (b)  for  failure to meet any process guarantees that may have been
 ---------
provided  under  a separate agreement, or (c) for any other indemnification made
 --
by  Licensor  pursuant  to  this  Agreement, shall in no event exceed 50% of the
total  License  Fees  received  from the Licensee for any Licensed Plant that is
subject  to  the  above  claims.
6.15     Licensee's  total  obligation  and  liability  to  indemnify  and  hold
Licensor  harmless for any and all claims (a) under this Article 6 including but
                                                         ---------
not  limited to all expenses incurred by Licensee in assuming Licensor's defense
and  for  paying  any  judgments or settlements on Licensor's behalf, or for any
other  reason  contemplated  by  this  Article  6,  or  (b)  for  any  other
                                       ----------
indemnification  made  by Licensee pursuant to this Agreement, shall in no event
exceed  50% of the total License Fees received by Licensor from Licensee for the
Licensed  Plant  that  is  subject  to  the  above  claims.
                       7.  CONFIDENTIALITY AND LIMITATIONS
                       -----------------------------------
7.01     Licensee agrees that any Confidential Information disclosed by Licensor
or an Affiliate (including Syntroleum) directly or indirectly to Licensee during
the  period  from  the  date  of  Licensee's  execution of the License Agreement
through  the term of this Agreement, will be kept confidential by Licensee for a
period  of  fifteen  (15)  years  after  the date of each disclosure, but not to
exceed  five  (5)  years after the termination of this Agreement or fifteen (15)
years  from the Effective Date, whichever last occurs, with the same standard of
care  Licensee  uses  to  protect  its own similar confidential information and,
except  as otherwise provided in this Agreement, will not be disclosed to others
or  copied or duplicated (except for internal use), and will be used by Licensee
solely  as  it  relates  to  this Agreement, and for no other purpose, including
Licensee's  research,  development  or  commercial  activities  related  to  the
Conversion Process for its own account.  Licensee may disclose such Confidential
Information to third parties who have executed a secrecy agreement with Licensor
or  Syntroleum  with  confidentiality  terms  no less restrictive than those set
forth  in  this  Section  7.01.
                 -------------
7.02     Licensor agrees that any Confidential Information disclosed by Licensee
directly  or  indirectly  to  Licensor during the term of this Agreement will be
kept  confidential by Licensor for a period of fifteen (15) years after the date
of  each  disclosure,  but not to exceed five (5) years after the termination of
this  Agreement  or  fifteen  (15) years from the Effective Date, whichever last
occurs,  with the same standard of care Licensor uses to protect its own similar
confidential  information,  and  except  as otherwise provided in this Agreement
will  not  be  disclosed  to others or copied or duplicated, and will be used by
Licensor  solely  in  the  development,  marketing and licensing of a Conversion
Process,  and  for  no  other  purpose.  Licensor may disclose such Confidential
Information  to  third  parties  who  have  executed  a  secrecy  agreement with
confidentiality  terms  similar  to  the  confidentiality  provisions  of  this
Agreement.  To the extent reasonably necessary to carry out the purposes of this
Agreement,  Licensor  may  disclose  any  of  the  foregoing  information  to an
Affiliate,  provided that the Affiliate has agreed in writing to be bound by the
relevant  provisions  of  this  Agreement.
7.03     A  Party shall not be subject to the restrictions set forth in Sections
                                                                        --------
7.01 and 7.02 as to the disclosure, duplication or use of disclosed Confidential
----     ----
Information,  which  the receiving Party can prove by competent evidence (a) was
already  known  to  the  receiving Party or an Affiliate prior to the disclosure
thereof  by the disclosing Party; (b) is or becomes part of the public knowledge
or  literature  without breach of this Agreement by the receiving Party but only
after it becomes part of the public knowledge or literature; (c) shall otherwise
lawfully  become  available  to the receiving Party or an Affiliate from a third
party but only after it becomes so available and provided the third party is not
under  obligation of confidentiality to disclosing Party; or (d) is developed by
the  receiving  Party  or  an  Affiliate  independently of any disclosure by the
disclosing  Party to the receiving Party or an Affiliate under this Agreement or
independently  of  any joint research and development activities of Licensee and
Licensor  which  may  occur  under  a  separate  agreement.  Any  Confidential
Information  disclosed  shall  not  be deemed to fall within the confidentiality
exceptions  of  this  Section 7.03 merely because it is embraced by more general
                      ------------
information.  In  any such case set forth in Section 7.03(a), (b), (c), and (d),
                                             ---------------  ---  ---      ---
the  receiving Party shall keep confidential and not disclose to any third party
that  any  such  information  was  also  made  available  to  or acquired by the
receiving Party or an Affiliate from the disclosing Party, and such release from
the  secrecy  obligation shall not be considered as a license to make, sell, use
or  operate  under  any  of  the  disclosing  Party's  proprietary  rights.
7.04     The  receiving Party shall limit access to the Confidential Information
disclosed  to  it  to those employees of the receiving Party or an Affiliate who
reasonably  require  the  same  and  who  are  under  a  legal  obligation  of
confidentiality  on  the  terms set forth in Section 7.01 and Section 7.03.  The
                                             ------------     ------------
receiving Party shall be responsible to the disclosing Party for the performance
by  its  employees  of  their  confidentiality obligations.  The receiving Party
shall  keep a record of any Confidential Information marked "Limited Access" and
the  identity  of  each  employee  who has access to Confidential Information so
marked.  The  receiving  Party  shall  inform the other Party of the identity of
each  such  employee  within  30  days  of  disclosure.
7.05     In  the  event  that  a  Party  which  is  recipient  of  Confidential
Information  from  the  other  Party  is  requested  or  required by deposition,
interrogatory,  request  for  documents, subpoena, civil investigative demand or
similar  process  to  disclose  any such Confidential Information, the receiving
Party  shall  provide  the  disclosing  Party with prompt written notice of such
request  or  requirement  prior  to  making  the requested disclosure, and shall
cooperate  with  the  disclosing  Party  so that the disclosing Party may seek a
protective  order  or  other  appropriate  remedy or, if the disclosing Party so
elects,  waive  compliance  with  the terms of this Agreement. In the event that
such  protective order or other remedy is not obtained, the receiving Party  may
disclose  only that portion of the Confidential Information which the disclosing
Party  is  advised  by  counsel  is  legally  required  to  be  disclosed.
7.06     The  Parties agree that they will each take all actions and execute all
documents,  and  shall cause their employees, agents and contractors to take all
actions  and  execute all documents as are necessary or appropriate to carry out
the  provisions of this Article 7 or to assist each other in securing protection
                        ---------
of intellectual property and Confidential Information referenced in this Article
                                                                         -------
7.
7.07     With  respect  to  any  catalyst  furnished  by Licensor to Licensee or
Syntroleum  for  use  by  Licensee at the Licensed Plant, Licensee will not, and
Licensee  will  not  allow  any  other  person  to, analyze, break down, reverse
engineer  or  otherwise  seek  to determine the chemical composition, except for
loss  on  ignition  and bulk density, of any such catalyst, except that Licensee
shall  be  entitled  to (a) perform analyses that Licensor may from time to time
specifically  authorize  in  writing,  to the extent required for monitoring the
performance  of the Licensed Plant and for regeneration, reclamation or disposal
of  spent catalysts, such authorization not to be unreasonably withheld, and (b)
provide  results  of  the aforementioned analyses to other parties to the extent
required  for regeneration, reclamation or disposal of spent catalysts, but only
after  such other parties have entered into an agreement with Licensor in a form
attached hereto as Exhibit B.  Licensor will be provided with a copy of all such
                   ---------
analyses  which  has been approved in writing prior to release to other parties.
                                 8.  ASSIGNMENT
                                 --------------
8.01     Subject  to  Section  8.02,  this  Agreement  shall  not be assigned by
                      -------------
Licensee  without  the prior written consent of the Licensor, which consent will
not  be  unreasonably withheld, except that Licensee may, upon written notice to
Licensor,  assign  this  Agreement  to a department, bureau, division, agency or
similar  governmental  entity  that is a part and under the control of Licensee.
Under  no  circumstances  shall this Agreement be assigned to Exxon Corporation,
Royal  Dutch  Shell  or  Sasol  Limited.
8.02     Licensee  may  assign  this  Agreement  to any corporation or authority
which  is  wholly-owned  by  Licensee.
                            9.  TERM AND TERMINATION
                            ------------------------
9.01     This Agreement shall extend for the life of the plant.  Upon payment of
all  license  fees due under this Agreement, no further license fees will be due
except  for  those  associated  with  increases  in  capacity  under  Exhibit A.
                                                                      ---------
9.02     If  a  material  default  shall  occur  in connection with the Licensed
Plant, Licensor shall provide written notice to Licensee.  If a material default
under  this  Agreement shall continue for a period of one year following written
notice  of  such  default  to  Licensee  from  Licensor  without  being cured by
Licensee,  then  Licensor  shall  have  the  right  to (a) suspend all rights of
Licensee  under  this  Agreement,  or  (b) terminate this Agreement upon written
notice  to  Licensee.  The  actions  by  Licensor  under  this Article shall not
                                                               -------
prejudice  Licensor  from  enforcing  any claim which it may have for damages or
otherwise  on  account  of  the  default.
9.03     Termination  of  this  Agreement  shall  not:
(a)     relieve  Licensee  of its obligations to account for and pay all amounts
due  Licensor  under  this  Agreement;
(b)     affect  any  rights  granted  under  Article  4 with respect to Licensee
                                             ----------
Patent  Rights  and  Licensee  Technical  Information,  which  shall  survive
termination  in  accordance  with  its  terms;  or
(c)     affect  the  obligations of Licensor and Licensee under Articles 6 and 7
                                                                ----------     -
and  Section  10.02  which  shall  survive  termination in accordance with their
     --------------
terms.
    -
9.04     No  Party  to  this  Agreement  shall  be  in default in performing its
obligations under this Agreement to the extent that performing such obligations,
or  any  of  them,  is delayed or prevented by revolution, civil unrest, strike,
labor  disturbances,  epidemic,  accident,  fire,  lightening,  flood,  storm,
earthquake, explosion, blockage or embargo, or any law, proclamation, regulation
or  ordinance,  or  any  other  cause that is beyond the control and without the
fault  or  negligence  of  the Party asserting the benefit of this Section 9.04.
                                                                   ------------
Each  Party  shall do all things reasonably possible to remove the cause of such
default.
9.05     Licensee  shall  have the right to terminate this Agreement in its sole
discretion,  with  or  without  cause,  upon  the  delivery of written notice of
termination  to  Licensor  no  less  than  90  days  prior  to  the date of such
termination.
                                10.MISCELLANEOUS
                                ----------------
10.01          This  Agreement  embodies  the  entire  intent of the Parties and
merges  all  prior  oral  and written agreements between the Parties hereto with
respect  to  the  Licensed  Plant.  No stipulation, agreement, representation or
understanding  of  the Parties heretowith respect to the Licensed Plant shall be
valid  or  enforceable  unless  contained  in  this Agreement or in a subsequent
written  agreement  signed  by  the  Parties  hereto.
10.02          THIS  AGREEMENT  SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH  THE  LAWS  OF  THE  STATE OF DELAWARE, UNITED STATES OF AMERICA, INCLUDING
ARBITRATION  LAW,  WITHOUT  REGARD  TO  CONFLICT OF LAW PROVISIONS THEREOF.  Any
dispute claim or controversy arising out of or relating to this Agreement on the
breach,  termination,  scope  or  invalidity  (including any dispute relating to
patent invalidity or infringement) of this Agreement shall be finally settled by
arbitration  conducted in accordance with the Rules Conciliation and Arbitration
of  the  International  Chamber  of  Commerce.
(a)     The  arbitration  panel  shall  consist  of  one arbitrator who shall be
nominated  with  the  concurrence  of both parties; failing their agreement, the
arbitrator  shall  be appointed by the Court of Arbitration of the International
Chamber  of  Commerce.
(b)     The  arbitration  shall  be  held  in  New  York  City,  New  York, USA.
(c)     The  arbitration  shall  be  conducted  in  the  English  language.
(d)     The  applicable  procedural rules shall be the Rules of Conciliation and
Arbitration  of  the  International  Chamber  of  Commerce.  In  any  case  not
specifically  covered by those Rules, the arbitrator shall himself formulate the
rules  of  procedure  to  be  followed.
(e)     Arbitration  awards rendered shall not be subject to any form of appeal,
but  judgment  upon  awards  rendered  may  be  entered  in  any  court  having
jurisdiction, or application may be made to such court for a judicial acceptance
of  the  award  and  an  order  of  enforcement,  as  the  case  by  may  be.
10.03          This  Agreement  does  not  grant  and  shall not be construed as
granting  any  license,  authorization  or consent, to either Party by the other
Party  hereto,  to  use any name, trademark, service mark or slogan of the other
Party.  A  Party  shall  not use the other Party's name without written consent,
except  for  the  identification of the other Party as a Licensee or Licensor of
Licensor  Technology.  The  terms  of  this  Agreement  will  be  maintained  in
confidence by each Party subject to the same standard of care each Party uses to
protect  its  confidential  information,  except  as  required  by law.  A press
release  which  includes  the  name  of  the other Party must have prior written
approval  of  the  other  Party,  except  as  required  by  law.
10.04          Failure  of  either Licensor or Licensee at any time or from time
to  time  to  exercise  any of its rights under this Agreement or to insist upon
strict  performance  of  the  other  Party's  obligations hereunder shall not be
deemed a waiver of or to limit any of such rights or obligations with respect to
such  rights  or  obligations  or  any  subsequent  occurrence.
10.05          Licensee  may  publish the existence of this Agreement but agrees
not  to  disclose, without the written consent of the Licensor, any of the terms
of  this Agreement or any portion thereof, or any amendment concerning the same,
except  to  Persons  directly  involved with design, financing, construction, or
operation  of  the Licensed Plant on a need-to-know basis or as required by law.
10.06          Licensee  agrees  that  all  Licensor  information,  technology,
patents, and the product produced directly by the use thereof, when used outside
the  United  States  of  America,  shall  be  used by Licensee subject to and in
accordance  with regulations of any department or agency of the United States of
America  and  Licensee shall not re-export or transship or agree to re-export or
transship  any  such  Licensor information, technology, patents, and the product
produced  directly  by  the  use thereof to any destination prohibited by United
States  law  including,  without  limitation, United States executive orders and
administrative  orders,  rules,  and regulations or to any destination requiring
the  approval  of  the  United  States  government  for  such  re-exportation or
transshipment until a request to do so has been submitted to and approved by the
United  States  government  and  notice  of  such  approval has been provided to
Licensor.  Licensee  shall  not  (i)  enter  into  a  transaction  or  dealing,
including, without limitation, re-exporting the Licensed Technology, or causing,
financing,  guaranteeing,  authorizing or facilitating an action to enter into a
transaction  or  dealing,  that  might  reasonably  be considered a violation of
United  States  law by either Licensor or Licensee, or (ii) disclose information
in a way that might reasonably be considered a violation of United States law by
either  Licensor  or  Licensee.
10.07          Should  any  part  or  provision  of  this  Agreement  be  held
unenforceable  or  in conflict with the law of any state or of the United States
of  America  or  of  any foreign country, the validity of the remaining parts or
provisions  shall  not  be  affected  by  such  holding.
10.08          All  notices  hereunder  shall  be  addressed  to  the Parties as
follows:
     (a)     If  to  Licensor:
          Syntroleum  Australia  Licensing  Corporation
          1350  S.  Boulder,  Suite  1100
          Tulsa,  OK  74119-3295
          Fax  No.:  (918)  592-7979
          Phone  No.:  (918)  592-7900
          ATTN:  Office  of  the  President

             with  copy  to:
          Syntroleum  Corporation
          1350  S.  Boulder,  Suite  1100
          Tulsa,  OK  74119-3295
          Fax  No.:  (918)  592-7979
          Phone  No.:  (918)  592-7900
          ATTN:  Office  of  the  General  Counsel

     (b)     If  to  Licensee:
          Invest  Australia
          Department  of  Industry  Science  and  Resources
          Commonwealth  of  Australia
          GPO  Box  9839
          20  Allara  Street
          Canberra  ACT  2601
          Australia
          ATTN:  General  Manager

Any  notice required or permitted to be given under this Agreement by one of the
Parties  to  the  other  shall be deemed to have been sufficiently given for all
purposes  hereof  if  mailed  by  registered or certified mail, postage prepaid,
addressed  to  such  Party  at  its  address  indicated  above,  electronically
transmitted and acknowledged by the other Party or by actual delivery of written
notice  to  the  other  Party.
                           11.  GOODS AND SERVICES TAX
                           ---------------------------
11.01     The  payments specified in this Agreement have been calculated without
taking  GST  into  account.
11.02     If  any GST is payable on a taxable supply by the Licensor under or in
connection  with  this  Agreement:
(a)     the Licensor warrants that, at the time of entry into this agreement and
unless  and  until  otherwise  notified  in  writing  to  the  Licensee:
(i)     it  is  a  non-resident;  and
(ii)     it does not make the supply through an enterprise that it carries on in
Australia  or  through  a  resident  agent;
(b)     the Licensee warrants that, at the time of entry into this Agreement and
unless and until otherwise notified in writing to the Licensor, it is registered
for  GST  purposes;  and
(c)     the  Parties  hereby  agree  that  the  GST on the taxable supply by the
Licensor  will  be payable by the Licensee in accordance with Section 83-5(1) of
the  GST  Law.
11.03     If  the  requirements  of  Section  83-5(1)  of  the  GST  Law are not
satisfied,  either  because:
(a)     the  Licensor provides notice to the Licensee in accordance with Section
                                                                         -------
11.02(a);  or
--------
(b)     for  any  other  reason,
     the  provisions  of  Section  11.04  will  apply  to  the  taxable  supply.
                          --------------
11.04     If  GST  is  imposed  on any supply by a party (the "Supplier") to the
other  party  (the  "Recipient") under or in connection with this Agreement, the
Recipient  must  pay  to  the  Supplier,  subject  to the receipt of a valid tax
invoice,  the  amount  of GST imposed at the same time as and in addition to the
amount  the Recipient is required to pay the Supplier for the supply in question
(and  without  setoff),  or  on  demand.
11.05     In  this  Article  11:
                    -----------
"GST  Law" means the A New Tax System (Goods and Services Tax) Act 1999 together
with  all  associated  regulations  and  legislation.
"GST,"  "enterprise,"  "taxable supply," "tax invoice," "non-resident," "carried
on  in Australia" and "resident agent" have the meaning given to them in the GST
Law.
11.06     The  Licensee  and  the  Licensor  acknowledge  and  agree  that  the
warranties  contained  in  Section 11.02 are intended solely for the purposes of
                           -------------
Article  11,  and  that,  accordingly,  any  breach  of  such warranty shall not
  ---------
constitute  a  default or an event of default under this Agreement or any of the
  -----
documents  related  to  the transaction contemplated by this Agreement and shall
not  otherwise  have any consequences for the purposes of this Agreement and any
of  the  documents  related  to  the transaction contemplated by this Agreement,
except  as  expressly  provided  in  Sections  11.03  and  11.04.
                                     ---------------       -----

     IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date
set  forth  above.
                             LICENSOR

                   SYNTROLEUM  AUSTRALIA
                   LICENSING  CORPORATION

     By:______________________________
     Date:____________________________

                              LICENSEE

                    COMMONWEALTH  OF  AUSTRALIA
     By:______________________________
     Name:___________________________
     Title:____________________________

     Date:____________________________

                                    EXHIBIT A
                                    ---------

                             LICENSE FEE CALCULATION
                             -----------------------

I.     For  purposes  of  this  Exhibit  A,  the  following terms shall have the
                                ----------
meanings  ascribed  thereto:
A.     "LICENSED  PLANT"  means  the  Licensed  Plant in which this Site License
Agreement  for  such  plant  is  issued  to  and  remains (subject to assignment
pursuant to Section 8 of the Site License Agreement) in the name of the Licensee
who  has  executed  this  Agreement  with  Licensor.
B.     "ROYALTY  RATE"  shall  mean  (i)  the  lowest royalty rate per Barrel of
Synthetic  Product  accepted  by  Licensor  for  a Site License Agreement with a
non-affiliate  for  a  facility  of  comparable size, in the Licensed Territory,
which  is not under a master preferred license agreement, during the twelve (12)
months  immediately  preceding the execution date of the applicable Site License
Agreement  under  this  Agreement, or (ii) if no such Site License Agreement has
been  executed  during  the  twelve  (12) months immediately preceding, then the
royalty  rate per Barrel of Synthetic Product in the last Site License Agreement
with  a non-affiliate, in the Licensed Territory, executed by Licensor, which is
not  under  a  master  preferred  license  agreement,  or  (iii)  if none of the
foregoing  applies,  then  US$0.495  per  Barrel  of  Synthetic Product.  Market
Royalty  Rate  does not include the catalyst price as provided for under Section
                                                                         -------
2.03.
 ---
II.     For  each  Site  License Agreement executed for the Licensed Plant under
this  Agreement,  Licensee agrees to pay (subject to Section 5.05 of the License
Agreement  dated  August  2,  2000  between  Syntroleum  Australia  Licensing
Corporation  (as  Licensor)  and  Commonwealth of Australia as Licensee (LICENSE
AGREEMENT)  License  Fees  to  Licensor  on  a prepaid license basis as follows:
A.     Licensee  agrees  to  pay  Licensor  a  one-time,  prepaid  License  Fee
calculated  in  accordance  with  the  following  formula:
                       License Fee = "C" x 350 x 7.5 x "R"
wherein:
"C"     =     the  maximum  daily  design  capacity,  as  defined by the Process
Design  Package,  of such Licensed Plant to produce Marketable Products measured
in  Barrels  of  Synthetic  Product  per  day  for  which such Licensed Plant is
originally  designed  and  constructed,  and
"R"     =     the  Royalty  Rate.
and  payable  in  installments  as  follows:
(i)     20%  within  thirty  (30)  days after the execution of this Site License
Agreement  for  such  Licensed  Plant;
(ii)     30%  within  thirty  (30)  days  after  delivery  of the Process Design
Package or within one hundred twenty (120) days after the execution of this Site
License  Agreement  for  the  Licensed  Plant,  whichever  first  occurs;
(iii)     20%  within  thirty  (30)  days  after  the  commencement  of  field
construction  move-in;
(iv)     30% within one-hundred and twenty (120) days after the Start-Up Date of
the  Licensed Plant or a successful Performance Test as specified in any process
guarantee  and  performance  test  agreement,  whichever  first  occurs.
B.     Capacity Adjustments:  In the event the actual production capacity of the
       --------------------
Licensed  Plant,  under  II.A  above,  is determined to have either exceeded the
original  maximum  daily  design  capacity  established  in  this  Site  License
Agreement  or  is  increased  through major equipment modification, by more than
five  percent  (5%)  or  by more than 500 barrels per day, at any time after the
Start-up  Date,  Licensee  shall  pay  (subject  to  Section 5.05 of the License
Agreement)  Licensor an additional License Fee, on a prepaid basis, equal to the
difference  between  (a)  the  prepaid License Fee as would have been calculated
with  the higher production capacity for such Licensed Plant substituted for "C"
in  the  calculation method set forth in II.A. above, and (b) the License Fee as
would  have  been  calculated for such Licensed Plant by the method set forth in
II.A. above using the original maximum daily design capacity established in this
Site  License Agreement.  The incremental License Fee due will be reduced by any
previous  incremental adjustments.  Such additional License Fee shall be payable
within  thirty  (30)  days  after  the  end  of  the calendar year in which such
increase  in  production  capacity  of  such Licensed Plant occurs.  Incremental
License  Fees  for increased production capacity in any Licensed Plant shall not
be  due if the increased production capacity is the result of the initial use of
Licensee  Patent Rights or Licensee Technical information.  The total cumulative
incremental  capacity  adjustments  under  this  Agreement will be limited to 50
percent  of  the  initial  maximum  daily  capacity  under  this  Agreement.
III.     Subject  to  Section 5.05 of the License Agreement, upon payment of all
fees  due under the Agreement, Licensee shall be deemed to have acquired a fully
paid  license  for  the  Licensed  Plant up to the original maximum daily design
capacity or any adjusted daily design capacity made under the provisions of II.B
above.  Any additional incremental increases in the Licensed Plant capacity will
be  subject  to  additional  License  Fees  as  calculated  under  Incremental
Adjustments  defined  under  II.  above.
IV.     All  payments  required  hereunder shall include a statement showing the
details  supporting  the  calculation  of the License Fees being paid.  Licensee
shall  keep accurate and complete records of all natural gas feedstock processed
(volume  and  composition) and all Synthetic Product produced at and either used
internally  within  or removed from the Licensed Plant to enable verification of
statements  and  payments  rendered  to  Licensor hereunder.  Licensee agrees to
permit  Licensor,  at  Licensor's expense, to inspect such records on reasonable
notice  and  at  reasonable intervals during normal business hours to verify the
fees  paid  and  payable  under  this  Agreement.

                                    EXHIBIT B
                                    ---------

                          CONTRACTOR SECRECY AGREEMENT
                          ----------------------------

                                      DATE

name
company
street  address
city,  state/province  postal  code
country

CONFIDENTIALITY  AGREEMENT

In  connection  with  your  technical  and  commercial  evaluation of Syntroleum
natural  gas  conversion  technology,  you  may  be  given  access  to  certain
proprietary  information  related  to  the conversion of natural gas into liquid
hydrocarbons,  including  license contract documents (collectively, the "License
Agreement"),  which  Syntroleum  considers  to  be  a trade secret of Syntroleum
(hereinafter  referred  to as the "Confidential Information").  For the purposes
of this Agreement, "You", as used in this Agreement, shall include those of your
Affiliates,  including  your directors, officers, employees, agents, advisors or
other  representatives  (including,  without  limitation,  lawyers, accountants,
consultants,  prospective  financing  sources  and  financial  advisors)
(collectively,  "Representatives").  "Affiliates"  shall  mean  your  parent
company(ies) (one or more parent companies in an upward series), if any, and all
present  and future companies whose outstanding stock carrying the right to vote
for  or  appoint  directors  is  fifty  percent  (50%)  or more, and is owned or
controlled  directly or indirectly at the time in question by you or your parent
company(ies).
As  security  for  maintaining  the  confidentiality  of  our  information  and
protecting  our  competitive  position,  we  ask that you agree to the terms and
conditions set out below before we disclose any Confidential Information to you.
1.     All  Confidential  Information  disclosed  by Syntroleum, or on behalf of
Syntroleum  by  an  authorized  third party, to you in writing or other tangible
form  is  disclosed in confidence and shall not be disclosed by you to any third
party  without  our  express  prior written consent for a period of fifteen (15)
years from the date of disclosure.  Syntroleum shall, at the time of disclosure,
identify  information as Confidential Information.  If written documents contain
Confidential  Information,  the  documents  shall be marked "Confidential".  All
orally  disclosed  confidential  information  shall  be confirmed in writing and
clearly marked "Confidential" within a period of 30 days after the disclosure by
Syntroleum.  In the event that Syntroleum provides you only a License Agreement,
Syntroleum  will  not  include,  as  part  of  the  License  Agreement,  any  of
Syntroleum's  technical  information  that  it  deems  confidential.
2.     You  shall  not use the Confidential Information disclosed to you for any
purpose  other than in connection with your evaluation of Syntroleum natural gas
conversion  technology  except  by  expressed  prior  written  authorization  of
Syntroleum.  If  you  are  required  by  law  (pursuant  to  legal  proceedings,
subpoena,  civil investigative demand, or other similar process) to disclose any
Confidential  Information,  you  shall  notify Syntroleum promptly in writing so
that  Syntroleum  may  seek  a  protective  order  or  other appropriate remedy.
3.     In  recognition  that  your  evaluation  may  require  discussions  with
Affiliate(s)  who  may  be  the  potential  end  user(s)  of  the  Confidential
Information  under  a  license  agreement(s)  with  Syntroleum, you may disclose
Confidential  Information  to  such  Affiliate(s).
4.     You shall exercise reasonable care in overseeing those with access to the
Confidential  Information,  and  shall  limit  such  access  to  those  of  your
employees, Affiliate(s), employees of Affiliate(s), and Representatives who have
a  need  to  know  to achieve the limited purpose for which such information was
disclosed  to  you by Syntroleum and who are obligated to hold such Confidential
Information  in confidence by secrecy obligations no less restrictive than those
contained  in this Agreement.  Should you desire to have a Representative assist
you in the evaluation of the Confidential information, you will ensure that such
third  party  is  bound  by a separate confidentiality agreement with Syntroleum
prior  to  any  disclosure  by  you  of  Confidential  Information  to  such
Representatives.  The list of the initial employees, Affiliate(s), and employees
of Affiliate(s) to whom you intend to provide such access is included in Exhibit
A  to  this  Agreement.  You  will  maintain  a  separate list of all employees,
Affiliate(s), employees of Affiliate(s), and Representatives to whom you provide
such  access,  which  list  will  be  available  to  Syntroleum  upon  request.
5.     You  agree  that  the  standard of care which you shall use in preventing
disclosure  of  the  Confidential Information to third parties shall be the same
care you would take in preserving the confidentiality of your own trade secrets.
6.     You  understand  that  any  Confidential  Information submitted to you by
Syntroleum,  or  on  behalf  of  Syntroleum  by  an  third  party  authorized by
Syntroleum,  pursuant  to this Agreement is the property of Syntroleum and that,
upon  request,  you will return to Syntroleum all such Confidential Information,
including  any  copies, whether exact or approximate, you have made, except that
you  may  retain  one  archival  copy  of  all  such  information  in your legal
department files.  You shall destroy all notes, compilations, analyses, or other
documents  prepared  by  you  or  for your internal use which reflect any of the
Confidential  Information,  except  that you may retain one archival copy of all
such  information  in  your  legal  department  files.
7.     It is understood that nothing in this Agreement obligates either party to
enter  into  any other contract or agreement.  Both parties understand and agree
that  nothing  in  this Agreement grants or shall be construed as granting you a
license to the Confidential Information or to any other intellectual property of
Syntroleum.
8.     You  will  be  released  from  the  restrictions  set  forth above on any
Syntroleum  information  marked Confidential that you can show by written record
to  be:
(a)          information  previously  known  by  you,
(b)          information  which  becomes  publicly  available  by  other  than
unauthorized  disclosure,
(c)          information  which  is  received  by  you  from a third party whose
disclosure  does  not  violate  any  confidentiality  obligation  or,
(d)          information  which  is  independently  developed  by  you.
However,  such  release  from  the  confidentiality  obligation  shall  not  be
considered  as a license to make, sell, use or operate under any of Syntroleum's
proprietary  rights,  except  to  the extent provided for in this Agreement.  In
addition,  in  any such cases set forth in this Item 8 above, you shall continue
to  keep  confidential  and  shall not disclose to any third party that any such
information  was  made  available to you, or acquired by you, from Syntroleum or
that  Syntroleum uses such information in conjunction with, or as a part of, its
technology.
Should  you  agree  to  the  foregoing  terms and conditions, please indicate by
executing  duplicate  originals  of  this letter in the space provided below and
returning  one  fully  executed  original  to  the  undersigned.
Very  truly  yours,
SYNTROLEUM  CORPORATION

Mark  A.  Agee
President/COO

Accepted  and  Agreed  to  this  _____day  of  ____________,  1997.

By:     ___________________________________
Title:     ___________________________________

                                    EXHIBIT A
                                    ---------

Employees,  Affiliate(s)  and  employees  of  Affiliates  who  will  receive
Confidential  Information  under  this  Agreement.

________________________________          ___________________________
Name                                      Name

________________________________          ___________________________
Company                                   Company

________________________________          ___________________________
Date  Included                            Date  Included

________________________________          ___________________________
Name                                      Name

________________________________          ___________________________
Company                                   Company

________________________________          ___________________________
Date  Included                            Date  Included

________________________________          ___________________________
Name                                     Name

________________________________          ___________________________
Company                                  Company

________________________________          ___________________________
Date  Included                           Date  Included

                                    EXHIBIT C
                                    ---------

                      REQUEST FOR LICENSED PLANT RELOCATION
                      -------------------------------------

Syntroleum  Corporation
1350  S.  Boulder,  Suite  1100
Tulsa,  OK  74119-3295
Attn:  Office  of  the  President
Gentlemen:
Please  authorize  the relocation of the existing Site License Agreement for the
Licensed  Plant  currently  located  at  the  following  location:
City:  ________________________  State/Province:  ______________________
Country:  _____________________  Onshore/Offshore:  ___________________
Latitude:  _____________________  Longitude:  _________________________
to  the  following  new  location:
City:  ________________________  State/Province:  ______________________
Country:  _____________________  Onshore/Offshore:  ___________________
Latitude:  _____________________  Longitude:  _________________________
The  new  location  is  within the Licensed Territory and will remain at the new
plant  site  for  a  minimum  of  (subject  to  Section 2.05 of the Site License
Agreement)  seven  (7)  years.
Very  truly  yours,

____________________________,
LicenseeA$  LOAN  AGREEMENT
Details

INTERPRETATION  -  Definitions  are  at  the  end  of  this agreement before the
schedules.
PARTIES     COMPANY  and  LENDER,  each  as  described  below.
COMPANY     Name     SYNTROLEUM  AUSTRALIA  CREDIT  CORPORATION

                     1350  South  Boulder,  Suite  1100
                     Tulsa,  Oklahoma  74110-3295
     Address         United  States  of  America
     Fax            (918)  592-7979
     Telephone      (918)  592-7900

    Attention       Randall  M.  Thompson,
                    Vice-President  and  Chief  Financial  Officer

LENDER     Name     COMMONWEALTH  OF  AUSTRALIA REPRESENTED BY THE DEPARTMENT OF
                    INDUSTRY  SCIENCE  AND  RESOURCES  (INVEST  AUSTRALIA)

                    Level  6,  20  Allara  Street
                    Canberra  ACT  2601
     Address        Australia
     Fax           (61  2)  6213  7843
     Telephone     (61  2)  6213  7560
     Attention     General  Manager,  Invest  Australia

FACILITIES
     Tranche  A  Facility  Limit     A$12,000,000,  as  reduced by the
total  of  all  cancellations  prepayments  and repayments under this agreement.
     Tranche  A Availability Period     Subject to clause 7, the period from the
date  of  this  agreement  to  30  September  2000.
     Tranche  A Maturity Date     The 25th anniversary of the date the Tranche A
Facility  is  drawndown.
     Tranche  B  Facility  Limit     A$8,000,000, as reduced by the total of all
cancellations  prepayments  and  repayments  under  this  agreement.
     Tranche  B Availability Period     Subject to clause 7, the period from the
Business  Day  after  the  Tranche  A  Facility  is  drawndown  to 30 June 2001.
     Tranche B Maturity Date     The 25th  anniversary of the date the Tranche B
Facility  is  drawndown.
     Tranche  C  Facility Limit     A$20,000,000, as reduced by the total of all
cancellations  prepayments  and  repayments  under  this  agreement.
     Tranche  C Availability Period     Subject to clause 7, the period from the
Business  Day  after  the  Tranche  B  Facility  is  drawndown  to 30 June 2002.
     Tranche  C Maturity Date     The 25th anniversary of the date the Tranche C
Facility  is  drawndown.

PURPOSE          The proceeds from each Drawing are to be provided to the Parent
to  be  applied  by  it  (directly  or  indirectly) for facilitating the further
research development and demonstration of the Parent's gas-to-liquids technology
directed  to  the  production  in  Australia  of synthetic fuel products for the
Australian  market.

TRANSACTION  DOCUMENTS
                                Include:
                                  -  this  agreement
                                  -  any  Drawdown  Notice
                                  -  the  Escrow  Agreement

BUSINESS  DAY  PLACE(S)         Canberra,  ACT,  Australia and Tulsa, Oklahoma,
                                USA.

TIME                            A time of day  is a reference to Canberra time.
GOVERNING  LAW                  Australian  Capital  Territory
DATE  OF  AGREEMENT             See  Signing  page

THE  FACILITIES  AND  FACILITY  LIMITS

LENDER  TO  FUND
The  Lender  agrees  to  provide  the  financial  accommodation requested by the
Company  under  this  agreement,  and  has all necessary approvals to obtain the
appropriations  necessary  to  do  so.

MAXIMUM  ACCOMMODATION  -  TRANCHE  A
The  maximum  total  amount  of financial accommodation available to the Company
under  the  Tranche  A  Facility  is  the  Tranche  A  Facility  Limit.

MAXIMUM  ACCOMMODATION  -  TRANCHE  B
The  maximum  total  amount  of financial accommodation available to the Company
under  the  Tranche  B  Facility  is  the  Tranche  B  Facility  Limit.

MAXIMUM  ACCOMMODATION  -  TRANCHE  C
The  maximum  total  amount  of financial accommodation available to the Company
under  the  Tranche  C  Facility  is  the  Tranche  C  Facility  Limit.

CURRENCY  OF  DRAWING
Each  drawing  is  to  be  made  available  in  Australian  Dollars.
USING  THE  TRANCHE  A  FACILITY

DRAWING  DOWN
The  Company need not use the Tranche A Facility.  However, if the Company wants
to  use  the  Tranche  A  Facility,  it  may  do  so  by  a  single  drawdown.

REQUESTING  A  DRAWDOWN
If  the  Company  wants  to drawdown the Tranche A Facility, it agrees to give a
Drawdown  Notice  to  the Lender one month before the day it wants the drawdown,
accompanied  by  a  certificate  signed  by an Authorised Officer of the Company
identifying  each  condition  in schedule 2 and, with respect to each condition:
(a)     stating  that  the  condition  has  been  satisfied;  and
(b)     providing  such  evidence  as  is  necessary in the Company's opinion to
support  its  conclusion  that  the  condition  has  been  satisfied.

MAKING  AVAILABLE  TRANCHE  A  FACILITY
Subject to this agreement, the Lender agrees to make available the amount of the
Tranche  A  Facility  Limit  according  to  the  Drawdown  Notice.

TRANCHE  A  CONDITIONS  PRECEDENT
The  Lender  need  not  provide  any financial accommodation under the Tranche A
Facility  unless it is satisfied that the conditions in schedule 2 have been met
or  it has waived them in writing.  If the Company complies with clause 2.2, but
the  Lender  is  not satisfied that those conditions have been met (and does not
waive  them),  the Lender must no later than the requested Drawdown Date, notify
the  Company  (TRANCHE  A  NON-SATISFACTION  NOTICE):
(a)     that  it  is  not  satisfied;  and
(b)     why  it  is  not  satisfied.

NON-RESPONSE
Where  the  Lender  does  not provide a Tranche A Non-Satisfaction Notice to the
Company  under  clause  2.4,  the  Lender  must make the amount of the Tranche A
Facility  Limit  available  according  to  the  Drawdown  Notice.

DISAGREEMENT
If  after  receiving  a  Tranche  A  Non-satisfaction  Notice  the Company still
maintains  that  the conditions in schedule 2 have been met, the Company and the
Lender  must determine on a process by which their disagreement can be resolved.
In determining that process and implementing it, the Company and the Lender must
act  promptly  in good faith and in a reasonable manner.  Where the disagreement
is  not  resolved  before  the  end of the availability period for the Tranche A
Facility,  the  Lender  must  deposit  an amount equal to the Tranche A Facility
Limit  into  escrow  according  to  clause  7.

ESCROW  NOTICE
Where  the  Company  has  not  given a Drawdown Notice to the Lender by the date
(THAT DATE) which is 15 days prior to the end of the availability period for the
Tranche  A Facility, the Company must, on that date, give to the Lender a notice
signed  by an Authorised Officer of the Company identifying with respect to each
condition  in  schedule  2:
(a)     progress  made  in  satisfying  the  condition;
(b)     the  reason  for  any  delay  in  satisfying  the  condition;
(c)     the  steps  the  Company  is  taking  or proposes to take to satisfy the
condition;  and
(d)     the  date  by  which  the  Company  believes  that the condition will be
satisfied,
and the Lender must deposit an amount equal to the Tranche A Facility Limit into
escrow  according  to  clause  7.

USING  THE  TRANCHE  B  FACILITY
DRAWING  DOWN
The  Company need not use the Tranche B Facility.  However, if the Company wants
to  use  the  Tranche  B  Facility,  it  may  do  so  by  a  single  drawdown.
REQUESTING  A  DRAWDOWN
If  the  Company  wants  to drawdown the Tranche B Facility, it agrees to give a
Drawdown  Notice  to  the Lender one month before the day it wants the drawdown,
accompanied  by  a  certificate  signed  by an Authorised Officer of the Company
identifying  each  condition  in schedule 3 and, with respect to each condition:
(a)     stating  that  the  condition  has  been  satisfied;  and
(b)     providing  such  evidence  as  is  necessary in the Company's opinion to
support  its  conclusion  that  the  condition  has  been  satisfied.
MAKING  AVAILABLE  TRANCHE  B  FACILITY
Subject to this agreement, the Lender agrees to make available the amount of the
Tranche  B  Facility  Limit  according  to  the  Drawdown  Notice.
CONDITIONS  PRECEDENT
The  Lender  need  not  provide  any financial accommodation under the Tranche B
Facility  unless it is satisfied that the conditions in schedule 3 have been met
or  it has waived them in writing.  If the Company complies with clause 3.2, but
the  Lender  is  not satisfied that those conditions have been met (and does not
waive  them),  the Lender must no later than the requested Drawdown Date, notify
the  Company  (TRANCHE  B  NON-SATISFACTION  NOTICE):
(a)     that  it  is  not  satisfied;  and
(b)     why  it  is  not  satisfied.
NON-RESPONSE
Where  the  Lender  does  not provide a Tranche B Non-Satisfaction Notice to the
Company  under  clause  3.4,  the  Lender  must make the amount of the Tranche B
Facility  Limit  available  according  to  the  Drawdown  Notice.
DISAGREEMENT
If  after  receiving  a  Tranche  B  Non-satisfaction  Notice  the Company still
maintains  that  the conditions in schedule 3 have been met, the Company and the
Lender must determine a process by which their disagreement can be resolved.  In
determining  that  process  and implementing the agreed process, the Company and
the  Lender  must act promptly, in good faith and in a reasonable manner.  Where
the  disagreement  is not resolved before the end of the availability period for
the  Tranche B Facility the Lender must deposit an amount equal to the Tranche B
Facility  Limit  into  escrow  according  to  clause  7.
ESCROW  NOTICE
Where  the  Company  has  not  given a Drawdown Notice to the Lender by the date
(THAT  DATE)  which is one month prior to the end of the availability period for
the  Tranche  B  Facility,  the Company must, on that date, give to the Lender a
notice  signed  by an Authorised Officer of the Company identifying with respect
to  each  condition  in  schedule  3:
(a)     progress  in  satisfying  the  condition;
(b)     the  reason  for  any  delay  in  satisfying  the  condition;
(c)     the  steps  the  Company  is  taking  or proposes to take to satisfy the
condition;  and
(d)     the  date  by  which  the  Company  believes  that the condition will be
satisfied,
and the Lender must deposit an amount equal to the Tranche B Facility Limit into
escrow  according  to  clause  7.
USING  THE  TRANCHE  C  FACILITY
DRAWING  DOWN
The  Company need not use the Tranche C Facility.  However, if the Company wants
to  use  the  Tranche  C  Facility,  it  may  do  so  by  a  single  drawdown.
REQUESTING  A  DRAWDOWN
If  the  Company  wants  to drawdown the Tranche C Facility, it agrees to give a
Drawdown  Notice  to  the Lender one month before the day it wants the drawdown,
accompanied  by  a  certificate  signed  by an Authorised Officer of the Company
identifying  each  condition  in schedule 4 and, with respect to each condition:
(a)     stating  that  the  condition  has  been  satisfied;  and
(b)     providing  such  evidence  as  is  necessary in the Company's opinion to
support  its  conclusion  that  the  condition  has  been  satisfied.
MAKING  AVAILABLE  TRANCHE  C  FACILITY
Subject to this agreement, the Lender agrees to make available the amount of the
Tranche  C  Facility  Limit  according  to  the  Drawdown  Notice.
CONDITIONS  PRECEDENT
The  Lender  need  not  provide  any financial accommodation under the Tranche C
Facility  unless it is satisfied that the conditions in schedule 4 have been met
or  it has waived them in writing.  If the Company complies with clause 4.2, but
the  Lender  is  not satisfied that those conditions have been met (and does not
waive  them),  the Lender must no later than the requested Drawdown Date, notify
the  Company  (TRANCHE  C  NON-SATISFACTION  NOTICE):
(a)     that  it  is  not  satisfied;  and
(b)     why  it  is  not  satisfied.
NON-RESPONSE
Where  the  Lender  does  not provide a Tranche C Non-satisfaction Notice to the
Company  under  clause  4.4,  the  Lender  must make available the amount of the
Tranche  C  Facility  Limit  according  to  the  Drawdown  Notice.
DISAGREEMENT
If  after  receiving  a  Tranche  C  Non-satisfaction  Notice  the Company still
maintains  that  the conditions in schedule 4 have been met, the Company and the
Lender  must determine a process by which that disagreement can be resolved.  In
determining  that  process  and implementing it, the Company and the Lender must
act  promptly, in good faith and in a reasonable manner.  Where the disagreement
is  not  resolved  before  the  end of the availability period for the Tranche C
Facility,  the  Lender  must  deposit  an amount equal to the Tranche C Facility
Limit  into  escrow  according  to  clause  7.
ESCROW  NOTICE
Where  the  Company  has  not  given a Drawdown Notice to the Lender by the date
(THAT  DATE)  which is one month prior to the end of the availability period for
the  Tranche  C  Facility,  the Company must, on that date, give to the Lender a
notice  signed  by an Authorised Officer of the Company identifying with respect
to  each  condition  in  schedule  4:
(a)     the  progress  in  satisfying  the  condition;
(b)     the  reason  for  any  delay  in  satisfying  the  condition;
(c)     the  steps  the  Company  is  taking  or proposes to take to satisfy the
condition;  and
(d)     the  date  by  which  the  Company  believes that that condition will be
satisfied,
and the Lender must deposit an amount equal to the Tranche C Facility Limit into
escrow  in  accordance  with  clause  7.
EFFECT  OF  A  DRAWDOWN  NOTICES,  AND  CONDITIONS  TO  DRAWDOWNS
EFFECT  OF  A  DRAWDOWN  NOTICE
A  Drawdown  Notice is effective when the Lender actually receives it in legible
form.  An  effective  Drawdown  Notice  is  irrevocable.
CONDITIONS  TO  ALL  DRAWDOWNS
Without limiting any other condition precedent identified in this agreement, the
Lender  need  not  provide  any  financial  accommodation  unless:
(a)     the  Lender  has  received  every item listed in schedule 1 ("Conditions
precedent") in form and substance satisfactory to the Lender.  Any item required
to be certified must be certified by a secretary or a director of the Company as
being true and complete as at a date no earlier than the date of this agreement;
and
(b)     subject  to  clause  7,  the  accommodation is to be provided during the
availability  period  for  the relevant Facility as set out in the Details; and
(c)     after  providing  the  accommodation the Facility Limit for the relevant
Facility  will  not  be  exceeded;  and
(d)     the  Lender  has  received  a  Drawdown  Notice  in  respect of it; and
(e)     the  Lender  is  satisfied  that  the  representations and warranties in
clause 11 ("Representations and warranties") and in the Drawdown Notice, and the
statements  in  the  Drawdown Notice, are true and correct and not misleading at
the  date  of the Drawdown Notice and at the date the accommodation is provided;
and
(f)     the  Lender  is satisfied that no Event of Default or Potential Event of
Default  exists  or  would  result  from  the  accommodation  being  provided.
BENEFIT  OF  CONDITIONS
Each  condition  to drawdown of a Facility is for the sole benefit of the Lender
and  may  be  waived  by  it,  but  only  in  writing.
INTEREST
Except  as  provided  in  clause  15  no interest is payable by the Company on a
Drawing.
ACCOMMODATION  AT  END  OF  AVAILABILITY  PERIOD
NON-SATISFACTION  OF  CONDITIONS
Where  at  the  end of the availability period for a Facility (as set out in the
Details):
(a)     the  conditions  to  that Facility in schedule 2, 3 or 4 (as applicable)
have  not  been  satisfied  (CONDITIONS);  or
(b)     there  is a disagreement about whether or not those Conditions have been
satisfied,
and  either:
(c)     the  Company  has  given  a  Drawdown  Notice  (with  an  accompanying
certificate)  under  clause  2.2,  3.2  or  4.2  (as  applicable);  or
(d)     the  Company  has  given  the  Lender an Escrow Notice in respect to the
Conditions  to  the  relevant  Facility,
then subject to clause 7.2 the Lender agrees on the last day of the availability
period  for  that Facility, to deposit an amount equal to the Facility Limit for
that  Facility  into the Escrow Account to be held in escrow by the Escrow Agent
on  the  terms  of  the  Escrow  Agreement.
NON-SATISFACTION  OF  CONDITIONS
The  Company  agrees that if on 28 February 2002 the Conditions to the Tranche A
Facility  have  not  been  satisfied,  the  Lender  may  elect:
(a)     where  on  that  date:
(i)     a  Drawdown  Notice (and an accompanying certificate) has not been given
under  clause  4.2;  or
(ii)     that  notice  having  been  given,  the Tranche C Facility has not been
drawndown,
to  terminate  its  obligation  to  make  the  Tranche  C Facility available; or
(b)     where  on  that  date an amount equal to the Tranche C Facility has been
placed  in  escrow, to terminate any obligation to make that amount available to
the  Company,  and  to direct the Escrow Agent to release those moneys (less any
accrued  interest  on  them)  to the Lender by sending the Escrow Agent a notice
substantially  in  the  form  of  Exhibit  B  to  the  Escrow  Agreement.
SUBSEQUENT  SATISFACTION  OF  CONDITIONS
Subject  to  clauses  7.2  and  7.6,  at  any  time after an amount equal to the
Facility  Limit  for  a  Facility  has  been  deposited  into the Escrow Account
according  to  clause  7.1,  the  Company  may  give  to  the  Lender:
(a)     a Drawdown Notice for the amount of the Facility Limit (and if more than
one Facility is held in escrow, for the amount of the Facility Limits of each of
those  Facilities)  (ESCROW  AMOUNT));  and
(b)     a  certificate (ESCROW SATISFACTION CERTIFICATE) signed by an Authorised
Officer  of  the  Company  identifying  that  Condition  or those Conditions the
non-satisfaction  of which resulted in the Escrow Amount being placed in escrow,
and  with  respect  to  that  Condition,  or  each  of  those  Conditions:
(i)     stating  that  the  Condition  or Conditions has or have been satisfied;
and
(ii)     providing  such  evidence  as  is necessary in the Company's opinion to
support  its  conclusion  that  the  Condition  or  Conditions  has or have been
satisfied.
RESPONSE
Unless the Lender, within one month after receiving a Drawdown Notice and Escrow
Satisfaction  Certificate  under  clause  7.3,  notifies  the  Company
(NON-SATISFACTION  ESCROW  NOTICE)  that  the  Lender  is not satisfied that the
Condition or Conditions has or have been satisfied and the reason or reasons for
its or their non-satisfaction, the Lender must procure the Facility Limit of the
relevant  Facility  be paid by the Escrow Agent to the Company out of the Escrow
Account  on the date which is one month after receipt of the Drawdown Notice and
the Escrow Satisfaction Certificate, according to the Drawdown Notice (including
by signing and sending to the Escrow Agent a notice substantially in the form of
Exhibit  A  to  the Escrow Agreement (countersigned by the Company), and signing
any  other  direction  required  by  the Escrow Agent).  Each amount paid by the
Escrow  Agent according to this clause 7.4 constitutes a Drawing on the relevant
Facility.
DISAGREEMENT
If  after  receiving  a Non-satisfaction Escrow Notice in accordance with clause
7.4  the Company still maintains that the relevant Condition or Conditions is or
are  satisfied,  and  the parties are unable in good faith to settle the dispute
within  21 days after the Company receives a Non-satisfaction Escrow Notice, the
dispute  is  to be referred to the Australian Commercial Disputes Centre (ACDC).
The  Company  and the Lender must act promptly in good faith and in a reasonable
manner  with  the  ACDC  to agree on and implement a suitable dispute resolution
process  for  the  dispute.
NO  DRAWDOWN  PENDING  RESOLUTION
The  Company may not give the Lender a Drawdown Notice or an Escrow Satisfaction
Certificate  where a Condition to the release of the Escrow Amount is subject to
disagreement  as  to  whether  the  Condition has been satisfied until they have
agreed,  or they are bound by a decision of a third party, that the Condition is
satisfied.
ACKNOWLEDGEMENTS
Subject  to  clause  7.8,  the  Company  agrees  that:
(a)     the  Facilities  are not available to the Company after 31 August 2004;
(b)     if  any amount is held by the Escrow Agent at 5.00 pm on 31 August 2004:
if there is no Major Event of Default then continuing, the Lender is entitled to
that  amount (less any interest accrued on it) and to direct the Escrow Agent to
release  that  amount  to  the  Lender  by  sending  the  Escrow  Agent a notice
substantially  in  the  form  of  Exhibit  C  to  the  Escrow  Agreement;  but
if  there is a Major Event of Default then continuing, the Lender is entitled to
that  amount (plus all interest accrued on it since the date on which the Lender
gave  the Escrow Agent a notice in respect of that Major Event of Default in the
form  of  Exhibit  D  to the Escrow Agreement) and to direct the Escrow Agent to
release  that  amount  and  that  interest  by sending the Escrow Agent a notice
substantially  in  the  form  of  Exhibit  C  to  the  Escrow  Agreement,
(c)     the  Lender  shall not send the Escrow Agent any notice substantially in
the  form of Exhibit C to the Escrow Agreement before 5.00 pm on 31 August 2004;
and
(d)     the  Lender  shall not send the Escrow Agent any notice substantially in
the  form  of  Exhibit  B  to  the  Escrow  Agreement  before  28 February 2002.
RETENTION  PENDING  RESOLUTION
Where  on  31  August  2004,  an  amount  held in escrow is subject to a dispute
pursuant  to  clause 7.5 (DISPUTED AMOUNT), then notwithstanding clause 7.7, the
Disputed  Amount  is  to be retained in escrow until the dispute is resolved (in
which  case  it is to be released accordingly) or an Event of Default occurs (in
which  case  it  is  to  be  released  to  the  Lender).
INTEREST
Subject  to  clause  7.7(b)(ii),  the Lender assigns to the Company the Lender's
rights  to  all  interest which accrues on amounts from time to time standing to
the credit of the Escrow Account.  Except as otherwise expressly provided in the
Escrow  Agreement, the Company may withdraw from the Escrow Account from time to
time  any  interest to which it is entitled under this clause 7.9, including any
interest  to  which  it  is  entitled  on  moneys  released  to  the  Lender.
PURPOSE
Any  interest paid to the Company according to clause 7.9 must be applied by the
Company  for  the  Purpose  and  the Company will, at the request of the Lender,
cause  an  Authorised  Officer  of the Company to certify to the Lender that the
interest  has  been  applied  for  that  Purpose.
FEES
The  Company  agrees  that it is responsible for any Taxes payable in respect of
interest  on  funds held in escrow, and for the fees and expenses payable to the
Escrow  Agent in respect of the Escrow Account or as a consequence of or arising
out  of  funds  being held in escrow, the opening, the keeping, the operation or
the  closing  of  the  Escrow  Account.
REPAYING  AND  PREPAYING
REPAYMENT  OF  TRANCHE  A  FACILITY
The  Company  agrees  to  repay  the Drawing under the Tranche A Facility on the
Tranche  A  Maturity  Date.
REPAYMENT  OF  TRANCHE  B  FACILITY
The  Company  agrees  to  repay  the Drawing under the Tranche B Facility on the
Tranche  B  Maturity  Date.
REPAYMENT  OF  TRANCHE  C  FACILITY
The  Company  agrees  to  repay  the Drawing under the Tranche C Facility on the
Tranche  C  Maturity  Date.
DISCRETIONARY  PREPAYMENT
The  Company  may  prepay  a  Drawing without incurring Break Costs, as follows:
(a)     the prepayment amount must be at least A$100,000 and a whole multiple of
A$100,000;  and
(b)     the  Company  must notify the proposed prepayment to the Lender by 11.00
am  on  the  fourth  Business Day before the prepayment (Once given, a notice of
prepayment  is  irrevocable  and  the Company is obliged to prepay in accordance
with  the  notice.)
MANDATORY  PREPAYMENT
The  Company  will  be taken to have prepaid a Drawing or part of it as the case
may be (without incurring Break Costs) if and to the extent to which at any time
after  the  tenth  anniversary  of  the  date  of  this  agreement:
(a)     if  the  Lender  is  then  the licensee under the Licence Agreement, the
Lender elects to pay (according to Section 5.05(b) of the Licence Agreement) all
or  any  part  of the Licence Fee by forgiving the Company's obligation to repay
all  or  a  corresponding  part  of  that  Drawing;  or
(b)     if  the Lender is not then the licensee under the Licence Agreement, the
Lender  agrees  to  the  payment  (according  to  Section 5.05(b) of the Licence
Agreement)  of  all  or  any  part of the Licence Fee by forgiving the Company's
obligation  to  repay  all  or  a  corresponding  part  of  that  Drawing.
OTHER  PREPAYMENT
If  the  Company  prepays  other than as set out in clause 8.4 or 8.5, it may be
liable  for  Break  Costs  according  to  clause  14.2  ("Indemnity").
PREPAYMENT  AND  THE  FACILITY  LIMIT
The Facility Limit of the Facility to which the prepayment relates is reduced by
amounts  prepaid.
PAYMENTS
MANNER  OF  PAYMENT
The  Company  agrees  to make payments (including by way of reimbursement) under
this  agreement:
(a)     on the due date (or, if that is not a Business Day, on the next Business
Day  unless  that  day  falls  in  the  following  month or after the particular
Maturity Date for the relevant Facility, in which case, on the previous Business
Day);  and
(b)     not  later  than  10.00  am;  and
(c)     in  Australian  dollars  in  immediately  available  funds;  and
(d)     in  full  without  set-off  or counterclaim and without any deduction in
respect  of  Taxes  unless  prohibited  by  law;  and
(e)     to the Lender by payment into the account nominated by the Lender, or by
payment  as  the  Lender  otherwise  directs.
If  the  Lender directs the Company to pay a particular party or in a particular
manner,  the  Company is taken to have satisfied its obligation to the Lender by
paying  according  to  the  direction.
The Company satisfies a payment obligation only when the Lender or the person to
whom  it  has  directed  payment  receives  the  amount.
CURRENCY  OF  PAYMENT
The  Company  waives any right it has in any jurisdiction to pay an amount other
than  in  Australian  Dollars.  However,  if  the Lender receives an amount in a
currency  other  than  Australian  Dollars:
(a)     it  may convert the amount received into Australian Dollars (even though
it may be necessary to convert through a third currency to do so) on the day and
at  such rates (including spot rate, same day value rate or value tomorrow rate)
as  it  reasonably  considers  appropriate.  It  may  deduct  its usual Costs in
connection  with  the  conversion;  and
(b)     the  Company  satisfies its obligation to pay in Australian Dollars only
to  the  extent of the amount of Australian Dollars obtained from the conversion
after  deducting  the  Costs  of  the  conversion.
WITHHOLDING  TAX
PAYMENTS  BY  COMPANY
If  a  law  requires  the Company to deduct an amount in respect of Taxes from a
payment  under this agreement such that the Lender would not actually receive on
the  due  date  the  full  amount  provided  for  under  this  agreement,  then:
(a)     the  Company  agrees to deduct the amount for the Taxes (and any further
deduction applicable to any further payment due under paragraph (c) below); and
(b)     the  Company agrees to pay the amount deducted to the relevant authority
in  accordance with applicable law and give the original receipts to the Lender;
and
(c)     if  the  amount  deducted is in respect of Accountable Taxes, the amount
payable  is increased so that, after making the deduction and further deductions
applicable  to  additional  amounts  payable  under  this  clause, the Lender is
entitled  to  receive  (at the time the payment is due) the amount it would have
received  if  no  deductions  had  been  required.
PAYMENTS  BY  LENDER
If  a  law  requires  the  Lender to deduct an amount in respect of Taxes from a
payment  under  this  agreement  (including a Drawing), the Company acknowledges
that:
(a)     the  relevant  payment  will  be  reduced  by  that  amount;  and
(b)     the Lender is not obliged to increase the payment to the Company so that
the  Company  receives  the payment it would have received had no deduction been
made  for  Taxes.
CONTEST
Nothing  in this clause prohibits the Company from contesting the application of
any  law  purporting  to  require  the deduction or withholding of any amount in
respect  of  Taxes.  However,  no  such contest in any way affects the Company's
obligations  under  clause  10.1  or the Lender's obligations under clause 10.2.
10.4     GST
The payments specified in this agreement have been calculated without taking GST
into  account.
10.5     WARRANTIES
If  any GST is payable on a taxable supply by the Company under or in connection
with  this  agreement:
(a)     the  Company warrants that, at the time of entry into this agreement and
unless  and  until  otherwise  notified  in  writing  to  the  Lender:
(i)     it  is  a  non-resident;  and
(ii)     it does not make the supply through an enterprise that it carries on in
Australia  or  through  a  resident  agent;
(b)     the  Lender  warrants that, at the time of entry into this agreement and
unless  and until otherwise notified in writing to the Company, it is registered
for  GST  purposes;  and
(c)     the  parties  hereby  agree  that  the  GST on the taxable supply by the
Company  will be payable by the Lender in accordance with Section 83-5(1) of the
GST  Law.
10.6     NON-SATISFACTION
If  the requirements of Section 83-5(1) of the GST Law are not satisfied, either
because:
(a)     the  Company  provides  notice  to  the Lender in accordance with clause
10.5(a);  or
(b)     for  any  other  reason,
the  provisions  of  clause  10.7  will  apply  to  the  taxable  supply.
10.7     CONSEQUENCE  OF  NON-SATISFACTION
If  GST  is  imposed  on  any  supply  by  a party (SUPPLIER) to the other party
(RECIPIENT)  under  or in connection with this agreement, the Recipient must pay
to  the  Supplier,  subject to the receipt of a valid tax invoice, the amount of
GST  imposed  at the same time as and in addition to the amount the Recipient is
required to pay the Supplier for the supply in question (and without setoff), or
on  demand.
10.8     DEFINITIONS
In  this  clause  10:
GST  LAW  means  the A New Tax System (Goods and Services Tax) Act 1999 together
with  all  associated  regulations  and  legislation.
GST,  ENTERPRISE,  TAXABLE  SUPPLY,  TAX  INVOICE,  NON-RESIDENT,  CARRIED ON IN
AUSTRALIA  and  RESIDENT  AGENT  have  the meaning given to them in the GST Law.
10.9     EFFECT  OF  BREACH  OF  WARRANTY
The  Lender  and the Company acknowledge and agree that the warranties contained
in clause 10.5 are intended solely for the purposes of this clause 10, and that,
accordingly,  notwithstanding  anything  to  the contrary in this agreement, any
breach of such warranty shall not constitute a default, an Event of Default or a
Potential  Event of Default under this agreement or any other of the Transaction
Documents and shall not otherwise have any consequences for the purposes of this
agreement  and  the other Transaction Documents, except as expressly provided in
clauses  10.6  and  10.7.

REPRESENTATIONS  AND  WARRANTIES
The  Company represents and warrants (except in relation to matters disclosed to
the  Lender  by  the  Company  and  accepted  by  the  Lender  in writing) that:
(a)     (INCORPORATION  AND  EXISTENCE)  it  has  been incorporated as a company
according  to the laws of the State of Delaware in the United States of America,
is validly existing under those laws and has power and authority to carry on its
business  as  it  is  now  being  conducted;  and
(b)     (POWER) it has power to enter into the Transaction Documents to which it
is  a  party  and  comply  with  its  obligations  under  them;  and
(c)     (NO  CONTRAVENTION OR EXCEEDING POWER) the Transaction Documents and the
transactions  under  them  which  involve  it  do not contravene its constituent
documents (if any) or any law or obligation by which it is bound or to which any
of  its  assets are subject or cause a limitation on its powers or the powers of
its  directors  to  be  exceeded;  and
(d)     (AUTHORISATIONS)  it  has  in  full  force and effect the authorisations
necessary for it to enter into the Transaction Documents to which it is a party,
to  comply  with its obligations and exercise its rights under them and to allow
them  to  be  enforced;  and
(e)     (VALIDITY  OF  OBLIGATIONS)  its  obligations  under  the  Transaction
Documents,  when  executed  and  delivered  by it, are valid and binding and are
enforceable  against  it according to their terms except as their enforceability
may  be  limited  by:
(i)     applicable  bankruptcy,  insolvency  and  other  similar  laws affecting
creditors'  rights  generally;  and
(ii)     general  equitable  principles  regardless  of  whether  the  issue  of
enforceability  is  considered  in  a  proceeding  in  equity  or  at  law; and
(f)     (BENEFIT)  it  benefits  by  entering  into the Transaction Documents to
which  it  is  a  party;  and
(g)     (SOLVENCY)  there  are  no  reasonable grounds to suspect that it or its
Parent  is unable to pay its debts as and when they become due and payable; and
(h)     (NOT  A  TRUSTEE)  it  does  not  enter into any Transaction Document as
trustee;  and
(i)     (OWNERSHIP OF PROPERTY) it is the beneficial owner of and has good title
to  all  property held by it or on its behalf and all undertakings carried on by
it  free  from  Encumbrances  except  for  Permitted  Encumbrances;  and
(j)     (LITIGATION)  there  is no pending or threatened proceeding affecting it
or  any  of its Material Subsidiaries or the Parent before a court, governmental
agency,  commission or arbitrator except those in which a decision against it or
a  Material  Subsidiary  or  the  Parent  (either  alone  or together with other
decisions)  would  not  be  likely  to  be  a  Material  Adverse  Event;  and
(k)     (EVENT  OF  DEFAULT)  no  Event of Default or Potential Event of Default
continues  unremedied;  and
(l)     (DEFAULT  UNDER  LAW  - MATERIAL ADVERSE EVENT) none of it or any of its
Material  Subsidiaries or the Parent is in breach of a law affecting any of them
or  their  assets  in a way which is likely to be a Material Adverse Event; and
(m)     (NO MATERIAL CHANGE) there is no likely change in its financial position
which  is  likely  to  be  a  Material  Adverse  Event;  and
(n)     (NO  IMMUNITY)  none  of  it  or any of its Material Subsidiaries or the
Parent has immunity from the jurisdiction of a court or from legal process; and
(o)     (ACCURACY  OF  FORMS) the last Form 10K and 10Q filed by the Parent with
the Securities and Exchange Commission is accurate in all material respects (the
Form  10K and 10Q last filed before the date of this agreement being annexed and
marked  "A").
CONTINUATION  OF  REPRESENTATIONS  AND  WARRANTIES
The  Company  agrees to notify the Lender on each Drawdown Date of anything that
happens  which would mean it could not truthfully repeat all its representations
and  warranties  in this clause 11 on that date by reference to the then current
circumstances.  A  notification  under  this  clause  11.2  does  not  limit the
Lender's  rights  under  clause  13.2  ("Consequences  of  default").
UNDERTAKINGS
GENERAL  UNDERTAKINGS
The  Company  undertakes:
(a)     (ACCOUNTING  RECORDS)  to keep accounting records according to generally
accepted  accounting  principles  applied  on  a  consistent basis in the United
States  of America and to ensure that each of its Material Subsidiaries does the
same;  and
(b)     (CONDUCT  OF  BUSINESS)  to  conduct  its business (including collecting
debts  owed  to  it)  in  the  ordinary  course;  and
(c)     (NO  CESSATION  OF BUSINESS) not, without the Lender's consent, to cease
conducting  any  of  its  business,  if  that  cessation is or is likely to be a
Material Adverse Event, and not to significantly change the general character of
any  business  it  conducts;  and
(d)     (INFORMATION)  to give the Lender any document or other information that
the  Lender  reasonably  requests  from  time  to  time;  and
(e)     (STATUS  CERTIFICATES)  on request from the Lender, to give the Lender a
certificate  signed  by  two  of  its directors which states whether an Event of
Default  or  Potential  Event  of  Default  continues  unremedied;  and
(f)     (MAINTAIN  AUTHORISATIONS)  to obtain, renew on time and comply with the
terms  of  each  authorisation  necessary  for  it to enter into the Transaction
Documents  to  which  it is a party, to comply with its obligations and exercise
its  rights  under  them  and  to  allow  them  to  be  enforced;  and
(g)     (NOT  GIVE  FINANCIAL  ACCOMMODATION)  not, without the Lender's consent
(and  except  as  contemplated  by  the  Purpose),  to:
(i)     provide  financial  accommodation  other  than  to  its  Parent;  or
(ii)     permit  financial  accommodation  to  remain owing to the Company other
than  from  its  Parent;  or
(iii)     satisfy  any  financial accommodation the Company now or in the future
owes;  and
(h)     (NOT  DEPOSIT  MONEY  AS SECURITY) not to deposit money with a person in
circumstances  where  the  money  is  not  repayable unless the Company performs
obligations  (including  to  pay  money)  to  that  person;  and
(i)     (NOT REDUCE CAPITAL) to ensure that the Company's capital is not reduced
or  made  capable  of  being  called  up only in certain circumstances.  For the
purposes  of this clause 12.1(i), the provision by the Company to the Parent for
the  Purpose  of  the proceeds of any Drawing does not constitute a reduction of
the  Company's  capital;
(j)     (NOTIFY INTERESTS IN LAND) to give the Lender details about all land and
interests  in  land  (such  as  leases)  the  Company  acquires;  and
(k)     (ANNUAL  ACCOUNTS)  to  give its Financial Statements for each financial
year  to  the  Lender  within 90 days after the end of that financial year; and
(l)     (ANNUAL  CONSOLIDATED  ACCOUNTS)  to  give  the  audited  consolidated
Financial  Statements  of the economic entity constituted by it and the entities
which  the  Parent controls for each financial year to the Lender within 90 days
after  the  end  of  that  year;  and
(m)     (QUARTERLY  CONSOLIDATED  ACCOUNTS)  to  give the unaudited consolidated
Financial  Statements  of the economic entity constituted by the Parent  and the
entities  which  the  Parent controls for each quarter of each financial year to
the  Lender  within  60  days  after  the  end  of  that  quarter;  and
(n)     (INCORRECT  REPRESENTATION  OR  WARRANTY)  to  notify  the Lender if any
representation  or  warranty  made  by  it or on its behalf in connection with a
Transaction  Document  is  found to have been incorrect or misleading when made;
and
(o)     (NOTIFY DETAILS OF EVENT OF DEFAULT OR POTENTIAL EVENT OF DEFAULT) if an
Event  of  Default  or  Potential  Event of Default occurs, to notify the Lender
within  60 days after the event, giving full details of the event, the Company's
view  of the event's impact on the Project, any step taken or proposed to remedy
the  event  and  estimated  time  to  remedy  the  event;  and
(p)     (PURPOSE)  to  use  the  Facilities  only for the purpose set out in the
Details;  and
(q)     (ASSIGNMENT  OF  REPRESENTATIVE)  by  28  February  2001,  to  assign an
experienced  and  appropriately qualified business development representative to
assist  the  Lender,  or  its  designate,  to  promote  and  attract  further
gas-to-liquids  (GTL)  development  in  Australia;  and
(r)     (FEASIBILITY  STUDY) by 31 August 2003, in consultation with the Lender,
to  complete  or  cause  to  be  completed a feasibility study having the detail
agreed  between the Company and the Lender (at a cost of not more than A$500,000
to be paid by the Company) on the development of a GTL fuels plant in Australia.
The  Company agrees that the Lender is authorised to use any financial, business
or  technical  information  with  respect  to  GTL  technology  contained in the
feasibility  study  pursuant  to  the  provisions of the Licence Agreement; and
(s)     (COMPLETE  SURVEY) to complete, and provide to the Lender in writing the
results  of  a  survey  of  GTL  technology, development capability and interest
within  Australian  universities and research institutions on or before the date
which  is  6  months  from  the  date  of  this  agreement.
(t)     (PARTNERING OPPORTUNITY) to work with the Lender to explore and identify
research  and  development  partnering  opportunities to further the development
and  commercialisation  of  the  Parent's GTL technology, including the possible
development of a Cooperative Research Centre or other joint venture research and
development  structures  and  other  projects related to natural gas conversion,
utilisation  and  the  application  of  gas  derived products.  The Company must
prepare  and  deliver  to  the  Lender  detailed  semi-annual  reports  of these
activities  following  completion  of  the survey referred to in clause 12.1(s).
The  Lender  acknowledges  that  the  undertakings of the Company in this clause
12.1(t)  are  subject to the Company being satisfied as to the protection of its
intellectual  property  and  confidentiality  and  that  of  its  Parent  and
Subsidiaries.
NEGATIVE  PLEDGE
The  Company  agrees:
(a)     (NO  ENCUMBRANCES)  without  the  Lender's  consent,  not  to  create an
Encumbrance  or  allow  one  to exist on the whole or any part of its present or
future  property  other than Permitted Encumbrances.  The Lender agrees that the
provision  by  the Company to the Parent of the proceeds of any Drawing does not
breach  this  clause  12.2(a);  and
(b)     (NO  DISPOSAL) without the Lender's consent, not to dispose of (or agree
to  dispose  of)  all  or a substantial part of its property (either in a single
transaction  or  in  a series of transactions whether related or not and whether
voluntarily  or  involuntarily)  except:
(i)     disposals  made  with  the  Lender's  consent;  or
(ii)     disposals  made in the ordinary course of its business for arm's length
consideration;  or
(iii)     disposals  of  cash  raised  or borrowed for the purpose for which the
cash  was  raised  or  borrowed;  or
(iv)     disposals of investments dealt in or listed on a securities exchange or
over-the-counter  market,  for  arm's  length  consideration;  or
(v)     disposals  of property in exchange for other property of comparable type
and  value.
The  Lender  agrees  that  the  provision  by  the  Company to the Parent of the
proceeds  of  any  Drawing  does  not  breach  this  clause  12.2(b);  and
(c)     (GUARANTEES  RESTRICTED) to ensure that no guarantee (or other assurance
against  financial  loss)  is  granted  or  outstanding in connection with money
borrowed  or  raised  by  or  at  the  request  of  the  Company,  except:
(i)     if  the  Lender  has  consented;  or
(ii)     for  drawings,  acceptances  and  endorsements of Bills in the ordinary
course  of  its  business;  or
(iii)     if  the  Company's  obligations  under  the  Transaction Documents are
equally  and  ratably  secured  by  a guarantee (or other assurance) in form and
substance  satisfactory  to  the  Lender.
DEFAULT
EVENTS  OF  DEFAULT
Each  of  the  following  is  an  Event  of  Default:
(a)     (NON-PAYMENT  -  TRANSACTION  DOCUMENT) the Company does not pay on time
the  principal amount of any Facility or does not pay within three Business Days
of  a notice to it that it has failed to pay on time any other amount payable by
it  under  any  Transaction  Document  in  the  manner  required  under  it; or
(b)     (CROSS  DEFAULT)  any  present  or  future  monetary  obligations of the
Company  or  any  of  its  Material  Subsidiaries  or  the  Parent  for:
(i)     in  the  case  of  the  Company  or any of its Material Subsidiaries, an
amount  of,  or  amounts  totaling,  more  than  $US250,000;
(ii)     in  the case of the Parent an amount of, or amounts totaling, more than
$US2,000,000,
are  not  satisfied  on  time (or at the end of their period of grace) or become
prematurely  payable.
In  this  clause 13.1(b), a "monetary obligation" means a monetary obligation in
connection  with:
(i)     money  borrowed  or  raised;  or
(ii)     any  hiring  arrangement, redeemable preference share, letter of credit
or financial markets transaction (including a swap, option or futures contract),
performance  bond  or  guarantee  facility;  or
(iii)     a  guarantee  or  indemnity in connection with anything referred to in
paragraphs  (i)  or  (ii));  or
(c)     (ENFORCEMENT  AGAINST ASSETS) distress is levied or a judgment, order or
Encumbrance  is  enforced,  or  becomes enforceable, against any property of the
Company  or  any  of  its  Material  Subsidiaries  or  the  Parent  for:
(i)     in  the  case  of  the  Company  or any of its Material Subsidiaries, an
amount  of  or  amounts  totaling,  more  than  $US250,000;
(ii)     in  the case of the Parent, an amount of or amounts totaling, more than
$US2,000,000,
are  not  satisfied  on  time (or at the end of their period of grace) or become
prematurely  payable;
(d)     (INCORRECT  CERTIFICATE)  a  certificate  given  under  clause 5.2(a) is
incorrect  or  misleading;  or
(e)     (INCORRECT  REPRESENTATION  OR  WARRANTY)
(i)     a  representation  or  warranty made by or for the Company in connection
with  a  Transaction Document is found to have been incorrect or misleading when
made;  or
(ii)     the  Company  notifies  the  Lender  in  accordance  with  clause  11.2
("Continuation  of  representations  and  warranties") or does not do so when it
should;  or
(f)     (INSOLVENCY)  the  Company  or  any  of its Material Subsidiaries or the
Parent  is  or  becomes  Insolvent;  or
(g)     (CEASING  BUSINESS)  the Company (or any of its Material Subsidiaries or
the Parent) stops payment, ceases to carry on its business or a material part of
it,  or  threatens  to  do  either  of  those  things  except  to reconstruct or
amalgamate  while  solvent  on  terms  approved  by  the  Lender;  or
(h)     (VOIDABLE  TRANSACTION DOCUMENT) a Transaction Document or a transaction
in connection with it is or becomes (or is claimed to be) wholly or partly void,
voidable  or  unenforceable  ("claimed"  in  this paragraph means claimed by the
Company  or any of its Subsidiaries or the Parent or anyone authorized to act on
behalf  of  any  of  them);  or
(i)     (CHANGE  OF  CONTROL) the persons who at the date of this agreement have
Control  of  the  Company  cease  to  have Control of the Company or one or more
persons  acquire  Control  of  the Company after the date of this agreement; or
(j)     (CHANGE IN GROUP STRUCTURE) the Company ceases to be a subsidiary of the
Parent,  or  a  company  that  is  subsidiary  of  the  Company ceases to be its
subsidiary;  or
(k)     (REDUCTION OF CAPITAL) without the consent of the Lender, the Company or
any  of its Material Subsidiaries takes action to reduce its capital or buy back
any  of  its  ordinary  shares;  or
(l)     (APPOINTMENT  OF  MANAGER)  a  person  is  appointed  under  bankruptcy,
insolvency  or  similar  legislation  to  manage  any part of the affairs of the
Company  or  any  of  its  Material  Subsidiaries  or  the  Parent;  or
(m)     (MATERIAL ADVERSE EVENT) an event occurs which is (or a series of events
occur  which,  together,  are)  a  Material  Adverse  Event;  or
(n)     (BREACH  OF UNDERTAKING) subject to clause 13.4, an undertaking given to
the  Lender  by the Company or its Parent or another person authorized to act on
its behalf in connection with a Transaction Document (including the Side Letter)
is  breached  or  not  wholly  performed  within  any  period  specified  in the
undertaking  or,  where  no  period  is  specified and the undertaking is not an
ongoing  undertaking,  within  seven  days after the date of the undertaking and
such  breach  or  non-performance is not remedied within thirty days of a notice
from  the  Lender  to  the Company specifying the breach or non-performance; or
(o)     (DEFAULT  UNDER  OTHER  TRANSACTION  DOCUMENT)  an event occurs which is
called  an  'event  of default' on the part of the Company under any Transaction
Document  other  than  this  agreement;  or
(p)     (NON-COMPLIANCE  WITH  OTHER  OBLIGATIONS)  subject  to  clause  13.4:
(i)     the Company does not comply with any other material obligation under any
Transaction  Document;  or
(ii)     the Parent does not comply with its obligations under the Side Letter,
and,  if  the non-compliance can be remedied, does not remedy the non-compliance
within  30  days  after  a  notice from the Lender to the Company specifying the
non-compliance.
CONSEQUENCES  OF  DEFAULT
If  an  Event  of  Default  occurs,  then  subject to clause 13.4 the Lender may
declare  at  any  time  by  notice  to  the  Company  that:
(a)     an  amount  equal  to  the  Amount  Owing  is  either:
(i)     payable  on  demand;  or
(ii)     immediately  due  for  payment;
(b)     any  amount deposited into, and held in escrow, by the Escrow Agent, may
not  be  released  to  or  withdrawn  by  the  Company  until  the  Lender:
(i)     is  satisfied  (acting  reasonably)  that  the Event of Default has been
remedied;  or
(ii)     waives  the  Event  of  Default  in  writing,
(c)     the  Lender's  obligations  specified  in  the  notice  are terminated.
The  Lender  may make any or all of these declarations.  The making of either of
them  gives  immediate  effect  to  its  provisions.
INVESTIGATION  OF  DEFAULT
If  the  Lender reasonably believes that there is or may be an Event of Default,
the  Lender  may  appoint  a  person to investigate this.  The Company agrees to
co-operate  (and  procure  each  of  its Material Subsidiaries and the Parent to
co-operate)  with the person and comply with every reasonable request they make.
If  there  is or was an Event of Default, the Company agrees to pay all Costs in
connection  with  the  investigation.
SPECIAL  REMEDY
The Company agrees that where the feasibility study identified in clause 12.1(r)
has  not  been  completed  by  31  August 2003, the Company must on or before 15
September 2003 pay the Lender A$500,000.  The Lender agrees that that payment is
the  Lender's  sole  remedy  for  the  Company's  failure  to comply with clause
12.1(r).
ELECTION  ON  DEFAULT
The  Lender may elect, where an Event of Default has occurred and is continuing,
to satisfy all of its rights in respect of that Event of Default by applying the
outstanding  principal  part of the Amount Owing or any part of it against or in
satisfaction  of  the  Licence  Fee  then due or to become due under the Licence
Agreement  (and whether or not the Lender is then the licensee under the Licence
Agreement).  Where that election is made the Company must procure that an amount
equal  to  the  amount  applied is so credited by the licensor under the Licence
Agreement.  To  the  extent  that  an  amount  is  so  credited,  the  Company's
obligation  to  repay  it  is  satisfied.
NON-RECOURSE
The  Lender  may  not  enforce any of its rights against the Company under or in
connection with this agreement by seeking to enforce those rights against, or by
bringing  proceedings  or  by taking any other action against, or proving in the
liquidation  of:
(a)     the  Parent;  or
(b)     any  other  subsidiary of the Parent, or any owner, officer, director or
employee  of  the  Parent
(ASSOCIATED  PERSON),  and  the Lender agrees that it does not and will not have
any  claim  under  any Transaction Document against the Parent or any Associated
Person  except;
(c)     in  respect  of  the fraudulent act or omission of an Associated Person;
or
(d)     against  an  Associated  Person in their role as an officer, director or
employee  of  the  Company.
The  Lender acknowledges that each Associated Person may rely on and enforce the
terms  of  this  clause  13.6  notwithstanding the Parent is not a party to this
agreement and for that purpose the Company holds the benefit of this clause 13.6
on  trust  for  each  Associated  Person.
COSTS  AND  INDEMNITIES
WHAT  THE  COMPANY  AGREES  TO  PAY
The  Lender and the Company are each solely responsible for and shall bear their
own  respective Costs (including, legal, accounting and other advisory expenses)
incurred  at  any time in closing this transaction (including the preparation of
the Transaction Documents).  Subject to the foregoing, the Company agrees to pay
or  reimburse:
(a)     the  Lender's  Costs  in  connection  with  exercising,  enforcing  or
preserving  rights  under  this  agreement;  and
(b)     Taxes  and fees (including registration fees) and fines and penalties in
respect of fees paid in connection with any Transaction Document or a payment or
receipt  or  any  other  transaction  contemplated  by any Transaction Document.
However,  the Company need not pay a fine or penalty in connection with Taxes or
fees to the extent that it has placed the Lender in sufficient cleared funds for
the  Lender  to  be  able  to  pay  the  Taxes  or  fees  by  the  due  date.
The  Company  agrees to pay amounts due under this clause within 5 Business Days
after  a  written  demand  from  the  Lender.
The  Lender  may  debit  any  of  these  amounts to the Company's account if the
Company  has  not paid that amount within 5 Business Days of the written demand.
INDEMNITY
The  Company  indemnifies the Lender against any liability or loss arising from,
and any Costs (other than costs described in clause 14.1 as being payable by the
Lender)  incurred  in  connection  with:
(a)     financial accommodation requested under a Transaction Document not being
provided  in  accordance  with  the request for any reason except default of the
Lender  or  the  Escrow  Agent;  or
(b)     financial  accommodation  under  a  Transaction  Document  being repaid,
discharged  or made payable other than at its maturity except a prepayment under
clauses  8.4  or  8.5;  or
(c)     the  Lender  acting  in  connection  with a Transaction Document in good
faith  on  fax  instructions  purporting  to  originate  from the offices of the
Company  or  to  be  given  by  an  Authorised  Officer  of  the  Company;  or
(d)     an  Event  of  Default;  or
(e)     the  Lender  exercising  or  attempting to exercise a right or remedy in
connection  with  a  Transaction  Document  after  an  Event  of  Default;  or
(f)     any  indemnity  the  Lender gives a Receiver, or anyone in possession or
who  has  control of the property of the Company for the purpose of enforcing an
Encumbrance  or  an  administrator  of  the  Company.
The  Company  agrees  to pay amounts due under this indemnity on demand from the
Lender.
ITEMS  INCLUDED  IN  LOSS,  LIABILITY  AND  COSTS
The  Company  agrees  that:
(a)     the Costs referred to in clause 13.3 ("Investigation of default") and in
clause 14.1 ("What the Company agrees to pay"), and the liability, loss or Costs
referred  to  in  clause 14.2 ("Indemnity") include where payable by the Company
legal  Costs in accordance with any written agreement as to legal costs (whether
or  not  the  Company  is  a  party  to  the  agreement) or, if no agreement, on
whichever  is  the  higher of a full indemnity basis or solicitor and own client
basis;  and
(b)     the  Costs  referred  to  in  clause  14.1(a) and (b) ("What the Company
agrees  to  pay"),  include where payable by the Company those paid, or that the
Lender  has  received  an  invoice  for,  to  persons  engaged  by the Lender in
connection  with  the  Transaction  Documents  (such  as  consultants);  and
(c)     loss  or  liability and any Costs in any indemnity under the Transaction
Documents  may  include  Break  Costs.
PAYMENT  OF  THIRD  PARTY  LOSSES
The Company agrees to pay an amount equal to any liability or loss and any Costs
of the kind referred to in clause 14.2 ("Indemnity") suffered or incurred by any
employee,  officer,  agent  or  contractor  of  the  Lender.
CURRENCY  CONVERSION  ON  JUDGMENT  DEBT
If  a  judgment,  order  or  proof  of  debt  for an amount in connection with a
Transaction  Document  is expressed in a currency other than Australian Dollars,
then  the  Company  indemnifies  the  Lender  against:
(a)     any difference arising from converting the other currency if the rate of
exchange  used  by  the  Lender  under  clause  9.2  ("Currency of payment") for
converting  currency  when  it  receives a payment in the other currency is less
favourable  to  the Lender than the rate of exchange used for the purpose of the
judgment,  order  or  acceptance  of  proof  of  debt;  and
(b)     the  Costs  of  conversion.
The  Company  agrees  to pay amounts due under this indemnity on demand from the
Lender.
INTEREST  ON  OVERDUE  AMOUNTS
OBLIGATION  TO  PAY
If  the Company does not pay any amount under this agreement on the due date for
payment,  the Company agrees to pay interest on that amount at the Default Rate.
The  interest accrues daily from (and including) the due date to (but excluding)
the  date  of actual payment and is calculated on actual days elapsed and a year
of  365  days.
The  Company agrees to pay interest under this clause on demand from the Lender.
INTEREST  FOLLOWING  JUDGMENT
If  a liability becomes merged in a judgment, the Company agrees to pay interest
on  the  amount  of that liability as an independent obligation.  This interest:
(a)     accrues  daily  from  (and including) the date the liability becomes due
for  payment  both  before and after the judgment up to (but excluding) the date
the  liability  is  paid;  and
(b)     is  calculated  at  the  judgment rate or the Default Rate (whichever is
higher).
The  Company agrees to pay interest under this clause on demand from the Lender.
APPLICATION  OF  PAYMENTS
The  Lender  may  apply  amounts paid by the Company towards satisfaction of the
Company's obligations under the Transaction Documents in the manner it sees fit,
unless  the  Transaction  Documents  expressly  provide  otherwise.  This
appropriation  overrides any purported appropriation by the Company or any other
person.
DEALING  WITH  INTERESTS
NO  DEALING  BY  COMPANY
The  Company  may  not  assign  or  otherwise  deal  with  its  rights under any
Transaction  Document  or  allow  any interest in them to arise or be varied, in
each  case,  without  the  Lender's  consent.
DEALINGS  BY  LENDER
Until  the  funding  of each Facility in accordance with this agreement, (or the
date  on  which  the  Lender  is no longer obliged to provide funding under this
agreement) the Lender may not assign or otherwise deal with its rights under any
Transaction Document, without the Company's consent.  Thereafter, the Lender may
assign  or  otherwise  deal  with  its  rights  under  the Transaction Documents
(including  by  assignment  or participation) without the consent of any person.
NOTICES
FORM
Unless  expressly  stated  otherwise  in  the Transaction Document, all notices,
certificates,  consents,  approvals,  waivers  and  other  communications  in
connection  with  a  Transaction  Document  must  be  in  writing,  signed by an
Authorised Officer of the sender and marked for attention as set out or referred
to  in  the Details or, if the recipient has notified otherwise, then marked for
attention  in  the  way  last  notified.
DELIVERY
They  must  be:
(a)     left  at  the  address  set  out  or  referred  to  in  the Details; or
(b)     sent by prepaid post (airmail, if appropriate) to the address set out or
referred  to  in  the  Details;  or
(c)     sent  by  fax  to the fax number set out or referred to in the Details.
However,  if  the  intended  recipient  has notified a changed postal address or
changed  fax  number,  then the communication must be to that address or number.
WHEN  EFFECTIVE
They  take  effect  from  the  time  they  are  received  unless a later time is
specified  in  them.
DEEMED  RECEIPT  -  POSTAL
If  sent  by  post,  they  are taken to be received three days after posting (or
seven  days  after  posting  if  sent  to  or  from  a place outside Australia).
DEEMED  RECEIPT  -  FAX
If  sent  by  fax,  they  are  taken  to  be  received  at the time shown in the
transmission  report  as  the  time  that  the  whole  fax  was  sent.
DEEMED  RECEIPT  -  GENERAL
Despite  clauses  18.4  ("Deemed  receipt - postal") and 18.5 ("Deemed receipt -
fax"),  if  they  are  received  after  5.00  pm in the place of receipt or on a
non-Business  Day,  they  are  taken  to  be received at 9.00 am in the place of
receipt  on  the  next  Business  Day.
WAIVER  OF  NOTICE  PERIOD
The  Lender  may  waive  a  period of notice required to be given by the Company
under  this  agreement.
GENERAL
APPLICATION  TO  TRANSACTION  DOCUMENTS
If  anything  in  this clause 19 ("General") is inconsistent with a provision in
another  Transaction  Document,  then  the  provision  in  the other Transaction
Document  prevails  for  the  purposes  of  that  Transaction  Document.
PROMPT  PERFORMANCE
If  a  Transaction  Document  specifies  when  the  Company agrees to perform an
obligation, the Company agrees to perform it by the time specified.  The Company
agrees  to  perform  all  other  obligations  promptly.
CONSENTS
The Company agrees to comply with all conditions in any consent the Lender gives
in  connection  with  a  Transaction  Document.
CERTIFICATES
The  Lender  may give the Company a certificate about an amount payable or other
matter in connection with a Transaction Document.  The certificate is sufficient
evidence  of  the  amount  or  matter,  unless  it  is  proved  to be incorrect.
SET-OFF
At any time after an Event of Default, the Lender may set off any amount due for
payment  by  the Lender to the Company against any amount due for payment by the
Company  to  the  Lender  under  the  Transaction  Document.
DISCRETION  IN  EXERCISING  RIGHTS
The  Lender may exercise a right or remedy or give or refuse its consent under a
Transaction  Document  in any way it reasonably considers appropriate (including
by  imposing  conditions).
PARTIAL  EXERCISING  OF  RIGHTS
If  the  Lender does not exercise a right or remedy under a Transaction Document
fully  or  at  a  given  time,  the  Lender  may  still  exercise  it  later.
NO  LIABILITY  FOR  LOSS
The  Lender  is not liable for loss caused by the exercise or attempted exercise
of,  failure  to  exercise,  or  delay  in exercising, a right or remedy under a
Transaction  Document.
CONFLICT  OF  INTEREST
The Lender's rights and remedies under any Transaction Document may be exercised
even  if  this involves a conflict of duty or the Lender has a personal interest
in  their  exercise.
REMEDIES  CUMULATIVE
The  rights  and  remedies  of  the Lender under any Transaction Document are in
addition  to  other  rights  and  remedies  given  by  law  independently of the
Transaction  Document.
INDEMNITIES
Any  indemnity in a Transaction Document is a continuing obligation, independent
of the Company's other obligations under that Transaction Document and continues
after  the  Transaction  Document  ends.  It  is not necessary for the Lender to
incur  expense  or  make  payment  before enforcing a right of indemnity under a
Transaction  Document  provided  that  the Lender is, at the time of enforcing a
right  of  indemnity  liable  to  make  the  payment.
RIGHTS  AND  OBLIGATIONS  ARE  UNAFFECTED
Rights  given  to  the  Lender  under  a  Transaction Document and the Company's
liabilities  under  it are not affected by anything which might otherwise affect
them  at  law.
INCONSISTENT  LAW
To the extent permitted by law, each Transaction Document prevails to the extent
it  is  inconsistent  with  any  law.
SUPERVENING  LEGISLATION
Any  present or future legislation which operates to vary the obligations of the
Company  in  connection  with  a  Transaction  Document with the result that the
Lender's  rights, powers or remedies are adversely affected (including by way of
delay  or  postponement)  is excluded except to the extent that its exclusion is
prohibited  or  rendered  ineffective  by  law.
TIME  OF  THE  ESSENCE
Time  is  of the essence in any Transaction Document in respect of an obligation
of  the  Company  to  pay  money.
VARIATION  AND  WAIVER
A  provision  of  a  Transaction Document, or right created under it, may not be
waived  or  varied except in writing signed by the party or parties to be bound.
CONFIDENTIALITY
Each  party  agrees not to disclose information provided by the other party that
is  not  publicly  available  (including  the  existence  or  contents  of  any
Transaction  Document)  except:
(a)     to any person in connection with an exercise of rights or a dealing with
rights  or obligations under a Transaction Document, provided that any person to
whom disclosure is made in accordance with this paragraph is under an obligation
of  confidence  in  substantially  the  same  terms  as  this  clause 19.17; or
(b)     to a person considering entering into (or who enters into) a credit swap
with  the  Lender  involving credit events relating to the Company or its Parent
provided  that  any  person  to  whom disclosure is made in accordance with this
paragraph  is  under an obligation of confidence in substantially the same terms
as  this  clause  19.17;  or
(c)     to  officers,  employees,  legal  and other advisers and auditors of the
Company  or  the  Lender, provided that any person to whom disclosure is made in
accordance  with  this  paragraph  is  under  an  obligation  of  confidence  in
substantially  the  same  terms  as  this  clause  19.17;  or
(d)     in  the case of the Company to the Parent, provided the Parent agrees to
act  consistently  with  this  clause  19;  or
(e)     with the consent of the party who provided the information (such consent
not  to  be  unreasonably  withheld);  or
(f)     as  required  by  any  law  or  stock  exchange;  or
(g)     in  the  case  of  the  Company,  to  a third party who has expressed an
interest  in  participating  in  the  Project,  provided that any person to whom
disclosure  is  made in accordance with this paragraph is under an obligation of
confidence  in  substantially  the  same  terms  as  this  clause  19.17.
Each  party  consents  to  disclosures  made  according  to  this  clause 19.17.
COUNTERPARTS
This  agreement  may  consist  of a number of copies, each signed by one or more
parties to the agreement.  If so, the signed copies are treated as making up the
one  document.
APPLICABLE  LAW
Each Transaction Document is governed by the law in force in the place specified
in  the  Details  and  the  Company  and  the Lender submit to the non-exclusive
jurisdiction  of  the  courts  of  that  place.
SERVING  DOCUMENTS
Without  preventing  any other method of service, any document in a court action
may  be  served on a party by being delivered to or left at that party's address
for  service  of  notices  under  clause  18  ("Notices").
INTERPRETATION
DEFINITIONS
These  meanings  apply  unless  the  contrary  intention  appears:
ACCOUNTABLE  TAXES  means  any  Taxes  imposed  by a Relevant Country other than
those:
(a)     imposed  on,  or  calculated  having  regard  to,  the net income of the
Lender,  or
(b)     which  would not be required to be deducted by the Company if the Lender
provided  the  Company  with  any  of  its name, address, registration number or
similar  details  or  any  relevant  tax  exemption  or  similar  details.
AMOUNT  OWING  means the total of all amounts which are then due for payment, or
which  will  or  may  become due for payment, in connection with any Transaction
Document  (including  transactions  in  connection  with  them)  to  the Lender.
AUSTRALIAN  DOLLARS  and  $A  means  the  lawful  currency  of  Australia.
AUTHORISED  OFFICER  MEANS:
(a)     in  the case of the Lender, a director or secretary, or an officer whose
title  contains  the  word  "director", "chief", "head" or "manager" or a person
performing  the  functions  of any of them, or any other person nominated by the
Lender  as  an Authorised Officer for the purposes of the Transaction Documents;
and
(b)     in  the case of the Company, a person appointed by the Company to act as
an  Authorised  Officer under the Transaction Documents to which it is a party.
BILL  has  the  meaning  it  has in the Bills of Exchange Act 1909 (CWLTH) and a
reference to the drawing, acceptance or endorsement of, or other dealing with, a
Bill  is  to  be  interpreted  in  accordance  with  that  Act.
BREAK  COSTS  mean any costs incurred by the Lender in terminating any agreement
to  fund  amounts  the  Lender  is  obligated to fund under this agreement, as a
consequence  either of failure of the Company to make a drawdown after giving an
irrevocable  Drawdown  Notice  or  a  prepayment  of  a  Facility.
BUSINESS DAY means a day on which banks are open for general banking business in
the  place  or  places set out in the Details under "Business Day place(s)" (not
being  a  Saturday,  Sunday  or  public  holiday  in  that  place).
COMPANY  means  the  person  so  described  in  the  Details.
CONSTITUENT  DOCUMENTS means the articles of incorporation, by-laws, partnership
agreements  or  such  other  documents  or  instruments which are required to be
registered  or  lodged in the place of incorporation or organisation of a person
and  which  establish  the  legal  existence  of  such  person.
CONTROL  of  a  corporation includes the direct or indirect power to directly or
indirectly:
(a)     direct  the  management  or  policies  of  the  corporation;  or
(b)     control  the  membership  of  the  board  of  directors,
whether  or not the power has statutory, legal or equitable force or is based on
statutory,  legal  or  equitable rights and whether or not it arises by means of
trusts,  agreements,  arrangements,  understandings, practices, the ownership of
any  interest  in  shares  or  stock  of  the  corporation  or  otherwise.
COSTS  includes  costs,  charges  and  expenses,  including  those  incurred  in
connection  with  advisers.
DEFAULT  RATE  means 2% above the ten year indicator rate for Commonwealth Bonds
as  published in the Australian Financial Review on the date the Default Rate is
being  calculated.  If  that  rate  ceases  to be published or available for any
reason, the Default Rate is the rate that most closely approximates the ten year
indicator rate for Commonwealth Bonds as determined by the Lender acting in good
faith.
DETAILS  means  the  section  of  this  agreement  headed  "Details".
DRAWDOWN  DATE  means  the  date  on  which  a  drawdown  is  or  is to be made.
DRAWDOWN  NOTICE  means  a  completed  notice  containing  the  information  and
representations  and  warranties  set  out  in  schedule  5.
DRAWING  means  the  outstanding  principal  amount  of  a drawdown made under a
Facility.
ENCUMBRANCE  means  any:
(a)     security  for  the  payment  of  money  or  performance  of obligations,
including  a  mortgage,  charge,  lien,  pledge, trust, power or title retention
arrangement;  or
(b)     right  of  set-off,  assignment  of  income, garnishee order or monetary
claim;  or
(c)     right that a person (other than the registered proprietor) has to remove
something  from  land  (known  as a profit   prendre), easement, public right of
way,  restrictive  or positive covenant, lease, or licence to use or occupy; or
(d)     equity,  interest  or  writ  of  execution,
or  any  agreement  to  create  any  of  them  or  allow  them  to  exist.
ENVIRONMENT  means the physical factors of the surroundings of persons including
the  land,  water,  atmosphere,  climate,  sound,  odours, taste, the biological
factors  of  animals  and  plants  and  the  social  factor  of  aesthetics.
ENVIRONMENTAL  LAW  means  a  law  regulating  or  otherwise  relating  to  the
Environment, including but not limited to any law relating to land use planning,
pollution or air or water, soil or ground water contamination, chemicals, waste,
use  of dangerous goods or to any other aspect of protection of the Environment.
ESCROW  ACCOUNT  means the account established pursuant to the Escrow Agreement.
ESCROW  AGENT  means  Westpac  Banking  Corporation.
ESCROW  AGREEMENT  means  the  agreement  in  schedule  6.
ESCROW  NOTICE  means  the  notice  given  under  clause  2.7,  3.7  or  4.7.
EVENT  OF  DEFAULT  means  an  event  so  described  in  clause  13 ("Default").
FACILITIES  means the Tranche A Facility, the Tranche B Facility and the Tranche
C  Facility made available under this agreement, and FACILITY means any of them.
FINANCIAL  STATEMENTS  means:
(a)     a  profit  and  loss  statement;  and
(b)     a  balance  sheet;  and
(c)     a  statement  of  cash  flows,
together  with  any notes to those documents and any other information necessary
to  give  a  true  and  fair  view.
HEAD  LICENCE  means  the  licence  agreement  dated as of 2 August 2000 between
Syntroleum  Corporation  as  licensor  and  Syntroleum  Australian  Licensing
Corporation  as  licensee.
A  person  is  INSOLVENT  if:
(a)     an  involuntary proceeding is commenced against them (and is not stayed,
withdrawn  or  dismissed  within  90  days) under any applicable U.S. Federal or
State  bankruptcy,  insolvency,  reorganization  or  other  similar  law:
(i)     seeking  that  they  be  wound  up  or  liquidated;
(ii)     seeking  that  they  be  adjudged  bankrupt  or  insolvent;
(iii)     seeking  reorganisation,  arrangement, adjustment or composition of or
in  respect  of  them  under  any  applicable  law;
(iv)     seeking the appointment of a Receiver, liquidator, custodian, assignee,
trustee,  sequestrator (or other similar official) of them or of any substantial
part  of  their  property  or  other  assets;
(v)     seeking  any relief under any other law affecting creditors' rights that
is  similar  to  a  bankruptcy  or  insolvency  or  reorganization  law;  or
(b)     they:
(i)     commence  a  voluntary  case  or  proceeding  under  any applicable U.S.
Federal  or State bankruptcy, insolvency, reorganization or other similar law or
of  any  other  case  or proceedings to be adjudicated a bankrupt or insolvent;
(ii)     consent  to the entry of a decree or order for relief in an involuntary
case  or  proceeding  under  any  applicable  U.S.  Federal or State bankruptcy,
insolvency,  reorganization  or  other  similar  law;  or
(iii)     file  a petition or answer or consent seeking reorganization or relief
under  any  applicable  U.S.  Federal  or State law, or the consent by it to the
filing  of  such  petition;
(iv)     consent  to  the  appointment  of  or taking possession by a custodian,
Receiver,  liquidator, assignee, trustee, suquestrator or other similar official
to  it  or  any  substantial  part  of  its  property;
(v)     make  an  assignment  for  the  benefit  of  their creditors generally;
(vi)     admit  in  writing their inability to pay their debts generally as they
become  due;  or
(vii)     take  any  action  for  the  purpose of doing any of those things; or
     (c)     a  court  having  jurisdiction  enters:
(i)     a  decree  or order for relief in respect of them in an involuntary case
or proceeding under any applicable U.S. Federal or State bankruptcy, insolvency,
reorganization  or  other  similar  law;  or
(ii)     a  decree or order adjudging them a bankrupt or insolvent, or approving
as  properly filed a petition seeking reorganization, arrangement, adjustment or
composition  of or in respect of them under any applicable U.S. Federal or State
law,  or  appointing  a  custodian,  receiver,  liquidator,  assignee,  trustee,
sequestrator  or  other  similar  official to them or of any substantial part of
their  property  or  ordering  the  winding up or liquidation of their affairs,
and  the  continuance  of  any such decree or order for relief or any such other
decree  or  order  unstayed  and  in effect for a period of 90 consecutive days.
LENDER  means  the  person  so  described  in  the  Details.
LICENCE  AGREEMENT  means:
(a)     the  licence  agreement dated 3 August 2000 between Syntroleum Australia
Licensing  Corporation  as  licensor  and  the  Lender  as  licensee;  and
(b)     any  licence  agreement issued in substitution for that original licence
agreement,  irrespective  of  the  parties  to  it.
LICENCE FEE means the amounts payable as such under the Licence Agreement or any
Site  Licence  Agreement.
MAJOR  EVENT  OF  DEFAULT means an Event of Default arising under any of clauses
13.1(a),  13.1(f),  13.1(i),  13.1(j),  13.1(l)  and  13.1(p)(ii).
MATERIAL  ADVERSE  EVENT  means  something  which  materially adversely affects:
(a)     the  Company's  ability  to  comply  with  its  obligations  under  any
Transaction Document or to carry on its business as it is being conducted at the
time  immediately  before  the  event;  or
(b)     the  rights  of  the  Lender  under  a  Transaction  Document.
MATERIAL  SUBSIDIARY  means  an  entity  that  :
(a)     is  a  Subsidiary  of  another  entity;  and
(b)     the  value  of  that  other  entity's  interest  in  the  first  entity
constitutes  more  than  5  percent  of  the  net  assets  of such other entity
MATURITY DATE means the maturity date set out in the Details for a Facility, but
if  that  is  not  a  Business  Day,  then  the  preceding  Business  Day.
PARENT  means  Syntroleum  Corporation,  a  Delaware  corporation.
PERMITTED  ENCUMBRANCES  means:
(a)     Encumbrances imposed by law for Taxes or fees imposed as a matter of law
that  are  not  yet  due  or  are  being  contested  in  good  faith;
(b)     Encumbrances  securing  indebtedness  that  is  approved by the Lender;
(c)     carriers',  warehousemen's,  mechanics',  materialmen's  and repairmen's
Encumbrances,  and  other  like  Encumbrances  imposed  by  law,  arising in the
ordinary  course  of  business  and securing obligations that are not overdue by
more than ninety days unless being contested (provided that any such Encumbrance
in  dispute  is  bonded  in full or adequate cash reserves have been provided);
(d)     pledges  and deposits and other Encumbrances made in the ordinary course
of business in compliance with workers' compensation, unemployment insurance and
other  social  security  laws  or  regulations;  and
(e)     easements,  zoning  restrictions,  rights-of-way,  reservations,
restrictions  and  other similar Encumbrances on real property imposed by law or
arising  in  the  ordinary  course  of  business that do not secure any monetary
obligations  and  do  not  materially  detract  from  the  value of the affected
property  or  interfere  with  the ordinary conduct of business of the Company.
POTENTIAL  EVENT  OF  DEFAULT  means  an event which, with the giving of notice,
lapse  of  time  or  fulfillment  of any condition, would be likely to become an
Event  of  Default.
PROJECT  means  the  construction  of  a  facility  in  Australia  to be used to
demonstrate  the  commercial feasibility of the Parent's GTL technology directed
to  the  production  of  synthetic  fuel products, and which will be designed to
allow  for  future  testing  of  GTL  fuel  reactors  on  the  site.
RECEIVER  includes  a  receiver  or  receiver  and  manager.
RELEVANT  COUNTRY  means  any  country,  or political subdivision of one or more
countries, or any federation or association of countries in which the Company is
either  incorporated or is resident or domiciled for any tax purpose or in which
the  Company  carries  on  business or owns or leases property or from which, or
through  which,  any  payment  under  a  Transaction  Document  is  made.
SECURITIES  AND  EXCHANGE  COMMISSION  means  the  United  States Securities and
Exchange  Commission.
SIDE  LETTER  means the letter dated on or about the date of this agreement from
the Parent addressed to the Lender and expressed to be the "Side Letter" for the
purposes  of  this  agreement.
SITE  LICENCE  AGREEMENT  has  the  same  meaning  as  in the Licence Agreement.
SUBSIDIARY  means  an  entity  that:
(a)     another  entity:
(i)     controls  the  composition  of  the  first  entity's  board;
(ii)     is in a position to cast, or control the casting of, more than one-half
of  the  maximum  number of votes that might be cast at a general meeting of the
first  entity;  or
(iii)     holds  more  than  one-half  of  the issued share capital of the first
entity (excluding any part of that issued share capital that carries no right to
participate  beyond  a  specified  amount in a distribution of either profits or
capital)  or
     (b)     the  first  entity  is  a  subsidiary  of a subsidiary of the other
entity.
TAXES  means  taxes,  levies,  imposts,  charges and duties (including stamp and
transaction duties) imposed by any authority together with any related interest,
penalties,  fines  and  expenses  in  connection  with  them.
TRANSACTION  DOCUMENTS  means  the  documents  described as such in the Details.
REFERENCES  TO  CERTAIN  GENERAL  TERMS
Unless  the  contrary  intention  appears,  a  reference  in  this agreement to:
(a)     a group of persons is a reference to any two or more of them jointly and
to  each  of  them  individually;
(b)     an  agreement,  representation  or  warranty  in  favour  of two or more
persons  is  for  the  benefit  of  them jointly and each of them individually;
(c)     an  agreement,  representation  or warranty by two or more persons binds
them  jointly  and each of them individually but an agreement, representation or
warranty  by  the  Lender  binds  the  Lender  individually  only;
(d)     anything (including an amount) is a reference to the whole and each part
of  it;
(e)     a  document  (including  this  agreement)  includes  any  variation  or
replacement  of  it;
(f)     law  means common law, principles of equity, and laws made by parliament
(and  laws made by parliament include State, Territory and Commonwealth laws and
regulations  and  other  instruments under them, and consolidations, amendments,
re-enactments  or  replacements  of  any  of  them);
(g)     an  accounting  term  is  a  reference  to  that  term  as it is used in
accounting  principles  and  practices  generally  accepted  in  Australia;
(h)     the  word  "person" includes an individual, a firm, a body corporate, an
unincorporated  association  and  an  authority;
(i)     a  particular  person  includes  a  reference to the person's executors,
administrators,  successors,  substitutes (including persons taking by novation)
and  assigns;
(j)     the  words  "including",  "for example" or "such as" when introducing an
example,  do  not limit the meaning of the words to which the example relates to
that  example  or  examples  of  a  similar  kind.
NUMBER
The  singular  includes  the  plural  and  vice  versa.
HEADINGS
Headings  (including  those  in brackets at the beginning of paragraphs) are for
convenience  only  and  do  not  affect  the  interpretation  of this agreement.
EXECUTED  as  an  agreement.

Schedule  1  -  Conditions  precedent  (clause  5.2(a))
CONDITIONS  TO  FIRST  DRAWDOWN
-     Each  item  must  be  in  form  and substance satisfactory to the Lender.
-     Certification is to be by a director or secretary of the Company, that the
item  is  true  and  complete  as  at  a  date  no earlier than the date of this
agreement
-     United  States  of  America  includes  any  state  of the United States of
America.

                            ITEM     FORM     REQUIRED FOR
1     Certificate  annexing  and  confirming  Constituent Documents     Original
Company
2     Certificate  of  registration     Certified  copy     Company
     Extract  of  minutes of a meeting of the Company's board of directors which
evidences  the  resolutions:
     (a)   authorising  the signing and delivery of the Transaction Documents to
which  it  is  a  party and the observance of obligations under those documents;
and
     (b)  appointing  Authorised  Officers of the Company; and          Company
3     (c)  which  acknowledge  that  the Transaction Documents (to which it is a
party)  will  benefit  the  Company.     Certified  copy
               Company

4     Each  document  which  evidences  any  other  necessary corporate or other
action  of  the Company in connection with the Transaction Documents to which it
is  a  party.     Certified  copy
               Company
5     Each  authorisation of the Company necessary to enter into the Transaction
Documents  to  which  it  is  a party and to comply with obligations under those
documents  and  enforce  those  documents.     Certified  copy
               Company
6     Each  power  of attorney under which a person signs a Transaction Document
for  the  Company  showing  evidence  of stamping and registration.     Original
     Specimen  signature  of
     (a)   each  Authorised  Officer  of  the  Company;  and          Company
7     (b)   each  other  person who is authorised to sign a Transaction Document
for  the  Company.     Original
     This  agreement
     (a)   fully  signed;  and
8     (b)   evidence  of  stamping;     Original     Not  applicable
     An  opinion from the Company's United States legal adviser addressed to the
Lender,  on  terms  satisfactory  to  the  Lender,  stating  that:
     A.  the  Company  is  incorporated  under  the  laws  of  the  place of its
incorporation  stated  in  the  Transaction  Documents;
9     B.  the  Company  has  the  corporate  power to enter into and perform its
obligations  under  each  Transaction  Document  to  which  it  is  a  party;
Original     Company
     C.  the  execution,  delivery  and  performance  by  the  Company  of  each
Transaction  Document to which it is a party did not and will not violate in any
respect  any  existing  provision  of:
     I.  the  corporate  law  of  Delaware,  the  United  States  of  America;
     II.  its  Constituent  Documents;
     D.  all  authorisations  under the corporate law of Delaware and the United
States  of America now obtainable and required in connection with the execution,
delivery,  performance,  validity or enforceability of the Transaction Documents
have  been  obtained  or  effected  and  are  in  full  force  and  effect;
     E.  no  stamp or registration or similar taxes or charges are payable under
the corporate law of Delaware or the United States of America in connection with
the  execution,  delivery,  performance  and  enforcement  of  the  Transaction
Documents  or  any  transaction  contemplated  by  them;
     F.  it is not necessary or advisable under the corporate law of Delaware or
the  United  States  of  America  to  file,  register  or record any Transaction
Document;
     G.  neither  the  Company  nor  any  of  its  properties  or assets has any
immunity  from  the  jurisdiction  of  any court or from legal process under the
corporate  law  of  Delaware  or  the  laws  of  the  United States of America;
     H.  Delaware corporate law does not preclude the Company from selecting the
laws  of  the  Australian Capital Territory as governing law for the Transaction
Documents;  and
     I.  Under  the  laws  of  New York, the stated choice by the parties of the
laws of the Australian Capital Territory as the governing law of the Transaction
Documents  would  be  honored  by  a  New  York  Court  having  jurisdiction.

A$  LOAN  AGREEMENT

Schedule  2  -  Tranche  A  Conditions  Precedent
One  or  more certificates delivered to the Lender by a director or secretary of
the Company, in form and substance satisfactory to the Lender, certifying as to:
(a)     the issuance of all permits, approvals and consents for the development,
construction,  installation,  operation  and  maintenance  of  the  Project  (as
required  by  any  applicable  Environmental  Law);
(b)     Final  Closing  of  the debt and equity financing for the Project to the
satisfaction  of  the  Lender,  "FINAL  CLOSING"  means that all debt and equity
financing  for  the  Project  is  available  to  the  Company  subject  only  to
construction loan conditions which are usual for a financing of that kind; and
(c)     the  Company  obtaining  all  material real property rights or interests
which are reasonably required (as determined by the Lender) for the development,
construction,  installation, operation and maintenance of the Project, including
the  Lender  being  satisfied  that all native title agreements sufficient for:
commencement  of  the  Project;  and
Final  Closing  of debt and equity financing for the Project, and required to be
in  place  under  the terms of that financing prior to first drawdown, have been
finalised.

A$  LOAN  AGREEMENT

Schedule  3  -  Tranche  B  Conditions  Precedent
The Lender being satisfied that an order in terms satisfactory to the Lender has
been  placed  by  a  third party (satisfactory to the Lender) for the use of the
auto-thermal  reformer or other essential comparable equipment (as determined by
the  Lender)  for  the  Project.

A$  LOAN  AGREEMENT

Schedule  4  -  Tranche  C  Condition  Precedent
The  Project  having  been fully constructed and feed gas introduced in material
quantities,  and  the  production  of evidence satisfactory to the Lender of the
conversion  of  gas  into  synthesis gas by the Project in quantities reasonably
satisfactory  to  the  Lender.

A$  LOAN  AGREEMENT

Schedule  5  -  Drawdown  Notice
To:     Commonwealth  of  Australia
        Department  of  Industry,  Science  and  Resources
        Level  6,  20  Allara  Street
        Canberra  ACT  2601
        Australia

Attention:     GENERAL  MANAGER,  INVEST  AUSTRALIA
[DATE]
DRAWDOWN  NOTICE  -  LOAN  AGREEMENT  BETWEEN  SYNTROLEUM  AUSTRALIA  CREDIT
CORPORATION,  AND  THE  COMMONWEALTH  OF  AUSTRALIA  DATED  3 AUGUST 2000 ("LOAN
AGREEMENT")
Under  clause  [2/3/4  (DELETE  TWO)]  of  the Loan Agreement, the Company gives
notice  as  follows:1
The  Company  wants  to  borrow under the [Tranche A/Tranche B/Tranche C (DELETE
TWO)]  Facility.  2
-     The  requested  Drawdown  Date  is  [           ].3
-     The  amount  of  the  proposed  drawdown  is  A$[         ].4
-     The  proposed  drawdown  is  to  be  paid  to:
Account  number:     [                        ]
Account  name:     [                        ]
Bank:               [                        ]
Branch:          [                        ]
Branch  number:     [                        ]
The  Company  attaches  a  certificate  according to clause [2.2/3.2/4.2 (DELETE
TWO)].
The  Company  represents and warrants that the representations and warranties in
the  A$ Loan Agreement are correct and not misleading on the date of this notice
and that each will be correct and not misleading on the Drawdown Date, except as
disclosed  below.

<PAGE>
The  "Interpretation"  clause of the A$ Loan Agreement applies to this notice as
if  it  was  fully  set  out  in  this  notice.

                                   DISCLOSURE

[NAME  OF  PERSON]  being
an  Authorised  Officer  of
[NAME  OF  COMPANY]

INSTRUCTIONS  FOR  COMPLETION
1     Insert  for  relevant  facility  - Tranche A 2.2, Tranche B 3.2, Tranche C
4.2.
2     All  items  must  be  completed.
3     Must  be  a  Business  Day  within  the  availability  period.
4     Must  be  for  the  Facility  Limit  of  the  particular  Facility.

A$  LOAN  AGREEMENT
Schedule  6  -  Escrow  Agreement

Signing Page
DATED:  3  August  2000

SIGNED  for  and  on  behalf  of  THE  COMMONWEALTH  OF  AUSTRALIA  by     Mike
                                                                       ---------
Holthuyzen  as  its  duly  authorised  representative in the presence of:
----------
      /s/
----------------
     )
 Murray  Fearn
----------------
Name  of  witness  (block  letters)

 Canberra
---------
Address  of  witness
     )
 General  Manager
-----------------
Occupation  of  witness

                                     /s/
                                    ----
          By executing this agreement the signatory warrants that the signatory
is  duly  authorised  to execute this agreement on behalf of the Commonwealth of
Australia

SIGNED  for  and  on  behalf of SYNTROLEUM AUSTRALIA CREDIT CORPORATION by
 Randall  M.  Thompson
----------------------
as  its  duly  authorised  representative  in  the  presence  of:

 /s/
----
Signature  of  witness
     )
 Paul  Anthony  Crawford
------------------------
Name  of  witness  (block  letters)

 c/o  60  Marcus  Street,  Canberra
-----------------------------------
Address  of  witness     )

 Solicitor
----------
Occupation  of  witness

                                  /s/
                                 ----
          By  executing this agreement the signatory warrants that the signatory
is  duly  authorised to execute this agreement on behalf of Syntroleum Australia
Credit  Corporation

A$  LOAN  AGREEMENT
Dated
SYNTROLEUM  AUSTRALIA  CREDIT  CORPORATION  (COMPANY)

COMMONWEALTH  OF  AUSTRALIA  (LENDER)

MALLESONS  STEPHEN  JAQUES
Solicitors
Ref:  CANBERRA/258912.01

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