Document:

Exhibit
      10.29

    

     

    

     

    PURCHASE
      AND SALE AGREEMENT

     

    dated
      as
      of

     

    August
      4,
      2006

     

    among

     

    PFIZER
      INC.,

    

    G.D.
      SEARLE LLC,

     

    AUGUSTA
      BIOFUELS,
      LLC

     

    and

     

    COASTALXETHANOL
      LLC

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Table
      of
      Contents 

     

    
      
        	 	 	 	Page	 
	 	 	 	 	 
	
                ARTICLE
                  I DEFINITIONS AND TERMS

              	 	 	
                1

              	 
	
                Section
                  1.1.

              	 	 	
                Definitions

              	 	 	
                1

              	 
	
                Section
                  1.2.

              	 	 	
                Other
                  Definitional Provisions

              	 	 	
                8

              	 
	
                ARTICLE
                  II PURCHASE AND SALE

              	 	 	
                8

              	 
	
                Section
                  2.1.

              	 	 	
                Purchase
                  and Sale of Assets of the Facility

              	 	 	
                8

              	 
	
                Section
                  2.2.

              	 	 	
                Consents

              	 	 	
                9

              	 
	
                Section
                  2.3.

              	 	 	
                Excluded
                  Assets

              	 	 	
                10

              	 
	
                Section
                  2.4.

              	 	 	
                Assumption
                  of Certain Liabilities

              	 	 	
                12

              	 
	
                Section
                  2.5.

              	 	 	
                Retained
                  Liabilities

              	 	 	
                12

              	 
	
                Section
                  2.6.

              	 	 	
                Purchase
                  Price

              	 	 	
                14

              	 
	
                Section
                  2.7.

              	 	 	
                Allocation
                  of the Purchase Price

              	 	 	
                14

              	 
	
                Section
                  2.8.

              	 	 	
                Risk
                  of Loss

              	 	 	
                14

              	 
	
                Section
                  2.9.

              	 	 	
                Further
                  Assurances

              	 	 	
                14

              	 
	
                ARTICLE
                  III CLOSING

              	 	 	
                15

              	 
	
                Section
                  3.1.

              	 	 	
                Closing

              	 	 	
                15

              	 
	
                ARTICLE
                  IV CONDITIONS TO CLOSING

              	 	 	
                15

              	 
	
                Section
                  4.1.

              	 	 	
                Conditions
                  to the Obligations of Purchaser and Sellers

              	 	 	
                15

              	 
	
                Section
                  4.2.

              	 	 	
                Conditions
                  to the Obligations of Purchaser

              	 	 	
                16

              	 
	
                Section
                  4.3.

              	 	 	
                Conditions
                  to the Obligations of Sellers

              	 	 	
                17

              	 
	
                ARTICLE
                  V REPRESENTATIONS AND WARRANTIES OF SELLERS

              	 	 	
                17

              	 
	
                Section
                  5.1.

              	 	 	
                Organization

              	 	 	
                18

              	 
	
                Section
                  5.2.

              	 	 	
                Authority;
                  Binding Effect

              	 	 	
                18

              	 
	
                Section
                  5.3.

              	 	 	
                Non-Contravention

              	 	 	
                18

              	 
	
                Section
                  5.4.

              	 	 	
                Required
                  Consents

              	 	 	
                18

              	 
	
                Section
                  5.5.

              	 	 	
                Licenses
                  and Permits

              	 	 	
                18

              	 
	
                Section
                  5.6.

              	 	 	
                Governmental
                  Authorization

              	 	 	
                19

              	 
	
                Section
                  5.7.

              	 	 	
                No
                  Litigation

              	 	 	
                19

              	 
	
                Section
                  5.8.

              	 	 	
                Compliance
                  with Laws

              	 	 	
                19

              	 
	
                Section
                  5.9.

              	 	 	
                Environmental
                  Matters

              	 	 	
                19

              	 
	
                Section
                  5.10.

              	 	 	
                Assumed
                  Contracts

              	 	 	
                20

              	 
	
                Section
                  5.11.

              	 	 	
                Real
                  Property

              	 	 	
                20

              	 
	
                Section
                  5.12.

              	 	 	
                Taxes

              	 	 	
                20

              	 
	
                Section
                  5.13.

              	 	 	
                Title
                  to the Purchased Assets other than Real Property

              	 	 	
                20

              	 
	
                Section
                  5.14.

              	 	 	
                Brokers

              	 	 	
                21

              	 
	
                Section
                  5.15.

              	 	 	
                Limitations

              	 	 	
                21

              	 
	
                ARTICLE
                  VI REPRESENTATIONS AND WARRANTIES OF PURCHASER PARTIES

              	 	 	
                21

              	 
	
                Section
                  6.1.

              	 	 	
                Organization

              	 	 	
                21

              	 
	
                Section
                  6.2.

              	 	 	
                Authority;
                  Binding Effect

              	 	 	
                21

              	 
	
                Section
                  6.3.

              	 	 	
                Non-Contravention

              	 	 	
                21

              	 
	
                Section
                  6.4.

              	 	 	
                Governmental
                  Authorization; Third Party Consent

              	 	 	
                22

              	 
	
                Section
                  6.5.

              	 	 	
                Litigation

              	 	 	
                22

              	 
	
                Section
                  6.6.

              	 	 	
                Financial
                  Capability

              	 	 	
                22

              	 
	
                Section
                  6.7.

              	 	 	
                Condition
                  of the Purchased Assets

              	 	 	
                22

              	 

      

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

       

      
        	
                Section
                  6.8.

              	 	 	
                Brokers

              	 	 	
                22

              	 
	
                ARTICLE
                  VII COVENANTS

              	 	 	
                23

              	 
	
                Section
                  7.1.

              	 	 	
                Information
                  and Documents; Confidentiality

              	 	 	
                23

              	 
	
                Section
                  7.2.

              	 	 	
                Conduct
                  of Business

              	 	 	
                23

              	 
	
                Section
                  7.3.

              	 	 	
                Best
                  Efforts; Certain Governmental Matters

              	 	 	
                24

              	 
	
                Section
                  7.4.

              	 	 	
                Tax
                  Matters

              	 	 	
                24

              	 
	
                Section
                  7.5.

              	 	 	
                Environmental
                  Consultant

              	 	 	
                26

              	 
	
                Section
                  7.6.

              	 	 	
                Insurance

              	 	 	
                26

              	 
	
                Section
                  7.7.

              	 	 	
                Notification
                  of Certain Matters

              	 	 	
                27

              	 
	
                Section
                  7.8.

              	 	 	
                Bulk
                  Sales Laws

              	 	 	
                27

              	 
	
                Section
                  7.9.

              	 	 	
                Compliance
                  with WARN, Etc

              	 	 	
                27

              	 
	
                Section
                  7.10.

              	 	 	
                Access
                  and Cooperation Agreement

              	 	 	
                27

              	 
	
                Section
                  7.11.

              	 	 	
                E&O
                  Agreement

              	 	 	
                27

              	 
	
                Section
                  7.12.

              	 	 	
                Use
                  of the Facility Parcel

              	 	 	
                28

              	 
	
                Section
                  7.13.

              	 	 	
                Transfer
                  of Permits

              	 	 	
                28

              	 
	
                Section
                  7.14.

              	 	 	
                Employees
                  and Employee Benefit Matters

              	 	 	
                28

              	 
	
                Section
                  7.15.

              	 	 	
                Fulfillment
                  of Conditions by Sellers..

              	 	 	
                28

              	 
	
                Section
                  7.16.

              	 	 	
                Fulfillment
                  of Conditions by the Purchasing Parties

              	 	 	
                28

              	 
	
                Section
                  7.17.

              	 	 	
                Removing
                  Excluded Assets

              	 	 	
                29

              	 
	
                Section
                  7.18.

              	 	 	
                Liens
                  other than Permitted Encumbrances..

              	 	 	
                29

              	 
	
                Section
                  7.19.

              	 	 	
                Sellers’
                  obligation to conduct a Remedial Action.

              	 	 	
                29

              	 
	
                Section
                  7.20.

              	 	 	
                Purchaser’s
                  Post-Closing Due Care.

              	 	 	
                29

              	 
	
                Section
                  7.21.

              	 	 	
                Removal
                  of the IKON equipment..

              	 	 	
                29

              	 
	
                ARTICLE
                  VIII INDEMNIFICATION

              	 	 	
                30

              	 
	
                Section
                  8.1.

              	 	 	
                Indemnification
                  by Pfizer

              	 	 	
                30

              	 
	
                Section
                  8.2.

              	 	 	
                Indemnification
                  by Purchaser

              	 	 	
                30

              	 
	
                Section
                  8.3.

              	 	 	
                Notice
                  of Claims

              	 	 	
                31

              	 
	
                Section
                  8.4.

              	 	 	
                Third
                  Party Claims

              	 	 	
                32

              	 
	
                Section
                  8.5.

              	 	 	
                Expiration

              	 	 	
                32

              	 
	
                Section
                  8.6.

              	 	 	
                Certain
                  Limitations

              	 	 	
                32

              	 
	
                Section
                  8.7.

              	 	 	
                Losses
                  Net of Insurance, Other Indemnities, Etc

              	 	 	
                33

              	 
	
                Section
                  8.8.

              	 	 	
                Survival

              	 	 	
                33

              	 
	
                Section
                  8.9.

              	 	 	
                Sole
                  Remedy/Waiver

              	 	 	
                33

              	 
	
                Section
                  8.10.

              	 	 	
                Indemnification
                  Procedures for Remedial Actions on Purchased Assets

              	 	 	
                34

              	 
	
                Section
                  8.11.

              	 	 	
                Limitation
                  on Indemnification for Third Party Claims for Remedial
                  Action

              	 	 	
                35

              	 
	
                Section
                  8.12.

              	 	 	
                Coordination;
                  Tax Treatment of Payments

              	 	 	
                35

              	 
	
                Section
                  8.13.

              	 	 	
                No
                  Consequential Damages

              	 	 	
                35

              	 
	
                ARTICLE
                  IX TERMINATION

              	 	 	
                36

              	 
	
                Section
                  9.1.

              	 	 	
                Termination

              	 	 	
                36

              	 
	
                Section
                  9.2.

              	 	 	
                Effect
                  of Termination

              	 	 	
                37

              	 
	
                Section
                  9.3.

              	 	 	
                Remedies
                  for Termination due to Breach.

              	 	 	
                37

              	 
	
                ARTICLE
                  X MISCELLANEOUS

              	 	 	
                37

              	 
	
                Section
                  10.1.

              	 	 	
                Notices

              	 	 	
                37

              	 
	
                Section
                  10.2.

              	 	 	
                Amendment;
                  Waiver

              	 	 	
                38

              	 

      

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

       

      
        	
                Section
                  10.3.

              	 	 	
                Assignment

              	 	 	
                38

              	 
	
                Section
                  10.4.

              	 	 	
                Entire
                  Agreement

              	 	 	
                38

              	 
	
                Section
                  10.5.

              	 	 	
                Fulfillment
                  of Obligations

              	 	 	
                39

              	 
	
                Section
                  10.6.

              	 	 	
                Parties
                  in Interest

              	 	 	
                39

              	 
	
                Section
                  10.7.

              	 	 	
                Public
                  Disclosure

              	 	 	
                39

              	 
	
                Section
                  10.8.

              	 	 	
                Return
                  of Information

              	 	 	
                39

              	 
	
                Section
                  10.9.

              	 	 	
                Expenses

              	 	 	
                39

              	 
	
                Section
                  10.10.

              	 	 	
                Schedules

              	 	 	
                39

              	 
	
                Section
                  10.11.

              	 	 	
                Governing
                  Law; Jurisdiction

              	 	 	
                40

              	 
	
                Section
                  10.12.

              	 	 	
                Guarantee
                  of Purchaser Obligations

              	 	 	
                40

              	 
	
                Section
                  10.13.

              	 	 	
                Counterparts

              	 	 	
                40

              	 
	
                Section
                  10.14.

              	 	 	
                Headings

              	 	 	
                40

              	 
	
                Section
                  10.15.

              	 	 	
                Severability

              	 	 	
                40

              	 

      

    

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

    List
      of Schedules

    

      
        	
                1.1(a)

              	
                Knowledge
                  of Pfizer

              
	
                1.1(b)

              	
                Knowledge
                  of Purchaser

              
	
                2.1(b)

              	
                Equipment

              
	
                2.1(c)

              	
                Assumed
                  Contracts

              
	
                2.1(d)

              	
                Assumed
                  Governmental Authorizations 

              
	
                2.2(a)

              	
                Consent-required
                  Items

              
	
                2.3(g)
                  

              	
                Retained
                  Intellectual Property

              
	
                2.3(k)

              	
                Non-transferable
                  Permits and Licenses

              
	
                2.3(n)

              	
                Assets
                  Used in Environmental Remediation

              
	
                2.4(e)

              	
                Specific
                  Assumed Liabilities

              
	
                2.7

              	
                Allocation
                  of the Purchase Price

              
	
                5.4

              	
                Required
                  Consents

              
	
                5.5

              	
                Permits

              
	
                5.6

              	
                Governmental
                  Authorization (Sellers)

              
	
                5.8

              	
                Compliance
                  with Laws

              
	
                5.9

              	
                Environmental
                  Matters

              
	
                5.11(a)

              	
                Real
                  Property

              
	
                5.13(a)

              	
                Title
                  to the Purchased Assets other than Real Property

              
	
                5.14

              	
                Brokers
                  (Sellers)

              
	
                6.4

              	
                Governmental
                  Authorization (Purchaser)

              
	
                6.8

              	
                Brokers
                  (Purchaser)

              

      

    

     

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

     

    List
      of Exhibits

    
      

        
          	
                  A.

                	
                  List
                    of instruments and documents to be provided by Pfizer to
                    Purchaser

                
	
                  B.

                	
                  List
                    of instruments and documents to be provided by Purchaser to
                    Pfizer

                
	
                  C.

                	
                  Form
                    of Assignment and Assumption Agreement

                
	
                  D.

                	
                  Form
                    of Bill of Sale

                
	
                  E.

                	
                  Second
                    Amended and Restated Escrow Agreement

                
	
                  F.

                	
                  Form
                    of Access and Cooperation Agreement

                
	
                  G.

                	
                  Description
                    of Facility Parcel

                
	
                  H.

                	
                  Description
                    of Remaining Parcel

                

        

      

       

      
        
          
          

        

        
          v

          
            

          

        

        
          
          

        

      

       

    

    PURCHASE
      AND SALE AGREEMENT

     

    This
      Purchase and Sale Agreement is made and entered into as of this 4th day of
      August, 2006, among Pfizer Inc., a Delaware corporation (“Pfizer”),
      G.D.
      Searle LLC, a Delaware limited liability company, Augusta Biofuels, LLC, a
      Georgia limited liability company (“Purchaser”),
      and
      CoastalXethanol LLC, a Delaware limited liability company (“CoastalXethanol”).
      

     

    W
      I T N E
      S E T H:

     

    WHEREAS,
      Pfizer is the direct owner of all of the issued and outstanding membership
      interests in G.D. Searle LLC (“Selling
      LLC”);

     

    WHEREAS,
      Selling LLC owns all of the Purchased Assets (as defined below);
      and

     

    WHEREAS,
      the parties hereto desire that, at the Closing, Pfizer shall cause Selling
      LLC
      to, sell and transfer to Purchaser, and Purchaser shall purchase from Selling
      LLC, all of the Purchased Assets and assume all of the Assumed Liabilities
      (as
      defined below), upon the terms and conditions set forth herein.

     

    NOW,
      THEREFORE, in consideration of the foregoing and the representations,
      warranties, covenants and agreements contained herein, the parties hereby agree
      as follows:

     

    ARTICLE
      I

     

    DEFINITIONS
      AND TERMS

     

    Section
      1.1.  Definitions.
      As used
      in this Agreement, the following terms shall have the meanings set forth or
      as
      referenced below:

     

    “Access
      and Cooperation Agreement”
means
      the Access and Cooperation Agreement, by and among Pfizer, Purchaser, Selling
      LLC and CoastalXethanol substantially in the form attached hereto as
Exhibit
      F.

     

    “Action”
means
      any action, appeal, petition, plea, charge, complaint, claim, suit, demand,
      litigation, arbitration, mediation, hearing, inquiry, investigation or similar
      event, occurrence, or proceeding.

     

    “Affiliate”
means,
      with respect to any Person, any other Person that directly or indirectly,
      through one or more intermediaries, controls, is controlled by, or is under
      common control with, such Person at any time during the period for which the
      determination of affiliation is being made. For this definition, “control” (and
      its derivatives) means the possession, directly or indirectly, or as trustee
      or
      executor, of the power to direct or cause the direction of the management and
      policies of a Person, whether through ownership of voting Equity Interests,
      as
      trustee or executor, by Contract or credit arrangements or
      otherwise.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    “Agreement”
means
      this Purchase and Sale Agreement together with all Exhibits and Schedules
      hereto, as the same may be amended, restated, supplemented and/or otherwise
      modified from time to time in accordance with the terms hereof.

     

    “Applicable
      Remedial Action Standard”
means
      the least stringent, most cost-effective standard required by applicable
      Environmental Law consistent with the industrial/commercial use of the Facility
      as of the Closing Date, a standard pursuant to applicable Environmental Law
      acceptable to the relevant Governmental Authorities or having jurisdiction
      or
      regulatory authority over or with respect to the Remedial Action.

     

    “Assignment
      and Assumption Agreement”
means
      the Assignment and Assumption Agreement substantially in the form attached
      hereto as Exhibit
      C.

     

    “Assumed
      Contracts”
has
      the
      meaning set forth in Section 2.1(c).

     

    “Assumed
      Liabilities”
has
      the
      meaning set forth in Section 2.4.

     

    “Bill
      of Sale”
means
      the Bill of Sale substantially in the form attached hereto as Exhibit D,
      pursuant to which Sellers convey to Purchaser all of the Purchased Assets other
      than those conveyed under the Assignment and Assumption Agreement and the
      Deed.

     

    “Business
      Day”
means
      any day other than a Saturday, a Sunday or a day on which banks in New York,
      New
      York are authorized or obligated by Law or executive order to
      close.

     

    “Cash
      Equivalents”
means
      cash, checks, money orders, marketable securities, short-term instruments and
      other cash equivalents, funds in time and demand deposits or similar accounts,
      and any evidence of indebtedness issued or guaranteed by any Governmental
      Authority.

     

    “Closing”
means
      the closing of the transactions contemplated by this Agreement pursuant to
      the
      terms of this Agreement.

     

    “Closing
      Date”
has
      the
      meaning set forth in Section 3.1(b).

     

    “CoastalXethanol”
has
      the
      meaning set forth in the preamble. 

     

    “Collateral
      Source”
has
      the
      meaning set forth in Section 8.7.

     

    “Code”
means
      the Internal Revenue Code of 1986, as amended.

     

    “Confidentiality
      Agreement”
means
      the Confidentiality Agreement between Pfizer and an Affiliate of Purchaser
      dated
      March 16, 2006, as the same may be amended, restated and/or modified from time
      to time.

     

    “Contract”
means
      any contract, agreement, arrangement, commitment, letter of intent, memorandum
      of understanding, heads of agreement, promise, obligation, right, instrument,
      document, or other similar understanding, which in each case is in
      writing.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    “Deed”
means
      the limited warranty deed executed by Selling LLC which owns the Land in favor
      of Purchaser in recordable form in Georgia conveying the Land and the Facility
      (excluding the personal property).

     

    “E&O
      Agreement”
has
      the
      meaning set forth in Section 2.4(d).

     

    “Early
      Closing Credit”
has
      the
      meaning set forth in Section 2.6.

     

    “Environment”
means
      land surface or subsurface strata, waters (including, navigable ocean, stream,
      pond, reservoirs, drainage, basins, wetland, surface, ground, drinking and
      water
      vapor), sediments, ambient air (including indoor), noise, plant life, animal
      life, and all other environmental media or natural resources.

     

    “Environmental
      Law”
means
      any applicable Law and binding administrative or judicial interpretations
      thereof relating directly to (i) the Environment; or (ii) the exposure to,
      or
      the use, storage, recycling, treatment, generation, transportation, processing,
      handling, labeling, Release or disposal of Hazardous Materials, including
      without limitation, investigations, monitoring, analysis of remedial options,
      removal or remedial action, and abatement of such Releases. The term
      "Environmental Law" includes but is not limited to all statutes specifically
      described in the definition of “Hazardous Materials” below.

     

    “Environmental
      Liability”
means
      all Liabilities and Losses resulting from (i) failure to comply with any
      requirement of an Environmental Law; (ii) failure to obtain or comply with
      any
      required Environmental Permit; (iii) a Remedial Action; or (iv) harm or injury
      to any real property, to any Person, to public health, or to the Environment
      (other than Remedial Action) as a result of exposure to Hazardous
      Materials.

     

    “Environmental
      Permits”
means
      all permits, licenses, certificates, approvals or authorizations held or
      required to be held by a Seller with respect to the Facility and issued by
      a
      Governmental Authority pursuant to an Environmental Law.

     

    “Equipment”
has
      the
      meaning set forth in Section 2.1(b).

     

    “Escrow
      Agreement”
means
      that certain Second Amended and Restated Escrow Agreement dated as of August
      4,
      2006, by and among Purchaser, Pfizer and First American Title Insurance Company,
      as the same may be amended, restated and/or modified from time to time, as
      set
      forth on Exhibit
      E.

     

    “Excluded
      Assets”
has
      the
      meaning set forth in Section 2.3.

     

    “Excluded
      Environmental Liabilities”
means
      any Third Party Claims resulting in actions, judgments, awards, Liabilities,
      expenses, costs (including but not limited to costs of investigation,
      consultants, testing and reasonable attorney’s fees), imposed, incurred,
      suffered, sustained or arising, which result from, are attributable to, or
      are
      required in connection with or to perform or satisfy any:

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	(i)  	
              Remedial
                Action at the Facility Parcel of those matters appearing on Schedule
                A to
                the Access and Cooperation Agreement and related to the Hazardous
                Waste
                Facility Permit; 

            

    

     

    
      	(ii)  	
              Fines
                and penalties imposed by Governmental Authorities that result from
                the
                failure to comply with any requirement of Environmental Law prior
                to the
                Closing or after Closing with respect to Remedial Actions under (i)
                above,
                or the failure to obtain or comply with any required Environmental
                Permit
                prior to the Closing; 

            

    

     

    
      	(iii)  	
              Environmental
                Liabilities resulting from the off-site transportation, storage,
                disposal,
                treatment or recycling of Hazardous Materials generated by and transported
                off-site by or on behalf of the Facility prior to the Closing or
                by or on
                behalf of Seller after the Closing;
                and/or

            

    

     

    
      	(iv)  	
              Action
                required by Governmental Authorities in connection with the closure
                or
                termination of Environmental Permits issued to a Seller pursuant
                to
                Environmental Law and not assigned to and assumed by Purchaser
                hereunder.

            

    

     

    Notwithstanding
      anything to the contrary in this Agreement, capital, operations and maintenance
      and other costs of environmental-related compliance with Environmental Laws
      or
      Environmental Permits in the ordinary course of operating the Facility
      (including without limitation closure and post-closure expenditures incurred
      after the Closing Date) shall not be deemed to be Excluded Environmental
      Liabilities to the extent the same are not attributable or arise from the
      Excluded Environmental Liabilities set forth in clauses (i) through (iv)
      above.

     

    “Extension
      Period(s)”
has
      the
      meaning set forth in Section 3.1(a).

     

    “Facility”
means
      the real and personal property comprising the manufacturing plant located on
      the
      Facility Parcel, including, but not limited to the equipment, buildings,
      structures, improvements and fixtures that comprise the manufacturing plant,
      erected and located on the Facility Parcel.

     

    “Facility
      Parcel”
means
      the real property upon which the Facility is located as more particularly
      described on Exhibit
      G
      hereto,
      together with all easements, covenants and other rights appurtenant
      thereto.

     

    “Governmental
      Authority”
means
      any legislature, agency, bureau, branch, department, division, commission,
      court, tribunal, magistrate, justice, multi-national organization,
      quasi-governmental body, or other similar recognized organization or body of
      any
      federal, state, county, municipal, local, or foreign government or other similar
      recognized organization or body exercising similar powers or
      authority.

     

    “Governmental
      Authorizations”
means
      all licenses, permits, certificates and other authorizations and approvals
      under
      the applicable Laws of any Governmental Authority.

     

    “Governmental
      Order”
means
      any order, ruling, decision, verdict, decree, writ, subpoena, mandate, precept,
      command, directive, requirement, demand, consent, approval, award, judgment,
      injunction, or other similar determination or finding by, before, or under
      the
      supervision of any Governmental Authority, arbitrator, or mediator.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    “Hazardous
      Materials”
means
      all materials (including without limitation wastes, pollutants and contaminants)
      in such quantity or concentration as to be subject to regulation pursuant to
      Environmental Law, including oils, petroleum, and petroleum products, including,
      without limitation, the Comprehensive Environmental Response, Compensation,
      and
      Liability Act of 1980, as amended (42 U.S.C. §§ 9601 et seq.);
      the
      Hazardous Material Transportation Act, as amended (42 U.S.C §§ 1801 et seq.);
      the
      Resource Conservation and Recovery Act, as amended (42 U.S.C. §§ 6901
et seq.);
      the
      Toxic Substances Control Act, as amended (15 U.S.C. § 2601); the Clean Air Act,
      as amended (42 U.S.C. §§ 7401 et seq.);
      the
      Federal Water Pollution Control Act, as amended (33 U.S.C. §§ 1251 et seq.);
      or
      the regulations promulgated pursuant to said Laws.

     

    “Indemnified
      Party”
has
      the
      meaning set forth in Section 8.3(a).

     

    “Indemnifying
      Party”
has
      the
      meaning set forth in Section 8.3(a).

     

    “IRS”
means
      the Internal Revenue Service of the United States of America.

     

    “Knowledge
      of Pfizer”
means
      the actual knowledge of any of the individuals set forth on Schedule
      1.1(a)
      attached
      hereto.

     

    “Knowledge
      of Purchaser”
means
      the actual knowledge of any of the individuals set forth on Schedule
      1.1(b)
      attached
      hereto.

     

    “Land”
means
      the real property together with all easements, covenants and other rights
      appurtenant thereto, which is comprised of the Facility Parcel and the Remaining
      Parcel.

     

    “Law”
means
      any law, common law, statute, ordinance, rule, regulation, permit, order, code,
      injunction, judgment, decree or Governmental Order of any federal, state,
      foreign or local or other Governmental Authority.

     

    “Liabilities”
means
      any debts, liabilities and obligations, whether accrued or fixed, known or
      unknown, absolute or contingent, matured or unmatured or determined or
      determinable.

     

    “Lien”
means
      any lien, security interest, mortgage, deed to secure debt, charge or similar
      encumbrance.

     

    “Loss”
      or “Losses”
has
      the
      meaning set forth in Section 8.1(a).

     

    “Material
      Adverse Effect”
means
      any change, event, effect, development or combination of developments relating
      to, or involving, any Seller or any of the Purchased Assets that results in
      or
      would reasonably be expected to result in a material diminution in value of
      the
      Purchased Assets, taken as a whole, or the Facility Parcel, considered
      individually, other than any change, effect, event, circumstance, occurrence
      or
      state of facts relating to: (i) the economy or financial markets in general;
      (ii) conditions generally affecting the pharmaceutical industry; (iii) the
      transactions contemplated by this Agreement; (iv) actions required to be taken
      under any applicable Law; (v) acts of terrorism or war (whether or not
      threatened, pending or declared); (vi) the public announcement of this Agreement
      or the transactions contemplated hereby; and (vii) the acts or omissions of,
      or
      circumstances affecting, Purchaser or any of its Affiliates.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    “Permits”
has
      the
      meaning set forth in Section 5.5. 

     

    “Permitted
      Encumbrances”
means
      (i) all easements or other restrictions set forth in the E&O Agreement; (ii)
      such easements, rights of way, restrictions and other instruments which are
      recorded in the public records where the Real Property is located as of the
      date
      of this Agreement; (iii), restrictions, or engineering or institutional
      controls, imposed by Governmental Order, required by Governmental Authorities,
      or in accordance with Environmental Law; or (iv) Liens for Taxes for the current
      year not yet due and payable.

     

    “Person”
means
      any individual, firm, corporation, partnership, limited liability company,
      trust, joint venture, Governmental Authority or other entity or
      organization.

     

    “Pfizer”
has
      the
      meaning set forth in the preamble hereof.

     

    “Proceeding”
has
      the
      meaning set forth in Section 10.11(b).

     

    “Purchased
      Assets”
has
      the
      meaning set forth in Section 2.1, it being understood that the Purchased Assets
      do not include the Excluded Assets.

     

    “Purchase
      Price”
has
      the
      meaning set forth in Section 2.6.

     

    “Purchaser”
has
      the
      meaning set forth in the preamble.

     

    “Purchaser
      Indemnified Parties”
has
      the
      meaning set forth in Section 8.1.

     

    “Purchaser’s
      Title Company”
has
      the
      meaning set forth in Section 4.2(d).

     

    “Purchasing
      Party”
or
      “Purchasing
      Parties”
has
      the
      meaning set forth in Section 6.1.

     

    “Real
      Property”
has
      the
      meaning set forth in Section 5.11(a).

     

    “Release”
means
      any spilling, leaking, pumping, pouring, emitting, emptying, injecting,
      depositing, disposing, discharging, dispersal, escaping, dumping or leaching
      into the Environment, including surface water, soil, sediments or groundwater
      (including the abandonment or discarding of barrels, containers, and other
      receptacles containing Hazardous Materials) or as otherwise defined under
      Environmental Law.

     

    “Remaining Parcel”
means
      the real property as more particularly described on Exhibit
      H hereto,
      together with all easements, covenants and other rights appurtenant thereto,
      that is being conveyed pursuant to the transactions contemplated hereby in
      addition to the Facility Parcel.

     

    “Remedial
      Action”
means
      action required by Governmental Order or Governmental Authority pursuant to
      Environmental Law, to address contamination of the Environment in response
      to a
      Release of Hazardous Materials, including associated action taken to
      investigate, monitor, assess and evaluate the extent and severity of any such
      Release; action taken to address any such Release; post-remediation monitoring
      of any such Release; and the preparation of all reports, studies, analyses
      or
      other documents relating to the above. “Remedial
      Action”
also
      shall refer to any judicial, administrative or other proceeding relating to
      any
      of the above, including the negotiation and execution of judicial or
      administrative consent decrees; responding to information requests by any
      Governmental Authority; or defending claims brought by any Governmental
      Authority or any other Person, whether such claims are equitable or legal in
      nature, relating to the cleanup of the environment, including soil, surface
      water, groundwater, and sediments in response to a Release of Hazardous
      Materials and associated actions. “Remedial
      Action”
shall
      not include (i) the capital, operation and maintenance costs incurred by
      Purchaser to continue to operate the Facility, fixtures and Equipment which
      as
      of the Closing Date are being operated by Sellers in compliance with
      Environmental Laws, provided that such costs are not Sellers’ Retained
      Liabilities; or (ii) the closure and post-closure expenditures related to
      Purchaser’s closure of such Facility, fixtures and Equipment.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    “Required
      Governmental Report”
means
      any written notice, report or other filing by a party that is required by a
      Governmental Authority pursuant to an Environmental Law. 

     

    “Required
      Consents”
has
      the
      meaning set forth in Section 5.4.

     

    “Retained
      Liabilities”
has
      the
      meaning set forth in Section 2.5.

     

    “Retained
      Tax Liabilities”
has
      the
      meaning set forth in Section 2.5(e).

     

    “Schedules”
means
      the disclosure schedules delivered with this Agreement, as amended and/or
      supplemented as provided herein.

     

    “Seller
      Indemnified Parties”
has
      the
      meaning set forth in Section 8.2.

     

    “Sellers”
means
      Pfizer and Selling LLC.

     

    “Selling
      LLC”
has
      the
      meaning set forth in the recitals.

     

    “Straddle
      Period”
means
      any Tax period that begins before and ends after the Closing Date.

     

    “Subsidiary”
means
      an entity as to which Pfizer or Purchaser or any other relevant entity, as
      the
      case may be, owns directly or indirectly 50% or more of the voting power or
      other similar interests.

     

    “Tax”
or
      “Taxes”
means
      all taxes, charges, duties, fees, levies or other assessments, including but
      not
      limited to, income, excise, property, sales, value added, profits, license,
      withholding (with respect to compensation or otherwise), payroll, employment,
      net worth, capital gains, transfer, stamp, social security, environmental,
      occupation and franchise taxes, imposed by any Governmental Authority, and
      including any interest, penalties and additions attributable
      thereto.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    “Tax
      Claim”
has
      the
      meaning set forth in Section 7.4(f)(i).

     

    “Tax
      Return”
means
      any return, report, declaration, information return, statement or other document
      filed or required to be filed with any Governmental Authority, in connection
      with the determination, assessment or collection of any Tax or the
      administration of any Laws relating to any Tax including any amendment
      thereto.

     

    “Third
      Party Claim”
has
      the
      meaning set forth in Section 8.4(a).

     

    “Transaction
      Agreements”
means
      this Agreement and the agreements, documents and instruments listed on
Exhibit
      A
      and
Exhibit
      B.

     

    Section
      1.2.  Other
      Definitional Provisions.
      

     

    (a)  The
      words
“hereof”,
      “herein”,
      “hereto”
and
      “hereunder”
and
      words of similar import, when used in this Agreement, shall refer to this
      Agreement as a whole and not to any particular provision of this
      Agreement.

     

    (b)  The
      definitions contained in this Agreement are applicable to the singular as well
      as the plural forms of such terms.

     

    (c)  The
      term
“including”
shall
      mean “including,
      without limitation”
and
      the
      words “included”
and
      “include”
shall
      have corresponding meanings.

     

    (d)  When
      a
      reference is made in this Agreement to an Article, a Section, Exhibit or
      Schedule, such reference shall be to an Article of, a Section of, or an Exhibit
      or Schedule to, this Agreement unless otherwise indicated.

     

    (e)  The
      terms
“Dollars”
and
      “US$”
means
      United States dollars.

     

    ARTICLE
      II

     

    PURCHASE
      AND SALE

     

    Section
      2.1.  Purchase
      and Sale of Assets of the Facility.
      Upon
      the terms and subject to the conditions set forth herein and for the
      consideration set forth in Section 2.6 at the Closing, Sellers shall sell,
      convey, assign and transfer to Purchaser, and Purchaser shall purchase, acquire
      and accept from Sellers, free and clear of all Liens, other than Permitted
      Encumbrances, all of Sellers’ title and interest that Sellers possess and have
      the right to transfer in the following assets, properties and rights owned
      or
      held by Sellers and their Affiliates on the Closing Date (collectively, the
      “Purchased
      Assets”):

     

    (a)  the
      Land
      and the Facility;

     

    (b)  the
      furniture, equipment, machinery, supplies, spare parts, tools and other tangible
      personal property located on the Facility Parcel as of the date hereof (the
      “Equipment”),
      including, but not limited to, those listed on Schedule
      2.1(b),
      and
      subject to Section 2.2 and any limitations on Purchaser’s obligation to assume
      Liabilities of a Seller as set forth in Sections 2.4 and 2.5, all leases (to
      the
      extent assignable or consent to assignment has been obtained) relating to such
      Equipment so leased in connection with the operation of the Facility as
      previously operated by Selling LLC;

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (c)  subject
      to Section 2.2 and any limitations on Purchaser’s obligation to assume
      Liabilities of a Seller as set forth in Sections 2.4 and 2.5, all Contracts
      set
      forth on Schedule
      2.1(c)
      (the
“Assumed
      Contracts”);
      

     

    (d)  subject
      to Section 2.2 and any limitations on Purchaser’s obligation to assume
      Liabilities of a Seller as set forth below in Sections 2.4 and 2.5, all
      transferable Governmental Authorizations, including Environmental Permits,
      owned, utilized, issued or licensed (subject to the terms of such licenses)
      by
      or to Selling LLC that are necessary for the lawful ownership or use of the
      Purchased Assets, which Governmental Authorizations are set forth on
Schedule
      2.1(d)
      (the
“Assumed
      Governmental Authorizations”);
      

     

    (e)  all
      transferable rights of any Seller under or pursuant to all express or implied
      warranties, representations and guarantees against suppliers, manufacturers
      and
      contractors to the extent affecting or related to the Purchased
      Assets;

     

    (f)  all
      records relating solely to the maintenance, improvements, modification and
      calibration of the Equipment; 

     

    (g)  (i)
      the
      databases and software programs, source codes and user manuals owned, used,
      leased by or licensed to a Seller or customized for use at the Facility in
      each
      case as of the date hereof (in the case of leases or licenses, to the extent
      that they are assignable or consent to assignment has been obtained); and
(ii)
      the
      computer hardware used solely at the Facility; provided,
      however,
      that
      the databases containing proprietary data, colleague records, manufacturing
      data
      and other like items and the software programs related to process operating
      recipes, routines or other proprietary elements of the system control shall
      be
      excluded;

     

    (h)  intellectual
      property relating to the know-how used in the operation of the Equipment;

     

    (i)  actions,
      deposits, prepayments, refunds, causes of action, rights of recovery, rights
      of
      set off, and rights of recoupment of any kind or nature (including, without
      limitation, any such item relating to Taxes) relating to the Purchased Assets
      or
      the Assumed Liabilities; and

     

    (j)  all
      other
      tangible assets used solely in connection with the Facility and located at
      the
      Facility.

     

    Section
      2.2.  Consents.
      

     

    (a)  There
      shall be excluded from the transactions contemplated by this Agreement any
      Contract, permit, license or other asset which is included in the definition
      of
      Purchased Assets above but is not assignable or transferable without the prior
      consent of any Person, other than solely by Sellers, or any of their Affiliates
      or Purchaser or any of its Affiliates (hereinafter, any such Contracts, permits,
      licenses or other assets shall be referred to as the “Consent-required
      Items”),
      to
      the extent that such consent shall not have been given prior to the Closing
      despite the exercise of commercially reasonable efforts by each of Purchaser
      and
      Sellers; provided,
      however,
      that
      each of Sellers and Purchaser shall have the continuing obligation after the
      Closing to use its commercially reasonable efforts (but without any payment
      of
      money or commencement of litigation or offer or grant of any accommodation
      (financial or otherwise) by Sellers, Purchaser or any of their respective
      Affiliates) to obtain all necessary consents to, or approvals for, and make
      any
      filings for, the assignment thereof and, upon obtaining the requisite third
      party consents thereto or approvals therefore or making of required filings
      or
      the expiration or termination of any applicable waiting periods, such Contract,
      permit, license, or asset, if otherwise includable in the Purchased Assets,
      shall be transferred and assigned to Purchaser hereunder. All Consent-required
      Items are listed on Schedule
      2.2(a).
      

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (b)  With
      respect to any Contract, permit, license or asset that is not included in the
      Purchased Assets or assigned to, and assumed by, Purchaser at the Closing by
      reason of Section 2.2(a), after the Closing and until any requisite consent
      is
      obtained and the foregoing transferred and assigned to, and assumed by,
      Purchaser, the parties hereto shall cooperate with each other, upon written
      request, in endeavoring to obtain for Purchaser, at no cost to Sellers or any
      of
      its Affiliates, to the extent practicable, an arrangement which Purchaser or
      Sellers reasonably shall desire designed to provide to Purchaser the benefits
      thereof (and provide that Purchaser assumes the obligations thereof) in some
      other manner.

     

    (c)  Purchaser
      acknowledges that certain consents to the transactions contemplated by this
      Agreement may be required from parties to Contracts, licenses or rights and
      that
      such consents have not been and may not be obtained. Purchaser agrees that,
      provided that Sellers have complied with their obligations in Sections 2.2(a)
      and (b), neither Pfizer nor any of its Affiliates shall have any Liability
      whatsoever arising out of or relating to the failure to obtain any consents
      that
      may have been or may be required in connection with the transactions
      contemplated by this Agreement or because of the default under or acceleration
      or termination of any contract, agreement, commitment, license or right, as
      a
      result thereof. Purchaser further agrees that, so long as Sellers have exercised
      and continue to exercise commercially reasonable efforts to obtain consents
      to
      the Consent-required Items as required under Sections 2.2(a) and (b), no
      representation, warranty or covenant of Pfizer contained herein shall be
      breached or deemed breached, and no condition to Purchaser’s obligations to
      close the transactions contemplated by this Agreement shall be deemed not
      satisfied as a result of (i)
      the
      failure to obtain any such consent, (ii)
      any such
      default, acceleration or termination or (iii)
      any
      Action, commenced or threatened by or on behalf of any Person arising out of
      or
      relating to the failure to obtain any such consent or any such default,
      acceleration or termination.

     

    (d)  All
      contracts, permits, licenses or other assets assigned to and assumed by
      Purchaser pursuant to Section 2.1 or 2.2 subsequent to the Closing shall be
      referred to as the “Post-closing
      Assigned Contracts”.

     

    Section
      2.3.  Excluded
      Assets.

     

    Notwithstanding
      any other provision in this Agreement, Sellers and/or any Affiliate thereof
      shall retain the following (the “Excluded
      Assets”):

     

    (a)  all
      Cash
      Equivalents;

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (b)  all
      accounts and notes receivable;

     

    (c)  all
      intercompany receivables and intercompany Contracts;

     

    (d)  all
      Tax
      losses, Tax loss carry forwards and rights to receive refunds, credits and
      credit carry forwards with respect to any and all Taxes, to the extent
      attributable to a taxable period (or portion thereof) ending on or prior to
      the
      Closing Date including, without limitation, interest thereon, whether or not
      the
      foregoing is derived from the operation of the Facility;

     

    (e)  the
      corporate books and records of Selling LLC or Pfizer and the general account
      and
      books of original entry that comprise Selling LLC’s permanent accounting or tax
      records;

     

    (f)  all
      current and prior insurance policies and all rights of any nature with respect
      thereto, including all insurance recoveries thereunder and rights to assert
      claims with respect to any such insurance recoveries;

     

    (g)  all
      rights, title and interest in and to any Pfizer products and in to all
      intellectual property (including proprietary software, intellectual property
      customized for a Seller and know-how proprietary to Pfizer, except as set forth
      in Section 2.1(h)) relating to Pfizer’s manufacturing operations as set forth on
Schedule
      2.3(g);

     

    (h)  the
      “Pfizer,”
      “Warner-Lambert,”
      “Parke-Davis,”
      “Searle,”
and
      “Pharmacia”
names
      and logos and use of the foregoing names and logos and any derivative
      marks;

     

    (i)  the
      assets of any plan for the benefit of any employee or former employee of Pfizer
      or its Affiliates; 

     

    (j)  all
      inventories including, but not limited to, inventories which are owned by third
      party customers provided on consignment to any Seller under any tolling
      Contracts, other than any inventories including assets to be transferred under
      Section 2.1(b); 

     

    (k)  the
      non-transferable permits and licenses listed on Schedule
      2.3(k);

     

    (l)  the
      assets that are shared with other divisions of Pfizer or subject to a shared
      or
      global license, such as IT equipment or software packages;

     

    (m)  any
      property owned by any party other than a Seller or any of its Affiliates which
      is used in connection with shared services under the E&O
      Agreement;

     

    (n)  any
      property of Pfizer or any of its Affiliates located at the Facility used in
      connection with its environmental remediation activities which assets are
      located at or on the Real Property as of the date hereof and are listed on
      Schedule
      2.3(n);

     

    (o)  the
      permits and licenses necessary to allow Pfizer to fully comply with any of
      its
      outstanding and continuing environmental obligations, including but not limited
      to Retained Liabilities;

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (p)  
      all
      right, title and interest to any products manufactured by Pfizer or any of
      its
      Affiliates located at the Facility and to all intellectual property relating
      to
      the manufacturing operations conducted at the Facility;

     

    (q)  any
      attorney
      work product, attorney-client communications and other items protected by
      privilege and any documents that were received from third parties in connection
      with their proposed acquisition of the Purchased Assets or that were prepared
      by
      Pfizer or its Affiliates in connection therewith; and

     

    (r)  all
      assets, properties or rights of Sellers, other than the Purchased
      Assets.

     

    Section
      2.4.  Assumption
      of Certain Liabilities.

     

    Upon
      the
      terms and subject to the conditions of this Agreement, Purchaser agrees,
      effective at the Closing, to assume only the following Liabilities related
      to
      the Facility (collectively, the “Assumed
      Liabilities”):

     

    (a)  except
      as
      provided in Section 2.5, all Liabilities for any Actions commenced, or any
      claims made, after the Closing relating to the ownership of the Purchased Assets
      after the Closing;

     

    (b)  all
      Liabilities arising after the Closing under any Assumed Contracts or Assumed
      Governmental Authorizations, and all Liabilities arising under each of the
      Post-closing Assumed Contracts after, in each case, the time such Post-closing
      Assumed Contract was assigned to or assumed by Purchaser; 

     

    (c)  all
      Environmental Liabilities, whether arising prior to or after the Closing, except
      for the Excluded Environmental Liabilities; 

     

    (d)  all
      Liabilities related to the Facility arising after the Closing under that certain
      Easement and Operating Agreement dated as of May 19, 2000, as amended by
      Amendment No. 1 thereto, and as may be further amended or modified pursuant
      to
      the terms thereof (the “E&O
      Agreement”)
      after
      the Closing; 

     

    (e)  all
      Liabilities set forth in Schedule
      2.4(e);
      and

     

    (f)  except
      as
      provided in Section 2.5, all other Liabilities arising after the Closing
      relating to the physical condition of the Purchased Assets as of the
      Closing.

     

    Section
      2.5.  Retained
      Liabilities.
      

     

    Notwithstanding
      any other provision in this Agreement, Sellers shall retain and be responsible
      for, the following (collectively, the “Retained
      Liabilities”):

     

    (a)  all
      Liabilities related to the ownership or operation of the Facility prior to
      the
      Closing, other than Excluded Environmental Liabilities and the Environmental
      Liabilities assumed by Purchaser under Section 2.4(c);

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (b)  all
      Excluded Environmental Liabilities;

     

    (c)  all
      Liabilities related to employee benefits or compensation arrangements with
      respect to any employee or former employee of Pfizer or any of its
      Affiliates;

     

    (d)  all
      Liabilities for which a Seller expressly has responsibility pursuant to the
      terms of this Agreement;

     

    (e)  all
      Liabilities for Taxes of Sellers or taxes related to, imposed on, or arising
      from the Facility or the Purchased Assets for any taxable period (or portion
      thereof) on or prior to the Closing, except for (x) Taxes attributable to
      actions taken or failures to act after the Closing by Purchaser, any of its
      Affiliates or any transferee of Purchaser or any of its Affiliates (other than
      any such action expressly required or otherwise expressly contemplated by this
      Agreement or with the written consent of Sellers), (y) as otherwise provided
      in
      Section 10.9, or (z) real and personal property Taxes for the calendar year
      of
      the Closing attributable to the portion of the year during which the respective
      real or personal property of the Facility is owned by Purchaser, its Affiliates
      or any transferee of Purchaser or its Affiliates (the “Retained
      Tax Liabilities”)
      provided that in the case of any real or personal property Tax for any Straddle
      Period, (A) the amount of such Tax attributable to the portion of such Straddle
      Period ending on or prior to the Closing Date shall be the amount of such Tax
      for the entire Straddle Period multiplied by a fraction, the numerator of which
      is the number of days in such Straddle Period prior to and including the Closing
      Date and the denominator of which is the total number of days in the entire
      Straddle Period and (B) the amount of such Tax attributable to the portion
      of
      such Straddle Period beginning after the Closing Date shall be the amount of
      such Tax for the entire Straddle Period minus the amount of such Tax determined
      under clause (A) of this proviso and that in the case of all other Taxes, such
      Taxes shall be apportioned on the basis of an interim closing of the books
      at
      the end of the Closing Date; 

     

    (f)  all
      Liabilities resulting from a claim by a third party in respect of injury or
      damage to property allegedly due and owing as a result of the ownership or
      previous or current operation, if any, of the Purchased Assets or the Facility
      prior to the Closing, including, without limitation, warranty obligations and
      irrespective of the legal theory asserted; 

     

    (g)  all
      Liabilities to the extent relating to the Excluded Assets;

     

    (h)  all
      Liabilities arising before the Closing under that certain E&O Agreement;

     

    (i)  to
      the
      extent any equipment leased to Pfizer under the Supply Agreement between Pfizer
      and The BOC Group, Inc. dated as of October 1, 2003 and/or the Master
      Agreement between Pharmacia Corp. (Pfizer) and IOS Capital, Inc., a wholly-owned
      subsidiary of IKON Office Solutions, Inc. dated December 22, 2000
      is
      located at the Purchased Assets following the Closing, all Liabilities arising
      in connection with such contracts and all Liabilities arising from the
      extraction of such equipment following the Closing; and

     

    (j)  all
      Liabilities arising before the Closing under any Assumed Contracts or Assumed
      Governmental Authorizations as set forth in Schedule
      2.1(d),
      and all
      Liabilities arising under each of the Post-closing Assumed Contracts before,
      in
      each case, the time such Post-closing Assumed Contract was assigned to or
      assumed by Purchaser.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    Section
      2.6.  Purchase
      Price.
      In
      consideration of the sale and transfer of the Purchased Assets, Purchaser shall
      pay to Pfizer, the amount of Eight Million Four Hundred Thousand Dollars
      (US$8,400,000) (the “Purchase
      Price”).
      If
      the Closing occurs on or before August 22, 2006, Pfizer shall provide Purchaser
      with a credit against the Purchase Price in the amount of $200,000 (the
“Early
      Closing Credit”),
      which
      amount shall be used by Purchaser in accordance with Section 10.9. The Purchase
      Price, as the same may be adjusted, shall be payable as follows:

     

    (a)  Two
      Hundred Thousand Dollars (US$200,000) paid to Pfizer as provided in Section
      4(a)
      of the Escrow Agreement, including any interest thereon; and 

     

    (b)  The
      remaining balance of the Purchase Price shall be paid in immediately available
      funds, by wire transfer in accordance with written instructions given by Pfizer
      to Purchaser not less than two (2) Business Days prior to the Closing, which
      consideration shall be allocated as provided in Section 2.7.

     

    Section
      2.7.  Allocation
      of the Purchase Price.
      The
      Purchase Price and the amount of the Assumed Liabilities that are deemed assumed
      for United States federal income tax purposes shall be allocated among the
      Purchased Assets for Tax purposes in the manner set forth in Schedule
      2.7
      hereto,
      which allocation will be consistent with Section 1060 of the Internal Revenue
      Code. Purchaser and Sellers (i) shall execute and file all Tax Returns and
      Income Tax Returns and prepare all returns and other instruments in a manner
      consistent with the allocation determined pursuant to this Section 2.7, and
      (ii)
      shall cooperate with each other in a timely filing, consistent with such
      allocation, of Form 8594 with the IRS; provided, however, that nothing contained
      herein shall prevent Purchaser or Sellers from settling any proposed deficiency
      or adjustment by any taxing authority based upon or arising out of the
      allocation that is made pursuant to this Section 2.7, and neither Purchaser
      nor
      Sellers shall be required to litigate before any court, any proposed deficiency
      or adjustment by any taxing authority challenging such allocation. 

     

    Section
      2.8.  Risk
      of Loss.
      Until
      the Closing, any loss of or damage to the Purchased Assets from fire, casualty
      or any other occurrence shall be the sole responsibility of Pfizer and/or its
      Affiliates, as the case may be. At the Closing, title to the Purchased Assets
      shall be transferred to Purchaser, and Purchaser shall thereafter bear all
      risks
      of loss associated with the Purchased Assets. 

     

    Section
      2.9.  Further
      Assurances.
      At and
      after the Closing, and without further consideration therefor, (i) Sellers
      shall
      execute and deliver to Purchaser such further instruments and certificates
      of
      conveyance and transfer as Purchaser may reasonably request in order to more
      effectively convey and transfer the Purchased Assets to Purchaser and to put
      Purchaser in possession and control of the Purchased Assets, or for aiding,
      assisting, collecting and reducing to possession any of the Purchased Assets
      and
      exercising rights with respect thereto, and (ii) Purchaser shall execute and
      deliver to Sellers such further instruments and certificates of assumption,
      novation and release as Sellers may reasonably request in order to effectively
      make Purchaser responsible for all Assumed Liabilities and release Seller
      therefrom to the fullest extent permitted under applicable Law. 

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      III

    

    CLOSING

    Section
      3.1.  Closing.
      

     

    (a)  As
      of the
      date hereof, Pfizer and Purchaser estimate that the Closing Date shall occur
      on
      August 22, 2006, subject to the receipt of required consents and approvals;
      provided,
      however,
      that
      Purchaser shall have the option upon five (5) Business Days written notice
      to
      extend the Closing Date contemplated by this Section 3.1 for two (2) fifteen
      day
      periods (each, an “Extension
      Period”)
      upon
      the payment of Fifteen Thousand Dollars (US$15,000) to Pfizer prior to the
      commencement of such Extension Period.

     

    (b)  (i)
      The
      Closing shall take place at the offices of Purchaser’s closing attorney, Ellis,
      Painter Ratterree & Adams LLP, 2 E. Bryan Street, Savannah, Georgia 31401,
      at 10:00 A.M., Eastern time, on such date as is reasonably requested by
      Purchaser and is reasonably acceptable to Pfizer; provided,
      however,
      that
      without the agreement of Pfizer and CoastalXethanol, the Closing shall not
      occur
      later than the date specified in Section 9.1(b). The date on which the Closing
      occurs is called the “Closing
      Date.”
The
      Closing shall be deemed to occur and be effective as of 11:59 P.M., New York
      City time, on the Closing Date.

     

    (ii)
      In
      addition to the all of the obligations set forth in Section 7.3, neither
      party shall take any actions that would be reasonably likely to frustrate the
      consummation of the transactions contemplated hereby, including, but not limited
      to, actions that would be reasonably likely to frustrate the satisfaction of
      the
      conditions to Closing set forth in Article IV, resulting in the delay of the
      Closing.

     

    (c)  At
      the
      Closing, Sellers shall deliver, or cause to be delivered, to Purchaser the
      instruments and documents set forth in Exhibit
      A
      hereto,
      in each case, in a form reasonably acceptable to Purchaser.

     

    (d)  At
      the
      Closing, Purchaser shall deliver, or cause to be delivered, to Pfizer as agent
      for Sellers, the following: (i)
      the
      Purchase Price by wire transfer in immediately available funds to one or more
      accounts specified in writing by Pfizer at least two (2) Business Days prior
      to
      the Closing Date as applicable, as provided in Section 2.6 of this Agreement
      and
(ii)
      the
      instruments and documents set forth in Exhibit
      B
      hereto,
      in each case, in a form reasonably acceptable to Pfizer.

     

    ARTICLE
      IV

     

    CONDITIONS
      TO CLOSING

     

    Section
      4.1.  Conditions
      to the Obligations
      of Purchaser and Sellers.
      

     

    The
      respective obligations of each of the parties to consummate the transactions
      contemplated by this Agreement shall be subject to the satisfaction of the
      following conditions precedent:

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (a)  There
      shall not (i)
      be in
      effect any Law or Governmental Order that makes illegal or enjoins, prevents
      or
      modifies in any respect the consummation of the transactions contemplated by
      this Agreement or (ii)
      have
      been commenced and be continuing, or threatened in writing, any action or
      proceeding by any Governmental Authority which seeks to prevent or enjoin in
      any
      respect the transactions contemplated by this Agreement; and

     

    (b)  Any
      approval or action of any Governmental Authority or any other Person that is
      necessary to lawfully consummate the transactions contemplated hereby shall
      have
      been obtained or taken, and any investigation opened or otherwise commenced
      by
      any Governmental Authority shall have been closed. 

     

    Section
      4.2.  Conditions
      to the Obligations of Purchaser.
      The
      obligation of Purchaser to consummate the transactions contemplated by this
      Agreement shall be subject to the satisfaction of the following conditions
      precedent:

     

    (a)  Each
      Seller shall have performed in all material respects its agreements and
      obligations contained in this Agreement required to be performed by it at or
      before the Closing;

     

    (b)   The
      representations and warranties of each Seller contained in this Agreement,
      excluding any amendments or supplements to the Schedules after the date hereof
      and disregarding all qualifications and exceptions contained therein relating
      to
      materiality or Material Adverse Effect, shall be true and correct both as of
      the
      date of this Agreement and also as of the Closing Date, except with respect
      to
      any such representation or warranty that speaks of or as or is limited to an
      earlier date which shall be true and correct as of such date and except further
      with regard to the Closing Date only where such failure of such representation
      or warranty be true and correct, individually or in the aggregate, would not
      have, be, or result in a Material Adverse Effect; 

     

    (c)  Sellers
      shall have made, or caused to be made, delivery to the Purchaser of the items
      required by Section 3.1(c); 

     

    (d)  Purchaser
      shall have received from one or more title companies recognized in the State
      of
      Georgia, selected by Purchaser, and reasonably acceptable to Pfizer
      (“Purchaser’s
      Title Company”)
      standard 1992 ALTA Form B owner’s (with respect to the Real Property) title
      insurance policies obtained at Purchaser’s expense. Such policy shall:
(i)
      be dated
      as of the Closing Date, (ii)
      be
      accompanied by copies of all documents referenced as exceptions to title and
      (iii)
      insure
      good, valid and marketable fee simple title to the Real Property in Purchaser
      subject only to Permitted Encumbrances. Pfizer agrees to execute such reasonable
      affidavits and other documents, consistent with local practice, as are necessary
      to induce Purchaser’s title company to issue the policies, endorsements and
      affirmative coverages in the manner set forth above; and

     

    (e)  There
      shall not have been any change in the condition of the Purchased Assets, except
      such change or changes in condition that have not had a Material Adverse
      Effect.

     

    If
      any of
      Sellers’ representations and warranties is not true and correct as of the date
      hereof or at Closing or Sellers have not performed any of their covenants which
      are required under this Agreement to be performed on or before Closing and
      Purchaser nevertheless is not entitled to terminate this Agreement pursuant
      to
      Section 9.1(e) and must proceed to close pursuant to the terms of this Agreement
      and the transactions contemplated hereby close on or before August 22, 2006,
      then, notwithstanding anything to the contrary in this Agreement, Purchaser’s
      closing in such instance shall not limit, or operate as a waiver of, Purchaser’s
      right to indemnification pursuant to Article VIII after the Closing for breaches
      of Sellers’ representations, warranties and covenants. If (i) Purchaser is
      entitled to terminate this Agreement pursuant to Section 9.1(e) but does not
      and
      proceeds to close the transactions contemplated hereby and/or (ii) the parties
      hereto close the transactions contemplated hereby after August 22, 2006, then,
      notwithstanding anything to the contrary in this Agreement, Purchaser will
      be
      deemed to have waived its right to indemnification pursuant to Article VIII
      after the Closing for only those matters with respect to which Purchaser was
      entitled to terminate this Agreement pursuant to Section 9.1(e).

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    Section
      4.3.  Conditions
      to the Obligations of Sellers.
      

     

    The
      obligation of Sellers to consummate the transactions contemplated by this
      Agreement shall be subject to the satisfaction of the following conditions
      precedent:

     

    (a)  Each
      Purchasing Party shall have performed in all material respects its agreements
      and obligations contained in this Agreement required to be performed by it
      at or
      before the Closing;

     

    (b)  The
      representations and warranties of each Purchasing Party contained in this
      Agreement, excluding any amendments or supplements to the Schedules after the
      date hereof and disregarding all qualifications and exceptions contained therein
      relating to materiality or Material Adverse Effect, shall be true and correct
      both as of the date of this Agreement, except with respect to any such
      representation or warranty that speaks of or as or is limited to an earlier
      date
      which shall be true and correct as of such date and except further with regard
      to the Closing Date only where such failure of such representation or warranty
      be true and correct, individually or in the aggregate, would not have or result
      in a material adverse effect on the ability of the Purchasing Parties to fulfill
      their respective obligations under this Agreement and/or any of the other
      Transaction Documents;

     

    (c)  The
      Purchasing Parties shall have made, or caused to be made, delivery to Sellers
      of
      the items required by Section 3.1(d); and

     

    (d)  There
      shall not have occurred any change, event, effect, development or combination
      of
      developments relating to, or involving, any Purchasing Party that could
      reasonably be expected to adversely affect its ability to fulfill its
      obligations under the E&O Agreement and the Access and/or Cooperation
      Agreement.

     

    ARTICLE
      V

     

    REPRESENTATIONS
      AND WARRANTIES OF SELLERS

     

    Each
      Seller hereby makes, jointly and severally, to the Purchasing Parties the
      representations and warranties set forth in this Article V as of the date of
      this Agreement and further agrees that, if the Closing occurs, then at the
      time
      of the Closing such representations and warranties will be deemed to be remade
      by Sellers as of the time of the Closing.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    Section
      5.1.  Organization.
      Pfizer
      is a corporation duly organized, validly existing and in good standing under
      the
      Laws of the State of Delaware. Selling LLC is a limited liability company duly
      organized, validly existing and in good standing under the Laws of the State
      of
      Delaware and has all limited liability company power and authority to own,
      operate or lease the assets and properties now owned, operated or leased by
      it.

     

    Section
      5.2.  Authority;
      Binding Effect.
      

     

    (a)  Each
      Seller has all requisite corporate power and authority to execute and deliver
      and perform each Transaction Agreement to which it is a party. The execution
      and
      delivery and performance by each Seller of each Transaction Agreement to which
      it is a party has been or will have been at the Closing, duly authorized by
      all
      requisite corporate action on the part of such Seller.

     

    (b)  This
      Agreement has been duly executed and constitutes and, when executed and
      delivered in accordance with its terms, each other Transaction Agreement to
      which each Seller is a party will constitute, a valid and binding obligation
      of
      each such Seller, enforceable against each such Seller in accordance with its
      terms, except as enforcement may be limited by bankruptcy, insolvency,
      reorganization, moratorium or similar laws affecting creditors’ rights generally
      or by general principles of equity (regardless of whether enforcement is sought
      in a proceeding in equity or law).

     

    Section
      5.3.  Non-Contravention.
      The
      execution, delivery and performance by each Seller of each Transaction Agreement
      to which it is a party, and the consummation of the transactions contemplated
      hereby and thereby, do not and will not (a) violate any provision of the
      certificate of incorporation, bylaws or other comparable organizational
      documents of any Seller; (b) subject to obtaining the consents or other actions
      referred to in Schedule
      5.4,
      result
      in a breach of, or default under (whether after the giving of notice or the
      lapse of time or both), or right to accelerate with respect to, or result in
      the
      termination of any Contract to which any Seller is a party or is subject
      relating to a Purchased Asset, or result in the creation of any Lien on any
      Purchased Asset; or (c) assuming compliance with the matters set forth in
      Sections 5.4 and 6.4, violate any Law to which any Seller is subject with
      respect to the Facility, except, with respect to clauses (b) and (c) above,
      for
      any breaches, defaults, terminations as would not reasonably be expected to
      have, individually or in the aggregate, a Material Adverse Effect.

     

    Section
      5.4.  Required
      Consents.
      Schedule
      5.4
      sets
      forth each Contract binding upon Sellers, other than any agreement relating
      to
      any Permit relating to the Purchased Assets (a) requiring a consent or other
      action by any Person necessary for the consummation of the transactions
      contemplated hereby or the assignment of such Contract to Purchaser or (b)
      pursuant to which obligations would be accelerated or rights would be
      terminated, as a result of the execution, delivery and performance of this
      Agreement or the assignment of such Contract to Purchaser (the “Required
      Consents”).

     

    Section
      5.5.  Licenses
      and Permits.
      Except
      with respect to Environmental Permits (which are the subject of Section 5.9),
      Schedule
      5.5
      describes all material Governmental Authorizations required by Law with respect
      to the ownership of the Purchased Assets and the operation of the Facility
      as
      now or previously operated by Selling LLC (the “Permits”),
      together with the name of the Governmental Authority issuing such Permit. Except
      as set forth on Schedule
      5.5,
      to the
      Knowledge of Pfizer, (a) the Permits are valid and in full force and effect,
      and
      (b) Sellers are not in default, and no condition exists that, with notice or
      lapse of time or both, would constitute a default, under the
      Permits.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    Section
      5.6.  Governmental
      Authorization.
      Other
      than as set forth in Schedule
      5.6,
      the
      execution, delivery and performance by each Seller of each Transaction Agreement
      to which it is a party does not require any consent or approval of any
      Governmental Authority.

     

    Section
      5.7.  No
      Litigation.
      Except
      with respect to Environmental Laws (which is the subject of Section 5.9), as
      of
      the date hereof, no litigation, investigation or proceeding by or before any
      court or Governmental Authority is pending against or, to the Knowledge of
      Pfizer, threatened in writing against either Seller, related to the Purchased
      Assets. 

     

    Section
      5.8.  Compliance
      with Laws.
      Except
      with respect to Environmental Laws (which is the subject of Section 5.9), and
      except as to matters otherwise set forth in this Article V or set forth in
      Schedule
      5.8:

     

    (a)  To
      the
      Knowledge of Pfizer, Selling LLC is in compliance in all material respects
      with
      all Laws applicable to the ownership or previous or current operation, if any,
      of the Purchased Assets, and the Purchased Assets are in material compliance
      with all Laws applicable to the Purchased Assets or the ownership or previous
      or
      current operation, if any, thereof;
      and

     

    (b)  Selling
      LLC possesses all material Governmental Authorizations necessary for the
      previous or current operation, if any, of the Facility, and is in material
      compliance with such Governmental Authorizations.

     

    Section
      5.9.  Environmental
      Matters.
      To the
      Knowledge of Pfizer, except as set forth on Schedule
      5.9:

     

    (a)  (i)
      Sellers, with respect to the Facility, and the Facility are in material
      compliance with all applicable Environmental Laws and/or Environmental Permits,
      in each case, in effect as of the Closing Date; and (ii) neither of the Sellers
      is undertaking, nor has either Seller received written notice that it is subject
      to, Remedial Action or enforcement action under any applicable Environmental
      Laws and/or Environmental Permits, in each case, in effect as of the Closing
      Date;

     

    (b)  Sellers,
      with respect to the Facility, has obtained and possesses all material
      Environmental Permits required to operate the Purchased Assets as they are
      currently operated; and

     

    (c)  No
      written claims have been made that, if adversely determined, would reasonably
      be
      expected to result, in Environmental Liability arising from or as a result
      of
      (i) on-site exposures to Hazardous Materials at the Facility; (ii) Releases
      of
      Hazardous Materials at or from the Purchased Assets; or (iii) off-site
      treatment, storage or disposal of Hazardous Materials transported from the
      Facility, except for such claims that would not be reasonably expected to have,
      individually or in the aggregate, a Material Adverse Effect.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    Section
      5.10.  Assumed
      Contracts.
      Except
      as disclosed on Schedule
      2.1(c),
      (a)
      each Assumed Contract is valid and binding on the Seller that is a party to
      such
      contract and, to the Knowledge of Pfizer, the other party thereto, and is in
      full force and effect, and (b) no Seller is, or to the Knowledge of Pfizer,
      no
      other party thereto is, in breach of, or in default under, any Assumed
      Contract.

     

    Section
      5.11.  Real
      Property.
      

     

    (a)  Schedule
      5.11(a)
      sets
      forth a legal description of all real property and interests in the Land (such
      real property and interests in real property, including the Facility, the
“Real
      Property”).
      

     

    (b)  Except
      as
      disclosed on Schedule
      5.11(b),
      Sellers
      are not a party to any lease, sublease, license or other similar arrangement
      to
      occupy or use (whether as landlord, sublandlord, tenant, subtenant or other
      occupancy arrangement) any part of the Real Property or any real property or
      interest in real property that is used or held for use in connection with the
      operation and use of the Facility as it is currently or has been previously
      operated, subject herein to all Permitted Encumbrances. 

     

    (c)  Selling
      LLC is the sole owner of, and will convey to Purchaser at Closing, fee simple
      title to the Real Property, including without limitation, all buildings,
      structures, fixtures and improvements located thereon, in each case free and
      clear of any Liens other than (i) Permitted Encumbrances, (ii) those Liens
      which
      Sellers shall cause to be paid in full or cancelled at or before Closing and
      (iii) any other matters approved in a written agreement executed hereafter
      by
      Purchaser and Sellers. 

     

    Section
      5.12.  Taxes.
      To the
      Knowledge of Pfizer, there are no Liens for Taxes upon any of the Purchased
      Assets, except for Liens for Taxes not yet due and payable.

     

    Section
      5.13.  Title
      to the Purchased Assets
      other
      than Real Property.

     

    (a)  Sellers
      are not a party to any lease, sublease, license or other similar arrangement
      to
      use (whether as lessor, lessee, sublessor, sublessee, licensor, licensee, or
      other use arrangement) any part of the Purchased Assets other than the Real
      Property or any interest in tangible or intangible personal property that is
      used or held for use in connection with the operation and use of the Facility
      as
      it was previously, or is currently, operated, if any, except as set forth on
      Schedule
      5.13(a).

     

    (b)  Sellers
      own, lease or have the legal right to use all of the Purchased Assets (other
      than Real Property, which is the subject of Section 5.11). 

     

    (c)  Sellers
      have, and will convey to Purchaser at Closing, good title to (or in the case
      of
      leased Purchased Assets, valid leasehold interests in) all of the Purchased
      Assets (other than Real Property, which is the subject of Section 5.11), free
      and clear of any Liens except for (i) Permitted Encumbrances, (ii) those Liens
      which Sellers shall cause to be paid in full or cancelled at or before Closing
      and (iii) any other matters approved in a written agreement executed hereafter
      by Purchaser and Sellers. 

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    Section
      5.14.  Brokers.
      Except
      as set forth on Schedule
      5.14,
      no
      broker, finder or investment banker is entitled to any brokerage, finder’s or
      other fee or commission in connection with the transactions contemplated by
      this
      Agreement based upon arrangements made by or on behalf of Sellers. 

     

    Section
      5.15.  Limitations.
      Notwithstanding the representations and warranties of Seller contained in this
      Article V, Sellers
      make no
      representation or warranty concerning the Remaining Parcel, other than such
      representations and warranties contained in Section 5.11.

     

    ARTICLE
      VI

     

    REPRESENTATIONS
      AND WARRANTIES OF PURCHASER PARTIES

     

    The
      Purchasing Parties hereby makes the representations and warranties to Pfizer
      and
      Selling LLC set forth in this Article VI as of the date of this Agreement and
      further agrees that, if the Closing occurs, then at the time of the Closing
      such
      representations and warranties will be deemed to be remade by the Purchasing
      Parties as of the time of the Closing.

     

    Section
      6.1.  Organization.
      Each of
      Purchaser and CoastalXethanol (each a “Purchasing
      Party”
and
      collectively, the “Purchasing
      Parties”)
      is a
      limited liability company duly organized, validly existing and in good standing
      under the laws of the jurisdiction of its organization. 

     

    Section
      6.2.  Authority;
      Binding Effect.
      

     

    (a)  Each
      Purchasing Party has all requisite limited liability company power and authority
      to carry on its business as it is now being conducted and to execute, deliver
      and perform each Transaction Agreement to which it is a party. The execution,
      delivery and performance by each Purchasing Party of each Transaction Agreement
      to which it is a party has been duly authorized by all requisite limited
      liability company action on the part of such Purchasing Party.

     

    (b)  This
      Agreement has been duly executed and constitutes and, when executed and
      delivered in accordance with its terms, each other Transaction Agreement to
      which each Purchasing Party is a party will constitute, a valid and legally
      binding obligation of such Purchasing Party, enforceable against such Purchasing
      Party in accordance with its terms, except as enforcement may be limited by
      bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
      creditors’ rights generally or by general principles of equity (regardless of
      whether enforcement is sought in a proceeding in equity or law).

     

    Section
      6.3.  Non-Contravention.
      The
      execution, delivery and performance by each Purchasing Party of each Transaction
      Agreement, and the consummation of the transactions contemplated hereby and
      thereby, do not and will not (a) violate any provision of the organizational
      documents of each Purchasing Party; (b) result in a breach of, or default under,
      or right to accelerate with respect to, any term or provision of any contract,
      commitment or other obligation to which each Purchasing Party or any of its
      Affiliates is a party or is subject; or (c) assuming compliance with the matters
      set forth in Sections 5.4, 5.6 and 6.4, conflict with, violate or result in
      a
      breach of or constitute a default under any Law or other restriction of any
      Governmental Authority to which each Purchasing Party is subject.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    Section
      6.4.  Governmental
      Authorization; Third Party Consent.
      Except
      as set forth in Schedules
      5.4,
      5.6
      and
6.4,
      the
      execution, delivery and performance by each Purchasing Party of each Transaction
      Agreement to which it is a party does not require any consent or approval of
      any
      Governmental Authority or any other Person. 

     

    Section
      6.5.  Litigation.
      No
      Action by or before any Governmental Authority is pending, or to the Knowledge
      of Purchaser, threatened which if adversely determined would adversely effect
      any Purchasing Party’s ability to consummate the transactions contemplated
      hereby and fulfill its obligations under the Transaction
      Agreements.

     

    Section
      6.6.  Financial
      Capability.
      CoastalXethanol has funds sufficient for the payment of the Purchase Price
      by
      Purchaser under the terms of this Agreement.

     

    Section
      6.7.  Condition
      of the Purchased Assets.
      Each
      Purchasing Party and its representatives and agents have had and have exercised
      the right to make all inspections and investigations of the Purchased Assets
      deemed necessary or desirable by such Purchasing Party. Purchaser is purchasing
      the Purchased Assets based solely on the results of its inspections and
      investigations and on the representations and warranties of Sellers expressly
      set forth in this Agreement and the other Transaction Agreements. In light
      of
      these inspections and investigations and the representations and warranties
      made
      to Purchaser by Sellers in this Agreement, each Purchasing Party is
      relinquishing any right to any claim based on any representations and warranties
      which are not made by Sellers in Article V. Any claims any Purchasing Party
      may
      have for breach of representation or warranty shall be based solely on the
      representations and warranties of Sellers set forth in Article V. Except with
      respect to claims based on any representations and warranties in Article V,
      all
      warranties of habitability, merchantability and fitness for any particular
      purpose, and all other warranties arising under the Uniform Commercial Code
      (or
      similar foreign Laws), are hereby waived by the Purchasing Parties. Each
      Purchasing Party further represents it is not relying on any representation
      or
      warranty, express or implied, made by Pfizer or any other Person as to the
      accuracy or completeness of any information regarding the Purchased Assets
      or
      the Assumed Liabilities not expressly set forth in this Agreement, and neither
      Pfizer nor any other Person will have or be subject to any Liability to any
      Purchasing Party or any other Person resulting from the distribution to any
      Purchasing Party or its representatives or agents (except to the extent such
      actions involved fraud or willful misconduct), or a Purchasing Party’s use of,
      any such information or any other documents or information provided to such
      Purchasing Party or its representatives or agents in connection with the sale
      of
      the Purchased Assets.

     

    Section
      6.8.  Brokers.
      Except
      as set forth on Schedule
      6.8,
      no
      broker, finder or investment banker is entitled to any brokerage, finder’s or
      other fee or commission in connection with the transactions contemplated by
      this
      Agreement based upon arrangements made by or on behalf of any Purchasing Party.
      

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VII

     

    COVENANTS

     

    Section
      7.1.  Information
      and Documents; Confidentiality.
      

     

    (a)  From
      the
      date hereof until the Closing, upon reasonable advance notice, Pfizer shall,
      and
      shall cause Selling LLC to, permit Purchaser and its representatives to have
      access, during regular business hours, to the facilities, assets, employees,
      books and records of Sellers relating solely to the Purchased Assets, and shall
      furnish, or cause to be furnished, to Purchaser such financial, tax and
      operating data and other available information with respect to the Purchased
      Assets as Purchaser and its representatives shall from time to time reasonably
      request; provided that no such access shall unreasonably interfere with Pfizer
      or Selling LLC’s operation of its businesses, including, without limitation, the
      Facility. 

     

    (b)  All
      information received by Purchaser and given by or on behalf of Sellers in
      connection with this Agreement and the transactions contemplated hereby will
      be
      held by Purchaser, its Affiliates and their respective employees, officers,
      directors, agents, representatives and advisors as “Evaluation
      Material”,
      as
      defined in, and pursuant to the terms of, the Confidentiality
      Agreement.

     

    (c)  After
      the
      Closing, upon reasonable advance notice, Purchaser shall permit Sellers and
      their respective representatives to have access, during regular business hours,
      to the facilities, assets, employees, books and records of Purchaser relating
      solely to the Purchased Assets, and shall furnish, or cause to be furnished,
      to
      Sellers such financial, tax and operating data and other available information
      with respect to the Purchased Assets as Sellers and their respective
      representatives shall from time to time reasonably request in connection with
      any Action related to the Purchased Assets; provided that no such access shall
      unreasonably interfere with Purchaser’s operation of its businesses, including,
      without limitation, the Facility. 

     

    Section
      7.2.  Conduct
      of Business.
      From
      the date hereof until the Closing, except as otherwise specifically contemplated
      by this Agreement or as Purchaser shall otherwise consent in writing, Pfizer
      agrees that it will cause Selling LLC to operate the Facility, to the extent
      there is any operation of the Facility, in the ordinary and usual course
      consistent with past practice, and use its commercially reasonable efforts
      to
      preserve intact the Facility and related relationships with customers, suppliers
      and other third parties. From the date hereof until the Closing Date, except
      as
      otherwise specifically contemplated by this Agreement or as Purchaser shall
      otherwise consent in writing, Pfizer shall cause Selling LLC to, with respect
      to
      the Purchased Assets, Assumed Contracts and/or Assumed Liabilities:

     

    (a)  not
      incur, create or assume any Lien with respect to any Purchased Asset other
      than
      Permitted Encumbrances and any other Liens which shall be paid off or cancelled
      at or before Closing;

     

    (b)  not
      dispose of or lease any Purchased Asset or rights therein;

     

    (c)  not
      enter
      into, amend any material term of, or waive any material right under, any of
      the
      Assumed Contracts or Assumed Liabilities; and

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    (d)  not
      agree
      to take any of the foregoing actions.

     

    Section
      7.3.  Best
      Efforts; Certain Governmental Matters.
      

     

    (a)  Upon
      the
      terms and subject to the conditions herein provided (including, without
      limitation, Section 2.2), each of the parties hereto agrees to use its best
      efforts to take, or cause to be taken, all actions and to do, or cause to be
      done, all things necessary under applicable Laws to consummate and make
      effective the transactions contemplated by the Transaction Agreements, including
      (i)
      to
      comply promptly with all legal requirements which may be imposed on it with
      respect to the Transaction Agreements and the transactions contemplated thereby
      (which actions shall include, without limitation, furnishing all information
      required by applicable Law in connection with approvals of or filings with
      any
      Governmental Authority); (ii)
      to
      satisfy the conditions precedent to the obligations of such party hereto;
(iii)
      subject
      to Section 2.2, to obtain any consent, authorization, order or approval of,
      or
      any exemption by, any Governmental Authority or other public or private third
      party required to be obtained or made by Purchaser or Sellers in connection
      with
      the transactions contemplated by the Transaction Agreements; and (iv)
      to take
      any action reasonably necessary to vigorously defend, lift, mitigate or rescind
      the effect of any litigation or administrative proceeding adversely affecting
      the consummation of the transactions contemplated by the Transaction Agreements,
      including promptly appealing any adverse court or administrative
      decision.

     

    (b)  Subject
      to appropriate confidentiality protections and applicable Law, each of the
      parties hereto will furnish to the other party such necessary information and
      reasonable assistance as such other party may reasonably request in connection
      with the foregoing and will provide the other party with copies of all filings
      made by such party with any Governmental Authority and, upon request, any other
      information supplied by such party to a Governmental Authority in connection
      with the Transaction Agreements and the transactions contemplated
      thereby.

     

    Section
      7.4.  Tax
      Matters.
      

     

    (a)  Preparation
      and Filing of Tax Returns.
      Sellers
      shall be responsible for the preparation and timely filing of all Tax Returns
      in
      respect of the Retained Tax Liabilities that are required by Law to be filed
      by
      Sellers. The Purchasing Parties shall be responsible for the preparation and
      timely filing of all Tax Returns that are required to be filed after the Closing
      Date with respect to periods on or after the Closing Date in respect of the
      Purchased Assets. 

     

    (b)  Payment
      of Taxes.
      Sellers
      shall be responsible for the payment of all Taxes due with respect to Tax
      Returns for which Sellers are responsible pursuant to Section 7.4(a), other
      than
      real and personal property Taxes for the calendar year of the Closing
      attributable to the portion of the year that the respective real or personal
      property of the Purchased Assets and the Facility is owned by Purchaser, as
      calculated pursuant to Section 2.5. The Purchasing Parties shall be responsible
      for the payment of all Taxes due with respect to Tax Returns for which Purchaser
      is responsible pursuant to Section 7.4(a), provided that Sellers shall pay
      to
      Purchaser the amount of any Retained Tax Liabilities required to be reported
      on
      any Tax Return which is required to be prepared and filed by Purchaser pursuant
      to Section 7.4(a).

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    (c)  Tax
      Cooperation.
      Each
      Purchasing Party, on the one hand, and Sellers, on the other hand, shall provide
      the other party with such information and records and make such of its officers,
      directors, employees and agents available as may reasonably be requested by
      such
      other party in connection with the preparation of any Tax Return or any audit
      or
      other proceeding that relates to the Facility.

     

    (d)  Refunds.
      In the
      case of any refunds or credits with respect to real or personal property Taxes
      for any Straddle Period, Sellers shall be entitled to receive payment (promptly
      after receipt or entitlement thereto) of the amount of such refunds or credits
      multiplied by the fraction described in Section 2.5 for such Straddle
      Period.

     

    (e)  Tax
      Indemnification.
      

     

    
      	(i)  	
              Sellers
                shall pay for, indemnify, defend and hold the Purchaser and its Affiliates
                harmless from and against all Retained Tax Liabilities. Further,
                Sellers’
                obligations pursuant to this Section 7.4(e)(i) shall terminate effective
                sixty (60) days after the expiration of the applicable statute of
                limitations (including extensions) in respect of each such
                Liability.

            

    

     

    
      	(ii)  	
              The
                Purchasing Parties shall pay for, indemnify, defend and hold Sellers
                and
                their respective Affiliates harmless from and against all Liabilities
                for
                Taxes related to the Purchased Assets that are not Retained Tax
                Liabilities. Each Purchasing Party’s obligations pursuant to this Section
                7.4(e)(ii) shall terminate effective sixty (60) days after the expiration
                of the applicable statute of limitations (including extensions) in
                respect
                of each such Liability.

            

    

     

    
      	(iii)  	
              Any
                indemnity payment required to be made pursuant to this Section 7.4(e)
                shall be paid within thirty (30) days after the indemnified party
                makes
                written demand upon the indemnifying
                party.

            

    

     

    
      	(iv)  	
              Amounts
                paid to, by or on behalf of each Purchasing Party as indemnification
                shall
                be treated as adjustments to the Purchase Price.
                

            

    

     

    (f)  Tax
      Contests.
      

     

    
      	(i)  	
              If
                a claim shall be made by any taxing authority (a “Tax
                Claim”)
                which, if successful, might result in an indemnity payment pursuant
                to
                Section 7.4(e), the party receiving notice of such claim shall promptly
                notify the other party of such Tax Claim; provided that the failure
                by an
                indemnified party to provide prompt notification shall not relieve
                the
                indemnifying party of its indemnification obligations hereunder except
                to
                the extent that the indemnifying party is materially prejudiced thereby
                in
                defending such Tax Claim.

            

    

     

    
      	(ii)  	
              Except
                as otherwise provided in Section 7.4(f)(iii), Sellers shall control
                all
                proceedings relating to any Tax Claim with respect to a Retained
                Tax
                Liability and make all decisions in connection with such Tax Claim
                (including, without limitation, selection of counsel) and, without
                limiting the foregoing, may in their sole discretion pursue or forego
                any
                and all administrative appeals, proceedings, hearings and conferences
                with
                any taxing authority with respect thereto, and may, in their sole
                discretion, either pay the Tax claimed and sue for a refund (where
                applicable law permits such refund suits) or contest the Tax Claim
                in any
                permissible manner; provided Sellers shall not take any position,
                unless
                required by Law, that could reasonably be expected to have a material
                adverse effect on the Purchaser without consulting with the Purchaser
                regarding such position. Purchaser shall be entitled to be informed
                of
                such Tax Claim within a reasonable time after such Tax Claim is asserted
                and the developments with respect to such Tax Claim at any administrative
                meeting, conference, hearing or other
                proceeding.

            

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    
      	(iii)  	
              Except
                as otherwise provided in Section 7.4(f)(ii), Purchaser shall control
                all
                proceedings with respect to Taxes related to the Purchased Assets
                and the
                Facility for any taxable period beginning after the Closing
                Date.

            

    

     

    
      	(iv)  	
              Sellers
                and Purchaser shall jointly control any proceedings with respect
                to real
                and personal property Taxes relating to the Purchased Assets and
                the
                Facility for any Straddle Period.

            

    

     

    
      	(v)  	
              Purchaser
                and its Affiliates, on the one hand, and Sellers and their respective
                Affiliates, on the other, shall cooperate in contesting any Tax Claim,
                which cooperation shall include the retention and (upon request)
                the
                provision to the requesting party of records and information which
                are
                reasonably relevant to such Tax Claim, and making employees available
                on a
                mutually convenient basis to provide additional information or explanation
                of any material provided hereunder or to testify at proceedings relating
                to such Tax Claim.

            

    

     

    Section
      7.5.  Environmental
      Consultant.
      In the
      event that Purchaser elects to dismantle all or a portion of the Facility
      following the Closing, Purchaser shall retain an environmental consultant in
      connection with the same reasonably acceptable to Purchaser and
      Pfizer.

     

    Section
      7.6.  Insurance.
      As of
      the Closing, the coverage under all insurance policies related to the Facility
      shall continue in force only for the benefit of Sellers and their Affiliates
      and
      not for the benefit of Purchaser. Purchaser agrees to arrange for its own
      insurance policies to be obtained from reputable insurers with respect to the
      Purchased Assets and its obligations under the E&O Agreement (for real and
      personal property, public liability, workers’ compensation and builder’s risk
      insurance) covering all periods from the Closing and agrees not to seek, through
      any means, to benefit from any of Sellers’ or their Affiliates’ insurance
      policies which may provide coverage for claims relating in any way to the
      Facility prior to the Closing.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    Section
      7.7.  Notification
      of Certain Matters.
      

     

    (a)  Between
      the date of this Agreement and the Closing, each Seller shall promptly notify
      Purchaser in writing if any of them becomes aware of (i) any fact or condition
      that causes or constitutes a breach of any of the Sellers’ representations and
      warranties made as of the date of this Agreement or (ii) the occurrence after
      the date of this Agreement of any fact or condition that would or be reasonably
      likely to (except as expressly contemplated by this Agreement) cause or
      constitute a breach of any such representation or warranty had that
      representation or warranty been made as of the time of the occurrence of, or
      either Seller’s discovery of, such fact or condition. Should any such fact or
      condition require any change to the Schedules, Sellers shall promptly as
      practicable deliver to Purchaser a supplement to the Schedules specifying such
      change. Such delivery shall not affect any rights of Purchaser under Articles
      VIII or IX. During the same period, each Seller also shall promptly notify
      Purchaser of the occurrence of any breach of any covenant of a Seller in this
      Article VII or of the occurrence of any event that may make the satisfaction
      of
      the conditions in Article IV impossible or unlikely.

     

    (b) Between
      the date of this Agreement and the Closing, each of the Purchasing Parties
      shall
      promptly notify Seller in writing if such Purchasing Party becomes aware of
      (i)
      any fact or condition that causes or constitutes a breach of any of the
      Purchasing Parties’ representations and warranties made as of the date of this
      Agreement or (ii) the occurrence after the date of this Agreement of any fact
      or
      condition that would or be reasonably likely to (except as expressly
      contemplated by this Agreement) cause or constitute a breach of any such
      representation or warranty had that representation or warranty been made as
      of
      the time of the occurrence of, or such Purchasing Party’s discovery of, such
      fact or condition. Should any such fact or condition require any change to
      the
      Schedules, the Purchasing Parties shall promptly as practicable deliver to
      Seller a supplement to the Schedules specifying such change. Such delivery
      shall
      not affect any rights of Sellers under Articles VIII or IX. During the same
      period, the Purchasing Parties also shall promptly notify Seller of the
      occurrence of any breach of any covenant of a Purchasing Party in this Article
      VII or of the occurrence of any event that may make the satisfaction of the
      conditions in Article IV impossible or unlikely.

     

    Section
      7.8.  Bulk
      Sales Laws.
      Each
      Purchasing Party acknowledges that Sellers have not taken, and do not intend
      to
      take, any action required to comply with any applicable bulk sale or bulk
      transfer laws or similar laws. 

     

    Section
      7.9.  Compliance
      with WARN, Etc.
      With
      respect to WARN or other similar Laws of any jurisdiction, each party will
      timely give any notices and take any other actions as may be required of such
      party thereunder. Purchaser has no intent to hire any of Sellers’ employees.
      Sellers shall be and remain responsible for any Losses under the WARN Act or
      any
      similar state or local Law that may result from an "Employment Loss", as defined
      by 29 U.S.C. sect. 2101(a)(6), caused by any action of Seller prior to the
      Closing or by Purchaser's decision not to hire previous employees of a
      Seller.

     

    Section
      7.10.  Access
      and Cooperation Agreement.
      At the
      Closing, the Purchasing Parties and Sellers shall execute and deliver the Access
      and Cooperation Agreement.

     

    Section
      7.11.  E&O
      Agreement.
      As of
      the Closing Date, Purchaser will assume Pfizer’s performance and financial
      commitments under the E&O Agreement for such period that Purchaser owns the
      Land. In addition, Purchaser shall require as a condition to closing in any
      subsequent sale of all or a portion of the Land, subject to the E&O
      Agreement, that the subsequent purchaser agree to assume Purchaser’s obligations
      then in effect under the E&O Agreement.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    Section
      7.12.  Use
      of
      the Facility
      Parcel.
      Following the Closing, each Purchasing Party shall not, and shall cause any
      of
      its Affiliates not to, (a)
      use the
      Facility Parcel (whether such use is primary or ancillary) for residential
      or
      recreational purposes (including, without limitation, use as a playground), or
      as a school, day care facility, nursing home, hospital or other health care
      facility, or (b)
      use the
      groundwater underneath the Facility Parcel for any purpose. For purposes of
      clarification, the use restrictions set forth in clause (a) and (b) of this
      Section 7.12 shall not apply to the Remaining Parcel. The use restrictions
      set
      forth in clause (a) and (b) of this Section 7.12 shall be incorporated in the
      Deed and shall be in effect for as long as permitted under the laws of the
      State
      of Georgia. In addition, Purchaser shall reasonably consider Sellers’ requests
      for any additional engineering or institutional controls that Sellers may
      propose after the Closing, arising out of their respective obligation to perform
      Remedial Action. Such requests shall be consistent with the Applicable Remedial
      Action Standard and will not unreasonably interfere with Purchaser’s ability to
      conduct its business on the Facility Parcel. Purchaser shall implement and
      maintain any such additional engineering or institutional controls, as mutually
      agreed by Purchaser and Sellers.

     

    Section
      7.13.  Transfer
      of Permits.
      Prior
      to the Closing, Purchaser shall transfer into its name (if transferable), and
      negotiate the terms of, all necessary and applicable operating permits
      (including all Environmental permits) issued by appropriate Governmental
      Authorities, other than any Environmental permits to be retained by Pfizer
      as
      contemplated by Sections 2.3(k) and (o) hereof.

     

    Section
      7.14.  Employees
      and Employee Benefit Matters.
      Purchaser is not required, and does not intend, to offer employment to any
      employee of a Seller or to assume or be responsible for any Liabilities related
      to an employees of any Seller or any employee health, pension, welfare,
      insurance, retirement, or other benefit plan. 

     

    Section
      7.15.  Fulfillment
      of Conditions by Sellers.
      Sellers
      shall not knowingly take or cause to be taken, or fail to take or cause to
      be
      taken, any action that would cause the conditions to the obligations of Sellers
      or each Purchasing Party to consummate the transactions contemplated hereby
      to
      fail to be satisfied or fulfilled at or prior to the Closing, including, without
      limitation, by taking or causing to be taken, or failing to take or cause to
      be
      taken, any action that would cause any of the representations and warranties
      made by Sellers contained in this Agreement to fail to be true and correct
      as of
      the date of this Agreement or, in the case of the representations and warranties
      to be made as of the Closing, as of the Closing. Sellers shall take, or cause
      to
      be taken, all commercially reasonable actions within its power to cause to
      be
      satisfied or fulfilled, at or prior to the Closing, the conditions precedent
      to
      each Purchasing Party’s obligations to consummate the transactions contemplated
      hereby.

     

    Section
      7.16.  Fulfillment
      of Conditions by the Purchasing Parties.
      Neither
      Purchasing Party shall knowingly take or cause to be taken, or fail to take
      or
      cause to be taken, any action that would cause the conditions to the obligations
      of Sellers or any Purchasing Party to consummate the transactions contemplated
      hereby to fail to be satisfied or fulfilled, including, without limitation,
      by
      taking or causing to be taken, or failing to take or cause to be taken, any
      action that would cause the representations and warranties made by each
      Purchasing Party contained in this Agreement to fail to be true and correct
      as
      of the Closing. Each Purchasing Party shall take, or cause to be taken, all
      commercially reasonable actions within its power to cause to be satisfied or
      fulfilled, at or prior to the Closing, the conditions precedent to the
      obligations of Sellers to consummate the transactions contemplated
      hereby.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    Section
      7.17.  Removing
      Excluded Assets.
      On or
      before the Closing, Sellers shall remove all Excluded Assets from the Purchased
      Assets. Such removal shall be done in such manner as to avoid any damage to
      said
      property and any disruption of the business operations to be conducted by
      Purchaser after the Closing. Any damage to the Purchased Assets resulting from
      such removal shall be paid by Sellers at the Closing. Should Seller fail to
      remove the Excluded Assets as required by this Section 7.17 and fail to cure
      such failure within fifteen (15) days after receiving written notice of such
      failure from Purchaser, Purchaser shall have the right, but not the obligation,
      (a) to remove the Excluded Assets at Sellers’ sole cost and expense; (b) to
      store the Excluded Assets and to charge Seller all storage costs associated
      therewith; (c) to treat the Excluded Assets as unclaimed and to proceed to
      dispose of the same under the laws governing unclaimed property; or (d) to
      exercise any other right or remedy conferred by this Agreement or otherwise
      available at law or in equity. Sellers shall promptly reimburse Purchaser for
      all costs and expenses incurred by Purchaser in connection with any Excluded
      Assets not removed by Sellers on or before the Closing.

     

    Section
      7.18.  Liens
      other than Permitted Encumbrances.
      Sellers
      shall cause to be paid in full or cancelled at or before Closing all Liens
      on or
      encumbering any of the Purchased Assets other than the Permitted Encumbrances,
      including but not limited to statutory Liens or Liens arising by operation
      of
      law, including mechanics’, materialmens’, carriers’, workmens’, warehousemens’,
      repairmens’, or other like Liens and security obligations.

     

    Section
      7.19.  Sellers’
      obligation to conduct a Remedial Action.
      The
      obligation of Sellers to conduct a Remedial Action under the Excluded
      Environmental Liabilities shall continue for so long as such assessment or
      remediation continues to be required by a Governmental Authority or Governmental
      Order.

     

    Section
      7.20.  Purchaser’s
      Post-Closing Due Care. 
      The
      Purchasing Parties agree to exercise due care so as to avoid or minimize
      interference with Sellers’ performance of the Work (as defined in the Access and
      Cooperation Agreement), including but not limited to due care to prevent damage
      to groundwater wells or the Excluded Environmental Liabilities, and the
      Purchasing Parties agree not to use that portion of the Facility and the
      Facility Parcel identified as the RCRA units (the container/drum storage, tanks
      and incinerator) and the Solid Waste Management Units (identified and described
      in Schedule
      A,
      and
      depicted on Exhibits A and B to the Access and Cooperation Agreement) in a
      manner that would materially adversely affect the integrity of the
      Work.

     

    Section
      7.21.  Removal
      of the IKON equipment.
      To the
      extent that the equipment leased to Pfizer under that certain Master
      Agreement between Pharmacia Corp. (Pfizer) and IOS Capital, Inc., a wholly-owned
      subsidiary of IKON Office Solutions, Inc. dated December 22, 2000 is not removed
      from the Purchased Assets on or before Closing, Purchaser
      shall agree to grant access to IKON Office Solutions, Inc. or its authorized
      agent to remove such equipment from the Purchased Assets at any time following
      the Closing. 

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VIII

     

    INDEMNIFICATION

     

    Section
      8.1.  Indemnification
      by Pfizer.
      

     

    (a)  From
      and
      after the Closing, subject to the provisions of this Article VIII, Sellers,
      jointly and severally, agree to defend, indemnify and hold harmless Purchaser
      and its Affiliates and, its directors, officers, agents, employees, successors
      and assigns (the “Purchaser
      Indemnified Parties”),
      from
      and against, and will reimburse the Purchaser Indemnified Parties for, any
      and
      all Actions, judgments, awards, Liabilities, losses, costs (including costs
      of
      investigation and defense and reasonable attorney’s fees), diminution of value
      of the Purchased Assets (solely with respect to indemnification claims with
      respect to Section 8.1(a)(iii)), or damages (each, a “Loss”
and
      collectively, the “Losses”)
      brought against, suffered or sustained or incurred by the Purchaser Indemnified
      Parties, whether or not involving a Third Party Claim, which arise from or
      are
      directly attributable to: (i)
      any of
      the Retained Liabilities, (ii)
      any
      breach by any Seller of any of its covenants or agreements contained in this
      Agreement; (iii)
      any
      breach of any representation or warranty of any Seller contained in this
      Agreement; (iv) any breach before Closing by a Seller of any covenant or
      obligation under the E&O Agreement; and (v) any breach by a Seller of any
      covenant or obligation under the Access and Cooperation Agreement.
      Notwithstanding the foregoing, the parties hereto acknowledge that any claims
      for Loss with respect to any Excluded Environmental Liability shall only be
      recovered by the Purchaser Indemnified Party to the extent it is derived or
      directly attributable to a Third Party Claim.

     

    (b) Purchaser
      acknowledges and agrees that Sellers shall not have any liability under any
      provision of this Agreement for any Loss to the extent that such Loss relates
      to
      any action taken by Purchaser or any other Person (other than action taken
      by
      Sellers in breach of this Agreement) after the Closing Date; provided, however,
      that Purchaser shall not be restrained from reporting a Release of Hazardous
      Materials as required by Environmental Law or Environmental Permits, nor shall
      such actions relieve Sellers of any of their indemnification obligations under
      Article VIII. Purchaser shall take, and shall cause its Affiliates to take,
      all
      reasonable actions to mitigate any Loss upon becoming aware of any event which
      would reasonably be expected to, or does, give rise thereto, including incurring
      costs only to the minimum extent necessary to remedy the breach which gives
      rise
      to the Loss.

     

    (c) Nothing
      in this Section 8.1 shall be construed to impose liabilities on a Seller with
      respect to Taxes which are the responsibility of the Purchaser under this
      Agreement.

     

    Section
      8.2.  Indemnification
      by Purchaser.
      

     

    (a)  From
      and
      after the Closing, subject to the provisions of this Article VIII, Purchaser
      agrees to defend, indemnify and hold harmless Sellers and their respective
      Affiliates and their respective directors, officers, agents, employees,
      successors and assigns (the “Seller
      Indemnified Parties”)
      from
      and against, and will reimburse the Seller Indemnified Parties for, any and
      all
      Losses brought against, suffered or sustained or incurred by the Seller
      Indemnified Parties, whether or not involving a third party claim, which arise
      from or are directly attributable to: (i)
      any
      Assumed Liability; (ii)
      any
      breach by Purchaser of any of its covenants or agreements contained in this
      Agreement; (iii)
      any
      breach of any representation or warranty of Purchaser contained in this
      Agreement; (iv)
      events
      occurring after the Closing Date in connection with the Purchased Assets
      (including, without limitation, the use, ownership, possession, operation or
      occupancy of any real property, the Facility or the Purchased Assets from and
      after the Closing Date, including any Environmental Liability, except to the
      extent the Loss is or arises form one of the Retained Liabilities or Excluded
      Assets); (v)
      any
      breach by Purchaser after the Closing of any covenant or obligation under the
      E&O Agreement; and (vi)
      any
      breach by Purchaser of any covenant or obligation under the Access and
      Cooperation Agreement.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    (b) Pfizer
      shall take and shall cause its Affiliates to take all reasonable actions to
      mitigate any Loss upon becoming aware of any event which would reasonably be
      expected to, or does, give rise thereto, including incurring costs only to
      the
      minimum extent necessary to remedy the breach which gives rise to the
      Loss.

     

    (c) Nothing
      in this Section 8.2 shall be construed to impose liabilities on the Purchaser
      with respect to Taxes which are the responsibility or obligation of a Seller
      under this Agreement.

     

    Section
      8.3.  Notice
      of Claims.
      

     

    (a)  If
      any of
      the Persons to be indemnified under this Article VIII (each, an “Indemnified
      Party”)
      has
      suffered or incurred any Loss, the Indemnified Party shall so notify the party
      from whom indemnification is sought (the “Indemnifying
      Party”)
      promptly in writing describing such Loss, the amount or estimated amount
      thereof, if known or reasonably capable of estimation, and the method of
      computation of such Loss, all with reasonable particularity and containing
      a
      reference to the provisions of this Agreement or any other agreement, instrument
      or certificate delivered pursuant hereto in respect of which such Loss shall
      have occurred. If any action at Law or suit in equity is instituted by or
      against a third party with respect to which the Indemnified Party intends to
      seek indemnification under this Article VIII, the Indemnified Party shall
      promptly notify the Indemnifying Party of such action or suit and permit the
      Indemnifying Party to participate in and control the defense of such action
      or
      suit. A failure to give such notice in a timely manner pursuant to this Section
      8.3 shall not limit the obligation of the Indemnifying Party under this Article
      VIII, except (i)
      to the
      extent such Indemnifying Party is materially prejudiced thereby; (ii)
      to the
      extent expenses are incurred during the period in which notice was not provided;
      and (iii)
      as
      provided by Section 8.5 below. 

     

    (b)  Except
      when a notice, report or other filing must be filed immediately pursuant to
      an
      express requirement of Environmental Laws, the Indemnified Party will provide
      notice and an opportunity to comment to the Indemnifying Party before the
      Indemnified Party files any Required Governmental Report or any other report,
      notification or filing with any Governmental Authority or third party in
      connection with an event that would be reasonably likely to result in a Loss
      subject to the indemnification provisions of this Article VIII. In the event
      the
      Indemnified Party is required to file a Required Governmental Report or any
      other report, notification or filing immediately, the Indemnified Party will
      provide simultaneous notice to the Indemnifying Party when it files such report
      with the Governmental Authority.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    Section
      8.4.  Third
      Party Claims.
      

     

    (a)  The
      Indemnifying Party under this Article VIII shall have the right, but not the
      obligation, to conduct and control, through counsel of its choosing, any
      Governmental Order or third party Action (as used in this Agreement, either
      shall be a “Third
      Party Claim”),
      and
      the Indemnifying Party may compromise or settle the same; provided that the
      Indemnifying Party shall give the Indemnified Party advance notice of any
      proposed compromise or settlement. No Indemnified Party may compromise or settle
      any Third Party Claim for which it is seeking indemnification hereunder without
      the prior written consent of the Indemnifying Party. The Indemnifying Party
      shall permit the Indemnified Party to participate in the defense of any such
      action or suit through counsel chosen by the Indemnified Party; provided that
      the fees and expenses of such counsel shall be borne by the Indemnified Party.
      If the Indemnifying Party elects not to control or conduct the defense or
      prosecution of a Third Party Claim, the Indemnifying Party shall still have
      the
      right to participate in the defense or prosecution of any Third Party Claim
      and,
      at its own expense, to employ counsel of its own choosing for such
      purpose.

     

    (b)  The
      parties hereto shall cooperate in the defense or prosecution of any Third Party
      Claim, with such cooperation to include (i)
      the
      retention and the provision of the Indemnifying Party records and information
      that are reasonably relevant to such Third Party Claim; and (ii)
      the
      making available of employees on a mutually convenient basis for providing
      additional information and explanation of any material provided
      hereunder.

     

    Section
      8.5.  Expiration. Notwithstanding
      anything in this Agreement to the contrary, if the Closing shall have occurred,
      all covenants, agreements, representations and warranties made herein shall
      survive the Closing. Notwithstanding the foregoing, all representations and
      warranties solely made herein, and all indemnification obligations under
      Sections 8.1. and 8.2 with respect to any such representation or warranty (other
      than those in Sections 5.11, 5.12 or 5.13 for which a claim may be made at
      any
      time), shall terminate and expire on, and no action or proceeding seeking
      damages or other relief for breach, misrepresentation or inaccuracy with respect
      thereto shall be commenced after the first anniversary of the Closing Date,
      unless prior to such anniversary date a claim for indemnification with respect
      thereto shall have been made, asserted with reasonable specificity, by written
      notice given under Section 8.3.

     

    Section
      8.6.  Certain
      Limitations.
      Notwithstanding the other provisions of this Article VIII, Pfizer shall not
      have
      any indemnification obligation under Section 8.1(a)(iii) for Losses (except
      in
      respect of breaches of Sections 5.1 and 5.2) unless the aggregate amount of
      all
      such Losses exceeds Seventy-Five Thousand Dollars (US$75,000), in which event
      Pfizer shall be required to pay the amount of such Losses which exceeds
      Seventy-Five Thousand Dollars (US$75,000),
      and
      for all such Losses only up to (i) One Million Five Hundred Thousand Dollars
      (US$1,500,000) in the event the Closing occurs on or before August 22, 2006
      or
      (ii) One Million Two Hundred Sixty Thousand Dollars (US$1,260,000) in the event
      the Closing occurs after August 22, 2006. However, the limitations, thresholds,
      caps and/or baskets contemplated by this Section 8.6 shall not apply to any
      indemnification obligations under Sections 8.1(a)(i), 8.1(a)(ii), 8.1(a)(iv),
      and 8.1(a)(v), any indemnification obligations under Section 8.1(a)(iii) for
      breaches of Sections 5.11 or 5.13, or any indemnification obligations under
      Section 8.1(a)(iii) for any breach of any of Sellers’ representations and
      warranties due to Sellers’ intentional misrepresentation.

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    Section
      8.7.  Losses
      Net of Insurance, Other Indemnities, Etc.
      The
      amount of any Loss for which indemnification is provided under Section 8.1
      or
      8.2 shall be net of (i)
      any
      amounts recovered by the Indemnified Party pursuant to any indemnification
      by or
      indemnification agreement with any third party, and (ii)
      any
      insurance proceeds or other cash receipts or sources of reimbursement received
      as an offset against such Loss (each Person named in clauses (i) and (ii),
      a
“Collateral
      Source”),
      minus, however, all costs incurred by the Indemnified Party to obtain amounts
      under clauses (i) and (ii), including but not limited to deductibles,
      retrospective premium adjustments, and experience-based premium adjustments.
      The
      amount of any such Loss also shall be (A) reduced by an amount equal to any
      Tax
      benefits attributable to such claim, and (B) increased by an amount equal to
      any
      Taxes attributable to the receipt of such payment, but only to the extent that
      such Tax benefits are actually realized, or such Taxes are actually paid, as
      the
      case may be, by Seller or by the Purchaser or by any consolidated, combined
      or
      unitary group of which the Purchaser or Seller is a member. The Indemnified
      Party shall use commercially reasonable efforts to seek recovery from all
      Collateral Sources, and to the extent the Indemnified Party receives payments
      from a Collateral Source which result in the Indemnified Party having received
      more than the amount of the Loss in question, the Indemnified Party shall
      promptly remit to the Indemnifying Party the excess of the amount received
      from
      all Collateral Sources over the amount of the Loss in question previously paid
      by the Indemnifying Party. The Indemnifying Party may require an Indemnified
      Party to assign the rights to seek recovery upon the Indemnifying Party’s
      payment of the Loss to the Indemnified Party; provided,
      however,
      that
      the Indemnifying Party will then be responsible for pursuing such claim at
      its
      own expense. If the amount to be netted hereunder from any payment required
      under Section 8.1 or Section 8.2 is determined after payment by the Indemnifying
      Party of any amount otherwise required to be paid to an Indemnified Party
      pursuant to this Article VIII, the Indemnified Party shall repay to the
      Indemnifying Party, promptly after such determination, any amount that the
      Indemnifying Party would not have had to pay pursuant to this Article VIII
      had
      such determination been made at the time of such payment.

     

    Section
      8.8.  Survival
       All
      representations, warranties, covenants and obligations in this Agreement, the
      Schedules, the supplements or amendments to the Schedules, and the certificates
      delivered pursuant to this Agreement shall survive the Closing and the
      consummation of the transactions contemplated hereby, as provided in Section
      8.5.

    

    Section
      8.9.  Sole
      Remedy/Waiver.
      The
      parties hereto acknowledge and agree that the remedies provided for in this
      Agreement shall be the parties’ sole and exclusive remedy with respect to the
      subject matter of this Agreement. In furtherance of the foregoing, each party
      hereby agrees only to assert the remedies provided for in this Agreement and
      waives, to the fullest extent permitted by applicable Law, any and all other
      rights, claims and causes of action, (including rights of contribution, if
      any)
      known or unknown, foreseen or unforeseen, which exist or may arise in the
      future, that it may have against Sellers or any of their Affiliates, or
      Purchaser or any of its Affiliates, as the case may be, arising under or based
      upon any federal, state or local Law with respect to the subject matter of
      this
      Agreement or breaches of or defaults under this Agreement.

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    Section
      8.10.  Indemnification
      Procedures for Remedial Actions on Purchased Assets.
      

     

    (a)  Unless
      otherwise agreed to by the parties, Pfizer shall conduct and control the
      management of a Remedial Action at the Facility or the Purchased Assets pursuant
      to a Third Party Claim related to Section 8.1(a)(i) of this Agreement with
      respect to an Excluded Environmental Liabilities. Pfizer must notify Purchaser,
      within 30 days of receipt of notice of Purchaser’s claim for indemnification for
      such matter, that (i) it intends to undertake said responsibility or (ii) that
      more information is needed from Purchaser before Pfizer can reasonably determine
      that Purchaser’s claim is subject to indemnification pursuant to this Agreement.
      Purchaser shall promptly respond to such requests for information (to the extent
      such information is reasonably available to Purchaser) and, within the earlier
      of 30 days of receipt of such information and 60 days of receipt of said notice
      of Purchaser’s claim for indemnification, Pfizer shall notify Purchaser as to
      whether it shall undertake the Remedial Action. Prior to a determination by
      Pfizer that it will undertake a Remedial Action pursuant to this Section 8.10,
      Purchaser shall take only those actions necessary to comply with applicable
      Environmental Laws or address conditions that pose an immediate and acute health
      risk (unless additional actions are approved by Pfizer).

     

    (b)  In
      undertaking a Remedial Action pursuant to this Section 8.10, Pfizer shall retain
      a qualified independent environmental consultant, which consultant shall be
      subject to Purchaser’s approval (such approval not to be unreasonably delayed or
      withheld). Pfizer shall (i)
      undertake such Remedial Action to meet the Applicable Remedial Action Standards
      in a prompt and expeditious fashion, provided that Pfizer may exercise its
      rights, including its due process right, to contest any requirement imposed
      or
      determination made by the appropriate Government Authority with respect to
      the
      contemplated Remedial Action; and (ii)
      not
      cause, through its own action or inaction, any undue delay in obtaining written
      notice from the appropriate Governmental Authority that no further investigation
      or remediation is necessary with respect to the matter that is the subject
      of
      the indemnification claim to meet the Applicable Remedial Action Standards
      or,
      if no Governmental Authority is involved in such matter, a good faith written
      determination from its environmental consultant that no further investigation
      or
      remediation is required to bring the applicable property into conformance with
      Applicable Remedial Action Standards. Pfizer shall comply with all applicable
      Laws, including all applicable Environmental Laws, pertaining to its performance
      of Remedial Action pursuant to this Section 8.10. Pfizer shall provide copies
      to
      Purchaser of all written notices, final correspondence, submissions, final
      work
      plans, and final reports and shall give Purchaser a reasonable opportunity
      given
      the circumstances (at Purchaser’s own expense) to comment on any submissions
      Pfizer intends to deliver or submit to the appropriate Governmental Authority
      prior to said submission. Purchaser may, at its own expense, hire its own
      consultants, attorneys or other professionals to monitor the Remedial Action,
      including any field work undertaken by Pfizer, and Purchaser shall provide
      Pfizer with the results of all such monitoring. Notwithstanding the above,
      Purchaser shall not take any actions that shall unreasonably interfere with
      Pfizer’s performance of the Remedial Action. Pfizer shall undertake any such
      work required herein in a manner designed to minimize any disruption, to the
      greatest extent possible, with the conduct of operations at the Purchased
      Assets, consistent with the terms of the Access and Cooperation Agreement.
      Purchaser shall allow Pfizer reasonable access to conduct any of the work
      contemplated herein, in compliance with the terms of the Access and Cooperation
      Agreement, and shall fully cooperate with Pfizer in the performance of the
      Remedial Action, including providing Pfizer with reasonable access to employees
      and documents as necessary.

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    (c)  If
      agreed
      to by the parties that Purchaser will undertake the performance of a Remedial
      Action as provided in Section 8.10(a), Purchaser shall perform the Remedial
      Action to meet the Applicable Remedial Action Standards. Purchaser shall retain
      an environmental consultant, which consultant shall be subject to Pfizer’s
      approval (such approval not to be unreasonably delayed or withheld). Purchaser
      shall promptly provide copies to Pfizer of all notices, correspondence, draft
      reports, submissions, work plans, and final reports and shall give Pfizer a
      reasonable opportunity (at Pfizer’s own expense) to comment on any submissions
      Purchaser intends to deliver or submit to any appropriate Governmental Authority
      prior to said submission. Pfizer may, at its own expense, hire its own
      consultants, attorneys or other professionals to monitor the Remedial Action,
      including any field work undertaken by Purchaser, and Purchaser shall provide
      to
      Pfizer the results of all such field work. Notwithstanding the above, Pfizer
      shall not take any actions that shall unreasonably interfere with Purchaser’s
      performance of the Remedial Action. Pfizer’s decision to allow Purchaser to
      undertake Remedial Action hereunder shall not limit or affect Pfizer’s
      obligation to indemnify Purchaser for said Remedial Action to the Applicable
      Remedial Action Standards as otherwise provided in this Agreement.

     

    Section
      8.11.  Limitation
      on Indemnification for Third Party Claims for Remedial Action.
      Notwithstanding anything to the contrary in this Agreement, Pfizer’s
      indemnification obligations under Section 8.1(a)(i) with respect to Excluded
      Environmental Liabilities are subject to the provisions of this Section 8.11.
      Pfizer shall be responsible for the cost of such Remedial Action only to the
      extent necessary to meet the Applicable Remedial Action Standard. Pfizer shall
      not be responsible for those costs incurred in connection with a Remedial Action
      to the extent such costs arise from or are exacerbated by actions of Purchaser,
      including the initiation of Remedial Action by Purchaser or at the request
      of a
      third party in the absence of a requirement of Environmental Law after the
      Closing Date; provided, however, that, notwithstanding anything to the contrary
      contained in this Agreement, Purchaser shall not be restrained from reporting
      a
      Release of or contamination by Hazardous Materials as required by Environmental
      Law, or otherwise complying with Environmental Law or Permits, nor shall such
      actions relieve Sellers of any of their indemnification obligations under
      Article VIII. Furthermore, Pfizer shall not be responsible for costs incurred
      in
      connection with a Remedial Action unless such Remedial Action is required:
      (a)
      by Governmental Order; or (b) to respond to a Third Party Claim or
      action.

     

    Section
      8.12.  Coordination;
      Tax Treatment of Payments.
      To the
      extent of any inconsistency between the provisions of this Article VIII and
      the
      provisions of Article VII, Article VII shall control with respect to Taxes.
      

     

    Section
      8.13.  No
      Consequential Damages.
      NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, NO PARTY TO THIS
      AGREEMENT SHALL BE LIABLE TO OR OTHERWISE RESPONSIBLE TO ANY OTHER PARTY HERETO
      OR ANY AFFILIATE OF ANY OTHER PARTY HERETO FOR SPECIAL, CONSEQUENTIAL,
      INCIDENTAL OR PUNITIVE DAMAGES OR FOR LOST PROFITS THAT ARISE OUT OF OR RELATE
      TO THIS AGREEMENT OR ANY RELATED AGREEMENT OR THE PERFORMANCE OR BREACH HEREOF
      OR ANY LIABILITY RETAINED OR ASSUMED HEREUNDER; PROVIDED, HOWEVER, THAT THIS
      SECTION WILL NOT APPLY TO CLAIMS BASED ON A BREACH OF ANY PARTY’S
      REPRESENTATIONS AND WARRANTIES OF WHICH SUCH PARTY HAD KNOWLEDGE AT ANY TIME
      PRIOR TO THE DATE ON WHICH SUCH REPRESENTATION AND WARRANTY IS MADE OR ANY
      INTENTIONAL BREACH OR DEFAULT BY A PARTY OF ANY COVENANT OR
      OBLIGATION.

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      IX

     

    TERMINATION

     

    Section
      9.1.  Termination.
      This
      Agreement may be terminated at any time prior to the Closing:

     

    (a)  by
      written agreement of Purchasing Parties and Sellers;

     

    (b)  by
      either
      Purchasing Parties or Sellers, by giving written notice of such termination
      to
      the other party, if the Closing shall not have occurred on or prior to August
      22, 2006 (unless (i) the failure to consummate the Closing by such date shall
      be
      due to the failure of the party seeking to terminate this Agreement to have
      fulfilled any of its obligations under this Agreement or (ii) such date has
      been
      extended pursuant to the application of an Extension Period or Extension Periods
      as provided by Section 3.1(a), in which case this Agreement may be terminated
      at
      the end of such applicable Extension Period);

     

    (c)  by
      either
      Sellers or Purchasing Parties, if any court of competent jurisdiction or other
      competent Governmental Authority shall have
      issued a Governmental Order or taken any other action permanently restraining,
      enjoining or otherwise prohibiting the transactions contemplated by this
      Agreement and such Governmental Order or other action shall have become final
      and nonappealable;

     

    (d)  by
      Sellers, upon a breach of, or failure to perform, any material covenant or
      agreement on the part of any Purchasing Party set forth in this Agreement,
      or if
      any representation or warranty of any Purchasing Party hereunder shall be or
      becomes untrue, in any case such that the conditions set forth in Section 4.3(a)
      or Section 4.3(b) would not be satisfied, and such breach is incapable of being
      cured or is not cured within ten (10) Business Days following receipt of written
      notice thereof from either Seller; provided, that the right to terminate this
      Agreement under this Section 9.1(d) shall not be available to Sellers if any
      Seller has failed to perform in any material respect any of its obligations
      under or in connection with this Agreement; and

     

    (e)  by
      the
      Purchasing Parties, upon a breach of, or failure to perform, any material
      covenant or agreement on the part of any Seller set forth in this Agreement,
      or
      if any representation or warranty of any Seller hereunder shall be or becomes
      untrue, in any case such that the conditions set forth in Section 4.2(a) or
      Section 4.2(b) would not be satisfied, and such breach is incapable of being
      cured or is not cured within ten (10) Business Days following receipt of written
      notice thereof from any Purchasing Party; provided, that the right to terminate
      this Agreement under this Section 9.1(e) shall not be available to the
      Purchasing Parties if any Purchasing Party has failed to perform in any material
      respect any of its obligations under or in connection with this Agreement.
      

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    Section
      9.2.  Effect
      of Termination.
      In the
      event of the termination of this Agreement in accordance with Section 9.1
      hereof, this Agreement shall thereafter become void and have no effect, and
      no
      party hereto shall have any liability to the other parties hereto or their
      respective Affiliates, directors, officers or employees, except for the
      obligations of the parties hereto contained in this Section 9.2, in Sections
      7.1(b), 10.1, 10.7, 10.8, 10.9 and 10.11 hereof and the liquidated damages
      provided pursuant to the terms of Section 4(b) of the Escrow
      Agreement.

     

    Section
      9.3.  Remedies
      for Termination due to Breach.

     

    (a)  Breach
      by Sellers.
      If the
      Purchasing Parties terminate this Agreement pursuant to Section 9.1(e), the
      Purchasing Parties shall be entitled to exercise all rights and remedies which
      Purchaser may be afforded at law or in equity.

     

    (b)  Breach
      by the Purchasing Parties.
      If
      Sellers terminate this Agreement pursuant to Section 9.1(d), Sellers shall
      be
      entitled to, as its sole and exclusive remedy, to retain the Escrow Amount,
      plus
      interest thereon, pursuant to the terms of Section 4(b) of the Escrow Agreement
      as liquidated damages, it being irrevocably agreed by Sellers that such payment
      is not an unenforceable or unlawful penalty and is reasonable in light of the
      anticipated harm which would be caused by the Purchaser’s or the Purchasing
      Parties breach of this Agreement, the difficulty of proof of loss, the
      inconvenience and nonfeasibility of otherwise obtaining an adequate remedy,
      and
      the value of the transactions to be consummated hereunder. Sellers shall not
      be
      entitled to any other remedy at law or in equity, including but not limited
      to
      the right to seek specific performance of its rights and obligations under
      this
      Agreement. 

     

    ARTICLE
      X

     

    MISCELLANEOUS

     

    Section
      10.1.  Notices.
      All
      notices, demands and other communications given or delivered under this
      Agreement shall be delivered (i) by hand, (ii) sent by reputable overnight
      courier service for priority, next-day delivery, or (iii) sent by fax. All
      such
      notices in order to be effective shall be in writing and unless another address
      is specified in writing, shall be sent to the address or fax number indicated
      below: 

     

    If
      to
      Pfizer, to

     

    235
      East
      42nd
      Street

    New
      York,
      NY 10017

    Telephone:
      212-733-4935

    Facsimile:
      212-808-8924

    Attn: Jeffrey
      B. Kindler, Esq.

      Vice
      Chairman & General Counsel

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

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

     

    Akin
      Gump
      Strauss Hauer & Feld LLP

    590
      Madison Avenue

    New
      York,
      NY 10022

    Telephone:
      212-872-1064 

    Facsimile:
      212-8721-1002

    Attn:
      Trey Muldrow, Esq.

     

    If
      to
      Purchaser or CoastalXethanol, to:

     

    CoastalXethanol
      LLC

    c/o
      Xethanol Corporation, as Managing Member

    1185
      Avenue of the Americas, 20th
      Floor

    New
      York,
      NY 10036

    Telephone:
      646-723-4000

    Facsimile:
      646-723-4001

    Attn: Lawrence
      Bellone

     

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

     

    Ellis,
      Painter, Ratterree & Adams LLP

    2
      E.
      Bryan Street, 10th Floor

    Savannah,
      GA USA 31401

    Telephone:
      912-233-9700

    Facsimile:
      912-233-2281

    Attn: James
      K.
      Austin, Esq.

     

    Notice
      addresses may be changed at any time by notice
      as
      provided in this Section 10.1. Notice shall be effective and deemed received
      (i)
      when delivered, if delivered by hand, (ii) two days after being delivered to
      the
      courier service, if sent by courier, or (iii) upon receipt of confirmation
      of
      transmission, if sent by fax. 

     

    Section
      10.2.  Amendment;
      Waiver.
      Any
      provision of this Agreement may be amended or waived if, and only if, such
      amendment or waiver is in writing and signed, in the case of an amendment,
      by
      the parties hereto, or in the case of a waiver, by the party against whom the
      waiver is to be effective. No failure or delay by any party in exercising any
      right, power or privilege hereunder shall operate as a waiver thereof nor shall
      any single or partial exercise thereof preclude any other or further exercise
      thereof or the exercise of any other right, power or privilege.

     

    Section
      10.3.  Assignment.
      No
      party to this Agreement may assign any of its rights or obligations under this
      Agreement without the prior written consent of the other party hereto, except
      that Purchaser may, without such consent, assign the right to purchase the
      Purchased Assets or its obligation to assume the Assumed Liabilities hereunder
      to one or more of its Affiliates; provided,
      however,
      that no
      such assignment will relieve Purchaser of its obligations
      hereunder.

     

    Section
      10.4.  Entire
      Agreement.
      This
      Agreement (including all Schedules and Exhibits) and the other Transaction
      Agreements constitute the entire agreement between the parties hereto with
      respect to the subject matter hereof and thereof and supersedes all prior
      agreements and understandings, oral or written, with respect to such matters,
      other than any written agreement of the parties that expressly provides that
      it
      is not superseded by the Transaction Agreements.

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

    Section
      10.5.  Fulfillment
      of Obligations.
      Any
      obligation of any party to any other party under this Agreement, which
      obligation is performed, satisfied or fulfilled by an Affiliate of such party,
      shall be deemed to have been performed, satisfied or fulfilled by such
      party.

     

    Section
      10.6.  Parties
      in Interest.
      Except
      for the Purchaser Indemnified Parties and the Seller Indemnified Parties, this
      Agreement is made for the sole benefit of the parties hereto and nothing
      contained herein, express or implied, is intended to or shall confer upon any
      other Person any third party beneficiary right or any other legal or equitable
      rights, benefits or remedies of any nature whatsoever under or by reason of
      this
      Agreement.

     

    Section
      10.7.  Public
      Disclosure.
      Notwithstanding
      anything herein to the contrary, each of the parties to this Agreement hereby
      agrees with the other parties hereto that, except as may be required to comply
      with the requirements of any applicable Laws, and the rules and regulations
      of
      each stock exchange upon which the securities of either of the parties is
      listed, no press release or similar public announcement or communication shall,
      if prior to the Closing, be made or caused to be made concerning the execution
      or performance of this Agreement unless the parties shall have consulted in
      advance with respect thereto.

     

    Section
      10.8.  Return
      of Information.
      If for
      any reason whatsoever the transactions contemplated by this Agreement is not
      consummated, Purchaser shall promptly return to Pfizer all books and records
      furnished by any Seller or any of their respective Affiliates, agents,
      employees, or representatives (including all copies, summaries and abstracts,
      if
      any, thereof) in accordance with the terms of the Confidentiality
      Agreement.

     

    Section
      10.9.  Expenses.
      Pfizer
      and Purchaser shall bear their respective out-of-pocket expenses incurred in
      connection with the transactions contemplated hereby, including, without
      limitation, all legal, accounting, travel and other similar fees and expenses.
      Purchaser shall be responsible for the payment of any applicable taxes or fees
      payable in connection with the transfer of the Facility to Purchaser, except
      that Pfizer shall pay, or cause to be paid, the real estate transfer tax,
      Pfizer’s attorneys fees, the cost to record the deed of conveyance and any lien
      cancellations and the fees paid to Pfizer’s broker, Colliers International, and
      any other brokers or agents retained by Pfizer. Purchaser shall use the Early
      Closing Credit and all additional required amounts to pay all of its due
      diligence, closing and other costs related to this transaction, Purchaser’s
      attorneys fees and fees and commissions required to be paid to Sperry Van Ness
      and any other brokers or agents retained by Purchaser. In addition to any
      obligations set forth in Section 8.2(a), Purchaser agrees to indemnify Sellers
      against any claims for payment by any of the parties identified in the
      immediately preceding sentence. Utilities, taxes on the Purchased Assets and
      other like items shall be prorated as of the Closing Date. 

     

    Section
      10.10.  Schedules.
      Pfizer
      may amend or supplement any disclosure Schedules delivered pursuant to Article
      V
      of this Agreement by delivering amended or supplemented Schedules to Purchaser
      prior to the Closing. The disclosure of any matter in any one Schedule, so
      amended or supplemented, shall be deemed to relate only to the provisions in
      the
      Section of this Agreement to which such disclosure expressly relates and not
      to
      any other provision or Section in this Agreement, but shall expressly not be
      deemed to constitute an admission by Pfizer, Selling LLC, or Purchaser, or
      to
      otherwise imply, that any such matter is material for the purposes of this
      Agreement. If there is any inconsistency between the statements in this
      Agreement and those in the Schedules (other than an exception expressly set
      forth as such in the Schedules with respect to a specifically identified
      representation or warranty), the statements in this Agreement will
      control.

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    Section
      10.11.  Governing
      Law; Jurisdiction.
      

     

    (a)  This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York without regard to the conflicts of law rules of such
      state.

     

    (b)  With
      respect to any suit, action or proceeding relating to this Agreement (each,
      a
“Proceeding”),
      each
      party hereto irrevocably (i) agrees and consents to be subject to the
      jurisdiction of the United States District Court for the Southern District
      of
      New York or any New York State court sitting in New York City and (ii) waives
      any objection which it may have at any time to the laying of venue of any
      Proceeding brought in any such court, waives any claim that such Proceeding
      has
      been brought in an inconvenient forum and further waives the right to object,
      with respect to such Proceeding, that such court does not have any jurisdiction
      over such party. 

     

    Section
      10.12.  Guarantee
      of Purchaser Obligations.
      CoastalXethanol agrees to unconditionally guarantee the obligations of Purchaser
      set forth in Section 2.6 and Article VIII, provided, however, should Purchaser
      breach its obligations under Article VIII and fail to cure such breach within
      ten (10) Business Days after written notice of such breach is given by Sellers
      to Purchaser and CoastalXethanol, CoastalXethanol shall then fulfill its
      obligations under this Section 10.12 with respect to the asserted claim under
      Article VIII.

     

    Section
      10.13.  Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed an original, and all of which shall constitute one and the same
      agreement.

     

    Section
      10.14.  Headings.
      The
      heading references herein and the table of contents hereto are for convenience
      purposes only, do not constitute a part of this Agreement and shall not be
      deemed to limit or affect any of the provisions hereof.

     

    Section
      10.15.  Severability.
      Each
      provision of this Agreement shall be interpreted in such a manner as to be
      effective and valid under applicable Law, but if any provision of this Agreement
      is held to be prohibited by or invalid under applicable Law, such provision
      shall be ineffective only to the extent of such prohibition or invalidity,
      without invalidating the remainder of this Agreement.

     

    [Remainder
      of Page Intentionally Left Blank]

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    
      IN
        WITNESS WHEREOF, the parties have executed or caused this Agreement to be
        executed as of the date first written above.

       

      
        	 	 	 
	 	PFIZER
                INC.
	 
 	 
 	 
 
	 	By:  	/s/ Natale
                S.
                Ricciardi
	 	
                

                Name:
                  Natale S. Ricciardi

                Title:
                  Sr. VP, Pfizer, Inc.

              

      

      
         

        
          	 	 	 
	 	G.D.
                  SEARLE
                  LLC
	 
 	 
 	 
 
	 	By:  	/s/ Laura
                  Chenoweth
	 	
                  
Name:
                  Laura Chenoweth
	 	Title:
                  Vice President and Manager

        

        
           

          
            	 	 	 
	 	AUGUSTA
                    BIOFUELS,
                    LLC
	 
 	 
 	 
 
	 	By:  	
                    CoastalXethanol
                      Corporation,

                    its Managing
                      Member

                  

          

          
             

            
              	 	 	 
	 	By:  	/s/ Christopher
                      d’Arnaud-Taylor 
	 	
                      

                      Name:
                        Christopher d’Arnaud-Taylor

                      Title: Chairman
                        & CEO

                        
Xethanol
                        Corporation

                    

            

          

        

      

      
        
           

          
            	 	 	 
	 	COASTAL
                    XETHANOL
                    LLC
	 
 	 
 	 
 
	 	By:  	
                    Xethanol
                      Corporation, 

                    its Managing
                      Member

                  

          

          
             

            
              	 	 	 
	 	By:  	/s/ Christopher
                      d’Arnaud-Taylor
	 	
                      

                      
                        Name:
                          Christopher d’Arnaud-Taylor

                        Title:
                          Christopher
                          d’Arnaud-Taylor

                      

                    

            

          

        

         

      

    

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

    Exhibit
      A

     

    List
      of instruments and documents to be provided by Sellers

     

    
      	(a)  	
              Bill
                of Sale;

            

    

     

    
      	(b)  	
              Assignment
                and Assumption Agreement;

            

    

     

    
      	(c)  	
              a
                receipt for the payment of the Purchase Price at
                Closing;

            

    

     

    
      	(d)  	
              a
                good standing certificate of each Seller dated within ten (10) calendar
                days prior to the closing date;

            

    

     

    
      	(e)  	
              a
                certificate issued by an authorized officer of Pfizer certifying
                as to the
                fulfillment of the conditions set forth in Sections 4.2(a) and (b)
                hereof
                (the “Seller
                Closing Certificate”);

            

    

     

    
      	(f)  	
              any
                consents to assignment of Contracts obtained prior to Closing, the
                Required Consents and Permits that are material to the ownership
                and
                operation of the Facility; 

            

    

     

    
      	(g)  	
              executed
                affidavit of non-foreign status as described in Section 1445(b)(2)
                of the
                Code; 

            

    

     

    
      	(h)  	
              a
                broker lien waiver for any broker employed by
                Pfizer;

            

    

     

    
      	(i)  	
              the
                Deed;

            

    

     

    
      	(j)  	
              Georgia
                Transfer Tax Declaration; and

            

    

     

    
      	(k)  	
              evidence
                that no Georgia withholding tax (pursuant to the Official Code of
                Georgia
                Annotated Section 48-7-128) is due, or if no such evidence is provided,
                Purchaser may withhold such tax as required pursuant to Section 48-7-128
                of the Official Code of Georgia
                Annotated.

            

    

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

     

    Exhibit
      B

     

    List
      of instruments and documents to be provided by Purchaser

     

    
      	(a)  	
              Assignment
                and Assumption Agreement;

            

    

     

    
      	(b)  	
              Access
                and Cooperation Agreement; 

            

    

     

    
      	(c)  	
              a
                good standing certificate for Purchaser dated within ten (10) calendar
                days prior to the closing date; 

            

    

     

    
      	(d)  	
              a
                certificate issued by an authorized officer of Purchaser certifying
                as to
                the fulfillment of the conditions set forth in Sections 4.3(a) and
                (b)
                hereof (the “Purchaser
                Closing Certificate”);

            

    

     

    
      	(e)  	
               a
                broker lien waiver for any broker employed by Purchaser;
                and

            

    

     

    
      	(f)  	
              executed
                resale certificate on Form ST-5.

            

    

     

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

     

    Exhibit
      C

     

    Form
      of Assignment and Assumption Agreement

     

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

     

    Exhibit
      D

     

    Form
      of Bill of Sale

     

    
      
        
        

      

      
        D-1

        
          

        

      

      
        
        

      

    

    Exhibit
      E

     

    Second
      Amended and Restated Escrow Agreement

     

    [Fully
      executed copy to be inserted]

     

    
      
        
        

      

      
        E-1

        
          

        

      

      
        
        

      

    

     

    Exhibit
      F

     

    Form
      of Access and Cooperation Agreement

     

    
      
        
        

      

      
        F-1

        
          

        

      

      
        
        

      

    

     

    Exhibit
      G

     

    Description
      of Facility Parcel

     

     

    All
      those
      tracts or parcels of land lying and being in Richmond County, Georgia which
      are
      described as follows:

    

    Tract
      B-1
      (containing 30.28 acres, more or less), as shown in Plat Book 706, Page 982,
      Richmond County, Georgia Superior Court Records.

    

    TOGETHER
      WITH all right, title and interest in and to the appurtenant easement and other
      rights pertaining to the above-described tract, including but not limited to
      those set forth in:

    

    (a) Easement
      and Operating Agreement dated as of May 19, 2000 among Pharmacia Corporation,
      G.D. Searle & Co. and NSC Operating Company, recorded in Deed Book 687, Page
      2244, Richmond County, Georgia Superior Court records, as amended by First
      Amendment to Easement and Operating Agreement dated as of August 31, 2001 among
      The NutraSweet Company (formerly known as NSC Operating Company) and G.D. Searle
      LLC (formerly known as G.D. Searle & Co.), recorded in Deed Book 795, Page
      1349, aforesaid records; and

    

    (b) Easement
      Agreement dated January 26, 2001 between Georgia Power Company and G.D. Searle
      & Co., recorded in Deed Book 716, Page 804, aforesaid records.

    

    
      
        
        

      

      
        G-1

        
          

        

      

      
        
        

      

    

    Exhibit
      H

     

    Description
      of Remaining Parcel

     

    All
      those
      tracts or parcels of land lying and being in Richmond County, Georgia which
      are
      described as follows:

    

    Tract
      B-3
      (containing 10.6 acres, more or less), as shown in Plat Book 199, Page
      2011-2018, aforesaid records.

    

    TOGETHER
      WITH all right, title and interest in and to the appurtenant easement and other
      rights pertaining to the above-described tract, if any.

    

    
      
        
        

      

      
        H-1Exhibit
      10.30

    ASSET
      PURCHASE AGREEMENT

    

    

    This
      Asset Purchase Agreement (the "Agreement"
      or
“agreement”) is entered into as of August 7, 2006, by and between Carolina
      Fiberboard Corporation LLC
      (“CFC”),
      as
      seller (hereinafter referred to as the "Seller"),
      Victor
      Kramer
      ( the
“Principal”),
      and
Xethanol
      Corporation,
      as
      buyer (hereinafter, the “Buyer”);
      and,
      on the terms and conditions set forth below, Sellers have agreed to sell to
      Buyer, and Buyer has agreed to buy from Sellers, substantially all of the
      business and assets of Sellers. Now, therefore, in consideration of the
      premises, the mutual covenants, the representations and warranties, and the
      purchase price set forth herein, and other good and valuable consideration,
      the
      receipt and sufficiency of which is hereby acknowledged, the parties hereto
      each
      agrees as follows:

    

    1.
      Effective
      Time of Closing.
      The
      closing of the transactions contemplated hereby (the “Closing”)
      will
      take place on such date and at such time as shall be mutually agreed upon by
      the
      parties hereto, but shall not occur later than 4:00 p.m., EST, on that date
      which is thirty
      (30) days
      after the effective date of this Agreement. The closing shall be conducted
      at or
      through the offices of Buyer’s title insurance company or attorney.
      Notwithstanding anything to the contrary, the effective time of the purchases
      and sales contemplated hereby shall be as of the opening of all business on
      the
      date of Closing (the "Effective
      Time").

    

    2.
      Sale
      and Conveyance of Business and Assets.
      

    

    (a)
      At
      Closing and as of the Effective Time, Seller shall sell, transfer, assign,
      convey and deliver to Buyer good and marketable title in and to all assets
      of
      Sellers of any kind or nature, whether real, personal, tangible and/or
      intangible, and wherever located or acquired, including but not limited to
      the
      following: accounts receivable; real property; tangible and intangible property;
      business; goodwill; prepaid expenses; logos, tradenames, trademarks,
      servicemarks, copyrights, internet domain names and registrations, all of
      Sellers’ “Proprietary
      Rights”
      (as
      defined below), and any other intellectual property rights, along with the
      exclusive right to use the same; inventory; work in process; books of account;
      furniture, fixtures, equipment, vehicles, computer equipment, software and
      files, supplies, and other such equipment or articles of personal property
      of
      any nature whatsoever, specifically including but not limited to the items
      listed on the attached Exhibit
      "A";
      all of
      the Sellers’ records of any nature, including but not limited to customer lists,
      supplier lists, vendor lists, correspondence and files; subject to the
      provisions of Item
      3
      regarding liabilities, all contract rights and all contracts, arrangements
      and
      agreements with the Seller’s respective vendors, suppliers, contractors, and
      customers; and all permits, licenses, authorizations and other like items;
      provided,
      however,
      that
      notwithstanding anything to the contrary, Sellers shall not sell, and shall
      retain, all cash on hand at the Effective Time and also all of those items,
      if
      any, listed on the attached Exhibit
      “B”.
      All
      items being sold by Seller to Buyer under this agreement are hereinafter
      referred to collectively and/or individually as the "Assets".

    

    (b)
      At
      Closing, Seller shall execute and deliver to Buyer a bill of sale in a form
      reasonably approved by Buyer which conveys to Buyer, with full and general
      warranties of title, good and marketable title in and to the Assets owned by
      Seller, free and clear of all liens, security interests, mortgages, pledges,
      covenants, assessments, title defects, claims, encumbrances, recorded or
      unrecorded leases, easements or licenses, taxes, claims, options, liabilities,
      commitments, charges, restrictions, and other obligations of any nature
      whatsoever , except for those personal property taxes that are not then due
      and
      payable for the current tax year(hereinafter, all such liens, security
      interests, mortgages, etc. are referred to collectively and individually as
      the
"Encumbrances").
      

    

    (c)
      At
      Closing and as of the Effective Time, Seller shall sell, transfer, assign,
      convey and deliver to Buyer good and marketable title in and to all of the
      real
      property and improvements owned by Seller, including but not limited to that
      shown on attached Exhibit
      “C”
      (hereinafter, the property listed on said exhibit is referred to collectively
      as
      the “Real
      Property”),
      free
      and clear of all Encumbrances, excepting only the following matters: (i) ad
      valorem taxes not yet due and payable for the current and future years, (ii)
      those items listed on attached Exhibit
      “D”,
      (iii)
      easements for public utilities or rights-of-way of record at the date hereof,
      and (iv) except as provided in this Agreement, local laws, codes or ordinances
      at the date hereof, none of which items in clauses 2(ii), 2(iii) or 2(iv)
      adversely affect the use or value of said real property in any material respect
      or could reasonably be expected to prohibit or restrict the development or
      use
      of the Real Property as an ethanol production or distribution facility (said
      permitted excepted matters are referred to collectively as the "Real
      Property Permitted Exceptions").
      At
      Closing, Seller shall execute and deliver to Buyer a warranty deed in recordable
      form reasonably approved by Buyer which conveys to Buyer, with full and general
      warranties of title, good, marketable and fee simple title in and to the Real
      Property, subject only to the Real Property Permitted Encumbrances.

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    (d)
      At
      Closing, Seller shall assign its ownership and other rights in and to Aganol
      Biorefineries, LLC, a North Carolina limited liability company, and its assets
      to Buyer and shall cause the organizer of Aganol Biorefineries, LLC to assign
      at
      Closing his/her/it’s ownership and other rights in and to Aganol Biorefineries,
      LLC and its assets to Buyer. 

    

    3. Liabilities
      Assumed/Not Assumed by Buyer.
      Notwithstanding anything in this Agreement to the contrary, Buyer, except for
      those specific items, if any, separately set forth and itemized on Exhibit
      “E”,
      shall
      not
      assume any liens, fines, penalties, judgments, costs, expenses, payables,
      contractual obligations or duties, litigation, liabilities or obligations of
      any
      kind or nature of Seller, including but not limited to those which exist as
      of
      the Effective Time or which are attributable to or arise from, in any way,
      the
      acts, omissions or operations of Seller prior to the Effective Time or Seller’s
      ownership, operation or use of any of the Assets prior to the Effective
      Time.

    

    4.
      Purchase
      Price, 

    

    (a)
      In
      consideration of Seller's performance of its covenants in this Agreement and
      its
      covenants in the Restrictive Covenants Agreement described hereinafter and
      the
      transfer and delivery of the Assets to Buyer, Buyer will assume at Closing
      those
      liabilities which Buyer has expressly agreed to assume under this Agreement
      and
      shall pay or deliver to Sellers at Closing the following:

    

    (1)  The
      sum of Four
      Million Dollars ($4,000,000)
      in
      immediately available certified funds, subject to adjustments and prorations
      which may be made under this or other items of this Agreement;

    

    (2)  That
      number of shares of the common stock of Xethanol Corporation (American Stock
      Exchange Symbol “XNL”) which is equal to the quotient of (a) Seven
      Million Four Hundred Forty Thousand Dollars ($7,440,000)
      divided
      by (b) the average closing price (the “Average
      Closing Price”)
      of XNL
      shares for the ten (10) trading days immediately preceding the date of Closing
      (for example, if the Average Closing Price was $15.00, then the number of shares
      would be 496,000). 

    

    Buyer
      previously has filed an unrelated registration statement, and the registration
      contemplated thereby has not yet become effective. Buyer cannot file the
      registration statement necessary to register the above-referenced shares until
      the pending registration is effective. However, Buyer agrees to exercise
      commercially reasonable efforts to have the registration statement for the
      registration of the above-referenced shares become effective as quickly as
      reasonably practicable after Closing and further agrees to file all necessary
      registration materials no later than ten days after the pending registration
      becomes effective; and

    

    (3)  Warrants
      to purchase Three Hundred Thousand (300,000) shares of the common stock of
      Xethanol Corporation (American Stock Exchange Symbol “XNL”) at that price per
      share which is equal to the Average Closing Price. Buyer agrees to exercise
      commercially reasonable efforts to have the registration statement for the
      registration of such shares become effective as quickly as reasonably
      practicable after Closing, and further agrees to file all necessary registration
      materials no later than ten days after the above-referenced pending registration
      becomes effective.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (b)
      The
      Kramer Shares. At
      Closing, Seller agrees to and shall assign to Vic Kramer that number of shares
      (the “Kramer
      Shares”)
      of the
      common stock of XNL received under Item 4(a)(2) which is equal to the quotient
      of (a) Six Million Dollars ($6,000,000) divided by (b) the Average Closing
      Price. Forty percent (40%) of the Kramer Shares shall be freely tradable once
      they are registered, and the remaining sixty percent (60%) of such shares shall
      be “locked up” and not tradable for the one year period immediately following
      the date of Closing.

    

    (c)
      The
      Management Team Shares. At
      Closing, Seller agrees to and shall assign the remainder of the shares of the
      common stock of XNL received under Item 4(a)(2) (the “Management
      Team Shares”,
      which
      are the shares remaining after subtracting the Kramer Shares from the total
      number of shares received under Item 4(a)(2)) to and among those persons listed,
      and in the manner or respective amounts set forth on, attached Exhibit
      “F”.
      Fifty
      percent (50%) of the Management Team Shares shall be “locked up” and not
      tradable for the one year period immediately following the date of
      Closing.

    

    (d)
      The
      Warrants.
      Warrants
      for 200,000 shares of the common stock of XNL shall not be exercisable for
      one
      (1) year after Closing, and warrants for the remaining 100,000 shares of the
      common stock of XNL shall be freely exercisable after Closing and when the
      shares of common stock underlying the warrants are registered. At Closing,
      Sellers agree to and shall assign the warrants to and among those persons
      listed, and in the manner or respective amounts set forth on, attached
Exhibit
      “G”.
      The
      warrants shall be in a form substantially similar to the form attached hereto
      as
      part of Exhibit
      “G.” 

    

    5.
      Closing
      Prorations.
      Subject
      to any other provisions of this Agreement, real and personal property taxes
      and
      special assessments, if any, utilities and other similar items customarily
      prorated at closing and relating to the Assets shall be apportioned between
      the
      buyer and seller thereof as of the Effective Time, with any item relating to
      periods ending on or prior to the Effective Time for the account of the seller
      thereof, and any item relating to periods beginning at or after the Effective
      Time for Buyer's account. To the extent Seller receives any rent, license,
      royalty or similar payments with respect to assets being sold hereunder, the
      same shall be prorated as of closing in the same fashion as provided for above
      in this paragraph. Final adjustments, and any required refund of payment,
      pursuant to this paragraph which cannot be made at Closing, or were not made
      at
      Closing, shall be made after Closing within ten (10) days of written demand
      therefore by any party.

    

    6.
      Restrictive
      Covenants Agreement; Consulting Agreement. 

    

    (a)  As
      material inducement for Buyer entering into and consummating the transactions
      contemplated by this Agreement, Seller agrees to abide by the restrictive
      covenants set forth on attached Exhibit
      “N”.

    

    (b)  As
      material inducement for Buyer entering into this Agreement and as a condition
      precedent to Buyer’s consummating the purchases and sales contemplated hereby,
      (i) Doug McCullaugh, Kurt Creamer and John Toupalik each shall have agreed
      with
      Buyer within fourteen days after the effective date of this Agreement on a
      mutually agreeable form of employment agreement providing for such individual’s
      employment after Closing, which agreements shall be attached to this Agreement
      within such 14-day period as part of Exhibit
      “H”
      hereto,
      and (ii) Doug McCullaugh, Kurt Creamer and John Toupalik each shall execute
      and
      deliver at Closing such individual’s said employment agreement.

    

    (c)  As
      material inducement for Buyer entering into this Agreement and as a condition
      precedent to Buyer’s consummating the purchases and sales contemplated hereby,
      (i) Don Lengel and Branat, LLC (a company owned by Vic Kramer) each shall have
      agreed with Buyer within fourteen days after the effective date of this
      Agreement on a mutually agreeable form of consulting agreement providing for
      such individual’s or entity’s provision of consulting services after Closing,
      which agreements shall be attached to this Agreement within such 14-day period
      as part of Exhibit
      “I”
      hereto,
      and (ii) Don Lengel and Branat, LLC each shall execute and deliver at Closing
      such individual’s or entity’s said consulting agreement.

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    7. Representations
      and Warranties of Sellers.
      As a
      material inducement to Buyer to enter into this Agreement, Seller hereby makes
      to Buyer the representations and warranties set forth in this Item 7 as of
      the
      date of this Agreement and as of the Effective Time. If the Closing occurs,
      then
      each of the representations and warranties set forth in this Item 7 will be
      deemed to be re-made by Sellers as of the time of the Effective Time and Closing
      as an inducement to the Buyer to consummate the closing transactions
      contemplated by this Agreement. Each of the representations and warranties
      set
      forth in this Item 7 shall survive the Effective Time and the Closing of the
      transactions contemplated hereby for a period of eighteen (18) months from
      the
      date of Closing.

    

    (a)
      CFC
      is a limited liability company duly organized, validly existing and in good
      standing under the laws of the State of North Carolina. Seller has full power
      and authority to conduct its business and to execute and deliver this Agreement
      and to consummate the transactions contemplated hereby. No filing with or
      consent of any governmental authority or other person or entity is required
      in
      connection with the consummation by Seller of the transactions contemplated
      hereby. All action of Seller or its members and/or managers necessary to
      authorize the execution, delivery and performance of this Agreement, and the
      consummation of the transactions contemplated hereby, has been taken. This
      Agreement has been duly executed by Seller and constitutes the legal, valid
      and
      binding obligation of Seller, enforceable against each Seller in accordance
      with
      its terms. 

    

    (b)
      With
      respect to Seller, neither the execution, delivery nor performance by Seller
      of
      this Agreement nor the consummation by Seller of the transactions contemplated
      hereby or thereby, will (i) conflict with, or violate, Seller’s articles of
      organization or operating agreement or other similar documents relating to
      corporate governance, (ii) conflict with, violate or give rise to a right of
      termination under, any agreement, contract or instrument by which Seller is
      bound or to which Seller or any of its assets or securities are subject
      (including but not limited to any covenant requiring that Seller obtain the
      consent of any third party to close the transactions contemplated hereby),
      (iii)
      violate any law, including but not limited to any laws, rules, regulations
      or
      ordinances applicable to Seller or the Assets, (iv) adversely affect any permit,
      license or authorization relating to Seller or its Assets, or (v) adversely
      affect any right, title and interest in and to the Proprietary Rights of Seller
      or the ability of the Buyer to use said Proprietary Rights. No consent, approval
      or other action by any federal, state, provincial, or local governmental
      authority is required in connection with the execution and delivery by Seller
      of
      this Agreement or the consummation by Seller of the transactions contemplated
      hereby. 

    

    (c)
      Seller is the sole owner of and has, and will deliver to Buyer at Closing good
      and marketable title in and to all of the Assets (other than the Real Property
      which is addressed in paragraph 7(d)(i) below), free and clear of all
      Encumbrances. 

    

    (d)
      Real
      Property Matters.

    

    (i)
      CFC
      is the sole owner of and has, and will deliver to Buyer at Closing, good and
      marketable title in and to the Real Property, free and clear of all Encumbrances
      other than the Real Property Permitted Exceptions, and there are no liens or
      security instruments outstanding against or otherwise encumbering the Real
      Property which shall not be fully paid, satisfied and cancelled at Closing.
      No
      person
      other than Seller (or Buyer hereunder) has any right, option, lease, easement,
      license, title or other interest of any kind in, over or to any part of the
      Real
      Property or any timber, water, minerals, or crops thereon or thereunder; there
      is no person other than Seller in possession of or with any rights to come
      on or
      occupy any part of the Real Property, whether as a tenant or
      otherwise.

    

    (ii)
      The
      use and operation of the Real Property by Sellers does not violate in any
      material respect any instrument of record or agreement affecting the Real
      Property. There is no violation of any covenant, condition, restriction,
      easement or order of any federal, state or local governmental authority having
      jurisdiction over such property or of any other person or entity entitled to
      enforce the same affecting the Real Property or the use or occupancy thereof.
      The
      Real
      Property abuts and has permanent access to and from a public road.

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (iii)
      Seller and Seller’s current use of the Real Property each is in compliance with
      all applicable building, zoning, subdivision and other land use and similar
      laws, rules, codes, orders, regulations, or ordinances affecting the Real
      Property (collectively, the “Real Property Laws”), and Seller, except as
      provided for below in this paragraph with respect to the proposed use of the
      Real Property to produce or distribute ethanol or related products, has not
      received any notice of violation or claimed violation of any Real Property
      Law
      for its current use. There is no pending or, or to the knowledge of Seller,
      anticipated change in any Real Property Law that will have or result in a
      material adverse effect upon the ownership, alteration, use, occupancy or
      operation of the Real Property or any portion thereof. The current use by Seller
      of the Real Property is not dependent on a nonconforming use or other consent
      or
      approval of a governmental authority. However, the proposed use of the Real
      Property or any portion thereof for ethanol production and related activities
      is
      dependent on a nonconforming use or other consent or approval of a governmental
      authority (specifically Nash County, North Carolina must approve the Special
      Use
      Permit described on attached Exhibit
      “J”)
      the
      absence of which would materially limit the use of such properties or assets
      held for use in connection with, necessary for the conduct of, or otherwise
      material to, the businesses conducted or proposed to be conducted by Sellers
      or
      ethanol production and related activities, and Seller is in the process of
      obtaining the consents and approvals for such use. Exhibit
      “J”
      sets
      forth a description of the current activities of Seller or its affiliate, Aganol
      Biorefineries, LLC, with regards to the approval of the Real Property for use
      as
      an ethanol production and distribution facility. There
      is
      no pending or threatened litigation, condemnation, dispute or assessment
      affecting any part of the Real Property or its boundary lines. Seller is not
      currently doing any business on the property and therefore, Seller and Buyer
      both acknowledge and agree that Seller is not currently doing any business
      on
      the property for purposes of this Section 7(d)(iii) and this
      Agreement.

    

    (e)
      Environmental
      Matters. 

    

    (i)
      Seller has not been notified by any relevant governmental authority that any
      Environmental
      Permit on or relating to the Real Property or operations thereon
      will be
      modified, suspended, canceled or revoked, or cannot be renewed in the ordinary
      course of business. Seller represents that it does not have in place any
      Environmental Permit on or relating to the Real Property or operations
      thereon.

     

    (ii)
      The
      Seller and its affiliates have complied with all applicable Environmental Laws
      (see definitions at Item 33) pertaining to the Real Property (and the use,
      ownership or transferability thereof) and the business conducted by Seller.
      No
      person or entity has alleged any violation by Seller and their respective
      affiliates of any applicable Environmental Law relating to the conduct of the
      business conducted by Seller or the use, ownership or transferability of the
      Real Property by Seller.

     

    (iii)
      Except as set forth in Exhibit
      “K”,
      neither
      Seller nor any of its respective affiliates has caused or taken any action
      that
      has resulted or may result in, or has been or is subject to, any liability
      or
      obligation relating to (i) the
      environmental conditions on, under, or about any Real Property, the Assets
      or
      other properties or assets owned, leased or used by the Seller held for use
      in
      connection with, necessary for the conduct of, or otherwise material to, the
      business conducted by Seller, or (ii) the
      past or present use, management, handling, transport, treatment, generation,
      storage or Release (see definitions at Item 33) of any Hazardous Substances
      by
      or for Seller or any of its affiliates (see definitions at Item 33), except
      for
      any such liabilities and obligations that are not material to the business
      conducted by Seller or have not had or resulted in, and will not have or result
      in, a material adverse effect upon the value, ownership, use, occupancy or
      operation of the Real Property or any material portion thereof.

    

    (iv)
      Except as set forth in Exhibit
      “K”,
      none of
      current or past operations of Seller, or any by-product thereof, and none of
      the
      currently or formerly owned property or assets of Seller, including without
      limitation the Assets or the Real Property, is related to or subject to any
      investigation or evaluation by any Governmental Authority (see definitions
      at
      Item 35), as to whether any Remedial Action (see definitions at Item 35) is
      needed to respond to a Release or threatened Release of any Hazardous Substances
      or is now subject to any Remedial Action. Seller is not subject to any
      outstanding order, judgment, injunction, decree or writ from, or contractual
      or
      other obligation to or with, any Governmental Authority or other Person in
      respect of which the Buyer may be required to incur any Environmental
      Liabilities and Costs (see definitions at Item 35) arising from the Release
      or
      threatened Release of a Hazardous Substance. None of the Real Property is,
      and
      neither Seller nor any of its respective Affiliates has transported or arranged
      for transportation (directly or indirectly) of any Hazardous Substances relating
      to the Assets or the Real Property to any location that is, listed or proposed
      for listing under CERCLA, or on any similar state list, or the subject of
      federal, state or local enforcement actions or investigations or Remedial
      Action. No work, repair, construction or capital expenditure is required or
      planned in respect of the Assets pursuant to or to comply with any Environmental
      Law, nor has Seller and its respective affiliates received any notice of any
      such requirement, except for such work, repair, construction or capital
      expenditure as is not material and is in the ordinary course of
      business.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (v)
      The
      Seller has disclosed and made available to the Buyer all information, including
      without limitation all studies, analyses and test results, in the possession,
      custody or control of Seller and its respective affiliates relating to
      (i) the environmental conditions on, under or about the Real Property, and
      (ii) Hazardous Substances used, managed, handled, transported, treated,
      generated, stored or Released by Seller or any other person or entity at any
      time on any Real Property, or otherwise in connection with the use or operation
      of the properties or assets used in or held for use in connection with the
      Business.

    

    (e)
      True
      and correct copies of all written contracts, agreements, understandings or
      other
      arrangements creating, evidencing or setting forth any of those any costs,
      expenses, payables, duties, obligations or liabilities listed on Exhibit
      “E” (the
      “Liabilities
      Exhibit”),
      if
      any, are attached to said Liabilities Exhibit, and summaries of all oral
      contracts, agreements, understandings or other arrangements creating, evidencing
      or setting forth any of those any costs, expenses, payables or liabilities
      listed on Liabilities Exhibit are set forth on said Liabilities Exhibit. All
      of
      the contracts described in said Liabilities Exhibit are in full force and
      effect, are current, and are not subject to any defaults or set-off or to any
      grounds of which a Seller is aware and which may give rise to any default or
      set-off, and that any necessary consents to the assignment of such contracts
      which are to be assigned hereunder to Buyer have been obtained.

    

    (f)
      There
      are no outstanding judgments against or encumbering, or purporting to encumber,
      Seller or any of the Assets. There is no litigation or proceeding (including
      but
      not limited to investigations and inspections) pending or, to the knowledge
      of
      Seller, threatened against Seller or any of the Assets. 

    

    (g)
      All
      taxes of or pertaining to any Seller, the Real Property or the other Assets
      (including but not limited to withholding, social security, unemployment
      insurance, sales, use, property, and other taxes or assessments) required to
      be
      paid have been paid. All tax or franchise returns and reports of any nature
      required to be filed by Seller have been filed. All tax or franchise returns,
      reports and documents required to be filed by Seller, and all taxes required
      to
      be paid by Seller, prior to the Effective Time or Closing shall have been paid
      or filed on or before such time. With respect to each Seller, there are no
      audits or investigations pending or any outstanding agreements or waivers
      extending the statutory period of limitations applicable to any federal, state
      or local tax or tax return or document for any period. There are no determined
      tax deficiencies, proposed tax assessments or tax liens against any Seller
      or
      the Assets. Any ad valorem taxes on the Assets not yet due and payable shall
      be
      prorated , as of the Effective Time between Buyer and Seller, as the context
      so
      requires.

    

    (h)
      The
      Seller, the Real Property, and the Assets each have complied with, is in
      compliance with, and will be in compliance with at Closing, all federal, state,
      provincial, local and other applicable laws, rules, regulations, orders and
      ordinances affecting a Seller, the Real Property, the Assets, and/or the current
      conduct of the business or operations of Seller, and Seller has all licenses,
      permits, authorizations and like items required or necessary to own or conduct
      all of its businesses as currently conducted and/or its assets. Seller is in
      the
      process of acquiring licenses, permits, authorizations and like items required
      or necessary for the conduct of ethanol production and related activities at
      the
      Real Property. 

    

    (i)
      All
      files, records and incidental documentation of Seller relating to its business
      and/or the Assets (including, but not limited to, all contracts, computer
      records, general ledgers, books and records, accounting and tax records, lists
      of past, current and prospective customers, lists of vendors, contractors or
      suppliers, contract information, credit records and other information maintained
      by Seller) are kept in the ordinary course of business in accordance with
      Seller's customary business practice, are located at Seller’s principal place of
      business, and will be delivered to Buyer at Closing.

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (j)
      Seller has not used any trade names or any assumed or fictitious names in
      connection with the operation of its business during the last five years. None
      of the Proprietary Rights of Seller included in the Assets conflict with or
      infringe upon the rights of any other person or entity, nor is Seller aware
      of
      any claim, whether currently pending, outstanding or threatened, or of grounds
      for any claim, by any third party contesting the validity, enforceability,
      use
      or ownership of any of the Proprietary Rights of Seller.
      Seller
      owns and possesses all right, title and interest in and to any and all of the
      Proprietary Rights of Seller necessary for, or now used in, the operation of
      its
      business as currently conducted, free and clear of all Encumbrances. None of
      the
      Proprietary Rights of Seller included in the Assets is used by Seller under
      a
      license or other similar arrangement. To the best of the knowledge of Seller,
      no
      person or entity is infringing upon any of the Proprietary Rights of Seller,
      and
      the loss or expiration of any of the Proprietary Rights used by Seller is not
      threatened, pending or reasonably foreseeable. 

    

    (k)
      The
      gross liability of Seller for all Trade Arrangements is less than or equal
      to
$500.00.
      “Trade
      Arrangements”
      shall
      mean all barter arrangements and unexpired merchandise and other trades for
      merchandise and services, whether owing to or accruing to the benefit of Seller
      or owed by or a liability or obligation of Seller. Buyer is not assuming under
      this Agreement any Trade Arrangements or liability therefore. 

    

    (l)
      Attached hereto as Exhibit
      “L”
      is a
      schedule (“Schedule
      of Seller’s Employees”)
      showing
      (i) each employee of Seller and (ii) each independent contractor of each Seller
      which regularly provides services to Seller, and for each employee, such
      employee’s start date and current rate of pay and vacation, which schedule
      Seller represent and warrant is complete, true and correct. 

    

    (m)
      No
      representation or warranty by Seller contained in this Agreement nor any
      statement or certificate furnished or to be furnished by or on behalf of Seller
      to the Buyer in connection herewith or pursuant hereto contains or will contain
      any untrue statement of a material fact, or omits or will omit to state any
      material fact required to make the statements contained herein or therein not
      misleading. There is no fact (other than matters of a general economic or
      political nature which do not affect the Business uniquely) known to Seller
      that
      has not been disclosed by Seller to the Buyer that might reasonably be expected
      to have or result in a materially adverse effect to the business or assets
      being
      purchased hereunder.

    

    (n)
      Although Aganol Biorefineries, LLC, a North Carolina limited liability company,
      has been formed with the North Carolina Secretary of State, no operating
      agreement has been entered into with respect to such company, and such company
      has no members, assets or liabilities and has not yet conducted business. Seller
      owns all right, title and interest in to Aganol Biorefineries, LLC and to
      complete the organization of such company, all of which shall be conveyed to
      Buyer at closing free and clear of all Encumbrances. There are no, and have
      never been any, employees of Seller or Aganol Biorefineries, LLC.

    

    8. Representations
      and Warranties of Buyer.
      As a
      material inducement to Seller to enter into this Agreement, the Buyer hereby
      makes to Sellers the representations and warranties set forth in this
Item
      8
      as of
      the Effective Time and as of the Closing. Each of the representations and
      warranties set forth in this Item
      8
      shall
      survive the Effective Time and the Closing of the transactions contemplated
      hereby.

    

    (a)
      Buyer
      has full power and authority to conduct its business and to execute and deliver
      this Agreement and to consummate the transactions contemplated hereby. All
      action of the Buyer necessary to authorize the execution, delivery and
      performance of this Agreement, and the consummation of the transactions
      contemplated hereby, has been taken. This Agreement has been duly executed
      by
      the Buyer and constitutes the legal, valid and binding obligation of the Buyer,
      enforceable against the Buyer in accordance with its terms.

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (b)
      Neither the execution, delivery or performance by the Buyer of this Agreement
      nor the consummation by Buyer of the transactions contemplated hereby or
      thereby, will (i) conflict with, violate or give rise to a right of termination
      under, any agreement, contract or instrument by which Buyer is bound or to
      which
      Buyer or any of its assets are subject or (ii) violate any law applicable to
      the
      Buyer or its properties or any of Buyer’s organizational documents (if a
      corporation, its articles of incorporation and bylaws; if a limited liability
      company, its articles of organization and operating agreement). No filing with
      or consent, approval or other action by any federal, state, provincial, or
      local
      governmental authority or other person is required in connection with the
      execution and delivery by the Buyer of this Agreement and the consummation
      of
      the transactions contemplated hereby by Buyer. All corporate authority and
      approvals necessary for Buyer to execute this Agreement and the ancillary
      documents contemplated hereby and to consummate the transactions contemplated
      by
      this Agreement have been obtained.

    

    9.
      [Intentionally Deleted].

    

    10.
      Documents
      to be Delivered at Closing.
      In
      addition to the other items provided for in this Agreement, at Closing, Seller
      shall deliver the following items to Buyer, unless such items have been waived
      by Buyer prior to close: (i) settlement statements; (ii) consents to assignments
      and estoppel certificates relating to any contracts to be assigned and assumed
      in a mutually agreeable form; (iii) an assignment and assumption agreement
      with
      respect to any written contracts to be assumed hereunder in a form reasonably
      acceptable to Buyer; (iv) resolutions of the members and managers authorizing
      the sale contemplated hereby; (v) with respect to the Real Property, such
      customary closing documents as are needed for the sale of the Real Property,
      including but not limited to a general warranty deed conveying the Real Property
      to Buyer, owner’s affidavits, settlement statements, and such other
      documentation as may be needed by the title agent to issue an owners and/or
      lenders title insurance policy at Closing with respect to the Real Property
      or
      to otherwise consummate the purchase and sale of the Real Property; and (vi)
      such other customary closing documents as needed for the sale of Assets. In
      addition to the other items provided for in this Agreement, at Closing, Buyer
      shall execute and/or deliver to Seller the following items: (i) settlement
      statements; (ii) an assignment and assumption agreement in a form in a form
      reasonably acceptable to Buyer with respect to any written contracts to be
      assumed hereunder by Buyer; (iii) with respect to the Real Property, such
      customary closing documents as are needed for the purchase and sale of the
      Real
      Property, including but not limited to a settlement statements and such other
      documentation as may be needed by the title agent to consummate the purchase
      and
      sale; and (iv) such other customary closing documents as needed for the sale
      of
      Assets. 

    

    11.
      Further
      Assurances; Time of the Essence; Transition.
      From
      time to time prior to, at and after the Closing, each party hereto will execute
      all such instruments and take all such actions as another party, being advised
      by counsel, shall reasonably request in connection with carrying out and
      effectuating the intent and purpose hereof and all transactions and things
      contemplated by this Agreement, including, without limitation, the execution
      and
      delivery of any and all confirmatory instruments, cancellations, assignments,
      consents, deeds, bills of sale, and other instruments in addition to those
      to be
      delivered at Closing, and any and all actions which may reasonably be necessary
      or desirable to complete, evidence or document the transactions contemplated
      hereby. Time is of the essence of this Agreement. In order to facilitate the
      smooth transition of the Assets to Buyer, Seller agrees to, in addition to
      any
      other obligations required herein or in any agreement ancillary to this
      agreement, for the 90-day period after Closing, provide Buyer with such advice
      and introductions with respect to the operations, accounts, suppliers and/or
      vendors of the Sellers’ businesses being purchased and sold herunder as the
      Buyer may reasonably request - the primary obligation hereunder shall be to
      provide advice to Buyer regarding the procurement of raw materials, production,
      distribution and marketing and sales efforts and to introduce the Buyer to,
      and
      foster and maintain the Buyer’s relationship with, Seller’s existing and
      prospective accounts, contractors, customers, suppliers and vendors.

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    12. Indemnification.

    

    (a)
      Seller shall indemnify, defend, and hold Buyer harmless from and against any
      and
      all damages, claims, losses, expenses, costs, obligations, judgments, and
      liabilities including, but not limited to, reasonable attorneys' fees and
      expenses of litigation generally (court costs, costs of experts and court
      reporters, etc.) at trial and on appeal (hereinafter, all such damages, claims,
      losses, expenses, costs, obligations, judgments and liabilities are referred
      to
      collectively and individually as the "Losses
      and Expenses"),
      suffered or incurred by Buyer by reason of, or arising out of, (1) any breach
      of
      representation or warranty made by Seller in or under this Agreement, (2) the
      failure of Seller to perform or fulfill any of its/his/her covenants or
      agreements set forth in this Agreement, (3) any litigation, proceeding, or
      claim
      by any third party (whenever brought or instituted) relating to the Real
      Property or to the business, ownership or operations of Seller or any of the
      Assets prior to the Effective Time, and (4) any liability of Seller not
      expressly assumed by Buyer under this Agreement. 

    

    (b)
      Buyer
      agrees that it shall indemnify, defend, and hold Seller harmless from and
      against any and all Losses and Expenses (as defined above) suffered or incurred
      by Seller by reason of, or arising out of, (1) any breach of representation
      or
      warranty made by Buyer pursuant to this Agreement, (2) any failure by Buyer
      to
      perform or fulfill any of its covenants or agreements set forth in this
      Agreement, (3) any litigation, proceeding, or claim by any third party relating
      to Buyer’s acts or omissions after the Effective Time relating to the business,
      ownership or operations of Buyer or any of the Assets after the Effective Time,
      or (4) liabilities of the Buyer not expressly assumed by Seller under this
      Agreement.

    

    (c)
      If
      any party to this Agreement believes that it has suffered or incurred any Losses
      and Expenses, such party shall notify the other parties promptly in writing
      describing such Losses and Expenses, the amount thereof, if known, and the
      method of computation of such Losses and Expenses, all with reasonable
      particularity and containing a reference to the provisions of this Agreement
      in
      respect of which such Losses and Expenses shall have occurred. If any action
      at
      law or suit in equity is instituted by a third party with respect to which
      any
      of the parties intends to claim any liability or expense as Losses and Expenses
      under this Item
      12,
      such
      party shall promptly notify the indemnifying party or parties of such action
      or
      suit.

    

    (d)
      The
      indemnifying party under this Item
      12
      shall
      have the right to conduct and control, through counsel of its own choosing,
      any
      third party claim, action, or suit, but the indemnified party may, at its
      election, participate in the defense of any such claim, action, or suit at
      its
      sole cost and expense; provided that if the indemnifying party shall fail to
      defend any such claim, action, or suit, then the indemnified party may defend,
      through counsel of its own choosing, such claim, action, or suit and (so long
      as
      it gives the indemnifying party at least thirty (30) days' notice of the terms
      of the proposed settlement thereof and permits the indemnifying party to then
      undertake the defense thereof) settle such claim, action, or suit, and to
      recover from the indemnifying party the amount of such settlement or of any
      judgment and the costs and expenses of such defense. Neither the indemnified
      party nor the indemnifying party shall compromise or settle any third party
      claim, action, or suit without the prior written consent of the other party,
      which consent will not be unreasonably withheld or delayed.

    

    (e)
      Should Seller default or breach its obligations under this Item
      12
      and fail
      to cure same within thirty (30) days after Buyer gives written notice to the
      breaching party, then the Principals, jointly and severally, hereby agree to
      unconditionally guarantee the payment and performance of Sellers’ obligations
      under this
      Item
      12
      which
      are not cured within such thirty-day period; provided, however, that the total,
      aggregate liability of said persons to Buyer for Buyer's Losses and Expenses
      shall not exceed the total amount of the
      cash component of the purchase price
      paid by
      Buyer to Seller under this agreement above, except that this limitation of
      liability shall not apply or be effective if Buyer’s Losses and Expenses are
      attributable to the fraud or willful wrongful act or omission of a
      Seller.

    

    13.
      Affirmative
      Covenants of Sellers Pending Closing.
      Between
      the date hereof and the Effective Time, Seller shall: (a) give the Buyer and
      its
      representatives full access during normal business hours to the Real Property
      for property, environmental and other inspections and to all of the facilities,
      properties, books, records and documents pertaining to the assets to be
      purchased hereunder and Seller’s financial condition and results of operations,
      subject only to those limitations expressed herein, and shall furnish the Buyer
      such other information concerning the contracts, business and operations of
      Seller and the assets to be purchased hereunder as the Buyer may reasonably
      request, including general ledgers, books of account, financial statements
      and
      information, licenses, permits, agreements, contracts, title commitments or
      policies, environmental reports or studies, records and files of every character
      (excluding however, correspondence with legal counsel and any other
      attorney-client privileged records or documents, but this exclusion shall not
      excuse nondisclosure of any matter regarding which representations and
      warranties are made in Item 7 above); (b) maintain in effect adequate property,
      casualty and commercial general liability insurance on Seller’s business and the
      Real Property and Assets; (c) [intentionally deleted]; (d) carry on its business
      and keep its books of account, records, and files in the ordinary course of
      business, collect its accounts receivable in the ordinary course of business,
      and pay all accounts payable and other liabilities on a timely basis when such
      become due and payable (subject, however, to the right to contest the same
      in
      good faith with an adequate accrual); (e) maintain the property and assets
      to be
      purchased hereunder in the same condition they were in upon execution of this
      Agreement; and (f) use commercially reasonable best efforts to preserve the
      businesses to be purchased hereunder intact, retain as at present Seller’s
      respective employees and independent contractors, and preserve the goodwill
      of
      Seller’s suppliers, customers, vendors, and others having business relations
      with Seller. 

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    14.
      Negative
      Covenants of Sellers Pending Closing.
      Between
      the date hereof and the Effective Time, without the prior written consent of
      the
      Buyer, Seller shall not, except in the ordinary course of business: (a) enter
      into any new contracts, arrangements or commitments regarding the businesses
      to
      be purchased hereunder or the Assets outside of the normal, routine and ordinary
      course of business or permit any increase or changes in the compensation of
      any
      employee other than normal raises based on standard cost-of-living adjustments
      or such other raises which may be reasonably approved by Buyer; (b) cause or
      allow to exist any creation, assumption or guaranty of any pledge or other
      lien,
      encumbrance or obligation or charge upon or against any of the Assets or the
      businesses to be purchased hereunder, other than the Permitted Encumbrances;
      (c)
      enter into any sale, assignment, lease, hypothecation or other transfer or
      disposition by operation of law or otherwise, of any of the Assets, the Real
      Property, or the businesses to be purchased hereunder; (d) engage in any act
      outside the normal course of business; (e) engage in discussions with any party
      other than Buyer concerning any possible sale of the businesses or assets to
      be
      purchased hereunder; or (f) permit or cause any material adverse change in
      the
      businesses or assets to be purchased hereunder which may be considered
      materially adverse to the Buyer hereunder.

    

    15.
      Conditions
      Precedent to the Buyers' Obligation to Close.
      Notwithstanding any other provision of this Agreement to the contrary, the
      obligations of the Buyer hereunder are, at the option of the Buyer, subject
      to
      the compliance with, or the satisfaction or fulfillment of, each of the
      following conditions precedent, at or prior to the Closing: (i) Seller shall
      have performed and complied with all agreements, obligations and covenants
      required by this Agreement, and all of their respective representations and
      warranties shall be true and correct; (ii) Seller shall own and be able to
      transfer the Assets (other than the Real Property) free and clear of all
      Encumbrances except the Permitted Encumbrances, and Seller shall own and be
      able
      to transfer the Real Property free and clear of all Encumbrances except the
      Real
      Property Permitted Encumbrances; (iii) the Real Property and the other property
      and assets comprising the Assets shall remain in substantially the same
      condition as on the date hereof and there shall have been no material adverse
      change in the businesses or assets to be purchased hereunder; (iv) all
      Governmental Approvals necessary to consummate the transactions contemplated
      hereby have been obtained, and Nash County, North Carolina (and any city or
      municipality in which the Real Property is located, if any) shall have issued
      such approvals as are required to permit Aganol Biorefineries, LLC to produce
      ethanol at the Real Property upon Closing; (v) consummation of the transactions
      contemplated hereby shall not have been restrained, enjoined or otherwise
      prohibited by any Applicable Law, including any order, injunction, decree or
      judgment of any court or other Governmental Authority, and no proceeding with
      respect to the application of any such Applicable Law to such effect shall
      be
      pending; (vi) Buyer shall have received the Environmental Assessment in a form
      satisfactory to Buyer (see Item 17(c) below); and (vii) with respect to all
      contracts and agreements which Buyer is acquiring hereunder from a Seller,
      Buyer
      has agreed in writing to assume, and whose terms require consent for assignment
      and/or assumption, Seller shall have obtained from all other parties to such
      agreements written consents to the such assignment to and/or assumption by
      Buyer
      and delivered same to Buyer, and, with respect to each such agreement and at
      Buyer's option, Seller shall have delivered to Buyer after Buyer's request
      an
      estoppel certificate executed by the other party to the agreement which provides
      that no default, or basis for default, to the agreement exists.

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    16. Conditions
      Precedent to Seller’s Obligations to Close. Notwithstanding
      any other provision of this Agreement to the contrary, the obligations of the
      Sellers hereunder are, at their option, subject to Buyer's compliance with
      each
      of the following conditions precedent: (a) Buyer shall have performed and
      complied with all agreements, obligations and covenants required by this
      Agreement; and (b) all Buyer's representations and warranties shall be true
      and
      correct in all respects. 

    

    17.
      Inspections. 

    

    (a)
      Commencing on the date hereof and continuing as long as this Agreement shall
      remain in force, Buyer shall have the right, upon 24 hour written notice to
      Seller, to go on the Property personally or through agents, employers,
      contractors and/or subcontractors for the purpose of making boundary line and
      topographical surveys, soil, groundwater or other environmental tests,
      inspections or surveys (including but not limited to related borings and
      samplings), and such other tests, analyses and investigations of the Property
      as
      Buyer or its lender deems desirable. Except as otherwise provided in this
      agreement, Buyer shall pay all costs incurred in making such surveys, tests,
      analyses and investigations. Buyer shall indemnify and hold harmless Seller
      from
      damages and claims arising from Buyer's entry on the Real Property under this
      paragraph.

    

    (b)
      Buyer
      may examine the title to the assets to be purchased hereunder prior to the
      Closing. Should any defect in the title to the Assets (other than the Real
      Property) be found other than the Permitted Encumbrances or should any defect
      in
      the title to the Real Property be found other than the Real Property Permitted
      Encumbrances, Seller will be provided with a written statement thereof and
      given
      until the Closing to correct the same; provided, however, that if Seller
      are unable to cure such defects before the above-referenced final date for
      Closing, then, notwithstanding anything to the contrary, the above-referenced
      final date for Closing may be extended by Buyer for an additional 30 days.
      If
      Seller are not able to correct any such title defects before the final date
      for
      closing, as the same may be extended, then Buyer shall have the option to (i)
      void this Agreement in writing before Closing is completed, in which case
      neither party shall have any further liability or obligation under this
      Agreement, or (ii) fully and finally waive such defects and proceed to close
      and
      accept title subject to all existing defects.

    

    (c)
      Buyer
      shall retain, at Buyer’s cost, environmental consultants and attorneys
      satisfactory to the Buyer to conduct an environmental assessment of the Real
      Property and the other assets to be purchased hereunder (the “Environmental
      Assessment”),
      to
      include physical inspections of the Real Property and such assets, equipment
      and
      facilities, review of all relevant records in the possession or custody or
      under
      the control of Seller, review of relevant governmental agency records and
      contact with governmental agency personnel, conduct of sampling activities
      and
      any other investigatory activities of a scope satisfactory to the Buyer. A
      condition precedent to Buyer’s obligations to close hereunder shall be Buyer’s
      receipt before Closing of the Environmental Assessment completed and in form
      and
      substance satisfactory to the Buyer. Should Buyer’s environmental consultants
      determine that the Property’s condition or history warrants testing or
      additional testing for the Environmental Assessment to be complete and such
      test
      results are not or cannot be received and reviewed by Buyer and its
      environmental advisors prior to the deadline for Closing, then Buyer and Seller
      shall attempt in good faith to negotiate and sign prior to the deadline for
      Closing a written amendment to this Agreement extending the deadline for Closing
      to permit the Environmental Assessment to be so completed and reviewed. If
      the
      Environmental Assessment, when complete, is not in form and substance
      satisfactory to the Buyer, or if by the deadline for Closing the Environmental
      Assessment is not complete and the parties have not entered into a written
      amendment providing for an extension as contemplated above, then Buyer shall
      have the option to (i) void this Agreement in writing before Closing is
      completed, in which case neither party shall have any further liability or
      obligation under this Agreement, or (ii) proceed to close subject to all
      existing environmental conditions.

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    18.
      Termination.
      This
      Agreement may be terminated at any time prior to the Closing Date:
      (a) by
      the written agreement of the Buyer and Seller; (a) by either Seller or the
      Buyer
      by written notice to the other party if the transactions contemplated hereby
      shall not have been consummated within five (5) days after the final deadline
      provided for the Closing under this Agreement, unless such date shall be
      extended by the mutual written consent of all parties; (c) by the Buyer by
      written notice to Seller if (i) Seller’s
      representations and warranties shall not have been true and correct in all
      respects or (ii) if any of the conditions set forth in Item 15 shall not have
      been, or if it becomes apparent that any of such conditions will not be,
      fulfilled by the deadline for Closing, unless such failure shall be due to
      the
      failure of the Buyer to perform or comply with any of the covenants, agreements
      or conditions hereof to be performed or complied with by it prior to the
      Closing; (d) by Seller by written notice to the Buyer if (i) Buyer’s
      representations and warranties shall not have been true and correct in all
      respects or (ii) if any of the conditions set forth in Item 16 shall not have
      been, or if it becomes apparent that any of such conditions will not be,
      fulfilled by the deadline for Closing, unless such failure shall be due to
      the
      failure of Sellers to perform or comply with any of the covenants, agreements
      or
      conditions hereof to be performed or complied with by it prior to the Closing;
      or (e) by Buyer by written notice to Sellers pursuant to Item 17(b) or Item
      17(c).
      In the
      event of the termination of this Agreement pursuant to the provisions of this
      paragraph, this Agreement shall become void and have no effect, without any
      liability to any party in respect hereof or of the transactions contemplated
      hereby on the part of any party hereto, or any of its directors, officers,
      managers, employees, agents, consultants, representatives, advisers,
      stockholders, members or affiliates, except as specified in Item 22(b) and
      except for any liability resulting from such party’s breach of this
      Agreement.

    

    19.
      Confidentiality/Press
      Release/Exclusivity.
      Except
      as may be required to comply with Applicable Laws and/or the rules and
      regulations of each stock exchange upon which the securities of either of the
      parties is listed, no party hereto shall disclose to third parties (other than
      accountants, lawyers, surveyors, environmental or other consultants, and like
      advisors who have a need to know in order to effectuate the terms of this
      agreement) the terms or existence of this agreement or any information
      designated as confidential and received from the other party or its agents
      in
      the course of investigating, negotiating, and completing the transactions
      contemplated by this agreement. The parties acknowledge that Buyer is a public
      company and will be required by Applicable Laws to make certain filings
      containing information concerning the subject transaction. Notwithstanding
      the
      foregoing, Buyer and Seller shall issue a joint press release upon the execution
      of this Agreement and again after Closing which is in a form acceptable to
      and
      approved by both parties. During the term of this Agreement, Seller shall not
      advertise, market, or list all or any portion of the Assets for sale, solicit
      purchasers for the sale of all or a portion of the Assets, or enter into any
      agreements with third parties, or permit any of its employees, contractors
      or
      agents, to engage in or provide any services related to the activities described
      above in this sentence.

    

    20.
      Allocation.
      The
      purchase price shall be allocated to the Assets as set forth on Exhibit
      “M”,
      and the
      parties shall file all relevant income tax returns, including but not limited
      to
      Internal Revenue Service form 8594, in accordance with said allocation, and
      shall not take any position inconsistent therewith.

    

    21. Broker.
      Seller
      represents and warrants to Buyer that Seller has not employed or used the
      services of any agent or broker with respect to the transactions contemplated
      hereby and that there is no obligation for any broker's/finder's fee or sales
      commission due to any person or entity resulting from acts or omissions of
      Seller. Buyer represents and warrants to Sellers that Buyer has not employed
      or
      used the services of a broker, finder or agent with respect to the transaction
      contemplated hereby and that there is no obligation for any broker's/finder's
      fee or sales commission due to any person or entity resulting from acts or
      omissions of Buyer.

    

    22. Expenses
      and Taxes.
      (a) All
      bulk sales, transfer, documentary, stamp, sales and/or use taxes relating to
      the
      sale and/or transfer of the assets purchased and sold hereunder shall be paid
      solely by Seller. The Buyer shall pay all filing, recording and vehicle
      registration fees payable as a result of the transfer of the said assets. Seller
      shall furnish such information and execute such certificates and other documents
      as the Buyer may reasonably determine are necessary, and take such other actions
      as the Buyer may reasonably request, prior to and after the Closing, in order
      to
      obtain any tax clearance certificates and/or otherwise effectuate the
      conveyances contemplated hereby. (b) Except as otherwise set forth in this
      Agreement, all other costs and expenses incurred in connection with this
      Agreement or the transactions contemplated hereby (including, but not limited
      to, any broker's or finder's fees) shall be paid by the party incurring such
      costs and expenses. To the extent any costs or expenses are to be paid by
      Seller, the Assets shall not be used or reduced in connection with the payment
      of such costs or expenses.

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    23.
      Bulk
      Sales Law.
      Buyer
      waives compliance with the provisions of any applicable bulk transfer laws.
      Accordingly, Seller covenants that all debts, obligations, and liabilities
      relating to Seller and its businesses that are not expressly assumed by Buyer
      in
      writing will be promptly paid and discharged by Seller as and when they become
      due and payable, and, notwithstanding anything in this Agreement to the
      contrary, Sellers will defend, indemnify and hold Buyer harmless from and
      against all suits, claims, costs, expenses and liabilities, including reasonable
      attorneys fees, with respect to any non-compliance with any bulk transfer law,
      including but not limited to claims made by creditors.

    

    24.
      Proprietary
      Rights.
      For
      purposes hereof, the term "Proprietary
      Rights",
      as used
      in this Agreement, means all of the following owned or held by Seller: all
      (i)
      rights in patents, patent applications, patent disclosures and inventions,
      (ii)
      rights in trademarks, service marks, trade dress, trade names, corporate names,
      and registration and applications for registration thereof, (iii) rights in
      copyrights (registered or unregistered) and registrations and applications
      for
      registration thereof, (iv) rights in computer software, data, databases and
      documentation, (v) rights in trade secrets and other confidential information
      (including, but not limited to, ideas, formulas, compositions, inventions
      (whether patentable or unpatentable) and whether or not reduced to practice),
      know-how, manufacturing and production processes and techniques, research and
      development information, drawings, specifications, designs, plans, proposals,
      technical data, copyrightable works, financial and marketing plans and
      advertiser and subscriber lists and information, including but not limited
      to
      that related to ethanol production and the engineering of biorefineries for
      ethanol production, feedstock analysis and procurement, and related
      technologies, (vi) rights in all other intellectual property rights of any
      nature, and (vii) copies and tangible embodiments of any of the foregoing (in
      whatever form or medium). 

    

    25.
      Entire
      Agreement; Modification.
      All
      exhibits, schedules and documents attached hereto and all documents and
      instruments executed pursuant to this Agreement at Closing are hereby
      incorporated into this Agreement by this reference and shall be deemed part
      of
      this Agreement for all purposes; provided, however, that the provisions of
      this
      Agreement shall control over any conflicting provision contained in any such
      exhibit, schedule, document, instrument or agreement. This Agreement, along
      with
      all of the exhibits, documents, instruments and agreements incorporated herein,
      constitutes the entire and complete agreement between the parties hereto and
      supersedes any prior oral or written agreement between the parties with respect
      to the obligations and covenants contemplated hereunder. It is expressly agreed
      that there are no verbal understandings or agreements which in any way change
      the terms, covenants, and conditions set forth in this Agreement and that no
      modification of this Agreement and no waiver of any of its terms and conditions
      shall be effective unless made in writing and duly executed by all parties
      hereto. The following exhibits and their attachments are attached hereto and
      incorporated herein:

    

    
      	
              Exhibit
                “A”

            	
              List
                of certain Assets to be purchased

            
	
              Exhibit
                “B”

            	
              List
                of certain property not sold to Buyer

            
	
              Exhibit
                “C”

            	
              Legal
                Description of all Real Property comprising the Assets

            
	
              Exhibit
                “D”

            	
              Real
                Property Title Exceptions 

            
	
              Exhibit
                “E”

            	
              Assumed
                liabilities and related information 

            
	
              Exhibit
                “F”

            	
              Allocation
                of Management Team Shares

            
	
              Exhibit
                “G”

            	
              Allocation
                of Warrants and Forms of Warrants

            
	
              Exhibit
                “H”

            	
              Employment
                Agreements - to be attached

            
	
              Exhibit
                “I”

            	
              Consulting
                Agreement - to be attached

            
	
              Exhibit
                “J”

            	
              Real
                Estate Matters

            
	
              Exhibit
                “K”

            	
              Environmental
                Matters

            
	
              Exhibit
                “L”

            	
              Schedule
                of Seller’s Employees

            
	Exhibit
              “M”	
              
                Allocation
                  of Purchase Price

              

            
	
              Exhibit
                “N”

            	
              
                Restrictive
                  Covenants of Seller 

              

            

    

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    26.
      Assignments;
      Binding effect.
      This
      Agreement may not be assigned by any party without the prior written consent
      of
      all other parties, except that Buyer may assign its rights hereunder to an
      affiliate in which case such assignor shall remain jointly and severally
      obligated with the assignee for the buyer’s duties, obligations and liabilities
      hereunder. This Agreement shall inure to the benefit of and be binding upon
      the
      heirs, estates, personal and legal representatives, successors and permitted
      assigns of the parties hereto. 

    

    27. Choice
      of Law; Set off.
      This
      Agreement shall be construed and interpreted in accordance with the laws of
      the
      State of New York without resort to the conflicts or choice of law principles
      thereof. 

    

    28.
      Severability;
      Construction.
      Whenever possible, each provision of this Agreement shall be interpreted so
      as
      to be valid and effective under applicable law, but if any provision of this
      Agreement shall be prohibited or invalid under applicable law, that provision
      shall be ineffective only to the extent of the prohibition or invalidity,
      without invalidating the remainder of that provision or the remaining provisions
      of this Agreement. This Agreement is the product of the joint drafting of all
      parties and shall not be construed against any party hereto as the drafter
      of
      this Agreement.

    

    29.
       Notices.
      All
      notices and other communications required or permitted to be given hereunder
      or
      by reason of this Agreement shall be in writing and shall be deemed to have
      been
      properly given when delivered in person or by overnight courier to the person
      to
      whom such notice is directed, or three (3) days after deposited in the U.S.
      Mail, Certified Mail, Return Receipt Requested, postage prepaid, to the parties
      addressed as follows: (a) if to Buyer, to Xethanol Corporation, 1185 Avenue
      of
      the Americas, 20th
      Floor,
      New York, New York 10036, Attn: Lawrence Bellone, Chief Financial Officer,
      with
      a copy required to be sent to James K. Austin, Esq., Ellis, Painter, Ratterree
      & Adams, LLP, 2 E. Bryan Street, 10th
      Floor,
      Savannah, Georgia 31401; (b) if to any Seller, to Carolina Fiberboard
      Corporation, Attn: Vic Kramer, Manager with a copy required to be sent to James
      Andrew Saputo,Jr., Esq., Thompson & Saputo, PLLC, 1708 Trawick Road, Suite
      111, Raleigh, North Carolina 27604; and (c) if to any Principal, to such
      Principal at his or her address set forth below.

    

    30. Multiple
      Counterpart/Facsimile Delivery.
      This
      Agreement may be executed in any number of identical counterparts, and each
      counterpart hereof shall be deemed to be an original instrument, but all
      counterparts hereof taken together shall constitute but a single instrument.
      If
      executed in identical counterparts, this Agreement shall not become effective
      until all parties hereto have effectively executed their respective counterpart.
      This Agreement may be executed and delivered by facsimile transmission, and
      a
      facsimile copy of an executed counterpart shall be deemed and considered for
      all
      purposes as an original executed counterpart, in which case the parties then
      shall immediately circulate original documents for execution by all parties.
      

    

    31.
      Waivers.
      No
      waiver or release of any obligation or right of any party hereto shall be valid
      and enforceable unless made in writing and duly executed by all parties
      hereto.

    

    32. Survival.
      Notwithstanding anything to the contrary contained in this Agreement, the terms,
      conditions, covenants, representations and warranties contained in this
      Agreement, in the schedules, documents and exhibits attached hereto, and in
      the
      documents and other instruments delivered at Closing, shall survive the
      execution hereof and the closing of the transactions contemplated
      hereby.

    

    33.
      Time
      of the Essence.
      Time is
      of the essence with respect to this Agreement and the closing of the purchase
      and sale contemplated hereby.

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    34.
      Headings.
      The
      paragraph headings or captions appearing in this Agreement are for convenience
      only, are not part of this Agreement and are not to be considered in
      interpreting this Agreement.

    

    35.
      Certain
      Definitions.

     

    Applicable
      Law:
      all
      applicable provisions of all (i) constitutions, treaties, statutes, laws
      (including the common law), rules, regulations, ordinances, codes or orders
      of
      any Governmental Authority, (ii) Governmental Approvals and
      (iii) orders, decisions, injunctions, judgments, awards and decrees of or
      agreements with any Governmental Authority.

    

    Consent:
      any
      consent, approval, authorization, waiver, permit, grant, franchise, concession,
      agreement, license, exemption or order of, registration, certificate,
      declaration or filing with, or report or notice to, any person or entity,
      including but not limited to any Governmental Authority.

    

    Environmental
      Laws:
      All
      Applicable Laws relating to the protection of the environment, to human health
      and safety, or to any emission, discharge, generation, processing, storage,
      holding, abatement, existence, Release, threatened Release or transportation
      of
      any Hazardous Substances, including, without limitation, (i) CERCLA (the
      Comprehensive Environmental Response, Compensation and Liability Act, as
      amended, 42 U.S.C. § 9601 et seq.),
      the
      Resource Conservation and Recovery Act, and the Occupational Safety and Health
      Act, (ii) all other requirements pertaining to reporting, licensing,
      permitting, investigation or remediation of emissions, discharges, releases
      or
      threatened releases of Hazardous Materials into the air, surface water,
      groundwater or land, or relating to the manufacture, processing, distribution,
      use, sale, treatment, receipt, storage, disposal, transport or handling of
      Hazardous Substances, and (iii) all other requirements pertaining to the
      protection of the health and safety of employees or the public.

    

    Environmental
      Liabilities and Costs:
      all
      Losses, whether direct or indirect, known or unknown, current or potential,
      past, present or future, imposed by, under or pursuant to Environmental Laws,
      including, without limitation, all Losses related to Remedial Actions, and
      all
      fees, disbursements and expenses of counsel, experts, personnel and consultants
      based on, arising out of or otherwise in respect of: (i) the ownership or
      operation of the businesses of Sellers, the Real Property or any other real
      properties, assets, equipment or facilities, by any Seller, or any of their
      predecessors or affiliates; (ii) the environmental conditions existing on the
      Closing on, under, above, or about any Real Property or any other real
      properties, assets, equipment or facilities currently or previously owned,
      leased or operated by any Seller, or any of their predecessors or Affiliates;
      and (iii) expenditures necessary to cause any Real Property or any aspect of
      the
      businesses of Sellers to be in compliance with any and all requirements of
      Environmental Laws as of the Closing, including, without limitation, all
      Environmental Permits issued under or pursuant to such Environmental Laws,
      and
      reasonably necessary to make full economic use of any Real
      Property.

     

    Environmental
      Permits:
      any
      federal, state and local permit, license, registration, consent, order,
      administrative consent order, certificate, approval or other authorization
      with
      respect to any Seller necessary for the conduct of the Business as currently
      conducted or previously conducted under any Environmental Law.

     

    Governmental
      Approval:
      any
      Consent of, with or to any Governmental Authority.

     

    Governmental
      Authority:
      any
      nation or government, any state, county, city or other political subdivision
      thereof, any entity exercising executive, legislative, judicial, regulatory
      or
      administrative functions of or pertaining to government, including, without
      limitation, any government authority, agency, department, board, commission
      or
      instrumentality of the United States, any State of the United States, any
      county, any city or any political subdivision thereof, and any tribunal or
      arbitrator(s) of competent jurisdiction, and any self-regulatory
      organization.

     

    Hazardous
      Substances:
      any
      substance that: (i) is or contains asbestos, urea formaldehyde foam
      insulation, polychlorinated biphenyls, petroleum or petroleum-derived substances
      or wastes, radon gas or related materials (ii) requires investigation,
      removal or remediation under any Environmental Law, or is defined, listed or
      identified as a “hazardous waste” or “hazardous substance” thereunder, or
      (iii) is toxic, explosive, corrosive, flammable, infectious, radioactive,
      carcinogenic, mutagenic, or otherwise hazardous and is regulated by any
      Governmental Authority or Environmental Law.

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    Release:
      any
      releasing, disposing, discharging, injecting, spilling, leaking, leaching,
      pumping, dumping, emitting, escaping, emptying, seeping, dispersal, migration,
      transporting, placing and the like, including without limitation, the moving
      of
      any materials through, into or upon, any land, soil, surface water, ground
      water
      or air, or otherwise entering into the environment.

     

    Remedial
      Action:
      all
      actions required to (i) clean
      up, remove, treat or in any other way remediate any Hazardous Substances;
      (ii) prevent
      the release of Hazardous Substances so that they do not migrate or endanger
      or
      threaten to endanger public health or welfare or the environment; or
      (iii) perform
      studies, investigations and care related to any such Hazardous
      Substances.

     

    
      	
              *

            	
              *

            	
              *

            	
              *

            	
              *

            	
              *

            
	 	 	 	 	 	 

    

    

    [The
      remainder of this page is intentionally blank. The next page is the signature
      page]

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the undersigned each have caused this Agreement to be executed
      under seal individually or by their duly authorized officers or managers as
      of
      the date first set forth above:

    

    
      	
              Signed,
                sealed and delivered 

            	 	
              Xethanol
                Corporation

            
	
              in
                the presence of:

            	 	 	 
	 	 	 	 
	 	 	
              By:

            	
              
                /s/
                  Christopher d’Arnaud-Taylor

              

            
	 	 	Title:	
              Chairman
                & CEO

            
	
              Witness
                

            	 	 	 
	 	 	 	 
	 	 	 	 
	
              Notary
                Public

            	 	 	 
	 	 	 	 

    

     

     

    
      
        	
                Signed,
                  sealed and delivered 

              	 	
                
                  Carolina
                    Fiberboard Corporation LLC

                

              
	
                in
                  the presence of:

              	 	 	 
	 	 	 	 
	 	 	
                By:

              	
                
                  /s/
                    Victor Kramer

                

              
	 	 	Title:	Manager
	
                Witness
                  

              	 	 	 
	 	 	 	 
	 	 	 	 
	
                Notary
                  Public

              	 	 	 
	 	 	 	 

      

       

       

       

      
        	
                Signed,
                  sealed and delivered 

              	 	
                
                   

                

              
	
                in
                  the presence of:

              	 	 	 
	 	 	 	 
	 	 	
                
                  /s/
                    Victor Kramer

                

              
	 	 	
                Victor
                  Kramer

              
	
                Witness
                  

              	 	 	 
	 	 	 	 
	 	 	 	 
	
                Notary
                  Public

              	 	 	 
	 	 	 	 

      

    

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

    Exhibit
      “A” 

    List
      of certain Assets under Item 2(a) being purchased

     

    SEE
      ATTACHED

     

     

     

     

     

    
 

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    Exhibit
      “B” 

    List
      of certain tangible property not being purchased

     

    NONE

     

     

     

     

     

    
 

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    Exhibit
      “C” 

    Legal
      Description of all Real Property comprising the Assets

     

    SEE
      ATTACHED

     

     

     

     

     

    
 

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    Exhibit
      “D” 

    Real
      Property Title Exceptions

     

    None.

     

     

     

     

     

    
 

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    Exhibit
      “E”

    Assumed
      Liabilities and Related Information 

    

    

                   
      Exhibit K describes current environmental problems with the Real Property or
      the
      Assets. Upon the receipt by Seller of the Environmental Assessment and the
      closing of this transaction, Seller and Principal,
      except in the case of or as a result of fraud or willful non-disclosure by
      Seller or Principal,
      will not
      be liable to Buyer under any representation and warranty, under the
      indemnification provisions or under any other provision of this Agreement
      regarding the environmental condition of the Real Property or the Assets, and
      Buyer,
      except in the case of fraud or willful non-disclosure by Seller or
      Principal,
      is
      accepting the Real Property in its “as-is” physical condition. As of the date of
      the Closing, Buyer shall be, as between Buyer and the other parties hereto,
      fully responsible for compliance with any Environmental
      Laws, for any Environmental Liabilities and Costs and for all Remedial Actions
      required on the Real Property or with the Assets, except in the case of fraud
      or
      willful non-disclosure by Seller or Principal or for problems or matters that
      were directly caused by Seller or Seller’s use of the Real Property, and Seller
      nor Principal shall have any liability or indemnification requirements for
      any
      environmental problems, except as stated above or for any problems that were
      directly caused by Seller or Seller’s use of the Real Property.

     

     

     

     

     

    
 

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    Exhibit
      “F”

    Allocation
      of Management Team Shares 

     

    TO
      BE
      PROVIDED AT THE CLOSING OF THIS TRANSACTION

     

     

     

     

     

    
 

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    Exhibit
      “G”

    Form
      of Warrants

     

    SEE
      ATTACHED

     

     

     

     

     

    
 

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    Exhibit
      “H”

    Form
      of Employment Agreement

     

    TO
      BE
      ATTACHED WITHIN 14 DAYS AFTER THE DATE HEREOF

     

     

     

     

     

    
 

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    Exhibit
      “I”

    Form
      of Consulting Agreement

     

    TO
      BE
      ATTACHED WITHIN 14 DAYS AFTER THE DATE HEREOF

     

     

     

     

     

    
 

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    Exhibit
      “J”

    Real
      Estate Matters

    

    

    The
      production and distribution of ethanol in Nash County, North Carolina requires
      a
      Special Use Permit (as used in this exhibit and in the foregoing agreement,
      the
“Special Use Permit”). In order to obtain the Special Use Permit, two
      requirements of the Special Use Permit Application have to be addressed at
      the
      Nash County level. Aganol Biorefineries, LLC has applied for an amendment to
      the
      Nash County Unified Development Ordinance to meet compliance requirements of
      the
      Special Use Permit. Aganol Biorefineries, LLC has passed the first two hearings
      and is set to have the amendment voted on during the August 14, 2006 meeting
      of
      the County Commissioners. Once that vote has passed, the hearing for the Special
      Use Permit will occur on August 28, 2006. The two issues deal with setback
      requirements and the suitability of the public road that runs by the Real
      Property to Interstate 95. The North Carolina Department of Transportation
      has
      provided written letters in support of our amendment issues and is fully behind
      the Real Property being used as a ethanol facility. Seller, nor any of its
      affiliates, has applied for any permits or licenses with respect to the
      production of ethanol or related products except as expressly stated herein
      with
      respect to Aganol Biorefineries, LLC. Therefore, the only permit which Seller
      or
      its affiliates is applying for currently is the Special Use Permit as described
      above by Aganol Biorefineries, LLC. Seller makes no other representations or
      warranties as to any other permits or licenses.

     

     

     

     

     

    
 

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    Schedule
      K

    Environmental
      Matters

    

    

    The
      Real
      Property is subject to an environmental compliance by the previous owner,
      International Paper, with the North Carolina Department of Environment and
      Natural Resources. 
      Administrative Order On Consent Pursuant to NCGS Section 130A-310.9(b) and
      Superfund State Deferral Memorandum of Agreement Docket Number OI-SF-199 was
      entered into between The State of North Carolina and International Paper with
      a
      date of May 2003. In connection with the foregoing, the previous owner,
      International Paper, has responsibility to clean up a fiber pile located on
      the
      Real Property and to clean a waste water lagoon, located some distance from
      the
      plant area that would be used in the production of ethanol. Remedial action
      has
      been ongoing for the past 7 years. URS environmental engineers have tested
      wells
      and report no significant levels of pollutants. Supporting documents are
      available for review at the convenience of Buyer.

    

     

     

     

     

     

    
 

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    Exhibit
      “L”

    Schedule
      of Sellers’ Employees

     

    NONE

     

     

     

     

     

    
 

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    Exhibit
      “M”

    Allocation
      of Purchase Price

    

    

    The
      parties shall negotiate in good faith to agree at or before closing on an
      allocation of the purchase price among the assets purchased hereunder. To the
      extent such an allocation is agreed to, the parties shall file all relevant
      income tax returns, including but not limited to Internal Revenue Service form
      8594, in accordance with said allocation, and shall not take any position
      inconsistent therewith.

    

     

     

     

     

     

    
 

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    Exhibit
      “N”

    Restrictive
      Covenants of Seller

    

    Section
      1.1     Confidentiality.
      Seller
      and Principal (each a “Covenantor”) each acknowledges and agrees that all Trade
      Secrets (as defined hereinbelow) are confidential to and shall be and remain
      the
      sole and exclusive property of Buyer and its successors or assigns (hereinafter,
      collectively and individually, the “Company”). Covenantor agrees that, except in
      connection with Covenantor’s performing its/his ordinary and authorized duties
      as an employee or contractor with the Company, Covenantor shall, for a period
      of
      seven years following the Closing, (a) hold all Trade Secrets in strictest
      confidence; (b) not disclose, reproduce, distribute or otherwise disseminate
      such Trade Secrets, and shall protect such Trade Secrets from disclosure by
      others; and (c) make no use of such Trade Secrets without the prior written
      consent of Company. For the purposes of this Agreement, “Trade
      Secrets”
      shall
      mean all information and materials which are conveyed to Buyer under this
      Agreement and which derive independent 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 their disclosure
      or
      use, including but not limited to information or materials concerning the
      financial or other operations and/or results of the Seller, terms of employment
      of the Seller’s employees, independent contractors and consultants, lists of
      customers, suppliers and vendors and related information. “Trade Secrets” shall
      also include technical or non-technical data, formulas, patterns, compilations,
      programs, devices, methods, techniques, drawings, processes, financial data,
      financial plans, product plans or lists of customers, suppliers, prospective
      customers and/or prospective suppliers of Seller, including but not limited
      to
      information concerning any of the processes utilized, or to be utilized, to
      manufacture ethanol or similar fuels. Notwithstanding the foregoing, Trade
      Secrets shall not include data and information which are, or become thereafter
      through no fault of Covenantor, a part of the public domain by publication
      or
      otherwise. 

     

    Section
      1.2     Noncompetition.
      The
      Company, its affiliates or their yet-to-be-formed affiliates are engaged or
      may
      become engaged in the business of producing, marketing and/or selling ethanol
      or
      other fuels. Covenantor agrees that, except in connection with Covenantor’s
      performing its/his ordinary and authorized duties as an employee or contractor
      with the Company, Covenantor shall not, for a period of five years following
      the
      Closing, participate in an executive, management or supervisory capacity in
      the
      operation of, provide management, marketing, purchasing, procurement, sales,
      or
      advertising services to, engage in, own all or part of, or lend funds to, any
      business enterprise engaged in the production, marketing, sale, or distribution
      of ethanol or other fuels within a radius of one hundred fifty miles of the
      Real
      Property purchased under this Agreement; provided, however, that this paragraph
      shall not prohibit Covenantor from owning an interest in or lending funds to
      the
      Company or any affiliate thereof.

     

    Section
      1.3     Nonsolicitation.
      Covenantor agrees that, except in connection with Covenantor’s performing
      its/his ordinary and authorized duties as an employee or contractor with the
      Company, Covenantor shall not, for a period of five years following the Closing,
      (a) individually or in association with any person or entity, solicit, divert,
      or take away, or attempt to solicit, divert or take away, the business of any
      of
      the customers, prospective customers, or suppliers, or prospective suppliers
      of
      the Company for the purposes of selling to any such customer or prospective
      customer ethanol or any related or similar fuel product or purchasing from
      any
      such supplier or prospective supplier raw materials used to make ethanol or
      any
      related or similar fuel product; and (b) shall not, individually or in
      association with any person or entity, cause or attempt to cause any of the
      above-described customers or prospective customers to refrain from maintaining
      or acquiring from or through the Company ethanol or any related or similar
      fuel
      product or cause or attempt to cause any of the above-described suppliers or
      prospective suppliers to refrain from selling to the Company raw materials
      used
      to make ethanol or any related or similar fuel product.

     

    Section
      1.4     Nonpiracy
      of Employees.
      For the
      five-year period immediately following the Closing, Covenantor shall not,
      individually or in association with any person or entity, attempt in any manner
      to encourage any employee or consultant of or to the Company or any subsidiary
      or affiliate of the Company to leave the services of such entity, specifically
      including but not limited to those employees or consultants which are referred
      to in Items 6(b) and 6(c) of this Agreement.

     

    Section
      1.5     Severability;
      Enforcement of Restrictive Covenants.
      Whenever possible, each provision of this exhibit, or subpart thereof, shall
      be
      interpreted so as to be valid and effective under applicable law, but if any
      provision, or subpart thereof, shall be determined to be prohibited, invalid,
      illegal or otherwise unenforceable under applicable law, that provision, or
      subpart thereof, shall be ineffective only to the extent of the prohibition
      or
      invalidity, without invalidating the remainder of that provision or the
      remaining provisions of this exhibit or this Agreement which shall be binding
      and enforceable. The Company may disclose the prohibitions contained herein
      to
      any person or entity who, at any time, employs, contracts with or considers
      employing or contracting with the Covenantor. Covenantor agrees that the remedy
      at law for any breach by Covenantor under any of the covenants set forth in
      any
      of this exhibit will not be adequate, and that Company shall be entitled to
      immediate injunctive relief with respect to any such breach; provided, further,
      that the Company’s remedies for such a breach are cumulative and the Company may
      bring an action at law and/or in equity for any damages which it might sustain
      from such a breach and shall be entitled to recover from Covenantor reasonable
      attorney's fees and costs and expenses of litigation generally, whether on
      appeal or otherwise, actually incurred by the Company as a result of such
      breach.

    
 

    
      
        
        

      

      
        31

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]