Document:

Exhibit
        10.2

    

    ETHANEX
      ENERGY, INC

    

    2006
      EQUITY INCENTIVE PLAN

    

    STOCK
      OPTION AGREEMENT

    

    This
      Stock Option Agreement (the “Agreement”) is entered into effective as of the
      date of grant set forth below (the “Date of Grant”) by and between ETHANEX
      ENERGY, INC. (the “Company”) and the participant named below (the
“Participant”). Capitalized terms not defined herein shall have the meaning
      ascribed to them in the Company’s 2006 Equity Incentive Plan (the “Plan”).

     

    
      	Participant: 	______________________
	 	 
	Address: 	______________________
	 	______________________
	 	 
	Total Option Shares:	250,000
	 	 
	Exercise Price Per Share:	$1.00
	 	 
	Date of Grant:   	September 1, 2006
	 	 
	Expiration Date: 	
              September
                1, 2016 (unless earlier terminated pursuant to the Plan or grant
                requirements set forth below)

            

    

          

    1. GRANT
      OF OPTION. 

    

    The
      Company hereby grants to Participant an option (this “Option”) to purchase the
      total number of shares of Common Stock of the Company set forth above (the
      “Shares”) at the Exercise Price Per Share set forth above (the “Exercise
      Price”), subject to all of the terms and conditions of this Agreement and the
      Plan. 

    

    2. EXERCISE
      PERIOD. 

    

    (a) Provided
      Participant continues to be employed by the Company, the Option shall become
      vested and exercisable as to the Shares as follows: 

    

    
      	 	
              (i)

            	
              This
                Option shall not vest nor be exercisable with respect to any of the
                Shares
                until the first anniversary of the Date of Grant set forth above.
                

            

    

    

    
      	(ii)    	
              On
                the first anniversary of the Date of Grant, the Option shall become
                vested
                and exercisable as to 33.3% of the Shares.

            

    

    

    
      	(iii)   	
              On
                the second anniversary of the Date of Grant, the Option shall become
                vested and exercisable as to 66.6% (an additional 33.3%) of the Shares.
                

            

    

    

    
      	(iv)      
                 	
              On
                the third anniversary of the Date of Grant, the Option shall become
                vested
                and exercisable as to 100% of the
                Shares.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	(v)      
                 	
              Notwithstanding
                the foregoing, the Option shall become fully vested and exercisable
                upon
                the Participant’s termination of employment: (i) by the Participant for
                Good Reason (as defined in the Employment Agreement, dated on or
                around
                August 3, 2006 (the “Employment Agreement”); (ii) by the Company for
                reasons other than for Cause (as defined in the “Employment Agreement”);
                or (iii) in connection with a Change in Control (as defined in the
                “Employment Agreement”). (Whether a termination occurs in connection with
                a Change in Control will be determined by the Committee in its sole
                discretion.)

            

    

    

    
      	(vi)   
                   	
              If
                application of the vesting percentage causes a fractional share,
                such
                share shall be rounded down to the nearest whole share.
                

            

    

    

    Shares
      that are vested pursuant to the schedule set forth in Section 2 are “Vested
      Shares.” Shares that are not vested pursuant to the schedule set forth in
      Section 2 are “Unvested Shares.”

    

    3. TERMINATION.
      

    

    (a) If
      Participant’s employment with the Company is terminated by the Participant for
      any reason other than Good Reason, then the Option, to the extent (and only
      to
      the extent) that it would have been exercisable by Participant on the
      termination date, may be exercised by Participant no later than 1 month
      after the termination date, but in any event no later than the Expiration Date.
      All Unvested Shares or any right or claim to such shares shall be immediately
      forfeited as of the termination date.

    

    (b) If
      Participant’s employment with the Company is terminated (i) in connection with a
      Change in Control, (ii) by the Participant for Good Reason or (iii) by the
      Company for reasons other than for Cause, then the Option shall, as provided
      in
      Section 2(a)(v) above, become fully vested and exercisable upon the
      Participant’s termination of employment and may be exercised by Participant (or
      Participant’s legal representative) no later than 12 months after the
      termination date, but in any event no later than the Expiration Date.

    

    (c) If
      Participant’s employment with the Company is terminated by (i) death or
      (ii) Disability, then the Option, to the extent that it is exercisable by
      Participant on the termination date, may be exercised by Participant (or
      Participant’s legal representative) no later than 12 months after the
      termination date, but in any event no later than the Expiration Date. All
      Unvested Shares or any right or claim to such Shares shall be immediately
      forfeited as of the termination date.

    

    (d) Notwithstanding
      anything in the Agreement or Plan to the contrary, if the Participant is
      terminated by the Company for Cause, any unexercised portion of the Option,
      whether vested or not, shall expire and any right, title or interest in the
      Option or the Shares thereunder shall be forfeited as of the participant’s
      termination date from the Company. 

    

    4. NO
      OBLIGATION TO EMPLOY. 

    

    Nothing
      in the Plan or this Agreement shall confer on Participant any right to continue
      in the employ of, or other relationship with the Company or limit in any way
      the
      right of the Company to terminate Participant’s employment or other relationship
      at any time, with or without Cause. 

     

    (a) To
      exercise this Option, Participant (or in the case of exercise after
      Participant’s death or incapacity, Participant’s executor, administrator, heir
      or legatee, as the case may be) must deliver written notice of exercise to
      the
      Company (the “Exercise Agreement”), which shall set forth, inter alia, (i)
      Participant’s election to exercise the Option, (ii) the number of Shares being
      purchased and (iii) any representations, warranties and agreements regarding
      Participant’s investment intent and access to information as may be required by
      the Company to comply with applicable securities laws. If someone other than
      Participant exercises the Option, then such person must submit documentation
      reasonably acceptable to the Company verifying that such person has the legal
      right to exercise the Option and such person shall be subject to all of the
      restrictions contained herein as if such person were the Participant.

    

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    (b) This
      Option may not be exercised unless such exercise is in compliance with all
      applicable federal and state securities laws, as they are in effect on the
      date
      of exercise. The Exercise Agreement shall be accompanied by full payment of
      the
      Exercise Price for the Shares being purchased in cash (including by check).
      The
      Exercise Price must be paid in United States dollars, in cash or by personal
      check payable to the order of the Company, at the time of purchase.

    

    6. TAX
      WITHHOLDING. 

    

    Prior
      to
      the issuance of Shares upon exercise of the Option, Participant shall pay,
      or
      make arrangements satisfactory to the Company regarding the payment to the
      Company of, Applicable Withholding Taxes. The Participant may elect to satisfy
      Applicable Withholding Taxes by (i) making a cash payment or authorizing
      additional withholding from cash compensation, (ii) delivering Mature Shares
      (valued at their Fair Market Value), or (iii) having the Company retain that
      number of Shares (valued at their Fair Market Value) that would satisfy all
      or a
      specified portion of the Applicable Withholding Taxes.

    

    7. COMPLIANCE
      WITH LAWS AND REGULATIONS. 

    

    (a) The
      exercise of this Option and the issuance and transfer of Shares shall be subject
      to compliance by the Company and Participant with all applicable requirements
      of
      applicable securities laws. If at any time the Committee determines that
      exercising the Option or issuing Shares would violate applicable securities
      laws, the Option will not be exercisable, and the Company will not be required
      to issue Shares. The Committee may declare any provision of this Agreement
      or
      action of its own null and void, if it determines the provision or action fails
      to comply with the short-swing trading rules. As a condition to exercise, the
      Company may require the Participant to make written representations it deems
      necessary or desirable to comply with applicable securities laws.

    

    (b) No
      person
      who acquires Shares under this Agreement may sell the Shares, unless the offer
      and sale are made pursuant to an effective registration statement under the
      Securities Act of 1933, as amended (the "Securities Act"), that is current
      and
      includes the Shares to be sold, or an exemption from the registration
      requirements of the Securities Act.

     

    8. NONTRANSFERABILITY
      OF OPTION. 

    

    The
      Option may not be transferred in any manner other than by will or by the laws
      of
      descent and distribution, and may be exercised during the lifetime of
      Participant only by Participant or in the event of Participant’s incapacity, by
      Participant’s legal representative. The terms of the Option shall be binding
      upon the executors, administrators, successors and assigns of Participant.
      

    

    9. PRIVILEGES
      OF STOCK OWNERSHIP. 

    

    The
      Participant shall not have any of the rights of a stockholder with respect
      to
      any Shares until the Shares are issued to the Participant. 

    

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    10. INTERPRETATION.
      

    

    Any
      dispute regarding the interpretation of this Agreement shall be submitted by
      Participant or the Company to the Committee for review. The resolution of such
      a
      dispute by the Committee shall be final and binding on the Company and
      Participant. 

    

    11. ENTIRE
      AGREEMENT. 

    

    The
      Plan
      is incorporated herein by reference. This Agreement and the Plan constitute
      the
      entire agreement and understanding of the parties with respect to the subject
      matter of this Agreement, and supersede all prior understandings and agreements,
      whether oral or written, between or among the parties hereto with respect to
      the
      specific subject matter hereof. 

    

    12. NOTICES.
      

    

    Any
      and
      all notices required or permitted to be given to a party pursuant to the
      provisions of this Agreement shall be in writing and shall be effective and
      deemed to provide such party sufficient notice under this Agreement on the
      earliest of the following: 

    

    (a)
       at
      the
      time of personal delivery, if delivery is in person; 

    

    (b)
       2
      business days after deposit with an express overnight courier;

    

    (c)
       3
      business days after deposit by regular mail. 

    

    All
      notices not delivered personally shall be sent with postage and/or other charges
      prepaid and properly addressed to the party to be notified at the address set
      forth below on the signature lines of this Agreement, or at such other address
      as such party may designate by one of the indicated means of notice herein
      to
      the other parties hereto. Notices to the Company shall be marked “Attention:
      Stock Plan Administration.” 

    

    13. SUCCESSORS
      AND ASSIGNS. 

    

    The
      Company may assign any of its rights under this Agreement. No other party to
      this Agreement may assign, whether voluntarily or by operation of law, any
      of
      its rights and obligations under this Agreement, except as expressly permitted
      herein or under the Plan or with the prior written consent of the Company.
      This
      Agreement shall be binding upon and inure to the benefit of the successors
      and
      assigns of the Company. Subject to the restrictions on transfer set forth
      herein, this Agreement shall be binding upon Participant and Participant’s
      heirs, executors, administrators, legal representatives, successors and assigns.
      

    

    14. NO
      LIMITATION ON RIGHTS OF THE COMPANY.

     

    The
      grant of the Option does not and will not in any way affect the right or power
      of the Company to make adjustments, reclassifications or changes in its capital
      or business structure, or to merge, consolidate, dissolve, liquidate, sell
      or
      transfer all or any part of its business or assets.

    

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    15. PLAN
      DOCUMENT CONTROLS.

     

    The
      rights granted under this Agreement are in all respects subject to the
      provisions set forth in the Plan to the same extent and with the same effect
      as
      if set forth fully in this Agreement. If the terms of this Agreement conflict
      with the terms of the Plan document, the Plan document will
      control.

    

    16. GOVERNING
      LAW.

    

    This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      state of New York.

     

    17. ACCEPTANCE.
      

    

    The
      Participant hereby acknowledges receipt of a copy of the Plan and this
      Agreement. Participant has read and understands the terms and provisions
      thereof, and accepts the Option subject to all the terms and conditions of
      the
      Plan and this Agreement. The Participant acknowledges that there may be adverse
      tax consequences upon exercise of the Option or disposition of the Shares and
      that Participant should consult a tax adviser prior to such exercise or
      disposition. 

    

    18. FURTHER
      ASSURANCES. 

    

    The
      parties agree to execute such further documents and instruments and to take
      such
      further actions as may be reasonably necessary to carry out the purposes and
      intent of this Agreement. 

     

    19. TITLES
      AND HEADINGS. 

    

    The
      titles, captions and headings of this Agreement are included for ease of
      reference only and shall be disregarded in interpreting or construing this
      Agreement. Unless otherwise specifically stated, all references herein to
“sections” and “exhibits” shall mean “sections” and “exhibits” to this
      Agreement. 

    

    20. COUNTERPARTS.
      

    

    This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed and delivered shall be deemed an original, and all of which together
      shall constitute one and the same agreement. 

    

    21. CODE
      SECTION 409A NOT TO APPLY.

    

    It
      is the
      Company’s intention that Code Section 409A shall not apply to the Option granted
      hereunder. The Exercise Price for each share subject to the Option may never
      be
      less than 100% the Fair Market Value on the date the Option is granted except
      in
      the case of adjustments permitted by the Plan, and there shall be no deferral
      of
      compensation under the Option other than the deferral of recognition of income
      until the later of exercise or disposition of the Option under Section 1.83-7
      of
      the Income Tax Regulations.

    

    22. SEVERABILITY.
      

    

    If
      any
      provision of this Agreement is determined by any court or arbitrator of
      competent jurisdiction to be invalid, illegal or unenforceable in any respect,
      such provision shall be enforced to the maximum extent possible given the intent
      of the parties hereto. If such clause or provision cannot be so enforced, such
      provision shall be stricken from this Agreement and the remainder of this
      Agreement shall be enforced as if such invalid, illegal or unenforceable clause
      or provision had (to the extent not enforceable) never been contained in this
      Agreement. Notwithstanding the forgoing, if the value of this Agreement based
      upon the substantial benefit of the bargain for any party is materially
      impaired, which determination as made by the presiding court or arbitrator
      of
      competent jurisdiction shall be binding. 

    

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Agreement to be executed in
      duplicate by its duly authorized representative and Participant has executed
      this Agreement in duplicate, effective as of the Date of Grant.

    
 

    

    
      	
              ETHANEX
                ENERGY, INC. 

               

               

              By:_______________________________

              Albert
                W. Knapp, III

              President
                and Chief Executive Officer

               

            	
              PARTICIPANT:

               

               

               

              ___________________________________

            

    

    

    
      
        
        

      

      
        -6-Exhibit
      10.3

    Ethanex
      Energy, Inc.

    

    Omnibus
      Equity Incentive Plan

    

    Stock
      Option Agreement

    

    This
      Stock Option Agreement (the “Agreement”) is entered into effective as of the
      date of grant set forth below (the “Date of Grant”) by and between ETHANEX
      ENERGY, INC. (the “Company”) and the participant named below (the
“Participant”). Capitalized terms not defined herein shall have the meaning
      ascribed to them in the Company’s Omnibus Equity Incentive Plan (the “Plan”).

     

    
 

    
      	Participant:  	David J. McKittrick
	 	 
	Address: 	
              5111 Cary Street Road

              Richmond, Virginia 23226

            
	 	 
	Total Option Shares: 	1,500,000
	 	 
	Exercise Price Per Share:	$2.25
	 	 
	Date of Grant:  	December 1, 2006
	 	 
	Expiration Date:	December 1, 2016 (unless earlier terminated
              pursuant to the Plan or grant requirements set forth below)
	 	 

    

          

    1. GRANT
      OF OPTION. 

    

    The
      Company hereby grants to Participant an option (this “Option”) to purchase the
      total number of shares of Common Stock of the Company set forth above (the
      “Shares”) at the Exercise Price Per Share set forth above (the “Exercise
      Price”), subject to all of the terms and conditions of this Agreement and the
      Plan. 

    

    2. EXERCISE
      PERIOD. 

    

    (a) Provided
      Participant continues to be employed by the Company, the Option shall become
      vested and exercisable as to the Shares as follows: 

    

    
      	 	
              (i)

            	
              This
                Option shall not vest nor be exercisable with respect to any of the
                Shares
                until October 9, 2007. 

            

    

    

    
      	(ii)        
                	
              On
                October 9, 2007, the Option shall become vested and exercisable as
                to 25%
                of the Shares. 

            

    

    

    
      	(iii)    
                   	
              On
                the last day of each month beginning November 30, 2007, the Option
                shall
                become vested and exercisable as to an additional 3.125% of the Shares
                (e.g., on November 30, 2007 a total of 28.125% shares shall be vested,
                on
                December 31, 2007 a total of 31.25% shares shall be vested, etc.).
                

            

    

    

    
      	(iv)    
                   	
              Notwithstanding
                the foregoing, the Option shall become fully vested and exercisable
                upon
                the Participant’s termination of employment: (i) by the Participant for
                Good Reason (as defined in the Participant’s Employment Agreement, dated
                on or around October 9, 2006 (the “Employment Agreement”)); (ii) by the
                Company for reasons other than for Cause (as defined in the Employment
                Agreement); (iii) in connection with a Change in Control (as defined
                in
                the Employment Agreement); or (iv) upon death or Disability (as defined
                in
                the Employment Agreement). (Whether a termination occurs in connection
                with a Change in Control will be determined by the Committee in its
                sole
                discretion.)

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	(v)    
                   	
              If
                application of the vesting percentage causes a fractional share,
                such
                share shall be rounded down to the nearest whole share.
                

            

    

    

    (b) Shares
      that are vested pursuant to the schedule set forth in Section 2 are “Vested
      Shares.” Shares that are not vested pursuant to the schedule set forth in
      Section 2 are “Unvested Shares.”

    

    3. TERMINATION.
      

    

    (a) If
      Participant’s employment with the Company is terminated by the Participant for
      any reason other than Good Reason, then the Option, to the extent (and only
      to
      the extent) that it would have been exercisable by Participant on the
      termination date, may be exercised by Participant no later than 1 month after
      the termination date, but in any event no later than the Expiration Date. All
      Unvested Shares or any right or claim to such shares shall be immediately
      forfeited as of the termination date.

    

    (b) If
      Participant’s employment with the Company is terminated (i) in connection with a
      Change in Control, (ii) by death or Disability, (iii) by the Participant for
      Good Reason, or (iv) by the Company for reasons other than for Cause, then
      the
      Option shall, as provided in Section 2(a)(iv) above, become fully vested and
      exercisable upon the Participant’s termination of employment and may be
      exercised by Participant (or Participant’s legal representative) no later than
      12 months after the termination date, but in any event no later than the
      Expiration Date. 

    

    (c) Notwithstanding
      anything in the Agreement or Plan to the contrary, if the Participant is
      terminated by the Company for Cause, any unexercised portion of the Option,
      whether vested or not, shall expire and any right, title or interest in the
      Option or the Option Shares thereunder shall be forfeited as of the
      participant’s termination date from the Company. 

     

    4. NO
      OBLIGATION TO EMPLOY. 

    

    Nothing
      in the Plan or this Agreement shall confer on Participant any right to continue
      in the employ of, or other relationship with the Company or limit in any way
      the
      right of the Company to terminate Participant’s employment or other relationship
      at any time, with or without Cause. 

     

    5. MANNER
      OF EXERCISE. 

    

    (a) To
      exercise this Option, Participant (or in the case of exercise after
      Participant’s death or incapacity, Participant’s executor, administrator, heir
      or legatee, as the case may be) must deliver written notice of exercise to
      the
      Company (the “Exercise Agreement”), which shall set forth, inter alia, (i)
      Participant’s election to exercise the Option, (ii) the number of Shares being
      purchased and (iii) any representations, warranties and agreements regarding
      Participant’s investment intent and access to information as may be required by
      the Company to comply with applicable securities laws. If someone other than
      Participant exercises the Option, then such person must submit documentation
      reasonably acceptable to the Company verifying that such person has the legal
      right to exercise the Option and such person shall be subject to all of the
      restrictions contained herein as if such person were the Participant.

    

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    (b) This
      Option may not be exercised unless such exercise is in compliance with all
      applicable federal and state securities laws, as they are in effect on the
      date
      of exercise. The Exercise Agreement shall be accompanied by full payment of
      the
      Exercise Price for the Shares being purchased in cash (including by check)
      or as
      permitted under the Plan. The Exercise Price must be paid in United States
      dollars, in cash or by personal check payable to the order of the Company,
      at
      the time of purchase.

    

    (c) Alternatively,
      subject to applicable law, the Participant may elect to pay the Exercise Price,
      or any part of it, by: (i) delivering Mature Shares (valued at their Fair
      Market Value) or (ii) having the Company retain Shares (valued at their Fair
      Market Value); or (iii) any combination of cash, personal check and (i) or
      (ii).

    

    (d) The
      Company may make available, in its sole discretion and subject to applicable
      law, a special sale and remittance procedure pursuant to which the Participant
      (or any other person or persons exercising the Option) shall provide irrevocable
      written instructions concurrently to: (i) a Participant-designated brokerage
      firm acceptable to the Company to effect the immediate sale of a portion of
      the
      Shares to be received pursuant to the exercise of the Option, and remit to
      the
      Company, out of the sale proceeds available on the settlement date or otherwise,
      the minimum amount of funds required to cover the aggregate Exercise Price
      payable for the Option Shares plus all Applicable Withholding Taxes; and (ii)
      the Company to deliver promptly upon receipt of such funds the certificates
      for
      such Shares directly to such brokerage firm.

    

    6. TAX
      WITHHOLDING. 

    

    Prior
      to
      the issuance of Shares upon exercise of the Option, Participant shall pay,
      or
      make arrangements satisfactory to the Company regarding the payment to the
      Company of, Applicable Withholding Taxes. The Participant may elect to satisfy
      Applicable Withholding Taxes by (i) making a cash payment or authorizing
      additional withholding from cash compensation, (ii) delivering Mature Shares
      (valued at their Fair Market Value), or (iii) having the Company retain that
      number of Shares (valued at their Fair Market Value) that would satisfy all
      or a
      specified portion of the Applicable Withholding Taxes.

     

    7. COMPLIANCE
      WITH LAWS AND REGULATIONS. 

    

    (a) The
      exercise of this Option and the issuance and transfer of Shares shall be subject
      to compliance by the Company and Participant with all applicable requirements
      of
      applicable securities laws. If at any time the Committee determines that
      exercising the Option or issuing Shares would violate applicable securities
      laws, the Option will not be exercisable, and the Company will not be required
      to issue Shares. The Committee may declare any provision of this Agreement
      or
      action of its own null and void, if it determines the provision or action fails
      to comply with the short-swing trading rules. As a condition to exercise, the
      Company may require the Participant to make written representations it deems
      necessary or desirable to comply with applicable securities laws.

    

    (b) No
      person
      who acquires Shares under this Agreement may sell the Shares, unless the offer
      and sale are made pursuant to an effective registration statement under the
      Securities Act of 1933, as amended (the "Securities Act"), that is current
      and
      includes the Shares to be sold, or an exemption from the registration
      requirements of the Securities Act.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    8. NONTRANSFERABILITY
      OF OPTION. 

    

    The
      Option may not be transferred in any manner other than by will or by the laws
      of
      descent and distribution, and may be exercised during the lifetime of
      Participant only by Participant or in the event of Participant’s incapacity, by
      Participant’s legal representative. The terms of the Option shall be binding
      upon the executors, administrators, successors and assigns of Participant.
      

    

    9. PRIVILEGES
      OF STOCK OWNERSHIP. 

    

    The
      Participant shall not have any of the rights of a stockholder with respect
      to
      any Shares until the Shares are issued to the Participant. 

    

    10. INTERPRETATION.
      

    

    Any
      dispute regarding the interpretation of this Agreement shall be submitted by
      Participant or the Company to the Committee for review. The resolution of such
      a
      dispute by the Committee shall be final and binding on the Company and
      Participant. 

    

    11. ENTIRE
      AGREEMENT. 

    

    The
      Plan
      is incorporated herein by reference. This Agreement and the Plan constitute
      the
      entire agreement and understanding of the parties with respect to the subject
      matter of this Agreement, and supersede all prior understandings and agreements,
      whether oral or written, between or among the parties hereto with respect to
      the
      specific subject matter hereof. 

    

    12. NOTICES.
      

    

    Any
      and
      all notices required or permitted to be given to a party pursuant to the
      provisions of this Agreement shall be in writing and shall be effective and
      deemed to provide such party sufficient notice under this Agreement on the
      earliest of the following: 

    

    (a)
       at
      the
      time of personal delivery, if delivery is in person; 

    

    (b)
       2
      business days after deposit with an express overnight courier;

    

    (c)
       3
      business days after deposit by regular mail. 

    

    All
      notices not delivered personally shall be sent with postage and/or other charges
      prepaid and properly addressed to the party to be notified at the address set
      forth below on the signature lines of this Agreement, or at such other address
      as such party may designate by one of the indicated means of notice herein
      to
      the other parties hereto. Notices to the Company shall be marked “Attention:
      Chief Financial Officer.” 

    

    13. SUCCESSORS
      AND ASSIGNS. 

    

    The
      Company may assign any of its rights under this Agreement. No other party to
      this Agreement may assign, whether voluntarily or by operation of law, any
      of
      its rights and obligations under this Agreement, except as expressly permitted
      herein or under the Plan or with the prior written consent of the Company.
      This
      Agreement shall be binding upon and inure to the benefit of the successors
      and
      assigns of the Company. Subject to the restrictions on transfer set forth
      herein, this Agreement shall be binding upon Participant and Participant’s
      heirs, executors, administrators, legal representatives, successors and assigns.
      

    

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    14. NO
      LIMITATION ON RIGHTS OF THE COMPANY.

     

    The
      grant of the Option does not and will not in any way affect the right or power
      of the Company to make adjustments, reclassifications or changes in its capital
      or business structure, or to merge, consolidate, dissolve, liquidate, sell
      or
      transfer all or any part of its business or assets.

    

    15. PLAN
      DOCUMENT CONTROLS.

     

    The
      rights granted under this Agreement are in all respects subject to the
      provisions set forth in the Plan to the same extent and with the same effect
      as
      if set forth fully in this Agreement. If the terms of this Agreement conflict
      with the terms of the Plan document, the Plan document will
      control.

    

    16. GOVERNING
      LAW.

    

    This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      state of New York.

     

    17. ACCEPTANCE.
      

    

    The
      Participant hereby acknowledges receipt of a copy of the Plan and this
      Agreement. Participant has read and understands the terms and provisions
      thereof, and accepts the Option subject to all the terms and conditions of
      the
      Plan and this Agreement. The Participant acknowledges that there may be adverse
      tax consequences upon exercise of the Option or disposition of the Shares and
      that Participant should consult a tax adviser prior to such exercise or
      disposition. 

    

    18. FURTHER
      ASSURANCES. 

    

    The
      parties agree to execute such further documents and instruments and to take
      such
      further actions as may be reasonably necessary to carry out the purposes and
      intent of this Agreement. 

     

    19. TITLES
      AND HEADINGS. 

    

    The
      titles, captions and headings of this Agreement are included for ease of
      reference only and shall be disregarded in interpreting or construing this
      Agreement. Unless otherwise specifically stated, all references herein to
“sections” and “exhibits” shall mean “sections” and “exhibits” to this
      Agreement. 

    

    20. COUNTERPARTS.
      

    

    This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed and delivered shall be deemed an original, and all of which together
      shall constitute one and the same agreement. 

    

    21. CODE
      SECTION 409A NOT TO APPLY.

    

    It
      is the
      Company’s intention that Code Section 409A shall not apply to the Option granted
      hereunder. The Exercise Price for each share subject to the Option may never
      be
      less than 100% the Fair Market Value on the date the Option is granted except
      in
      the case of adjustments permitted by the Plan, and there shall be no deferral
      of
      compensation under the Option other than the deferral of recognition of income
      until the later of exercise or disposition of the Option under Section 1.83-7
      of
      the Income Tax Regulations.

    

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    22. SEVERABILITY.
      

    

    If
      any
      provision of this Agreement is determined by any court or arbitrator of
      competent jurisdiction to be invalid, illegal or unenforceable in any respect,
      such provision shall be enforced to the maximum extent possible given the intent
      of the parties hereto. If such clause or provision cannot be so enforced, such
      provision shall be stricken from this Agreement and the remainder of this
      Agreement shall be enforced as if such invalid, illegal or unenforceable clause
      or provision had (to the extent not enforceable) never been contained in this
      Agreement. Notwithstanding the forgoing, if the value of this Agreement based
      upon the substantial benefit of the bargain for any party is materially
      impaired, which determination as made by the presiding court or arbitrator
      of
      competent jurisdiction shall be binding. 

    

    IN
      WITNESS WHEREOF, the Company has caused this Agreement to be executed in
      duplicate by its duly authorized representative and Participant has executed
      this Agreement in duplicate, effective as of the Date of Grant.

     

    

    
      	
              ETHANEX
                ENERGY, INC. 

               

              By:
                /s/
                Albert W. Knapp, III

              Albert
                W. Knapp, III

              President
                and Chief Executive Officer

            	
              PARTICIPANT:

               

              /s/
                David J. McKittrick

              David
                J. McKittrick

            

    

    

    

    
      
        
        

      

      
        -6-

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