Document:

Dated April
                25, 2008

            
	 
	 
	 
	 
	 
	 
	
              ORION
                ETHANOL, INC. (“Seller”)

               

              and

               

              MERCY,
                LLC (the “Buyer”)

            
	
               

            
	
               

            
	
               

            
	
               

            
	
               

            
	
               

            
	
              UNIT
                PURCHASE AGREEMENT

            
	 
	 
	 
	 
	 
	 
	
              Shook
                Hardy and Bacon

              2555
                Grand Blvd

              Kansas
                City, Missouri 64108-2613

              Telephone 816-474-6550

              Facsimile
                816-421-5547

               

              Attn:
                Patrick Henderson

            	
               

               

            

    

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

    UNIT
      PURCHASE AGREEMENT
      dated as
      of April 25, 2008, (the “Agreement”)
      between ;

     

    
      	
              (1)

            	
              ORION
                ETHANOL, INC.,
                a
                Nevada corporation, a Nevada corporation (the “Seller”);
                and

            

    

     

    
      	
              (2)

            	
              MERCY,
                LLC ,
                a
                Kansas limited liability company (the “Buyer”).
                

            

    

     

    

     

    WITNESSETH

     

    Whereas:

     

    
      	(A)	
              GATEWAY
                HOLDCO,
                L.L.C., a
                Kansas limited liability company (the “Company”)
                was formed by the filing of Articles of Organization on August 29,
                2005 as
                a holding company for the construction and operation of a dry-mill
                ethanol
                plan in Pratt County (the “Plant”)
                through its subsidiary, Gateway Ethanol, L.L.C. ( “Gateway
                Ethanol”);

            

    

     

    
      	
              (B)

            	
              The
                Company has issued a capital call for the infusion of additional
                capital
                to assist the Plant in becoming operational (the “Capital
                Call”),
                and Seller intends to use the proceeds from the sale of the Units
                pursuant
                to this Agreement for purposes of fulfilling its obligations under
                the
                Capital Call; 

            

    

     

    
      	
              (C)

            	
              Seller
                wishes to sell 4,172 Class A Units (the “Units”)
                to the Buyer, and the Buyer wishes to purchase the Units from the
                Seller,
                on the terms and subject to the conditions and for the consideration
                described in this Agreement; and

            

    

     

    
      	
              (D)

            	
              The
                Seller has complied with or the Company has waived any notice or
                other
                requirement of the Operating Agreement of the Company (the “Operating
                Agreement”)
                regarding the transactions contemplated by this Agreement. Capitalized
                terms used but not defined in this Agreement shall have the meaning
                assigned to them in the Operating Agreement.

            

    

     

    Now,
      therefore,
      in
      consideration of the mutual promises and covenants set forth below and for
      other
      good and valuable consideration, the receipt and sufficiency of which is hereby
      acknowledged, and intending to be legally bound, the parties hereto agree as
      follows:

     

    ARTICLE
      I

    Definitions

     

    Section
      1.1 Definition
      of Certain Terms 

     

    The
      following terms, as used herein, have the following meanings:

     

    “Affiliate”
of
      a
      Person means a Person that directly or indirectly through one or more
      intermediaries, controls, is controlled by, or is under common control with,
      the
      first Person. “Control” (including the terms “controlled by” and “under common
      control with”) means the possession, directly or indirectly, of the power to
      direct or cause the direction of the management policies of a Person, whether
      through the ownership of voting securities, by contract or credit arrangement,
      as trustee or executor, or otherwise.

     

    “Agreement”
means
      this Unit Purchase Agreement, including the Schedules and Exhibits
      hereto.

     

    “Ancillary
      Agreements”
means,
      collectively, the Indemnification and Hold Harmless Agreement referred to in
      Section 2.2(f) and the minutes of the Seller’s board meetings referred to in
      Section 2.2(d).

     

    “Business”
means
      the business of building and organizing an ethanol production facility as
      conducted by the Company.

     

    “Business
      Day”
means
      a
      day other than a Saturday, Sunday or other day on which commercial banks in
      Pratt, Kansas are authorized or required to close.

     

    “Buyer”
has
      the
      meaning given in the preamble of this Agreement.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    “Buyer
      Indemnitees”
has
      the
      meaning given in Section 9.1.

     

    “Cap”
has
      the
      meaning given in Section 9.3(a).

     

    “Closing”
has
      the
      meaning given in Section 2.2.

     

    “Closing
      Date”
has
      the
      meaning given in Section 2.2.

     

    “Code”
means
      the Internal Revenue Code of 1986, as amended, and the rules and regulations
      promulgated thereunder.

     

    “Company”
has
      the
      meaning given in the recitals to this Agreement.

     

    “Confidential
      Information”
means
      any information concerning the business and affairs of the Company that is
      not
      already generally available to the public.

     

    “Consent”
means
      any consent, approval, authorization, novation, waiver, permit, grant,
      franchise, concession, agreement, license, exemption or order of, registration,
      certificate, declaration or filing with, or report or notice to, any Person,
      including any Governmental Authority.

     

    “Contract”
means
      any contract, agreement, arrangement, purchase order, note, mortgage, indenture,
      license, lease, sublease, plan, commitment or other instrument, whether written
      or oral.

     

    “Purchase
      Price”
has
      the
      meaning given in Section 2.3(d).

     

    “Governmental
      Approval”
means
      any Consent of, or with, any Governmental Authority.

     

    “Governmental
      Authority”
means
      any international, supranational or national government, any state, provincial,
      local or other political subdivision thereof, any entity, authority or body
      exercising executive, legislative, judicial, regulatory or administrative
      functions of or pertaining to government, including any government authority,
      agency, department, board, commission or instrumentality of the United States
      or
      a foreign nation or jurisdiction, any State of the United States or any
      political subdivision of any thereof, any court, tribunal or arbitrator, or
      any
      self-regulatory organization.

     

    “Indemnified
      Party”
has
      the
      meaning given in Section 9.5(a).

     

    “Indemnifying
      Party”
has
      the
      meaning given in Section 9.5(a).

     

    “Units”
has
      the
      meaning given in the recitals of this Agreement.

     

    “Knowledge”
of
      any
      Person means the actual knowledge of such Person (and in the case of any Person
      that is not an individual, such Person’s directors or executive officers) after
      reasonable inquiry.

     

    “Law”
means
      any federal, state, local, foreign, international or supranational law
      (including common law), statute, treaty, ordinance, rule, regulation, Order,
      code, governmental restriction or other legally binding
      requirement.

     

    “Liabilities”
means
      any and all debts, losses, liabilities, claims, damages, fines, costs,
      royalties, proceedings, deficiencies or obligations of any nature, whether
      known
      or unknown, absolute, accrued, contingent or otherwise and whether due or to
      become due, and any out-of-pocket costs and expenses (including attorneys’,
      accountants’ or other fees and expenses).

     

    “Lien”
means
      any mortgage, pledge, hypothecation, right of others, claim, charge, security
      interest, encumbrance, adverse claim or interest, easement, covenant,
      encroachment, servitude, option, lien, put or call right, right of first offer
      or refusal, voting right or other restrictions or limitations of any nature
      whatsoever.

     

    “Litigation”
means
      any action, cause of action, claim, cease and desist letter, demand, suit,
      proceeding, arbitration, citation, summons, subpoena or investigation of any
      nature, civil, criminal, regulatory or otherwise, in law or in
      equity.

     

    “Losses”
has
      the
      meaning given in Section 9.1.

     

    
      
         

      

      
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    “Material
      Adverse Effect”
means
      (i) a materially adverse effect on the business, assets, liabilities or the
      results of operations or condition (financial or otherwise) of the Company,
      taken as a whole, (ii) any material impairment of the ability of any party
      to
      perform its obligations under this Agreement or (iii) any effect that prevents
      or materially delays the consummation of any of the transactions contemplated
      by
      this Agreement.

     

    “Notice”
has
      the
      meaning given in Section 10.2.

     

    “Operating
      Agreement”
has
      the
      meaning given in the recitals of this Agreement.

     

    “Order”
means
      any judgment, order, administrative order, writ, stipulation, injunction
      (whether permanent or temporary), award, decree or similar legal restraint
      of,
      or binding settlement having the same effect with, any Governmental
      Authority.

     

    “Ordinary
      Course”
or
      “Ordinary
      Course of Business”
means
      the conduct of the Business in accordance with the Company normal day-to-day
      customs, practices and procedures, consistent with past practice.

     

    “Person”
means
      any natural person, firm, limited liability company, general or limited
      partnership, association, corporation, company, joint venture, trust,
      Governmental Authority or other entity.

     

    “Project”
      has the
      meaning given in the recitals of this Agreement.

     

    “Property”
      has the
      meaning given in the recitals of this Agreement.. 

     

    “Release”
means
      any releasing, disposing, discharging, injecting, spilling, leaking, leaching,
      pumping, dumping, emitting, escaping, emptying, seeping, dispersal, migration,
      transporting, placing and the like, including the moving of any materials
      through, into or upon, any land, soil, surface water, groundwater or air, or
      otherwise entering into the indoor or outdoor environment.

     

    “Remedial
      Action”
means
      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.

     

    “Representatives”
means,
      with respect to any Person, such Person’s accountants, counsel, financial and
      other advisors, representatives, consultants, directors, officers, employees,
      stockholders, partners, members and agents.

     

    “Seller”
has
      the
      meaning given in the preamble of this Agreement.

     

    “Seller’s
      Indemnitees”
has
      the
      meaning given in Section 9.2.

     

    “Tax”
means
      any federal, state, local, foreign or other taxes, fees and charges of any
      nature whatsoever imposed by any jurisdiction or governmental or taxing
      authority thereof or therein (including income (net or gross), gross receipts,
      profits, alternative or add-on minimum, franchise, license, capital, capital
      stock, intangible, services, premium, mining, transfer, sales, use, ad valorem,
      payroll, wage, severance, windfall profits, import, excise, custom, stamp,
      withholding or estimated taxes), fees, duties, assessments, withholding or
      governmental charges of any kind whatsoever, including escheat or unclaimed
      property obligations (including interest, penalties, additions to tax or
      additional amounts with respect to such items).

     

    “Tax
      Return”
means
      any return, report, declaration, form, claim for refund or information return
      or
      statement relating to Taxes, including any schedule or attachment thereto,
      and
      including any amendment thereof.

     

    “Third
      Party Claim”
has
      the
      meaning given in Section 9.5(a).

     

    “Units”
      has the
      meaning given in the recitals to this Agreement.

     

    
      
         

      

      
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    Section
      1.2 Headings;
      Table of Contents

     

    Headings
      and table of contents should be ignored in construing this
      Agreement.

     

    Section
      1.3 Singular,
      Plural, Gender

     

    References
      to one gender include all genders and references to the singular include the
      plural and vice
      versa.

     

    Section
      1.4 Schedules

     

    References
      to this Agreement shall include any Exhibits, Schedules and Recitals to it
      and
      references to Sections, Exhibits and Schedules are to Sections of, Exhibits
      to
      and Schedules to, this Agreement.

     

    Section
      1.5 Information

     

    References
      to books, records or other information mean books, records or other information
      in any form including paper, electronically stored data, magnetic media, film
      and microfilm.

     

    Section
      1.6 Interpretation

     

    In
      this
      Agreement, unless the context otherwise requires, any reference to “including”
or “in particular” shall be illustrative only and without
      limitation.

     

     

    ARTICLE
      II

    Sale
      and Purchase of Units

     

    Section
      2.1 Sale
      and Purchase of the Units

     

    On
      the
      terms and subject to the conditions hereof, at the Closing, the Seller shall
      sell the Units to the Buyer, and the Buyer shall purchase the Units from the
      Seller.

     

    Section
      2.2 Closing 

     

    The
      closing of the sale and purchase of the Units (the “Closing”)
      shall
      take place at the offices of Seller at 4:30 p.m. local time on April 25, 2008
      (the “Closing
      Date”).
      At
      the Closing:

     

    
      	 	
              (a)

            	
              the
                Seller shall deliver or caused to be delivered to the Buyer, free
                and
                clear of any Liens, the Units, accompanied by stock powers or other
                instruments of transfer duly executed in
                blank;

            

    

     

    
      	 	
              (b)

            	
              the
                Buyer shall pay or cause to be paid the Purchase Price Payment to
                the
                Seller, by wire transfer of immediately available funds to an account
                designated by the Seller on the Closing
                Date;

            

    

     

    
      	 	
              (c)

            	
              the
                Seller and the Buyer shall each deliver all other instruments, agreements,
                certificates and documents required to be delivered by such party
                on or
                prior to the Closing Date pursuant to this Agreement, including,
                without
                limitation, the Ancillary Agreements, if
                any;

            

    

     

    
      	 	
              (d)

            	
              the
                Seller shall deliver to the Buyer signed and approved minutes of
                the
                Seller’s Board meeting held on April 23, 2008 and April 25, 2008
                authorizing and otherwise approving this Agreement and all Ancillary
                Agreements;

            

    

     

    
      	 	
              (e)

            	
              the
                Seller shall deliver in form and substance agreeable to Buyer a valid,
                binding agreement indemnifying and holding harmless Jerry Nash from
                any
                and all liability, attorneys’ fees and expenses as a result of any
                lawsuit, claim or cause of action (no matter the type of legal proceeding)
                that is based in whole or in part on this Agreement or the transactions
                contemplated hereunder and based on any way of Mr. Nash’s service as a
                Director of the Seller. 

            

    

     

    
      
         

      

      
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    Section
      2.3 Purchase
      Price 

     

    In
      consideration of the transfer to the Buyer of the Units by the Seller, the
      Buyer
      shall pay a purchase price at Closing of $2,200,000 (the “Purchase
      Price Payment”)
      in
      cash or other immediately available funds. The parties and each of them agree
      that the Purchase Price represents fair and reasonable compensation for the
      Units. Seller waives any and all claims against Buyer and Jerry Nash that may
      be
      based, in whole or in part, directly or indirectly, on an allegation that the
      Purchase Price for the Units was inadequate. Seller and Buyer agree that the
      transaction is not, in whole or in part, a distribution of assets to or for
      the
      benefit of Buyer or Jerry Nash as a shareholder of Seller, that the transaction
      is not a partial liquidation of Seller, that the transaction does not constitute
      a dividend, that the transaction is not a “part sale, part gift,” and that the
      transaction shall not cause Buyer to recognize taxable income. Seller and Buyer
      agree to cooperate fully with each other in any Tax proceedings related to
      or
      arising out of this transaction. 

     

    ARTICLE
      III

    Representations
      and Warranties of the Seller

     

    Seller
      hereby represents and warrants to the Buyer as of the date hereof and as of
      the
      Closing Date, as follows:

     

    Section
      3.1 Authorization;
      Binding Effect

     

    Seller
      has full power and authority to execute and deliver this Agreement and each
      Ancillary Agreement to which it will be a party, to perform fully its
      obligations hereunder and thereunder and to consummate the transactions
      contemplated hereby and thereby. The execution, delivery and performance by
      the
      Seller of this Agreement, and the consummation of the transactions contemplated
      hereby, have been, and on the Closing Date, the execution and delivery by the
      Seller of the Ancillary Agreements to which it will be a party will have been,
      duly and validly authorized by Seller. Seller has duly executed and delivered
      this Agreement and, on the Closing Date, will have duly executed and delivered
      each Ancillary Agreement to which it will be a party. This Agreement is and,
      on
      the Closing Date, each Ancillary Agreement to which Seller will be a party
      will
      be, a legal, valid and binding obligation of Seller, enforceable against Seller
      in accordance with their respective terms. 

     

    Section
      3.2 Corporate
      Status

     

    The
      Company is a Nevada corporation duly incorporated, validly existing and in
      good
      standing under the laws of the state of Nevada with full corporate power and
      authority to conduct its business and to own or lease and to operate its
      properties.

     

    Section
      3.3 Title
      to Units

     

    The
      Units
      have been duly authorized and validly issued, are fully paid and non-assessable
      and were not issued in contravention of any preemptive rights, rights of first
      refusal or first offer or similar rights. Seller holds of record and owns
      beneficially the Units free and clear of any Liens. Upon delivery of and payment
      for the Units at the Closing, the Buyer will acquire good and valid title to
      all
      of the Units, free and clear of any Liens.

     

    Section
      3.4 Governmental
      Approvals

     

    The
      execution, delivery and performance by Seller
      and the Company of this Agreement and each of the Ancillary Agreements to which
      it is a party, and the consummation of the transactions contemplated hereby
      and
      thereby, does not require any Governmental Approvals.

     

    Section
      3.5 No
      Conflicts

     

    The
      execution, delivery and performance by Seller and the Company of this Agreement
      and each of the Ancillary Agreements to which it is a party, and the
      consummation of the transactions contemplated hereby and thereby, do not and
      will not conflict with, contravene, result in a violation or breach of or
      default under (with or without the giving of notice or the lapse of time or
      both), cause or permit the termination, modification, acceleration or vesting
      of
      any right or obligation or the loss of any benefit to which any such Person
      is
      entitled to under any Contract to which such Person or any Affiliate thereof
      is
      a party or by which such Person or any of its properties or assets may be bound
      or affected or result in the creation of any Lien upon any of the Units and
      will
      not materially impair or delay the ability of the Seller or the Company to
      perform their obligations under this Agreement or under any of the Ancillary
      Agreements to which they are a party.

     

    
      
         

      

      
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    Section
      3.6 Litigation

     

    There
      is
      no Litigation pending or, to the Knowledge of the Seller, threatened against
      or
      affecting the Seller relating to the transactions contemplated hereby or that
      may have a material affect on the operations of the Seller. 

     

    Section
      3.7 Brokers
      and Finders

     

    No
      investment banker, broker, finder or other intermediary has been retained by
      or
      is authorized to act on behalf of the Seller or any of its Affiliates, and
      no
      such Person is entitled to any fee or commission from the Buyer or any of its
      Affiliates or the Company, in connection with the transactions contemplated
      by
      this Agreement.

     

    ARTICLE
      IV

    Representations
      and Warranties of the Buyer

     

    As
      of the
      date hereof and as of the Closing Date, the Buyer represents and warrants to
      the
      Seller as follows: 

     

    Section
      4.1 Authorization;
      Binding Effect

     

    Buyer
      has
      full power and authority to execute and deliver this Agreement and the Ancillary
      Agreements to which it is a party, to perform its obligations thereunder and
      to
      consummate the transactions contemplated hereby and thereby. The execution,
      delivery and performance by the Buyer of this Agreement, and the consummation
      of
      the transactions contemplated hereby, have been, and on the Closing Date, the
      execution and delivery by the Buyer of the Ancillary Agreements to which it
      will
      be a party will have been, duly and validly authorized by Buyer. The Buyer
      has
      duly executed and delivered this Agreement and on the Closing Date the Buyer
      will have duly executed and delivered the Ancillary Agreements to which it
      is a
      party. This Agreement is, and on the Closing Date, each of the Ancillary
      Agreements to which the Buyer is a party will be, a legal, valid, binding and
      enforceable obligation of the Buyer, enforceable against the Buyer in accordance
      with their respective terms.

     

    Section
      4.2 Governmental
      Approvals

     

    The
      execution, delivery and performance by the Buyer of this Agreement and each
      of
      the Ancillary Agreements to which it will be a party, and the consummation
      of
      the transactions contemplated hereby and thereby, require no Governmental
      Approvals.

     

    Section
      4.3 No
      Conflicts

     

    The
      execution, delivery and performance by the Buyer of this Agreement and each
      of
      the Ancillary Agreements to which it will be a party, and the consummation
      of
      the transactions contemplated hereby and thereby, do not and will not conflict
      with or result in a violation or breach of or default under (with or without
      the
      giving of notice or the lapse of time, or both) cause or permit the termination,
      modification, acceleration or vesting of any right or obligation or the loss
      of
      any benefit to which any such Person is entitled to under any Contract to which
      such Person or any Affiliate thereof is a party or by which such Person or
      any
      of its properties or assets may be bound or affected and will not materially
      impair or delay the ability of the Buyer to perform its obligations under this
      Agreement or under any of the Ancillary Agreements to which it is a
      party.

     

    Section
      4.4 Litigation

     

    There
      is
      no Litigation pending, or to the Knowledge of the Buyer, threatened against
      or
      affecting the Buyer relating to the transactions contemplated
      hereby.

     

    
      
         

      

      
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    Section
      4.5 Brokers
      and Finders

     

    No
      investment banker, broker, finder or other intermediary has been retained by
      or
      is authorized to act on behalf of the Buyer or any of its Affiliates, and no
      such Person is entitled to any fee or commission from the Seller or any of
      their
      Affiliates in connection with the transactions contemplated by this
      Agreement.

     

    ARTICLE
      V

    Covenants

     

    Section
      5.1 Covenants
      of the Seller 

     

    
      	 	
              (a)

            	
              Conduct
                of Business From
                the date hereof until the Closing, the Seller shall, and shall cause
                the
                Company to, conduct the Business in the Ordinary Course, use its
                commercially reasonable efforts to preserve intact the business,
                the
                assets and the relationships of the Company with their respective
                customers, suppliers, regulators and others having business dealings
                with
                them.

            

    

     

    
      	 	
              (b)

            	
              No
                Solicitation
                Until the earlier of the termination of this Agreement and the Closing,
                the Seller shall not, and shall cause their Affiliates and any Persons
                acting on its behalf not to, directly or indirectly, (i) solicit,
                initiate, facilitate or encourage any inquiries or proposals for,
                or
                continue or enter into any discussions, negotiations, understanding,
                arrangements or agreements with respect to, the acquisition of any
                Units
                or any portion of the assets of the Company whether by sale, merger
                or
                otherwise, or (ii) furnish or cause to be furnished any material
                non-public information concerning the Company.

            

    

     

    
      	 	
              (c)

            	
              Public
                Announcements
                Seller shall not, and shall not permit any of its Affiliates to,
                make any
                public announcement in respect of this Agreement or the Ancillary
                Agreements or the transactions contemplated hereby or thereby without
                the
                prior consent of the Buyer except as required by applicable
                Law.

            

    

     

    
      	 	
              (d)

            	
              Further
                Actions

            

    

     

    
      	 	
              (i)

            	
              Seller
                shall use its commercially reasonable efforts to take all actions
                and to
                do all things necessary, proper or advisable to consummate the
                transactions contemplated hereby by the Closing Date;
                

            

    

     

    
      	 	
              (ii)

            	
              Seller
                shall, as promptly as practicable, file or supply, or cause to be
                filed or
                supplied, all applications, notifications and information required
                to be
                filed or supplied by it pursuant to applicable Law in connection
                with this
                Agreement and the Ancillary Agreements and the consummation of the
                other
                transactions contemplated hereby and
                thereby.

            

    

     

    
      	 	
              (iii)

            	
              Seller
                shall, as promptly as practicable, use its commercially reasonable
                efforts
                to obtain, or cause to be obtained, all Consents (including all
                Governmental Approvals and all Consents required under any contracts)
                necessary to be obtained in order to consummate the transactions
                contemplated by this Agreement.

            

    

     

    
      	 	
              (iv)

            	
              Seller
                shall, and shall cause its respective Affiliates to, coordinate and
                cooperate with the Buyer in exchanging such information and supplying
                such
                assistance as may be reasonably requested by the
                Buyer.

            

    

     

    
      	 	
              (e)

            	
              Further
                Assurances
                Following the Closing, Seller shall, and shall cause its Affiliates,
                from
                time to time, to, execute and deliver such additional instruments,
                documents, conveyances or assurances and take such other actions
                as shall
                be necessary, or otherwise reasonably requested by the Buyer, to
                confirm
                and assure the rights and obligations provided for in this Agreement
                and
                in the Ancillary Agreements and render effective the consummation
                of the
                transactions contemplated hereby and
                thereby.

            

    

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    
      	 	
              (f)

            	
              Specific
                Performance The
                parties acknowledge that there may be no adequate remedy at law for
                a
                breach of this Section 5.1 and that money damages may not be an
                appropriate remedy for breach of such Section. The parties accordingly
                agree that the Buyer shall have the right to injunctive relief and
                specific performance of this Section 5.1 in the event of any breach
                of such Section in addition to any rights it may have for damages,
                which shall include out-of-pocket expenses, attorneys’ fees and expenses,
                court costs, loss of business opportunities and any other damages,
                direct
                and indirect, consequential, punitive or otherwise. The remedies
                set forth
                in this Section 5.1(f) are cumulative and shall in no way limit any
                other remedy any party hereto has at law, in equity or pursuant
                hereto.

            

    

     

    
      	 	
              (g)

            	
              Confidentiality
                Seller
                will treat and hold as such all of the Confidential Information,
                refrain
                from using any of the Confidential Information except in connection
                with
                this Agreement, and deliver promptly to the Buyer or destroy, at
                the
                request and option of the Buyer, all tangible embodiments (and all
                copies)
                of the Confidential Information which are in its possession. In the
                event
                that Seller is requested or required (by oral question or request
                for
                information or documents in any legal proceeding, interrogatory,
                subpoena,
                civil investigative demand, or similar process) to disclose any
                Confidential Information, then Seller will notify the Buyer promptly
                of
                the request or requirement so that the Buyer may seek an appropriate
                protective order or waive compliance with the provisions of this
                Section
                5.1(g). If, in the absence of a protective order or the receipt of
                a
                waiver hereunder, Seller may, on the advice of counsel, that it might
                otherwise stand liable for contempt, Seller may disclose the Confidential
                Information to the tribunal; provided, however, that the Seller shall
                use
                its best efforts to obtain the assurance that confidential treatment
                will
                be accorded to such portion of the Confidential Information required
                to be
                disclosed as the Buyer shall designate. The foregoing provisions
                shall not
                apply to any Confidential Information which is generally available
                to the
                public immediately prior to the time of disclosure.
                

            

    

     

    Section
      5.2 Covenants
      of the Buyer

     

    
      	 	
              (a)

            	
              Further
                Actions

            

    

     

    
      	 	
              (i)

            	
              The
                Buyer shall use its commercially reasonable efforts to take all actions
                and to do all things necessary, proper or advisable to consummate
                the
                transactions contemplated hereby by the Closing Date.
                

            

    

     

    
      	 	
              (ii)

            	
              The
                Buyer shall, as promptly as practicable, file or supply, or cause
                to be
                filed or supplied, all applications, notifications and information
                required to be filed or supplied by the Buyer pursuant to applicable
                Law
                in connection with this Agreement and the Ancillary Agreements and
                the
                consummation of the transactions contemplated hereby and
                thereby.

            

    

     

    
      	 	
              (iii)

            	
              The
                Buyer shall coordinate and cooperate with the Seller in exchanging
                such
                information and supplying such assistance as may be reasonably requested
                by the Seller. 

            

    

     

    
      	 	
              (b)

            	
              Further
                Assurances
                Following the Closing, the Buyer shall, from time to time, execute
                and
                deliver such additional instruments, documents, conveyances or assurances
                and take such other actions as shall be necessary, or otherwise reasonably
                requested by the Seller, to confirm and assure the rights and obligations
                provided for in this Agreement and in the Ancillary Agreements and
                render
                effective the consummation of the transactions contemplated hereby
                and
                thereby.

            

    

     

    
      
         

      

      
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    ARTICLE
      VI

    Conditions
      Precedent

     

    Section
      6.1 Conditions
      to Obligations of Each Party

     

    The
      obligations of the parties to consummate the transactions contemplated hereby
      shall be subject to the satisfaction or waiver on or prior to the Closing Date
      of the following condition:

     

    
      	 	
              (a)

            	
              No
                Injunctions.
                The consummation of the transactions contemplated hereby or by the
                Ancillary Agreements shall not have been enjoined or prohibited by
                applicable Law and no proceeding by or before any Governmental Authority
                challenging such transactions shall have been initiated or threatened.
                

            

    

     

    
      	 	
              (b)

            	
              Ancillary
                Agreements.
                Each of the Ancillary Agreements shall be in full force and effect
                as of
                the Closing Date and become effective in accordance with the respective
                terms thereof and the actions required to be taken thereunder by
                the
                parties thereto immediately prior to the Closing Date shall have
                been
                taken, and each person or entity who or which is required or contemplated
                by the parties hereto to be a party to any Ancillary Agreement who
                or
                which did not theretofore enter into such Ancillary Agreement shall
                execute and deliver such Ancillary Agreement.  

            

    

     

    Section
      6.2 Conditions
      to Obligations of the Buyer

     

    The
      obligations of the Buyer to consummate the transactions contemplated hereby
      shall be subject to the satisfaction (or waiver by the Buyer) on or prior to
      the
      Closing Date of the following additional conditions:

     

    
      	 	
              (a)

            	
              Representations
                and Warranties
                The representations and warranties of the Seller contained in this
                Agreement and the Ancillary Agreements shall be true and correct
                in all
                respects (in the case of any representation or warranty containing
                any
                materiality qualification) or in all material respects (in the case
                of any
                representation or warranty without any materiality qualification)
                as of
                the date hereof and as of the Closing Date with the same effect as
                though
                made on such date (except for such representations and warranties
                that are
                made as of a specific date, which shall speak only as of such
                date).

            

    

     

    
      	 	
              (b)

            	
              Covenants
                The
                Seller has duly performed and complied in all material respects with
                all
                agreements and conditions required by this Agreement and each of
                the
                Ancillary Agreements to be performed or complied with by it prior
                to or on
                the Closing Date.

            

    

     

    
      	 	
              (c)

            	
              Certificate
                At
                the Closing, the Seller shall have delivered to the Buyer a certificate,
                dated the Closing Date and signed by its duly authorized manager,
                to the
                effect that the conditions set forth in Sections 6.2(a) and (b) have
                been
                satisfied.

            

    

     

    
      	 	
              (d)

            	
              Consents
                The Seller shall have obtained and shall have delivered to the Buyer
                complete and correct copies of (i) all Governmental Approvals required
                to
                be obtained in connection with the execution and delivery of this
                Agreement and the Ancillary Agreements and the consummation of the
                transactions contemplated hereby and thereby and (ii) all Consents
                (including all Consents required under Contracts) necessary to be
                obtained
                in order to consummate the sale and transfer of the Units pursuant
                to this
                Agreement and consummation of the other transactions contemplated
                hereby.

            

    

     

    
      	 	
              (e)

            	
              Ancillary
                Agreements
                The Company and the Seller, as the case may be, shall have executed
                and
                delivered to the Buyer, each of Ancillary Agreements to be executed
                by the
                parties.

            

    

     

    
      	 	
              (f)

            	
              Proceedings
                All limited liability company or other proceedings of the Company
                and the
                Seller in connection with the transactions contemplated by this Agreement
                and the Ancillary Agreements shall be reasonably satisfactory to
                the Buyer
                and its counsel, and the Buyer and its counsel shall have received
                copies
                of all documents and instruments incident thereto, as may be reasonably
                requested.

            

    

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    Section
      6.3 Conditions
      to Obligations of the Seller

     

    The
      obligation of the Seller
      to
      consummate the transactions contemplated hereby shall be subject to the
      satisfaction (or waiver by the Company), on or prior to the Closing Date, of
      the
      following additional conditions:

     

    
      	 	
              (a)

            	
              Representations
                and Warranties
                The representations and warranties of the Buyer contained in this
                Agreement and the Ancillary Agreements shall be true and correct
                in all
                respects (in the case of any representation or warranty containing
                any
                materiality qualification) or in all material respects (in the case
                of any
                representation or warranty without any materiality qualification)
                as of
                the date hereof and as of the Closing Date with the same effect as
                though
                made on such date (except for such representations and warranties
                that are
                made as of a specific date, which shall speak only as of such
                date).

            

    

     

    
      	 	
              (b)

            	
              Covenants
                The
                Buyer shall have duly performed and complied in all material respects
                with
                all agreements and conditions required by this Agreement and the
                Ancillary
                Agreements to be performed or complied with by it prior to or on
                the
                Closing Date.

            

    

     

    
      	 	
              (c)

            	
              Certificate
                The
                Buyer shall have delivered to the Company a certificate, dated the
                Closing
                Date and signed by its duly authorized officer, to the effect that
                the
                conditions set forth in Sections 6.3(a) and (b) have been
                satisfied.

            

    

     

    
      	 	
              (d)

            	
              Consents
                and Approvals
                The Buyer shall have obtained all Governmental Approvals necessary
                to
                consummate the transactions contemplated hereby, which shall be in
                full
                force and effect.

            

    

     

    
      	 	
              (e)

            	
              Ancillary
                Agreements
                The Buyer or its designees shall have entered into each of the Ancillary
                Agreements to which it is a party.

            

    

     

    
      	 	
              (f)

            	
              Proceedings
                All corporate or other proceedings of the Buyer in connection with
                the
                transactions contemplated by this Agreement and the Ancillary Agreements
                shall be reasonably satisfactory to the Company, the Seller and their
                counsel, and the Company and its counsel shall have received copies
                of all
                documents and instruments incident thereto, as may be reasonably
                requested.

            

    

     

    ARTICLE
      VII

    TAX
      MATTERS

     

    Buyer,
      the Company, and Seller
      shall cooperate fully, as and to the extent reasonably requested by the other
      party, in connection with the filing of Tax Returns pursuant to this
      Article VII and any audit, litigation or other proceeding with respect to
      Taxes. Such cooperation shall include the retention and (upon the other party's
      request) the provision of records and information that are reasonably relevant
      to any such audit, litigation or other proceeding and making employees available
      on a mutually convenient basis to provide additional information and explanation
      of any material provided hereunder. The Company and Seller agree (A) to retain
      all books and records with respect to Tax matters pertinent to the Company
      relating to any taxable period beginning before the Closing Date until the
      expiration of the statute of limitations (and, to the extent notified by Buyer
      or Seller, any extensions thereof) of the respective taxable periods, and to
      abide by all record retention agreements entered into with any taxing authority,
      and (B) to give the other party reasonable written notice prior to transferring,
      destroying or discarding any such books and records and, if the other party
      so
      requests, the Company or Seller, as the case may be, shall allow the other
      party
      to take possession of such books and records. Buyer and Seller further agree,
      upon request, to use their best efforts to obtain any certificate or other
      document from any governmental authority or any other Person as may be necessary
      to mitigate, reduce or eliminate any Tax that could be imposed (including,
      but
      not limited to, with respect to the transactions contemplated
      hereby).

     

    
      
         

      

      
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    ARTICLE
      VIII

    Termination

     

    Section
      8.1 Termination

     

    This
      Agreement may be terminated at any time prior to the Closing:

     

    
      	 	
              (a)

            	
              by
                the mutual written agreement of the Buyer and the
                Seller;

            

    

     

    
      	 	
              (b)

            	
              by
                either the Seller or the Buyer by written notice to the other parties
                if
                the transactions contemplated hereby shall not have been consummated
                pursuant hereto by 5:00 p.m. Central Daylight time on May 16, 2008,
                unless
                such date shall be extended by the mutual written consent of the
                parties;

            

    

     

    
      	 	
              (c)

            	
              by
                either the Seller or the Buyer by written notice to the other parties
                if
                any Governmental Authority shall have issued an Order (which Order
                the
                parties hereto shall use their commercially reasonable efforts to
                lift),
                in each case permanently restraining, enjoining or otherwise prohibiting
                the consummation of the transactions contemplated by this Agreement
                and
                such Order shall have become final and non-appealable;
                or

            

    

     

    
      	 	
              (d)

            	
              by
                either the Seller or the Buyer by written notice to the other parties
                if
                any event, fact or condition shall occur or exist that shall have
                made it
                impossible to satisfy a condition precedent to the terminating party’s
                obligations to consummate the transactions contemplated by this Agreement,
                unless the occurrence or existence of such event, fact or condition
                shall
                be due to the failure of the terminating party to perform or comply
                with
                any of the agreements, covenants or conditions hereof to be performed
                or
                complied with by such party prior to the
                Closing.

            

    

     

    Section
      8.2 Effect
      of Termination

     

    In
      the
      event of the termination of this Agreement pursuant to the provisions of Section
      8.1, this Agreement shall become void and have no effect, without any liability
      to any Person in respect hereof or of the transactions contemplated hereby
      on
      the part of any party hereto, or any of their Affiliates or Representatives,
      except
      as
      specified in Sections 2.3, 5.1(g), 10.1, 10.11 and 10.12 and except for any
      liability resulting from such party’s breach of this Agreement.

     

    ARTICLE
      IX

    Indemnification

     

    Section
      9.1 Indemnification
      by the Seller

     

    The
      Seller shall defend, indemnify and hold harmless each of the Buyer and its
      Affiliates and their respective Representatives and owners, including but not
      limited to Jerry Nash (collectively, the “Buyer
      Indemnitees”)
      from
      and against, and pay or reimburse the Buyer Indemnitees for, any and all
      Litigation and Liabilities, whether or not relating to third party claims,
      incurred in the investigation or defense of any of the same or in asserting,
      preserving or enforcing any of their respective rights hereunder (collectively,
      “Losses”),
      resulting from, arising out of or relating to (a) any breach of or inaccuracy
      in
      any representation or warranty when made or deemed made by the Seller in or
      pursuant to this Agreement or in any certificate furnished by the Seller
      hereunder or (b) any failure by Seller to perform any covenant or agreement
      hereunder.

     

    Section
      9.2 Indemnification
      by the Buyer

     

    The
      Buyer
      shall defend, indemnify and hold harmless the Seller and its Representatives
      (collectively, the “Seller’s
      Indemnitees”)
      from
      and against any and all Losses resulting from, arising out of or relating to
      (a)
      any breach of or inaccuracy in any representation or warranty made or deemed
      made by the Buyer in or pursuant to this Agreement or in any certificate
      furnished by the Buyer hereunder or (b) any failure of the Buyer to perform
      any
      covenant or agreement hereunder.

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

    Section
      9.3 Certain
      Limitations

     

    
      	 	
              (a)

            	
              Except
                with respect to claims for indemnification based on breaches of or
                inaccuracies in the representations and warranties contained in Section
                3.3 and 3.7 the Seller shall not be required to indemnify the Buyer
                Indemnitees with respect to any claim for indemnification pursuant
                to
                Section 9.1(a) unless and until the aggregate amount of its Losses
                exceeds
                $50,000 (the “Threshold
                Amount”),
                in which event the Seller shall be responsible for the full amount
                of such
                Losses, including the Threshold Amount, provided
                that the aggregate liability of the Seller to the Buyer Indemnitees
                under
                Section 9.1(a) shall not exceed 75% of the Final Purchase Price (the
                “Cap”).
                

            

    

     

    
      	 	
              (b)

            	
              With
                respect to any claims for indemnification based on breaches of or
                inaccuracies in the representations and warranties contained in Sections
                3.3 and 3.7, the Seller agrees to indemnify the Buyer Indemnitees
                from and
                against the entirety of any Losses the Buyer Indemnitees may suffer
                resulting from, arising out of, relating to, in the nature of, or
                caused
                by such breaches or inaccuracies up to the full amount of the Purchase
                Price.

            

    

     

    
      	 	
              (c)

            	
              Except
                with respect to claims for indemnification based on breaches of or
                inaccuracies in the representations and warranties contained in Sections
                4.1 and 4.5, the Buyer shall not be required to indemnify the Seller
                with
                respect to any claim for indemnification pursuant to Section 9.2(a)
                unless
                and until the aggregate amount of Seller’s Losses exceeds the Threshold
                Amount, in which event the Buyer shall be responsible for the full
                amount
                of such Loss, including the Threshold Amount, provided
                that the aggregate liability of the Buyer to the Seller under Section
                9.2(a) shall not exceed the Cap. With respect to any claims for
                indemnification based on breaches of or inaccuracies in the
                representations and warranties contained in Sections 4.1 and 4.5,
                the
                Buyer agrees to indemnify the Seller Indemnitees from and against
                the
                entirety of any Losses the Seller Indemnitees may suffer resulting
                from,
                arising out of, relating to, in the nature of, or caused by such
                breaches
                or inaccuracies up to the full amount of the Purchase Price.
                

            

    

     

    
      	 	
              (d)

            	
              For
                purposes of this Article IX, any breach of or inaccuracy in any
                representation or warranty shall be determined without regard to
                any
                materiality or Material Adverse Effect or similar qualification or
                exception and any qualification or requirement that a matter be or
                not be
                reasonably expected to occur.

            

    

     

    
      	 	
              (e)

            	
              Except
                as set forth in Section 7.1 above, the rights to indemnification
                provided
                for in this Article IX shall be the sole and exclusive remedy of
                the Buyer
                or the Seller, as the case may be, after the Closing for any breaches
                of
                or inaccuracy of any representation or warranty of the Seller or
                the
                Buyer, respectively, herein; provided
                that nothing herein shall limit in any way any such party’s remedies in
                respect of fraud, gross negligence or willful misconduct by the other
                party in connection herewith or the transactions contemplated
                hereby.

            

    

     

    Section
      9.4 Indemnification
      Procedures

     

    
      	 	
              (a)

            	
              In
                the event of any Litigation asserted by a third party (a “Third
                Party Claim”)
                against a party entitled to indemnification under this Agreement
                (the
                “Indemnified
                Party”),
                notice shall be given by the Indemnified Party to the party required
                to
                provide indemnification (the “Indemnifying
                Party”)
                promptly after such Indemnified Party has actual knowledge of such
                Third
                Party Claim. The failure of any Indemnified Party to give notice
                as
                provided herein shall not relieve the Indemnifying Party of its
                indemnification obligation under this Agreement except to the extent
                that
                such failure results in a lack of actual notice to the Indemnifying
                Party
                and such Indemnifying Party is materially prejudiced
                thereby.

            

    

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    
      	 	
              (b)

            	
              If
                the Indemnifying Party acknowledges in writing its indemnification
                obligation with respect to such Third Party Claim, the Indemnifying
                Party
                may elect to assume the defense of such Third Party Claim, at the
                expense
                of the Indemnifying Party, by written notice to the Indemnified Party
                within 20 days after the Indemnified Party has provided notice of
                the
                Third Party Claim; provided
                that counsel for the Indemnifying Party who shall conduct the defense
                of
                such Third Party Claim shall be reasonably satisfactory to the Indemnified
                Party, and that the Indemnified Party may participate in such defense
                at
                such Indemnified Party’s expense. Except with the prior written consent of
                the Indemnified Party, no Indemnifying Party, in the defense of any
                such
                Third Party Claim, shall consent to entry of any judgment or enter
                into
                any settlement that provides for injunctive or other non-monetary
                relief
                affecting the Indemnified Party or that does not include as an
                unconditional term thereof the giving by each claimant or plaintiff
                to
                such Indemnified Party of an irrevocable release from all liability
                with
                respect to such Third Party Claim. Notwithstanding the foregoing,
                in the
                event that the Indemnified Party shall in good faith determine that
                the
                Indemnified Party may have available to it one or more defenses or
                counterclaims that are inconsistent with one or more of those that
                may be
                available to the Indemnifying Party in respect of such Third Party
                Claim,
                the Indemnified Party shall have the right, but not the obligation,
                at all
                times to take over and assume control over the defense, settlement,
                negotiations or Litigation relating to any such Third Party Claim
                at the
                expense of the Indemnifying Party, provided
                that if the Indemnified Party does so take over and assume control,
                the
                Indemnified Party shall not settle such Third Party Claim without
                the
                prior written consent of the Indemnifying Party, not to be unreasonably
                withheld or delayed.

            

    

     

    
      	 	
              (c)

            	
              If
                the Indemnifying Party does not assume the defense of such Third
                Party
                Claim in accordance with the preceding paragraph, the Indemnified
                Party
                shall be entitled to assume and control such defense and to settle
                or
                agree to pay in full such Third Party Claim without the consent of
                the
                Indemnifying Party without prejudice to the ability of the Indemnified
                Party to enforce its claim for indemnification against the Indemnifying
                Party hereunder.

            

    

     

    
      	 	
              (d)

            	
              In
                all cases, the parties shall cooperate in the defense of any Third
                Party
                Claim subject to this Article IX and the records of each shall be
                available to the other with respect to such defense. The party controlling
                the defense of such Third Party Claim shall keep the other party
                reasonably advised of the status of such Third Party Claim and the
                defense
                thereof and shall consider in good faith any reasonable recommendations
                made by the non-controlling party with respect
                thereto.

            

    

     

    
      	 	
              (e)

            	
              In
                the event that an Indemnified Party sustains any Losses not involving
                a
                Third Party Claim that such Indemnified Party believes gives rise
                to a
                claim for indemnification hereunder, such Indemnified Party shall,
                if it
                intends to make a claim with respect thereto against an Indemnifying
                Party, deliver notice of such claim to the Indemnifying Party. If
                the
                Indemnifying Party does not notify the Indemnified Party within 30
                days
                after its receipt of such notice that the Indemnifying Party disputes
                its
                liability to the Indemnified Party, such claim specified by the
                Indemnified Party in such notice shall be conclusively deemed a liability
                of the Indemnifying Party and the Indemnifying Party shall pay the
                amount
                of such claim to the Indemnified Party promptly after demand therefor
                or,
                in the case of any notice in which the amount of the claim (or any
                portion
                thereof) is estimated, on such later date on which such amount (or
                such
                portion) is finally determined. If the Indemnifying Party has timely
                disputed its liability with respect to such claim as provided above,
                the
                Indemnifying Party and the Indemnified Party shall proceed in good
                faith
                to negotiate a resolution of such dispute, and if not resolved through
                such negotiations, such dispute shall be resolved by litigation in
                an
                appropriate court of competent jurisdiction in accordance with Sections
                10.11 and 10.12.

            

    

     

    
      
         

      

      
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    Section
      9.5 Survival
      of Representations and Warranties

     

    All
      claims for indemnification under Section 9.1 or Section 9.2 with respect to
      the
      representations and warranties contained herein must be asserted on or prior
      to
      the date that is 30 days after the termination of the respective survival
      periods
      set
      forth in this Section 9.5. The representations and warranties contained in
      this
      Agreement shall survive the execution and delivery of this Agreement, any
      examination by or on behalf of the parties hereto and the completion of the
      transactions contemplated herein, but only to the extent specified
      below:

     

    
      	 	
              (a)

            	
              except
                as set forth below, the representations and warranties contained
                in
                Articles II and III shall survive for a period ending on the first
                anniversary of the Closing Date;
                and

            

    

     

    
      	 	
              (b)

            	
              the
                representations and warranties of the Seller contained in Sections
                2.3,
                3.1, 3.2, and 3.3, and of the Buyer contained in Sections 2.3, 4.1
                and 4.6
                shall survive without limitation.

            

    

     

    Notwithstanding
      the expiration of any such survival period, if the Indemnified Party has
      provided notice with respect to a breach of representation or warranty within
      the applicable survival period, the relevant representation or warranty shall
      survive, solely with respect to such claim as is asserted in such notice, until
      the claim has been finally resolved. The covenants, obligations and agreements
      of each party contained in this Agreement shall survive the Closing Date
      indefinitely in accordance with their respective terms. 

     

    ARTICLE
      X

    Miscellaneous

     

    Section
      10.1 Expenses

     

    Unless
      otherwise agreed by the parties in writing, the Seller, on the one hand, and
      the
      Buyer, on the other hand, shall bear their respective expenses, costs and fees
      (including attorneys’ and auditors’ fees) in connection with the transactions
      contemplated hereby, including the preparation, execution and delivery of this
      Agreement and the Ancillary Agreements and compliance herewith and therewith,
      whether or not the transactions contemplated hereby shall be consummated. The
      parties agree that the fees, costs and expenses of any adviser (including any
      legal counsel) to the Company (including, without limitation, fees, costs and
      expenses of any brokers, finders or similar agents employed by or on behalf
      of
      the Company) advising in respect of this Agreement, the Ancillary Agreements
      and
      the transactions contemplated hereby and thereby shall be the responsibility
      of
      and shall be paid by the Company.

     

    Section
      10.2 Notices

     

    
      	 	
              (a)

            	
              Any
                notice or other communication in connection with this Agreement (each,
                a
                “Notice”)
                shall be delivered by hand, fax, registered post or by courier using
                an
                internationally recognized courier
                company.

            

    

     

    
      	 	
              (b)

            	
              A
                Notice to the Buyer shall be sent to at the following address, or
                such
                other person or address as the Buyer may notify to the Seller from
                time to
                time:

            

    

     

    Orion
      Ethanol, Inc.

    307
      South
      Main Street

    Pratt,
      KS 67124

    Attn:
      Tim
      Barker, Co-CEO

    

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

    with
      a
      copy to:

    

    Patrick
      Henderson

    Shook,
      Hardy and Bacon, LLP

    2555
      Grand Blvd.

    Kansas
      City, MO 64108-2613

    (816)
      421-5547 (fax)

    Phenderson@shb.com

    

    
      	 	
              (c)

            	
              A
                Notice to the Seller shall be sent to the following address, or such
                other
                person or address as the Seller may notify to the Buyer from time
                to
                time:

            

    

     

    MERCY,
      LLC 

     

    ________________

     

    ________________

     

    with
      a
      copy to:

    

    Brian
      W.
      Woods

    Woods
      Law
      Office, LLC

    109
      N.
      Main

    Hesston,
      Kansas 67062

    (620)
      327-2795 (fax)

    brian@woods-law.com

    

    
      	 	
              (d)

            	
              A
                Notice shall be effective upon receipt and shall be deemed to have
                been
                received:

            

    

     

    
      	 	
              (i)

            	
              at
                the time of delivery, if delivered by hand, registered post or courier;
                and

            

    

     

    
      	 	
              (ii)

            	
              at
                the expiration of two hours after completion of the transmission,
                if sent
                by facsimile,

            

    

     

    provided
      that if
      a Notice would become effective under the above provisions after 5.30 p.m.
      on
      any Business Day, then it shall be deemed instead to become effective at 9.30
      a.m. on the next Business Day. References in this Agreement to time are to
      local
      time at the location of the addressee as set out in the Notice.

     

    Subject
      to the foregoing provisions of this Section 10.2, in proving service of a
      Notice, it shall be sufficient to prove that the envelope containing such Notice
      was properly addressed and delivered by hand, registered post or courier to
      the
      relevant address pursuant to the above provisions or that the facsimile
      transmission report (call back verification) states that the communication
      was
      properly sent.

     

    Section
      10.3 Entire
      Agreement

     

    This
      Agreement (including the Schedules hereto)and the Ancillary Agreements (when
      executed and delivered) constitute the entire agreement and supersede all prior
      agreements and understandings, both written and oral, between the parties with
      respect to the subject matter hereof and thereof.

     

    Section
      10.4 Schedules

     

    The
      disclosure of any matter in the Schedules referenced by a particular Section
      shall be deemed to be disclosed with respect to any other Section as and to
      the
      extent that the relevance of such matter to such other Section is readily
      apparent on the face of such disclosure.

     

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

    Section
      10.5 Amendment;
      Waivers

     

    No
      amendment, modification or discharge of this Agreement, and no waiver hereunder,
      shall be valid or binding unless set forth in writing and duly executed by
      the
      party against whom enforcement of the amendment, modification, discharge or
      waiver is sought. Any such waiver shall constitute a waiver only with respect
      to
      the specific matter described in such writing and shall in no way impair the
      rights of the party granting such waiver in any other respect or at any other
      time. Neither the waiver by any of the parties hereto of a breach of or a
      default under any of the provisions of this Agreement, nor the failure by any
      of
      the parties, on one or more occasions, to enforce any of the provisions of
      this
      Agreement or to exercise any right or privilege hereunder, shall be construed
      as
      a waiver of any other breach or default of a similar nature, or as a waiver
      of
      any of such provisions, rights or privileges hereunder. The rights and remedies
      herein provided are cumulative and are not exclusive of any rights or remedies
      that any party may otherwise have at law or in equity. 

     

    Section
      10.6 Severability

     

    If
      any
      provision of this Agreement, including any phrase, sentence, clause, Section
      or
      subsection, is inoperative or unenforceable for any reason, such circumstances
      shall not have the effect of rendering the provision in question inoperative
      or
      unenforceable in any other case or circumstance, or of rendering any other
      provision or provisions herein contained invalid, inoperative, or unenforceable
      to any extent whatsoever. If any provision of this Agreement shall be adjudged
      to be excessively broad as to duration, geographical scope, activity or subject,
      the parties hereto intend that such provision shall be deemed modified to the
      minimum degree necessary to make such provision valid and enforceable under
      applicable Law and that such modified provision shall thereafter be enforced
      to
      the fullest extent possible.

     

    Section
      10.7 Counterparts

     

    This
      Agreement may be executed in several counterparts (including by facsimile or
      other electronic transmission), each of which shall be deemed an original and
      all of which shall together constitute one and the same instrument.

     

    Section
      10.8 Binding
      Effect

     

    This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective heirs, successors and permitted assigns.

     

    Section
      10.9 Assignment

     

    This
      Agreement shall not be assignable or otherwise transferable by any party hereto
      without the prior written consent of the other party hereto, provided
      that the
      Buyer may assign this Agreement to one or more of its direct or indirect
      Affiliates.

     

    Section
      10.10 No
      Third Party Beneficiaries

     

    Except
      as
      provided in Article IX with respect to indemnification of Indemnified Parties
      hereunder, nothing in this Agreement shall confer any rights upon any person
      or
      entity other than the parties hereto and their respective heirs, successors
      and
      permitted assigns.

     

    Section
      10.11 Governing
      Law

     

    This
      Agreement shall be governed in all respects by the laws of the State of Kansas,
      without giving effect to the conflict of laws rules thereof to the extent such
      rules would require or permit the application of the laws of another
      jurisdiction. The parties hereby consent to and grant any such court
      jurisdiction over the person of such parties and over the subject matter of
      any
      such dispute and agree that mailing of process or other papers in connection
      with any such action or proceeding in the manner provided in Section 10.2,
      or in
      such other manner as may be permitted by applicable Law, shall be valid and
      sufficient service thereof.

     

    Section
      10.12 Waiver
      of Jury Trial

     

    EACH
      PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS
      AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE
      EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH
      PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR
      INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
      CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT
      (A)
      NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
      EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
      LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH SUCH PARTY
      UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH SUCH
      PARTY MAKES THIS WAIVER VOLUNTARILY AND (D) EACH SUCH PARTY HAS BEEN INDUCED
      TO
      ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
      CERTIFICATIONS IN THIS SECTION 10.12.

     

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

       

    

    In
      Witness Whereof,
      the
      parties have duly executed this Agreement as of the date first above
      written.

     

    Orion
      Ethanol, Inc.

     

    By: /s/
      Tim Barker 

    Tim
      Barker, Co-Chief Executive Officer

     

    

     

    MERCY,
      LLC 

     

    By: /s/
      Jerry Vernon Nash 

    Jerry
      Vernon Nash, Manager

     

     

    
      
         

      

      
        -18-INDEMNIFICATION
      AND HOLD HARMLESS AGREEMENT

     

    THIS
      INDEMNIFICATION AND HOLD HARMLESS AGREEMENT
      (the
“Agreement”)
      is
      entered into as of the 25th day of April, 2008, but effective as of April 1,
      2008, by and between Orion
      Ethanol, Inc.,
      a
      Nevada corporation (the “Corporation”), and Jerry
      Vernon Nash,
      an
      individual (“Nash”).

     

    WHEREAS,
      the
      Corporation holds a 62% membership interest in Gateway Holdco, L.L.C.
      (“Gateway”), and Gateway has made a $3.5 million dollar capital call to its
      members. This capital call will require the Corporation to contribute an
      additional $2.17 million to Gateway to enable Gateway to continue operations.
      The Corporation looked for and discussed alternatives for funding this
      additional capital call and the board of directors (other than Nash) decided
      the
      best course of action was to accept a proposal by Nash for the purchase of
      certain units in Gateway by Nash’s entity Mercy, LLC (“Buyer”) (for purposes
      hereof, Buyer and Nash collectively referred to as “Nash”) in order to fund the
      Corporation’s capital contribution (the “Transaction”) pursuant to that certain
      Unit Purchase Agreement Dated April 25, 2008 by and between the Corporation,
      Gateway and Buyer (the “Purchase Agreement”);

     

    WHEREAS,
      the
      Corporation and Nash recognize the potential risk of litigation and other claims
      being asserted against the Corporation and Nash resulting from the
      Transaction;

     

    WHEREAS,
      in
      recognition of Nash’s need for protection against personal liability to enhance
      and induce Nash to enter into the Transaction, the Corporation wishes to provide
      in this Agreement for the indemnification of Nash to the full extent (whether
      partial or complete) permitted by law and as set forth in this Agreement;
      and

     

    WHEREAS,
      the
      Corporation and Nash believe it is in the best interests of each of them to
      provide for indemnification of Nash as set forth in this Agreement.

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants and agreements contained herein, and
      other
      good and valuable consideration, the Corporation and Nash hereby agree as
      follows:

     

    Section
      1. Indemnification
      Arrangement.
      Capitalized terms used in subsection (a) are defined in subsections (b) and
      (c)

     

    (a) Indemnity.
      If Nash
      was, is or becomes a party to or witness or other participant in, or is
      threatened to be made a party to or witness or other participant in, a Claim
      by
      reason of, or arising in part out of, an Indemnifiable Event, then the
      Corporation shall indemnify and hold Nash harmless to the fullest extent
      permitted by law, as soon as practicable but in any event no later than thirty
      days after written demand is presented to the Corporation, against any and
      all
      Expenses of such Claim. 

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

    (b) Claim.
      “Claim”
shall
      mean any threatened or pending action, suit or proceeding, any inquiry or
      investigation, or any appeal therefrom whether conducted by the Corporation
      or
      any other party, that Nash in good faith believes might lead to the institution
      of any such action, suit or proceeding, whether civil, criminal, administrative,
      investigative or other; provided,
      however,
      Claim
      shall not include an action by or in the right of the Corporation if Nash shall
      have been adjudged to be liable to the Corporation unless it is determined
      in a
      Claim that, despite the adjudication of liability but in view of all the
      circumstances of the case, Nash is fairly and reasonably entitled to indemnity
      for Expenses which the court shall deem proper.

     

    (c) Indemnifiable
      Event.
      “Indemnifiable
      Event”
shall
      mean any event or occurrence arising from or related to, directly or indirectly,
      the Transaction or the fact that Nash is or was serving the Corporation in
      some
      capacity, including without limitation, as Director, or as a consultant to,
      or
      as an officer, employee, or agent of the Corporation or of any corporation,
      partnership, joint venture, trust or other enterprise related to the business
      or
      activities of the Corporation, or by reason of anything done or not done by
      Nash
      in any such capacity if he acted in good faith and in a manner he reasonably
      believed to be in or not opposed to the best interests of the Corporation,
      and
      with respect to any criminal action or proceeding, Nash had no reasonable cause
      to believe his conduct was unlawful. No event shall be an Indemnifiable Event
      if
      it is ultimately determined in a Claim that Nash acted in a manner that was
      knowingly fraudulent, deliberately dishonest, or constituted willful misconduct.
      

     

    For
      purposes of clarification and not limitation, the following matters shall be
      considered Indemnifiable Events for purposes of this Agreement: any claim that
      is filed or promoted by the Corporation (or any company to which the Corporation
      may be sold or into which Corporation may be merged), any past, present or
      future shareholder of the Corporation, any board member, officer or creditor
      of
      the Corporation, any wholly or partially owned subsidiary of Seller, or any
      other person, that is based in whole or in part on the Transaction including
      but
      not limited to claims, causes of action and/or allegations that the Purchase
      Agreement was unfair to the Corporation, that Buyer and/or Nash usurped a
      corporate opportunity belonging to Corporation, that the Purchase Agreement
      is
      void or voidable, that Buyer and/or Nash engaged in “insider trading” under
      applicable SEC rules or regulations or that this Agreement was in violation
      of
      Nevada statutory or common law governing Seller. In addition to the above,
      the
      Corporation shall also defend at its cost Buyer and Nash against and indemnify
      Buyer and Nash for any additional tax that is finally determined in a claim
      to
      be owed by Buyer and/or Nash that may result from a determination that the
      Transaction was a partial liquidation of the Corporation, that the distribution
      of Units (as defined in the Purchase Agreement) to Buyer constituted a dividend
      by the Corporation, that the distribution of Units was a “part sale, part gift,”
or that the distribution of Units caused Buyer to recognize taxable
      income.

     

    (d) Expenses.
      “Expenses”
shall
      include reasonable attorneys’ fees and all other reasonable costs, expenses and
      obligations actually incurred and paid in connection with investigating,
      defending, being a witness in or participating in (including on appeal), or
      preparing to defend, be a witness in or participate in any Claim relating to
      any
      Indemnifiable Event. Expenses shall also include judgments, fines, penalties
      and
      amounts paid in settlement (including all interest, assessments and other
      charges actually incurred and paid or payable in connection with or in respect
      of such Expenses) of any Claim relating to any Indemnifiable Event. Expenses
      shall also include Additional Expenses as defined in Section 3
      below.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    (e) For
      purposes of Sections 1(b), 1(c) and 5 herein, the phrase “determined
      in a Claim”
shall
      mean a decision by a court, arbitrator(s), hearing officer or other judicial
      agent having the requisite legal authority to make such a decision which
      decision has become final and from which no appeal or other review proceeding
      is
      permissible.

     

    Section
      2. Notification
      and Defense of Claim.

     

    (a) Notification.
      Promptly after receipt by Nash of notice of the commencement of any Claim,
      Nash
      will, if a claim for indemnification in respect thereof is to be made against
      the Corporation under this Agreement, notify the Corporation of the commencement
      thereof; provided,
      however,
      the
      omission to notify the Corporation will not relieve it from any liability which
      it may have to Nash under this Agreement if such omission does not materially
      adversely prejudice the rights of the Corporation. In addition, Nash shall
      give
      the Corporation such information and cooperation as the Corporation may
      reasonably require, subject to reasonable claims of privilege or other basis
      for
      nondisclosure by Nash.

     

    (b) Defense.
      With
      respect to any Claim as to which Nash notifies the Corporation of the
      commencement thereof, the Corporation will be entitled to participate therein
      at
      its own expense. Except as otherwise provided below, to the extent that it
      may
      wish, the Corporation will be entitled to assume the defense thereof, with
      counsel reasonably satisfactory to Nash. After notice from the Corporation
      to
      Nash of its election to assume the defense thereof, the Corporation will not
      be
      liable to Nash under this Agreement for any legal expenses subsequently incurred
      by Nash in connection with the defense thereof other than reasonable costs
      of
      investigation or as otherwise provided below. Nash shall have the right to
      employ counsel in such Claim, but the fees and expenses of such counsel incurred
      after notice from the Corporation of its assumption of the defense thereof
      shall
      be at the expense of Nash unless (i) the employment of counsel by Nash has
      been
      authorized by the Corporation, (ii) independent legal counsel approved by both
      the Corporation and Nash shall have reasonably concluded, that there is or
      is
      likely to be a conflict of interest between the Corporation and Nash in the
      conduct of the defense of such Claim or (iii) the Corporation shall not in
      fact
      have employed counsel to assume the defense of such Claim, in each of which
      cases the fees and expenses of counsel shall be borne by the Corporation. The
      Corporation shall not be entitled to assume the defense of any Claim brought
      by
      or on behalf of the Corporation or as to which the counsel for Nash shall have
      reasonably made the conclusion, as provided in (ii) above.

     

    (c) Settlements.
      The
      Corporation shall not be liable to indemnify Nash under this Agreement for
      any
      amounts paid in settlement of any Claim made without the prior written consent
      made by or on behalf of a majority of the members of the Board of Directors
      of
      the Corporation. The Corporation shall not settle any Claim in any manner that
      would impose any penalty or limitation on Nash or result in a finding of
      wrongdoing against Nash without Nash’s written consent. Neither the Corporation
      nor Nash will unreasonably withhold their consent to any proposed
      settlement.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    Section
      3. Indemnification
      for Additional Expenses.
      The
      Corporation shall indemnify Nash against any and all expenses (including
      reasonable attorneys’ fees) (collectively, “Additional Expenses”) which are or
      may be incurred by Nash in connection with any claim asserted against or action
      brought by Nash for (i) indemnification of Expenses by the Corporation under
      this Agreement or any other agreement or under the Corporation’s Articles of
      Incorporation or Bylaws now or hereafter in effect relating to Claims for an
      Indemnifiable Event or (ii) recovery under any of directors’ and officers’
liability insurance policies maintained by the Corporation.

     

    Section
      4. Partial
      Indemnity, Etc.
      If Nash
      is entitled under any provision of this Agreement to indemnification by the
      Corporation for some or a portion of the Expenses of a Claim, but not, however,
      for all of the total amount thereof, the Corporation shall nevertheless
      indemnify Nash for the portion thereof to which Nash is entitled. Moreover,
      notwithstanding any other provision of this Agreement, to the extent that Nash
      has been successful on the merits or otherwise in defense of any or all Claims
      relating in whole or in part to an Indemnifiable Event or in defense of any
      issue or matter therein, including dismissal without prejudice, Nash shall
      be
      indemnified against all Expenses incurred in connection therewith.

     

    Section
      5. No
      Presumption.
      For
      purposes of this Agreement, the termination of any Claim by judgment, order,
      settlement (whether with or without court approval) or conviction, or upon
      a
      plea of nolo contendere, or its equivalent, shall not create a presumption
      that
      Nash did not meet any particular standard of conduct or have any particular
      belief or that it has been determined in a Claim that indemnification is not
      permitted by applicable law.

     

    Section
      6. Nonexclusivity.
      The
      rights of Nash hereunder shall be in addition to any other rights Nash may
      have
      under the Corporation’s Articles of Incorporation, Bylaws, or other agreements
      or pursuant to resolutions or determinations of the Board of Directors, under
      applicable law or otherwise. To the extent that a change in applicable law
      (whether by statute or judicial decision) permits greater indemnification by
      agreement than would be afforded currently under the Corporation’s Articles of
      Incorporation or Bylaws and this Agreement, it is the intent of the parties
      hereto that Nash shall enjoy by this Agreement the greater benefits so afforded
      by such change.

     

    Section
      7. Liability
      Insurance.
      To the
      extent the Corporation maintains an insurance policy or policies providing
      liability insurance, Nash shall be covered by such policy or policies, in
      accordance with its or their terms, to the maximum extent of the coverage
      available for any Corporation employee.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    Section
      8. Subrogation.
      In the
      event of payment under this Agreement, the Corporation shall be subrogated
      to
      the extent of such payment to all of the rights of recovery of Nash, who shall
      execute all papers required and shall do everything that may be necessary to
      secure such rights, including the execution of such documents necessary to
      enable the Corporation effectively to bring suit to enforce such
      rights.

     

    Section
      9. No
      Duplication of Payments.
      The
      Corporation shall not be liable under this Agreement to make any payment in
      connection with any Claim made against Nash to the extent Nash has otherwise
      actually received payment (under any insurance policy, the Corporation’s
      Articles of Incorporation or Bylaws or otherwise) of the amounts otherwise
      indemnifiable hereunder.

     

    Section
      10. Miscellaneous
      Provisions.

     

    (a) Dispute
      Resolution. 
      All
      disputes and controversies between the parties arising out of or in connection
      with this Agreement shall be submitted to arbitration.

     

    (b) Entire
      Agreement.
      This
      Agreement supersedes all prior documents, understandings and agreements, oral
      or
      written, and constitutes the entire agreement and understanding between the
      parties with respect to the subject matter hereof.

     

    (c) Assignments.
      None of
      the parties’ rights or obligations under this Agreement may be assigned. Any
      assignment in violation of the foregoing shall be null and void.

     

    (d) Severability.
      If any
      one or more provisions of this agreement is held to be illegal, invalid or
      unenforceable under present or future laws, then, if possible, such illegal,
      invalid or unenforceable provision will be modified to such extent as is
      necessary to comply with such present or future laws and such modification
      shall
      not affect any other provision hereof, provided that if such provision may
      not
      be so modified such illegality, invalidity or unenforceability will not affect
      any other provision, but this Agreement will be reformed, construed and enforced
      as if such invalid, illegal or unenforceable provision had never been contained
      herein.

     

    (e) Notices.
      The
      parties agree that, when sending written communications or other notices, they
      will use their good faith best efforts to provide either a simultaneous fax
      copy
      of such material to the intended recipient thereof and/or give the intended
      recipient telephonic notice that such written communication or other notice
      is
      being sent by mail. Communications and other notices given under this Agreement
      will be deemed delivered when personally delivered, or on the third business
      day
      following deposit in the U.S. mail, first class, postage paid, and addressed
      to
      the party at the business address contained in the Employment
      Agreement.

     

    (f) Choice
      of Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Kansas, without regard to principles of conflict of law.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    (g) Headings
      and Captions.
      All
      headings and captions used in this Agreement are for convenience only, and
      shall
      not be construed to either limit or broaden the language of this Agreement
      or
      any particular section.

     

    (h) Counterparts.
      This
      Agreement may be executed in two or more counterparts, each of which may be
      executed by one or more of the parties hereto, but all of which, when taken
      together, shall constitute but one agreement binding upon all of the parties
      hereto.

     

    (i) Third-Party
      Beneficiaries.
      This
      Agreement is not intended to confer upon any non-party rights or remedies
      hereunder.

     

    (j) Binding
      Agreement.
      This
      Agreement shall be deemed effective and legally binding upon the parties when
      it
      has been executed and delivered by all parties hereto. This Agreement shall
      inure to the benefit of the parties hereto and their respective successors
      and
      assignees.

     

    (k) Interpretation.
      The
      parties hereto acknowledge and agree that (i) each party and its representatives
      has reviewed and negotiated the terms and provisions of this Agreement and
      have
      contributed to its revision, (ii) the rule of construction to the effect that
      any ambiguities are resolved against the drafting party shall not be employed
      in
      the interpretation of this Agreement and (iii) the terms and provisions of
      this
      Agreement shall be construed fairly as to all parties hereto and not in favor
      of
      or against any party regardless of which party was generally responsible for
      the
      preparation of this Agreement.

     

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

     

    
      	
               

            	
              Orion
                Ethanol, Inc.

            
	 	 
	
               

            	
              By:
                /s/ Tim
                Barker                              
                

            
	
               

            	Tim Barker,
              Co-Chief
              Executive Officer
	 	 
	 	 
	 	
              /s/
                Jerry Vernon Nash

            
	
               

            	
              Jerry
                Vernon Nash, individually and as a Member of Mercy,
                LLC

            

    

     

    
      
         

      

      
        -6-

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