Document:

EXECUTIVE
      EMPLOYMENT AGREEMENT

    

    This
      EXECUTIVE
      EMPLOYMENT AGREEMENT
      (“Agreement”) is made and entered into as of this 22nd day of August, 2006, by
      and between LOTUS
      BANCORP, INC.,
      a
      Michigan corporation (hereafter the “Company”) and
      Richard Gurne,
      a
      resident of Rochester Hills, Michigan (hereafter the “Executive”).

    

    WHEREAS,
      the
      Executive has considerable experience, expertise and training in management
      related to banking and services offered by the Company and to be offered through
      Lotus Bank, a proposed subsidiary bank of the Company (“Bank”); 

     

    WHEREAS,
      the
      Company desires and intends to cause the Executive to be employed as Chief
      Lending Officer & Executive Vice President of the Bank pursuant to the terms
      and conditions set forth in this Agreement; and

    

    WHEREAS,
      both
      the Company and the Executive have read and understood the terms and provisions
      set forth in this Agreement, and have been afforded a reasonable opportunity
      to
      review this Agreement with their respective legal counsel.

    

    NOW,
      THEREFORE,
      in
      consideration of the mutual promises and covenants set forth in this Agreement,
      the Executive and the Company agree as follows:

    

    DURATION

    

    1.    This
      Agreement shall continue in full force and effect for a period beginning on
      the
      date the Bank opens for business (“Opening Date”) and will expire and terminate
      by its own terms on the Expiration Date, which is the later of October 31,
      2009
      or as of a date three (3) years after the Opening Date unless either party
      elects to terminate this Agreement prior to the Expiration Date, in accordance
      with the TERMINATION
      provisions
      set forth below.

     

    2.    Both
      the
      Company and the Executive acknowledge and agree that the parties may agree
      to
      continue the employment relationship upon such terms as they may mutually agree.
      Both parties acknowledge and agree that, in the event that they fail to agree
      upon terms for the continuation of the Executive’s employment subsequent to the
      Expiration Date, this Agreement and the employment of the Executive shall
      automatically terminate on the Expiration Date without any additional liability
      or obligation on the part of either party, except as expressly provided
      herein.

     

    COMPENSATION

    

    3.    All
      payments of salary and other compensation to the Executive shall be payable
      in
      accordance with the Company’s or Bank’s ordinary payroll and other policies and
      procedures.

     

    a.    For
      the
      first year after the Opening Date, the Executive will receive a salary of
      $105,000.00, payable on a semi-monthly basis in equal amounts of $4,375.00,
      and
      appropriately prorated for partial months at the commencement and end of the
      term of the Agreement.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    b.   During
      the remaining term of this Agreement, the Executive’s annual salary shall be
      reviewed by the Company’s Board of Directors as of the 31st
      day of
      December of each subsequent year, as provided in Paragraph 6
      of this
      Agreement.

     

    c.    During
      the term of this Agreement, it is anticipated that a disinterested majority
      of
      the Board of Directors of the Company will consider the adoption of an executive
      discretionary bonus plan. The Board will have the sole discretion whether to
      adopt such a bonus plan and, if so, when bonuses will be paid
      thereunder.

     

    d.    At
      conclusion of the initial stock offering of the Company, the Company shall
      grant
      to the Executive a number of options exercisable within ten (10) years from
      the
      date of the grant of such options. Such options, upon the grant of the options,
      will enable the Executive to purchase a number of shares of Company common
      stock
      equal to one percent (1%) of the total number of shares of common stock issued
      in the initial stock offering. The exercise price for the stock options to
      be
      received by the Executive shall be equal to the offering price of the Company
      common stock in its initial offering. The terms of the Company’s stock option
      plan shall control in the event of any conflict with the terms of this
      Agreement. The options shall be evidenced by a stock option agreement, which
      shall have terms as are consistent with those set forth above and such
      additional terms as may be set forth in the stock option agreement or the stock
      option plan pursuant to which the options are granted. To the maximum extent
      permitted by law, the options will be treated as incentive stock
      options.

     

    Both
      the
      Company and the Executive acknowledge that such compensation and the other
      covenants and agreements of the Company contained herein are fair and adequate
      compensation for the Executive’s services, and for the mutual promises described
      below.

     

    e.    Executive
      shall be also be entitled to participate in any benefit programs applicable
      to
      all employees of the Company or Bank, as applicable, or to executive employees
      of the Company or Bank in accordance with Company or Bank policy and the
      provisions of said programs. Such benefits may include employee and dependent
      health and dental insurance, disability insurance with coverage equal to the
      Executive’s current salary at the time of any disability, and profit sharing and
      other retirement plans. 

     

    f.    The
      Company or Bank shall also provide the Executive with a salary continuation
      plan, with such terms as are approved by the Board of Directors of the Bank
      or
      the Company, as the case might be. The Company shall also permit Executive
      to
      participate in a 401K plan once such plan is established by the Company or
      the
      Bank.

     

    g.   The
      Executive is eligible for an annual bonus in an amount to be determined based
      on
      performance goals established annually by the Chief Executive Officer and the
      Board of Directors; provided, however that the Executive shall only be eligible
      for the annual bonus if the Bank’s Composite CAMELS rating is 1 or 2 from the
      applicable bonus year. 

     

    
      
        
        

      

      
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    4.    The
      Company shall reimburse the Executive for all reasonable expenses, including,
      but not limited to, travel expenses, lodging expenses, meals and entertainment
      expenses, cell phone and trade association memberships; provided, however,
      that
      the Executive shall be required to submit receipts or other acceptable
      documentation to the Cashier or other appropriate bank officer to verify such
      expenses prior to any reimbursements.

     

    5.    Subject
      to the provisions of Paragraph 7
      of this
      Agreement, Executive shall be entitled to four (4) weeks of paid vacation per
      twelve month period on a non-cumulative basis. In addition, in the event that
      neither the Company nor the Bank has a health insurance plan as of the Opening
      Date, the Company shall reimburse the Executive, not less frequently than
      monthly, upon presentment of appropriate documentation, the amount paid by
      the
      Executive to continue, without interruption, family medical benefits under
      COBRA, up to $1,000 per month. In the event that neither the Company nor the
      Bank has a health insurance plan prior to the time that Executive’s COBRA
      continuation health insurance expires, the Company shall reimburse the
      Executive, not less frequently than monthly, upon presentment of appropriate
      documentation, the amount paid by the Executive to continue, without
      interruption, family medical benefits of similar nature to those continued
      under
      COBRA coverage, up to $1,000 per month. In each case, family medical benefits
      shall extend to the spouse of the Executive, dependent children under the age
      of
      nineteen who live at home and dependent children under the age of twenty-one
      who
      are full-time students at an accredited college or university. 

     

    6.    During
      the term of this Agreement, Executive’s compensation will be subject to an
      annual review consistent with safe and sound banking practices and in the
      discretion of the Board of Directors of the Company but, in no event, will
      the
      Executive’s salary and vacation be less than the amounts set forth in
      Paragraphs 3,
      4,
      and
5
      at any
      time during the term of this Agreement.

     

    7.    All
      employee benefits provided to the Executive by the Company or Bank incident
      to
      the Executive’s employment shall be governed by the applicable plan documents,
      summary plan descriptions or employment policies, and may be modified, suspended
      or revoked at any time, in accordance with the terms and provisions of the
      applicable documents. 

     

    8.    The
      Company shall have the right to deduct from any payment of compensation to
      Executive hereunder any federal, state or local taxes required by law to be
      withheld with respect to such payments and any other amounts specifically
      authorized to be withheld or deducted by Executive.

     

    RESPONSIBILITIES

    

    9.    The
      Executive shall be employed as Chief Lending Officer and Executive Vice
      President of the Bank. The Executive covenants and agrees that he will
      faithfully devote his best efforts and his primary focus to his positions with
      the Bank and the Company and their respective subsidiaries. 

     

    10.   The
      Executive acknowledges and agrees that the duties and responsibilities of the
      Executive required by his position as Chief Lending Officer are wholly within
      the discretion of the Chief Executive Officer, and may be modified, or new
      duties and responsibilities imposed by the Chief Executive Officer, at any
      time,
      without the approval or consent of the Executive. However, these new duties
      and
      responsibilities may not constitute immoral or unlawful acts. In addition,
      the
      new duties and responsibilities must be consistent with the Executive’s role as
      Chief Lending Officer of a financial institution.

     

    
      
        
        

      

      
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    11.    The
      Executive acknowledges and agrees that, during the term of this Agreement,
      he
      has a fiduciary duty of loyalty to the Company and the Bank, and that he will
      not engage in any activity during the term of this Agreement, which will or
      could, in any significant way, harm the business, business interests, or
      reputation of the Company or the Bank.

     

    NONCOMPETITION

    

    12.    The
      Executive acknowledges and agrees that he will not, at any time during the
      existence of the employment relationship between the Company or the Bank,
      directly or indirectly engage in competition with the Company or the Bank,
      and
      the Executive will not on his own behalf, or as another’s agent, employee,
      partner, shareholder or otherwise, engage, in any of the same or similar duties
      and/or responsibilities required by the Executive’s positions with the Company
      and the Bank, other than as an employee of the Company or the Bank pursuant
      to
      this Agreement, or as specifically approved by the Board of
      Directors.
      In
      addition, without the prior written consent of the Board of Directors, Executive
      shall not usurp for himself any corporate opportunity available to the Company
      or the Bank.

     

    The
      Executive covenants and agrees that for a period of six months subsequent to
      a
      voluntary termination of this Agreement by the Executive, other than as a result
      of a “constructive termination” as defined in Paragraph 17,
      the
      Executive shall not directly or indirectly engage in competition with the
      Company or the Bank, within Oakland County, (the “post voluntary termination
      noncompete area”) and the Executive will not on his own behalf, or as another’s
      agent, employee, partner, shareholder or otherwise, engage, within the post
      voluntary termination noncompete area in any of the same or similar duties
      and/or responsibilities required by the Executive’s positions with the Company
      or the Bank. The Executive acknowledges and agrees that the rights provided
      by
      this Paragraph to the Company and the Bank are cumulative with other rights
      granted the Company or the Bank under this Agreement. The Company and the Bank
      covenant and agree that if they choose to enforce the provisions of this
      Paragraph, the Executive shall be entitled to payment of $52,500.00 or the
      equivalent of half the Executive’s then current annual salary, whichever is
      greater, less statutory payroll deductions, payable in twelve (12) equal
      disbursements in accordance with ordinary payroll policies and procedures,
      beginning with the first payroll after the termination becomes
      effective.

     

    If
      the
      Company or the Bank believes, in good faith after consultation with its counsel,
      that Executive is in violation or breach of this Agreement, the Company or
      the
      Bank, as applicable, may refuse to make further non-compete payments under
      this
      Paragraph 12
      and may
      seek full restitution of all non-compete payments previously paid by the Company
      or the Bank to Executive up to and including the date of such violation or
      breach by Executive.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    The
      Executive also acknowledges and agrees that in exchange for the noncompetition
      agreement set forth in this Paragraph, the Executive will receive substantial,
      valuable consideration including: (i) confidential trade secret and proprietary
      information relating to the identity and special needs of the Company’s current
      and prospective customers, the Company’s and Bank’s current and prospective
      services, the Company’s and Bank’s business projections and market studies, the
      Company’s and Bank’s business plans and strategies, the Company’s and Bank’s
      studies and information concerning special services unique to the Company and
      the Bank; (ii) employment; and (iii) compensation and benefits as described
      in this Agreement.

     

    Executive
      acknowledges and agrees that the non-competition restriction set forth above
      is
      ancillary to an otherwise enforceable agreement and supported by independent
      valuable consideration as required by law. Executive further acknowledges and
      agrees that the limitations as to time, geographical area, and scope of activity
      to be restrained by this Paragraph are reasonable and acceptable to him, and
      do
      not impose any greater restraint than is reasonably necessary to protect the
      goodwill and other business interests of the Company and the Bank. Executive
      acknowledges and agrees that the primary purpose of the restrictive covenants
      contained herein is to protect the proprietary information and goodwill of
      the
      Company and the Bank.

     

    Executive
      acknowledges and agrees that if, at some later date, a court of competent
      jurisdiction determines that the non-competition agreement set forth in this
      Paragraph does not meet the criteria set forth by law, this paragraph may be
      reformed by the court and enforced to the maximum extent permitted under the
      laws of the State of Michigan.

     

    If
      Executive is found to have violated any of the provisions of any restrictive
      covenant contained herein, Executive agrees that the restrictive period of
      each
      covenant so violated shall be extended by a period of time equal to the period
      of such violation by Executive. It is the intent of this Paragraph that the
      running of the restrictive period of any covenant shall be tolled during any
      period of violation of such covenant so that the Company may obtain the full
      and
      reasonable protection for which it contracted and so that Executive may not
      profit by breach thereof.

     

    NONINTERFERENCE

    

    13.    The
      Executive covenants and agrees that, for a period of six months subsequent
      to
      the termination of this Agreement, whether such termination occurs at the
      insistence of the Company or the Executive, the Executive shall not: (i)
      recruit, hire, or attempt to recruit or hire, directly or by assisting others,
      any other employees of the Company or the Bank (for purposes of this covenant,
      “other employees” shall refer to employees who are still actively employed by,
      or doing business with, the Company or the Bank at the time of the attempted
      recruiting or hiring) nor shall the Executive contact or communicate with any
      other employees of the Company or the Bank for the purpose of inducing other
      employees to terminate their employment with the Company or the Bank or (ii)
      solicit, directly or by assisting others, the banking business of any customers
      of the Company or the Bank as of the date of such termination.

     

    
      
        
        

      

      
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    The
      Executive acknowledges and agrees that in exchange for the execution of the
      noninterference agreement set forth above, the Executive will receive
      substantial, valuable consideration including: (i) confidential trade secret
      and
      proprietary information relating to the identity and special needs of the
      Company’s and Bank’s current and prospective customers, the Company’s and Bank’s
      current and prospective services, the Company’s and Bank’s business projections
      and market studies, the Company’s business plans and strategies, the Company’s
      and Bank’s studies and information concerning special services unique to the
      Company or the Bank; (ii) employment; and (iii) compensation and benefits
      as described in this Agreement. The Executive acknowledges and agrees that
      this
      constitutes fair and adequate consideration for the execution of the
      noninterference agreement set forth above.

     

    REMEDIES

    

    14.    In
      the
      event that the Executive violates any of the provisions set forth in this
      Agreement relating to NONINTERFERENCE
      and
      NONCOMPETITION,
      the
      Executive acknowledges and agrees that the Company and the Bank would suffer
      immediate and irreparable harm and
      would
      not have an adequate remedy at law for money damages. Accordingly, Executive
      agrees that, without the necessity of proving actual damages or posting bond
      or
      other security, the Company and the Bank shall be entitled to temporary or
      permanent injunction or injunctions to prevent breaches of such performance
      and
      to specific enforcement of such covenants in addition to any other remedy to
      which the Company or the Bank may be entitled, at law or in equity. In such
      a
      situation, the parties agree that the Company and the Bank may pursue any remedy
      available, including declaratory relief, concurrently or consecutively in any
      order as to any breach, violation, or threatened breach or violation of any
      of
      the provisions set forth in this Agreement relating to NONINTERFERENCE
      and
      NONCOMPETITION,
      and the
      pursuit of any particular remedy or remedies shall not be deemed an election
      of
      remedies or waiver of the right to pursue any other remedy.

     

    TERMINATION

    

    15.    The
      Chief
      Executive Officer and the Board of Directors of the Company shall be entitled
      to
      terminate this Agreement, for any reason, by providing the Executive with thirty
      (30) days’ written notice of the termination, delivered in person, or by
      certified U.S. mail to the Executive’s last known address reflected in the
      Company’s personnel records. Such notice shall be effective upon personal
      delivery or three days after mailing by certified mail. However, if the
      Agreement is terminated at the Company’s insistence without “good cause” as
      defined in this Agreement, the Company covenants and agrees to provide the
      Executive with the SEVERANCE
      set
      forth
      below in this Agreement. 

     

    16.    For
      purposes of this Agreement, “good cause” shall be defined as the occurrence of
      one of the following events:

     

    a.    The
      Executive violates any provision of this Agreement or is grossly negligent
      in
      the performance of his duties hereunder, and fails to cure such violation or
      the
      effects of such gross negligence within ten (10) days after written notice
      to
      the Executive by the Company specifying in reasonable detail the alleged
      violation;

     

    b.    The
      Executive is indicted for a felony, or a misdemeanor involving moral turpitude;
      

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    c.    A
      bank
      regulatory agency having jurisdiction over the Company or the Bank has issued
      a
      notice of intent (i.e. a “15 day letter”) to pursue the suspension or removal of
      Executive by bank regulatory authorities; or

     

    d.    The
      Chief
      Executive Officer and/or the Board of Directors, in the exercise of his or
      its
      reasonable judgment and in good faith, determines that the Executive’s job
      performance is substantially unsatisfactory and the Executive has failed to
      cure
      such performance within a reasonable period after written notice to the
      Executive by the Bank specifying in reasonable detail the nature of the
      unsatisfactory performance.

     

    17.    Executive
      shall be entitled to terminate this Agreement at any time, for any reason,
      with
      or without cause, by providing thirty (30) days written notice, by personal
      delivery or certified United States mail, to the Company at its principal
      business address of the Executive’s intention to terminate this Agreement. Such
      notice shall be effective upon personal delivery or three days after mailing
      by
      certified mail. In the event that the Executive does so because of a
“constructive termination” as defined in this Agreement, the Company covenants
      and agrees to provide the Executive with the SEVERANCE
      set
      forth below in this Agreement. “Constructive termination” shall mean any
      circumstance pursuant to which Executive’s compensation is materially
      diminished, his job title is changed to a position of lesser importance, or
      his
      responsibilities are materially reduced.

     

    18.    In
      the
      event of the Executive’s death, this Agreement will terminate immediately,
      without notice, on the date of the Executive’s death. The Executive acknowledges
      and agrees that, in the event of his death, the Company will pay to the
      Executive’s estate all compensation due and owing through the date of the
      Executive’s death.

     

    19.    This
      Agreement will terminate immediately, without notice, in the event the Executive
      becomes physically or mentally disabled, as defined by 29 C.F.R.
§ 1630.2(g)(1), and cannot perform the essential functions of his position,
      with or without reasonable accommodation for the period designated by the
      Executive’s disability insurance after which disability payments will
      begin.

     

    20.    The
      Executive acknowledges and agrees that in the event of termination of this
      Agreement, for whatever reason, whether at the insistence of the Executive
      or at
      the insistence of the Company, the Executive will return to the Company within
      seventy-two (72) hours of the time when notice of termination is communicated
      by
      either party, or sooner if requested by the Company, any and all equipment,
      literature, documents, data, information, order forms, memoranda,
      correspondence, customer and prospective customer lists, customer’s orders,
      records, cards or notes acquired, compiled or coming into the Executive’s
      knowledge, possession or control in connection with his activities as an
      employee of the Company or the Bank, as well as all machines, parts, equipment
      or other materials received from the Company or the Bank or from any of their
      respective customers, agents or suppliers, in connection with such
      activities.

     

    21.    The
      provisions of Paragraphs 12-14,
      20-25,
      30
      and
36
      shall
      survive the termination of this Agreement.

     

    
      
        
        

      

      
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    CHANGE
      IN CONTROL

    

    22.    The
      parties acknowledge that the Executive has agreed to assume the position of
      Executive Vice President and to enter into this Agreement based on his
      confidence in the current owners of the Company and the direction of the Company
      provided by the current Board of Directors. If the Company should undergo a
      “Change of Control,” as defined below, and there is a material change in the
      Executive’s responsibilities, duties, terms or location of employment, then the
      Executive, at his option, may notify the Company at any time within sixty (60)
      days following such Change of Control, by personal delivery or certified U.S.
      mail, that he intends to terminate this Agreement based upon the Change of
      Control. Notice of termination shall be effective upon delivery or three (3)
      days after mailing by certified mail.

     

    23.    In
      the
      event that the Executive elects to terminate this Agreement based upon a Change
      in Control, the Company covenants and agrees to pay to the Executive cash
      payments in an aggregate amount equal to 125% of Executive’s then current annual
      salary or $131,250.00, whichever is greater, less statutory payroll deductions.
      Such compensation shall be payable in equal disbursements in accordance with
      the
      Company’s ordinary payroll policies and procedures.

     

    24.    As
      used
      in this Agreement, a “Change of Control” shall be deemed to have occurred in any
      of the following instances:

     

    a.    the
      Company or the Bank is merged or consolidated with another corporation and
      as a
      result of such merger or consolidation less than fifty percent (50%) of the
      outstanding voting securities (on a fully diluted basis) of the surviving or
      resulting corporation are owned in the aggregate by the former shareholders
      of
      the Company;

     

    b.    the
      Company or the Bank sells all or substantially all of its assets to another
      corporation; or

     

    c.    there
      is
      an acquisition of more than fifty percent (50%) of the outstanding voting
      securities of the Company or the Bank pursuant to any transaction or combination
      of transactions by any person or group within the meaning of such terms in
      the
      Securities Exchange Act of 1934, as amended.

     

    SEVERANCE

    

    25.    If
      the
      Company elects to terminate this Agreement at any time prior to the Expiration
      Date for any reason other than “good cause” as defined in this Agreement, or if
      Executive terminates this Agreement as a result of a “constructive termination,”
the Executive shall be entitled to severance pay. Such severance pay shall
      be
      equal to $52,500.00 or the equivalent of half the Executive’s then current
      annual salary, whichever is greater, less statutory payroll deductions, payable
      in twelve (12) equal disbursements in accordance with the Company’s ordinary
      payroll policies and procedures, beginning on the date that the notice of
      termination becomes effective. In the event that the Executive is entitled
      to
      any payment under the CHANGE
      IN CONTROL or NONCOMPETITION provisions
      above, no payment shall be due under this SEVERANCE
      provision.

     

    
      
        
        

      

      
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    SEVERABILITY

    

    26.    The
      Executive acknowledges
      and
      agrees that each covenant and/or provision of this Agreement shall be
      enforceable independently of every other covenant and/or provision. Furthermore,
      the Executive acknowledges and agrees that, in the event any covenant and/or
      provision of this Agreement is determined to be unenforceable for any reason,
      the remaining covenants and/or provisions will remain effective, binding and
      enforceable.

     

    WAIVER

    

    27.    The
      parties acknowledge and agree
      that
      the failure of either to enforce any provision of this Agreement shall not
      constitute a waiver of that particular provision, or of any other provisions
      of
      this Agreement.

     

    SUCCESSORS
      AND ASSIGNS

    

    28.    The
      Executive acknowledges and agrees that this Agreement may be assigned by the
      Company to any successor-in-interest and shall inure to the benefit of, and
      be
      fully enforceable by, any successor and/or assignee; and this Agreement will
      be
      fully binding upon, and may be enforced by the Executive against, any successor
      and/or assignee of the Company.

     

    29.    The
      Executive acknowledges and agrees that his obligations, duties and
      responsibilities under this Agreement are personal and shall not be assignable,
      and that this Agreement shall be enforceable by the Executive only. In the
      event
      of the Executive’s death, this Agreement shall be enforceable by the Executive’s
      estate, executors and/or legal representatives, only to the extent provided
      herein.

     

    CHOICE
      OF LAW

    

    30.    BOTH
      PARTIES ACKNOWLEDGE AND AGREE THAT THE LAW OF THE STATE OF MICHIGAN WILL GOVERN
      THE VALIDITY, INTERPRETATION AND EFFECT OF THIS AGREEMENT, AND ANY OTHER DISPUTE
      RELATING TO, OR ARISING OUT OF, THE EMPLOYMENT RELATIONSHIP BETWEEN THE COMPANY
      AND THE EXECUTIVE.

     

    MODIFICATION

    

    31.    Both
      parties acknowledge and agree that this Agreement and the other agreements
      and
      plans referenced herein constitute the complete and entire agreement between
      the
      parties; that the parties have executed this Agreement based upon the express
      terms and provisions set forth herein; that the parties have not relied on
      any
      representations, oral or written, which are not set forth in this Agreement;
      that no previous agreement, either oral or written, shall have any effect on
      the
      terms or provisions of this Agreement; and that all previous agreements, either
      oral or written, are expressly superseded and revoked by this
      Agreement.

     

    
      
        
        

      

      
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    32.    Both
      parties acknowledge and agree that the covenants and/or provisions of this
      Agreement may not be modified by any subsequent agreement unless the modifying
      agreement; (i) is in writing; (ii) contains an express provision
      referencing this Agreement; (iii) is signed by the Executive; and
      (iv) is approved by the Chief Executive Officer and a disinterested
      majority of the Board of Directors of the Company.

     

    INDEMNIFICATION

    

    33.    During
      the term of this Agreement, the Company shall indemnify the Executive against
      all judgments, penalties, fines, amounts paid in settlement and reasonable
      expenses (including, but not limited to, attorneys’ fees) relating to his
      employment by the Company to the fullest extent permissible under the Company’s
      Articles of Incorporation and the Bank’s Articles of Association and may
      purchase such indemnification insurance as the Board of Directors may from
      time
      to time determine.

     

    LEGAL
      CONSULTATION

    

    34.    The
      Executive and the Company acknowledge and agree that both parties have been
      accorded a reasonable opportunity to review this Agreement with legal counsel
      prior to executing the agreement. The Executive acknowledges that he is not
      represented by Jenkens & Gilchrist, P.C. in connection with the preparation
      and negotiation of this Agreement, and that Jenkens & Gilchrist, P.C.
      represents the Company.

     

    NOTICES

    

    35.    Any
      and
      all notices of documents or other notices required to be delivered under the
      terms of this Agreement shall be addressed to each party as
      follows:

     

    

    EXECUTIVE:

    

    Richard
      Gurne

    928
      Hampstead

    Rochester
      Hills, MI 48309

    

    COMPANY:

    

    Lotus
      Bancorp, Inc.

    P.O.
      Box
      250428

    West
      Bloomfield, MI 48325-0428

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    MISCELLANEOUS

    

    36.    The
      Executive shall make himself available, upon the request of the Company or
      the
      Bank, to testify or otherwise assist in litigation, arbitration, or other
      disputes involving the Bank, or any of the directors, officers, employees,
      subsidiaries, or parent corporations of either, at no additional cost during
      the
      term of this Agreement and at any time following the termination of this
      Agreement.

     

    37.    The
      Executive shall not be required to mitigate the amount of any payment provided
      for in this Agreement by seeking other employment or otherwise, nor shall the
      amount of any payment provided for in this Agreement be reduced by any
      compensation earned by the Executive as the result of employment by another
      employer after the date of termination, or otherwise.

     

    38.    In
      the
      event either party institutes litigation to enforce or protect its rights under
      this Agreement, the prevailing party in such litigation shall be entitled,
      in
      addition to all other relief, to reasonable attorneys fees, out-of-pocket costs,
      disbursements, and fees relating to such litigation.

     

    39.    This
      Agreement may be executed simultaneously in two or more counterparts, each
      of
      which shall be deemed an original, but all of which shall together constitute
      one and the same Agreement.

     

    40.    Neither
      the Company nor the Bank shall have any obligation to set aside, earmark or
      entrust any fund or money with which to pay its obligations under this
      Agreement. The Executive or any successor-in-interest to Executive shall be
      and
      remain simply a general creditor of the Company or the Bank in the same manner
      as any other creditor having a general unsecured claim. For purposes of the
      Code, the Company intends this Agreement to be an unfunded, unsecured promise
      to
      pay on the part of the Company. For purposes of Employee Retirement Income
      Security Act of 1974, as amended (“ERISA”), the Company intends that this
      Agreement not be subject to ERISA. If it is deemed subject to ERISA, it is
      intended to be an unfunded arrangement for the benefit of a select member of
      management, who is a highly compensated employee of the Company for the purpose
      of qualifying this Agreement for the “top hat” plan exception under sections
      201(2), 301(a)(3) and 401(a)(1) of ERISA. At no time shall the Executive have
      or
      be deemed to have any lien nor right, title or interest in or to any specific
      investment or to any assets of the Company or the Bank. If the Company or Bank
      elects to invest in a life insurance, disability or annuity policy upon the
      life
      of Executive, the Executive shall assist the Company and Bank by freely
      submitting to a physical examination and supplying such additional information
      necessary to obtain such insurance or annuities.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    41.    When
      a
      reference is made in this Agreement to a Paragraph, such reference shall be
      to a
      Paragraph of this Agreement unless otherwise indicated. The headings contained
      in this Agreement are for convenience of reference only and shall not affect
      in
      any way the meaning or interpretation of this Agreement. Whenever the words
      “include”, “includes” or “including” are used in this Agreement, they shall be
      deemed to be followed by the words “without limitation.” The words “hereof”,
“herein” and “hereunder” and words of similar import when used in this Agreement
      shall refer to this Agreement as a whole and not to any particular provision
      in
      this Agreement. Each use herein of the masculine, neuter or feminine gender
      shall be deemed to include the other genders.
      Each
      use
      herein of the plural shall include the singular and
      vice
      versa, in each case as the context requires or as is otherwise appropriate.
      The
      word “or” is used in the inclusive sense. Any agreement or instrument defined or
      referred to herein or in any agreement or instrument that is referred to herein
      means such agreement or instrument as from time to time amended, modified or
      supplemented, including by waiver or consent.
      References to a person are also to its permitted successors or
      assigns.

     

    42.    Executive
      represents that his service as an employee of the Company and Bank will not
      violate any agreement: (i) he has made that prohibits his from disclosing any
      information he acquired prior to his becoming employed by the Company or the
      Bank; or (ii) he has made that prohibits his from accepting employment with
      the
      Company or the Bank or that will interfere with his compliance with the terms
      of
      this Agreement. Executive further represents that he has not previously, and
      will not in the future, disclose to the Company or the Bank any proprietary
      information or trade secrets belonging to any previous employer. Executive
      acknowledges that the Company and the Bank have instructed him not to disclose
      to it any proprietary information or trade secrets belonging to any previous
      employer.

     

    43.    As
      the
      Company and the Bank are considered to be in the business of community banking
      and as the Executive will be required to participate in community activities
      and
      become a part of the community where the Company and the Bank are located,
      the
      Executive shall relocate his primary residence to Southeastern Michigan within
      a
      one hour “drive” of its main office within three months of the Opening
      Date.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    EXECUTED
      ON THE DATE FIRST WRITTEN ABOVE.

     

     

    
      	 	 	“EXECUTIVE”
	 	 	 
	/s/ Richard
              Bauer                               
              	 	/s/
              Richard
              Gurne                            
                
	WITNESS  	 	Richard Gurne
	 	 	 
	 	 	“COMPANY”
	 	 	 
	 	 	CITY CENTRAL BANCORP,
              INC.
	 	 	 
	/s/ Richard
              Bauer                                
              	 	/s/ Satish
              Jasti                                     
              
	
              WITNESS

            	
               

            	Satish Jasti
              President
                & CEO

            

    

    
 

    
      
        
        

      

      
        13EMPLOYMENT
      AGREEMENT

    

    THIS
      EMPLOYMENT AGREEMENT (“Agreement”), dated as of the 15th day of August, 2006, is
      entered into by and between Orion Ethanol, LLC, a Kansas Limited Liability
      Company (the “Company”) and Patrick N. Barker (“Executive”).

    

    IN
      CONSIDERATION of the premises and the mutual covenants set forth below, the
      parties hereby agree as follows:

    

    1. Employment.
      The
      Company hereby agrees to employ Executive as Chief Executive Officer of the
      Company, and Executive hereby accepts employment, on the terms and conditions
      set forth in this Agreement.

    

    2. Term.
      The
      term of Executive’s employment by the Company under this Agreement shall
      commence on August 16, 2006 (the “Effective Date”) and terminate on August 15,
      2008 (the “Employment Period”); provided, however, that commencing on the
      one-year anniversary of the Effective Date and each annual anniversary of such
      date (the “Renewal Date”), the Employment Period shall be automatically extended
      so as to terminate two (2) years from such Renewal Date. If, at least 90 days
      prior to the Renewal Date, the Company gives Executive notice that the
      Employment Period will not be so extended, this Agreement will continue for
      the
      remainder of the then current Employment Period and expire. The Employment
      Period may be sooner terminated under Section 6 of this Agreement.

    

    3. Position
      and Duties.
      During
      the Employment Period, Executive will report directly to the Board of Directors
      of the Company. Executive shall perform all services reasonably required by
      the
      standards of the ethanol industry to fully execute the duties and
      responsibilities associated with such position. Executive will devote
      substantially all of his working time, attention and energies (other than
      absences due to illness or vacation) to the performance of his duties for the
      Company. Notwithstanding the above, Executive will be permitted, to the extent
      such activities do not interfere with the performance by Executive of his duties
      and responsibilities under this Agreement or violate Sections 11(a), (b) or
      (c)
      of this Agreement, to (i) manage Executive’s personal, financial and legal
      affairs, and (ii) serve on civic or charitable boards or committees.

    

    4. Place
      of Performance.
      Executive’s place of employment will be the Company’s principal executive
      offices in Pratt, Kansas.

    

    5. Compensation
      and Related Matters.

    

    (a) Base
      Salary.
      During
      the Employment Period, the Company will pay Executive a base salary of not
      less
      than $300,000.00 per year (“Base Salary”), in approximate equal installments in
      accordance with the Company’s customary payroll practices. Executive’s Base
      Salary may be increased, but not decreased, pursuant to annual review by the
      Board. In the event Executive’s Base Salary is increased, the increased amount
      will then constitute the Base Salary for all purposes of this
      Agreement.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b) Annual
      Incentive Bonus.
      The
      Board shall establish a bonus program for Executive during each year of the
      Employment Period.

    

    (c) Welfare,
      Pension and Incentive Benefit Plans; Reimbursement for COBRA
      Coverage.
      During
      the Employment Period, Executive (and his spouse and/or dependents to the extent
      provided in the applicable plans and programs) will be entitled to participate
      in and be covered under all the welfare benefit plans or programs maintained
      by
      the Company for the benefit of its senior executive officers pursuant to the
      terms of such plans and programs including, without limitation, all medical,
      life, hospitalization, dental, disability, accidental death and dismemberment
      and travel accident insurance plans and programs. In addition, during the
      Employment Period, Executive will be eligible to participate in all pension,
      retirement, savings and other employee benefit plans and programs maintained
      from time to time by the Company for the benefit of its senior executive
      officers.

    

    6. Termination.
      Executive’s employment under this Agreement may be terminated during the
      Employment Period under the following circumstances:

    

    (a) Death.
      Executive’s employment under this Agreement will terminate upon his
      death.

    

    (b) Disability.
      If, as
      a result of Executive’s incapacity due to physical or mental illness, Executive
      is substantially unable to perform his duties under this Agreement (with or
      without reasonable accommodation, as defined under the Americans With
      Disabilities Act) for an entire period of six (6) consecutive months, and within
      thirty (30) days after a Notice of Termination (as defined in Section 7(a))
      is
      given after such six (6) month period, and Executive does not return to the
      substantial performance of his duties on a full-time basis, the Company has
      the
      right to terminate Executive’s employment under this Agreement for “Disability,”
and such termination will not be a breach of this Agreement by the
      Company.

    

    (c) Cause.
      The
      Company has the right to terminate Executive’s employment for Cause, and such
      termination will not be a breach of this Agreement by the Company. “Cause”
      means termination of employment for one of the following reasons: (i) the
      conviction of Executive by a federal or state court of competent jurisdiction
      or
      a plea of no contest to a felony which relates to Executive’s employment at the
      Company; (ii) an act or acts of dishonesty taken by Executive and intended
      to
      result in substantial personal enrichment of Executive at the expense of the
      Company; or (iii) Executive’s “willful” failure to follow a direct lawful
      written order from the Board of Directors of the Company, within the reasonable
      scope of Executive’s duties, which failure is not cured within thirty (30) days.
      Further, for purposes of this Subsection (c):

    

    (1) No
      act or
      failure to act on Executive’s part shall be deemed “willful” unless done or
      omitted to be done by Executive, not in good faith and without reasonable belief
      that Executive’s action or omission was in the best interest of the
      Company.

    

    (2) Executive
      shall not be deemed to have been terminated for Cause unless and until there
      has
      been delivered to Executive a copy of the resolution duly adopted by the
      affirmative vote of not less than three-fourths (3/4ths) of the entire
      membership of the Board of Directors of the Company, at a meeting of the Board
      of Directors called and held for such purpose (after reasonable notice to
      Executive and an opportunity for Executive, together with Executive’s counsel,
      to be heard before the Board of Directors), finding that in the good faith
      opinion of the Board of Directors Executive was guilty of the conduct set forth
      in clauses (i), (ii), or (iii) above and specifying the particulars thereof
      in
      detail.

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (d) Good
      Reason.
      Executive may terminate his employment for “Good Reason” by providing Notice of
      Termination to the Company within one hundred and twenty (120) days after
      Executive has actual knowledge of the occurrence, without the written consent
      of
      Executive, of one of the events set forth below, and such termination will
      not
      be a breach of this Agreement:

    

    (1) the
      assignment to Executive of any duties materially and adversely inconsistent
      with
      Executive’s status as Chief Executive Officer of the Company or a material and
      adverse alteration in the nature of Executive’s authority, duties or
      responsibilities;

    

    (2) the
      reduction by the Company of Executive’s Base Salary;

    

    (3) the
      requirement that Executive be based at any office or location that is more
      than
      100 miles from the Company’s current location in Pratt, Kansas except for travel
      reasonably required in the performance of Executive’s responsibilities;
      or

    

    (4) the
      failure of any successor to the Company to assume this Agreement pursuant to
      Section 15.

    

    (e) Without
      Cause.
      The
      Company has the right to terminate Executive’s employment under this Agreement
      without Cause by providing Executive with a Notice of Termination, subject
      to
      the obligations set forth in Section 8(a) hereof.

    

    (f) Voluntary
      Termination.
      Executive may voluntarily terminate employment with the Company at any time,
      and
      if such termination is not for Good Reason, then, Executive shall only be
      entitled to compensation and benefits as described in Section 8(b)
      hereof.

    

    7. Termination
      Procedure.

    

    (a) Notice
      of Termination.
      Any
      termination of Executive’s employment by the Company or by Executive during the
      Employment Period (other than termination pursuant to Section 6(a)) will be
      communicated by written Notice of Termination to the other party in accordance
      with Section 17. For purposes of this Agreement, a “Notice of Termination” means
      a written notice which indicates the specific termination provision in this
      Agreement relied upon and sets forth in reasonable detail the facts and
      circumstances claimed to provide a basis for termination of Executive’s
      employment.

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (b) Date
      of Termination.
“Date
      of Termination” shall mean (i) if Executive’s employment is terminated by his
      death, the date of his death, (ii) if Executive’s employment is terminated due
      to Disability pursuant to Section 6(b), thirty (30) days after Notice of
      Termination (provided that Executive has not returned to the substantial
      performance of his duties on a full-time basis during such thirty (30) day
      period), (iii) if Executive’s employment is terminated for Good Reason pursuant
      to Section 6(d), the date provided in such Section, or (iv) if Executive’s
      employment is terminated for any other reason, the date on which a Notice of
      Termination is given or any later date (within thirty (30) days after the giving
      of such Notice of Termination) set forth in such Notice of
      Termination.

    

    8. Compensation
      Upon Termination or During Disability.
      In the
      event of Executive’s Disability or termination of his employment under this
      Agreement during the Employment Period, the Company will provide Executive
      with
      the payments and benefits set forth below. Executive agrees that the Company
      has
      the right to deduct any amounts owed by Executive to the Company for any reason,
      including, without limitation, Executive’s misappropriation of Company funds,
      from the payments set forth in this Section 8.

    

    (a) Termination
      by Company Without Cause or by Executive for Good Reason.
      If
      Executive’s employment is terminated by the Company without Cause or by
      Executive for Good Reason:

    

    (i) the
      Company will pay to Executive within 75 days of the Date of Termination in
      a
      single lump sum payment (A) his Base Salary and accrued vacation pay through
      the
      Date of Termination, as soon as practicable following the Date of Termination,
      and (B) an amount equal to his Base Salary multiplied by two (2.0);

    

    (ii) the
      Company will pay to Executive within 75 days of the end of the year in which
      the
      Date of Termination occurs, the product of (i) the annual bonus that would
      have
      otherwise been paid at the end of the year in which the Date of Termination
      occurs and (ii) a fraction, the numerator of which is the number of days in
      the
      current year through the Date of Termination and the denominator of which is
      365;

    

    (iii) the
      Company will maintain in full force and effect, for the continued benefit of
      Executive (and his spouse and/or his dependents, as applicable) for a period
      of
      twelve (12) months following the Date of Termination, the medical,
      hospitalization, and dental programs in which Executive (and his spouse and/or
      his dependents, as applicable) participated immediately prior to the Date of
      Termination, at the level in effect and upon substantially the same terms and
      conditions (including, without limitation, contributions required by Executive
      for such benefits) as existed immediately prior to the Date of Termination;
      provided, if Executive (or his spouse) is eligible for Medicare or a similar
      type of governmental medical benefit, such benefit shall be the primary provider
      before Company medical benefits are provided. If Executive (or his spouse and/or
      his dependents, as applicable) cannot continue to participate in the Company
      programs providing such benefits, the Company shall arrange to provide Executive
      (and his spouse and/or his dependents, as applicable) with the economic
      equivalent of such benefits which they otherwise would have been entitled to
      receive under such plans and programs (“Continued Benefits”). However, if
      Executive becomes reemployed with another employer and is eligible to receive
      medical, hospitalization and dental benefits under another employer-provided
      plan, the medical, hospitalization and dental benefits described herein shall
      be
      secondary to those provided under such other plan during the applicable
      period;

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (iv) the
      Company will reimburse Executive, pursuant to the Company’s policy, for
      reasonable business expenses incurred, but not paid, prior to the Date of
      Termination; and

    

    (v) Executive
      will be entitled to any other rights, compensation and/or benefits as may be
      due
      to Executive following such termination to which he is otherwise entitled in
      accordance with the terms and provisions of any plans or programs of the
      Company

    

    (b) Termination
      by Company for Cause or by Executive Without Good Reason.
      If
      Executive’s employment is terminated by the Company for Cause or by Executive
      (other than for Good Reason): 

    

    (i) the
      Company will pay Executive his Base Salary and his accrued vacation pay (to
      the
      extent required by law or the Company’s vacation policy) through the Date of
      Termination, as soon as practicable following the Date of
      Termination;

    

    (ii) the
      Company will reimburse Executive, pursuant to the Company’s policy, for
      reasonable business expenses incurred, but not paid, prior to the Date of
      Termination, unless such termination resulted from a misappropriation of Company
      funds; and

    

    (iii) Executive
      will be entitled to any other rights, compensation and/or benefits as may be
      due
      to Executive following termination to which he is otherwise entitled in
      accordance with the terms and provisions of any plans or programs of the
      Company.

    

    (c) Disability.
      During
      any period that Executive fails to perform his duties under this Agreement
      as a
      result of incapacity due to physical or mental illness (“Disability Period”),
      Executive will continue to receive his full Base Salary set forth in Section
      5(a) until his employment is terminated pursuant to Section 6(b). In the event
      Executive’s employment is terminated for Disability pursuant to Section
      6(b):

    

    (i) the
      Company will (A) pay to Executive his Base Salary and accrued vacation pay
      through the Date of Termination, as soon as practicable following the Date
      of
      Termination, and (B) provide Executive with disability benefits pursuant to
      the
      terms of the Company’s disability programs and/or practices;

    

    (ii) the
      Company will reimburse Executive, pursuant to the Company’s policy, for
      reasonable business expenses incurred, but not paid, prior to the Date of
      Termination; and

    

    (iii) Executive
      will be entitled to any other rights, compensation and/or benefits as may be
      due
      to Executive following such termination to which he is otherwise entitled in
      accordance with the terms and provisions of any plans or programs of the
      Company.

    

    (d) Death.
      If
      Executive’s employment is terminated by his death, the Company will pay in a
      lump sum to Executive’s beneficiary, legal representatives or estate, as the
      case may be, Executive’s earned but unpaid Base Salary as of the date of death,
      accrued vacation and unreimbursed business expenses and amounts due under any
      plans, programs or arrangements of the Company through the Date of
      Termination.

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    9. Obligations
      of the Company Following a Change of Control.
      Notwithstanding anything in this Agreement to the contrary, in the event of
      a
      Change of Control, Executive may terminate employment for any reason following
      his continued employment for twelve (12) months after the effective date of
      the
      Change of Control, and such termination shall be deemed to be a termination
      for
      Good Reason for all purposes of this Agreement, including provisions of Section
      8(a). For purposes of this Agreement, Change of Control shall mean

    

    (a) any
      “person” or “group” (within the meaning of Section 13(d) or 14(d)(2) under the
      Securities Exchange Act of 1934, as amended) becomes the ultimate “beneficial
      owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as
      amended) of more than 50% of the total voting power of the Voting Stock of
      the
      Company on a fully diluted basis, and such ownership represents a greater
      percentage of the total voting power of the Voting Stock of the Company, on
      a
      fully diluted basis, than is held by the Existing Stockholders and their
      Affiliates (as defined in Rule 12b-2 under the Securities Exchange Act of 1934,
      as amended) on such date; or

    

    (b) individuals
      who, on September 30, 2006, constitute the Board of Directors of the Company
      (together with any new directors whose election by the Board of Directors or
      whose nomination for election by the Company’s stockholders, was approved by a
      vote of at least a majority of the members of the Board of Directors then in
      office who either were members of the Board of Directors on September 30, 2006,
      or whose election or nomination for election was previously so approved) cease
      for any reason to constitute a majority of the members of the Board of Directors
      of the Company then in office; or

    

    (c) the
      sale,
      lease, transfer, conveyance or other disposition (other than by way of merger
      or
      consolidation), in one or a series of related transactions, of more than 50%
      of
      the combined assets of the Company to any Person other than a wholly-owned
      subsidiary of the Company, the Existing Stockholders or any Affiliate thereof;
      or

    

    (d) the
      adoption of a plan of liquidation or dissolution of the Company;

    

    provided,
      that the following events shall not constitute a Change of Control:

    

    (i) the
      acquisition of shares of Voting Stock by the Company or any of its majority
      or
      wholly-owned subsidiaries;

    

    (ii) the
      acquisition of shares of Voting Stock by any employee benefit plan (or trust)
      sponsored or maintained by the Company;

    

    (iii) any
      transfer of Voting Stock by gift, devise or descent by an Existing Stockholder
      to or by any spouse, parent, grandparent, child, grandchild or trust established
      or maintained for the benefit of any such persons; or

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (iv) the
      acquisition of shares of Voting Stock by any Existing Stockholder or by any
      spouse, parent, grandparent, child, grandchild or trust established or
      maintained for the benefit of any such persons.

    

    The
      term
“Existing Stockholder” when used in reference to the Company means those
      individuals listed as shareholders of the Company on Exhibit ___ of the
      Shareholders Agreement, dated August 16, 2006 and any of their respective
      spouses, parents, grandparents, children, grandchildren, and/or any trust
      established or maintained for either of such persons.

    

    As
      used
      herein, the term “Voting Stock” means capital stock of the Company of any class
      or kind ordinarily having the power to vote for the election of directors of
      the
      Company.

    

    10. Mitigation.
      Executive will not be required to mitigate amounts payable under this Agreement
      by seeking other employment or otherwise, and there will be no offset against
      amounts due Executive under this Agreement on account of subsequent employment
      except as specifically provided herein.

    

    11. Confidential
      Information; Non-Solicitation.

    

    (a) Nondisclosure
      of Confidential Information.
      Executive acknowledges that it is the policy of the
      Company
      to maintain as secret and confidential (i) all valuable and unique information,
      (ii) other information heretofore or hereafter acquired by the Company or any
      affiliated entity and deemed by it to be confidential, and (iii) information
      developed or used by the Company or any affiliated entity relating to the
      business, operations, employees and customers of the Company or any affiliated
      entity including, but not limited to, processes, site development, customer
      lists or employee information (all such information described in clauses (i),
      (ii) and (iii) above, other than information which is known to the public or
      becomes known to the public through no fault of Executive, is hereinafter
      referred to as “Confidential Information”). The parties recognize that the
      services to be performed by Executive pursuant to this Agreement are special
      and
      unique and that by reason of his employment by the Company after the date
      hereof, Executive has acquired and will acquire Confidential Information.
      Executive recognizes that all such Confidential Information is the property
      of
      the Company. Accordingly, at any time during or after the Employment Period,
      Executive shall not, except in the proper performance of his duties under this
      Agreement, directly or indirectly, without the prior written consent of the
      Company, disclose to any Person other than the Company, whether or not such
      a
      Person is a competitor of the Company, and shall use his best efforts to prevent
      the publication or disclosure of any Confidential Information obtained by,
      or
      which has come to the knowledge of, Executive prior or subsequent to the date
      hereof. Notwithstanding the foregoing, Executive may disclose to other Persons,
      as part of his occupation, information with respect to the Company or any
      affiliated entity, which (i) is of a type generally not considered by standards
      of the ethanol industry to be proprietary, or (ii) is otherwise consented to
      in
      writing by the Company.

    

    (b) Non-Solicitation.
      Executive shall not, during the Employment Period or for the eighteen
      month-period following Executive’s termination of employment (the “Covered
      Period”), either personally or by or through his agent or by letters, circulars
      or advertisements and whether for himself or on behalf of any other person,
      seek
      to persuade any employee of the Company or any affiliated entity or any Person
      who was an employee of the Company or any affiliated entity during the Covered
      Period, to discontinue his or her status or employment with the Company or
      such
      affiliated entity or to become employed in a Competitive Business. Additionally,
      Executive shall not, for himself or on behalf of any person, directly or
      indirectly, solicit, divert or attempt to solicit or divert any customer of
      the
      Company or any affiliated entity who was a customer of the Company during the
      Covered Period.

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    (c) Noncompete.
      Executive
      shall not while employed by the Company and for the twenty-four-month period
      immediately after Executive ceases to be employed by the Company, without the
      prior written consent of the Company, either directly or indirectly, perform
      any
      services (whether advisory, consulting, employment or otherwise) for, invest
      in
      or otherwise become associated with in any capacity, any person, corporation,
      partnership or other entity which engages in a Competitive Business (as defined
      below); provided, however, that nothing herein shall prevent Executive from
      purchasing and holding for investment less than 2% of the shares of any
      corporation, the shares of which are regularly traded either on a national
      securities exchange or in the over-the-counter market. For purposes of this
      Agreement, “Competitive Business” means a business engaged in the operation of a
      corn dry-mill ethanol plant in the United States.

    

    (d) Obligations
      of Executive Upon Termination.
      Upon
      termination of this Agreement for any reason, Executive shall return to the
      Company all documents and copies of documents in his possession relating to
      any
      Confidential Information including, but not limited to, internal and external
      business forms, manuals, correspondence, notes and computer programs, and
      Executive shall not make or retain any copy or extract of any of the foregoing.
      In addition, in the event Executive’s employment is terminated for Cause,
      Executive shall resign from all offices and positions held with the
      Company.

    

    (e) Remedies.
      Executive acknowledges and understands that paragraphs 11(a), 11(b) and 11(c)
      and the other provisions of this Agreement are of a special and unique nature,
      the loss of which cannot be adequately compensated for in damages by an action
      at law, and that the breach or threatened breach of the provisions of this
      Agreement would cause the Company irreparable harm. In the event of a breach
      or
      threatened breach by Executive of the provisions of this Agreement, the Company
      shall be entitled to an injunction restraining him from such breach. Nothing
      contained in this Agreement shall be construed as prohibiting the Company from
      pursuing, or limiting the Company’s ability to pursue, any other remedies
      available for any breach or threatened breach of this Agreement by Executive.
      The provision of this Agreement relating to arbitration of disputes shall not
      be
      applicable to the Company to the extent it seeks an injunction in any court
      to
      restrain Executive from violating paragraphs 11(a), 11(b) and 11(c)
      hereof.

    

    (f) Continuing
      Operation. Except as specifically provided in this Section 11, the
      termination of Executive’s employment or of this Agreement will have no effect
      on the continuing operation of this Section 11.

    

    (g) Additional
      Related Agreements.
      Executive agrees to sign and to abide by the provisions of any additional
      agreements, policies or requirements of the Company related to the subject
      of
      this Section 11.

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    12. Release.
      Executive agrees, if his employment is terminated under circumstances entitling
      him to payments under Section 8(a) of this Agreement, that in consideration
      for
      the payments described in Section 8(a), he will execute a General Release in
      substantially the form of Exhibit A attached hereto, through which Executive
      releases the Company from any and all claims as may relate to or arise out
      of
      his employment relationship (excluding claims Executive may have under any
      “employee pension plan” as described in Section 3(3) of ERISA or any claims
      under this Agreement). The form of the Release may be modified as needed to
      reflect changes in the applicable law or regulations that are needed to provide
      a legally enforceable and binding Release to the Company at the time of
      execution.

    

    13. Indemnification
      and Insurance.
      Executive shall be indemnified and held harmless by the Company during the
      term
      of this Agreement and following any termination of this Agreement for any reason
      whatsoever in the same manner as would any other key management employee of
      the
      Company with respect to acts or omissions occurring prior to (a) the termination
      of this Agreement or (b) the termination of employment of Executive. In
      addition, during the term of this Agreement and for a period of three years
      following the termination of this Agreement for any reason whatsoever, Executive
      shall be covered by a Company-held directors and officers liability insurance
      policy covering acts or omissions occurring prior to (a) the termination of
      this
      Agreement or (b) the termination of employment of Executive. Provided, in no
      event will the obligation of the Company to indemnify Executive or provide
      directors and officers insurance to Executive under this Section 13 be less
      than
      the obligation and insurance coverage which the Company provided to Executive
      immediately prior to the occurrence of a Change of Control.

    

    14. Arbitration;
      Legal Fees and Expenses.
      The
      parties agree that Executive’s employment and this Agreement relate to
      interstate commerce, and that any disputes, claims or controversies between
      Executive and the Company which may arise out of or relate to Executive’s
      employment relationship or this Agreement shall be settled by arbitration.
      This
      agreement to arbitrate shall survive the termination of this Agreement. Any
      arbitration shall be in accordance with the Rules of the American Arbitration
      Association and undertaken pursuant to the Federal Arbitration Act. Arbitration
      will be held in Wichita,
      Kansas
      unless
      the parties mutually agree on another location. The decision of the
      arbitrator(s) will be enforceable in any court of competent jurisdiction. The
      parties agree that punitive, liquidated or indirect damages shall not be awarded
      by the arbitrator(s)
      unless
      such damages would have been awarded by a court of competent
      jurisdiction.
      Nothing
      in this Agreement to arbitrate, however, shall preclude the Company from
      obtaining injunctive relief from a court of competent jurisdiction prohibiting
      any ongoing breaches by Executive of this Agreement including, without
      limitation, violations of Section 11.
      If any
      contest or dispute arises
      between
      the Company and Executive regarding any provision of this Agreement, the Company
      will reimburse Executive for all legal fees and expenses reasonably incurred
      by
      Executive in connection with such contest or dispute. Such reimbursement will
      be
      made as soon as practicable following the final,
      non-appealable resolution
      of such contest or dispute to the extent the Company receives reasonable written
      evidence of such fees and expenses.

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    15. Agreement
      Binding on Successors.

    

    (a) Company’s
      Successors.
      No
      rights or obligations of the Company under this Agreement may be assigned or
      transferred except that the Company will require any successor (whether direct
      or indirect, by purchase, merger, reorganization,
      sale, transfer of stock, consolidation
      or otherwise) to all or substantially all of the business and/or assets of
      the
      Company to expressly assume and agree
      to
      perform this Agreement in the same manner and to the same extent that the
      Company would be required to perform it if no succession had taken place. As
      used in this Agreement, “Company” means
      the
Company
      as
      hereinbefore defined,
      and any
      successor to its business and/or assets (by merger, purchase or otherwise)
      which
      executes and delivers the agreement provided for in this Section 15
      or which
      otherwise becomes bound by all the terms and provisions of this Agreement by
      operation of law.

    

    (b) Executive’s
      Successors.
      No
      rights or obligations of Executive under this Agreement may be assigned or
      transferred by Executive other than his rights to payments or benefits
      under
      this
      Agreement,
      which
      may be transferred only by will or the laws of descent and distribution. Upon
      Executive’s death, this Agreement and all rights of Executive under
      this
      Agreement
      shall
      inure to the benefit of and be enforceable by Executive’s beneficiary or
      beneficiaries, personal or legal representatives, or estate, to the extent
      any
      such person succeeds to Executive’s interests under this Agreement. Executive
will
      be
      entitled to select and change a beneficiary or beneficiaries to receive any
      benefit or compensation payable under this
      Agreement following
      Executive’s death by giving the Company written notice thereof
      in a
      form acceptable to the Company.
      In the
      event of Executive’s death or a judicial determination of his incompetence,
      reference in this Agreement to Executive shall be deemed, where appropriate,
      to
      refer to his
      beneficiary(ies), estate or other legal representative(s). If Executive should
      die following his Date of Termination while any amounts would still be payable
      to him
      under
this
      Agreement if
      he had
      continued to live, unless otherwise provided,
      all such
      amounts shall be paid in accordance with the terms of this Agreement to such
      person or persons so appointed in writing by Executive, or otherwise to his
      legal representatives or estate.

    

    16. Maximum
      Payments by the Company.
      It
      is the
      objective of this Agreement to maximize Executive’s Net After-Tax Benefit (as
      defined herein) if payments or benefits provided under this Agreement are
      subject to excise tax under Section 4999 of the Code. Therefore, in the event
      it
      is determined that any payment or benefit by the Company or otherwise to or
      for
      the benefit of Executive, whether paid or payable or distributed or
      distributable pursuant to the terms of this Agreement or otherwise, including,
      by example and not by way of limitation, acceleration by the Company or
      otherwise of the date of vesting or payment or rate of payment under any plan,
      program, arrangement or agreement of the Company, would be subject to the excise
      tax imposed by Section 4999 of the Code or any interest or penalties with
      respect to such excise tax (such excise tax, together with any such interest
      and
      penalties, are hereinafter collectively referred to as the “Excise Tax”), then
      the Company shall first make a calculation under which such payments or benefits
      provided to Executive under this Agreement are reduced to the extent necessary
      so that no portion thereof shall be subject to the excise tax imposed by Section
      4999 of the Code (the “4999 Limit”). The Company shall then compare (x)
      Executive’s Net After-Tax Benefit assuming application of the 4999 Limit with
      (y) Executive’s Net After-Tax Benefit without the application of the 4999 Limit
      and Executive shall be entitled to the greater of (x) or (y). “Net After-Tax
      Benefit” shall mean the sum of (i) all payments and benefits which Executive
      receives or is then entitled to receive from the Company, less (ii) the amount
      of federal income taxes payable with respect to the payments and benefits
      described in (i) above calculated at the maximum marginal income tax rate for
      each year in which such payments and benefits shall be paid to Executive (based
      upon the rate for such year as set forth in the Code at the time of the first
      payment of the foregoing), less (iii) the amount of excise taxes imposed with
      respect to the payments and benefits described in (i) above by Section 4999
      of
      the Code. The determination of whether a payment or benefit constitutes an
      excess parachute payment shall be made by tax counsel selected by the Company
      and reasonably acceptable to Executive. The costs of obtaining this
      determination shall be borne by the Company.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    17. Notice.
      For the
      purposes of this Agreement, notices, demands and all other communications
      provided for in this Agreement shall be in writing and shall be deemed to have
      been duly given when delivered either personally or by United States certified
      or registered mail, return receipt requested, postage prepaid, addressed as
      follows: 

     

    If
      to
      Executive:

    

    At
      his
      last known address

    evidenced
      on the Company’s

    payroll
      records.

    

    If
      to the
      Company:

    

    Orion
      Ethanol, LLC

    307
      S.
      Main

    Pratt,
      Kansas 67124

    

    or
      to
      such other address as any party may have furnished to the others in writing
      in
      accordance with
      this
      Agreement,
      except
      that notices of change of address shall be effective only upon
      receipt.

    

    18. Withholding.
      All
      payments hereunder will be subject to any required withholding of federal,
      state
      and local taxes pursuant to any applicable law or regulation.

    

    19. Miscellaneous.
      No
      provisions of this Agreement may be amended, modified, or waived unless agreed
      to in writing and
      signed
      by
      Executive and by a duly authorized officer of the Company. No waiver by either
      party of any breach by the other party of any condition or provision of this
      Agreement shall be deemed a waiver of similar or dissimilar provisions or
      conditions at the same or at any prior or subsequent time. The respective rights
      and obligations of the parties under
      this
      Agreement shall
      survive Executive’s termination of employment and the termination of this
      Agreement to the extent necessary for the intended preservation of such rights
      and obligations. The validity, interpretation, construction and performance
      of
      this Agreement shall be governed by the laws of the State of Kansas
      without
      regard to its conflicts of law principles.

    

    20. Validity.
      The
      invalidity or unenforceability of any provision or provisions of this Agreement
      will not affect the validity or enforceability of any other provision of this
      Agreement, which will remain in full force and effect.

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    21. Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which will be
      deemed to be an original but all of which together will constitute one and
      the
      same instrument.

    

    22. Section
      Headings.
      The
      section headings in this Agreement are for convenience of reference only, and
      they form no part of this Agreement and will not affect its
      interpretation.

    

    23. Entire
      Agreement.
      Except
      as
      provided elsewhere herein, this Agreement sets
      forth the entire agreement of the parties with respect to
      its
      subject
      matter and supersedes all prior agreements, promises, covenants, arrangements,
      communications, representations or warranties, whether oral or written, by
      any
      officer, employee or representative of any party to this
      Agreement with respect
      to
      such
      subject matter.

    

    IN
      WITNESS WHEREOF, the parties have executed this Agreement on the date first
      above written.

    

    
      
        	 	ORION ETHANOL, LLC,
                a
                Kansas Limited Liability Company
	 	 
	 	
                By: 
                  ____________________________________

                ________________,
                  ___________________

              
	 	 
	 	
                “COMPANY”

              
	 	 
	 	 
	 	
                “EXECUTIVE”

              

      

    

     

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    
      EXHIBIT
        A

    

     

    NOTICE.
      Various laws, including Title VII of the Civil Rights Act of 1964, the Civil
      Rights Act of 1866, the Pregnancy Discrimination Act of 1978, the Equal Pay
      Act,
      the Civil Rights Act of 1991, the Age Discrimination in Employment Act, the
      Rehabilitation Act of 1973, the Americans With Disabilities Act, the Employee
      Retirement Income Security Act and the Veterans Reemployment Rights Act (all
      as
      amended from time to time), prohibit employment discrimination based on sex,
      race, color, national origin, religion, age, disability, eligibility for covered
      employee benefits and veteran status. You may also have rights under laws such
      as the Older Worker Benefit Protection Act of 1990, the Worker Adjustment and
      Retraining Act of 1988, the Fair Labor Standards Act, the Family and Medical
      Leave Act, the Occupational Health and Safety Act and other federal, state
      and/or municipal statutes, orders or regulations pertaining to labor, employment
      and/or employee benefits. These laws are enforced through the United States
      Department of Labor and its agencies, including the Equal Employment Opportunity
      Commission (EEOC), and various state and municipal labor departments, fair
      employment boards, human rights commissions and similar agencies.

    

    This
      General Release is being provided to you in connection with the Employment
      Agreement between you and Orion Ethanol, LLC dated August 15, 2006, 2006 (the
      “Agreement”). The federal Older Worker Benefit Protection Act requires that you
      have at least twenty-one (21) days, if you want it, to consider whether you
      wish
      to sign a release such as this one in connection with a special, individualized
      severance package. You have until the close of business twenty-one (21) days
      from the date you receive this General Release to make your decision. You may
      not sign this General Release until, at the earliest, your official date of
      separation from employment, _________________.

    

    BEFORE
      EXECUTING THIS GENERAL RELEASE YOU SHOULD REVIEW THESE DOCUMENTS CAREFULLY
      AND
      CONSULT WITH YOUR ATTORNEY.

    

    You
      may
      revoke this General Release within seven (7) days after you sign it and it
      shall
      not become effective or enforceable until that revocation period has expired.
      If
      you do not accept the severance package and sign and return this General
      Release, or if you exercise your right to revoke the General Release after
      signing it, you will not be eligible for the special, individualized severance
      package. Any revocation must be in writing and must be received by Orion
      Ethanol, LLC, Attention: _______________, 307 S. Main, Pratt, Kansas 67124,
      within the seven-day period following your execution of this General
      Release.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    GENERAL
      RELEASE

    

    In
      consideration of the special, individualized severance package offered to me
      by
      Orion Ethanol, LLC and the separation benefits I will receive as reflected
      in
      the Employment Agreement between me and Orion Ethanol, LLC dated August 15,
      2006
      (the “Agreement”), I hereby release and discharge Orion Ethanol, LLC and its
      predecessors, successors, affiliates, parent, subsidiaries and partners and
      each
      of those entities’ employees, officers, directors and agents (hereafter
      collectively referred to as the “Company”) from all claims, liabilities,
      demands, and causes of action, known or unknown, fixed or contingent, which
      I
      may have or claim to have against the Company either as a result of my past
      employment with the Company and/or the severance of that relationship and/or
      otherwise, and hereby waive any and all rights I may have with respect to and
      promise not to file a lawsuit to assert any such claims.

    

    This
      General Release includes, but is not limited to, claims arising under Title
      VII
      of the Civil Rights Act of 1964, the Civil Rights Act of 1866, the Pregnancy
      Discrimination Act of 1978, the Equal Pay Act, the Civil Rights Act of 1991,
      the
      Age Discrimination in Employment Act, the Rehabilitation Act of 1973, the
      Americans With Disabilities Act, the Employee Retirement Income Security Act
      or
      1974 and the Veterans Reemployment Rights Act (all as amended from time to
      time). This General Release also includes, but is not limited to, any rights
      I
      may have under the Older Workers Benefit Protection Act of 1990, the Worker
      Adjustment and Retraining Act of 1988, the Fair Labor Standards Act, the Family
      and Medical Leave Act, the Occupational Health and Safety Act and any other
      federal, state and/or municipal statutes, orders or regulations pertaining
      to
      labor, employment and/or employee benefits. This General Release also applies
      to
      any claims or rights I may have growing out of any legal or equitable
      restrictions on the Company’s rights not to continue an employment relationship
      with its employees, including any express or implied employment contracts,
      and
      to any claims I may have against the Company for fraudulent inducement or
      misrepresentation, defamation, wrongful termination or other retaliation claims
      in connection with workers’ compensation or alleged “whistleblower” status or on
      any other basis whatsoever.

    

    It
      is
      specifically agreed, however, that this General Release does not have any effect
      on any rights or claims I may have against the Company which arise after the
      date I execute this General Release or on any vested rights I may have under
      any
      of the Company’s qualified or non-qualified benefit plans or arrangements as of
      or after my last day of employment with the Company, or on any of the Company’s
      obligations under the Agreement or as otherwise required under the Consolidated
      Omnibus Budget and Reconciliation Act of 1985 (COBRA).

    

    I
      have
      carefully reviewed and fully understand all the provisions of the Agreement
      and
      General Release, including the foregoing Notice. I have not relied on any
      representation or statement, oral or written, by the Company or any of its
      representatives, which is not set forth in those documents.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    The
      Agreement and this General Release, including the foregoing Notice, set forth
      the entire agreement between me and the Company with respect to this subject.
      I
      understand that my receipt and retention of the separation benefits covered
      by
      the Agreement are contingent not only on my execution of this General Release,
      but also on my continued compliance with my other obligations under the
      Agreement. I acknowledge that the Company gave me twenty-one (21) days to
      consider whether I wish to accept or reject the separation benefits I am
      eligible to receive under the Agreement in exchange for this General Release.
      I
      also acknowledge that the Company advised me to seek independent legal advice
      as
      to these matters, if I chose to do so. I hereby represent and state that I
      have
      taken such actions and obtained such information and independent legal or other
      advice, if any, that I believed were necessary for me to fully understand the
      effects and consequences of the Agreement and General Release prior to signing
      those documents.

    

    Dated
      this ___ day of __________, ____.

    

    

    
      	 	 
	 	
              Patrick
                N. Barker

            

    

     

     

    
      
         

      

      
        2

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