Document:

Unassociated Document

    Exhibit 10.6x1

    
 

    EMPLOYMENT
AGREEMENT

     

    EMPLOYMENT AGREEMENT (this
"Agreement"),
dated effective as of January 2, 2009 (the "Effective Date"), by
and between Universal Bioenergy Inc., a corporation organized and
existing under the laws of the Nevada whose principal office is located at 128
Biodiesel Drive, Nettleton, MS 38858 (the "Company"), and James
Michael Ator, an individual residing at 32 Karas Trail, Palm Coast, FL 32164
(the "Executive").

     

    WITNESSETH:

     

    WHEREAS, the Company wishes to
employ the Executive upon the terms and subject to the conditions set forth
herein, and the Executive desires to enter into this Agreement and accept such
employment, upon such terms and conditions;

     

    NOW, THEREFORE, in
consideration of the mutual covenants and promises contained herein, the parties
hereto, each intending to be legally bound hereby, agree as
follows:

     

    1.           Employment. The
Executive shall serve as the Company's Chief Financial Officer, Corporate
Treasurer, and member of the Board of Directors for the Company (the “Board”). The
Executive shall perform the usual and customary functions of a chief financial
officer and corporate treasurer in such capacity shall render such services as
are usual and customary with and incident to such positions, and other duties as
a Director of the Company may from time to time direct provided, however, that
such services are not materially inconsistent with the duties described
above.

     

    2.           Performance. During
the Employment Term, the Executive shall perform and discharge the duties that
may be assigned to him by the Board of Directors of the Company from time to
time in accordance with this Agreement, and the Executive shall devote his best
talents, efforts and abilities to the performance of his duties hereunder. The
Company will not preclude the Executive from exercising reasonable execution and
devotion of time to the Executive's personal and family investments as long as
those efforts do not unduly affect the performance of the Executive's duties to
the Company or said investment activities are not in direct competition with the
Company's field of interest as defined under Section 7(b) or otherwise in breach
of this Agreement.

     

    3.           Employment Term.
Unless earlier terminated pursuant to Section 5, the employment term shall
begin on January 2, 2009 (the "Effective Date"), and
shall continue for a period of one (1) year from such date (the "Initial Term");
provided that such term shall be automatically extended for additional periods
of one (1) year commencing on January 1, 2010 and each January 1st, thereafter
(such period the "Additional Term")
unless either party shall have given notice to the other party that such party
does not desire to extend the term of this Agreement. Any such notice must
comply with Section 10 and be given at least forty five (45) days prior to the
end of the Initial Term or the Additional Terms, as applicable (the Initial Term
and the Additional Term or Terms, if applicable, shall be known collectively as
the "Employment
Term").  Notwithstanding anything in this Agreement to the
contrary, the Employment Term shall end on the Termination Date as defined in
Section 5(g).

     

    4.           Compensation. As
compensation for services hereunder and in consideration of the Executive’s
other agreements hereunder, during the Employment Term, the Company shall pay
the Executive:

     

    (a)           
Base
Salary.  A base salary, payable in accordance with the
customary payroll practices of the Company, subject to withholding and other
applicable taxes, at an annual rate of Sixty Thousand Dollars ($60,000) (the
"Base Salary")
to be payable by check, stock, or combination thereof with stock being issuable
quarterly.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b)           Signing Bonus. A
signing bonus of Restricted Stock equal to One Hundred Thousand Dollars
($100,000) to be calculated on the valuation of the Company’s common shares on
the Effective Date. Notwithstanding anything contained herein to the contrary,
the Restricted Stock granted herein shall be Restricted and vest on, and be
delivered to you promptly following, January 2, 2010 (the "Vesting Date");
provided that you have remained continuously employed by the Company until the
Vesting Date. In the event the Agreement is terminated prior to the Vesting Date
however, the Company shall grant the Executive a portion of the Restricted Stock
to be calculated on a pro-rated basis.

     

    For
purposes of this Agreement, Restricted Stock shall mean, that the shares of the
Company, and the Executive’s interest therein, may not be sold, assigned,
transferred, pledged, hypothecated or otherwise disposed of, except by will or
the laws of descent and distribution, prior to the lapse of the applicable one
(1) year restrictions as set forth in the legend affixed to the Restricted Stock
certificates.

     

    (c)           Performance
Bonus. Executive will be
eligible to receive a quarterly performance bonus (the "Performance Bonus"),
to be determined by the Board of Directors and applicable Compensation
Committee, if one exists. The Company agrees to pay Executive any
Performance Bonus within thirty (30) days of the end of the Company’s fiscal
quarter in which such Performance Bonus was earned.

     

    (d)           Non-Cash
Consideration. For purposes of computing any fees payable to Executive
hereunder, non-cash consideration shall be valued as follows: (i) publicly
traded securities shall be valued at the average of their closing prices (as
reported in the Wall Street Journal) for the five trading days prior to the
closing of the Transaction and (ii) any other non-cash consideration shall be
valued at the fair market value thereof as determined in good faith by the
Company.

     

    (e)           Termination.  The
employment hereunder of the Executive may be terminated prior to the expiration
of the Employment Term in the manner described in this Section 5.

     

    (f)           Termination by the Company
for Good Cause.  The Company shall have the right to terminate
the employment of the Executive for Good Cause (as such term is defined in
Section 5(h)(ii)) by written notice to the Executive specifying the particulars
of the circumstances forming the basis for such Good Cause.

     

    (g)           Termination upon
Death.  The employment of the Executive hereunder shall
terminate immediately upon his death.

     

    (h)           The Company's Options upon
Disability.  If the Executive becomes physically or mentally
disabled during the Term so that he is unable to perform the services
required of him pursuant to this Agreement for a period of 180 successive days
or a cumulative 180 days in any twelve-month period (the "Disability Period"),
the Company shall have the option, in its discretion, by giving written notice
thereof, either to (A) terminate the Executive's employment hereunder pursuant
to Section 5(a); or (B) continue the employment of the Executive hereunder upon
all the terms and conditions set forth herein.  During the Disability
Period the Executive shall continue to receive the compensation and other
benefits provided herein net of any payments received under any disability
policy or program of which the Executive is a beneficiary or
recipient.

     

    (i)           Voluntary Resignation by the
Executive.  The Executive shall have the right to voluntarily
resign his employment hereunder for other than Good Reason (as such term is
defined in Section 5(h)(iv)) by written notice to the Company.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (j)           Termination by the Company
Without Good Cause.  The Company shall have the right to
terminate the Executive's employment hereunder without Good Cause by written
notice to the Executive, but the obligations placed upon the Company in Section
6 will apply.

     

    (k)           Resignation by the Executive
for Good Reason.  The Executive shall have the right to
terminate his employment for Good Reason by written notice to the Company
specifying the particulars of the circumstances forming the basis for such Good
Reason.

     

    (l)           Termination
Date.  The "Termination Date" is the date as of which the
Executive's employment with the Company terminates in accordance with this
Agreement.  Any notice of termination given pursuant to the provisions
of this Agreement shall specify the Termination Date.

     

    (m)           Certain
Definitions.  For purposes of this Agreement, the following
terms shall have the following meanings:

     

    (i)           "Person"
means any individual, corporation, partnership, association, joint-stock
company, trust, unincorporated organization, joint venture, court or government
(or political subdivision or agency thereof).

     

    (ii)           "Good
Cause" shall exist if the Executive: (i) willfully or repeatedly fails in any
material respect to satisfactorily perform his duties and obligations under this
Agreement, including without limitation the failure to comply substantially with
the reasonable instructions of the Board of Directors, which failure is not
cured within (fifteen (15) business days after written notice of such failure is
delivered by the Company; (ii) has been convicted of a crime or has entered a
plea of guilty or nolo contender with respect thereto; (iii) has committed any
act  in connection with his employment with the Company which involves
fraud, gross negligence, misappropriation of funds, dishonesty, disloyalty,
breach of fiduciary duty or other misconduct injurious to the Company or any
other member of the Company Group; (iv) has engaged in any conduct which in the
reasonable determination of the Board is likely to adversely affect in any
material respect the reputation or public image of the Company or any other
member of the Company Group; or (v) breaches in any material respect this
Agreement which breach is not cured within fifteen (15) business days after
written notice of such failure is delivered by the Company; provided, however,
that during any twelve (12) month period, the Company shall only be required to
give notice three (3) times in the aggregate for any breaches of clauses (i) or
(v) above.

     

    (iii)           "Company
Group" shall mean the Company and any parent companies and subsidiaries and
other entities under common control.

     

    (iv)           "Good
Reason" means the occurrence of any of the following events:

     

    (A)           the
assignment to the Executive of any duties inconsistent in any material respect
with the Executive's then position (including status, offices, titles and
reporting relationships), authority, duties or responsibilities, or any other
action or actions by the Company which when taken as a whole results in a
significant diminution in the Executive's position, authority, duties or
responsibilities, excluding for this purpose any isolated, immaterial and
inadvertent action not taken in bad faith and which is remedied by the Company
promptly after receipt of notice thereof given by the
Executive;  or

     

    (B)           a
material breach by the Company of one or more provisions of this Agreement,
provided that such Good Reason shall not exist unless the Executive shall first
have provided the Company with written notice specifying in reasonable detail
the factors constituting such material breach and such material breach shall not
have been cured by the Company within thirty (30) days after such notice or such
longer period as may reasonably be necessary to accomplish the cure but in any
event no longer than ninety (90) days;

     

    5.           Obligations of Company on
Termination.  Notwithstanding anything in this Agreement to the
contrary, the Company's obligations on termination of the Executive's employment
shall be as described in this Section 6.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (a)           Obligations of the Company
in the Case of Termination Without Good Cause or Resignation by the Executive
for Good Reason.  In the event that prior to the expiration of
the Employment Term, the Company terminates the Executive's employment, pursuant
to Section 5(e), without Good Cause, or the Executive resigns, pursuant to
Section 5(f), for Good Reason, the Company shall provide the Executive with the
following:

     

    (i)           Amount of Severance
Payment.  Except as provided in Section 6(b) below, within
thirty (30) days following the Termination Date, the Company shall pay the
Executive a single lump sum cash payment (the "Severance Payment")
equal to the sum of the following:

     

    (A)           the
equivalent of six (6) months Base Salary in the event the Termination Date is
after the first anniversary of the Effective Date (the "First Anniversary")
to increase by an amount equal to three months Base Salary for each year the
Executive is employed by the Company after the First Anniversary, up to an
amount not to exceed two (2) years Base Salary; and

     

    (B)           any
Base Salary, vacation and unreimbursed expenses accrued but unpaid as of the
Termination Date and any Performance Bonus applicable to the present fiscal
quarter.

     

    (b)           Obligations of the Company
in case of Termination for Death, Disability, Voluntary Resignation or Good
Cause.  Upon termination of the Executive's employment upon
death (pursuant to Section 5(b)), or for Good Cause (pursuant to Section 5(a)),
the Company’s obligations to the Executive shall be limited to the payment of
any Base Salary, Performance Bonus for present fiscal quarter, and unreimbursed
expenses accrued but unpaid as of the date of such termination.

     

    6.           Covenants of the
Executive

     

    (a)           During
the Employment Term and for a period of two (2) years thereafter the Executive
shall not, directly or indirectly, employ, solicit for employment or otherwise
contract for the services of any employee of the Company or any of its
affiliates at the time of this Agreement or who shall subsequently become an
employee of the Company or any such affiliate; and

     

    (b)           
During the Employment Term and for a period of one (1) year thereafter the
Executive will not at any time engage in or participate as an executive officer,
employee, director, agent, consultant representative, stockholder, or partner,
or have any financial interest, in any business which "competes" with the
Company or successor to the business of the Company. For the purposes hereof, a
"competing" business shall mean any private or public entity in the biodiesel
field. Ownership by the Executive of publicly traded stock of any corporation
conducting any such business shall not be deemed a violation of the preceding
two sentences provided the Executive does not own more than five percent
(5% of the stock of any such corporation.

     

    (c)           Executive
agrees that all records, in whatever medium (including written works),
documents, papers, notebooks, drawings, designs, technical information, source
code, object code, processes, methods or other copyrightable or otherwise
protected works Executive conceives, creates, makes, invents, or discovers that
relate to or result from any work he performs or performed for the Company or
that arise from the use or assistance of the Company’s facilities, materials,
personnel, or Confidential Information in the course of his employment (whether
or not during usual working hours), whether conceived, created, discovered,
made, or invented individually or jointly with others, will be and remain the
absolute property of the Company, as will all the worldwide patent, copyright,
trade secret, or other intellectual property rights in all such
works.  Executive irrevocably and unconditionally waives all rights,
wherever in the world enforceable, that vest in him (whether before, on, or
after the date of this Agreement) in connection with his authorship of any such
copyrightable works in the course of his employment with the
Company.  Without limitation, Executive hereby waives the right to be
identified as the author of any such works and the right not to have any such
works subjected to derogatory treatment.  Executive recognizes that
any such works are “works made for hire” of which the Company is the
author.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (d)           All
files, records, correspondence, memoranda, notes or other documents (including,
without limitation, those in computer-readable form), real property or
intellectual property relating or belonging to the Company or its affiliates,
whether prepared by the Executive or otherwise coming into his possession in the
course of the performance of his services under this Agreement, shall be the
exclusive property of Company and shall be delivered to Company and not retained
by the Executive (including, without limitations, any copies thereof) upon
termination of this Agreement for any reason whatsoever.

     

    (e)           Executive
acknowledges that his employment with the Company under this Agreement, will
give him access to Confidential Information (as defined
below).  Executive acknowledges and agrees that using, disclosing, or
publishing any Confidential Information in an unauthorized or improper manner
could cause the Company or its members to incur substantial loss and damages
that could not be readily calculated and for which no remedy at law would be
adequate.  Accordingly, Executive agrees with the Company that he will
not at any time, except in performing his employment duties to the Company under
this Agreement (or with the Board of Directors of the Company’s, prior written
consent), directly or indirectly, use, disclose, or publish, or permit others
not so authorized to use, disclose, or publish any Confidential Information that
you may learn or become aware of, or may have learned or become aware of,
because of his continuing employment, ownership, or association with the
Company, or use any such information in a manner detrimental to the interests of
the Company or any of  its shareholders. For the purposes of this
Agreement, "Confidential Information" includes, without limitation, confidential
or proprietary information that has not previously been disclosed to the public
or to the trade with respect to the Company’s or any of its affiliates present
or future business, including, without limitation, its operations, services,
products, research, clients, potential investors, inventions, discoveries,
drawings, designs, plans, processes, quantitative methodologies, models,
technical information, facilities, methods, trade secrets, copyrights, software,
source code, systems, patents, procedures, manuals, specifications, any other
intellectual property, confidential reports, customer lists, financial
information (including the revenues, costs, or profits associated with such
party’s products or services), business plans,  projections,
prospects, opportunities or strategies, acquisitions or mergers, advertising or
promotions, personnel matters and legal matters, but excludes any information
already properly in the public domain.  "Confidential Information"
also includes confidential and proprietary information and trade secrets that
third parties entrust to the Company in confidence.

     

    (f)           The
Executive acknowledges that a breach of his covenants contained in this Section
7 may cause irreparable damage to the Company and its affiliates, the exact
amount of which will be difficult to ascertain, and that the remedies at law for
any such breach will be inadequate.  Accordingly, the Executive agrees
that if she breaches any of the covenants contained in this Section 7, in
addition to any other remedy which may be available at law or in equity, the
Company shall be entitled to specific performance and injunctive
relief.

     

    (g)           The
Company and the Executive further acknowledge that the time, scope, geographic
area and other provisions of this Section 7 have been specifically negotiated by
sophisticated commercial parties and agree that all such provisions are
reasonable under the circumstances of the activities contemplated by this
Agreement.  In the event that the agreements in this Section 7 shall
be determined by any court of competent jurisdiction to be unenforceable by
reason of their extending for too great a period of time or over too great a
geographical area or by reason of their being too extensive in any other
respect, they shall be interpreted to extend only over the maximum period of
time for which they may be enforceable and/or over the maximum geographical area
as to which they may be enforceable and/or to the maximum extent in all other
respects as to which they may be enforceable, all as determined by such court in
such action.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (h)           The
Executive agrees to cooperate with the Company, during the Employment Term and
thereafter (including following the Executive's termination of employment for
any reason), by making himself reasonably available to testify on behalf of the
Company or any of its affiliates in any action, suit, or proceeding, whether
civil, criminal, administrative, or investigative, and to assist the Company, or
any affiliate, in any such action, suit, or proceeding, by providing information
and meeting and consulting with the Board or its representatives or counsel, or
representatives or counsel to the Company, or any affiliate as reasonably
requested; provided, however that the same does not materially interfere with
his then current professional activities and is not contrary to the best
interests of the Executive. The Company agrees to reimburse the Executive, on an
after-tax basis, for all expenses actually incurred in connection with his
provision of testimony or assistance.

     

    (i)           The
parties agree that, during the Employment Term and thereafter (including
following the Executive's termination of employment for any reason) that they
will not make statements or representations, or otherwise communicate, directly
or indirectly, in writing, orally, or otherwise, or take any action which may,
directly or indirectly, disparage the other party or any of its affiliates or
their respective officers, directors, employees, advisors, businesses or
reputations.  Notwithstanding the foregoing, nothing in this Agreement
shall preclude either party from making truthful statements or disclosures that
are required by applicable law, regulation or legal process.

     

    7.           Withholding.  The
Company may withhold from the Executive's compensation all applicable amounts
required by law.

     

    8.           Arbitration.  The
parties agree that any dispute, claim, or controversy based on common law,
equity, or any federal, state, or local statute, ordinance, or regulation (other
than workers’ compensation claims) arising out of or relating in any way to the
Executive’s employment, the terms, benefits, and conditions of employment, or
concerning this Agreement or its termination and any resulting termination of
employment, including whether such a dispute is arbitrable, shall be settled by
arbitration.  This agreement to arbitrate includes but is not limited
to all claims for any form of illegal discrimination, improper or unfair
treatment or dismissal, and all tort claims.  The Executive will still
have a right to file a discrimination charge with a federal or state agency, but
the final resolution of any discrimination claim will be submitted to
arbitration instead of a court or jury.  The arbitration proceeding
will be conducted under the employment dispute resolution arbitration rules of
the American Arbitration Association in effect at the time a demand for
arbitration under the rules is made.  The decision of the
arbitrator(s), including determination of the amount of any damages suffered,
will be exclusive, final, and binding on all parties, their heirs, executors,
administrators, successors and assigns.  Each party will bear its own
expenses in the arbitration for arbitrators’ fees and attorneys’ fees, for its
witnesses, and for other expenses of presenting its case.  Other
arbitration costs, including administrative fees and fees for records or
transcripts, will be borne equally by the parties.

     

    9.           Notices.  Any
notices required or permitted hereunder shall be in writing and shall be deemed
to have been given when personally delivered or when mailed, certified or
registered mail, postage prepaid, to the following addresses:

     

    If to the
Executive:

     

    James
Michael Ator

    32 Karas
Trail

    Palm
Coast, FL 32164

     

    If to the
Company:

     

    Universal
Bioenergy, Inc.

    128
Biodiesel Drive,

    Nettleton,
MS 38858

    Attention:
CEO

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    10.           General:

     

    (a)           Construction and
Severability.  If any provision of this Agreement shall be held
invalid, illegal or unenforceable in any jurisdiction, the validity, legality
and enforceability of the remaining provisions contained herein shall not in any
way be affected or impaired, and the parties undertake to implement all efforts
which are necessary, desirable and sufficient to amend, supplement or substitute
all and any such invalid, illegal or unenforceable provisions with enforceable
and valid provisions which would produce as nearly as may be possible the result
previously intended by the parties without renegotiation of any material terms
and conditions stipulated herein.

     

    (b)           Performance;
Assignability.  The Executive represents and warrants to the
Company that the Executive has no contracts or agreements of any nature that the
Executive has entered into with any other person, firm or corporation that
contain any restraints on the Executive’s ability to perform his obligations
under this Agreement. The Executive may not
assign his interest in or delegate his duties under this
Agreement.  This Agreement is for the employment of the Executive,
personally, and the services to be rendered by him under this Agreement must be
rendered by him and no other person.  This Agreement shall be binding
upon and inure to the benefit of the Company and its successors and
assigns.  Notwithstanding anything else in this Agreement to the
contrary, the Company may assign this Agreement to and all rights hereunder
shall inure to the benefit of any person, firm or corporation resulting from the
reorganization of the Company or succeeding to the business or assets of the
Company by purchase, merger or consolidation.  The Company will
require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company to assume expressly 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.  The Company's failure to
obtain such an assumption and agreement prior to the effective date of a
succession will be a breach of this Agreement and will entitle the Executive to
compensation from the Company in the same amount and on the same terms as if the
Executive were to terminate his employment for Good Reason, except that, for
purposes of implementing the foregoing, the date on which any such succession
becomes effective will be deemed the Termination Date.

     

    (c)           Compliance with Rules and
Policies.  The Executive shall perform all services in
accordance with the policies, procedures and rules established by the Company,
including, but not limited to, the By-Laws of the Company.  In
addition, the Executive shall comply with all laws, rules and regulations that
are generally applicable to the Company, its affiliates and their employees,
directors and officers.

     

    (d)           Withholding.  The
Company shall withhold from all amounts due hereunder any withholding taxes
payable to federal, state, local or foreign taxing authorities.

     

    (e)           Entire Agreement,
Modification.  This Agreement constitutes the entire agreement
of the parties hereto with respect to the subject matter hereof, supersedes all
prior agreements and undertakings, both written and oral, and may not be
modified or amended in any way except in writing by the parties
hereto.

     

    (f)           Duration.  Notwithstanding
the Employment Term hereunder, this Agreement shall continue for so long as any
obligations remain under this Agreement.

     

    (g)           Survival.  The
covenants set forth in Section 7 of this Agreement shall survive and shall
continue to be binding upon the Executive notwithstanding the termination of
this Agreement for any reason whatsoever.  It is expressly agreed that
the remedy at law for the breach or threatened breach of any such covenant is
inadequate and that the Company, in addition to any other remedies that may be
available to it, in law or in equity, shall be entitled to injunctive relief to
prevent the breach or any threatened breach thereof without bond or other
security or a showing that monetary damages will not provide an adequate
remedy.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (h)           Waiver.  No
waiver by either party hereto of any of the requirements imposed by this
Agreement on, or any breach of any condition or provision of this Agreement to
be performed by, the other party shall be deemed a waiver of a similar or
dissimilar requirement, provision or condition of this Agreement at the same or
any prior or subsequent time.  Any such waiver shall be express and in
writing, and there shall be no waiver by conduct.

     

    (i)           Counterparts.  This
Agreement may be executed in two or more counterparts, all of which taken
together shall constitute one instrument.

     

    IN WITNESS WHEREOF, the
parties hereto, intending to be legally bound, have hereunto executed this
Agreement as of the day and year first written above.

    

    
      
        
          
            
              
                	
                        Date:

                      	
                        24
      February 2009

                      	 
      	
                        UNIVERSAL
      BIOENERGY, INC.

                      
	 
      	 
      
	 
      	
                        /s/
      Richard D. Craven

                      
	 
      	
                        Name:
      Richard D. Craven

                      
	 
      	
                        Title:
      President

                      
	 
      	 
      
	
                        Date:

                      	
                        25
      February 2009

                      	 
      	
                        James
      Michael Ator

                      
	 
      	 
      
	 
      	
                        /s/
      James Michael
AtorUnassociated Document

    Exhibit 10.6x2

    
 

    EMPLOYMENT
AGREEMENT

    

    This Employment Agreement
("Agreement") is made and entered into effective as of the 6TH   day
of  March, 2009, (the Effective date”) by and between VINCE M. GUEST hereinafter
referred to as ("Employee") and UNIVERSAL BIOENERGY INC.,
a Nevada
corporation having offices at 128 Biodiesel Drive, Nettleton, Mississippi 38858
hereinafter referred to as the (“Employer”).

    

    WHEREAS,
Employer and Employee desire to set forth the terms and conditions of Employee's
employment as Senior
Vice President of
Marketing of Employer in an employment agreement, and Employee is willing
to perform such services for Employer under the terms and conditions set forth
below; and

    

    WHEREAS,
Employer wishes to retain the services of Employee and encourage him to remain
employed with Employer and Employer wishes for Employee to remain with
Employer;

     

    

    NOW,
THEREFORE, in consideration of the above recitals and the mutual covenants,
understandings and agreements contained herein and for other good and valuable
information, the receipt and adequacy of which is hereby acknowledged, Employee
and Employer agree as follows:

    

    Section
1:     Employment. Employer agrees
to employ Employee and Employee agrees to accept employment with Employer,
subject to the terms and conditions of this Agreement. Employer’s employment
under this Agreement shall be effective as of the “Effective Date” of this
Agreement and shall continue for a term ending on March 6, 2010 (the
“Term”).

    

    Section
2:     Duties and Responsibilities.

    

                (a)
Position: Employee shall
devote his employment time, efforts, skills and attention exclusively to his
employment as Senior
Vice President of Investor
Relations; provided, however, that to the extent the following activities
do not materially interfere or conflict with his duties and responsibilities
hereunder, Employee may (i) serve as a member of the boards of directors of
other corporations and/or companies (ii) engage in charitable, civic,
educational and religious affairs.

    

                (b)  Board of Directors
Seat.   Within Three Days (3) after the commencement of
the Agreement, the Employer shall elect to, and grant to Employee, One (1) Seat
on the Employer’s Board of Directors to represent the interests of the
shareholders. The  term for the seat on the Board shall be for
a  period of  One  (1) Year.

    

    Section
3:     Compensation, Benefits and Related
Matters.

    

    (a)   Annual Base Salary. Employer
shall pay to Employee a base salary at an annual rate of $156,000
("Base Salary") per year during the first year, and the same amount or more
during each subsequent year. Such Base Salary to be payable in accordance with
Employer’s customary payroll practices as in effect from time to
time  and be payable in equal semi-monthly installments throughout the
year. The annual Base Salary will be reviewed at least annually and / or more
often from time to time as determined by the Board of Directors, (or the
Compensation Committee of such Board), for merit or other increases and any
increase in Employee's annual Base Salary rate shall thereafter constitute "Base
Salary" for purposes of this Agreement. This review for merit or other increases
shall occur three months prior to the end of each year for the express purpose
of considering additional increments to Employee’s Base Salary. In addition to
the merit or other increases, a minimum eight (8%) annual cost-of-living
allowance increase to the annual Base Salary will be provided to
Employee.

    

               (b)
Signing Bonus. Employee
shall receive a Twenty Five Thousand Dollars ($25,000) non-refundable signing
bonus at the start of Employee’s employment. The signing bonus will be paid from
the Employer’s Investor Relations “department” budget, pending the raising of
capital. Employer may also elect to pay the Signing Bonus from the sale of
Employer’s free and tradable outstanding shares of common stock in accordance
with applicable state and federal securities law, or other means.

    

                (c)   Cash Bonus - Incentive
Compensation. In addition to the Base Salary provided for in Section 3(a)
above, Employee shall be entitled depending upon mutually agreeable
performance targets, a monthly bonus for each month in which Employer meets or
exceeds performance targets. Bonus targets for each month or fiscal year shall
be set by the Board of Directors of Employer.  Such bonuses shall be
payable quarterly.  The Bonus shall be paid from Employer’s Investor
Relations department, (“the Department”), which is exclusively devoted for the
purpose of Investor Relations, Corporate Finance and related Marketing. The
Employer has allocated to the “department” as its budget, Thirty Five Percent
(35%) of the gross funds or revenues obtained by the Employer through investment
capital. The bonus shall be Fifty Percent (50%) of the “net operating budget” of
the “department” for efficiently and profitably managing the “Department”. “Net
operating budget” shall be calculated as the gross “Budget” minus all direct
“Department”  expenditures, (those exclusively  generated in
connection with the investor relations department), for investor relations
overhead,  marketing, legal, accounting, operations, department
employees payroll.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (d)   Equity Incentive – Stock
Grants. Employer shall grant and issue  to Employee (at no
cost), an equity ownership position of Ten Percent (10%) of Employer’s
outstanding shares of company stock, and the Agreement for the grant of
the  stock  shall include anti-dilution provisions for stock
splits. The stock shares granted to the Employee shall be non-refundable and
irrevocable, and transferred to the Employee’s tax deferred retirement account.
The vesting of the equity / stock certificates shall be as directed by the
Employee. The share certificates shall be issued within Three (3) Days of the
execution of this Agreement.

    

                (e)  Debt
Financing.  Employee shall receive Five Percent (5%) of the net
amount actually received by Employer of all debt financing obtained by Employee
on behalf of Employer.

    

               (f)   Retirement and Benefit Plans.
During his employment, Employee shall be entitled to participate in and Employer
agrees to provide all retirement and benefit plans at no cost to Employee
including: retirement plans with immediate and full (100%) vesting;
Comprehensive health and major medical health insurance for Employee and his
family; Comprehensive dental insurance for Employee and his family;
Comprehensive vision insurance for Employee and his family; Comprehensive life
insurance; Travel accident insurance; Disability insurance; Liability insurance
and other similar employee welfare benefit arrangements including equity-based
incentive plans as described in 3(c) above available as an executive Employee of
Employer. There shall be no payroll deduction as a condition of coverage in the
health and major medical plans, dental plans and vision plans. Any fees,
premiums, or pay-outs will come solely from the Investor Relations Department
budget subject to availability of funds.

    

    (g)   Paid Time Off. Employee shall
be entitled to paid time off in addition to holiday and sick time, of not less
than eight (8) weeks of paid vacation per year and any unused portion will be
carry-forward to subsequent years but not to exceed eight (8) weeks in any given
year.

    

    (h)   Indemnification
Liability/Insurance. Employee shall be entitled to indemnification and
defense by Employer to the fullest extent permitted by applicable law and the
charter and bylaws of Employer. Employer shall indemnify, defend, and hold
Employee harmless from and against any liability, damages, costs, or expenses
(including attorney’s fees) in connection with any claim, cause of action,
investigation, litigation, or proceeding involving him by reason of his having
been an officer, director, employee, or agent of Employer. Employer also agrees
to maintain adequate directors and officer’s liability insurance for the benefit
of Employee and Employee shall be covered by such insurance. Any fees, premiums,
or pay-outs will come solely from the Investor Relations Department budget
subject to availability of funds.

    

    (i)   Taxes. All compensation
payable to Employee shall be subject to appropriate withholding for all
applicable federal, state and local income taxes, occupational taxes, Social
Security and similar mandatory withholdings.

    

    (j) The Employer has allocated to the
Investor Relations Department as its budget, Thirty Five Percent (35%) of the
gross funds raised by department Employee’s for the Employer through investment
capital. All of the above compensation, and  expenditures, (those
exclusively generated in connection with the investor relations department), for
investor relations overhead, marketing, legal, accounting, operations, and
employees payroll, (with the exception of 3(b), 3(d), 3(e) and 3(f) above),
shall be paid and deducted from the funds allocated to the Investors Relations
department budget.

    

    Section
4:    Travel, Housing and Relocation. Employer will
reimburse Employee for all reasonable expenses incurred by Employee if Employee
is required by Employer to   relocate his principal residence,
family and goods to another city or state on behalf of the Employer. Employer
will reimburse Employee’s expenses to temporarily relocate him while Employee is
in the process of selling his primary place of residence. Employer will provide
temporary housing expenses for Employee and his family until his primary place
of residence is sold.  Employer will reimburse Employee's expenses to
move his primary residence provided that reimbursable expenses will be limited
to house hunting trips, actual moving expenses, temporary housing expenses and
any real estate expenses that Employee incurs in connection with the purchase or
sale of any real property. Employer will provide all up-front expenses for a
moving company to move Employee and his family to include but not limited to,
all household and related items, automobiles, appliances, etc. Until such
relocation of his primary residence is completed, Employee shall be entitled to
his Base Salary, benefits and reimbursement for travel and housing expenses
incurred by him in connection with his performance of services pursuant to this
Agreement. If after Employee’s termination of employment, Employee gives
Employer written notice that he desires to relocate within the continental
United States, Employer will reimburse Employee for relocation expenses in
connection with such relocation.  Any reimbursement will come solely
from Investor Relations Department budget subject to availability of funds
except for reimbursement for extraneous duties.

    

    Section
5:     Termination. Employer may, at any time in
its sole discretion, terminate Employee of Employer; provided, however, that
Employer shall provide Employee with at least sixty (60) business days prior
written notice of such termination and shall make the payments associated with
such termination in accordance with Section 6.

    

    (a)   Termination by Employer for "Good
Cause." Employer may at any time, by written notice to Employee at least
Sixty (60) business days prior to the date of termination specified in such
notice and specifying the acts or omissions believed to constitute Good Cause
(as defined below), terminate Employee as an officer and employee for Good
Cause. Employer may relieve Employee of his duties and responsibilities pending
a final determination of whether Good Cause exists, and such action shall not
constitute Good Reason (as defined below) for purposes of this Agreement.
Payment to Employee upon a termination for Good Cause is set forth in Section
6(a). "Good Cause" for termination shall mean the following:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (1)   Felony
criminal conviction under the laws of the United States or any state or other
political subdivision thereof which, in the good faith determination of all the
Board of Directors of Employer, renders Employee unsuitable as an officer or
employee of Employer, and

    

    (2)   Employee's
continued failure to substantially perform all duties reasonably requested by
the Board of Directors of Employer and commensurate with Employee’s position
with Employer (other than any such failure resulting from his incapacity due to
his physical or mental condition) after a written demand for substantial
performance is delivered to him by the Board of Directors of Employer, which
demand specifically identifies the manner in which the Board of Directors of
Employer believes that he has not substantially performed all of his duties, and
which performance is not substantially corrected by him within Sixty (60)
business days of receipt of such demand; and

    

    (b)   Termination by Employer without Good
Cause. Employer may at any time, by written notice to Employee at least
Sixty (60) business days prior to date of termination specified in such notice,
terminate Employee as an officer or employee with Employer. If such termination
is made by Employer other than by reason of Employee's death, Disability (as
defined in Section 5(e)) and Good Cause does not exist, such termination shall
be treated as a termination without Good Cause and Employee shall be entitled to
payment in accordance with Section 6(b).

    

    (c)   Termination by
Employee for Good Reason. Employee may, at any time at his option within
Thirty (30) days following an event or condition that constitutes Good Reason
(as defined below), resign for Good Reason as an officer and employee and from
all other positions with Employer by written notice to Employer at least thirty
(30) days prior to the date of termination specified in such notice. Payment to
Employee upon a termination for Good Reason is set forth in Section
6(b).

    

    (1)   "Good
Reason" shall mean the occurrence of any one of the following events or
conditions:

    

    a.   A
meaningful and detrimental reduction, without Employee’s written consent, in the
nature of his responsibilities or a meaningful and detrimental change in his
reporting responsibilities or titles;

    

    b.   Employee
is not elected, reelected, or otherwise continued in the office of Employer
except for Board positions or any of its subsidiaries which he held immediately
prior to the Change in Control Date, or Employee is removed from Employee’s
position as set forth in Section 2(a) and 2(b) (collectively “Duties and
Responsibilities”) of Employer or any of its subsidiaries;

    

    c.   A
reduction of compensation as set forth in Sections 3(a) - 3(c) (collectively the
"Compensation"), a reduction of the benefits set forth in Sections 3(d) - 3(f)
(collectively, the "Benefits"), or failure by Employer to pay to Employee any
portion of the Compensation or Benefits within Fifteen (15) business days of the
date such compensation or other payments and benefits are due; or

    

    d.   A
change in Employee’s principal work location to a place other than Employee’s
current principal location. Notwithstanding any provision of this Paragraph 5(c)
to the contrary, the occurrence of a "Change in Control" (as defined in Section
6 below) shall not, by itself, constitute Good Reason hereunder.

    

    (d)   Voluntary
Resignation. Employee may, at any time at his option with Thirty (30)
calendar days written notice to Employer, voluntarily resign without Good Reason
as an officer and employee and from all positions with Employer. Payment to
Employee upon his voluntary resignation without Good Reason is set forth in
Section 6(a). Resignation from employment shall automatically constitute
resignation from all positions of any subsidiary or affiliated
corporation.

    

    (e)   Death or
Disability. Employee’s employment under this Agreement shall terminate
automatically as of the date of Employee's death. Employer, at any time by
written notice to Employee at least sixty (60) business days prior to the date
of termination specified in such notice, terminate Employee as an officer and
employee and from all other positions with Employer by reason of his Disability.
"Disability" shall mean any physical or mental condition or illness that
prevents Employee from performing his duties hereunder in any material respect
for a period of 360 substantially consecutive calendar days, as determined by a
physician selected by Employer and acceptable to Employee or, if Employee is
incapacitated, reasonably acceptable to the Medical Director or equivalent
senior physician at a hospital of Employee's choice. Payment to Employee upon
his termination by reason of his death or Disability is set forth in Section
6(a).

    

    Section
6:   Payments Upon Termination.

    

    (a)   Payment Upon Termination for Good
Cause, Resignation without Good Reason, Death or Disability. In the event
of termination of his employment pursuant to Sections 5(a), 5(d) or 5(e),
Employee, or his estate where applicable, shall be paid any earned but unpaid
Base Salary through the date of termination or cessation of employed services
and any accrued and unused paid time off through  said date. In
addition, in the case of a termination of employment pursuant to Sections 5(e),
Employee or his estate shall be paid any accrued and unpaid bonus for any prior
fiscal year and a pro rata portion (based on the number of days of employment in
the fiscal year of termination divided by 365) of the bonus, if any, for the
fiscal year in which the termination occurs. Employee shall also receive his
vested benefits in accordance with the terms of Employer's compensation and
benefit plans, and his participation in such plans and all other perquisites
shall cease as of the date of termination, except to the extent Employee may
elect to continue coverage as under any welfare benefit plans as required by
Part 6, Title I of the Employee Retirement Income Security Act of 1974, as
amended.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)   Payment Upon Termination by Employer
without Good Cause or by Employee for Good Reason. In the event of
termination of employment pursuant to Sections 5(b) or 5(c), Employee shall be
paid a lump sum severance payment in an amount equal all of the earned and
unpaid compensation due Employee pursuant to Section 3 (collectively the
“Compensation”) and Fifty Percent (50%) of any and all net funds remaining and
not previously allocated of the “The Budget” for the Investor Relations
Department”. Notwithstanding the foregoing, Employee's right to receive the
severance payment hereunder shall be conditioned upon his execution of a
release, which shall not be inconsistent with the terms of this Agreement. All
payments will be made within Fifteen (15) business days of full execution of a
release.  Employee's participation in any other retirement and benefit
plans and perquisites shall cease as of the date of termination, except Employee
and his eligible dependents (as determined under Employer’s health plan) shall
be entitled to continuing coverage under Employer’s health plans on the same
basis as active employees until the earlier of (i) the first anniversary of the
date of termination or (ii) the date on which Employee or his eligible
dependents become eligible to participate in a plan of a successor employer.
Thereafter, Employee shall be entitled to continue coverage under Employer’s
health plans under COBRA.

    

    (c)   "Change in Control." For
purposes of this Agreement, a "Change in Control" shall be deemed to have
occurred if any of the following events occurs:

    

    (1)   Any
"person" or "group" (within the meaning of Sections 13(d) and 14(d)(2) of the
Securities and Exchange Act of 1934, as amended (the "1934 Act")), other than a
trustee or other fiduciary holding securities under an employee benefit plan of
Employer (an "Acquiring Person"), is or becomes the "beneficial owner" (as
defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of more than
33 1/3% of the then outstanding voting stock of Employer;

    

    (2)   A
merger or consolidation of Employer with any other person or corporation, other
than a merger or consolidation which would result in the voting securities of
Employer outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into voting securities of the
surviving entity) at least 50% plus One (1) share of the combined voting power
of the voting securities of Employer or surviving entity outstanding immediately
after such merger or consolidation;

    

    (3)   A
sale or other disposition by Employer of all or substantially all of Employer's
assets;

    

    (4)   During
any period of two (2) consecutive years, individuals who at the beginning of
such period constitute the Board of Directors and any new director (other than a
director who is a representative or nominee of an Acquiring Person) whose
election by the Board of Directors or nomination for election by Employer's
shareholders was approved by a vote of at least a majority of the directors then
still in office who either were directors at the beginning of the period or
whose election or nomination was previously so approved, no longer constitute a
majority of the Board of Directors; provided, however, in no event shall any
acquisition of securities, a change in the composition of the Board of Directors
or a merger or other consolidation pursuant to a plan of reorganization under
chapter 11 of the Bankruptcy Code with respect to Employer ("Chapter 11 Plan"),
or a liquidation under the Bankruptcy Code constitute a Change in Control. In
addition, notwithstanding Sections 6(c)(1), 6(c)(2), 6(c)(3) and 6(c)(4), a
Change in Control shall not be deemed to have occurred in the event of a sale or
conveyance in which Employer continues as a holding company of an entity or
entities that conduct the business or businesses formerly conducted by Employer,
or any transaction undertaken for the purpose of reincorporating Employer under
the laws of another jurisdiction, if such transaction does not materially affect
the beneficial ownership of Employer’s capital stock. Employee’s continued
employment without objection following a Change in Control shall not, by itself,
constitute consent to or a waiver of rights with respect to any circumstances
constituting Good Reason hereunder.

    

    Section
7:     Additional Payments. Employer shall
promptly reimburse Employee for all travel, ordinary and necessary expenses in
which Employee incurs in performing his duties under this Agreement including,
but not limited to, travel, entertainment, professional dues, licensure,
memberships and subscriptions, and all dues, fees and expenses associated with
memberships in professional, business, community and civic associations,
organizations and societies of which Employee’s participation is in the best
interest of Employer.  This shall be paid from the Investor Relations
Department Budget.

    

    Section  8:   Protection
of Employee’s Interests. All work products
purchased, created, discovered and developed by the Employee shall be deemed
“proprietary information”, are and shall remain the property of the Employee.
“Proprietary Information” includes, but is not limited to, software, sales
leads, phone lists, customer database, any copyrights, or other proprietary
information embodied in or relating to Employee’s work under this Agreement. All
furniture and equipment purchased by the Employee to perform his services under
this Agreement shall be the property of the Employee, (only if purchased with
Employee’s own funds). All of the above shall be considered the “Employees
Property”. At the termination of this Agreement and at Employee’s request, all
of the “Employee’s Property” shall be returned to Employee.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section  9:     Protection
of Employer’s Interests.

    

    (a)   Confidentiality. Employee
agrees that he will not at any time, except in performance of his obligations to
Employer hereunder, directly disclose to any person or organization any secret
or "Confidential Information" that Employee may learn or has learned by reason
of his association with Employer.

    

    (b)   Exclusive Property. Employee
confirms that all Employer’s Confidential Information is and shall remain the
exclusive property of Employer. All business records kept or made by Employee
relating to the business of Employer shall be and remain the property of
Employer. Upon the termination of Employee’s employment for any reason, Employee
shall promptly deliver to Employer records made by Employee concerning the
business affairs of Employer.

    

    (c)   Non-Solicitation. Employee
shall not, during his employment under this Agreement, and for one (1) year
following the termination of this Agreement, for whatever reason or cause, in
any manner induce, attempt to induce, or assist others to induce, or attempt to
induce, any employee, agent, representative or other person associated with
Employer, to terminate his or her association or contract with Employer, nor in
any manner, directly or indirectly, interfere with the relationship between
Employer and any of such persons or entities.

    

    (d)   Non-Disparagement. Employee
shall not during his employment under this Agreement and for one (1) year
following termination of this Agreement, for whatever reason, make any
statements that are intended to or that would reasonably be expected to harm
Employer or any of its subsidiaries or affiliates, their respective
predecessors, successors, assigns and employees and their respective past,
present or future officers, directors, shareholders, employees, trustees,
fiduciaries, administrators, agents or representatives. Employer and its
officers and directors will not make any statements that are intended to or that
would be expected to harm Employee or his reputation or that reflect negatively
on Employee’s performance, character, skills or ability.

    

    (e)   Relief. Without intending to
limit the remedies available to Employer, Employee acknowledges that a breach of
the covenants in Section 8 may result in material irreparable injury to Employer
for which there is no adequate remedy at law, that it will not be possible to
measure damages for such injuries precisely and that, in the event of such a
breach or threat thereof, Employer shall be entitled to obtain a temporary
restraining order and/or a preliminary or permanent injunction restraining
Employee from engaging in activities prohibited by Section 8 or such other
relief as may be required to specifically enforce any of the covenants in
Section 8.

    

    Section
10     Miscellaneous Provisions.

    

    (a)   Amendments, Waivers, Etc. No
provision of this Agreement may be modified, waived or discharged unless such
waiver, modification or discharge is agreed to in writing signed by both
parties. No waiver by either party hereto at any time of any breach by the other
party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.

    

    (b)   Validity. The invalidity or
unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, which shall
remain in full force and effect.

    

    (d)   Entire Agreement. This
Agreement sets forth the entire agreement and understanding of the parties
hereto with respect to the matters covered hereby and supersedes all prior
agreements and understandings of the parties with respect to the subject matter
hereof. No agreements or representations, oral or otherwise, express or implied,
with respect to the subject matter hereof have been made by either party which
are not expressly set forth in this Agreement and this Agreement shall supersede
all prior agreements, negotiations, correspondence, undertakings and
communications of the parties, oral or written, with respect to the subject
matter hereof.

    

    (e)   Governing Law. The validity,
interpretation, construction and performance of this Agreement shall be governed
by the laws of the State of California.

    

    (g)   Successors and
Assigns.   This Agreement shall be binding upon, and inure
to the benefit of, both parties and their respective successors and
assigns.

    

    (f)   Notice. For the purpose of
this Agreement, notice, demands and all other communication provided for in this
Agreement shall be in writing and shall be deemed to have been duly given when
delivered by hand delivery or overnight courier or mailed by United States
certified or registered mail, return receipt requested, postage prepaid,
addressed as follows or to other addresses as each party may have furnished to
the other:

    

    To
Employer:

    

    Universal
Bioenergy Inc.

    128
Biodiesel Drive

    Nettleton,
Mississippi 38858

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    To
Employee:

    

    Mr.
Vince M. Guest

    12431
Hudson River Drive

    Mira
Loma, California 9752

     

    IN WITNESS WHEREOF, the
parties hereto have duly executed this Agreement to be effective as of the date
first written above.

    

    
      
        
          	
                  EMPLOYER

                	
                  EMPLOYEE

                
	
                  UNIVERSAL
      BIOENERGY INC

                	 
      

        

      

    

    

    
      
        
          
            
              	
                      /s/
      Richard D. Craven

                    	 
      	
                      /s/
      Vince M. Guest

                    
	
                      Richard
      D. Craven

                    	 
      	
                      Vince
      M. Guest

                    
	
                      By
      Its President

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