Document:

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EXHIBIT 10(ii)

                      VIRGINIA ASSOCIATION OF REALTORS(R)
                  CONTRACT FOR PURCHASE OF UNIMPROVED PROPERTY

     (This is a legally binding contract, if not understood, seek competent
advice before signing.)

This CONTRACT FOR PURCHASE OF UNIMPROVED PROPERTY made as of Feb 24, 2005
between Robert J. Daly Et Al whose address is __________________________ (the
"Seller", whether one or more), and Seawright Holdings, Inc. whose address is
___________________ the "Purchaser", whether one or more), provides: The Listing
Company (who represents Seller) is Daly Seven Inc. and the Selling Company (who
does [X] or does not [ ] represent Purchaser) is Real Estate Plus.

REAL PROPERTY: Purchaser agrees to buy and Seller agrees to sell the land, and
all improvements thereon located in the County or City of Augusta, Virginia and
described as (legal description):
46-84b
Rt 1-81 + 275 Int. Lot 1 3.467 AC
and more commonly known as TBD Rt932 (together with the items of personal
property described in paragraph 2 of the "Property").

1. PERSONAL PROPERTY INCLUDED: The following items of personal property are
included in this sale:

NONE

2. PURCHASE PRICE: The Purchase Price (the "Purchase Price") of the Property is
$240,000.
(X) This sale shall be in gross and the purchase price shown above shall be the
exact sales price.
( ) The purchase price shall be adjusted at settlement to an exact purchase
price of $___________ per (sq. ft.)(acre). The exact area to be determined by a
survey to be made by a licensed surveyor and paid for by N/A (9-15-97) Survey
Current and on Record. The Purchaser shall pay to the seller at settlement the
purchase price in cash or by cashier's or certified check, subject to the
prorations herein and from the following sources.

3. (a) THIRD PARTY FIRST TRUST: This sale is subject to Purchaser obtaining ( )
or assuming ( ): a conventional(X}, or other (describe) Cash loan secured by a
first deed of trust lien on the Property in the principal amount of $_____
or___% of the Purchase Price bearing interest ( ) at a fixed rate not exceeding
___% per year, or ( ) ___% per year, or ( ) at the market rate of interest at
the time of settlement, amortized over a term of ___ years, and requiring not
more than a total of ____ loan discount points, excluding a loan origination
fee, or an assumption fee not exceeding $______. (If this Contract provides for
the assumption of a loan: (i) the Parties acknowledge that the balance set forth
above is approximate and that the principal amount to be assumed will be the
outstanding principal balance on the date of settlement, and (ii) Purchaser
shall assume all obligations of Seller under such loan.)

4. DEPOSIT: (a) Purchaser has made a Deposit with Real Estate Plus (the "Escrow
Agent") of Ten Thousand Dollars ($10,000) (the "Deposit") in cash ( ), by check
(X), bank letter of credit ( ), or by a note ( ) due and payable on upon
ratified contract, receipt of which is hereby acknowledged. Upon ratification of
this Contract by all parties, the Deposit shall be held in escrow by the Escrow
Agent. If the transaction does not settle, the Deposit shall be held or
disbursed in accordance with the regulations of the Real Estate
Board/Commission, or other governing law.

6. LOAN FEES: Except as otherwise agreed upon in this Contract, Purchaser shall
pay all points, loan origination fees, charges and other costs imposed by a
lender or otherwise incurred in connection with obtaining the loan or loans. The
amount of any contributions Seller agrees to make under this contract toward
Purchaser's loan fees shall include miscellaneous and tax service fees charged
by a lender for financint described in this contract and which by regulation or
law Purchaser is not permitted to pay.

7. SETTLEMENT; POSSESSION: Settlement shall be made at Local Attorney's Office
on or about 90 days from ratified contract. Possession of the Property shalL be
given at settlement, unless otherwise agreed in writing by the Parties.

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8. EXPENSE PRORATIONS; ROLLBACK TAXES: (a) Seller agrees to pay the expense of
preparing the deed and the recordation tax applicable to grantors. Except as
otherwise agreed herein, all other expenses incurred by Purchaser in connection
with the purchase, including without limitation title examination, insurance
premiums, survey costs, recording costs and the fees of Purchaser's attorney,
shall be borne by Purchaser. All taxes, assessments, interest, rent escrow
deposits, and other ownership fees, if any, shall be prorated as of the date of
settlement.

(b) Rollback taxes shall be paid as follows:

By Seller if any.

9. BROKERAGEE FEE; SETTLEMENT STATEMENTS: Seller and Purchaser authorize and
direct the settlement agent to disburse to Listing Company and/or Selling
Company from the settlement proceeds their respective portions of the brokerage
fee payable as a result of this sale and closing under the Contract. Each of
Listing Company and/or Selling Company shall deliver to the settlement agent,
prior to settlement, a signed written statement setting forth the fee to which
such company is entitled and stating how such fee and any additional sales
incentives are to be disbursed. Seller and Purchaser authorize and direct the
settlement agent to provide to each of Seller. Purchaser, Listing Company and
Selling Company a copy of the unified settlement statement for the transaction.

10. STUDY PERIOD: Purchaser shall have 90 days from the date this Contract is
executed by both Purchaser and Seller, to determine, through engineering and
feasibility studies, whether Purchaser's plan of development of the Property is
practical. Purchaser shall contract for such studies within ten days from the
date of execution, and deliver to Seller and Listing Company copies of the
letter(s) ordering the studies, said letter(s) stipulating that true copies of
all studies are to be sent to Seller or Listing Company, simultaneously with
delivery to Purchaser. If within such study period Purchaser notifies Seller or
Listing Company, in writing, that Purchaser's plan, in Purchaser's sole
judgment, is not practical, Purchaser may terminate this Contract and receive a
refund of the Deposit and the parties shall have no further liability or
obligations hereunder, except as set forth herein. Time shall be of the essence
of this provision.

11. SOIL STUDY: This Contract is contingent for _______ days from date of
execution of this Contract by both Purchaser and Seller to allow _______________
at its expense to obtain a soil study and/or percolation test, which shall
lawfully allow for the erection and use of_____________________________________
on the Property. Such study or test shall be pursued diligently and in good
faith and if such study or test reveals that Purchaser's intended use of the
Property is not permissible or practicable, Purchaser shall have the right, upon
written notice to Seller, to terminate this Contract, in which event the Deposit
shall be returned to Purchaser and the patties shall have no further liability
or obligations hereunder, except as set forth herein.

12. ACCESS: Purchaser and Purchaser's agents and engineers shall have the right
to enter onto the Property at all reasonable times prior to settlement for
purposes of engineering, surveying, title or such other work as is permitted
under this Contract, so long as such studies do not result in a permanent change
in the character or topography of the Property. Purchaser shall not interfere
with Seller's use of the Property, and Purchaser, at Purchaser's expense, shall
promptly restore the Property to its prior condition upon completion of
Purchaser's studies or work. Purchaser keep the Property free and clear from all
liens resulting from its work, studies, investigations or other activities
performed pursuant to this Contract and shall indemnify and hold Seller harmless
against any loss or liability to person or property resulting from Purchaser's
presence or activities on the Property. This obligation shall survive settlement
and transfer of title and possession to the Property.

13. RISK OF LOSS: All risk of loss or damage to the Property by fire, windstorm,
casualty, or other cause is assumed by Seller until settlement. In the event of
substantial loss or damage to the Property before settlement, Purchaser shall
have the option of either (i) terminating this Contract and recovering the
Deposit, or (ii) affirming this Contract, in which event Seller shall assign to
Purchaser all of Seller's rights under any policy or policies of insurance
applicable to the Property.

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14. TITLE: At settlement Seller shall convey the Property to Purchaser by
general warranty deed containing English covenants of title (except that
conveyance from a personal representative of an estate or from a trustee or
institutional lender shall be by special warranty deed), free of all
encumbrances tenancies, and liens (for taxes and otherwise), but subject to such
restrictive covenants and utility easements of record which do not materially
and adversely affect the use of the Property for Purchaser's intended purposes
or render the title unmarketable. If the Property does not abut a public road,
title to the Property must include a recorded easement providing adequate access
thereto. In the event this sale is subject to a financing contingency under
paragraph 3(a or 3(b), the access to a public road must be acceptable to each
lender. If the examination reveals a title defect of a character that can he
remedied by legal action or otherwise within a reasonable time, then Seller, at
Seller's expense, shall promptly take such action as is necessary to cure such
defect. If the defect is not cured within 60 days after Seller receives notice
of the defect, then Purchaser shall have the right to (i) terminate this
Contract, in which event the Deposit shall be returned to Purchaser, and
Purchaser and Seller shall have no further obligations hereunder, or (ii) waive
the defect and proceed to settlement with no adjustment to the Purchase Price.
If Seller has agreed to cure such defect, the parties agree that the settlement
date prescribed in paragraph 7 shall be extended as necessary to enable Seller
to cure such title defect, but not for more than 60 days unless agreed by the
parties.

15. PROPERTY OWNERS' ASSOCIATION DISCLOSURE: Seller represents that the Property
is [ ] or is not [X] located within a development which is subject to the
Virginia Property Owners' Association Act. Section 55-508 et seq. of the Code of
Virginia (the "Act"). If the Property is within such a development, the Act
requires Seller to obtain from the property owners' association (the
"Association") an association disclosure packet and provide it to Purchaser. The
information in the disclosure packet shall be current as of a date specified on
the disclosure packet. Purchaser may cancel this Contract (i) within three (3)
days after the date of the Contract, if Purchaser received the disclosure packet
(or notice that the packet will not be available) on or before the date
Purchaser executed this Contract: (ii) three days after receiving the
association disclosure packet or being notified that the association disclosure
packet will not be available, if the packet or such notice is hand delivered, or
(iii) within six (6) days after the postmark date if the packet or notice that
the packet will not be available is sent to Purchaser by United States mail.
Purchaser may cancel this Contract at any time prior to settlement if Purchaser
has not received the association disclosure packet or notice that the packet
will not be available. Written notice of cancellation shall be hand delivered or
sent by United States mail, return receipt requested, to Seller. Purchaser's
right to receive the association disclosure packet and the right to cancel this
Contract are waived conclusively if not exercised before settlement. Purchaser
shall have the right to request from the Association an update of the disclosure
packet specifying any material changes to the statements previously furnished.
Purchaser may be required to pay a fee for such update.

16. MECHANIC'S LIEN NOTICE: (a) Virginia law (ss. 43-1 et seq.) permits persons
who have performed labor or furnished materials for the construction, removal,
repair or improvement of any building or structure to file a lien against the
property. This lien may be tiled at any time after the work is commenced or the
material is furnished, but not later than the earlier of (i) 90 days from the
last day of the month in which the lienor last performed work or furnished
material or (ii) 90 days from the time the construction, removal, repair or
improvement is terminated. AN EFFECTIVE LIEN FOR WORK PERFORMED PRIOR TO THE
DATE OF SETTLEMENT MAY BE FILED AFTER SETTLEMENT. LEGAL COUNSEL SHOULD BE
CONSULTED.

(b) Seller shall deliver to Purchaser at settlement an affidavit, on a form
acceptable to Purchaser's lender, if applicable. signed by Seller that no labor
or materials have been furnished to the Property within the statutory period for
the filing of mechanics' or materialmen's liens against the Property. If labor
or materials have been furnished during the statutory period. Seller shall
deliver to Purchaser an affidavit signed by Seller and the person(s) furnishing
the labor or materials that the costs thereof have been paid.

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17. NON-BINDING MEDIATION. In an effort to avoid the expense and delay of
litigation. the parties agree to submit any disputes or claims arising out of
this Contract, including those involving the Listing Company or the Selling
Company, to mediation prior to instituting litigation. Such mediation will be
NON-BINDING, that is, no party will be obligated to enter into any settlement
arising out of mediation unless that settlement is satisfactory to that party.
Any settlement the parties enter into will be binding, but if the parties are
not able to reach agreement on a settlement. they may resort to arbitration or
litigation as if the mediation had never taken place. The mediation will be
provided by the local REALTOR(R) Association, if it provides such services. or
by another mutually agreeable mediator or mediation service in the area. This
agreement to mediate does not apply to foreclosure, unlawful detainer
(eviction), mechanics lien, probate or license law actions. Judicial actions to
provide provisional remedies (such as injunctions and filings to enable public
notice of pending disputes) are not violations of the obligation to mediate and
do not waive the right to mediate.

18. NOTICE TO PURCHASER(S): Purchaser(s) should exercise whatever due diligence
Purchaser(s) deems necessary with respect to information on any sexual offenders
registered under Chapter 23 section 19.2-387 et seq. of Title 19. Such
information may be obtained by contacting your local police department or the
Department of State Police, Central Records Exchange at (804) 674-2000 or
www.state.va.us/vsp/vsp.html

19. DEFAULT: If Seller or Purchaser defaults under this Contract. the defaulting
party, in addition to all other remedies available at law or in equity. shall be
liable for the brokerage fee referenced in paragraph 9 hereof as if this
Contract had been performed and for any damages and all expenses incurred by the
non-defaulting party, Listing Company and Selling Company in connection with
this transaction and the enforcement of this Contract, including, without
limitation, attorneys' fees and costs, if any. Payment of a real estate broker's
fee as the result of a transaction relating to the Property which occurs
subsequent to a default under this Contract shall not relieve the defaulting
party of liability for the fee of Listing Company in this transaction and for
any damages and expenses incurred by the non-defaulting party, Listing Company
and Selling Company in connection with this transaction. In any action brought
by Seller, Purchaser, Listing Company or Selling Company under this Contract or
growing out of the transactions contemplated herein, the prevailing party in
such action shall be entitled to receive from the non-prevailing party or
parties, jointly and severally, in addition to any other damages or awards,
reasonable attorneys' fees and costs expended or incurred in prosecuting or
defending such action.

20. OTHER ITEMS: (Use this space for additional terms not covered in this
Contract.)

1) This contract is subject to a 90 day engineering study period.

2) This contract is subject to closing on adjacent property owned by ABC Farms
and scheduled to close by this purchaser on or about 3/30/05.

21. BROKERS; LICENSEE STATUS. (a) Listing Company and Selling Company may from
time to time engage in general insurance, title insurance, mortgage loan, real
estate settlement, home warranty and other real estate-related businesses and
services, from which they may receive compensation during the course of this
transaction, in addition to real estate brokerage fees. The parties acknowledge
that Listing Company and Selling Company are retained for their real estate
brokerage expertise, and neither has been retained as an attorney, tax advisor,
appraiser, title advisor, home inspector, engineer, surveyor, or other
professional service provider.

(b) Disclosure of Real Estate Board Commission licensee status, if any is
required in this transaction: __________________________________________________

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22.  MISCELLANEOUS: This Contract may be signed in one or more counterparts,
     each of which shall be deemed to be an original and all of which together
     shall constitute one and the same document. Documents delivered by
     facsimile machine shall be considered as originals. Unless otherwise
     specified herein. "days" mean calendar days. For the purpose of computing
     time periods, the first day shall be the day following the date this
     Contract is fully ratified. This Contract represents the entire agreement
     between Seller and Purchaser and may not be modified OR CHANGED EXCEPT BY
     written instrument EXECUTED BY THE parties. This Contract shall be
     construed, interpreted and applied according to the laws of the state in
     which the Property is located and shall be binding upon and shall inure to
     the benefit of the heirs, personal representatives, successors, and assigns
     of the parties. To the extent any handwritten or typewritten terms herein
     conflict with or are inconsistent with the printed terms hereof, the
     handwritten or typewritten terms shall control. Whenever the context shall
     so require, the masculine shall include the feminine and the singular shall
     include the plural. Unless otherwise provided herein, the representations
     and warranties made by Seller herein and all other provisions of this
     Contract shall be deemed merged into the deed delivered at settlement and
     shall not survive settlement.

23. ACCEPTANCE: This Contract when signed by Purchaser shall be decreed an offer
to enter into a bilateral contract. If not accepted by Seller by 5:00 (time),
December 6, 2004, it shall become null and void.

WITNESS the following duly authorized signature (SEPARATE ALL COPIES BEFORE
SIGNING BELOW)

03/11/05, /s/ Robert J. Daly                 3/8/05 /s/ Joel P. Sens
-----------------------------------          -----------------------------------
DATE                SELLER                   DATE                PURCHASER
Agent for Sellers                            for Seawright Holdings, Inc.
                                             FED ID# 54-1965220

-----------------------------------          -----------------------------------
SOCIAL SECURITY NUMBER                       SOCIAL SECURITY NUMBER

-----------------------------------          -----------------------------------
DATE                SELLER                   DATE                PURCHASER

-----------------------------------          -----------------------------------
SOCIAL SECURITY NUMBER                       SOCIAL SECURITY NUMBER

For information purposes only:

Listing Company's Name and Address:          Selling Company's Name and Address:

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                            The Wright Realty Group
                              Commission Agreement
                                  540-213-8888
                               Fax: 540-213-3811

In reference to the contract dated Feb 24, 2005 between Robert J. Daly Et Al
(Seller) and Seawright Holdings, Inc. (Purchaser), Seller hereby agrees to the
following compensation for services rendered:

3.469 AC on Rt 932

____% of the sales price to _________________ (Company)

                                      And

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4% of the sales price to Real Estate Plus (Company)

-------------------------------                   ------------------
Listing Agent                                     Date

/s/ Susan L. McGee                                2/24/05
-------------------------------                   ------------------
Selling Agent                                     Date<PAGE>

EXHIBIT 10.1

                    ETHANOL PURCHASE AND MARKETING AGREEMENT

This Agreement is entered into as of this 4th day of March 2005, by and between
Phoenix Bio-Industries, LLC, a California limited liability company and Kinergy
Marketing, LLC, a California limited liability company.

SELLER:                    Phoenix Bio-Industries ("PBI")
                           P. O. Box 1029
                           31120 Nutmeg Road
                           Goshen, CA 93227

BUYER:                     Kinergy Marketing ("KINERGY")
                           1260 Lake Blvd., Suite 225
                           Davis, California 95616

                                   WITNESSETH:

         A. PBI is a manufacturer of ethanol and KINERGY intends to purchase the
ethanol from PBI for the purposes of reselling the ethanol on the open market
and under the terms and conditions of this Agreement.

         B. Concurrently herewith, PBI, Pacific Ethanol, Inc., a California
corporation ("Pacific Ethanol") and Western Milling, LLC, a California limited
liability company ("Western") are entering into a WDG Marketing and Services
Agreement ("WDG Agreement") whereby Western will have the exclusive right to
market the wet distillers grain ("WDGs") produced by Pacific Ethanol's plant to
be constructed near Madera, California.

         C. In consideration of the mutual covenants contained herein and for
other good and valuable consideration, receipt of which is hereby acknowledged,
the parties hereto agree as follows:

PRODUCT:                   Fuel grade ethanol

QUALITY:                   Meets ASTM - D4806 specifications for denatured fuel
                           ethanol. During the term of this agreement, PBI
                           agrees to collect samples for each shipment and
                           retain them for a three-month period. Each product
                           sample will be labeled to include the customer order
                           number, production date and any other applicable
                           information.

TERM:                      The agreement will begin with the commencement of
                           ethanol production at PBI's Goshen plant. The initial
                           term of this Agreement shall be for 2 consecutive
                           years commencing on the date that ethanol is first
                           available for marketing from the Goshen

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                           Plant (the "Initial TERM") and from year to year
                           thereafter until terminated as provided herein. All
                           parties agree that at the end of the Initial Term,
                           assuming the agreement is not terminated as provided
                           herein, then the next renewal term will BE for the
                           balance of the then calendar year. Thereafter, this
                           agreement will automatically RENEW FOR an additional
                           one year term unless either party terminates the
                           agreement 60 days before the end of the renewal term.
                           It is the intent of the parties that after the
                           Initial term of this Agreement and after the Initial
                           term of the WDG Agreement, the renewal term for both
                           Agreements will be one YEAR, on a calendar year basis

VOLUME:                    KINERGY will market the entire production of ethanol
                           from PBI's Goshen plant, estimated to be
                           approximately 2,000,000 to 2,500,000 gallons per
                           month at start up with expansions at a later date. PM
                           will provide KINERGY with a forecast of production on
                           or before the 15111 of each month for the future
                           month. KINERGY acknowledges that P.8I has only
                           limited storage capacity and KINERGY will use
                           commercially reasonable efforts to remove the ethanol
                           in a timely manner. In the event that stored ethanol
                           exceeds capacity more than 2 times in a 60 day period
                           or for longer than 24 hours at any given time, PBI
                           shall have the right, in addition to any other claims
                           available to PBI under applicable law, to terminate
                           this Agreement. A default under this paragraph shall
                           be communicated to KINERGY's designated
                           representative by facsimile or e-mail.

MEASUREMENT:               Net gallons temperature compensated to 60 degrees
                           Fahrenheit or Net liters at 15 degrees C.

TITLE:                     Title transfers from seller to buyer at inlet flange
                           of receiving tank

PRICE:                     KINERGY will pay PBI the gross sales price to the
                           customer less transportation expenses and a 1.0%
                           marketing fee, after transportation expenses.
                           Transportation expenses include, truck, rail and
                           terminal fees. PISS and KINERGY will mutually agree
                           upon the company or companies providing
                           transportation services during the term of this
                           Agreement. PBI has the right to elect to participate
                           in a pool receiving the average price of ethanol
                           marketed by Kinergy in the respective period of the
                           Pacific Ethanol Madera facility and the PBI Goshen
                           facility or PBI has the right to elect to receive the
                           specific price that resulted from its

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                           individual ethanol sales. If the individual sales
                           method is elected, KINERGY shall advise PBI by
                           facsimile or e-mail of the price and obtain PBI's
                           approval thereof.

PAYMENT TERMS:             KINERGY will provide PBI with payment 10 days from
                           shipment of product. If KINERGY is delayed in paying
                           PBI then the finance charge will be 12% per year. If
                           Kinergy or its affiliate or parent company become
                           insolvent or are late in payment by more than five
                           calendar days, then PBI has the right to request that
                           KINERGY provide acceptable security for the account
                           payable and any potential increase therein due to
                           PBI, or PBI has the right to modify the terms herein.
                           Furthermore, should KINERGY become insolvent, PBI has
                           the right to offset any balance owed by PBI or
                           Western Milling to KINERGY, its parent or affiliates,
                           and Pacific Ethanol, including any balance due on the
                           WDG Agreement.

AUDIT OF RECORDS:          During the term of this agreement, PBI may request a
                           spot invoice audit or a complete audit. PBI will be
                           responsible for any hired auditor fees incurred
                           during such audits. The scope of the audit includes
                           the ability for PBI to audit all sales that KINERGY
                           engages in within California.

TERMINATION FOR AS A RESULT OF DEFAULT In addition to the termination provisions
         provided above, this Agreement may be terminated, without payment of
         any penalty, as follows:

                  (1)      if a party defaults in the payment of any amount when
                           due under this Agreement, and such default continues
                           for a period of ten (10) days after written notice of
                           such default has been given to the defaulting party
                           by the other party; or

                  (2)      by either party, immediately upon notice to the other
                           party, if such other party shall have become bankrupt
                           or insolvent, or entered into a composition or
                           assignment for the benefit of its creditors, or had a
                           receiver appointed for its assets, or become the
                           subject of any winding up of its business or any
                           judicial proceeding relating to or arising out of its
                           financial condition; or

                  (3)      by either party if the other party shall be in
                           material breach of any of its obligations under this
                           Agreement and shall have failed to cure such breach
                           within twenty (20) days after receiving written
                           notice from the other party of the existence of such
                           breach; or

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                  (4)      by PBI should KINERGY not remove the ethanol in a
                           timely manner such that it materially affects PBI's
                           ability to produce and store ethanol.

                  INDEMNITY:

                  A.       PBI agrees to defend, hold harmless and indemnify
                           KINERGY from any and all loss or damage, costs and
                           expenses, including legal fees, incurred by PBI from
                           any claim or action asserted against, made or filed
                           against KINERGY claiming loss or injury of any nature
                           whatsoever, resulting from the performance (or
                           failure to perform) by PBI of this Agreement. The
                           foregoing indemnification obligation shall survive
                           any termination of this Agreement.

                  B.       KINERGY agrees to defend, hold harmless and indemnify
                           PBI from any and all loss or damage, costs and
                           expenses, including legal fees, incurred by PBI from
                           any claim or action asserted against, made or filed
                           against PBI claiming loss or injury of any nature
                           whatsoever, resulting from the performance (or
                           failure to perform) by KINERGY of this Agreement. The
                           foregoing indemnification obligation shall survive
                           any termination of this Agreement.

AMENDMENT/WAIVER:

                           This Agreement may not be modified, amended or waived
                           in any manner except by an instrument in writing
                           signed by both parties hereto. The waiver by either
                           party of compliance with any provision of this
                           Agreement by the other party shall not operate or be
                           construed as a waiver of any other provision of this
                           Agreement, or of any subsequent breach by such party
                           of a provision of this Agreement.

SUPERSEDES PREVIOUS AGREEMENTS

                           This Agreement supersedes all prior or
                           contemporaneous negotiations, commitments, agreements
                           (written or oral) and writings between the parties
                           with respect to the subject matter hereof. All such
                           other negotiations, commitments, agreements and
                           writings will have no further force or effect, and
                           the parties to any such other negotiation,
                           commitment, agreement or writing will

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                           have no further rights or obligations thereunder.
                           This Agreement and the WDG Agreement constitute the
                           sole and only agreements between the parties
                           regarding the subject matter hereof

GOVERNING LAW/COMPLIANCE:

                           All matters affecting this Agreement, including the
                           validity thereof, are to be governed by, interpreted
                           and construed in accordance with the laws of the
                           United States and the State of California.

DISPUTES:                  Any disputes that arise between the parties with
                           respect to the performance of this Agreement shall be
                           submitted to arbitration to the American Arbitration
                           Association, conducted in Tulare County, to be
                           determined and resolved by said Association under its
                           rules and procedures in effect at the time of
                           submission and the parties hereby agree to share
                           equally in the costs of said arbitration.

NOTICES:                   Any notice hereunder by either party to the other
                           shall be given in writing by personal delivery, by
                           telecopy (with confirmation of transmission) or by
                           certified mail, return receipt requested. A notice
                           shall be deemed given, if by personal delivery or by
                           telecopy, on the date of such delivery or, if by
                           certified mail, on the date shown on the applicable
                           return receipt.

HEADINGS:                  The headings of Sections and paragraphs herein are
                           included solely for convenience of reference and
                           shall not control the meaning or interpretation of
                           any of the provisions of this Agreement.

OTHER:                     Notwithstanding any other provision of the agreement,
                           where not in conflict with the foregoing, all other
                           terms and conditions shall be in accordance with
                           standard industry practice.

CONNECTED AGREEMENTS:      All parties agree that this Ethanol Purchase and
                           Marketing Agreement is being executed in conjunction
                           with the WDG Agreement. Should Pacific Ethanol
                           terminate or not execute the WDG Agreement then PBI
                           has the right to terminate this Agreement.

LEASE:                     Pacific Ethanol, and it affiliates and subsidiaries,
                           hereby grant to Western Milling the first right of
                           negotiation and last right of refusal to enter into a
                           lease on the Madera facility on terms mutually agreed
                           upon if Pacific Ethanol decides to lease the

                                       5

<PAGE>

                           facility to a 3rd party. If such a lease were
                           executed it would reserve the right to retain 3 silos
                           for Pacific Ethanol's corn storage if Pacific Ethanol
                           decided to not have Western Milling procure and
                           inventory corn.

FORCE MAJEURE:             KINERGY shall not be liable to PBI for its failure to
                           deliver services hereunder, and PBI shall not be
                           liable to KINERGY for its failure to produce ethanol
                           when such failure shall be due to the failure OF
                           PROCESSING EQUIPMENT, fires, floods, storms, weather
                           conditions, strikes, lock outs, other industrial
                           disturbance, riots, legal interference, governmental
                           action or regulation, acts of terrorism, acts of God
                           or public enemy, or, without limitation by
                           enumeration, any other cause beyond KINERGY's or
                           PBI's reasonable control; provided KINERGY or PBI
                           shall promptly and diligently take such action as may
                           be necessary and practicable under the then existing
                           circumstances to remove the cause of failure and
                           resume delivery of services or ethanol. The party
                           seeking to invoke this provision shall provide notice
                           within 48 HOURS OR SUCH other time as is reasonable
                           under the circumstances. The party shall further
                           notify the other party as to the time when the force
                           majeure condition is no longer in effect.

SUCCESSORS AND ASSIGNS:    This Agreement shall be binding upon and will inure
                           to the benefit of the parties hereto and their
                           respective successor and assigns and wherever a
                           reference in this Agreement is made to either of the
                           parties hereto such reference will be deemed to
                           include, if applicable, also a reference to the
                           successors and assigns of such party, as if in every
                           case so expressed. Notwithstanding the foregoing,
                           KINERGY shall not assign this Agreement without the
                           express written consent of PBI which consent shall
                           not be unreasonably withheld.

         In witness whereof, the parties hereto have EXECUTED THIS Agreement on
the date indicated below.

Phoenix Bio-Industries Inc.                  Kinergy Marketing, LLC.

By /s/ Richard Eastman                       By /s/ Neil Koehler
   -----------------------                      --------------------
Richard Eastman, President                   Neil Koehler, President
Date: March 10, 2005                         Date: March 10, 2005

                                       6

<PAGE>

Western Milling LLC.                         Pacific Ethanol, Inc.

By /s/ Kevin Kruse                           By /s/ Ryan Turner
   -------------------                          --------------------
Kevin Kruse, President                       Ryan Turner, COO
Date: March 4, 2005                          Date: March 10, 2005

                                       7

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