Document:

Exhibit 10.3
                             SUBSCRIPTION AGREEMENT

LRS Capital Inc, ("Company") and the person executing this subscription
agreement hereby agree as follows:

         1. Subscription for Shares. I (sometimes referred to herein as the
"Investor") hereby subscribe for and agree to purchase $__________ of the common
stock ("Common Stock") being offered by the Company at $.125 per share
("Shares") described in the Prospectus dated ______, 2000 of the Company
("Prospectus") upon the terms and conditions of the offering described in the
Prospectus.

         2. Offering Period.  The Shares are currently being offered by the
Company through ______, 2001 (Termination Date").

         3. Investor Delivery of Documents and Payment. I hereby tender to the
Company (i) the full purchase price by check or wire and (ii) two manually
executed copies of this Subscription Agreement. Prior to the acceptance of the
subscription by the Company or the return of the subscription amount, the funds
will not be held in an escrow account but will be the property of the Company.

         4. Acceptance or Rejection of Subscription. The Company has the right
to reject this subscription for Shares, in whole or in part for any reason and
at any time prior to it being accepted. In the event of the rejection of this
subscription, my subscription amount paid will be returned promptly to me
without interest or deduction and this Subscription Agreement will have no force
or effect. The Shares subscribed for herein will not be deemed issued to or
owned by me until two copies of this Subscription Agreement have been executed
by me and countersigned by the Company and a closing with respect to my
subscription has occurred.

         5. Closing and Delivery of Shares. Closings will occur on a rolling
basis from time to time at the discretion of the Company, at the offices of the
Company, at any time prior to the Termination Date. In the event my subscription
is accepted, the certificates representing the Shares will be delivered promptly
to me, along with a fully executed version of this Agreement within ten business
days.

         6. Investor Representations and Warranties.  I acknowledge, represent
and warrant to the Company as follows:

            6.1 Obligations of the Company and the Investor. The Company
has no obligation to me other than as set forth in this Agreement. I am not
entitled to cancel, terminate or revoke this subscription, and any agreements
made in connection herewith will survive my death or disability. In order to
induce the Company to issue and sell the Shares to me, I represent and warrant
that the information relating to me stated herein is true and complete as of the
date hereof and will be true and complete as of the date on which my purchase of
Shares becomes effective. If, prior to the final consummation of the offer and
sale of the Shares, there should be any change in such information or any of
such information becomes incorrect or incomplete, I agree to notify the Company
and supply the Company promptly with corrective information.

<PAGE>

                  6.2  Information About the Company.

                  (a) I have read the Prospectus and fully understand the
Prospectus, including the Section entitled "Risk Factors." I understand that
there is no assurance as to the future performance of the Company. I have not
relied on information other than what can be found in the Prospectus in making
my decision to invest in the Shares.

                  (b) I have received no representation or warranty from the
Company or any of its respective officers, directors, employees or agents in
respect of my investment in the Company.

         7. Entity Authority. If the Investor is a corporation, partnership,
company, trust, employee benefit plan, individual retirement account, Keogh
Plan, or other tax-exempt entity, it is authorized and qualified to become an
investor in the Company and the person signing this Subscription Agreement on
behalf of such entity has been duly authorized by such entity to do so.

         8. Governing Law and Jurisdiction. This Subscription Agreement will be
deemed to have been made and delivered in New York City and will be governed as
to validity, interpretation, construction, effect and in all other respects by
the internal laws of the State of New York. Each of the Company and the Investor
hereby (i) agrees that any legal suit, action or proceeding arising out of or
relating to this Subscription Agreement will be instituted exclusively in New
York State Supreme Court, County of New York, or in the United States District
Court for the Southern District of New York, (ii) waives any objection to the
venue of any such suit, action or proceeding and the right to assert that such
forum is not a convenient forum for such suit, action or proceeding, (iii)
irrevocably consents to the jurisdiction of the New York State Supreme Court,
County of New York, and the United States District Court for the Southern
District of New York in any such suit, action or proceeding, (iv) agrees to
accept and acknowledge service of any and all process that may be served in any
such suit, action or proceeding in New York State Supreme Court, County of New
York or in the United States District Court for the Southern District of New
York and (v) agrees that service of process upon it mailed by certified mail to
its address set forth on my signature page will be deemed in every respect
effective service of process upon it in any suit, action or proceeding.

         9. Counterparts.  This Subscription Agreement may be executed in one or
more counterparts, each of which will be deemed an original but all of which
together will constitute one and the same instrument. The execution of this
Subscription Agreement may be by actual or facsimile signature.

         10. Benefit.  This Subscription Agreement is binding upon and inures to
the benefit of the parties hereto and their respective heirs, executors,
personal representatives, successors and assigns.

         11. Notices. All notices, offers, acceptance and any other acts under
this Subscription Agreement (except payment) must be in writing, and is
sufficiently given if delivered to the addressees in person, by overnight
courier service, or, if mailed, postage prepaid, by certified mail (return
receipt requested), and will be effective three days after being placed in the
mail if mailed, or upon receipt or refusal of receipt, if delivered personally
or by courier or confirmed telecopy, in each case addressed to a party. All
communications to me should be sent to my preferred address on the signature
page hereto. All communications to the Company should be sent to ___________.
Each party may designate another address by notice to the other parties.

<PAGE>

         12. Oral Evidence. This Subscription Agreement constitutes the entire
agreement between the parties with respect to the subject matter hereof and
supersedes all prior oral and written agreements between the parties hereto with
respect to the subject matter hereof. This Subscription Agreement may not be
changed, waived, discharged, or terminated orally, but rather, only by a
statement in writing signed by the party or parties against which enforcement or
the change, waiver, discharge or termination is sought.

         13. Section Headings.  Section headings herein have been inserted for
reference only and will not be deemed to limit or otherwise affect, in any
matter, or be deemed to interpret in whole or in part, any of the terms or
provisions of this Subscription Agreement.

         14. Survival of Representations, Warranties and Agreements.  The
representations warranties and agreements contained herein will survive the
delivery of, and the payment for, the Shares.

         15. Acceptance of Subscription.  The Company may accept this
Subscription Agreement at any time for all or any portion of the Shares
subscribed for by executing a copy hereof as provided and notifying me within a
reasonable time thereafter.

<PAGE>

       SIGNATURE PAGE FOR INDIVIDUAL INVESTORS - COMPLETE ALL INFORMATION
       ---------------------------------------

Name: _______________________     Name of Joint Investor (if any): ____________

Residence Address:  ___________________________________________________________

Telephone:  (H) ___________________ (W) _____________________ Fax ______________

Occupation: _________________________   Employer: ______________________________

Business Address: _____________________________________________________________

Send communications to:

|_|    Home              |_|    Office               |_|    E-Mail:
E-mail address: _____________________________________________

Age:  _______________

Social Security Number:  ____________________

Check manner in which Shares are to be held:

|_|   Individual    |_|    Tenants in     |_|    Joint Tenants with
      Ownership            Common                 Right of Survivorship
                                                 (both parties must sign)
|_|   Community                           |_|    Other (please indicate)
      Property                                   __________________

ALL INVESTORS MUST SIGN AND PRINT     The foregoing subscription is accepted and
NAME BELOW:                           the Company hereby agrees to be bound by
                                      its terms.
Signature:                            LRS Capital Inc.
-------------------------
Print Name:
-------------------------
Signature:                            By:_________________________________
-------------------------
Print                                      Name:
Name:___________________________           Title:
                                                                Date:

<PAGE>

SIGNATURE PAGE FOR ENTITY INVESTORS - COMPLETE ALL INFORMATION
-----------------------------------

Name of Entity: _______________________________________________________________

Address of Principal Office:  _________________________________________________

Telephone:   ___________________          Fax:  ___________________

Taxpayer Identification Number:  ______________________

Check type of Entity:

|_|  Employee Benefit   |_|  Limited     |_| General     |_| Individual
     Plan Trust              Partnership     Partnership     Rertirement Account
|_|  Limited Liability  |_|  Trust       |_| Corporation |_| Other (please
     Company                                                 indicate)
                                                             __________________

Date of Formation or incorporation: ___________   State of Formation or
                                                  incorporation: __________

Describe the business of the Entity: _______________________________________

_______________________________________________________________________________

List the names and positions of the executive officers, managing members,
partners or trustees authorized to act with respect to investments by the Entity
generally and specify who has the authority to act with respect to this
investment.

Name                   Position           Authority for this investment
                                          (yes or no)
______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

_____________________________________________________________________________

______________________________________________________________________________

<PAGE>

ALL INVESTORS MUST SIGN AND PRINT    The foregoing subscription is accepted and
NAME BELOW:                          the Company hereby agrees to be bound by
                                     its terms.

                                     LRS Capital Inc.

---------------------------------

Signature of Authorized Signatory:
Name
Title:                               By:_________________________________
                                        Name:
                                        Title:
                                        Date:Exhibit 10.1

                                 SALES CONTRACT

         This Agreement made this 30th day of June, 1997 between Perfect
Renaissance, S.R.L.,a Romanian corporation with its principal place of business
at Sir. Stefan Cel Mare, 4, Timisoara,1900, Romania ("PRL") and Ex-Klar
Technologies, Inc., a New York USA Corporation with its principal place of
business at 4 Charles Colman Blvd., Suite 6, Pawling, NY 12564 .- USA ("ExKlar")
sets forth the terms under which Ex-Klar agrees to sell to PRL the "Contract
Items" described below.

1.-    DEFINITIONS.  The terms below shall, for purposes of this Agreement, have
the meanings assigned to them below:

"Added Charges" means any customs, duties or any sales, value added, consumer,
use or other similar taxes with respect to the Contract Items once these Items
are shipped to Romania by ExKlar. Or any financial fees charged in connection
with the financing package obtained for the Project. Or any other expenses
resulting from additional work requested and authorized by PRL.

"Completed Contract Items" means, at a given point in time, (i) Components which
have been delivered CIF Constanza, Romania and (ii) Consulting Services which
have been provided as reflected on the Payment Documents.

"Components" means the equipment and materials described on Exhibit "A" attached
hereto and made a part hereof. All these components, will be delivered CIF
Constanta, Romania for Ocean Shipment, or CIF Timisoara's Airport for Air
Shipments.

"Contract Items" means the Components and Consulting Services.

"Contract Price" means the sum of $4,609,892 (Four million, six hundred nine
thousand, eight hundred ninety two US dollars).

"Consulting Services" means the know-how transfer, consulting and training
services described on Exhibit "B" attached hereto and made a part hereof to be
provided by Ex-Klar hereunder to PRL.

"Construction Work" means the local construction work, performed In Romania,
with respect to the Project, including, without limitation, selection of the
Premises, clearing and grading the Premises, site specific architectural and
engineering work, surveys, taking and verifying field measurements and field
conditions, soil analysis, access roads, foundations and process buildings,
preparation of detail drawings and shop drawings for this local work and the
furnishing of all labor, materials, tools, equipment, light, power, water, other
utilities, services and facilities, transportation and superintendence of every
nature required in order to complete the Project, including, without

<PAGE>

limitation, all labor and materials for installation of the Components, and
assembly of those marked "Local Assembly" on Exhibit "A". All this work will be
performed according to instructions and general engineering drawings and
specifications supplied by Ex-Klar.

"Final Payment" means the final payment of the retainer of the Contract Price,
US$200,000.00.

"Party" means either Ex-Klar or PRL.

"Payment Documents" means, with respect to any application for payment made by
Ex-Klar for a portion of the Contract Price hereunder and for any applicable
Added Charges, as defined herein:

Payment Documents related to Down Payment:

1.   Ex-Klar's commercial invoice for the Components included in such
     application for payment in six copies.
2.   Ex-Klar's Wire Transfer Instructions.
3.   Letter of Intent from Ex-Klar to sign this contract once all details have
     been agreed with PRL.

Payment Documents related to Process Engineering Services:

1.   Ex-Klar's commercial invoice for US$308990.00 in six copies.
2.   Notification that the Know-How and Sales Contract between PRL and Ex-Klar,
     has been properly signed.
3.   Ex-Klar's Wire Transfer Instructions.
4.   Letter of Authorization from PRL to pay this amount.

Payment Documents related to Shipment of Components:

1.   Sight draft drawn against the US bank doing the project financing.
2.   Ex-Klar's commercial invoice for the Components included in such
     application for payment in six copies, properly adjusted to reflect funds
     received by Ex-Klar, for the Down payment and the Process Engineering
     Services.
3.   Ex-Klar's packing list for the Components included in such application for
     payment in six copies.
4.   Original Ocean Bill of Lading for those shipment sent by ocean, or Airway
     bill for those shipped by air.
5.   Insurance certificate.

     In case the shipment of any Component needs to be delayed, once it is ready
to be shipped, due to reasons other than those under Ex-Klar control, the
Component (8) corresponding to this shipment will be stored at a warehouse in
the US, and the Payment Documents needed for Ex- Klar to be paid, will then be
modified to include only numerals (1). (2), (3), and a warehouse receipt
certifying that such Component (s) is in their custody. Warehousing charges will
be invoiced by Ex- Klar to PRL as Added Charges.

                                       2

<PAGE>

Payment Documents related to Added Charges or Consulting Services:

1.   Sight draft drawn against the US bank doing the project financing.
2.   Ex-Klar's invoice for any applicable Added Charges and for Consulting
     Services provided on or before the date of such application for payment or
     estimated to be provided in the 30 day -period immediately following such
     date.

     The amount of the payment to be made on account of any application for
payment, except for those related to Added Charges, shall equal the sum of the
amounts reflected in Items (1) and (2) above, less a 6% retainage up to
US$200,000.00, amount that will become the Final Payment under this contract.

     Notwithstanding the foregoing to the contrary, with respect to Ex-Klar's
application for the Final Payment, the Payment Documents means Ex-Klar's written
demand for p4yment accompanied by its statement, approved by PRL, that

     (i)  Successful Testing as defined in this Agreement has been completed, or

     (ii) that 18 months have passed since the effective date of this Agreement
          and Ex- Klar is not in default in its obligations under this
          Agreement.

"Premises" means the location in Timisoara, Romania where the Construction Work
is to be performed, which Premises is to be determined by PRL.

"Project Schedule" means the schedule for completion of the Construction Work as
set forth on Exhibit "C" attached hereto and made a part hereof.

"Project" means the Construction upon the Premises of a complete grass-root
distillery to produce Extra Neutral Ethanol from Corn in accord with the
"Specifications".

"Proprietary Information" as used herein shall mean any information and
documentation disclosed during the term of this agreement by Ex-Klar to PRL
which is stamped "Confidential", "Proprietary" or with a Similar legend denoting
the Proprietary interest therein of Ex-Klar, and other information normally
understood to be confidential or otherwise designated as such by Ex-Klar:
provided, however, Proprietary Information shall not include any data,
information or device that PRL can show is generally available to the public or
publicly disclosed by Ex-Klar; in the possession of PRL or its related companies
prior to its disclosure hereunder by Ex-Klar; independently developed by PRL or
its related companies; rightfully received by PRL or Its related companies from
a third person without restriction on disclosure or use; part of the public
domain; or approved for release or disclosure by Ex-Klar.

"Specifications" means the installation environment required for proper
installation and operation of the Project and the plans and specifications for
installation of the Components as set forth on Exhibit "D" attached hereto and
made a part hereof. Ex-Klar is responsible for the accuracy of the information
supplied to PRL to define this environment, and its suitability in defining the
proper Installation of the Components to fulfill the Performance Guaranty.

                                        3

<PAGE>

"Successful Testing" means the Project has been tested and found to be operating
properly following the protocols set forth in Exhibit "E" attached hereto and
made a part hereof.

"Supplier" means any individual or entity which supplies a Component.

2.-      PURCHASE OF CONTRACT ITEMS. PRL will purchase the Contract Items from
Ex-Klar for the Project upon the terms specified herein.

3.-      INSTALLATION ENVIRONMENT; CONSTRUCTION WORK. PRL is responsible for
providing an installation environment for the Components which meets or exceeds
the Specifications. Except for the delivery of the Components and provision of
the Consulting Services, Ex-Klar is not responsible for any Construction Work
and such Construction Work shall be performed by PRL or by third parties engaged
by Ex-Klar will review and approved the engineering drawings corresponding to
this Construction work only as to Its suitability for the proper installation of
the Contract Items according to the Specifications, proper location and access
for operation of the plant. and its performance and not as to its specific
engineering content. This specific engineering content will be the
responsibility of PRL's local engineering contractor. All reviews and approvals
by Ex-Klar must be done in a timely way so as not to cause any delay during this
Construction Work, and allow PRL to proceed with It according to the Project
Schedule.

4.- PRICE. PRL will pay Ex-Klar the Contract Price for the Contract Items upon
the terms set forth in this Agreement. The Contract Price is exclusive of and
does not include any Added Charges, which Added Charges are the responsibility
of and shall be paid by PRL. This Contract Price remains fix and valid as long
as Ex-Klar is allowed to proceed to order and ship all the Components, and to
provide the Consulting Services, per the "Project Schedule". Otherwise, there
will be Added Charges generated and charged to PRL; in the case of the
Components and delays caused by PRL, for warehousing in the US, and Ex-Klar will
be paid for those delayed shipments against warehouse receipts; in case of the
Consulting Services, the cost will be increased using the US Producer Price
Index.

5.- PAYMENTS. The obligations of Ex-Klar hereunder are contingent upon PRL, at
its sole cost and expense, paying 15% of the Contract Value, US$601,483.00 as a
down payment and securing financing for this transaction acceptable to Ex-Klar,
which financing shall be in the farm of irrevocable letter of credit or bank
guarantee in the amount of $3,91 8,409.00 and shall guarantee and provide for
immediate payment to Ex-Klar upon Ex-Klar's submission of Payment Documents to
the bank as provided herein. PRL shall pursue such financing with due diligence.
If PRL, after using its best efforts, is not able to obtain such financing on or
before 180 days after this contract is executed by Ex-Klar, then Ex-Klar shall
have the right to terminate this Agreement by notice of such inability to PRL.
Upon such termination, this Agreement shall be null and void and each of the
parties hereto shall be released each to the other of all claims and liability
arising out of this Agreement.

         Once the foregoing financing is in place, Ex-Klar will be entitled to
submit applications for payment from time to time, upon shipment of Components
per the Project Schedule, and rendering of Consulting Services per terms set in
Exhibit "8", to such bank with the appropriate Payment Documents and this
financing arrangement will provide that payments in accord with Payment
Documents for Completed Contract Items and the Final Payment cannot be withheld
far any reason.

                                        4

<PAGE>

6.-      COMMENCEMENT AND COMPLETION DATES. PRL warrants that Construction Work
shall begin, proceed and be completed in accord with the Project Schedule.

         Ex-Klar will supply the Contract Items as reasonably determined
necessary by Ex-Klar to meet this Construction schedule.

7.-      TITLE; SHIPPING

         Ex-Klar warrants that no third party will have any interest in
the Components upon delivery thereof and that they will be free from all liens,
claims and encumbrances.

         Ex-Klar will determine the manner and method of shipment of
the Components. Ex- Klar will exert reasonable efforts to consolidate shipments
and to minimize air shipments; however air shipment will be used for Components
such as controls and electronics and otherwise when deemed necessary by Ex-Klar
to meet Construction schedules.

8.-      PATENT INDEMNITY

         A.       Ex-Klar shall indemnify and hold harmless PRL from and against
                  all legal expenses which may be incurred as well as all
                  damages and costs which may be assessed against PRL in any
                  action for infringement of the rights of others, including any
                  United States Patent, by the work performed hereunder.

         B.       PRL shall give Ex-Klar prompt written notice of any action,
                  claim or threat of an infringement suit, either oral or
                  written, or the commencement of any infringement suit against
                  PRL relating to the work performed hereunder by PRL.

         C.       PRL shall give Ex-Klar the opportunity to elect to take over,
                  settle or defend any such claim, action or suit through
                  counsel of Ex-Klar's own choice and under its sole direction
                  and at its sold expense. Ex-Klar shall have the right to
                  substitute for any such work or items or any part thereof
                  claiming to infringe the patent rights of others,
                  non-infringing work or items which shall be equal or superior
                  to the infringing work or item. If the use of any such work or
                  item or any part thereof should be enjoined, ExKlar shall, at
                  its own expense, take any of the following courses of action:

                    (1)  To procure for PRL the right to continue using such
                         work or items; or

                    (2)  To replace said item with an equal or superior
                         non-infringing Item; or

                    (3)  To modify' the work or Item so that it becomes
                         non-infringing provided such modified work or item
                         shall be equal or superior to the infringing work or
                         item.

                                        5

<PAGE>

9.-      PERMITS AND APPROVALS. PRL shall pay and be responsible for all
permits, licenses and approvals necessary to complete the Construction Work and
to comply with laws and regulations applicable to the Project, in Romania.

10.-     EXPRESS PLANT PERFORMANCE GUARANTY AND LIMITED MECHANICAL
WARRANTY

                  (1) Plant Performance Guaranty.- Ex-Klar warrants and
guarantees that the Project will perform as specified in the Testing Protocols
(the "Plant Performance Guaranty"). This Guaranty is conditioned upon (i) the
Components and other materials and equipment with respect to the Construction
Work being applied, installed, connected, erected, used, cleaned and conditioned
in accordance with the Specifications and with instructions of the applicable
manufacturer, fabricator or processors. relayed to PRL by Ex-Klar in writing.
(ii) the Construction Work being done in a good workmanlike manner and In a
manner which creates an installation environment for the Components which meets
or exceeds the Specifications and instructions of the applicable manufacturer,
fabricator or processors, relayed to PRL by Ex-Klar in writing. PRL understands
and agrees that failure of these conditions terminates the Guaranty provided in
this Article.

                  PRL's sole and exclusive remedy and Ex-Klar's sole and
exclusive responsibility and liability under this Article shall be to correct
any non-performance in the Project which falls within the scope of the Guaranty
in this Article and which is reported by notice from PRL to ExKlar previous to
expiration of the Guaranty.

                  The Plant Performance Guaranty in this Article shall expire
and be null and void and of no further force and effect upon the earlier of
Successful Testing and Ex-Klar's entitlement to Final Payment hereunder.

                  (2) Limited Mechanical Warranty.- Effective with the delivery
of any given Component, Ex-Klar hereby assigns and transfers to PRL all of
Ex-Klar's rights under any mechanical warranty from any Supplier of such
Component. Ex-Klar is not an agent of any Supplier. Ex-Klar will, for a period
of two (2) years after Final Payment is due, reasonably assist -PRL in
communicating with Suppliers in order to facilitate enforcement by PR of any
such mechanical warranty; however, any expenses incurred by Ex-Klar in
connection with such enforcement shall be reimbursed by PRL within 30 days of
invoice.

11.- LIMITATION OF LIABILITY: EXCEPT FOR THE GUARANTY AND WARRANTY SET FORTH
HEREIN, EX-KLAR MAKES NO OTHER WARRANTIES OR REPRESENTATIONS, EXPRESS OR
IMPLIED, IN FACT OR IN LAW. WITH REGARD TO THE CONTRACT ITEMS OR THE PROJECT,
INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE.

         NOTWITHSTANDING THE FORM IN WHICH ANY LEGAL OR EQUITABLE ACTION MAY BE
BROUGHT AGAINST EX-KLAR, EX-KLAR'S LIABILITY TO PRL UNDER THIS AGREEMENT SHALL
BE LIMITED TO THE 65% OF THE CONTRACT PRICE.

                                        6

<PAGE>

         IN NO EVENT SHALL EX-KLAR HAVE ANY FURTHER LIABILITY OF ANY KIND UNDER
THIS AGREEMENT WHETHER DIRECT OR INDIRECT, FOR ANY LOSS OR DAMAGE SUFFERED BY
PRL, PRLS EMPLOYEES, AGENTS OR INDEPENDENT CONTRACTORS AS A RESULT OF OR ARISING
OUT OF THE USE OF THE COMPONENTS OR THE PROJECT, WHETHER SUCH LOSS OR DAMAGE
ARISES FROM THE NEGLIGENCE OF EX-KLAR OR FROM ANY OTHER CAUSE.

         IN NO EVENT WILL EX-KLAR OR ITS EMPLOYEES BE LIABLE TO PRL FOR ANY
INCIDENTAL, INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES WHATSOEVER, INCLUDING,
WITHOUT LIMITATION, LOSS OF USE, REVENUE OR PROFIT, ARISING OUT OF OR OTHERWISE
RELATING TO THIS AGREEMENT OR THE USE OR PERFORMANCE OF THE COMPONENTS OR THE
PROJECT EVEN IF EX-KLAR HAS BEEN ADVISED OF OR KNEW OF THE POSSIBILITY OF SUCH
DAMAGES.

12.-     LIMITATION OF ACTION. No action, regardless of form, arising out of
this Agreement may be brought by PRL more than one (1) year after the cause of
action has accrued.

13.-     PROPRIETARY INFORMATION: NONCOMPETE.

                  The use by PRL of the Proprietary Information provided by
Ex-Klar hereunder is specifically limited to use necessary for the Construction
and operation of the Project and PRL agrees, for a period of two (2) years from
the effective date of this Agreement, that neither it nor any of its affiliates,
owners, or employees shall, directly or indirectly, OTHERWISE disclose, sell,
assign, license, exploit or use any of the Proprietary Information for any
reason, including, WITHOUT limitation, use in connection WITH the Construction
of another distillery to produce Extra Neutral Ethanol from Coin and PRL shall
return Proprietary Information to Ex-Klar upon receipt of a written request
therefor from Ex-Klar.

                  Ex-Klar agrees that from the effective date of this Agreement
until the end of the second year following the date that Final Payment is due,
neither it nor any of its affiliates or owners, shall, directly or indirectly,
sell components or technological know how to any individual or entity in
connection WITH such individual or entity's Construction within a 50 mile radius
of Transylvania, Romania of another grass-root distillery to produce Extra
Neutral Ethanol from Corn.

                  The Parties agree that the remedy at law for any breach of any
obligation under this Article will be inadequate and that in addition to any
other rights and remedies to which It may be entitled hereunder, at law or in
equity, the non-breaching Party shall be entitled to injunctive relief, and
reimbursement for all reasonable attorneys fees and other expenses incurred in
connection WITH the enforcement hereof.

                  The provisions of this section shall survive termination of
this Agreement, as long as this termination is not due to default or deed of any
of the parties.

14.- PROTECTION. PRL shall at all times safely guard and protect the Premises
and the Construction Work, including the Components from damage, injury or loss.

                                        7

<PAGE>

15.- FORCE MAJEURE: The parties will not be responsible for failure to perform
under this Agreement due to causes beyond their control, including, WITHOUT
limitation, delays on the part of suppliers of the Components, shipping delays,
Construction Work delays caused by PRL's other contractors, work stoppages,
labor disputes, strikes, fires, accidents, weather conditions, civil
disobedience, riots, rebellions, wars, acts of God, court ordered cessation of
operation, or other similar occurrences.

16.-     DEFAULT

                  In the event that any of the provisions of this Contract are
violated by a Party, the other party may, at its option and WITHOUT limiting its
other remedies at law or in equity, serve written notice upon the Party in
breach of such violation. If such Party in breach fails to remedy such violation
within 20 days after the serving of such notice, the Contract shall, at the
option of the Party giving such notice upon the expiration of said 20 days,
cease and terminate.

                  Upon such termination, Ex-Klar shall be entitled to receive
payment as provided herein for all Contract Items furnished or ordered as of the
effective date of termination and this provision shall survive termination of
this Agreement.

17.-     PENALTY DUE TO DELAYS CAUSED BY EX-KLAR

                  Ex-Klar accepts to pay the amount of US$1000.00 per day for
each day the Performance Test as defined in Exhibit E. under Testing Procedures,
is delayed for reasons directly under Ex-Klar's control, up to a maximum of
US$200,000.00. The base to determine this delay will be the Project Schedule and
its periodic updates, as defined in Exhibit C. This penalty will be deducted
from the Final Payment due to Ex-Klar according to conditions established
herein.

18.-     SUBCONTRACTORS. PRL will be fully responsible for all acts and
omissions of its subcontractors.

19.-     ACCESS. Ex-Klar and its designees shall have access to the Premises
from time to time as it deems necessary to perform its obligations hereunder.
PRL shall ensure safe access to and egress from the Premises and the
Construction Work.

20.-     ARBITRATION

                  All disputes, claims, questions under the Contract, including,
without limitation, claims relating to the validity of this Agreement are
subject to arbitration, and shall be resolved by arbitration in accordance with
the provisions, then obtaining, of the arbitration rules of the International
Arbitration Association, and this Agreement, and judgment upon the award
rendered may be entered In any court having jurisdiction over the party against
whom the award was rendered. Such arbitration shall be conducted in Paris,
France. All proceedings will be In English.

                  This Agreement remains valid during arbitration proceeding PRL
shall not delay payment hereunder during any arbitration proceedings except by
agreement with Ex-Klar.

                                        8

<PAGE>

21.-     MISCELLANEOUS

               A.- Entire Agreement. The terms and conditions of this Agreement
               (including the schedules and exhibits hereto) constitute the
               entire agreement between the parties with respect to the subject
               matter hereof and supersede any prior understandings, agreements
               or representations by or between the parties, written or oral.

               B.- Amendment. This Agreement may not be modified or amended at
               any time without the written consent of the Parties.

               C.- Notices. All notices, requests, demands, reports, statements
               or other communications (herein referred to collectively as
               "Notices") required to be given hereunder or relating to this
               Agreement shall be in writing and shall be deemed to have been
               duly given on the date of delivery if sent to such party by
               overnight courier service (such as DHL) at the following
               addresses:

               Any Party hereto may, at any time, designate a different address
               to which Notices shall be directed by providing written notice in
               the manner set forth in this Article.

               D.- Validity; Severability. In the event that any of the terms,
               conditions, covenants or agreements contained in this Agreement,
               or the application of any thereof, shall be held by a court of
               competent jurisdiction to be invalid, illegal or unenforceable,
               such term, condition, covenant or agreement shall be deemed void
               ab Initlo and shall be deemed severed from this Agreement. In
               such event, and except if such determination by a court of
               competent jurisdiction materially changes the rights, benefits
               and obligations of the Parties under this Agreement, the
               remaining provisions of this Agreement shall remain unchanged
               unaffected and unimpaired thereby and, to the extent possible,
               such remaining provisions shall be construed such that the
               purpose of this Agreement and the intent of the parties can be
               achieved in a lawful manner.

               E.- Governing Law, The laws of the State of New York, United
               States of America without giving effect to its conflict of law
               provisions, shall govern all matters pertaining to this Agreement
               (including, without limitation, the validity, Construction,
               interpretation and performance hereof).

               F.- Succession Clause, The covenants herein contained shall bind,
               and the benefits and advantages shall inure to, the respective
               heirs, executors, administrators, successors and assigns of the
               Parties hereto.

               G.- Assignment. This Agreement shall not be assignable by either
               Party, without the prior written consent of either the other
               Party.

               H.- Waiver. The waiver by any Party hereto of the breach of any
               term, covenant, agreement or condition herein contained shall not
               be deemed a waiver of any subsequent breach of the same or any
               other term, covenant, argument or condition herein, nor shall any

                                        9

<PAGE>

               custom, practice or course of dealings arising among the Parties
               hereto in the administration hereof be construed as a waiver or
               diminution of the right of any Party hereto to insist upon the
               strict performance by any other Party of the terms, covenants,
               agreement and conditions herein contained.

               I.- Number. In this Agreement, where applicable, references to
               the singular shall include the plural and references to the
               plural shall include the singular.

               J.- Gender. In this Agreement, where applicable, references to
               the male, female or neuter gender shall include references to all
               other such genders where the context so requires.

               K.- Headings. The subject headings of the Articles, Sections and
               Subsections of this Agreement are included for purposes of
               convenience and reference only, and shall not affect the
               Construction or interpretation of any of its provisions.

                                       Perfect Renaissance, S.R.L.

                                       By: ______________________________
                                       Its

                                       Ex-Klar Technologies, Inc.

                                       By: ______________________________
                                       Its President

                                                        10

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