Document:

clesb-2083007ex1014.htm

    Exhibit
      10.10

    
 

    EMPLOYMENT
      AGREEMENT

    

    This
      EMPLOYMENT AGREEMENT is made and entered into as of the date last written below,
      between CLEANTECH BIOFUELS,  INC., a Delaware corporation (the
“Company”), and  Edward P. Hennessey, Jr.
      (the “Employee”).

    

    WHEREAS,
      the Company desires to retain the services of Employee as Chief Executive
      Officer, and Employee desires to be employed by the Company as Chief Executive
      Officer, upon the terms and conditions hereinafter set forth; and

    

    WHEREAS,
      as an integral part of this Agreement, the Company desires to obtain Employee’s
      covenant not to compete and other covenants, and Employee desires to make a
      covenant not to compete and such other covenants as hereinafter set
      forth.

    

    NOW,
      THEREFORE, in consideration of the premises and agreements herein
      contained, and other good and valuable consideration, the receipt and adequacy
      of which are hereby forever acknowledged and confessed, the parties agree as
      follows:

    

    1.           Employment.
      The Company hereby employs Employee, and Employee hereby accepts such
      employment by the Company, upon the terms and conditions specified herein for
      the Term of Employment (as hereinafter defined).

    

    2.           Duties
      of Employee.  During the Term of Employment,
      Employee is hereby employed as Chief Executive Officer.  Employee
      shall report directly to the Company’s Board of Directors.  In
      furtherance of the foregoing, Employee shall, subject to the direction and
      instruction of the Board of Directors:  (a) devote Employee’s full and
      entire working time, attention and energies to the Company, and will diligently
      and to the best of Employee’s ability perform all duties incident to Employee’s
      employment hereunder; (b) use Employee’s best efforts to promote the interests
      of the Company; and (c) perform such other duties as the Company may from time
      to time direct.

    

    3.           Financial
      Arrangements.

    

    3.1           Compensation.  As
      compensation for Employee’s services hereunder and in consideration of
      Employee’s covenant not to compete and other covenants as set forth in that
      Section of this Agreement entitled Restrictive Covenants hereof, the
      Company shall pay Employee a salary of One Dollar $84,000.00 per year, payable
      on at least a monthly basis, subject to such payroll and withholding deductions
      as may be required by law or as otherwise authorized by Employee in
      writing.  Employee’s compensation arrangement will be reviewed
      annually by the Board of Directors and may be increased, but not decreased,
      in
      the sole discretion of the Board of Directors.

    

    3.2           Bonus.
      In addition to the salary payable to Employee described in that Subsection
      of this Agreement entitled Compensation, the Company may pay Employee a
      bonus in accordance with any bonus compensation program as adopted from time
      to
      time by the Company (the “Bonus”).  The
      Company shall determine the amount of and pay the Bonus, if any, to Employee
      in
      accordance with any bonus compensation program then in effect.  The
      payment of the Bonus, if any, is subject to such payroll and withholding
      deductions as may be required by law or as otherwise authorized by Employee
      in
      writing.

    

    3.3           Expenses.  Throughout
      the term of Employee’s employment hereunder, the Company shall reimburse
      Employee for all reasonable and necessary travel, entertainment, and other
      business expenses which may be incurred in direct connection with the
      performance of Employee’s duties in accordance with policies adopted from time
      to time by the Company concerning expense reimbursement for
      employees.  Such expenses as are authorized for payment or
      reimbursement shall be paid for by the Company or reimbursed to Employee upon
      presentation to the Company of an itemized expense statement with respect
      thereto.

    

    3.4           Fringe
      Benefits.  Employee shall be eligible to participate with other
      employees of the Company, so long as Employee meets the applicable eligibility
      requirements, in such employee fringe benefits as may be authorized and adopted
      from time to time by the Board of Directors of the Company, including but not
      limited to the Company’s 2007 Stock Option Plan.  Employee shall be
      entitled to three weeks paid vacation per year.

    

    3.5           Stock
      Options.   Employee shall be granted an option to purchase
      2,250,000 shares of the Company’s common stock pursuant to the terms of the
      Option Agreement attached hereto as Exhibit A (the “Option”).  Upon the
      Commissioning of the Pilot Plant (as defined herein), Employee shall be granted
      an option to acquire and additional 1,200,000 shares of common stock of the
      Company  (adjusted for splits, recapitalizations and similar events as set
      forth in the CleanTech Biofuels, Inc 2007 Stock Option Plan (the “Option Plan”))
      (the “Additional Option”).  The Additional Option shall be exercisable
      one-third on August 31 of each of 2009, 2010, and 2011 at  an exercise
      price equal to $0.15 per share at the time of issuance of the option; provided
      that if the Compensation Committee of the Company, in its discretion and
      consistent with its Charter, determines that changing events or additional
      developments with respect to the Company’s business necessitate establishing a
      new basis for the grant of the Additional Option, this Agreement may be amended
      in writing to provide for such change by mutual consent of the Company and
      Employee. 

    

    For
      purposes of this Agreement, “Commissioning of the Pilot Plant” shall mean the
      completion of construction and commencement of operation of a plant (regardless
      of size) that utilizes the technology licensed by the Company from Brelsford
      Engineering, Inc. to process cellulosic material into water containing sugar
      in
      limited small batches. 

    

    4.           Definitions.

    

    4.1           As
      used herein, the term “Confidential Information” shall
      mean any information obtained at any time while Employee is or was employed
      by
      the Company which is not generally known and which is proprietary to the
      Company, including, but is not limited to, trade secrets, Inventions (as defined
      herein), information pertaining to research, computer software, development,
      techniques, engineering, purchasing, marketing, selling, accounting, licensing,
      specialized know-how, processes, discoveries, products, equipment, models,
      prototypes, devices, computer programs, lists of employees, mailing lists,
      details of contracts, cost systems, pricing policies, operational methods,
      marketing plans, business acquisition plans, customer lists, the particular
      needs and requirements of customers, and the identity of customers and potential
      customers.  All information designated or treated as Confidential
      Information or as a trade secret by the Company shall, regardless of its source,
      be deemed Confidential Information for all purposes.

    

    4.2           As
      used herein, the term “Inventions” shall mean all
      ideas, discoveries, and improvements, whether or not shown or described in
      writing or reduced to practice or use, and whether or not patentable, relating
      in any manner to any of the Company’s present or future products, computer
      software, services, manufacturing, or research.

    

    5.           Restrictive
      Covenants.

    

    5.1           Non-Disclosure.
      Employee represents and warrants that Employee is free of any contractual
      restrictions and restraints in entering this Agreement, and has not, and will
      not, in connection with his or her employment with the Company divulge any
      confidential information, trade secrets, or copyright-protected information
      of
      any prior employer or of any other third party to whom Employee owes an
      obligation of confidentiality.

    

    Employee
      recognizes Employee’s responsibility to protect all of the Company’s
      Confidential Information and agrees to use his or her best efforts and to
      exercise utmost diligence to protect and guard the Confidential Information
      of
      the Company and any subsidiaries or affiliated companies.  Employee
      agrees to hold in strictest and total confidence all Confidential
      Information.  Employee will at no time, without prior written
      authorization by the Company, disclose or in any way transfer or communicate,
      or
      use for the benefit of any person or entity other than the Company, any
      Confidential Information.

    

    5.2           Return
      of Confidential Information. Upon termination of employment with the
      Company or at any other time upon the Company’s request, Employee shall promptly
      return to the Company all originals and all copies (including photocopies,
      facsimiles, and computer or other means of electronic storage) of all materials
      relating in any way to Confidential Information or the business of the Company
      or any affiliated companies and subsidiaries of the Company, and will so
      represent to the Company upon termination of employment.

    

    5.3           Work
      Product.  Employee shall promptly and fully disclose to the
      Company and Employee shall hold in trust for the Company’s sole right and
      benefit any Invention that Employee makes, conceives, or reduces to practice,
      or
      causes to be made, conceived, or reduced to practice during the period when
      Employee is or was employed with the Company; provided, however, that this
      disclosure obligation shall only be applicable to those Inventions that relate
      in any manner to subject matter pertaining to Employee’s employment, or that
      relate in any manner or are directly or indirectly connected with the business,
      services, products, projects, or Confidential Information of the Company, or
      that involve in any manner the use of any time, material, or facilities of
      the
      Company, or services of any of the Company’s employees during normal working
      hours.

    

    All
      items, including without limitation software, specifications, drawings, samples,
      tools, technical information, or data, regardless of format or medium, prepared
      or originated by or for Employee specifically for the Company at the Company’s
      request in connection with his or her employment shall be the exclusive property
      of the Company and shall be deemed to be works for hire, and to the extent
      they
      may not be works for hire, Employee assigns to the Company all rights, title,
      and interest in and to such items (“Work Product”),
      including rights to copyright.  Employee hereby assigns to the Company
      all of Employee’s right, title and interest in and to all Work Product and
      Inventions that are subject to the disclosure obligations hereof and hereby
      agrees, upon the Company’s request, to execute, verify, and deliver to the
      Company documents including, but not limited to, assignments and applications
      for Letters of Patent, and to perform such other acts, including, but not
      limited to, appearing as a witness in any action brought in connection with
      this
      Agreement, that is deemed reasonably necessary or appropriate by the Company
      to
      allow it to obtain the sole right, title, interest and benefit of all such
      Work
      Product and Inventions.

    

    The
      assignment of Work Product and Inventions herein and Employee’s agreements in
      connection therewith shall not apply to any Invention for which: (i) no
      equipment, supplies, facilities, or Confidential Information of the Company
      or
      services of any of the Company’s employees during normal working hours was used;
      (ii) was developed entirely on Employee’s own time; (iii) does not relate to (a)
      the business of the Company or (b) the Company’s actual or demonstratively
      anticipated research or development; and (iv) which does not result
      from any work performed by Employee for the Company.

    

    5.4           Competition.  Employee
      recognizes that the Company’s entering into this Agreement is induced primarily
      because of the covenants and assurances made by Employee, that Employee’s
      covenant not to compete is necessary to insure that continuation of the business
      of the Company and its subsidiaries and/or affiliates, and that irreparable
      harm
      and damage will be done to the Company and its subsidiaries and/or affiliates
      in
      the event that Employee competes with the Company or its subsidiaries and/or
      affiliates.

    

    During
      the Term of Employment (as defined below) and for a period of 1 year thereafter,
      Employee shall not, directly or indirectly, enter into or participate (whether
      as owner, partner, shareholder, officer, director, salesman, consultant,
      employee, principal or in any other relationship or capacity) in any business,
      operating or providing services within the United States which is in direct
      competition with the Company or its subsidiaries and/or affiliates, including
      without limitation, any business which competes directly with the Company’s
      business as being conducted at such time.

    

    Company
      and Employee understand and agree that the scope and duration of the covenants
      contained in this Section of this Agreement entitled Restrictive
      Covenants are reasonable both in time and geographical area and are fairly
      necessary to protect the Company’s legitimate business
      interests.  Such covenants shall survive the termination of Employee’s
      employment except as otherwise provided herein.  The parties further
      agree that such covenants shall be regarded as divisible and shall be operative
      as to time and geographical area to the extent that they may be made so and,
      if
      any part of such covenants is declared invalid or unenforceable, the validity
      and enforceability of the remainder shall not be affected.  Employee
      hereby warrants to Company that Employee’s compliance with each of the
      restrictive covenants set forth in this Agreement will not, upon the termination
      of Employee’s employment with the Company for any reason whatsoever, cause
      Employee to be unable to earn a living that is suitable and acceptable to
      Employee.

    

    5.5           Non-Solicitation.
      Because the Company’s employees are a valuable resource the loss of whom could
      cause significant harm to the Company’s business, Employee agrees that during
      the term of Employee’s employment with the Company, and for a period of 1 year
      thereafter, Employee will not be materially involved in any manner in the
      recruitment or hiring or any attempt to recruit or hire as an employee, officer,
      director, consultant, or advisor any person who is at the time or 12 months
      prior thereto had been an employee or consultant of the Company.

    

    5.6           Non-Disparagement.  Employee
      shall not disparage the business reputation of the Company (or its management
      team) or take any actions that are harmful to the Company’s goodwill with its
      customers, shareholders, providers, vendors, employees, the media or the
      public.

    

    5.7           Enforcement.  Company
      spends considerable amounts of time, money and effort in developing and
      maintaining good will in its industry.  Employee agrees the covenants
      set forth in the Section of this Agreement entitled Restrictive
      Covenants:  (i) are reasonable and necessary in all respects to
      protect the goodwill, trade secrets, confidential information, and business
      interests of Company; (ii) are not oppressive to Employee; and (iii) do not
      impose any greater restraint on Employee than is reasonably necessary to protect
      the goodwill, trade secrets, confidential information and legitimate business
      interests of Company.

    

    Without
      limiting other possible remedies to the Company for the breach of this
      Agreement, Employee agrees that injunctive or other equitable relief shall
      be
      available to enforce the covenants set forth in this Section of this Agreement
      entitled Restrictive Covenants, such relief to be without the necessity
      of posting a bond, cash or otherwise.   Employee further agrees
      that if any restriction contained in the Section of this Agreement entitled
      Restrictive Covenants is held by any court to be unenforceable or
      unreasonable, a lesser restriction shall be severable therefrom and be enforced
      in its place, and all remaining restrictions contained herein shall be enforced
      independently of each other.

    

    If
      any
      party shall commence a proceeding (whether in arbitration or in court) against
      the other to enforce and/or recover damages for breach of this Agreement, the
      prevailing party in such proceeding shall be entitled to recover from the other
      party all reasonable costs and expenses of enforcement and collection of any
      and
      all remedies and damages, or all reasonable costs and expenses of defense,
      as
      the case may be.  The foregoing costs and expenses shall include
      reasonable attorneys’ fees.

    

    6.           Term
      and Termination of Agreement.

    

    6.1           Term
      of Employment.  The term of this Agreement (the “Term
      of Employment”) shall commence effective as of the date hereof
      (the “Commencement Date”), and shall continue until
      the third anniversary of the Commencement Date, unless extended or earlier
      terminated as hereinafter provided.  This Agreement shall be
      automatically extended for successive 1 year periods at the end of the initial
      term and each extended term thereafter, subject to the termination provisions
      in
      Section 6.2 hereof.

    

    6.2           Termination.  Notwithstanding
      any other provision of this Subsection of this Agreement entitled
Termination, Employee’s obligations pursuant to that Section of this
      Agreement entitled Restrictive Covenants shall continue in full force
      and effect after termination of Employee’s employment or expiration of this
      Agreement.

    

    (a)           Death.  Employee’s
      employment hereunder shall terminate immediately upon death.

    

    (b)           For
      Cause. The Company may terminate Employee’s employment hereunder at any
      time, effective immediately upon written notice, for cause.  For the
      purpose of this Agreement “cause” shall
      mean:

    

    i.           The
      willful and continued failure by Employee to substantially perform Employee’s
      duties hereunder other than any such failure resulting from Employee’s
      incapacity due to physical or mental illness or resulting from a diminution
      of
      Employee’s duties following a Change of Control (as defined below);

    

    ii.           The
      willful engaging by Employee in conduct which is demonstrably and materially
      injurious to the Company, monetarily or otherwise;

    

    iii.           Actions
      of Employee which constitute a breach of that Section of this Agreement entitled
      Restrictive Covenants; or

    

    iv.           Employee’s
      conviction of, or plea of nolo contendere to a felony, provided any right of
      appeal has been exercised or has lapsed.

    

    In
      the
      event that Employee is terminated for cause, the Company shall pay Employee’s
      salary through the date of termination, and shall thereafter have no further
      obligation to Employee.  For purposes of this Subsection of this
      Agreement entitled Termination, no act, or failure to act, on the part
      of the Employee shall be deemed “willful” unless done,
      or omitted to be done, by the Employee without good faith and without reasonable
      belief that the action or omission was in the best interest of the
      Company.

    

    (c)           For
      Change of Control.  For purposes of this Agreement, a
“Change of Control” shall mean and be deemed to have
      occurred if:

    

    i.           The
      acquisition by any person, entity or “group” within the meaning of Section 13(d)
      or 14(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), other than a person, entity or
“group” that includes Employee, of beneficial ownership
      (within the meaning of
      Rule 13d-3 promulgated under the Exchange Act) of two-thirds or more of the
      Company’s then outstanding voting securities; or

    

    ii.           If
      the individuals who serve on the Board of Directors as of the Commencement
      Date
      (the “Incumbent Board”) cease for any reason to
      constitute at least a majority of the Board of Directors; provided, however,
      any
      person who becomes a director subsequent to the Commencement Date, whose
      election or nomination for election was approved by a vote of at least a
      majority of the directors then constituting the Incumbent Board, shall for
      purposes of this Agreement be considered a member of the Incumbent Board;
      or

    

    iii.           Approval
      by the Company’s equity holders of (A) a merger, reorganization or consolidation
      whereby the Company’s equity holders immediately prior to such approval do not,
      immediately after consummation of such reorganization, merger or consolidation
      own more than 50% of the combined voting power of the surviving entity’s then
      outstanding voting securities entitled to vote generally in the election of
      directors; or (B) the sale of all or substantially all of the assets of the
      Company.

    

    Notwithstanding
      anything to the
      contrary herein, a Change of Control shall not be deemed to have occurred if
      the
      Company sells substantially all of its assets for less than the amount of
      capital (whether in cash or other property) contributed by shareholders to
      the
      Company.

    

    For
      purposes of this Agreement,
“Change of Control Date” shall mean the date of the
      Change of Control.  If a Change of Control occurs and if the
      Employee’s employment with the Company is terminated prior to the date on which
      the Change of Control occurs, and if it is reasonably demonstrated by Employee
      that such termination of employment:  (i) was at the request of a
      third party who has taken steps reasonably calculated to effect a Change of
      Control, or (ii) otherwise arose in connection with or anticipation of a Change
      of Control, then for all purposes of this Agreement, “Change of Control Date”
shall mean the date immediately prior to the date of such termination of
      employment, and a Change of Control shall be deemed to have occurred on the
      Change of Control Date.

    

    Following
      a Change of Control Date, if:  (i) Employee is terminated without
      cause, or (ii) Employee terminates his employment subsequent to the Company
      assigning Employee duties which are inconsistent with Employee’s position
      (including status, offices, titles, or reporting requirements), or the Company
      takes action which results in a material dimunition of Employee’s position,
      authority, duties, or responsibilities, then the Company shall be obligated
      to
      pay to Employee as severance pay an amount equal to Employee’s salary in effect
      upon said termination for the next twelve consecutive months, payable
      periodically at the same payroll cycle as the Company’s other
      employees.

    

    (d)           Long-Term
      Disability.  Employee’s employment hereunder shall terminate
      immediately should Employee commence a Long-Term Disability, as hereinafter
      defined.  Employee shall have commenced a “Long-Term
      Disability” if: (i) Employee cannot perform the essential
      functions of his employment position, with or without a reasonable accommodation
      for his disability; or (ii) Employee cannot perform the essential functions
      of
      his employment position without an accommodation that would be an undue hardship
      for the Company to provide.  The foregoing definition of Long-Term
      Disability is not intended to and shall not affect the definition of
“disability” or any similar term in any insurance policy the Company may
      provide.

    

    (e)           Without
      Cause.  Employee’s employment hereunder may be terminated by the
      Company at any time, effective upon written notice of termination.  In
      the event that Employee is terminated without cause, the Company shall pay
      Employee’s salary through the date of termination, and then the Company shall be
      obligated to pay to Employee as severance pay an amount equal to Employee’s
      salary in effect upon said termination for the next twelve consecutive months,
      payable periodically at the same payroll cycle as the Company’s other
      employees.

    

    (f)           By
      Employee.  Employee may terminate this Agreement for Good reason
      upon providing Company with 15 days’ written notice and without Good Reason on
      90 days written notice.

    

    i.           Termination
      by Employee with Good Reason.  The Employee may terminate his
      employment for Good Reason (as defined herein) at any time during the term
      of
      this Agreement, by giving written notice to the Company thereof.  Such
      termination shall become effective immediately upon notice.  In the
      event that Employee terminates his employment for Good Reason, the Company
      shall
      pay Employee his Base Salary (as in effect on the date of termination and
      excluding any bonus payment) for a period of twelve (12) months following the
      date of such termination.  Employee shall execute a release in favor
      of Company, and the Company shall have no further obligations to the Employee
      under this Agreement except as otherwise may be provided under the Stock Option
      Plan or any Option Agreement between Company and Employee.

    

    ii.           Termination
      by Employee without Good Reason.  The Employee may terminate his
      employment at any time, by giving advance written notice to the Company. Any
      such termination shall become effective on the date specified in such notice,
      which shall not be earlier than ninety (90) days after the date of such notice
      (or such earlier date that the Company may determine in its sole discretion),
      and the Employee shall continue to perform his duties pursuant to the terms
      of
      this Agreement for such period. In the event that Employee  terminates
      his employment without Good Reason, the Company shall pay Employee’s salary
      through the date of termination, and shall thereafter have no further obligation
      to Employee.

    

    iii.           For
      purposes of this Agreement, “Good Reason” shall mean, without Employee’s consent
      (A) a reduction by the Company in Employee’s Base Salary pursuant to the terms
      of this Agreement; (B) requiring Employee to relocate more than 50 miles from
      St. Louis, Missouri; (C) the failure of Company to permit Employee to
      participate in Company’s benefit plans on a basis consistent with other Company
      employees holding similar positions as that of Employee; or (D) the failure
      by
      Company to obtain the assumption of this Agreement by any successor of
      Company.

    

    7.           Additional
      Provisions.

    

    7.1           Notices.  Any
      notice, demand, or communication required, permitted, or desired to be given
      hereunder, shall be deemed effectively given when personally delivered or when
      mailed by prepaid, certified mail, return receipt requested, addressed as
      follows:

    

    Employee                                                                Company

    

    

    

    

    or
      to
      such other address, and to the attention of such other person(s) or officer(s)
      as either party may designate by written notice.

    

    7.2           Governing
      Law.  This Agreement has been executed and delivered in, and
      shall be interpreted, construed, and enforced pursuant to and in accordance
      with
      the laws of Missouri, without reference to conflict of laws rules or
      principles.

    

    7.3           Assignment.  This
      Agreement and the rights and obligations hereunder shall bind and inure to
      the
      benefit of any successor or successors of the Company by way of reorganization,
      merger or consolidation, and any assignee of all or substantially all of its
      business and properties, but, except as to any such successor or assignee of
      the
      Company, neither this Agreement nor any rights or benefits hereunder may be
      assigned by either party.

    

    7.4           Waiver
      of Breach.  The waiver by either party of a breach or violation
      of any provision of this Agreement shall not operate as, or be construed to
      be,
      a waiver of any subsequent breach of the same or other provision
      hereof.

    

    7.5           Headings;
      Gender and Number.  The headings contained in this Agreement are
      for reference purposes only and shall not affect in any way the meaning or
      interpretation of this Agreement.  Whenever the context hereof
      requires, the gender of all words shall include the masculine, feminine and
      neuter, and the number of all words shall include the singular and
      plural.

    

    7.6           Additional
      Assurances.  The provisions of this Agreement shall be
      self-operative and shall not require further agreement by the parties except
      as
      may be herein specifically provided to the contrary; provided, however, at
      the
      request of the Company, Employee shall execute such additional instruments
      and
      take such additional acts as the Company may deem necessary to effectuate this
      Agreement.

    

    7.7           Severability.  In
      the event any provision of this Agreement is held to be unenforceable for any
      reason, the unenforceability thereof shall not effect the remainder of this
      Agreement, which shall remain in full force and effect and enforceable in
      accordance with its terms.

    

    7.8           Entire
      Agreement.  This Employment Agreement supersedes all previous
      agreements, and constitutes the entire Agreement between
      parties.  Employee shall be entitled to no other benefits than those
      specified herein.  No oral statements or prior written material not
      specifically incorporated herein shall be of any force and effect, and no
      changes in or additions to this Agreement shall be recognized unless
      incorporated herein by amendment as provided herein, such amendment(s) to become
      effective on the date stipulated therein.  Employee specifically
      acknowledges that in entering into and executing this Agreement, Employee relies
      solely upon the representations and agreements contained in this Agreement
      and
      no others.

    

    REMAINDER
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    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the
      ______ day of _______________, 2007.

    

    
      	 	
              COMPANY:

            	
              CLEANTECH
                BIOFUELS, INC.

            
	 	 	 
	 	 	 
	 	 	
              By

            	 
	 	 	 	 
	 	 	 
	 	 	 
	 	
              EMPLOYEE:

            	 
	 	 	
              Edward
                P. Hennessey, Jr.cleb-2083007ex1010.htm

    Exhibit
      10.11

    EMPLOYMENT
      AGREEMENT

    

    This
      EMPLOYMENT AGREEMENT is made and entered into as of the date last written below,
      between CLEANTECH BIOFUELS,  INC., a Delaware corporation (the
“Company”), and  Tom Jennewein (the
“Employee”).

    

    WHEREAS,
      the Company desires to retain the services of Employee as Chief Financial
      Officer, and Employee desires to be employed by the Company as Chief Financial
      Officer, upon the terms and conditions hereinafter set forth; and

    

    WHEREAS,
      as an integral part of this Agreement, the Company desires to obtain Employee’s
      covenant not to compete and other covenants, and Employee desires to make a
      covenant not to compete and such other covenants as hereinafter set
      forth.

    

    NOW,
      THEREFORE, in consideration of the premises and agreements herein
      contained, and other good and valuable consideration, the receipt and adequacy
      of which are hereby forever acknowledged and confessed, the parties agree as
      follows:

    

    1.           Employment.
      The Company hereby employs Employee, and Employee hereby accepts such
      employment by the Company, upon the terms and conditions specified herein for
      the Term of Employment (as hereinafter defined).

    

    2.           Duties
      of Employee.  During the Term of Employment,
      Employee is hereby employed as Chief Financial Officer.  Employee
      shall report directly to the Company’s Chief Executive Officer.  In
      furtherance of the foregoing, Employee shall, subject to the direction and
      instruction of the Company:  (a) devote Employee’s full and entire
      working time, attention and energies to the Company, and will diligently and
      to
      the best of employee’s ability perform all duties incident to Employee’s
      employment hereunder; (b) use Employee’s best efforts to promote the interests
      of the Company; and (c) perform such other duties as the Company may from time
      to time direct.

    

    3.           Financial
      Arrangements.

    

    3.1           Compensation.  As
      compensation for Employee’s services hereunder and in consideration of
      Employee’s covenant not to compete and other covenants as set forth in that
      Section of this Agreement entitled Restrictive Covenants hereof, the
      Company shall pay Employee a salary of One Dollar $1.00 per year, payable on
      at
      least a annual basis, subject to such payroll and withholding deductions as
      may
      be required by law or as otherwise authorized by Employee in
      writing.  Employee’s compensation arrangement will be reviewed
      annually by the Board of Directors and may be increased, but not decreased,
      in
      the sole discretion of the Board of Directors.

    

    3.2           Bonus.
      In addition to the salary payable to Employee described in that Subsection
      of this Agreement entitled Compensation, the Company may pay Employee a
      bonus in accordance with any bonus compensation program as adopted from time
      to
      time by the Company (the “Bonus”).  The
      Company shall determine the amount of and pay the Bonus, if any, to Employee
      in
      accordance with any bonus compensation program then in effect.  The
      payment of the Bonus, if any, is subject to such payroll and withholding
      deductions as may be required by law or as otherwise authorized by Employee
      in
      writing.

    

    3.3           Expenses.  Throughout
      the term of Employee’s employment hereunder, the Company shall reimburse
      Employee for all reasonable and necessary travel, entertainment, and other
      business expenses which may be incurred in direct connection with the
      performance of Employee’s duties in accordance with policies adopted from time
      to time by the Company concerning expense reimbursement for
      employees.  Such expenses as are authorized for payment or
      reimbursement shall be paid for by the Company or reimbursed to Employee upon
      presentation to the Company of an itemized expense statement with respect
      thereto.

    

    3.4           Fringe
      Benefits.  Employee shall be eligible to participate with other
      employees of the Company, so long as Employee meets the applicable eligibility
      requirements, in such employee fringe benefits as may be authorized and adopted
      from time to time by the Board of Directors of the Company, including but not
      limited to the Company’s 2007 Stock Option Plan.  Employee shall be
      entitled to three weeks paid vacation per year.

    

    4.           Definitions.

    

    4.1           As
      used herein, the term “Confidential Information” shall
      mean any information obtained at any time while Employee is or was employed
      by
      the Company which is not generally known and which is proprietary to the
      Company, including, but is not limited to, trade secrets, Inventions (as defined
      herein), information pertaining to research, computer software, development,
      techniques, engineering, purchasing, marketing, selling, accounting, licensing,
      specialized know-how, processes, discoveries, products, equipment, models,
      prototypes, devices, computer programs, lists of employees, mailing lists,
      details of contracts, cost systems, pricing policies, operational methods,
      marketing plans, business acquisition plans, customer lists, the particular
      needs and requirements of customers, and the identity of customers and potential
      customers.  All information designated or treated as Confidential
      Information or as a trade secret by the Company shall, regardless of its source,
      be deemed Confidential Information for all purposes.

    

    4.2           As
      used herein, the term “Inventions” shall mean all
      ideas, discoveries, and improvements, whether or not shown or described in
      writing or reduced to practice or use, and whether or not patentable, relating
      in any manner to any of the Company’s present or future products, computer
      software, services, manufacturing, or research.

    

    5.           Restrictive
      Covenants.

    

    5.1           Non-Disclosure.
      Employee represents and warrants that Employee is free of any contractual
      restrictions and restraints in entering this Agreement, and has not, and will
      not, in connection with his or her employment with the Company divulge any
      confidential information, trade secrets, or copyright-protected information
      of
      any prior employer or of any other third party to whom Employee owes an
      obligation of confidentiality.

    

    Employee
      recognizes Employee’s responsibility to protect all of the Company’s
      Confidential Information and agrees to use his or her best efforts and to
      exercise utmost diligence to protect and guard the Confidential Information
      of
      the Company and any subsidiaries or affiliated companies.  Employee
      agrees to hold in strictest and total confidence all Confidential
      Information.  Employee will at no time, without prior written
      authorization by the Company, disclose or in any way transfer or communicate,
      or
      use for the benefit of any person or entity other than the Company, any
      Confidential Information.

    

    5.2           Return
      of Confidential Information. Upon termination of employment with the
      Company or at any other time upon the Company’s request, Employee shall promptly
      return to the Company all originals and all copies (including photocopies,
      facsimiles, and computer or other means of electronic storage) of all materials
      relating in any way to Confidential Information or the business of the Company
      or any affiliated companies and subsidiaries of the Company, and will so
      represent to the Company upon termination of employment.

    

    5.3           Work
      Product.  Employee shall promptly and fully disclose to the
      Company and Employee shall hold in trust for the Company’s sole right and
      benefit any Invention that Employee makes, conceives, or reduces to practice,
      or
      causes to be made, conceived, or reduced to practice during the period when
      Employee is or was employed with the Company; provided, however, that this
      disclosure obligation shall only be applicable to those Inventions that relate
      in any manner to subject matter pertaining to Employee’s employment, or that
      relate in any manner or are directly or indirectly connected with the business,
      services, products, projects, or Confidential Information of the Company, or
      that involve in any manner the use of any time, material, or facilities of
      the
      Company, or services of any of the Company’s Employees during normal working
      hours.

    

    All
      items, including without limitation software, specifications, drawings, samples,
      tools, technical information, or data, regardless of format or medium, prepared
      or originated by or for Employee specifically for the Company at the Company’s
      request in connection with his or her employment shall be the exclusive property
      of the Company and shall be deemed to be works for hire, and to the extent
      they
      may not be works for hire, Employee assigns to the Company all rights, title,
      and interest in and to such items (“Work Product”),
      including rights to copyright.  Employee hereby assigns to the Company
      all of Employee’s right, title and interest in and to all Work Product and
      Inventions that are subject to the disclosure obligations hereof and hereby
      agrees, upon the Company’s request, to execute, verify, and deliver to the
      Company documents including, but not limited to, assignments and applications
      for Letters of Patent, and to perform such other acts, including, but not
      limited to, appearing as a witness in any action brought in connection with
      this
      Agreement, that is deemed reasonably necessary or appropriate by the Company
      to
      allow it to obtain the sole right, title, interest and benefit of all such
      Work
      Product and Inventions.

    

    The
      assignment of Work Product and Inventions herein and Employee’s agreements in
      connection therewith shall not apply to any Invention for which: (i) no
      equipment, supplies, facilities, or Confidential Information of the Company
      or
      services of any of the Company’s Employees during normal working hours was used;
      (ii) was developed entirely on Employee’s own time; (iii) does not relate to (a)
      the business of the Company or (b) the Company’s actual or demonstratively
      anticipated research or development; and (iv) which does not result
      from any work performed by Employee for the Company.

    

    5.4           Competition.  Employee
      recognizes that the Company’s entering into this Agreement is induced primarily
      because of the covenants and assurances made by Employee, that Employee’s
      covenant not to compete is necessary to insure that continuation of the business
      of the Company and its subsidiaries and/or affiliates, and that irreparable
      harm
      and damage will be done to the Company and its subsidiaries and/or affiliates
      in
      the event that Employee competes with the Company or its subsidiaries and/or
      affiliates.

    

    During
      the Term of Employment (as defined below) and for a period of 1 year thereafter,
      Employee shall not, directly or indirectly, enter into or participate (whether
      as owner, partner, shareholder, officer, director, salesman, consultant,
      employee, principal or in any other relationship or capacity) in any business,
      operating or providing services within the United States which is in direct
      competition with the Company or its subsidiaries and/or affiliates, including
      without limitation, any business which competes directly with the Company’s
      business as being conducted at such time.

    

    Company
      and Employee understand and agree that the scope and duration of the covenants
      contained in this Section of this Agreement entitled Restrictive
      Covenants are reasonable both in time and geographical area and are fairly
      necessary to protect the Company’s legitimate business
      interests.  Such covenants shall survive the termination of Employee’s
      employment except as otherwise provided herein.  The parties further
      agree that such covenants shall be regarded as divisible and shall be operative
      as to time and geographical area to the extent that they may be made so and,
      if
      any part of such covenants is declared invalid or unenforceable, the validity
      and enforceability of the remainder shall not be affected.  Employee
      hereby warrants to Company that Employee’s compliance with each of the
      restrictive covenants set forth in this Agreement will not, upon the
      termination, of Employee’s employment with the Company for any reason
      whatsoever, cause Employee to be unable to earn a living that is suitable and
      acceptable to Employee.

    

    5.5           Non-Solicitation.
      Because the Company’s Employees are a valuable resource the loss of whom could
      cause significant harm to the Company’s business, Employee agrees that during
      the term of Employee’s employment with the Company, and for a period of 1 year
      thereafter, Employee will not be materially involved in any manner in the
      recruitment or hiring or any attempt to recruit or hire as an employee, officer,
      director, consultant, or advisor any person who is at the time or 12 months
      prior thereto had been an Employee or consultant of the Company.

    

    5.6           Non-Disparagement.  Employee
      shall not disparage the business reputation of the Company (or its management
      team) or take any actions that are harmful to the Company’s goodwill with its
      customers, content providers, network infrastructure providers, vendors,
      employees, the media or the public.

    

    5.7           Enforcement.  Company
      spends considerable amounts of time, money and effort in developing and
      maintaining good will in its industry.  Employee agrees the covenants
      set forth in the Section of this Agreement entitled Restrictive
      Covenants:  (i) are reasonable and necessary in all respects to
      protect the goodwill, trade secrets, confidential information, and business
      interests of Company; (ii) are not oppressive to Employee; and (iii) do not
      impose any greater restraint on Employee than is reasonably necessary to protect
      the goodwill, trade secrets, confidential information and legitimate business
      interests of Company.

    

    Without
      limiting other possible remedies to the Company for the breach of this
      Agreement, Employee agrees that injunctive or other equitable relief shall
      be
      available to enforce the covenants set forth in this Section of this Agreement
      entitled Restrictive Covenants, such relief to be without the necessity
      of posting a bond, cash or otherwise.   Employee further agrees
      that if any restriction contained in the Section of this Agreement entitled
      Restrictive Covenants is held by any court to be unenforceable or
      unreasonable, a lesser restriction shall be severable therefrom and be enforced
      in its place, and all remaining restrictions contained herein shall be enforced
      independently of each other.

    

    If
      any
      party shall commence a proceeding (whether in arbitration or in court) against
      the other to enforce and/or recover damages for breach of this Agreement, the
      prevailing party in such proceeding shall be entitled to recover from the other
      party all reasonable costs and expenses of enforcement and collection of any
      and
      all remedies and damages, or all reasonable costs and expenses of defense,
      as
      the case may be.  The foregoing costs and expenses shall include
      reasonable attorneys’ fees.

    

    6.           Term
      and Termination of Agreement.

    

    6.1           Term
      of Employment.  The term of this Agreement (the “Term
      of Employment”) shall commence effective as of the date hereof
      (the “Commencement Date”), and shall continue until
      the third anniversary of the Commencement Date, unless extended or earlier
      terminated as hereinafter provided.  This Agreement shall be
      automatically extended for successive 1 year periods at the end of the initial
      term and each extended term thereafter, subject to the termination provisions
      in
      Section 6.2 hereof.

    

    6.2           Termination.  Notwithstanding
      any other provision of this Subsection of this Agreement entitled
Termination, Employee’s obligations pursuant to that Section of this
      Agreement entitled Restrictive Covenants shall continue in full force
      and effect after termination of Employee’s employment or expiration of this
      Agreement.

    

    (a)           Death.  Employee’s
      employment hereunder shall terminate immediately upon death.

    

    (b)           For
      Cause. The Company may terminate Employee’s employment hereunder at any
      time, effective immediately upon written notice, for cause.  For the
      purpose of this Agreement “cause” shall
      mean:

    

    i.           The
      willful and continued failure by Employee to substantially perform Employee’s
      duties hereunder other than any such failure resulting from Employee’s
      incapacity due to physical or mental illness or resulting from a diminution
      of
      Employee’s duties following a Change of Control (as defined below);

    

    ii.           The
      willful engaging by Employee in conduct which is demonstrably and materially
      injurious to the Company, monetarily or otherwise;

    

    iii.           Actions
      of Employee which constitute a breach of that Section of this Agreement entitled
      Restrictive Covenants; or

    

    iv.           Employee’s
      conviction of, or plea of nolo contendere to a felony, provided any right of
      appeal has been exercised or has lapsed.

    

    In
      the
      event that Employee is terminated for cause, the Company shall pay Employee’s
      salary through the date of termination, and shall thereafter have no further
      obligation to Employee.  For purposes of this Subsection of this
      Agreement entitled Termination, no act, or failure to act, on the part
      of the Employee shall be deemed “willful” unless done,
      or omitted to be done, by the Employee without good faith and without reasonable
      belief that the action or omission was in the best interest of the
      Company.

    

    (c)           For
      Change of Control.  For purposes of this Agreement, a
“Change of Control” shall mean and be deemed to have
      occurred if:

    

    i.           The
      acquisition by any person, entity or “group” within the meaning of Section 13(d)
      or 14(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), other than a person, entity or
“group” that includes Employee, of beneficial ownership
      (within the meaning of
      Rule 13d-3 promulgated under the Exchange Act) of two-thirds or more of the
      Company’s then outstanding voting securities; or

    

    ii.           If
      the individuals who serve on the Board of Directors as of the Commencement
      Date
      (the “Incumbent Board”) cease for any reason to
      constitute at least a majority of the Board of Directors; provided, however,
      any
      person who becomes a director subsequent to the Commencement Date, whose
      election or nomination for election was approved by a vote of at least a
      majority of the directors then constituting the Incumbent Board, shall for
      purposes of this Agreement be considered a member of the Incumbent Board;
      or

    

    iii.           Approval
      by the Company’s equity holders of (A) a merger, reorganization or consolidation
      whereby the Company’s equity holders immediately prior to such approval do not,
      immediately after consummation of such reorganization, merger or consolidation
      own more than 50% of the combined voting power of the surviving entity’s then
      outstanding voting securities entitled to vote generally in the election of
      directors; or (B) the sale of all or substantially all of the assets of the
      Company.

    

    Notwithstanding
      anything to the contrary herein, a Change of Control shall not be deemed to
      have
      occurred if the Company sells substantially all of its assets for less than
      the
      amount of capital (whether in cash or other property) contributed by
      shareholders to the Company.

    

    For
      purposes of this Agreement, “Change of Control Date”
shall mean the date of the Change of Control.  If a Change of Control
      occurs and if the Employee’s employment with the Company is terminated prior to
      the date on which the Change of Control occurs, and if it is reasonably
      demonstrated by Employee that such termination of employment:  (i) was
      at the request of a third party who has taken steps reasonably calculated to
      effect a Change of Control, or (ii) otherwise arose in connection with or
      anticipation of a Change of Control, then for all purposes of this Agreement,
      “Change of Control Date” shall mean the date immediately prior to the date of
      such termination of employment, and a Change of Control shall be deemed to
      have
      occurred on the Change of Control Date.

    

    Following
      a Change of Control Date, if:  (i) Employee is terminated without
      cause, or (ii) Employee terminates his employment subsequent to the Company
      assigning Employee duties which are inconsistent with Employee’s position
      (including status, offices, titles, or reporting requirements), or the Company
      takes action which results in a material dimunition of Employee’s position,
      authority, duties, or responsibilities, then the Company shall be obligated
      to
      pay to Employee as severance pay an amount equal to Employee’s salary in effect
      upon said termination for the next twelve consecutive months, payable
      periodically at the same payroll cycle as the Company’s other
      employees.

    

    (d)           Long-Term
      Disability.  Employee’s employment hereunder shall terminate
      immediately should Employee commence a Long-Term Disability, as hereinafter
      defined.  Employee shall have commenced a “Long-Term
      Disability” if: (i) Employee cannot perform the essential
      functions of his employment position, with or without a reasonable accommodation
      for his disability; or (ii) Employee cannot perform the essential functions
      of
      his employment position without an accommodation that would be an undue hardship
      for the Company to provide.  The foregoing definition of Long-Term
      Disability is not intended to and shall not affect the definition of
“disability” or any similar term in any insurance policy the Company may
      provide.

    

    (e)           Without
      Cause.  Employee’s employment hereunder may be terminated by the
      Company at any time, effective upon written notice of termination.  In
      the event that Employee is terminated without cause, the Company shall pay
      Employee’s salary through the date of termination, and then the Company shall be
      obligated to pay to Employee as severance pay an amount equal to Employee’s
      salary in effect upon said termination for the next twelve consecutive months,
      payable periodically at the same payroll cycle as the Company’s other
      employees.

    

    (f)           By
      Employee.  Employee may terminate this Agreement upon providing
      Company with 15 days written notice.

    

    i.           Termination
      by Employee with Good Reason.  The Employee may terminate his
      employment for Good Reason (as defined herein) at any time during the term
      of
      this Agreement, by giving written notice to the Company thereof.  Such
      termination shall become effective immediately upon notice.  In the
      event that Employee terminates his employment for Good Reason, the Company
      shall
      pay Employee his Base Salary (as in effect on the date of termination and
      excluding any bonus payment) for a period of twelve (12) months following the
      date of such termination.  Employee shall execute a release in favor
      of Company, and the Company shall have no further obligations to the Employee
      under this Agreement except as otherwise may be provided under the Stock Option
      Plan or any Option Agreement between Company and Employee.

    

    ii.           Termination
      by Employee without Good Reason.  The Employee may terminate his
      employment at any time, by giving advance written notice to the Company. Any
      such termination shall become effective on the date specified in such notice,
      which shall not be earlier than ninety (90) days after the date of such notice
      (or such earlier date that the Company may determine in its sole discretion),
      and the Employee shall continue to perform his duties pursuant to the terms
      of
      this Agreement for such period. In the event that Employee  terminates
      his employment without Good Reason, the Company shall pay Employee’s salary
      through the date of termination, and shall thereafter have no further obligation
      to Employee.

    

    iii.           For
      purposes of this Agreement, “Good Reason” shall mean, without Employee’s consent
      (A) a reduction by the Company in Employee’s Base Salary pursuant to the terms
      of this Agreement; (B) requiring Employee to relocate more than 50 miles from
      St. Louis, Missouri; (C) the failure of Company to permit Employee to
      participate in Company’s benefit plans on a basis consistent with other Company
      employees holding similar positions as that of Employee; or (D) the failure
      by
      Company to obtain the assumption of this Agreement by any successor of
      Company.

    

    7.           Additional
      Provisions.

    

    7.1           Notices.  Any
      notice, demand, or communication required, permitted, or desired to be given
      hereunder, shall be deemed effectively given when personally delivered or when
      mailed by prepaid, certified mail, return receipt requested, addressed as
      follows:

    

    
      	
              Employee

            	
              Company

            
	
              ________________________

            	
              _________________________

            
	
              ________________________

            	
              _________________________

            
	
              ________________________

            	
              _________________________

            

    

    

    or
      to
      such other address, and to the attention of such other person(s) or officer(s)
      as either party may designate by written notice.

    

    7.2           Governing
      Law.  This Agreement has been executed and delivered in, and
      shall be interpreted, construed, and enforced pursuant to and in accordance
      with
      the laws of Missouri, without reference to conflict of laws rules or
      principles.

    

    7.3           Assignment.  This
      Agreement and the rights and obligations hereunder shall bind and inure to
      the
      benefit of any successor or successors of the Company by way of reorganization,
      merger or consolidation, and any assignee of all or substantially all of its
      business and properties, but, except as to any such successor or assignee of
      the
      Company, neither this Agreement nor any rights or benefits hereunder may be
      assigned by either party.

    

    7.4           Waiver
      of Breach.  The waiver by either party of a breach or violation
      of any provision of this Agreement shall not operate as, or be construed to
      be,
      a waiver of any subsequent breach of the same or other provision
      hereof.

    

    7.5           Headings;
      Gender and Number.  The headings contained in this Agreement are
      for reference purposes only and shall not affect in any way the meaning or
      interpretation of this Agreement.  Whenever the context hereof
      requires, the gender of all words shall include the masculine, feminine and
      neuter, and the number of all words shall include the singular and
      plural.

    

    7.6           Additional
      Assurances.  The provisions of this Agreement shall be
      self-operative and shall not require further agreement by the parties except
      as
      may be herein specifically provided to the contrary; provided, however, at
      the
      request of the Company, Employee shall execute such additional instruments
      and
      take such additional acts as the Company may deem necessary to effectuate this
      Agreement.

    

    7.7           Severability.  In
      the event any provision of this Agreement is held to be unenforceable for any
      reason, the unenforceability thereof shall not effect the remainder of this
      Agreement, which shall remain in full force and effect and enforceable in
      accordance with its terms.

    

    7.8           Entire
      Agreement.  This Employment Agreement supersedes all previous
      agreements, and constitutes the entire Agreement between
      parties.  Employee shall be entitled to no other benefits than those
      specified herein.  No oral statements or prior written material not
      specifically incorporated herein shall be of any force and effect, and no
      changes in or additions to this Agreement shall be recognized unless
      incorporated herein by amendment as provided herein, such amendment(s) to become
      effective on the date stipulated therein.  Employee specifically
      acknowledges that in entering into and executing this Agreement, Employee relies
      solely upon the representations and agreements contained in this Agreement
      and
      no others.

    

    REMAINDER
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    SIGNATURE
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    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the
      ______ day of _______________, 2007.

    

    
      	
              COMPANY:

            	
              CLEANTECH
                BIOFUELS, INC.

            
	 	 
	 	 
	 	 
	 	
              By

            	 
	 	 	 
	 	 	 
	 	 
	 	 
	
              EMPLOYEE:

            	
              Tom
                Jennewein

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