Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Global Energy Inc. - Exhibit 10.1

THE SYMBOL “*****” DENOTES PLACES WHERE PORTIONS
  OF THIS DOCUMENT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.
  SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

Exhibit 10.1

BUSINESS AND ROYALTY AGREEMENT

     This Business and Royalty
Agreement (this “Agreement”) is made and entered into as of the 6th
day of February, 2008, by and between Global Energy, Inc., a corporation
organized and existing under the laws of the State of Nevada (“Global”), and
Covanta Energy Corporation, a corporation organized and existing under the laws
of the State of Delaware (“Covanta”).

     WHEREAS, AlphaKat GmbH, a company
organized and existing under the laws of Germany (“AK”), owns or has certain
rights to a proprietary technology developed by Dr. Christian Koch to convert
waste material which contains hydrocarbons into diesel (as further defined
below, the “Technology”);

     WHEREAS, AK and Global formed
AlphaKat - Global Energy GmbH, a company organized and existing under the laws
of Germany (“Licensor”), to market the Technology in accordance with the
agreements entered into by AK and Global; 

     WHEREAS, Global has the right to
develop projects using the Technology in the United States and China on an
exclusive basis and in other countries, including the United Kingdom and the
Republic of Ireland, on a non-exclusive basis; and

     WHEREAS, consistent with the
terms of the License Agreement (as defined below), Covanta and Global want to
enter into an agreement whereby Global grants to Covanta such exclusive and
non-exclusive rights for the development of projects using the Technology in the
United States, China, the United Kingdom and the Republic of Ireland as and to
the extent held by Global (but without representation by Global with respect to
the nature or scope of any such rights), all on the terms and conditions set
forth herein;

     NOW, THEREFORE, in light of the
mutual premises set forth herein and other good and valuable consideration, the
receipt and the sufficiency of which are hereby acknowledged, the parties
hereto, intending to be legally bound hereby, agree as follows.

ARTICLE 1 – DEFINITIONS AND INTERPRETATION

Section 1.1 Capitalized Terms. Unless otherwise
specified herein, the following capitalized terms shall have the following
meanings:

     “Affiliate” means,
  in relation to any Person, any other Person that controls, is controlled by,
  or is in common control with, such Person. For the purpose of this definition,
  control means the direct or indirect control of fifty percent (50%) or more
  of the voting rights in such Person or the power to direct the management or
  policies of such 

Person, whether by operation of law, by contract or otherwise.
Except as shall otherwise be expressly provided in this Agreement, and for the
avoidance of any doubt, as of the Effective Date, (i) Licensor and AK are
Affiliates and (ii) Licensor and Global are Affiliates, but AK and Global are
not Affiliates.

     “Agreement” has the
meaning set forth in the first paragraph hereof.

     “AK” means AlphaKat GmbH,
a company organized and existing under the laws of Germany, and its successors
and permitted assigns.

     “Assumptions” has the
meaning set forth in Section 5.3.

     “Carve-Out Project” has
the meaning set forth in Section 2.2.

     “Contracted Waste” means
all non-hazardous waste, regardless of the source of such waste, which is under
contract to be delivered to Covanta or any of its Affiliates for disposal in, or
processing by, one of the facilities owned or operated by Covanta or any of its
Affiliates.

     “Commercial Waste” means
all non-hazardous solid waste that is collected from commercial establishments,
including residential apartment buildings, office buildings, restaurants,
industrial parks, all other business facilities and all recyclable materials
from recycling facilities.

     “Competitor” means a
Competitor of Covanta or a Competitor of Global, as the context requires.

     “Competitor of Covanta”
means a Person, directly or through Affiliates, engaged primarily in the waste
disposal business, including the energy from waste business.

     “Competitor of Global”
means a Person, directly or through Affiliates, engaged primarily in the
business of selling equipment that converts waste or organic feedstock(s)
containing hydrocarbon materials into diesel fuel or any Person that is involved
primarily in the development of such equipment or the technology on which it is
based.

     “Consulting Agreement”
means the Consulting Agreement entered into by Global and Trianon dated October
20, 2007, a copy of which has been provided to Covanta.

     “Covanta” has the meaning
set forth in the first paragraph hereof and includes its successors and
permitted assigns.

     “Covanta Rights” has the
meaning set forth in Section 2.1.

     “Default” has the meaning
set forth in Section 7.1.

     “Demonstration Plant” has
the meaning set forth in the License Agreement.

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     “Dispute” has the meaning
set forth in Section 9.1.

     “DP Site” has the meaning
set forth in Section 4.2(b) .

     “DP System” has the
meaning set forth in Section 4.2.

     “Effective Date” has the
meaning set forth in Section 6.1.

     “Election Notice” has the
meaning set forth in Section 4.2.

     “Excluded Projects” has
the meaning set forth in Section 2.3(a)

     “Extended Period” has the
meaning set forth in the License Agreement.

     “Feedstock” means
Household Waste, Contracted Waste, Commercial Waste or Radial Biomass, as the
case may be.

     “Global” means Global
Energy, Inc., a Nevada corporation.

     “Governmental
Organization” has the meaning set forth in the License Agreement.

     “Household Waste” means
all non-hazardous, post-recycled municipal solid waste which is collected from
residences, which waste is of the type normally accepted for processing at waste
to energy facilities in the United States, China, the United Kingdom or the
Republic of Ireland, as the case may be.

     “ICC” means the
International Chamber of Commerce.

     “ICC Rules” has the
meaning set forth in Section 9.1(c) .

     “Improvements” means all
the techniques, enhancements, modifications, changes, experience, methods,
information, data or knowledge that will be created or acquired in the future
relating to the Technology and/or the manufacturing of such components for
Systems (whether or not patentable, useful or workable) through the
implementation, development, testing and improvement of the Technology.

     “Initial Period” has the
meaning set forth in the License Agreement.

     “Interim Period” has the
meaning set forth in the License Agreement.

     “KDV 500” means the system
of components, including all of the structural steel, piping, pumps, vessels,
control systems, wiring, two proprietary “mixing turbine pumps” and the
operations, maintenance and start-up manuals provided by AK, to convert 

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hydrocarbon feedstock, including any Feedstock, into diesel oil
using the Technology which is capable of producing a minimum of 500 liters of
diesel oil per hour.

     “License Agreement” means
the License Agreement entered into by Covanta and Licensor of even date
herewith, a copy of which has been provided to Global.

     “Licensor” has the meaning
set forth in the second recital hereto and includes its successors and permitted
assigns.

     “LLCA” has the meaning set
forth in Section 2.3(g) .

     “Parties” means Global and
Covanta.

     “Party” means Global or
Covanta, as the case may be.

     “Person” means any natural
person, corporation, company, partnership, business trust, governmental
authority or other entity.

     “Project” means a project
which is initiated, developed and owned by Covanta, a Covanta Affiliate or a
Governmental Organization, in whole or in part, to convert a Feedstock to diesel
using the Technology in Territory A or Territory B.

     “Project Company” has the
meaning set forth in Section 2.3(g) .

     “Purchase Order” has the
meaning set forth in the License Agreement.

     “Radial Biomass” means
biomass, including wood, wood waste and other types of cellulosic materials
which are collected within or from an area within a 100 mile radius of any
biomass facility that is owned by Covanta or an Affiliate of Covanta in the
states of California or New York as of the Effective Date.

     “Royalty” has the meaning
set forth in Section 5.1.

     “System” means any system
of components, whether it is in existence today or developed hereafter,
including all of the structural steel, piping, pumps, vessels, control systems,
wiring, the proprietary “mixing turbine pump(s),” any new components of any
future system of components and all of the operations, maintenance and start-up
manuals provided by AK, to convert hydrocarbon feedstock, including any
Feedstock, into diesel oil using the Technology, including, for the avoidance of
doubt, the KDV 500.

     “Technology” has the
meaning set forth in the License Agreement.

     “Territory A” means the
United States.

     “Territory B” means China,
the United Kingdom and the Republic of Ireland.

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     “Trianon” means Trianon
Partners, a Nevada corporation, and its successors and assigns.

Section 1.2 Interpretation. In this Agreement, unless
otherwise indicated or required by the context:

     (a) Reference to and the
definition of any document (including this Agreement) or any applicable law
shall be deemed a reference to such document or applicable law as it may be
amended, supplemented, revised or modified from time to time;

     (b) All references to an
“Article,” “Section” or “Exhibit” are to an Article or Section hereof or to an
Exhibit attached hereto;

     (c) Article and Section headings
and other captions are for the purpose of reference only and do not limit or
affect the meaning of the terms and provisions hereof;

     (d) Defined terms in the singular
include the plural and vice versa, and the masculine, feminine and neuter gender
include all genders;

     (e) The words “hereof,” “herein”
and “hereunder” and words of similar import refer to this Agreement as a whole
and not to any particular provision of this Agreement;

     (f) The words “include,”
“includes” and “including” mean include, includes, and including “without
limitation” and “without limitation by specification;” and

     (g) The phrase “exclusive
right(s)” as used herein is intended to have the same meaning as the term “Full
Right(s)” as used and defined in the License Agreement and the phrase
“non-exclusive right(s)” as used herein is intended to have the same meaning as
the term “Qualified Right(s)” as used and defined in the License Agreement.

ARTICLE 2 – RELATIONSHIP AND RIGHTS OF THE PARTIES

Section 2.1 Rights of Covanta. Subject to the terms of
this Agreement, and intending to be consistent with the terms and conditions of
the License Agreement, during the Interim Period, the Initial Period and the
Extended Period, Global hereby grants to Covanta to the extent now or hereafter
held by Global during the term of this Agreement (the “Covanta Rights”):

     (a) The exclusive right in
Territory A (subject to the rights of Licensor with respect to Carve-Out
Projects) and the non-exclusive right in Territory B to use, practice and make
Improvements to the Technology for Projects using Household Waste; except that
Licensor shall retain the right to develop Carve-Out Projects within Territory A
as set forth in Section 2.2;

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     (b) The exclusive right in
Territory A and Territory B to use, practice and make Improvements to the
Technology in connection with Projects using Contracted Waste;

     (c) The exclusive right in the
applicable areas of Territory A to use, practice and make Improvements to the
Technology in connection with Projects using Radial Biomass;

     (d) The non-exclusive right in
Territory A and Territory B to use, practice and make Improvements to the
Technology in connection with Projects using Commercial Waste; and

     (e) To sell Systems to
Governmental Organizations as is permitted by Section 2.5 of the License
Agreement.

Global expressly agrees that it shall not do anything in
connection with the Technology, during the term of the License Agreement, which
is inconsistent with any of the exclusive rights granted by Licensor to Covanta
as part of the Covanta Rights regardless of whether such rights have been or
will be granted to Global by Licensor. For the avoidance of doubt, Covanta shall
be entitled to exercise any or all of the license rights granted to it in the
Technology itself or through any of its Affiliates, but Covanta shall not have
the right to issue sublicenses to any Person other than an Affiliate.

Section 2.2 Carve-Out Projects. The term “Carve-Out
Project” shall mean any project using the Technology that is initiated and
developed by Global which is comprised of a maximum of four (4) KDV 500s (or its
equivalent in output capacity in other Systems), such number of KDV 500s to be
reduced if it is necessary for the project to process more than 125 tons of
Household Waste to meet the maximum diesel output capacity of the four (4)
Systems in a county, township or other geographic area in Territory A where the
amount of Household Waste collected is 125 tons per day or less. Prior to the
date that Covanta has satisfied the requirements set forth in Section 2.1(a) of
the License Agreement, Global shall not have the right to develop Carve-Out
Projects. Following the date that Covanta has satisfied the requirements set
forth in Section 2.1(a) of the License Agreement, Global shall have the right to
develop Carve-Out Projects, subject to the following procedures:

     (a) Pre-Approval Notice.
If Global is contacted by a Person interested in a project that will process
Household Waste using the Technology or if Global is interested in pursuing
potential projects that will process Household Waste using the Technology in a
particular geographic area, Global shall have the right to notify Covanta, in
writing, about the project opportunity (a “Pre-Approval Notice”) and ask Covanta
to confirm, in writing, whether it agrees that a project to process Household
Waste using the Technology in such geographic area will qualify as a Carve-Out
Project. Covanta shall not unreasonably withhold such confirmation and shall
respond to each such Pre-Approval Notice in writing within thirty (30) days of
the receipt thereof. If Covanta fails 

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to respond to any Pre-Approval Notice within such thirty (30) day period, such failure shall be deemed to be an approval.

     (b) Carve-Out Project Notice. If Global decides to pursue a Carve-Out Project (whether such project has been the subject of a Pre-Approval Notice or not), Global shall provide a written notice to Covanta (a
“Carve-Out Project Notice”) to advise Covanta that Global is proceeding with a Carve-Out Project, such notice to include as much detail about the project as available at the time, including the name of the project, the geographic area in
which the project is located, information about the collection of waste in such area to support the conclusion that the project qualifies as a Carve-Out Project (unless Covanta has already confirmed that such project qualifies as a Carve-Out Project
in its response to a prior Pre-Approval Notice or is deemed to have confirmed it pursuant to Section 1.2(a)), the supplier of the Household Waste for the project, any commercial terms regarding the tipping fees for the project and potential off-take
arrangements, an estimate of the cost of developing the project, the pro forma for the project, if available, and any other information which is available to Global that might be relevant to Covanta in making a decision whether to jointly pursue the
development of such project with Global. Covanta shall have forty-five (45) days from the receipt of the Carve-Out Project Notice to review the project information and decide whether Covanta wants to jointly develop the project with Global (Covanta
to have the right to provide sixty-five percent (65%) of the equity required for the project, subject to the obligation to fund sixty-five percent (65%) of the development costs). During the forty-five (45) day period, Global shall use all
reasonable business efforts to respond to any questions raised by Covanta and the Parties shall meet to discuss the project if either Party requests to do so. Unless the Parties have otherwise agreed to jointly develop the project and on what terms,
Covanta shall provide a written notice to Global prior to the expiration of the forty-five (45) day period indicating whether Covanta wants to jointly pursue the project with Global. If Covanta fails to respond in a timely manner to a Carve-Out
Project Notice, it shall be deemed the delivery of a written notice that Covanta is not interested in jointly developing such project.

     (c) Proceeding with Carve-Out Project. If Covanta decides to proceed jointly with Global in developing a Carve-Out Project, the Parties shall cooperate together, in good faith, to document the basic business
arrangements as soon as practicable, in writing, so that the joint development of the Project can proceed. If Covanta decides that it does not want to proceed jointly with Global in pursuing a Carve-Out Project (or if Covanta is deemed to have
decided not to proceed jointly), then Global, subject to the provisions of Section 2.2(d), shall be entitled to proceed with such Carve-Out Project on its own.

     (d) Disputes. Notwithstanding anything which may be contained herein to the contrary, if Covanta believes that a project does not qualify as a Carve-Out Project and Global disputes such claim, then, if the
Parties cannot resolve their differences, the issue shall be considered a Dispute and it shall be resolved in accordance with the provisions of Article 9.

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Section 2.3 Project Investment Rights of Global. Covanta hereby grants to Global the right to invest equity in the Projects being developed by Covanta during the Initial Period and the Extended Period and which are to be owned by Covanta or a
Covanta Affiliate, subject to the further provisions and procedures of this Section 2.3.

     (a) Excluded Projects. Global shall not have the right to invest equity in (i) any Projects developed by Covanta that will be owned by a Governmental Organization, (ii) the Demonstration Plant and (iii) up to ten
(10) individual Systems that Covanta has the right to purchase through Licensor for use by Covanta at any of its waste to energy plants in Territory A and which will be owned by Covanta or a Covanta Affiliate (the “Excluded Projects”).

     (b) Equity Investment Notice. If Covanta decides to pursue any Project that is not an Excluded Project, Covanta shall provide a written notice to Global (an “Equity Investment Notice”) to advise Global
that Covanta is proceeding with the Project, such notice to include as much detail about the Project as is available at the time, including the name of the Project, the supplier of the Feedstock for the Project, any commercial terms regarding the
tipping fees for the Project and potential off-take arrangements, an estimate of the cost of developing the Project, the pro forma for the Project, if available, and any other information which is available to Covanta that might be relevant to
Global making a decision to invest equity in such Project. Global shall have forty-five (45) days from the receipt of the Equity Investment Notice to review the information about the Project and decide whether Global wants to invest equity in the
Project. During the forty-five (45) day period, Covanta shall use all reasonable business efforts to respond to any questions raised by Global and the Parties shall meet to discuss the Project if either Party requests to do so. Global shall have the
right, in its sole discretion, to invest up to thirty-five percent (35%) of the total required equity for each Project which is the subject of an Equity Investment Notice, but in no event may Global invest less than ten percent (10%) of the total
equity in such Project. If Global elects to invest in a Project, Global shall provide a written response to Covanta (the “Equity Commitment Response”) prior to the expiration of the forty-five (45) day period indicating whether Global
wants to invest equity in the Project and, if so, the total percentage of the required equity that it wants to invest. If Global fails to respond in a timely manner to an Equity Investment Notice, it shall be deemed the delivery of a written notice
that Global is not interested in investing equity in the Project. If the Equity Commitment Response indicates that Global is not interested in providing any of the required equity for a Project (or Global is deemed to have delivered such a notice),
then Covanta shall be free to pursue the Project without any further obligation to offer Global the right to invest equity in such Project.

     (c) Equity Commitment Letter. If Global decides it wants to invest a portion of the required equity for a Project, the Parties shall cooperate together, in good faith, to enter into an equity commitment letter
(the “Equity Commitment Letter”) based upon the form of equity commitment letter attached hereto as Exhibit 2 within thirty (30) days of the receipt of the Equity Commitment Response, which letter shall set forth (i) the total anticipated
equity investment for the Project, (ii) a tentative schedule for the funding of the equity for the Project which shall be based on the anticipated terms for the relevant 

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Purchase Order and the costs and installation schedule for the balance of the Project, (iii) the percentage of the total required equity to be provided by Global (up to a maximum of thirty-five percent (35%) of the total required equity but not less
than ten percent (10%) of the total required equity) and (iv) any such other terms as the Parties may mutually agree. Global acknowledges and agrees that the anticipated equity investment and equity funding schedule will only be an estimate and that
the ultimate equity investment and equity funding schedule shall be what is required for the Project.

     (d) Recovery of Development Costs. Global recognizes that Covanta will be incurring development costs in connection with each of the Projects in which Global has decided to make an equity investment, including
burdened costs for its own personnel that are working on the development of the Project. To minimize difficulties associated with tracking its development costs, the Parties agree that Covanta shall be reimbursed from the initial equity investment
made by the Parties in a particular Project for all of the third party development costs incurred by Covanta plus a development fee equal to One Hundred Thousand Dollars ($100,000) for each KDV 500 that is installed as part of the Project (such
amount to be increased if the Project uses a System other than a KDV 500 in proportion to the increased diesel output of the System installed), but in no event shall the development fee for a Project exceed the sum of One Million Dollars
($1,000,000). For each of the Projects in which Global decides to invest, Covanta shall provide Global with a schedule of the third party development costs that Covanta has incurred, together with copies of the invoices in support of such
costs.

     (e) Equity Investment into Project. Prior to the execution of a Purchase Order for the Systems required for a Project, Covanta shall provide Global with an update of the total expected equity required for the
Project and an updated schedule for the contribution of the equity. All equity invested in a Project shall be invested as a capital contribution to the limited liability company to be established by Covanta and Global for the Project. If a scheduled
equity funding commitment is pending and Global determines that it will not be able to fund all or part of such obligation, Global shall promptly provide written notice to Covanta (which shall in no event be less than ten (10) days’ prior to
the date that such funding is due) indicating the amount, if any, of the equity that Global will fund on such date. If Global fails to timely fund an equity funding commitment in accordance with the final equity funding schedule for the Project, in
whole or in part, then, unless Covanta agrees otherwise in its sole discretion, Global shall forfeit its right to fund any additional equity for the Project and Covanta shall fund the balance of the equity that is required for the Project.
Notwithstanding anything contained herein to the contrary, if the equity that is required for the Project exceeds the amount that was estimated by the Parties, Global shall be entitled to fund a pro rata share of such equity as the funds are needed.
Once the Project achieves commercial operation, the respective equity percentages of the Parties shall be determined based on the total amount of the equity that was actually funded by each Party.

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     (f) Operation and Maintenance of Projects by Covanta. During the Interim Period, the Parties shall cooperate together in good faith to develop a standard form of an operations and maintenance agreement (the
“OMA”) pursuant to which an Affiliate of Covanta shall be engaged to operate all Projects that will be jointly owned by Covanta and Global. Unless the Parties otherwise agree, for the first five (5) years following the Effective Date, the
OMA shall be based on a “cost plus” structure with a fixed annual fee of Four Hundred Thousand ($400,000) as of January 1, 2008 (such amount to be adjusted each year by the increase in the Consumer Price Index published by the U.S.
Department of Labor Bureau of Labor Statistics CPI-U for All Urban Consumers, US City Average (Table 1)). Prior to the end of the five (5) year period, the Parties will review the amount of the fee and whether different fixed fees should be charged
for Projects with different numbers of Systems. Under the OMA, Covanta or its Affiliate shall be reimbursed for all direct costs of operating the Project and for the burdened costs of the operators and all supervisory personnel dedicated to the
operation of the applicable Project.

     (g) Execution of LLCA. Each Project in which Global invests shall be owned by a separate limited liability company (each, a “Project Company”) formed to own and operate the Project. Prior to executing
the Purchase Order for a Project, the Parties shall negotiate, in good faith, a limited liability company agreement (the “LLCA”) for the Project Company based on the standard form of LLCA agreed to by the Parties, it being agreed that each
Project will have its own unique requirements that will have to be addressed in the LLCA for the applicable Project Company. Within sixty (60) days of the execution hereof, Covanta will provide a proposed form of LLCA that is based on the relevant
provisions of this Agreement and the key terms set forth in Exhibit 1 attached hereto (or cause Trianon to provide such draft to the Parties). During the sixty (60) day period following the delivery of the initial draft of the LLCA, the Parties
shall negotiate a standard form of LLCA to be used as the model for future LLCAs to be entered into by the Parties for projects to be jointly owned by the Parties during the Initial Period and the Extended Period. Once the Parties have finalized the
standard form of LLCA, they shall execute a document confirming that such document is the standard form of LLCA and it shall replace the key terms set forth in Exhibit 1.

     (h) Sale of Interest in Projects. If Covanta or Global wants to sell its interest in any Project in which the Parties have jointly invested, the Parties agree that any such sale shall be accomplished by the
applicable Party (the “Selling Party”) selling its membership interest in the Project Company and any transfer by any Selling Party in contravention of the provisions of this Section 2.3(h) (whether by sale or transfer of an intermediate
holding company or other direct or indirect transfer) shall be void and of no force and effect. Any such sale shall be subject to the restrictions and other conditions set forth in the LLCA for the Project Company. The LLCA shall require the Selling
Party to first offer to sell the membership interest to the other Party in accordance with a formula price or an appraisal process, as the Parties shall determine when the standard form of LLCA is negotiated.  If such other Party does not want to
purchase the membership interest from the Selling Party, the Selling Party shall be entitled to sell the membership interest to any Person other than a Competitor of such other Party unless such other Party consents to the sale in writing in its
sole discretion.

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     (i) Financing of Projects. Global acknowledges that Covanta does not intend to secure debt financing for each Project that is to be developed by Covanta and that the funding for such Projects is expected to be
all in the form of equity. If Covanta elects to arrange a financing for a particular Project in which Global has committed to invest prior to the placement of the Purchase Order for the Systems that are required for such Project and the lender(s)
for such Project are not willing to accept the risk that Global will timely fund its equity commitments or any of its other support obligations to the Project, Global shall be required to provide whatever credit support is required by such lender(s)
for its equity investment and its share of any other equity support obligations, including a letter of credit in support of such commitments. Once Covanta has been able to secure limited recourse take-out financing for one or more Projects, as
discussed in Section 2.2(j), it will consider arranging a tranche of limited recourse debt for Projects with a capital cost in excess of $40 Million prior to the commencement of the construction of such Projects. Notwithstanding anything which
is contained herein to the contrary, Covanta shall not be under any obligation whatsoever to provide a “wrap” of Global’s equity obligation or any other credit support obligation of Global to the lender(s).

     (j) Take-Out Financings. Covanta or the Project Company will evaluate the ability to secure limited recourse take-out financing for multiple Projects once they have operated successfully for a period of at least
eighteen (18) months to enable Covanta and Global to recover some or all of the equity that each has invested in such Projects. If the overall conditions in the credit markets and the merits of the potential financing options are favorable, Covanta
shall undertake to secure limited recourse take-out financing. If Covanta pursues such a financing, Global agrees to cooperate with Covanta and the lender(s) in good faith in pursuing and closing such financing. Global shall be required to provide
whatever credit support is required by such lender(s) for its share of any equity support obligations for such take-out financing, including a letter of credit in support of such commitments. The proceeds of any such take-out financing shall be
distributed to each Party in the ratio that such Party’s total equity investment in all of the Projects that are the subject of such financing bears to the total equity investment of both Parties in all such projects.

     (k) Entitlements. In each Project in which Global Energy elects to invest, the Parties will form a Project Company as further provided for in Section 2.3(g) to own such Project. As an owner of the Project
Company, each Party (or its Affiliate) will be entitled to its pro rata share of all of the items of income, gain, loss, deduction and credit derived by the Project Company and its pro rata share of the net distributable cash flow of the Project
Company.

Section 2.4 EPA Certification. Covanta will use commercially reasonable efforts during the term hereof to obtain United States Environmental Protection Agency certification for use of the diesel oil to be produced by the Systems to be used as
a fuel in highway motor vehicles in the Unites States. Covanta shall take the lead with respect to the necessary activities for securing such certification, including preparing and submitting applications to, and making necessary contacts with, the
United States Environmental Protection Agency, 

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and Global shall reasonably cooperate with such efforts to be undertaken by Covanta. Covanta shall track all the costs incurred in connection with the necessary activities (including costs for necessary tests, meetings with agency officials, third
party consultants, the preparation of written reports and applications and any government relations activities) using Covanta’s existing cost accrual and tracking systems. Prior to incurring such costs, Covanta shall provide Global with a
schedule of the reasonably expected costs related to such activities, the third party vendors and other expenses expected to be incurred by Covanta for prior approval by Global and Global agrees to not unreasonably withhold or delay its approval.
The Parties agree that Covanta shall be reimbursed by Global for fifty percent (50%) of all the costs and expenses which are incurred by Covanta in connection with seeking such fuel certification, all such costs to be supported by proper
verification of such costs and expenses, including invoices.

Section 2.5 Certain Sales by Licensor. The Parties acknowledge that Licensor shall be entitled, prior to the time that Covanta has completed the purchase of the Demonstration Plant and placed a Purchase Order and paid the deposit on five (5)
additional Systems, all as further provided for in Section 2.1(a) of the License Agreement, to sell Systems that it would otherwise not be allowed to sell pursuant to the terms of the License Agreement once Covanta has performed the requirements set
forth in Section 2.1(a) of the License Agreement. The Parties acknowledge and agree that it is in their mutual best interest for Licensor to not sell Systems in Territory A to any Person other than Covanta, Global and Renewable Diesel, LLC, a
Delaware limited liability company. Accordingly, the Parties further agree as follows:

     (a) Notices.  If any Person contacts Licensor at any time during the period which is specified in Section 2.1(c) of the License Agreement to purchase one or more Systems for any of the purposes which are
specified in clause (ii) of Section 2.1(c) of the License Agreement, Global shall (i) provide a written notice of such contact to Covanta and (ii) a written notice to such Person (with a copy of such notice to Covanta) that no Systems can be sold
for such purpose unless such Person offers Covanta, in writing, the right to invest 50 percent of the cost of the project to be developed with such Systems and to own 50 percent of such project (on an equal basis and terms with such Person) and the
right to operate such project. Covanta agrees it shall notify such Person and Licensor, in writing, whether Covanta wants to be involved in such project as a 50 percent owner and operator or waive its right to do so. The Parties acknowledge that AK
has agreed, by its acknowledgment of the terms of the License Agreement, not to enter into a Purchase Order with such Person unless Licensor has satisfied the notice requirements of Section 2.1(d) of the License Agreement and Covanta elects to not
participate in the project. 

     (b) Notice by Covanta. Covanta shall notify the Person that wants to purchase the System(s), in writing, with a copy to Licensor and Global, whether Covanta wants to be involved in such project as a 50 percent
owner and as the operator or waive its right to do so.

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     (c) Actions by Global.
Global further agrees to take all reasonable actions, in its capacity as 50
percent owner of Licensor, to prevent the sale of such Systems to any Person
unless all of the foregoing requirements have been satisfied.

     (d) Penalty. If Global is
aware of a potential sale of Systems by Licensor to a Person in violation of the
provisions set forth in the License Agreement and this Section 2.5 and the sale
proceeds without Covanta being given the right to own 50 percent of the project
being developed with such Systems and the right to operate such project, Global
agrees to waive its right to receive the Royalty hereunder on a number of
Systems equal to the number of Systems that are sold by Licensor in violation of
such requirements. Thus, if Licensor sells three (3) Systems to a Person to
process Household Waste for a project in the United States without offering
Covanta the right to own 50 percent of such project and to operate the project,
Global shall waive its right to the Royalty on the first three (3) Systems
purchased by Covanta.

Section 2.6 Commitment to Help Secure Refund of Purchase
Order Deposit. Licensor has agreed, pursuant to Section 2.1(a) of the
License Agreement, that if Covanta places one or more Purchase Order(s) for a
total of five (5) Systems (excluding the Purchase Order for the Demonstration
Plant), makes a down payment equal to ten percent (10%) of the Purchase Price to
AK at the time such Purchase Order(s) are placed and later decides, for any
reason, to terminate the License Agreement and give up all of its license rights
thereunder, to use all reasonable business efforts to arrange for AK or Licensor
to refund such deposit to Covanta in full or, if Covanta agrees, to apply the
portion of such deposit not reimbursed to any Purchase Order(s) that have been
or are placed by Global for its own account or for a customer of Global for a
project using the Technology (with such party reimbursing Covanta for the full
amount of the deposit so credited to its Purchase Order). Global agrees to use
all reasonable business efforts to assist Covanta in securing the refund from AK
and Licensor and further agrees to apply the deposits to future Purchase Orders
placed by Global, subject to Global agreeing to pay the full amount so credited
to Covanta simultaneously with the giving of the credit.

ARTICLE 3 – CONDITIONS TO EFFECTIVENESS

Section 3.1 Reimbursement of Payments to Trianon. On or
before the Effective Date, (i) Global shall provide Covanta with a schedule of
all of the payments made to Trianon pursuant to the Consulting Agreement and
(ii) Covanta shall reimburse Global for the full amount of such scheduled
payments. 

Section 3.2 Consulting Agreement with Trianon. On or
before the Effective Date, Covanta shall enter into an arrangement with Trianon
to replace the Consulting Agreement. On the Effective Date, Trianon shall
provide a letter to Global and Covanta confirming that the Consulting Agreement
has been terminated.

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Section 3.3 Letter Agreement. On or before the Effective
Date, Global shall provide a letter to Licensor confirming that Global accepts
the granting of the Covanta Rights and that it will not exercise any of such
rights while the License Agreement is in effect. 

Section 3.4 Payment to AK. On or before the Effective
  Date, Covanta shall have paid [*****] to AK as required by Section 3.6 of the
  License Agreement.

ARTICLE 4 – DEMONSTRATION PLANT

Section 4.1 Ownership and Financing of the Demonstration
Plant. The Demonstration Plant shall be owned by a special purpose entity to
be formed and owned by Covanta or an Affiliate of Covanta. Covanta shall be
responsible for financing 100 percent of the costs of the Demonstration Plant,
including all the costs to permit the plant, procure the components for the
plant (including the System), construct, install and start-up the plant and make
the plant operational and a reasonable amount of working capital to enable the
special purpose entity to commence the operation of the plant. 

Section 4.2 Transfer of Demonstration Plant System to
Global. If Covanta elects not to proceed to the Initial Period in accordance
with the provision of Section 2.2(f) of the License Agreement, Covanta shall
provide a written notice to Global simultaneously with the notice required to be
provided to Licensor in Section 2.2(f) of the License Agreement stating that it
has elected not to proceed to the Initial Period (the “Election Notice”). If
Covanta elects not to proceed to the Initial Period ), Covanta shall be
obligated to transfer the System that it purchased for the Demonstration Plant
(the “DP System”) to Global, at no cost to Global, subject to the procedures set
forth below:

     (a) Notice to Covanta. If
Covanta does not provide the notice to Licensor as provided for in Section
2.2(f) of the License Agreement by the due date specified therein or if Covanta
fails to provide the Election Notice to Global on such due date as provided for
herein, Global shall have the right to notify Covanta that it wants the DP
System to be transferred to Global at any time during the sixty (60) day period
following the due date for such notices. If Global fails to provide such notice
during such sixty (60) day period, Global shall be deemed to have decided to not
have the System transferred to Global, and Covanta shall be free to retain or
dispose of the System as it sees fit without any further obligation to Global in
respect thereof. 

     (b) Removal of the System from
the Demonstration Plant. Upon Covanta’s receipt of a notice from Global that
it wants the DP System as is provided for in Section 4.2(a), Covanta shall
remove the DP System from the Demonstration Plant, disassemble the DP System and
place it at a location on the site of the Demonstration Plant (the “DP Site) so
that it can be picked up and removed from such site by truck, all at Covanta’s
sole cost and expense. For the avoidance of doubt, Covanta shall not be required
to remove any other portion of the Demonstration Plant other than the DP System
purchased from AK. Covanta shall use all reasonable efforts to remove and
disassemble the DP System without damaging it, but it will not be responsible
for any such damages unless 

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Global can show that the damages were due to an intentional act
or the gross negligence of Covanta or any of its contractor or their respective
employees.

     (c) Notice to Global.
Covanta shall provide an initial notice to Global stating when it expects that
the DP System will be available for pick-up in accordance with the provisions of
Section 4.2(b) and shall provide a second notice when such work has been
completed and the DP System is available for pick-up.

     (d) Removal from the DP
Site. Global will have ninety (90) days following the receipt of the second
notice provided for in Section 4.2(b) that the DP System is available for
pick-up (or such longer period as may be agreed to by Covanta in its sole
discretion), to arrange for a qualified contractor to pick up the DP System and
remove it from the DP Site at Global’s sole expense. The contractor engaged by
Global shall provide Covanta with a certificate of insurance (reflecting all
standard required coverages required for a Person performing such work) prior to
being allowed to enter onto the DP Site and shall observe all of Covanta’s
standard security procedures while on the DP Site. For the avoidance of doubt,
Global shall not be responsible for any other removal costs or the costs
associated with returning the DP Site to the condition that it was in prior to
the installation of the Demonstration Plant, any such costs to be solely for the
account of Covanta.

     (e) Title to the DP System and
Condition. The DP System which is removed from the Demonstration Plant shall
be transferred to Global in its “as is” and “where is” condition, without any
representations and warranties except for good title, free and clear of any
liens. 

     (f) Failure to Remove. If
Global fails to remove the DP System by the date specified in Section 4.2(d) (or
notifies Covanta, in writing, that Global is not interested in securing the DP
System), Covanta shall be free to retain or dispose of the DP System as it sees
fit without any further obligation to Global in respect thereof.

Section 4.3 Visiting the Demonstration Plant. The
officers and employees of Global shall be entitled to visit the Demonstration
Plant at any time subject to providing Covanta with twenty-four (24) hours prior
notice and observing the standard security procedures of Covanta while on the DP
Site. The officers and employees of Global shall have the right to bring all
interested parties (other than Competitors of Covanta) to observe the DP System
in operation at the Demonstration Plant subject to (i) providing Covanta with a
minimum of forty-eight (48) hours prior notice of the date and time of the
proposed visit, the names of each person that will be visiting and the company
or party that such person represents, (ii) Covanta confirming that it expects
the DP System to be operational at the time of the visit and (iii) observing the
standard security procedures of Covanta while on the DP Site. Notwithstanding
the foregoing, if Covanta does not expect the DP System to be operational on the
date of the proposed visit, the Parties shall cooperate to allow for such visit
to take place as soon thereafter as practicable. Under no circumstances will
Covanta be obligated to run any particular feedstock in the DP System during any
such visit unless Covanta agrees to do so in its sole discretion. In addition to
the foregoing 

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requirements, all of the Global visitors shall comply with the
following: (a) remain on the DP Site only if accompanied by a guide that is
provided by Covanta; (b) avoid any interference with the operation or
maintenance of the Demonstration Plant; (c) not be on the DP Site for more than
six (6) hours; and (d) not take any photographs, video or other digital
impressions of the Demonstration Plant or the DP Site without the express
written permission of Covanta.

Section 4.4 Access to Information. Covanta agrees to
provide Global with complete and total access to all information developed in
connection with the installation, start-up and operation of the Demonstration
Plant as if Global was a fifty percent (50%) owner of the Demonstration Plant.
Such information shall include the results of all tests, operating logs,
internal reports, operations and maintenance expenses and all other information
that is applicable to the installation and use of the Technology that is
relevant to Global in its efforts to commercialize the Technology. For the
avoidance of doubt, nothing contained in this Section 4.4 shall obligate Covanta
to disclose confidential information to Global in respect of any project that is
owned or operated by Covanta on or adjacent to the DP Site. Covanta further
agrees to use all reasonable commercial efforts to respond to inquiries from
Global regarding the information that has been provided regarding the
Demonstration Plant. The Parties are aware that a number of Improvements could
be made regarding the design and fabrication of the Technology that will enable
the Demonstration Plant to be more effective and that Covanta’s feedback from
the initial start-up and operation of the Demonstration Plant could yield
additional possibilities for design and fabrication Improvements. The Parties
shall cooperate with each other and with Licensor to work on any such
Improvements to the Technology prior to AK completing the manufacturing of the
System that is ordered for the Demonstration Plant, as well as following the
delivery, start-up and operation of such System.

ARTICLE 5 – ROYALTY

Section 5.1 Calculation of the Royalty. Covanta shall
pay a royalty (the “Royalty”) to Global based on the amount of diesel that is
sold by each Project equal to ten percent (10%) of the revenue derived from the
sale of such diesel (exclusive of any taxes and any costs included in the price
for the delivery of such diesel, which costs shall be separately stated in all
such agreements for the sale of diesel) for a period of twenty (20) years from
the date that the applicable Project achieves commercial operation. With respect
to the Royalty, it is further agreed that:

     (a) For the avoidance of doubt,
the Royalty will not apply to the tipping fees that are received by a Project on
the material it accepts for conversion or to the value of any production tax
credits or any other credits received by the owner of the Project or any other
revenue streams other than the sale of diesel;

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     (b) Following the termination of the License Agreement, Covanta shall not be obligated to pay the Royalty on any future Projects developed by Covanta (excluding any Projects that have placed a purchase order for one or
more Systems prior to the date of termination or loss);

     (c) Notwithstanding anything contained herein to the contrary, Covanta shall not be obligated to pay the Royalty with respect to (i) the Demonstration Plant or (ii) any project other than a Project, including any
projects initiated and developed by Trianon or Global (even if Covanta invests in any such project) except that the Royalty shall be paid on all Carve-Out Projects in which Covanta invests;

     (d) Notwithstanding anything contained herein to the contrary, Covanta shall not be precluded from ceasing operation of any Project if Covanta determines that the net revenues of such Project are not sufficient to meet
expenses or if it operates the Project at an unacceptable level of profit, loss or risk. Once the operation of any Project has been terminated, Covanta shall not be required to pay any Royalty with respect to such Project unless and until the
operation of the Project is re-commenced; and

     (e) If Covanta wants to develop any Project on the basis that the diesel which is produced by the Project will be given to a party involved in the Project as consideration for its involvement, the Parties shall agree on
a method of valuing the diesel for purposes of determining the Royalty or adopt an alternate way of calculating the Royalty for such Project. 

Section 5.2 Payment of the Royalty. Covanta shall calculate the Royalties that are due to Global for each calendar quarter and pay the amount calculated within sixty (60) days following the end of each such calendar quarter. Covanta shall
provide a statement to Global with each payment showing the total number of gallons of diesel fuel sold by each System or Project and the total amount paid for such diesel fuel (unless an alternate way of calculating the Royalty for a particular
Project has been agreed to by the Parties, in which case Covanta shall show the relevant information in support of such calculation for such Project). Global shall be entitled to have an independent accounting firm review Covanta’s records from
time to time to verify the calculation of the Royalty contained in a particular quarterly statement for a period of two (2) years following the receipt of such statement.  If Global disagrees with the calculation of any Royalty payment, it shall
notify Covanta of the basis of its disagreement and the Parties shall attempt to resolve such disagreement within sixty (60) days. If the Parties cannot resolve their disagreement within such sixty (60) day period, either Party may treat such
failure to agree as a Dispute and require it be resolved in accordance with the procedures set forth in Article 9.

Section 5.3 Change of Assumptions. Global acknowledges that the fixed percentage that is specified herein for the Royalty assumes that the Demonstration Plant will confirm the operating cost and performance inputs to be provided by Global
(the “Assumptions”), all of which are shall be confirmed in writing by the Parties. The Assumptions will be based on a Project comprised of five (5) Systems. If at the end of the Interim Period the actual results of the operation of the
Demonstration Plant indicate that some or all of the 

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Assumptions are not accurate and need to be modified, the
Parties shall review the impact of all such differences (positive and negative)
as a whole through the use of an agreed pro forma model and modify the fixed
percentage for the Royalty to compensate Covanta for any overall deterioration
in Project economics caused by all of the modifications required to the
Assumptions. Once a change in the fixed percentage for the Royalty has been
agreed, the Parties shall amend this Agreement to reflect such revised fixed
percentage. If the Parties cannot agree on the modification to be made to the
fixed percentage within sixty (60) days following the end of the Interim Period,
either Party may treat such failure to agree as a Dispute and require it be
resolved in accordance with the procedures set forth in Article 9.

Section 5.4 Sale of Systems to Governmental
Organizations. If Covanta sells one or more Systems to a Governmental
Organization, Covanta shall be obligated to pay Global the Royalty in connection
with the operation of such Project and Covanta shall price such obligation into
the cost of operating such Project for the Governmental Organization. If the
Governmental Organization wants to retain the diesel fuel produced by the
Project for its own use, then the Parties shall agree on a method of valuing the
diesel for purposes of determining the Royalty or adopt an alternative way of
calculating the Royalty for such Project. In connection with a sale of Systems
to a Governmental Organization, Covanta will disclose to the Governmental
Organization Covanta’s obligation to pay such Royalty to Global and the Use
License (as defined in the License Agreement) which is provided to the
Governmental Organization for such Project or some other agreement that benefits
Global will obligate the Governmental Organization to pay the Royalty to Global
if Covanta’s agreement to operate such Project is terminated for any reason.

ARTICLE 6 – EFFECTIVE DATE AND TERM

Section 6.1 Effective Date. This Agreement shall become
effective as of the date and year first above written (the “Effective Date”) so
long as all of the conditions specified in Article III have been satisfied or
waived by the Parties.

Section 6.2 Term of the Agreement. This Agreement shall
continue in effect from the Effective Date until December 31, 2047 unless it is
terminated earlier by either Party in accordance with the provisions of this
Agreement or by the mutual written agreement of the Parties.

ARTICLE 7 – TERMINATION

Section 7.1 Termination Rights. This Agreement may be
terminated by either Party in the case of the failure of the other Party to
fulfill any of its material obligations hereunder (a “Default”) on ninety (90)
days’ prior written notice to the Party in Default, such notice to specify the
performance failure of such Party. Such termination shall not affect any of the
obligations of the Parties in existence on the date of such termination,
including (i) any existing obligations of Covanta to pay Royalties, (ii) any
existing obligations of the 

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Parties in respect of existing Project Companies and (iii) any
existing obligations of the Parties in respect of any of the projects jointly
being pursued by the Parties which are the subject of other agreements that have
been entered into by the Parties.

Section 7.2 Cure Rights. Notwithstanding anything
contained herein to the contrary, a Party that is in Default shall be entitled
to cure such Default by satisfying its performance obligation prior to the end
of such ninety (90) day period. Furthermore, if such Party is diligently
proceeding to cure such Default but such cure cannot be accomplished within such
ninety (90) day period, the Party in Default shall be given up to an additional
sixty (60) days to cure the Default so long as such Party continues to
diligently pursue curing the Default. If the Default is cured by the Party that
is in Default prior to the end of the cure period, then the notice of
termination shall be null and void. If a Party fails to cure a Default, then
this Agreement shall terminate on the date set forth in the notice of Default,
but in no event prior to ninety (90) days following the issuance of such notice
of Default.

ARTICLE 8 – REMEDIES

Section 8.1 Injunctive Relief and Specific Performance.
The Parties acknowledge and agree that irreparable damage might occur if any of
the provisions of this Agreement are not performed in accordance with their
specific terms or are otherwise breached. It is therefore agreed that each of
the Parties will be entitled to an injunction or injunctions to prevent breaches
of this Agreement and to enforce specifically the terms and provisions of this
Agreement in any court of the United States located in the State of New York or
in any New York state court, this being in addition to any other remedy to which
such Party is entitled at law or in equity.

Section 8.2 Limitation of Liability. The Parties
expressly waive any claims against each other and their respective Affiliates
for indirect, special, non-compensatory, incidental, punitive, exemplary or
consequential damages of any type, whether arising in contract or tort
(including negligence, whether sole, joint or concurrent or strict liability),
arising out of or relating to this Agreement or a breach hereof;
provided, however, that this provision shall not waive any claims
that the Parties may have under any other agreements entered into between the
Parties. The limitations on liability and the remedies set forth in this
Agreement have been expressly bargained for by the Parties and reflect the
knowing allocation of the risks inherent in this Agreement between the
Parties.

ARTICLE 9 – RESOLUTION OF DISPUTES

Section 9.1 Dispute Resolution. The Parties agree to
cooperate with each other in good faith to try to resolve any controversy or
dispute between them arising under this Agreement (each a “Dispute”) in
accordance with the following procedures:

     (a) If a Dispute cannot be
resolved informally, such Dispute shall initially be referred, through written
notice by one Party to the other Party, to a meeting of senior 

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management representatives of the Parties. The senior management representatives will meet to resolve the Dispute within fifteen (15) days following presentation of the matter to them.

     (b) If the Dispute cannot be resolved pursuant to Section 9.1(a), the Chief Executive Officers of the Parties shall meet to resolve the Dispute within fifteen (15) days following the conclusion of the consideration of
the Dispute under Section 9.1(a) .

     (c) If the matter is not resolved within thirty (30) days of the written notice in Section 9.1(a), either Party may submit the Dispute to arbitration by submitting a Request for Arbitration pursuant to Article 4 of the
Rules of Arbitration of the International Chamber of Commerce (the “ICC”) or such equivalent arbitration rules of the ICC then in effect (the “ICC Rules”), provided that nothing in this Agreement shall prevent or delay either
Party from applying for interim or conservatory measures pursuant to Article 23 of the ICC Rules.

Section 9.2 Arbitration of Unresolved Disputes.

     (a) All Disputes arising out of or in connection with this Agreement that are not resolved in accordance with the provisions of Section 9.1 shall be finally settled under the ICC Rules by binding arbitration conducted
in the English language and held in Washington, D.C. before a panel of three (3) arbitrators. Notwithstanding anything to the contrary in the ICC Rules, the following procedures shall apply for the appointment of the three (3) arbitrators. Each
Party shall appoint one (1) arbitrator, obtain its appointee’s acceptance of such appointment and deliver written notification of such appointment and acceptance to the other Party within thirty (30) days from the date that the Dispute was
submitted to arbitration. If a Party fails to deliver written notification of its appointment of an arbitrator and his/her acceptance within the time period provided in this Section 9.2, then such arbitrator shall be appointed by the ICC in
accordance with the ICC Rules and be deemed a Party-appointed arbitrator for all purposes hereof. The first two arbitrators so selected shall select the third arbitrator (who shall act as chairman of the arbitration proceedings), prior to the
thirtieth (30th) day following the appointment of the second Party-appointed arbitrator. If the Party-appointed arbitrators are unable to select a neutral arbitrator, they shall jointly submit a list of four names (two each) to the ICC,
which shall select the third arbitrator from the list submitted to it.

     (b) No arbitrator shall be a past or present employee or agent of, or consultant or counsel to, a Party or any Affiliate of a Party, unless such restriction has been waived in writing by the other Party to the
proceeding.

     (c) The substantive law governing the Dispute shall be the laws of the State of New York.

     (d) The arbitrators shall have the sole power and authority to determine the arbitrability of any Dispute arising under or relating to this Agreement or the subject matter hereof. Subject to any other relevant
limitations set forth elsewhere herein, the 

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arbitrators will have the power to award any type of relief
that is just and appropriate in the arbitrators’ discretion, including
compensatory damages, injunctive orders, orders for specific performances and
declarations of rights.

     (e) The arbitrators shall not
have power, however, to award punitive, consequential, exemplary or treble
damages or any other type of relief in the nature of a penalty, and the Parties
hereby expressly waive any right they might otherwise have to such relief. THE
PARTIES HEREBY WAIVE ALL RIGHTS TO A TRIAL BY JURY WITH RESPECT TO ANY DISPUTE
ARISING OUT OF OR RELATING TO THIS AGREEMENT.

Section 9.3 Finality; Enforcement. Any decision or award
of a majority of an arbitral panel, as applicable, shall be final and binding
upon the Parties. Each Party agrees that the arbitral award may be enforced
against it or its assets wherever they may be found and that a judgment upon the
arbitral award may be entered in any court having jurisdiction thereof. The
Parties hereby waive any right to appeal or to review of the decision or the
award of an arbitral panel by any court or tribunal and also waive any
objections to the enforcement of such decision or award.

Section 9.4 Costs. The costs of arbitration shall be
paid in accordance with the decision of the arbitral panel pursuant to the ICC
Rules.

Section 9.5 Continuing Performance Obligations. The
existence of any Dispute or the pendency of the Dispute resolution procedures
set forth herein will not relieve or excuse a Party from its ongoing duties and
obligations under this Agreement, and the Parties shall nevertheless proceed
with the performance of this Agreement in accordance with the terms hereof.

ARTICLE 10 – REPRESENTATIONS AND WARRANTIES

Section 10.1 Party Representations. As of the Effective
Date, each Party represents and warrants to the other Party that:

     (a) It is duly organized and
validly existing and, where applicable, is in good standing under the laws of
the jurisdiction of its formation and it has all requisite power and authority
to enter into and perform its obligations under this Agreement; 

     (b) The execution, delivery and
performance of this Agreement have been authorized and approved by its Board of
Directors and do not and will not (i) violate any law, rule, regulation, order,
decree or permit which is applicable to it or (ii) violate its organizational
documents or any agreement to which it is a party;

     (c) This Agreement is a legal and
binding obligation of such Party, enforceable against such Party in accordance
with its terms, except to the extent enforceability is modified by bankruptcy,
reorganization and other similar laws affecting the rights of creditors
generally and by general principles of equity; and

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     (d) There is no litigation
pending or, to the best of its knowledge, threatened to which such Party, its
parent or any of its subsidiaries is a party that, if adversely determined,
would have a material adverse effect on the financial condition, prospects or
business of such Party or its ability to perform its obligations under this
Agreement.

Section 10.2 Additional Representation by Global. As of
the Effective Date, Global is not in discussions with any Competitor of Covanta
relating to the Technology.

ARTICLE 11 – GENERAL PROVISIONS

Section 11.1 Expenses. Except as is otherwise expressly
provided in this Agreement, each Party will bear its respective expenses
incurred in connection with the preparation, execution and performance of this
Agreement.

Section 11.2 Confidentiality. The Parties agree to
maintain the confidentiality of this Agreement and the terms and conditions
hereof. Any public announcements or similar publicity with respect to this
Agreement shall be issued at such time and in such manner as the parties shall
jointly determine. Notwithstanding the foregoing, each Party (and its
Affiliates) shall have the right to make all such disclosures as required by
applicable law or by any governmental body, including any stock exchange or
securities market to whose regulations or disclosure requirements a Party is
subject, without the consent of the other Party hereto; provided,
however, that in the event of any such required disclosure, the
disclosing Party (and its Affiliates), to the extent reasonably practicable,
shall provide the other Party with advance notice of any such disclosure and an
opportunity to comment thereon. The parties acknowledge that it is their intent
to limit, to the fullest extent possible, any publicity regarding their joint
cooperation during the Interim Period, it being recognized, however, that
Covanta will need to contact public officials in connection with securing
permits or other approvals for the Demonstration Plant. In such regard, Covanta
will undertake to obtain assurances of confidentiality from such public
officials, but disclosures may nevertheless result.

Section 11.3 Notices. All notices, consents, waivers and
other communications under this Agreement must be in writing and will be deemed
to have been duly given when (i) delivered by hand (with written confirmation of
receipt), (ii) sent by telecopier (with written confirmation of receipt),
provided that a copy is mailed by registered mail, return receipt requested, or
(iii) when received by the addressee, if sent by a nationally recognized
overnight delivery service (receipt requested), in each case to the appropriate
addresses and telecopier numbers set forth below (or to such other addresses and
telecopier numbers as a party may designate by notice to the other parties):

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	 	Global: 
	 	  
	 	Global Energy, Inc. 
	 	Moshe Aviv Tower, 38th Floor 
	 	Ramat Gan 52520, Israel 
	 	Attention: Asi Shalgi 
	 	Facsimile: +972-77-202-5445 
	 	  
	 	Covanta: 
	 	  
	 	Covanta Energy Corporation 
	 	c/o Covanta Holding Corporation 
	 	40 Lane Road 
	 	Fairfield, NJ 07004, USA 
	 	Attention: General Counsel 
	 	Facsimile: +1-973-882-7357 

Section 11.4 Waiver. Neither the failure nor any delay
by either Party in exercising any right, power or privilege under this Agreement
shall operate as a waiver of such right, power or privilege, and no single or
partial exercise of any such right, power or privilege will preclude any other
or further exercise of such right, power or privilege or the exercise of any
other right, power or privilege. To the maximum extent permitted by applicable
law, (i) no claim or right arising out of this Agreement can be discharged by
one Party, in whole or in part, by a waiver or renunciation of the claim or
right unless in a writing signed by the other Party, (ii) no waiver that may be
given by a Party will be applicable except in the specific instance for which it
is given and (iii) no notice to or demand on one Party will be deemed to be a
waiver of any obligation of such Party or of the right of the Party giving such
notice or demand to take further action without notice or demand as provided in
this Agreement.

Section 11.5 Entire Agreement and Modification. This
Agreement supersedes all prior agreements between the Parties with respect to
its subject matter and constitutes a complete and exclusive statement of the
terms of the agreement between the Parties with respect to its subject matter.
This Agreement may not be amended except by a written agreement executed by the
Party to be charged with the amendment.

Section 11.6 Assignment. Neither Party may assign its
rights under this Agreement, in whole or in part, without the prior written
consent of the other Party, which consent shall not be unreasonably withheld or
delayed, except that each Party may make an assignment of this Agreement to an
Affiliate (so long as such Party remains liable for its obligations hereunder
following such assignment) and each Party may make a collateral assignment of
its rights hereunder to one or more lender(s) in connection with the financing
being arranged by such Party. In the case of a collateral assignment by one
Party to one or more lenders, the other Party shall, if requested to so,
negotiate the terms of a consent to assignment in good faith and enter into such
consent without delay. Notwithstanding the 

	Execution Copy 	23

foregoing, a Party may withhold its consent in the case of a
proposed assignment to a Person that is a Competitor of the Party whose consent
is being sought.

Section 11.7 Severability. If any provision of this
Agreement is held to be invalid, illegal or unenforceable by any court of
competent jurisdiction, the other provisions of this Agreement will remain in
full force and effect. Any provision of this Agreement held invalid, illegal or
unenforceable only in part or degree will remain in full force and effect to the
extent not held invalid, illegal or unenforceable.

Section 11.8 Governing Law. This Agreement will be
governed by, and construed in accordance with the laws of, the State of New York
without regard to its conflicts of law (other than Sections 5-1401 and 5-1402 of
the New York General Obligations Law).

Section 11.9 No Power of Representation. Neither Party
shall have the authority or right under this Agreement to, nor shall either
Party hold itself out as having the authority or right under this Agreement to,
(i) assume, create or undertake any obligation of any kind whatsoever, express
or implied, on behalf of or in the name of the other Party without the express
prior written consent of such other Party or (ii) accept service of any legal
process addressed to or intended for such other Party.

Section 11.10 No Partnership. Nothing in this Agreement
shall be construed as creating a partnership, association, joint venture or any
other legal entity between the Parties (including their Affiliates), nor a
fiduciary relationship between the Parties (including their Affiliates).

Section 11.11 No Third Party Beneficiaries. No provision
of this Agreement is intended or is to be construed to confer upon any Person,
other than the Parties and their respective Affiliates and successors and
permitted assigns, any rights or remedies under or by reason of this
Agreement.

Section 11.12 Compliance with Law. Each Party and its
Affiliates shall comply with all applicable laws, including the Foreign Corrupt
Practices Act of 1977 of the United States of America (15 U.S.C. §§ 78dd-1, et
seq.), in its or their performance of any activities hereunder.

Section 11.13 Counterparts and Facsimile Signatures.
This Agreement, and any other agreement, instrument, certificate of other
documents desirable to be executed and delivered in order to consummate the
Contemplated Transactions, may be executed in one or more counterparts, each of
which will be deemed to be an original copy of this Agreement and all of which,
when taken together, will be deemed to constitute one and the same agreement.
Any such document may be executed by facsimile signature. 

[Signature page follows]

	Execution Copy 	24

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

	 	GLOBAL ENERGY, INC. 
	 	 	  
	 	 	  
	 	 	  
	 	 	  
	 	 By: 	/s/
      Asi Shalgi
	 	 	Asi Shalgi, Chief Executive Officer 
	 	 	  
	 	 	  
	 	COVANTA ENERGY CORPORATION
  
	 	 	  
	 	 	  
	 	 	  
	 	 	  
	 	 By: 	/s/
      Timothy J. Simpson
	 	 	Timothy J. Simpson, Executive Vice 
	 	 	President and General Counsel

	Execution Copy 	25

EXHIBIT 1 – KEY TERMS OF LLCA

	Newly Formed Entity: 	
      As is provided for in Section 2.3(g), Covanta shall form
      a separate limited liability company (the “Project Company”) for each
      Project that is to be owned jointly by Covanta and Global. 

	  	
      

	State of Organization: 	
      Unless the Parties agree otherwise, the Project Company
      shall be formed under the laws of the State of Delaware and shall be
      authorized to do business in all such other states as required for the
      ownership and operation of the Project. 

	  	
      

	Members: 	
      The members of the Project Company (the “Members”) shall
      be Covanta or its Affiliate and Global or its Affiliate. 

	  	
      

	Board of Managers: 	
      The business and affairs of the Project Company shall be
      managed and directed by a board of managers (the “Board of Managers”)
      consisting of three (3) individual Managers, each entitled to one vote. So
      long as Global has committed to invest at least twenty percent (20%) of
      the total equity required for the Project in the Project Company (the
      “Total Required Equity”), Covanta shall appoint two (2) of the Managers
      and Global shall appoint (1) of the Managers. If Global has committed to
      invest less than twenty percent (20%) of the Total Required Equity, Global
      shall not have the right to appoint a Manager and Covanta shall appoint
      all of the Managers of the Project Company. If Global has committed to
      invest at least twenty percent (20%) of the Total Required Equity and
      Global fails to actually fund at least such percentage, Global shall lose
      its right to appoint one of the Managers thereafter. 

	  	
      

	Meetings of Board: 	
      The Board of Managers may take actions by the unanimous
      consent of the Managers without a meeting or by a majority vote at any
      regular or special meetings, subject to at least fifteen (15) days’ prior
      notice for special meetings to allow all the Managers to be present at the
      meeting. The presence of two Managers shall constitute a quorum for the
      Board of Managers to vote on matters; provided, however,
      that the Board of Managers shall not be authorized to vote on any matter
      that requires a Unanimous Decision (defined below) unless the Manager that
      is designated by Global attends the meeting (but only if Global is
      authorized to appoint one of the Managers as provided for herein).
  

	Execution Copy 	26

	Unanimous Decisions: 	
      The following decisions shall require the unanimous vote
      of the Board of Managers (each a “Unanimous Decision”): 

	  	
       
	
       

		
      (i) 
	
      Any consolidation, liquidation, reorganization,
      winding-up, merger or sale of the Project Company; 

	  	
       
	
       

		
      (ii) 
	
      A transfer, assignment or sale of all or substantially
      all of the assets or business of the Project Company; 

	  	
       
	
       

		
      (iii) 
	
      Any action that would alter or change any of the rights,
      privileges, obligations or liabilities or Global or dilute the voting
      interest of Global; 

	  	
       
	
       

		
      (iv) 
	
      The incorporation, establishment or acquisition of an
      ownership interest in any other entity; 

	  	
       
	
       

	  	
      (v) 
	
      Entering into any partnership or joint venture;

	  	
       
	
       

		
      (vi) 
	
      Decisions regarding tax elections, the adjudication of
      tax disputes, the settlement of tax disputes and other tax matters of the
      Project Company to the extent any such decision could have a material
      adverse effect on Global; 

	  	
       
	
       

		
      (vii) 
	
      The offering of equity interests in the Project Company
      on a public securities market; 

	  	
       
	
       

		
      (viii) 
	
      Any material modification or amendment to the Certificate
      of Formation of the Project Company or  the LLCA; and 
    

	  	
       
	
       

		
      (ix) 
	
      Any contract or other transaction entered into by the
      Project Company and a Member or any Affiliate of a Member. 

	  	
       
	
       

	Cessation of Operations: 	
      Notwithstanding anything contained herein to the
      contrary, Covanta shall have the unilateral right to cease operating the
      Project as provided for in Section 5.1(d) of the Business and Royalty
      Agreement, following which the Parties shall cooperate together in good
      faith to decide how to dispose of the Project or the Project Company. If
      the Parties cannot agree, Covanta shall be entitled to dispose of the
      Project or the Project Company in a commercially reasonable manner. In
      such event, Global’s Manager shall be deemed to have consented to any such
      commercially reasonable sale of the Project and/or a consolidation,
      liquidation, reorganization, 

	Execution Copy 	27

		
      winding-up, merger or sale of the Project Company under
      clause (i) of the Unanimous Decisions provision above. It is further
      agreed that any such sale of the Project or of the Membership Interests in
      the Project Company shall not be subject to any of the Restrictions on
      Transfer provisions or the Right of First Refusal provision set forth
      below. 

	  	
       

	Ownership: 	
      All property, assets and work product which is developed
      by the Project Company shall be owned by and in the name of the Project
      Company and not in the name of any of the Members or Managers. 

	  	
       

	Minimum Ownership: 	
      If Global makes a commitment to provide a portion of the
      Total Required Equity and Global later fails to fund all or a portion of
      its equity investment as such funds are required for the Project and if,
      as a result of such failure, Global’s membership interest falls below the
      minimum investment of ten percent (10%) of the Total Required Equity,
      Covanta shall have the right to require Global to sell its entire
      membership interest in the Project Company to Covanta at a price equal to
      seventy-five percent (75%) of the amount actually invested by Global in
      respect of such membership interest. 

	  	
       

	Pro Rata Interests: 	
      The Members shall be entitled to their pro rata share of
      each item of income, gain, loss, deduction and credit derived by the
      Project Company and to their pro rata share of the net distributable cash
      flow of the Project Company. 

	  	
       

	Officers: 	
      The Board of Managers will have the authority to
      designate officers of the Project Company, which shall consist of at least
      a President, a Secretary and a Treasurer. The Board of Managers may
      appoint such other officers and agents as it shall deem necessary or
      advisable, who shall hold their offices for such terms and shall exercise
      such powers and perform such duties as shall be determined from time to
      time by the Board of Managers. Neither the Managers nor the officers shall
      receive compensation for their services to the Project Company in such
      capacities. 

	  	
       

	Employees: 	
      The Project Company shall not have any employees. All
      services shall be performed under service contracts by third parties.
    

	Execution Copy 	28

	Limitation of Liability: 	
      None of the Members, Managers and officers of the Project
      Company shall be obligated personally for any of the debts, obligations or
      liabilities of the Project Company solely by reason of being a Member, a
      Manager or an officer of the Project Company. 

	  	
       

	Tax Status: 	
      It is the intention of the Members that the Project
      Company be treated as a partnership for federal tax purposes and all
      relevant state tax purposes, where possible. 

	  	
       

	Restrictions on Transfer: 	
      Each Member may sell or transfer all or a portion of its
      membership interest in the Project Company to a third party, subject,
      however, to the Right of First Refusal of the other Member as set forth
      below. 

	  	
       

		
      Notwithstanding the foregoing, any Member may transfer
      its economic interest in such Member’s ownership interest in the Project
      Company to an Affiliate; provided, however, that such
      transfer shall give the transferee only the right to receive
      distributions, income, gain and loss allocable to such Member’s ownership
      interest to which such Member would otherwise be entitled. 

	  	
       

	Right of First Refusal: 	
      If any Member wishes to sell its membership interest in
      the Project Company to a non-Affiliate, such offering Member shall first
      offer to sell its membership interest to the other Members by delivering
      notice which shall include the terms of the offer. Each other Member shall
      have the right to purchase all of the membership interest so offered. If
      none of the Members accept the offer, the offering Member may transfer all
      of its membership interest to a third party on terms no more favorable to
      the third party than those originally offered to the other Members,
      subject to the consent of the other Members as provided above. 

	  	
       

	Dispute Provision: 	
      Unless the Parties agree otherwise, the dispute
      provisions set forth in Article 9 of the Agreement shall be incorporated
      in the LLCA. 

	Execution Copy 	29

EXHIBIT 2 – FORM OF EQUITY COMMITMENT
LETTER

[COVANTA LETTERHEAD]

____________ __, 20__

Mr. ________________
[Global Energy, Inc. or Relevant
Affiliate] 
Moshe Aviv Tower, 38th Floor 
Ramat Gan 52520,
Israel

Re: Equity Commitment

This letter will confirm the commitment of [Global Energy,
Inc., a Delaware corporation] (“Global”), to invest equity in the project being
developed by [Covanta Energy, Inc., a Delaware corporation] (“Covanta”) in the
___________________project (the “Project”) being developed in
_____________________.

Covanta [has formed/will form] a limited liability company (the
“Project Company”) under the laws of the State of Delaware and [has
qualified/intends to qualify] the Project Company to do business in
_______________.

Covanta estimates that the total capital cost of the Project,
including all the development costs, engineering, procurement and construction
costs, start-up costs and initial working capital, is $__________ (the “Total
Required Equity”). The current capital cost budget is attached hereto as
Schedule 1. Covanta shall update the capital cost budget from time to time as
the development of the Project proceeds and provide such updates to Global.

A tentative schedule for the funding of the Total Required
Equity, on a monthly basis, is attached hereto as Schedule 2. Covanta shall
update the funding schedule from time to time as the development of the Project
proceeds and provide such updates to Global.

Global hereby acknowledges and agrees that the Total Required
Equity and the tentative equity funding schedule are estimates and that the
ultimate equity investment and equity funding schedule shall be what is actually
required for the Project once a Purchase Order is to be issued and construction
of the Project is to proceed.

Global has notified or advised Covanta that it wants to invest
______ percent (__%) of the Total Required Equity. [As the percentage is less
than twenty percent (20%) of the Total Required Equity, Global shall not have
the right to appoint an individual to the Board of Managers of the Project
Company.] [This sentence shall only be included in the 

	Execution Copy 	30

letter if Global commits to invest less than twenty percent
(20%) of the Total Required Equity.]

Once the development of the Project advances to a point where
Covanta believes that the Project is likely to proceed, Covanta will prepare a
draft of the limited liability company agreement (the “LLCA”) for the Project
Company based on the model agreement that was negotiated by the parties under
the Business and Royalty Agreement and provide it to Global for review.
Thereafter, the parties shall cooperate together in good faith to negotiate and
finalize the terms of the LLCA.

In connection with the Project, the parties have further agreed
as follows:

____________________________________________________________________________________________________________________________.

Please confirm the amount of your equity commitment and your
acceptance of the other terms of this equity commitment letter agreement by
signing in the space provided below and returning it to me within thirty (30)
days of the date hereof. 

Sincerely yours,

	Name: 	  
	Title: 	  
	[Covanta Energy, Inc.] 	  
	  	  
	  	  
	[Global Energy, Inc.] hereby confirms that it will
      provide ________ percent (__%) of the Total Required Equity and that it
      agrees with all the terms of this equity commitment letter agreement. 
	  	  
	  	  
	  	  
	  	  
	By: 	  
	Name: 	  
	Title: 	  
	Date: 	  

	Execution Copy 	31

SCHEDULE 1 – TOTAL CAPITAL BUDGET

SCHEDULE 2 – PRELIMINARY EQUITY FUNDING SCHEDULE

 

 

 

 

	Execution Copy 	32Filed by Automated Filing Services Inc. (604) 609-0244 - Global Energy Inc. - Exhibit 10.2

THE SYMBOL “*****” DENOTES PLACES WHERE PORTIONS
  OF THIS DOCUMENT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.
  SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

Exhibit 10.2 

LICENSE AGREEMENT 

     This License Agreement (this
“Agreement”) is made and entered into as of the 6th day of February,
2008, by and between AlphaKat - Global Energy GmbH, a company organized and
existing under the laws of Germany (“Licensor”), and Covanta Energy Corporation,
a corporation organized and existing under the laws of the State of Delaware
(“Covanta”). 

     WHEREAS, AlphaKat GmbH, a company
organized and existing under the laws of Germany (as further defined below,
“AK”), has granted certain rights to Licensor with respect to a proprietary
technology to convert waste material that contains hydrocarbons into diesel oil
(as further defined below, the “Technology”) in various countries, including the
United States, China, the United Kingdom and the Republic of Ireland;

     WHEREAS, Covanta is interested in
obtaining license rights from Licensor with respect to the Technology, all on
the terms and conditions set forth herein; and 

WHEREAS, Licensor is willing to grant such license rights to
Covanta, all on the terms and conditions set forth herein; 

NOW, THEREFORE, in light of the mutual premises set forth
herein and other good and valuable consideration, the receipt and the
sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound hereby, agree as follows. 

ARTICLE 1 – DEFINITIONS AND INTERPRETATION 

Section 1.1 Capitalized Terms. Unless otherwise
specified herein, the following capitalized terms shall have the following
meanings: 

     “Affiliate” means, in
relation to any Person, any other Person that controls, is controlled by, or is
in common control with, such Person. For the purpose of this definition, control
means the direct or indirect control of fifty percent (50%) or more of the
voting rights in such Person or the power to direct the management or policies
of such Person, whether by operation of law, by contract or otherwise. Except as
shall otherwise be expressly provided in this Agreement, and for the avoidance
of any doubt, as of the Effective Date, (i) Licensor and AK are Affiliates and
(ii) Licensor and Global are Affiliates, but AK and Global are not Affiliates.

     “Agreement” has the
meaning set forth in the first paragraph hereof. 

     “AK” means AlphaKat GmbH,
a company organized and existing under the laws of Germany, and its successors
and permitted assigns.

     “Commercial Waste” means
all non-hazardous solid waste that is collected from commercial establishments,
including residential apartment buildings, office buildings, restaurants,
industrial parks, all other business facilities and all recyclable materials
from recycling facilities. 

     “Competitor” means a
Competitor of Covanta or a Competitor of Licensor, as the context requires. 

     “Competitor of Covanta”
means a Person, directly or through Affiliates, engaged primarily in the waste
disposal business, including the energy from waste business. 

     “Competitor of Licensor”
means a Person, directly or through Affiliates, engaged primarily in the
business of selling equipment that converts waste or organic feedstock(s)
containing hydrocarbon materials into diesel fuel or any Person that is involved
primarily in the development of such equipment or the technology on which it is
based. 

     “Contracted Waste” means
all non-hazardous waste, regardless of the source of such waste, which is under
contract to be delivered to Covanta or any of its Affiliates for disposal in, or
processing by, one of the facilities owned or operated by Covanta or any of its
Affiliates. 

     “Covanta” has the meaning
set forth in the first paragraph hereof and includes its successors and
permitted assigns. 

     “Default” has the meaning
set forth in Section 10.1. 

     “Demonstration Plant” has
the meaning set forth in Section 2.2. 

     “Dispute” has the meaning
set forth in Section 9.1. 

     “Document Package” has the
meaning set forth in Section 4.5(b)(iii) . 

     “Effective Date” has the
meaning set forth in Section 5.1. 

     “Extended Period” means
the period that begins on the date that the Initial Period ends and terminate on
the fifth (5th) anniversary thereof, as further provided for in
Section 2.1(b) . 

     “Feedstock” means
Household Waste, Contracted Waste, Commercial Waste or Radial Biomass, as the
case may be.

     “Full Right” means that
the Person being granted the right(s) described herein shall be the only Person
that is entitled to exercise such right(s) so long as this Agreement is in
effect and that no other Person shall be authorized, by the grantor of such
right(s), to exercise such right(s) or be granted such right(s). 

2

     “Global” means Global
Energy, Inc., a Nevada corporation. 

     “Governmental
Organization” has the meaning set forth in Section 2.5. 

     “Household Waste” means
all non-hazardous, post-recycled municipal solid waste which is collected from
residences, which waste is of the type normally accepted for processing at waste
to energy facilities in the United States, China, the United Kingdom or the
Republic of Ireland, as the case may be. 

     “ICC” means the
International Chamber of Commerce. 

     “ICC Rules” has the
meaning set forth in Section 9.1. 

     “Improvements” means all
the techniques, enhancements, modifications, changes, experience, methods,
information, data or knowledge that will be created or acquired in the future
relating to the Technology and/or the manufacturing of such components for
Systems (whether or not patentable, useful or workable) through the
implementation, development, testing and improvement of the Technology.

     “Initial Period” means the
period which begins on the date that the Interim Period ends and terminates on
the tenth (10th) anniversary thereof. 

     “Intellectual Property”
means any intellectual property and/or proprietary information and materials
relating to the Technology along with all rights therein, whether existing
before or conceived or developed after the Effective Date (except as otherwise
expressly provided), including: (i) patents, patent applications, patent
disclosures and inventions (whether or not patentable and whether or not reduced
to practice), including the Patents; (ii) trademarks, service marks, trade
dress, trade names, corporate names, logos, slogans and Internet domain names,
together with all goodwill associated with each of the foregoing; (iii)
copyrights and copyrightable works; (iv) trade secrets, confidential information
and know-how (including ideas, formulae, compositions, manufacturing and
production processes and techniques, research and development information, test
data and results, drawings, specifications, designs, supplier lists and related
information); and (vi) registrations, applications, divisionals, continuations,
continuations-in-part, foreign counterparts and renewals for any of the
foregoing. 

     “Interim Period” means the
period which begins on the Effective Date and ends twelve (12) months following
the date that the Demonstration Plant has been successfully commissioned and is
ready for commercial operation; provided, however, that if the
Demonstration Plant passes the performance test agreed to by the Parties as
provided for in Section 2.2(c) more than thirty (30) days prior to the scheduled
end of the Interim Period, the Interim Period shall terminate thirty (30) days
following the date that the Demonstration Plant has passed such performance
test. 

3

     “KDV 500” means the system
of components, including all of the structural steel, piping, pumps, vessels,
control systems, wiring, two proprietary “mixing turbine pumps” and the
operations, maintenance and start-up manuals provided by AK, to convert
hydrocarbon feedstock, including any Feedstock, into diesel oil using the
Technology which is capable of producing a minimum of 500 liters of diesel oil
per hour. 

     “Licensor” has the meaning
set forth in the first paragraph hereof and includes its successors and
permitted assigns. 

     “Parties” means Licensor
and Covanta. 

     “Party” means Licensor or
Covanta, as the case may be. 

     “Patents” means any
existing or future patent applications, patents, registrations, utility models
and utility model applications relating to the Technology which are necessary or
useful to manufacture or to sell, offer for sale, use or otherwise make
available Systems or the components of Systems, including those set forth in
Exhibit 2 attached hereto. 

     “Person” means any natural
person, corporation, company, partnership, business trust, governmental
authority or other entity. 

     “Project” means a project
which is owned by Covanta, a Covanta Affiliate or a Governmental Organization,
in whole or in part, to convert a Feedstock to diesel oil using the Technology
in Territory A or Territory B. 

     “Purchase Order” has the
meaning set forth in Section 2.6. 

     “Purchaser” has the
meaning set forth in Section 2.6. 

     “Qualified Right” means
that the Person being granted the right(s) described herein shall be entitled to
exercise such right(s) so long as this Agreement is in effect, but the grantor
of such right(s) shall be entitled to grant such right(s) or allow such right(s)
to be exercised by all other Persons except a Person that is precluded from
exercising such right(s) under the express terms hereof.

     “Radial Biomass” means
biomass, including wood, wood waste and other types of cellulosic materials
which are collected within or from an area within a 100 mile radius of any
biomass facility that is owned by Covanta or an Affiliate of Covanta in the
states of California or New York as of the Effective Date. 

     “Rights Agreements” means
(i) the “Terms of Agreement” dated May 2, 2007, (ii) the “Shareholders’
Agreement” dated July 10, 2007 and (iii) the Articles of Association of Licensor
dated November 14, 2007 and November 22, 2007, a copy of each of which is
attached hereto in Exhibit 1. 

4

     “System” means any system
of components, whether it is in existence today or developed hereafter,
including all of the structural steel, piping, pumps, vessels, control systems,
wiring, the proprietary “mixing turbine pump(s),” any new components of any
future system of components and all of the operations, maintenance and start-up
manuals provided by AK, to convert hydrocarbon feedstock, including any
Feedstock, into diesel oil using the Technology, including, for the avoidance of
doubt, the KDV 500.

     “Technology” means the
proprietary, renewable diesel technology developed by Dr. Christian Koch (as
well as any related technology licensed to Dr. Christian Koch or to AK) to
convert municipal solid waste, organic materials, sludge and other hydrocarbon
materials, including Feedstock, to diesel oil, including all Improvements to
such technology made or acquired from time to time, including Intellectual
Property, Systems, the formulation of catalysts used in Systems and all related
materials and information, including the Document Package. 

     “Territory A” means the
United States. 

     “Territory B” means China,
the United Kingdom and the Republic of Ireland. 

     “Third Party Purchaser”
has the meaning set forth in Section 2.6. 

Section 1.2 Interpretation. In this Agreement, unless
otherwise indicated or required by the context: 

     (a) Reference to and the
definition of any document (including this Agreement) or any applicable law
shall be deemed a reference to such document or applicable law as it may be
amended, supplemented, revised or modified from time to time; 

     (b) All references to an
“Article,” “Section” or “Exhibit” are to an Article or Section hereof or to an
Exhibit attached hereto; 

     (c) Article and Section headings
and other captions are for the purpose of reference only and do not limit or
affect the meaning of the terms and provisions hereof; 

     (d) Defined terms in the singular
include the plural and vice versa, and the masculine, feminine and neuter gender
include all genders; 

     (e) The words “hereof,” “herein”
and “hereunder” and words of similar import refer to this Agreement as a whole
and not to any particular provision of this Agreement; and 

     (f) The words “include,”
“includes” and “including” mean include, includes, and including “without
limitation” and “without limitation by specification.” 

5

ARTICLE 2 – LICENSE RIGHTS 

Section 2.1 Grant of License Rights. Subject to the
further terms of this Agreement, Licensor hereby grants the following license
rights to Covanta: Until Covanta has satisfied the two (2) conditions which are
set forth in Section 2.1(a) (relating to the purchase of the Demonstration Plant
and an additional five (5) Systems), Covanta shall have the Qualified Right in
Territory A and Territory B to use, practice and make Improvements to the
Technology in connection with Projects using any Feedstock. Once Covanta has
satisfied the two (2) conditions which are set forth in Section 2.1(a), Covanta
shall have the following rights during the Initial Period and, if the election
provided for in Section 2.1(b) is timely made by Covanta, during the Extended
Period: (i) the Full Right in Territory A and the Qualified Right in Territory B
to use, practice and make Improvements to the Technology in connection with
Projects using Household Waste; (ii) the Full Right in Territory A and Territory
B to use, practice and make Improvements to the Technology in connection with
Projects using Contracted Waste; (iii) the Full Right in the applicable areas of
Territory A to use, practice and make Improvements to the Technology in
connection with Projects using Radial Biomass; and (iv) the Qualified Right in
Territory A and Territory B to use, practice and make Improvements to the
Technology in connection with Projects using Commercial Waste. As further
provided for in Sections 2.5 and 2.6, Covanta shall have the right to arrange
for the sale of Systems to Governmental Organizations pursuant to a Purchase
Order with AK. Furthermore, nothing which is contained herein shall restrict the
sale of any Project by Covanta at any time to any Person other than a Competitor
of Licensor. For the avoidance of doubt, Covanta shall be entitled to exercise
any or all of the license rights that are granted to it hereunder itself or
through any of its Affiliates, but Covanta shall not have the right to issue
sublicenses to any Person other than an Affiliate. The Parties further agree as
follows: 

     (a) To secure its rights
hereunder, Covanta shall satisfy the following two (2) conditions: (i) issue a
Purchase Order for the Demonstration Plant by the date that is specified in
Section 4.5 and make the payments required pursuant to such Purchase Order as
and when due thereunder; and (ii) place one or more additional Purchase Order(s)
for a total of five (5) Systems (excluding the Purchase Order for the
Demonstration Plant) no later than one year after the start of the Initial
Period and make a down payment equal to ten percent (10%) of the Purchase Price
to Licensor at the time that such Purchase Order(s) are placed for Licensor to
hold in escrow pending finalization of the Purchase Order(s) between AK and
Covanta, it being agreed that Licensor can release the sum of [*****] to AK for
preliminary engineering work associated with the Purchase Order(s) and the
balance of the deposit shall be released to AK as is provided for in the
Purchase Order(s) once it is finalized by AK and Covanta. If Covanta decides,
for any reason, to terminate this Agreement and to give up its license rights
hereunder after placing such Purchase Order(s) and making the required down
payment to Licensor, the Licensor shall refund such deposit to Covanta.

     (b) Covanta shall have the right
to elect, in its sole discretion, to extend the term of the Initial Period for
an additional five (5) years, (such extended term defined in 

6 

Section 1.1 as the “Extended Period”), Covanta to notify
Licensor in writing at least ninety (90) days prior to the end of the Initial
Period if it wants to extend the Initial Period for an additional five (5)
years.

     (c) During the period that starts
on the Effective Date and ends on the earlier to occur of (i) the termination
hereof and (ii) the date that Covanta has satisfied the two (2) conditions which
are set forth in Section 2.1(a), Licensor shall not (i) grant any rights to any
Person (other than Global) with respect to the Technology in Territory A in
connection with any projects using Household Waste or any projects using Radial
Biomass or (ii) sell Systems to any Person for delivery to or use in Territory A
if such Systems are to be used to process Household Waste or Radial Biomass
unless each of the requirements that are specified in Section 2.1(d) are
complied with. 

     (d) If any Person contacts
Licensor at any time during the period specified in Section 2.1(c) to purchase
one or more Systems for any purpose specified in clause (ii) of Section 2.1(c),
Licensor shall (i) provide a written notice of such contact to Covanta and (ii)
notify such Person in writing (with a copy of such notice to Covanta) that no
Systems can be sold for such purpose unless Covanta is given a “right of first
offer” with respect to such Systems. The term “right of first offer” means that
such Person offers Covanta, in writing, the right to invest 50 percent of the
cost of the project to be developed with such Systems and to own 50 percent of
such project (on an equal basis and terms with such Person) and the right to
operate such project or such other arrangement acceptable to such Person and
Covanta. Covanta shall notify such Person and Licensor, in writing, whether
Covanta wants to be involved in such project as a 50 percent owner and operator
or waive its right to do so. AK shall not enter into a Purchase Order with such
Person unless Licensor has satisfied the notice requirements of this Section
2.1(d) and Covanta elects to not participate in the project. 

Section 2.2 Obligations During Interim Period. During
the Interim Period, Covanta shall: 

     (a) Purchase and install, at its
sole cost and expense, a demonstration plant (the “Demonstration Plant”) using
Household Waste and/or Contracted Waste which shall be comprised of a single KDV
500 (it being agreed that Covanta shall determine, in its sole discretion,
whether to order the KDV 500 with a single proprietary mixing turbine pump or
two such pumps) at a site designated by Covanta in Territory A; 

     (b) Use commercially reasonable
efforts to permit and complete installation of the Demonstration Plant to enable
it to achieve commercial operation on or before October 1, 2008, subject to the
commitment of AK to deliver the KDV 500 (with one or two proprietary mixing
turbine pumps as is ordered by Covanta) on or before such date and such other
factors that are outside of the control of Covanta; 

     (c) Working together in good
faith with Licensor, within thirty (30) days of the Effective Date, develop a
plan which will define the requirements for a performance test for the
Demonstration Plant, including the duration of the test, the availability, 

7 

reliability, conversion efficiency and other relevant factors
and such other parameters as the Parties and AK may agree, consistent with
prudent engineering practices; 

     (d) Use commercially reasonable
efforts to conduct the performance test during the first six (6) months
following the commissioning of the Demonstration Plant or as soon as thereafter
possible;

     (e) Operate and maintain the KDV
500 (with one or two proprietary mixing turbine pumps as is ordered by Covanta);
and 

     (f) Notify Licensor in writing
whether it wants to proceed to the Initial Period at least sixty (60) days prior
to the expiration of the Interim Period, unless the Interim Period is being
terminated earlier in accordance with the proviso in the definition of the term
“Interim Period,” in which case such notice shall be given at least fifteen (15)
days prior to the end of the Interim Period. 

Section 2.3 Retention of Full Rights. In order for
Covanta to retain the Full Rights in Territory A that are being granted to it by
Licensor pursuant to Section 2.1, following the satisfaction of the two (2)
conditions set forth in Section 2.1(a), during the Initial Period and the
Extended Period, the following shall apply:

     (a) During the Initial Period,
Covanta shall be required to place Purchase Orders for a number of KDV 500s, on
a cumulative basis, measured at the end of each calendar year (such number to be
pro-rated to account for any partial years) as follows: 

	Year 1 	Total of 5 KDV 500s; 
	Year 2 	Total of 20 KDV 500s; 
	Year 3 	Total of 40 KDV 500s; 
	Year 4 	Total of 70 KDV 500s; 
	Year 5 	Total of 110 KDV 500s; 
	Year 6 	Total of 170 KDV 500s; 
	Year 7 	Total of 250 KDV 500s; 
	Year 8 	Total of 350 KDV 500s; 
	Year 9 	Total of 475 KDV 500s; and
  
	Year 10 	Total of 600 KDV 500s.

During the Extended Period, Covanta shall be required to place
Purchase Orders for a number of KDV 500s, on a cumulative basis, measured at the
end of each calendar year (such number to be pro-rated to account for any
partial years) as follows:

	Year 1 	Total of 150 KDV 500s; 
	Year 2 	Total of 300 KDV 500s; 
	Year 3 	Total of 450 KDV 500s; 
	Year 4 	Total of 600 KDV 500s; and 
	Year 5 	Total of 750 KDV 500s;
  

8

     (b) For purpose of meeting any of
the minimum order thresholds for KDV 500s which are set forth in Section 2.3(a),
if a System is developed by AK (such as the “KDV 2000” which is currently under
development by AK) that is capable of producing a higher amount of diesel oil
per hour than a KDV 500 (expected to be 2,000 liters per hour in the case of a
“KDV 2000” as compared to 500 liters per hour for a KDV 500), then such System
will count as more than one KDV 500 based on the amount of diesel oil per hour
capable of being provided (expected to be four KDV 500s in the case of a “KDV
2000”). 

     (c) If the Feedstock for any
Project installed by Covanta requires Covanta to secure more than 25 tons per
day of Feedstock per KDV 500 to produce 500 liters per hour of diesel oil
output, then the number of KDV 500s credited towards meeting the minimum order
threshold for KDV 500s set forth in Section 2.3(s) in connection with such
Project shall be adjusted upwards to account for the incremental Feedstock that
has to be secured by Covanta. For example, if Covanta purchases five KDV 500s
for a Project that will use Household Waste and Covanta has to secure 150 tons
of Household Waste per day instead of 125 tons of Household Waste per day to
produce 2,500 liters of diesel oil per hour from such Project, then Covanta will
be credited as having ordered six KDV 500s for such Project instead of five KDV
500s. 

     (d) If Covanta fails to order the
minimum number of KDV 500s (or equivalent Systems) in any given year to satisfy
the cumulative requirements for such year set forth in Section 2.3(a), then
Covanta shall be given one year (the “Recovery Year”) to regain its Full Rights
in Territory A by achieving the cumulative threshold requirement that is
applicable as of the end of such Recovery Year. During the Recovery Year,
Covanta’s license rights in Territory A shall be Qualified Rights with respect
to Licensor. However, Licensor shall not be entitled to grant Full Rights to any
other Person with respect to those rights that were formerly Full Rights of
Covanta hereunder. During the Recovery Year, Licensor shall have the right to
sell Systems to Persons other than a Competitor of Covanta. If Covanta satisfies
the cumulative requirement at the end of the Recovery Year (or Licensor accepts
that the cumulative requirement has been satisfied), Covanta shall regain it
Full Rights in Territory A. If Covanta fails to regain its Full Rights during
the Recovery Year, its license rights in Territory A thereafter shall be
Qualified Rights thereafter. 

     (e) Notwithstanding anything
contained herein to the contrary, Covanta shall not lose its Full Rights in
Territory A if Covanta fails to meet the cumulative order requirements in
Section 2.3(a) if (i) AK is not able to produce enough Systems to meet Covanta’s
Purchase Orders or (ii) any problems experienced with the Technology in the
Systems installed by AK make it commercially unreasonable for Covanta to order
any additional Systems until such problems are resolved, in which case the
Parties shall agree to an equitable adjustment, in good faith, to the cumulative
requirements provisions of Section 2.3(a) . 

Section 2.4 Other Projects. Covanta is not authorized
hereunder to develop a project using the Technology for a feedstock that is not
included in the definition of Feedstock in 

9

Territory A or Territory B or in a location (regardless of
feedstock) outside of Territory A or Territory B. If Covanta wants to develop
any such project, Covanta shall first be required to contact Licensor for its
prior approval. Licensor shall determine whether the proposed project would
violate any rights that have been granted by Licensor to any Person and, if not,
whether Licensor is willing to agree to have Covanta pursue such project, any
such approval to be provided in writing. Notwithstanding anything which is
contained herein to the contrary, Covanta shall have the right to purchase up to
ten (10) KDV 500s to install at any of Covanta’s waste to energy facilities.

Section 2.5 Sale of Systems to Certain Governmental
Organization. Licensor is aware that Covanta often deals with municipalities
and governmental organizations (collectively referred to as “Governmental
Organizations”) which have the responsibility to dispose of waste in their
jurisdiction and that such Governmental Organizations sometimes insist on owning
the systems and facilities that process or dispose of such waste. In such cases,
Covanta will seek to arrange for the procurement and installation of such
systems and facilities and operate them under a long-term contract. If Covanta
has an opportunity to sell one or more Systems to a Governmental Organization
that insists on owning such Systems, Covanta shall be entitled to arrange for
the sale of such Systems pursuant to a Purchase Order as provided for in Section
2.6, but only if Covanta or one of its Affiliates has entered into an agreement
with the Governmental Organization providing that the Systems will be operated
by Covanta for a minimum period of ten (10) years. 

Section 2.6 Purchase Orders. All purchase orders for
System(s) (“Purchase Orders”) shall be entered into by and between AK (or its
designee) and the ultimate purchaser of such System(s) (the “Purchaser”),
although all Purchase Orders shall be placed through Licensor. Each Purchase
Order shall include a set of representations and warranties made by AK to the
Purchaser which are consistent with those provided by Licensor to Licensee in
Article 8 and a non-exclusive, irrevocable and perpetual license (a “Use
License”) for the Purchaser to (i) use, practice, operate, maintain, repair and
make Improvements to the System(s), (ii) purchase the catalyst that is required
for the operation of the System(s) from AK and/or any Person that is authorized
to manufacture and/or sell such catalyst by AK, (iii) purchase components and
spare parts for the System(s) from AK and/or any Person that is authorized to
manufacture and/or to sell such components and spare parts and (iv) reproduce,
modify and internally distribute copies of any and all materials and information
received by Licensee from Licensor and/or AK relating to the System(s), in whole
or in part. In addition, if the Purchaser sells or transfers any of the
System(s) to any Person (a “Third Party Purchaser”), the Purchaser shall be
entitled to transfer its Use License to such Third Party Purchaser and each
Third Party Purchaser shall be entitled to transfer such Use License to another
Third Party Purchaser. Notwithstanding anything to the contrary contained or
implied in clauses (ii) or (iii) of this Section 2.6, all Purchasers and all
Third Party Purchasers shall be entitled to procure components, spare parts and
catalysts that are commercially available from any Person. Further, if AK and
the Persons authorized to make spare parts and components that are not
commercially available are unable to timely supply the spare parts and
components ordered by a Purchaser or a Third Party Purchaser, such Purchaser or
Third Party Purchaser shall be 

10

authorized to purchase such spare parts and components from any
other Person and to make such spare parts and components itself. 

ARTICLE 3 – CONSIDERATION 

Section 3.1 System Price of Demonstration Plant. The
purchase price of the KDV 500 to be ordered for the Demonstration Plant shall be
[*****], which includes the cost of the equipment and components that are
required to recover the catalyst, and the cost of delivering the KDV 500 to the
Demonstration Plant site in the United States, assembling it, starting it up and
making it ready for commercial operation. Such price does not include (i) a
[*****] percent sales commission due to Licensor or others, (ii) the additional
cost for any sulfur reduction equipment or (iii) the additional cost for the
equipment that is needed to process the Feedstock. Licensor agrees that no
commission shall be due to it with respect to the Demonstration Plant. If
Covanta decides to order the KDV 500 with a single proprietary mixing turbine
pump, the price of the KDV 500 shall be [*****]. 

Section 3.2 Sulfur Reduction Equipment. If sulfur
reduction equipment is required for the Demonstration Plant, Covanta shall have
the right to require AK to provide such equipment as part of the System being
delivered, assembled, started up and made ready for commercial operation, the
cost of which shall not exceed [*****]. 

Section 3.3 Reduction in Cost of Systems. Licensor
anticipates that the base price of Systems will decrease as AK expands the
production facilities for manufacturing Systems and puts arrangements in place
with third party suppliers for pipes, valves and other basic components of the
System that can be purchased from such third party suppliers and once it is no
longer necessary for Licensor to build and test each System and then disassemble
it for shipment. Licensor and Covanta will cooperate together in good faith and
with AK to seek ways to help reduce the cost of manufacturing and delivering
Systems. 

Section 3.4 Annual Pricing. Licensor, Covanta and AK
shall agree on a procedure to establish the price, at the end of each November,
for the following year, of (i) Systems, (ii) the catalyst that is used with the
Technology, (iii) replacement/spare parts for Systems and (iv) the cost for AK
or Licensor to provide services on Systems or other engineering services in
order to (a) ensure that such prices are not increased inappropriately from year
to year and (b) to provide price certainty to Covanta for the upcoming year in
connection with the Projects that it has under development. The Parties are
aware that the current price of a KDV 500 includes a technology fee of [*****]
and acknowledge that the minimum technology fee to AK from the sale of a System
in the future, as arrangements are put in place by AK to broaden the
manufacturing base and reduce the total cost of the Systems will include a
technology fee not to exceed [*****]. Licensor, Covanta and AK shall use their
best efforts to negotiate in good faith and agree as soon as practicable to the
terms of such procedure and any other mechanisms that may be necessary or
helpful to determine the pricing for the Systems or any other items. Licensor
shall provide Covanta, prior to the end of each November, with the updated
pricing for the following year. Licensor further agrees (and AK, by its
execution of this Agreement in the space provided below, agrees) that Covanta
will not be charged more during any year for a 

11 

purchase of one or more Systems for delivery in a country than
the lowest price that is paid by any other licensee of Licensor or customer of
AK for delivery in such country in connection with a purchase of a comparable
number of Systems in such year. 

Section 3.5 No Royalties. Neither Covanta (or its
Affiliates) nor any Purchasers or Third Party Purchasers shall be required to
pay royalties to Licensor, AK, Global or any other Person in connection with the
exercise by Covanta or its Affiliates of any of the license rights in the
Technology granted under this Agreement.

Section 3.6 Payment to AK. Upon the execution of this
Agreement by Licensor and the execution of the Acknowledgment and Agreement by
Dr. Christian Koch and AK in the space provided below, Covanta shall pay the sum
of [*****] to AK, the full amount of such payment to AK to be credited against
the Purchase Price for the Demonstration Plant under the Purchase Order for the
Demonstration Plant. 

ARTICLE 4 – CERTAIN OBLIGATIONS OF THE PARTIES 

Section 4.1 Supply of Information. Licensor shall supply
Covanta from time to time with all information relating to the installation and
operation of Systems reasonably required or requested by Covanta. Further,
Licensor and/or AK shall provide Covanta with any revised or updated
installation or operating manuals or bulletins as soon as such materials are
completed and available for distribution. 

Section 4.2 Provision of Technical Assistance.
Notwithstanding Section 4.1, Licensor shall not have any obligation to provide
any engineering services or technical assistance regarding the Technology or the
Systems under this Agreement. Any such services and assistance may be provided
under other agreements with Licensor or with AK. 

Section 4.3 Acknowledgment and Agreement. Licensor shall
arrange for Dr. Christian Koch to execute this Agreement in the space that is
provided below, on behalf of himself and in his capacity as the President of AK,
to evidence (i) their acknowledgement that they have reviewed this Agreement and
agree to any obligations on their parts, (ii) their consent to the terms of this
Agreement and (iii) their agreement for AK to enter into a substantially similar
form of license agreement with Covanta if the rights of Licensor pursuant to or
as contemplated by the Rights Agreements are not supplemented to the extent
necessary to enable Licensor to grant all of the rights being granted to Covanta
hereunder or if any such rights granted to Licensor are terminated for any
reason, such new license agreement to preserve Covanta’s Full Rights and/or
Qualified Rights in Territory A and Territory B.

Section 4.4 Cooperation with Demonstration Plant.
Licensor acknowledges that there are a number of Improvements that could be made
with respect to the design and fabrication of the Technology that will enable
the Demonstration Plant to be more effective and that feedback from the initial
start-up and operation of the Demonstration Plant may yield additional
possibilities for design and fabrication Improvements. Licensor agrees that
Licensor and AK shall cooperate with Covanta to work on any such 

12 

Improvements to the Technology prior to AK completing the
manufacturing of the System that is ordered for the Demonstration Plant, as well
as following the delivery, start-up and operation of such System. 

Section 4.5 Purchase of the System for the Demonstration
Plant. Covanta shall place the Purchase Order for the System required for
the Demonstration Plant, and the Parties shall cooperate with one another in
good faith in connection therewith, as follows: 

     (a) During the ninety (90) day
period following the execution hereof, Covanta and Licensor shall perform a
detailed review of the results of the testing of the facility in Eppendorf,
Germany and all other relevant information that is available to the Parties and
their Affiliates, and provide all such information, along with suggestions for
any potential Improvements that can be made to the System, to AK to ensure that
the System which is ordered for the Demonstration Plant will take into account
all of such information and suggestions. During such period, it is the
expectation of the Parties that they and their Affiliates will review and
evaluate the mechanical process of the System and provide all information
regarding such review and evaluation to AK. 

     (b) During the ninety (90) day
period provided for in Section 4.5(a), Licensor shall assist Covanta in
negotiating the terms of the Purchase Order for the System for the Demonstration
Plant with AK. The Purchase Order shall reflect the following terms and
conditions and otherwise be acceptable to AK and Covanta: 

	 	(i) 	
      A purchase price (the “Purchase Price”) consistent with
      the terms of this Agreement, including Section 3.1 and 3.2;

	 	 	 
	 	(ii) 	
      A down payment equal to [*****] to AK by Covanta at the
      time this Agreement is signed as provided for in Section 3.6;

	 	 	 
	 	(iii) 	
      The delivery by AK of a comprehensive package of
      documents for the System (the “Document Package”), including all
      preliminary drawings, detailed heat and material balances, interface
      control documents, equipment specifications, piping and instrumentation
      diagrams, a System manufacturing plan and such other documents as the
      Parties agree should be made available by AK for review by
  Covanta;

	 	 	 
	 	(iv) 	
      Within twenty-one (21) days following the delivery of a
      complete Document Package, AK, Licensor and Global shall meet to review
      the Document Package and discuss any comments of, or changes being
      proposed by, Covanta and work out any final changes to the Document
      Package;

	 	 	 
	 	(v) 	
      Within fifteen (15) days of agreeing on the Document
      Package, a payment of [*****]by Covanta to AK if the KDV 500 is being
      ordered with two proprietary mixing turbine pumps or a
  payment

13

	 		
      of [*****] by Covanta to AK if the KDV 500 is being
      ordered with only one proprietary mixing turbine pump;

	 	 	 
	 	(vi) 	
      The right for Covanta to make one or more visits to AK’s
      facility to review the fabrication of the System to confirm that the
      System is being fabricated in accordance with the Document
  Package;

	 	 	 
	 	(vii) 	
      The obligation for AK to successfully test the completed
      System at AK’s fabrication facility in Germany, it being agreed that
      Covanta shall be given at least fifteen (15) days prior written notice of
      such test and the right to have one or more individuals attend the test to
      verify that such test was successfully completed, following which AK shall
      disassemble the System, prepare the System for shipment and ship the
      System;

	 	 	 
	 	(viii) 	
      A payment of fifty percent (50%) of the balance of the
      Purchase Price (i.e., the difference between the Purchase Price and
      all of the amounts paid previously by Covanta to AK, such balance amount
      to be referred to herein as the “Purchase Price Balance”) to AK by Covanta
      once the System has been successfully tested at AK’s fabrication facility,
      disassembled for shipment and placed on a ship for delivery to the United
      States;

	 	 	 
	 	(ix) 	
      A payment of twenty-five percent (25%) of the Purchase
      Price Balance to AK by Covanta once the System has been physically
      delivered to the site of the Demonstration Plant and it has been erected,
      assembled and deemed to be mechanically complete; and

	 	 	 
	 	(x) 	
      A final payment of twenty-five percent (25%) of the
      Purchase Price Balance to AK by Covanta once the System has passed all
      tests required for it to be deemed to be ready for commercial
      operation.

     (c) At the end of the ninety (90)
day period provided for in Section 4.5(a), the Purchase Order for the System for
the Demonstration Plant shall be placed by Covanta through Licensor, such
Purchase Order to reflect a credit for the [*****] payment made by Covanta to AK
at the time this Agreement is signed in accordance with the provisions of
Section 3.6. 

ARTICLE 5 – EFFECTIVE DATE AND TERM 

Section 5.1 Effective Date. This Agreement shall become
effective on the date that it has been signed by both of the Parties and by Dr.
Christian Koch (the “Effective Date”).

14

Section 5.2 Term of the Agreement. This Agreement shall
continue in effect from the Effective Date until July 1, 2028 unless it is
terminated earlier by the provisions hereof or by either Party in accordance
with its rights hereunder. 

ARTICLE 6 – INTELLECTUAL PROPERTY 

Section 6.1 No Transfer of Ownership of the Technology.
The Parties agree that this Agreement shall not transfer the ownership of the
Technology or any of the Intellectual Property therein, and that Covanta will
not have any right, title or interest in or to the Technology, except as set
forth in Section 6.2 or as expressly licensed to Covanta pursuant to this
Agreement or any separate agreement.

Section 6.2 Improvements. All Improvements conceived,
developed or acquired by AK or Licensor during the term hereof shall be included
under the license rights granted herein. All such Improvements conceived,
developed or acquired exclusively by AK or Licensor shall remain the property of
AK or Licensor, respectively. All processes, components, systems or other
technology, whether or not constituting an Improvement, conceived, developed or
acquired exclusively by Covanta shall remain the property of Covanta.

Section 6.3 Covanta Technologies. Licensor acknowledges
that Covanta is engaged in operating, developing, creating, manufacturing,
marketing, reproducing, distributing, using, licensing and otherwise
commercializing a variety of technologies, components and applications relating
to processing waste and creating energy from a variety of waste sources. In
connection with this line of business, Covanta owns or otherwise has rights in
intellectual property as of the Effective Date and may acquire other ownership
or rights in other intellectual property after the Effective Date. Licensor
acknowledges and agrees that Covanta shall not have any obligation under this
Agreement to disclose to Licensor or make available for use by Licensor any such
intellectual property. 

Section 6.4 Sharing of Intellectual Property. If either
Party wants to expand the scope of their business relationship and disclose to
the other Party intellectual property that has been independently developed or
acquired, but which is not otherwise expressly covered by the terms of this
Agreement and the other Party is interested in such disclosure, the Parties
shall enter into a written agreement identifying such intellectual property and
the terms and conditions relating to the disclosure and use thereof. 

ARTICLE 7 – INFRINGEMENT AND DESIGNATIONS 

Section 7.1 Notice of Infringements. During the term
hereof, Licensor and Covanta shall promptly notify each other in writing with
respect to any claim of infringement of any Patent or other right asserted
against it by any Person arising out of the exercise of the rights being granted
hereunder.

15

Section 7.2 Indemnity for Infringement or
Misappropriation. Licensor shall indemnify and hold harmless Covanta, its
Affiliates, any Purchasers and Third Party Purchasers (collectively, the
“Indemnified Parties”) from any and all claims of infringement or
misappropriation and attendant damages and costs by virtue of the exercise of
the rights granted to an Indemnified Party hereunder or under any Purchase
Order. To secure the indemnity provided for in this Section 7.2, the Indemnified
Party shall: (i) provide notice to Licensor of the claim giving rise to the
liability as soon as reasonably practicable after receiving a notice of the
claim, it being agreed that any delay in providing such notice to Licensor shall
not relieve Licensor of its indemnity obligations except to the extent it was
prejudiced by such delay; and (ii) use reasonable business efforts to cooperate
fully with Licensor in defending the claim; provided, however,
that Licensor shall not enter into any settlement or compromise creating any
payment obligation, admission or other obligation on the part of any Indemnified
Party without such Indemnified Party’s prior written consent. The Indemnified
Parties shall permit Licensor to defend and compromise such claim, but each
Indemnified Party may employ its own counsel, at its own expense, to assist
Licensor with respect to any such claim. Notwithstanding the foregoing, the
Indemnified Parties shall not be entitled to indemnification hereunder if the
infringement is due to the Indemnified Party or its Affiliates: (i) using the
System in violation of the express written operating instructions that are
provided by AK if the subject claim would have been avoided but for such
unauthorized use; or (ii) modifying the System in a manner which is not
authorized by Licensor which actually causes such infringement if the subject
claim would have been avoided but for such modification. 

Section 7.3 Use of Designations. If requested by
Licensor in writing, Covanta shall, in accordance with the written instructions
of Licensor, provide for any System or any part of the Technology, legible
statutory notice of any Patent, the existence of the license herein granted and
the identity of Licensor and/or AK. Notwithstanding anything contained herein to
the contrary, no rights are being granted by either Party to the other regarding
their respective trade names or trademarks.

Section 7.4 Limitation of Liability. The Parties
expressly waive any claims against each other and their respective Affiliates
for indirect, special, non-compensatory, incidental, punitive, exemplary or
consequential damages of any type, whether arising in contract or tort
(including negligence, whether sole, joint or concurrent or strict liability),
arising out of or relating to this Agreement or a breach hereof;
provided, however, that this provision shall not waive any claims
that the Parties may have under any other agreements entered into between the
Parties. The limitations on liability and the remedies set forth in this
Agreement have been expressly bargained for by the Parties and reflect the
knowing allocation of the risks inherent in this Agreement between the Parties.

ARTICLE 8 – REPRESENTATIONS AND WARRANTIES 

Section 8.1 Party Representations. As of the Effective
Date, each Party represents and warrants to the other Party that: 

16

     (a) It is duly organized and
validly existing and, where applicable, is in good standing under the laws of
the jurisdiction of its formation and it has all requisite power and authority
to enter into and perform its obligations under this Agreement;

     (b) The execution, delivery and
performance of this Agreement have been authorized and approved by its Board of
Directors and do not and will not (i) violate any law, rule, regulation, order,
decree or permit which is applicable to it or (ii) violate its organizational
documents or any agreement to which it is a party; 

     (c) This Agreement is a legal and
binding obligation of such Party, enforceable against such Party in accordance
with its terms, except to the extent enforceability is modified by bankruptcy,
reorganization and other similar laws affecting the rights of creditors
generally and by general principles of equity; and 

     (d) There is no litigation
pending or, to the best of its knowledge, threatened to which such Party, its
parent or any of its subsidiaries is a party that, if adversely determined,
would have a material adverse effect on the financial condition, prospects or
business of such Party or its ability to perform its obligations under this
Agreement. 

Section 8.2 Licensor Representations Regarding the
Technology. As of the Effective Date, Licensor represents and warrants to
Covanta, its Affiliates and each Purchaser and Third Party Purchaser that:

     (a) A list of all relevant
Patents as of the Effective Date is set forth in Exhibit 2 attached hereto and
all such Patents are current and valid as of the Effective Date with any and all
required fees to maintain the same having been paid; 

     (b) Licensor has licensed or
otherwise has or otherwise will secure the rights in and to the existing and
future Technology, including Intellectual Property necessary for Licensor to
grant to Covanta the rights being granted in this Agreement, and there are no
rights, options or other contractual obligations on the part of AK, Dr.
Christian Koch or any other Person that would result in such Technology,
including Intellectual Property, no longer being owned by or licensed to AK or
licensed by Licensor, and AK shall maintain, prosecute and defend (or cause any
other Person that owns any Patents to maintain, prosecute and defend) all
Patents and pay all fees in connection therewith;

     (c) The Technology, including
Intellectual Property, does not use or include or rely on any third party
intellectual property and no third party owns any rights, including intellectual
property rights, necessary to Covanta’s exercise of any of its rights under this
Agreement that have not been licensed to AK; 

     (d) Except for any rights granted
to Global or to American Renewable Diesel, LLC, no rights have been provided to,
or authorized for, any Person to exercise any rights in, the Technology,
including the Intellectual Property, which are inconsistent with the rights
granted to Covanta hereunder; 

17

     (e) The Technology as currently
used by AK and as planned to be used by Licensor and Covanta in accordance with
the terms of this Agreement, does not infringe, misappropriate or otherwise
violate any patent, copyright, trademark, trade secret or other proprietary or
intellectual property right of any Person, and AK and/or Licensor have not
received, and to its knowledge does not know of any facts that could give rise
to, any charge, complaint, claim, demand, notice or other communication (i)
alleging any such infringement, misappropriation or other violation, (ii)
requesting that AK and/or Licensor take a license from any Person or (iii)
challenging the validity or enforceability of the Intellectual Property. AK
and/or Licensor has no knowledge of any current or threatened infringement,
misappropriation or other violation by any Person of the Intellectual Property,
and AK and/or Licensor has not, and has no knowledge of any facts that would
require that there be, sent or otherwise communicated to any Person any charge,
complaint, claim, demand or notice asserting infringement, misappropriation or
other violation of any of any such Intellectual Property; and 

     (f) Licensor has provided Covanta
with a true and correct copy of the Rights Agreements and there has not been any
amendment to the Rights Agreements since they were executed. Licensor shall
provide Covanta with a true and correct copy of any amendments made to the
Rights Agreements during the term hereof and a copy of any additional agreements
entered into by Licensor with AK or Dr. Christian Koch regarding the rights of
Licensor with respect to the Technology. Licensor shall provide Covanta with a
copy of any default notice or any similar communications received by Licensor
from AK during the term hereof and provide Covanta with updates from time to
time regarding the resolution of any such termination notice. Licensor shall not
agree to or make any amendment to any of the Rights Agreements or enter into any
other agreements regarding its rights to the Technology that would reduce or
affect any of Covanta’s rights under this Agreement. 

ARTICLE 9 – RESOLUTION OF DISPUTES 

Section 9.1 Dispute Resolution. The Parties agree to
cooperate with each other in good faith to try to resolve any controversy or
dispute between them arising under this Agreement (each a “Dispute”) in
accordance with the following procedures: 

     (a) If a Dispute cannot be
resolved informally, such Dispute shall initially be referred, through written
notice by one Party to the other Party, to a meeting of senior management
representatives of the Parties. The senior management representatives will meet
to resolve the Dispute within fifteen (15) days following presentation of the
matter to them. 

     (b) If the Dispute cannot be
resolved pursuant to Section 9.1(a), the Chief Executive Officers of the Parties
shall meet to resolve the Dispute within fifteen (15) days following the
conclusion of the consideration of the Dispute under Section 9.1(a) .

18

     (c) If the matter is not resolved
within thirty (30) days of the written notice in Section 9.1(a), either Party
may submit the Dispute to arbitration by submitting a Request for Arbitration
pursuant to Article 4 of the Rules of Arbitration of the ICC or such equivalent
arbitration rules of the ICC then in effect (the “ICC Rules”), provided that
nothing in this Agreement shall prevent or delay either Party from applying for
interim or conservatory measures pursuant to Article 23 of the ICC Rules.

Section 9.2 Arbitration of Unresolved Disputes. 

     (a) All Disputes arising out of
or in connection with this Agreement that are not resolved in accordance with
the provisions of Section 9.1 shall be finally settled under the ICC Rules by
binding arbitration conducted in the English language and held in Washington,
D.C. before a panel of three (3) arbitrators. Notwithstanding anything to the
contrary in the ICC Rules, the following procedures shall apply for the
appointment of the three (3) arbitrators. Each Party shall appoint one (1)
arbitrator, obtain its appointee’s acceptance of such appointment and deliver
written notification of such appointment and acceptance to the other Party
within thirty (30) days from the date that the Dispute was submitted to
arbitration. If a Party fails to deliver written notification of its appointment
of an arbitrator and his/her acceptance within the time period provided in this
Section 9.2, then such arbitrator shall be appointed by the ICC in accordance
with the ICC Rules and be deemed a Party-appointed arbitrator for all purposes
hereof. The first two arbitrators so selected shall select the third arbitrator
(who shall act as chairman of the arbitration proceedings), prior to the
thirtieth (30th) day following the appointment of the second
Party-appointed arbitrator. If the Party-appointed arbitrators are unable to
select a neutral arbitrator, they shall jointly submit a list of four names (two
each) to the ICC, which shall select the third arbitrator from the list
submitted to it. 

     (b) No arbitrator shall be a past
or present employee or agent of, or consultant or counsel to, a Party or any
Affiliate of a Party, unless such restriction has been waived in writing by the
other Party to the proceeding. 

     (c) The substantive law governing
the Dispute shall be the laws of the State of New York. 

     (d) The arbitrators shall have
the sole power and authority to determine the arbitrability of any Dispute
arising under or relating to this Agreement or the subject matter hereof.
Subject to any other relevant limitations set forth elsewhere herein, the
arbitrators will have the power to award any type of relief that is just and
appropriate in the arbitrators’ discretion, including compensatory damages,
injunctive orders, orders for specific performances and declarations of rights.

     (e) The arbitrators shall not
have power, however, to award punitive, consequential, exemplary or treble
damages or any other type of relief in the nature of a penalty, and the Parties
hereby expressly waive any right they might otherwise have to such relief. THE
PARTIES HEREBY WAIVE ALL RIGHTS TO A TRIAL BY JURY 

19

WITH RESPECT TO ANY DISPUTE ARISING OUT OF OR RELATING TO THIS
AGREEMENT. 

Section 9.3 Finality; Enforcement. Any decision or award
of a majority of an arbitral panel, as applicable, shall be final and binding
upon the Parties. Each Party agrees that the arbitral award may be enforced
against it or its assets wherever they may be found and that a judgment upon the
arbitral award may be entered in any court having jurisdiction thereof. The
Parties hereby waive any right to appeal or to review of the decision or the
award of an arbitral panel by any court or tribunal and also waive any
objections to the enforcement of such decision or award. 

Section 9.4 Costs. The costs of arbitration shall be
paid in accordance with the decision of the arbitral panel pursuant to the ICC
Rules. 

Section 9.5 Continuing Performance Obligations. The
existence of any Dispute or the pendency of the Dispute resolution procedures
set forth herein will not relieve or excuse a Party from its ongoing duties and
obligations under this Agreement, and the Parties shall nevertheless proceed
with the performance of this Agreement in accordance with the terms hereof. 

ARTICLE 10 – TERMINATION 

Section 10.1 Termination Rights. This Agreement may be
terminated by either Party in the case of the failure of the other Party to
fulfill any of its material obligations hereunder (a “Default”) on ninety (90)
days’ prior written notice to the Party in Default, such notice to specify the
performance failure of such Party.

Section 10.2 Cure Rights. Notwithstanding anything
contained herein to the contrary, a Party that is in Default shall be entitled
to cure such Default by satisfying its performance obligation prior to the end
of such ninety (90) day period. Furthermore, if such Party is diligently
proceeding to cure such Default but such cure cannot be accomplished within such
ninety (90) day period, the Party in Default shall be given up to an additional
sixty (60) days to cure the Default so long as such Party continues to
diligently pursue curing the Default. If the Default is cured by the Party that
is in Default prior to the end of the cure period, then the notice of
termination shall be null and void. If a Party fails to cure a Default, then
this Agreement shall terminate on the date set forth in the notice of Default,
but in no event prior to ninety (90) days following the issuance of such notice
of Default. 

Section 10.3 Right to Retain the License.
Notwithstanding anything contained herein to the contrary, if Licensor is in
Default for a failure to perform any material obligation hereunder, Covanta
shall retain all the license rights and other rights granted to Covanta
hereunder, without any obligation to purchase any System through Licensor. In
such case, Covanta shall place all Purchase Orders through AK. 

20

Section 10.4 Termination by Licensor. If Licensor
terminates this Agreement based on a failure of Covanta to fulfill any of its
material obligations hereunder, Covanta shall not be relieved of the limitations
and restrictions imposed by this Agreement upon the use or dissemination of the
Technology and/or the Systems which is not at such time in the public domain;
and that for installed Systems, Covanta shall retain all the license rights and
other rights granted to Covanta hereunder. 

ARTICLE 11 – GENERAL PROVISIONS 

Section 11.1 Expenses. Except as is otherwise expressly
provided in this Agreement, each Party will bear its respective expenses
incurred in connection with the preparation, execution and performance of this
Agreement. 

Section 11.2 Confidentiality. The Parties agree to
maintain the confidentiality of this Agreement and the terms and conditions
hereof. Any public announcements or similar publicity with respect to this
Agreement shall be issued at such time and in such manner as the parties shall
jointly determine. Notwithstanding the foregoing, each Party (and its
Affiliates) shall have the right to make all such disclosures as required by
applicable law or by any governmental body, including any stock exchange or
securities market to whose regulations or disclosure requirements a Party is
subject, without the consent of the other Party hereto; provided,
however, that in the event of any such required disclosure, the
disclosing Party (and its Affiliates), to the extent reasonably practicable,
shall provide the other Party with advance notice of any such disclosure and an
opportunity to comment thereon. The parties acknowledge that it is their intent
to limit, to the fullest extent possible, any publicity regarding their joint
cooperation during the Interim Period, it being recognized, however, that
Covanta will need to contact public officials in connection with securing
permits or other approvals for the Demonstration Plant. In such regard, Covanta
will undertake to obtain assurances of confidentiality from such public
officials, but disclosures may nevertheless result. 

Section 11.3 Notices. All notices, consents, waivers and
other communications under this Agreement must be in writing and will be deemed
to have been duly given when (i) delivered by hand (with written confirmation of
receipt), (ii) sent by telecopier (with written confirmation of receipt),
provided that a copy is mailed by registered mail, return receipt requested, or
(iii) when received by the addressee, if sent by a nationally recognized
overnight delivery service (receipt requested), in each case to the appropriate
addresses and telecopier numbers set forth below (or to such other addresses and
telecopier numbers as a party may designate by notice to the other parties):

Licensor: 

AlphaKat - Global Energy GmbH

Schulstrasse 8 

21

96155 Buttenheim, Germany

Attention: Chief Executive Officer 
Facsimile: +49-9545-950325 

Covanta: 

Covanta Energy Corporation 
c/o
Covanta Holding Corporation 
40 Lane Road 
Fairfield, NJ 07004, USA

Attention: General Counsel 
Facsimile: +1-973-882-7357 

Section 11.4 Waiver. Neither the failure nor any delay
by either Party in exercising any right, power or privilege under this Agreement
shall operate as a waiver of such right, power or privilege, and no single or
partial exercise of any such right, power or privilege will preclude any other
or further exercise of such right, power or privilege or the exercise of any
other right, power or privilege. To the maximum extent permitted by applicable
law, (i) no claim or right arising out of this Agreement can be discharged by
one Party, in whole or in part, by a waiver or renunciation of the claim or
right unless in a writing signed by the other Party, (ii) no waiver that may be
given by a Party will be applicable except in the specific instance for which it
is given and (iii) no notice to or demand on one Party will be deemed to be a
waiver of any obligation of such Party or of the right of the Party giving such
notice or demand to take further action without notice or demand as provided in
this Agreement. 

Section 11.5 Entire Agreement and Modification. This
Agreement supersedes all prior agreements between the Parties with respect to
its subject matter and constitutes a complete and exclusive statement of the
terms of the agreement between the Parties with respect to its subject matter.
This Agreement may not be amended except by a written agreement executed by the
Party to be charged with the amendment. 

Section 11.6 Assignment. Neither Party may assign its
rights under this Agreement, in whole or in part, without the prior written
consent of the other Party, which consent shall not be unreasonably withheld or
delayed, except that each Party may make an assignment of this Agreement to an
Affiliate (so long as such Party remains liable for its obligations hereunder
following such assignment) and each Party may make a collateral assignment of
its rights hereunder to one or more lender(s) in connection with the financing
being arranged by such Party. In the case of a collateral assignment by one
Party to one or more lenders, the other Party shall, if requested to so,
negotiate the terms of a consent to assignment in good faith and enter into such
consent without delay. Notwithstanding the 

22

foregoing, a Party may withhold its consent in the case of a
proposed assignment to any Person that is a Competitor of the Party whose
consent is being sought.

Section 11.7 Severability. If any provision of this
Agreement is held to be invalid, illegal or unenforceable by any court of
competent jurisdiction, the other provisions of this Agreement will remain in
full force and effect. Any provision of this Agreement held invalid, illegal or
unenforceable only in part or degree will remain in full force and effect to the
extent not held invalid, illegal or unenforceable. 

Section 11.8 Governing Law. This Agreement will be
governed by, and construed in accordance with the laws of, the State of New York
without regard to its conflicts of law (other than Sections 5-1401 and 5-1402 of
the New York General Obligations Law).

Section 11.9 No Power of Representation. Neither Party
shall have the authority or right under this Agreement to, nor shall either
Party hold itself out as having the authority or right under this Agreement to,
(i) assume, create or undertake any obligation of any kind whatsoever, express
or implied, on behalf of or in the name of the other Party without the express
prior written consent of such other Party or (ii) accept service of any legal
process addressed to or intended for such other Party. 

Section 11.10 No Partnership. Nothing in this Agreement
shall be construed as creating a partnership, association, joint venture or any
other legal entity between the Parties (including their Affiliates), nor a
fiduciary relationship between the Parties (including their Affiliates). 

Section 11.11 No Third Party Beneficiaries. No provision
of this Agreement is intended or is to be construed to confer upon any Person,
other than the Parties and their respective Affiliates and successors and
permitted assigns, any rights or remedies under or by reason of this Agreement,
except for all Purchasers and Third Party Purchasers to the extent provided for
in Section 2.6. 

Section 11.12 Counterparts and Facsimile Signatures.
This Agreement, and any other agreement, instrument, certificate of other
documents desirable to be executed and delivered in order to consummate the
Contemplated Transactions, may be executed in one or more counterparts, each of
which will be deemed to be an original copy of this Agreement and all of which,
when taken together, will be deemed to constitute one and the same agreement.
Any such document may be executed by facsimile signature. The signatures below
of Covanta and Licensor also serve to state their agreement and position as
parties to the “Acknowledgement and Agreement” which is being signed below by
Dr. Christian Koch and AK. 

[Signature page follows] 

23

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

	 	ALPHAKAT - GLOBAL ENERGY GMBH 
	 	 	  
	 	 	  
	 	 	  
	 	By:	/s/ Yossi Raz
	 	 	Yossi Raz, Chief Executive Officer 
	 	 	Date: February 6, 2008 
	 	 	  
	 	 	  
	 	COVANTA ENERGY CORPORATION 
	 	 	  
	 	 	  
	 	 	  
	 	By:	/s/ Timothy J. Simpson
	 	 	Timothy J. Simpson, Executive Vice 
	 	 	President and General Counsel 
	 	 	Date: February 6, 2008 

Acknowledgment and Agreement: 

Dr. Christian Koch, in his capacity as President of AK and his
individual capacity hereby, as signed below, acknowledges he has reviewed this
License Agreement in its entirety, agrees to all of the terms hereof and
confirms that the representations and warranties that are made in Section 8.2
are true and correct. 

AK owns or has sufficient rights, and has granted Licensor
sufficient rights, to allow Covanta to exercise the rights granted under the
License Agreement. If for any reason the rights granted to Covanta by Licensor
are not sufficient to allow Covanta to exercise its rights under the License
Agreement, Dr. Christian Koch or AK shall convey or cause to be conveyed any and
all further rights needed by AK or Licensor to permit Covanta to exercise such
rights under the License Agreement. If the rights granted or to be granted to
Licensor are terminated for any reason or if Licensor ceases to exist, AK shall
enter into a substantially similar form of license agreement with Covanta, such
new license agreement to preserve the Full Rights and/or the Qualified Rights
granted to Covanta in Territory A and Territory B. Dr. Christian Koch agrees
that he will cause AK to perform its obligations hereunder. 

All capitalized terms herein have the meanings given in the
License Agreement. 

By:  /s/ Dr. Christian Koch 
Dr. Christian Koch

24

Date: February 6, 2008 

25

EXHIBIT 1 – RIGHTS AGREEMENTS 

Terms of Agreement dated May 2, 2007 
Shareholders’
Agreement dated July 10, 2007 
Articles of Association of Licensee dated
November 14, 2007 and November 22, 2007 

26

	May 2, 2007 
	  
	Terms of agreement between: 
	Global Energy Inc (GE) public company on NASDAQ
      OTCBB, 
	With offices in Israel at 
	Migdal Aviv 35 floor 
	7 Abba Hillel St., Ramat Gan, Israel 
	  
	And 
	  
	ALPHAKAT GMBH (AK) 
	Schlstrasse 8 
	D-96155 Buttenheim, Germany 

  	1. 	ALPHAKAT GMBH 

        (AK) Technology 	 AK and its principle
          Dr. Christian Koch developed owned and registered
          patents for technology to convert different types
          of Municipal solid Waste (MSW), organic materials,
          refinery sludge etc. into mineral diesel oil. The
          technology incorporates KDV plant and low temperature
          vacuum process including special patented catalyst
          and high speed turbine to distillate organics into
          diesel, all together the "technology" KDV500 has
          turbine of 2X200 KW, KDV5000 has turbine of 2X2000
          KW 

	2. 	AK demonstration 

        plants 	 AK has built five
          plants to demonstrate its technology in the following
          countries: Mexico, Canada, Spain, Bulgaria and Italy. The
          plants KDV500 in Spain, Canada and Bulgaria are in
          a phase of final commission, GE has started due diligence and visited the KDV500 in Bulgaria, GE also discussed with the principals of the Canadian operation to learn more about the KDV500 in the state of Toronto town Berrie, Canada. 

	3. 	GE and AK 

        cooperation 	 Both companies
          GE and AK are looking to find a framework to cooperate
          in developing the technology, the potential market,
          and establish long term relationship to bring the
          technology to its utmost potential. 

	4. 	GE contributions 	 GE can assist
          AK in the following fields: 

                    a     
          Financial support. 

                    b.  
           Assistance in corporate management, sales
          and after sales support. This will achieve by new
          joint marketing and 

                          
          Sales Company (M&S) as defined below.
          

                   
          c. Organizer of engineering and plant erection
          world wide. 

                    d. Manage of Joint Ventures in many countries
          to produce diesel by utilizing the technology. 

	5. 	AK contributions 	 AK and its principle
          Dr. Christian Koch can emphasize its valuable time
          for: 

  			          a.
        Continues R&D for perfection of the technology. 

                  b. Continues study to reduce the cost of
        the KDV units. 

                  c. Leading the R&D program for KDV
        5000. 

                  d. Support the team of building and erection
        of plants. 

                  e. Support field ideas from the Joint
        Ventures to maximize the technology. 
	 6. 
	 Phase one: Marketing
          

          and Sales Company 
	 AK and GE will
          establish a marketing and sales world wide marketing
          company with equal partnership. 

          The M&S will have exclusive right to sell the
          technology and plants worldwide. No other company
          will receive such exclusive rights. 

        AK will continue to sell the technology
          and plants with other and smaller turbine up to
          200 KW and 350 KW directly to any person in the
          world. 

          It is AK's option to give old or new contact for new
          plant to the joint M&S Company to continue the sales
          negotiations. 

          AK already gave exclusive rights for sales to: Italy,
          Spain, Portugal, Bulgaria, Mexico and Canada, and in
          Mexico and Spain for cooperation in mounting plants. 

                    o
          The end user of M&S Company will pay the cost
          of the plant directly to AK the price includes agreed
          fee of 10% to the joint M&S Company.
          

                    o GE will finance all the M&S Company
          activity in the world. 

                    o GE will deal with all permits required
          for erecting and selling the diesel in these
          countries. 

                    o GE will manage the company and will appoint
          the personnel to achieve the goals of sales and
          after sales maintenance for these plants. 

                    o GE will build a finance program to support
          the end user worldwide and allow them to pay the
          plant costs to AK. 

                    o AK will support all technical aspects
          of the company and the customers.

                    o
          AK and GE will agree of the company strategy and its annual plans. 

                    o AK has the right to vote against a specific
          decision of a deal. 

                    o The Joint Company will be the only company
          with such rights.

                    o
          The Joint Company will have the exclusive 

  			               
          right to sell any KDV turbine larger than and 350
          KW. 

	7. 	Order of 3 KDV 500 	 GE intends to
          order 3 KDV500 for Poland, USA and Israel.
          

          GE intends to start the permitting process for these 3
          KDV500 plant. 

          The price of one KDV500 will be 2.5 million Euros if
          GE will order one unit and 2.4 if GE will order all 3
          units together. 

          Payment terms: 

                    o 100,000 Euros for permitting process for
          all 3 units, AK and Dr. Koch will support the
          permitting and EIA process, 

                      
          if the process will require more hourly work then
          GE will pay additional hourly rate of 100 Euros
          for Dr. Koch, 

                      
          80 Euros for senior engineer and 60 Euros for technician.
          

                    o Second payment of 1.2 million Euros for
          ordering of 6 turbines. 

                    o Third payment for each plant of 50% -
          400K already paid for the 2 turbines payment when
          building permit received. 

                    o Fourth payment of 40% at delivery to site.
          

                    o
          Fifth payment of 10% after commission. 

	8. 	Monthly payment 	 GE directly or
          through the Joint Company will pay to Dr. Koch a
          salary of 10,000 Euro per month. 

	9. 	Initial Payment 	 The monthly payment
          will start subject to: 

          First payment of 10,000 Euro will be only after
          complete technical "Due Diligence (DD)" which will
          include: (i) laboratory test of sealed sample of diesel
          from KDV 500 and (ii) visit continues operation of
          KDV plants. 

	10. 	Phase two 	 AK and GE want
          to establish long term cooperation and allow the
          parties to know each other and achieve mutual trust
          in the technology and the people involved in the
          two companies. 

          GE will have the option to invest directly in AK. 

          For the money invested by GE in AK, GE will get shares of the Company as defined below. 

                    a.
          GE will pay the actual cost of the KDV2000 and AK
          will keep open books for that purpose GE will also
          be involved in this process. 

                    b.
          All the above said investment will consider as full price and payment for the first KDV5000 that GE will order. 

                    c.
          The investment for order of KDV5000 will be done by
          3 equal installments every 6 months starting at the
          end of the DD period. 

                    d.
          For the payment of the KDV5000 GE will get 

  			               
          10% shares of AK. 

                    e. AK will show all the information to representative
          of GE, and GE representative will assist AK as much
          as possible. 

                    f. The phase two is limited to start this year
          2007 with the first prepayment for ordering the
          necessary parts and payments of the first part of 2
          million Euros, when the payment is not released
          this year the agreement about phase two is cancelled. 

          AK acknowledges that GE is a public company and
          has to report to the Stock Exchange Commissioner
          (SEC) according to the law and AK will report accordingly.
          

          This investment will subject to full DD that will
          include: 

                    i. Patent and intellectual properties.
          

                    ii. Auditing company's balance sheets for the
          previous three years, including all bank loans
          and other obligations. 

                    iii. Full discloser of KDV 500 production
          

                    iv. Full discloser of shareholding and
          shareholding agreements with companies in
          the countries mentioned in section 2 above.
          

                    v. Full discloser of employee and subcontract
          agreements. 

                    vi. Discloser of all company's registration,
          article of association, legal aspects, past law
          sues, etc. 

                    vii. Board resolution. viii. Any other discloser that GE may request
          to comply with its obligation to SEC. 

                    ix. The money will invest in the company
          according to agreed milestones of the R&D program and the need of agreed working capital. 

                    x. AK will arrange in proper manner all the
          company's intellectual property, process; know
          how, drawings and engineering data. 

          This option for second DD period will be up to eight (8) months after the first payment of first phase. 

	11. 	DD period 	 GE will finalize
          its first DD period 30 days after the visit to an
          operational KDV 500 plant. 

	12. 	Final agreement 	 Upon mutual decision
          of both sides after the DD period GE and AK will
          work to draft a final agreement for development
          of KDV5000 GE in AK. The final agreement will include
          but not limited to: New Articles of Association,
          new Board of Directors, mechanism to achieve decisions,
          appointing of general 

  			manager CEO, appointing of CFO,
        dispute resolutions, etc. 
	13. 	First refusal 	AK agrees that if AK wants to sell
        part of AK shares to third party it will give right
        of first refusal to GE. 
	14. 	Termination of terms of agreement 	the This agreement
        is canceled automatically if one of the parties does not fulfill the obligations. 

 

   

	By: 	/s/ Dr. Christian Koch 	 	By: 	/s/ Mr. Asi Shalgi 
	 	Name: Christian Koch 	 	  	Name: Asi Shalgi 
	 	Title: CEO ALPHAKAT GMBH 	 	  	Title: CEO Global Energy 

July 10, 2007

SHAREHOLDERS’ AGREEMENT

THIS AGREEMENT is effective
  as of July 10, 2007 by and among GLOBAL ENERGY INC., a company incorporated under the laws of the
  State of Nevada (“GEYI”),
  and ALPHAKAT GMBH, a company incorporated under the laws of
  the State of Germany (“AK”),
  (each: a “Party” and
  together: the “Parties”).
  

WHEREAS, the Parties have incorporated a company in (to be defined later) under
  the name of Alphakat - Global Energy Inc (the “Company”), with GEYI to initially hold 50%
  of the shares and AK to initially hold the remaining 50% of the Shares; and
  

WHEREAS, the
  Parties desire to cooperate in order to promote the business of the Company
  in accordance with the provisions set forth herein.

NOW, THEREFORE,
  in consideration of the undertakings and the mutual covenants of the Parties
  hereinafter set forth, it is agreed as follows:

	1. 	 SHAREHOLDING
        IN THE COMPANY 

	 	  
	  

		 Each of the parties shall subscribe
        for the shares of the Company, in consideration for the shares’ par
        value, and the Company shall issue 50% of the Company's shares to GEYI,
        and 50% of the Company’s shares to AK (each such amount of the shareholding
        shall hereinafter be referred to as the “Shares”). 

	 	  
	  

	2. 	 MAIN
        PURPOSE
      

	 	  
	  

		 The Company’s purpose will
        be the worldwide marketing and sales of the Technology and the products
        (as these terms are defined bellow), or any such other activities as the
        Company may at any time determine, and to engage in any other lawful act
        or activity (the “Company’s Business”). 

	 	  
	  

		 For the purpose of this Agreement,
        the term "Technology" shall
        mean: the technology of KDV to convert waste containing hydrocarbons into
        mineral diesel oil. And the term "Products" shall
        mean any products ensuing or resulting from the Technology including KDV
        turbines. 

	 	  
	  

	3. 	 PLACE
        OF BUSINESS
      

	 	  
	  

		 The Company’s principal
        place of business shall be (TBD), unless determined otherwise by the Company’s
        Board of Directors. 

	 	  
	  

	4. 	 TRANSFER
        RESTRICTIONS 

	 	  
	  

		 4.1 
	 No Party shall sell, assign, transfer,
        pledge, hypothecate, mortgage or dispose of, by gift or otherwise, or
        in any way encumber (any of the above, "Transfer"), all or any part of the Shares
        owned by it (or securities convertible or exercisable therefore), other
        than in compliance with the terms of this Agreement or other than to a
        Permitted Transferee. For the purposes of this Agreement, "Permitted Transferee" shall mean an entity
        which is wholly owned or controlled by the Party. A transfer to a Permitted
        Transferee is only permitted if (i) each such transferee agrees in writing
        on a form prescribed by the Company 

	 		 to be bound by all of the provisions of
        this Agreement and (ii) any Transfer in interests in a Permitted Transferee
        shall be subject to all the transfer restrictions in this section and
        otherwise contained in this Agreement (section 5, 6 and 7) as if interests
        in such Permitted Transferee were shares in the Company. 

	 	 	  

	 	4.2 	 In no event may either Party Transfer any
        of their Shares to any person, entity, business or venture that competes
        with the Company's Business. 

	 	 	  

	 	4.3 	 Notwithstanding the foregoing, neither
        Party may Transfer any of its Shares during the first five (5) years following
        incorporation of the Company. 

	5. 	RIGHT OF FIRST
      OFFER (THE
      "RIGHT") 
	 	 	 
		5.1 	 If at any time either Party (the "Offeror")
        wishes to Transfer any or all of the Shares owned by him/it to a third
        party (the "Offered Shares"),
        then prior to soliciting an offer from, or making any such offer to, a
        third party, the Offeror shall first submit a written offer containing
        all material terms to the other Party (the "Offer") in respect of the Offered Shares.
      

	 	 	  

		5.2 	 Within sixty (60) days after receipt of
        the Offer, the other Party shall have the right to give notice to the
        Offeror of its intent to purchase all (but not less than all) of the Offered
        Shares on the same terms and conditions as set forth in the Offer. Once
        delivered, such notice, taken in conjunction with the Offer, shall be
        deemed to constitute a valid, legally binding and enforceable agreement
        for the sale and purchase of such Offered Shares to the other Party, and
        the sale of the Offered Shares to the other Party shall occur within sixty
        (60) days of receipt of the Offeror's written notice. 

	 	 	  

		5.3 	 Should written notice not be received by
        the Offeror within the sixty day time period referenced above, or if the
        other Party shall give notice of its election not to acquire such Offered
        Shares, then the Offer will be deemed to have lapsed, and the Offeror
        may, for a period of up to ninety (90) days thereafter, offer the Offered
        Shares to a bona fide third party on terms and conditions, including price,
        not more favorable to the proposed buyer than those contained in the Offer
        to the other Party. 

	 	 	  

		5.4 	 Any Shares not sold to a bona fide third
        party within the 90-day period referred to in Section 5.3 shall again
        be subject to the requirements of this Section 5. 

	 	 	  

		5.5 	 In the event that Shares are sold to pursuant
        to this Section 5, said Shares shall continue to subject to the restrictions
        imposed by Sections 4, 5, 6 and 7 of this Agreement, and the purchaser
        of said Shares shall agree in writing to abide by such Sections.
      

	 	 	  

	6. 	TAG ALONG
    
	 	 	  

		6.1 	 In the event that either Party (the "Initiating
        Party") wishes to Transfer any shares of the Company
        held by it to a third party, the Initiating Party shall notify the other
        Party in writing, and the other Party shall have the right to require,
        as a condition to such Transfer, that the proposed transferee purchase
        from him/it upon the same terms, that number of shares which constitutes
        the same portion of the total number of shares held by him/it as the number
        of shares proposed to be sold by the Initiating Party (the "Co-
        Sale Shares"). 

2

	 	6.2 	 The other Shareholder shall have the option,
        exercisable by written notice to the Offereor, within thirty (30) days
        after receipt of the notice from the Offeror, to require participation
        in the sale as referenced in section 6.1 above.

	 	 	 
	 	6.3 	 In the event that the other Party exercises
        its tag along rights hereunder, the Initiating Party must cause the proposed
        transferee to add such shares to the shares to be purchased by the transferee,
        as part of the sale agreement to such a degree that all of the Co-Sale
        Shares are included.

	7. 	 RESERVED

	 	 	 
		8 	 ACKNOWLEDGMENT
        AND PRE-EMPETION
        RIGHTS

	 	 	 
		8.1 	 The Parties acknowledge that their Shares
        may be diluted as a result of investments and other issuances of shares
        by the Company.

	 	 	 
		8.2 	 If at any time prior to an IPO, the Company
        proposes to issue and sell New Securities, as defined below, the Parties
        agree that the Company shall enable the Parties to maintain their percentage
        ownership of the outstanding shares of the Company, as stated below:

	 	 	 
		8.3 	 For the purpose of this Section 8, "New
        Securities" shall mean any capital stock of the
        Company, whether or not now authorized, and rights, options or warrants
        to purchase capital stock, and securities of any type whatsoever that
        are, or may become, convertible into capital stock; provided that the
        term "New Securities" shall not include (i) shares of the Company issuable
        upon exercise of outstanding options or warrants; (ii) securities issued
        pursuant to the acquisition of another corporation by the Company by merger,
        purchase of substantially all the assets of another corporation or any
        other reorganization; (iii) securities issued to employees, officers,
        directors and consultants of the Company pursuant to any stock option
        plan or stock purchases or stock bonus arrangement; (iv) securities issued
        pursuant to payment of any dividend or distribution with respect to all
        of the Company's issued and outstanding shares; and (v) securities issued
        to a strategic investor approved as such by the Board of Directors.

	 	 	 
		8.4 	 If the Company proposes to issue New Securities,
        it shall give the Parties written notice (the "Rights Notice") of its intention, describing
        the New Securities, the price, the general terms upon which the Company
        proposes to issue them and the number of shares that each Party has the
        right to purchase under this Section 8. Each Party shall have fourteen
        (14) days from delivery of the Rights Notice to agree to purchase all
        or any part of its pro-rata share of such New Securities for the price
        and upon the general terms specified in the Rights Notice, by giving written
        notice to the Company setting forth the quantity of New Securities to
        be purchased. The Party's pro rata share shall be the ratio of the number
        of shares of the Company's Ordinary Shares then held by such Party of
        the date of the Rights Notice, to the sum of the total number of Ordinary
        Shares as of such date .

	 	 	 
		8.5 	 If the Parties fail to accept such offer
        as to all or part of the New Securities, the Company shall have the right
        within one hundred and twenty (120) days thereafter to sell or enter into
        an agreement to sell, the New Securities as to which such offer, or offers,
        were not accepted; provided, however, that no such sale shall be effected
        at a price or upon terms more favorable to the purchasers thereof than
        those specified. In the event the Company has not sold or entered into
        an agreement to sell such New Securities within such 120-day period, the
        Company shall not thereafter issue or sell such New Securities without
        first complying with the procedure set forth in this Section 8.

3

	9 	TERMINATION OF RIGHTS
    

	9.1 	 The rights contained in Sections 4, 5,
        6, 7, 8 and 11 shall terminate and be of no further force or effect (i)
        immediately upon the consummation of the IPO or (ii) when the Company
        first becomes subject to the periodic reporting requirements of Section
        12(g) or 15(d) of the U.S. Securities Exchange Act of 1934, as amended,
        or the reporting requirements of a similar reporting regime of another
        jurisdiction, whichever event occurs first. 

	10 	BOARD OF DIRECTORS 

	10.1 	 So long as each Party owns 50% of the outstanding
        shares of the Company, then each Party shall be entitled to appoint an
        equal number of directors to the board of directors of the Company. In
        the event that either Party holds, at any time in the future, a majority
        of the number of outstanding Shares, then such Party will have the right
        to appoint a majority of the directors of the board of directors of the
        Company. 

	 	  

	10.2 	 Initially, the directors appointed by GEYI
        shall be Mr. Asi Shalgi and Mr. Yossi Raz and the directors appointed
        by AK shall initially be Dr. Christian Koch and Mr. Ludwig Christian Koch.
      

	 	  

	10.3 	 Neither Party shall be able to assign or
        transfer its/his right to designate a director to any other third party.
      

	 	  

	10.4 	 Within 60 Days from the Effective Date
        of this Agreement, the board of directors shall agree on the Company's
        marketing and sales strategy, annual business plan, and goals.
      

	11 	MANAGEMENT OF THE COMPANY 

	11.1 	 GEYI shall appoint Mr. Yossi Raz as the
        Company's Chief Executive Officer ("CEO"') in accordance with the terms
        of an Employment Agreement attached hereto at Appendix A (the "Employment
        Agreement") between Mr. Yossi Raz and the Company
        as set out at Appendix A. Any subsequent CEO shall be appointed by GEYI.
      

	 	  

	11.2 	 AK shall initially appoint Dr. Christian
        Koch as the Company's Chairman. The Company's Chairman shall not have
        a casting vote. Any subsequent Chairman shall be appointed by AK.
      

	 	  

	11.3 	 AK shall have the right object to any sale
        of Product promoted or intended by the Company, in which case the Company
        shall not perform such sale and/or cease the promotion of such sale as
        applicable 

	 	  

	11.4 	 The Company's CEO and Chairman shall be
        responsible for the day to day management of the Company, and the implementation
        of the Company's marketing and sales strategy and business plan, and for
        meeting the Company's goals. 

	 	  

	11.5 	 Notwithstanding any action or resolution
        regarding any of the following issues, is to be approved by the Company’s
        board of directors: 

4

.i any
  action that authorizes, creates or issues shares of any class.

.ii any action that reclassifies any outstanding shares into shares having
  preferences or priority as to dividends or assets senior to or on a parity with
  the Ordinary Shares; .

iii any merger or consolidation of the Company with or into one or more other
  corporations; 

.iv
  the sale, lease, or other disposition of a material asset
  or the sale of all or substantially all of the Company’s assets; 

.v any
  change in the rights relating to the composition or in the right to appoint
  members to the Board of Directors; 

.vi any transactions between the Company and any Interested Party; an “Interested
  Party” shall mean a director, officer, employee,
  or significant shareholder or any family member of or consultant to any such
  person, corporation or other entity of which any such person beneficially owns
  ten percent (10%) or more of the equity interests or has ten percent (10%) or
  more of the voting power, other than transactions in the ordinary course of
  business.

.vii the terms and conditions of any initial public offering of the Company;
  

.viii the liquidation or dissolution of the Company;

.ix incur any indebtedness, make any capital expenditures, lend, enter into
  any material contract or commitment, incur any pledge or lien on the assets
  of the Company, other than as required in the ordinary course of business, but
  in no event in excess in the aggregate of US$ 5,000; 

.x amendment of the Articles of Association of the Company; and 

.xi the Company's signatory rights.

	12 	REMOVAL OF BOARD MEMBERS
    

	12.1 	 Each Party agrees to vote in whatever manner
        as shall be necessary to ensure that (i) no director elected by either
        Party is removed from office, other than for cause, unless such removal
        is approved by the Party which so appointed that director and (ii) any
        vacancies created by the resignation, removal or death of a director shall
        be filled by the Party that appointed such director pursuant to the provisions
        of this agreement. 

	 	  

	12.2 	 All Parties agree to execute any written
        consents required to effectuate the obligations of this Agreement.
      

	13 	EXPENSES AND FINANCING
    

	13.1 	 The Parties agree that GEYI will lend to
        the Company such amounts as the Parties may agree, and in any event in
        accordance with a budget to be approved by the board of directors of the
        Company. The terms of such loan, including interest on such loan, will
        be agreed upon between the Parties. 

	 	  

	13.2 	 All such payments as referenced in section
        13.2 above shall be made for costs and expenses set forth in a budget
        approved by the board of directors of the Company from time to time.
      

5

	14 	EXCLUSIVITY 

AK and the Company have
  the rights to market and distributor the Technology based on the KDV500, as
  define in the agreement dated May 2 2007.

14.1.1 AK herby appoints
  the Company as its sole agent exclusive for USA and China market, AK will not
  directly market to these markets but through the Company.

14.1.2 When GEYI will invest
  in the technology of Turbine 2000 than the Turbine 2000 technology will be marketing
  only through out the Company

14.1.3. The parties acknowledge
  that AK has already granted some third parties the right to sale the Technology
  and Products in certain territories as detailed in agreement signed May 2, 2007
  ("Third Party Rights"). 

14.1.4 All sales transactions
  shall be made directly between AK and the purchaser. The sale price of any transaction
  shall include a fee of 10% which shall be paid by AK to the Company. The company
  has the right to offer higher prices as the market will accept in such case
  the Company will benefit from the full difference between the purchase price
  and the sale price. AK and the Company will coordinate prices.

	15. 	DERTAKINGS OF THE PARTIES
    

15.1 AK shall provide all required technical assistance
  and support to the Company and any potential end users and purchasers of the
  Technology and the Products, in order to help the promotion of the Technology
  and the Products and the procurement of purchases.

15.2 GEYI will build a finance program to support
  end users in the procurement of the Products from AK, however, GA shall only
  offer such finance program to suitable end users at its sole and absolute discretion.

15.3 GEYI shall be responsible for obtaining necessary
  approvals and permits for the sale of diesel produced by the use ofthe Products
  and the Technology, were it finds it to be reasonable at its sole and absolute
  discretion.

	16 	REPRESENTATIONS AND WARRANTIES OF THE PARTIES 

	16.1 	Each of the Parties hereby represents and warrants with respect
      to itself/himself the following: 
	 	 
		(i) Authority and Validity.
      Such Party has full power and authority to enter into, execute and deliver
      this Agreement and perform its/his obligations under this Agreement in accordance
      with its terms. 

6

(ii) Absence of Conflicts. The execution and delivery
  of this Agreement by it and the consummation of the transactions as contemplated
  hereunder (i) do not and will not violate or conflict with any statute, regulation,
  judgment, order, writ, decree, or injunction currently applicable to it/him;
  and (ii) do not and will not violate or conflict with any existing mortgage,
  indenture, contract, licensing agreement, financing statement, or other agreement
  binding on it.

(iii) Consents and Contractual Restrictions. No consents
  or approvals of any third party are required in connection with the execution
  and delivery of this Agreement or the performance of the transactions contemplated
  hereunder otherwise. No agreement or arrangement binding upon such Party restricts
  its ability to fulfill its obligations and responsibilities under this Agreement
  or any related agreement or to carry out the activities contemplated herein.
  

(iv) Investment Representations. Each Party is acquiring the Shares for its/his or her own account.

	16.2 	AK further represents and warrants
      that: 

(i) it has all valid legal
  rights to the Technology and the Products;

(ii) it has the right to
  grant to GEYI all rights contained in this Agreement, including the Exclusivity
  set forth in section 14 above; and

(iii) the provisions of
  this agreement and any of AK's undertakings hereunder does not infringe upon
  the intellectual property rights of any third parties.

Each Party undertakes to
  inform the other Party immediately upon any material change in the above representations
  and warranties. 

	17. 	ASSISTANCE TO THE COMPANY 

The Parties shall use their best efforts to actively
  assist and promote the interests of the Company.

	18. 	MISCELLANEOUS 

	18.1 	ENTIRE AGREEMENT. 

This Agreement represents the entire agreement between
  the Parties. 

	18.3 	ASSIGNMENT. 

No part of this agreement may be assigned by any
  of the Parties hereto without the consent of all of the Parties hereto. 

	18.4 	GOVERNING LAW
      AND JURISDICTION. 

This Agreement shall be governed by and construed
  under the laws of the Republic of Germany. The competent courts in Gerrmany,
  shall have exclusive jurisdiction over any

 7

dispute arising in connection with this Agreement.

18.5           HEADINGS.

  Headings in this Agreement are for convenience only and shall not be used
  to interpret or construe its provisions.

18.6           NOTICES.

  All notices or other documents under this Agreement shall
  be in writing and delivered personally or mailed, addressed to the Parties.

18.7           BINDING
  EFFECT.

  The provisions of this agreement shall be binding upon and
  inure to the benefit of each of the Parties and their respective successors
  and assigns. The provisions of this Agreement shall supersede any conflicting
  provisions of the Articles of Associations of the Company with respect to the
  relationship between the Parties. The Parties agree to amend the Company's Articles
  of Association within the next thirty (30) days to the extent any terms of this
  Agreement so conflict or to the extent they otherwise deem it necessary to conform
  the Articles with the terms and condition set forth in this Agreement.

18.8           AMENDMENT.

  This Agreement may be amended or modified only by written
  agreement between the Parties.

IN WITNESS WHEREOF, the
  Parties have executed this Agreement as of the date first above written.

	GLOBAL ENERGY INC. 	 	ALPHAKAT GMBH 
	  	 	  
	By: 	 	By: 
	Name:	 	Name:
	Title: 	 	Title: 

8

APPENDIX A

9

Record book number R1650 /2007 Re

Establishment of 

  Limited Liability Company

Today, the fourteenth and twenty-second day of November
  two thousand and seven, 

  - 14 and 22 November 2007 -, 

  the following appeared before me, 

  Martin Reiß, 

  Notary in Forchheim/Ofr., in the office at Nürnberger
  Street 8:

1) Dr. Christian
  Koch, born on July 04, 1940, 

  of 96155 Buttenheim, Schul Street 8, 

  acting herein as manager of 

Alphakat GmbH 

  a company whose registered place of business is in Buttenheim 

  (business address: 96155 Buttenheim, Schul Street 8) 

with the authority of single representation and
  exempted from the limitations of Section 181 of the Civil Code, regarding which,
  after perusal of the Electronic Trade Register at the Bamberg District Court
  made on November 14th 2007, I confirm that the above company is registered therein
  under HRB 5308 and Dr. Christian Koch is on record as manager with the authority
  of single representation and is exempted from the limitations of Section 181
  of the Civil Code,

2. Mr. Joseph,
  known as Yossi, Raz, born on January 1, 1947, of
  12 Nurit Str. , Haifa Isreal 34654
  acting for

Global Energy Inc. 

a company limited by shares incorporated under the
  laws of Nevada/USA, registered at the Secretary of State of Nevada, Corp Number
  C3690-1999, with office at 7 Zabotinski Str., Aviv-Tower, Floor 38, 52520 Ramat
  Gan, Israel,

subject to the consent of the aforesaid corporation
  which has to be certified by a notary public.

The parties identified themselves by official identity
  documents with pictures.

Mr. Yossi Raz, according to his own statement and
  the notary’s conviction, has insufficient knowledge of the German language,
  but knows sufficient English. At the time of certification the notary translated
  the document and the questions asked into English. All parties waived the services
  of an interpreter. As appendix 2 there is an English translation that has been
  made by the party and controlled by the notary. The annex also was made part
  of the notarial act. If there are differences between the German and the English
  text the German text shall prevale.

The reading of this deed was started on Nov. 14th,
  but interrupted as Mr. Raz had to leave, and resumed at the point, where it
  had been interrupted on Nov. 22nd and finished and signed by the parties on
  this day.

Upon the parties’ request I hereby certify
  the following:

I. Establishment

The parties mentioned in the introduction establish
  a Private Limited Company whose registered place of business is in Buttenheim
  (business address: 96155 Buttenheim, Schul Street 8) under the name

Alphakat - Global Energy GmbH

The Articles of Association are set down in the
  Annex to this document. Refer-ence is made to the Annex. The shareholders are
  taking over the shares as provided in the Articles of Association.

II. Costs, Copies

2

The costs of application and registration in the
  Commercial Register will be borne by the company as well as the costs of this
  certification in accordance with the Articles of Association.

The shareholders, the company, the tax office and
  the Registry Court of jurisdiction will each be given notarized copies.

III. Power of Attorney

Each of the Notary’s employees and every party
  of the contract will be exempted from the legal limitations and will be given
  power of attorney, including legal successors, to complete or amend this document
  in order to correct objections made by the Registry Court.

The notary shall get and receive for the parties
  of the contract the notarized consent of the party not represented today.

References

The Notary has pointed out inter alia:

- that only after registration in the Commercial
  Register will the company be established and that, according to Section 11,
  2 of the Limited Liability Companies Law, before the company is registered the
  person performing legal acts on behalf of the company will be personally liable.

- that all
  shareholders and directors are in principle responsible for the authenticity
  of the data stated when establishing the company;

- that at
  the time of registration of the company in the Trade Register, the value of
  the company’s assets may not be less than that of the share capital, and
  that every shareholder has the obligation to pay any difference, without any
  limitation, compared with the pledged investment, and that the Registry Court
  has the right to refuse registration of the company in the Trade Registry on
  the grounds of unpaid prior charges. 

3

V. Shareholder Resolution

Waiving any formal and time regulations, a shareholder
  meeting is called and the following resolution adopted:

The first business manager appointed is Dr. Christian
  Koch. He always has the authority of single representation and is exempted from
  the limitations of Section 181 of the Civil Code (prohibition of acting as contracting
  party and of multiple representations).

Mr. Yossi Raz will be granted single signature (Prokura),
  as well as being exempted from the limitations of Section 181 of the Civil Code.

VI. Guarantees

Each of the parties guarantees, insofar as they
  are concerned,

- that the
  signing parties have full power and authority of representation, of signing
  this agreement, executing and performing it and fulfilling the obligations based
  hereon;

- that signature and execution of the agreement
  is not contrary to any obligations stipulated in the Articles of Association,
  the law, agreements or otherwise;

- that no
  consent whatsoever by any third party is required for the execution or signature
  of this agreement, and

- that each
  party is acting on its own account.

Alphakat GmbH, Buttenheim, moreover guarantees:

- that it
  is legally entitled to KDV Technology and the corresponding products;

4

- that it
  is entitled to grant the newly established enterprise all the rights agreed
  upon herein, including the exclusive marketing right according to the Articles
  of Association;

- that the stipulations agreed upon herein and execution
  thereof do not infringe upon the protected copyrights of any third party.

Should any practical change occur regarding the
  above guarantees, each party has the obligation to inform the other accordingly,
  without delay.

Together with the Annexes 1 and 2 read by the notary,
  

  approved by the parties and signed

(this is still part of annex 2, the English translation):

5

Annex 1 

  to the document certified by Notary Reiss in
  Forchheim 

  dated November 14th and 22nd, 2007, Document no. R1650 /2007

Articles of Association

Article 1: Company’s Name and Registered
  Place of Business

1.            The
  company’s name is

Alphakat - Global Energy GmbH.

2.           The
  company’s registered place of business is Buttenheim, district of Bamberg.

Article 2: Purpose of the Enterprise

	1. 	 The purpose of the company is the worldwide
        marketing and distribution of KDV Technology (un-pressurized catalytic
        lubrication) for transforming recycling and waste material containing
        hydrocarbons into diesel fuels, as well as of products connected to this
        technology, including KDV tur-bines.

	 	 
	2. 	 The company is entitled to perform any
        transaction which may directly or indirectly benefit the company’s
        purpose, in particular - acquiring other enterprises, being a partner
        therein or assuming their representation and management. The company is
        entitled to establish branches.

Article 3: Share Capital

	1. 	 The company’s share capital amounts
        to € 25,000.

	 	 
	2. 	 The share capital is divided as follows:

	 	Shareholder 	Amount of Authorized Capital
    
	 	Alphakat GmbH, Buttenheim
    	€ 12,500
    
	 	Global Energy Inc., New York/Ramat Gan
    	€ 12,500 

6

	3. 	 The capital invested must be paid in cash
        and becomes fully payable immediately.

	 	 
	4. 	 No stipulations are agreed upon in the
        Articles of Association regarding capital increase or later contributions.
        Such measures can only be decided by amending the Articles of Association.
        Any measure that may modify the participation quotas by modifying the
        authorized capital, i.e. capital increases, conditional capital increase
        or the issue of convertible debentures and similar financial instruments
        may only be decided by a unanimous resolution of all shareholders present.

Article 4: Duration, Business Year

	1. 	 The agreement is concluded for an undetermined
        period of time.

	 	 
	2. 	 The business year is the calendar year.
        The first business year begins upon registration in the Commercial Register
        and ends at the end of the calendar year in which the registration is
        made.

	 	 
	3. 	 Under the contracts law any transactions
        made from the time the company was established are considered to be made
        on account of the company.

Article 5: The Company’s Executive Organs

The company’s executive organs are the management
  (manager) and the shareholder meeting.

Article 6: Representation

	1. 	 As long as the company has only one manager,
        he has the right to sole representation.

	 	 
	2. 	 If several managers are appointed, the
        company will be represented by two managers jointly or by one manager
        jointly with an authorized signatory (“Prokurist").

7

	3. 	 By a resolution of the shareholders, the
        managers or one of them can be granted sole representation rights and/or
        exemption from the limitations of Section 181 of the Civil Code.

	 	 
	4. 	 The above stipulations apply also to the
        liquidators of the company.

	 	 
	5. 	 As long as both partners own each one half
        of the company, the partners, Alphakat GmbH, Buttenheim, and Global Energy
        Inc. have the right to appoint one manager or signatory each with the
        sole outside representation right on behalf of the company. The partner
        can freely decide whether to appoint a manager or a signatory (Prokurist).
        The other partner has the obligation to agree to the appointment insofar
        as there are no important reasons against the appointment of the intended
        person. Cancellation of such appointment against the wish of the partner
        entitled to decide is only possible on serious grounds. Upon conclusion
        of the manager/signatory’s legal office, the entitled partner may
        require the appointment of a new manager or signatory to be named by him.

Article 7: Business Management

	1. 	 The managers must manage the
        company’s business carefully and conscientiously according to the
        stipulations of the law and the partnership agreement. They must respect
        instructions given as per the partners’ resolutions.

	 	 	 
	2. 	 Any measures beyond the regular
        business operation of the enterprise may only be performed by one of the
        managers based on a partners’ resolution. A partners’ resolution
        can set forth the measures requiring consent in detail.

	 	 	 
	3. 	 Subject to an extraordinary partners’
        resolution and subject to stricter legal regulations, the following business
        management measures always require the consent of both partners:

	 	 	 
		1. 	 Sale, letting, leasing or other transfer
        of all or a substantial part of the company’s assets;

	 	 	 
		2. 	 Agreements of any kind between the company,
        its executive organs, its partners, persons closely connected to the executive
        organs or to the partners, or anyone else with at least 10% participation
        in the above mentioned entities.

	 	 	 
		3. 	 Establishing and closing branches;

	 	 	 
		4. 	 Liquidation of the company;

8

		5. 	 Conclusion of a
        transaction of any kind outside the company’s normal business
        operations, at a value of more than € 5,000 per transaction.
      

	 	 	  

	 	6. 	 Establishment of
        signature power or general power of attorney 

	 	 	  

		7. 	 Establishment of
        connections with corporations, conclusion of secret partnership
        agreements, of management agreements and other agreements which
        may give third parties the power to manage the company.
      

Article 8: Partners’ Assembly (Shareholder
  Meeting)

	1. 	 Partners’ resolutions are adopted
        at partners’ assemblies if not otherwise stipulated by law or these
        Articles of Association.

	 	 
	2. 	 The partners’ assembly is convened
        by the managers, each manager being separately authorized to convene the
        assembly. Notice is given by registered letter giving the place, time
        and agenda, and mailed to the last address of the partner provided to
        the company. The time allowed for the notice, if there is no particular
        need for haste, is at least two weeks after mailing, not including the
        day of the assembly.

	 	 
	3. 	 The partners’ assembly constitutes
        a quorum if at least 70% (seventy percent) of the authorized share capital
        is represented. Otherwise, an additional assembly must be convened without
        delay respecting the time al-lowed for notice as per paragraph 2, which
        assembly will constitute a quorum regardless of the number of participants.
        This must be stipulated in the second notice.

	 	 
	4. 	 Partners’ resolutions, if not otherwise
        stipulated by law or the Articles of Association, will be adopted by a
        simple majority of votes. Abstention from voting will be considered a
        negative answer. Every € 50 of a business share grants one vote.

	 	 
	5. 	 Insofar as no other partners’ resolution
        was adopted, the partners’ assembly will take place at the company’s
        registered place of business. At the assembly the representation by executive
        organs or executive employees of the partners, the other partners or people
        obliged to maintain professional secrecy is permissible.

	 	 
	6. 	 The assembly will elect a chairman by a
        simple majority. The chairman will also take care that the resolutions
        are recorded in writing. Within a period of four weeks after the assembly
        he will send the partners a protocol of the assembly.

9

	7. 	 The partners may deviate from the provisions
        regarding the partners’ assembly and its formalities if it is agreed
        by all partners. With the consent of all involved, resolutions can also
        be adopted by circular resolution, by phone, fax or electronically. In
        this case care must be taken that the text of the resolution be immediately
        documented in writing. If all partners take part in a deviating form of
        resolution, their consent is assumed if they do not immediately protest
        against this form of resolution.

	 	 
	8. 	 Except in cases of nullity, in particular
        when obligatory laws are broken - the partners may only protest against
        the resolution by submitting a claim in court within a period of two months
        from the date the resolution was adopted.

Article 9: Balance Sheet, Appropriation of Earnings

	1. 	 Within three months after the end of the
        business year, the managers must prepare a balance sheet with a Profit
        and Loss Account for the previous year, while respecting legal provisions,
        and submit it to the partners’ assembly with the proposed appropriation
        of earnings. Insofar as legally permissible the period for this will be
        six months.

	 	 
	2. 	 The appropriation of earnings is subject
        to legal provisions. This means that in principle the partners’ assembly
        will decide about the appropriation and distribution of the earnings by
        resolution (Section 29 of the Limited Liability Companies Law in the version
        of the Balance Sheet Directives Law).

	 	 
	3. 	 Global Energy Inc. can demand that every
        quarter balance sheets are filed as required by the American SEC regulation
        to be filed with the Global Energy Inc. obligation for 10-Q.

Article 10: Disposal of Partnership Shares

	1. 	 The disposal of a partnership share or
        parts thereof requires written permission by the company to be valid,
        which shall only be given by the management after all partners have given
        their consent.

	 	 
	2. 	 The above regulations apply also to the
        establishment of a beneficial interest in respect to the partnership shares
        as well as to pledging and assignment for security of partnership shares.

10

	3. 	 Every partner is obliged, if intending
        to sell, to inform the other partner in good time before beginning negotiations
        with third parties, and to accordingly submit a sales offer. He must leave
        the other partner a reflection time of at least one month. In case of
        sale, the other partner has the right of first refusal.

Article 11: Termination

	1. 	 Each partner may terminate the partnership
        in the company by a notice of six months before the end of the business
        year, but not before December 31, 2010.

	 	 
	2. 	 In consequence of the termination - subject
        to the provisions of Paragraph 3 - the terminating partner shall leave
        the company after the end of the notice period and the company shall continue
        according to Articles 12 and 13.

	 	 
	3. 	 If the other partners join the termination
        by a partners’ resolution, the company will be in liquidation at
        the date of termination. The terminating party will take part in the liquidation.

Article 12: Confiscation of Partnership Share,
  Retirement

	1. 	 The confiscation of business
        shares is permissible. It does not require the consent of the involved
        partner if:

	 	 	 
		a) 	 insolvency proceedings are opened concerning
        his assets, or the opening is refused for lack of assets,
        or

	 	 	 
		b) 	 his business share is taken in execution
        (by a third party);

	 	 	 
		c) 	 there is significant cause. A significant
        cause is in particular when, due to the misconduct of a partner,
        the other partners cannot be required to continue their business relationship
        with him. No fault is necessary for this.

	 	 	 
	2. 	 Instead of confiscating the partnership
        share, the partners’ assembly may decide to transfer the business
        share to one or several partners or to a third party named by the partners’
        assembly. In the partners’ resolution each co-partner may require
        that in the case of assignation, the share of the retiring partner shall
        be transferred in proportion to his share in the company (accrual). Should
        an exact proportional division not be possible, the shares shall be divided
        as closely as possible.

	 	 	 
	3. 	 If there is a right to confiscate,
        such confiscation or a partners’ resolution according to Paragraph
        2 can only occur within six months from of the time the cause becomes

11

		 known, but only as long as the cause for
        confiscation still exists. This includes the knowledge by one of the managers
        (regardless of the type of representation authority) of the company, insofar
        as the cause is not linked to the very person of this manager.

	 	 
	4. 	 The resolution concerning confiscation
        or retirement is adopted by the partnership assembly at which the partner
        to be dismissed has no right to vote.

	 	 
	5. 	 Confiscation or retirement are subject
        to remuneration. The remuneration will be payable by the buyer of the
        share, observing Section 30 of the Limited Liability Companies Law (forbidding
        that the share capital is being paid back by the company to the partner).
        The amount of remuneration will be determined according to the regulations
        et forth below.

Article 13: Remuneration for confiscated or assigned
  shares

	1. 	 If business shares are confiscated or assigned
        in accordance with these Articles of Association, the entitled partner
        or his successors will be remunerated for it. For this purpose the management
        will immediately prepare a compensation balance sheet. In this balance
        sheet all assets and liabilities shall appear at their real value at the
        time of the partner’s retirement. The company’s goodwill - if
        permissible - is not to be taken into account. The retired partner will
        not participate in pending transactions.

	 	 
	2. 	 If the parties involved cannot reach an
        agreement as to the value, it will be determined by an expert. The expert
        will be appointed upon demand of one of the parties by the President of
        the Bayreuth Chamber of Industry and Commerce. The costs of the valuation
        will be borne by the retired party and the company in equal shares.

	 	 
	3. 	 The remuneration will be paid in five equal
        annual installments. The first installment is due for payment six months
        after the confiscation resolution or the date of retirement of the partner
        involved, and the following installments on the corresponding calendar
        day of the subsequent years. The outstanding installment will bear annual
        interest of 2% - two percent - over the basic interest rate as described
        in the Euro Introduction Law commencing with the confiscation resolution
        or the date of retirement. The interest will be calculated at current
        account bank rates and shall be due for payment together with the following
        installment.

12

	4. 	 The compensation can be pre-paid fully
        or partially, and partial pre-paid amounts will be deducted from the following
        installment due. No security may be demanded.

Article 14: Exclusivity/Prohibition of Competition

Alphakat GmbH, Buttenheim gives the right to sell
  world wide. No other company or person can get the same rights for the world-wide
  distribution.

Alphakat GmbH appoints the company to be the sole
  marketing agent for the United States of America and the Chinese market. Alphakat
  GmbH will not use any marketing channels on those markets except already established
  contacts.

The parties involved acknowledge that Alphakat GmbH,
  Buttenheim has already granted third parties the right to sell the Technology
  and products in various areas, as described in detail in the agreement dated
  May 02, 2007. Alphakat GmbH explicitly reserves the right, as long as those
  agreements are valid and in their material extent, to execute and fulfill those
  agreements with third parties on its own account. No compensation in that respect
  has been agreed upon.

The foregoing exclusive dealing requirements are
  valid as long the contract from May 2nd 2007 is valid (including amendments
  or following contracts).

By a partners’ resolution to which both partners
  must consent, the partners and managers may also regulate whether there are
  further prohibitions of competition, whether to give exemptions and whether
  the exemption occurs against remuneration or without remuneration.

Should one of the partners - for whatever reason
  - retire from the company, he has the obligation not to exploit business secrets
  of which he learned pursuant to the execution of this partnership agreement,
  either himself or by transfer to third parties at the expense of the company
  founded or on the account of the other partner.

Article 15: Additional Contributions to the Company

13

	1. 	 All sales and similar transactions will
        be made directly between Alphakat GmbH, Buttenheim and the business partner.
        The sales price of each such transaction will include a 10% commission
        (not including Value Added Taxes as per law), which will be paid by Alphakat
        GmbH directly to the newly founded company. The company has the right
        to make higher price offers, as long as the market accepts them. In such
        case, the company would profit fully from the difference between the purchase
        price offered by it and the regular sales prices. Alphakat GmbH and the
        company will mutually coordinate their prices.

	 	 
	2. 	 Alphakat GmbH will grant all necessary
        technical assistance and support by the company to any end user and buyer
        of the Technology and products in order to support the marketing of the
        technology and the products during sales.

	 	 
	3. 	 Global Energy Inc. will establish a financial
        program in order to support the end user in the acquisition of Alphakat
        GmbH products. However Global Energy Inc. reserves the right to put such
        financial support only at the disposal of selected and adequate end users.
        Moreover Global Energy Inc. has the responsibility of providing the permits
        and tests necessary for the sale of the diesel oil produced by the use
        of the marketed products and technology. Global Energy Inc. is free to
        decide where they should do the marketing (i.e. also obtaining permits).

Article 17: Publications

The company’s publications will be made only
  in the Electronic Federal Journal (elektronischer Bundesanzeiger).

Article 18: Tax Clause

The executive organs of the company must respect
  the trading and tax law principles of orderly business management and shall
  maintain the care in business transactions that would be taken by an orderly
  and conscientious businessman.

The management shall in particular not be authorized
  to grant advantages to the partners or persons and companies close to them beyond
  the profit distribution resolution duly adopted, neither to violate the prohibition
  of additional or retroactive payments, nor to breach other acknowledged tax
  law principles which, when 

14

disregarded, cause covert profit distribution. In
  case of non compliance, the amount of the imbalance shall be covered by the
  partner to whom the advantage was credited and the usual bank interests paid
  from the time the advantage was granted until the payment is settled. Transactions
  in breach of the above stipulations are void ab initio.

Insofar as the tax administration or tax courts
  recognize the payment received as income received by the partner concerned despite
  the above tax clause, without considering the repayment as negative income,
  the partner will only have to repay the advantage remaining after deducting
  the additional income tax payable by him plus the usual bank interest.

Article 19: General Instructions

	1. 	 Insofar as not otherwise stipulated in
        this agreement, the German Law regarding Private Limited Companies (GmbH)
        shall prevail. The agreement is formulated according to the provisions
        of German Company Law and is subject to the jurisdiction of German courts.

	 	 
	2. 	 Should any of the provisions of this agreement
        be or become invalid or unenforceable, the other parts of the agreement
        shall remain valid nevertheless and shall be binding on the parties to
        the agreement. The partners undertake in such case to immediately and
        retroactively change the interpretation, whether completely or by replacing
        any invalid provision retroactively, so that it becomes as close as possible
        to the intended purpose.

Article 20: Cost

The costs of notarizing the partnership agreement,
  the publication, the application for registration and registration of the Company
  in the Trade Registry as well as the costs of consultancy services in respect
  of the establishment shall be borne by the Company up to an estimated amount
  of € 2,000; any establishment costs above that amount shall be borne by
  the partners. This applies without prejudice to the legal personal liability
  of the parties.

-End of Annex 2-

15

EXHIBIT 2 – PATENTS

	Document Number 	Title 	Country 	Registration Date 	Docket Number 	File / Reference Number 
	ALP6004WO 	High-power 	WO 	04/04/07 	PCT/DE2007/0 	PCT/DE2007/0 
	ALP7001BR 	Diesel Oil out of 	BR (Britain) 	03/31/04 	PIO400912-6 	PIO400912-6 
	ALP7001CA 	Diesel Oil out of ... 	CA (Canada) 	07/15/04 	2,474,523 	2,474,523 
	ALP7001CN 	Diesel Oil out of ... 	CN (China) 	03/23/04 	200410030270 	200410030270 
	ALP7001IN 	Diesel Oil out of ... 	IN (India) 	08/02/04 	747/CHE/2004 	747/CHE/2004 
	ALP7001JP 	Diesel Oil out of ... 	JP (Japan) 	10/08/04 	2004-295764 	2004-295764 
	ALP7001MX 	Diesel Oil out of ... 	MX (Mexico) 	03/15/04 	PA/A/2004/002 	PA/A/2004/002 
	ALP7001RU 	Diesel Oil out of ... 	RU (Russia) 	03/30/04 	2004109567 	2004109567 
	ALP7001US 	Diesel Oil out of ... 	US (US) 	07/15/04 	10/891971 	10/891971 
	ALP7002BR 	High-power 	BR (Britain) 	02/02/06 	PIO601891-2 	PIO601891-2 
	ALP7002CA 	High-power 	CA (Canada) 	09/01/06 	2558401 	2558401 
	ALP7002CN 	High-power 	CN (China) 	02/14/06 	200610004445 	200610004445 
	ALP7002IN 	High-power 	IN (India) 	07/25/06 	1290/CHE/200 	1290/CHE/200 
	ALP7002JP 	High-power 	JP (Japan) 	04/27/06 	2006-123066 	2006-123066 
	ALP7002MX 	High-power 	MX (Mexico) 	04/07/06 	PA/a/2006/003 	PA/a/2006/003 
	ALP7002RU 	High-power 	RU (Russia) 	04/19/06 	2006113270 	2006113270 
	ALP7002US 	High-power 	US (US) 	08/23/06 	11/2508760 	11/2508760 
	ALP7004BR 	  	BR (Britain) 	04/10/07 	  	  
	ALP7004CN 	High-power 	CN (China) 	  	  	  
	ALP7004IN 	High-power 	IN (India) 	11/20/07 	  	  
	ALP7004JP 	High-power 	JP (Japan) 	11/19/07 	2007-299152 	2007-299152 
	ALP7004KR 	High-power 	KR (Korea) 	11/20/07 	10-2007-01186 	10-2007-01186 
	ALP7004MX 	High-power 	MX (Mexico) 	05/25/07 	MX/a/2007/006 	MX/a/2007/006 
	ALP7004RU 	High-power 	RU (Russia) 	11/19/07 	  	  

27

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