Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Global Energy Inc. - Exhibit 10.26

Exhibit 10.26

BUSINESS AND DEVELOPMENT
AGREEMENT

     This Business and Development
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
Renewable Diesel, LLC, a limited liability company organized and existing under
the laws of the State of Delaware (“Renewable”).

     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 and Trianon
Partners, a corporation organized and existing under the laws of the State of
Nevada (“Trianon”) and an affiliate of Renewable, entered into a Joint
Development Agreement dated October 24, 2007 (the “JDA”) which contemplated,
among other things, (i) the execution of a license agreement between Licensor
and Trianon, (ii) the joint development of projects using the Technology by
Global and Trianon or a new entity formed by the owners of Trianon and (iii)
Trianon assisting Global to install a plant in the United States, at Global’s
sole expense, to demonstrate the commercial viability of the Technology;

     WHEREAS, Trianon, following the
execution of the JDA, introduced Global to Covanta Energy Corporation, a
corporation organized and existing under the laws of Delaware (“Covanta”), which
is in the waste-to-energy business;

     WHEREAS, Trianon, at the request
of Global, worked with Global and Licensor to structure a business relationship
with Covanta, including the negotiation and execution of (i) the License
Agreement between Licensor and Global of even date herewith and (ii) the
Business and Royalty Agreement between Global and Covanta of even date
herewith;

     WHERAS, American Renewable
Diesel, LLC, a limited liability company organized and existing under the laws
of the State of Delaware (“American”) and an affiliate of Trianon and Renewable,
is entering into a License Agreement of even date herewith with Licensor;

     WHEREAS, Global and Trianon have
agreed to terminate the JDA and to put in place a modified set of agreements
between Global and Renewable; and

     WHEREAS, Global and Renewable
want to set forth their agreements;

     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) Renewable, Trianon and American are
Affiliates, (ii) Licensor and AK are Affiliates and (iii) 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 assigns.

     “American” means American
Renewable Diesel, LLC, a limited liability company organized and existing under
the laws of the State of Delaware, and its successors and assigns.

     “Business and Royalty
Agreement” means the Business and Royalty Agreement of even date herewith
entered into by Global and Covanta.

     “Consulting Agreement”
means the Consulting Agreement entered into by Global and Trianon dated October
20, 2007.

     “Covanta” means Covanta
Energy Corporation, a corporation organized and existing under the laws of the
State of Delaware, and its successors and assigns.

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

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

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

     “Effective Date” has the
meaning set forth in Section 4.1.

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

     “Finding Party” has the
meaning set forth in Section 2.1(a) .

     “Global” means Global
Energy, Inc., a corporation organized and existing under the laws of the State
of Nevada, and its successors and permitted assigns.

     “Global Percentage” has
the meaning set forth in Section 2.1(d) .

     “ICC” means the
International Chamber of Commerce.

     “ICC Rules” has the
meaning set forth in Section 7.1(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.

     “Investment Agreement”
means the Business and Investment Agreement to be entered into by Covanta and
Renewable.

     “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.

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

     “Licensor” means AlphaKat
- Global Energy GmbH, a company organized and existing under the laws of
Germany, and includes its successors and assigns.

     “LLCA” has the meaning set
forth in Section 2.2(g) .

     “Other Party” has the
meaning set forth in Section 2.1(a) .

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     “Parties” means Global and
Renewable.

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

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

     “Project” means a project
to convert a feedstock to diesel using the Technology.

     “Project Company” has the
meaning set forth in Section 2.2(g) .

     “Project Development
Costs” has the meaning set forth in Section 2.2(c) .

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

     “Renewable” means
Renewable Diesel, LLC, a limited liability company organized and existing under
the laws of the State of Delaware, and its successors and permitted assigns.

     “Renewable Percentage” has
the meaning set forth in Section 2.1(d) .

     “Subject Project” has the
meaning set forth in Section 2.1(a) .

     “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” has the
meaning set forth in Section 2.1.

     “Trianon” means Trianon
Partners, a corporation organized and existing under the laws of the State of
Nevada, 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;

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     (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.”

ARTICLE 2 – RELATIONSHIP AND RIGHTS OF THE PARTIES

Section 2.1 Rights of the Parties. Each Party shall have
the right during the Interim Period, the Initial Period and the Extended Period,
directly or through its Affiliates, to identify and develop Projects in the
Territory, subject to the terms and conditions of this Agreement. As of the
Effective Date, the territory (the “Territory”) shall be the states of
California, New York and Texas. If American meets the two (2) requirements set
forth in the first sentence of Section 2.1(b) of the License Agreement, the
Territory shall be the states of California, New York, Texas, New Jersey and
Florida, it being agreed that Global shall be entitled to develop Projects for
its own account in Florida and New Jersey prior to the date by which Renewable
must satisfy the requirement set forth in clause (ii) of the first sentence of
Section 2.1(b) of the License Agreement, but Global shall not give any other
Person the right to develop Projects in such states prior to such date. The
Parties further agree as follows:

     (a) The Party that identifies a
Project for development in the Territory shall be referred to herein as the
“Finding Party” and the other Party shall be referred to herein as the “Other
Party.” The Project identified for development shall be referred to herein as
the “Subject Project.”

     (b) If Global is the Finding
Party, it shall be required to notify Renewable about the Subject Project and
Renewable shall have the right to invest up to twenty-five percent (25%) of the
total equity required for the Subject Project or such higher amount as may be
offered by Global in its sole discretion (but not less than five percent (5%) of
the total required equity), all as further provided for in Section 2.2. If
Renewable elects not to invest any equity in the Subject Project, then Global
shall be free to proceed with the Subject Project without the further
involvement of Renewable. For the avoidance of any doubt, Covanta shall not have
the right to invest in any Subject Project identified by 

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Global unless Global or Renewable makes an offer to allocate a portion of its equity investment rights to Covanta in their sole discretion.

     (c) If Renewable is the Finding Party, it shall be required to notify Global about the Subject Project and Global shall have the right to invest up to fifty-one percent (51%) of the total equity required for the Subject
Project (but not less than ten percent (10%) of the total required equity) and Covanta shall have the right to invest up to twenty-four percent (24%) of the total equity required for the Subject Project (but not less than ten percent (10%) of the
total required equity), all as further provided for in Section 2.2. If Global elects not to invest any equity in the Subject Project, then Renewable shall be free to proceed with the Subject Project without the further involvement of Global.

     (d) The equity percentage to be provided by Global for a Subject Project shall be referred to herein as the “Global Percentage.” The equity percentage to be provided by Renewable for a Subject Project shall be
referred to herein as the “Renewable Percentage.”

     (e) Each Subject Project identified by Renewable shall be developed by Renewable.  Each Subject Project identified by Global in which Renewable agrees to invest a portion of the required equity shall by developed by
Renewable. Each Subject Project identified by Global in which Renewable decides not to invest equity shall be developed by Global unless the Parties agree otherwise at the time.

     (f) Notwithstanding anything that is contained herein to the contrary, if either Party identifies a Carve-Out Project (as such term is defined in the Business and Royalty Agreement) for development in the Territory,
Covanta shall be offered the right to invest one third (1/3) of the total required equity in the Carve-Out Project and the Parties shall each be entitled to invest one third (1/3) of the total equity required for the Project.

Section 2.2 Project Investment Rights of Other Party. Global hereby acknowledges that (i) Renewable has committed to give Covanta the right to invest twenty-four percent (24%) of the total equity required in all Subject Projects identified by
Renewable during the Initial Period and the Extended Period on substantially the same terms as are being offered to Global hereunder, such commitment and the terms and condition for making such equity investment to be reflected in the Investment
Agreement, (ii) that Renewable and Covanta will follow substantially the same procedures as are outlined below and (iii) Global approves any such investment by Covanta. The following procedures are agreed to by Global and Renewable:

     (a) Equity Investment Notice. If a Finding Party decides to pursue a Subject Project, the Finding Party shall provide a written notice to the Other Party (an “Equity Investment Notice”) to advise the
Other Party that the Finding Party wants to pursue the development of a Subject Project, such notice to include as much detail about the Subject Project as is available at the time, including the name of the Subject Project, the type of waste and
supplier of waste for the Subject Project, any commercial terms regarding the tipping fees for the Subject Project and potential off-take arrangements, an estimate of the 

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cost of developing the Subject Project, the pro forma for the Subject Project, if available, and any other information which is available to the Finding Party that might be relevant to the Other Party in making a decision to invest equity in the
Subject Project. The Other Party shall have forty-five (45) days from the receipt of the Equity Investment Notice to review the information about the Subject Project and decide whether the Other Party wants to invest equity in the Project. During
the forty-five (45) day period, the Finding Party shall use all reasonable business efforts to respond to any questions that are raised by the Other Party, and the Parties shall meet to discuss the Subject Project if either Party requests to do so.
The Other Party shall have the right, in its sole discretion, to invest up to its maximum percentage of the total required equity for each Subject Project that is the subject of an Equity Investment Notice as provided for in Section 2.1, but in no
event may the Other Party invest less than its minimum percentage of the total equity required as provided for in Section 2.1. If the Other Party elects to invest in a Subject Project, the Other Party shall provide a written response to the Finding
Party (the “Equity Commitment Response”) prior to the expiration of the forty-five (45) day period indicating whether the Finding Party wants to invest equity in the Project and, if so, the total percentage of the required equity that it
wants to invest. If the Other Party fails to respond in a timely manner to an Equity Investment Notice, it shall be deemed to be the delivery of a written notice that the Other Party is not interested in investing equity in the Subject Project. If
the Equity Commitment Response indicates that the Other Party is not interested in providing any of the required equity for a Project (or if the Other Party is deemed to have delivered such a notice), then the Finding Party shall be free to pursue
the Subject Project without any further obligation to offer the Other Party the right to invest equity in such Subject Project.

     (b) Equity Commitment Letter. If the Other Party decides it wants to invest a portion of the required equity for a Subject 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 Subject Project, (ii) a tentative budget for the development of the Subject Project and a tentative schedule for the funding thereof, (iii) a tentative schedule for the funding of the equity for the
Subject Project which shall be based on the anticipated terms for the relevant Purchase Order and the costs and installation schedule for the balance of the Subject Project, (iv) the percentage of the development costs and the total required equity
to be provided by each Party and (v) such other terms as the Parties may mutually agree. Each Party hereby acknowledges that the anticipated development budget and funding schedule and the anticipated equity investment and funding schedule will only
be estimates and that the actual development costs and funding schedule and the actual equity investment and funding schedule shall be what is required for the Subject Project. If Covanta agrees to invest a portion of the equity required for a
Subject Project, the Parties shall cooperate with Covanta and include Covanta in the Equity Commitment Letter.

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     (c) Project Development
Costs. Once Renewable identifies a Subject Project and starts pursuing the
development of such Subject Project (or commences the development of a Subject
Project identified by Global), Renewable shall track all of the third party
costs and all of Renewable’s out-of-pocket expenses (the “Project Development
Costs”) incurred in connection with pursuing, evaluating and developing the
Subject Project until the development of the Subject Project is completed. 

          (i)
Subject Projects Identified by Renewable. Global and Renewable shall be
responsible to fund the Global Percentage and the Renewable Percentage,
respectively, of the Project Development Costs incurred for each Subject Project
identified by Renewable. Promptly following the execution of an Equity
Commitment Letter for a Subject Project that is identified by Renewable, Global
shall reimburse Renewable for a portion of the Project Development Costs that
Renewable has incurred through the date of the Equity Commitment Letter, such
amount to be determined by multiplying the total Project Development Costs
incurred through such date by the Global Percentage. Renewable shall provide a
schedule of the Project Development Costs incurred to date to Global together
with copies of all the third party invoices and any significant out-of-pocket
costs. Thereafter, Global and Renewable (and Covanta if it has also agreed to
participate in the Project) shall fund its share of the monthly estimate of the
Project Development Costs, in advance, such amount to be reconciled following
the end of each month by Renewable. If either Party (the “Failure to Fund
Party”) fails to fund its full agreed share of the Project Development Costs on
the required schedule and does not cure such funding default within ten (10)
days following the receipt of a written notice to cure such funding default by
the other Party, then, unless the other Party agrees otherwise in its sole
discretion, the Failure to Fund Party shall forfeit its right to fund any of the
equity for the Subject Project and shall only be entitled to receive a
reimbursement of the Project Development Costs it has funded through the date of
such forfeiture at the time that the Purchase Order for the Subject Project is
issued by the Project Company formed for such Subject Project.

          (ii)
Subject Projects Identified by Global. Global shall be responsible to
fund 100 percent of the Project Development Costs incurred for each Subject
Project identified by Global. Promptly following the execution of an Equity
Commitment Letter for a Subject Project identified by Global, Global shall
reimburse Renewable for all of the Project Development Costs that Renewable has
incurred through the date of the Equity Commitment Letter. Renewable shall
provide a schedule of the Project Development Costs incurred to date to Global,
together with copies of all of the third party invoices and any significant
out-of-pocket costs. Thereafter, Global shall fund a monthly estimate of the
Project Development Costs, in advance, such amount to be reconciled following
the end of each month by Renewable. If Global fails to fund the Project
Development Costs on the required schedule and does not cure such funding
default within thirty (30) days after the receipt of a written notice to cure
such funding default by Renewable, then Renewable shall suspend work on the
Project unless an alternate arrangement is reached by the Parties and Global
shall reimburse Renewable for the work performed to date on the Subject
Project.

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     d. Development of Subject Project; Development Fee. All major decisions regarding the development and financing of the Subject Project shall be jointly made by Renewable and Global (and Covanta if it has agreed
to participate in the Subject Project), but Renewable shall have lead responsibility for the development and financing of the Subject Project. Global recognizes that Renewable will be incurring the burdened costs for its own personnel that are
working on the development of the Subject Project and that such costs will not be included as part of the Project Development Costs funded by the Parties each month. To compensate Renewable for the burdened costs of its personnel in developing each
Subject Project, the Parties agree that Renewable shall be paid a development fee of One Hundred Thousand Dollars ($100,000) for each KDV 500 that is installed as part of the Subject Project (such amount to be increased if the Subject 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 Subject Project exceed the sum of Two Million Dollars ($2,000,000), such fee to be paid as
follows: (i) if the Subject Project is being financed by a lender, such fee to be paid at the closing of the financing for the Subject Project from the initial drawing of funds under the loan (it being agreed that Renewable will agree to defer up to
fifty percent (50%) of such fee, if required by the lender(s) for the Project, to the completion of the construction of the Project); and (ii) if the Subject Project is not being financed by a lender, fifty percent (50%) to be paid at the time the
initial payment is made under the Purchase Order for the Systems that are ordered for the Project and the balance when the Project has been accepted from AK.

     (e) Equity Investment in Subject Project. Prior to the execution of a Purchase Order for the Systems required for a Project, Renewable 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 Renewable and Global for the Project. If a
scheduled equity funding commitment is pending and one of the Parties (the “Delinquent Party”) determines it will not be able to fund all or part of its obligation, the Delinquent Party shall promptly provide written notice to the other
Party (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 the Delinquent Party will fund on such date.  If either Party 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 the other Party agrees otherwise in its sole discretion, the Party that fails to fund shall forfeit its right to fund
any additional equity for the Project and the other Party shall fund the balance of the equity 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, each Party shall 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. It is the intention of the Parties to engage a third party to operate and maintain each of the Projects based on a “cost plus” structure with a fixed annual
fee. The Parties agree that they will seek a proposal from Covanta or one of its Affiliates using the form of agreement, if any, that has been agreed to by Global and Covanta for the projects that are being jointly pursued by Global and Covanta
pursuant to the Business and Royalty Agreement.

     (g) Execution of LLCA. Each Subject Project in which the Parties both invest shall be owned by a separate limited liability company (each, a “Project Company”) formed to own and operate the Subject
Project. Prior to executing the Purchase Order for a Subject 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 Subject 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, Renewable 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. 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 and shall coordinate such form of
agreement with the form being negotiated by Global and Covanta under the Business and Royalty Agreement. 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 2.

     (h) Sale of Interest in Projects.  If Renewable or Global wants to sell its interest in any Subject 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 2.2(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.

     (i) Financing of Subject Projects. The Parties acknowledge that securing debt financing for each Subject Project may not be possible and that the funding for the initial Subject Projects is expected to be all in
the form of equity, but the Parties agree that they will seek the maximum debt financing for the Subject Projects that is available. If the Parties agree to pursue a financing for a particular Subject Project prior to the placement 

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of the Purchase Order for the Systems that are required for
such Subject Project and the lender(s) for such Subject Project are not willing
to accept the risk that one or both Parties will timely fund its equity
commitments or any of its other support obligations to the Subject Project, each
such Party 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. Notwithstanding anything which is contained herein to the contrary,
neither Party shall be under any obligation whatsoever to provide a “wrap” of
the other Party’s equity obligation or any other credit support obligation of
such other Party to the lender(s).

     (j) Take-Out Financings.
Renewable and Global agree that if the conditions in the project finance market
are generally favorable, the Parties will undertake to secure limited recourse
take-out financing for multiple Subject Projects once they have operated
successfully for a period of at least eighteen (18) months to enable Renewable
and Global to recover some or all of the equity that each has invested in such
Subject Projects. The Parties shall cooperate in good faith in pursuing and
closing such financings. Each Party 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 Subject Projects that are the subject of such financing bears to
the total equity investment of both Parties in all such Subject Projects.

     (k) Entitlements. In each
Subject Project in which both Parties elect to invest, the Parties will form a
Project Company as further provided for in Section 2.2(g) to own such Subject
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.

ARTICLE 3 – CONDITIONS TO EFFECTIVENESS

Section 3.1 Payments to Trianon. On or before the
Effective Date, Global shall provide Covanta with a statement showing all of the
payments made to Trianon pursuant to the Consulting Agreement. 

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

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ARTICLE 4 – EFFECTIVE DATE AND TERM

Section 4.1 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 4.2 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 5 – TERMINATION

Section 5.1 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 the Parties in respect of existing
Project Companies and (ii) any existing obligations of the Parties in respect of
any of the Subject Projects which are the subject of other agreements that have
been entered into by the Parties.

Section 5.2 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 6 – REMEDIES

Section 6.1 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.

	Execution Copy 	12 

Section 6.2 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 7 – RESOLUTION OF DISPUTES

Section 7.1 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 7.1(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 7.1(a) .

     (c) If the matter is not resolved
within thirty (30) days of the written notice in Section 7.1(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 7.2 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 7.1 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

	Execution Copy 	13

of an arbitrator and his/her acceptance within the time period
provided in this Section 7.2, 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 WITH RESPECT TO ANY DISPUTE
ARISING OUT OF OR RELATING TO THIS AGREEMENT.

Section 7.3 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 7.4 Costs. The costs of arbitration shall be
paid in accordance with the decision of the arbitral panel pursuant to the ICC
Rules.

Section 7.5 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.

	Execution Copy 	14 

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:

     (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 Additional Representation by Global. As of
the Effective Date, Global is not in discussions with any Person relating to the
use of the Technology in the United States other than Covanta and Renewable.

ARTICLE 9 – GENERAL PROVISIONS

Section 9.1 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 9.2 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

	Execution Copy 	15

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.

Section 9.3 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):

Global:

Global Energy, Inc.
Moshe Aviv
Tower, 38th Floor 
Ramat Gan 52520, Israel 
Attention: Asi
Shalgi 
Facsimile: +972-77-202-5445

Renewable:

Renewable Diesel, LLC 
945 Ellington
Lane 
Pasadena, CA 91105, USA 
Attention: Bruce I. Drucker 
Facsimile:
+1-815-361-9052

Section 9.4 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 9.5 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 
	Execution Copy 	16 

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 9.6 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 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 9.7 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 9.8 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 9.9 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 9.10 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 9.11 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 9.12 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.
	Execution Copy 	17

Section 9.13 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. 

     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 
	 	 	 
	 	RENEWABLE DIESEL, LLC 
	 	  	  
	 	By: 	 /s/ Bruce
      I. Drucker
	 	  	Bruce I. Drucker, Chief Executive Officer 

	Execution Copy 	18

EXHIBIT 1 – KEY TERMS OF LLCA

The following assumes that the Project to be owned by the
Project Company will be owned solely by Global and Renewable. If Covanta is
entitled to and elects to invest equity in the Project Company, the following
terms shall be modified to account for the ownership of Covanta in the Project
Company, consistent with the key terms outlined in Exhibit 1 of the Business and
Royalty Agreement.

	Newly Formed Entity: 	
      As is provided for in Section 2.2(g), Renewable shall
      form a separate limited liability company (the “Project Company”) for each
      Project that is to be owned jointly by Renewable 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 Renewable 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.
      Global shall appoint two of the Managers so long as it owns a majority
      percentage of the Project Company and Renewable shall appoint one of the
      Managers. If Global owns less then a majority percentage of the Project,
      the foregoing rights shall be reversed. It is further agreed,
      notwithstanding the foregoing, that to have the right to appoint a
      Manager, a Party must be committed to invest at least twenty percent (20%)
      of the total equity required for the Project in the Project Company (the
      “Total Required Equity”). If a Party has committed to invest less than
      twenty percent (20%) of the Total Required Equity, such Party shall not
      have the right to appoint a Manager and the other Party shall appoint all
      of the Managers of the Project Company. If a Party that has committed to
      invest at least twenty percent (20%) of the Total Required Equity fails to
      actually fund at least such percentage, such Party shall lose its right to
      appoint any Managers thereafter. 

	Execution Copy 	19

		
      If the Project Company is owned by Global, Covanta and
      Renewable, the Board of Managers shall consist of four (4) individual
      Managers. Global (as long as it owns a majority percentage of the Project
      Company) shall appoint two of the Managers and Covanta and Renewable shall
      each appoint one of the Managers (subject to the same rules with respect
      to the minimum ownership requirement. 

	  	
       
	
       

	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 a Manager
      appointed by each of the Parties attends the meeting (but only if a Party
      is authorized to appoint one of the Managers as provided for herein).
    

	  	
       
	
       

	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) 
	
      Securing debt financing for the Project Company,
      including the terms of such financing; 

	  	
       
	
		
      (vii) 
	
      Decisions regarding tax elections, the adjudication of
      tax disputes, the settlement of tax disputes and other tax matters of the
      Project Company to the 

	Execution Copy 	20

			
      extent any such decision could have a material adverse
      effect on a Party; 

	  	  	
       

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

	  	  	
       

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

	  	  	
       

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

	  	  	
       

	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. 
	  	  	  
	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.
    
	  	  	  
	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. 

	Execution Copy 	21

	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 	22 

EXHIBIT 2 – FORM OF EQUITY COMMITMENT
LETTER

The following assumes that the Project will be owned by Global
and Renewable. If Covanta is entitled to and elects to invest equity in the
Project, the following terms shall be modified to account for the ownership of
Covanta in the Project. The following further assumes that any Projects that are
identified by Global will be evaluated by Renewable and, if Renewable elects to
participate in such Projects, that Renewable will send out the equity commitment
letter to Global.

[RENEWABLE 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”) and [Renewable Diesel, LLC., a Delaware
limited liability company (“Renewable”)], to invest equity in the
___________________project (the “Project”) being developed in
_____________________.

Renewable [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
_______________.

Renewable 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. Renewable 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. Renewable shall
update the funding schedule from time to time as the development of the Project
proceeds and provide such updates to Global.

The Parties hereby acknowledge and agree 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.
	Execution Copy 	23 

The Parties shall each provide the following percentage of the
  Total Required Equity:

Global: 
Renewable:

[As the percentage is less than twenty percent (20%) of the
Total Required Equity, Global/Renewable 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 letter if one party commits to invest less than
twenty percent (20%) of the Total Required Equity.]

Once the development of the Project advances to a point where
Renewable believes that the Project is likely to proceed, Renewable 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 Development 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: 	  
	[Renewable Diesel, LLC] 	  
	  	  
	  	  
	[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 	24 

SCHEDULE 1 – TOTAL CAPITAL BUDGET

SCHEDULE 2 – PRELIMINARY EQUITY FUNDING SCHEDULE

 

 

 

 

 

	Execution Copy 	25Filed by Automated Filing Services Inc. (604) 609-0244 - Global Energy Inc. - Exhibit 10.27

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 10.27

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 American Renewable Diesel,
LLC, a limited liability company organized and existing under the laws of the
State of Delaware (“American”).

     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;

     WHEREAS, American is interested
in obtaining license rights from Licensor with respect to the Technology, all on
the terms and conditions set forth herein, to secure or to help secure orders
for the sale of the equipment that utilizes the Technology; and

     WHEREAS, Licensor is willing to
grant such license rights to American, 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.

     “American” has the meaning
set forth in the first paragraph hereof and includes 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 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” means Covanta
Energy Corporation, a Delaware corporation.

     “Covanta License
Agreement” means the License Agreement of even date herewith entered into
between Licensor and Covanta, a copy of which is attached hereto as Exhibit
1.

     “Customer” means any
Person that is not owned or controlled by American that wants to purchase a
System for its own account.

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

     “Demonstration Plant”
means the System to be purchased by Covanta as provided for in the Covanta
License Agreement, the order for which has been procured by American.

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

     “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 terminates and ends
on the date that this Agreement terminates.

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

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     “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).

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

     “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.

     “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 second (2nd) 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 that is agreed to by AK and
Covanta (all as further provided for in Section 2.2(c) of the Covanta License
Agreement) 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 

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such performance test, Licensor to provide a notice to such
effect to American in writing; provided further, however, that the
Interim Period shall in no event be longer than two (2) years.

     “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 American.

     “Party” means Licensor or
American, 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.

     “Purchase Order” has the
meaning set forth in Section 2.5.

     “Purchaser” has the
meaning set forth in Section 2.5.

     “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 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 2.

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     “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.

     “Territory” has the
meaning set forth in Section 2.1.

     “Third Party Purchaser”
has the meaning set forth in Section 2.5.

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.”

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ARTICLE 2 – LICENSE RIGHTS

Section 2.1 Grant of License Rights. Subject to the
terms of this Agreement, Licensor hereby grants American the Full Right in the
Territory to market and sell Systems and utilize the Technology. As of the
Effective Date, the territory (the “Territory”) shall be the states of
California, New York and Texas, it being agreed that Licensor shall not grant
any Person the right to sell Systems in New Jersey or Florida before the date by
which American must satisfy the requirement set forth in clause (ii) of the
first sentence of Section 2.1(b) . For the avoidance of doubt, American shall be
entitled to exercise any or all of the license rights that are granted to it in
the Technology itself or through any of its Affiliates, but American shall not
have the right to issue sublicenses to any Person other than an Affiliate. The
Parties further agree as follows:

     (a) Notwithstanding anything that
is contained herein to the contrary, American shall be credited for the sale of
all of the Systems sold to Covanta during the term of this Agreement regardless
of whether such Systems are for use inside or outside the Territory.

     (b) American shall be required to
secure or to help Licensor or Global to secure (i) an order for one KDV 500
prior to the end of the Interim Period (it being agreed that the Purchase Order
being placed by Covanta for the Demonstration Plant satisfies this requirement)
and (ii) orders for an additional two KDV 500s prior to the end of the Initial
Period. If American fails to secure or help Licensor or Global to secure orders
for a total of three KDV 500s prior to the end of the Initial Period, Licensor
shall have the right, in its sole and absolute discretion, to notify American
that it must give up its Full Rights for one (1) of the states in the Territory
(such state to be selected by American). If American meets the two (2)
requirements set forth in this Section 2.1(b), the Territory thereafter shall be
the states of California, New York, Texas, New Jersey and Florida. The phrases
“secure orders” as used herein mean that a Person has executed a Purchase Order
for one or more KDV 500s and made the initial deposit thereunder.

     (c) Licensor acknowledges and
agrees that the ability of American to meet the requirements set forth in this
Section 2.1 will depend, in part, on the initial three KDV 500s installed in the
United States (including the Demonstration Plant) demonstrating the technical
and financial viability of the Technology. Notwithstanding anything contained
herein to the contrary, (i) if there is any delay in the installation of any of
the initial three (3) KDV 500s in the United States, including the Demonstration
Plant (with such KDV 500s meeting all performance guarantees), beyond the date
committed by AK in the applicable Purchase Order or (ii) if any such KDV 500s
experience operating or financial problems due to a failure of the KDV 500 to
operate in accordance with its performance guarantees, then all of the time
periods set forth in this Section 2.1 shall be extended automatically for the
full period of all such delays for all purposes hereof.

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     (d) During the Extended Period,
American shall be required to secure orders for: (i) two (2) KDV 500s per year
for each of the first two (2) full calendar years of the Extended Period; (ii)
five (5) KDV 500s per year for each of the next two (2) calendar years of the
Extended Period; and (iii) ten (10) KDV 500s per year for each calendar year
thereafter, each such determination to be made on a cumulative basis (such that
American shall be entitled to credit additional KDV 500s sold in one year above
the minimum requirement for that year to a later year). If American fails to
meet any such targets in any calendar year during the Extended Period, Licensor
shall have the right, in its sole discretion, to notify American that it shall
only have a Qualified Right in all of the states in the Territory to market and
sell Systems and utilize the Technology for the remainder of the term of this
Agreement. Licensor agrees that all Systems sold by Licensor outside the
Territory that are pursuant to a referral made by American shall count towards
American’s minimum purchase requirements hereunder. However, none of the Systems
purchased by Covanta or an Affiliate of Covanta for its own account during the
Extended Period shall count towards meeting American’s minimum purchase
requirements unless the sale of Systems is to a project developed by American or
an Affiliate of American in which Covanta is an investor.

     (e) For purpose of meeting any of
the minimum order thresholds for KDV 500s which are set forth in this Section
2.1, 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”).

     (f) Notwithstanding anything
contained herein to the contrary, American shall not lose its Full Rights in any
state in the Territory if it fails to meet the cumulative order requirements in
Section 2.1(b) or (d) if (i) AK is not able to produce enough Systems to meet
the Purchase Orders secured by American, Licensor and Global or (ii) any
problems experienced with the Technology in the Systems installed by AK make it
commercially unreasonable for American to secure orders for any additional
Systems until such problems have been resolved, in which case the Parties shall
agree to an equitable adjustment, in good faith, to the cumulative requirements
provisions of Sections 2.1(b) and (d) or extend the date for such requirements
to be performed.

     (g) If American fails to meet its
performance obligations under this Section 2.1 and Licensor elects to require
American to give up its Full Rights in one or more of the states in the
Territory as further provided for herein, American’s sole penalty will be for
its rights in such state(s) to become a Qualified Right to market and sell the
Technology for the remainder of the term of this Agreement.

Section 2.2 Obligation to Make Referrals. If any Person
contacts Licensor or any of its Affiliates regarding the purchase of one or more
Systems for installation in the Territory, Licensor shall refer such Person to
American.

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Section 2.3 Sales to Covanta Energy. The sale of all Systems
  to Covanta or to any of its Affiliates, including the Demonstration Plant, shall
  be pursuant to Purchase Orders placed with AK through Licensor, and American
  shall derive a license fee on all such sales. Licensor shall mark up the cost
  of all of the Systems that are sold to Covanta or any of its Affiliates (other
  than the System for the Demonstration Plant) by ten percent (10%) and pay fifty
  percent (50%) of such amount to American as its commission. Such commissions
  shall be paid to American as the payments that are due from Covanta or its Affiliates
  are received under the applicable Purchase Order.

Section 2.4 Commission on Sales to Other Customers. American
  shall be entitled to a commission of five percent (5%) on all Systems that are
  sold in the Territory. If American identifies a Customer that is interested
  in purchasing one or more Systems in an area that is outside the Territory,
  American shall refer such Customer to Licensor and, if such sale is completed
  (the decision to complete such sale to be made by Licensor in its sole discretion),
  American shall be entitled to a commission of five percent (5%) on such sale.
  Licensor shall mark up the cost of all of the Systems on which American is entitled
  to a commission by ten percent (10%) and pay fifty percent (50%) of such amount
  to American as its commission. Commissions shall be paid to American as the
  payments that are due under the applicable Purchase Orders are received. For
  the avoidance of doubt, in connection with Customers that are identified by
  American outside of the Territory, Licensor shall be obligated to pay the commission
  to American if the System is sold within two (2) years after the Customer is
  identified to Licensor by American.

Section 2.5 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 and provide for
the payment of a sales commission to Licensor (except for the Systems sold for
the Demonstration Plant). 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 American 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 American 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 2.5, all Purchasers and all Third Party Purchasers shall be entitled to
procure components, spare parts and catalysts that 

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

ARTICLE 3 – ANNUAL PRICING; NO ROYALTIES

Section 3.1 Annual Pricing. Licensor, American 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 American for the upcoming year in
connection with its sales and marketing efforts. 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, American 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 American, 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 American’s Customers will not be charged more
during any year for a System than the lowest price that is paid by any other
licensee of Licensor or customer of AK for a comparable System in such year in
the United States.

Section 3.2 No Royalties. Neither American (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 American or its Affiliates of any of the license rights in the
Technology granted under this Agreement.

ARTICLE 4 – CERTAIN OBLIGATIONS OF THE PARTIES

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

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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 American 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
American hereunder or if any such rights granted to Licensor are terminated for
any reason, such new license agreement to preserve American’s Full Rights and/or
Qualified Rights in the Territory.

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”).

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 American will
not have any right, title or interest in or to the Technology, except as
expressly licensed to American 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
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ARTICLE 7 – INFRINGEMENT AND DESIGNATIONS

Section 7.1 Notice of Infringements. During the term
hereof, Licensor and American 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.

Section 7.2 Indemnity for Infringement or
Misappropriation. Licensor shall indemnify and hold harmless American, 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, American 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.

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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:

     (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 or Managers, as the case may be, 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
American, 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 3 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 American 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 of 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;

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     (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 American’s exercise of any of its rights under
this Agreement that have not been licensed to AK;

     (d) Except for any rights granted
to Covanta or Global, 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 American
hereunder;

     (e) The Technology as currently
used by AK and as planned to be used by Licensor and American 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
American 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 American 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
American with a copy of any default notice or any similar communications
received by Licensor from AK during the term hereof and provide American 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 American’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 

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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 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 London,
England 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 

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14

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 – 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.

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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, American
shall retain all the license rights and other rights granted to American
hereunder, without any obligation to purchase any System through Licensor. In
such case, American shall place all Purchase Orders through AK.

Section 10.4 Termination by Licensor. If Licensor
terminates this Agreement based on a failure of American to fulfill any of its
material obligations hereunder, American 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, American shall retain all the
license rights and other rights granted to American 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
American will need to contact public officials in connection with securing
permits or other approvals for the Demonstration Plant. In such regard, American
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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Licensor:

AlphaKat Global Energy GmbH

Schulstrasse 8 
96155 Buttenheim, Germany 
Attention: Chief Executive
Officer 
Facsimile: +49-9545-950325

American:

945 Ellington Lane 
Pasadena, CA
91105, USA 
Attention: Bruce I. Drucker 
Facsimile: +1-815-361-9052

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

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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 2.5.

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 American 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]

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18

     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 
	 	 	  
	 	 	  
	 	 	AMERICAN RENEWABLE 
	 	 	DIESEL, LLC 
	 	 	  
	 	 	  
	 	 	  
	 	By:	 /s/ Bruce I. Drucker 
	 	 	Bruce I. Drucker, Chief Executive Officer 
	 	 	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 and 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 American, such
new license agreement to preserve the Full Rights and/or the Qualified Rights
granted to American in the Territory. 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

       Date: February 6, 2008

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EXHIBIT 1 – COVANTA LICENSE AGREEMENT

 

 

 

 

[filed as Exhibit 10.25 to this Form 10-K]

 

 

Execution Copy 

20

EXHIBIT 2 – 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

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 21

	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 3 – LIST OF 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 	  	  

 22

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