Document:

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

Exhibit 10.2 

LICENSE AGREEMENT 

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

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

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

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

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

ARTICLE 1 – DEFINITIONS AND INTERPRETATION 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     “ICC” means the
International Chamber of Commerce. 

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

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

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

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

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

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

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

     “Parties” means Licensor
and Covanta. 

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

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

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

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

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

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

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

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

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

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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, including the Document Package. 

     “Territory A” means the
United States. 

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

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

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

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

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

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

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

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

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

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ARTICLE 2 – LICENSE RIGHTS 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ARTICLE 3 – CONSIDERATION 

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

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

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

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

11 

REDACTED. CONFIDENTIAL TREATMENT REQUESTED

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

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

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

ARTICLE 4 – CERTAIN OBLIGATIONS OF THE PARTIES 

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

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

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

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

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

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

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

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

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

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

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

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

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

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REDACTED. CONFIDENTIAL TREATMENT REQUESTED

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

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

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

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

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

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

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

ARTICLE 5 – EFFECTIVE DATE AND TERM 

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

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

ARTICLE 6 – INTELLECTUAL PROPERTY 

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

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

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

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

ARTICLE 7 – INFRINGEMENT AND DESIGNATIONS 

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

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

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

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

ARTICLE 8 – REPRESENTATIONS AND WARRANTIES 

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

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

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

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

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

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

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

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

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

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

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

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

ARTICLE 9 – RESOLUTION OF DISPUTES 

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

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

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

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

Section 9.2 Arbitration of Unresolved Disputes. 

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

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

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

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

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

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

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

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

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

ARTICLE 10 – TERMINATION 

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

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

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

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

ARTICLE 11 – GENERAL PROVISIONS 

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

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

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

Licensor: 

AlphaKat - Global Energy GmbH

Schulstrasse 8 

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96155 Buttenheim, Germany

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

Covanta: 

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

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

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

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

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

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

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

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

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

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

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

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

[Signature page follows] 

23

REDACTED. CONFIDENTIAL TREATMENT REQUESTED

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

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

Acknowledgment and Agreement: 

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

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

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

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

24

REDACTED. CONFIDENTIAL TREATMENT REQUESTED

Date: February 6, 2008 

25

REDACTED. CONFIDENTIAL TREATMENT REQUESTED

EXHIBIT 1 – RIGHTS AGREEMENTS 

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

26

REDACTED. CONFIDENTIAL TREATMENT REQUESTED

EXHIBIT 2 – PATENTS

 

 

 

 

 

27

REDACTED. CONFIDENTIAL TREATMENT REQUESTEDFiled by Automated Filing Services Inc. (604) 609-0244 - Global Energy Inc. - Exhibit 10.3

Exhibit 10.3

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.

	Execution Copy 	2 

     “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;

	Execution Copy 	4

     (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 

	Execution Copy 	5

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 

	Execution Copy 	6

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.

	Execution Copy 	7

     (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.

	Execution Copy 	8

     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.

	Execution Copy 	9 

     (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 

	Execution Copy 	10 

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.

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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

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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.

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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 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

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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 
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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.
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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. 

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      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 

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      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. 

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	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. 

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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 	25

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