PANDA ETHANOL, INC.
EX-10.1
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<TYPE>EX-10.1
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<DESCRIPTION>EX-10.1
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;10.1
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AMENDMENT TO SERVICES AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS
AMENDMENT TO SERVICES AGREEMENT (the <B>&#147;Amendment&#148;</B>) is made and entered into as of November
24, 2008, by and between Panda Energy Management, LP (<B>&#147;PEM&#148;</B>), a Delaware limited partnership, and
Panda Ethanol, Inc. (<B>&#147;PEI&#148; </B>or the
<B>&#147;Company&#148;</B>), a Nevada corporation. PEM and the Company are
hereinafter sometimes referred to individually as a <B>&#147;Party&#148; </B>and jointly as the <B>&#147;Parties.&#148;</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Parties have previously entered into the Services Agreement, effective as of
September&nbsp;1, 2007 (the <B>&#147;Services Agreement&#148;</B>), for the performance of certain administrative
services to PEI and its subsidiaries; and
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Parties desire to amend and modify the Services Agreement to provide, among other
things, for the payment of PEM Services (as defined in the Service Agreement) in the form of cash,
as described below;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the mutual promises contained herein, and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties
hereto agree as follows:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1. <U>Terms of Payment for PEM Services</U>. Section&nbsp;4 of the Services Agreement is hereby
amended and restated in its entirety as follows:
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Within thirty days from the end of each calendar month, PEM will submit an invoice
to the Company for all expenses to be reimbursed to PEM in cash, as specified in Exhibit&nbsp;1.
Such expenses shall be immediately due and payable and if not paid within thirty (30)&nbsp;days
shall bear interest at the rate of 12% per annum;
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to PEM Services performed under the Services Agreement during the
period of October&nbsp;1, 2008 through October&nbsp;15, 2008, upon receipt and verification of an
invoice for such PEM Services, the Company agrees promptly to instruct its stock transfer
agent to issue a certificate to PEM for the number of shares of the Company&#146;s common stock
equal to the aggregate value of PEM Services provided divided by the volume weighted average
closing price for the last 10 trading days of October and to direct the certificate
therefore to be delivered to PEM as soon as reasonably practical.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Within thirty days from the end of each calendar month, PEM shall submit in
writing an invoice or invoices covering its charges to the Company for PEM Services provided
pursuant to this Agreement and rendered to the Company hereunder during such calendar month
(except with respect to the month ended October&nbsp;31, 2008, such period will begin on October
16, 2008 and end on October&nbsp;31, 2008) that are to be paid to PEM in cash as specified in
Exhibit&nbsp;1. PEI shall deliver to PEM such payment within thirty days after its receipt of
PEM&#146;s invoice.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2. <U>Termination</U>. The first sentence of Section&nbsp;8 of the Services Agreement is hereby
amended and restated in its entirety as follows:
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">This Agreement and the provision, or coordination of provision, of PEM Services by PEM as
the case may be, may be terminated on 15 business days&#146; prior written notice by either
Party.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3. <U>Exhibit&nbsp;1</U>. Exhibit&nbsp;1 to the Services Agreement is hereby amended and restated in its
entirety as attached to this Amendment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4. <U>Binding Effect</U>. The Parties confirm that, except to the extent specifically amended
hereby, the provisions of the Services Agreement shall remain unmodified, and the Services
Agreement as so amended is hereby confirmed as being in full force and effect and shall be binding
upon the Parties and their respective successors and assigns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5. <U>Governing Law</U>. This Amendment shall be governed by the laws of the State of Texas.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6. <U>Counterparts</U>. This Amendment may be executed in multiple counterparts, each of which
shall constitute an original, and all of which together shall constitute one document.
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B><I>&#091;Remainder of Page Intentionally Left Blank.<BR>
Signature Page Follows&#093;</I></B>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">IN WITNESS WHEREOF, the Parties hereto have executed this Amendment as of the date first above
written.
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<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>PANDA ENERGY MANAGEMENT, LP</B><BR>
<BR>
By: PEMC, Inc., its General Partner<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Todd W. Carter</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Todd W. Carter</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
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<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
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    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>PANDA ETHANOL, INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Natasha Ray</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Natasha Ray&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Chief Financial Officer and Treasurer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

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<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><FONT style="font-variant: SMALL-CAPS"><U><B>Exhibit&nbsp;1</B></U></FONT>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><U><B>Payment of Non-Labor related PEM Services by company</B></U></FONT>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All amounts payable by the Company in cash for the non-labor related PEM Services provided pursuant
to this Agreement shall be remitted to PEM in United States dollars in the form of a check or wire
transfer to a bank designated in the invoice or otherwise in writing by PEM. As payment relates to
non-labor related PEM Services, PEM and Company will adhere to the payment terms shown in Section
4(a).
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><FONT style="font-variant: SMALL-CAPS"><U><B>Payment of Labor Related PEM Services by Company</B></U></FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All labor related PEM Services rendered to the Company by PEM employees, excluding those PEM
employees that also hold a position with the Company&#146;s board of directors, shall be payable by the
Company in United States dollars in the form of check or wire transfer to a bank designated in the
invoice or otherwise in writing by PEM. As payment relates to labor-related PEM Services, PEM and
Company will adhere to the payment terms shown in Section 4(b) or (c). Any other PEM Services or
expenses related thereto shall be payable in cash according to Section 4(a) of the Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Determination of Value of Services Provided:</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Each month, PEM employee time sheets will be submitted which allocate work hours spent on various
activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Each PEM employee&#146;s annual salary divided by 2,080 will determine that PEM employee&#146;s hourly rate.
The hourly rate for each individual providing PEM Services, multiplied by 2.0 times, will be
applied to the aggregate monthly hours of services provided by that individual to the Company to
determine the value of the PEM Services rendered by PEM to Company. This calculation will be
performed for each PEM employee that provides services to Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Registration Rights:</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Stock issued as payment for PEM Services provided prior to October&nbsp;16, 2008 will have the
registration rights provided by that certain Registration Rights Agreement, dated as of November&nbsp;9,
2007, by and among the Company, Panda Energy International, Inc., and the other holders party
thereto, as amended from time to time.
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