LOCK UP LETTER AGREEMENT
 
 
_______________ ___, 200__
 
Malibu Minerals, Inc.
Suite 2200-1177 West Hastings Street
Vancouver, British Columbia
Canada V6E 2K3

Flex Fuels Energy Limited
C/O Hunton & Williams
 
30 St. Mary Axe
 
London EC3A 8EP
 
Ladies and Gentlemen:
 
The undersigned understands that Flex Fuels Energy Limited (“Flex Fuels”) has
agreed to be acquired by Malibu Minerals, Inc. (the “Company”), pursuant to the
Acquisition Agreement dated December ___, 2006 entered into by and among Flex
Fuels, the Company and the shareholders signatory thereto (the “Agreement”).
 
In consideration of the foregoing, and in order to induce Flex Fuels to enter
into the Agreement, and for other good and valuable consideration receipt of
which is hereby acknowledged, the undersigned hereby agrees that, the
undersigned will not, during the period beginning on the date of the Agreement
and ending on the date 12 months after the Completion Date (as defined in the
Agreement), (1) offer, pledge, announce the intention to sell, sell, contract to
sell, sell any option or contract to purchase, purchase any option or contract
to sell, grant any option, right or warrant to purchase, or otherwise transfer
or dispose of, directly or indirectly, any shares of Common Stock or any
securities convertible into or exercisable or exchangeable for Common Stock
(including without limitation, Common Stock which may be deemed to be
beneficially owned by the undersigned in accordance with the rules and
regulations of the Securities and Exchange Commission and securities which may
be issued upon exercise of a stock option or warrant), or (2) enter into any
swap or other agreement that transfers, in whole or in part, any of the economic
consequences of ownership of the Common Stock, whether any such transaction
described in clause (1) or (2) above is to be settled by delivery of Common
Stock or such other securities, in cash or otherwise.
 
Notwithstanding the foregoing, the restrictions set forth in clause (1) and (2)
above shall not apply to (a) transfers (i) as a bona fide gift or gifts, or (ii)
to any trust for the direct or indirect benefit of the undersigned or the
immediate family of the undersigned; provided, however, that in any such case it
shall be a condition to such transfer that the donee or donees thereof or the
trustee of the trust, as applicable, execute and deliver to the Company an
agreement stating that the transferee is receiving and holding the shares of
Common Stock subject to the provisions of this letter agreement, that
there shall be no further transfer of such shares of Common Stock except in
accordance with this letter agreement, and that any such transfer shall not
involve a disposition for value, or (b) the acquisition or exercise of any stock
option issued pursuant to the Company’s existing stock option plan or employment
agreements, including any exercise effected by the delivery of Securities of the
Company held by the undersigned. For purposes of this Letter Agreement,
“immediate family” shall mean any relationship by blood, marriage or adoption,
not more remote than first cousin. None of the restrictions set forth in this
Letter Agreement shall apply to Common Stock acquired in open market
transactions. Notwithstanding any of the foregoing, the restrictions set forth
in clause (1) and (2) above shall not apply to the undersigned in the event of a
Change of Control transaction with the exception of the transaction contemplated
under the Agreement. Change of Control shall have the definition set forth on
Exhibit A to this Letter Agreement
 
 
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The undersigned further acknowledges that the undersigned has also entered into
or intends to enter into a Voting Trust Agreement (the “Voting Trust Agreement”)
with Sichenzia Ross Friedman Ference LLP (“SRFF”) and has transferred and
deposited or intends to transfer and deposit the certificates evidencing the
number of shares of common stock of the Company held by the undersigned, as set
forth opposite the undersigned’s name on Exhibit A of the Voting Trust
Agreement, to SRFF for the purposes of giving SRFF, or a person appointed by
SRFF for such purpose, the right to vote during the 12 month period from the
Completion Date, the Shares held by the undersigned in favor of any resolution
presented to all of the shareholders of the Company in accordance with the
directions of the Majority Directors (as defined in the Voting Trust Agreement).
 
The undersigned hereby represents and warrants that the undersigned has full
power and authority to enter into this Letter Agreement. All authority herein
conferred or agreed to be conferred and any obligations of the undersigned shall
be binding upon the successors, assigns, heirs or personal representatives of
the undersigned.
 
 
 
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This lock-up agreement shall be governed by and construed in accordance with the
laws of the State of New York, without regard to the conflict of laws principles
thereof.
 
 
 

       
Very truly yours,
 
 
NAME OF SHAREHOLDER:
 
 
   
   
    By:   /s/   

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Number of Shares of Voting
Stock Beneficially Owned: ________

 
Accepted as of the date
first set forth above:
 

        By:      

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    Name
Title
     

 

Accepted as of the date
first set forth above:
 
 
FLEX FUELS ENERGY LIMITED
 

        By:      

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    Name
Title
     

 

 
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EXHIBIT A

DEFINITION OF “CHANGE OF CONTROL”

a) Change of Control. Each of the following events shall constitute a “Change of
Control”:
 
(i) the consolidation, merger or other business combination (including, without
limitation, a reorganization or recapitalization) of the Company with or into
another Person (other than (A) a consolidation, merger or other business
combination (including, without limitation, reorganization or recapitalization)
in which holders of the Company’s voting power immediately prior to the
transaction continue after the transaction to hold, directly or indirectly, the
voting power of the surviving entity or entities necessary to elect a majority
of the members of the board of directors (or their equivalent if other than a
corporation) of such entity or entities, or (B) pursuant to a migratory merger
effected solely for the purpose of changing the jurisdiction of incorporation of
the Company);
 
(ii) the sale or transfer of all or substantially all of the Company’s assets;
or
 
(iii) a purchase, tender or exchange consummated pursuant to an offer made to
and accepted by a sufficient number of holders of the outstanding shares of
Common Stock such that after consummation of such purchase, tender or exchange,
the Person or group of Persons proposing such purchase, tender or exchange
beneficially own 50% or more of the outstanding Common Stock.
 
b) Person.  “Person” means an individual, a limited liability company, a
partnership, a joint venture, a corporation, a trust, an unincorporated
organization, any other entity and a government or any department or agency
thereof.