THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
SECURITIES HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT PURPOSES AND NOT WITH A VIEW
TOWARD RESALE AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN
THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR AN
OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT
REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS.
 
10%/12% SENIOR CONVERTIBLE PIK ELECTION NOTE
 
$2,370,182
New York, New York
 
November 4, 2008

 
FOR VALUE RECEIVED, PURE BIOFUELS CORP., a corporation incorporated under the
laws of the state of Nevada (the “Company”), hereby promises to pay to
Plainfield Peru I LLC or its registered assigns (the “Holder”), in lawful money
of the United States of America in immediately available funds, at the office of
the Holder located at Plainfield Peru I LLC, c/o Plainfield Asset Management
LLC, 55 Railroad Avenue, Greenwich, CT 06830 on September 12, 2012 the principal
sum of TWO MILLION THREE HUNDRED SEVENTY THOUSAND ONE HUNDRED EIGHTY TWO DOLLARS
($2,370,182).
 
The Company promises to pay to the Holder interest on the principal amount of
this Note at a rate per annum set forth below from the date of issuance until
maturity. The Company will pay interest on this Note semi-annually in arrears on
March 15 and September 15 of each year, commencing on March 15, 2009, or if any
such day is not a Business Day, on the next succeeding Business Day (each, an
“Interest Payment Date”). Interest on this Note will accrue from the most recent
date to which interest has been paid or, if no interest has been paid, from and
including October 1, 2008. The Company will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal and premium, if any, and interest on overdue installments of interest,
to the extent lawful, from time to time on demand at a rate per annum that is 2%
in excess of the rate otherwise payable. If an Event of Default has occurred and
is continuing, interest on this Note shall accrue at a rate per annum that is 2%
in excess of the rate otherwise applicable. Interest will be computed on the
basis of a 360-day year comprised of twelve 30-day months.
 
The Company may, at its option, elect to pay interest on this Note (i) entirely
in cash (“Cash Interest”) or (ii) entirely by issuing additional Notes (“PIK
Interest”). The first payment of interest on this Note shall be in PIK Interest.
Thereafter, the Company must elect the form of interest payment with respect to
each interest period by delivering a notice to the Holder prior to the beginning
of each interest period. In the absence of such an election for any interest
period, interest on this Note will be payable in the form of the interest
payment for the prior interest period.
 

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Cash Interest on this Note will accrue at the rate of 10% per annum. PIK
Interest on this Note will accrue at the rate of 12% per annum and be payable by
issuing additional Notes (“PIK Notes”) in an aggregate principal amount equal to
the amount of PIK Interest for the applicable interest period (rounded up to the
nearest whole dollar) and the Company will issue and deliver such PIK Notes to
the Holder of this Note. Any PIK Notes will be dated as of the applicable
interest payment date and will bear interest from and after such date. All PIK
Notes issued pursuant to a PIK Payment will mature on September 12, 2012 and
will be governed by, and subject to the terms, provisions and conditions of, the
Purchase Agreement referred to below and shall have the same rights and benefits
as the Notes issued on the Issue Date.
 
The Company hereby waives presentment, demand, protest or notice of any kind in
connection with this Note.
 

 
1.
Purchase Agreement

 
This Note is one of a series of Senior Convertible PIK Election Notes issued
pursuant to a Securities Purchase Agreement, dated as of September 12, 2007 (as
from time to time amended, the “Purchase Agreement”), between the Company and
the purchaser named therein and is entitled to the benefits thereof. Each holder
of this Note will be deemed, by its acceptance hereof, (i) to have agreed to the
confidentiality provisions set forth in Section 13.14 of the Purchase Agreement
and (ii) to have made the representation set forth in Section 5.2 of the
Purchase Agreement.
 

 
2.
Optional Redemption

 
This Note is not subject to optional prepayment or redemption.
 

 
3.
Registration and Transfer

 
This Note is a registered Note and, as provided in the Purchase Agreement, upon
surrender of this Note for registration of transfer, duly endorsed, or
accompanied by a written instrument of transfer duly executed, by the registered
holder hereof or such holder’s attorney duly authorized in writing, a new Note
for a like principal amount will be issued to, and registered in the name of,
the transferee. Prior to due presentment for registration of transfer, the
Company may treat the person in whose name this Note is registered as the owner
hereof for the purpose of receiving payment and for all other purposes, and the
Company will not be affected by any notice to the contrary.
 
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4.
Conversion

 
The Holder may convert this Note into fully paid and nonassessable shares of
Common Stock of the Company at any time after the date hereof and on or prior to
September 12, 2012. The initial conversion price is $0.30 per share, subject to
adjustment as provided in the Purchase Agreement. To determine the number of
shares issuable upon conversion of this Note, divide the principal amount and
accrued but unpaid interest to be converted by the conversion price in effect on
the conversion date. In connection with the conversion of Notes, no fractions of
shares of Common Stock shall be issued, but the Company shall, with respect to
any fractional interest: (i) pay cash with respect to the Market Price of such
fractional share; or (ii) round up to the next whole share of Common Stock.
 

 
5.
Events of Default

 
If an Event of Default, as defined in the Purchase Agreement, occurs and is
continuing, the principal of this Note may be declared or otherwise become due
and payable in the manner, at the price and with the effect provided in the
Purchase Agreement.
 

 
[Remainder of Page Intentionally Left Blank]
 
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THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAWS OF
THE STATE OF NEW YORK.
 

        PURE BIOFUELS CORP.  
   
   
    By:       Name: Luis Goyzueta   Title: Chief Executive Officer

 
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ASSIGNMENT FORM

To assign this Note, fill in the form below:

I or we assign and transfer this Note to

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(Insert assignee's soc. sec. or tax I.D. no.)

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(Print or type assignee's name, address and zip code)

Your Signature:

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(Sign exactly as your name appears on the Note)

Date: ______________________________
 
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CONVERSION NOTICE

To convert this Note into Common Stock of the Company, check the box:
[  ]

To convert only part of this Security, state the principal amount to be
converted:
$_____________________.

If you want the stock certificate made out in another person's name, fill in the
form below:
 

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(Insert assignee's soc. sec. or tax I.D. no.)

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(Print or type assignee's name, address and zip code)

Your Signature:

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(Sign exactly as your name appears on the Note)

Date: ______________________________
 
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