Document:

SUBSCRIPTION
AGREEMENT

     

    This
SUBSCRIPTION AGREEMENT
(this “Agreement”) is
entered into as of the date of its acceptance by New Generation Biofuels
Holdings, Inc., a Florida corporation (the “Company”), set forth
below (the “Effective
Date”), by and between the Company and the subscriber set forth on the
signature page hereto (the “Subscriber”).

     

    RECITALS

     

    WHEREAS, the Company desires
to offer (the “Offering”) up to
3,000,000 shares (the “Shares”) of common
stock of the Company, $0.001 par value per share (the “Common Stock”) and
warrants (the “Warrants”, in the
form attached hereto as Exhibit A) to
purchase up to 3,000,000 shares of Common Stock, to be sold in units (the “Units”), at a
negotiated price per unit equal to the closing price of the Company’s common
stock on the Nasdaq Capital Market on the Pricing Date (as defined herein) (the
“Unit Price”),
with each unit consisting of: (i) one share of our common stock and (ii) a
Warrant to purchase one share of our common stock at an exercise price of $0.90
per share;

     

    WHEREAS, the Company desires
to offer each Subscriber in the Offering the option to purchase additional Units
(the “Option
Units”) consisting of shares of Common Stock (the “Option Shares”) and
Warrants (the “Option
Warrants”) at the Unit Price during a defined exercise period, as
specified herein;

     

    WHEREAS, the Company desires
to issue and sell to the Subscriber the Units set forth on the signature page
hereof; and

     

    WHEREAS, in connection with
the Offering the Company or its agents have provided to Subscriber a copy of the
Company’s Confidential Private Placement Memorandum dated January 27, 2010
(together with the appendices, exhibits and attachments thereto, the “Private Placement
Memorandum”), which provides certain material disclosures in connection
with the Offering.

     

    WHEREAS, as part of the
Offering, the Company will agree to register for resale with the Securities and
Exchange Commission (“SEC”) the Shares and
the Option Shares by filing a resale registration statement (the “Registration
Statement”), pursuant to the registration rights agreement in the form
attached to the Private Placement Memorandum thereto (the “Registration Rights
Agreement”).

     

    AGREEMENT

     

    NOW THEREFORE, based upon the
premises and mutual promises set forth below, the parties agree as
follows:

     

    1.           Subscription for Units;
Terms of the Offering.

     

    1.1.           Subscription and Issuance of
the Units.  Subject to the terms and conditions hereinafter set
forth, the Subscriber hereby subscribes for and agrees to purchase the Units at
the Unit Price and for the aggregate purchase price set forth on the signature
page hereof (the “Purchase
Price”).  The Purchase Price is payable by wire transfer (in
accordance with the wire transfer instructions set forth in the Private
Placement Memorandum) of immediately available funds delivered at the Closing
(as defined below).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    1.2.           Subscription
Period.  The Company may, in its sole discretion, continue to
accept subscriptions until the Closing Date (as defined below).

     

    1.3.           Right to
Reject.  The Company reserves the right to reject this
subscription in whole or in part or terminate the Offering in its sole and
absolute discretion.  If Subscriber’s subscription is rejected in
whole, or the Offering is terminated without a Closing occurring, all funds
received from the Subscriber will be promptly returned without interest,
penalty, expense or deduction, and this Agreement shall thereafter be of no
further force or effect.  If Subscriber’s subscription is rejected in
part, the funds for the rejected portion of such subscription will be promptly
returned without interest, penalty, expense or deduction and this Agreement will
continue in full force and effect to the extent such subscription was
accepted.

     

    1.4           Option.  If
the Company accepts this subscription in whole or in part, the Subscriber will
have an option to purchase Option Units.  Subject
to Nasdaq listing approval and determination that shareholder approval is not
required for the issuance of Option Units, the Option Units will be in an amount not exceeding
the number of Units purchased, at the Unit Price during an exercise period (the
“Option Exercise
Period”) commencing on the Closing Date until thirty (30) calendar days
after the Registration Statement is declared effective by the SEC (the “Option”).  The
Option Warrants will have the same exercise price, terms and conditions as the
Warrants issued as part of the Units in the Offering, except that the date of
issuance shall be the date that the Option is exercised.  Subscribers
may exercise the Option by submitting the Option Election Form, attached hereto
as Exhibit C,
and following the instructions specified therein.

     

    1.5           Price
Protection.  If at any time prior to six (6) months after the
Registration Statement is declared effective by the SEC, the Company issues
Further Shares of Common Stock in a “Financing Transaction” (as defined herein)
with a Purchase Price less than the Unit Price or issues Additional Convertible
Securities with a Conversion Price less than the Unit Price (the “Additional Equity
Securities”), then the Company will issue additional shares of Common
Stock to each Subscriber in the Offering so that the aggregate number of shares
received by the Subscriber (including shares issued in the Offering and all
additional shares issued pursuant to these anti-dilution provisions) is equal to
the number of shares of Common Stock that such Subscriber would have received if
the same dollar amount had been invested at the Purchase Price of the Additional
Equity Securities, provided, however, that the maximum number of shares that may
be issued by the Company under this provision, after taking into account all
Shares and Option Shares that may be issued under this Agreement, will be
subject to any Nasdaq Limitation. If the Nasdaq Limitation limits the Company
from issuing all of the shares otherwise issuable to Subscribers, such shares
shall be issued pro rata among Subscribers based on the dollar amount invested
in the Offering.   Any fractional share will be rounded down to
the nearest whole share.

     

    
      
         

      

      
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    2.           Closing.

     

    2.1.           Pricing and
Closing.  The pricing shall take place on a date established by
the Company by notice to all investors which as of such date had submitted
subscriptions that are being accepted by the Company (“Pricing
Date”).  The closing of the transactions contemplated hereby
(the “Closing”)
shall take place on the date established by the Company, which is intended to
commence on the first business day after the Pricing Date and notice thereof
(the “Closing
Date”).  The Closing shall occur at such place as determined by
the Company.

     

    2.2.           Termination of
Offering.  All payments will be held by the Company until the
Company declares the Closing effective or terminates the
Offering.  The Offering will be terminated if either (i) the Closing
does not become effective on or prior to February 16, 2010, or (ii) the Company
elects to terminate the Offering.  If the Offering is terminated, the
Company will return any payments received, without interest, to the
Subscribers.

     

    3.           Representations
and Warranties of the Company.  The Company
hereby represents and warrants to the Subscriber that the following
representations and warranties shall be true immediately prior to the
Closing:

     

    3.1.           Organization; Good Standing;
Qualification.  The Company is a corporation duly organized,
validly existing and in good standing under the laws of the state of Florida and
has all requisite corporate power and authority to carry on its business as
presently conducted and as proposed to be conducted.  The Company is
duly qualified to transact business and is in good standing in each jurisdiction
in which the failure to so qualify would have a material adverse effect on the
consolidated financial condition or results of operations of the
Company.

     

    3.2.           Capitalization.  The
capitalization of the Company is as described in the Company’s filings with the
SEC (other than shares issued upon the exercise of outstanding options or as
employee compensation or upon conversion of outstanding preferred stock
described in the Company’s SEC filings).  All of the issued and
outstanding capital stock or equity interests of the Company’s subsidiaries are
owned by the Company.

     

    3.3.           Authorization.  The
Company’s board of directors has taken all corporate action required to be taken
to authorize the Company to enter into this Agreement, the Registration Rights
Agreement and to issue the Securities.  This Agreement and the
Registration Rights Agreement when executed and delivered by the Company, shall
constitute the valid and legally binding obligation of the Company, enforceable
against the Company in accordance with its terms except (i) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance, or other laws of general application relating to or affecting the
enforcement of creditors’ rights generally, or (ii) as limited by laws relating
to the availability of specific performance, injunctive relief, or other
equitable remedies and public policy limitations on the enforcement of
indemnification for violations of securities laws.

     

    3.4.           Valid Issuance of
Securities.  The Securities, when issued, sold and delivered in
accordance with the terms and for the consideration set forth in this Agreement,
and the shares of Common Stock issuable upon exercise of the Warrants will be
duly authorized, validly issued, fully paid and non-assessable and free of
restrictions on transfer other than restrictions on transfer under this
Agreement and under applicable state and federal securities laws.

     

    
      
         

      

      
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    3.5.           SEC Documents, Financial
Statements.

     

     
(a)           True and
complete copies of all documents filed by the Company with the SEC and
incorporated by reference into the Private Placement Memorandum (the “Incorporated SEC
Documents”) are publicly available on the SEC EDGAR database
(www.sec.gov).  As of their respective filing dates, the Incorporated
SEC Documents complied as to form in all material respects with the requirements
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and
the Securities Act of 1933, as amended (the “Securities Act”), and
each of the Incorporated SEC Documents was timely filed.  To the
Company’s knowledge, as of the date hereof, none of the Incorporated SEC
Documents is subject to ongoing SEC review or outstanding SEC
comment.  Each of the Incorporated SEC Documents, as of the date it
was filed with the SEC, did not contain any untrue statement of material fact or
omitted to state a material fact required to be stated therein or necessary to
make the statements made therein, in light of the circumstances in which they
were made, not misleading, except to the extent corrected, supplemented or
superseded by a subsequently filed Incorporated SEC Document.

     

     
(b)           The
financial statements of the Company, including the notes thereto, included in
the Incorporated SEC Documents (the “Company Financial
Statements”) (i) complied as to form in all material respects with
applicable accounting requirements and with the published rules and regulations
of the SEC with respect thereto as of their respective dates; (ii) have been
prepared in accordance with GAAP applied on a basis consistent throughout the
periods indicated and consistent with each other (except as may be indicated in
the notes thereto or, in the case of unaudited statements, included in Quarterly
Reports on Form 10-Q, as permitted by Form 10-Q of the SEC); and (iii) present
fairly in all material respects the consolidated financial condition and results
of operations of the Company as of the respective dates and for the respective
periods indicated therein (subject, in the case of unaudited statements, to
normal, recurring year-end adjustments).

     

    3.6.           Absence of Undisclosed
Liabilities.  The Company has no material liabilities except
(i) liabilities provided for or reserved against in the Company Financial
Statements, (ii) liabilities disclosed in the Private Placement Memorandum, and
(iii) liabilities arising in the ordinary course of business consistent with
past practice since September 30, 2009.

     

    4.           Representations
and Warranties of the Subscriber.  The Subscriber
hereby acknowledges, agrees with and represents and warrants to the Company as
follows:

     

    4.1.           Authorization.  The
Subscriber has full power and authority to enter into this Agreement and the
Registration Rights Agreement, the execution and delivery of which has been duly
authorized, if applicable, and this Agreement and the Registration Rights
Agreement constitutes a valid and legally binding obligation of the
Subscriber.

     

    4.2.           Securities
Exemption.  The Subscriber acknowledges his, her or its
understanding that the offering and sale of the Securities is intended to be
exempt from registration under the Securities Act by virtue of Section 4(2) of
the Securities Act and the provisions of Regulation D promulgated thereunder
(“Regulation
D”).  In furtherance thereof, the Subscriber represents and
warrants to the Company as follows:

     

    
      
         

      

      
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(a)           The
Subscriber realizes that the basis for the exemption from registration may not
be available if, notwithstanding the Subscriber’s representations contained
herein, the Subscriber is merely acquiring the Securities for a fixed or
determinable period in the future, or for a market rise, or for sale if the
market does not rise.  The Subscriber does not have any such
intention.

     

     
(b)           The
Subscriber is acquiring the Securities solely for the Subscriber’s own
beneficial account, for investment purposes, and not with view to, or resale in
connection with, any distribution of the Securities.

     

     
(c)           The
Subscriber has the financial ability to bear the economic risk of his, her or
its investment, has adequate means for providing for their current needs and
contingencies, and has no need for liquidity with respect to the investment in
the Company.

     

     
(d)           The
Subscriber and the Subscriber’s attorney, accountant, purchaser representative
and/or tax advisor, if any (collectively, “Advisors”), have
received this Agreement, together with the Private Placement Memorandum, and all
other documents provided by the Company pursuant to the requests of the
Subscriber or its Advisors, if any, and have carefully reviewed them and they
understand the information contained therein, prior to the execution of this
Agreement.

     

     
(e)           The
Subscriber (together with his, her or its Advisors, if any) has such knowledge
and experience in financial and business matters as to be capable of evaluating
the merits and risks of the prospective investment in the
Securities.  If other than an individual, the Subscriber also
represents it has not been organized solely for the purpose of acquiring the
Securities.

     

    4.3.           Investor
Questionnaire.  The information in the Investor Questionnaire
completed and executed by the Subscriber in the form attached as Exhibit B hereto (the
“Investor
Questionnaire”) is true and accurate in all respects, and the Subscriber
is an “accredited investor,” as that term is defined in Rule 501(a) of
Regulation D.

     

    4.4.           Restricted
Securities.  The Subscriber represents, warrants and agrees
that he, she or it will not sell or otherwise transfer any securities issued
hereunder (the “Securities”)  without
registration under the Securities Act or an exemption therefrom, and fully
understands and agrees that the Subscriber must bear the economic risk of his,
her or its purchase because, among other reasons, the Securities have not been
registered under the Securities Act or under the securities laws of any state
and, therefore, cannot be resold, pledged, assigned or otherwise disposed of
unless they are subsequently registered under the Securities Act and under the
applicable securities laws of such states, or an exemption from such
registration is available.  In particular, the Subscriber is aware
that the Securities are “restricted securities,” as such term is defined in Rule
144 promulgated under the Securities Act (“Rule 144”), and they
may not be sold pursuant to Rule 144 unless all of the conditions of Rule 144
are met.  The Subscriber also understands that, except as otherwise
provided in the Registration Rights Agreement, the Company is under no
obligation to register the Securities on his, her or its behalf or to assist
them in complying with any exemption from registration under the Securities Act
or applicable state securities laws.  The Subscriber understands that
any sales or transfers of the Securities are further restricted by state
securities laws and the provisions of this Agreement.

     

    
      
         

      

      
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    4.5.           Reliance on
Representations.  No representations or warranties have been
made to the Subscriber by the Company, or any of their respective officers,
employees, agents, sub-agents, affiliates or subsidiaries, other than any
representations of the Company contained herein, and in subscribing for the
Securities the Subscriber is not relying upon any representations other than
those contained herein.

     

    4.6.           Investment
Risk.  The Subscriber understands and acknowledges that his,
her or its purchase of the Securities is a speculative investment that involves
a high degree of risk and the potential loss of their entire investment and has
carefully read and considered the matters set forth in the Private Placement
Memorandum and in the Incorporated SEC Documents and in particular the matters
under the caption “Risk Factors” therein, and, in particular, acknowledges that
the Company has a limited operating history and is engaged in a highly
competitive business.

     

    4.7.           Commitment to
Investments.  The Subscriber’s overall commitment to
investments that are not readily marketable is not disproportionate to the
Subscriber’s net worth, and an investment in the Securities will not cause such
overall commitment to become excessive.

     

    4.8.           Legend.  The
Subscriber understands and agrees that the certificates for the Securities shall
bear substantially the following legend until (i) such shares shall have been
registered under the Securities Act and effectively disposed of in accordance
with a registration statement that has been declared effective or (ii) in the
opinion of counsel for the Company such Securities may be sold without
registration under the Securities Act, as well as any applicable “blue sky” or
state securities laws:

     

    
      
        
          	
                    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY
      APPLICABLE STATE SECURITIES LAWS.  SUCH SECURITIES HAVE BEEN
      ACQUIRED FOR INVESTMENT PURPOSES AND MAY NOT BE OFFERED FOR SALE, SOLD,
      DELIVERED AFTER SALE, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE
      OF AN EFFECTIVE REGISTRATION STATEMENT FILED BY THE ISSUER WITH THE
      U.S.  SECURITIES AND EXCHANGE COMMISSION COVERING SUCH
      SECURITIES UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL SATISFACTORY
      TO THE ISSUER THAT SUCH REGISTRATION IS NOT
      REQUIRED.

                

        

      

       

    

    4.10.         Status of
Securities.  Neither the U.S. Securities and Exchange
Commission (the “SEC”) nor any state securities commission has approved the
Securities or passed upon or endorsed the merits of the Offering or confirmed
the accuracy or determined the adequacy of any information provided by the
Company to the Subscriber or its Advisors.  Neither this Agreement nor
any of such information has been reviewed by any federal, state or other
regulatory authority.

     

    
      
         

      

      
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    4.11.         Disclosure of
Information.  The Subscriber and his, her or its Advisors, if
any, have had a reasonable opportunity to ask questions of and receive answers
from a person or persons acting on behalf of the Company concerning the offering
of the Securities and the business, financial condition, results of operations
and prospects of the Company, and all such questions have been answered to the
full satisfaction of the Subscriber and his, her or its Advisors, if
any.  The Subscriber is unaware of, is in no way relying on, and did
not become aware of the offering of the Securities through or as a result of,
any form of general solicitation or general advertising including, without
limitation, any article, notice, advertisement or other communication published
in any newspaper, magazine or similar media or broadcast over television or
radio, or electronic mail over the internet, in connection with the offering and
sale of the Securities and is not subscribing for Securities and did not become
aware of the offering of the Securities through or as a result of any seminar or
meeting to which the Subscriber was invited by, or any solicitation of a
subscription by, a person not previously known to the Subscriber in connection
with investments in securities generally.  To the extent that the
Subscriber has received any non-public information which the Company identifies
as likely to be material, the Subscriber acknowledges that they must keep such
information confidential and may not trade in the Company’s securities until the
Company has filed its annual report on Form 10-K for the fiscal year ended
December 31, 2009. 

     

    4.12.         No
Claim.  The Subscriber has taken no action which would give
rise to any claim by any person for brokerage commissions, finders’ fees or the
like relating to this Agreement or the transactions contemplated
hereby.

     

    4.13.         Forward-Looking
Statements.  The Subscriber acknowledges that any estimates or
forward-looking statements or projections included in the information provided
by the Company, were prepared by the management of the Company in good faith,
but that the attainment of any such projections, estimates or forward-looking
statements cannot be guaranteed by the Company or such management and should not
be relied upon.

     

    4.14.         No Inconsistent
Information.  No oral or written representations have been
made, or oral or written information furnished, to the Subscriber or his, her or
its Advisors, if any, in connection with the offering of the Shares which are in
any way inconsistent with the information contained herein or in the
Memorandum.

     

    4.15.         ERISA.  (For
ERISA plans only) The fiduciary of the Employee Retirement Income Security Act
of 1974 (“ERISA”) plan (the
“Plan”)
represents that such fiduciary has been informed of an understands the Company’s
investment objectives, policies and strategies, and that the decision to invest
“plan assets” (as such term is defined in ERISA) in the Company is consistent
with the provisions of ERISA that require diversification of plan assets and
impose other fiduciary responsibilities.  The Subscriber or Plan
fiduciary (a) is responsible for the decision to invest in the Company; (b) is
independent of the Company and any of their respective affiliates; (c) is
qualified to make such investment decision; and (d) in making such decision, the
Subscriber or Plan fiduciary has not relied primarily on any advice or
recommendation of the Company or any of its affiliates.

     

    
      
         

      

      
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    5.           Insider Trading Prohibition;
Indemnity.

     

    5.1.           Insider
Trading.  Until the filing by the Company of a current report
on Form 8-K with the SEC describing the Offering, the Subscriber hereby agrees
to (i) refrain from (A) engaging in any transactions with respect to the capital
stock of the Company or securities exercisable or convertible into or
exchangeable for any shares of capital stock of the Company, and (B) entering
into any transaction which would have the same effect, or entering into any
swap, hedge or other arrangement that transfers, in whole or in part, any of the
economic consequences of ownership of the capital stock of the Company and (ii)
indemnify and hold harmless the Company, and their respective officers and
directors, employees, agents, sub-agents and affiliates and each other person,
if any, who controls any of the foregoing, against any loss, liability, claim,
damage and expense whatsoever (including, but not limited to, any and all
expenses whatsoever reasonably incurred in investigating, preparing or defending
against any litigation commenced or threatened or any claim whatsoever) arising
out of or based upon any violation of this Section 5 by the
Subscriber.

     

    5.2.           Indemnity.  The
Subscriber agrees to indemnify and hold harmless the Company and their
respective officers and directors, employees, agents, sub-agents and affiliates
and each other person, if any, who controls any of the foregoing, against any
loss, liability, claim, damage and expense whatsoever (including, but not
limited to, any and all expenses whatsoever reasonably incurred in
investigating, preparing or defending against any litigation commenced or
threatened or any claim whatsoever) arising out of or based upon any false
representation or warranty by the Subscriber, or the Subscriber’s breach of, or
failure to comply with, any covenant or agreement made by the Subscriber herein
or in any other document furnished by the Subscriber to the Company, a finder
and their respective officers and directors, employees, agents, sub-agents and
affiliates and each other person, if any, who controls any of the foregoing in
connection with the Offering.

     

    6.           Notices to
Subscribers.

     

     
(a)           THE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OR THE SECURITIES
LAWS OF ANY STATE AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH
LAWS.  THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SEC, ANY STATE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY, NOR HAVE ANY
OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING
OR THE ACCURACY OR ADEQUACY OF THIS AGREEMENT OR ANY INFORMATION PROVIDED IN
CONNECTION HEREWITH.  ANY REPRESENTATION TO THE CONTRARY IS
UNLAWFUL.

     

      (b)           THE
SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT
BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT, AND
APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION
THEREFROM.  SUBSCRIBERS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO
BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF
TIME.

     

    
      
         

      

      
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    7.            Certain
Definitions.

     

    “Further Shares of Common
Stock” means shares of Common Stock issued by the Company in a Financing
Transaction, which for the avoidance of doubt shall not include shares of Common
Stock issued or issuable:

     

    (A)          by
reason of a dividend, stock split or other distribution;

    

    (B)          as
Employee Awards;

    

    (C)          upon
exercise of options or warrants or other rights to purchase Common Stock or upon
conversion of Additional Convertible Securities;

    

    (D)          to
holders of shares of any class of preferred stock as a result of the application
of anti-dilution provisions applicable to such shares;

    

    (E)          as
a penalty for failure to effect registration or similar action.

    

    “Nasdaq Limitation“
means the total number of shares of Common Stock issued to all investors in
the Offering as Shares, Option Shares, shares issuable upon the exercise of
Warrants or shares issuable pursuant to price protection provisions of this
Agreement shall not exceed the maximum number that may be issued under the
listing rules of the Nasdaq Capital Market without requiring the Company to
obtain shareholder approval.

    

    “Purchase Price” means, for shares of
Common Stock, the price per share for which Common Stock is issued in a
Financing Transaction, determined by dividing (i) the total amount, if any,
received or receivable by the Company as consideration for such shares of Common
Stock, by (ii) the number of shares of Common Stock issued in such
transaction (and in the case where more than one security is issued for a
specified aggregate consideration, the entire consideration shall be allocable
to the shares of Common Stock).

    

    “Financing
Transaction” means a transaction commenced after the Closing Date that
provides financing to the Company in the amount of $1,000,000 or more in cash,
excluding transactions in which (i) the only investors have, or following such
transaction will have, substantive business relationships with the Company other
than the ownership of securities of the Company or its subsidiaries, and (ii)
the consideration received by the Company does not consist solely of
cash.  For the avoidance of doubt, transactions such as joint
ventures, arrangements with the licensor of our proprietary technology,
arrangements with customers or suppliers, acquisitions of property, loan
transactions with commercial lenders, Shares Acquired from an Affiliate/Partner
and the like where raising financing is not the primary purpose of the
transaction (as evidenced by a reasonable determination of the Board of
Directors of the Company) shall not be considered Financing
Transactions.

     

    
      
         

      

      
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    “Shares Acquired from an
Affiliate/Partner” means (i) shares which were acquired from any
affiliate of the Company (which for this purpose shall include any holder of 10%
or more of the Common Stock or other voting stock of the Company) or any
strategic partner of the Company, or (ii) an equivalent number of shares of
Common Stock issued or reserved for issuance where either all or part of the
proceeds of such shares are used to acquire shares from any affiliate or any
strategic partner of the Company or an equivalent number of treasury shares
acquired from any affiliate or any strategic partner of the Company are retired
substantially concurrently with or as an offset to such issuance or reservation
of Common Stock.

    

    “Employee Awards” are
defined as grants of shares of Common Stock or convertible securities (either
restricted or unrestricted), options to subscribe for, purchase or otherwise
acquire Common Stock or convertible securities, or other equity or equity-like
rights granted or issued by the Company to employees, officers, directors,
consultants or advisors of the Company or any subsidiary pursuant to a plan or
other arrangement adopted by the Board of Directors of the Company,
contemplating (in the case of grants with an exercise price) that such grants
generally would be made with exercise prices at least equal to fair market value
as determined by the Board of Directors of the Company or the compensation
committee thereof.

    

    “Additional Convertible
Securities” means evidence of indebtedness, preferred stock or other
securities directly or indirectly convertible into or exchangeable for Common
Stock, but not including warrants or options or other rights to purchase Common
Stock, which Additional Convertible Securities are issued by the Company in a
Financing Transaction, which for the avoidance of doubt shall not include
Additional Convertible Securities issued or issuable as Employee
Awards.

    

    “Conversion Price”
means, for any Additional Convertible Securities, the price per share for which
Common Stock is issuable upon conversion or exchange of such Additional
Convertible Securities, determined by dividing (i) the total amount
received or receivable by the Company as consideration for the issue or sale of
such Additional Convertible Securities, plus the aggregate amount of additional
consideration, if any, payable to the Company upon the conversion or exchange
thereof, by (ii) the total number of shares of Common Stock issuable upon the
conversion or exchange of all such Additional Convertible Securities (and in the
case where more than one security is issued for a specified aggregate
consideration, the entire consideration shall be allocable to the Additional
Convertible Securities).

     

    8.            Miscellaneous
Provisions.

     

    8.1.           Modification.  Neither
this Agreement, nor any provisions hereof, shall be waived, modified, discharged
or terminated except by an instrument in writing signed by the party against
whom any waiver, modification, discharge or termination is sought.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    8.2.           Survival.  The
Subscriber’s representations and warranties made in this Agreement shall survive
the execution and delivery of this Agreement, the delivery of the Securities and
the Closing and shall in no way be affected by any investigation of the subject
matter thereof made by or on behalf of any of the Subscribers, their Advisors or
the Company, as the case may be.

     

    8.3.           Notices.  Any
party may send any notice, request, demand, claim or other communication
hereunder to the Subscriber at the address set forth on the signature page of
this Agreement or to the Company at New Generation Biofuels Holdings, Inc., 5850
Waterloo Road, Suite 140, Columbia, MD 21045 (fax: (443) 638-0277), Attention:
Cary J. Claiborne, Chief Executive Officer, or such other address or facsimile
number as shall have been furnished to the party giving or making such notice,
demand or delivery using any means (including personal delivery, expedited
courier, messenger service, fax, ordinary mail or electronic mail), but no such
notice, request, demand, claim or other communication will be deemed to have
been duly given unless and until it actually is received by the intended
recipient.  Any party may change the address to which notices,
requests, demands, claims and other communications hereunder are to be delivered
by giving the other parties written notice in the manner herein set
forth.

     

    8.4.           Binding
Effect.  Except as otherwise provided herein, this Agreement
shall be binding upon, and inure to the benefit of, the parties to this
Agreement and their heirs, executors, administrators, successors, legal
representatives and assigns.  If the Subscriber is more than one
person or entity, the obligation of the Subscriber shall be joint and several
and the agreements, representations, warranties and acknowledgments contained
herein shall be deemed to be made by, and be binding upon, each such person or
entity and his or its heirs, executors, administrators, successors, legal
representatives and assigns.  This Agreement sets forth the entire
agreement and understanding between the parties as to the subject matter thereof
and merges and supersedes all prior discussions, agreements and understandings
of any and every nature among them.

     

    8.5.           Assignability.  This
Agreement is not transferable or assignable by the Subscriber.

     

    8.6.           Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

     

    8.7.           Severability.  Whenever
possible, each provision of this Agreement shall be interpreted in such manner
as to be effective and valid under applicable law, but if any provision of this
Agreement is held to be prohibited by or invalid under applicable law, such
provision shall be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Agreement.

     

    8.8.           Interpretation.  The
headings and captions used in this Agreement are for convenience of reference
only and do not constitute a part of this Agreement and shall not be deemed to
limit, characterize or in any way affect any provision of this Agreement, and
all provisions of this Agreement shall be enforced and construed as if no
caption or heading had been used herein or therein.  Each defined term
used in this Agreement shall have a comparable meaning when used in its plural
or singular form.  The use of the word “including” herein shall mean
“including without limitation.” The parties have participated jointly in the
negotiation and drafting of this Agreement.  In the event an ambiguity
or question of intent or interpretation arises, this Agreement shall be
construed as if drafted jointly by the parties, and no presumption or burden of
proof shall arise favoring or disfavoring any party by virtue of the authorship
of any of the provisions of this Agreement.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    8.9.           No Third-Party
Beneficiaries.  Nothing herein expressed or implied is intended
or shall be construed to confer upon or give to any person or entity other than
the parties hereto and their respective permitted successors and assigns any
rights or remedies under or by reason of this Agreement.

     

    8.10.         Entire
Agreement.  This Agreement and the documents referred to
herein, together with all the Exhibits hereto, constitute the entire agreement
and understanding of the parties with respect to the subject matter of this
Agreement, and supersede any and all prior understandings and agreements,
whether oral or written, between or among the parties hereto with respect to the
specific subject matter hereof.

     

    8.11.         Further
Assurances.  The parties agree to execute such further
documents and instruments and to take such further actions as may be reasonably
necessary to carry out the purposes and intent of this Agreement.

     

    8.12.         Governing
Law.  This Agreement will be governed by and construed in
accordance with the laws of the State of New York, without giving effect to any
choice of law or conflict of law provision or rule that would cause the
application of the laws of any jurisdictions other than the State of New
York.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    ALL SUBSCRIBERS MUST
COMPLETE THIS PAGE

     

    IN WITNESS WHEREOF, the
undersigned has executed this Agreement on _________________, 2010.

     

    ___________________________  x   $_____ for each
Unit               = $                                                     
.

    Number of
Units Subscribed
For                                                              Aggregate
Purchase Price

     

    Manner in
which Title is to be held (Please Check One):

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	
                                            1.

                                          	 
      ______	 	
                                            Individual

                                          	
                                            7.

                                          	   
      ______	 	
                                            Trust/Estate/Pension
      or Profit Sharing

                                          
	 
      	 
      	 	 
      	 
      	 
      	 	
                                             

                                            Plan

                                            Date Opened:                              

                                          
	
                                            2.

                                          	 
      ______  	 	
                                            Joint
      Tenants with Right of

                                                  
                                              Survivorship

                                            

                                          	
                                            8.

                                          	   
      ______	 	
                                            As
      a Custodian for

                                            __________________________
      

                                          
	 	 	 	      
                                             

                                          	 
      	 
      	 	      
                                            Under
      the Uniform Gift to Minors Act

                                            of
      the State of

                                            __________________________

                                             

                                          
	
                                            3.

                                          	
                                               
      ______

                                             

                                          	 	
                                            Community
      Property

                                          	
                                            9.

                                          	   
      ______	 	
                                            Married
      with Separate Property

                                          
	
                                            4.

                                             

                                          	   
      ______	 	
                                            Tenants
      in Common

                                          	
                                            10.

                                          	   
      ______	 	
                                            Keogh

                                          
	
                                            5.

                                          	 	 	
                                            Corporation/Partnership/

                                          	
                                            11.

                                          	   
      ______	 	
                                            Tenants
      by the Entirety

                                          
	 	 	 	      
                                            Limited
      Liability Company

                                          	 	 	 	 
	 	 	 	 	 	 	 	 
	
                                            6.

                                          	   
      ______	 	
                                            IRA

                                          	 
      	 
      	 	 
      

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    IF
MORE THAN ONE SUBSCRIBER, EACH SUBSCRIBER MUST SIGN.

    

    INDIVIDUAL
SUBSCRIBERS MUST COMPLETE PAGE 15.

    

    SUBSCRIBERS
WHICH ARE ENTITIES MUST
COMPLETE PAGES 16-
17.

    

    ALL
SUBSCRIBERS MUST ALSO COMPLETE AND

    EXECUTE
THE INVESTOR QUESTIONNAIRE

    ATTACHED
AS EXHIBIT B.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            	
                                                    EXECUTION BY NATURAL PERSONS

                                                     

                                                  
	  
      
	
                                                    Exact
      Name in Which Title is to be Held

                                                  
	  
      	 	
                                                     

                                                      
      

                                                  
	
                                                    Name
      (Please Print)

                                                  	 	
                                                    Name
      of Additional Purchaser

                                                  
	  
      	 	
                                                     

                                                     
      

                                                  
	
                                                    Address:
      Number and Street

                                                  	 	
                                                    Address:
      Number and Street

                                                  
	 
      	 	
                                                     

                                                     
      

                                                  
	
                                                    City,
      State and Zip Code

                                                  	 	
                                                    City,
      State and Zip Code

                                                  
	 
      	 	
                                                     

                                                     
      

                                                  
	
                                                    Social
      Security Number

                                                  	 	
                                                    Social
      Security Number

                                                  
	 
      	 	
                                                     

                                                     
      

                                                  
	
                                                    Telephone
      Number

                                                  	 	
                                                    Telephone
      Number

                                                  
	 
      	 	
                                                     

                                                     
      

                                                  
	
                                                    Fax
      Number (if available)

                                                  	 	
                                                    Fax
      Number (if available)

                                                  
	 
      	 	
                                                     

                                                     
      

                                                  
	
                                                    E-Mail
      (if available)

                                                  	 	
                                                    E-Mail
      (if available)

                                                  
	 
      	 	
                                                     

                                                     
      

                                                  
	
                                                    (Signature)

                                                  	 	
                                                    (Signature
      of Additional
Purchaser)

                                                  

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    EXECUTION BY SUBSCRIBER
WHICH IS AN ENTITY

    (Corporation,
Partnership, LLC, Trust, Etc.)

    
      
        
          
            	  
      
	
                    Name
      of Entity (Please
Print)

                  

          

        

      

    

     

    Date of
Incorporation or Organization:                                                                                                                                  

     

    Federal
Taxpayer Identification Number:                                                                                                                                

     

    
      	_______________________________________________ 
      
	
              Office
      Address

               

            
	_______________________________________________ 
      
	
              City,
      State and Zip Code

               

            
	_______________________________________________ 
      
	
              Telephone
      Number

               

            
	_______________________________________________ 
      
	
              Fax
      Number (if available)

               

            
	_______________________________________________ 
      
	
              E-Mail
      (if available)

            

    

     

    Type of
entity (e.g., corporation, trust, limited partnership, general partnership IRA
Trust, Pension or Profit Sharing Plan or
Trust):_______________________________________________

     

    Date of
formation or incorporation:                                                                            

     

    Whether
the Subscriber was organized for the specific purpose of acquiring securities of
New Generation Biofuels Holdings, Inc.:

     

    Yes
______     No______

     

    Each
individual authorized to execute documents on behalf of the Subscriber in
connection with this investment:

     

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                Name:

                              	____________________________   
      	 	
                                Name:

                              	
                                ____________________________

                              
	 	 	 	 	 
	
                                Title:

                              	____________________________  
      	 	
                                Title:

                              	
                                ____________________________

                              

                      

                    

                  

                

              

            

          

        

      

    

     

    The
Subscribers state of formation or incorporation: _______

     

    The
business of the entity:                                                                                          

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    Certain
Subscribers must provide the following information:

     

    
      	
               
      

            	
              (A)

            	
              Corporations
      MUST provide the articles of incorporation, by-laws, good standing
      certificate and corporate resolution authorizing the purchase of shares
      and authorizing the person(s) signing the subscription documents to do
      so.  All the documents must be certified by the Secretary or
      Assistant Secretary of the corporation as being true and correct copies
      thereof and in full force and
effect.

            

    

     

    
      	
               
      

            	
              (B)

            	
              Partnerships
      MUST provide a copy of the partnership agreement showing the date of
      formation and giving evidence of the authority of the person(s) signing
      the subscription documents to do
so.

            

    

     

    
      	
               
      

            	
              (C)

            	
              Trusts
      MUST provide a copy of the trust agreement showing the date of formation
      and giving evidence of the authority of the person(s) signing the
      subscription documents to do so.

            

    

     

    
      	
               
      

            	
              (D)

            	
              Limited
      Liability Companies and similar organizations MUST provide their
      organizational document, operating agreement, good standing certificate
      and evidence of authorization for the purchase of shares the person(s)
      signing the subscription documents to do so.  All the documents
      must be certified by an appropriate officer of the organization as being
      true and correct copies thereof in full force and
  effect.

            

    

     

    
      
        
          	
                  By:

                	   
      
	 
      	
                  Name:

                
	 
      	
                  Title:

                

        

      

    

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    

    ACCEPTED_______________,
2010

    

    NEW
GENERATION BIOFUELS HOLDINGS, INC.

     

    
      
        
          	
                  By:

                	   
      
	 
      	
                  Name:

                
	 
      	
                  Title:

                

        

      

    

     

    Subscription
Agreement Company Signature Page

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    Exhibit
A

     

    FORM
OF WARRANT

     

    
      
         

      

      
        A-1

        
          

        

      

      
         

      

    

     

    Exhibit
B

     

    INVESTOR
QUESTIONNAIRE

     

    Instructions:
Check all boxes below which correctly describe you and return this Investor
Questionnaire to New Generation Biofuels Holdings, Inc., 5850 Waterloo Road,
Suite 140, Columbia, MD 21045, Attention: Cary J. Claiborne, Chief Executive
Officer.

     

    
      	
              o

            	
              You
      are

            

    

     

    (i) a
bank, as defined in Section 3(a)(2) of the Securities Act of 1933, as amended
(the “Securities
Act”),

     

    (ii) a
savings and loan association or other institution, as defined in Section
3(a)(5)(A) of the Securities Act, whether acting in an individual or fiduciary
capacity,

     

    (iii) a
broker or dealer registered pursuant to Section 15 of the Securities Exchange
Act of 1934, as amended (the “Exchange
Act”),

     

    (iv) an
insurance company as defined in Section 2(13) of the Securities Act, (v) an
investment company registered under the Investment Company Act of 1940, as
amended (the “Investment Company
Act”),

     

    (vi) a
business development company as defined in Section 2(a)(48) of the Investment
Company Act,

     

    (vii) a Small Business
Investment Company licensed by the U.S. Small Business Administration under
Section 301 (c) or (d) of the Small Business Investment Act of 1958, as
amended,

     

    (viii) a plan
established and maintained by a state, its political subdivisions, or an agency
or instrumentality of a state or its political subdivisions, for the benefit of
its employees and you have total assets in excess of $5,000,000, or

     

    (ix) an
employee benefit plan within the meaning of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”)
and

     

    (1) the
decision that you shall subscribe for and purchase Securities, is made by a plan
fiduciary, as defined in Section 3(2 1) of ERISA, which is either a bank,
savings and loan association, insurance company, or registered investment
adviser,

     

    (2) you
have total assets in excess of $5,000,000 and the decision that you shall
subscribe for and purchase the Securities is made solely by persons or entities
that are accredited investors, as defined in Rule 501 of Regulation D
promulgated under the Securities Act (“Regulation D”)
or

     

    (3) you
are a self-directed plan and the decision that you shall subscribe for and
purchase the Securities is made solely by persons or entities that are
accredited investors.

    
      
         

      

      
        B-1

        
          

        

      

      
         

      

    

     

    
      	
              o

            	
              You
      are a private business development company as defined in Section
      202(a)(22) of the Investment Advisers Act of 1940, as
    amended.

            

    

     

    
      	
              o

            	
              You
      are an organization described in Section 501(c)(3) of the Internal Revenue
      Code of 1986, as amended (the “Code”), a corporation, Massachusetts or
      similar business trust or a partnership, in each case not formed for the
      specific purpose of making an investment in the Securities and with total
      assets in excess of $5,000,000.

            

    

     

    
      
        	
                o

              	
                You
      are a director or executive officer of New Generation Biofuels Holdings
      Inc.

              

      

    

     

    
      	
              o

            	
              You
      are a natural person whose individual net worth, or joint net worth with
      your spouse, exceeds $1,000,000 at the time of your subscription for and
      purchase of the Securities.

            

    

     

    
      	
              o

            	
              You
      are a natural person who had an individual income in excess of $200,000 in
      each of the two most recent years or joint income with your spouse in
      excess of $300,000 in each of the two most recent years, and who has a
      reasonable expectation of reaching the same income level in the current
      year.

            

    

     

    
      	
              o

            	
              You
      are a trust, with total assets in excess of $5,000,000, not formed for the
      specific purpose of acquiring the Shares, whose subscription for and
      purchase of the Shares is directed by a sophisticated person as described
      in Rule 506(b)(2)(ii) of Regulation
D.

            

    

     

    
      
        	
                o

              	
                You
      are an entity in which all of the equity owners are persons or entities
      described in one of the preceding
paragraphs.

              

      

    

     

    The
undersigned hereby represents and warrants that all of its answers to this
Investor Questionnaire are true as of the date of its execution of the
Subscription Agreement pursuant to which it purchased Shares of the
Company.

     

    
      
        
          
            
              
                
                  
                    
                      	 	 	 
	
                              Name of Purchaser [please
      print]

                            	 	
                              Name of Co-Purchaser [please
      print]

                            
	
                                
      

                               

                            	 	  
      
	
                              Signature
      of Purchaser (Entities please

                            	 	
                              Signature
      of Co-Purchaser

                            
	
                              provide
      signature of Purchaser’s duly

                            	 	 
      
	
                              authorized
      signatory.)

                            	 	 
      
	
                                
      

                               

                            	 	 
      
	
                              Name
      of Signatory (Entities only)

                            	 	 
      
	
                               

                               

                            	 	 
      
	
                              Title
      of Signatory (Entities only)

                            	 	 
      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        B-2

        
          

        

      

      
         

      

    

    

    Exhibit
C

     

    OPTION
ELECTION FORM

     

    (to be
executed only after acceptance of initial subscription)

     

    To:

    NEW
GENERATION BIOFUELS HOLDINGS, INC.

    5850
Waterloo Road, Suite 140

    Columbia,
MD 21045

    Fax:
(443) 638-0277

    Attn:
Cary J. Claiborne, Chief Executive Officer

    Or such
other address/facsimile as notified by the Company to the
subscriber.

     

    (1) The
undersigned hereby elects to exercise the Option to purchase _______ shares of
Common Stock of the Company (the “Option Shares”) and
warrants (the “Warrants”, in the
form attached hereto as Exhibit A to the Subscription Agreement), to be sold in
units (the “Units”), with each
unit consisting of: (i) one share of Common Stock and (ii) a Warrant to purchase
one share of Common Stock at an exercise price of $0.90 per share, at the Unit
Price and on the other terms set forth in the Subscription Agreement between the
Subscriber and the Company (the “Subscription Agreement”) and the Company’s
Private Placement Memorandum, dated January 27, 2010. Capitalized terms used
herein and not otherwise defined shall have the respective meanings set forth in
the Subscription Agreement.

    

    (2) The
undersigned tenders herewith payment of the purchase price in full, payment of
which shall be made by wire transfer in immediately available funds to the
following account:

    

    Wachovia
Bank

    ABA#:
___________

    FBO:
New Generation Biofuels Holdings, Inc.

    Acct#:
______________

    

    (3)
Please issue a certificate or certificates representing said Option Shares and
the Warrant in the name of the undersigned or in such other name as is specified
below:

     

    
      	
              _______________________________

            

    

     

    The
Option Shares and the Warrant shall be delivered to the following:

     

    
      	
              _______________________________

            
	
               

              _______________________________

               

            
	
              _______________________________

            

    

     

    (4) The
undersigned hereby represents and warrants that each of the representations and
warranties of the undersigned set forth in Section 4 of the Subscription
Agreement entered into between the Company and the undersigned is true and
correct as of the date hereof and is incorporated herein by reference as if set
forth fully herein, and the undersigned further acknowledges and agrees that the
provisions of Sections 5, 6 and 8 of the Subscription Agreement shall apply to
the transactions contemplated hereunder.

    
      
         

      

      
        C-1

        
          

        

      

      
         

      

    

     

    IN
WITNESS HEREOF, the undersigned hereby executes this Option Election Form as of
the date specified below.

     

    
      
        
          
            
              
                
                  	
                          Name of Investing Entity:

                        	 
      	 
      
	 
      	 
      	 
      
	 
      	
                          By:

                        	  
      
	 
      	 
      	
                          Name:

                        
	 
      	 
      	
                          Title:

                        
	 
      	 
      	 
      
	 
      	
                          Date:

                        	  
      

                

              

            

          

        

      

    

     

    
      
         

      

      
        C-2Unassociated Document

     

    REGISTRATION
RIGHTS AGREEMENT

     

    REGISTRATION RIGHTS AGREEMENT
(this “Agreement”), made as
of February ___, 2010 (the “Effective Date”), by
and between New Generation Biofuels Holdings, Inc., a Florida corporation (the
“Company”), and
each of the persons and entities listed on Exhibit A attached
hereto (the “Holders”).

     

    RECITALS

     

    WHEREAS, simultaneously with
the execution and delivery of this Agreement, the Holders have agreed to
purchase, pursuant to a Subscription Agreement between the Company and each
Holder (the “Subscription
Agreement”), up to 3,000,000 shares (the “Shares”) of common
stock of the Company, $0.001 par value per share (the “Common Stock”) and
each Holder has been granted the option (the “Option”) to purchase
additional shares of Common Stock during a specified exercise period (the “Option Shares”), all
as described more fully in the Subscription Agreement; and

     

    WHEREAS, the Subscription
Agreement requires the Company to grant registration rights with respect to the
Shares and the Option Shares as set forth herein.

     

    AGREEMENT

     

    NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

     

    1.           Definitions.   As used in this
Agreement, the following capitalized terms have the following respective
meanings:

     

    “Business Day” means a
day other than a Saturday or Sunday or any day on which banking institutions in
New York City, New York are authorized or obligated by law or executive order to
close.

     

    “Common Stock” means
the Common Stock of the Company, par value $.001 per share.

     

    “Exchange Act” means
the Securities Exchange Act of 1934, as amended, or any similar federal statute
then in effect, and a reference to a particular section thereof is deemed to
include a reference to the comparable section, if any, of any such similar
federal statute.

     

    “Majority of Holders”
means Holders holding more than 50% in aggregate principal amount of the
Registrable Securities outstanding at the time of any determination in
question.

     

    “Person” means any
individual, corporation, partnership, limited partnership, limited liability
company, syndicate, trust, association or other entity.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Prospectus” means the
prospectus included in any Shelf Registration Statement, as amended or
supplemented by any Prospectus supplement with respect to the terms of the
offering of any portion of the Registrable Securities covered by such Shelf
Registration Statement and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated
by reference in such Prospectus.

     

    “Registrable
Securities” means any Shares and Option Shares issued or issuable to a
Holder, and any shares of Common Stock that may be issued or distributed in
respect thereof by way of stock dividend or stock split or other distribution,
recapitalization or reclassification and any shares of Common Stock described in
Section 2(c) of
this Agreement. Any particular Registrable Securities that are issued will cease
to be Registrable Securities when (i) a registration statement with respect to
the sale by the Holder of such securities becomes effective under the Securities
Act and such securities have been disposed of in accordance with such
registration statement, (ii) such securities have been distributed to the public
pursuant to Rule 144 (or any successor provision) under the Securities Act,
(iii) all of the Registrable Securities then owned by such Holder could be sold
pursuant to Rule 144(b), or (iv) such securities have ceased to be outstanding.
For the avoidance of doubt, the Company is under no obligation to register the
Common Stock underlying any Warrants granted in connection with the Shares or
Option Shares.

     

    “Registration
Expenses” means any and all expenses incident to performance of or
compliance with this Agreement, including, without limitation, (i) all SEC and
stock exchange or National Association of Securities Dealers, Inc. (the “NASD”) registration
and filing fees (including, if applicable, the fees and expenses of any
“qualified independent underwriter,” as such term is defined in NASD conduct
rule 2720, and of its counsel), (ii) all fees and expenses of complying with
securities or blue sky laws (including fees and disbursements of counsel for the
underwriters in connection with blue sky qualifications of the Registrable
Securities), (iii) all printing, messenger and delivery expenses, (iv) all fees
and expenses incurred in connection with the listing of the Registrable
Securities on any securities exchange, (v) the fees and disbursements of counsel
for the Company and of its independent public accountants, including the
expenses of any special audits and/or “cold comfort” letters required by or
incident to such performance and compliance, and (vi) the reasonable fees and
disbursements of counsel selected pursuant to Section 4(b)
hereof.

     

    “Securities Act” means
the Securities Act of 1933, as amended, or any similar federal statute then in
effect, and a reference to a particular section thereof will be deemed to
include a reference to the comparable section, if any, of any such similar
federal statute.

     

    “SEC” means the
Securities and Exchange Commission or any other federal agency at the time
administering the Securities Act or the Exchange Act.

     

    “Selling Expenses”
means underwriting or brokerage discounts, fees and commissions and transfer
taxes, if any, applicable to the sale of Registrable Securities.

     

    “Underwritten
Offering” means an offering pursuant to the Shelf Registration Statement
in which Registrable Securities are sold to an underwriter for reoffering to the
public.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    2.           Shelf
Registration.

     

    (a)         The
Company shall:

     

    (i)           use
its best efforts to file, not later than 10 days after the Effective Date, or as
soon thereafter as practicable, a registration statement on an appropriate form
pursuant to Rule 415 (or any successor rule) under the Securities Act (together
with any amendments thereto, and including any documents incorporated by
reference therein if permitted by such form, the “Shelf Registration
Statement”), which Shelf Registration Statement shall provide for resales
of all Registrable Securities held by Holders that have provided the information
required pursuant to the terms of Section 2(b)
hereof;

     

    (ii)          use
its commercially reasonable efforts to cause the Shelf Registration Statement to
be declared effective by the SEC as promptly as is practicable after the date it
is first filed with the SEC, but in no event later than 180 days after the
Effective Date (the “Effectiveness Target
Date”); and

     

    (iii)         use
its commercially reasonable efforts to keep the Shelf Registration Statement
continuously effective, supplemented and amended as required by the provisions
of Section 3
hereof to the extent necessary to ensure that: (A) it is available for resales
by the Holders of Registrable Securities entitled to the benefit of this
Agreement and (B) conforms with the requirements of this Agreement and the
Securities Act, in each case, for a period (the “Effectiveness
Period”)
that will terminate when all Registrable Securities cease to be Registrable
Securities in accordance with this Agreement.

     

    (b)         To
have its Registrable Securities included in the Shelf Registration Statement
pursuant to this Agreement, each Holder shall complete the Selling Shareholder
Notice and Questionnaire, the form of which is contained in Exhibit B to this
Agreement (the “Questionnaire”).  Holders
that do not complete and deliver the Questionnaire will not be named as selling
shareholders in the Prospectus.  In addition, upon receipt of written
request for additional information from the Company, each Holder who intends to
be named as a selling shareholder in the Shelf Registration Statement shall
furnish to the Company in writing, within 3 Business Days after such Holder’s
receipt of such request, such additional information regarding such Holder and
the proposed distribution by such Holder of its Registrable Securities, in
connection with the Shelf Registration Statement or Prospectus or preliminary
Prospectus included therein and in any application to be filed with or under
state securities law, as the Company may reasonably request. Each Holder agrees
to furnish promptly to the Company all information required to be disclosed in
order to make any information previously furnished to the Company by such Holder
not materially misleading.

     

    (c)         The
Company shall be entitled to include in the Shelf Registration Statement other
shares of Common Stock (i) to be sold for its own account or (ii) which the
Company is obligated to register for resale by others, and such shares shall be
Registrable Securities for all purposes hereof.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (d)          Notwithstanding
anything contained herein to the contrary, the Company shall be entitled to
exclude from any Shelf Registration Statement such Registrable Securities as the
Company determines is reasonably necessary for the offering to qualify as a
secondary (rather than a primary) offering pursuant to Rule 415 under the
Securities Act in response to comments from the staff of the SEC.

     

    3.           Registration
Procedures.

     

    (a)          In
connection with the Shelf Registration Statement, the Company shall use its
reasonable best efforts to effect such registration to permit the sale of the
Registrable Securities being sold in accordance with the intended method or
methods of distribution thereof, and pursuant thereto, shall expeditiously
prepare and file with the SEC a Shelf Registration Statement relating to the
registration on any appropriate form under the Securities Act.

     

    (b)          In
connection with the Shelf Registration Statement and any Prospectus required by
this Agreement to permit the sale or resale of Registrable Securities, the
Company shall:

     

    (i)           Use
its best efforts to keep the Shelf Registration Statement continuously effective
during the Effectiveness Period; upon the occurrence of any event that would
cause the Shelf Registration Statement or the Prospectus contained therein (A)
to contain a material misstatement or omission or (B) not be effective and
usable for the resale of Registrable Securities during the Effectiveness Period,
the Company shall file promptly an appropriate amendment to the Shelf
Registration Statement, a supplement to the Prospectus or a report filed with
the SEC pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act, in
the case of clause (A), correcting any such misstatement or omission, and, in
the case of either clause (A) or (B), use its best efforts to cause any such
amendment to be declared effective and the Shelf Registration Statement and the
related Prospectus to become usable for their intended purposes as soon as
practicable thereafter. Notwithstanding anything to the contrary contained
herein, the Company may delay the filing or declaration of effectiveness, and/or
suspend the effectiveness, of the Shelf Registration Statement by written notice
to the Holders for a period (each such period, a “Suspension
Period”)
not to exceed an aggregate of 45 days in any 90-day period, and not to exceed an
aggregate of 180 days in any 360-day period, if:

     

    (x)          an
event occurs and is continuing as a result of which the Shelf Registration
Statement would, in the Company’s reasonable judgment, contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading;
and

     

    (y)          the
Company reasonably determines that the disclosure of such event at such time
would be seriously detrimental to the Company or its business;

     

    provided, that in the
event that the disclosure relates to a previously undisclosed proposed or
pending material business transaction, the disclosure of which would impede the
Company’s ability to consummate such transaction, the Company may extend a
Suspension Period from 45 days to 60 days during any 90-day
period.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (ii)          Notify
each selling Holder of the effectiveness of the Shelf Registration Statement and
prepare and file with the SEC such amendments and post-effective amendments to
the Shelf Registration Statement as may be necessary to keep the Shelf
Registration Statement continuously effective during the Effectiveness Period;
cause the Prospectus to be supplemented by any required prospectus supplement,
and as so supplemented to be filed pursuant to Rule 424 under the Securities
Act, and to comply fully with the applicable provisions of Rules 424 and 430A
under the Securities Act in a timely manner; and comply with the provisions of
the Securities Act with respect to the disposition of all securities covered by
the Shelf Registration Statement during the applicable period in accordance with
the intended method or methods of distribution by the sellers thereof set forth
in the Shelf Registration Statement or supplement to the
Prospectus.

     

    (iii)         Advise
the selling Holders (and the underwriter(s), if any):

     

    (A)           of
the issuance by the SEC of any stop order suspending the effectiveness of the
Shelf Registration Statement under the Securities Act or of the suspension by
any state securities commission of the qualification of the Registrable
Securities for offering or sale in any jurisdiction, or the initiation of any
proceeding for any of the preceding purposes, or

     

    (B)           of
the existence of any fact or the happening of any event, during the
Effectiveness Period, that makes any statement of a material fact made in the
Shelf Registration Statement, the Prospectus, any amendment or supplement
thereto, or any document incorporated by reference therein, untrue, or that
requires the making of any additions to or changes in the Shelf Registration
Statement or the Prospectus in order to make the statements therein not
misleading. Each Holder of Registrable Securities, by accepting the same, agrees
to hold any communication from the Company pursuant to this Section 3(b)(iii) in
confidence.

     

    If at any
time the SEC shall issue any stop order suspending the effectiveness of the
Shelf Registration Statement, or any state securities commission or other
regulatory authority shall issue an order suspending the qualification or
exemption from qualification of the Registrable Securities under state
securities or “blue sky” laws, the Company shall use its best efforts to obtain
the withdrawal or lifting of such order at the earliest possible time and will
provide to the each Holder who is named in the Shelf Registration Statement
prompt notice of the withdrawal of any such order.

     

    (iv)         Furnish
to each selling Holder (and to each underwriter(s), if any), and their
respective counsel, if any, before filing with the SEC, a copy of the Shelf
Registration Statement (including any amendments thereto) and copies of any
Prospectus (including any supplements thereto) included therein or any
amendments or supplements to the Shelf Registration Statement or Prospectus
(other than documents incorporated by reference after the initial filing of the
Shelf Registration Statement), which documents shall reflect such comments as
the Holders (and their counsel) may reasonably and timely propose.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (v)          Make
reasonably available for inspection by one or more representatives of the
selling Holders designated in writing by a Majority of Holders whose Registrable
Securities are included in the Shelf Registration Statement, any underwriter
participating in any distribution pursuant to the Shelf Registration Statement,
and any attorney or accountant retained by such selling Holders or any of the
underwriter(s), all relevant financial and other records, pertinent corporate
documents and properties of the Company, and cause the Company’s officers,
directors and employees to supply all information reasonably requested by any
such representative or representatives of the selling Holders, underwriter,
attorney or accountant in connection with the Shelf Registration Statement as
shall be reasonably necessary to enable them to exercise any applicable due
diligence responsibilities, provided, however, that any
information designated by the Company as confidential at the time of delivery of
such information shall be kept confidential by the recipient thereof; and provided, further, that in no
event shall the Company be required to furnish any material nonpublic
information pursuant to this subsection (v).

     

    (vi)         If
requested by any selling Holders or the underwriter(s), if any, promptly
incorporate in the Shelf Registration Statement or Prospectus, pursuant to a
supplement or post-effective amendment if necessary, such information as such
selling Holders and underwriter(s), if any, may reasonably request to have
included therein and to which the Company does not reasonably object, including,
without limitation: (A) information relating to the “Plan of Distribution” of
the Registrable Securities, (B) information with respect to the number of
Registrable Securities being sold, (C) the purchase price being paid therefor
and (D) any other terms of the offering of the Registrable Securities to be sold
in such offering; provided, however, that with
respect to any information requested for inclusion by a selling Holder, this
clause (vi) shall apply only to such information that relates to the Registrable
Securities to be sold by such selling Holder; and make all required filings of
such prospectus supplement or post-effective amendment as soon as reasonably
practicable after the Company is notified of the matters to be incorporated in
such prospectus supplement or post-effective amendment.

     

    (vii)     
  If an underwriting agreement is entered into in connection with the
registration, the Company shall:

     

    (A)        upon
reasonable request, furnish to each selling Holder and each underwriter, in such
substance and scope as are customarily made by issuers to underwriters in
primary underwritten offerings for selling security holders, upon the date of
closing of any sale of Registrable Securities in an Underwritten
Offering:

     

    (1)           opinions,
each dated the date of such closing, of counsel to the Company covering such of
the matters as are customarily covered in legal opinions to underwriters in
connection with underwritten offerings of securities; and

     

    (2)           customary
comfort letters, dated the date of such closing, from the Company’s independent
accountants, in the customary form and covering matters of the type customarily
covered in comfort letters to underwriters in connection with primary
underwritten offerings of securities;

     

    (B)         set
forth in full in the underwriting agreement, if any, indemnification provisions
and procedures which provide rights no less protective than those set forth in
Section 5
hereof with respect to all parties to be indemnified; and

     

    (C)         deliver
such other documents and certificates as may be reasonably requested by such
parties to evidence compliance with clause (A) above and with any customary
conditions contained in the underwriting agreement or other agreement entered
into by the selling Holders pursuant to this clause (vii).

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    (viii)       Before
any public offering of Registrable Securities, use its best efforts to register
or qualify the Registrable Securities under the securities or Blue Sky laws of
such jurisdictions in the United States as the selling Holders or
underwriter(s), if any, may reasonably request and do any and all other acts or
things necessary or advisable to enable the disposition in such jurisdictions of
the Registrable Securities covered by the Shelf Registration Statement; provided, however, that the
Company shall not be required (A) to register or qualify as a foreign
corporation or a dealer of securities where it is not now so qualified or to
take any action that would subject it to the service of process in any
jurisdiction where it is not now so subject or (B) to subject itself to taxation
in any such jurisdiction if it is not now so subject.

     

    (ix)         Cooperate
with the selling Holders and the underwriter(s), if any, to facilitate the
timely preparation and delivery of certificates representing Registrable
Securities to be sold and not bearing any restrictive legends (unless required
by applicable securities laws) and enable such Registrable Securities to be in
such denominations and registered in such names as the Holders or the
underwriter(s), if any, may request at least three Business Days before any sale
of Registrable Securities.

     

    (x)           Subject
to Section
3(b)(i) hereof, if any fact or event contemplated by Section 3(b)(iii)(B)
hereof shall exist or have occurred, use its reasonable best efforts to prepare
a supplement or post-effective amendment to the Shelf Registration Statement or
related Prospectus or any document incorporated therein by reference or file any
other required document so that, as thereafter delivered to the purchasers of
Registrable Securities, the Prospectus will not contain an untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances in
which they were made, not misleading.

     

    (xi)         Provide
a transfer agent and registrar for all such Registrable Securities not later
than the effective date of the Shelf Registration Statement.

     

    (xii)        Cooperate
and assist in any filings required to be made with the NASD and in the
performance of any due diligence investigation that is required to be retained
in accordance with the rules and regulations of the NASD.

     

    (xiii)        Otherwise
use its commercially reasonable efforts to comply with all applicable rules and
regulations of the SEC and all reporting requirements of the Exchange
Act.

     

    (xiv)       Enter
into such customary agreements (including underwriting agreements in customary
form) and take all such other lawful actions as a Majority of Holders or the
underwriters, if any, reasonably request in order to expedite or facilitate the
disposition of Registrable Securities (including effecting a stock split or
combination of shares).

     

    (xv)       
Cause all Registrable Securities covered by the Shelf Registration Statement to
be listed or quoted, as the case may be, on each securities exchange or
automated quotation system on which similar securities issued by the Company are
then listed or quoted.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    (c)          Each
Holder agrees that, upon receipt of any notice (a “Suspension
Notice”)
from the Company of the existence of any fact of the kind described in Section 4(b)(x) or
Section
4(b)(iii)(B) hereof, such Holder will, and will use its reasonable
efforts to cause any underwriter(s) in an Underwritten Offering to, forthwith
discontinue disposition of Registrable Securities pursuant to the Shelf
Registration Statement until:

     

    (i)           such
Holder has received copies of the supplemented or amended Prospectus
contemplated by Section 4(b)(xiii)
hereof; or

     

    (ii)           such
Holder is advised in writing by the Company that the use of the Prospectus may
be resumed, and has received copies of any additional or supplemental filings
that are incorporated by reference in the Prospectus.

     

    If so
directed by the Company, each Holder will deliver to the Company all copies,
other than permanent file copies then in such Holder’s possession, of the
Prospectus covering such Registrable Securities that was current at the time of
receipt of such notice of suspension.

     

    (d)          If
a Holder is identified in the Shelf Registration Statement as an “underwriter”
(any such Holder, an “Identified Holder”),
then at the request of such Identified Holder the Company shall furnish to such
Identified Holder, on the date of the effectiveness of the Shelf Registration
Statement and thereafter from time to time on such dates as such Identified
Holder may reasonably request, (i) a letter, dated such date, from the Company’s
independent certified public accountants in form and substance as is customarily
given by independent certified public accountants to underwriters in an
underwritten public offering, addressed to such Identified Holder, and (ii) an
opinion, dated as of such date, of counsel representing the Company for purposes
of the Shelf Registration Statement, in form, scope and substance as is
customarily given in an underwritten public offering, addressed to such
Identified Holder.

     

    4.           Registration
Expenses.

     

    (a)           The
Company shall pay all Registration Expenses incident to the Company’s
performance of or compliance with this Agreement. The Company shall bear its
internal expenses (including, without limitation, all salaries and expenses of
its officers and employees performing legal, accounting or other duties), the
expenses of any annual audit or quarterly review, the expense of any liability
insurance and the fees and expenses of any Person, including special experts,
retained by the Company.

     

    (b)           In
connection with the Shelf Registration Statement required by this Agreement,
including any amendment or supplement thereto, and any other documents delivered
to any Holders, the Company shall reimburse the Holders of Registrable
Securities being registered pursuant to the Shelf Registration Statement, as
applicable, for the reasonable fees and disbursements of not more than one
counsel (including local counsel), which shall be chosen by a Majority of
Holders for whose benefit the Shelf Registration Statement is being prepared.
The Company shall not be required to pay any underwriting discount, commission
or similar fee related to the sale of any securities.

     

    (c)           Each
Holder shall bear its Selling Expenses.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    5.           Indemnification and
Contribution.

     

    (a)           The
Company shall indemnify and hold harmless, to the fullest extent permitted by
law, each Holder, such Holder’s officers, directors, members, agents, partners
and employees and each person, if any, who controls such Holder within the
meaning of the Securities Act (each, an “Indemnified Holder”),
from and against any loss, claim, damage, liability or expense, joint or
several, or any action in respect thereof (including, but not limited to, any
loss, claim, damage, liability, expense, or action relating to resales of the
Registrable Securities), together with reasonable costs and expenses (including
reasonable attorney’s fees) to which such Indemnified Holder may become subject,
insofar as any such loss, claim, damage, liability, expense or action arises out
of, or is based upon:

     

    (i)         any
untrue statement or alleged untrue statement of a material fact contained in (A)
the Shelf Registration Statement or Prospectus or any amendment or supplement
thereto or (B) any blue sky application or other document or any amendment or
supplement thereto prepared or executed by the Company (or based upon written
information furnished by or on behalf of the Company expressly for use in such
blue sky application or other document or amendment on supplement) filed in any
jurisdiction specifically for the purpose of qualifying any or all of the
Registrable Securities under the securities law of any state or other
jurisdiction (such application or document being hereinafter called a “Blue Sky
Application”); or

     

    (ii) the
omission or alleged omission to state therein any material fact required to be
stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, and shall promptly
reimburse each Indemnified Holder promptly upon demand for any legal or other
expenses reasonably incurred by such Indemnified Holder in connection with
investigating or defending or preparing to defend against any such loss, claim,
damage, liability, expense or action as such expenses are incurred; provided, however, that the
Company shall not be liable in any such case to the extent that any such loss,
claim, damage, liability, expense or action arises out of, or is based upon, (A)
any untrue statement or alleged untrue statement or omission or alleged omission
made in the Shelf Registration Statement or Prospectus or amendment or
supplement thereto or Blue Sky Application or other document referred to in
Section 5(a)(i)
hereof in reliance upon and in conformity with written information furnished to
the Company by or on behalf of any Holder (or its related Indemnified Holder)
specifically for use therein or (B) the failure by the Holder or Indemnified
Holder to deliver to any purchaser of its Registrable Securities the Prospectus
and any supplement or amendment thereto after the Company has furnished such
Holder or Indemnified Holder with a sufficient number of copies of the same. The
foregoing indemnity agreement is in addition to any liability that the Company
may otherwise have to any Indemnified Holder.

     

    (b)           Each
Holder, severally and not jointly, shall indemnify and hold harmless, to the
fullest extent permitted by law, the Company, each other Holder, their
respective officers, directors, agents and employees and each person, if any,
who controls the Company or such other Holder within the meaning of the
Securities Act, from and against any loss, claim, damage, liability or expense,
joint or several, or any action in respect thereof, to which the Company, such
other Holder or any such officer, director, agent, employee or controlling
person may become subject, insofar as any such loss, claim, damage, liability,
expense or action arises out of, or is based upon:

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    (i)           any
untrue statement or alleged untrue statement of any material fact contained in
the Shelf Registration Statement or Prospectus or any amendment or supplement
thereto or any Blue Sky Application or other document referred to in Section 5(a)(i)
hereof; or

     

    (ii)           the
omission or the alleged omission to state therein any material fact required to
be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, but in each case only
to the extent that such untrue statement or alleged untrue statement or omission
or alleged omission was made in reliance upon and in conformity with written
information prepared and furnished to the Company by or on behalf of such Holder
(or its related Indemnified Holder) specifically for use therein, and shall
reimburse the Company and any such officer, employee or controlling person
promptly upon demand for any legal or other expenses reasonably incurred by the
Company or any such officer, employee or controlling person in connection with
investigating or defending or preparing to defend against any such loss, claim,
damage, liability, expense or action as such expenses are incurred, provided
that the obligation to indemnify will be individual, not joint and several, for
each Holder and shall be limited to the net amount of proceeds received by such
Holder from the sale of Registrable Securities pursuant to the Shelf
Registration Statement.

     

    (c)           Promptly
after receipt by an indemnified party under this Section 5 of notice
of any claim or the commencement of any action, the indemnified party shall, if
a claim in respect thereof is to be made against the indemnifying party under
this Section 5,
notify the indemnifying party in writing of the claim or the commencement of
that action; provided, however, that the
failure to notify the indemnifying party shall not relieve the indemnifying
party from any liability which it may have under this Section 5 except to
the extent the indemnifying party has been prejudiced by such failure. If any
such claim or action shall be brought against an indemnified party, and it shall
notify the indemnifying party thereof, the indemnifying party shall be entitled
to participate therein and, to the extent that it wishes, jointly with any other
similarly notified indemnifying party, to assume the defense thereof with
counsel satisfactory to the indemnified party. After notice from the
indemnifying party to the indemnified party of its election to assume the
defense of such claim or action, the indemnifying party shall not be liable to
the indemnified party under this Section 5 for any
legal or other expenses subsequently incurred by the indemnified party in
connection with the defense thereof other than reasonable costs of
investigation; provided, however, that a
Majority of Holders shall have the right to employ at the expense of such
Holders a single counsel to represent jointly the Holders and their respective
directors, officers, members, agents, partners, employees and controlling
persons who may be subject to liability arising out of any claim in respect of
which indemnity may be sought by Holders against the Company under this Section 5; and
provided, further, that if a Majority of Holders shall have reasonably concluded
that there may be one or more legal defenses available to them and their
respective officers, employees and controlling persons that are different from
or additional to those available to the Company and its officers, directors,
employees and controlling persons, then the fees and expenses of such single
separate counsel shall be paid for by the indemnifying party. No indemnifying
party shall:

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (i)           without
the prior written consent of the indemnified parties (which consent shall not be
unreasonably withheld or delayed) settle or compromise or consent to the entry
of any judgment with respect to any pending or threatened claim, action, suit or
proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified parties are actual or potential
parties to such claim or action) unless such settlement, compromise or consent
includes an unconditional release of each indemnified party from all liability
arising out of such claim, action, suit or proceeding, or

     

    (ii)          be
liable for any settlement of any such action effected without its written
consent (which consent shall not be unreasonably withheld or delayed), but if
settled with its written consent or if there be a final judgment for the
plaintiff in any such action, the indemnifying party agrees to indemnify and
hold harmless any indemnified party from and against any loss or liability by
reason of such settlement or judgment.

     

    (d)    
     If the indemnification provided for in this Section 5 shall for
any reason be unavailable or insufficient to hold harmless an indemnified party
under Section
5(a) or 5(b) in respect of
any loss, claim, damage, liability or expense (or action in respect thereof)
referred to therein, each indemnifying party shall, in lieu of indemnifying such
indemnified party, contribute to the amount paid or payable by such indemnified
party as a result of such loss, claim, damage or liability (or action in respect
thereof):

     

    (i)           in
such proportion as is appropriate to reflect the relative fault of the Company
on the one hand and the Holders on the other, or

     

    (ii)          if
the allocation provided by clause 5(d)(i) is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative fault referred to in clause 5(d)(i) but
also the relative benefits received by the Company from the offering and sale of
the Registrable Securities on the one hand and a Holder with respect to the sale
by such Holder of the Registrable Securities on the other in connection with the
statements or omissions or alleged statements or alleged omissions that resulted
in such loss, claim, damage or liability (or action in respect thereof), as well
as any other relevant equitable considerations.

     

    The
relative benefits received by the Company on the one hand and a Holder on the
other with respect to such offering and such sale shall be deemed to be in the
same proportion as the total net proceeds from the offering of the Registrable
Securities (before deducting expenses) received by the Company, on the one hand,
bear to the total proceeds received by such Holder (before deducting expenses)
with respect to its sale of Registrable Securities on the other. The relative
fault of the parties shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Company on the one hand or the Holders on the other, the intent
of the parties and their relative knowledge, access to information and
opportunity to correct or prevent such statement or omission.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    The
Company and each Holder agree that it would not be just and equitable if the
amount of contribution pursuant to this Section 5(d) were
determined by pro rata
allocation (even if the selling Holders were treated as one entity for
such purpose) or by any other method of allocation that does not take into
account the equitable considerations referred to in the first sentence of this
paragraph (d). The amount paid or payable by an indemnified party as a result of
the loss, claim, damage, liability or expense, or action in respect thereof,
referred to above in this Section 5 shall be
deemed to include, for purposes of this Section 5 and subject
to the limitations set forth above, any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending
or preparing to defend any such action or claim.

     

    Notwithstanding
the provisions of this Section 5, no Holder
shall be required to contribute any amount in excess of the amount by which net
proceeds received by such Holder from the sale of Registrable Securities covered
by the Shelf Registration Statement exceeds the amount of any damages which such
Holder has otherwise been required to pay by reason of any untrue or alleged
untrue statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The Holders’ obligations to contribute as provided
in this Section 5(d)
are several and not joint.

     

    6.           Participation in
Underwritten Offerings.

     

    No Holder may participate in any
Underwritten Offering hereunder unless such Holder:

     

    (a)           agrees
to sell such Holder’s Registrable Securities on the basis provided in any
underwriting arrangements approved by the Persons entitled hereunder to approve
such arrangements; and

     

    (b)           completes
and executes all reasonable and customary questionnaires, powers of attorney,
custody agreements, indemnities, underwriting agreements, lock-up letters and
other documents required under the terms of such underwriting arrangements,
provided that no Holder shall be required to make any representations or
warranties to the Company or the underwriters (other than representations and
warranties regarding such Holder and such Holder’s intended method of
distribution) or to undertake any indemnification obligations to the Company or
the underwriters with respect thereto, except as otherwise provided in Section 5
hereof.

     

    7.           Selection of
Underwriters.

     

    The
Holders of Registrable Securities covered by the Shelf Registration Statement
who desire to do so may sell such Registrable Securities in an Underwritten
Offering. In any such Underwritten Offering, the investment banking firm or
firms and manager or managers that will administer the offering will be selected
by a Majority of Holders whose Registrable Securities are included in such
offering; provided, that such
investment banking firms must be reasonably satisfactory to the
Company.

     

    8.           Miscellaneous.

     

    (a)          Amendments and
Waivers. This Agreement may not be amended, modified or supplemented, and
waivers or consents to or departures from the provisions hereof may not be
given, unless the Company has obtained the written consent of a Majority of
Holders.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    (b)          Notices. All notices
and other communications provided for or permitted hereunder shall be made in
writing by hand-delivery, first-class mail (registered or certified, return
receipt requested), telex, telecopier, or air courier guaranteeing overnight
delivery:

     

    (i)           if
to a Holder, at the address set forth on the records Company of or the transfer
agent of the Registrable Securities, as the case may be; and

     

    
      
        	 	
                (ii)

              	
                if
      to the Company:        
      New
      Generation Biofuels Holdings,
Inc.

              

      

    

    
      	
               
      

            	
              5850
      Waterloo Road, Suite 140

            

    

    
      	
               
      

            	
              Columbia,
      Maryland 21045

            

    

    Phone:
(410) 480-8084

    Fax:
(443) 638-0277

    Attn:
Cary J. Claiborne

    

    All such
notices and communications shall be deemed to have been duly given at: the time
delivered by hand, if personally delivered; five Business Days after being
deposited in the mail, postage prepaid, if mailed; when answered back, if
telexed; when receipt acknowledged, if transmitted by facsimile; and on the next
Business Day, if timely delivered to an air courier guaranteeing overnight
delivery.

     

    (d)           Successors and
Assigns. This Agreement shall inure to the benefit of and be binding upon
the successors and assigns of each of the parties, including without limitation
subsequent Holders of Registrable Securities; provided, however, that (i)
this Agreement shall not inure to the benefit of or be binding upon a successor
or assign of a Holder unless and to the extent such successor or assign acquired
Registrable Securities from such Holder and agreed in writing to be bound by the
terms of this Agreement and (ii) nothing contained herein shall be deemed to
permit any assignment, transfer or other disposition of Registrable Securities
in violation of any Subscription Agreement or other agreement with the Company
which restricts the sale or disposition of Registrable Securities. If any
transferee of any Holder shall acquire Registrable Securities, in any manner,
whether by operation of law or otherwise, such Registrable Securities shall be
held subject to all of the terms of this Agreement, and by taking and holding
such Registrable Securities such person shall be conclusively deemed to have
agreed to be bound by and to perform all of the terms and provisions of this
Agreement.

     

    (e)           Counterparts. This
Agreement may be executed in any number of counterparts and by the parties
hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the
same agreement.

     

    (f)       
    Headings. The
headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning hereof.

     

    (g)           Governing Law. This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York without regard to its principles of conflict of laws that
would cause the laws of another jurisdiction to apply.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    (h)           Severability. If any
one or more of the provisions contained herein, or the application thereof in
any circumstance, is held invalid, illegal or unenforceable, the validity,
legality and enforceability of any such provision in every other respect and of
the remaining provisions contained herein shall not be affected or impaired
thereby.

     

    (i)           Entire Agreement.
This Agreement is intended by the parties as a final expression of their
agreement and intended to be a complete and exclusive statement of the agreement
and understanding of the parties hereto in respect of the subject matter
contained herein. There are no restrictions, promises, warranties or
undertakings, other than those set forth or referred to herein, with respect to
the registration rights granted by the Company with respect to the Registrable
Securities. This Agreement supersedes all prior agreements and understandings
between the parties with respect to such subject matter.

     

    [THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

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

     

    
      
        
          
            
              	
                      NEW
      GENERATION BIOFUELS HOLDINGS, INC.

                    
	 
      	 
      
	
                      By:

                    	 
       
	
                      Name:

                    	  
      
	
                      Title:

                    	  
      

            

          

        

      

    

    

    [Holder
Signature Page Follows]

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    The
foregoing Agreement is hereby confirmed and accepted as of the date first
written above.

     

    
      
        
          
            
              
                
                  
                    
                      	  
      
	
                              Name
      of Holder

                            
	 
      	 
      
	
                              By:

                            	 
      
	
                              Name:

                            	 
      
	
                              Title:

                            	 
      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
A

    

    HOLDERS

     

    [Names of
each Holder shall be inserted upon the Closing]

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
B

     

    NOTICE AND
QUESTIONNAIRE

     

    (TIME
SENSITIVE MATERIAL)

     

    THIS
NOTICE AND QUESTIONNAIRE MUST BE RETURNED TO NEW GENERATION BIOFUELS HOLDINGS,
INC. (AT THE ADDRESS LISTED BELOW) ON OR BEFORE THE 15TH BUSINESS DAY FOLLOWING
DELIVERY OF THE NOTICE AND QUESTIONNAIRE BY NEW GENERATION BIOFUELS HOLDINGS,
INC. TO THE REGISTERED HOLDER.

     

    Capitalized
terms used but not defined herein shall have the respective meanings set forth
in the Registration Rights Agreement, dated as of February ___, 2010 (the “Registration Rights
Agreement”), between the Company and Holders named therein.

     

    Form of Selling
Securityholder Notice and Questionnaire

     

    The
undersigned Holder of the Registrable Securities of the Company understands that
the Company has filed, or intends to file, with the SEC a Shelf Registration
Statement for the registration and resale under Rule 415 of the Securities Act,
Registrable Securities in accordance with the terms of the Registration Rights
Agreement. A copy of the Registration Rights Agreement is available from the
Company upon request at the address set forth below.

     

    Each
beneficial owner of Registrable Securities that has agreed in writing to be
bound by the Registration Rights Agreement is entitled to the benefits of the
Registration Rights Agreement. In order to sell or otherwise dispose of any
Registrable Securities pursuant to the Shelf Registration Statement, a
beneficial owner of Registrable Securities generally will be required to be
named as a selling securityholder in the related Prospectus, deliver a
Prospectus either to purchasers of Registrable Securities or, if relying on Rule
172 of the Securities Act, confirm that a current prospectus is deemed delivered
in connection with the sale of Registrable Securities, and be bound by those
provisions of the Registration Rights Agreement applicable to such beneficial
owner (including certain indemnification provisions, as described below).
Beneficial owners are encouraged to complete and deliver this Notice and
Questionnaire prior to the effectiveness of the Shelf Registration Statement so
that such beneficial owners may be named as selling securityholders in the
related prospectus.

     

    Certain
legal consequences arise from being named as a selling securityholder in the
Shelf Registration Statement and the related Prospectus. Accordingly, holders
and beneficial owners of Registrable Securities are advised to consult their own
securities law counsel regarding the consequences of being named or not being
named as a selling securityholder in the Shelf Registration Statement and the
related Prospectus.

    
      
         

      

      
        B-1

        
          

        

      

      
         

      

    

     

    NOTICE

     

    The
undersigned Holder (the “Selling
Securityholder”) of Registrable
Securities hereby gives notice to the Company of its intention to sell or
otherwise dispose of Registrable Securities beneficially owned by it and listed
below in Item 3 (unless otherwise specified under Item 3) pursuant to the Shelf
Registration Statement. The undersigned, by signing and returning this Notice
and Questionnaire, understands that it will be bound by the terms and conditions
of this Notice and Questionnaire and the Registration Rights
Agreement.

     

    Pursuant
to Section 5(b) of the Registration Rights Agreement, the undersigned has agreed
to indemnify and hold harmless the Company and certain other persons, from and
against certain losses arising in connection with statements concerning the
undersigned made in the Shelf Registration Statement or the related Prospectus
in reliance upon the information provided in this Notice and
Questionnaire.

     

    The
undersigned hereby provides the following information to the Company and
represents and warrants that such information is accurate and
complete:

     

    QUESTIONNAIRE

     

    1.            Information
Regarding Selling Securityholder

     

    
      
        	
                 
      

              	
                (a)

              	
                Full
      legal name of Selling Securityholder:

              
	 	 	 
	 	 	 

      

    

     

    
      
        	
                 
      

              	
                (b)

              	
                Full
      legal name of registered holder (if not the same as (a) above) through
      which Registrable Securities listed in Item (3) below are
      held:

              
	 	 	 
	 	 	 

      

    

     

    
      
        	
                 
      

              	
                (c)

              	
                Full
      legal name of Natural Control Person (which means a natural person who
      directly or indirectly alone or with others has power to vote or dispose
      of the securities covered by the questionnaire):

              
	 	 	 
	 	 	 

      

    

     

    
      
        	
                 
      

              	
                (d)

              	
                Is
      the Selling Securityholder an SEC-reporting company? If the Selling
      Securityholder is not an SEC-reporting company, list below the individual
      or individuals who exercise the voting and/or dispositive powers with
      respect to the Securities:

              
	 	 	 
	 	 	 

      

    

     

    
      
        	
                 
      

              	
                (e)

              	
                Are
      you a broker-dealer registered pursuant to Section 15 of the Exchange
      Act?

              
	 	 	 
	 	 	 

      

    

     

     ̈
Yes.

    
      
         

      

      
        B-2

        
          

        

      

      
         

      

    

     

     ̈
No.

     

    Note: If yes, the SEC’s staff
has indicated that you should be identified as an underwriter in the Shelf
Registration Statement.

     

    
      	
               
      

            	
              (f)

            	
              If
      your response to Item 1(e) above is “no,” are you an “affiliate” of a
      broker-dealer registered pursuant to Section 15 of the Exchange
      Act?

            

    

     

     ̈
Yes.

     

     ̈
No.

     

    For
purposes of this Item 1(f), an “affiliate” of a registered broker-dealer shall
include any company that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with,
such broker-dealer, and does not include any individuals employed by such
broker-dealer or its affiliates.

     

    
      	
               
      

            	
              (g)

            	
              If
      you are an affiliate of a broker-dealer, do you certify that you bought
      the Registrable Securities to be resold, and at the time of the purchase
      of the Registrable Securities to be resold, you had no agreements or
      understandings, directly or indirectly, with any person to distribute the
      Registrable Securities?

            

    

     

     ̈
Yes.

     

     ̈
No.

     

    Note: If no, the SEC’s staff
has indicated that you should be identified as an underwriter in the Shelf
Registration Statement.

     

    
      	
               
      

            	
              (h)

            	
              Full
      legal name of person through which you hold the Registrable Securities –
      (i.e. name of your broker or the DTC participant, if applicable, through
      which your Registrable Securities are
held):

            

    

     

    Name of
broker:________________________________________________________________________

     

    DTC
No:______________________________________________________________________________

     

    Contact
person:_________________________________________________________________________

     

    Telephone
No. (including area
code):________________________________________________________

     

    E-mail
address:_________________________________________________________________________

     

    
      
        
        

      

      
        B-3

        
          

        

      

      
        
        

      

    

     

    2.         
Address
for Notices to Selling Securityholder

    

    Telephone:____________________________________________________________________________

     

    Fax:_________________________________________________________________________________

     

    Contact
Person:________________________________________________________________________

     

    Email
address:________________________________________________

     

    3.           Beneficial
Ownership of Registrable Securities

     

    Number of
shares of Registrable Securities of the Company beneficially owned:

     

    ____________________________________________________________________________________
 

    CUSIP
No(s). of such Registrable Securities beneficially owned:

     

    ____________________________________________________________________________________
 

    4.           Nature
of Beneficial Ownership

     

    
      	
               
      

            	
              (a)

            	
              Check
      if the Selling Securityholder set forth in your response to Item 1(a) is
      any of the below:

            

    

     

    (A) 
        A reporting company under the
Exchange Act. ̈

     

    
      	
               
      

            	
              (B)

            	
              A
      majority owned subsidiary of a reporting company under the Exchange
      Act. ̈

            

    

     

    
      	
               
      

            	
              (C)

            	
              A
      registered investment fund under the Investment Company Act of 1940.o

            

    

     

    
      
        	
                 
      

              	
                (b)

              	
                If
      the Selling Securityholder set forth in your response to Item 1(a) above
      is a limited partnership, state the names of the general partners of such
      limited partnership:

              
	 	 	 
	 	 	 

      

    

     

    
      
         

      

      
        B-4

        
          

        

      

      
         

      

    

     

    
      	
               

               
      

            	
              (A)

            	
              With
      respect to each general partner listed in Item 4(b) above who is not a
      natural person, and is not publicly-held, name each shareholder (or holder
      of partnership interests, if applicable) of such general partner. If any
      of these named shareholders are not natural persons or publicly-held
      entities, please provide the same information. This process should be
      repeated until you reach natural persons or a publicly-held
      entity.

            

    

    
      
        	
                  
      

              	  
	   
      	 
  

      

    

     

    
      	
               
      

            	
              (c)

            	
              Name
      your controlling shareholder(s) (the “Controlling Entity”). If the
      Controlling Entity is not a natural person and is not a publicly-held
      entity, name each shareholder of such Controlling Entity. If any of these
      named shareholders are not natural persons or publicly-held entities,
      please provide the same information. This process should be repeated until
      you reach natural persons or a publicly-held
  entity.

            

    

     

    
      
        	  	
                (A)

              	
                (i)          
      Full
      legal name of Controlling Entity(ies) or natural person(s) who have sole
      or shared voting or dispositive power over the Registrable
      Securities:

              

      

    

    
    

    
      
        	
                    

              	            
      
	 	 

      

    

    
      
      

    

     

    (ii)          Business
address (including street address) (or residence if no business address),
telephone number and facsimile number of such person(s):

     

    Address:                                                                                                                                                             

     

    Telephone
No.:                                                                                                                                                  

     

    Fax
No.:                                                                                                                               

     

    
      
        	
                 
      

              	
                (B)

              	
                (i)

              	
                Full
      legal name of Controlling Entity(ies):

              
	 	 	 	 

      

    

    
      
      

    

     

    (ii)          Business
address (including street address) (or residence if no business address),
telephone number and facsimile number of such person(s):

     

    Address:                                                                                                                                                             

     

    Telephone
No.:                                                                                                                                                  

     

    Fax
No.:                                                                                                                               

     

    (iii)         Name
of shareholders:

     

    
      
        
        

      

      
        B-5

        
          

        

      

      
        
        

      

    

     

    
      	
              5.

            	
              Beneficial
      Ownership of the Company’s Securities Owned by the Selling
      Securityholder

            

    

     

    Except as
set forth below in this Item (5), the undersigned is not the beneficial or
registered owner of any securities of the Company other than the Registrable
Securities listed above in Item (3) (“Other
Securities”).

     

    Type and
amount of Other Securities beneficially owned by the Selling
Securityholder:

    
      
        	
                 
      

              	 

      

    

     

    CUSIP
No(s). of such Other Securities beneficially owned:

     

    
      	
              6.

            	
              Relationship
      with the Company

            

    

     

    Except as
set forth below, neither the undersigned nor any of its affiliates, officers,
directors or principal equity holders (5% or more) has held any position or
office or has had any other material relationship with the Company (or its
predecessors or affiliates) during the past three years.

     

    State any
exceptions here:

    
      
        	
                 
      

              	 

      

    

     

    
      	
              7.

            	
              Plan
      of Distribution

            

    

     

    Except as
set forth below, the undersigned (including its donees or pledgees) intends to
distribute the Registrable Securities listed above in Item (3) pursuant to the
Shelf Registration Statement only as follows (if at all). Such Registrable
Securities may be sold from time to time directly by the undersigned or,
alternatively, through underwriters, broker-dealers or agents. If the
Registrable Securities are sold through underwriters or broker-dealers, the
Selling Securityholder will be responsible for underwriting discounts or
commissions or agent’s commissions. Such Registrable Securities may be sold in
one or more transactions at fixed prices, at prevailing market prices at the
time of sale, at varying prices determined at the time of sale, or at negotiated
prices. Such sales may be effected in transactions (which may involve crosses or
block transactions):

     

    
      	
               
      

            	
              (a)

            	
              on
      any national securities exchange or quotation service on which the
      Registrable Securities may be listed or quoted at the time of
      sale;

            

    

     

    
      	
               
      

            	
              (b)

            	
              in
      the over-the-counter market;

            

    

     

    
      	
               
      

            	
              (c)

            	
              in
      transactions otherwise than on such exchanges or services or in the
      over-the-counter market; or

            

    

     

    
      
        
        

      

      
        B-6

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (d)

            	
              through
      the writing of options.

            

    

     

    In
connection with sales of the Registrable Securities or otherwise, the
undersigned may enter into hedging transactions with broker-dealers, which may
in turn engage in short sales of the Registrable Securities and deliver
Registrable Securities to close out such short positions, or loan or pledge
Registrable Securities to broker-dealers that in turn may sell such
securities.

     

    State any
exceptions here:                                                                                                

     

      
        

      

    

     

    Note: In no event will such
method(s) of distribution take the form of an underwritten offering of the
Registrable Securities without the prior agreement of the Company.

     

    8.            Acknowledgments

     

    The
undersigned acknowledges that it understands its obligation to comply with the
provisions of the Exchange Act and the rules thereunder relating to stock
manipulation, particularly Regulation M thereunder (or any successor rules or
regulations), in connection with any offering of Registrable Securities pursuant
to the Shelf Registration Statement. The undersigned agrees that neither it nor
any person acting on its behalf will engage in any transaction in violation of
such provisions.

     

    The
Selling Securityholder hereby acknowledges its obligations under the
Registration Rights Agreement to indemnify and hold harmless certain persons as
set forth therein. Pursuant to the Registration Rights Agreement, the Company
has agreed under certain circumstances to indemnify the Selling Securityholders
against certain liabilities.

     

    In
accordance with the undersigned’s obligation under the Registration Rights
Agreement to provide such information as may be required by law for inclusion in
the Shelf Registration Statement, the undersigned agrees to promptly notify the
Company of any inaccuracies or changes in the information provided herein that
may occur subsequent to the date hereof at any time while the Shelf Registration
Statement remains effective. All notices hereunder and pursuant to the
Registration Rights Agreement shall be made in writing at the address set forth
below.

     

    By
signing below, the undersigned consents to the disclosure of the information
contained herein in its answers to items (1) through (7) above and the inclusion
of such information in the Shelf Registration Statement and the related
Prospectus. The undersigned understands that such information will be relied
upon by the Company in connection with the preparation or amendment of the Shelf
Registration Statement and the related Prospectus.

     

    
      
        
        

      

      
        B-7

        
          

        

      

      
        
        

      

    

     

    Once this
Notice and Questionnaire is executed by the undersigned and received by the
Company, the terms of this Notice and Questionnaire, and the representations and
warranties contained herein, shall be binding on, shall inure to the benefit of
and shall be enforceable by the respective successors, heirs, personal
representatives and assigns of the Company and the undersigned with respect to
the Registrable Securities beneficially owned by the undersigned and listed in
Item (3) above.

     

    This
Notice and Questionnaire shall be governed in all respects by the laws of the
State of New York.

    
      
         

      

      
        B-8

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
undersigned, by authority duly given, has caused this Notice and Questionnaire
to be executed and delivered either in person or by its duly authorized
agent.

     

    
      
        
          
            
              
                
                  
                    
                      
                        	Beneficial
      Owner
	 
	
                                By:

                              	 
      
	 
      	
                                Name:

                              	 
      
	 
      	
                                Title:

                              	 
      

                      

                    

                  

                

              

            

          

        

      

    

    Dated:                                           

    

    PLEASE RETURN THE COMPLETED AND
EXECUTED NOTICE AND QUESTIONNAIRE TO NEW GENERATION BIOFUELS HOLDINGS, INC. NOT
LATER THAN THE 3RD BUSINESS DAY AFTER THIS NOTICE AND QUESTIONNAIRE HAVE BEEN
DELIVERED TO THE REGISTERED HOLDER AT:

    

    New
Generation Biofuels Holdings, Inc.

    5850
Waterloo Road, Suite 140

    Columbia,
Maryland 21045

    Phone:
(410) 480-8084

    Fax:
(443) 638-0277

    Attn:
Cary J. Claiborne

    
      
         

      

      
        B-9

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