Document:

EXHIBIT
      4.1

    Biogold
      Fuels Corporation

    2008
      Equity Incentive Plan

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

       

      BIOGOLD
        FUELS CORPORATION

       

      2008
        EQUITY INCENTIVE PLAN

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      TABLE
        OF CONTENTS

       

      
        	 	 	
                Page

              
	 	 	 
	
                SECTION
                  1. PURPOSE.

              	
                1

              
	 	 
	
                SECTION
                  2. DEFINITIONS.

              	
                1

              
	 	 
	
                (a)

              	
                “Award”

              	
                1

              
	
                (b)

              	
                “Board
                  of Directors”

              	
                1

              
	
                (c)

              	
                “Change
                  in Control”

              	
                1

              
	
                (d)

              	
                “Code”

              	
                1

              
	
                (e)

              	
                “Committee”

              	
                1

              
	
                (f)

              	
                “Common-Law
                  Employee”

              	
                1

              
	
                (g)

              	
                “Company”

              	
                2

              
	
                (h)

              	
                “Employee”

              	
                2

              
	
                (i)

              	
                “Exchange
                  Act”

              	
                2

              
	
                (j)

              	
                “Exercise
                  Price”

              	
                2

              
	
                (k)

              	
                “Fair
                  Market Value”

              	
                2

              
	
                (l)

              	
                “Incentive
                  Stock Option” or “ISO”

              	
                2

              
	
                (m)

              	
                “Nonstatutory
                  Option” or “NSO”

              	
                2

              
	
                (n)

              	
                “Offeree”

              	
                2

              
	
                (o)

              	
                “Option”

              	
                3

              
	
                (p)

              	
                “Optionee”

              	
                3

              
	
                (q)

              	
                “Outside
                  Director”

              	
                3

              
	
                (r)

              	
                “Participant”

              	
                3

              
	
                (s)

              	
                “Plan”

              	
                3

              
	
                (t)

              	
                “Plan
                  Year”

              	
                3

              
	
                (u)

              	
                “Purchase
                  Price”

              	
                3

              
	
                (v)

              	
                “Restricted
                  Share”

              	
                3

              
	
                (w)

              	
                “Service”

              	
                3

              
	
                (x)

              	
                “Share”

              	
                3

              
	
                (y)

              	
                “Stock”

              	
                3

              
	
                (z)

              	
                “Stock
                  Award Agreement”

              	
                3

              
	
                (aa)

              	
                “Stock
                  Option Agreement”

              	
                3

              
	
                (bb)

              	
                “Stock
                  Purchase Agreement”

              	
                3

              
	
                (cc)

              	
                “Subsidiary”

              	
                3

              
	
                (dd)

              	
                “Total
                  and Permanent Disability”

              	
                3

              
	
                (ee)

              	
                “W-2
                  Payroll”

              	
                3

              
	 	 
	
                SECTION
                  3. ADMINISTRATION.

              	
                4

              
	 	 	 
	
                (a)

              	
                Committee
                  Membership

              	
                4

              
	
                (b)

              	
                Committee
                  Procedures

              	
                4

              
	
                (c)

              	
                Committee
                  Responsibilities

              	
                4

              
	
                (d)

              	
                Committee
                  Liability

              	
                4

              
	
                (e)

              	
                Financial
                  Reports

              	
                4

              
	 	 
	
                SECTION
                  4. ELIGIBILITY.

              	
                4

              
	 	 	 
	
                (a)

              	
                General
                  Rule

              	
                4

              
	
                (b)

              	
                Ten-Percent
                  Shareholders

              	
                4

              

      

       

      
        
          
          

        

        
          -
            i
            -

          
            

          

        

        
          
          

        

      

       

      
        	
                (c)

              	
                Attribution
                  Rules

              	
                5

              
	
                (d)

              	
                Outstanding
                  Stock

              	
                5

              
	 	 
	
                SECTION
                  5. STOCK SUBJECT TO PLAN.

              	
                5

              
	 	 	 
	
                (a)

              	
                Basic
                  Limitation

              	
                5

              
	
                (b)

              	
                Additional
                  Shares

              	
                5

              
	 	 
	
                SECTION
                  6. TERMS AND CONDITIONS OF AWARDS OR SALES.

              	
                5

              
	 	 	 
	
                (a)

              	
                Stock
                  Purchase Agreement

              	
                5

              
	
                (b)

              	
                Duration
                  of Offers

              	
                5

              
	
                (c)

              	
                Purchase
                  Price

              	
                5

              
	
                (d)

              	
                Payment
                  for Shares

              	
                6

              
	
                (e)

              	
                Exercise
                  of Awards on Termination of Service

              	
                6

              
	 	 
	
                SECTION
                  7. ADDITIONAL TERMS AND CONDITIONS OF RESTRICTED

              	
                6

              
	 	 	 
	
                (a)

              	
                Form
                  and Amount of Award

              	
                6

              
	
                (b)

              	
                Exercisability

              	
                6

              
	
                (c)

              	
                Effect
                  of Change in Control

              	
                7

              
	
                (d)

              	
                Voting
                  Rights

              	
                7

              
	 	 
	
                SECTION
                  8. TERMS AND CONDITIONS OF OPTIONS.

              	
                7

              
	 	 	 
	
                (a)

              	
                Stock
                  Option Agreement

              	
                7

              
	
                (b)

              	
                Number
                  of Shares

              	
                7

              
	
                (c)

              	
                Exercise
                  Price

              	
                7

              
	
                (d)

              	
                Exercisability

              	
                7

              
	
                (e)

              	
                Effect
                  of Change in Control

              	
                7

              
	
                (f)

              	
                Term

              	
                7

              
	
                (g)

              	
                Exercise
                  of Options on Termination of Service

              	
                7

              
	
                (h)

              	
                Payment
                  of Option Shares

              	
                8

              
	
                (i)

              	
                Modification,
                  Extension and Assumption of Options

              	
                8

              
	 	 
	
                SECTION
                  9. ADJUSTMENT OF SHARES.

              	
                8

              
	 	 	 
	
                (a)

              	
                General

              	
                8

              
	
                (b)

              	
                Reorganizations

              	
                9

              
	
                (c)

              	
                Reservation
                  of Rights

              	
                9

              
	 	 
	
                SECTION
                  10. WITHHOLDING TAXES.

              	
                9

              
	 	 	 
	
                (a)

              	
                General

              	
                9

              
	
                (b)

              	
                Share
                  Withholding

              	
                9

              
	
                (c)

              	
                Cashless
                  Exercise/Pledge

              	
                9

              
	
                (d)

              	
                Other
                  Forms of Payment

              	
                9

              
	 	 
	
                SECTION
                  11. ASSIGNMENT OR TRANSFER OF AWARDS.

              	
                9

              
	 	 	 
	
                (a)

              	
                General

              	
                9

              
	
                (b)

              	
                Trusts

              	
                9

              

      

       

      
        
          
          

        

        
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                SECTION
                  12. LEGAL REQUIREMENTS.

              	
                10

              
	 	 
	
                SECTION
                  13. NO EMPLOYMENT RIGHTS.

              	
                10

              
	 	 
	
                SECTION
                  14. DURATION AND AMENDMENTS.

              	
                10

              
	 	 	 
	
                (a)

              	
                Term
                  of the Plan

              	
                10

              
	
                (b)

              	
                Right
                  to Amend or Terminate the Plan

              	
                10

              
	
                (c)

              	
                Effect
                  of Amendment or Termination

              	
                10

              

      

      

      
        
          
          

        

        
          -
            iii
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      BIOGOLD
        FUELS CORPORATION

       

      2008
        EQUITY INCENTIVE PLAN

       

      SECTION
        1. PURPOSE.

       

      The
        purpose of the Biogold Fuels Corporation 2008 Equity Incentive Plan (the
“Plan”)
        is to offer selected employees, directors and consultants an opportunity
        to
        acquire a proprietary interest in the success of the Company, or to increase
        such interest, to encourage such selected persons to remain in the employ
        of the
        Company, and to attract new employees with outstanding qualifications. The
        Plan
        seeks to achieve this purpose by providing for Awards in the form of Restricted
        Shares and Options (which may constitute Incentive Stock Options or Nonstatutory
        Stock Options) as well as the direct award or sale of Shares of the Company’s
        Common Stock. Awards may be granted under this Plan in reliance upon federal
        and
        state securities law exemptions.

       

      SECTION
        2. DEFINITIONS.

       

      (a) “Award”
        shall
        mean any award of an Option, Restricted Share or other right under the
        Plan.

       

      (b) “Board
        of Directors”
        shall
        mean the Board of Directors of the Company, as constituted from time to
        time.

       

      (c) “Change
        in Control”
        shall
        mean:

       

      (i) The
        consummation of a merger, consolidation, sale of the Company’s stock, or other
        reorganization of the Company (other than a reincorporation of the Company),
        if
        after giving effect to such merger, consolidation or other reorganization
        of the
        Company, the stockholders of the Company immediately prior to such merger,
        consolidation or other reorganization do not represent a majority interest
        of
        the holders of voting securities (on a fully diluted basis) with the ordinary
        voting power to elect directors of the surviving or resulting entity after
        such
        merger, consolidation or other reorganization; or

       

      (ii) The
        sale
        of all or substantially all of the assets of the Company to a third party
        who is
        not an affiliate of the Company.

       

      (iii) The
        term
        Change in Control shall not include: (a) a transaction the sole purpose of
        which
        is to change the state of the Company’s incorporation, or (b) the Company’s
        initial public offering.

       

      (d) “Code”
        shall
        mean the Internal Revenue Code of 1986, as amended.

       

      (e) “Committee”
        shall
        mean the Compensation Committee of the Board of Directors or any other committee
        which is authorized by the Board of Directors to administer the Plan under
        Section 3.

       

      (f) “Common-Law
        Employee”
        shall
        mean an individual paid from W-2 Payroll of the Company or a Subsidiary.
        If,
        during any period, the Company (or Subsidiary, as applicable) has not treated
        an
        individual as a Common-Law Employee and, for that reason, has not paid such
        individual in a manner which results in the issuance of a Form W-2 and withheld
        taxes with respect to him or her, then that individual shall not be an eligible
        Employee for that period, even if any person, court of law or government
        agency
        determines, retroactively, that that individual is or was a Common-Law Employee
        during all or any portion of that period.

       

      
        
          
          

        

        
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      (g) “Company”
        shall
        mean Biogold Fuels Corporation, a Nevada corporation.

       

      (h) “Employee”
        shall
        mean (i) any individual who is a Common-Law Employee of the Company or of
        a
        Subsidiary,
        (ii)
        a member
        of the Board of Directors, including (without limitation) an Outside Director,
        or an affiliate of a member of the Board of Directors,
        (iii)
        a member
        of the board of directors of a Subsidiary, or
        (iv)
        an
        independent contractor who performs services for the Company or a Subsidiary.
        Service as a member of the Board of Directors, a member of the board of
        directors of a Subsidiary or an independent contractor shall be considered
        employment for all purposes of the Plan except the second sentence of Section
        4(a).

       

      (i) “Exchange
        Act”
        means
        the Securities and Exchange Act of 1934, as amended.

       

      (j) “Exercise
        Price”
        shall
        mean the amount for which one Share may be purchased upon exercise of an
        Option,
        as specified by the Committee in the applicable Stock Option
        Agreement.

       

      (k) “Fair
        Market Value”
        means
        the market price of Shares, determined by the Committee as follows:

       

      (i)  If
        the
        Shares were traded over-the-counter on the date in question but were not
        traded
        on the Nasdaq Stock Market or the Nasdaq National Market System, then the
        Fair
        Market Value shall be equal to the last trade price or the closing bid price
        for
        the stock as quoted on such date;

       

      (ii)  If
        the
        Shares were traded over-the-counter on the date in question and were traded
        on
        the Nasdaq Stock Market or the Nasdaq National Market System, then the Fair
        Market Value shall be equal to the last-transaction price quoted for such
        date
        by the Nasdaq Stock Market or the Nasdaq National Market;

       

      (iii)  If
        the
        Shares were traded on a stock exchange on the date in question, then the
        Fair
        Market Value shall be equal to the closing price reported by the applicable
        composite transactions report for such date; and

       

      (iv)  If
        none
        of the foregoing provisions is applicable, then the Fair Market Value shall
        be
        determined by the Committee in good faith on such basis as it deems
        appropriate.

       

      In
        all
        cases, the determination of Fair Market Value by the Committee shall be
        conclusive and binding on all persons.

       

      (l) “Incentive
        Stock Option” or “ISO”
        shall
        mean an employee incentive stock option described in Code section
        422(b).

       

      (m) “Nonstatutory
        Option” or “NSO”
        shall
        mean an employee stock option that is not an ISO.

       

      (n) “Offeree”
        shall
        mean an individual to whom the Committee has offered the right to acquire
        Shares
        under the Plan (other than upon exercise of an Option).

       

      
        
          
          

        

        
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      (o) “Option”
        shall
        mean an Incentive Stock Option or Nonstatutory Option granted under the Plan
        and
        entitling the holder to purchase Shares.

       

      (p) “Optionee”
        shall
        mean an individual or estate who holds an Option.

       

      (q) “Outside
        Director”
        shall
        mean a member of the Board who is not a Common-Law Employee of the Company
        or a
        Subsidiary.

       

      (r) “Participant”
        shall
        mean an individual or estate who holds an Award.

       

      (s) “Plan”
        shall
        mean this 2008 Equity Incentive Plan of Biogold Fuels Corporation.

       

      (t) “Plan
        Year”
shall
        mean any twelve (12) month period (or shorter period during the final year
        of
        this Plan) commencing November 15 during the term of this Plan.

       

      (u) “Purchase
        Price”
        shall
        mean the consideration for which one Share may be acquired under the Plan
        (other
        than upon exercise of an Option), as specified by the Committee.

       

      (v) “Restricted
        Share”
        shall
        mean a Share sold or granted to an eligible Employee which is nontransferable
        and subject to substantial risk of forfeiture until restrictions
        lapse.

       

      (w) “Service”
        shall
        mean service as an Employee.

       

      (x) “Share”
        shall
        mean one share of Stock, as adjusted in accordance with Section 9 (if
        applicable).

       

      (y) “Stock”
        shall
        mean the common stock of the Company.

       

      (z) “Stock
        Award Agreement”
        shall
        mean the agreement between the Company and the recipient of a Restricted
        Share
        which contains the terms, conditions and restrictions pertaining to such
        Restricted Share.

       

      (aa) “Stock
        Option Agreement”
        shall
        mean the agreement between the Company and an Optionee which contains the
        terms,
        conditions and restrictions pertaining to his or her Option.

       

      (bb) “Stock
        Purchase Agreement”
        shall
        mean the agreement between the Company and an Offeree who acquires Shares
        under
        the Plan which contains the terms, conditions and restrictions pertaining
        to the
        acquisition of such Shares.

       

      (cc) “Subsidiary”
        means
        any corporation (other than the Company) in an unbroken chain of corporations
        beginning with the Company, if each of the corporations other than the last
        corporation in the unbroken chain owns stock possessing 50% or more of the
        total
        combined voting power of all classes of stock in one of the other corporations
        in such chain. A corporation that attains the status of a Subsidiary on a
        date
        after the adoption of the Plan shall be considered a Subsidiary commencing
        as of
        such date.

       

      (dd) “Total
        and Permanent Disability”
        means
        that the Optionee is unable to engage in any substantial gainful activity
        by
        reason of any medically determinable physical or mental impairment.

       

      (ee) “W-2
        Payroll”
        means
        whatever mechanism or procedure that the Company or a Subsidiary utilizes
        to pay
        any individual which results in the issuance of Form W-2 to the individual.
“W-2
        Payroll” does not include any mechanism or procedure which results in the
        issuance of any form other than a Form W-2 to an individual, including, but
        not
        limited to, any Form 1099 which may be issued to an independent contractor,
        an
        agency employee or a consultant. Whether a mechanism or procedure qualifies
        as a
“W-2 Payroll” shall be determined in the absolute discretion of the Company (or
        Subsidiary, as applicable), and the Company or Subsidiary determination shall
        be
        conclusive and binding on all persons.

       

      
        
          
          

        

        
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      SECTION
        3. ADMINISTRATION.

       

      (a) Committee
        Membership.
        The
        Plan shall be administered by the Compensation Committee (the “Committee”)
        appointed by the Company’s Board of Directors and comprised of at least two (2)
        or more Directors (although Committee functions may be delegated to officers
        to
        the extent the awards relate to persons who are not subject to the reporting
        requirements of Section 16 of the Exchange Act). If no Committee has been
        appointed, the entire Board shall constitute the Committee.

       

      (b) Committee
        Procedures.
        The
        Board of Directors shall designate one (1) of the members of the Committee
        as
        chairperson. The Committee may hold meetings at such times and places as
        it
        shall determine. The acts of a majority of the Committee members present
        at
        meetings at which a quorum exists, or acts reduced to or approved in writing
        by
        all Committee members, shall be valid acts of the Committee.

       

      (c) Committee
        Responsibilities.
        The
        Committee has and may exercise such power and authority as may be necessary
        or
        appropriate for the Committee to carry out its functions as described in
        the
        Plan. The Committee has authority in its discretion to determine eligible
        Employees to whom, and the time or times at which, Awards may be granted
        and the
        number of Shares subject to each Award. Subject to the express provisions
        of the
        respective Award agreements (which need not be identical) and to make all
        other
        determinations necessary or advisable for Plan administration, the Committee
        has
        authority to prescribe, amend, and rescind rules and regulations relating
        to the
        Plan. All interpretations, determinations, and actions by the Committee will
        be
        final, conclusive, and binding upon all persons.

       

      (d) Committee
        Liability.
        No
        member of the Board or the Committee will be liable for any action or
        determination made in good faith by the Committee with respect to the Plan
        or
        any Award made under the Plan.

       

      (e) Financial
        Reports.
        To the
        extent required by applicable law, and not less often than annually, the
        Company
        shall furnish to Offerees, Optionees and Shareholders who have received Stock
        under the Plan its financial statements, including a balance sheet, regarding
        the Company’s financial condition and results of operations, unless such
        Offerees, Optionees or Shareholders have duties with the Company that assure
        them access to equivalent information. Such financial statements need not
        be
        audited.

       

      SECTION
        4. ELIGIBILITY.

       

      (a) General
        Rule.
        Only
        Employees shall be eligible for designation as Participants by the Committee.
        In
        addition, only individuals who are employed as Common-Law Employees by the
        Company or a Subsidiary shall be eligible for the grant of ISOs.

       

      (b) Ten-Percent
        Shareholders.
        An
        Employee who owns more than ten percent (10%) of the total combined voting
        power
        of all classes of outstanding stock of the Company or any of its Subsidiaries
        shall not be eligible for designation as an Offeree or Optionee unless (i)
        the
        Exercise Price for an ISO (and a NSO to the extent required by applicable
        law)
        is at least one hundred ten percent (110%) of the Fair Market Value of a
        Share
        on the date of grant, (ii) if required by applicable law, the Purchase Price
        of
        Shares is at least one hundred percent (100%) of the Fair Market Value of
        a
        Share on the date of grant, and (iii) in the case of an ISO, such ISO by
        its
        terms is not exercisable after the expiration of ten (10) years from the
        date of
        grant.

       

      
        
          
          

        

        
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      (c) Attribution
        Rules.
        For
        purposes of Subsection (b) above, in determining stock ownership, an Employee
        shall be deemed to own the stock owned, directly or indirectly, by or for
        his
        brothers, sisters, spouse, ancestors and lineal descendants. Stock owned,
        directly or indirectly, by or for a corporation, partnership, estate or trust
        shall be deemed to be owned proportionately by or for its shareholders, partners
        or beneficiaries. Stock with respect to which such Employee holds an Option
        shall not be counted.

       

      (d) Outstanding
        Stock.
        For
        purposes of Subsection (b) above, “outstanding stock” shall include all stock
        actually issued and outstanding immediately after the grant. “Outstanding Stock”
shall not include shares authorized for issuance under outstanding Options
        held
        by the Employee or by any other person.

       

      SECTION
        5. STOCK
        SUBJECT TO PLAN.

       

      (a) Basic
        Limitation.
        Shares
        offered under the Plan shall be authorized but unissued Shares. Subject to
        Sections 5(b) and 9 of the Plan, the aggregate number of Shares which may
        be
        issued or transferred as common stock pursuant to an Award under the Plan
        shall
        not exceed Ten Million (10,000,000) shares of Authorized Common Stock of
        the
        Company.

       

      In
        any
        event, the number of Shares which are subject to Awards or other rights
        outstanding at any time under the Plan shall not exceed the number of Shares
        which then remain available for issuance under the Plan. The Company, during
        the
        term of the Plan, shall at all times reserve and keep available sufficient
        Shares to satisfy the requirements of the Plan.

      

      (b) Additional
        Shares.
        In the
        event that any outstanding Option or other right for any reason expires or
        is
        canceled or otherwise terminated, the Shares allocable to the unexercised
        portion of such Option or other right shall again be available for the purposes
        of the Plan. If a Restricted Share is forfeited before any dividends have
        been
        paid with respect to such Restricted Share, then such Restricted Share shall
        again become available for award under the Plan.

       

      SECTION
        6. TERMS
        AND CONDITIONS OF AWARDS OR SALES.

       

      (a) Stock
        Purchase Agreement.
        Each
        award or sale of Shares under the Plan (other than upon exercise of an Option)
        shall be evidenced by a Stock Purchase Agreement between the Offeree and
        the
        Company. Such award or sale shall be subject to all applicable terms and
        conditions of the Plan and may be subject to any other terms and conditions
        which are not inconsistent with the Plan and which the Committee deems
        appropriate for inclusion in a Stock Purchase Agreement. The provisions of
        the
        various Stock Purchase Agreements entered into under the Plan need not be
        identical.

       

      (b) Duration
        of Offers.
        Any
        right to acquire Shares under the Plan (other than an Option) shall
        automatically expire if not exercised by the Offeree within thirty (30) days
        after the grant if such right was communicated to the Offeree by the
        Committee.

       

      (c) Purchase
        Price.
        Unless
        otherwise permitted by applicable law, the Purchase Price of Shares to be
        offered under the Plan shall not be less than eighty-five percent (85%) of
        the
        Fair Market Value of a Share on the date of grant (100% for 10% shareholders),
        except as otherwise provided in Section 4(b). Subject to the preceding sentence,
        the Purchase Price shall be determined by the Committee in its sole discretion.
        The Purchase Price shall be payable in a form described in Subsection (d)
        below.

       

      
        
          
          

        

        
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      (d) Payment
        for Shares.
        The
        entire Purchase Price of Shares issued under the Plan shall be payable in
        lawful
        money of the United States of America at the time when such Shares are
        purchased, except as provided below:

       

      (i) Surrender
        of Stock.
        To the
        extent that a Stock Option Agreement so provides, payment may be made all
        or in
        part with Shares which have already been owned by the Optionee or Optionee’s
        representative for any time period specified by the Committee and which are
        surrendered to the Company in good form for transfer. Such shares shall be
        valued at their Fair Market Value on the date when the new Shares are purchased
        under the Plan.

       

      (ii) Promissory
        Notes.
        To the
        extent that a Stock Option Agreement or Stock Purchase Agreement so provides,
        and as permitted by applicable law, payment may be made all or in part with
        a
        full recourse promissory note executed by the Optionee or Offeree. The interest
        rate and other terms and conditions of such note shall be determined by the
        Committee. The Committee may require that the Optionee or Offeree pledge
        his or
        her Shares to the Company for the purpose of securing the payment of such
        note.
        In no event shall the stock certificate(s) representing such Shares be released
        to the Optionee or Offeree until such note is paid in full.

       

      (iii) Cashless
        Exercise.
        To the
        extent that a Stock Option Agreement so provides and a public market for
        the
        Shares exists, payment may be made all or in part by delivery (on a form
        prescribed by the Committee) of an irrevocable direction to a securities
        broker
        to sell shares and to deliver all or part of the sale proceeds to the Company
        in
        payment of the aggregate Exercise Price.

       

      (iv) Other
        Forms of Payment.
        To the
        extent provided in the Stock Option Agreement, payment may be made in any
        other
        form that is consistent with applicable laws, regulations and
        rules.

       

      (e) Exercise
        of Awards on Termination of Service.
        Each
        Stock Award Agreement shall set forth the extent to which the recipient shall
        have the right to exercise the Award following termination of the recipient’s
        Service with the Company and its Subsidiaries. Such provisions shall be
        determined in the sole discretion of the Committee, need not be uniform among
        all the Awards issued pursuant to the Plan, and may reflect distinctions
        based
        on the reasons for termination of employment.

       

      SECTION
        7. ADDITIONAL
        TERMS AND CONDITIONS OF RESTRICTED
        SHARES. 

      

      (a) Form
        and Amount of Award.
        Each
        Stock Award Agreement shall specify the number of Shares that are subject
        to the
        Award. Restricted Shares may be awarded in combination with NSOs and such
        an
        Award may provide that the Restricted Shares will be forfeited in the event
        that
        the related NSOs are exercised.

      

      (b) Exercisability.
        Each
        Stock Award Agreement shall specify the conditions upon which Restricted
        Shares
        shall become vested, in full or in installments. To the extent required by
        applicable law, each Stock Award shall become exercisable no less rapidly
        than
        the rate of 20% per year for each of the first five (5) years from the date
        of
        grant. Subject to the preceding sentence, the exercisability of any Stock
        Award
        shall be determined by the Committee in its sole discretion.

       

      
        
          
          

        

        
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            6
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      (c) Effect
        of Change in Control.
        The
        Committee may determine at the time of making an Award or thereafter, that
        such
        Award shall become fully vested, in whole or in part, in the event that a
        Change
        in Control occurs with respect to the Company.

       

      (d) Voting
        Rights.
        Holders
        of Restricted Shares awarded under the Plan shall have the same voting, dividend
        and other rights as the Company’s other stockholders. A Stock Award Agreement,
        however, may require that the holders invested any cash dividends received
        in
        additional Restricted Shares. Such additional Restricted Shares shall be
        subject
        to the same conditions and restrictions as the Award with respect to which
        the
        dividends were paid. Such additional Restricted Shares shall not reduce the
        number of Shares available under Section 5.

       

      SECTION
        8. TERMS
        AND CONDITIONS OF OPTIONS.

       

      (a) Stock
        Option Agreement.
        Each
        grant of an Option under the Plan shall be evidenced by a Stock Option Agreement
        between the Optionee and the Company. Such Option shall be subject to all
        applicable terms and conditions of the Plan and may be subject to any other
        terms and conditions which are not inconsistent with the Plan and which the
        Committee deems appropriate for inclusion in a Stock Option Agreement. The
        provisions of the various Stock Option Agreements entered into under the
        Plan
        need not be identical.

       

      (b) Number
        of Shares.
        Each
        Stock Option Agreement shall specify the number of Shares that are subject
        to
        the Option and shall provide for the adjustment of such number in accordance
        with Section 9. The Stock Option Agreement shall also specify whether the
        Option
        is an ISO or a Nonstatutory Option.

       

      (c) Exercise
        Price.
        Each
        Stock Option Agreement shall specify the Exercise Price. The Exercise Price
        of
        an ISO shall not be less than one hundred percent (100%) of the Fair Market
        Value of a Share on the date of grant, except as otherwise provided in Section
        4(b). Except as otherwise provided in Section 4(b), the Exercise Price of
        a
        Nonstatutory Option is not subject to any minimum price and the exercise
        price
        does not have to be determined based on the Fair Market Value of a Share.
        Subject to the preceding two sentences, the Exercise Price under any Option
        shall be determined by the Committee in its sole discretion. The Exercise
        Price
        shall be payable in a form described in Subsection (h) below.

       

      (d) Exercisability.
        Each
        Stock Option Agreement shall specify the date when all or any installment
        of the
        Option is to become exercisable. To the extent required by applicable law,
        an
        Option shall become exercisable no less rapidly than the rate of twenty percent
        (20%) per year for each of the first five (5) years from the date of grant.
        Subject to the preceding sentence, the exercisability of any Option shall
        be
        determined by the Committee in its sole discretion.

       

      (e) Effect
        of Change in Control.
        The
        Committee may determine, at the time of granting an Option or thereafter,
        that
        such Option shall become fully exercisable as to all Shares subject to such
        Option in the event that a Change in Control occurs with respect to the
        Company.

       

      (f) Term.
        The
        Stock Option Agreement shall specify the term of the Option. The term shall
        not
        exceed ten (10) years from the date of grant. Subject to the preceding sentence,
        the Committee at its sole discretion shall determine when an Option is to
        expire.

       

      (g) Exercise
        of Options on Termination of Service.
        Each
        Option shall set forth the extent to which the Optionee shall have the right
        to
        exercise the Option following termination of the Optionee’s Service with the
        Company and its Subsidiaries. Such provisions shall be determined in the
        sole
        discretion of the Committee, need not be uniform among all Options issued
        pursuant to the Plan, and may reflect distinctions based on the reasons for
        termination of employment. Notwithstanding the foregoing, to the extent required
        by applicable law, each Option shall provide that the Optionee shall have
        the
        right to exercise the vested portion of any Option held at termination for
        at
        least sixty (60) days following termination of Service with the Company for
        any
        reason, and that the Optionee shall have the right to exercise the Option
        for at
        least six (6) months if the Optionee’s Service terminates due to death or
        Disability.

       

      
        
          
          

        

        
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            7
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      (h) Payment
        of Option Shares.
        The
        entire Exercise Price of Shares issued under the Plan shall be payable in
        lawful
        money of the United States of America at the time when such Shares are
        purchased, except as provided below:

       

      (i) Surrender
        of Stock.
        To the
        extent that a Stock Option Agreement so provides, payment may be made all
        or in
        part with Shares which have already been owned by the Optionee or Optionee’s
        representative for any time period specified by the Committee and which are
        surrendered to the Company in good form for transfer. Such shares shall be
        valued at their Fair Market Value on the date when the new Shares are purchased
        under the Plan.

       

      (ii) Promissory
        Notes.
        To the
        extent that a Stock Option Agreement or Stock Purchase Agreement so provides,
        and to the extent allowable to applicable law, payment may be made all or
        in
        part with a full recourse promissory note executed by the Optionee or Offeree.
        The interest rate and other terms and conditions of such note shall be
        determined by the Committee. The Committee may require that the Optionee
        or
        Offeree pledge his or her Shares to the Company for the purpose of securing
        the
        payment of such note. In no event shall the stock certificate(s) representing
        such Shares be released to the Optionee or Offeree until such note is paid
        in
        full.

       

      (iii) Cashless
        Exercise.
        To the
        extent that a Stock Option Agreement so provides and a public market for
        the
        Shares exists, payment may be made all or in part by delivery (on a form
        prescribed by the Committee) of an irrevocable direction to a securities
        broker
        to sell shares and to deliver all or part of the sale proceeds to the Company
        in
        payment of the aggregate Exercise Price.

       

      (iv) Other
        Forms of Payment.
        To the
        extent provided in the Stock Option Agreement, payment may be made in any
        other
        form that is consistent with applicable laws, regulations and
        rules.

       

      (i) Modification,
        Extension and Assumption of Options.
        Within
        the limitations of the Plan, the Committee may modify, extend or assume
        outstanding Options or may accept the cancellation of outstanding Options
        (whether granted by the Company or another issuer) in return for the grant
        of
        new Options for the same or a different number of Shares and at the same
        or a
        different Exercise Price or for other consideration.

       

      SECTION
        9. ADJUSTMENT
        OF SHARES.

       

      (a) General.
        In the
        event of a subdivision of the outstanding Stock, a declaration of a dividend
        payable in Shares, a combination or consolidation of the outstanding Stock
        into
        a lesser number of Shares, a recapitalization, a reclassification or a similar
        occurrence, the Committee shall make appropriate adjustments, subject to
        the
        limitations set forth in Section 9(c), in one or more of (i) the number of
        Shares available for future Awards under Section 5, (ii) the number of Shares
        covered by each outstanding Option or Purchase Agreement or (iii) the Exercise
        Price or Purchase Price under each outstanding Option or Stock Purchase
        Agreement.

       

      
        
          
          

        

        
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            8
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      (b) Reorganizations.
        In the
        event that the Company is a party to a merger or reorganization, outstanding
        Options shall be subject to the agreement of merger or reorganization, provided
        however, that the limitations set forth in Section 9(c) shall
        apply.

       

      (c) Reservation
        of Rights.
        Except
        as provided in this Section 9, an Optionee or an Offeree shall have no rights
        by
        reason of (i) any subdivision or consolidation of shares of stock of any
        class,
        (ii) the payment of any dividend or (iii) any other increase or decrease in
        the number of shares of stock of any class. Any issue by the Company of shares
        of stock of any class, or securities convertible into shares of stock of
        any
        class, shall not affect, and no adjustment by reason thereof shall be made
        with
        respect to, the number, Exercise Price or Purchase Agreement of Shares subject
        to an Option or Stock Purchase Agreement. The grant of an Award pursuant
        to the
        Plan shall not affect in any way the right or power of the Company to make
        adjustments, reclassifications, reorganizations or changes of its capital
        or
        business structure, to merge or consolidate or to dissolve, liquidate, sell
        or
        transfer all or any part of its business or assets.

       

      SECTION
        10. WITHHOLDING
        TAXES.

       

      (a) General.
        To the
        extent required by applicable federal, state, local or foreign law, a
        Participant or his or her successor shall make arrangements satisfactory
        to the
        Committee for the satisfaction of any withholding tax obligations that arise
        in
        connection with the Plan. The Company shall not be required to issue any
        Shares
        or make any cash payment under the Plan until such obligations are
        satisfied.

       

      (b) Share
        Withholding.
        The
        Committee may permit a Participant to satisfy all or part of his or her
        withholding or income tax obligations by having the Company withhold all
        or a
        portion of any Shares that otherwise would be issued to him or her or by
        surrendering all or a portion of any Shares that he or she previously acquired.
        Such Shares shall be valued at their Fair Market Value on the date when taxes
        otherwise would be withheld in cash. Any payment of taxes by assigning Shares
        to
        the Company may be subject to restrictions, including any restrictions required
        by rules of any federal or state regulatory body or other
        authority.

       

      (c) Cashless
        Exercise/Pledge.
        The
        Committee may provide that if Company Shares are publicly traded at the time
        of
        exercise, arrangements may be made to meet the Optionee’s withholding obligation
        by cashless exercise or pledge.

       

      (d) Other
        Forms of Payment.
        The
        Committee may permit such other means of tax withholding as it deems
        appropriate.

       

      SECTION
        11. ASSIGNMENT
        OR TRANSFER OF AWARDS.

       

      (a) General.
        An
        Award granted under the Plan shall not be anticipated, assigned, attached,
        garnished, optioned, transferred or made subject to any creditor’s process,
        whether voluntarily, involuntarily or by operation of law, except as approved
        by
        the Committee. Notwithstanding the foregoing, ISOs may not be transferable.
        Also
        notwithstanding the foregoing, Offerees and Optionees may not transfer their
        rights hereunder except by will, beneficiary designation or the laws of descent
        and distribution.

       

      (b) Trusts.
        Neither
        this Section 11 nor any other provision of the Plan shall preclude a Participant
        from transferring or assigning Restricted Shares to (a) the trustee of a
        trust
        that is revocable by such Participant alone, both at the time of the transfer
        or
        assignment and at all times thereafter prior to such Participant’s death, or (b)
        the trustee of any other trust to the extent approved by the Committee in
        writing. A transfer or assignment of Restricted Shares from such trustee
        to any
        other person than such Participant shall be permitted only to the extent
        approved in advance by the Committee in writing, and Restricted Shares held
        by
        such trustee shall be subject to all the conditions and restrictions set
        forth
        in the Plan and in the applicable Stock Award Agreement, as if such trustee
        were
        a party to such Agreement.

       

      
        
          
          

        

        
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      SECTION
        12. LEGAL
        REQUIREMENTS.

       

      Shares
        shall not be issued under the Plan unless the issuance and delivery of such
        Shares complies with (or is exempt from) all applicable requirements of law,
        including (without limitation) the Securities Act of 1933, as amended, the
        rules
        and regulations promulgated thereunder, state securities laws and regulations,
        and the regulations of any stock exchange on which the Company’s securities may
        then be listed.

       

      SECTION
        13. NO
        EMPLOYMENT RIGHTS.

       

      No
        provision of the Plan, nor any right or Option granted under the Plan, shall
        be
        construed to give any person any right to become, to be treated as, or to
        remain
        an Employee. The Company and its Subsidiaries reserve the right to terminate
        any
        person’s Service at any time and for any reason.

       

      SECTION
        14. DURATION
        AND AMENDMENTS.

       

      (a) Term
        of the Plan.
        The
        Plan, as set forth herein, shall become effective on the date of its adoption
        by
        the Board of Directors, subject to the approval of the Company’s shareholders.
        In the event that the shareholders fail to approve the Plan within twelve
        (12)
        months after its adoption by the Board of Directors, any grants already made
        shall be null and void, and no additional grants shall be made after such
        date.
        The Plan shall terminate automatically ten (10) years after its adoption
        by the
        Board of Directors and may be terminated on any earlier date pursuant to
        Subsection (b) below.

       

      (b) Right
        to Amend or Terminate the Plan.
        The
        Board of Directors may amend the Plan at any time and from time to time.
        Rights
        and obligations under any right or Option granted before amendment of the
        Plan
        shall not be materially altered, or impaired adversely, by such amendment,
        except with consent of the person to whom the right or Option was granted.
        An
        amendment of the Plan shall be subject to the approval of the Company’s
        shareholders only to the extent required by applicable laws, regulations
        or
        rules including the rules of any applicable exchange.

       

      (c) Effect
        of Amendment or Termination.
        No
        Shares shall be issued or sold under the Plan after the termination thereof,
        except upon exercise of an Option granted prior to such termination. The
        termination of the Plan, or any amendment thereof, shall not affect any Shares
        previously issued or any Option previously granted under the Plan.

       

      [END
        OF PLAN]

       

      
        
          
          

        

        
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      THE
        SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER
        THE
        SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE, AND MAY BE OFFERED
        AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO THE RELEVANT PROVISIONS
        OF
        FEDERAL AND STATE SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN OPINION
        OF
        COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION AND QUALIFICATION UNDER
        FEDERAL AND STATE SECURITIES LAWS IS NOT REQUIRED.

       

      BIOGOLD
        FUELS CORPORATION

      2008
        Equity Incentive Plan

       

      INCENTIVE
        STOCK OPTION AGREEMENT

       

      Biogold
        Fuels Corporation (the “Company”), hereby grants an Option to purchase shares of
        its common stock (“Shares”) to the Optionee named below. The terms and
        conditions of the Option are set forth in this cover sheet, in the attachment
        and in the Company’s 2008 Equity Incentive Plan (the “Plan”).

       

      Date
        of
        Grant:  ____________________

       

      Name
        of
        Optionee: ____________________

       

      Optionee’s
        Social Security Number: ____________________

       

      Number
        of
        Shares Covered by Option: ____________________

       

      Exercise
        Price per Share: $____________________

      [must
        be
        at least 100% fair market value on Date of Grant]

       

      Vesting
        Start Date: ____________________

       

      
        	o	
                Check
                  here if Optionee is a 10% owner (so that exercise price must be
                  110% of
                  fair market value).

              

      

       

      By
        signing this cover sheet, you agree to all of the terms and conditions described
        in the attached Agreement and in the Plan, a copy of which is also
        attached.

       

      Optionee:         
        _______________________

      (Signature)

       

      Company:         _______________________

      (Signature)

       

      Title:
        _______________________

       

      
        
          
          

        

        
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      THE
        SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER
        THE
        SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE, AND MAY BE OFFERED
        AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO THE RELEVANT PROVISIONS
        OF
        FEDERAL AND STATE SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN OPINION
        OF
        COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION AND QUALIFICATION UNDER
        FEDERAL AND STATE SECURITIES LAWS IS NOT REQUIRED.

       

      BIOGOLD
        FUELS CORPORATION

      2008
        Equity Incentive Plan

       

      INCENTIVE
        STOCK OPTION AGREEMENT

      

       

      
        	
                Incentive
                  Stock Option

              	
                This
                  Option is intended to be an incentive stock option under section
                  422 of
                  the Internal Revenue Code and will be interpreted
                  accordingly.

              
	 	 
	
                Vesting

              	
                No
                  Shares will vest until you have performed _________ (____) months
                  of
                  Service from the commencement of your employment with the Company.
                  Your
                  Option shall vest as to ________ of the Shares on the date _______
                  (____)
                  months from the Vesting Start Date as shown on the cover sheet.
                  Thereafter, Shares shall vest at the rate of _______ of the Shares
                  at the
                  end of each full month thereafter. After you have completed _________
                  (____) months of Service, the number of Shares which vest under
                  this
                  Option at the Exercise Price shall be equal to the product of the number
                  of full months of your continuous employment with the Company (“Service”)
                  (including any approved leaves of absence) from the Vesting Start
                  Date
                  times the number of Shares covered by this Option times ________.
                  The
                  resulting number of Shares will be rounded to the nearest whole
                  number. No
                  additional Shares will vest after your Service has terminated for
                  any
                  reason.

                 

                You
                  should note that you may exercise the Option prior to vesting.
                  In that
                  case, the Company has a right to repurchase the unvested shares
                  at the
                  original exercise price if you terminate employment before vesting
                  in all
                  shares you purchased. Also, if you exercise before vesting, you
                  should
                  consider making an 83(b) election. Please see the attached Tax
                  Summary.
                  The
                  83(b) election must be filed within thirty (30) days of the date
                  you
                  exercise.

              
	 	 
	
                Term

              	
                Your
                  Option will expire in any event at the close of business at Company
                  headquarters on the day before the tenth anniversary of the Date
                  of Grant,
                  as shown on the cover sheet. (It will expire earlier if your Service
                  terminates, as described below.)

              

      

       

      
        
          
          

        

        
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                Regular
                  Termination

              	
                If
                  your Service terminates for any reason except death, Disability
                  or for
                  “Cause,” your Option will expire at the close of business at Company
                  headquarters on the 30th day after your termination date. During
                  that
                  30-day period, you may exercise that portion of your Option that
                  was
                  vested on your termination date.

              
	 	 
	
                Death

              	
                If
                  you die while in Service with the Company, your Option will expire
                  at the
                  close of business at Company headquarters on the date six (6) months
                  after
                  the date of death. During that six-month period, your estate or
                  heirs may
                  exercise that portion of your Option that was vested on the date
                  of
                  death.

              
	 	 
	
                Disability

              	
                If
                  your Service terminates because of your Disability, your Option
                  will
                  expire at the close of business at Company headquarters on the
                  date six
                  (6) months after your termination date. (However, if your Disability
                  is
                  not expected to result in death or to last for a continuous period
                  of at
                  least twelve (12) months, your Option will be eligible for ISO
                  tax
                  treatment only if it is exercised within three (3) months following
                  the
                  termination of your Service.) During that six-month period, you
                  may
                  exercise that portion of your Option that was vested on the date
                  of your
                  Disability.

                 

                “Disability”
                  means that you are unable to engage in any substantial gainful
                  activity by
                  reason of any medically determinable physical or mental
                  impairment.

              
	 	 
	
                Leaves
                  of Absence

              	
                For
                  purposes of this Option, your Service does not terminate when you
                  go on a
                  bona
                  fide
                  leave of absence that was approved by the Company in writing, if
                  the terms
                  of the leave provide for continued service crediting, or when continued
                  service crediting is required by applicable law. However, your
                  Service
                  will be treated as terminating thirty (30) days after you went
                  on leave,
                  unless your right to return to active work is guaranteed by law
                  or by a
                  contract. Your Service terminates in any event when the approved
                  leave
                  ends unless you immediately return to active work. The Company
                  determines
                  which leaves count for this purpose, and when your Service terminates
                  for
                  all purposes under the Plan. The Company also determines the extent
                  to
                  which you may exercise the vested portion of your Option during
                  a leave of
                  absence.

              
	 	 
	
                Notice
                  of Exercise

              	
                When
                  you wish to exercise this Option, you must execute Exhibit
                  A
                  (and, if exercise is prior to vesting, you must also execute Exhibits
                  B and D).
                  Your exercise will be effective when it is received by the Company.
                  If
                  someone else wants to exercise this Option after your death, that
                  person
                  must prove to the Company’s satisfaction that he or she is entitled to do
                  so.

              
	 	 
	
                Form
                  of Payment

              	
                When
                  you submit Exhibit
                  A,
                  you must include payment of the Exercise Price for the Shares you
                  are
                  purchasing. Payment may be made in one (or a combination) of the
                  following
                  forms at the discretion of the
                  committee:

              

      

       

      
        
          
          

        

        
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            3 -

          
            

          

        

        
          
          

        

      

       

      
        	
                 

              	
                 

                · Your
                  personal check, a cashier’s check or a money order.

                 

                · Shares
                  which you have owned for six (6) months and which are surrendered
                  to the
                  Company. The value of the Shares, determined as of the effective
                  date of
                  the Option exercise, will be applied to the Exercise Price.

                 

                · To
                  the extent that a public market for the Shares exists as determined
                  by the
                  Company, by delivery (on a form prescribed by the Committee) of
                  an
                  irrevocable direction to a securities broker to sell Shares and
                  to deliver
                  all or part of the sale proceeds to the Company in payment of the
                  aggregate Exercise Price.

                 

                · Any
                  other form of legal consideration approved by the
                  Committee.

              
	 	 
	
                Withholding
                  Taxes

              	
                You
                  will not be allowed to exercise this Option unless you make acceptable
                  arrangements to pay any withholding or other taxes that may be
                  due as a
                  result of the Option exercise or the sale of Shares acquired upon
                  exercise
                  of this Option.

              
	 	 
	
                Restrictions
                  on Resale 

              	
                By
                  signing this Agreement, you agree not to exercise this Option or
                  sell any
                  Shares acquired upon exercise of this Option at a time when applicable
                  laws, regulations or Company or underwriter trading policies prohibit
                  exercise or sale. In particular, the Company shall have the right
                  to
                  designate one or more periods of time, each of which shall not
                  exceed one
                  hundred eighty (180) days in length, during which this Option shall
                  not be
                  exercisable if the Company determines (in its sole discretion)
                  that such
                  limitation on exercise could in any way facilitate a lessening
                  of any
                  restriction on transfer pursuant to the Securities Act or any state
                  securities laws with respect to any issuance of securities by the
                  Company,
                  facilitate the registration or qualification of any securities
                  by the
                  Company under the Securities Act or any state securities laws,
                  or
                  facilitate the perfection of any exemption from the registration
                  or
                  qualification requirements of the Securities Act or any applicable
                  state
                  securities laws for the issuance or transfer of any securities.
                  Such
                  limitation on exercise shall not alter the vesting schedule set
                  forth in
                  this Agreement other than to limit the periods during which this
                  Option
                  shall be exercisable.

                 

                Furthermore,
                  in respect of any underwritten public offering by the Company,
                  you agree
                  that you will not sell or otherwise transfer or dispose of any
                  Shares
                  covered by this Option during a reasonable and customary period
                  of time as
                  agreed to by the Company and the underwriters, not to exceed the
                  greater
                  of (a) one hundred eighty (180) days following the effective date
                  of the
                  registration statement of the Company filed under the Securities
                  Act in
                  respect of such offering and (b) such other period of time as agreed
                  to by
                  holders of a majority of the then outstanding Shares. By signing
                  this
                  Agreement you agree to execute and deliver such other agreements
                  as may be
                  reasonably requested by the Company or the underwriter which are
                  consistent with the foregoing or which are necessary to give further
                  effect thereto. The Company may impose stop-transfer instructions
                  with
                  respect to the Shares subject to the foregoing restriction until
                  the end
                  of such period.

              

      

       

      
        
          
          

        

        
          -
            4 -

          
            

          

        

        
          
          

        

      

       

      
        	 	
                If
                  the sale of Shares under the Plan is not registered under the
                  Securities Act of 1933, as amended (the “Securities Act”), but an
                  exemption is available which requires an investment or other
                  representation, you shall represent and agree at the time of exercise
                  that
                  the Shares being acquired upon exercise of this Option are being
                  acquired
                  for investment, and not with a view to the sale or distribution
                  thereof,
                  and shall make such other representations as are deemed necessary
                  or
                  appropriate by the Company and its counsel. 

              
	 	 
	
                The
                  Company’s Right of First Refusal

              	
                In
                  the event that you propose to sell, pledge or otherwise transfer
                  to a
                  third party any Shares acquired under this Agreement, or any interest
                  in
                  such Shares, the Company shall have the “Right of First Refusal” with
                  respect to all (and not less than all) of such Shares. If you desire
                  to
                  transfer Shares acquired under this Agreement, you must give a
                  written
                  “Transfer Notice” to the Company describing fully the proposed transfer,
                  including the number of Shares proposed to be transferred, the
                  proposed
                  transfer price and the name and address of the proposed transferee.
                  The
                  Transfer Notice shall be signed both by you and by the proposed
                  transferee
                  and must constitute a binding commitment of both parties to the
                  transfer
                  of the Shares.

                 

                The
                  Company and its assignees shall have the right to purchase all,
                  and not
                  less than all, of the Shares on the terms described in the Transfer
                  Notice
                  (subject, however, to any change in such terms permitted in the
                  next
                  paragraph) by delivery of a Notice of Exercise of the Right of
                  First
                  Refusal within thirty(30) days after the date when the Transfer
                  Notice was
                  received by the Company. The Company’s rights under this Subsection shall
                  be freely assignable, in whole or in part.

                 

                If
                  the Company fails to exercise its Right of First Refusal within
                  thirty
                  (30) days after the date when it received the Transfer Notice,
                  you may,
                  not later than sixty (60) days following receipt of the Transfer
                  Notice by
                  the Company, conclude a transfer of the Shares subject to the Transfer
                  Notice on the terms and conditions described in the Transfer Notice.
                  Any
                  proposed transfer on terms and conditions different from those
                  described
                  in the Transfer Notice, as well as any subsequent proposed transfer
                  by
                  you, shall again be subject to the Right of First Refusal and shall
                  require compliance with the procedure described in the paragraph
                  above. If
                  the Company exercises its Right of First Refusal, you and the Company
                  (or
                  its assignees) shall consummate the sale of the Shares on the terms
                  set
                  forth in the Transfer Notice.

                 

                The
                  Company’s Right of First Refusal shall inure to the benefit of its
                  successors and assigns and shall be binding upon any transferee
                  of the
                  Shares.

              

      

       

      
        
          
          

        

        
          -
            5 -

          
            

          

        

        
          
          

        

      

       

      
        	
                Right
                  of Repurchase

              	
                Following
                  termination of your Service for any reason, the Company shall have
                  the
                  right to purchase all of those vested Shares that you have or will
                  acquire
                  under this Option (unvested Shares which have been exercised are
                  subject
                  to a Repurchase Option set forth in Exhibit
                  A).
                  If the Company fails to provide you with written notice of its
                  intention
                  to purchase such Shares before or within thirty (30) days of the
                  date the
                  Company receives written notice from you of your termination of
                  Service,
                  the Company’s right to purchase such Shares shall terminate. If the
                  Company exercises its right to purchase such Shares, the Company
                  will
                  consummate the purchase of such Shares within sixty (60) days of
                  the date
                  of its written notice to you. The purchase price for any Shares
                  repurchased shall be the higher of the fair market value of the
                  Shares on
                  the date of purchase or the aggregate Exercise Price for such Shares
                  and
                  shall be paid in cash. The Company’s right of repurchase shall terminate
                  in the event that Stock is listed on an established stock exchange
                  or is
                  quoted regularly on the Nasdaq National Market. The fair market
                  value
                  shall be determined by the Board of Directors in its sole
                  discretion.

              
	 	 
	
                Transfer
                  of Option

              	
                Prior
                  to your death, only you may exercise this Option. You cannot transfer
                  or
                  assign this Option. For instance, you may not sell this Option
                  or use it
                  as security for a loan. If you attempt to do any of these things,
                  this
                  Option will immediately become invalid. You may, however, dispose
                  of this
                  Option in your will.

              
	 	 
	 	
                Regardless
                  of any marital property settlement agreement, the Company is not
                  obligated
                  to honor a Notice of Exercise from your spouse or former spouse,
                  nor is
                  the Company obligated to recognize such individual’s interest in your
                  Option in any other way.

              
	 	 
	
                Retention
                  Rights

              	
                This
                  Agreement does not give you the right to be retained by the Company
                  in any
                  capacity. The Company reserves the right to terminate your Service
                  at any
                  time and for any reason.

              
	 	 
	
                Shareholder
                  Rights

              	
                Neither
                  you, nor your estate or heirs, have any rights as a shareholder
                  of the
                  Company until a certificate for the Shares acquired upon exercise
                  of this
                  Option has been issued. No adjustments are made for dividends or
                  other
                  rights if the applicable record date occurs before your stock certificate
                  is issued, except as described in the Plan.

              
	 	 
	
                Adjustments

              	
                In
                  the event of a stock split, a stock dividend or a similar change
                  in the
                  Company’s Stock, the number of Shares covered by this Option and the
                  Exercise Price per share may be adjusted pursuant to the Plan.
                  Your Option
                  shall be subject to the terms of the agreement of merger, liquidation
                  or
                  reorganization in the event the Company is subject to such corporate
                  activity.

              
	 	 
	
                Legends

              	
                All
                  certificates representing the Shares issued upon exercise of this
                  Option
                  shall, where applicable, have endorsed thereon the following
                  legends:

                 

              

      

       

      
        
          
          

        

        
          -
            6 -

          
            

          

        

        
          
          

        

      

       

      
        	 	
                “THE
                  SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
                  RESTRICTIONS ON TRANSFER AND OPTIONS TO PURCHASE SUCH SHARES SET
                  FORTH IN
                  AN AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR
                  SUCH
                  HOLDER’S PREDECESSOR IN INTEREST. SUCH AGREEMENT IMPOSES CERTAIN TRANSFER
                  RESTRICTIONS AND GRANTS CERTAIN REPURCHASE RIGHTS TO THE COMPANY
                  (OR ITS
                  ASSIGNS) UPON THE SALE OF THE SHARES OR UPON TERMINATION OF SERVICE
                  WITH
                  THE COMPANY. A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL
                  OFFICE
                  OF THE COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST TO THE
                  SECRETARY
                  OF THE COMPANY BY THE HOLDER OF SHARES REPRESENTED BY THIS
                  CERTIFICATE.

              
	 	 
	 	
                THE
                  SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
                  UNDER
                  THE SECURITIES ACT OF 1933, OR THE SECURITIES LAWS OF ANY STATE,
                  AND MAY
                  BE OFFERED AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO
                  THE
                  RELEVANT PROVISIONS OF FEDERAL AND STATE SECURITIES LAWS OR IF
                  THE COMPANY
                  IS PROVIDED AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY
                  AND ITS
                  COUNSEL, THAT REGISTRATION AND QUALIFICATION UNDER FEDERAL AND
                  STATE
                  SECURITIES LAWS IS NOT REQUIRED.”

              
	 	 
	
                Applicable
                  Law

              	
                This
                  Agreement will be interpreted and enforced under the laws of the
                  State of
                  California (without regard to their choice of law
                  provisions).

              
	 	 
	
                The
                  Plan and Other Agreements

              	
                The
                  text of the Plan is incorporated in this Agreement by reference.
                  Certain
                  capitalized terms used in this Agreement are defined in the
                  Plan.

                 

                This
                  Agreement, including its attachments, and the Plan constitute the
                  entire
                  understanding between you and the Company regarding this Option.
                  Any prior
                  agreements, commitments or negotiations concerning this Option
                  are
                  superseded.

              

      

      

      By
        signing the cover sheet of this Agreement, you agree to all of the terms
        and
        conditions described above and in the Plan. You also acknowledge that you
        have
        read Section 11, “Purchaser’s Investment Representations” of Attachment A and
        that you can and hereby do make the same representations with respect to
        the
        grant of this Option.

       

      
        
          
          

        

        
          -
            7 -

          
            

          

        

        
          
          

      

      THE
        SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER
        THE
        SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE, AND MAY BE OFFERED
        AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO THE RELEVANT PROVISIONS
        OF
        FEDERAL AND STATE SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN OPINION
        OF
        COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION AND QUALIFICATION UNDER
        FEDERAL AND STATE SECURITIES LAWS IS NOT REQUIRED.

       

      BIOGOLD
        FUELS CORPORATION

      2008
        Equity Incentive Plan

       

      NONSTATUTORY
        STOCK OPTION AGREEMENT

       

      Biogold
        Fuels Corporation (the “Company”), hereby grants an Option to purchase shares of
        its common stock (“Shares”) to the Optionee named below. The terms and
        conditions of the Option are set forth in this cover sheet, in the attachment
        and in the Company’s Equity Incentive Plan (the “Plan”).

       

      Date
        of
        Grant: _______________________

       

      Name
        of
        Optionee: _______________________

       

      Optionee’s
        Social Security Number: _______________________

       

      Number
        of
        Shares Covered by Option: _______________________   

       

      Exercise
        Price per Share: $_______________________

       

      Vesting
        Start Date: _______________________

       

      o Check
        here if Optionee is a 10% owner (so that exercise price must be 100% of fair
        market value).

       

      By
        signing this cover sheet, you agree to all of the terms and conditions described
        in the attached Agreement and in the Plan, a copy of which is also
        attached.

       

      Optionee:       
         _______________________

      (Signature)

       

      Company:       
        _______________________

      (Signature)

       

      Title:
        _______________________

       

      
        
          
          

        

        
          -
            1
            -

          
            

          

        

        
          
          

        

      

       

      THE
        SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER
        THE
        SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE, AND MAY BE OFFERED
        AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO THE RELEVANT PROVISIONS
        OF
        FEDERAL AND STATE SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN OPINION
        OF
        COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION AND QUALIFICATION UNDER
        FEDERAL AND STATE SECURITIES LAWS IS NOT REQUIRED.

       

      BIOGOLD
        FUELS CORPORATION

      2008
        Equity Incentive Plan

       

      NONSTATUTORY
        STOCK OPTION AGREEMENT

       

      
        	
                Nonstatutory
                  Stock Option

              	
                This
                  Option is not intended to be an incentive stock option under section
                  422
                  of the Internal Revenue Code and will be interpreted
                  accordingly.

              
	 	 
	
                Vesting

              	
                No
                  Shares will vest until you have performed _______ (____) months
                  of Service
                  from the commencement of your employment with the Company. Your
                  Option
                  shall vest as to _______ of the Shares on the date _______ (____)
                  months
                  from the Vesting Start Date as shown on the cover sheet. Thereafter,
                  Shares shall vest at the rate of ________ of the Shares at the
                  end of each
                  full month thereafter. After you have completed ________ (____)
                  months of
                  Service, the number of Shares which vest under this Option at the
                  Exercise
                  Price shall be equal to the product of the number of full months
                  of your
                  continuous employment with the Company (“Service”) (including any approved
                  leaves of absence) from the Vesting Start Date times the number
                  of Shares
                  covered by this Option times ________. The resulting number of
                  Shares will
                  be rounded to the nearest whole number. No additional Shares will
                  vest
                  after your Service has terminated for any reason.

                 

                You
                  should note that you may exercise the Option prior to vesting.
                  In that
                  case, the Company has a right to repurchase the unvested shares
                  at the
                  original exercise price if you terminate employment before vesting
                  in all
                  shares you purchased. Also, if you exercise before vesting, you
                  should
                  consider making an 83(b) election. Please see the attached Tax
                  Summary.
                  The
                  83(b) election must be filed within thirty (30) days of the date
                  you
                  exercise.

              
	 	 
	
                Term

              	
                Your
                  Option will expire in any event at the close of business at Company
                  headquarters on the day before the tenth anniversary of the Date
                  of Grant,
                  as shown on the cover sheet. (It will expire earlier if your Service
                  terminates, as described below.)

              

      

       

      
        
          
          

        

        
          -
            2
            -

          
            

          

        

        
          
          

        

      

       

       

      
        	
                Regular
                  Termination

              	
                If
                  your Service terminates for any reason except death, Disability,
                  or for
                  “Cause” your Option will expire at the close of business at Company
                  headquarters on the 30th day after your termination date. During
                  such
                  30-day period, you may exercise that portion of your Option that
                  was
                  vested on your termination date.

              
	 	 
	
                Death

              	
                If
                  you die while in Service with the Company, your Option will expire
                  at the
                  close of business at Company headquarters on the date six (6) months
                  after
                  the date of death. During that six-month period, your estate or
                  heirs may
                  exercise that portion of your Option that was vested on your date
                  of
                  death.

              
	 	 
	
                Disability

              	
                If
                  your Service terminates because of your Disability, your Option
                  will
                  expire at the close of business at Company headquarters on the
                  date six
                  (6) months after your termination date. During that six-month period,
                  you
                  may exercise that portion of your Option that was vested on your
                  date of
                  Disability.

                 

                “Disability”
                  means that you are unable to engage in any substantial gainful
                  activity by
                  reason of any medically determinable physical or mental
                  impairment.

              
	 	 
	
                Leaves
                  of Absence

              	
                For
                  purposes of this Option, your Service does not terminate when you
                  go on a
                  bona
                  fide
                  leave of absence that was approved by the Company in writing, if
                  the terms
                  of the leave provide for continued service crediting, or when continued
                  service crediting is required by applicable law. However, your
                  Service
                  will be treated as terminating thirty (30) days after you went
                  on leave,
                  unless your right to return to work is guaranteed by law or by
                  a contract.
                  Your service terminates in any event when the approved leave ends
                  unless
                  you immediately return to Service. The Company determines which
                  leaves
                  count for this purpose, and when your Service terminates for all
                  purposes
                  under the Plan. The Company also determines the extent to which
                  you may
                  exercise the vested portion of your Option during a leave of
                  absence.

              
	 	 
	
                Notice
                  of Exercise

              	
                When
                  you wish to exercise this Option, you must execute Exhibit
                  A
                  (and if exercise is prior to vesting you must also execute Exhibits
                  B and D).
                  Your Exercise will be effective when it is received by the Company.
                  If
                  someone else wants to exercise this Option after your death, that
                  person
                  must prove to the Company’s satisfaction that he or she is entitled to do
                  so.

              
	 	 
	
                Form
                  of Payment

              	
                When
                  you submit Exhibit
                  A,
                  you must include payment of the Exercise Price for the Shares you
                  are
                  purchasing. Payment may be made in one (or a combination) of the
                  following
                  forms at the discretion of the committee:

                 

                · Your
                  personal check, a cashier’s check or a money order.

                 

                · Shares
                  which you have owned for six (6) months and which are surrendered
                  to the
                  Company. The value of the Shares, determined as of the effective
                  date of
                  the Option exercise, will be applied to the Exercise
                  Price.

              

      

       

      
        
          
          

        

        
          -
            3
            -

          
            

          

        

        
          
          

        

      

       

      
        	 	
                · To
                  the extent that a public market for the Shares exists as determined
                  by the
                  Company, by delivery (on a form prescribed by the Committee) of
                  an
                  irrevocable direction to a securities broker to sell Shares and
                  to deliver
                  all or part of the sale proceeds to the Company in payment of the
                  aggregate Exercise Price.

                 

                · Any
                  other form of legal consideration approved by the
                  Committee.

              
	 	 
	
                Withholding
                  Taxes

              	
                You
                  will not be allowed to exercise this Option unless you make acceptable
                  arrangements to pay any withholding or other taxes that may be
                  due as a
                  result of the Option exercise or the sale of Shares acquired upon
                  exercise
                  of this Option.

              
	 	 
	
                Restrictions
                  on Resale

              	
                By
                  signing this Agreement, you agree not to exercise this Option or
                  sell any
                  Shares acquired upon exercise of this Option at a time when applicable
                  laws, regulations or Company or underwriter trading policies prohibit
                  exercise or sale. In particular, the Company shall have the right
                  to
                  designate one or more periods of time, each of which shall not
                  exceed one
                  hundred eighty (180) days in length, during which this Option shall
                  not be
                  exercisable if the Company determines (in its sole discretion)
                  that such
                  limitation on exercise could in any way facilitate a lessening
                  of any
                  restriction on transfer pursuant to the Securities Act or any state
                  securities laws with respect to any issuance of securities by the
                  Company,
                  facilitate the registration or qualification of any securities
                  by the
                  Company under the Securities Act or any state securities laws,
                  or
                  facilitate the perfection of any exemption from the registration
                  or
                  qualification requirements of the Securities Act or any applicable
                  state
                  securities laws for the issuance or transfer of any securities.
                  Such
                  limitation on exercise shall not alter the vesting schedule set
                  forth in
                  this Agreement other than to limit the periods during which this
                  Option
                  shall be exercisable.

                 

                Furthermore,
                  in respect of any underwritten public offering by the Company,
                  you agree
                  that you will not sell or otherwise transfer or dispose of any
                  Shares
                  covered by this Option during a reasonable and customary period
                  of time as
                  agreed to by the Company and the underwriters, not to exceed the
                  greater
                  of (a) one hundred eighty (180) days following the effective date
                  of the
                  registration statement of the Company filed under the Securities
                  Act in
                  respect of such offering and (b) such other period of time as agreed
                  to by
                  holders of a majority of the then outstanding Shares. By signing
                  this
                  Agreement you agree to execute and deliver such other agreements
                  as may be
                  reasonably requested by the Company or the underwriter which are
                  consistent with the foregoing or which are necessary to give further
                  effect thereto. The Company may impose stop-transfer instructions
                  with
                  respect to the Shares subject to the foregoing restriction until
                  the end
                  of such period.

              

      

       

      
        
          
          

        

        
          -
            4
            -

          
            

          

        

        
          
          

        

      

       

      
        	 	
                If
                  the sale of Shares under the Plan is not registered under the Securities
                  Act of 1933, as amended (the “Securities Act”), but an exemption is
                  available which requires an investment or other representation,
                  you shall
                  represent and agree at the time of exercise that the Shares being
                  acquired
                  upon exercise of this Option are being acquired for investment,
                  and not
                  with a view to the sale or distribution thereof, and shall make
                  such other
                  representations as are deemed necessary or appropriate by the Company
                  and
                  its counsel. 

              
	 	 
	
                The
                  Company’s Right of First Refusal

              	
                In
                  the event that you propose to sell, pledge or otherwise transfer
                  to a
                  third party any Shares acquired under this Agreement, or any interest
                  in
                  such Shares, the Company shall have the “Right of First Refusal” with
                  respect to all (and not less than all) of such Shares. If you desire
                  to
                  transfer Shares acquired under this Agreement, you must give a
                  written
                  “Transfer Notice” to the Company describing fully the proposed transfer,
                  including the number of Shares proposed to be transferred, the
                  proposed
                  transfer price and the name and address of the proposed transferee.
                  The
                  Transfer Notice shall be signed both by you and by the proposed
                  transferee
                  and must constitute a binding commitment of both parties to the
                  transfer
                  of the Shares.

                 

                The
                  Company and its assignees shall have the right to purchase all,
                  and not
                  less than all, of the Shares on the terms described in the Transfer
                  Notice
                  (subject, however, to any change in such terms permitted in the
                  next
                  paragraph) by delivery of a notice of exercise of the Right of
                  First
                  Refusal within thirty (30) days after the date when the Transfer
                  Notice
                  was received by the Company. 

                 

                The
                  Company’s rights under this Subsection shall be freely assignable, in
                  whole or in part.

                 

                If
                  the Company fails to exercise its Right of First Refusal within
                  thirty
                  (30) days after the date when it received the Transfer Notice,
                  you may,
                  not later than sixty (60) days following receipt of the Transfer
                  Notice by
                  the Company, conclude a transfer of the Shares subject to the Transfer
                  Notice on the terms and conditions described in the Transfer Notice.
                  Any
                  proposed transfer on terms and conditions different from those
                  described
                  in the Transfer Notice, as well as any subsequent proposed transfer
                  by
                  you, shall again be subject to the Right of First Refusal and shall
                  require compliance with the procedure described in the paragraph
                  above. If
                  the Company exercises its Right of First Refusal, you and the Company
                  (or
                  its assignees) shall consummate the sale of the Shares on the terms
                  set
                  forth in the Transfer Notice.

                 

                The
                  Company’s Right of First Refusal shall inure to the benefit of its
                  successors and assigns and shall be binding upon any transferee
                  of the
                  Shares. 

              

      

       

      
        
          
          

        

        
          -
            5
            -

          
            

          

        

        
          
          

        

      

       

       

      
        	
                Right
                  of Repurchase

              	
                Following
                  termination of your Service for any reason, the Company shall have
                  the
                  right to purchase all of those vested Shares that you have or will
                  acquire
                  under this Option (unvested Shares which have been exercised are
                  subject
                  to a Repurchase Option set forth in Exhibit
                  A).
                  If the Company fails to provide you with written notice of its
                  intention
                  to purchase such Shares before or within thirty (30) days of the
                  date the
                  Company receives written notice from you of your termination of
                  Service,
                  the Company’s right to purchase such Shares shall terminate. If the
                  Company exercises its right to purchase such Shares, the Company
                  will
                  consummate the purchase of such Shares within sixty (60) days of
                  the date
                  of its written notice to you. The purchase price for any Shares
                  repurchased shall be the higher of the fair market value of the
                  Shares on
                  the date of purchase or the aggregate Exercise Price for such Shares
                  and
                  shall be paid in cash. The Company’s right of repurchase shall terminate
                  in the event that Stock is listed on an established stock exchange
                  or is
                  quoted regularly on the Nasdaq National Market. The fair market
                  value
                  shall be determined by the Board of Directors in its sole
                  discretion.

              
	 	 
	
                Transfer
                  of Option

              	
                Prior
                  to your death, only you may exercise this Option. You cannot transfer
                  or
                  assign this Option. For instance, you may not sell this Option
                  or use it
                  as security for a loan. If you attempt to do any of these things,
                  this
                  Option will immediately become invalid. You may, however, dispose
                  of this
                  Option in your will.

                 

                Regardless
                  of any marital property settlement agreement, the Company is not
                  obligated
                  to honor a Notice of Exercise from your spouse or former spouse,
                  nor is
                  the Company obligated to recognize such individual’s interest in your
                  Option in any other way. 

              
	 	 
	
                Retention
                  Rights

              	
                This
                  Agreement does not give you the right to be retained by the Company
                  in any
                  capacity. The Company reserves the right to terminate your Service
                  at any
                  time and for any reason.

              
	 	 
	
                Shareholder
                  Rights

              	
                Neither
                  you, nor your estate or heirs, have any rights as a shareholder
                  of the
                  Company until a certificate for the Shares acquired upon exercise
                  of this
                  Option has been issued. No adjustments are made for dividends or
                  other
                  rights if the applicable record date occurs before your stock certificate
                  is issued, except as described in the Plan.

              
	 	 
	
                Adjustments

              	
                In
                  the event of a stock split, a stock dividend or a similar change
                  in the
                  Company Stock, the number of Shares covered by this Option and
                  the
                  Exercise Price per share may be adjusted pursuant to the Plan.
                  Your Option
                  shall be subject to the terms of the agreement of merger, liquidation
                  or
                  reorganization in the event the Company is subject to such corporate
                  activity.

              
	 	 
	
                Legends

              	
                All
                  certificates representing the Shares issued upon exercise of this
                  Option
                  shall, where applicable, have endorsed thereon the following
                  legends:

              

      

       

      
        
          
          

        

        
          -
            6
            -

          
            

          

        

        
          
          

        

      

       

      
        	 	
                “THE
                  SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
                  RESTRICTIONS ON TRANSFER AND OPTIONS TO PURCHASE SUCH SHARES SET
                  FORTH IN
                  AN AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR
                  SUCH
                  HOLDER’S PREDECESSOR IN INTEREST. SUCH AGREEMENT IMPOSES CERTAIN TRANSFER
                  RESTRICTIONS AND GRANTS CERTAIN REPURCHASE RIGHTS TO THE COMPANY
                  (OR ITS
                  ASSIGNS) UPON THE SALE OF THE SHARES OR UPON TERMINATION OF SERVICE
                  WITH
                  THE COMPANY. A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL
                  OFFICE
                  OF THE COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST TO THE
                  SECRETARY
                  OF THE COMPANY BY THE HOLDER OF SHARES REPRESENTED BY THIS
                  CERTIFICATE.

                 

                THE
                  SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
                  UNDER
                  THE SECURITIES ACT OF 1933, OR THE SECURITIES LAWS OF ANY STATE,
                  AND MAY
                  BE OFFERED AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO
                  THE
                  RELEVANT PROVISIONS OF FEDERAL AND STATE SECURITIES LAWS OR IF
                  THE COMPANY
                  IS PROVIDED AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY
                  AND ITS
                  COUNSEL, THAT REGISTRATION AND QUALIFICATION UNDER FEDERAL AND
                  STATE
                  SECURITIES LAWS IS NOT REQUIRED.” 

              
	 	 
	
                Applicable
                  Law

              	
                This
                  Agreement will be interpreted and enforced under the laws of the
                  State of
                  California (without regard to their choice of law
                  provisions).

              
	 	 
	
                The
                  Plan and Other Agreements

              	
                The
                  text of the Plan is incorporated in this Agreement by reference.
                  Certain
                  capitalized terms used in this Agreement are defined in the
                  Plan.

                 

                This
                  Agreement and the Plan constitute the entire understanding between
                  you and
                  the Company regarding this Option. Any prior agreements, commitments
                  or
                  negotiations concerning this Option are
                  superseded.

              

      

       

      By
        signing the cover sheet of this Agreement, you agree to all of the terms
        and
        conditions described above and in the Plan. You also acknowledge that you
        have
        read Section 11, “Purchaser’s Investment Representations” of Attachment A and
        that you can and hereby do make the same representations with respect to
        the
        grant of this Option.

       

      
        
          
          

        

        
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            7
            -

          
            

          

        

        
          
          

        

      

      

       

      

      EXHIBIT
        A

       

      BIOGOLD
        FUELS CORPORATION

       

      Notice
        of Exercise and Common Stock Purchase Agreement

       

      THIS
        AGREEMENT is dated as of ___________, ____, between Biogold Fuels Corporation,
        a
        Nevada corporation (the “Company”), and _________________
        (“Purchaser”).

       

      W
        I T N E
        S S E T H:

       

      WHEREAS,
        the Company and Purchaser are parties to that certain ___ Incentive ___
        Nonstatutory Stock Option Agreement dated as of ___________, ____ (the “Option
        Agreement”) pursuant to which the Purchaser has the right to purchase up to
        ___________________ shares of the Company’s common stock (the “Option Shares”);
        and

       

      WHEREAS,
        the Option is exercisable with respect to certain of the Option Shares as
        of the
        date hereof; and

       

      WHEREAS,
        pursuant to the Option Agreement, Purchaser desires to purchase shares of
        the
        Company as herein described, on the terms and conditions set forth in this
        Agreement, the Option Agreement and the Biogold Fuels Corporation 2008 Equity
        Incentive Plan (the “Plan”). Certain capitalized terms used in this Agreement
        are defined in the Plan.

       

      NOW,
        THEREFORE, it is agreed between the parties as follows:

       

      SECTION
        1: PURCHASE
        OF SHARES.

       

      (a) Pursuant
        to the terms of the Option Agreement, Purchaser hereby agrees to purchase
        from
        the Company and the Company agrees to sell and issue to Purchaser
        ________________ shares of the Company’s common stock (the “Stock”) for the
        Exercise Price per share specified in the Option Agreement payable by personal
        check, cashier’s check or money order, if permitted by the Option Agreement, as
        follows:
        _______________________________. Payment shall be delivered at the Closing,
        as
        such term is hereinafter defined.

       

      (b) The
        closing hereunder (the “Closing”) shall occur at the offices of the Company on
        __________, ____, or such other time and place as may be designated by the
        Company (the “Closing Date”).

       

      SECTION
        2: REPURCHASE
        OPTION

       

      All
        unvested shares of the Stock purchased by the Purchaser pursuant to this
        Agreement (sometimes referred to as the “Repurchase Option Stock”) shall be
        subject to the following option (the “Repurchase Option”):

       

      (a) In
        the
        event the Purchaser terminates service with the Company (“Service”) for any
        reason, with or without cause, the Company may exercise the Repurchase
        Option.

       

      
        
          
          

        

        
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            1 -

          
            

          

        

        
          
          

        

      

       

      (b) Purchaser
        understands that the Stock is being sold in order to induce Purchaser to
        become
        and/or remain associated with the Company and to work diligently for the
        success
        of the Company and that the Repurchase Option Stock will continue to vest
        in
        accordance with the schedule set forth in the Option Agreement. Accordingly,
        the
        Company shall have the right at any time within ninety (90) days after the
        termination of Service to purchase from the Purchaser all shares of Stock
        purchased hereunder which have not vested in accordance with the terms of
        such
        vesting schedule in the Option Agreement. The purchase price for such unvested
        shares of Repurchase Option Stock shall be the Exercise Price per share paid
        by
        Purchaser for such shares pursuant to the Option (the “Option Price”). The
        purchase price shall be paid by certified or cashier’s check or by cancellation
        of any indebtedness of Purchaser to the Company.

       

      (c) Nothing
        in this Agreement shall be construed as a right by purchaser to be employed
        by
        Company, or a parent or subsidiary of Company.

       

      SECTION
        3: EXERCISE
        OF REPURCHASE OPTION

       

      The
        Repurchase Option shall be exercised by written notice signed by an officer
        of
        the Company and delivered or mailed as provided in Section 16 of this
        Agreement and to the Escrow Agent as provided in Section 16 of the Joint
        Escrow Instructions attached as Exhibit B
        to the
        Option Agreement.

       

      SECTION
        4: WAIVER,
        ASSIGNMENT, EXPIRATION OF REPURCHASE OPTION

       

      If
        the
        Company waives or fails to exercise the Repurchase Option as to all of the
        shares subject thereto, the Company may, in the discretion of its Board of
        Directors, assign the Repurchase Option to any other holder or holders of
        preferred or common stock of the Company in such proportions as such Board
        of
        Directors may determine. In the event of such an assignment, the assignee
        shall
        pay to the Company in cash an amount equal to the fair market value of the
        Repurchase Option. The Company shall promptly, upon expiration of the 90-day
        period referred to in Section 2 above, notify Purchaser of the number of
        shares subject to the Repurchase Option assigned to such stockholders and
        shall
        notify both the Purchaser and the assignees of the time, place and date for
        settlement of such purchase, which must be made within ninety (90) days from
        the
        date of cessation of continuous employment. In the event that the Company
        and/or
        such assignees do not elect to exercise the Repurchase Option as to all or
        part
        of the shares subject to it, the Repurchase Option shall expire as to all
        shares
        which the Company and/or such assignees have not elected to
        purchase.

       

      SECTION
        5: ESCROW
        OF SHARES

       

      (a) As
        security for Purchaser’s faithful performance of the terms of this Agreement and
        to ensure the availability for delivery of Purchaser’s shares upon exercise of
        the Repurchase Option herein provided for, Purchaser agrees at the Closing
        hereunder, to deliver to and deposit with the Escrow Agent named in the Joint
        Escrow Instructions attached to the Option Agreement as Exhibit B,
        the
        certificate or certificates evidencing the Option Stock subject to the
        Repurchase Option and two Assignments Separate from Certificate duly executed
        (with date and number of shares in blank) in the form attached to the Option
        Agreement as Exhibit D.
        Such
        documents are to be held by the Escrow Agent and delivered by the Escrow
        Agent
        pursuant to the Joint Escrow Instructions, which instructions shall also
        be
        delivered to the Escrow Agent at the Closing hereunder.

       

      (b) Within
        thirty (30) days after the last day of each successive completed calendar
        quarter after the Closing Date, if Purchaser so requests, the Escrow Agent
        will
        deliver to Purchaser certificates representing so many shares of Stock as
        are no
        longer subject to the Repurchase Option (less such shares as have been
        previously delivered). Ninety (90) days after cessation of Purchaser’s
        employment with the Company the Company will direct the Escrow Agent to deliver
        to Purchaser a certificate or certificates representing the number of shares
        not
        repurchased by the Company or its assignees pursuant to exercise of the
        Repurchase Option (less such shares as have been previously
        delivered).

       

      
        
          
          

        

        
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      SECTION
        6: ADJUSTMENT
        OF SHARES

       

      Subject
        to the provisions of the Articles of Incorporation of the Company, if, from
        time
        to time during the term of the Repurchase Option:

       

      (a) there
        is
        any stock dividend or liquidating dividend of cash and/or property, stock
        split
        or other change in the character or amount of any of the outstanding securities
        of the Company, or

       

      (b) there
        is
        any consolidation, merger or sale of all or substantially all, of the assets
        of
        the Company,

       

      then,
        in
        such event, any and all new, substituted or additional securities or other
        property to which Purchaser is entitled by reason of Purchaser’s ownership of
        the shares shall be immediately subject to such Repurchase Option with the
        same
        force and effect as the shares of Option Stock from time to time subject
        to the
        Repurchase Option. While the total Option Price shall remain the same after
        each
        such event, the Option Price per share of Option Stock upon exercise of the
        Repurchase Option shall be appropriately and equitably adjusted as determined
        by
        the Board of Directors of the Company.

       

      SECTION
        7: THE
        COMPANY’S RIGHT OF FIRST REFUSAL.

       

      Before
        any shares of Stock registered in the name of Purchaser and not subject to
        the
        Repurchase Option may be sold or transferred, such shares shall first be
        offered
        to the Company as set forth in the Option Agreement.

       

      SECTION
        8: PURCHASER’S
        RIGHTS AFTER EXERCISE OF REPURCHASE
        OPTION OR RIGHT OF FIRST REFUSAL.

       

      If
        the
        Company makes available, at the time and place and in the amount and form
        provided in this Agreement, the consideration for the Stock to be repurchased
        in
        accordance with the provisions of Sections 2 and 7 of this Agreement, then
        from
        and after such time the person from whom such shares are to be repurchased
        shall
        no longer have any rights as a holder of such shares (other than the right
        to
        receive payment of such consideration in accordance with this Agreement).
        Such
        shares shall be deemed to have been repurchased in accordance with the
        applicable provisions hereof, whether or not the certificate(s) therefor
        have
        been delivered as required by this Agreement.

       

      SECTION
        9: TRANSFER
        BY PURCHASER TO CERTAIN TRUSTS.

       

      Purchaser
        shall have the right to transfer all or any portion of Purchaser’s interest in
        the shares issued under this Agreement which have been delivered to Purchaser
        under the provisions of Section 5 of this Agreement, to a trust established
        by Purchaser for the benefit of Purchaser, Purchaser’s spouse or Purchaser’s
        children, without being subject to the provisions of Section 7 hereof,
        provided that the trustee on behalf of the trust shall agree in writing to
        be
        bound by the terms and conditions of this Agreement. The transferee shall
        execute a copy of Exhibit C attached to the Option Agreement and file the
        same with the Secretary of the Company.

       

      
        
          
          

        

        
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      SECTION
        10: LEGEND
        OF SHARES.

       

      All
        certificates representing the Stock purchased under this Agreement shall,
        where
        applicable, have endorsed thereon the legends set forth in the Option Agreement
        and any other legends required by applicable securities laws.

       

      SECTION
        11: PURCHASER’S
        INVESTMENT REPRESENTATIONS.

       

      (a) This
        Agreement is made with Purchaser in reliance upon Purchaser’s representation to
        the Company, which by Purchaser’s acceptance hereof Purchaser confirms, that the
        Stock which Purchaser will receive will be acquired with Purchaser’s own funds
        for investment for an indefinite
        period for Purchaser’s own account, not as a nominee or agent, and not with a
        view to the sale or distribution of any part thereof, and that Purchaser
        has no
        present intention of selling, granting participation in, or otherwise
        distributing the same, but subject, nevertheless, to any requirement of law
        that
        the disposition of Purchaser’s property shall at all times
        be
        within Purchaser’s
        control. By executing this Agreement, Purchaser further represents that
        Purchaser does not have any contract, understanding or agreement with any
        person
        to sell, transfer, or grant participation, to such person or to any third
        person, with respect to any of the Stock.

       

      (b) Purchaser
        understands that the Stock will not be registered or qualified under federal
        or
        state securities laws on the ground that the sale provided for in this Agreement
        is exempt from registration or qualification under federal or state securities
        laws and that the Company’s
        reliance on such exemption is predicated on Purchaser’s representations set
        forth herein.

       

      (c) Purchaser
        agrees that in no event will Purchaser make a disposition of any of the Stock
        (including a disposition under Section 9 of this Agreement), unless and
        until
        (i) Purchaser
        shall have notified the Company of the proposed disposition and shall have
        furnished the Company with a statement of the circumstances surrounding the
        proposed disposition and
        (ii) Purchaser
        shall have furnished the Company with an opinion of counsel satisfactory
        to the
        Company to the effect that
        (A) such
        disposition will not require registration or qualification of such Stock
        under
        federal or state securities laws or
        (B) appropriate
        action necessary for compliance with the federal or state securities laws
        has
        been taken or
        (iii) the
        Company shall have waived, expressly and in writing, its rights under clauses
        (i) and (ii) of this section.

       

      (d) With
        respect to a transaction occurring prior to such date as the Plan and Stock
        thereunder are covered by a valid Form S-8 or similar federal registration
        statement, this subsection shall apply unless the transaction is covered
        by the
        exemption in California Corporation Law or a similar broad based exemption.
        In
        connection with the investment representations made herein, Purchaser represents
        that Purchaser is able to fend for himself or herself in the transactions
        contemplated by this Agreement, has such knowledge and experience in financial
        and business matters as to be capable of evaluating the merits and risks
        of
        Purchaser’s investment, has the ability to bear the economic risks of
        Purchaser’s investment and has been furnished with and has had access to such
        information as would be made available in the form of a registration statement
        together with such additional information as is necessary to verify the accuracy
        of the information supplied and to have all questions answered by the
        Company.

       

      (e) Purchaser
        understands that if the Company does not register with the Securities and
        Exchange Commission pursuant to Section 12 of the Securities Exchange Act
        of 1934, as amended (the “Exchange Act”) or if a registration statement covering
        the Stock (or a filing pursuant to the exemption from registration under
        Regulation A of the Securities Act of 1933) under the Securities Act of 1933
        is
        not in effect when Purchaser desires to sell the Stock, Purchaser may be
        required to hold the Stock for an indeterminate period. Purchaser also
        acknowledges that Purchaser understands that any sale of the Stock which
        might
        be made by Purchaser in reliance upon Rule 144 under the Securities Act of
        1933
        may be made only in limited amounts in accordance with the terms and conditions
        of that Rule.

       

      
        
          
          

        

        
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      SECTION
        12: ASSISTANCE
        TO PURCHASER UNDER RULE 144.

       

      The
        Company covenants and agrees that
        (a) at
        all times after it first becomes subject to the reporting requirements of
        Section 13 or 15(d) of the Exchange Act, it will use its best efforts to
        comply with the current public information requirements of Rule 144(c)(1)
        under
        the Securities Act of 1933, and that if prior to becoming subject to such
        reporting requirements an over-the-counter market develops for the Stock,
        it
        will make publicly available the information required by
        Rule 144(c)(2);
        (b) it
        will furnish Purchaser, upon request, with all information required for the
        preparation and filing of Form 144; and
        (c) it
        will on a timely basis use its best efforts to file all reports required
        to be
        filed and make all disclosures, including disclosures of materially adverse
        information, required to permit Purchaser to make the required representations
        in Form 144.

       

      SECTION
        13: NO
        DUTY TO TRANSFER IN VIOLATION HEREUNDER.

       

      The
        Company shall not be required (a) to transfer on its books any shares of
        Stock of the Company which shall have been sold or transferred in violation
        of
        any of the provisions set forth in this Agreement or (b) to treat as owner
        of such shares or to accord the right to vote as such owner or to pay dividends
        to any transferee to whom such shares shall have been so
        transferred.

       

      SECTION
        14: RIGHTS
        OF PURCHASER.

       

      Except
        as
        otherwise provided herein, Purchaser shall, during the term of this Agreement,
        exercise all rights and privileges of a stockholder of the Company with respect
        to the Stock.

       

      SECTION
        15: OTHER
        NECESSARY ACTIONS.

       

      The
        parties agree to execute such further instruments and to take such further
        action as may reasonably be necessary to carry out the intent of this
        Agreement.

       

      SECTION
        16: NOTICE.

       

      Any
        notice required or permitted hereunder shall be given in writing and shall
        be
        deemed effectively given upon the earliest of personal delivery, receipt
        or the
        third full day following deposit in the United States Post Office with postage
        and fees prepaid, addressed to the other party hereto at the address last
        known
        or at such other address as such party may designate by ten (10) days’ advance
        written notice to the other party hereto.

       

      SECTION
        17: SUCCESSORS
        AND ASSIGNS.

       

      This
        Agreement shall inure to the benefit of the successors and assigns of the
        Company and, subject to the restrictions on transfer herein set forth, be
        binding upon Purchaser and Purchaser’s heirs, executors, administrators,
        successors and assigns. The failure of the Company in any instance to exercise
        the Repurchase Option or rights of first offer described herein shall not
        constitute a waiver of any other Repurchase Option or right of first offer
        that
        may subsequently arise under the provisions of this Agreement. No waiver
        of any
        breach or condition of this Agreement shall be deemed to be a waiver of any
        other or subsequent breach or condition, whether of a like or different
        nature.

       

      
        
          
          

        

        
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      SECTION
        18: APPLICABLE
        LAW.

       

      This
        Agreement shall be governed by, and construed in accordance with, the laws
        of
        the State of California, as such laws are applied to contracts entered into
        and
        performed in such state.

       

      SECTION
        19: NO
        STATE QUALIFICATION.

       

      THE
        SALE
        OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED
        WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE
        ISSUANCE OF SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE
        CONSIDERATION THEREFOR PRIOR TO SUCH QUALIFICATION IS UNLAWFUL, UNLESS THE
        SALE
        OF SECURITIES IS EXEMPT FROM THE QUALIFICATION. THE RIGHTS OF ALL PARTIES
        TO
        THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED,
        UNLESS THE SALE IS SO EXEMPT.

       

      SECTION
        20: NO
        ORAL MODIFICATION.

       

      No
        modification of this Agreement shall be valid unless made in writing and
        signed
        by the parties hereto.

       

      SECTION
        21: ENTIRE
        AGREEMENT.

       

      This
        Agreement and the Option Agreement constitute the entire complete and final
        agreement between the parties hereto with regard to the subject matter
        hereof.

       

      IN
        WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
        day
        and year first above written.

       

      
        	
                Biogold
                  Fuels Corporation

              	 	
                Purchaser

              
	 	 	 
	
                By: ________________________________________ 

              	 	 
	
                Its:
                  ________________________________________

              	 	 
	 	 	 

      

      

      
        
          
          

        

        
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      EXHIBIT B

      Joint
        Escrow Instructions

       

       _________,
        _____

       

      Secretary

      _____________________

       

      Dear
        Sir
        or Madam:

       

      As
        Escrow
        Agent for both Biogold Fuels Corporation, a Nevada corporation (the “Company”),
        and ___________________ (“Purchaser”), you are hereby authorized and directed to
        hold the documents delivered to you pursuant to the terms of that certain
        Common
        Stock Purchase Agreement (the “Agreement”) of even date herewith, to which a
        copy of these Joint Escrow Instructions is attached as Exhibit
        B
        to a
        certain Stock Option dated _________________ (“Option Agreement”), in accordance
        with the following instructions:

       

      1. In
        the
        event the Company shall elect to exercise the Repurchase Option set forth
        in the
        Agreement, the Company shall give to Purchaser and you a written notice as
        provided in the Agreement. Purchaser and the Company hereby irrevocably
        authorize and direct you to close the transaction contemplated by such notice,
        including prompt delivery of stock certificates.

       

      2. At
        the
        closing, you are directed (a) to date the stock assignment form or forms
        necessary for the transfer in question, (b) to fill in the number of shares
        being transferred, and (c) to deliver same, together with the certificate
        or
        certificates evidencing the shares to be transferred, to the Company against
        the
        simultaneous delivery to you of the purchase price (by certified or bank
        cashier’s check) for the number of shares being purchased pursuant to the
        exercise of the Repurchase Option.

       

      3. Purchaser
        irrevocably authorizes the Company to deposit with you any certificates
        evidencing shares to be held by you hereunder and any additions and
        substitutions to said shares as defined in the Agreement. Purchaser does
        hereby
        irrevocably constitute and appoint you as Purchaser’s attorney-in-fact and agent
        for the term of this escrow to execute with respect to such securities all
        documents necessary or appropriate to make such securities negotiable and
        to
        complete any transaction herein contemplated. Subject to the provisions of
        this
        Section 3, Purchaser shall exercise all rights and privileges, including
        but not limited to, the right to vote and to receive dividends (if any),
        of a
        stockholder of the Company while the shares are held by you.

       

      4. In
        accordance with the terms of Section 5 of the Agreement, you may from time
        to time deliver to Purchaser a certificate or certificates representing so
        many
        shares as are no longer subject to the Repurchase Option.

       

      5. This
        escrow shall terminate upon the release of all shares held under the terms
        and
        provisions hereof.

       

      
        
          
          

        

        
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      6. If
        at the
        time of termination of this escrow you should have in your possession any
        documents, securities or other property belonging to Purchaser, you shall
        deliver all of same to Purchaser and shall be discharged from all further
        obligations hereunder.

       

      7. Your
        duties hereunder may be altered, amended, modified or revoked only by a writing
        signed by all of the parties hereto.

       

      8. You
        shall
        be obligated only for the performance of such duties as are specifically
        set
        forth herein and may rely and shall be protected in relying or refraining
        from
        acting on any instrument reasonably believed by you to be genuine and to
        have
        been signed or presented by the proper party or parties. You shall not be
        personally liable for any act you may do or omit to do hereunder as Escrow
        Agent
        or as attorney-in-fact of Purchaser while acting in good faith and in the
        exercise of your own good judgment, and any act done or omitted by you pursuant
        to the advice of your own attorneys shall be conclusive evidence of such
        good
        faith.

       

      9. You
        are
        hereby expressly authorized to disregard any and all warnings given by any
        of
        the parties hereto or by any other person or corporation, excepting only
        orders
        or process of courts of law, and are hereby expressly authorized to comply
        with
        and obey orders, judgments or decrees of any court. In case you obey or comply
        with any such order, judgment or decree of any court, you shall not be liable
        to
        any of the parties hereto or to any other person, firm or corporation by
        reason
        of such compliance, notwithstanding any such order, judgment or decree being
        subsequently reversed, modified, annulled, set aside, vacated or found to
        have
        been entered without jurisdiction.

       

      10. You
        shall
        not be liable in any respect on account of the identity, authority or rights
        of
        the parties executing or delivering or purporting to execute or deliver the
        Agreement or any documents or papers deposited or called for
        hereunder.

       

      11. You
        shall
        not be liable for the outlawing of any rights under any statute of limitations
        with respect to these Joint Escrow Instructions or any documents deposited
        with
        you.

       

      12. You
        shall
        be entitled to employ such legal counsel and other experts as you may deem
        necessary properly to advise you in connection with your obligations hereunder
        and may rely upon the advice of such counsel.

       

      13. Your
        responsibilities as Escrow Agent hereunder shall terminate if you shall cease
        to
        be Secretary of the Company or if you shall resign by written notice of each
        party. In the event of any such termination, the Company shall appoint any
        officer of the Company as successor Escrow Agent.

       

      14. If
        you
        reasonably require other or further instruments in connection with these
        Joint
        Escrow Instructions or obligations in respect hereto, the necessary parties
        hereto shall join in furnishing such instruments.

       

      15. It
        is
        understood and agreed that should any dispute arise with respect to the delivery
        and/or ownership or right of possession of the securities held by you hereunder,
        you are authorized and directed to retain in your possession without liability
        to anyone all or any part of said securities until such dispute shall have
        been
        settled either by mutual written agreement of the parties concerned or by
        a
        final order, decree or judgment of a court of competent jurisdiction after
        the
        time for appeal has expired and no appeal has been perfected, but you shall
        be
        under no duty whatsoever to institute or defend any such
        proceedings.

       

      
        
          
          

        

        
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      16. Any
        notice required or permitted hereunder shall be given in writing and shall
        be
        deemed effectively given upon personal delivery or upon deposit in the United
        States Post Office, by registered or certified mail with postage and fees
        prepaid, addressed to each of the other parties thereunto entitled.

       

      17. By
        signing these Joint Escrow Instructions, you become a party hereto only for
        the
        purpose of said Joint Escrow Instructions; you do not become a party to the
        Agreement.

       

      18. This
        instrument shall be governed by and construed in accordance with the laws
        of the
        State of California.

       

      19. This
        instrument shall be binding upon and inure to the benefit of the parties
        hereto
        and their respective successors and permitted assigns.

       

      
        	 	 	 
	 	Very truly yours,
	 	 
	 	
                Biogold
                  Fuels Corporation

              
	 	 	 
	 	By:  	 
	 	 	
                
 
	 	 	
              
	ESCROW AGENT:	PURCHASER:
	 	 
	
                

              	
                

              

      

      

      
        
          
          

        

        
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            3 -

          
            

          

        

        
          
          

        

      

       

      EXHIBIT C

       

      Acknowledgment
        of and Agreement to be Bound

       

      By
        the Notice of Exercise and Common Stock Purchase Agreement
        of

       

      BIOGOLD
        FUELS CORPORATION

       

      The
        undersigned, as transferee of shares of Biogold Fuels Corporation, a Nevada
        corporation, hereby acknowledges that he or she has read and reviewed the
        terms
        of the Notice of Exercise and Common Stock Purchase Agreement of Biogold
        Fuels
        Corporation and hereby agrees to be bound by the terms and conditions thereof,
        as if the undersigned had executed said Agreement as an original party
        thereto.

       

      
        	 	 	 
	
                Dated:
                  ____________________, ______.

              	 
	 
 	 
 	 
 
	 	By   
                	 
	 	 	
                

              

      

      

      
        
          
          

        

        
          -
            1
            -

          
            

          

        

        
          
          

        

      

      EXHIBIT D

       

      ASSIGNMENT
        SEPARATE FROM CERTIFICATE

       

      FOR
        VALUE
        RECEIVED _________________________________ hereby sells, assigns and transfers
        unto _________________________ ________________________ (________) shares
        of the
        Common Stock of Biogold Fuels Corporation (the “Company”), standing in
        __________ name on the books of the Company represented by Certificate No.
        ___________ herewith and hereby irrevocably constitutes and appoints
        ________________ Attorney to transfer said stock on the books of the Company
        with full power of substitution in the premises.

       

      Dated:
        ____________________, ______.

       

      
        
          
          

        

        
          -
            1 -Exhibit
      4.10

     

    THE
      REGISTERED HOLDER OF THIS PURCHASE OPTION BY ITS ACCEPTANCE HEREOF, AGREES
      THAT
      IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE OPTION EXCEPT AS HEREIN
      PROVIDED AND THE REGISTERED HOLDER OF THIS PURCHASE OPTION AGREES THAT IT WILL
      NOT SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE THIS PURCHASE OPTION FOR
      A
      PERIOD OF ONE YEAR FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO
      ANYONE OTHER THAN (I) AN UNDERWRITER OR A SELECTED DEALER IN CONNECTION WITH
      THE
      OFFERING, OR (II) A BONA FIDE OFFICER OR PARTNER OF THE HOLDER OR OF ANY SUCH
      UNDERWRITER OR SELECTED DEALER.

     

    THIS
      PURCHASE OPTION IS NOT EXERCISABLE PRIOR TO
      AUGUST          , 2008. VOID AFTER
      5:00 P.M. NEW YORK CITY LOCAL TIME,
      FEBRUARY          ,
      2013.

     

    FORM
      OF UNIT PURCHASE OPTION

     

    FOR
      THE PURCHASE OF

     

    170,000
      UNITS

     

    OF

     

    PACIFIC
      RESTAURANT HOLDINGS, INC.

     

    1. Purchase
      Option.

     

    THIS
      CERTIFIES THAT, in consideration of a total of $100.00 duly paid by or on behalf
      of Jesup & Lamont Securities Corporation (the “Holder”),
      as
      registered owner of this Purchase Option, to Pacific Restaurant Holdings, Inc.
      (“Company”), Holder is entitled, at any time or from time to time after February
      , 2008 (“Commencement
      Date”),
      and
      at or before 5:00 p.m., New York City local time, February ,
      2013
      (“Expiration
      Date”),
      but
      not thereafter, to subscribe for, purchase and receive, in whole or in part,
      up
      to a total of one hundred seventy thousand (170,000) units (“Units”)
      of the
      Company, each Unit consisting of one share of common stock of the Company,
      par
      value $0.001 per share (“Common
      Stock”),
      and
      one warrant (“Warrant(s)”)
      expiring five years from the effective date (“Effective
      Date”)
      of the
      registration statement (“Registration
      Statement”)
      pursuant to which Units are offered for sale to the public (“Offering”).
      Each
      Warrant shall be substantially the same as the warrants included in the Units
      being registered for sale to the public by way of the Registration Statement
      (“Public
      Warrants”).
      If
      the Expiration Date is a day on which banking institutions are authorized by
      law
      to close, then this Purchase Option may be exercised on the next succeeding
      day
      which is not such a day in accordance with the terms herein. During the period
      ending on the Expiration Date, the Company agrees not to take any action that
      would terminate this Purchase Option. This Purchase Option is initially
      exercisable at $7.20 per Unit so purchased; provided, however, that upon the
      occurrence of any of the events specified in Section 6 hereof, the rights
      granted by this Purchase Option, including the exercise price per Unit and
      the
      number of Units (and shares of Common Stock and Warrants) to be received upon
      such exercise, shall be adjusted as therein specified. The term “Exercise
      Price”
shall
      mean the initial exercise price or the adjusted exercise price, depending on
      the
      context.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2. Exercise.

     

    2.1 Exercise
      Form. In
      order
      to exercise this Purchase Option, the exercise form attached hereto must be
      duly
      executed and completed and delivered to the Company, together with this Purchase
      Option and payment of the Exercise Price for the Units being purchased payable
      in cash or by certified check or official bank check. If the subscription rights
      represented hereby shall not be exercised at or before 5:00 p.m., New York
      City
      local time, on the Expiration Date this Purchase Option shall become and be
      void
      without further force or effect, and all rights represented hereby shall cease
      and expire.

     

    2.2 Legend.
      Each
      certificate for the securities purchased under this Purchase Option shall bear
      a
      legend as follows unless such securities have been registered under the
      Securities Act of 1933, as amended (“Act”):

     

    “The
      securities represented by this certificate have not been registered under the
      Securities Act of 1933, as amended (“Act”),
      or
      applicable state law. The securities may not be offered for sale, sold or
      otherwise transferred except pursuant to an effective registration statement
      under the Act, or pursuant to an exemption from registration under the Act
      and
      applicable state law.”

     

    2.3 No
      Obligation to Net Cash Settle. Notwithstanding
      anything to the contrary contained in this Purchase Option, in no event will
      the
      Company net cash settle the exercise of the Purchase Option or the Warrants
      underlying the Purchase Option. The holder of the Purchase Option and the
      Warrants underlying the Purchase Option may not exercise the Purchase Option
      or
      the Warrants underlying such Purchase Option unless a registration statement
      is
      effective with respect to the Common Stock underlying the Public Warrants and,
      if the holder is not able to exercise the Purchase Option or underlying Warrants
      prior to their expiration, the Purchase Option and/or the underlying Warrants,
      as applicable, will expire worthless.

     

    3. Transfer.

     

    3.1 General
      Restrictions. The
      registered Holder of this Purchase Option, by its acceptance hereof, agrees
      that
      it will not sell, transfer, assign, pledge or hypothecate this Purchase Option
      for a period of one year following the Effective Date to anyone other
      than (i) an underwriter or a selected dealer in connection with the Offering
      or
      (ii) a bona fide officer or partner of the Holder or of any such underwriter
      or
      selected dealer. On and after the first anniversary of the Effective Date,
      transfers to others may be made subject to compliance with or exemptions from
      applicable securities laws. In order to make any permitted assignment, the
      Holder must deliver to the Company the assignment form attached hereto duly
      executed and completed, together with this Purchase Option and payment of all
      transfer taxes, if any, payable in connection therewith. The Company shall
      within five business days transfer this Purchase Option on the books of the
      Company and shall execute and deliver a new Purchase Option or Purchase Options
      of like tenor to the appropriate assignee(s) expressly evidencing the right
      to
      purchase the aggregate number of Units purchasable hereunder or such portion
      of
      such number as shall be contemplated by any such assignment.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    3.2 Restrictions
      Imposed by the Act. The
      securities evidenced by this Purchase Option shall not be transferred unless
      and
      until (i) the Company has received the opinion of counsel for the Holder that
      the securities may be transferred pursuant to an exemption from registration
      under the Act and applicable state securities laws, the availability of which
      is
      established to the reasonable satisfaction of the Company (the Company hereby
      agreeing that the opinion of Pillsbury Winthrop Shaw Pittman LLP shall be deemed
      satisfactory evidence of the availability of an exemption), or (ii) a
      registration statement or a post-effective amendment to the Registration
      Statement relating to such securities has been filed by the Company and declared
      effective by the Securities and Exchange Commission (the “Commission”)
      and
      compliance with applicable state securities law has been established. The
      Company agrees that prior to the Commencement Date, it shall file with the
      Commission a post-effective amendment to the Registration Statement, or a new
      registration statement, for the registration, under the Act, of, and it shall
      take such action as is necessary to qualify for sale, in those states in which
      the Warrants were initially offered by the Company, the Common Stock issuable
      upon exercise of the Warrants. In either case, the Company will use its best
      efforts to cause the same to become effective and to maintain the effectiveness
      of such registration statement until the expiration or redemption of the
      Warrants in accordance with the provisions of this Agreement. The provisions
      of
      this paragraph may not be modified, amended or deleted without the prior written
      consent of the Holder.

     

    4. New
      Purchase Options to be Issued.

     

    4.1 Partial
      Exercise or Transfer. Subject
      to the restrictions in Section 3 hereof, this Purchase Option may be exercised
      or assigned in whole or in part. In the event of the exercise or assignment
      hereof in part only, upon surrender of this Purchase Option for cancellation,
      together with the duly executed exercise or assignment form and funds sufficient
      to pay any Exercise Price and/or transfer tax, the Company shall cause to be
      delivered to the Holder without charge a new Purchase Option of like tenor
      to
      this Purchase Option in the name of the Holder evidencing the right of the
      Holder to purchase the number of Units purchasable hereunder as to which this
      Purchase Option has not been exercised or assigned.

     

    4.2 Lost
      Certificate. Upon
      receipt by the Company of evidence satisfactory to it of the loss, theft,
      destruction or mutilation of this Purchase Option and of reasonably satisfactory
      indemnification or the posting of a bond, the Company shall execute and deliver
      a new Purchase Option of like tenor and date. Any such new Purchase Option
      executed and delivered as a result of such loss, theft, mutilation or
      destruction shall constitute a substitute contractual obligation on the part
      of
      the Company.

     

    5. Warrant
      Redemption.

     

    Notwithstanding
      anything to the contrary contained herein or in that certain Warrant Agreement,
      dated as of February , 2008, between the Company and American Stock Transfer
      & Trust Company, as Warrant Agent (the “Warrant
      Agreement”),
      (i)
      this Purchase Option shall, to the extent not earlier exercised in full, be
      automatically exercised, immediately prior to a redemption of the Company’s
      outstanding warrants pursuant to Section 6 of the Warrant Agreement (provided
      that notice is provided to the Holder on the same terms as provided to the
      holders of Warrants pursuant to the Warrant Agreement), and (ii) each Warrant
      that is part of a Unit issued hereunder upon such automatic conversion shall
      be
      redeemed by the Company as part of such redemption for the Redemption
      Price.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    As
      provided in the Warrant Agreement, the Company may not issue or deliver any
      securities pursuant to the exercise of a Warrant and may not settle the Warrant
      exercise unless a registration statement under the Act with respect to the
      Common Stock underlying the Public Warrants is effective. In the event that
      a
      registration statement with respect to the Common Stock underlying the Public
      Warrants is not effective under the Act, no holder of any Warrant shall be
      entitled to exercise such Warrant and such Warrant may have no value and expire
      worthless. In no event may the Company net cash settle the warrant exercise.
      Warrants may not be exercised by, or securities issued to, any registered holder
      in any state in which such exercise would be unlawful. In the event that a
      registration statement is not effective for the exercised Warrants, the
      purchaser of a unit containing such Warrant will have paid the full purchase
      price for the unit solely for the shares included in such unit.

     

    6. Adjustments.

     

    6.1 Adjustments
      to Exercise Price and Number of Securities. The
      Exercise Price and the number of Units underlying this Purchase Option shall
      be
      subject to adjustment from time to time as hereinafter set forth:

     

    6.1.1 Stock
      Dividends—Split-Ups.
      If
      after the date hereof, and subject to the provisions of Section 6.3 below,
      the
      number of outstanding shares of Common Stock is increased by a stock dividend
      payable in shares of Common Stock or by a split-up of shares of Common Stock
      or
      other similar event, then, on the effective date thereof, the number of shares
      of Common Stock underlying each of the Units purchasable hereunder shall be
      increased in proportion to such increase in outstanding shares. In such case,
      the number of shares of Common Stock, and the exercise price applicable thereto,
      underlying the Warrants underlying each of the Units purchasable hereunder
      shall
      be adjusted in accordance with the terms of the Warrants (even though such
      Warrants shall not yet have been issued). For example, if the Company declares
      a
      two-for-one stock dividend and at the time of such dividend this Purchase Option
      is for the purchase of one Unit at $7.20 per whole Unit (and each Warrant
      underlying the Units is exercisable for $8.64 per share), upon effectiveness
      of
      the dividend, this Purchase Option will be adjusted to allow for the purchase
      of
      one Unit at $7.20 per Unit, each Unit entitling the holder to receive two shares
      of Common Stock and two Warrants (each Warrant exercisable for $4.32 per
      share).

     

    6.1.2 Aggregation
      of Shares.
      If
      after the date hereof, and subject to the provisions of Section 6.3, the number
      of outstanding shares of Common Stock is decreased by a consolidation,
      combination or reclassification of shares of Common Stock or other similar
      event, then, on the effective date thereof, the number of shares of Common
      Stock
      underlying each of the Units purchasable hereunder shall be decreased in
      proportion to such decrease in outstanding shares. In such case, the number
      of
      shares of Common Stock, and the exercise price applicable thereto, underlying
      the Warrants underlying each of the Units purchasable hereunder shall be
      adjusted in accordance with the terms of the Warrants (even though such Warrants
      shall not yet have been issued).

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    6.1.3 Replacement
      of Securities upon Reorganization, etc.
      In case
      of any reclassification or reorganization of the outstanding shares of Common
      Stock other than a change covered by Section 6.1.1 or 6.1.2 hereof or that
      solely affects the par value of such shares of Common Stock, or in the case
      of
      any merger or consolidation of the Company with or into another corporation
      (other than a consolidation or merger in which the Company is the continuing
      corporation and that does not result in any reclassification or reorganization
      of the outstanding shares of Common Stock), or in the case of any sale or
      conveyance to another corporation or entity of the property of the Company
      as an
      entirety or substantially as an entirety in connection with which the Company
      is
      dissolved, the Holder of this Purchase Option shall have the right thereafter
      (until the expiration of the right of exercise of this Purchase Option) to
      receive upon the exercise hereof, for the same aggregate Exercise Price payable
      hereunder immediately prior to such event, the kind and amount of shares of
      stock or other securities or property (including cash) receivable upon such
      reclassification, reorganization, merger or consolidation, or upon a dissolution
      following any such sale or transfer, by a Holder of the number of shares of
      Common Stock of the Company obtainable upon exercise of this Purchase Option
      and
      the underlying Warrants immediately prior to such event; and if any
      reclassification also results in a change in shares of Common Stock covered
      by
      Section 6.1.1 or 6.1.2, then such adjustment shall be made pursuant to Sections
      6.1.1, 6.1.2 and this Section 6.1.3. The provisions of this Section 6.1.3 shall
      similarly apply to successive reclassifications, reorganizations, mergers or
      consolidations, sales or other transfers.

     

    6.1.4 Changes
      in Form of Purchase Option.
      This
      form of Purchase Option need not be changed because of any change pursuant
      to
      this Section, and Purchase Options issued after such change may state the same
      Exercise Price and the same number of Units as are stated in the Purchase
      Options initially issued pursuant to this Agreement. The acceptance by any
      Holder of the issuance of new Purchase Options reflecting a required or
      permissive change shall not be deemed to waive any rights to an adjustment
      occurring after the Commencement Date or the computation thereof.

     

    6.2 Substitute
      Purchase Option. In
      case
      of any consolidation of the Company with, or merger of the Company with, or
      merger of the Company into, another corporation (other than a consolidation
      or
      merger which does not result in any reclassification or change of the
      outstanding Common Stock), the corporation formed by such consolidation or
      merger shall execute and deliver to the Holder a supplemental Purchase Option
      providing that the holder of each Purchase Option then outstanding or to be
      outstanding shall have the right thereafter (until the stated expiration of
      such
      Purchase Option) to receive, upon exercise of such Purchase Option, the kind
      and
      amount of shares of stock and other securities and property receivable upon
      such
      consolidation or merger, by a holder of the number of shares of Common Stock
      of
      the Company for which such Purchase Option might have been exercised immediately
      prior to such consolidation, merger, sale or transfer. Such supplemental
      Purchase Option shall provide for adjustments which shall be identical to the
      adjustments provided in Section 6. The above provision of this Section shall
      similarly apply to successive consolidations or mergers.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    6.3 Elimination
      of Fractional Interests. The
      Company shall not be required to issue certificates representing fractions
      of
      shares of Common Stock or Warrants upon the exercise of this Purchase Option,
      nor shall it be required to issue scrip or pay cash in lieu of any fractional
      interests, it being the intent of the parties that all fractional interests
      shall be eliminated by rounding any fraction up or down to the nearest whole
      number of Warrants, shares of Common Stock or other securities, properties
      or
      rights.

     

    7. Reservation
      and Listing.

     

    The
      Company shall at all times reserve and keep available out of its authorized
      shares of Common Stock, solely for the purpose of issuance upon exercise of
      this
      Purchase Option or the Warrants underlying this Purchase Option, such number
      of
      shares of Common Stock or other securities, properties or rights as shall be
      issuable upon the exercise thereof. The Company covenants and agrees that,
      upon
      exercise of this Purchase Option and payment of the Exercise Price therefor,
      all
      shares of Common Stock and other securities issuable upon such exercise shall
      be
      duly and validly issued, fully paid and non-assessable and not subject to
      preemptive rights of any stockholder. The Company further covenants and agrees
      that upon exercise of the Warrants underlying this Purchase Option and payment
      of the respective Warrant exercise price therefor, all shares of Common Stock
      and other securities issuable upon such exercise shall be duly and validly
      issued, fully paid and non-assessable and not subject to preemptive rights
      of
      any stockholder. As long as this Purchase Option shall be outstanding, the
      Company shall use its best efforts to cause all (i) Units issuable upon exercise
      of this Purchase Option, (ii) shares of Common Stock included in the Units
      issuable upon exercise of this Purchase Option, (iii) Warrants included in
      the
      Units issuable upon exercise of this Purchase Option and (iv) shares of Common
      Stock issuable upon exercise of the Warrants included in the Units issuable
      upon
      exercise of this Purchase Option to be listed (subject to official notice of
      issuance) on all securities exchanges (or, if applicable on the Nasdaq National
      Market, SmallCap Market, OTC Bulletin Board or any successor trading market)
      on
      which the Units, the Common Stock or the Public Warrants issued to the public
      in
      connection herewith may then be listed and/or quoted.

     

    8. Certain
      Notice Requirements.

     

    8.1 Holder’s
      Right to Receive Notice. Nothing
      herein shall be construed as conferring upon the Holders the right to vote
      or
      consent as a stockholder for the election of directors or any other matter,
      or
      as having any rights whatsoever as a stockholder of the Company. If, however,
      at
      any time prior to the expiration of this Purchase Option and its exercise,
      any
      of the events described in Section 8.2 shall be proposed, then, in one or more
      of said events, the Company shall give written notice of such event at least
      fifteen days prior to the date fixed as a record date or the date of closing
      the
      transfer books for the determination of the stockholders entitled to such
      dividend, distribution, conversion or exchange of securities or subscription
      rights, or entitled to vote on (or notice of) such proposed dissolution,
      liquidation, winding up or sale, or entitled to such notice of redemption
      pursuant to Section 5 hereof. Such notice shall specify such record date or
      the
      date of the closing of the transfer books, as the case may be. Notwithstanding
      the foregoing, the Company shall deliver to each Holder a copy of each notice
      given to the other stockholders of the Company at the same time and in the
      same
      manner that such notice is given to the stockholders.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    8.2 Events
      Requiring Notice. The
      Company shall be required to give the notice described in this Section 8 upon
      one or more of the following events: (i) if the Company shall take a record
      of
      the holders of its shares of Common Stock for the purpose of entitling them
      to
      receive a dividend or distribution payable otherwise than in cash, or a cash
      dividend or distribution payable otherwise than out of retained earnings, as
      indicated by the accounting treatment of such dividend or distribution on the
      books of the Company, (ii) the Company shall offer to all the holders of its
      Common Stock any additional shares of capital stock of the Company or securities
      convertible into or exchangeable for shares of capital stock of the Company,
      or
      any option, right or warrant to subscribe therefor, (iii) a dissolution,
      liquidation or winding up of the Company (other than in connection with a
      consolidation or merger) or a sale of all or substantially all of its property,
      assets and business shall be proposed, (iv) if the Company shall delivery a
      notice to holders of the warrants of a redemption pursuant to Section 6.2 of
      the
      Warrant Agreement or (v) if the Company shall deliver a notice to the Holder
      pursuant to Section 5 of this Purchase Option.

     

    8.3 Notice
      of Change in Exercise Price. The
      Company shall, promptly after an event requiring a change in the Exercise Price
      pursuant to Section 6 hereof, send notice to the Holders of such event and
      change (“Price
      Notice”).
      The
      Price Notice shall describe the event causing the change and the method of
      calculating same and shall be certified as being true and accurate by the
      Company’s President and Chief Executive Officer.

     

    8.4 Transmittal
      of Notices. All
      notices, requests, consents and other communications under this Purchase Option
      shall be in writing and shall be deemed to have been duly made when hand
      delivered, or mailed by express mail or private courier service:

     

    (i)
      if to
      the registered Holder of this Purchase Option, to the address of such Holder
      as
      shown on the books of the Company, with a copy to:

     

    Gersten
      Savage LLP

    600
      Lexington Ave.

    New
      York,
      NY 10022

    Fax:
      (212) 980-5192

    Attention:
      Arthur S. Marcus, Esq.

    

    or
      (ii)
      if to the Company, to the following address or to such other address as the
      Company may designate by notice to the Holders:

     

    Pacific
      Restaurant Holdings, Inc.

    804
      Pier
      View Way, Suite 208

    Oceanside,
      California 92054

    Attention:
      John M. Creed

    

    With
      a
      copy to:

     

    Pillsbury
      Winthrop Shaw Pittman LLP

    1540
      Broadway

    New
      York,
      New York 10036

    Attn:
      Ronald A. Fleming, Jr., Esq.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    9. Miscellaneous.

     

    9.1 Amendments.
      The
      Company and the Holder may from time to time supplement or amend this Purchase
      Option without the approval of any of the Holders in order to cure any
      ambiguity, to correct or supplement any provision contained herein that may
      be
      defective or inconsistent with any other provisions herein, or to make any
      other
      provisions in regard to matters or questions arising hereunder that the Company
      and the Holder may deem necessary or desirable and that the Company and the
      Holder deem shall not adversely affect the interest of the Holders. All other
      modifications or amendments shall require the written consent of and be signed
      by the party against whom enforcement of the modification or amendment is
      sought.

     

    9.2 Headings.
      The
      headings contained herein are for the sole purpose of convenience of reference,
      and shall not in any way limit or affect the meaning or interpretation of any
      of
      the terms or provisions of this Purchase Option.

     

    9.3 Entire
      Agreement. This
      Purchase Option (together with the other agreements and documents being
      delivered pursuant to or in connection with this Purchase Option) constitutes
      the entire agreement of the parties hereto with respect to the subject matter
      hereof, and supersedes all prior agreements and understandings of the parties,
      oral and written, with respect to the subject matter hereof.

     

    9.4 Binding
      Effect. This
      Purchase Option shall inure solely to the benefit of and shall be binding upon,
      the Holder and the Company and their permitted assignees, respective successors,
      legal representative and assigns, and no other person shall have or be construed
      to have any legal or equitable right, remedy or claim under or in respect of or
      by virtue of this Purchase Option or any provisions herein
      contained.

     

    9.5 Governing
      Law; Submission to Jurisdiction. This
      Purchase Option shall be governed by and construed and enforced in accordance
      with the laws of the State of New York, without giving effect to conflict of
      laws. The Company hereby agrees that any action, proceeding or claim against
      it
      arising out of, or relating in any way to this Purchase Option may be brought
      and enforced in the courts of the State of New York or of the United States
      of
      America for the Southern District of New York, and irrevocably submits to such
      jurisdiction. Any process or summons to be served upon the Company may be served
      by transmitting a copy thereof by registered or certified mail, return receipt
      requested, postage prepaid, addressed to it at the address set forth in Section
      8 hereof. Such mailing shall be deemed personal service and shall be legal
      and
      binding upon the Company in any action, proceeding or claim. The Company and
      the
      Holder agree that the prevailing party(ies) in any such action shall be entitled
      to recover from the other party(ies) all of its reasonable attorneys’ fees and
      expenses relating to such action or proceeding and/or incurred in connection
      with the preparation therefor.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    9.6 Waiver,
      Etc. The
      failure of the Company or the Holder to at any time enforce any of the
      provisions of this Purchase Option shall not be deemed or construed to be a
      waiver of any such provision, nor to in any way affect the validity of this
      Purchase Option or any provision hereof or the right of the Company or any
      Holder to thereafter enforce each and every provision of this Purchase Option.
      No waiver of any breach, non-compliance or non-fulfillment of any of the
      provisions of this Purchase Option shall be effective unless set forth in a
      written instrument executed by the party or parties against whom or which
      enforcement of such waiver is sought; and no waiver of any such breach,
      non-compliance or non-fulfillment shall be construed or deemed to be a waiver
      of
      any other or subsequent breach or non-compliance.

     

    9.7 Execution
      in Counterparts. This
      Purchase Option may be executed in one or more counterparts, and by the
      different parties hereto in separate counterparts, each of which shall be deemed
      to be an original, but all of which taken together shall constitute one and
      the
      same agreement, and shall become effective when one or more counterparts has
      been signed by each of the parties hereto and delivered to each of the other
      parties hereto.

     

    9.8 Exchange
      Agreement. As
      a
      condition of the Holder’s receipt and acceptance of this Purchase Option, Holder
      agrees that, at any time prior to the complete exercise of this Purchase Option
      by Holder, if the Company and the Holder enter into an agreement (“Exchange
      Agreement”)
      pursuant to which they agree that all outstanding Purchase Options will be
      exchanged for securities or cash or a combination of both, then Holder shall
      agree to such exchange and become a party to the Exchange
      Agreement.

     

    [Remainder
      of this page intentionally left blank; signature page
      follows.]

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Purchase Option to be signed by
      its
      duly authorized officer as of the    day
      of
      February, 2008.

     

    
      	 	
              PACIFIC
                RESTAURANT HOLDINGS, INC.

            
	 	 
	 	
              By:

            	
               

            
	 	 	
              Name:
                John M. Creed

              Title:
                Chief Executive Officer and
                Director

            

    

    
 

    
      [Unit
        Purchase Option]

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Form
      to be used to exercise Purchase Option:

    

    Pacific
      Restaurant Holdings, Inc.

    804
      Pier
      View Way, Suite 208

    Oceanside,
      California 92054

    Attention:
      John M. Creed

    

    Date:
      ____________,
      20__

    

    The
      undersigned hereby elects irrevocably to exercise all or a portion of the within
      Purchase Option and to purchase _________Units of Pacific Restaurant Holdings,
      Inc. and hereby makes payment of $____________
      (at the
      rate of $7.20 per Unit) in payment of the Exercise Price pursuant thereto.
      Please issue the Common Stock and Warrants as to which this Purchase Option
      is
      exercised in accordance with the instructions given below.

     

    or

     

    The
      undersigned hereby elects irrevocably to convert its right to purchase
      _________Units purchasable under the within Purchase Option by surrender of
      the
      unexercised portion of the attached Purchase Option (with a “Value” based of
      $____________ based on a “Market Price” of  $____________).
      Please issue the securities comprising the Units as to which this Purchase
      Option is exercised in accordance with the instructions given
      below.

    

    
      	 	
              NOTICE:
                The signature to this assignment must correspond with the name as
                written
                upon the face of the purchase option in every particular, without
                alteration or enlargement or any change whatever.

            
	
              Signature(s)
                Guaranteed: 

            	 

    

    

    THE
      SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS,
      STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP
      IN
      AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE
      17Ad-15).

    

    INSTRUCTIONS
      FOR REGISTRATION OF SECURITIES 

    
      	
              Name
                

            	 	 
	 	
              (Print
                in Block Letters)

               

            	 
	
              Address
                

            	 	 
	 	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Form
      to be used to assign Purchase Option:

    

    ASSIGNMENT

    

    (To
      be
      executed by the registered Holder to effect a transfer of the within Purchase
      Option):

     

    FOR
      VALUE
      RECEIVED, _____________________ does hereby sell, assign and transfer unto
      the
      right to purchase ____________Units of Pacific Restaurant Holdings, Inc.
      (“Company”)
      evidenced by the within Purchase Option and does hereby authorize the Company
      to
      transfer such right on the books of the Company.

    

    Dated:
      ____________,
      200__

    

    
      	 	
              Signature
                

            	 

	 	 	 
	 	
              NOTICE:
                The signature to this assignment must correspond with the name as
                written
                upon the face of the purchase option in every particular, without
                alteration or enlargement or any change whatever.

            
	
              Signature(s)
                Guaranteed: 

            	 

    

    

    THE
      SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS,
      STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP
      IN
      AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE
      17Ad-15).

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