Document:

Cancellation
      Agreement of the Equity Transfer Contract

    

    Equity
      Transfer Contract

    Party
      A
      (Transferee): Shanghai Wanxing Bio-Pharmaceutical Co., Ltd

    

    Equity
      Transfer Contract

    Party
      B
      (Transferor): Liang Hong, Sun Zhigang, Gu Mintong, Dai Jianping, Zhao
      Suqin

    

    [The
      registered capital of the company is RMB 10 million: Lianghong holds 83.5%
      shares; Sun Zhigang holds 7% shares; Gu Mintong holds 5% shares; Dai Jianping
      holds 3% shares; Zhao Suqin holds 1.5% shares]

    

    Whereas:

     

    
      1. 
        On
        June 25, 2007, Party A and Party B entered into a Memorandum in which Party
        B
        agreed to transfer 90% of the equity of Suzhou Boai Medical Development Co.,
        Ltd. to Party A.

    

     

    On
      August
      6, 2007, Party A and Party B signed the Equity Transfer Contract

    

    
      2. 
        Party
        A
        paid the deposit RMB 2 million and part equity transfer fee RMB 3.4 million
        to
        party B on July 4, 2007 and August 7, 2007, respectively under conditions
        of the
        Memorandum and Equity Transfer Contract.

    

    

    3.
      According to the Equity Registration Change Approval of Suzhou Industry and
      Commerce Administration Bureau on August 31, 2007, Liang Hong registered and
      actually paid capital RMB 1 million; Shanghai Wanxing Bio-Pharmaceutical Co.,
      Ltd registered and actually paid capital RMB 9 million. (Note: received payments
      from Party A including the deposit RMB 2 million and equity transfer fee RMB
      3.4
      million).

    

    Now,
      therefore, in
      consideration of the mutual friendly consultation, based on equality
      and mutual benefit principals,
      BOTH PARTIES HERETO COVENANT AND AGREE WITH EACH OTHER
      as
      follows:

    

    1.
      On
      November 22, 2007, Party B proposed to terminate the Equity Transfer Contract
      signed on August 6, 2007; On December 25, 2007, Party A agreed to terminate
      the
      Equity Transfer Contract. Accordingly, the Equity Transfer Contract was
      cancelled through the negotiation of both parties.

    

    2.
      Party
      A agrees to cooperate with Party B on the registration change since the date
      this agreement taken into effect and restores the equity registry of Suzhou
      Boai
      Medical Development Co., Ltd. to the original status before the Equity Transfer
      Contract was entered into. Party A shall revise related rules of articles
      of association as well and try to complete registration change before January
      28, 2008.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    3.
      Party
      B shall cooperate with Party A for the 2007 annual audit on Suzhou Boai Medical
      Development Co., Ltd.(Proposed dates are February 18-March 3,
      2008).

    

    4.
      Party
      A agrees that:

     

    I.
      Party
      B will not return the paid deposit RMB 2 million to Party A.

     

    II.
      Party
      A agrees to pay Party B RMB 600,000 for the economic loss, which will be
      deducted from the RMB 3.4 million equity transfer fee.

     

    III.
      Party B shall return the equity transfer fee RMB 2 million to Party A within
      3
      days after this agreement is signed by both parties.

     

    IV.
      Party
      B shall pay RMB 800,000 in full to Party A within 5 days when the 2007 annual
      audit on Suzhou Boai Medical Development Co., Ltd. is completed and Party A
      returns all original files, confidential information and carriers to Suzhou
      Boai
      Medical Development Co., Ltd.

    

    Accordingly,
      all the capitals related to the equity transfer are clear.

    

    5.
      After
      the Equity Transfer Contract is terminated, term 2 (confidential information
      scope), 4 (liability) and 5 (liability) of the Confidentiality Contract signed
      on April 28, 2007 shall be binding upon Party A (which is Party B in the
      Confidentiality Contract as the information receptor); Party A shall continue
      complying with the Confidentiality Contract.

    Party
      A
      shall not use/publish the confidential information of Suzhou Boai Medical
      Development Co., Ltd. or disclose to any third party for any reason. Otherwise
      Party A shall take all law responsibilities and compensate for all economic
      loss
      of Party B.

    

    6.
      Both
      parties should strictly execute this agreement. All
      disputes arising from the execution of this agreement shall be settled through
      friendly consultations. In case no settlement can be reached, the case in
      dispute shall then be submitted to the local court where this agreement is
      fulfilled.

    

    7.
      This
      agreement will be effective on the date stamped or signed by both
      parties.

    

    The
      contract is made out in quadruplicate and each party holds two with equal legal
      effect.

    

    Party
      A:
      Shanghai Wanxing Bio-Pharmaceutical Co., Ltd

    Authorized
      Representative: /s/ Zhuangzhong

    

    January
      22, 2008

     

    Party
      B:
      /s/ Lianghong, /s/ Dai Jianping, /s/ Sun Zhigang, /s/ Gu Mintong, /s/
      Zhao
      Suqin

     

    January
      22, 2008THIS
      WARRANT AND THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THESE SECURITIES HAVE
      BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH,
      THE
      DISTRIBUTION THEREOF. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR
      TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT UNDER THE ACT IS IN EFFECT
      AS TO
      THESE SECURITIES OR (2) THERE IS AN OPINION OF COUNSEL, SATISFACTORY TO THE
      CORPORATION, THAT AN EXEMPTION THEREFROM IS AVAILABLE.

     

    NEW
      GENERATION BIOFUELS HOLDINGS, INC.

    WARRANT

    TO
      PURCHASE COMMON STOCK

     

    Issue
      Date:   ____________,
      2008

     

    THIS
      WARRANT IS TO CERTIFY THAT,
      _________________ (the “Purchaser”), is entitled to purchase from New Generation
      Biofuels Holdings, Inc., a Florida corporation (the “Company”), ________________
      shares of the Company’s common stock, par value $.001 per share (the
“Common
      Stock”),
      at
      the Exercise Price (as defined below). 

     

    Section
      1. Certain
      Definitions.

     

    As
      used
      in this Warrant, unless the context otherwise requires:

     

    “Exercise
      Price”
shall
      mean $6.25 per share, as adjusted from time to time pursuant to Section
      3
      hereof.

     

    “Securities
      Act”
shall
      mean the Securities Act of 1933, as amended.

     

    “Warrant”
shall
      mean this Warrant and all additional or new warrants issued upon division or
      combination of, or in substitution for, this Warrant. All such additional or
      new
      warrants shall at all times be identical as to terms and conditions and date,
      except as to the number of shares of Warrant Stock for which they may be
      exercised.

     

    “Warrantholder”
shall
      mean the Purchaser, as the initial holder of this Warrant, and its nominees,
      successors or assigns, including any subsequent holder of this Warrant to whom
      it has been legally transferred.

     

    “Warrant
      Stock”
shall
      mean the shares of the Company’s Common Stock purchasable by the holder of this
      Warrant upon the exercise of this Warrant.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      2. Exercise
      of Warrant.

     

    (a) At
      any
      time after the six month anniversary of the Issue Date but prior to the fifth
      anniversary of the Issue Date (the “Expiration
      Date”),
      the
      Purchaser may at any time and from time to time exercise this Warrant, in whole
      or in part.

     

    (b) (i) The
      Warrantholder shall exercise this Warrant by means of delivering to the Company
      at its office identified in Section
      14
      hereof
      (i) a written notice of exercise, including the number of shares of Warrant
      Stock to be delivered pursuant to such exercise, (ii) this Warrant and (iii)
      payment equal to the Exercise Price in accordance with Section
      2(b)(ii).
      In the
      event that any exercise shall not be for all shares of Warrant Stock purchasable
      hereunder, a new Warrant registered in the name of the Warrantholder, of like
      tenor to this Warrant and for the remaining shares of Warrant Stock purchasable
      hereunder, shall be delivered to the Warrantholder within ten (10) days after
      any such exercise. Such notice of exercise shall be in the Subscription Form
      set
      out at the end of this Warrant.

     

    (ii) The
      Warrantholder shall pay the Exercise Price to the Company either by cash,
      certified check to the order of the Company or wire transfer to an account
      specified by the Company. At any time following the six month anniversary of
      the
      Issue Date and provided that the Warrant Stock is not then registered for resale
      pursuant to an effective registration statement under the Securities Act, then,
      in addition to the method of payment set forth in the immediately preceding
      sentence and in lieu of any cash payment required thereby, this Warrant may
      also
      be exercised at such time by means of a “cashless exercise” in which the
      Warrantholder shall be entitled to receive a certificate for the number of
      shares of Warrant Stock computed using the following formula:

     

    X
      =
Y
      (A-B)

    A

    

    
      	 	
              Where

            	
              (X)
                = 

            	
              the
                number of shares of Warrant Stock to be issued to the
                Warrantholder;

            

    

     

    
      	 	 	
              (Y)
                =

            	
              the
                number of shares of Warrant Stock issuable upon exercise of this
                Warrant
                in accordance with the terms of this Warrant by means of a cash exercise
                rather than a cashless exercise;

            

    

     

    (A)
      =
 the
      Market Price (as defined below); and

     

    
      	 	 	
              (B)
                =

            	
              the
                Exercise Price of this Warrant, as adjusted from time to
                time.

            

    

     

    
      
        
        

      

      
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          2 -

        
          

        

      

      
        
        

      

       

    

    Solely
      for the purposes of this paragraph, Market Price shall be calculated as of
      the
      Trading Day (defined for this purpose as any day on which the equity securities
      markets are generally open for trading) immediately preceding the date which
      the
      subscription form attached hereto is deemed to have been sent to the Company
      pursuant to Section
      14
      hereof
      (such preceding date, the “Valuation
      Date”).
      As
      used herein, the phrase “Market
      Price”
shall
      mean (i) if the Warrant Stock is listed or admitted for trading on a national
      securities exchange, an automated quotation system or the Over the Counter
      Bulletin Board, the last reported sale price per share of the Warrant Stock
      on
      the Valuation Date, or, in case no such reported sale takes place on such day
      or
      is reported, then the average of the last reported per share bid and ask prices
      for shares of the Warrant Stock on such date (or if such bid and ask prices
      are
      not available on such date, the most recent preceding date), in either case
      as
      officially reported by such securities exchange, quotation system or Bulletin
      Board on which the Common Stock is listed or admitted to trading, (ii) if not
      so
      listed or admitted for trading, the fair market value of a share of the Warrant
      Stock as determined by the Company’s board of directors in good faith, or (iii)
      if such exercise is in connection with a merger or consolidation of the Company
      in which the Company is not the survivor or in which the Warrant Stock is
      exchanged for cash or other securities or a sale of all or substantially all
      of
      the assets of the Company (collectively, a “Sale”),
      the
      implied price per share of the Warrant Stock resulting from such
      Sale.

     

    (c) Upon
      exercise of this Warrant and delivery of the Subscription Form with proper
      payment relating thereto, the Company shall cause to be executed and delivered
      to the Warrantholder a certificate or certificates representing the aggregate
      number of fully-paid and nonassessable shares of Warrant Stock issuable upon
      such exercise.

     

    (d) The
      stock
      certificate or certificates for Warrant Stock to be delivered in accordance
      with
      this Section
      2
      shall be
      in such denominations as may be specified in said notice of exercise and shall
      be registered in the name of the Warrantholder or such other name or names
      as
      shall be designated in said notice. Such certificate or certificates shall
      be
      deemed to have been issued and the Warrantholder or any other person so
      designated to be named therein shall be deemed to have become the holder of
      record of such shares, including to the extent permitted by law the right to
      vote such shares or to consent or to receive notice as stockholders, as of
      the
      time said notice is delivered to the Company as aforesaid.

     

    (e) The
      Company shall pay all expenses payable in connection with the preparation,
      issue
      and delivery of stock certificates under this Section
      2;
      provided,
      however,
      that
      the Warrantholder shall be responsible for all transfer taxes resulting from
      the
      fact that any certificate issued in respect of Warrant Stock is not in the
      name
      of the Warrantholder.

     

    (f) All
      shares of Warrant Stock issuable upon the exercise of this Warrant in accordance
      with the terms hereof shall be validly issued, fully paid and nonassessable,
      and
      free from all liens and other encumbrances thereon, other than liens or other
      encumbrances created by the Warrantholder or restrictions upon transfer under
      federal or state securities laws.

     

    (g) In
      no
      event shall any fractional share of Warrant Stock of the Company be issued
      upon
      any exercise of this Warrant. If, upon any exercise of this Warrant, the
      Warrantholder would, except as provided in this paragraph, be entitled to
      receive a fractional share of Warrant Stock, then the Company shall either
      (a)
      deliver in cash to such holder an amount equal to such fractional interest,
      or
      (b) issue a full share in lieu of such fractional share.

     

    
      
        
        

      

      
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          3 -

        
          

        

      

      
        
        

      

       

    

    Section
      3. Adjustment
      of Exercise Price and Warrant Stock.

     

    (a) If,
      at
      any time prior to the Expiration Date, the number of outstanding shares of
      Common Stock is (i) increased by a stock dividend payable in shares of Warrant
      Stock or by a subdivision or split-up of shares of Common Stock, or (ii)
      decreased by a combination of shares of Common Stock, then, following the record
      date fixed for the determination of holders of Common Stock entitled to receive
      the benefits of such stock dividend, subdivision, split-up, or combination,
      the
      Exercise Price shall be adjusted to a new amount equal to the product of (A)
      the
      Exercise Price in effect on such record date, and (B) the quotient obtained
      by
      dividing (x) the number of shares of Warrant Stock into which this Warrant
      would
      be exercisable on such record date (without giving effect to the event referred
      to in the foregoing clause (i) or (ii)), by (y) the number of shares of Warrant
      Stock which would be outstanding immediately after the event referred to in
      the
      foregoing clause (i) or (ii), if this Warrant had been exercised immediately
      prior to such record date.

     

    (b) Upon
      each
      adjustment of the Exercise Price as provided in Section
      3(a),
      the
      Warrantholder shall thereafter be entitled to subscribe for and purchase, at
      the
      Exercise Price resulting from such adjustment, the number of shares of Warrant
      Stock equal to the product of (i) the number of shares of Warrant Stock into
      which this Warrant would be exercisable prior to such adjustment and (ii) the
      quotient obtained by dividing (A) the Exercise Price existing prior to such
      adjustment by (B) the new Exercise Price resulting from such
      adjustment.

     

    (c) If,
      at
      any time prior to the first to occur of (i) the first anniversary of the
      Registration Date or (ii) 18 months after the Series B Issue Date, the Company
      issues any Additional Warrants with an Additional Warrant Exercise Price or
      Options with an Option Exercise Price less than the Exercise Price of this
      Warrant on the date of and immediately prior to such issuance, then the Exercise
      Price of this Warrant shall be reduced, concurrently with the issuance of such
      Additional Warrants or Options, to the Additional Warrant Exercise Price at
      which such Additional Warrants have been issued or the Option Exercise Price
      at
      which such Options have been issued, as the case may be; provided,
      however,
      that
      the Exercise Price of this Warrant shall not be reduced below $3.00 per share
      based on the adjustments contained in this Section 3(c), whether a single
      adjustment or multiple adjustments. This provision shall not apply to Additional
      Warrants or Options issued or issuable for Shares Acquired from
      Affiliate/Partner.

     

    The
      following definitions shall apply to this section:

    

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

     

    
      
        
        

      

      
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          4 -

        
          

        

      

      
        
        

      

    

     

    “Additional
      Warrants”
shall
      mean warrants to subscribe for, purchase or otherwise acquire Common Stock
      or
      Convertible Securities, which warrants are issued by the Company in a Financing
      Transaction.

    

    “Convertible
      Securities”
shall
      mean evidence of indebtedness, preferred stock or other securities directly
      or
      indirectly convertible into or exchangeable for Common Stock.

     

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

    

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

    

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

     

    
      
        
        

      

      
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          5 -

        
          

        

      

      
        
        

      

    

     

    “Options”
shall
      mean shall mean options to subscribe for, purchase or otherwise acquire Common
      Stock or Convertible Securities granted or issued by the Company in a Financing
      Transaction, but excluding Employee Awards.

    

    “Registration
      Date”
shall
      mean the first date on which a registration statement that registers the resale
      of the Warrant Stock is declared effective by the Securities and Exchange
      Commission under the Securities Act.

    

    “Series
      B Issue Date”
shall
      mean the issue date on which shares of the Series B Non-Redeemable Convertible
      Preferred Stock of the Company is first issued. 

    

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

    

    Section
      4. Division
      and Combination.

     

    This
      Warrant may be divided or combined with other Warrants upon presentation at
      the
      aforesaid office of the Company, together with a written notice specifying
      the
      names and denominations in which new Warrants are to be issued, signed by the
      Warrantholder or its agent or attorney. The Company shall pay all expenses
      in
      connection with the preparation, issue and delivery of Warrants under this
      Section
      4.
      The
      Company agrees to maintain at its aforesaid office books for the registration
      of
      the Warrants.

     

    Section
      5. Reclassification,
      Etc.

     

    In
      case
      of any reclassification or change of the outstanding Warrant Stock of the
      Company (other than as a result of a subdivision, combination or stock
      dividend), or in case of any consolidation of the Company with, or merger of
      the
      Company into, another corporation or other business organization (other than
      a
      consolidation or merger in which the Company is the continuing corporation
      and
      which does not result in any reclassification or change of the outstanding
      Common Stock of the Company) at any time prior to the Expiration Date, then,
      as
      a condition of such reclassification, reorganization, change, consolidation
      or
      merger, lawful provision shall be made, and duly executed documents evidencing
      the same from the Company or its successor shall be delivered to the
      Warrantholder, so that the Warrantholder shall have the right prior to the
      Expiration Date to purchase, at a total price not to exceed that payable upon
      the exercise of this Warrant, the kind and amount of shares of stock and other
      securities and property receivable upon such reclassification, reorganization,
      change, consolidation or merger by a holder of the number of shares of Warrant
      Stock of the Company which might have been purchased by the Warrantholder
      immediately prior to such reclassification, reorganization, change,
      consolidation or merger, and in any such case appropriate provisions shall
      be
      made with respect to the rights and interest of the Warrantholder to the end
      that the provisions hereof (including provisions for the adjustment of the
      Exercise Price and of the number of shares purchasable upon exercise of this
      Warrant) shall thereafter be applicable in relation to any shares of stock
      and
      other securities and property thereafter deliverable upon exercise
      hereof.

     

    
      
        
        

      

      
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          6 -

        
          

        

      

      
        
        

      

       

    

    Section
      6. Reservation
      and Authorization of Capital Stock.

     

    The
      Company shall, at all times on and after the date hereof, reserve and keep
      available for issuance such number of its authorized but unissued shares of
      Common Stock as will be sufficient to permit the exercise in full of all
      outstanding Warrants.

     

    Section
      7. Rights
      of Stockholders.

     

    Nothing
      contained herein shall be construed to confer upon the holder of this Warrant,
      as such, any of the rights of a stockholder of the Company or any right to
      vote
      for the election of directors or upon any matter submitted to stockholders
      at
      any meeting thereof, or to give or withhold consent to any corporate action
      (whether upon any recapitalization, issuance of stock, reclassification of
      stock, change of par value or change of stock to no par value, consolidation,
      merger, conveyance, or otherwise) or to receive notice of meetings, or to
      receive dividends or subscription rights or otherwise until the Warrant shall
      have been exercised and the certificates representing the Warrant Stock shall
      have been issued, as provided herein.

     

    Section
      8. Stock
      and Warrant Books.

     

    The
      Company will not at any time, except upon dissolution, liquidation or winding
      up, close its stock books or warrant books so as to result in preventing or
      delaying the exercise of any Warrant.

     

    Section
      9. Limitation
      of Liability.

     

    No
      provisions hereof, in the absence of affirmative action by the Warrantholder
      to
      purchase Warrant Stock hereunder, shall give rise to any liability of the
      Warrantholder to pay the Exercise Price or as a stockholder of the Company
      (whether such liability is asserted by the Company or creditors of the
      Company).

     

    
      
        
        

      

      
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          7 -

        
          

        

      

      
        
        

      

       

    

    Section
      10. Transfer

     

    This
      Warrant may be transferred only upon the written consent of the Company, which
      approval shall not be unreasonably withheld or delayed. Any Warrants issued
      upon
      the transfer of this Warrant shall be numbered and shall be registered in a
      Warrant Register as they are issued. The Company shall be entitled to treat
      the
      registered holder of any Warrant on the Warrant Register as the owner in fact
      thereof for all purposes and shall not be bound to recognize any equitable
      or
      other claim to, or interest in, such Warrant on the part of any other person,
      and shall not be liable for any registration of transfer of Warrants that are
      registered or to be registered in the name of a fiduciary or the nominee of
      a
      fiduciary unless made with the actual knowledge that a fiduciary or nominee
      is
      committing a breach of trust in requesting such registration or transfer, or
      with the knowledge of such facts that its participation therein amounts to
      bad
      faith. This Warrant shall be transferable only on the books of the Company
      upon
      delivery thereof duly endorsed by the Holder or by his duly authorized attorney
      or representative, or accompanied by proper evidence of succession, assignment,
      or authority to transfer. In all cases of transfer by an attorney, executor,
      administrator, guardian, or other legal representative, duly authenticated
      evidence of his or its authority shall be produced. Upon any registration of
      transfer, the Company shall deliver a new Warrant or Warrants to the person
      entitled thereto. This Warrant may be exchanged, at the option of the Holder
      thereof, for another Warrant, or other Warrants of different denominations,
      of
      like tenor and representing in the aggregate a like amount, upon surrender
      to
      the Company or its duly authorized agent. Notwithstanding the foregoing, the
      Company shall have no obligation to cause Warrants to be transferred on its
      books to any person if, in the opinion of counsel to the Company, such transfer
      does not comply with the provisions of the Securities Act and the rules and
      regulations thereunder.

     

    Section
      11. Investment
      Representations; Restrictions on Warrant Stock.

     

    The
      Warrantholder, by accepting this Warrant, covenants and agrees that, at the
      time
      of exercise hereof, and at the time of any proposed transfer of Warrant Stock
      acquired upon exercise hereof, unless a current registration statement under
      the
      Securities Act shall be in effect with respect to the Warrant Stock to be issued
      upon exercise of this Warrant, such Warrantholder will deliver to the Company
      a
      written statement that the securities acquired by the Warrantholder upon
      exercise hereof are for the account of the Warrantholder or are being held
      by
      the Warrantholder as trustee, investment manager, investment advisor or as
      any
      other fiduciary for the account of the beneficial owner or owners for investment
      and are not acquired with a view to, or for sale in connection with, any
      distribution thereof (or any portion thereof) and with no present intention
      (at
      any such time) of offering and distributing such securities (or any portion
      thereof). The Warrantholder agrees that certificates representing Warrant Stock
      may bear a legend substantially as follows:

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THESE SECURITIES HAVE
      BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH,
      THE
      DISTRIBUTION THEREOF. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR
      TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT IS
      IN
      EFFECT AS TO THESE SECURITIES OR (2) THERE IS AN OPINION OF COUNSEL,
      SATISFACTORY TO THE CORPORATION, THAT AN EXEMPTION THEREFROM IS
      AVAILABLE.

     

    
      
        
        

      

      
        -
          8 -

        
          

        

      

      
        
        

      

       

    

    The
      Company agrees to include the Warrant Stock in the Company’s registration
      statement to be filed with the Securities and Exchange Commission pursuant
      to,
      and subject to the terms and conditions of, the Registration Rights Agreement
      dated March 26, 2008, among the Company, Purchaser and the other stockholders
      of
      the Company named therein (the “Registration
      Rights Agreement”).

     

    Section
      12. Loss,
      Destruction of Warrant Certificates.

     

    Upon
      receipt of evidence satisfactory to the Company of the loss, theft, destruction
      or mutilation of any warrant and, in the case of any such loss, theft or
      destruction, upon receipt of indemnity and/or security satisfactory to the
      Company or, in the case of any such mutilation, upon surrender and cancellation
      of such Warrant, the Company will make and deliver, in lieu of such lost,
      stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and
      representing the right to purchase the same aggregate number of shares of
      Warrant Stock.

     

    Section
      13. Amendments.

     

    The
      terms
      of this Warrant may be amended, and the observance of any term herein may be
      waived, but only with the written consent of the Company and the
      Warrantholder.

     

    Section
      14. Notices
      Generally.

     

    Any
      notice, request, consent, other communication or delivery pursuant to the
      provisions hereof shall be in writing and shall be sent by one of the following
      means: (i) by registered or certified first class mail, postage prepaid, return
      receipt requested; (ii) by facsimile transmission with confirmation of receipt;
      (iii) by overnight courier service; or (iv) by personal delivery, and shall
      be
      properly addressed to the Warrantholder at the last known address or facsimile
      number appearing on the books of the Company, or, except as herein otherwise
      expressly provided, to the Company at its principal executive office at New
      Generation Biofuels Holdings, Inc., 11111 Katy Freeway, Suite 910, Houston,
      Texas 77079, (Fax: (713) 973-5777), Attention: David A. Gillespie, Chief
      Executive Officer, or such other address or facsimile number as shall have
      been
      furnished to the party giving or making such notice, demand or
      delivery.

     

    Section
      15. Successors
      and Assigns.

     

    This
      Warrant shall bind and inure to the benefit of and be enforceable by the parties
      hereto and their respective permitted successors and assigns.

     

    Section
      16. Governing
      Law.

     

    In
      all
      respects, including all matters of construction, validity and performance,
      this
      Warrant and the obligations arising hereunder shall be governed by, and
      construed and enforced in accordance with, the laws of the State of Florida
      applicable to contracts made and performed in such State.

     

    
      
        
        

      

      
        -
          9 -

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Warrant to be signed in its name by its duly authorized
      officer as of the date first written above.

     

    
      	 	
              NEW
                GENERATION BIOFUELS HOLDINGS, INC.

            
	 	 
	 	 
	 	
              By:

            	        
	
            

    

     

    
      
        
        

      

      
        -
          10 -

        
          

        

      

      
        
        

      

    

     

    SUBSCRIPTION
      FORM

     

    (to
      be
      executed only upon exercise of Warrant)

    

    
      	To:	
              New
                Generation Biofuels Holdings, Inc.

            

    

    11111
      Katy Freeway, Suite 910 

    Houston,
      Texas 77079

    Attn:
      David A. Gillespie, Chief Executive Officer

    

    or
      such
      other address notified by the Company to the Holder.

    

    (1)
      The
      undersigned hereby elects to purchase _______ shares of Warrant Stock of the
      Company pursuant to the terms of the attached Warrant, and tenders herewith
      payment of the exercise price in full, together with all applicable transfer
      taxes, if any.

    

    (2)
      Payment shall take the form of (check applicable box):

    

    o in
      lawful money of the
      United States; or

    

    o
      the cancellation of such number of
      shares of Warrant Stock as is necessary, in accordance with the formula set
      forth in subsection 2(b), to exercise this Warrant with respect to the shares
      of
      Warrant Stock set forth above pursuant to the cashless exercise procedure set
      forth in subsection 2(b).

    

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

     

      
        

      

       

    

    The
      shares of Warrant Stock shall be delivered to the following:

     

    
      

    

     

    
      
 

      

    

     

    (4)
      Accredited
      Investor.
      The
      undersigned is an “accredited investor” as defined in Regulation D promulgated
      under the Securities Act of 1933, as amended.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SIGNATURE
      OF HOLDER

     

    Name
      of
      Investing Entity:

     

    
      
Signature
      of Authorized Signatory of Investing Entity:

     

    
      
Name
      of
      Authorized Signatory:

     

    
      

    

    Title
      of
      Authorized Signatory:

     

    
      
 

    
      	
              Date:

            	  	 	 

    

    
       

      
        
        

      

      
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