Document:

Exhibit 4.2

                                     WARRANT

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED OR
OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT
OR PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE
CORPORATION AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED.

WARRANT TO PURCHASE STOCK
Corporation:             CITADEL SECURITY SOFTWARE, INC., a Delaware corporation
Number of Shares:        20,000
Class of Stock:          Common
Initial Exercise Price:  $1.56
Issue Date:              August 22, 2005
Expiration Date:         August 22, 2012 (Subject to Section 4.1)

THIS WARRANT CERTIFIES THAT, for good and valuable consideration, the receipt of
which  is  hereby  acknowledged,  COMERICA  BANK  or  its assignee ("Holder") is
entitled  to  purchase  the number of fully paid and nonassessable shares of the
class  of  securities  (the  "Shares") of the corporation (the "Company") at the
initial  exercise  price  per Share (the "Warrant Price") all as set forth above
and as adjusted pursuant to Article 2 of this warrant, subject to the provisions
and  upon  the  terms  and  conditions  set  forth  in  this  warrant.

  EXERCISE.
  ---------

     Method of Exercise.  Holder may exercise this warrant by delivering this
     ------------------
warrant and a duly executed Notice of Exercise in substantially the form
attached as Appendix 1 to the principal office of the Company.  Unless Holder is
exercising the conversion right set forth in Section 1.2, Holder shall also
deliver to the Company a check for the aggregate Warrant Price for the Shares
being purchased.

     Conversion Right.  In lieu of exercising this warrant as specified in
     ----------------
Section 1.1, Holder may from time to time convert this warrant, in whole or in
part, into a number of Shares determined by dividing (a) the aggregate fair
market value of the Shares or other securities for which this warrant is being
exercised minus the aggregate Warrant Price of such Shares by (b) the fair
market value of one Share.  The fair market value of the Shares shall be
determined pursuant to Section 1.3.

     Fair Market Value.  If the Shares are traded regularly in a public market,
     -----------------
the fair market value of the Shares shall be the closing price of the Shares
reported for the business day immediately before Holder delivers its Notice of
Exercise to the Company.  If the Shares are not regularly traded in a public
market, the Board of Directors of the Company shall determine fair market value
in its reasonable good faith judgment.

     Delivery of Certificate and New Warrant.  Promptly after Holder exercises
     ---------------------------------------
or converts this warrant, the Company shall deliver to Holder certificates for
the Shares acquired and, if this warrant has not been fully exercised or
converted and has not expired, a new warrant representing the Shares not so
acquired.

     Replacement of Warrants.  On receipt of evidence reasonably satisfactory to
     -----------------------
the Company of the loss, theft, destruction or mutilation of this warrant and,
in the case of loss, theft or destruction, on delivery of an indemnity agreement
reasonably satisfactory in form and amount to the Company or, in the case of
mutilation, on surrender

                                        1
<PAGE>
and cancellation of this warrant, the Company at its expense shall execute and
deliver, in lieu of this warrant, a new warrant of like tenor.

     Repurchase on Sale, Merger, or Consolidation of the Company.
     ------------------------------------------------------------

          "Acquisition."  For the purpose of this warrant, "Acquisition" means
          --------------
any sale, license, or other disposition of all or substantially all of the
assets (including intellectual property) of the Company, or any reorganization,
consolidation, or merger of the Company where the holders of the Company's
securities before the transaction beneficially own less than 50% of the
outstanding voting securities of the surviving entity after the transaction.

          Assumption of Warrant.  If upon the closing of any Acquisition the
          ---------------------
successor entity assumes the obligations of this warrant, then this warrant
shall be exercisable for the same securities, cash, and property as would be
payable for the Shares issuable upon exercise of the unexercised portion of this
warrant as if such Shares were outstanding on the record date for the
Acquisition and subsequent closing.  The Warrant Price shall be adjusted
accordingly.  The Company shall use reasonable efforts to cause the surviving
corporation to assume the obligations of this warrant.

          Nonassumption.  If upon the closing of any Acquisition the successor
          -------------
entity does not assume the obligations of this warrant and Holder has not
otherwise exercised this warrant in full, then Holder shall have the option
either to (a) deem this warrant to have been automatically converted pursuant to
Section 1.2 and thereafter Holder shall participate in the Acquisition on the
same terms as other holders of the same class of securities of the Company; or
(b) require the Company to purchase this warrant for cash upon the closing of
the Acquisition for $31,200.

  ADJUSTMENTS TO THE SHARES
  -------------------------

     Stock Dividends, Splits, Etc.  If the Company declares or pays a dividend
     ----------------------------
on its common stock payable in common stock, or other securities, subdivides the
outstanding common stock into a greater amount of common stock, then upon
exercise of this warrant, for each Share acquired, Holder shall receive, without
cost to Holder, the total number and kind of securities to which Holder would
have been entitled had Holder owned the Shares of record as of the date the
dividend or subdivision occurred.

     Reclassification, Exchange or Substitution.  Upon any reclassification,
     ------------------------------------------
exchange, substitution, or other event that results in a change of the number
and/or class of the securities issuable upon exercise or conversion of this
warrant, Holder shall be entitled to receive, upon exercise or conversion of
this warrant, the number and kind of securities and property that Holder would
have received for the Shares if this warrant had been exercised immediately
before such reclassification, exchange, substitution, or other event.  The
Company or its successor shall promptly issue to Holder a new warrant for such
new securities or other property.  The new warrant shall provide for adjustments
which shall be as nearly equivalent as may be practicable to the adjustments
provided for in this Article 2 including, without limitation, adjustments to the
Warrant Price and to the number of securities or property issuable upon exercise
of the new warrant.  The provisions of this Section 2.2 shall similarly apply to
successive reclassifications, exchanges, substitutions, or other events.

     Adjustments for Combinations, Etc.  If the outstanding Shares are combined
     ---------------------------------
or consolidated, by reclassification or otherwise, into a lesser number of
shares, the Warrant Price shall be proportionately increased. If the outstanding
Shares are split or subdivided, including a split effected by way of a stock
dividend, by reclassification or otherwise, into a greater number of shares, the
Warrant Price shall be proportionately decreased.

     No Impairment.  The Company shall not, by amendment of its Certificate of
     -------------
Incorporation or through a reorganization, transfer of assets, consolidation,
merger, dissolution, issue, or sale of securities or any other

                                        2
<PAGE>
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms to be observed or performed under this warrant by the Company, but
shall at all times in good faith assist in carrying out all the provisions of
this Article 2 and in taking all such action as may be necessary or appropriate
to protect Holder's rights under this Article against impairment.

     Certificate as to Adjustments.  Upon each adjustment of the Warrant Price,
     -----------------------------
the Company at its expense shall promptly compute such adjustment, and furnish
Holder with a certificate of its Chief Financial Officer setting forth such
adjustment and the facts upon which such adjustment is based.  The Company
shall, upon written request, furnish Holder a certificate setting forth the
Warrant Price in effect upon the date thereof and the series of adjustments
leading to such Warrant Price.

     Fractional Shares.  No fractional Shares shall be issuable upon exercise or
     -----------------
conversion of the Warrant and the Number of Shares to be issued shall be rounded
down to the nearest whole Share.  If a fractional share interest arises upon any
exercise or conversion of the Warrant, the Company shall eliminate such
fractional share interest by paying Holder amount computed by multiplying the
fractional interest by the fair market value of a full Share.

  REPRESENTATIONS AND COVENANTS OF THE COMPANY.
  ---------------------------------------------

     Representations and Warranties.  The Company hereby represents and warrants
     -------------------------------
to the Holder as follows:

          (a)     All Shares which may be issued upon the exercise of the
purchase right represented by this warrant, and all securities, if any, issuable
upon conversion of the Shares, shall, upon issuance, be duly authorized, validly
issued, fully paid and nonassessable, and free of any liens and encumbrances
except for restrictions on transfer provided for herein or under applicable
federal and state securities laws.

     Notice of Certain Events. If the Company proposes at any time (a) to
     -------------------------
declare any dividend or distribution upon its common stock, whether in cash,
property, stock, or other securities and whether or not a regular cash dividend;
(b) to offer for subscription pro rata to the holders of any class or series of
its stock any additional shares of stock of any class or series or other rights;
(c) to effect any reclassification or recapitalization of common stock; or (d)
to merge or consolidate with or into any other corporation, or sell, lease,
license, or convey all or substantially all of its assets, or to liquidate,
dissolve or wind up, then, in connection with each such event, the Company shall
give Holder (1) at least 20 days prior written notice of the date on which a
record will be taken for such dividend, distribution, or subscription rights
(and specifying the date on which the holders of common stock will be entitled
thereto) or for determining rights to vote, if any, in respect of the matters
referred to in (a) and (b) above; and (2) in the case of the matters referred to
in (c) and (d) above at least 20 days prior written notice of the date when the
same will take place (and specifying the date on which the holders of common
stock will be entitled to exchange their common stock for securities or other
property deliverable upon the occurrence of such event).

     Registration Under Securities Act of 1933, as amended. The Company agrees
     ------------------------------------------------------
that the Shares shall be subject to the registration rights set forth on
Exhibit A, if attached.

  REPRESENTATIONS AND WARRANTIES OF THE HOLDER
  --------------------------------------------

       4.1     The Holder (and its affiliates) hereby represents and warrants to
       -------------------------------------------------------------------------
               the Company as follows:
               -----------------------
          (a)     The  Holder  is  acquiring  this  warrant and the shares to be
issued upon exercise of this Warrant (together, the "Securities") for investment
for such Holder's own account, not as a nominee or agent, and not with a view to
the  resale  or  distribution  of  any part thereof, and that such Holder has no
present  intention  of  selling,  granting  any  participation  in, or otherwise
distributing  the  same. The Holder further represents that it does not have any
contract,  undertaking,  agreement  or  arrangement  with  any  person  to sell,
transfer  or  grant  participations  to such person or to any third person, with
respect  to  any  of  the  Securities.

                                        3
<PAGE>
          (b)     The  Holder  is an "accredited investor" within the meaning of
Securities  and  Exchange  Commission  ("SEC")  Rule  501  of  Regulation  D, as
presently  in  effect.
          (c)     The  Holder  understands  that the Securities it is purchasing
are  characterized  as "restricted securities" under the federal securities laws
inasmuch  as  they  are  being  acquired  from  the Company in a transaction not
involving  a public offering and that under such laws and applicable regulations
such securities may be resold without registration under the Securities Act only
in certain limited circumstances. In this connection, the Holder represents that
it  is  familiar  with SEC Rule 144, as presently in effect, and understands the
resale  limitations  imposed  thereby  and  by  the  Securities  Act.

  MISCELLANEOUS.
  --------------

     Term: Notice of Expiration. This warrant is exercisable in whole or in
     ---------------------------
part, at any time and from time to time on or before the Expiration Date set
forth above. If this warrant has not been exercised prior to the Expiration
Date, this warrant shall be deemed to have been automatically exercised on the
Expiration Date by "cashless" conversion pursuant to Section 1.2.

     Legends. This warrant and the Shares, if the Shares are not registered at
     --------
the time of their issuance, shall be imprinted with a legend in substantially
the following form:

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN
EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR PURSUANT TO RULE 144 OR AN
OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION AND ITS COUNSEL
THAT SUCH REGISTRATION IS NOT REQUIRED.

     Compliance with Securities Laws on Transfer. This warrant and the Shares
     --------------------------------------------
issuable upon exercise of this warrant may not be transferred or assigned in
whole or in part without compliance with applicable federal and state securities
laws by the transferor and the transferee (including, without limitation, the
delivery of investment representation letters and legal opinions reasonably
satisfactory to the Company).  The Company shall not require Holder to provide
an opinion of counsel if the transfer is to an affiliate of Holder or if there
is no material question as to the availability of current information as
referenced in Rule 144(c), Holder represents that it has complied with Rule
144(d) and (e) in reasonable detail, the selling broker represents that it has
complied with Rule 144(f), and the Company is provided with a copy of Holder's
notice of proposed sale.

     Transfer Procedure. Subject to the provisions of Section 5.3, Holder may
     -------------------
transfer all or part of this warrant or the Shares issuable upon exercise of
this warrant by giving the Company notice of the portion of the warrant being
transferred setting forth the name, address and taxpayer identification number
of the transferee and surrendering this warrant to the Company for reissuance to
the transferee(s) (and Holder, if applicable); provided, however, that Holder
may transfer all or part of this warrant to its affiliates, including, without
limitation, Comerica Incorporated, at any time without notice to the Company,
and such affiliate shall then be entitled to all the rights of Holder under this
warrant and any related agreements, and the Company shall cooperate fully in
ensuring that any stock issued upon exercise of this warrant is issued in the
name of the affiliate that exercises the warrant.  The terms and conditions of
this warrant shall inure to the benefit of, and be binding upon, the Company and
the holders hereof and their respective permitted successors and assigns.

     Notices. All notices and other communications from the Company to the
     --------
Holder, or vice versa, shall be deemed delivered and effective when given
personally or mailed by first-class registered or certified mail, postage
prepaid, at such address as may have been furnished to the Company or the
Holder, as the case may be, in writing by the Company or such Holder from time
to time.  All notices to the Holder shall be addressed as follows:

                                        4
<PAGE>
               Comerica Bank
               Attn:  Warrant Administrator
               Technology and Life Sciences Division
               P.O. Box 7279
               San Francisco, CA 94120-7279
                      With a copy to
                    Comerica Bank
                    Attn:  Warrant Administrator
                    Technology and Life Sciences Division
                    5 Palo Alto Square, Suite 800
                    3000 El Camino Real
                    Palo Alto, CA 94306

     Amendments. This warrant and any term hereof may be changed, waived,
     -----------
discharged or terminated only by an instrument in writing signed by the party
against which enforcement of such change, waiver, discharge or termination is
sought.

     Attorneys' Fees.  In the event of any dispute between the parties
     ----------------
concerning the terms and provisions of this warrant, the party prevailing in
such dispute shall be entitled to collect from the other party all costs
incurred in such dispute, including reasonable attorneys' fees.

     Governing Law. This warrant shall be governed by and construed in
     --------------
accordance with the laws of the State of California, without giving effect to
its principles regarding conflicts of law.

                                               CITADEL SECURITY SOFTWARE, INC.

                                                By: /s/ Steven B. Solomon
                                                    ----------------------------
                                                Name: Steven B. Solomon
                                                     ---------------------------
                                                Title: Chairman & CEO
                                                      --------------------------

                                                By:
                                                    ----------------------------
                                                Name:
                                                     ---------------------------
                                                Title:
                                                      --------------------------

Authorized signatories under Corporate Resolutions to Borrow or an authorized
signer(s) under a resolution covering warrants must sign the warrant.

Acknowledged and Agreed:
Comerica Bank
By:/s/ David Whiting
   ----------------------------
Name: David Whiting
     --------------------------
Title: SVP
      -------------------------

                                        5
<PAGE>
APPENDIX 1
NOTICE OF EXERCISE
------------------
1.     The  undersigned  hereby  elects to purchase ______________ shares of the
Common  stock  of  Citadel  Security Software, Inc. pursuant to the terms of the
attached  warrant,  and  tenders  herewith payment of the purchase price of such
shares  in  full.
1.     The undersigned hereby elects to convert the attached warrant into shares
in  the  manner  specified  in  the  warrant.  This conversion is exercised with
respect  to  ______________  of  the  shares  covered  by  the  warrant.
[STRIKE  PARAGRAPH  THAT  DOES  NOT  APPLY.]
2.     Please  issue  a  certificate or certificates representing said shares in
the  name  of  the  undersigned  or  in  such  other name as is specified below:
          Comerica Bank
     Attn:  Warrant Administrator
     Technology and Life Sciences Division
     P.O. Box 7279
     San Francisco, CA 94120-7279
3.     The  undersigned represents it is acquiring the shares solely for its own
account  and not as a nominee for any other party and not with a view toward the
resale  or  distribution thereof except in compliance with applicable securities
laws.

COMERICA BANK or Registered Assignee

____________________________________
(Signature)

____________________________________
(Date)

                                        6
<PAGE>
                                    EXHIBIT A
                                    ---------

                               Registration Rights
                               -------------------

If (but without obligation to do so) the Company proposes to register (including
for this purpose a registration effected by the Company for stockholders other
than the Holder) any of its stock, either for its own account or the account of
a security holder or holders, under the Securities Act in connection with the
public offering of such securities (other than a registration relating solely to
the sale of securities to participants in a Company stock plan or option
agreements, an offering or sale of securities pursuant to a Form S-4 (or
successor form) registration statement, or any registration on any form which
does not include substantially the same information as would be required to be
included in a registration statement covering the sale of the "Registrable
Securities" as such term is defined below, the Company shall, at such time,
promptly give Holder written notice of such registration. Upon the written
request of the Holder given within ten (10) days after mailing of such notice by
the Company, the Company shall, subject to the provisions of this Exhibit A,
cause to be registered under the Securities Act all of the Registrable
Securities that such Holder has requested to be registered. For purposes of this
Section, Registrable Securities shall mean Shares of Company common stock
issuable upon exercise or conversion of this warrant, to the extent such shares
may not be resold under Rule 144 under the Securities Act or otherwise without
registration. It shall be a condition precedent to the obligations of the
Company to take any action pursuant to this Exhibit A with respect to the
Registrable Securities of Holder that Holder shall furnish to the Company such
information regarding itself, the Registrable Securities held by it, and the
intended method of disposition of such securities as shall be required to effect
the registration of Holders Registrable Securities, and the Holder further
agrees to indemnify and hold harmless the Company from any liability it may
incur in reliance upon any written communications of the Holder furnished in
connection with such registration; provided, however, that the indemnity
agreement contained in this Exhibit A shall not apply to amounts paid in
settlement of any such liability if such settlement is effected without the
consent of the Holder, which consent shall not be unreasonably withheld;
provide, that in no event shall any indemnity under this Exhibit A exceed the
gross proceeds from the offering received by the Holder.

                                        7EXHIBIT 4.1

                             SUBSCRIPTION AGREEMENT

       Name of Investor:_________________________________________________
                                             (Print)

CEREPLAST, INC.
3433 El Segundo Boulevard
Hawthorne, California  90250

Attention:  Frederic Scheer, President

      RE:   CEREPLAST, INC. - 25,000,000 SHARES OF COMMON STOCK (THE "SHARES")

Gentlemen:

      1.    Subscription.  The undersigned  hereby tenders this subscription and
applies to purchase  the number of Shares in  Cereplast,  Inc.  (the  "Company")
indicated  below,  pursuant  to the terms of this  Subscription  Agreement.  The
purchase price of each Share is two cents ($0.02).  The Company will include the
Shares on the  Registration  Statement that it plans to file with the Securities
and Exchange  Commission.  The  undersigned  further sets forth  statements upon
which you may rely to determine the  suitability of the  undersigned to purchase
the  Shares.  The  undersigned  understands  that the Shares  are being  offered
pursuant to the  Executive  Summary  dated March 22, 2005,  and, the exhibits to
this Executive Summary and related business  information and documents regarding
the Company and its management attached to the Executive Summary as Exhibit A or
available upon request (collectively, the "Memorandum"). In connection with this
subscription,  the  undersigned  represents  and  warrants  that  the  personal,
business and financial information  contained in the Purchaser  Questionnaire is
complete  and  accurate,  and  presents a true  statement  of the  undersigned's
financial condition.

      2.    Representations and Understandings. The undersigned hereby makes the
following representations,  warranties and agreements and confirms the following
understandings:

            (i)   The  undersigned  has received a copy of the  Memorandum,  has
reviewed it carefully, and has had an opportunity to question representatives of
the Company and obtain such additional information concerning the Company as the
undersigned requested.

            (ii)  The  undersigned  has  sufficient  experience in financial and
business  matters to be capable of utilizing  such  information  to evaluate the
merits  and  risks  of the  undersigned's  investment,  and to make an  informed
decision  relating  thereto;  or the  undersigned has utilized the services of a
purchaser  representative  and  together  they  have  sufficient  experience  in
financial  and  business  matters  that  they  are  capable  of  utilizing  such
information  to evaluate the merits and risks of the  undersigned's  investment,
and to make an informed decision relating thereto.

            (iii) The  undersigned has evaluated the risks of this investment in
the Company, including those risks particularly described in the Memorandum, and
has  determined  that the  investment is suitable for him. The  undersigned  has
adequate  financial  resources for an investment of this character,  and at this
time  he  could  bear  a  complete  loss  of  his  investment.  The  undersigned
understands  that any  projections  which may be made in the Memorandum are mere
estimates and may not reflect the actual results of the Company's operations.

            (iv)  The  undersigned  understands  that the  Shares  are not being
registered  under the Securities Act of 1933, as amended (the "1933 Act") on the
ground that the issuance  thereof is exempt  under  Section 4(2) of the 1933 Act
and Rule 506 of Regulation D promulgated  thereunder,  and that reliance on such
exemption is predicated  in part on the truth and accuracy of the  undersigned's
representations and warranties, and those of the other purchasers of Shares.

                                      -1-
<PAGE>

            (v)   The  undersigned  understands  that the  Shares  are not being
registered  under the  securities  laws of certain  states on the basis that the
issuance  thereof is exempt as an offer and sale not involving a public offering
in such state.  The undersigned  understands that reliance on such exemptions is
predicated   in  part  on  the  truth   and   accuracy   of  the   undersigned's
representations  and  warranties  and those of other  purchasers of Shares.  The
undersigned  covenants  not to sell,  transfer or  otherwise  dispose of a Share
unless such Share has been  registered  under the  applicable  state  securities
laws, or an exemption from registration is available.

            (vi)  The  undersigned  has (i) a net worth (or joint net worth with
spouse)  of at least  $1,000,000,  or (ii) an annual  gross  income  during  the
previous two years,  and reasonably  expects to have gross income in the current
year, of at least  $200,000 (or $300,000  collectively  with  spouse),  or (iii)
otherwise  meets the criteria for being an  "Accredited  Investor" as defined in
Rule 501 of Regulation D promulgated under Section 4(2) of the Securities Act of
1933,  as amended (the "1933 Act"),  or (iv) is the  beneficiary  of a fiduciary
account,  or, if the  fiduciary  of the  account or other  party is the donor of
funds used by the fiduciary  account to make this  investment,  then such donor,
who meets the requirements of either (i), (ii) or (iii) above.

            (vii) The  undersigned  understands  that the  Shares  are not being
registered under the securities laws of any state on the basis that the issuance
thereof  is exempt  as an offer and sale to  purchasers  in such  state  meeting
certain  investor  suitability  standards  with  respect to  income,  net worth,
knowledge and sophistication.  The undersigned understands that reliance on such
exemptions is predicated in part on the truth and accuracy of the  undersigned's
representations  and  warranties  and those of other  purchasers of Shares.  The
undersigned  covenants  not to sell,  transfer or  otherwise  dispose of a Share
unless such Share has been  registered  under the  applicable  state  securities
laws, or an exemption from registration is available.

            (viii) The  undersigned  has  no  need  for  any  liquidity  in  his
investment  and is able to  bear  the  economic  risk of his  investment  for an
indefinite  period of time. The  undersigned has been advised and is aware that:
(a) there is no public  market  for the  Shares  and it is not  likely  that any
public  market  for the  Shares  will  develop;  (b) it may not be  possible  to
liquidate the investment  readily;  (c) the  undersigned  must bear the economic
risk of his  investment in the Shares for an  indefinite  period of time because
the Shares have not been registered  under the 1933 Act and applicable state law
or an exemption  from such  registration  is  available;  (d) a legend as to the
restrictions on transferability of the Shares referred to herein will be made on
the document evidencing the Share, and (e) a notation in the appropriate records
of the  Company  will be made with  respect to any  restrictions  on transfer of
Shares.

            (ix)  All contacts and  contracts  between the  undersigned  and the
Company  regarding the offer and sale to him of Shares have been made within the
state indicated  below his signature on the signature page of this  Subscription
Agreement and the undersigned is a resident of such state.

            (x)   The  undersigned  has relied  solely upon the  Memorandum  and
independent  investigations  made by him or his  purchaser  representative  with
respect  to  the  Shares   subscribed  for  herein,   and  no  oral  or  written
representations  beyond  the  Memorandum  have been made to the  undersigned  or
relied upon by the undersigned.

            (xi)  The  undersigned   agrees  not  to  transfer  or  assign  this
subscription or any interest therein.

            (xii) The undersigned hereby acknowledges and agrees that, except as
may  be  specifically  provided  herein,  the  undersigned  is not  entitled  to
withdraw, terminate or revoke this subscription.

            (xiii) If the undersigned is a partnership, corporation or trust, it
has been duly formed, is validly existing,  has full power and authority to make
this  investment,  and has not been formed for the specific purpose of investing
in the Shares.  This Subscription  Agreement and all other documents executed in
connection with this subscription for Shares are valid,  binding and enforceable
agreements of the undersigned.

            (xiv) The  undersigned  meets any additional  suitability  standards
and/or financial requirements which may be required in the jurisdiction in which
he resides,  or is  purchasing  in a fiduciary  capacity for a person or account
meeting such suitability standards and/or financial requirements,  and he is not
a minor.

                                      -2-
<PAGE>

            (xv)  The undersigned has a pre-existing  business relationship with
an officer,  director,  employee,  consultant or other affiliate of the Company,
and was not  offered  these  securities  by any  form of cold  calling,  general
solicitation,  or  advertisement.  The  offer to sell the  Shares  was  directly
communicated  to the undersigned by the Company through the Memorandum in such a
manner that the  undersigned  was able to ask  questions of and receive  answers
from the Company,  or a person  acting on its behalf,  concerning  the terms and
conditions of this transaction. At no time was the undersigned presented with or
solicited by or through any article,  notice or other communication published in
any newspaper or other leaflet, public promotional meeting, television, radio or
other  broadcast  or  transmittal  advertisement  or any other  form of  general
advertising.

      3.    Indemnification.  he undersigned hereby agrees to indemnify and hold
harmless  the  Company  and  all  of  its  affiliates,  attorneys,  accountants,
employees,  officers,  directors,  Shareholders  and agents from any  liability,
claims,  costs,  damages,  losses or expenses incurred or sustained by them as a
result of the  undersigned's  representations  and  warranties  herein or in the
Purchaser  Questionnaire  being untrue or inaccurate,  or because of a breach of
this agreement by the  undersigned.  The undersigned  hereby further agrees that
the  provisions  of Section 3 of this  Subscription  Agreement  will survive the
sale,  transfer or any  attempted  sale or transfer of all or any portion of the
Shares. The undersigned hereby grants to the Company the right to setoff against
any amounts payable by the Company to the undersigned,  for whatever reason,  of
any and all  damages,  costs,  and  expenses  (including,  but not  limited  to,
reasonable  attorneys'  fees)  which are  incurred  by the Company or any of its
affiliates as a result of matters for which the Company is indemnified  pursuant
to Section 3 of this Subscription Agreement.

      4.    Taxpayer  Identification  Number/Backup  Withholding  Certification.
Unless a subscriber indicates to the contrary on the Subscription  Agreement, he
will certify that his  taxpayer  identification  number is correct and, if not a
corporation,  IRA,  Keogh,  or  Qualified  Trust (as to which  there would be no
withholding),  he is not subject to backup withholding on interest or dividends.
If the subscriber does not provide a taxpayer identification number certified to
be correct or does not make the certification that the subscriber is not subject
to backup  withholding,  then the  subscriber  may be subject to twenty  percent
(20%) withholding on interest or dividends paid to the holder of the Shares.

      5.    Governing Law. This  Subscription  Agreement will be governed by and
construed in accordance with the laws of the State of California.  The venue for
any legal action under this  Agreement will be in the proper forum in the County
of Los Angeles, State of California.

                                      -3-
<PAGE>

      The undersigned has (have)  executed this  Subscription  Agreement on this
__________ day of - __________________________, 200__.

SUBSCRIBER (1)                               SUBSCRIBER (2)

___________________________________          ___________________________________
Signature                                    Signature

___________________________________          ___________________________________
(Print Name of Subscriber)                   (Print Name of Subscriber)

___________________________________          ___________________________________
(Street Address)                             (Street Address)

___________________________________          ___________________________________
(City, State and Zip Code)                   (City, State and Zip Code)

___________________________________          ___________________________________
(Social Security or Tax                      (Social Security or Tax
 Identification Number)                       Identification Number)

--------------------------------------------------------------------------------

Number of Shares____________

Dollar Amount of Shares (At $0.02 per Share)____________________________________

PLEASE MAKE CHECKS PAYABLE TO: "CEREPLAST, INC."

--------------------------------------------------------------------------------

         MANNER IN WHICH TITLE IS TO BE HELD:

|_| Community Property*                      |_| Individual Property

|_| Joint Tenancy With Right of              |_| Separate Property
    Survivorship*

|_| Corporate or Fund Owners **              |_| Tenants-in-Common*

|_| Pension or Profit Sharing Plan           |_| Tenants-in-Entirety*

|_| Trust or Fiduciary Capacity              |_| Keogh Plan
    (trust documents must accompany
     this form)

|_| Fiduciary for a Minor                    |_| Individual Retirement Account

                                             |_| Other (Please indicate)

----------
*     Signature of all parties required
**    In the case of a Fund, state names of all partners.

                                             ___________________________________

--------------------------------------------------------------------------------
                             SUBSCRIPTION ACCEPTED:

CEREPLAST, INC.

By:________________________________          ___________________________________
   Frederic Scheer, President                                DATE

                                      -4-
<PAGE>

                                 CEREPLAST, INC.
                             PURCHASER QUESTIONNAIRE

CEREPLAST, INC.
3433 El Segundo Boulevard
Hawthorne, California  90250

Attention:  Frederic Scheer, President

      RE:   CEREPLAST, INC.

Gentlemen:

      The  following  information  is  furnished  to you  in  order  for  you to
determine  whether the  undersigned is qualified to purchase shares of preferred
stock (the "Shares") in the above referenced Company pursuant to Section 4(2) of
the  Securities  Act of 1933,  as amended (the "Act"),  Rule 506 of Regulation D
promulgated   thereunder,   and  appropriate   provisions  of  applicable  state
securities laws. I understand that you will rely upon the following  information
for purposes of such  determination,  and that the Shares will not be registered
under the Act in  reliance  upon the  exemption  from  registration  provided by
Section 4(2) of the Act, Rule 506 of Regulation D, and appropriate provisions of
applicable state securities laws.

      ALL  INFORMATION   CONTAINED  IN  THIS   QUESTIONNAIRE   WILL  BE  TREATED
CONFIDENTIALLY. However, I agree that you may present this questionnaire to such
parties as you deem  appropriate  if called upon to establish  that the proposed
offer and sale of the Shares is exempt from registration  under the Act or meets
the requirements of applicable state securities laws.

      I hereby provide you with the following representations and information:

1.    Name:_____________________________________________________________________

2.    Residence Address & Telephone No:_________________________________________

3.    Birthdate:________________________________________________________________

4.    Employer and Position:____________________________________________________

5.    Business Address & Telephone No:__________________________________________

6.    Business or Professional Education & Degree:______________________________

7.    Prior Employment (5 years):

      EMPLOYER                     NATURE OF DUTIES          DATES OF EMPLOYMENT

      __________________________________________________________________________

      __________________________________________________________________________

      __________________________________________________________________________

                                      -5-
<PAGE>

8.    Prior Investments of Purchaser:

      Amount (Cumulative) $_______________ (initial appropriate category below):

      __________________________________________________________________________

      CAPITAL STOCK:   |_| None     |_| Up to $50,000    |_| $50,000 to $250,000
                       |_| Over $250,000
      __________________________________________________________________________

      BONDS:           |_| None      |_| Up to $50,000   |_| $50,000 to $250,000
                       |_| Over $250,000
      __________________________________________________________________________

      OTHER:           |_| None      |_| Up to $50,000   |_| $50,000 to $250,000
                       |_| Over $250,000
      __________________________________________________________________________

9.    Based on the definition of an "Accredited Investor" which appears below, I
      am an Accredited Investor. I understand that the representations contained
      in this section are made for the purpose of qualifying me as an accredited
      investor as the term is defined by the Securities and Exchange  Commission
      for the purpose of selling  securities to me. I hereby  represent that the
      statement  or  statements  initialed  below  are true and  correct  in all
      respects.

      I am an  Accredited  Investor  because I fall within one of the  following
      categories:

                         (INITIAL APPROPRIATE CATEGORY)

|_|   A natural person whose  individual net worth, or joint net worth with that
      person's spouse, at the time of his purchase exceeds $1,000,000;

|_|   A natural  person who had an  individual  income in excess of  $200,000 in
      each of the two most recent years and who reasonably  expects an income in
      excess of $200,000 in the current year;

|_|   My spouse and I have had joint  income  for the most two  recent  years in
      excess  of  $300,000  and we expect  our  joint  income to be in excess of
      $300,000 for the current year;

|_|   Any  organization  described in Section  501(c)(3) of the Internal Revenue
      Code, or any corporation,  Massachusetts Business Trust or Fund not formed
      for the specific purpose of acquiring the securities  offered,  with total
      assets in excess of $5,000,000;

|_|   A bank as defined in Section  3(a)(2) of the Securities Act whether acting
      in its individual or fiduciary  capacity;  insurance company as defined in
      Section 2(12) of the Securities Act,  investment  company registered under
      the Investment  Company Act of 1940 or a business  development  company as
      defined in Section  2(1)(48)  of that Act;  or Small  Business  Investment
      Company licensed by the U.S. Small Business  Administration  under Section
      301(c) or (d) of the Small Business Investment Act of 1958;

|_|   A private business development company as defined in Section 202(a)(22) of
      the Investment Advisers Act of 1940;

|_|   An employee  benefit  plan  within the meaning of Title I of the  Employee
      Retirement  Income Security Act of 1974, if the investment  decision is to
      be made by a plan  fiduciary,  as defined  in  Section  3(21) of such Act,
      which is  either  a bank,  insurance  company,  or  registered  investment
      adviser,  or if the  employee  benefit  plan has total assets in excess of
      $5,000,000;

|_|   An entity in which all of the equity owners are Accredited Investors under
      the above paragraph.

10.   Financial Information:

      (a)   My  net  worth   (including  home,  home  furnishings  and  personal
            automobiles) is:

            $______________________

                                      -6-
<PAGE>

      (b)   My gross income during the preceding two years was:

            $_________________ (2003)

            $_________________ (2004)

      (c)   My anticipated gross income in 2005 is $ _______________.

      (d)   (1) (initial or check here) I have such  knowledge and experience in
      financial,  tax and business  matters  that I am capable of utilizing  the
      information  made  available to me in connection  with the offering of the
      Shares to evaluate  the merits and risks of an  investment  in the Shares,
      and to make an informed  investment decision with respect to the Shares. I
      do not desire to utilize a Purchaser  Representative  in  connection  with
      evaluating such merits and risks. I understand,  however, that the Company
      may request that I use a Purchaser Representative.

            (2)   (initial  or check  here) I intend to use the  services of the
      following  named  person(s) as Purchaser  Representative(s)  in connection
      with  evaluating  the merits and risks of an  investment in the Shares and
      hereby appoint such person(s) to act as my Purchaser  Representative(s) in
      connection with my proposed purchase of Shares.

      List name(s) of Purchaser Representative(s), if applicable.

      __________________________________________________________________________

11.   Except as indicated  below, any purchases of the Shares will be solely for
      my account,  and not for the account of any other person or with a view to
      any resale or distribution thereof.

      __________________________________________________________________________

12.   I represent to you that the information  contained  herein is complete and
      accurate  and  may be  relied  upon  by  you.  I  understand  that a false
      representation  may constitute a violation of law, and that any person who
      suffers  damage  as a result  of a false  representation  may have a claim
      against me for  damages.  I will notify you  immediately  of any  material
      change in any of such  information  occurring  prior to the closing of the
      purchase of Shares, if any, by me.

      Name (Please Print):______________________________________________________

      Signature_________________________________________________________________

      Telephone Number__________________________________________________________

      Social Security or Tax I.D. Number________________________________________

      Executed at:____________________________________ on this___________ day of

      _________________________________, 20________.

--------------------------------------------------------------------------------

                           FOR BROKER-DEALER USE ONLY

      Name of Broker-Dealer Firm:_______________________________________________

      Name of Registered Representative_____________________ RR Number:_________

      Address of Firm:__________________________________________________________

      Telephone Number:_________________________________________________________

                                       -7-

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