Document:

Second Amended and Restated Investor Rights Agreement

 Exhibit 10.3 
 IMPERIUM RENEWABLES, INC. 
 SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

 This Second Amended and Restated Investor Rights Agreement (this “Agreement”), made as of February 7,
2007, amends and supersedes in its entirety that certain Amended and Restated Investor Rights Agreement (the “Existing Agreement”) dated October 30, 2006, by and among Imperium Renewables, Inc. (formerly Seattle
Biofuels, Inc.), a Washington corporation (the “Company”), the investors listed on Exhibit A and certain Investors listed on Exhibit A-1, thereto and hereto (each, an “Investor” and,
collectively, with their permitted transferees, the “Investors”), and the holders of Common Stock (the “Common Stock”) listed on Exhibit B thereto and hereto (each, a “Common
Holder” and, collectively, with their permitted transferees, the “Common Holders”). Each Additional Investor, as defined below, who executes a counterpart of this Agreement, shall be and become an additional
“Investor” pursuant to this Agreement. 
 RECITAL 
 The Company and certain Investors listed on Exhibit A-1 hereof (as supplemented from time-to-time, the “Additional
Investors”) are entering into, contemporaneously herewith, a Stock Purchase Agreement (as amended from time to time, the “Purchase Agreement”) dated October 30, 2006 pursuant to which the Company desires to
sell to the Additional Investors and the Additional Investors desire to purchase from the Company shares of the Company’s Series B Preferred Stock (“Series B Preferred”). The Company desires to induce the Additional
Investors to purchase shares of Series B Preferred pursuant to the Purchase Agreement by agreeing to the terms and conditions set forth herein. 
 AGREEMENT 
 The parties hereby agree as follows: 
 1. Registration Rights. The Company and the Investors covenant and agree as follows: 
 1.1 Definitions. For purposes of this Section 1: 
 (a) The term “Affiliated Fund” means, with respect to a Common Holder or a Holder (as defined below) that is a limited liability company or a limited liability partnership, a fund or entity
managed by the same manager or managing member or general partner or management company or by an entity controlling, controlled by, or under common control with such manager or managing member or general partner or management company; 
 (b) The term “Change of Control” shall mean a sale, lease, conveyance or disposition of all or substantially all of the
Company’s property or business, or a merger, consolidation, share exchange or reorganization of the Company with or into another corporation, limited liability company or other entity other than (i) a merger effected exclusively 

 
for the purpose of changing the domicile of the Company; (ii) a merger or consolidation with a wholly owned subsidiary of the Company; (iii) an
equity financing approved by the Board of Directors of the Company in which the Company is the surviving corporation; or (iv) a transaction in which the shareholders of the Company immediately prior to the transaction own 50% or more of the
voting power of the acquiring or surviving corporation following the transaction; 
 (c) The term “Common Stock” means shares of
the Company’s common stock; 
 (d) The term “Exchange Act” means the Securities Exchange Act of 1934, as
amended (and any successor thereto), and the rules and regulations promulgated thereunder; 
 (e) The term
“Form S-3” means such form under the Securities Act (as defined below) as in effect on the date hereof or any successor form under the Securities Act that permits significant incorporation by reference of the
Company’s subsequent public filings under the Exchange Act; 
 (f) The term “Holder” means any person owning or
having the right to acquire Registrable Securities or any assignee thereof in accordance with Section 1.12 of this Agreement; 
 (g)
The term “Major Investor” shall mean any person who holds at least 500,000 shares of the Series A Preferred, the Series B Preferred and/or the Common Stock issued upon conversion thereof (subject to adjustment for stock
splits, stock dividends, reclassifications or the like). A Major Investor includes any general partners, shareholders, managing members and affiliates of a Major Investor, including Affiliated Funds; 
 (h) The term “Qualified IPO” means a firm commitment underwritten public offering by the Company of shares of its Common Stock
with aggregate proceeds to the Company of not less than $30,000,000 (after deducting any commissions or other expenses allowed, paid or incurred by the corporation for any underwriting), in connection with which all the outstanding shares of
preferred stock of the Company are converted to Common Stock pursuant the Company’s Amended and Restated Articles of Incorporation; 
 (i) The terms “register,” “registered,” and “registration” refer to a registration effected by preparing and filing a registration statement or similar document in
compliance with the Securities Act, and the declaration or ordering of effectiveness of such registration statement or document; 
 (j) The
term “Registrable Securities” means (i) the shares of Common Stock issuable or issued upon conversion of the Series A Preferred or Series B Preferred or upon exercise of the Common Stock Warrants issued to certain
Holders pursuant to Affirmation Of Investment, Consent, Agreement And Waiver as of the date of this Agreement or the Common Stock Warrants issued to Subsequent Purchasers (as defined in the Purchase Agreement) simultaneously 

  

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with a Subsequent Closing (as defined in the Purchase Agreement, and (ii) any other shares of Common Stock of the Company issued as (or issuable upon
the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, the shares listed in clause (i); provided, however, that
the foregoing definition shall exclude in all cases such shares for which registration rights have terminated pursuant to Section 1.15 hereof, and any Registrable Securities sold by a person in a transaction in which his or her rights under
this Agreement are not assigned. Notwithstanding the foregoing, Common Stock or other securities shall only be treated as Registrable Securities if and so long as (A) they have not been sold to or through a broker or dealer or underwriter in a
public distribution or a public securities transaction or (B) they have not been sold in a transaction exempt from the registration and prospectus delivery requirements of the Securities Act under Section 4(1) thereof so that all transfer
restrictions, and restrictive legends with respect thereto, if any, are removed upon the consummation of such sale; 
 (k) The number of
shares of “Registrable Securities then outstanding” means the number of shares of Common Stock that are Registrable Securities and (i) are then issued and outstanding or (ii) are then issuable pursuant to the
exercise or conversion of then outstanding and then exercisable options, warrants or convertible securities; 
 (l) The term
“SEC” means the Securities and Exchange Commission; 
 (m) The term “Series A Preferred”
refers to shares of Series A Preferred Stock of the Company originally issued by the Company pursuant to that certain Stock Purchase Agreement dated as of December 22, 2005 (the “Series A Purchase Agreement”); and

 (n) The term “Securities Act” means the Securities Act of 1933, as amended (and any successor thereto), and the
rules and regulations promulgated thereunder. 
 1.2 Request for Registration. 
 (a) If the Company shall receive at any time after the earlier of (i) December 22, 2008, or (ii) six months after the effective date of the
first registration statement for a public offering of securities of the Company (other than a registration statement relating either to the sale of securities to employees of the Company pursuant to a stock option, stock purchase or similar plan or
an SEC Rule 145 transaction), a written request from one or more Holders representing at least fifty percent (50%) of the Registrable Securities then outstanding (the “Initiating Holders”) that the Company file a
registration statement under the Securities Act covering the registration of Registrable Securities with an aggregate offering price to the public of at least $5,000,000, then the Company shall, within ten (10) days of the receipt thereof, give
written notice of such request to all Holders and shall, subject to the limitations of subsection 1.2(b), use its best efforts to file a registration statement under the Securities Act as soon as practicable, and in any event within sixty
(60) days of the receipt of such request, of all Registrable Securities which the Holders request to be registered within twenty (20) days of the mailing of such notice by the Company in accordance with Section 3.5 and use its
commercially reasonable efforts to cause such registration statement to become effective within one hundred twenty (120) days after such request. 
  

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 (b) If the Initiating Holders intend to distribute the Registrable Securities covered by their request
by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to this Section 1.2 and the Company shall include such information in the written notice referred to in subsection 1.2(a). The
underwriter will be selected by the holders of a majority of the Registrable Securities held by the Initiating Holders and shall be reasonably acceptable to the Company. In such event, the right of any Holder to include his Registrable Securities in
such registration shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting (unless otherwise mutually agreed by the holders of a majority of
the Registrable Securities held by the Initiating Holders and such Holder) to the extent provided herein. All Holders proposing to distribute their securities through such underwriting shall (together with the Company as provided in
subsection 1.5(e)) enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting. Notwithstanding any other provision of this Section 1.2, if the underwriter advises the
Initiating Holders in writing that marketing factors require a limitation of the number of shares to be underwritten, then the Initiating Holders shall so advise all Holders of Registrable Securities which would otherwise be underwritten pursuant
hereto, and the number of shares of Registrable Securities that may be included in the underwriting shall be allocated among all participating Holders thereof, including the Initiating Holders, in proportion (as nearly as practicable) to the amount
of Registrable Securities of the Company owned by each participating Holder; provided, however, that the number of shares of Registrable Securities to be included in such underwriting shall not be reduced unless all other securities
are first entirely excluded from the underwriting. 
 (c) Notwithstanding the foregoing, if the Company shall furnish to the Holders
requesting a registration statement pursuant to this Section 1.2, a certificate signed by the President of the Company, within thirty (30) days of the Company’s receipt of the registration request, stating that in the good faith
judgment of the Board of Directors of the Company (the “Board”), it would be seriously detrimental to the Company and its shareholders for such registration statement to be filed and it is therefore essential to defer the
filing of such registration statement, the Company shall have the right to defer such filing for a period of not more than ninety (90) days after providing notice to the Initiating Holders; provided, however, that the Company may
not utilize this right more than once in any twelve-month period. 
 (d) In addition, the Company shall not be obligated to effect, or to
take any action to effect, any registration pursuant to this Section 1.2: 
 (i) After the Company has effected two
(2) registrations pursuant to this Section 1.2 and such registrations have been declared or ordered effective however a registration shall not count as one of the two (2) registrations under this Section 1.2 unless the Initiating
Holders have been allowed to include at least 80% of the Registrable Securities requested to be included in the registration; 
 (ii) During
the period starting with the date ninety (90) days prior to the Company’s good faith estimate of the date of filing of, and ending on a date ninety (90) days after the effective date of, a registration subject to Section 1.3
hereof unless such 

  

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offering is the initial public offering of the Company’s securities, in which case, ending on a date one hundred eighty (180) days after the
effective date of such registration subject to Section 1.3 hereof; provided that the Company is actively employing in good faith all commercially reasonable efforts to cause such registration statement to become effective; 
 (iii) If the Initiating Holders propose to dispose of shares of Registrable Securities that may be immediately registered on Form S-3 pursuant to a
request made pursuant to Section 1.4 below; or 
 (iv) In any particular jurisdiction in which the Company would be required to qualify
to do business or to execute a general consent to service of process in effecting such registration, qualification or compliance. 
 1.3
Company Registration. If (but without any obligation to do so) the Company proposes to register (including for this purpose a registration effected by the Company for shareholders other than the Holders) any of its stock under the
Securities Act in connection with the public offering of such securities solely for cash (other than a registration relating solely to the sale of securities to participants in a Company stock plan or a transaction covered by Rule 145 under the
Securities Act, a registration in which the only stock being registered is Common Stock issuable upon conversion of debt securities which are also being registered, 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), the Company shall, at such time, promptly give each Holder written notice of such registration. Upon the written request of
each Holder given within twenty (20) days after mailing of such notice by the Company in accordance with Section 3.5, the Company shall, subject to the provisions of Section 1.8, cause to be registered under the Securities Act all of
the Registrable Securities that each such Holder has requested to be registered. The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 1.3 prior to the effectiveness of such registration
whether or not any Holder has elected to include securities in such registration. The expenses of such registration shall be borne by the Company, in accordance with Section 1.7. 
 1.4 Form S-3 Registration. In case the Company shall receive from any Holder or Holders of Registrable Securities a written request or
requests that the Company effect a registration on Form S-3 and any related qualification or compliance with respect to all or a part of the Registrable Securities owned by such Holder or Holders (an “S-3 Request”), the
Company will: 
 (a) promptly give written notice of the proposed registration, and any related qualification or compliance, to all other
Holders; and 
 (b) within thirty (30) days of receipt of the S-3 Request, file a registration statement and use its commercially
reasonable efforts to cause such registration statement to become effective within forty-five (45) days after filing and effect all such qualifications and compliances as may be so requested and as would permit or facilitate the sale and
distribution of all or such portion of such Holder’s or Holders’ Registrable Securities as are 

  

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specified in such request, together with all or such portion of the Registrable Securities of any other Holder or Holders joining in such request as are
specified in a written request given within fifteen (15) days after receipt of such written notice from the Company; provided, however, that the Company shall not be obligated to effect any such registration, qualification or
compliance, pursuant to this Section 1.4: (i) if Form S-3 is not available for such offering by the Holders; (ii) if the Holders, together with the holders of any other securities of the Company entitled to inclusion in such
registration, propose to sell Registrable Securities and such other securities (if any) at an aggregate price to the public of less than $500,000; (iii) if the Company shall furnish to the Holders a certificate signed by the President of the
Company stating that in the good faith judgment of the Board, it would be seriously detrimental to the Company and its shareholders for such Form S-3 registration to be effected at such time, in which event the Company shall have the right to
defer the filing of the Form S-3 registration statement for a period of not more than ninety (90) days after receipt of the request of the Holder or Holders under this Section 1.4; provided, however, that the Company
shall not utilize this right more than once in any 12-month period; (iv) if the Company has, within the 12-month period preceding the date of such request, already effected two (2) registrations on Form S-3 for the Holders pursuant to
this Section 1.4; (v) in any particular jurisdiction in which the Company would be required to qualify to do business or to execute a general consent to service of process in effecting such registration, qualification or compliance; or
(vi) during the period ending one hundred eighty (180) days after the effective date of a registration statement in the case of the Company’s initial public offering or ninety (90) days after the effective date of a registration
in connection with any subsequent public offering (excluding registrations in connection with employee benefit plans or Rule 145 transactions), subject to Section 1.3. 
 (c) Registrations effected pursuant to this Section 1.4 shall not be counted as demands for registration or registrations effected pursuant to
Sections 1.2 or 1.3, respectively. 
 1.5 Obligations of the Company. Whenever required under this Section 1 to
effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible: 
 (a) Prepare and file
with the SEC a registration statement with respect to such Registrable Securities and use commercially reasonable efforts to cause such registration statement to become effective, and, upon the request of the Holders of a majority of the Registrable
Securities registered thereunder, keep such registration statement effective for up to one hundred eighty (180) days, or until the distribution described in such registration statement is completed, if earlier. 
 (b) Prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with such
registration statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement for up to one hundred eighty (180) days, or until the
distribution described in such registration statement is completed, if earlier. 
  

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 (c) Furnish to the Holders such numbers of copies of a prospectus, including a preliminary prospectus,
in conformity with the requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them. 
 (d) Use commercially reasonable efforts to register and qualify the securities covered by such registration statement under such other securities or
Blue Sky laws of such jurisdictions as shall be reasonably requested by the Holders; provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to
service of process in any such states or jurisdictions. 
 (e) In the event of any underwritten public offering, enter into and perform its
obligations under an underwriting agreement, in usual and customary form, with the managing underwriter of such offering. Each Holder participating in such underwriting shall also enter into and perform its obligations under such an agreement.

 (f) Notify each Holder of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is
required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing. 
 (g) Cause all such Registrable Securities registered pursuant to this Section 1 to be listed on each securities exchange on which similar securities issued by the Company are then listed. 
 (h) Provide a transfer agent and registrar for all Registrable Securities registered pursuant hereunder and a CUSIP number for all such Registrable
Securities, in each case not later than the effective date of such registration. 
 (i) Otherwise use its commercially reasonable efforts to
comply with all applicable rules and regulations of the SEC, and make available to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at least twelve months, but not more than eighteen months,
beginning with the first month after the effective date of such registration statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act. 
 (j) Use all commercially reasonable efforts to furnish, at the request of any Holder requesting registration of Registrable Securities pursuant to this
Section 1, on the date that such Registrable Securities are delivered to the underwriters for sale in connection with a registration pursuant to this Section 1, if such securities are being sold through underwriters, or if such securities
are not being sold through underwriters, on the date that the registration statement with respect to such securities becomes effective, (i) an opinion, dated such date, of the counsel representing the Company for the purposes of such
registration, in form and substance as is customarily given to underwriters in an underwritten public offering, addressed to the 

  

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underwriters and to the Holders requesting registration of Registrable Securities and (ii) a “comfort” letter dated such date, from the
independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering and reasonably satisfactory to the Holders of a
majority of the Registrable Securities being registered, addressed to the underwriters, if any, and to the Holders requesting registration of Registrable Securities. 
 1.6 Furnish Information. In connection with the obligations of the Company to take any action pursuant to this Section 1 with respect to the Registrable Securities of any selling Holder, such 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 such Holder’s Registrable
Securities. The Company shall have no obligation with respect to any registration requested pursuant to Section 1.2 or Section 1.4 of this Agreement if, as a result of the application of the preceding sentence, the number of shares or the
anticipated aggregate offering price of the Registrable Securities to be included in the registration does not equal or exceed the number of shares or the anticipated aggregate offering price required to originally trigger the Company’s
obligation to initiate such registration as specified in subsection 1.2(a) or subsection 1.4(b)(ii), whichever is applicable. 
 1.7
Expenses of Registration. 
 (a) Demand Registration. All expenses other than underwriting discounts and
commissions, stock transfer taxes and fees of counsel to the selling Holders other than the Special Counsel (as defined below) incurred in connection with registrations, filings or qualifications pursuant to Section 1.2, including (without
limitation) all registration, filing, qualification fees, printers’ and accounting fees, fees and disbursements of counsel for the Company, and the reasonable fees and disbursements of one counsel (such fees and disbursements not to exceed
$35,000) for the selling Holders selected by them (the “Special Counsel”), shall be borne by the Company; provided, however, that the Company shall not be required to pay for any expenses of any registration
proceeding begun pursuant to Section 1.2 if the registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered (in which case all participating Holders shall bear such
expenses on a pro rata basis), unless the Holders of a majority of the Registrable Securities agree to forfeit their right to one demand registration pursuant to Section 1.2; provided, however, that if at the time of such
withdrawal, the Holders have learned of a material adverse change in the condition, business or prospects of the Company that was unknown to the Holders at the time of their request and have withdrawn the request with reasonable promptness following
disclosure by the Company of such material adverse change, then the Holders shall not be required to pay any of such expenses and shall retain their rights pursuant to Section 1.2. 
 (b) Company Registration. All expenses other than underwriting discounts and commissions, stock transfer taxes and fees of counsel to the
selling Holders other than the Special Counsel incurred in connection with registrations, filings or qualifications of Registrable Securities pursuant to Section 1.3 for each Holder (which right may be assigned as provided in
Section 1.12), including (without limitation) all registration, filing, qualification fees, printers’ and accounting fees, fees and disbursements of counsel for the Company, and the 

  

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reasonable fees and disbursements of the Special Counsel (such fees and disbursements not to exceed $20,000) shall be borne by the Company. 
 (c) Registration on Form S-3. All expenses other than underwriting discounts and commissions, stock transfer taxes and fees of counsel to
the selling Holders other than the Special Counsel incurred in connection with registrations, filings or qualifications of Registrable Securities pursuant to Section 1.4 for each Holder (which right may be assigned as provided in
Section 1.12), including (without limitation) all registration, filing, qualification fees, printers’ and accounting fees, fees and disbursements of counsel for the Company, and the reasonable fees and disbursements of the Special Counsel
(such fees and disbursements not to exceed $20,000) and shall be borne by the Company. 
 1.8 Underwriting Requirements. In
connection with any offering involving an underwriting of shares of the Company’s capital stock, the Company shall not be required under Section 1.3 to include any of the Holders’ securities in such underwriting unless they accept the
terms of the underwriting as agreed upon between the Company and the underwriters selected by it (or by other persons entitled to select the underwriters), and then only in such quantity as the underwriters determine in their sole discretion will
not jeopardize the success of the offering by the Company. If the total amount of securities, including Registrable Securities, requested by shareholders to be included in such offering exceeds the amount of securities sold other than by the Company
that the underwriters determine in their sole discretion is compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, which the
underwriters determine in their sole discretion will not jeopardize the success of the offering. 
 Notwithstanding any other provision of
this Section 1.8, if the underwriters advise the Holders in writing that marketing factors require a limitation on the number of shares to be underwritten, the number of Registrable Securities that may be so included shall be allocated as
follows: (a) first, the Company, for its own account, unless it is a registration initiated pursuant to Section 1.2 or Section 1.4, (b) second, among all Holders requesting to include Registrable Securities in such registration
statement based on the pro rata percentage of Registrable Securities held by such Holders, assuming conversion; and (c) third, to the Company, which the Company may allocate, at its discretion, for its own account in connection with a
registration initiated pursuant to Section 1.2 or Section 1.4, or for the account of other holders or employees of the Company; provided, however, in no event shall the amount of securities of the selling Holders included in
the offering be reduced below twenty-five (25%) of the total amount of securities included in such offering, unless such offering is the initial public offering of the Company’s securities, in which case, the selling shareholders may be
excluded if the underwriters make the determination described above and no other shareholder’s securities are included. For purposes of the preceding sentence concerning apportionment, for any selling shareholder which is a Holder of
Registrable Securities and which is a partnership, corporation or limited liability company, the partners, retired partners, shareholders, members or former members of such holder, or the estates and family members of any such partners and retired
partners and any trusts for the benefit of any of the foregoing persons shall be deemed to be a single “selling shareholder,” and any pro-rata reduction with respect to such “selling shareholder” shall be based upon
the aggregate amount of shares carrying registration rights 

  

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owned by all entities and individuals included in such “selling shareholder,” as defined in this sentence. 
 1.9 Delay of Registration. No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any such
registration as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 1. 
 1.10 Indemnification. In the event any Registrable Securities are included in a registration statement under this Section 1: 
 (a) To the extent permitted by law, the Company will indemnify and hold harmless each Holder and such Holder’s partners, members, officers, directors, stockholders, legal counsel and accountants, any underwriter
(as defined in the Securities Act) for such Holder and each person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange Act, against any losses, claims, damages, or liabilities (joint or several)
to which they may become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the following
statements, omissions or violations (collectively, a “Violation”): (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus or
final prospectus contained therein or any amendments or supplements thereto; (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading; or
(iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities law; and the
Company will pay to each such Holder, underwriter or controlling person, as incurred, any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability, or action;
provided, however, that the indemnity agreement contained in this subsection 1.10(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, or action if such settlement is effected without the
consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable to any Holder, underwriter or controlling person for any such loss, claim, damage, liability, or action to the extent that it arises out of or
is based upon a Violation which occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by any such Holder, underwriter or controlling person. 
 (b) To the extent permitted by law, each selling Holder will, severally, but not jointly, indemnify and hold harmless the Company, each of its
directors, each of its officers who has signed the registration statement, each person, if any, who controls the Company within the meaning of the Securities Act, legal counsel and accountants for the Company, any underwriter, any other Holder
selling securities in such registration statement and any controlling person of any such underwriter or other Holder, against any losses, claims, damages, or liabilities (joint or several) to which any of the foregoing persons may become subject,
under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereto) arise out of or are based upon 

  

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any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information
furnished by such Holder expressly for use in connection with such registration; and each such Holder will pay, as incurred, any legal or other expenses reasonably incurred by any person intended to be indemnified pursuant to this
subsection 1.10(b), in connection with investigating or defending any such loss, claim, damage, liability, or action; provided, however, that the indemnity agreement contained in this subsection 1.10(b) shall not apply to
amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; provided, that in no event shall any indemnity
under this subsection 1.10(b) exceed the net proceeds from the offering received by such Holder, except in the case of willful fraud by such Holder. 
 (c) Promptly after receipt by an indemnified party under this Section 1.10 of notice of the commencement of any action (including any governmental action), such indemnified party will, if a claim in respect
thereof is to be made against any indemnifying party under this Section 1.10, deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together
with all other indemnified parties which may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the reasonable fees and expenses to be paid by the indemnifying party, if representation of such
indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure
to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party
under this Section 1.10, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 1.10. 
 (d) If the indemnification provided for in this Section 1.10 is held by a court of competent jurisdiction to be unavailable to an indemnified party
with respect to any loss, liability, claim, damage or expense referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified party as a
result of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or
omissions that resulted in such loss, liability, claim, damage or expense as well as any other relevant equitable considerations; provided, that in no event shall any contribution by a Holder under this Subsection 1.10(d) exceed the net
proceeds from the offering received by such Holder, except in the case of willful fraud by such Holder. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ 

  

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relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission. 
 (e) Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered
into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control. 
 (f) The obligations of the Company and Holders under this Section 1.10 shall survive the completion of any offering of Registrable Securities in a registration statement under this Section 1, and otherwise.

 1.11 Reports Under the Exchange Act. With a view to making available to the Holders the benefits of Rule 144
promulgated under the Securities Act and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or pursuant to a registration on Form S-3, the Company
agrees to: 
 (a) make and keep public information available, as those terms are understood and defined in SEC Rule 144, at all times
after the effective date of the first registration statement filed by the Company for the offering of its securities to the general public so long as the Company remains subject to the periodic reporting requirements under Sections 13 or 15(d)
of the Exchange Act; 
 (b) take such action, including the voluntary registration of its Common Stock under Section 12 of the Exchange
Act, as is necessary to enable the Holders to utilize Form S-3 for the sale of their Registrable Securities, such action to be taken as soon as practicable after the end of the fiscal year in which the first registration statement filed by the
Company for the offering of its securities to the general public is declared effective; 
 (c) file with the SEC in a timely manner all
reports and other documents required of the Company under the Securities Act and the Exchange Act; and 
 (d) furnish to any Holder, so long
as the Holder owns any Registrable Securities, forthwith upon request (i) a written statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after ninety (90) days after the effective
date of the first registration statement filed by the Company), the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold
pursuant to Form S-3 (at any time after it so qualifies), (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company and (iii) such other information as may be
reasonably requested in availing any Holder of any rule or regulation of the SEC which permits the selling of any such securities without registration or pursuant to such form. 
 1.12 Assignment of Registration Rights. The rights to cause the Company to register Registrable Securities pursuant to this Section 1
may be assigned (but only with all related obligations) by a Holder to a transferee or assignee (i) that acquires at least 500,000 

  

 12 

 
shares of Series A Preferred and/or Series B Preferred (as adjusted for stock splits, stock dividends, reclassifications and the like), (ii) that is a
subsidiary, parent, partner, limited partner, retired partner, member, retired member or shareholder of a Holder, (iii) that is an Affiliated Fund, (iv) who is such Holder’s child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law (such a relation, a Holder’s “Immediate Family Member”, which term shall include adoptive
relationships), or (v) that is a trust for the benefit of an individual Holder or such Holder’s Immediate Family Member; provided the Company is, promptly after such transfer, furnished with written notice of the name and address of
such transferee or assignee and the securities with respect to which such registration rights are being assigned; and provided, further, that such assignment shall be effective only if the transferee agrees to be bound by this
Agreement and immediately following such transfer the further disposition of such securities by the transferee or assignee is restricted under the Securities Act. For the purposes of determining the number of shares of Registrable Securities held by
a transferee or assignee, the holdings of transferees and assignees of (x) a partnership who are partners or retired partners of such partnership or (y) a limited liability company who are members or retired members of such limited
liability company (including Immediate Family Members of such partners or members who acquire Registrable Securities by gift, will or intestate succession) shall be aggregated together and with the partnership or limited liability company;
provided that all assignees and transferees who would not qualify individually for assignment of registration rights shall have a single attorney-in-fact for the purpose of exercising any rights, receiving notices or taking any action under
Section 1. 
 1.13 Limitations on Subsequent Registration Rights. From and after the date of this Agreement, the Company
shall not: (a) without the prior written consent of the Holders of at least a majority of the Registrable Securities then outstanding, enter into any agreement with any holder or prospective holder of any securities of the Company which
would allow such holder or prospective holder to include such securities in any registration filed under Section 1.2, 1.3 or 1.4 hereof, unless under the terms of such agreement, such holder or prospective holder may include such securities in
any such registration only to the extent that the inclusion of his securities will not reduce the amount of the Registrable Securities of the Holders which is included or (b) without the prior written consent of the Holders of at least a
majority of the Registrable Securities then outstanding, enter into any agreement with any holder or prospective holder of any securities of the Company which would allow such holder or prospective holder to make a demand registration which
could result in such registration statement being declared effective prior to the earlier of either of the dates set forth in subsection 1.2(a) or within one hundred eighty (180) days of the effective date of any registration effected pursuant
to Section 1.2. 
 1.14 Lock-Up Agreement.  
 (a) Lock-Up Period; Agreement. In connection with a Qualified IPO and upon request of the Company or the underwriters managing such offering of the Company’s securities, each Holder and Common
Holder agrees not to sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any securities of the Company, however or whenever acquired (other than those included in the registration) without the prior
written 

  

 13 

 
consent of the Company or such underwriters, as the case may be, for such period of time (not to exceed one hundred eighty (180) days) from the
effective date of such Qualified IPO as may be requested by the Company or such managing underwriters) and to execute an agreement reflecting the foregoing as may be requested by the underwriters at the time of the Qualified IPO. Notwithstanding the
foregoing, this Section 1.14(a) shall not apply to any securities of the Company which were acquired by a Holder in open market transactions after the date of the Qualified IPO. 
 (b) Limitations. The obligations described in Section 1.14(a) shall apply only if all officers and directors of the Company and all
three percent (3%) or greater securityholders enter into similar agreements, and shall not apply to a registration relating solely to employee benefit plans, or to a registration relating solely to a transaction pursuant to Rule 145 under the
Securities Act. Notwithstanding anything to the contrary in this Section 1.14, if any Holder, Common Holder, officer or director of the Company or three percent (3%) securityholder who is subject to a “lock-up agreement” or
similar agreement (whether or not pursuant to this Agreement) is released from the provisions of such agreement, in whole or in part, prior to its expiration, and is permitted to sell shares of Common Stock or other securities held by such party,
then each Holder and Common Holder shall be released from the provisions of this “lock-up agreement” and any other similar agreement to which it is subject such that each Holder and Common Holder shall be permitted to sell, transfer or
otherwise dispose of the securities it holds on a pro rata basis based on the total number of shares permitted to be transferred by all released parties. 
 (c) Stop-Transfer Instructions. In order to enforce the foregoing covenants, the Company may impose stop-transfer instructions with respect to the securities of each Holder and Common Holder (and the
securities of every other person subject to the restrictions in Section 1.14(a)). 
 (d) Transferees Bound. Each Holder
and Common Holder agrees that it will not transfer securities of the Company unless each transferee agrees in writing to be bound by all of the provisions of this Section 1.14, provided that this Section 1.14(d) shall not apply to
transfers pursuant to a registration statement or transfers after the 180 day anniversary of the effective date of the Company’s initial registration statement subject to this Section 1.14. 
 1.15 Termination of Registration Rights. No Holder shall be entitled to exercise any right provided for in this Section 1 after the
earlier of (i) five years following the consummation of a Qualified IPO, (ii) such time, on or after the closing of the Company’s first registered public offering of Common Stock, at which all Registrable Securities held by such
Holder (and any affiliate of the Holder with whom such Holder must aggregate its sales under Rule 144) can be sold in any three month period under Rule 144 or another similar exemption under the Securities Act without registration, or
(iii) upon termination of the Agreement, as provided in Section 3.1. 
  

 14 

 2. Covenants of the Company. 
 2.1 Delivery of Financial Statements. The Company shall deliver to each Major Investor: 
 (a) as soon as practicable, but in any event within forty-five (45) days after the end of each of the first three quarters of each fiscal year of
the Company, and within thirty (30) days after the end of each month, an unaudited profit or loss statement for such fiscal quarter and/or month, a statement of cash flows for such fiscal quarter and/or month, and an unaudited balance sheet as
of the end of such fiscal quarter and/or month, to be in reasonable detail and prepared in accordance with generally accepted accounting principles (“GAAP”); 
 (b) as soon as practicable, but in any event within ninety (90) days after the end of each of fiscal year of the Company, an audited profit or loss
statement for such fiscal year, a statement of cash flows for such fiscal year, and an audited balance sheet as of the end of such fiscal year, to be in reasonable detail and prepared in accordance with GAAP by an accounting firm selected by the
Board; provided, however, that, for the twelve-month period ended December 31, 2005, the Company shall have until June 30, 2006 to deliver audited financial statements to the Major Investors; 
 (c) as soon as practicable, but in any event not less than thirty (30) days prior to the end of each fiscal year, a budget and operating plan for
the next fiscal year, prepared on a monthly basis, and, as soon as prepared, any other budgets or revised budgets prepared by the Company; and 
 (d) with respect to the financial statements called for in subsections (a) and (b) of this Section 2.1, an instrument executed by the Chief Financial Officer or President of the Company and certifying that such financials
were prepared in accordance with GAAP consistently applied with prior practice for earlier periods (with the exception of footnotes that may be required by GAAP) and fairly present the financial condition of the Company and its results of operation
for the period specified, subject to year-end adjustments (if applicable), provided that the foregoing shall not restrict the right of the Company to change its accounting principles consistent with GAAP, if the Board determines that it is in
the best interest of the Company to do so. 
 2.2 Inspection. The Company shall permit each Major Investor, at such
Holder’s expense, to visit and inspect the Company’s properties, to examine its books of account and records and to discuss the Company’s affairs, finances and accounts with its officers, all at such reasonable times as may be
requested by the Major Investor; provided, however, that the Company shall not be obligated pursuant to this Section 2.2 to provide access to any information that the Board deems, in good faith, is a trade secret or similar
confidential information and should not be disclosed due to the potential harm to the Company. 
 2.3 Right of First Offer.
Subject to the terms and conditions specified in this Section 2.3, the Company hereby grants to each Common Holder and each Major Investor a right of first offer with respect to future sales by the Company of its Shares (as hereinafter
defined), provided at the time of any such future sale of such Shares, such Common Holder and Major 

  

 15 

 
Investor qualifies as an “accredited investor,” as such term is defined under Rule 501(a) under Regulation D of the Securities Act. For purposes of
this Section 2.3, a Major Investor includes any general partners, managing members and affiliates of a Major Investor, including Affiliated Funds. A Major Investor who chooses to exercise the right of first offer may designate as purchasers
under such right itself or its partners, shareholders or affiliates, including Affiliated Funds, in such proportions as it deems appropriate. 
 Each time the Company proposes to offer any shares of, or securities convertible into or exercisable for any shares of, any class of its capital stock (“Shares”), the Company shall first make an offering of such
Shares to each Common Holder and Major Investor in accordance with the following provisions: 
 (a) The Company shall deliver a notice by
certified mail (“Notice”) to the Common Holders and Major Investors stating (i) its bona fide intention to offer such Shares, (ii) the number of such Shares to be offered, and (iii) the price and terms, if any,
upon which it proposes to offer such Shares. 
 (b) Within fifteen (15) calendar days after delivery of the Notice, each Common Holder
and Major Investor may elect to purchase or obtain, at the price and on the terms specified in the Notice, that portion of such Shares which equals the product of (A) the number of Shares and (B) the quotient of (x) the number of
shares of Common Stock issued and held, or issuable upon conversion and exercise of all outstanding convertible or exercisable securities then held, by such Common Holder or Major Investor, as the case may be (provided, however, that with
respect to a Common Holder, any shares of Common Stock acquired by such Common Holder from another Common Holder after the date of this Agreement shall not be included), and (y) the total number of shares of Common Stock then outstanding
(assuming full conversion and exercise of all outstanding convertible or exercisable securities). Such purchase shall be completed at the same closing as that of any third party purchasers or at an additional closing thereunder. The Company shall
promptly, in writing, inform each Common Holder and Major Investor that purchases all the shares available to it (each, a “Fully-Exercising Holder”) of any other Common Holder and/or Major Investor’s failure to do
likewise. During the 10-day period commencing after receipt of such information, each Fully-Exercising Holder shall be entitled to obtain that portion of the Shares for which Common Holders and Major Investors were entitled to subscribe but which
were not subscribed for by the Common Holder and/or Major Investors that is equal to the proportion that the number of shares of Common Stock issued and held, or issuable upon conversion and exercise of all convertible or exercisable securities then
held, by such Fully-Exercising Holder bears to the total number of shares of Common Stock issued and held, or issuable upon conversion and exercise of all convertible or exercisable securities then held, by all such Fully Exercising Holders who
desire to purchase Shares for which Common Holders and/or Major Investors did not subscribe (assuming full conversion and exercise of all convertible or exercisable securities). 
 (c) The Company may, during the 60-day period following the expiration of the period provided in subsection 2.3(b) hereof, offer the remaining
unsubscribed portion of the Shares to any person or persons at a price not less than, and upon terms no more favorable to the offeree than those specified in the Notice. If the Company does not enter into a 

  

 16 

 
binding agreement for the sale of the Shares within such period, or if such agreement is not consummated within sixty (60) days of the execution
thereof, the right provided hereunder shall be deemed to be revived and such Shares shall not be offered unless first reoffered to the Common Holders and Major Investors in accordance herewith. 
 (d) The right of first offer in this Section 2.3 shall be applicable to: (i) any shares of Common Stock or Preferred Stock of any kind of the
Company, whether now or hereafter authorized; (ii) any rights, options, or warrants to purchase said Common Stock or Preferred Stock and securities carrying any such right, option or warrant; (iii) any securities of any type whatsoever
that are, or may become, convertible into said Common Stock or Preferred Stock; and (iv) any agreement or commitment to issue any of the foregoing; provided, however, that the right of first offer in this Section 2.3 shall
not be applicable to any shares of (x) Series A Preferred sold pursuant to the Series A Purchase Agreement; (y) Series B Preferred sold pursuant to the Purchase Agreement; or (z) Common Stock or Preferred Stock of the Company excluded
from the definition of “Additional Stock” in accordance with Section 4.4.4(d)(vi) of the Company’s Amended and Restated Articles of Incorporation (the “Restated Articles”). 
 (e) The right of first offer held by each Major Investor pursuant to this Section 2.3 may only be assigned (but only with all related obligations)
by a Major Investor to a transferee or assignee (i) that acquires at least 500,000 shares of Series A Preferred and/or Series B Preferred (as adjusted for stock splits, stock dividends, reclassifications and the like), (ii) that is a
subsidiary, parent, partner, limited partner, retired partner, member, retired member or shareholder of a Major Investor, or (iii) that is an Affiliated Fund. The right of first offer held by each Common Holder pursuant to this Section 2.3
may only be assigned (but only with all related obligations) by a Common Holder to a transferee or assignee (i) that is a partner, limited partner, retired partner, member, retired member or shareholder of a Common Holder, provided such person
was a partner, limited partner, retired partner, member, retired member or shareholder of such Common Holder as of the date of this Agreement (each, an “Existing Beneficial Owner”), (ii) who is a child, stepchild,
grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of an Existing Beneficial Owner (such a relation, an “Immediate Family
Member”, which term shall include adoptive relationships), (iii) that is a trust for the benefit of an individual Existing Beneficial Owner or such Existing Beneficial Owner’s Immediate Family Member, or (iv) that is a
limited liability company owned solely by the Existing Beneficial Owner(s) of such Common Holder; provided the Company is, promptly after such transfer, furnished with written notice of the name and address of such transferee or assignee and
the securities with respect to which such rights of first refusal are being assigned; and provided, further, that such assignment shall be effective only if the transferee agrees to be bound by this Agreement. For the purposes of
determining the number of shares of Series A Preferred and/or Series B Preferred held by a transferee or assignee, the holdings of transferees and assignees of (x) a partnership who are partners or retired partners of such partnership or
(y) a limited liability company who are members or retired members of such limited liability company (including Immediate Family Members of such partners or members who acquire Series A Preferred and/or Series B Preferred by gift, will or
intestate succession) shall be aggregated together and with the partnership or limited liability company; provided that all assignees and transferees who would not qualify individually for assignment of rights of first refusal shall have a
single attorney-in-fact for the purpose of exercising any rights, 

  

 17 

 
receiving notices or taking any action under Section 2.3. Notwithstanding anything to the contrary contained in this Section 2.3, no Common Holder
shall have the right of first offer set forth in Section 2.3 of this Agreement if more than five percent (5%) of such Common Holder’s membership interests are held by any persons or entities that are not (A) Existing Beneficial
Owners or (B) Immediate Family Members of (I) John Plaza, in the case of Odyssey Biofuels, LLC, (II) Karen Say, Winfield Brown, Michael Muller or Michael McAloon, in the case of IOA LLC, or (III) Martin Tobias, in the case of 55 Bell
Street Properties LLC. 
 2.4 Observation Rights. IOA LLC and any Major Investor who is not represented on the Board shall each
be entitled to appoint one (1) representative who is a principal or employee of, or otherwise affiliated with, IOA LLC or such Major Investor, as the case may be (the “Observer”), to attend all meetings of the Board, and
the Company shall provide the Observer with copies of all notices of such meetings and all other written materials provided to the directors of the Company at the same time as such notices and written materials are provided to the directors of the
Company; provided, that such board observation right is expressly contingent on the Observer being subject to a non-disclosure agreement with the Company, in a form reasonably acceptable to the Company and the Observer. Notwithstanding the
foregoing, the Company reserves the right to withhold any information and to exclude the Observer from any meeting or portion thereof if such Observer is a competitor of the Company, as deemed in the Board’s sole discretion, or if access to
such information or attendance at such meeting could adversely affect the attorney-client privilege between the Company and its counsel. The Observer shall be entitled to consult with and advise management of the Company on significant business
issues, including management’s proposed annual operating plans. 
 2.5 Company Subsidiaries. The approval of the Board
(including the approval of at least one of the directors designated by holders of Series A Preferred and Series B Preferred voting together as a single class) is required (a) to create or form any subsidiary or similar business entity of the
Company (each, a “Company Subsidiary”), (b) to approve, adopt or materially amend the Company Subsidiary’s charter documents and/or operating agreement, (c) for a Company Subsidiary to take any of the actions,
where applicable, described in Section 4.4.12 of the Company’s Amended and Restated Articles of Incorporation, as such may be amended from time to time, (d) for a Company Subsidiary to incur indebtedness for borrowed money in excess
of $250,000 or (e) for a Company Subsidiary to enter into, amend or terminate a contract that would be material to the Company (on a consolidated basis). 
 2.6 Expenses. The Company shall pay the reasonable out-of-pocket expenses incurred by non-employee directors in connection with their attendance at Board meetings. 
 2.7 Confidential Information and Invention Assignment Agreements. The Company shall require that each of its present and future employees
enter into the Company’s standard form Proprietary Information and Inventions Agreement, in substantially the form approved by the Investors, which includes a one year non-competition and non-solicitation agreement. The Company shall require
that each of its present and future consultants sign an agreement containing confidentiality and invention assignment provisions. 
  

 18 

 2.8 Stock Option and Restricted Stock Matters. Except as expressly otherwise approved the
Board, options issued to employees pursuant to the Company’s 2005 Stock Option Plan shall be granted with four-year vesting, with twenty-five percent (25%) of the options vesting on the first anniversary from the date of grant and the
remainder vesting in equal monthly installments after the first anniversary until fully vested. Any shares of Common Stock issued by the Company that is subject to vesting shall be subject to a repurchase option in favor of the Company, pursuant to
which the Company may repurchase such unvested shares at their original cost upon the termination of such holder’s employment or consulting relationship with the Company, with or without cause. 
 2.9 Compensation Committee and Audit Committee. The Board shall appoint a Compensation Committee from its members consisting of at least
two non-employee directors to recommend compensation, including option grants or other equity compensation, to the full Board. The Board shall appoint an Audit Committee from its members consisting of at least two non-employee directors. 

2.10 Directors and Officers Insurance. The Company shall obtain directors and officers insurance in the amount of $2,000,000, if
available on commercially reasonable terms, as determined by the Board. 
 2.11 Key Person Insurance. As soon as
reasonably possible after the date hereof, the Company shall obtain and maintain a key person life insurance policy, if available on commercially reasonable terms, as determined by the Board, on each of John Plaza and Martin Tobias in an amount of
not less than $1,000,000 per person, with proceeds payable to the Company; provided, that, at the election of holders of a majority of the then-outstanding shares of Series A Preferred and Series B Preferred (voting together as a single class on an
as-converted into Common Stock basis), such proceeds shall be set aside and be used to pay the liquidation preference on the Series A Preferred and Series B Preferred or to redeem shares of Series A Preferred and Series B Preferred, each in
accordance with the terms of the Restated Articles. 
 2.12 Director Indemnity. So long as any director designated by an
Investor serves on the Board, the Company’s Articles of Incorporation and Bylaws, as such may be amended from time to time, shall provide for indemnification and exculpation of the directors of the Company to the fullest extent permitted
pursuant to applicable law. 
 2.13 Transfer Restrictions. The Company may not assign its right of first refusal with respect
to transfers of Common Stock by any shareholder of the Company, without, in each case, first offering to assign such rights, at least ten (10) days prior to the last date that the Company has the right to exercise its right of first refusal
pursuant to such transfer, to the Major Investors, on a pro rata basis based on the number of Registrable Securities held by each. 
 2.14
Termination of Covenants. 
 (a) The covenants set forth in Sections 2.1 and 2.2 shall terminate as to each Holder and be of no
further force or effect upon the earlier of: (i) immediately prior to the consummation of a Qualified IPO; (ii) the Company first becomes subject to the periodic 

  

 19 

 
reporting requirements of Sections 13 or 15(d) of the Exchange Act; and (ii) upon termination of the Agreement, as provided in Section 3.1.

 (b) The covenants set forth in Sections 2.3 through 2.13 shall terminate as to each Holder and be of no further force or effect upon
the earlier of: (i) immediately prior to the consummation of a Qualified IPO; (ii) the effective date of a Change of Control; and (iii) upon termination of the Agreement, as provided in Section 3.1. 
 3. Miscellaneous. 
 3.1
Termination. This Agreement shall terminate, and have no further force and effect, when the Company shall consummate a transaction or series of related transactions deemed to be a liquidation, dissolution or winding up of the Company
pursuant to the Restated Articles, as such Restated Articles may be amended from time to time; provided, however, if the consideration received by the shareholders of the Company in such deemed liquidation includes equity securities,
termination of this Agreement shall result only if such equity securities are publicly traded. 
 3.2 Entire Agreement. This
Agreement constitutes the entire agreement between the parties hereto pertaining to the subject matter hereof, and any and all other written or oral agreements relating to the subject matter hereof existing between the parties hereto are expressly
canceled. 
 3.3 Successors and Assigns. Except as otherwise provided in this Agreement, the terms and conditions of this
Agreement shall inure to the benefit of and be binding upon the respective permitted successors and assigns of the parties (including transferees of any of the Series A Preferred or Series B Preferred, or any Common Stock issued upon conversion
thereof). Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this
Agreement, except as expressly provided in this Agreement. 
 3.4 Amendments and Waivers. Any term of this Agreement may be
amended or waived only with the written consent of the Company and the holders of a majority of the Registrable Securities then outstanding; provided, however, that if such amendment or waiver has the effect of affecting the rights of
a Major Investor, then such amendment or waiver shall require the consent of each Major Investor; provided, further, however that if such amendment or waiver has the effect of affecting the rights of a Common Holder under
Section 2.3, then such amendment or waiver shall require the consent of Common Holders representing at least a majority of the shares of Common Stock held by such Common Holders. Notwithstanding the foregoing, this Agreement may be amended
without further consent for the sole purpose of including additional purchasers of Series B Preferred pursuant to the Purchase Agreement as “Investors” and “Holders.” Any amendment or waiver effected in accordance with this
paragraph shall be binding upon each party to the Agreement, whether or not such party has signed such amendment or waiver, each future holder of all such Registrable Securities, and the Company. 
  

 20 

 3.5 Notices. Any notice required or permitted by this Agreement shall be in writing and
shall be deemed sufficient upon delivery, when delivered personally or by overnight courier or sent by fax (upon customary confirmation of receipt), or 48 hours after being deposited in the U.S. mail, as certified or registered mail, with postage
prepaid, addressed to the party to be notified at such party’s address as set forth on the signature page or Exhibit A hereto, or as subsequently modified by written notice, and (a) if to the Company, with a copy to DLA Piper
US LLP, Attention: Steven R. Yentzer, 701 Fifth Avenue, Suite 7000, Seattle, WA 98104, or (b) if to the Investors, with a copy to Ronald Star, Howard Rice Nemerovski Canady Falk & Rabkin, A Professional Corporation, 3 Embarcadero
Center, San Francisco, CA 94111. 
 3.6 Severability. If one or more provisions of this Agreement are held to be unenforceable
under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (a) such provision shall be excluded from
this Agreement, (b) the balance of the Agreement shall be interpreted as if such provision were so excluded and (c) the balance of the Agreement shall be enforceable in accordance with its terms. 
 3.7 Governing Law; Arbitration. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Washington
applicable to contracts executed in and to be performed in that state. In any action among or between any of the parties arising out of or relating to this Agreement, the parties agree to submit such dispute to binding arbitration. The binding
arbitration shall be conducted under the rules of the American Arbitration Association for commercial disputes and conducted in Seattle, Washington, or as otherwise agreed by the parties.
 3.8 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. 
 3.9 Titles and Subtitles. The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 
 3.10 Aggregation
of Stock. All shares of Common Stock, in the case of Common Holders, and all shares of Series A Preferred and Series B Preferred, in the case of the Investors, held or acquired by affiliated persons and entities (including Affiliated Funds
and their partners, retired partners, members, former members and shareholders, or the estates and family members of any such partners, retired partners, members, former members, shareholders and any trusts for the benefit of any of the foregoing
persons) shall be aggregated together for the purpose of determining the availability of any rights under this Agreement. 
 3.11 Stock
Splits, Stock Dividends, etc. In the event of any issuance of shares of the Company’s voting securities hereafter to any of the parties hereto (including, without limitation, in connection with any stock split, stock dividend,
recapitalization, reorganization or similar transaction), such shares shall become subject to this Agreement and shall be endorsed with the legend set forth above. Wherever in this Agreement there is a reference to a specific number of shares of
Common Stock, Series A Preferred and/or Series B Preferred or any other 

  

 21 

 
class or series of the equity securities of the Company, then, upon the occurrence of any of foregoing events, the specific number of shares so referenced in
this Agreement shall automatically be proportionally adjusted to reflect the effect on the outstanding shares of such class or series of stock by such event. 
 3.12 Amendment and Restatement of Existing Agreement. Pursuant to the Company’s receipt of the approvals required under the Existing Agreement in accordance with Section 3.4, given pursuant to
that certain Consent of Shareholders in Lieu of Special Meeting dated February 7, 2007 (the “Consent of Shareholders”), the Existing Agreement is deemed to be amended and restated in its entirety, and by execution of the
Consent of Shareholders, each of the Investors and Common Holders who were parties to the Existing Agreement are deemed to have executed this Agreement. 
 [Signature pages follow.] 
  

 22 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated Investor Rights Agreement
as of the date first written above. 
  

			
	COMPANY:
	
	IMPERIUM RENEWABLES, INC.
		
	By:	 	 /s/ Martin Tobias

		 	Martin Tobias
		 	Chief Executive Officer

  

			
		
	Address:	 	1418 Third Avenue, Suite 300
		 	Seattle, WA 98101
		
	Facsimile:	 	(206) 254-0204

 [Signature pages follow.]2005 Stock Option Plan and Related Agreements

 Exhibit 10.4 
 SEATTLE BIOFUELS, INC. 
 2005 STOCK OPTION PLAN 
 1. Purposes of the Plan. The purposes of this 2005 Stock Option Plan are to attract and retain the best available personnel for positions of
substantial responsibility, to provide additional incentive to Employees and Consultants of the Company and its Subsidiaries and to promote the success of the Company’s business. Options granted under the Plan may be Incentive Stock Options (as
defined under Section 422 of the Code) or Nonstatutory Stock Options, as determined by the Administrator at the time of grant of an Option and subject to the applicable provisions of Section 422 of the Code, as amended, and the regulations
promulgated thereunder. 
 2. Definitions. As used herein, the following definitions shall apply: 
 (a) “Administrator” means the Board or any of its Committees appointed pursuant to Section 4 of the Plan. 
 (b) “Affiliate” means an entity other than a Subsidiary (as defined below) in which the Company owns an equity interest or which,
together with the Company, is under common control of a third person or entity. 
 (c) “Applicable Laws” means the legal
requirements relating to the administration of stock option plans under applicable U.S. state corporate laws, U.S. federal and state securities laws, the Code, any Stock Exchange rules and regulations and the applicable laws of any other country or
jurisdiction where Options are granted under the Plan, as such laws, rules, regulations and requirements shall be in place from time to time. 
 (d) “Board” means the Board of Directors of the Company. 
 (e) “Code” means the Internal Revenue
Code of 1986, as amended. 
 (f) “Committee” means the Committee appointed by the Board of Directors to administer the Plan
in accordance with Section 4 below. 
 (g) “Common Stock” means the Common Stock, no par value, of the Company.

 (h) “Company” means Seattle Biofuels, Inc., a Washington corporation. 
 (i) “Consultant” means any person, including an advisor, who renders services to the Company, or any Parent, Subsidiary or Affiliate,
and is compensated for such services, and any director of the Company whether compensated for such services or not. 
 (j)
“Continuous Status as an Employee or Consultant” means the absence of any interruption or termination of service as an Employee or Consultant. Continuous Status as an Employee or Consultant shall not be considered interrupted in the
case of: (i) authorized sick leave; (ii) military leave; (iii) any other leave of absence approved by the Administrator, provided that such leave is for a period of not more than 90 days, unless re-employment upon the expiration of
such leave is guaranteed by contract or statute, or unless provided otherwise pursuant to Company policy adopted from time to time; or (iv) in the case of transfers between locations of the Company or between the Company, its Parent(s),
Affiliates, Subsidiaries or their respective successors. For purposes of this Plan, a change in status from 

  

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an Employee to a Consultant or from a Consultant to an Employee will not constitute an interruption of Continuous Status as an Employee or Consultant.

 (k) “Corporate Transaction” means: 
 (i) the acquisition of this Company by another entity by means of merger, consolidation or other transaction or series of related transactions resulting in the exchange of the outstanding shares of this Company for
securities of or consideration issued, or caused to be issued, by the acquiring entity or any of its affiliates, or 
 (ii) the
Company’s sale, lease or other distribution of all or substantially all of its assets; 
 provided, however, that after the Corporate Transaction
the shareholders of the Company immediately prior to the Corporate Transaction own less than a majority of the outstanding voting equity securities of the surviving entity immediately following the Corporate Transaction; provided, further,
that neither (x) a merger effected exclusively for the purpose of changing the domicile of the Company nor (y) an equity financing in which the Company is the surviving company shall be considered a “Corporate Transaction.”

 (l) “Director” means a member of the Board. 
 (m) “Employee” means any person, including officers and Directors, employed by the Company or any Parent, Subsidiary or Affiliate of the
Company, with the status of employment determined based upon such minimum number of hours or periods worked as shall be determined by the Administrator in its discretion, subject to any requirements of the Code. The payment of a director’s fee
to a Director shall not be sufficient to constitute “employment” of such Director by the Company. 
 (n) “Exchange
Act” means the Securities Exchange Act of 1934, as amended. 
 (o) “Fair Market Value” means, as of any date, the
fair market value of Common Stock determined as follows: 
 (i) If the Common Stock is listed on a Stock Exchange, its Fair Market Value
shall be the closing sales price for such stock (or the closing bid, if no sales were reported), as quoted on such Stock Exchange, or the exchange with the greatest volume of trading in Common Stock for the last market trading day prior to the time
of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
 (ii) If the
Common Stock is quoted on the Nasdaq System (but not on the National Market thereof) or regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean between the high bid and low
asked prices for the Common Stock for the last market trading day prior to the time of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or 
 (iii) In the absence of an established market for the Common Stock, the Fair Market Value thereof shall be determined in good faith by the
Administrator. 
 (p) “Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the
meaning of Section 422 of the Code, as designated in the applicable written Option Agreement. 
  

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 (q) “Listed Security” means any security of the Company that is listed or approved for
listing on a Stock Exchange. 
 (r) “Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive
Stock Option, as designated in the applicable written Option Agreement. 
 (s) “Option” means a stock option granted
pursuant to the Plan. 
 (t) “Option Agreement” means a written agreement between an Optionee and the Company reflecting the
terms of an Option granted under the Plan and includes any documents attached to such Option Agreement, including, but not limited to, a notice of stock option grant and a form of exercise notice. 
 (u) “Option Exchange Program” means a program whereby outstanding Options are exchanged for Options with a lower exercise price.

 (v) “Optioned Stock” means the Common Stock subject to an Option. 
 (w) “Optionee” means an Employee or Consultant who receives an Option. 
 (x) “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code,
or any successor provision. 
 (y) “Plan” means this 2005 Stock Option Plan. 
 (z) “Reporting Person” means an officer, Director, or greater than 10% shareholder of the Company within the meaning of Rule 16a-2 under
the Exchange Act, who is required to file reports pursuant to Rule 16a-3 under the Exchange Act. 
 (aa) “Rule 16b-3” means
Rule 16b-3 promulgated under the Exchange Act, as the same may be amended from time to time, or any successor provision. 
 (bb)
“Share” means a share of the Common Stock, as adjusted in accordance with Section 11 of the Plan. 
 (cc)
“Stock Exchange” means any established stock exchange or a national market system including, without limitation, the National Market of the National Association of Securities Dealers, Inc. Automated Quotation
(“Nasdaq”) System, on which prices for the Common Stock are quoted at any given time. 
 (dd) “Subsidiary”
means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code, or any successor provision. 
 3. Stock Subject to the Plan. Subject to the provisions of Section 11 of the Plan, the maximum aggregate number of Shares that may be sold under the Plan is 1,800,000. The Shares may be authorized, but
unissued, or reacquired Common Stock. If an Option expires or becomes unexercisable for any reason without having been exercised in full, or is surrendered pursuant to an Option Exchange Program, the unpurchased Shares that were subject thereto
shall, unless the Plan shall have been terminated, become available for future grant under the Plan. In addition, any shares of Common Stock that are retained by the Company upon exercise of an Option in order to satisfy the exercise or purchase
price for such Option or any withholding taxes due with respect to such exercise shall be treated as not 

  

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issued and shall continue to be available under the Plan. Shares repurchased by the Company pursuant to any repurchase right that the Company may have shall
not be available for future grant under the Plan. 
 4. Administration of the Plan. 
 (a) Initial Plan Procedure. Prior to the date, if any, upon which the Company becomes subject to the Exchange Act, the Plan shall be administered
by the Board or a Committee appointed by the Board. 
 (b) Plan Procedure After the Date, if any, Upon Which the Company Becomes Subject
to the Exchange Act. 
 (i) Multiple Administrative Bodies. If permitted by Rule 16b-3, grants under the Plan may be made by
different bodies with respect to Directors, non-Director officers and Employees or Consultants who are not Reporting Persons. 
 (ii)
Administration With Respect to Reporting Persons. With respect to grants of Options to Employees who are Reporting Persons, such grants shall be made by (A) the Board or (B) a Committee designated by the Board to make grants to
Reporting Persons under the Plan, which Committee shall be constituted in such a manner as to permit grants under the Plan to comply with Rule 16b-3. Once appointed, such Committee shall continue to serve in its designated capacity until
otherwise directed by the Board. From time to time the Board may increase the size of the Committee and appoint additional members thereof, remove members (with or without cause) and appoint new members in substitution therefor, fill vacancies,
however caused, and remove all members of the Committee and thereafter directly make grants to Reporting Persons under the Plan, all to the extent permitted by Rule 16b-3. 
 (iii) Administration With Respect to Consultants and Other Employees. With respect to grants of Options to Employees or Consultants who are not
Reporting Persons, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board, which Committee shall be constituted in such a manner as to satisfy the Applicable Laws. Once appointed, such Committee shall
continue to serve in its designated capacity until otherwise directed by the Board. From time to time the Board may increase the size of the Committee and appoint additional members thereof, remove members (with or without cause) and appoint new
members in substitution therefor, fill vacancies, however caused, and remove all members of the Committee and thereafter directly administer the Plan, all to the extent permitted by the Applicable Laws. 
 (c) Powers of the Administrator. Subject to the provisions of the Plan and in the case of a Committee, the specific duties delegated by the Board
to such Committee, and subject to the approval of any relevant authorities, including the approval, if required, of any Stock Exchange, the Administrator shall have the authority, in its discretion: 
 (i) to determine the Fair Market Value of the Common Stock, in accordance with Section 2(o) of the Plan; 
 (ii) to select the Consultants and Employees to whom Options may from time to time be granted hereunder; 
 (iii) to determine whether and to what extent Options are granted hereunder; 
  

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 (iv) to determine the number of shares of Common Stock to be covered by each such Option granted
hereunder; 
 (v) to approve forms of agreement for use under the Plan; 
 (vi) to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Option granted hereunder, which terms and conditions
include, but are not limited to, the exercise price, the time or times when Options may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, any provisions for early exercise
subject to a right of repurchase by the Company, and any restriction or limitation regarding any Option or any Optioned Stock, based in each case on such factors as the Administrator, in its sole discretion, shall determine; 
 (vii) to determine whether and under what circumstances an Option may be settled in cash under Section 9(g) instead of Common Stock and to make any
other amendments or adjustments to any Option that the Administrator determines, in its discretion and under the authority granted to it under the Plan, to be necessary or advisable, provided however that no amendment or adjustment to an Option that
would materially and adversely affect the rights of any Optionee shall be made without the prior written consent of the Optionee; 
 (viii)
to reduce the exercise price of any Option to the then-current Fair Market Value if the Fair Market Value of the Common Stock covered by such Option has declined since the date the Option was granted; 
 (ix) to initiate an Option Exchange Program; 
 (x) to construe and interpret the terms of the Plan and Options granted under the Plan; and 
 (xi) in order to fulfill the
purposes of the Plan and without amending the Plan, to modify grants of Options to participants who are foreign nationals or employed outside of the United States in order to recognize differences in local law, tax policies or customs. 

(d) Effect of Administrator’s Decision. All decisions, determinations and interpretations of the Administrator shall be final and binding
on all holders of Options. 
 5. Eligibility. 
 (a) Recipients of Grants. Nonstatutory Stock Options may be granted to Employees and Consultants. Incentive Stock Options may be granted only to Employees; provided however that Employees of Affiliates shall
not be eligible to receive Incentive Stock Options. An Employee or Consultant who has been granted an Option may, if he or she is otherwise eligible, be granted additional Options. 
 (b) Type of Option. Each Option shall be designated in the Option Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option.
However, notwithstanding such designations, to the extent that the aggregate Fair Market Value of Shares with respect to which Options designated as Incentive Stock Options are exercisable for the first time by any Optionee during any calendar year
(under all plans of the Company or any Parent or Subsidiary) exceeds $100,000, such excess Options shall be treated as Nonstatutory Stock Options. For purposes of this Section 5(b), Incentive Stock Options shall be taken into account in the
order in which they were granted, and the Fair 

  

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Market Value of the Shares subject to an Incentive Stock Option shall be determined as of the date of the grant of such Option. 
 (c) At-Will Relationship. The Plan shall not confer upon any Optionee any right with respect to continuation of employment or consulting
relationship with the Company, nor shall it interfere in any way with such Optionee’s right or the Company’s right to terminate his or her employment or consulting relationship at any time, with or without cause. 
 6. Term of Plan. The Plan shall become effective upon its adoption by the Board. It shall continue in effect for a term of ten years unless sooner
terminated under Section 14 of the Plan. 
 7. Maximum Term of Option. The maximum term of each Option shall be the term stated
in the Option Agreement; provided, however, that the maximum term shall be no more than ten years from the date of grant thereof or such shorter term as may be provided in the Option Agreement. However, in the case of an Incentive Stock Option
granted to an Optionee who, at the time the Option is granted, owns stock representing more than 10% of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the maximum term of the Option shall be five
years from the date of grant thereof or such shorter term as may be provided in the Option Agreement. 
 8. Option Exercise Price and
Consideration. 
 (a) The per Share exercise price for the Shares to be issued pursuant to exercise of an Option shall be such price as is
determined by the Board and set forth in the applicable Option Agreement, but shall be subject to the following: 
 (i) In the case of an
Incentive Stock Option that is: 
 (A) granted to an Employee who, at the time of the grant of such Incentive Stock Option, owns stock
representing more than 10% of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant.

 (B) granted to any other Employee, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date
of grant. 
 (ii) In the case of a Nonstatutory Stock Option that is: 
 (A) granted prior to the date, if any, on which any of the Company’s securities becomes a Listed Security, to a person who is at the time of grant
is a Ten Percent Holder, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant if required by the Applicable Laws and, if not so required, shall be such price as is determined by the
Administrator; 
 (B) granted prior to the date, if any, on which any of the Company’s securities becomes a Listed Security, to any
other eligible person, the per Share exercise price shall be no less than 85% of the Fair Market Value per Share on the date of grant if required by the Applicable Laws and, if not so required, shall be such price as is determined by the
Administrator. 
 (C) granted on or after the date, if any, on which any of the Company’s securities becomes a Listed Security, to any
eligible person, the per share exercise price shall be such price as determined by the Administrator provided that if such eligible person is, at the time of the 

  

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grant of such Option, a “covered employee” (as such term is defined in Section 162(m) of the Code) of the Company, the per share exercise
price shall be no less than 100% of the Fair Market Value on the date of grant if such Option is intended to qualify as performance-based compensation under Section 162(m) of the Code. 
 (iii) Notwithstanding the foregoing, Options may be granted with a per Share exercise price other than as required above pursuant to a Corporate
Transaction. 
 (b) The exercise price for Shares to be issued upon exercise of an Option shall be paid in full to the Company by delivery of
consideration equal to the product of the Option exercise price and the number of Shares purchased. Such consideration must be paid in cash or by check, or, in the sole discretion of the Administrator, by the following alternative forms of payment:
(1) a full-recourse promissory note, (2) cancellation of indebtedness, (3) other Shares that (x) in the case of Shares acquired upon exercise of an Option, have been owned by the Optionee for more than six months on the date of
surrender or such other period as may be required to avoid a charge to the Company’s earnings, and (y) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which such Option shall be
exercised, (4) authorization for the Company to retain from the total number of Shares as to which the Option is exercised that number of Shares having a Fair Market Value on the date of exercise equal to the exercise price for the total number
of Shares as to which the Option is exercised, (5) delivery of a properly executed exercise notice together with such other documentation as the Administrator and the broker, if applicable, shall require to effect an exercise of the Option and
delivery to the Company of the sale or loan proceeds required to pay the exercise price and any applicable income or employment taxes, (6) delivery of an irrevocable subscription agreement for the Shares that irrevocably obligates the Optionee
to take and pay for the Shares not more than twelve months after the date of delivery of the subscription agreement, (7) any combination of the foregoing methods of payment, or (8) such other consideration and method of payment for the
issuance of Shares to the extent permitted under the Applicable Laws and approved by the Administrator, in its sole discretion. In making its determination as to the type of consideration to accept, the Administrator shall consider if acceptance of
such consideration may be reasonably expected to benefit the Company and if it is permitted under Applicable Laws and/or advisable under generally accepted accounting principles. 
 9. Exercise of Option. 
 (a)
Procedure for Exercise; Rights as a Shareholder. Any Option granted hereunder shall be exercisable at such times and under such conditions as determined by the Administrator and reflected in the Option Agreement, which may include vesting
requirements and/or performance criteria with respect to the Company and/or the Optionee. 
 No portion of any vested Option may be exercised
for less 100 Shares (as adjusted pursuant to Section 11(a)); provided, however that if the vested Option is for less than 100 Shares, it may be exercised with respect to all Shares for which it is vested. An Option may not be exercised for a
fraction of a Share. 
 An Option shall be deemed exercised when written notice of such exercise has been given to the Company in accordance
with the terms of the Option by the person entitled to exercise the Option and the Company has received full payment for the Shares with respect to which the Option is exercised. Subject to authorization by the Administrator, in its sole discretion,
full payment may consist of any consideration and method of payment allowable under Section 8(b) of the Plan. As a condition to exercise, the Administrator may require the Optionee to execute and deliver an appropriate stock purchase agreement,
which may include, without limitation, certain restrictions on the transferability of the shares. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized 

  

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transfer agent of the Company) of the stock certificate evidencing such Shares, no right to vote or receive dividends or any other rights as a shareholder
shall exist with respect to the Optioned Stock, not withstanding the exercise of the Option. The Company shall issue (or cause to be issued) such stock certificate promptly upon exercise of the Option. No adjustment will be made for a dividend or
other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 11 of the Plan. 
 Exercise of an Option in any manner shall result in a decrease in the number of Shares that thereafter may be available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is
exercised. 
 (b) Termination of Employment or Consulting Relationship. Subject to Sections 9(c) and 9(d) below, in the event of
termination of an Optionee’s Continuous Status as an Employee or Consultant with the Company, such Optionee may, but only within three months (or such other period of time not less than 30 days as is determined by the Administrator, with such
determination in the case of an Incentive Stock Option being made at the time of grant of the Option and not exceeding three months) after the date of such termination (but in no event later than the expiration date of the term of such Option as set
forth in the Option Agreement), exercise his or her Option to the extent that the Optionee was entitled to exercise it at the date of such termination; provided, however that if such termination is for cause (as determined in the sole
discretion of the Administrator), any vested Option may be exercised no later than the date of such termination. To the extent that the Optionee was not entitled to exercise the Option at the date of such termination, or if the Optionee does not
exercise such Option to the extent so entitled within the time specified herein, the Option shall terminate and the Optioned Stock underlying the unexercised portion of the Option shall revert to the Plan. No termination shall be deemed to occur and
this Section 9(b) shall not apply if (i) the Optionee is a Consultant who becomes an Employee, or (ii) the Optionee is an Employee who becomes a Consultant. 
 (c) Disability of Optionee. Notwithstanding Section 9(b) above, in the event of termination of an Optionee’s Continuous Status as an
Employee or Consultant as a result of his or her total and permanent disability (within the meaning of Section 22(e)(3) of the Code), such Optionee may, but only within twelve months from the date of such termination (but in no event later than
the expiration date of the term of such Option as set forth in the Option Agreement), exercise the Option to the extent otherwise entitled to exercise it at the date of such termination. To the extent that the Optionee was not entitled to exercise
the Option at the date of termination, or if the Optionee does not exercise such Option to the extent so entitled within the time specified herein, the Option shall terminate and the Optioned Stock underlying the unexercised portion of the Option
shall revert to the Plan. 
 (d) Death of Optionee. In the event of the death of an Optionee during the period of Continuous Status as
an Employee or Consultant since the date of grant of the Option, or within 30 days following termination of the Optionee’s Continuous Status as an Employee or Consultant, the Option may be exercised, at any time within twelve months following
the date of death (but in no event later than the expiration date of the term of such Option as set forth in the Option Agreement), by such Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or
inheritance, but only to the extent of the right to exercise that had accrued at the date of death or, if earlier, the date of termination of the Optionee’s Continuous Status as an Employee or Consultant. To the extent that the Optionee was not
entitled to exercise the Option at the date of death or termination, as the case may be, or if the Optionee does not exercise such Option to the extent so entitled within the time specified herein, the Option shall terminate and the Optioned Stock
underlying the unexercised portion of the Option shall revert to the Plan. 
  

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 (e) Extension of Exercise Period. The Administrator shall have full power and authority to extend
the period of time for which an Option is to remain exercisable following termination of an Optionee’s Continuous Status as an Employee or Consultant from the periods set forth in Sections 9(b), 9(c) and 9(d) above or in the Option
Agreement to such greater time as the Board shall deem appropriate, provided, that in no event shall such option be exercisable later than the date of expiration of the term of such Option as set forth in the Option Agreement. 
 (f) Rule 16b-3. Options granted to Reporting Persons shall comply with Rule 16b-3 and shall contain such additional conditions or restrictions as
may be required thereunder to qualify for the maximum exemption for Plan transactions. 
 (g) Buy-Out Provisions. The Administrator
may at any time offer to buy out for a payment in cash or Shares an Option previously granted, based on such terms and conditions as the Administrator shall establish and communicate to the Optionee at the time such offer is made. 
 10. Taxes. 
 (a) As a condition of the
exercise of an Option granted under the Plan, the Optionee (or in the case of the Optionee’s death, the person exercising the Option) shall make such arrangements as the Administrator may require for the satisfaction of any applicable federal,
state, local or foreign withholding tax obligations that may arise in connection with the exercise of the Option and the issuance of Shares. The Company shall not be required to issue any Shares under the Plan until such obligations are satisfied.
If the Administrator allows the withholding or surrender of Shares to satisfy an Optionee’s tax withholding obligations under this Section 10 (whether pursuant to Section 10(c), (d) or (e), or otherwise), the Administrator shall
not allow Shares to be withheld in an amount that exceeds the minimum statutory withholding rates for federal and state tax purposes, including payroll taxes. 
 (b) In the case of an Employee and in the absence of any other arrangement, the Employee shall be deemed to have directed the Company to withhold or collect from his or her compensation an amount sufficient to satisfy
such tax obligations from the next payroll payment otherwise payable after the date of an exercise of the Option. 
 (c) This
Section 10(c) shall apply only after the date, if any, upon which any of the Company’s securities becomes a Listed Security. In the case of an Optionee other than an Employee (or in the case of an Employee where the next payroll payment is
not sufficient to satisfy such tax obligations, with respect to any remaining tax obligations), in the absence of any other arrangement and to the extent permitted under the Applicable Laws, the Optionee shall be deemed to have elected to have the
Company withhold from the Shares to be issued upon exercise of the Option that number of Shares having a Fair Market Value determined as of the applicable Tax Date (as defined below) equal to the amount required to be withheld. For purposes of this
Section 10, the Fair Market Value of the Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined under the Applicable Laws (the “Tax Date”). 
 (d) If permitted by the Administrator, in its discretion, an Optionee may satisfy his or her tax withholding obligations upon exercise of an Option by
surrendering to the Company Shares that have a Fair Market Value determined as of the applicable Tax Date equal to the amount required to be withheld. In the case of shares previously acquired from the Company that are surrendered under this
Section 10(d), such Shares must have been owned by the Optionee for more than six (6) months on the date of surrender (or such other period of time as is required for the Company to avoid adverse accounting charges). 
  

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 (e) Any election or deemed election by an Optionee to have Shares withheld to satisfy tax withholding
obligations under Section 10(c) or (d) above shall be irrevocable as to the particular Shares as to which the election is made and shall be subject to the consent or disapproval of the Administrator. Any election by a Optionee under
Section 10(d) above must be made on or prior to the applicable Tax Date. 
 (f) In the event an election to have Shares withheld is made
by an Optionee and the Tax Date is deferred under Section 83 of the Code because no election is filed under Section 83(b) of the Code, the Optionee shall receive the full number of Shares with respect to which the Option is exercised but
such Optionee shall be unconditionally obligated to tender back to the Company the proper number of Shares on the Tax Date. 
 11.
Adjustments Upon Changes in Capitalization or Corporate Transactions. 
 (a) Changes in Capitalization. 
 (i) Subject to any required action by the shareholders of the Company, the number of shares of Common Stock covered by each outstanding Option, and the
number of shares of Common Stock that have been authorized for issuance under the Plan but as to which no Options have yet been granted or that have been returned to the Plan upon cancellation or expiration of an Option, as well as the price per
share of Common Stock covered by each such outstanding Option, shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend,
combination, recapitalization or reclassification of the Common Stock, or any other increase or decrease in the number of issued shares of Common Stock effected without receipt of consideration by the Company; provided, however, that
conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” 
 (ii) In the event that the Common Stock is exchanged for other stock of the Company (the “New Stock”), each Option shall thereafter give the holder the right to purchase (subject to the vesting schedule and other terms of
the Option), in lieu of the Common Stock issuable upon exercise of the Option, that number of shares of New Stock equal to the number of shares of New Stock that a holder of the Common Stock issuable upon exercise of the Option immediately prior to
such exchange would have received upon such exchange had they held such Common Stock immediately prior to such exchange (with the exercise price of the Option being proportionately adjusted so as to preserve the aggregate exercise price of the
Option). 
 (iii) The adjustment referred to in this Section 11(a) shall be made by the Administrator, whose determination in that
respect shall be final, binding and conclusive. With respect to the foregoing adjustments, the number of shares subject to an Option shall always be a whole number. The Administrator may, if deemed appropriate, provide for a cash payment to any
Optionee in connection with any such adjustment. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason
thereof shall be made with respect to, the number or price of shares of Common Stock subject to an Option. 
 (b) Dissolution or
Liquidation. In the event of the proposed dissolution or liquidation of the Company, other than as provided for in a transaction contemplated in Section 11(c), the Option will terminate immediately prior to the consummation of such proposed
action, unless otherwise provided by the Administrator. In such instances the Administrator may, in the exercise of its sole discretion, declare that any Option shall terminate as of a date fixed by the Administrator and give 

  

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Optionees the right to exercise their Options as to all of the Optioned Stock, including Shares as to which the Option would not otherwise be exercisable.

 (c) Corporate Transactions. 
 (i) In the event of a Corporate Transaction, the exercisability of each outstanding Option shall automatically be accelerated completely so that one hundred percent (100%) of the number of shares of Common Stock covered by such Option
shall be fully vested immediately prior to the consummation of the Corporate Transaction. 
 (ii) Notwithstanding the foregoing, except as
otherwise provided in the Option Agreement evidencing the Option, the vesting of each outstanding Option shall not be accelerated prior to the consummation of the Corporate Transaction if and to the extent: (A) such Option is either to
be assumed by the successor corporation (or parent thereof) at the consummation of the Corporate Transaction or be replaced with a comparable option to purchase shares of the capital stock of the successor corporation (or parent thereof) at the
consummation of the Corporate Transaction, (B) such Option is to be replaced by a comparable cash incentive program of the successor corporation based on the value of the Option at the time of the consummation of the Corporate Transaction or
(C) the acceleration of such Option is subject to other limitations imposed by the Administrator at the time of the Option Grant. The determination of option comparability shall be made by the Board, and its determination shall be conclusive
and binding. 
 (iii) Immediately following the consummation of the Corporate Transaction, all outstanding Options shall terminate and cease
to be outstanding, except to the extent assumed by the successor corporation (or parent thereof). 
 (d) Certain Distributions. In the
event of any distribution to the Company’s shareholders of securities of any other entity or other assets (other than dividends payable in cash or stock of the Company) without receipt of consideration by the Company, the Administrator may, in
its sole discretion, appropriately adjust the price per Share of Common Stock covered by each outstanding Option to reflect the effect of such distribution. 
 (e) No Limitation on Corporate Actions. The grant of Options shall in no way affect the right of the Company to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge,
consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 
 12. Non-Transferability of Options.
Options may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised or purchased during the lifetime of the Optionee only by the
Optionee. The designation of a beneficiary by an Optionee will not constitute a transfer. An Option may be exercised, during the lifetime of the Optionee, only by the Optionee or a transferee permitted by this Section 12. 
 13. Time of Granting Options. The date of grant of an Option shall, for all purposes, be the date on which the Administrator makes the
determination granting such Option, or such other date as is determined by the Board; provided, however, that in the case of any Incentive Stock Option, the grant date shall be the later of the date on which the Administrator makes the
determination granting such Incentive Stock Option or the date of commencement of the Optionee’s employment relationship with the Company. Notice of the determination shall be given to each Employee or Consultant to whom an Option is so granted
within a reasonable time after the date of such grant. 
  

 11 

 14. Amendment and Termination of the Plan. The Board may at any time amend, alter, suspend or
discontinue the Plan, but no amendment, alteration, suspension or discontinuation shall be made that would materially and adversely affect the rights of any Optionee under any outstanding grant, without his or her consent. The Board may condition
the effectiveness of any such amendment on the receipt of shareholder approval at such time and in such manner as the Committee may consider necessary for the Company to comply with or to avail the Company, the Optionees or both of the benefits of
any securities, tax, market listing or other administrative or regulatory requirement which the Board determines to be desirable. 
 15.
Conditions Upon Issuance of Shares. Notwithstanding any other provision of the Plan or any agreement entered into by the Company pursuant to the Plan, the Company shall not be obligated, and shall have no liability for, failure to issue or
deliver any Shares under the Plan unless the Company, in its sole discretion and in consultation with its legal counsel, is satisfied that such issuance or delivery would comply with the Applicable Laws. 
 As a condition to the exercise of an Option, the Company may require the person exercising such Option to make such representations and warranties at the
time of any such exercise that counsel for the Company deems necessary and appropriate, including but not limited to representations and warranties that the Shares are being purchased only for investment and without any present intention to sell or
distribute such Shares. 
 16. Reservation of Shares. The Company, during the term of this Plan, will at all times reserve and keep
available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 
 17. Option Agreements. Options
shall be evidenced by Option Agreements in such form(s) as the Administrator shall approve from time to time. 
 18. Shareholder
Approval. Continuance of the Plan shall be subject to approval by the shareholders of the Company within twelve months before or after the date the Plan is adopted, if required by the Applicable Laws. Such shareholder approval shall be obtained
in the degree and manner required under the Applicable Laws. To the extent shareholder approval is required by the Applicable Laws and not obtained, all Options issued under the Plan shall become void. 
 19. Application of Funds. The proceeds received by the Company from the sale of Common Stock issued upon the exercise of Options shall be used for
general corporate purposes, unless otherwise directed by the Board. 
 20. Indemnification of Committee Members. In addition to all
other rights of indemnification they may have by virtue of being a member of the Board or an executive officer of the Company, Committee members shall be indemnified by the Company for all reasonable expenses and liabilities of any type or nature,
including attorneys’ fees, incurred in connection with any action, suit or proceeding to which they or any of them are a party by reason of, or in connection with, the Plan or any Option granted under the Plan, and against all amounts paid by
them in settlement thereof (provided that such settlement is approved by independent legal counsel selected by the Company), except to the extent that such expenses relate to matters for which it is adjudged that such Committee member is liable for
willful misconduct; provided, however, that within fifteen (15) days after the institution of any such action, suit or proceeding, the Committee Member involved therein shall, in writing, notify the Company of such action, suit or
proceeding, so that the Company may have the opportunity to make appropriate arrangements to prosecute or defend the same. 
  

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 21. Separability. With respect to Incentive Stock Options, if the Plan does not contain any
provision required to be included herein under Section 422 of the Code, such provision shall be deemed to be incorporated herein with the same force and effect as if such provision had been set out in full herein; provided, however, that
to the extent any Option that is intended to qualify as an Incentive Stock Option cannot so qualify, the Option, to that extent, shall be deemed to be a Nonstatutory Stock Option for all purposes of the Plan. 
 22. Non-Exclusivity of the Plan. Neither the adoption of the Plan by the Board nor the submission of the Plan to the shareholders of the Company
for approval shall be construed as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable, including, without limitation, the granting of stock options and the awarding of stock and
cash otherwise than pursuant to the Plan, and such arrangements may be either generally applicable or applicable only in specific cases. 
 23. Exclusion from Pension and Profit-Sharing Computation. By acceptance of an Option, unless otherwise provided in the Agreement evidencing the Option, the Optionee with respect to such Option shall be deemed to have agreed that the
Option is special incentive compensation that will not be taken into account, in any manner, as salary, compensation or bonus in determining the amount of any payment or other benefit under any pension, retirement or other employee benefit plan,
program or policy of the Company or any of its affiliates. 
  

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 SEATTLE BIOFUELS, INC. 
 2005 STOCK OPTION PLAN 
 PLAN HISTORY 
  

			
	June 9, 2005	  	Board adopts Plan, with an initial reserve of 1,800,000 shares.
		
	June 10, 2005	  	Shareholders approve Plan, with an initial reserve of 1,800,000 shares.
		
	December 20, 2005	  	Board and Shareholders approve increase in initial reserve by 576,228 for a new reserve of 2,376,228 shares.
		
	October 13, 2006	  	Board and Shareholders approve increase of 1,908,209 for new reserve of 4,284,437 shares.

 SEATTLE BIOFUELS, INC. 
 2005 STOCK OPTION PLAN 
 STOCK OPTION AGREEMENT 
 1. Grant of Option. Seattle Biofuels, Inc., a Washington corporation (the “Company”), hereby grants to Optionee an option (the
“Option”) to purchase a total number of shares of Common Stock (the “Shares”) set forth in the Notice of Stock Option Grant, at the exercise price per share set forth in the Notice of Stock Option Grant (the “Exercise
Price”) subject to the terms, definitions and provisions of the Company’s 2005 Stock Option Plan (the “Plan”) adopted by the Company, which is incorporated herein by reference. Unless otherwise defined herein, the terms defined
in the Plan shall have the same defined meanings in this Option. 
 If designated an Incentive Stock Option, this Option is intended to
qualify as an Incentive Stock Option as defined in Section 422 of the Code. 
 2. Exercise of Option. This Option shall be
exercisable during its Term in accordance with the Vesting Schedule set out in the Notice of Stock Option Grant and with the provisions of Section 9 of the Plan as follows: 
 (a) Right to Exercise. 
 (i) No
portion of this Option may be exercised for less than 100 Shares (as adjusted pursuant to Section 11(a) of the Plan); provided, however that if the vested Option is for less than 100 Shares, it may be exercised with respect to all Shares for
which it is vested. This Option may not be exercised for a fraction of a Share. 
 (ii) In the event of Optionee’s death, disability or
other termination of employment or consulting relationship, the exercisability of the Option is governed by Sections 5, 6 and 7 below, subject to the limitation contained in Section 2(a)(iii) below. 
 (iii) In no event may this Option be exercised after the Expiration Date of this Option as set forth in the Notice of Stock Option Grant. 
 (b) Method of Exercise. This Option shall be exercisable by execution and delivery of (i) the Exercise Notice attached hereto as Exhibit
A or of any other form of written notice approved for such purpose by the Company which shall state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised, and such other representations and
agreements as to the holder’s investment intent with respect to such Shares as may be required by the Company pursuant to the provisions of the Plan and (ii) a Shareholders’ Agreement in the form provided by the Company, if not
previously executed and delivered by the Optionee. Such written notice shall be signed by Optionee and shall be delivered in person or by certified mail to the Secretary of the Company or his designee. The written notice shall be accompanied by
payment of the Exercise Price. This Option shall be deemed to be exercised upon receipt by the Company of such written notice accompanied by the Exercise Price. 
 No Shares will be issued pursuant to the exercise of an Option unless such issuance and such exercise shall comply with all relevant provisions of applicable law and the requirements of any Stock Exchange upon which
the Shares may then be listed. Assuming such compliance, for income tax 

  

 1 

 
purposes the Shares shall be considered transferred to Optionee on the date on which the Option is exercised with respect to such Shares. 
 3. Method of Payment. Payment of the Exercise Price shall be by cash or check or, if an alternative form(s) of consideration described in
Section 8(b) of the Plan is approved by the Administrator, in its sole discretion, one of such methods of payment, or any approved combination of such methods of payment (including cash or check), at the election of Optionee. 
 4. Restrictions on Exercise. This Option may not be exercised (a) until such time as the Plan has been approved by the shareholders of the
Company, or (b) if the issuance of such Shares upon such exercise or the method of payment of consideration for such shares would constitute a violation of any applicable federal or state securities or other law or regulation. As a condition to
the exercise of this Option, the Company may require Optionee to make any representation and warranty to the Company as may be required by any applicable law or regulation. 
 5. Termination of Relationship. In the event of termination of Optionee’s Continuous Status as an Employee or Consultant, Optionee may, to
the extent otherwise so entitled at the date of such termination (the “Termination Date”), exercise this Option during the Termination Period set forth in the Notice of Stock Option Grant. To the extent that Optionee was not entitled to
exercise this Option at such Termination Date, or if Optionee does not exercise this Option within the Termination Period, the Option shall terminate. 
 6. Disability of Optionee. Notwithstanding the provisions of Section 5 above, in the event of termination of Continuous Status as an Employee or Consultant as a result of Optionee’s total and
permanent disability (within the meaning of Section 22(e)(3) of the Code), Optionee may, but only within twelve (12) months from the Termination Date (but in no event later than the Expiration Date set forth in the Notice of Stock Option
Grant and in Section 9 below), exercise this Option to the extent Optionee was entitled to exercise it as of such Termination Date. To the extent that Optionee was not entitled to exercise the Option as of the Termination Date, or if Optionee
does not exercise such Option (to the extent so entitled) within the time specified in this Section 6, the Option shall terminate. 
 7.
Death of Optionee. In the event of the death of Optionee (a) during the Term of this Option and while an Employee or Consultant of the Company and having been in Continuous Status as an Employee or Consultant since the date of grant of
the Option, or (b) within thirty (30) days after Optionee’s Termination Date, the Option may be exercised at any time within twelve (12) months following the date of death (but in no event later than the Expiration Date set forth
in the Notice of Stock Option Grant and in Section 9 below), by Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent of the right to exercise that had accrued at
date or death or, if earlier, the Termination Date. 
 8. Non-Transferability of Option. This Option may not be transferred in any
manner otherwise than by will or by the laws of descent or distribution and may be exercised during the lifetime of Optionee only by him or her. The terms of this Option shall be binding upon the executors, administrators, heirs, successors and
assigns of Optionee. 
 9. Term of Option. This Option may be exercised only within the Term set forth in the Notice of Stock Option
Grant, subject to the limitations set forth in Section 7 of the Plan. 
 10. Withholding Tax Obligations. As a condition to the
exercise of this Option and as further set forth in Section 10 of the Plan, Optionee agrees to make adequate provision for federal, state or 

  

 2 

 
other tax withholding obligations, if any, which arise upon the vesting or exercise of the Option, or disposition of the Shares, whether by withholding,
direct payment to the Company, or otherwise. 
 11. Market Standoff Agreement. In connection with the initial public offering of the
Company’s securities and upon request of the Company or the underwriters managing any underwritten offering of the Company’s securities, Optionee hereby agrees not to sell, make any short sale of, loan, grant any option for the purchase
of, or otherwise dispose of any Shares (other than those included in the registration) without the prior written consent of the Company or such underwriters, as the case may be, for such period of time (not to exceed 180 days) from the effective
date of such registration as may be requested by the Company or such managing underwriters and to execute an agreement reflecting the foregoing as may be requested by the underwriters at the time of the Company’s initial public offering.

 12. Adjustment to Shares. The Shares subject hereto may be adjusted in the event of certain changes in the capitalization structure
of the company or for any other reason required or permitted by the Plan. 
 13. No Rights as a Shareholder. Optionee acknowledges
that until the issuance of the stock certificate evidencing such Shares, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option.

  

 3 

 EXHIBIT A 
 SEATTLE BIOFUELS, INC. 
 2005 STOCK OPTION PLAN 
 EXERCISE NOTICE 
 This Agreement
(“Agreement”) is made as of                     , by and between Seattle Biofuels, Inc., a Washington corporation (the
“Company”), and
                                        
         (“Purchaser”). To the extent any capitalized terms used in this Agreement are not defined, they shall have the meaning ascribed to them in the 2005 Stock Option Plan (the
“Plan”). 
 1. Exercise of Option. Subject to the terms and conditions hereof, Purchaser hereby elects to exercise his or
her option to purchase              shares of the Common Stock (the “Shares”) of the Company under and pursuant to the Plan and the Stock Option Agreement dated
                                , (the “Option Agreement”). The purchase
price for the Shares shall be $             per Share for a total purchase price of $            . The term
“Shares” refers to the purchased Shares and all securities received in replacement of the Shares or as stock dividends, splits or reverse splits, all securities received in replacement of the Shares in a recapitalization, merger,
reorganization, exchange or the like, and all new, substituted or additional securities or other properties to which Purchaser is entitled by reason of Purchaser’s ownership of the Shares. 
 2. Time and Place of Exercise. The purchase and sale of the Shares under this Agreement shall occur at the principal office of the Company
simultaneously with the execution and delivery of this Agreement in accordance with the provisions of Section 2(b) of the Option Agreement. On such date, the Company will deliver to Purchaser a certificate representing the Shares to be
purchased by Purchaser (which shall be issued in Purchaser’s name) against payment of the Exercise Price therefor by Purchaser by cash or check (or other method or combination of methods of payment as permitted under the Plan and approved by
the Administrator, in its sole discretion). 
 3. Investment and Taxation Representations. In connection with the purchase of the
Shares, Purchaser represents to the Company the following: 
 (a) Purchaser is aware of the Company’s business affairs and financial
condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Shares. Purchaser is purchasing these securities for investment for his or her own account only and not with a view
to, or for resale in connection with, any “distribution” thereof within the meaning of the Securities Act. Purchaser does not have any present intention to transfer the Shares to any person or entity. 
 (b) Purchaser understands that the Shares have not been registered under the Securities Act by reason of a specific exemption therefrom, which exemption
depends upon, among other things, the bona fide nature of Purchaser’s investment intent as expressed herein. 
 (c) Purchaser further
acknowledges and understands that the securities must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available. Purchaser further acknowledges and understands that the
Company is under no obligation to register the securities. Purchaser understands that the certificate(s) evidencing the securities 

  

 A-1 

 
will be imprinted with a legend which prohibits the transfer of the securities unless they are registered or such registration is not required in the opinion
of counsel for the Company. 
 (d) Purchaser is familiar with the provisions of Rules 144 and 701, each promulgated under the Securities Act,
which, in substance, permit limited public resale of “restricted securities” acquired, directly or indirectly, from the issuer of the securities (or from an affiliate of such issuer), in a non-public offering subject to the satisfaction of
certain conditions. Purchaser understands that the Company provides no assurances as to whether he or she will be able to resell any or all of the Shares pursuant to Rule 144 or Rule 701, which rules require, among other things, that the Company be
subject to the reporting requirements of the Securities Exchange Act of 1934, as amended, that resales of securities take place only after the holder of the Shares has held the Shares for certain specified time periods, and under certain
circumstances, that resales of securities be limited in volume and take place only pursuant to brokered transactions. Notwithstanding this paragraph (d), Purchaser acknowledges and agrees to the restrictions set forth in paragraph (e) below.

 (e) Purchaser understands that Purchaser may suffer adverse tax consequences as a result of Purchaser’s purchase or disposition of
the Shares. Purchaser represents that Purchaser has consulted any tax consultants Purchaser deems advisable in connection with the purchase or disposition of the Shares and that Purchaser is not relying on the Company for any tax advice. 

4. Restrictive Legends and Stop-Transfer Orders. 
 (a) Legends. The certificate or certificates representing the Shares shall bear the following legend (as well as any legends required by applicable state and federal corporate and securities laws): 

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS, AND HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO
THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS. 
 (b) Stop-Transfer
Notices. Purchaser agrees that, in order to ensure compliance with the restrictions referred to herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if any, and that, if the Company transfers
its own securities, it may make appropriate notations to the same effect in its own records. 
 (c) Refusal to Transfer. The Company
shall not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or
pay dividends to any purchaser or other transferee to whom such Shares shall have been so transferred. 
 5. No Employment Rights.
Nothing in this Agreement shall affect in any manner whatsoever the right or power of the Company, or a Parent or Subsidiary of the Company, to terminate Purchaser’s employment or consulting relationship, for any reason, with or without cause.

 6. Market Stand-off Agreement. In connection with the initial public offering of the Company’s securities and upon request of
the Company or the underwriters managing any underwritten 

  

 A-2 

 
offering of the Company’s securities, Purchaser agrees not to sell, make any short sale of, loan, grant any option for the purchase of, or otherwise
dispose of any Shares (other than those included in the registration) without the prior written consent of the Company or such underwriters, as the case may be, for such period of time (not to exceed 180 days) from the effective date of such
registration as may be requested by the Company or such managing underwriters and to execute an agreement reflecting the foregoing as may be requested by the underwriters at the time of the Company’s initial public offering. 
 7. Miscellaneous. 
 (a) Governing
Law. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of Washington, without giving effect to
principles of conflicts of law. 
 (b) Entire Agreement; Enforcement of Rights. This Agreement sets forth the entire agreement and
understanding of the parties relating to the subject matter herein and merges all prior discussions between them. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in
writing signed by the parties to this Agreement. The failure by either party to enforce any rights under this Agreement shall not be construed as a waiver of any rights of such party. 
 (c) Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate
such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of the Agreement
shall be interpreted as if such provision were so excluded and (iii) the balance of the Agreement shall be enforceable in accordance with its terms. 
 (d) Construction. This Agreement is the result of negotiations between and has been reviewed by each of the parties hereto and their respective counsel, if any; accordingly, this Agreement shall be deemed to be
the product of all of the parties hereto, and no ambiguity shall be construed in favor of or against any one of the parties hereto. 
 (e)
Notices. Any notice required or permitted by this Agreement shall be in writing and shall be deemed sufficient when delivered personally or sent by telegram or fax or forty-eight (48) hours after being deposited in the U.S. mail, as
certified or registered mail, with postage prepaid, and addressed to the party to be notified at such party’s address as set forth below or as subsequently modified by written notice. 
 (f) Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together
shall constitute one instrument. 
 (g) Successors and Assigns. The rights and benefits of this Agreement shall inure to the benefit
of, and be enforceable by the Company’s successors and assigns. The rights and obligations of Purchaser under this Agreement may only be assigned with the prior written consent of the Company. 
 (h) State Securities Laws. THE SALE OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE DEPARTMENT OF
FINANCIAL INSTITUTIONS, DEPARTMENT OF SECURITIES, OF THE STATE OF WASHINGTON OR ANY OTHER STATE, AND THE ISSUANCE OF THE SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR PRIOR TO THE 

  

 A-3 

 
QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT FROM QUALIFICATION UNDER THE SECURITIES LAWS OF THE STATE OF WASHINGTON OR SUCH OTHER
STATES. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON THE QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT. 
  

 A-4

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