Document:

Employment Agreement

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 This Employment Agreement (“Agreement”) is entered into as of the
March 31, 2009, by and between Michael Narachi (“Executive”) and Orexigen Therapeutics, Inc. (the “Company”). 
 WHEREAS, the Company desires to employ Executive to provide services to the Company, and wishes to provide Executive with certain compensation and benefits in return for Executive’s services; and

 WHEREAS, Executive wishes to be employed by the Company and provide services to the Company in return
for certain compensation and benefits. 
 NOW, THEREFORE, in consideration of the mutual
promises and covenants contained herein, it is hereby agreed by and between the parties hereto as follows: 
 ARTICLE I 
 DEFINITIONS 
 For purposes of the
Agreement, the following terms are defined as follows: 
 1.1 “Board” means the Board of Directors of the Company. 
 1.2 “Cause” means the occurrence of any of the following events: 
 (a) Executive’s conviction of or plea of guilty or nolo contendere to any felony or a crime of moral turpitude; 
 (b) Executive’s willful and continued failure or refusal to follow lawful and reasonable instructions of the Board of Directors or lawful and reasonable policies of the Company or its affiliates;

 (c) Executive’s continued failure to faithfully and diligently perform the assigned duties of his/her employment with the
Company or its affiliates, or Executive’s persistent and material failure to meet the personal performance objectives set for him by the Board; 
 (d) Unprofessional, unethical, immoral or fraudulent conduct by Executive; 
 (e) Conduct by
Executive that materially discredits the Company or any affiliate or is materially detrimental to the reputation, character and standing of the Company or any affiliate; or 
 (f) Executive’s material breach of this Agreement, the Proprietary Information and Inventions Agreement, or any other contractual, fiduciary,
or statutory duty owed to the Company. 
 An event described in Section 1.2(b) through Section 1.2(f) herein shall not be treated
as “Cause” until after Executive has been given written notice of such event, failure or conduct and Executive fails to cure such event, failure, conduct or breach within 30 days 

  

 1. 

 
from such written notice; provided, however, that such 30-day cure period shall not be required if the event, failure, conduct or breach is incapable of
being cured. Failure of the Company to meet its financial or performance targets or goals shall not be deemed to be a breach pursuant to Sections 1.2(b) or 1.2(c) herein. 
 1.3 “Change in Control” means the occurrence of any of the following events: 
 (a) the direct or indirect acquisition by any person or related group of persons (other than the Company or a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) of beneficial
ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than 50% of the total combined voting power of the Company’s outstanding securities pursuant to a tender or exchange offer made directly to the
Company’s shareholders which the Board does not recommend such shareholders to accept; 
 (b) a change in the composition of the
Board over a period of 36 months or less such that a majority of the Board members ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who either (i) have been Board members continuously
since the beginning of such period, or (ii) have been elected or nominated for election as Board members during such period by at least a majority of the Board members described in clause (i) who were still in office at the time such
election or nomination was approved by the Board; 
 (c) the consummation of any consolidation, share exchange or merger of the
Company (i) in which the stockholders of the Company immediately prior to such transaction do not own at least a majority of the voting power of the entity which survives/results from that transaction, or (ii) in which a stockholder of the
Company who does not own a majority of the voting stock of the Company immediately prior to such transaction, owns a majority of the Company’s voting stock immediately after such transaction; or 
 (d) the liquidation or dissolution of the Company or any sale, lease, exchange or other transfer (in one transaction or a series of related
transactions) of all or substantially all the assets of the Company, including stock held in subsidiary corporations or interests held in subsidiary ventures. 
 1.4 “Company” means Orexigen Therapeutics, Inc. or, following a Change in Control, the surviving entity resulting from such transaction. 
 1.5 “Constructive Termination” means Executive’s resignation from all positions he then holds with the Company because of: 
 (a) a material reduction in Executive’s authority, duties or responsibilities; 
 (b) a material diminution in the authority, duties or responsibilities of the supervisor to whom Executive is required to report, including a
requirement that Executive report to a corporate officer or employee instead of reporting directly to the Board of Directors; 
 (c) a
material reduction in Executive’s level of base salary; or 
  

 2. 

 (d) a relocation of Executive’s principal place of employment that increases Executive’s
one-way commute by more than 50 miles (other than reasonable business travel required as part of the job duties associated with Executive’s position); 
 provided, however, that (i) such change, reduction or relocation is effected by the Company without Cause and without Executive’s consent; (ii) Executive first provides the Company with written notice
of the condition described in (a), (b), (c) or (d) above not later than sixty (60) days following its initial occurrence; (iii) the Company is permitted the opportunity to cure such condition within a period of forty-five
(45) days following such written notice; and (iv) Executive resigns from employment within thirty (30) days following the end of such cure period, assuming that the condition has not been cured. 
 1.6 “Covered Termination” means an Involuntary Termination Without Cause or Constructive Termination that occurs either within the three
(3) month period before the effective date of a Change in Control or within the twelve (12) month period commencing on the effective date of a Change in Control. 
 1.7 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 1.8
“Involuntary Termination Without Cause” means Executive’s dismissal or discharge by the Company other than for Cause. The termination of Executive’s employment as a result of Executive’s death or disability will
not be deemed to be an Involuntary Termination Without Cause. 
 ARTICLE II 
 EMPLOYMENT BY THE COMPANY 
 2.1 Position and Duties. Subject to terms set forth herein,
the Company agrees to employ Executive in the position of President and Chief Executive Officer and Executive hereby accepts such employment. Executive shall perform such duties as are customarily associated with the position of President and Chief
Executive Officer and such other duties as are assigned to Executive by the Board of Directors of the Company. During the term of Executive’s employment with the Company, Executive will devote Executive’s best efforts and substantially all
of Executive’s business time and attention (except for vacation periods and reasonable periods of illness or other incapacities permitted by the Company’s general employment policies or as otherwise set forth in this Agreement) to the
business of the Company. Notwithstanding the foregoing, it is agreed and understood that Executive shall be allowed to participate on the boards of directors of the following companies: AMAG Pharmaceuticals, Inc. and Ren Pharmaceuticals, Inc.; and
Executive may be allowed to serve on other boards of directors during his employment with the Board’s prior written consent. 
 2.2 Employment at
Will. Both the Company and Executive shall have the right to terminate Executive’s employment with the Company at any time, with or without Cause. If applicable, upon the date of Executive’s termination of employment with the Company
for any reason, Executive shall immediately resign from the Board and the board of directors or comparable body of every subsidiary, parent or other affiliated corporation of the Company, and every committee thereof. 
  

 3. 

 2.3 Employment Policies. The employment relationship between the parties shall also be governed by the general
employment policies and practices of the Company, including those relating to protection of confidential information and assignment of inventions, except that when the terms of this Agreement differ from or are in conflict with the Company’s
general employment policies or practices, this Agreement shall control. 
 2.4 Effective Date. The effective date of this agreement shall be the date
in which Executive begins employment with the Company which is anticipated to be the date hereof. 
 ARTICLE III 
 COMPENSATION AND BENEFITS 
 3.1 Base Salary.
Executive shall receive for services to be rendered hereunder an annual base salary of $450,000 (“Base Salary”), less required deductions and withholdings, payable on the regular payroll dates of the Company. 
 3.2 Annual Bonus. In addition to the Base Salary, during each calendar year Executive will be eligible for an annual performance bonus, equal to up to 60% of the
Base Salary, and which is 100% based upon the achievement of Executive’s performance goals and objectives (“Annual Bonus”). The Compensation Committee of the Company’s Board shall determine in its sole discretion whether
any such Bonus has been earned and, if so, the amount of any such bonus. Executive must be an employee in good standing at the time the Compensation Committee decides to award the Annual Bonus and, if Executive leaves the Company at any time and for
any reason prior to such date, he/she will not be eligible to receive such a bonus or any pro-rata portion of such bonus. If awarded, the Annual Bonus shall be paid in January of each year. 
 3.3 Stock Options. Subject to approval of the Board or the Compensation Committee of the Board, Executive shall receive stock options to purchase
1,500,000 million shares of the Company’s common stock pursuant to the Company’s 2007 Equity Incentive Award Plan (the “2007 Plan”). Any stock options granted pursuant to this Section 3.3 shall have an exercise price
per share equal to the then-current fair market value per share of the Company’s common stock (as determined pursuant to the 2007 Plan) on the grant date as approved by the Board or the Compensation Committee of the Board. Such stock options
shall be incentive stock options to the extent permitted under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”). Subject to Section 4.2, 25% of the shares subject to such stock options shall vest
on the one year anniversary of Executive’s date of hire and the remainder will vest in 36 equal monthly installments over a three year period thereafter, subject to Executive’s continued employment or service with the Company on each such
date. Such stock options shall have a ten (10) year term and shall be subject to the terms and conditions of the 2007 Plan and the stock option agreement pursuant to which such stock options are granted. Executive shall be eligible for annual
stock option grants consistent with the Company’s compensation philosophy as such policy is determined by the Compensation Committee of the Board of Directors; provided, however, that it shall remain in the sole discretion of the Compensation
Committee to determine if any such grants shall be made and if so the amount of shares of common stock subject to such grants. In determining whether any option grants will be made, the Compensation Committee will consider, among other factors,
whether Executive has experienced any dilution due to a financing of the Company. 
  

 4. 

 3.4 Vacation and Paid Time Off. Executive shall be entitled to 20 business days of paid vacation each year,
accruing on a monthly basis, and 8 paid holidays each year. 
 3.5 Expenses. During the term of this Agreement, the Company shall reimburse Executive
for all reasonable and necessary out-of-pocket expenses incurred by Executive in connection with services rendered on behalf of the Company subject to Executive providing the Company with appropriate substantiation in accordance with Company policy.

 3.6 Standard Company Benefits. Executive shall be entitled to all rights and benefits for which Executive is eligible under the terms and
conditions of the standard Company benefits and compensation practices that may be in effect from time to time and are generally provided by the Company to its executive employees, employed at similar full-time or part-time status, as applicable.
Any such benefits and compensation practices shall be subject to the terms of the governing benefit or compensation plans and may be changed by the Company from time to time in its discretion. 
 3.7 Advance Bonus. In lieu of any relocation benefits that you may be entitled to receive pursuant to the Company’s relocation benefit policy, the
Company will advance to you a lump sum amount of $250,000.00, less required tax withholdings, within ten days of your first date of employment (the “Advance Bonus”). This bonus will be considered an advance to you and will be deemed
earned as follows: 50% on the first anniversary of your start date and the remaining 50% on the second anniversary of your start date. If you resign your employment in the absence of a Constructive Termination, or if the Company terminates your
employment for Cause, at any time during your first year of employment, you agree to repay 100% of the Advance Bonus. If you resign your employment in the absence of a Constructive Termination, or if the Company terminates your employment for Cause,
at any time during your second year of employment, you agree to repay 50% of the Advance Bonus. If you resign at any time due to a Constructive Termination, or if your employment is terminated by the Company without Cause at any time, you shall not
be required to repay the Advance Bonus or any portion thereof. 
 ARTICLE IV 
 SEVERANCE AND CHANGE IN CONTROL BENEFITS 
 4.1 Severance Benefits In Event of Involuntary
Termination Without Cause or Covered Termination. If Executive’s employment terminates due to an Involuntary Termination Without Cause or a Covered Termination, Executive shall receive any annual Base Salary that has accrued but is unpaid
as of the date of termination of employment. In addition, provided such termination constitutes a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h), and provided further that Executive first
executes and does not revoke an effective general release of all known and unknown claims in the form and substance acceptable to the Company (the “Release”), Executive shall also be entitled to receive, as severance, either one of the
following as applicable: 
  

 5. 

 (a) In the event of an Involuntary Termination Without Cause which occurs at any time other than
during the period that begins three (3) months before the effective date of a Change in Control and concludes on the date that is twelve (12) months after the effective date of a Change in Control, his annual Base Salary (as in effect
during the last regularly scheduled payroll period immediately preceding the Involuntary Termination Without Cause), less required deductions and withholdings, for a period of twelve (12) months, payable in one lump sum within ten
(10) days after the effective date of the Release. 
 (b) In the event of a Covered Termination, his annual Base Salary (as in
effect during the last regularly scheduled payroll period immediately preceding the Covered Termination), less required deductions and withholdings, for a period of eighteen (18) months, payable in one lump sum within ten (10) days after
the effective date of the Release. 
 4.2 Acceleration of Vesting of Option. 
 (a) In the event of a Change in Control, and subject to Executive’s continued employment until such time, Executive shall vest in and be able
to exercise 50% of the stock options described in Section 3.3 above that are unvested at such time. Thereafter, if assumed or continued by the acquiring or surviving entity, the remaining unvested options shall vest and become exercisable in
equal monthly installments over the 12 months following the effective date of such Change in Control subject to Executive’s continued employment on each such vesting date; provided, however, that if fewer than 12 months remain until such
remaining unvested stock options would be fully vested and exercisable on the original schedule following the Change in Control (after accounting for the 50% accelerated vesting in the prior sentence), the post-Change in Control vesting schedule for
such options shall remain unchanged by the Change in Control. 
 (b) In addition to any accelerated vesting provided in
Section 4.2(a) above in connection with a Change in Control, if: (i) Executive’s employment with the Company (or its successor) terminates due to an Involuntary Termination Without Cause or a Constructive Termination; (ii) in
either case such termination occurs during the period that begins three (3) months before the effective date of a Change in Control and concludes on the date that is twelve (12) months after the effective date of a Change in Control; and
(iii) Executive first executes and does not revoke the Release; then all stock options then held by Executive shall become fully vested and exercisable as of the date of such termination of Executive’s employment. 
 4.3 Section 409A Compliance. Each installment of severance benefits provided under this Agreement is to be regarded as a separate “payment” for
purposes of Treasury Regulations Section 1.409A-2(b)(2)(i), and the severance benefits are intended to satisfy the exemptions from application of Section 409A of the Code and the regulations and other guidance thereunder and any state law
of similar effect (collectively “Section 409A”) provided under Treasury Regulations Sections 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9). However, if one or more of such exemptions are not available and Executive is, upon separation
from service, a “specified employee” for purposes of Section 409A, then, solely to the extent necessary to avoid adverse personal tax consequences under Section 409A, the timing of the severance benefits payments shall be delayed
as follows: on the earlier to occur of (i) the date that is six months and one day after Executive’s separation from service or (ii) the date of Executive’s death (such earlier date, the 

  

 6. 

 
“Delayed Initial Payment Date”), the Company (or the successor entity thereto, as applicable) shall (A) pay Executive a lump sum amount equal
to the sum of the payments that he would otherwise have received through the Delayed Initial Payment Date if the commencement of the payment of the payments had not been so delayed pursuant to this paragraph and (B) commence paying the balance
of the payments in accordance with the applicable payment schedules set forth in this Agreement.. 
 Executive shall receive severance benefits only if
Executive executes and returns to the Company, within the applicable time period set forth therein but in no event more than forty-five (45) days following the date of separation from service, the Release and permits the Release to become
effective in accordance with its terms. 
 4.4 Compensation/Benefits in Event of Termination for Cause or Resignation by Executive that Is not a Covered
Termination. If the Company terminates Executive’s employment for Cause or as a result of his death or disability, or if Executive resigns his employment (unless pursuant to a Covered Termination), then this Agreement shall automatically
terminate (except for Article V, Article VII, and Article VIII, which shall continue in effect), and upon such termination, the Company shall have no further obligation to Executive, his/her spouse or estate, except that the Company shall pay to
Executive the amount of his/her Base Salary, and unused vacation pay, accrued to the date of such termination. 
 ARTICLE V 

PROPRIETARY INFORMATION OBLIGATIONS 
 5.1
Agreement. Executive agrees to execute and abide by the Company’s standard form of Proprietary Information and Inventions Agreement (“Proprietary Information and Inventions Agreement”). 
 5.2 Remedies. Executive’s duties under the Proprietary Information and Inventions Agreement shall survive termination of Executive’s employment with the
Company and the termination of this Agreement. Executive acknowledges that a remedy at law for any breach or threatened breach by Executive of the provisions of the Proprietary Information and Inventions Agreement would be inadequate, and Executive
therefore agrees that the Company shall be entitled to injunctive relief in case of any such breach or threatened breach. 
 ARTICLE VI

 OUTSIDE ACTIVITIES 
 6.1 Other
Activities. Except with the prior written consent of the Board of Directors of the Company, Executive shall not during the term of this Agreement undertake or engage in any other employment, occupation or business enterprise, other than ones in
which Executive is a passive investor; provided that such passive investments will not require services on the part Executive which would in any manner impair the performance of his/her duties under this Agreement. Executive may engage in civic and
not-for-profit activities so long as such activities do not materially interfere with the performance of Executive’s duties hereunder. It is agreed and understood that Executive shall be allowed to participate on the boards of directors of the
following companies: AMAG Pharmaceuticals, Inc. and Ren Pharmaceuticals, Inc.; and Executive may be allowed to serve on other boards of directors during his employment with the Board’s prior written consent. 
  

 7. 

 6.2 Competition/Investments. During the term of Executive’s employment by the Company, except on behalf of
the Company, Executive shall not directly or indirectly, whether as an officer, director, stockholder, partner, proprietor, associate, representative, consultant, or in any capacity whatsoever engage in, become financially interested in, be employed
by or have any business connection with any other person, corporation, firm, partnership or other entity whatsoever which were known by Executive to compete directly with the Company, throughout the world, in any line of business engaged in (or
planned to be engaged in) by the Company. 
 ARTICLE VII 
 NONINTERFERENCE 
 While employed by the Company, and for one year immediately following the date on which Executive
terminates employment or otherwise ceases providing services to the Company, Executive agrees not to interfere with the business of the Company by: (i) soliciting or attempting to solicit any employee or consultant of the Company to terminate
such employee’s or consultant’s employment or service in order to become an employee, consultant or independent contractor to or for any competitor of the Company; or (ii) using or disclosing the Company’s trade secrets for the
purpose of soliciting or attempting to solicit any client, customer or other person either directly or indirectly, to direct his/her or its purchase of the Company’s products and/or services to any person, firm, corporation, institution or
other entity in competition with the business of the Company. Executive’s duties under this Article VII shall survive termination of Executive’s employment with the Company and the termination of this Agreement. 
 ARTICLE VIII 
 GENERAL PROVISIONS

 8.1 Notices. Any notices provided hereunder must be in writing and shall be deemed effective upon the earlier of personal delivery (including
personal delivery by facsimile) or the third day after mailing by first class mail, to the Company at its primary office location and to Executive at Executive’s address as listed on the Company payroll. 
 8.2 Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if
any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other
jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provisions had never been contained herein. 
  

 8. 

 8.3 Waiver. If either party should waive any breach of any provisions of this Agreement, they shall not thereby be
deemed to have waived any preceding or succeeding breach of the same or any other provision of this Agreement. 
 8.4 Complete Agreement. This
Agreement and the documents and agreements referenced herein constitute the entire agreement between Executive and the Company and is the complete, final, and exclusive embodiment of their agreement with regard to the subject matter contained herein
and therein and supersede all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative of any party hereto, and any prior agreement of the
parties hereto in respect of the subject matter contained herein. This Agreement is entered into without reliance on any promise or representation other than those expressly contained herein or therein, and cannot be modified or amended except in a
writing signed by an appropriate officer of the Company and Executive. 
 8.5 Counterparts. This Agreement may be executed in separate counterparts,
any one of which need not contain signatures of more than one party, but all of which taken together will constitute one and the same Agreement. 
 8.6
Headings. The headings of the sections hereof are inserted for convenience only and shall not be deemed to constitute a part hereof nor to affect the meaning thereof. 
 8.7 Successors and Assigns. This Agreement is intended to bind and inure to the benefit of and be enforceable by Executive and the Company, and their respective successors, assigns, heirs, executors and
administrators, except that Executive may not assign any of Executive’s duties hereunder and Executive may not assign any of Executive’s rights hereunder, without the written consent of the Company, which shall not be withheld
unreasonably. 
 8.8 Arbitration. Unless otherwise prohibited by law or specified below, all disputes, claims and causes of action, in law or equity,
arising from or relating to this Agreement or its enforcement, performance, breach, or interpretation shall be resolved solely and exclusively by final and binding arbitration held in San Diego, California through Judicial Arbitration &
Mediation Services/Endispute (“JAMS”) under the then existing JAMS arbitration rules. However, nothing in this section is intended to prevent either party from obtaining injunctive relief in court to prevent irreparable harm pending
the conclusion of any such arbitration. Each party in any such arbitration shall be responsible for its own attorneys’ fees, costs and necessary disbursement. Pursuant to California Civil Code Section 1717, each party warrants that it was
represented by counsel in the negotiation and execution of this Agreement, including the attorneys’ fees provision herein. 
 8.9 Attorneys’
Fees. If either party hereto brings any action to enforce rights hereunder, each party in any such action shall be responsible for its own attorneys’ fees and costs incurred in connection with such action. 
 8.10 Choice of Law. All questions concerning the construction, validity and interpretation of this Agreement will be governed by the law of the State of
California without regard to the conflicts of law provisions thereof. 
  

 9. 

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

			
	OREXIGEN THERAPEUTICS, INC.
		
	By:	 	 /s/    Eckard Weber

		 	Eckard Weber, M.D.
		 	Chairman of the Board of Directors and
		 	Interim President and CEO

 Accepted and agreed: 
  

	
	 /s/    Michael Narachi

	Michael Narachi

  

 10.Warrant Agreement

 Exhibit 4.1 
 COMMON STOCK PURCHASE WARRANT AGREEMENT 
 This Common Stock Purchase Warrant
Agreement is made as of             , 200    , by and between Gold Ribbon Bio Energy Holdings Inc. and Olde Monmouth Stock Transfer Co., Inc. (the “Warrant
Agent”). 
 WHEREAS, the Company has determined to issue and deliver Common Stock Purchase Warrants (the
“Warrants”) entitling the holders of the Warrants to purchase an aggregate of up to 12,000,000 Common Shares of the Company; 
 WHEREAS, the Company desires to provide for the form and provisions of the Warrants, the terms upon which they will be issued and may be exercised, and the respective rights, limitations and immunities of the
Company, the Warrant Agent and the holders of the Warrants; and 
 WHEREAS, all acts and things necessary have been
done and performed to make the Warrant, when executed on behalf of the Company and countersigned by or on behalf of the Warrant Agent, as provided in this Agreement, the valid, binding and legal obligation of the Company, and to authorize the
execution and delivery of this Agreement; 
 NOW, THEREFORE, in consideration of the mutual agreements contained
herein, the parties hereto agree as follows: 
 Article I 
 Execution and Countersignature of Warrants 
 1.01. Execution and
Countersignature of Warrants. 
 (a) Each Warrant, whenever issued, shall be dated
            , 200    , shall be substantially in the form of Exhibit A attached hereto and incorporated hereby, and shall be signed by, or bear the facsimile signature
of, the President or a Vice President and of the Secretary or an Assistant Secretary of the Company. If any officer whose facsimile signature has been placed upon any Warrant ceases to be that officer before the Warrant is issued, the Warrant may be
issued with the same effect as if the officer had not ceased to be that officer on the date of issuance. 
 (b) No Warrant
may be exercised until it has been countersigned by the Warrant Agent. The Warrant Agent shall countersign a Warrant only if: 
 (i) the Warrant is to be issued in exchange or substitution for one or more previously countersigned Warrants, as provided in this Agreement, or 
 (ii) the Company instructs the Warrant Agent to do so. 
 (c) Unless and until countersigned by the Warrant Agent pursuant to this Agreement, a Warrant is invalid and of no effect. 

 Article II 
 Warrant Price, Duration and Exercise of Warrants 
 2.01. Warrant Price.
Each Warrant, when countersigned by the Warrant Agent, shall entitle the holder of the Warrant, subject to the provisions of this Agreement, to purchase from the Company two hundred (200) Common Shares for each Warrant as stated on the face of
the Warrant at the price of five dollars ($5.00) per share until such time prior to the expiration date as described in the Warrant, as up to 60,000 warrants have been exercised and the Company has received up to $60,000,000 in the process, subject
to the adjustments provided in Article III of this Agreement. The Warrant Price as used herein shall refer to the price per share at which Common Shares may be purchased at the time a Warrant is exercised. 
 2.02. Duration of Warrants. Warrants may be exercised only on or before the earlier date on which 60,000 Warrants have been issued
or the date that is the last Friday of the seventh calendar month after the date of issue of the Warrants (the “Expiration Date”). Notwithstanding the foregoing, if notice has been given as provided in Article III hereof in connection with
the liquidation, dissolution or winding up of the Company, the Warrants shall expire at the close of business on the third full business day before the date specified in the notice as the record date for determining holders of stock entitled to
receive any distribution upon the liquidation, dissolution or winding up; provided, however, that such date is at least five (5) business days after the date of the notice. 
 2.03. Exercise of Warrants. 
 (a) A Warrant, when countersigned by the Warrant Agent, may be exercised by surrendering it at the office of the Warrant Agent in Atlantic Highlands, New Jersey, or at the office of its successor as warrant agent,
prior to the close of business of the Warrant Agent on the Expiration Date or such earlier date as may be applicable with the exercise form set forth in the Warrant duly completed and executed, and by paying in full, in lawful money of the United
States, the Warrant Price for each full Common Share as to which the Warrant is exercised, and any applicable taxes. Notwithstanding the foregoing, the Company is only required to use reasonable efforts which will permit the purchase and sale of the
Common Shares underlying the Warrants and is not required to qualify the Warrants or the Common Shares underlying the Warrants in any state. 
 (b) As soon as practicable after the exercise of any Warrant, the Company shall issue to, or upon the order of, the holder or holders of the Warrant, in whatever name or names the Warrant holder may direct, a
certificate or certificates for the number of full Common Shares to which the holder or holders are entitled, registered in the name or names specified by the holder or holders, and, if the Warrant is not exercised in full (except with respect to a
remaining fraction of a share), a new countersigned Warrant for the number of shares (including fractional shares) as to which the Warrant has not been exercised. All Warrants surrendered shall be canceled by the Company. 
 (c) If the same holder of one or more Warrants exercises the purchase rights under the Warrants in the same transaction in a manner that
leaves the right to purchase a fraction of a share unexercised, the Company shall pay a cash adjustment with respect to that final fraction in an amount equal to the same fraction of the current market price of one Common Share on the business day
that 

  

 2 

 
next precedes the day of exercise reduced by the same fraction of the Warrant Price of one Common Share on that day. For this purpose, the current market
price shall be the price of one Common Share on the principal stock exchange on which the Common Shares is traded on the next preceding business day, or, if no sales take place on that day or if the Common Shares are not then listed on a stock
exchange, the average of the reported bid and asked prices on that day in the over-the-counter market. 
 (d) All Common
Shares issued upon the exercise of a Warrant shall be duly and validly issued, fully paid and nonassessable, and the Company shall pay all taxes in connection with the issuance of such shares. The Company shall not be required to pay any tax imposed
in connection with any transfer involved in the issuance of a certificate for Common Shares in any name other than that of the holder or holders of the Warrant surrendered in connection with the purchase of the shares. In this case the Company shall
not be required to issue or deliver any stock certificate until the tax has been paid. 
 (e) Each person in whose name any
certificate for Common Shares is issued shall be deemed to have become the holder of record of the shares on the date on which the Warrant was surrendered and payment of the Warrant Price and any applicable taxes was made, irrespective of the date
of delivery of the certificate, except that, if the date of surrender and payment is a date when the stock transfer books of the Company are closed, a person shall be deemed to have become the holder of shares at the close of business on the next
succeeding date on which the stock transfer books are open. Except as otherwise provided in Article III, each person holding any shares received upon exercise of Warrants shall be entitled to receive only dividends or distributions which are payable
to holders of record on or after the date on which the person is deemed to become the holder of record of such shares. 
 Article III 

 Adjustments 
 3.01. Stock Dividends - Split-Ups. If after the date of this Agreement, and subject to the provisions of Section 3.07 hereof, the number of outstanding Common Shares of the Company is increased by a stock
dividend payable in Common Shares or by a split-up of Common Shares, then, on the day following the date fixed for the determination of holders of Common Shares entitled to receive the stock dividend or split-up, the number of shares issuable on
exercise of each Warrant shall be increased in proportion to the increase in outstanding shares and the then applicable Warrant Price shall be correspondingly decreased. 
 3.02. Aggregation of Shares. If after the date of this Agreement, and subject to the provisions of Section 3.07 hereof, the number of outstanding Common Shares of the Company is
decreased by a combination or reclassification of Common Shares, then, after the effective date of the combination or reclassification, the number of Common Shares issuable on exercise of each Warrant shall be decreased in proportion to the decrease
in outstanding Common Shares and the then applicable Warrant Price shall be correspondingly increased. 
 3.03. Special
Stock Dividends. If after the date of this Agreement, and subject to the provisions of Section 3.07 hereof, shares of any class of stock of the Company (other than Common Shares) are issued by way of a stock dividend on outstanding Common

  

 3 

 
Shares, then, commencing with the day following the date fixed for the determination of holders of Common Shares entitled to receive the stock dividend, in
addition to any Common Share receivable upon exercise of the Warrants, the Warrant holders upon exercise of the Warrants shall be entitled to receive, as nearly as practicable, the same number of shares of dividend stock, plus any shares issued upon
any subsequent change, replacement, subdivision or combination of the stock dividend, to which the holders would have been entitled if their Warrants would have been exercised immediately prior to the stock dividend. No adjustment in the Warrant
Price shall be made merely by virtue of the happening of any event specified in this Section 3.03. 
 3.04.
Reorganization, Etc. If after the date of this Agreement any capital reorganization or reclassification of the Common Shares of the Company, or consolidation or merger of the Company with another corporation, or sale of all or substantially
all of its assets to another corporation is effective, then, as a condition of the reorganization, reclassification, consolidation, merger or sale, lawful and fair provision shall be made whereby the Warrant holders after the transaction shall have
the right to purchase and receive, upon the basis and upon the terms and conditions specified in the Warrants and in lieu of the Common Shares of the Company purchasable and receivable immediately prior to the transaction upon the exercise of the
rights represented by the Warrants, the shares of stock, securities or assets that may be issued or payable with respect to or in exchange for a number of outstanding Common Shares equal to the number of Common Shares purchasable and receivable
immediately prior to the transaction upon the exercise of the rights represented by the Warrants if the reorganization, reclassification, consolidation, merger or sale had not taken place. Appropriate provisions shall be made in connection with a
reorganization, reclassification, consolidation, merger or sale with respect to the rights and interests of the Warrant holders to the end that the provision of this Agreement (including, without limitation, provisions for adjustments of the Warrant
Price and of the number of shares purchasable upon exercise of the Warrants) shall immediately after the transaction be applicable as nearly as possible to any shares of stock, securities or assets deliverable immediately after the transaction upon
the exercise of the Warrants. The Company shall not effect any consolidation, merger or sale unless, prior to the consummation of the transaction, the successor corporation (if other than the Company) resulting from the consolidation or merger, or
the corporation purchasing the assets, assumes by written instrument executed and delivered to the Warrant Agent the obligation to deliver to the Warrant holders the shares of stock, securities or assets in accordance with the foregoing provisions
that the holders may be entitled to purchase. 
 3.05. Notice of Change in Warrant. Upon any adjustment of the Warrant
Price or the number of shares issuable on exercise of a Warrant, then and in each case the Company shall give written notice of the adjustment to the Warrant Agent. The notice shall state the Warrant Price resulting from the adjustment and the
increase or decrease, if any, in the number of shares purchasable at that price upon exercise of a Warrant, setting forth in reasonable detail the method of calculation and the facts upon which the calculation is based. The Company shall mail or
cause to be mailed to each holder of Warrants at the address registered with the Company, a notice setting forth such change or adjustment. Failure to file a statement or to give notice, or any defect in a statement or notice, shall not affect the
legality or validity of the changes or adjustments. 
  

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 3.06. Other Notices. In case at any time: 
 (a) the Company pays any dividends payable in stock upon its Common Shares or makes any distributions (other than regular cash dividends)
to the holders of its Common Shares; 
 (b) the Company offers for subscription pro rata to the holders of its Common Shares
any additional shares of stock of any class or any other rights; 
 (c) there is a capital reorganization, a classification
of the capital stock of the Company or a consolidation or merger of the Company with, or a sale of all or substantially all of its assets to, another corporation; or 
 (d) there is a voluntary or involuntary dissolution, liquidation or winding up of the Company; 
 then, in any one or more of these cases, the Company shall give written notice in the manner set forth in Section 3.05 of this Agreement of the date on which (i) the books of the Company close or a record is
taken for the dividend, distribution or subscription rights, or (ii) the reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding up takes place. The notice also shall specify the date as of which the
holders of record of Common Shares shall participate in dividend, distribution or subscription rights, or shall be entitled to exchange their Common Shares for securities or other property deliverable upon the reorganization, reclassification,
consolidation, merger, sale, dissolution, liquidation or winding up. The notice shall be given and published at least twenty (20) days prior to the transaction in question and not less than twenty (20) days prior to the record date or the
date on which the Company’s transfer books are closed with respect to the transaction. Failure to give or publish the notice, or any defect in the notice, shall not affect the legality or validity of any transaction covered or to be covered in
the notice. 
 3.07. Limitation on Fractions. Notwithstanding anything in Sections 3.01 or 3.02 hereof to the
contrary, cumulative adjustments in the number of shares issuable upon exercise of Warrants shall be made only to the nearest multiple of one-tenth (1/10) of a share, i.e., fractions of less than five-hundredths (5/100) of a share shall be
disregarded and fractions of five-hundredths (5/100) of a share or more shall be treated as being one-tenth (1/10) of a share. 
 3.08. Form of Warrant. The form of Warrant need not be changed due to any change pursuant to this article, and Warrants issued after a change may state the same Warrant Price and the same number of shares as is
stated in the Warrants initially issued pursuant hereto. However, at any time in its sole discretion, the Company may make any change in the form of Warrant that it may deem appropriate and that does not affect the substance of the Warrants. Any
Warrant subsequently issued and countersigned, whether in exchange or substitution for an outstanding Warrant or otherwise, may be in the form as so changed. 
  

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 Article IV 
 Other Provisions Relating to Rights of Holders of Warrants 
 4.01. No
Rights as Stockholder Conferred by Warrants. A Warrant does not entitle its holder to any of the rights of a stockholder of the Company. 
 4.02. Lost, Stolen, Mutilated or Destroyed Warrants. If any Warrant is lost, stolen, mutilated or destroyed, the Company and the Warrant Agent may issue a new Warrant of like denomination, tenor and date as the
Warrant so lost, stolen, mutilated or destroyed. Any such issuance of a new Warrant shall be on whatever terms and conditions with respect to indemnity or otherwise that the Company and Warrant Agent may in their sole discretion impose (which shall,
in the case of a mutilated Warrant, include the surrender of the Warrant). Any new Warrant shall constitute an original contractual obligation of the Company, regardless of whether the allegedly lost, stolen, mutilated or destroyed Warrant is at any
time enforceable by anyone. 
 4.03. Reservation of Common Shares. The Company shall at all times reserve and keep
available the number of its authorized but unissued Common Shares which is sufficient to permit the exercise in full of the Warrants pursuant to the terms hereof. If at any time the number of authorized but unissued Common Shares is not sufficient
for these purposes, the Company shall take such corporate action as, in the opinion of counsel, may be necessary to increase its authorized but unissued shares to the number of shares sufficient for these purposes. The Warrants, and the Common
Shares issuable upon exercise of the Warrants, have been registered under the Securities Act of 1933, as amended. 
 Article V

 Ownership and Transfer of Warrants 
 5.01. Ownership of Warrants. Warrants issued pursuant to this Agreement shall be treated as owned only by the holder of record as determined by the Warrant Agent. 
 5.02. Transfer of Warrants. After countersignature by the Warrant Agent in accordance with the provisions of this Agreement, one
or more Warrants may be surrendered to the Warrant Agent for transfer and, upon their cancellation, the Warrant Agent shall countersign and deliver in exchange one or more new Warrants, as requested by the holder of the canceled Warrant or Warrants,
for purchase of the same aggregate number of shares as were evidenced by or applicable to the Warrant or Warrants so canceled. The Company shall give notice to the registered holders of the Warrants of any change in the address, or in the
designation, of the Warrant Agent. 
 Article VI 
 Warrant Agent 
 6.01. Resignation, Consolidation or Merger of Warrant
Agent. 
 (a) The Warrant Agent, or any successor, may resign its duties and be discharged from all further duties and
liabilities hereunder after giving sixty (60) days notice in writing to the Company, except that shorter notice may be given if the Company, in writing, accepts such shorter notice as sufficient. If the office of Warrant Agent becomes vacant by
resignation or incapacity to act or otherwise, the Company shall appoint in writing a successor Warrant Agent in place of the Warrant Agent. 
  

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 (b) If the Company fails to make an appointment within sixty (60) days after it has
been notified in writing of a resignation or an incapacity by the resigning or incapacitated Warrant Agent or by the holder of a Warrant (who must, with any notice, submit the Warrant for inspection by the Company), then the holder of any Warrant
may apply to any court of competent jurisdiction for the appointment of a successor Warrant Agent. Any successor Warrant Agent, whether appointed by the Company or by a court, must be a corporation organized, doing business and in good standing
under the laws of the United States of America or of any State, authorized under the laws under which it is governed to exercise corporate trust powers, be subject to supervision or examination by federal or state authorities, and have a combined
capital and surplus of not less than $5,000,000. The combined capital and surplus of any successor Warrant Agent shall be deemed to be the combined capital and surplus set forth in the most recent report of its condition published prior to its
appointment, provided that these reports are published at least annually pursuant to law or to the requirements of a federal or state supervision or examining authority. 
 (c) After appointment, any successor Warrant Agent shall be vested with all the authorities, powers, rights, immunities, duties and obligations of its predecessor Warrant Agent with like effect
as if originally named as Warrant Agent under this Agreement without any further act or deed. However, if for any reason it becomes necessary or appropriate, the predecessor Warrant Agent shall execute and deliver, at the Company’s expense, an
instrument transferring to a successor Warrant Agent all the authority, powers, rights, immunities, duties and obligations of a Warrant Agent hereunder. Not later than the effective date of any appointment the Company shall give notice of the
appointment to the predecessor Warrant Agent to each transfer agent for its Common Shares and to the registered holders of the Warrants. Failure to give notice, or any defect in a notice, shall not affect the validity of the appointment of a
successor Warrant Agent. 
 (d) Any corporation into which the Warrant Agent may be merged or with which it may be
consolidated or any corporation resulting from any merger or consolidation to which the Warrant Agent is a party shall be the successor Warrant Agent under this Agreement without any further act. 
  6.02. Fees and Expenses of Warrant Agent. The Company shall (a) pay the Warrant Agent reasonable remuneration for its
services as Warrant Agent hereunder and reimburse the Warrant Agent upon demand for all expenditures that it may reasonably incur in the execution of its duties hereunder, for example and not by way of limitation, including the cost of legal counsel
utilized by Warrant Agent pursuant to Section 6.03(a) hereof; and (b) perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all further and other acts, instruments and assurances that
reasonably may be required by the Warrant Agent to carry out or perform this Agreement. 
   

 7 

 6.03. Additional Provisions. 
 (a) The Warrant Agent may consult with legal counsel (who may be legal counsel for the Company) and the opinion of legal counsel shall be
full and complete authorization and protection to the Warrant Agent with respect to any action taken or omitted by it in good faith and in accordance with the opinion. 
 (b) Whenever in the performance of its duties under this Agreement the Warrant Agent deems it necessary or desirable that any fact or matter be proved or established by the Company prior to
taking or suffering any action hereunder, the fact or matter (unless other evidence with respect thereto is specifically prescribed in this Agreement) may be deemed to be conclusively proved and established by a statement signed by the President or
a Vice President or the Treasurer or an Assistant Treasurer or the Controller or the Secretary of the Company and delivered to the Warrant Agent. However, in its discretion, the Warrant Agent may in lieu of a signed statement accept other evidence
of a fact or matter or may require further or additional evidence that to it may seem reasonable. 
 (i) The
Company shall indemnify and hold harmless the Warrant Agent and its employees from and against any loss, damage, liability or claim suffered, incurred by, or asserted against it or them, including expenses of legal counsel, arising out of, in
connection with or based upon any act or omission by it or them relating in any way to this Agreement or its services hereunder, so long as the Warrant Agent and its employees have acted in good faith and without negligence. 
 (ii) The Warrant Agent shall indemnify and hold harmless the Company from and against any loss, damage, liability or claim
suffered, incurred by, or asserted against the Company, including expenses of legal counsel, arising out of, in connection with or based upon any act or omission by the Warrant Agent relating in any way to this Agreement or its services hereunder,
so long as the Warrant Agent has acted in bad faith and/or with negligence. 
 (c) The Warrant Agent shall not be liable for
or by reason of any of the statements of fact or recital contained in this Agreement or in the Warrants (except its countersignature of the Warrants) or be required to verify the statements or recitals, and all of these statements and recitals are
and shall be deemed to have been made only by the Company. 
 (d) The Warrant Agent shall not be responsible for (i) the
validity of this Agreement, (ii) the execution and delivery of this Agreement or the validity and execution of any Warrants (except its countersignature or execution of the Warrants), (iii) any breach by the Company of any covenant or
condition contained herein or in any Warrant, (iv) the making of any adjustment required by Article III of this Agreement or (v) the manner, method or amount of any adjustment or the ascertaining of the existence of facts that would
require any adjustment. The Warrant Agent also, by any act under or pursuant hereto, shall not be deemed to make any representation or warranty as to the authorization or reservation of any Common Shares to be issued pursuant hereto, as to any
Warrant or as to whether, when issued, Common Shares shall be duly and validly issued, fully paid and nonassessable. 
  

 8 

 6.04. Acceptance of Agency. The Warrant Agent hereby accepts the agency
established by this Agreement and agrees to perform this Agreement upon the terms and conditions set forth herein. Among other things, the Warrant Agent shall account promptly to the Company with respect to Warrants exercised and concurrently pay to
the Company all moneys received by it for the purchase of Common Shares through the exercise of Warrants. 
 Article VII 
 Other Matters 
 7.01. Payment of Taxes. The Company shall from time to time promptly pay all taxes and charges that may be imposed upon the Company or the Warrant Agent in connection with the issuance or delivery of Common Shares upon the exercise
of Warrants, but the Company shall not be required to pay any transfer taxes or income taxes in connection with the Warrants or shares. 
 7.02. Modification of Agreement. Without the consent or concurrence of the holders of the Warrants, the Warrant Agent may by supplemental agreement or otherwise concur with the Company in making any changes or
corrections in this Agreement that it is advised by counsel (who may be counsel for the Company) are required to cure any ambiguity or to correct any defective or inconsistent provision or clerical omission or mistake or manifest error contained
herein. 
 7.03. Successors. All the covenants and provisions of this Agreement by or for the benefit of the Company
or the Warrant Agent shall bind and inure to the benefit of their respective successors and assigns hereunder. 
 7.04.
Notices and Demands to Company and Warrant Agent. Any notice or demand authorized by this Agreement to be given or made by the Company, the Warrant Agent or by the holder of any Warrant shall be sufficiently given or made if sent by certified
or registered mail, postage prepaid, addressed (until another address is filed in writing), as follows: 
  

			
	 To the Company:
	 	 Gold Ribbon Bio Energy Holdings Inc.
 101 E. Industrial Drive
 Sedgwick, Kansas 67135
 Attn: Timothy R. Schwab

		
	 To the Warrant Agent:
	 	 Olde Monmouth Stock Transfer Co., Inc.
 200 Memorial Parkway
 Atlantic Highlands, New Jersey 07716
 Attn: Account Executive

 7.05. Applicable Law. The validity, interpretation and performance of this
Agreement and of the Warrants shall be governed by the laws of the State of Delaware. 
 7.06. Persons Having Rights Under
This Agreement. Nothing expressed in this Agreement and nothing that may be implied from any of the provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other than the parties to this
Agreement and the holders of the Warrants any right, remedy or claim under or by reason of this Agreement or of 

  

 9 

 
any covenant, conditions, stipulation, promise or agreement contained herein, and all covenants, conditions, stipulations, promises and agreements contained
herein shall be for the sole and exclusive benefit of the parties hereto and their respective successors and assigns and of the holders of the Warrants. 
 7.07. Examination of Agreement. A copy of this Agreement shall be available at all reasonable times at the office of the Warrant Agent for inspection by the holder of any Warrant. The Warrant Agent may require
the holder seeking inspection to submit the Warrant for inspection by it. 
 7.08. Effect of Headings. The article and
section headings in this Agreement are for convenience only and are not part of this Agreement and shall not affect the interpretation hereof. 
 WITNESS the signatures of the parties to this Agreement as of the day first above written. 
  
  
			
	 Gold Ribbon Bio Energy Holdings Inc.

		
	 By:
	 	  

	 Title:
	 	  

	
	 Olde Monmouth Stock Transfer Co., Inc.

		
	 By: 
	 	  

	 Title:
	 	  

     

 10

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