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    FORM
      OF SECURED CONVERTIBLE NOTE

     

    NEITHER
      THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR
      THE
      SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
      LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
      (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
      SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION
      OF
      COUNSEL REASONABLY SATISFACTORY TO THE ISSUER, IN A GENERALLY ACCEPTABLE FORM,
      THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT
      TO, AND IN ACCORDANCE WITH, RULE 144 OR RULE 144A UNDER SAID ACT.
      NOTWITHSTANDING THE FOREGOING, SUBJECT TO COMPLIANCE WITH APPLICABLE SECURITIES
      LAWS, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
      ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. THIS
      INSTRUMENT IS SUBJECT TO THE TERMS OF A SECURITIES PURCHASE AGREEMENT (NOTES
      AND
      WARRANTS), DATED AS OF MARCH 30, 2007, BY AND AMONG COMANCHE CLEAN ENERGY
      CORPORATION AND THE BUYERS LISTED THEREIN.

    

      COMANCHE
        CLEAN
        ENERGY
        CORPORATION

    

    

      SENIOR
        SECURED
        CONVERTIBLE
        NOTE

    

     

    
      	
              Issuance
                Date: [______], 2007

            	
              Original
                Principal Amount: U.S.
                $_____________

            

    

    
       

      FOR
        VALUE RECEIVED,
        Comanche
        Clean Energy Corporation, a Cayman Islands company (the "Company"),
        hereby promises to pay to the order of [_________] or registered permitted
        assigns ("Holder")
        the
        amount set out above as the Original Principal Amount (as reduced pursuant
        to
        the terms hereof pursuant to redemption (or prepayment), conversion, or
        otherwise, the "Principal")
        when
        due, whether upon the Maturity Date (as defined below), acceleration, redemption
        (or prepayment) or otherwise (in each case in accordance with the terms hereof)
        and to pay interest ("Interest")
        on any
        outstanding Principal at the applicable Interest Rate, from [________], 2007
        (the "Interest
        Commencement Date")
        until
        the same becomes due and payable, whether upon an Interest Date (as defined
        below), the Maturity Date, acceleration, conversion, redemption (or prepayment)
        or otherwise (in each case in accordance with the terms hereof). This Senior
        Secured Convertible Note (including all Senior Secured Convertible Notes
        issued
        in exchange, transfer or replacement hereof, as amended, restated, supplemented
        and/or modified from time to time in accordance with the provisions hereof,
        this
        "Note")
        is one
        of an issue of Senior Secured Convertible Notes issued pursuant to the
        Securities Purchase Agreement on the Closing Date (collectively, the
        "Notes"
        and
        such other Senior Secured Convertible Notes, the "Other Notes").
        Certain capitalized terms used herein are defined in Section 28. Capitalized
        terms used but not defined herein shall have the meanings ascribed to them
        in
        the Securities Purchase Agreement.

       

      
        
          
          

        

        
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      (1) MATURITY.
        On the
        Maturity Date, the Company shall pay to the Holder an amount in cash
        representing all outstanding Principal, accrued and unpaid Interest and accrued
        and unpaid Late Charges (as defined in Section 24(b) hereof) on such Principal
        and Interest. The "Maturity Date"
        shall
        be March __, 2012, as may be extended at the option of the Holder (i) in
        the
        event that, and for so long as, an Event of Default (as defined in Section
        4(a))
        shall have occurred and be continuing on the Maturity Date (as may be extended
        pursuant to this Section 1) or any event that shall have occurred and be
        continuing that with the passage of time and the failure to cure would result
        in
        an Event of Default and (ii) through the date that is ten (10) Business Days
        after the consummation of a Change of Control in the event that a Change
        of
        Control is publicly announced or a Change of Control Notice (as defined in
        Section 5(b)) is delivered prior to the Maturity Date. Except as specifically
        set forth in Section 8 hereof, this Note is not prepayable at the option
        of the
        Company.

       

      (2) INTEREST;
        INTEREST RATE.
        a)
        Interest
        on this Note (i) shall accrue interest at the Interest Rate, commencing on
        the
        Interest Commencement Date,
        (ii) shall be computed on the basis of a 360-day year comprised of twelve
        (12)
        thirty (30) day months and (iii) shall be payable in arrears for each Calendar
        Quarter on the first day of the succeeding Calendar Quarter during the period
        beginning on the Interest Commencement Date
        and
        ending on, and including, the Maturity Date (each, an "Interest Date")
        with
        the first Interest Date being July 1, 2007. Interest on this Note shall accrue
        from the Interest Commencement Date
        until the earlier to occur of the date (i) the Principal Amount is paid or,
        if a
        paying agent is engaged by the Company, transferred to such paying agent
        with
        instructions to pay the same and (ii) all amounts outstanding under this
        Note
        are converted to Ordinary Shares, par value $.001 per share, of the Company
        (“Shares”)
        in
        accordance with the provisions hereof. Interest shall be payable on each
        Interest Date to the record holder of this Note on the applicable Interest
        Date,
and
        to
        the extent that any principal amount of this Note is converted prior to such
        Interest Date, accrued and unpaid Interest in respect of such converted
        principal amount and accrued and unpaid Late Charges in respect of such
        converted principal amount and Interest shall be paid on the Conversion Date
        (as
        defined below) to the record holder of this Note on the applicable Conversion
        Date, in
        cash.

       

      (b) Interest
        on this Note that is payable, and is punctually paid or duly provided for,
        on
        any Interest Date shall be paid to the Person in whose name this Note is
        registered at the close of business on the Record Date for such interest
        at the
        office or agency of the Company maintained for such purpose or at the office
        of
        a payment agent located in the state of New York engaged by the Company for
        the
        purpose of making payments under this Note and the Other Notes. Each payment
        of
        interest on this Note shall be made by check mailed to the address of the
        Holder
        specified in the register of Notes; provided,
        however,
        that,
        at the request of the Holder in writing to the Company, interest on the Holder's
        Note(s) shall be paid by wire transfer in immediately available funds in
        accordance with the written wire transfer instruction supplied by the Holder
        from time to time to the Company at least ten (10) Business Days prior to
        the
        applicable Interest Date or Conversion Date. 

       

      
        
          
          

        

        
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      (c) From
        and
        after the occurrence and during the continuance of an Event of Default, the
        Interest Rate shall be increased to two percent (2.0%) in excess of the Interest
        Rate otherwise payable at such time. In the event that such Event of Default
        is
        subsequently cured or waived, the adjustment referred to in the preceding
        sentence shall cease to be effective as of the date of such cure or waiver;
        provided that the Interest as calculated and unpaid at such increased rate
        during the continuance of such Event of Default shall continue to apply to
        the
        extent relating to the days after the occurrence of such Event of Default
        to but
        excluding the date of cure or waiver of such Event of Default. For purposes
        of
        this Section 2(c), the period of the Event of Default in respect of Section
        4(a)(i) only, shall commence the first day after the grace periods specified
        therein expire and shall end on the day upon which the applicable Registration
        Statement becomes effective or again becomes available, as
        applicable.

       

      (3) CONVERSION
        OF NOTES.
        This
        Note shall be convertible into shares of the Company's Shares on the terms
        and
        conditions set forth in this Section 3.

       

      (a) Conversion
        Right.
        Subject
        to the provisions of Section 3(d), at any time or times on or after the date
        hereof (the “Issuance
        Date”),
        the
        Holder shall be entitled to convert all or any portion of the Principal
        then-outstanding into fully paid and nonassessable Shares in accordance with
        Section 3(c), at the Conversion Rate (as defined below). The Company shall
        not
        issue any fraction of a Share upon any conversion. If the issuance would
        result
        in the issuance of a fraction of a Share, the Company shall round such fraction
        of a Share up to the nearest whole share. The
        Company shall pay any and all taxes that may be payable in respect of the
        issuance and delivery of Shares upon conversion of any Principal.

       

      (b) Conversion
        Rate.
        The
        number of Shares issuable upon conversion of any Conversion Amount pursuant
        to
        Section 3(a) shall be determined by dividing (x) such Conversion Amount by
        (y)
        the Conversion Price (the "Conversion
        Rate").

       

      (i) "Conversion
        Amount"
        means
        the portion of the Principal to be converted, redeemed or otherwise in respect
        of which the applicable determination is being made.

       

      (ii) "Conversion
        Price"
        means,
        as of any Conversion Date (as defined below) or other date of determination,
        $5.50 per Share.

       

      
        
          
          

        

        
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      (c) Mechanics
        of Conversion.

       

      (i) Optional
        Conversion.
        To
        convert any Conversion Amount into Shares on any date (a "Conversion
        Date"),
        the
        Holder shall (A) transmit by facsimile (or otherwise deliver), for receipt
        on or
        prior to 11:59 p.m., New York Time, on such date, a copy of an executed notice
        of conversion in the form attached hereto as Exhibit
        I
        (the
        "Conversion
        Notice")
        to the
        Company and (B) if required by Section 3(c)(iii), surrender this Note to
        a
        common carrier for delivery to the Company as soon as practicable on or
        following such date (or an indemnification undertaking in respect of this
        Note
        in the case of its loss, theft or destruction). On or before the second (2nd)
        Trading Day following the date of receipt of a Conversion Notice, the Company
        shall transmit by facsimile a confirmation of receipt of such Conversion
        Notice
        to the Holder and the Company's transfer agent (the "Transfer
        Agent"),
        which
        confirmation shall constitute an instruction to the Transfer Agent to process
        such Conversion Notice in accordance with the terms herein (the "Share
        Delivery Date"),
        and
        (X) provided that the Transfer Agent is participating in the Depository Trust
        Company ("DTC")
        Fast
        Automated Securities Transfer Program, the applicable registration statement
        is
        effective under the 1933 Act and provided that the Holder is eligible to
        receive
        Shares through DTC, credit such aggregate number of Shares to which the Holder
        shall be entitled to the Holder's or its designee's balance account with
        DTC
        through its Deposit Withdrawal Agent Commission system, or (Y) if the Transfer
        Agent is not participating in the DTC Fast Automated Securities Transfer
        Program
        or the Holder is not eligible to receive Shares through DTC, issue and deliver
        to the address as specified in the Conversion Notice, a certificate, registered
        in the name of the Holder or its designee, for the number of Shares to which the
        Holder shall be entitled, pay to the Holder in cash an amount equal to the
        accrued and unpaid Interest and Late Charges, if any, on the Conversion Amount
        up to and including the Conversion Date. The Holder undertakes that whenever
        the
        Company credits securities as set forth in clause (1)(X) of the preceding
        sentence, (A) upon receipt of notice from the Company that the applicable
        registration statement is not, or no longer is, effective in respect of the
        resale of such securities, the Holder will not transfer such securities (other
        than (I) in connection with a transfer, wherein the Holder provides the Company
        with an opinion of counsel reasonably satisfactory to the Company, in a
        generally acceptable form, to the effect that such transfer may be made without
        registration under the applicable requirements of the 1933 Act, or (II) the
        Holder provides the Company with assurances reasonably acceptable to the
        Company
        that the transfer may be effected pursuant to Rule 144 or Rule 144A) until
        the
        Company notifies the Holder that the applicable registration statement becomes
        effective (again), and (B) the Holder shall indemnify and hold the Company
        harmless against any claim of securities laws violations in respect of the
        transfer (after the receipt of the first notice from the Company provided
        for in
        clause (A) of this sentence but prior to the receipt of the second notice
        from
        the Company provided for in clause (A) of this sentence) by the Holder of
        any
        security as to which such credit at DTC has been effected. If this Note is
        physically surrendered for conversion as required by Section 3(c)(iii) and
        the
        outstanding Principal of this Note is greater than the Principal being
        converted, then the Company shall, as soon as practicable and in no event
        later
        than three (3) Business Days after receipt of this Note (the "Note
        Delivery Date")
        and at
        its own expense, issue and deliver to the holder a new Note (in accordance
        with
        Section 18(d)) representing the outstanding Principal not converted. The
        Person
        or Persons entitled to receive the Shares issuable upon a conversion of this
        Note shall be treated for all purposes as the record holder or holders of
        such
        Shares on the Conversion Date. 

       

      (ii) Company's
        Failure to Timely Convert.
        

       

      (A) Buy-In.
        Subject
        to the terms and conditions of this Note, if the Company shall fail to issue
        a
        certificate to the Holder or credit the Holder's balance account with DTC
        for
        the number of Shares to which the Holder is entitled upon conversion of any
        Conversion Amount on or prior to the date which is three (3) Trading Days
        after
        the Conversion Date (a "Conversion
        Failure"),
        and
        if on or after such Trading Day the Holder purchases (in an open market
        transaction or otherwise) Shares to deliver in satisfaction of a sale by
        the
        Holder of Shares issuable upon such conversion that the Holder anticipated
        receiving from the Company (a "Buy-In"),
        then,
        in addition to all other remedies available to the Holder, the Company shall,
        within three (3) Business Days after the Holder's request and in the Holder's
        discretion, either (i) pay cash to the Holder in an amount equal to the Holder's
        total purchase price (including reasonable out of pocket brokerage commissions,
        and other reasonable out-of-pocket expenses, if any) for the Shares so purchased
        (the "Buy-In
        Price"),
        at
        which point the Company's obligation to deliver such certificate (and to
        issue
        such Shares) shall terminate, or (ii) promptly honor its obligation to deliver
        to the Holder a certificate or certificates representing such Shares and
        pay
        cash to the Holder in an amount equal to the excess (if any) of the Buy-In
        Price
        over the product of (A) such number of Shares, times (B) the Closing Bid
        Price
        on the Conversion Date.

       

      
        
          
          

        

        
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      (B) Conversion
        Failure.
        The
        Company understands that a delay in the delivery of the shares of Common
        Stock
        upon conversion of this Note beyond the Share Delivery Date could result
        in
        economic loss to the Holder. If the Company fails to deliver to the Holder
        such
        shares via DTC (or another applicable clearinghouse facility) or a certificate
        or certificates pursuant to this Section by the Share Delivery Date, the
        Company
        shall pay to such Holder, in cash, an amount per Trading Day for each Trading
        Day until such shares are delivered via DTC (or another applicable clearinghouse
        facility) or certificates are delivered, together with interest on such amount
        at a rate of 10% per annum, accruing until such amount and any accrued interest
        thereon is paid in full, equal to the greater of (A) (i) 1% of the aggregate
        principal amount of the Notes requested to be converted for the first five
        (5)
        Trading Days after the Share Delivery Date and (ii) 2% of the aggregate
        principal amount of the Notes requested to be converted for each Trading
        Day
        thereafter and (B) $2,000 per day (which amount shall be paid as liquidated
        damages and not as a penalty). Nothing herein shall limit a Holder's right
        to
        pursue actual damages for the Company's failure to deliver certificates
        representing shares of Common Stock upon conversion within the period specified
        herein and such Holder shall have the right to pursue all remedies available
        to
        it at law or in equity (including, without limitation, a decree of specific
        performance and/or injunctive relief). Notwithstanding anything to the contrary
        contained herein, the Holder shall be entitled to withdraw a Conversion Notice,
        and upon such withdrawal the Company shall only be obligated to pay the
        liquidated damages accrued in accordance with this Section through the date
        the
        Conversion Notice is withdrawn.

       

      (C) Notice
        of Void Conversion; Adjustment to Conversion Price.
        If for
        any reason the Holder has not received all of the Shares prior to the tenth
        (10th)
        Business Day after the Share Delivery Date in respect of a conversion of
        this
        Note, other than due to the pendency of a dispute being resolved in accordance
        with Section 23, then the Holder, upon written notice to the Company, may
        void
        its Conversion Notice in respect of, and retain or have returned, as the
        case
        may be, any portion of this Note that has not been converted pursuant to
        the
        Holder's Conversion Notice.

       

      (iii) Book-Entry.
        Notwithstanding anything to the contrary set forth herein, upon conversion
        of
        any portion of this Note in accordance with the terms hereof, the Holder
        shall
        not be required to physically surrender this Note to the Company unless (A)
        all
        of the Principal is being converted or (B) the Holder has provided the Company
        with prior written notice (which notice may be included in a Conversion Notice)
        requesting reissuance of this Note upon physical surrender of this Note.
        The
        Holder and the Company shall maintain records showing the Principal converted
        (and the Interest and Late Charges paid in respect thereof) and the dates
        of
        such conversions or shall use such other method, reasonably satisfactory
        to the
        Holder and the Company, so as not to require physical surrender of this Note
        upon conversion. Notwithstanding the foregoing, if this Note is converted
        or
        redeemed as aforesaid, the Holder may not transfer this Note unless the Holder
        first physically surrenders this Note to the Company, whereupon the Company
        will
        forthwith issue and deliver upon the order of the Holder a new Note of like
        tenor, registered as the Holder may request, representing in the aggregate
        the
        remaining Principal represented by this Note. The Holder and any assignee,
        by
        acceptance of this Note, acknowledge and agree that, by reason of the provisions
        of this paragraph, following conversion or redemption of any portion of this
        Note, the Principal of this Note may be less than the principal amount stated
        on
        the face hereof.

       

      
        
          
          

        

        
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      (iv) Pro
        Rata Conversion; Disputes.
        In the
        event that the Company receives a Conversion Notice from more than one holder
        of
        Notes for the same Conversion Date and the Company can convert some, but
        not
        all, of such portions of the Notes submitted for conversion, the Company,
        subject to Section 3(d), shall convert from each holder of Notes electing
        to
        have Notes converted on such date a pro rata amount of such holder's portion
        of
        its Notes submitted for conversion based on the principal amount of Notes
        submitted for conversion on such date by such holder relative to the aggregate
        principal amount of all Notes submitted for conversion on such date. In the
        event of a dispute as to the number of Shares issuable to the Holder in
        connection with a conversion of this Note, the Company shall issue to the
        Holder
        the number of Shares not in dispute and resolve such dispute in accordance
        with
        Section 23.

       

      (d) Limitations
        on Conversions.
        

       

      (i) Beneficial
        Ownership.
        The
        Company shall not effect any conversion of this Note, and the Holder of this
        Note shall not have the right to convert any portion of this Note pursuant
        to
        Section 3(a), to the extent that after giving effect to such conversion,
        the
        Holder (together with the Holder's affiliates) would beneficially own in
        excess
        of 9.99% (the "Maximum
        Percentage")
        of the
        number of Shares outstanding immediately after giving effect to such conversion;
        provided,
        however,
        that
        following the Optional Redemption Notice Date (as defined in Section 8(a))
        the
        Maximum Percentage shall be of no further force and effect on the Optional
        Redemption Date, solely for purposes of effecting a Optional Redemption pursuant
        to Section 8. For purposes of the foregoing sentence, the aggregate number
        of
        Shares beneficially owned by the Holder and its affiliates shall include
        the
        number of Shares issuable upon conversion of this Note in respect of which
        the
        determination of such sentence is being made, but shall exclude the number
        of
        Shares which would be issuable upon (A) conversion of the remaining,
        nonconverted portion of this Note beneficially owned by the Holder or any
        of its
        affiliates and (B) exercise or conversion of the unexercised or nonconverted
        portion of any other securities of the Company (including, without limitation,
        any Other Notes or warrants) subject to a limitation on conversion or exercise
        analogous to the limitation contained herein beneficially owned by the Holder
        or
        any of its affiliates. Except as set forth in the preceding sentence, for
        purposes of this Section 3(d)(i), beneficial ownership shall be calculated
        in
        accordance with Section 13(d) of the Securities Exchange Act of 1934, as
        amended
        (the "Exchange
        Act").
        For
        purposes of this Section 3(d)(i), in determining the number of outstanding
        Shares, the Holder may rely on the number of outstanding Shares as reflected
        in
        (x) the Company's most recent periodic filings filed with the Securities
        and
        Exchange Commission under the Exchange Act and the rules promulgated thereunder,
        as the case may be, (y) a more recent public announcement by the Company
        or (z)
        any other notice by the Company or the Transfer Agent setting forth the number
        of Shares outstanding. For any reason at any time, upon the written or oral
        request of the Holder, the Company shall promptly, but in no event no later
        than
        two (2) Business Days, confirm orally and in writing to the Holder the number
        of
        Shares then outstanding. In any case, the number of outstanding Shares shall
        be
        determined after giving effect to the conversion or exercise of securities
        of
        the Company, including this Note, by the Holder or its affiliates since the
        date
        as of which such number of outstanding Shares was reported. By written notice
        to
        the Company, the Holder may increase or decrease the Maximum Percentage to
        any
        other percentage not in excess of 9.99% specified in such notice (except
        such
        percentage may be exceeded with respect to a Holder who has made a written
        request for a waiver of such limitation); provided that (i) any such increase
        will not be effective until the sixty-first (61st)
        day
        after such notice is delivered to the Company, and (ii) any such increase
        or
        decrease will apply only to the Holder and not to any other holder of
        Notes.

       

      
        
          
          

        

        
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      (ii) Principal
        Market Regulation.
         The
        Company shall not be obligated to issue any Shares upon conversion of this
        Note,
        and the Holder of this Note shall not have the right to receive upon conversion
        of this Note any Shares, if the issuance of such Shares would exceed the
        aggregate number of Shares which the Company may issue upon conversion or
        exercise, as applicable, of the Notes and Warrants without breaching the
        Company's obligations under the rules or regulations of the applicable Eligible
        Market (the number of shares which may be issued without violating such rules
        and regulations, the "Exchange
        Cap"),
        except that such limitation shall not apply in the event that the Company
        (A)
        obtains the approval of its stockholders as required by the applicable rules
        of
        such Eligible Market for issuances of Shares in excess of such amount (the
        "Stockholder
        Approval")
        or (B)
        obtains a written opinion from outside counsel to the Company that such approval
        is not required, which opinion shall be reasonably satisfactory to the Required
        Holders. Unless and until such Stockholder Approval or written opinion is
        obtained, no purchaser of the Notes pursuant to the Securities Purchase
        Agreement (each, a "Purchaser")
        shall
        be issued in the aggregate, upon conversion or exercise or otherwise, as
        applicable, of Notes or Warrants, Shares in an amount greater than the product
        of the Exchange Cap multiplied by a fraction, the numerator of which is the
        principal amount of Notes issued to such Purchaser pursuant to the Securities
        Purchase Agreement on the Closing Date and the denominator of which is the
        aggregate principal amount of all Notes issued to the Purchasers pursuant
        to the
        Securities Purchase Agreement on the Closing Date (in respect of each Purchaser,
        the "Exchange
        Cap Allocation").
        In
        the event that any Purchaser shall sell or otherwise transfer any of such
        Purchaser's Notes, the transferee shall be allocated a pro rata portion of
        such
        Purchaser's Exchange Cap Allocation, and the restrictions of the prior sentence
        shall apply to such transferee in respect of the portion of the Exchange
        Cap
        Allocation allocated to such transferee. In the event that any holder of
        Notes
        shall convert all of such holder's Notes into a number of Shares which, in
        the
        aggregate, is less than such holder's Exchange Cap Allocation, then the
        difference between such holder's Exchange Cap Allocation and the number of
        Shares actually issued to such holder shall be allocated to the respective
        Exchange Cap Allocations of the remaining holders of Notes on a pro rata
        basis
        in proportion to the aggregate principal amount of the Notes then held by
        each
        such holder.

       

      
        
          
          

        

        
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      (4) RIGHTS
        UPON EVENT OF DEFAULT.

       

      (a) Event
        of Default.
        Each of
        the following events shall constitute an "Event
        of Default":

       

      (i)
        the
        failure of the applicable Registration Statement required to be filed pursuant
        to the Registration Rights Agreement to be declared effective by the SEC
        on or
        prior to the date that is sixty (60) days after the applicable Effectiveness
        Deadline (as defined in the Registration Rights Agreement) (other than a
        failure
        delay substantially due to information required from investors not being
        provided or being inaccurate or incomplete) or, while the applicable
        Registration Statement is required to be maintained effective pursuant to
        the
        terms of the Registration Rights Agreement, the effectiveness of the applicable
        Registration Statement lapses for any reason (including, without limitation,
        the
        issuance of a stop order) or is unavailable to any holder of the Notes for
        sale
        of all of such holder's Registrable Securities (as defined in the Registration
        Rights Agreement) in accordance with the terms of the Registration Rights
        Agreement, and such lapse or unavailability continues for a period of fifteen
        (15) consecutive days or for more than three times in any 365-day period
        that
        does not exceed forty-five (45) days in the aggregate (other, in each case,
        than
        days during an Allowable Grace Period or a Maintenance Grace Period (as each
        term is defined in the Registration Rights Agreement));

       

      (ii)
        the
        suspension from trading or failure of the Shares to be listed on an Eligible
        Market for a period of seven (7) consecutive Trading Days or for more than
        an
        aggregate of fifteen (15) Trading Days in any 365-day period;

       

      (iii)
        the
        Company's (A) failure to cure a Conversion Failure by delivery, subject to
        the
        conversion limitations set forth in Section 3(d) (the “Conversion
        Limitations”),
        of
        the required number of Shares within fifteen (15) Business Days after the
        applicable Conversion Date or (B) notice to any holder of the Notes, including
        by way of public announcement or through any of its agents, at any time,
        of its
        intention not to comply with a request for conversion of any Notes into Shares
        that is tendered in accordance with the provisions of the Notes, other than
        pursuant to Section 3(d);

       

      (iv) At
        any
        time following the twentieth (20th)
        consecutive Business Day that the Holder's Authorized Share Allocation (as
        defined in Section 11(a) hereof) is less than the number of Shares that the
        Holder would be entitled to receive upon a conversion of the full Conversion
        Amount of this Note (without regard to any limitations on conversion set
        forth
        in Section 3(d) or otherwise);

       

      (v) the
        Company's failure to pay to the Holder any amount of Principal (including,
        without limitation, any redemption payments), Interest, Late Charges or other
        amounts when and as due under this Note or any other Transaction Document
        (as
        defined in the Securities Purchase Agreement) or any other agreement, document,
        certificate or other instrument delivered in connection with the transactions
        contemplated hereby and thereby to which the Holder is a party, except, in
        the
        case of a failure to pay Interest or Late Charges when and as due, in which
        case
        only if such failure continues for a period of at least two (2) Business
        Days;

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      (vi) the
        Company's or any Subsidiary's failure to pay any principal of or interest
        or
        premium on any of its Indebtedness (excluding Indebtedness evidenced by any
        of
        the Notes), to the extent that the aggregate principal amount of all such
        Indebtedness exceeds $2,000,000, when due (whether by scheduled maturity,
        required prepayment, acceleration, demand or otherwise) and such failure
        shall
        continue after the applicable grace period, if any, specified in the agreement
        or instrument relating to such Indebtedness, or any other default under any
        agreement or instrument relating to any such Indebtedness, or any other event,
        shall occur and shall continue after the applicable grace period, if any,
        specified in such agreement or instrument, if the effect of such default
        or
        event is to accelerate, or to permit the acceleration of, the maturity of
        such
        Indebtedness; or any such Indebtedness shall be declared to be due and payable,
        or required to be prepaid (other than by a regularly scheduled required
        prepayment), redeemed, purchased or defeased or an offer to prepay, redeem,
        purchase or defease such Indebtedness shall be required to be made, in each
        case, prior to the stated maturity thereof;

       

      (vii) the
        Company or any of
        its
        Subsidiaries (A)
        shall
        institute any proceeding or voluntary case seeking to adjudicate it bankrupt
        or
        insolvent, or seeking dissolution, liquidation, winding up, reorganization,
        arrangement, adjustment, protection, relief or composition of it or its debts
        under any law relating to bankruptcy, insolvency, reorganization or relief
        of
        debtors, or seeking the entry of an order for relief or the appointment of
        a
        receiver, administrative receiver, administrator, trustee, custodian, liquidator
        or other similar official for any such Person or for any substantial part
        of its
        property, or any other Insolvency Proceeding, (B) shall be generally not
        paying
        its debts as such debts become due or shall admit in writing its inability
        to
        pay its debts generally or shall be unable to pay its debts, (C) shall make
        a
        general assignment for the benefit of creditors, or (D) shall take any action
        to
        authorize or effect any of the actions set forth above in this subsection
        (vii);

       

      (viii) any
        proceeding shall be instituted against the Company or any of its Subsidiaries
        seeking to adjudicate it bankrupt or insolvent, or seeking dissolution,
        liquidation, winding up, reorganization, arrangement, adjustment, protection,
        relief of debtors, or seeking the entry of an order for relief or the
        appointment of a receiver, administrative receiver, administrator, trustee,
        custodian, liquidator or other similar official for any such Person or for
        any
        substantial part of its property, or any other Insolvency Proceeding shall
        be
        instituted against the Company or any Subsidiary, and any such proceeding
        shall
        remain undismissed or unstayed for a period of thirty (30) days or any of
        the
        actions sought in such proceeding (including, without limitation, the entry
        of
        an order for relief against any such Person or the appointment of a receiver,
        administrative receiver, administrator, trustee, custodian, liquidator or
        other
        similar official for it or for any substantial part of its property) shall
        occur;

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      (ix) any
        provision of any Note, Security Document or any other security document entered
        into for the benefit of the Collateral Agent or any Holder, after delivery
        thereof pursuant the Securities Purchase Agreement or any Note shall at any
        time
        for any reason (other than pursuant to the express terms thereof) cease to
        be
        valid and binding on or enforceable against the Company or any Guarantor
        under
        the Guaranties intended to be a party thereto, or the validity or enforceability
        thereof shall be contested by the Company or any Guarantor, or a proceeding
        shall be commenced by the Company or any Guarantor or any Governmental Authority
        having jurisdiction over any of them, seeking to establish the invalidity
        or
        unenforceability thereof, or any the Company or any Guarantor shall deny
        in
        writing that it has any liability or obligation purported to be created under
        any Note or Security Document; (x) the Pledge Agreement, the Guaranty Agreement
        (as each such term is defined in the Securities Purchase Agreement) or any
        other
        security document entered into for the benefit of the Collateral Agent (as
        defined in the Securities Purchase Agreement) or any Holder, after delivery
        thereof pursuant to the Securities Purchase Agreement or any Note, shall
        for any
        reason fail or cease to create a valid and perfected and, except to the extent
        permitted by the terms hereof or thereof, first priority Lien (subject to
        Permitted Liens) in favor of the Collateral Agent for the benefit of Holders
        on
        any Collateral purported to be covered thereby;

       

      (x) the
        loss,
        suspension or revocation of, or failure to renew, any license or permit now
        held
        or hereafter acquired by the Company or any Guarantor, if such license or
        permit
        is not replaced with a similar license or permit and, after giving effect
        to
        such replacement license or permit, such loss, suspension, revocation or
        failure
        to renew has or could reasonably be expected to have a Material Adverse
        Effect;

       

      (xi) the
        indictment of the Company or any Guarantor under any criminal statute, or
        commencement of criminal or civil proceedings against the Company or any
        Guarantor, pursuant to which statute or proceedings the penalties or remedies
        sought or available include forfeiture to any Governmental Authority of any
        material portion of the property of such Person and the loss of such property
        could reasonably be expected to have a Material Adverse Effect;

       

      (xii) a
        Change
        of Control (except if there has occurred an assumption of obligations as
        evidenced by the Notes as provided in Section 5(a)) shall have
        occurred;

       

      (xiii) a
        breach,
        default, event of default or termination shall occur under any Acquisition
        Document or other Material Contract after giving effect to applicable grace
        periods, if any, contained in any such Acquisition Document or other Material
        Contract that gives any third party the right to terminate any such Acquisition
        Document or other Material Contract that could reasonably be expected to
        have a
        Material Adverse Effect;

       

      (xiv) one
        or
        more final and unappealable judgments or orders for the payment of money
        is
        rendered against the Company or any Subsidiary in excess of $2,000,000 in
        the
        aggregate (provided that, any judgment covered by insurance where the insurer
        has assumed responsibility in writing for such judgment and acknowledged
        that
        the Company or Subsidiary, as applicable, will receive the proceeds of such
        insurance within thirty (30) days of the issuance of a final, non-appealable
        judgment and execution thereon is effectively stayed shall not be included
        in
        calculating such amount) and shall remain undischarged or unvacated for a
        period
        in excess of sixty (60) days or execution shall at any time not be effectively
        stayed, or any final and unappealable judgment other than for the payment
        of
        money, or injunction, attachment, garnishment or execution is rendered against
        the Company or any Subsidiary or any of the Collateral having a value in
        excess
        of $2,000,000 and shall remain undischarged or unvacated for a period in
        excess
        of sixty (60) days or execution shall at any time not be effectively
        stayed;

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      (xv)
        Any
        representation or warranty made by the Company or any Subsidiary herein (a)
        containing a materiality threshold, is incorrect or misleading when made
        or (b)
        in respect of any such representation or warranty which does not contain
        a
        materiality threshold, the same is materially misleading or materially incorrect
        when made or (B) the Company breaches any covenant (other than the covenants
        set
        forth in Section 14 of this Note) or other material term or condition of
        any
        Transaction Document, except, in the case of a breach of a covenant, term
        or
        condition which is curable, only if such breach continues for a period of
        at
        least twenty (20) consecutive Business Days;

       

      (xvi) any
        material breach or failure to comply with Section 14 of this Note, or Sections
        6(e), (g), or (h) of the Pledge Agreement; provided that any breach or failure
        to comply with Section 14(q) and (v) of the Note shall not constitute an
        Event
        of Default unless such breach or failure, individually or in the aggregate,
        shall have a Material Adverse Effect. 

       

      (xvii) any
        Event
        of Default (as defined in the Other Notes) occurs in respect of any Other
        Note;

       

      (xviii) [intentionally
        omitted]; 

       

      (xix) the
        Company and/or any Guarantor(s) is/are enjoined, restrained or in any way
        prevented by the order of any court or any Governmental Authority from
        conducting all or any material part of its or their business for more than
        ten
        (10) days provided that such curtailment could reasonably be expected to
        have a
        Material Adverse Effect;

       

      (xx) [intentionally
        omitted]; or 

       

      (xxi) any
        cessation of a substantial part of the business of the Company and/or any
        Guarantor(s) for a period which could reasonably be expected to have a Material
        Adverse Effect.

       

      (b) Redemption
        Right.
        Upon
        the Company's obtaining knowledge of the occurrence of an Event of Default
        in
        respect of this Note or any Other Note, the Company shall, as soon as possible,
        but in any event, within two (2) Business Days thereafter deliver written
        notice
        thereof via facsimile and overnight courier (an "Event
        of Default Notice")
        to the
        Holder. At any time after the earlier of the Holder's receipt of such Event
        of
        Default Notice and the Holder's becoming aware of such an Event of Default
        in
        respect of this Note or any Other Note, the Holder may require the Company
        to
        redeem all or any portion of this Note by delivering written notice thereof
        (the
        "Event
        of Default Redemption Notice")
        to the
        Company, which Event of Default Redemption Notice shall indicate the portion
        of
        this Note the Holder is electing to redeem. Each portion of this Note subject
        to
        redemption by the Company pursuant to this Section 4(b) shall be redeemed
        as
        provided in Section 12(a) by the Company at a price equal to the greater
        of (x)
        the product of (i) the Conversion Amount to be redeemed together with accrued
        and unpaid Interest and Late Charges, if any incurred up to and including
        the
        Conversion Date, in respect of such Conversion Amount and (ii) the Redemption
        Premium or (y) the product of (A) the Closing Sale Price of the Shares on
        the
        date immediately preceding such Event of Default multiplied by (B) the number
        of
        Shares into which the amount set forth in clause (x) would have converted
        into
        in accordance with Section 3(a) (the "Event
        of Default Redemption Price").
        For
        purposes of this Section 4(b) and Section 12(a), an Event of Default occurring
        under Section 4(a)(i) hereof shall be deemed to be cured on the day upon
        which
        the applicable Registration Statement becomes effective or again becomes
        available, as applicable. To the extent redemptions required by this Section
        4(b) are deemed or determined by a court of competent jurisdiction to be
        prepayments of the Note by the Company, such redemptions shall be deemed
        to be
        voluntary prepayments. The parties hereto agree that in the event of the
        Company's redemption of any portion of the Note under this Section 4(b),
        the
        Holder's damages would be uncertain and difficult to estimate because of
        the
        parties' inability to predict future interest rates and the uncertainty of
        the
        availability of a suitable substitute investment opportunity for the Holder.
        Accordingly, any Redemption Premium due under this Section 4(b) is intended
        by
        the parties to be, and shall be deemed, a reasonable estimate of the Holder's
        actual loss of its investment opportunity and not as a penalty.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      (5) RIGHTS
        UPON FUNDAMENTAL TRANSACTION AND CHANGE OF CONTROL.

       

      (a) Assumption.
        The
        Company shall not enter into or be party to a Fundamental Transaction unless,
        in
        the case of a Fundamental Transaction of the type described in clause (ii),
        (iii), (iv), or (v) of the definition thereof if the Successor Entity in
        such
        Fundamental Transaction is a person other than the Company, (i) such
        Successor Entity assumes in writing all of the obligations of the Company
        under
        this Note and the other Transaction Documents in accordance with the provisions
        of this Section 5(a) pursuant to written agreements in form and substance
        reasonably satisfactory to the Required Holders including agreements to deliver
        to each holder of Notes in exchange for such Notes securities of the Successor
        Entity evidenced by a written instrument substantially similar in form and
        substance to the Notes, including, without limitation, having a principal
        amount
        and interest rate equal to the principal amounts then outstanding and the
        interest rates of the Notes held by such holder, having similar conversion
        rights as the Notes and having similar ranking to the Notes, and reasonably
        satisfactory to the Required Holders and (ii) such Successor Entity (or its
        Parent Entity) is a publicly traded corporation whose common stock is quoted
        on
        or listed for trading on an Eligible Market (other than the Initial Principal
        Market). Upon the occurrence of any Fundamental Transaction, such Successor
        Entity shall succeed to, and be substituted for (so that from and after the
        date
        of such Fundamental Transaction, the provisions of this Note referring to
        the
        "Company" shall refer instead to such Successor Entity), and may exercise
        every
        right and power of the Company and shall assume all of the obligations of
        the
        Company under this Note with the same effect as if such Successor Entity
        had
        been named as the Company herein. Upon consummation of the Fundamental
        Transaction, such Successor Entity shall deliver to the Holder confirmation
        that
        there shall be issued upon conversion or redemption of this Note at
        any
        time after the consummation of the Fundamental Transaction, in lieu of the
        shares of the Company's Shares (or
        other
        securities, cash, assets or other property) issuable
        upon the conversion or redemption of the Notes prior to such Fundamental
        Transaction,
        such
        shares of the publicly traded common stock (or their equivalent) of the
        Successor Entity (including its Parent Entity), as adjusted in accordance
        with
        the provisions of this Note. The
        provisions of this Section shall apply similarly and equally to successive
        Fundamental Transactions and shall be applied without regard to any limitations
        on the conversion or redemption of this Note.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      (b) Redemption
        Right.
        No
        sooner than fifteen (15) days nor later than ten (10) days prior to the
        consummation of a Change of Control, but not prior to the public announcement
        of
        such Change of Control, the Company shall deliver written notice thereof
        via
        facsimile and overnight courier to the Holder (a "Change
        of Control Notice").
        At
        any time during the period beginning after the Holder's receipt of a Change
        of
        Control Notice and ending twenty (20) Trading Days after the consummation
        of
        such Change of Control, the Holder may require the Company to redeem all
        or any
        portion of this Note by delivering written notice thereof ("Change
        of Control Redemption Notice")
        to the
        Company, which Change of Control Redemption Notice shall indicate the Conversion
        Amount the Holder is electing to redeem. The portion of this Note subject
        to
        redemption pursuant to this Section 5 shall be redeemed by the Company in
        cash
        at a price equal to the sum of (i) the Conversion Amount being redeemed,
        plus
        (ii) accrued and unpaid Interest, plus (iii) Late Charges, if any, in respect
        of
        such Conversion Amount up to and including the date of redemption, plus (iv)
        a
        Breakage Cost. For purposes of the preceding sentence, “Breakage
        Costs”
shall
        equal the product of 0.2917% times the number of months remaining from the
        date
        of the Redemption pursuant to the Change of Control Redemption Notice until
        March ___, 2012 (such sum, the "Change
        of Control Redemption Price").
        Redemptions required by this Section 5 shall be made in accordance with the
        provisions of Section 12 and shall have priority over payments to stockholders
        in connection with a Change of Control. To the extent redemptions required
        by
        this Section 5(b) are deemed or determined by a court of competent jurisdiction
        to be prepayments of the Note by the Company, such redemptions shall be deemed
        to be voluntary prepayments. Notwithstanding anything to the contrary in
        this
        Section 5, but subject to Section 3(d), until the Change of Control Redemption
        Price is paid in full, which shall occur on the thirteeth (30th)
        day
        following a Change in Control, the Conversion Amount submitted for redemption
        under this Section 5(c) may be converted, in whole or in part, by the Holder
        into Shares pursuant to Section 3. The parties hereto agree that in the event
        of
        the Company's redemption of any portion of the Note under this Section 5(b),
        the
        Holder's damages would be uncertain and difficult to estimate because of
        the
        parties' inability to predict future interest rates and the uncertainty of
        the
        availability of a suitable substitute investment opportunity for the Holder.
        Accordingly, any redemption premium due under this Section 5(b) is intended
        by
        the parties to be, and shall be deemed, a reasonable estimate of the Holder's
        actual loss of its investment opportunity and not as a penalty, and the receipt
        by the Holder of the Change of Control Redemption Price shall constitute
        full
        satisfaction of the amount requested to be redeemed pursuant to this Section
        5.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      (6) RIGHTS
        UPON ISSUANCE OF PURCHASE RIGHTS AND OTHER CORPORATE EVENTS.

       

      (a) Purchase
        Rights.
        If at
        any time the Company grants, issues or sells any Options, Convertible Securities
        or rights to purchase stock, warrants, securities or other property pro rata
        to
        the record holders of any class of Shares (collectively, the "Purchase
        Rights"),
        then
        the Holder will be entitled to acquire, upon the terms applicable to such
        Purchase Rights, the aggregate Purchase Rights which the Holder could have
        acquired if the Holder had held the number of Shares acquirable upon complete
        conversion of this Note (without taking into account any limitations or
        restrictions on the convertibility of this Note) immediately before the date
        on
        which a record is taken for the grant, issuance or sale of such Purchase
        Rights,
        or, if no such record is taken, the date as of which the record holders of
        Shares are to be determined for the grant, issue or sale of such Purchase
        Rights.

       

      (b) Other
        Corporate Events.
        In
        addition to and not in substitution for any other rights hereunder, but without
        duplication of the consideration issuable pursuant to Section 5(a), prior
        to the
        consummation of any Fundamental Transaction pursuant to which holders of
        Shares
        are entitled to receive securities or other assets in respect of or in exchange
        for Shares (a "Corporate
        Event"),
        the
        Company shall make appropriate provision to insure that the Holder will
        thereafter have the right to receive upon a conversion of this Note, (i)
        in
        addition to the Shares receivable upon such conversion, such securities or
        other
        assets to which the Holder would have been entitled in respect of such Shares
        had such Shares been held by the Holder upon the consummation of such Corporate
        Event (without taking into account any limitations or restrictions on the
        convertibility of this Note) or (ii) in lieu of the Shares otherwise receivable
        upon such conversion, such securities or other assets received by the holders
        of
        Shares in connection with the consummation of such Corporate Event in such
        amounts as the Holder would have been entitled to receive had this Note
        initially been issued with conversion rights for the form of such consideration
        (as opposed to Shares) at a conversion rate for such consideration commensurate
        with the Conversion Rate. Provision made pursuant to the preceding sentence
        shall be in a form and substance satisfactory to the Required Holders. The
        provisions of this Section shall apply similarly and equally to successive
        Corporate Events and shall be applied without regard to any limitations on
        the
        conversion or redemption of this Note.

       

      (7) RIGHTS
        UPON ISSUANCE OF OTHER SECURITIES.

       

      (a) Adjustment
        of Conversion Price upon Issuance of Shares.
        If and
        whenever on or after the Subscription Date, the Company (i) issues or sells,
        or
        in accordance with this Section 7(a) is deemed to have issued or sold, any
        Shares
        (including the issuance or sale of Shares
        owned or
        held by or for the account of the Company, but excluding shares
        of
        Excluded Securities and Shares
        deemed to have been issued or sold by the Company in connection with any
        Excluded Security), Convertible Securities or Options entitling the recipient
        thereof to subscribe for or purchase Shares for a consideration per Share
        or
(ii) amend
        or otherwise modify the terms of any Convertible Securities or Options to
        a
        price per Share (such issuance, subscription or purchase price or amended
        or
        modified price being referred to as the "New
        Issuance Price")
        less
        than a price (the "Applicable
        Price")
        equal
        to the Conversion Price in effect immediately prior to such issue or sale
        or
        deemed issuance or sale (the foregoing a "Dilutive
        Issuance"),
        then
        immediately after such Dilutive Issuance, the Conversion Price then in effect
        shall be:

       

      (i) if
        such
        issuance occurs prior to the first anniversary hereof, adjusted to equal
        the New
        Issuance Price, and

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      (ii) if
        such
        issuance occurs on or after the first anniversary hereof, reduced to an amount
        equal to the product of (x) the Conversion Price in effect immediately
        prior to such Dilutive Issuance and (y) the quotient determined by dividing
        (1) the sum of (I) the product derived by multiplying the Conversion Price
        in effect immediately prior to such Dilutive Issuance and the number of shares
        of Common Stock Deemed Outstanding immediately prior to such Dilutive Issuance
        plus (II) the consideration, if any, received by the Company upon such
        Dilutive Issuance, by (2) the product derived by multiplying (I) the
        Conversion Price in effect immediately prior to such Dilutive Issuance by
        (II) the number of shares of Common Stock Deemed Outstanding immediately
        after such Dilutive Issuance. 

       

      (b) Certain
        Distributions to Holders of Shares.
        In case
        the Company shall at any time or from time to time, on or after the Subscription
        Date and prior to conversion of this Note, distribute to all holders of Shares
        (including any such distribution made in connection with a merger or
        consolidation in which the Company is the resulting or surviving Person and
        the
        Shares are not changed or exchanged) cash, evidences of indebtedness of the
        Company, any Subsidiary or another issuer, securities of the Company (including
        Convertible Securities), any Subsidiary or another issuer or other assets
        (excluding dividends payable in Shares for which adjustment is made under
        another paragraph of this Section 7 and any distribution in connection with
        the
        issuance of any Excluded Securities) or Options to subscribe for or purchase
        of
        any of the foregoing, then, and in each such case, the Conversion Price then
        in
        effect shall be adjusted (and any other appropriate actions shall be taken
        by
        the Company) by multiplying the Conversion Price in effect immediately prior
        to
        the date of such distribution by a fraction (x) the numerator of which shall
        be
        the Weighted Average Price of the Shares for the five (5) consecutive Trading
        Days immediately prior to the date of distribution less the then fair market
        value (as determined by the Company's Board of Directors in the exercise
        of
        their fiduciary duties with the concurrence of the Required Holders) of the
        portion of the cash, evidences of indebtedness, securities or other assets
        so
        distributed or of such Options to subscribe applicable to one Share and (y)
        the
        denominator of which shall be the Weighted Average Price of the Shares for
        the
        five (5) consecutive Trading Days immediately prior to the date of distribution
        (but such fraction shall not be greater than one). Such adjustment shall
        be made
        whenever any such distribution is made and shall become effective retroactively
        to a date immediately following the close of business on the record date
        for the
        determination of stockholders entitled to receive such
        distribution.

       

      (c) Dividends
        and Certain Other Events in Respect of the Shares.
        In the
        event that the Company shall at any time or from time to time, on or after
        the
        Subscription Date and prior to the conversion of this Note, (A) pay a dividend
        or make a distribution payable in Shares on any class of shares of capital
        stock
        of the Company, (B) subdivide its outstanding Shares into a greater number
        of
        shares, (C) combine its outstanding Shares into a smaller number of shares
        or
        (D) issue any shares of capital stock by reclassification of its Shares,
        the
        Conversion Price in effect at the opening of business on the day following
        the
        date fixed for the determination of stockholders entitled to receive such
        dividend or distribution or at the opening of business on the day following
        the
        day on which such subdivision, combination or reclassification becomes
        effective, as the case may be, shall be adjusted so that the holder of any
        Notes
        thereafter surrendered for conversion shall be entitled to receive the number
        of
        Shares that such holder would have owned or have been entitled to receive
        after
        the happening of any of the events described above had such Notes been converted
        immediately prior to the record date in the case of a dividend or distribution
        or the effective date in the case of a subdivision, combination or
        reclassification. An adjustment made pursuant to this Section 7(c) shall
        become
        effective immediately upon the opening of business on the day next following
        the
        record date (subject to Section 7(e) below) in the case of a dividend or
        distribution and shall become effective immediately upon the opening of business
        on the day next following the effective date in the case of a subdivision,
        combination or reclassification.

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      (d) [intentionally
        omitted.]

       

      (e) 
        Other
        Events.
        If any
        event occurs of the type contemplated by the provisions of this Section 7
        but
        not expressly provided for by such provisions (including, without limitation,
        the granting of stock appreciation rights, phantom stock rights or other
        rights
        with equity features), then the Company's Board of Directors will make an
        appropriate adjustment in the Conversion Price so as to protect the rights
        of
        the Holder under this Note; provided that no such adjustment will increase
        the
        Conversion Price as otherwise determined pursuant to this Section
        7.

       

      (8) COMPANY'S
        RIGHT OF OPTIONAL REDEMPTION.

       

      (a) Optional
        Redemption.
        If on
        any Trading Day on or after the second anniversary of the Issuance Date and
        prior to the Maturity Date, the Weighted Average Price of the Shares has
        equaled
        or exceeded 200% of the Conversion Price then in effect for each of 20
        consecutive Trading Days and provided that the applicable Eligible Market
        is not
        the Initial Principal Market and no Equity Conditions Failure then exists,
        the
        Company shall have the right to redeem all or any portion of the Conversion
        Amount then remaining under this Note (an "Optional
        Redemption").
        The
        portion of this Note subject to redemption pursuant to this Section 8 shall
        be
        redeemed by the Company in cash at a price equal to the sum of (i) the
        Principal being redeemed and (ii) the amount of any accrued and unpaid Late
        Charges on such Principal and any accrued and unpaid Interest through the
        date
        of redemption (the "Optional
        Redemption Price").
        The
        Company may exercise its redemption right under this Section 8 by delivering
        a
        written notice thereof by confirmed facsimile and overnight courier to all,
        but
        not less than all, of the holders of Notes and the Transfer Agent (the
        "Optional
        Redemption Notice"
        and the
        date such notice is delivered to all the holders is referred to as the
        "Optional
        Redemption Notice Date").
        The
        Optional Redemption Notice shall be irrevocable. The Optional Redemption
        Notice
        shall state (A) the date on which the Optional Redemption shall occur (the
        "Optional
        Redemption Date")
        which
        date shall be not less than 30 days nor more than 60 days after the Optional
        Redemption Notice Date, and (B) the aggregate principal amount (the
        "Optional
        Redemption Amount")
        of the
        Notes which the Company has elected to be subject to Optional Redemption
        from
        all of the holders of the Notes pursuant to this Section 8 (and analogous
        provisions under the Other Notes) on the Optional Redemption Date.
        Notwithstanding anything to the contrary in this Section 8, the Optional
        Redemption Amount shall not exceed 15% of the average daily trading volume
        of
        Shares for the 20 Trading Days immediately preceding the Optional Redemption
        Notice Date. The Company will make a public announcement containing the
        information set forth in the Optional Redemption Notice on or before the
        Optional Redemption Notice Date. The Company may not effect more than one
        Optional Redemption. Notwithstanding anything to the contrary in this Section
        8,
        until the Optional Redemption Price is paid in full, the Optional Redemption
        Amount may be converted, in whole or in part, by the Holders into Shares
        pursuant to Section 3. All Conversion Amounts converted by the Holder after
        the
        Optional Redemption Notice Date shall reduce the Conversion Amount of this
        Note required to be redeemed on the Optional Redemption Date. Redemptions
        made
        pursuant to this Section 8 shall be made in accordance with Section 12 to
        the
        extent applicable.

       

      
        
          
          

        

        
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      (b) Pro
        Rata Redemption Requirement.
        If the
        Company elects to cause an Optional Redemption pursuant to Section 8(a),
        then it
        must simultaneously take the same action in respect of the Other Notes. If
        the
        Company elects to cause an Optional Redemption pursuant to Section 8(a) (or
        similar provisions under the Other Notes) in respect of less than all of
        the
        principal amount of the Notes then outstanding, then the Company shall require
        redemption of a principal amount from the Holder and each holder of the Other
        Notes equal to the product of (i) the aggregate principal amount of Notes
        which
        the Company has elected to cause to be redeemed pursuant to Section 8(a),
        multiplied by (ii) the fraction, the numerator of which is the sum of the
        initial principal amount of Notes purchased by such holder and the denominator
        of which is the initial principal amounts of Notes purchased by all holders
        holding outstanding Notes (such fraction in respect of each holder is referred
        to as its "Redemption
        Allocation Percentage",
        and
        such amount in respect of each holder is referred to as its "Pro
        Rata Redemption Amount");
        provided that in the event that the initial holder of any Notes has sold
        or
        otherwise transferred any of such holder's Notes, the transferee shall be
        allocated a pro rata portion of such holder's Redemption Allocation Percentage
        and Pro Rata Redemption Amount. 

       

      (9) SECURITY.
        This
        Note and the Other Notes are secured to the extent and in the manner set
        forth
        in the Security Documents.

       

      (10) NONCIRCUMVENTION.
        The
        Company hereby covenants and agrees that the Company will not, by amendment
        of
        its Certificate of Incorporation, Bylaws or through any reorganization, transfer
        of assets, consolidation, merger, scheme of arrangement, dissolution, issue
        or
        sale of securities, or any other voluntary action, avoid or seek to avoid
        the
        observance or performance of any of the terms of this Note, and will at all
        times in good faith carry out all of the provisions of this Note and take
        all
        action as may be required to protect the rights of the Holder of this Note.
        

       

      (11) RESERVATION
        OF AUTHORIZED SHARES.

       

      (a) Reservation.
        For so
        long as any of the Notes are outstanding, the Company shall take all action
        necessary to reserve and keep available out of its authorized and unissued
        Shares, solely for the purpose of effecting the conversion of the Notes,
        125% of
        the number of Shares as shall from time to time be necessary to effect the
        conversion of all of the Notes then outstanding; provided that at no time
        shall
        the number of Shares so reserved be less than the number of shares required
        to
        be reserved by the previous sentence (without regard to any limitations on
        conversions) (the "Required
        Reserve Amount").
        The
        initial number of Shares reserved for conversions of the Notes and each increase
        in the number of shares so reserved shall be allocated pro rata among the
        holders of the Notes based on the principal amount of the Notes held by each
        holder at the Closing (as defined in the Securities Purchase Agreement) or
        increase in the number of reserved shares, as the case may be (the "Authorized
        Share Allocation").
        In
        the event that a holder shall sell or otherwise transfer any of such holder's
        Notes, each transferee shall be allocated a pro rata portion of such holder's
        Authorized Share Allocation. Any Shares reserved and allocated to any Person
        which ceases to hold any Notes shall be allocated to the remaining holders
        of
        Notes, pro rata based on the principal amount of the Notes then held by such
        holders.

       

      
        
          
          

        

        
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      (b) Insufficient
        Authorized Shares.
        If at
        any time while any of the Notes remain outstanding, the Company does not
        have a
        sufficient number of authorized and unreserved Shares to satisfy its obligation
        to reserve for issuance upon conversion of the Notes at least a number of
        Shares
        equal to the Required Reserve Amount (an "Authorized
        Share Failure"),
        then
        the Company shall immediately take all action necessary to increase the
        Company's authorized Shares to an amount sufficient to allow the Company
        to
        reserve the Required Reserve Amount for the Notes then outstanding. Without
        limiting the generality of the foregoing sentence, as soon as practicable
        after
        the date of the occurrence of an Authorized Share Failure, but in no event
        later
        than sixty (60) days after the occurrence of such Authorized Share Failure,
        the
        Company shall hold a meeting of its stockholders for the approval of an increase
        in the number of authorized Shares. In connection with such meeting, the
        Company
        shall provide each stockholder with a proxy statement and shall use its best
        efforts to solicit its stockholders' approval of such increase in authorized
        Shares and to cause its board of directors to recommend to the stockholders
        that
        they approve such proposal.

       

      (12) HOLDER'S
        REDEMPTIONS.

       

      (a) Mechanics.
        The
        Company shall deliver the applicable Event of Default Redemption Price to
        the
        Holder within five (5) Business Days after the Company's receipt of the Holder's
        Event of Default Redemption Notice; provided that if the Event(s) of Default
        giving rise to the redemption right shall have been cured or waived on or
        before
        the fifth (5th) Business Day after the Company's receipt of the Holder's
        Event
        of Default Redemption Notice, such redemption right shall terminate. If the
        Holder has submitted a Change of Control Redemption Notice in accordance
        with
        Section 5(b), the Company shall deliver the applicable Change of Control
        Redemption Price to the Holder concurrently with the consummation of such
        Change
        of Control if such notice is received prior to the consummation of such Change
        of Control and within five (5) Business Days after the Company's receipt
        of such
        notice otherwise. In the event of a redemption of less than all of the
        Conversion Amount of this Note, the Company shall promptly cause to be issued
        and delivered to the Holder a new Note (in accordance with Section 18(d))
        representing the outstanding Principal which has not been redeemed. In the
        event
        that the Company does not pay the applicable Redemption Price to the Holder
        within the time period required, at any time thereafter and until the Company
        pays such unpaid Redemption Price in full, the Holder shall have the option,
        in
        lieu of redemption, to require the Company to promptly return to the Holder
        all
        or any portion of this Note representing the Conversion Amount that was
        submitted for redemption and for which the applicable Redemption Price (together
        with any Late Charges thereon) has not been paid. Upon the Company's receipt
        of
        such notice, (x) the Redemption Notice shall be null and void in respect
        of such
        Conversion Amount, (y) the Company shall immediately return this Note, or
        issue
        a new Note (in accordance with Section 18(d)) to the Holder representing
        such
        Conversion Amount and (z) the Conversion Price of this Note or such new Notes
        shall be adjusted to the lesser of (A) the Conversion Price as in effect
        on the
        date on which the Redemption Notice is voided and (B) the lowest Closing
        Bid
        Price of the Shares during the period beginning on and including the date
        on
        which the Redemption Notice is delivered to the Company and ending on and
        including the date on which the Redemption Notice is voided. The Holder's
        delivery of a notice voiding a Redemption Notice and exercise of its rights
        following such notice shall not affect the Company's obligations to make
        any
        payments of Late Charges which have accrued prior to the date of such notice
        in
        respect of the Conversion Amount subject to such notice.

       

      
        
          
          

        

        
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      (b) Redemption
        by Other Holders.
        Upon
        the Company's receipt of notice from any of the holders of the Other Notes
        for
        redemption or repayment as a result of an event or occurrence substantially
        similar to the events or occurrences described in Section 4(b) (each, an
        "Other
        Redemption Notice"),
        the
        Company shall immediately, but no later than one (1) Business Day after its
        receipt thereof, forward to the Holder by facsimile a copy of such notice.
        If
        the Company receives a Redemption Notice and one or more Other Redemption
        Notices, during the seven (7) Business Day period beginning on and including
        the
        date which is three (3) Business Days prior to the Company's receipt of the
        Holder's Redemption Notice and ending on and including the date which is
        three
        (3) Business Days after the Company's receipt of the Holder's Redemption
        Notice
        and the Company is unable to redeem all principal, interest and other amounts
        designated in such Redemption Notice and such Other Redemption Notices received
        during such seven (7) Business Day period, then the Company shall redeem
        a pro
        rata amount from each holder of the Notes (including the Holder) based on
        the
        principal amount of the Notes submitted for redemption pursuant to such
        Redemption Notice and such Other Redemption Notices received by the Company
        during such seven Business Day period.

       

      (13) VOTING
        RIGHTS.
        The
        Holder shall have no voting rights as the holder of this Note, except as
        required by law, including, but not limited to, the laws of the Cayman Islands
        and as expressly provided in this Note.

       

      (14) COVENANTS.
        

       

      (a) Rank. All
        payments due under this Note (i) shall rank (A) pari
        passu
        with all
        Other Notes, (B) senior to the Subordinated Indebtedness, all Indebtedness
        not
        constituting Permitted Indebtedness and all Permitted Indebtedness expressly
        designated as ranking junior to the Notes, and (C) pari
        passu
        with all
        other Permitted Indebtedness and (ii) shall be secured by a security interest
        in
        substantially all of the shares of capital stock of each of the Guarantors,
        and
        as otherwise provided in the Pledge Agreement and such security interests
        shall
        rank pari
        passu
        with the
        security interests securing the Indebtedness under the Other Notes.
        Notwithstanding the foregoing, if Company shall have received notice of the
        existence of any Lien, the existence or priority of which is in violation
        of the
        first sentence of this Section 14(a), Company shall have ten (10) days after
        the
        receipt of such notice to remove such Lien (or obtain the agreement of the
        holder of such Lien that such Lien ranks in priority in accordance with the
        first sentence of this Section 14(a)).

       

      
        
          
          

        

        
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      (b) Incurrence
        of Indebtedness.
        Until
        this Note has been converted, redeemed or otherwise satisfied in accordance
        with
        its terms (other than in respect of contingent indemnification obligations
        in
        respect of which no claim has been asserted), the Company shall not, and
        the
        Company shall not permit any of its Subsidiaries to, directly or indirectly,
        incur or guarantee, assume or suffer to exist any Indebtedness, other than
        (i)
        the Indebtedness evidenced by this Note and the Other Notes and (ii) Permitted
        Indebtedness; provided, that prior to the incurrence of such Permitted
        Indebtedness, the Company or such Subsidiary, as applicable, shall deliver
        to
        the Collateral Agent a certificate setting out the basis of the calculation
        of
        the amount of Permitted Indebtedness, together with the opinion of an
        independent expert as to any production capacity assumptions used in such
        calculation.

       

      (c) Existence
        of Liens.
        Until
        this Note has been converted, redeemed or otherwise satisfied in accordance
        with
        its terms (other than in respect of contingent indemnification obligations
        in
        respect of which no claim has been asserted), the Company shall not, and
        the
        Company shall not permit any of its Subsidiaries to, create,
        incur, assume or suffer to exist any Lien upon or in respect of any of its
        properties, whether now owned or hereafter acquired; file or suffer to exist
        under the Uniform Commercial Code or any similar law or statute of any
        jurisdiction, a financing statement (or the equivalent thereof) that names
        it or
        any of its Subsidiaries as debtor; sign or suffer to exist any security
        agreement authorizing any secured party thereunder to file such financing
        statement (or the equivalent thereof); sell any of its property or assets
        subject to an understanding or agreement, contingent or otherwise, to repurchase
        such property or assets (including sales of accounts) with recourse to it
        or any
        of its Subsidiaries or assign or otherwise transfer, or permit any of its
        Subsidiaries to assign or otherwise transfer, any account or other right
        to
        receive income; other than, as to all of the above, Permitted Liens.
        Notwithstanding the foregoing, if Company shall have received notice of the
        existence of any Lien, the existence of which is in violation of the first
        sentence of this Section 14(c), Company shall have ten (10) days after the
        receipt of such notice to effect the removal of such Lien.

       

      (d) Restricted
        Payments.
        The
        Company shall not, and the Company shall not permit any of its Subsidiaries
        to,
        directly or indirectly, redeem, defease, repurchase, repay or make any payments
        in respect of, by the payment of cash or cash equivalents (in whole or in
        part,
        whether by way of open market purchases, tender offers, private transactions
        or
        otherwise), all or any portion of any Indebtedness (other than Indebtedness
        evidenced by the Other Notes or Permitted Indebtedness (other than the Permitted
        Indebtedness referenced in clauses (vi) and (xii) thereof and any other
        Subordinated Indebtedness), the payment of which shall not be restricted
        by the
        provisions of this Note, the Security Documents, the Warrant, the Securities
        Purchase Agreement or the Registration Rights Agreement), whether by way
        of
        payment in respect of principal of (or premium, if any) or interest on such
        Indebtedness, if at the time such payment is due or is otherwise made, or,
        after
        giving effect to such payment, an event constituting, or that with the passage
        of time and without being cured would constitute, an Event of Default has
        occurred or would occur and is, or would be, continuing; provided that
        notwithstanding the foregoing, no principal (or any portion thereof) of any
        Subordinated Indebtedness may be paid (whether upon maturity, redemption,
        acceleration or otherwise) so long as this Note is outstanding and for at
        least
        91 days thereafter.

       

      
        
          
          

        

        
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      (e) Restriction
        on Redemption and Cash Dividends.
        Until
        this Note has been converted, redeemed or otherwise satisfied in accordance
        with
        its terms (other than in respect of contingent indemnification obligations
        in
        respect of which no claim has been asserted), the Company shall not, nor
        permit
        any of its Subsidiaries to, directly or indirectly, 

       

      (i) Declare
        or pay any dividend or other distribution, or permit any Subsidiary to declare
        or pay any dividend or other distribution, in each case directly or indirectly,
        on account of any equity of the Company or any Subsidiary, except: 

       

      (A) any
        Subsidiary of the Company may pay dividends or make other distributions to
        the
        Company or any Subsidiary;

       

      (B) the
        Company or any Subsidiary may pay dividends in the form of common stock or
        preference stock otherwise permitted to be issued hereunder (but in no event
        in
        the form of preference stock requiring redeemption prior to the Maturity
        Date);

       

      (C) the
        Company or any Subsidiary may pay cash dividends on any preference stock
        included within the limits for Subordinated Indebtedness in the definition
        of
        Permitted Indebtedness below;

       

      (D) dividends
        paid by the Company’s Brazilian Subsidiaries to their Brazilian officers by way
        of compensation up to an aggregate of $2,575,000 annually; or

       

      (ii) Make
        any
        repurchase, redemption (other than redemption of the Notes in accordance
        with
        the terms hereof), retirement, defeasance, sinking fund or similar payment,
        purchase or other acquisition for value, direct or indirect, of any equity
        of
        the Company or any Guarantor or any direct or indirect parent of the Company
        or
        any Guarantor, now or hereafter outstanding or make any payment to retire,
        or to
        obtain the surrender of, any outstanding warrants, options or other rights
        for
        the purchase or acquisition of shares of any class of equity of the Company
        or
        any Guarantor, now or hereafter outstanding, except the Company and the
        Guarantors may repurchase common stock held by employees, officers, and/or
        directors pursuant to any Approved Stock Plan upon the termination, retirement
        or death of any such employee, officer, and/or director in accordance with
        the
        provisions of such plan or pursuant to any incentive bonus plans pursuant
        to the
        terms thereof, provided that, as to any such repurchase, each of the following
        conditions is satisfied: (A) as of the date of the payment for such repurchase
        and after giving effect thereto on a pro forma basis, no Event of Default
        shall
        exist or have occurred and be continuing, (B) such repurchase shall be paid
        with
        funds legally available therefor, (C) such repurchase shall not violate any
        law
        or regulation or the terms of any indenture, agreement or undertaking to
        which
        the Company or any Guarantor is a party or by which the Company or such
        Guarantor or its or their property are bound, and (D) the aggregate amount
        of
        all payments for such repurchases in any calendar year shall not exceed
        $2,000,000; 

       

      
        
          
          

        

        
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      (iii) Return
        any equity to any shareholders or other equity holders of the Company or
        any of
        its Subsidiaries, or make any other distribution of property, assets, equity,
        warrants, rights, options, obligations or securities thereto as such (other
        than
        as permitted hereunder or, in the case of such distribution of property or
        assets, to the extent not otherwise prohibited hereunder); 

       

      (iv) Pay
        any
        management fees or any other fees or expenses (including the reimbursement
        thereof by the Company or any Guarantor) pursuant to any management, consulting
        or other services agreement to any of the shareholders or other equity holders
        of the Company or any Guarantor or other Affiliates except any such management
        fees or any other fees or expenses (w) paid to the Company or any Guarantor
        (whether paid by the Company, any Guarantor or any other Subsidiary or Affiliate
        of the Company), (x) pursuant to any Immediate Acquisition Documents (as
        in
        effect on the date hereof), (y) payments to Greenwich Administrative Services
        LLC pursuant to the Administrative Services and Personnel Reimbursement
        Agreement, dated as of June 19, 2006, by and between Comanche Clean Energy,
        LLC
        and Greenwich Administrative Services, LLC (as in effect on the date hereof);
        and/or (z) paid by a Subsidiary that is not the Company or a Guarantor to
        a
        Subsidiary that is not the Company or a Guarantor; or

       

      (v) Directly
        or indirectly make or commit to make any optional prepayment of, or otherwise
        repurchase any Indebtedness that is subordinated in right of payment to the
        Notes, including without limitation, any Subordinated Indebtedness.

       

      (f) Merger
        and Acquisition Activities.
        Until
        this Note has been converted, redeemed or otherwise satisfied in accordance
        with
        its terms (other than with respect to contingent indemnification obligations
        in
        respect of which no claim has been asserted), the Company shall not and shall
        not cause or permit any of its Subsidiaries to merge into or with or consolidate
        with any other Person or permit any other Person to merge into or with or
        consolidate with it or wind up, liquidate or dissolve, or permit any Subsidiary
        to do any of the foregoing, except that, subject to compliance with Section
        5
        hereof, (w) the Company or any Guarantor may merge with and into or consolidate
        with the Company or any Guarantor and any subsidiary not a Guarantor may
        merge
        with or consolidate any other such Subsidiary, provided that each of the
        following conditions is satisfied: (A) the Collateral Agent shall have received
        not less than ten (10) Business Days’ prior written notice of the intention of
        the Company or such Subsidiary to so merge or consolidate, which notice shall
        set forth in reasonable detail satisfactory to the Collateral Agent, the
        Persons
        that are merging or consolidating, which person will be the surviving entity,
        the locations of the assets of the Persons that are merging or consolidating,
        and the material agreements and documents relating to such merger or
        consolidation, (B) the Collateral Agent shall have received such other
        information with respect to such merger or consolidation as the Collateral
        Agent
        may reasonably request, (C) the rights of the Collateral Agent and any Holder
        in
        any Collateral, including, but not limited to, the existence, perfection
        and
        priority of any Lien thereon, are not adversely affected by such merger or
        consolidation, (D) as of the effective date of the merger or consolidation
        and
        after giving effect thereto, no Default or Event of Default shall exist or
        have
        occurred and be continuing, (E) upon the Collateral Agent’s request, the
        surviving entity, in the case of the Company or a Guarantor, shall expressly
        confirm, ratify and assume the obligations under this Note, the Other Notes
        and
        the Security Documents in writing, in form and substance satisfactory to
        the
        Collateral Agent, and (F) the Collateral Agent, in the case of the Company
        or a
        Guarantor, shall have received, true, correct and complete copies of all
        agreements, documents and instruments relating to such merger or consolidation,
        including, but not limited to, the certificate or certificates of merger
        to be
        filed with each appropriate Secretary of State or equivalent Governmental
        Authority in the applicable jurisdiction (with a copy as filed promptly after
        such filing), or (x) any Subsidiary other than a Guarantor may merge with
        and
        into or consolidate with another Person pursuant to a Permitted
        Acquisition.

       

      
        
          
          

        

        
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      (g) Reporting
        Requirements.
        Unless
        the same is available on EDGAR prior to or on the applicable due date set
        forth
        herein, until this Note has been converted, redeemed or otherwise satisfied
        in
        accordance with its terms (other than in respect of contingent indemnification
        obligations in respect of which no claim has been asserted), the Company
        shall,
        upon request by the Holder, furnish to the Holder: 

       

      (i) within
        sixty (60) days (or forty-five (45) days if the Company shall have ceased
        to be
        as a “Foreign Private Issuer” as defined under Rule 3b-4 promulgated under the
        Exchange Act during the applicable reporting period) after the end of each
        fiscal quarter of the Company and its Subsidiaries (a)
        commencing with the first quarter of the Company and its Subsidiaries ending
        after the Effective Date (as defined in the Registration Rights Agreement),
        consolidated and consolidating balance sheets, consolidated and consolidating
        statements of operations and retained earnings and consolidated and
        consolidating statements of cash flows of the Company and its Subsidiaries
        as at
        the end of such quarter, and (B) on and after the end of the first twelve
        (12)
        months of the Company and its Subsidiaries ending after the Issuance Date,
        for
        the period commencing at the end of the immediately preceding Fiscal Year
        and
        ending with the end of such quarter, setting forth in each case in comparative
        form the figures for the corresponding date or period of the immediately
        preceding Fiscal Year setting forth in comparative form any projections with
        respect thereto, in each case all in reasonable detail and certified by an
        authorized officer of the Company as fairly presenting, in all material
        respects, the financial position of the Company and its Subsidiaries on a
        consolidated basis as of the end of such quarter and the results of operations
        and cash flows of the Company and its Subsidiaries on a consolidated basis
        for
        such quarter, in accordance with GAAP applied in a manner consistent with
        that
        of the most recent audited financial statements of the Company and its
        Subsidiaries furnished to the Holder, subject to the absence of footnotes
        and
        normal year-end adjustments;

       

      (ii) within
        one hundred twenty (120) days (or ninety (90) days if the Company shall have
        ceased to be as a “Foreign Private Issuer” as defined under Rule 3b-4
        promulgated under the Exchange Act during the applicable reporting period)
        after
        the end of each Fiscal Year of the Company and its Subsidiaries, consolidated
        and consolidating balance sheets, consolidated and consolidating statements
        of
        operations and retained earnings and consolidated and consolidating statements
        of cash flows of the Company and its Subsidiaries as at the end of such Fiscal
        Year, and on and after the end of the first Fiscal Year of the Company and
        its
        Subsidiaries ending after the Issuance Date, setting forth in each case in
        comparative form the corresponding figures for the immediately preceding
        Fiscal
        Year and for any projections with respect thereto previously provided to
        the
        Holder, all in reasonable detail and prepared in accordance with GAAP, and
        accompanied by a report and an unqualified opinion, prepared in accordance
        with
        generally accepted auditing standards, of independent certified public
        accountants of nationally recognized standing selected by the Company (which
        opinion shall be without (A) a "going concern" or like qualification or
        exception, (B) any qualification or exception as to the scope of such audit,
        or
        (C) any qualification which relates to the treatment or classification of
        any
        item and which, as a condition to the removal of such qualification, would
        require an adjustment to such item, the effect of which would be to cause
        any
        noncompliance with the provisions of Section 14(l);

       

      
        
          
          

        

        
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      (iii) simultaneously
        with the delivery of the financial statements of the Company and its
        Subsidiaries required by clauses (i) and (ii) of this Section 14(g), a
        certificate of an authorized officer of the Company (A) stating that such
        authorized officer has reviewed the provisions of the Notes and has made
        or
        caused to be made under his or her supervision a review of the condition
        and
        operations of the Company and its Subsidiaries during the period covered
        by such
        financial statements with a view to determining whether the Company and its
        Subsidiaries were in compliance with all of the provisions of the Notes at
        the
        times such compliance is required hereby and thereby, and that such review
        has
        not disclosed, and such authorized officer has no knowledge of, the existence
        during such period of an Event of Default or, if an Event of Default existed,
        describing the nature and period of existence thereof and the action which
        the
        Company and its Subsidiaries propose to take or have taken with respect thereto
        and (B) attaching a schedule showing the calculations of the financial covenants
        set forth in Section 14(l);

       

      (iv) [intentionally
        omitted];

       

      (v) promptly
        after submission to any Governmental Authority, all documents and information
        furnished to such Governmental Authority in connection with any investigation
        of
        the Company or any Guarantor other than routine inquiries by such Governmental
        Authority;

       

      (vi) as
        soon
        as possible, and in any event within three (3) Business Days after, in either
        case, Company and/or Guarantor(s) obtain knowledge of any Default, the
        occurrence of any Event of Default or the occurrence of any event or development
        that could reasonably be expected to have a Material Adverse Effect, the
        written
        statement of an authorized officer of the Company setting forth the details
        of
        such Default, Event of Default or other event or development that could
        reasonably be expected to have a Material Adverse Effect and the action which
        the Company or any of its Subsidiaries proposes to take in respect
        thereof;

       

      (vii) promptly
        after the commencement thereof but in any event not later than five (5) Business
        Days after service of process in respect thereof on, or the obtaining of
        knowledge thereof by, the Company, notice of each action, suit or proceeding
        before any court or other Governmental Authority or other regulatory body
        or any
        arbitrator which, if adversely determined, could reasonably be expected to
        have
        a Material Adverse Effect;

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      (viii) [intentionally
        omitted];

       

      (ix) promptly
        after the sending or filing thereof, copies of all statements, reports and
        other
        material information the Company or any Subsidiary sends to or files with
        any
        national (domestic or foreign) securities exchange;

       

      (x) promptly
        upon receipt thereof, copies of all financial reports (including, without
        limitation, management letters), if any, submitted to the Company or any
        Guarantor by its auditors in connection with any annual or interim audit
        of the
        books thereof; and

       

      (xi) promptly
        upon request, such other information concerning the condition or operations,
        financial or otherwise, of the Company or any Guarantor as the Holder may
        from
        time to time reasonably request.

       

      (h) Preservation
        of Existence, Etc.
        Until
        this Note has been converted, redeemed or otherwise satisfied in accordance
        with
        its terms (other than in respect of contingent indemnification obligations
        in
        respect of which no claim has been asserted), the Company shall maintain
        and
        preserve, and cause each of its Subsidiaries to maintain and preserve, its
        existence, rights and privileges, and become or remain, and cause each of
        its
        Subsidiaries to become or remain, duly qualified and in good standing in
        each
        jurisdiction in which the character of the properties owned or leased by
        it or
        in which the transaction of its business makes such qualification necessary,
        where the failure to qualify or be in good standing could reasonably be expected
        to have a Material Adverse Effect. Notwithstanding anything to the contrary
        set
        forth in this Note, without the consent of any Holder, a Subsidiary may be
        dissolved by merger into a Guarantor or the Company, or, if not a Guarantor,
        dissolved; provided that all assets, in the case of a Guarantor, thereof
        shall
        theretofore have been transferred to the Company and/or one or more other
        Guarantors. 

       

      (i) Keeping
        of Records and Books of Account.
        Until
        this Note has been converted, redeemed or otherwise satisfied in accordance
        with
        its terms (other than in respect of contingent indemnification obligations
        in
        respect of which no claim has been asserted), the Company shall keep, and
        cause
        each of its Subsidiaries to keep, adequate records and books of account,
        with
        complete entries made to permit the preparation of financial statements in
        accordance with GAAP.

       

      (j) Fiscal
        Year.
        Until
        this Note has been converted, redeemed or otherwise satisfied in accordance
        with
        its terms (other than in respect of contingent indemnification obligations
        in
        respect of which no claim has been asserted), the Company shall cause the
        Fiscal
        Year of the Company and its Subsidiaries to end on or about November 30 or
        December 31 of each calendar year.

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

      (k) Filing
        with the SEC.
        The
        Company shall file a resale registration statement on Form F-1 in accordance
        with the Registration Rights Agreement.

       

      (l) Financial
        Covenants.
        Until
        this Note has been converted, redeemed or otherwise satisfied in accordance
        with
        its terms (other than in respect of contingent indemnification obligations
        in
        respect of which no claim has been asserted), neither the Company nor any
        of the
        Guarantors shall, unless the Required Holders shall otherwise consent in
        writing: 

       

      (i) Total
        Leverage Ratio.
        Permit
        the ratio of (A) the Indebtedness described in clause (iii), and in the proviso
        to clause (ii), of the definition of Permitted Indebtedness less cash and
        Cash
        Equivalents to (B) Consolidated EBITDA of the Company and its Subsidiaries
        for
        the twelve (12) consecutive months determined on a rolling basis with a new
        12-month period beginning on the first day of each calendar month to be greater
        than 2.0, provided that in the calculation of such ratio for the first twelve
        month period following the Closing, the Consolidated EBITDA of the Company
        and
        its Subsidiaries shall be equal to the higher of the actual such Consolidated
        EBITDA measured from and after the closing date, or $7,500,000; and

       

      (ii) Fixed
        Charge Coverage Ratio.
        Permit
        the Fixed Charge Coverage Ratio of the Company and its Subsidiaries for the
        twelve (12) consecutive months determined on a rolling basis with a new 12-month
        period beginning on the first day of each calendar month to be less than
        1.0,
        such ratio being the ratio of: (A) the sum of Consolidated EBITDA of the
        Company
        and its Subsidiaries for such period plus Reserved Cash; to (B) the sum of
        (i)
        net interest on outstanding Indebtedness, (ii) scheduled amortization of
        outstanding Indebtedness, (iii) taxes, (iv) dividends on any Equity Interest
        and
        (v) consolidated capital expenditures not funded with Permitted Indebtedness
        and/or Equity Interests, all calculated according to GAAP, provided that
        in the
        calculation of such ratio for the first twelve month period following the
        Closing, the Consolidated EBITDA of the Company and its Subsidiaries shall
        be
        equal to the higher of the actual such Consolidated EBITDA measured from
        and
        after the closing date, or $7,500,000;

       

      (m) Dispositions.
        Until
        this Note has been converted, redeemed or otherwise satisfied in accordance
        with
        its terms (other than in respect of contingent indemnification obligations
        in
        respect of which no claim has been asserted), neither the Company nor any
        Guarantor shall, directly or indirectly make any Disposition or enter into
        any
        agreement to make any Disposition, except:

       

      (i) the
        sale
        by the Company or any Subsidiary of any inventory in the ordinary course
        of
        business;

       

      (ii) the
        sale
        or other disposition by the Company or any Subsidiary of (a) obsolete or
        discontinued inventory, and the sale or other disposition by the Company
        or any
        Subsidiary of obsolete, unnecessary or worn-out equipment, in each case,
        in the
        ordinary course of business, whether now owned or hereafter acquired, provided
        that the aggregate amount of any such assets sold in any Fiscal Year shall
        not
        exceed $2,000,000, and (b) equipment which is replaced with equipment having
        greater efficiency or providing better safety or environmental results, or
        (c)
        Clean Fuel Assets the production capacity of which is replaced by other Clean
        Fuel Assets in a Permitted Acquisition initiated not later than six months
        following the disposition.

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

      (iii) in
        addition to the other sales permitted under this Section 14(m), the sale
        or
        other disposition of Agricultural Land, provided that such disposition does
        not
        impair the ability of the Company or its Subsidiaries to have sufficient
        feedstock to satisfy the production capacity of their respective Industrial
        Projects;

       

      (iv) the
        sale,
        assignment, lease or sublease, license or other disposition of property by
        the
        Company or any Subsidiary to the Company or any Guarantor or by any Subsidiary
        not a Guarantor to any other such Subsidiary;

       

      (v) any
        disposition pursuant to under Section 14(f) hereof;

       

      (vi) the
        non-exclusive license of Intellectual Property (as defined in the Securities
        Purchase Agreement) rights (including, without limitation, licenses) granted
        to
        a customer of the Company or any Subsidiary in the ordinary course of business,
        substantially consistent with past practice and not interfering in any material
        respect with the conduct of the business of the Company or any
        Subsidiary;

       

      (vii) any
        lease
        or sub-lease of Real Property to any Person other than the Company or a
        Guarantor on terms and subject to conditions consistent with the market in
        respect of such lease or sub-lease at such time;

       

      (viii) [intentionally
        omitted]; 

       

      (ix) [intentionally
        omitted];

       

      (x) any
        Permitted Lien; 

       

      (xi) [intentionally
        omitted]; 

       

      (xii) the
        transfer of funds as a payment on Indebtedness or other obligations owing
        by or
        to the Company and/or any Subsidiary to the extent not otherwise prohibited
        hereunder;

       

      (xiii) investments
        and capital contributions in or to the Company and/or any of its Subsidiaries
        to
        the extent not prohibited hereunder;

       

      (xiv) Subject
        to the prior approval of the Required Holders:

       

      (A) Disposition
        of non-strategic business assets not otherwise permitted under this Section
        14(m); or

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

      (B) Dispositions
        by the Company and its Subsidiaries not otherwise permitted under this Section
        14(m). 

       

      (n) Federal
        Reserve Regulations.
        Until
        this Note has been converted, redeemed or otherwise satisfied in accordance
        with
        its terms (other than in respect of contingent indemnification obligations
        in
        respect of which no claim has been asserted), neither the Company nor any
        of its
        Subsidiaries shall permit any of the Indebtedness under or the proceeds of
        this
        Note to be used for any purpose that would cause such Indebtedness to be
        a
        margin loan under the provisions of Regulation T, U or X of the Federal Reserve
        Board 

       

      (o) Investment
        Company Act of 1940.
        Until
        this Note has been converted, redeemed or otherwise satisfied in accordance
        with
        its terms (other than in respect of contingent indemnification obligations
        in
        respect of which no claim has been asserted), neither the Company nor any
        of its
        Subsidiaries shall engage in any business, enter into any transaction, use
        any
        securities or take any other action, or permit any of its Subsidiaries to
        do any
        of the foregoing, that would cause it to become subject to the registration
        requirements of the Investment Company Act of 1940, as amended, by virtue
        of
        being an "investment company" or a company "controlled" by an "investment
        company" not entitled to an exemption within the meaning of such
        Act.

       

      (p) [intentionally
        omitted].

       

      (q) Amendment
        to Acquisition Documents.
        Until
        this Note has been converted, redeemed or otherwise satisfied in accordance
        with
        its terms (other than in respect of contingent indemnification obligations
        in
        respect of which no claim has been asserted), neither the Company nor any
        of its
        Subsidiaries shall amend, modify, change, agree to any amendment, modification
        or other change to (or make any payment consistent with any amendment or
        other
        change to) or waive any of its rights under any of the Acquisition Documents
        in
        a manner that would result in a Material Adverse Effect.

       

      (r) No
        Violation of Anti-Terrorism Laws.
        Until
        this Note has been converted, redeemed or otherwise satisfied in accordance
        with
        its terms (other than in respect of contingent indemnification obligations
        in
        respect of which no claim has been asserted), the Company and Guarantors
        shall
        not, and shall not permit any Subsidiary to: (i) violate any of the prohibitions
        set forth in the Anti-Terrorism Laws applicable to any of them or the business
        that they conduct, (ii) require the Collateral Agent or Holders to take any
        action that would cause the Collateral Agent or Holders to be in violation
        of
        the prohibitions set forth in the Anti-Terrorism Laws, it being understood
        that
        the Collateral Agent or any Holder can refuse to honor any such request or
        demand otherwise validly made by a the Company under this Note, (iii) knowingly
        conduct any business or engage in making or receiving any contribution of
        funds,
        goods or services to or for the benefit of any Designated Person or any other
        Person identified in any List, (iv) knowingly deal in, or otherwise engage
        in
        any transaction relating to, any property or interests in property blocked
        pursuant to any Anti-Terrorism Law, (v) repay the Notes with any funds derived
        from any unlawful activity with the result that the making of the Notes would
        be
        in violation of law, or (vi) knowingly engage in or conspire to engage in
        any
        transaction that evades or avoids, or has the purpose of evading or avoiding,
        or
        attempts to violate, any of the prohibitions set forth in any Anti-Terrorism
        Law
        (and the Company shall deliver to the Holder any certification or other evidence
        requested from time to time by the Holder in its reasonable discretion,
        confirming compliance with this Section 14(r)).

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

       

      (s) Type
        of Business.
        Until
        this Note has been converted, redeemed or otherwise satisfied in accordance
        with
        its terms (other than in respect of contingent indemnification obligations
        in
        respect of which no claim has been asserted), the Company shall not, and
        shall
        not permit any of its Subsidiaries to, engage in any business, other than
        the
        businesses of the Company, the Guarantors and/or such Subsidiary on the Closing
        Date and any business reasonably related, similar, ancillary or complementary
        to
        the business in which the Company, the Guarantors or the Subsidiaries of
        the
        Company or the Guarantors are engaged on the Closing Date;

       

      (t) Loans,
        Advances and Investments.
        Until
        this Note has been converted, redeemed or otherwise satisfied in accordance
        with
        its terms (other than in respect of contingent indemnification obligations
        in
        respect of which no claim has been asserted), the Company shall not, and
        shall
        not permit any of its Subsidiaries to, make, directly or indirectly, any
        loans
        or advance money or property to any person, or invest in (by capital
        contribution, dividend or otherwise) or purchase or repurchase the Equity
        Interest or Indebtedness or all or a substantial part of the assets or property
        of any person, or form or acquire any Subsidiaries, or agree to do any of
        the
        foregoing, or permit any Subsidiary to do any of the foregoing,
        except:

       

      (i) the
        Acquisitions contemplated by the Acquisition Documents;

       

      (ii) [intentionally
        omitted];

       

      (iii) any
        investment in cash or Cash Equivalents;

       

      (iv) loans,
        capital contributions or other investments by the Company or any Subsidiary
        to
        the Company or any Guarantor or by any Subsidiary not a Guarantor to any
        other
        such Subsidiary; provided that, as of the date of any such loan, capital
        contribution or other investment and after giving effect thereto, the Company
        or
        Guarantor making such loan, capital contribution or other investment shall
        be
        Solvent;

       

      (v) [intentionally
        omitted];

       

      (vi) Permitted
        Acquisitions and loans, capital contributions or other investments by the
        Company or any Subsidiary to the Company or any Subsidiary in order to carry
        out
        any Permitted Acquisitions; and

       

      (vii) dividends,
        redemptions, repurchases and other distributions permitted
        hereunder.

       

      (u) Transactions
        with Affiliates.
        Until
        this Note has been converted, redeemed or otherwise satisfied in accordance
        with
        its terms (other than in respect of contingent indemnification obligations
        in
        respect of which no claim has been asserted), the Company shall not, and
        shall
        not permit any of its Subsidiaries to, enter into, renew, extend or be a
        party
        to, any transaction or series of related transactions (including, without
        limitation, the purchase, sale, lease, transfer or exchange of property or
        assets of any kind or the rendering of services of any kind) with any Affiliate
        (other than pursuant to any Acquisition Agreement), except:

       

      (i) to
        the
        extent necessary or desirable for the prudent operation of its business and
        for
        fair consideration and on terms no less favorable to it than would be obtainable
        in a comparable arm's length transaction with a Person that is not an Affiliate
        thereof; provided that, (A) if each party to such transaction is the Company
        or
        a Guarantor, then the consideration and terms may be less favorable to one
        of
        them to the extent it is more favorable to the other, provided that such
        other
        entity is Solvent (as defined in the Securities Purchase Agreement) at the
        time
        of the transaction or (B) if a party to such transaction is the Company or
        a
        Guarantor and the other is a Subsidiary or Affiliate that is not the Company
        or
        a Guarantor, the consideration and terms may be less favorable to such
        Subsidiary or Affiliate;

      
         

        
          
            
            

          

          
            29

            
              

            

          

          
            
            

          

        

         

      

      (ii) transactions
        expressly permitted by Sections 14(d), 14(e) (other than clause (i)(B) thereof
        unless, with respect to transactions among Affiliates, the conditions set
        forth
        in Section 14(u)(i) are satisfied), 14(f) (other than clause (y) thereof
        unless,
        with respect to transactions among Affiliates, the conditions set forth in
        Section 14(u)(i) are satisfied), 14(m) and 14(t); or

       

      (iii) loans
        existing on the date hereof set forth on Schedule
        14(u)
        hereto,
        but not any increase in the principal amount thereof as set forth in such
        Schedule or any other modification of the terms thereof.

       

      (v) Environmental.
        Until
        this Note has been converted, redeemed or otherwise satisfied in accordance
        with
        its terms (other than in respect of contingent indemnification obligations
        in
        respect of which no claim has been asserted), the Company shall not, and
        shall
        not permit any of its Subsidiaries to, permit the use, handling, generation,
        storage, treatment, release or disposal of Hazardous Materials (as defined
        in
        the Securities Purchase Agreement) at any property owned or leased by it
        or any
        of its Subsidiaries, except in compliance with Environmental Laws (as defined
        in
        the Securities Purchase Agreement), so long as such use, handling, generation,
        storage, treatment, release or disposal of Hazardous Materials could not
        reasonably be expected to result in Material Adverse Effect.

       

      (w) Further
        Assurances.
        Until
        this Note has been converted, redeemed or otherwise satisfied in accordance
        with
        its terms (other than in respect of contingent indemnification obligations
        in
        respect of which no claim has been asserted), 

       

      (i) the
        Company shall, and shall cause each Guarantor not in existence on the Closing
        Date to execute and deliver to the Collateral Agent, each in form and substance
        satisfactory to the Collateral Agent, promptly and in any event within ten
        (10)
        days after the formation, acquisition or change in status thereof (A) a Guaranty
        guaranteeing the obligations under the Notes and (B) such other documents
        or
        instruments (including opinions of counsel) as the Collateral Agent may
        reasonably request to confirm the validity of the forgoing; and 

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

       

      (ii) The
        Company shall, or shall cause each owner of the Equity Interests of any such
        Guarantor (except for any owner who is an officer or employee of such Guarantor
        with respect to equity interests granted pursuant to employment agreements
        which
        in the aggregate of all equity interests held by such officers or employees
        shall not exceed 1% of any Guarantor’s equity) to, execute and deliver promptly
        and in any event within three (3) days after the formation or acquisition
        of
        such Guarantor after the date hereof, a Pledge Agreement, together with (A)
        if
        certificated, certificates evidencing (1) all of the Equity Interests of
        any
        such Guarantor owned by such owner (except for the equity interest excepted
        above), (B) undated stock powers or other appropriate instruments of assignment
        executed in blank with signature guaranteed, (C) such opinion of counsel
        as the
        Collateral Agent may reasonably request and (D) such other agreements,
        instruments, approvals, legal opinions or other documents as the Collateral
        Agent may reasonably request.

       

      (x) Compliance
        with Laws.
        Until
        this Note has been converted, redeemed or otherwise satisfied in accordance
        with
        its terms (other than in respect of contingent indemnification obligations
        in
        respect of which no claim has been asserted), the Company shall comply, and
        cause each of its Subsidiaries to comply, with all applicable laws, rules,
        regulations, judgments and orders (including, without limitation, all
        Environmental Laws) in each case material to the conduct of its business
        and
        operations, except where the failure to so comply could not reasonably be
        expected to have a Material Adverse Effect.

       

      (15) PARTICIPATION.
        

       

      (a) Dividends
        and Other Distributions.
        The
        Holder, as the holder of this Note, shall be entitled to receive such dividends
        paid and distributions made to the holders of Shares to the same extent as
        if
        the Holder had converted the then remaining amounts outstanding under this
        Note
        into Shares (without regard to any limitations on conversion herein or
        elsewhere) and had held such Shares on the record date for such dividends
        and
        distributions. Payments under the preceding sentence shall be made concurrently
        with the dividend or distribution to the holders of Shares.

       

      (b) Issuance
        of New Securities.
        Subject
        to the terms and conditions contained in Sections 15(b) through 15(f), each
        Eligible Holder shall have the right of participation (the “Right
        of Participation”)
        to
        purchase its Participation Percentage (as defined below) of any New Securities
        (as defined below) which the
        Company
        may,
        from time to time, propose to sell and issue. An Eligible Holder’s
“Participation Percentage” for purposes of this Section 15(b) is equal to
        100% times a fraction, the numerator of which is the aggregate purchase price
        of
        all securities of the Company purchased by the Eligible Holder pursuant to
        either or both of the Securities Purchase Agreement and the Securities Purchase
        Agreement (Shares and Warrants) consummated in March 2007 (collectively the
        “SPAs”),
        and
        the denominator of which is the aggregate purchase price of all securities
        of
        the Company purchased by all Eligible Holders pursuant to the SPAs. For purpose
        hereof “Eligible
        Holder”
shall
        mean a Holder who has purchased pursuant to either or both of the SPAs
        securities of the Company with an aggregate purchase price equal to at least
        4.5% of the aggregate purchase price of all securities of the Company purchased
        by all investors pursuant to the SPAs. For
        purposes hereof “New
        Securities”
shall
        mean any equity or equity-linked securities of the
        Company,
        including Shares, whether authorized or not, and rights, options or warrants
        to
        purchase said Shares, and securities of any type whatsoever that are, or
        may
        become, convertible into said Shares, other than the following:

       

      
        (i) the
          Conversion Shares and Warrant Shares;

      

       

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

       

      (ii)  all
        Shares issued or deemed issued to officers, directors, consultants, advisors
        or
        employees of this Company, pursuant to a stock option plan approved by the
        Board
        of Directors and stockholders of the
        Company;

       

      (iii) stock
        issued in connection with any stock split, stock dividend or recapitalization
        by
the
        Company;

       

      (iv) equity
        or
        equity-linked securities issued in connection with a strategic transaction
        approved by the Board of Directors of the
        Company
        so long
        as such strategic transaction is not for the primary purpose of raising
        capital;

       

      (v) equity
        or
        equity-linked securities issued pursuant to a loan arrangement or debt financing
        from a bank, equipment lessor or similar financial institution approved by
        the
        Board of Directors of the
        Company;
        

       

      (vi) upon
        the
        written consent of all of the Required Holders that expressly states that
        the
        right of right of participation in this Section 15(b) shall not apply to
        such
        New Securities; 

       

      (vii) upon
        the
        exercise, exchange or conversion of any options or other convertible securities
        outstanding as of the date hereof.
        

       

      (c) Notice
        of Right Upon Issuance of New Securities.
        In the
        event the
        Company
        proposes
        to undertake an issuance of New Securities, it shall give each Eligible Holder
        written notice of its intention, describing the type of New Securities and
        the
        price and terms (or range of prices and terms in the case of an underwritten
        public offering) upon which the
        Company
        proposes
        to issue the same. The Eligible Holder shall have five (5) Business Days
        from
        the date of receipt of any such notice to agree to purchase shares of such
        New
        Securities (up to the amount referred to in Section 15(b)), for the price
        and
        upon the terms (or at the range of prices and terms in the case of an
        underwritten public offering) specified in the notice, by giving written
        notice
        to the
        Company
        and
        stating therein the quantity of New Securities to be purchased.

       

      (d)  Exercise
        of Right of Participation .
        If any
        Eligible Holder exercises its Right of Participation hereunder, the closing
        of
        the purchase of the New Securities, and Additional New Securities, as defined
        below, with respect to which such right has been exercised shall take place
        as
        soon as practicable after the Eligible Holder gives notice of such interest,
        but
        in no event more than thirty (30) days after such date. In the event that
        any
        Eligible Holder shall not exercise its Right of Participation hereunder,
        the
        Company shall offer such rights pro-rata to the other Eligible Holders by
        sending an additional written notice setting forth the amount of New Securities
        still available (“Additional New Securities”). The Eligible Holder shall have
        two (2) Business Days from the date of receipt of such additional notice
        to
        agree to purchase Additional New Securities.

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

       

      (e)  Transfer
        of Right of Participation.
        The
        Right of Participation granted under Section 15(b) of this Agreement may
        not be assigned or transferred.

       

      (f)  Termination
        of Right of Participation.
        The
        Right of Participation granted under Section 15(b) of this Note shall
        terminate on and be of no further force or effect upon the date on which
        less
        than 20% of the aggregate Original Principal Amount of the Notes remains
        outstanding. 

       

      (16) VOTE
        TO ISSUE, OR CHANGE THE TERMS OF, NOTES.
        Except
        as otherwise provided herein, no amendment, modification or waiver of any
        provision of a Note or any of the other Transaction Documents, or consent
        to any
        departure by any Obligor or Holder therefrom, shall in any event be effective
        unless the same shall be in writing and signed by the Required Holders and
        the
        Obligors; provided that no amendment, modification, termination or waiver
        shall,
        unless in writing and signed by each holder of Notes directly affected thereby,
        (i) reduce the Principal and, provided, further, that no amendment, modification
        or waiver shall, unless in writing and signed by all Holders, (x) change
        the
        definition of "Required Holders" or the percentage of Holders required to
        take
        any action hereunder; (y) modify this Section 16 or (z) consent to the
        assignment, delegation or other transfer by the Company or any other Obligor
        of
        any of its rights and obligations under any Transaction Document, and provided
        further that to reduce the interest rate or any fees or extend the time of
        payment of Principal, interest or any fees, or waive any default, event of
        default or Event of Default, the consent of each holder of the Notes directly
        affected thereby is required.

       

      (17) TRANSFER.
        This
        Note may be offered, sold, assigned or transferred by the Holder without
        the
        consent of the Company, provided that Holder and/or assignee give Company
        written notice of such assignment within ten (10) Business Days after the
        consummation of such assignment.

       

      (18) REISSUANCE
        OF THIS NOTE.

       

      (a) Transfer.
        If this
        Note is to be transferred, the Holder shall surrender this Note to the Company,
        whereupon the Company will forthwith issue and deliver upon the order of
        the
        Holder a new Note (in accordance with Section 18(d)), registered as the Holder
        may request, representing the outstanding Principal being transferred by
        the
        Holder and, if less then the entire outstanding Principal is being transferred,
        a new Note (in accordance with Section 18(d)) to the Holder representing
        the
        outstanding Principal not being transferred. The Holder and any permitted
        assignee, by acceptance of this Note, acknowledge and agree that, by reason
        of
        the provisions of Section 3(c)(iii) following conversion or redemption of
        any
        portion of this Note, the outstanding Principal represented by this Note
        may be
        less than the Principal stated on the face of this Note.

       

      (b) Lost,
        Stolen or Mutilated Note.
        Upon
        receipt by the Company of evidence reasonably satisfactory to the Company
        of the
        loss, theft, destruction or mutilation of this Note, and, in the case of
        loss,
        theft or destruction, of any indemnification undertaking by the Holder to
        the
        Company in customary form and, in the case of mutilation, upon surrender
        and
        cancellation of this Note, the Company shall execute and deliver to the Holder
        a
        new Note (in accordance with Section 18(d)) representing the outstanding
        Principal.

       

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

       

      (c) Note
        Exchangeable for Different Denominations.
        This
        Note is exchangeable, upon the surrender hereof by the Holder at the principal
        office of the Company, for a new Note or Notes (in accordance with Section
        18(d)
        and in principal amounts of at least $1,000) representing in the aggregate
        the
        outstanding Principal of this Note, and each such new Note will represent
        such
        portion of such outstanding Principal as is designated by the Holder at the
        time
        of such surrender.

       

      (d) Issuance
        of New Notes.
        Whenever the Company is required to issue a new Note pursuant to the terms
        of
        this Note, such new Note (i) shall be of like tenor with this Note, (ii)
        shall
        represent, as indicated on the face of such new Note, the Principal remaining
        outstanding (or in the case of a new Note being issued pursuant to Section
        18(a)
        or Section 18(c), the principal designated by the Holder which, when added
        to
        the principal represented by the other new Notes issued in connection with
        such
        issuance, does not exceed the Principal remaining outstanding under this
        Note
        immediately prior to such issuance of new Notes), (iii) shall have an issuance
        date, as indicated on the face of such new Note, which is the same as the
        Issuance Date of this Note, (iv) shall have the same rights and conditions
        as
        this Note, and (v) shall represent accrued and unpaid Interest and Late Charges
        on the Principal and Interest of this Note, if any, from the Interest
        Commencement Date.

       

      (19) REMEDIES,
        CHARACTERIZATIONS, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE
        RELIEF.
        The
        remedies provided in this Note shall be cumulative and in addition to all
        other
        remedies available under this Note and any of the other Transaction Documents
        at
        law or in equity (including a decree of specific performance and/or other
        injunctive relief), and nothing herein shall limit the Holder's right to
        pursue
        actual and consequential damages for any failure by the Company to comply
        with
        the terms of this Note. Amounts set forth or provided for herein in respect
        of
        payments, conversion and the like (and the computation thereof) shall be
        the
        amounts to be received by the Holder and shall not, except as expressly provided
        herein, be subject to any other obligation of the Company (or the performance
        thereof). The Company acknowledges that a breach by it of its obligations
        hereunder will cause irreparable harm to the Holder and that the remedy at
        law
        for any such breach may be inadequate. The Company therefore agrees that,
        in the
        event of any such breach or threatened breach, the Holder shall be entitled,
        in
        addition to all other available remedies, to an injunction restraining any
        breach, without the necessity of showing economic loss and without any bond
        or
        other security being required.

       

      (20) PAYMENT
        OF COLLECTION, ENFORCEMENT AND OTHER COSTS.
        If (a)
        this Note is placed in the hands of an attorney for collection or enforcement
        or
        is collected or enforced through any legal proceeding or the Holder otherwise
        takes action to collect amounts due under this Note or to enforce the provisions
        of this Note or (b) there occurs any bankruptcy, reorganization, receivership
        of
        the Company or other proceedings affecting Company creditors' rights and
        involving a claim under this Note, then the Company shall pay the reasonable
        costs incurred by the Holder for such collection, enforcement or action or
        in
        connection with such bankruptcy, reorganization, receivership or other
        proceeding, including, but not limited to, reasonable attorneys' and financial
        advisory fees and disbursements. 

       

      
        
          
          

        

        
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      (21) CONSTRUCTION;
        HEADINGS.
        This
        Note shall be deemed to be jointly drafted by the Company and all the Purchasers
        and shall not be construed against any person as the drafter hereof. The
        headings of this Note are for convenience of reference and shall not form
        part
        of, or affect the interpretation of, this Note.

       

      (22) FAILURE
        OR INDULGENCE NOT WAIVER.
        No
        failure or delay on the part of the Holder in the exercise of any power,
        right
        or privilege hereunder shall operate as a waiver thereof, nor shall any single
        or partial exercise of any such power, right or privilege preclude other
        or
        further exercise thereof or of any other right, power or privilege.

       

      (23) DISPUTE
        RESOLUTION.
        In the
        case of a dispute as to the determination of the Closing Bid Price, the Closing
        Sale Price or the Weighted Average Price or the arithmetic calculation of
        the
        Conversion Rate or any Redemption Price, the Company shall submit the disputed
        determinations or arithmetic calculations via facsimile within two (2) Business
        Days of receipt, or deemed receipt, of the Conversion Notice or Redemption
        Notice or other event giving rise to such dispute, as the case may be, to
        the
        Holder. If the Holder and the Company are unable to agree upon such
        determination or calculation within one (1) Business Day of such disputed
        determination or arithmetic calculation being submitted to the Holder, then
        the
        Company shall, within three (3) Business Days submit via facsimile (a) the
        disputed determination of the Closing Bid Price, the Closing Sale Price or
        the
        Weighted Average Price to an independent, reputable investment bank selected
        by
        the Company and approved by the Holder or (b) the disputed arithmetic
        calculation of the Conversion Rate or any Redemption Price to the Company's
        independent, outside accountant. The Company, at the Company's expense, shall
        cause the investment bank or the accountant, as the case may be, to perform
        the
        determinations or calculations and notify the Company and the Holder of the
        results no later than five (5) Business Days from the time such investment
        bank
        or accountant receives the disputed determinations or calculations. Such
        investment bank's or accountant's determination or calculation, as the case
        may
        be, shall be binding upon all parties absent demonstrable error.

       

      (24) NOTICES;
        PAYMENTS.

       

      (a) Notices.
        Whenever notice is required to be given under this Note, unless otherwise
        provided herein, such notice shall be given in accordance with Section 9(f)
        of
        the Securities Purchase Agreement. The Company shall provide the Holder with
        prompt written notice of each of the following actions taken pursuant to
        this
        Note, including in reasonable detail a description of such action and the
        reason
        therefor: confirmation of receipt of Conversion Notice (as required by Section
        3(c)(i)); notice of the credit Conversion Shares on DTC (if so credited pursuant
        to Section 3(c)(i)); confirmation of number of Shares outstanding (as required
        by Section 3(d)(i)); delivery of an Event of Default Notice (as required
        by
        Section 4(b)); delivery of a Change of Control Notice (as required by Section
        5(b)); notice of Purchase Rights (whenever such right arises pursuant to
        Section
        6(a)); notice of other Corporate Events (whenever such events, as set forth
        in
        Section 6(b) occur); notice of adjustment of Conversion Price (whenever such
        adjustment is required to be calculated pursuant to Section 7(a)); delivery
        of
        the Optional Redemption Notice (as required by Section 8(a)); notice of and/or
        delivery of Event of Default Redemption Price or Change of Control Redemption
        Price (pursuant to Section 12(a)); delivery of an Other Redemption Notice
        (as
        required by Section 12(b)); determinations and/or calculations (as required
        by
        Section 23); other notices required by this Section 24, and disclosure of
        material nonpublic information (as required by Section 29). The Company will
        give written notice to the Holder (i) promptly following any adjustment of
        the
        Conversion Price, setting forth in reasonable detail, and certifying, the
        calculation of such adjustment and (ii) at least twenty (20) days prior to
        the
        date on which the Company closes its books or takes a record (A) in respect
        of
        any dividend or distribution upon the Shares, (B) in respect of any pro rata
        subscription offer to holders of Shares or (C) for determining rights to
        vote in
        respect of any Fundamental Transaction, dissolution or liquidation, provided
        in
        each case that such information shall be made known to the public prior to
        or in
        conjunction with such notice being provided to the Holder.

       

      
        
          
          

        

        
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      (b) Payments.
        Whenever any payment of cash is to be made by the Company to any Person pursuant
        to this Note, such payment shall be made in lawful money of the United States
        of
        America by a check drawn on the account of the Company or any payment agent
        located in the state of New York engaged by the Company for purposes of making
        payments under this Note and the Other Notes and sent via overnight courier
        service to such Person at such address as previously provided to the Company
        in
        writing (which address, in the case of each of the Purchasers, shall initially
        be as set forth on the Schedule of Buyers attached to the Securities Purchase
        Agreement); provided that the Holder of Note(s) may elect to receive a payment
        of cash via wire transfer of immediately available funds by providing the
        Company with prior written notice setting out such request and the Holder's
        wire
        transfer instructions. Whenever any amount expressed to be due by the terms
        of
        this Note is due on any day which is not a Business Day, the same shall instead
        be due on the next succeeding day which is a Business Day and, in the case
        of
        any Interest Date which is not the date on which this Note is paid in full,
        the
        extension of the due date thereof shall not be taken into account for purposes
        of determining the amount of Interest due on such date. Any amount of Principal
        or other amounts due under the Transaction Documents, other than Interest,
        which
        is not paid when due shall result in a late charge being incurred and payable
        by
        the Company in an amount equal to interest on such amount at the rate of
        five
        percent (5.0%) per annum from the date such amount was due until the same
        is
        paid in full ("Late
        Charge").

       

      (25) CANCELLATION.
        After
        all Principal, accrued Interest and other amounts at any time owed on this
        Note
        have been paid in full (other than contingent indemnification obligations
        in
        respect of which no claim has been asserted) or all remaining amounts
        outstanding hereunder are converted to Shares, this Note shall automatically
        be
        deemed canceled, shall be surrendered to the Company for cancellation and
        shall
        not be reissued.

       

      (26) WAIVER
        OF NOTICE.
        Except
        as otherwise expressly set forth herein, to the extent permitted by law,
        the
        Company hereby waives demand, notice, protest and all other demands and notices
        in connection with the delivery, acceptance, performance, default or enforcement
        of this Note and the Securities Purchase Agreement.

       

      (27) GOVERNING
        LAW; JURISDICTION;
        SEVERABILITY; JURY TRIAL.
        This
        Note shall be construed and enforced in accordance with, and all questions
        concerning the construction, validity, interpretation and performance of
        this
        Note shall be governed by, the internal laws of the State of New York, without
        giving effect to any choice of law or conflict of law provision or rule (whether
        of the State of New York or any other jurisdictions) that would cause the
        application of the laws of any jurisdictions other than the State of New
        York.
        The Company hereby irrevocably submits to the exclusive jurisdiction of the
        state and federal courts sitting in The City of New York, Borough of Manhattan,
        for the adjudication of any dispute hereunder or in connection herewith or
        with
        any transaction contemplated hereby or discussed herein, and hereby irrevocably
        waives, and agrees not to assert in any suit, action or proceeding, any claim
        that it is not personally subject to the jurisdiction of any such court,
        that
        such suit, action or proceeding is brought in an inconvenient forum or that
        the
        venue of such suit, action or proceeding is improper. Nothing contained herein
        shall be deemed to limit in any way any right to serve process in any manner
        permitted by law. In the event that any provision of this Note is invalid
        or
        unenforceable under any applicable statute or rule of law, then such provision
        shall be deemed inoperative to the extent that it may conflict therewith
        and
        shall be deemed modified to conform with such statute or rule of law. Any
        such
        provision which may prove invalid or unenforceable under any law shall not
        affect the validity or enforceability of any other provision of this Note.
        Nothing contained herein shall be deemed or operate to preclude the Holder
        from
        bringing suit or taking other legal action against the Company in any other
        jurisdiction to collect on the Company's obligations to the Holder, to realize
        on any collateral or any other security for such obligations, or to enforce
        a
        judgment or other court ruling in favor of the Holder. THE
        COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
        REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
        CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED
        HEREBY.

       

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

       

      (28) CERTAIN
        DEFINITIONS.
        For
        purposes of this Note, the following terms shall have the following
        meanings:

       

      (a) "Acquisitions"
        shall
        have the meaning set forth in the Securities Purchase Agreement.

      

      (b) "Agricultural
        Land" means
        any
        real property purchased by the Company in order to carry out an Agricultural
        Project. 

       

      (c) "Agricultural
        Project" means
        the
        acquisition of stocks (including seeds or seedlings), and the preparation,
        planting, care and harvesting, whether on owned or leased real property,
        of
        crops for use as feedstock for any Industrial Projects owned or intended
        to be
        acquired or developed by the Company, together with any real and personal
        property necessary or appropriate for the administration thereof.

       

      (d) "Anti-Terrorism
        Laws"
        means
        the OFAC Laws and Regulations and the Executive Orders as each of such terms
        is
        defined in the USA Patriot Act. 

       

      (e) "Applicable
        Margin"
        means
        3.5% (three and one half percent per cent) per annum.

       

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

       

      (f) "Approved
        Stock Plan"
        means
        any employee benefit plan (including, without limitation, any equity
        compensation plan, restricted stock plan and/or employee stock ownership
        plan)
        or agreement existing on the date hereof which has been approved by the Board
        of
        Directors of the Company, pursuant to which the Company's securities may
        be
        issued to any employee, consultant, officer or director for services provided
        to
        the Company or any Subsidiary.

       

      (g) "Bankruptcy
        Code"
        means
        Part V of the Companies Law (2004 Revision), as amended.

       

      (h) "Bloomberg"
        means
        Bloomberg Financial Markets.

       

      (i) "Business
        Day"
        means
        any day other than Saturday, Sunday or other day on which commercial banks
        in
        The City of New York are authorized or required by law to remain
        closed.

       

      (j) "Cash
        Equivalents"
        means
        (i) securities issued or directly and fully guaranteed or insured by the
        United
        States or any agency or instrumentality thereof (provided that the full faith
        and credit of the United States is pledged in support thereof) having maturities
        of not more than one year from the date of acquisition, (ii) time deposits
        and
        certificates of deposit of any commercial bank, or which is the principal
        banking subsidiary of a bank holding company organized under the laws of
        the
        United States, and any State thereof, the District of Columbia or any foreign
        jurisdiction, having capital, surplus and undivided profits aggregating in
        excess of $500,000,000, with maturities of not more than one year from the
        date
        of acquisition by such Person, (iii) repurchase obligations with a term of
        not
        more than ninety (90) days for underlying securities of the types described
        in
        clause (i) above entered into with any bank meeting the qualifications specified
        in clause (ii) above, (iv) commercial paper issued by any Person incorporated
        in
        the United States rated at least A-1 or the equivalent thereof by Standard
&
Poors Rating Services or at least P-1 or the equivalent there of by Moody's
        Investor Service, Inc. and in each case maturing not more than one year after
        the date of acquisition by such Person, (v) investments in money market funds
        substantially all of whose assets are comprised of securities of the types
        described in clauses (i) through (iv) above, or (vi) with respect to investments
        denominated in the currency of the Federative Republic of Brazil, other
        investments considered as “cash equivalents” under GAAP.

       

      (k) "Calendar
        Quarter"
        means
        each of: the period beginning on and including January 1 and ending on and
        including March 31; the period beginning on and including April 1 and ending
        on
        and including June 30; the period beginning on and including July 1 and ending
        on and including September 30; and the period beginning on and including
        October
        1 and ending on and including December 31.

       

      (l) "Capitalized
        Lease"
        means,
        in respect of any Person, any lease of real or personal property by such
        Person
        as lessee which is (a) required under GAAP to be capitalized on the balance
        sheet of such Person or (b) a transaction of a type commonly known as a
        "synthetic lease" (i.e., a lease transaction that is treated as an operating
        lease for accounting purposes but in respect of which payments of rent are
        intended to be treated as payments of principal and interest on a loan for
        federal income tax purposes).

       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

       

      (m) "Capitalized
        Lease Obligations"
        means,
        in respect of any Person, obligations of such Person and its Subsidiaries
        under
        Capitalized Leases, and, for purposes hereof, the amount of any such obligation
        shall be the capitalized amount thereof determined in accordance with
        GAAP.

       

      (n) "Change
        of Control"
        means
        any Fundamental Transaction other than (i) any reorganization, recapitalization
        or reclassification of Shares, in which holders of the Company's voting power
        immediately prior to such reorganization, recapitalization or reclassification
        continue after such reorganization, recapitalization or reclassification
        to hold
        publicly traded securities and, directly or indirectly, the voting power
        of the
        surviving entity or entities necessary to elect a majority of the members
        of the
        board of directors (or their equivalent if other than a corporation) of such
        entity or entities; or (ii) pursuant to a migratory merger effected solely
        for
        the purpose of changing the jurisdiction of incorporation of the
        Company.

       

      (o) "Clean
        Fuel Asset" means
        any
        Industrial Project, Agricultural Project, Component, Agricultural Land, Storage
        or Transportation Asset, or equity interests of companies owning such assets.
        

       

      (p) "Closing
        Bid Price"
        and
        "Closing
        Sale Price"
        means,
        for any security as of any date, the last closing bid price and last closing
        trade price, respectively, for such security on the Principal Market, as
        reported by Bloomberg, or, if the Principal Market begins to operate on an
        extended hours basis and does not designate the closing bid price or the
        closing
        trade price, as the case may be, then the last bid price or last trade price,
        respectively, of such security prior to 4:00:00 p.m., New York Time, as reported
        by Bloomberg, or, if the Principal Market is not the principal securities
        exchange or trading market for such security, the last closing bid price
        or last
        trade price, respectively, of such security on the principal securities exchange
        or trading market where such security is listed or traded as reported by
        Bloomberg, or if the foregoing do not apply, the last closing bid price or
        last
        trade price, respectively, of such security in the over-the-counter market
        on
        the electronic bulletin board for such security as reported by Bloomberg,
        or, if
        no closing bid price or last trade price, respectively, is reported for such
        security by Bloomberg, the average of the bid prices, or the ask prices,
        respectively, of any market makers for such security as reported in the "pink
        sheets" by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.).
        If
        the Closing Bid Price or the Closing Sale Price cannot be calculated for
        a
        security on a particular date on any of the foregoing bases, the Closing
        Bid
        Price or the Closing Sale Price, as the case may be, of such security on
        such
        date shall be the fair market value as mutually determined by the Company
        and
        the Holder. If the Company and the Holder are unable to agree upon the fair
        market value of such security, then such dispute shall be resolved pursuant
        to
        Section 23. All such determinations to be appropriately adjusted for any
        stock
        dividend, stock split, stock combination or other similar transaction during
        the
        applicable calculation period.

       

      (q) "Closing
        Date"
        shall
        have the meaning set forth in the Securities Purchase Agreement, which date
        is
        the date the Company initially issued Notes pursuant to the terms of the
        Securities Purchase Agreement.

       

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

       

      (r) "Common
        Stock Deemed Outstanding"
        means,
        at any given time, the number of Shares outstanding at such time, plus the
        number of Shares deemed to be outstanding pursuant to Sections 7(a)(i) and
        7(a)(ii) hereof regardless of whether the Options or Convertible Securities
        are
        actually exercisable at such time, but excluding any Shares owned or held
        by or
        for the account of the Company or issuable upon conversion or exercise, as
        applicable, of the Notes and the Warrants.

      

      (s) "Component"
        means
        any constituent part of an Agricultural Project or an Industrial
        Project.

       

      (t) "Consolidated
        EBITDA"
        means,
        with respect to any Person for any period, (i) the Consolidated Net Income
        of such Person and its Subsidiaries for such period, plus (ii) without
        duplication, the sum of all or a portion of the following amounts of such
        Person
        and its Subsidiaries for such period determined on a consolidated basis in
        accordance with GAAP, in each case to the extent deducted in determining
        Consolidated Net Income of such Person for such period: (a) Consolidated
        Net
        Interest Expense, (b) income tax expense paid or accrued by such Person and
        its
        Subsidiaries, (c) depreciation expense, and (d) amortization expense.

       

      (u) "Consolidated
        Indebtedness"
        means,
        with respect to any Person at any date, all Indebtedness of such Person and
        its
        Subsidiaries determined on a consolidated basis in accordance with GAAP,
        and, in
        any event, with respect to the Company and its Subsidiaries, shall include,
        but
        not be limited to, (a) the Indebtedness of the Company evidenced by or
        arising under the Notes, (b) any obligations arising in connection with any
        factoring arrangements or other arrangements involving the sale of receivables,
        and (c) all Indebtedness arising in connection with any letters of credit,
        banker's acceptances, bank guarantees or similar facilities; provided,
        that,
        the
        term "Consolidated Indebtedness" shall include (i) Contingent Obligations
        specified in clauses (b) and (c) of this definition and (ii) other Contingent
        Obligations to the extent such other Contingent Obligations are required
        to be
        included on the balance sheet of such Person in accordance with GAAP
        consistently applied. 

       

      (v) "Consolidated
        Net Interest Expense"
        means,
        for any period, as to any Person, as determined in accordance with GAAP,
        the
        amount equal to: (a) total interest expense of such Person and its Subsidiaries
        on a consolidated basis for such period, whether paid or accrued (including
        the
        interest component of any Capitalized Lease for such period), and in any
        event,
        including, without limitation, (1) all bank fees, commissions, discounts
        and
        other fees and charges owed with respect to letters of credit or any factoring
        or similar arrangements, (2) interest payable by addition to principal or
        in the
        form of property other than cash and any other interest expense not payable
        in
        cash, (3) the costs or fees for such period associated
        with Hedging agreements (to the extent not otherwise included in such
        total interest expense) and (4) the non-cash component of the expense arising
        from the valuation of  the Notes and warrants issued pursuant to the
        Noteholder Documents and the PIPE Documents constituting "embedded derivatives",
        minus
        (b) the
        sum of (i) any net payments received by such Person and its Subsidiaries
        on a
        consolidated basis during such period as interest income received in respect
        of
        its investments in cash, and (ii) gains for such period
        on Hedging agreements (to the extent not included in interest income
        above and excluding any non-cash gains), plus
        (c)
        losses for such period on Hedging agreements (to the extent not
        deducted in the calculation of such total interest expenses and excluding
        any
        non-cash losses). 

       

      
        
          
          

        

        
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      (w) "Consolidated
        Net Income"
        means,
        with respect to any Person for any period, the net income (loss) of such
        Person
        and its Subsidiaries for such period, determined on a consolidated basis
        and in
        accordance with GAAP, but excluding from the determination of Consolidated
        Net
        Income (without duplication) (a) any extraordinary or non-recurring (i) gains
        or
        (ii) non-cash losses (and including in any event any non-cash losses
        from asset sales), (b) non-cash restructuring charges, (c) non-cash
        write-offs of goodwill and other intangible assets during such period which
        are
        required under Statement 142 issued by the Financial Accounting Standards
        Board
        and non-cash write-offs of equipment during such period which are required
        under
        Statement 144 issued by the Financial Accounting Standards Board, (d) non-cash
        gains or non-cash losses due to foreign currency translation adjustments
        during
        such period which are required under Statement 52 of the Financial Accounting
        Standards Board, (e) the effect of any change in accounting principles adopted
        by (or applicable to) such Person or its Subsidiaries after the date hereof
        (including any cumulative effects resulting from changes in purchase accounting
        principles, except as reflected in adjustments pursuant to clause (b) of
        the
        definition of the term "GAAP" but only to the extent that the amendment referred
        to therein has been executed and delivered by the parties hereto); and (f)
        the
        net income (if positive) of any majority-owned Subsidiary to the extent that
        the
        declaration or payment of dividends or similar distributions by such
        majority-owned Subsidiary to such Person or to any other majority-owned
        Subsidiary of such Person is not at the time permitted by operation of the
        terms
        of its charter or any agreement, instrument, judgment, decree, order, statute,
        rule or governmental regulation applicable to such majority-owned Subsidiary.
        For the purpose of this definition, net income excludes any gain (or non-cash
        loss) together with any related provision for taxes for such gain (or
        non-cash loss) realized upon the sale or other disposition of any assets
        that
        are not sold in the ordinary course of business (including, without limitation,
        dispositions pursuant to sale and leaseback transactions) or of
        any capital stock of such Person or a Subsidiary of such Person.

       

      (x) "Contingent
        Obligation"
        means,
        in respect of any Person, any obligation of such Person guaranteeing or intended
        to guarantee any Indebtedness, leases, dividends or other obligations ("primary
        obligations") of any other Person (the "primary obligor") in any manner,
        whether
        directly or indirectly, including, without limitation, (i) the direct or
        indirect guaranty, endorsement (other than for collection or deposit in the
        ordinary course of business), co-making, discounting with recourse or sale
        with
        recourse by such Person of the obligation of a primary obligor, (ii) the
        obligation to make take-or-pay or similar payments, if required, regardless
        of
        nonperformance by any other party or parties to an agreement, (iii) any
        obligation of such Person, whether or not contingent, (w) to purchase any
        such
        primary obligation or any property constituting direct or indirect security
        therefor, (x) to advance or supply funds (A) for the purchase or payment
        of any
        such primary obligation or (B) to maintain working capital or equity capital
        of
        the primary obligor or otherwise to maintain the net worth or solvency of
        the
        primary obligor, (y) to purchase property, assets, securities or services
        primarily for the purpose of assuring the owner of any such primary obligation
        of the ability of the primary obligor to make payment of such primary obligation
        or (z) otherwise to assure or hold harmless the holder of such primary
        obligation against loss in respect thereof; provided that, the term "Contingent
        Obligation" shall not include any product warranties extended in the ordinary
        course of business. The amount of any Contingent Obligation shall be deemed
        to
        be an amount equal to the stated or determinable amount of the primary
        obligation in respect of which such Contingent Obligation is made (or, if
        less,
        the maximum amount of such primary obligation for which such Person may be
        liable pursuant to the terms of the instrument evidencing such Contingent
        Obligation) or, if not stated or determinable, the maximum reasonably
        anticipated liability with respect thereto (assuming such Person is required
        to
        perform thereunder), as determined by such Person in good faith.

       

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

        

      

       

      (y) "Conversion
        Limitations"
        shall
        mean conversion limitations set forth in Section 3(d) 

       

      (z) "Convertible
        Securities"
        means
        any stock or securities (other than Options) directly or indirectly convertible
        into or exercisable or exchangeable for Shares.

       

      (aa) "Crushing,
        Storage or Transportation Asset" means
        any
        equipment or facility for crushing of feedstock, or for transportation or
        storage of bio-fuels or blends of bio-fuels and petroleum-based fuels, in
        each
        case separate from an Industrial Project.  

       

      (bb) "Default"
        means
        any event that with notice or lapse of time, or both, would give rise to
        an
        Event of Default.

       

      (cc) "Designated
        Person"
        means a
        Person either (i) included within the term "designated national" as defined
        in
        the Cuban Assets Control Regulations, 31 C.F.R. Part 515, or (ii) designated
        under Sections 1(a), 1(b), 1(c) or 1(d) of Executive Order No. 13224, 66
        Fed.
        Reg. 49079 (published September 25, 2001) or similarly designated under any
        related enabling legislation or any other similar executive orders.

       

      (dd) "Disposition"
        means
        any transaction, or series of related transactions, pursuant to which the
        Company or any of its Subsidiaries sells, issues, assigns, transfers, conveys,
        leases or subleases, licenses or otherwise disposes of, or permits any
        Subsidiary to sell, issue, assign, transfer, convey, lease or sublease, license
        or otherwise dispose of, in each case whether in one transaction or a series
        of
        related transactions, all or any part of its business, property or assets,
        or
        any interest therein, whether now owned or hereafter acquired (or agrees
        to do
        any of the foregoing), or permits or suffers any other Person to acquire
        any
        interest in its business, assets or property (or agrees to do any of the
        foregoing).

       

      (ee) "Eligible
        Market"
        means
        the Initial Principal Market, The New York Stock Exchange, Inc., the American
        Stock Exchange, The NASDAQ Global Select Market, The NASDAQ Global Market
        or The
        NASDAQ Capital Market.

       

      (ff) "Equity
        Conditions"
        means
        each of the following conditions: (i) on each day during the period beginning
        three (3) months prior to the applicable date of determination and ending
        on and
        including the applicable date of determination (the "Equity
        Conditions Measuring Period"),
        either
        (x) the Registration Statement filed pursuant to the Registration Rights
        Agreement shall be effective and available for the resale of all remaining
        Registrable Securities in accordance with the terms of the Registration Rights
        Agreement or
        (y)
        all
        Shares issuable upon conversion of the Notes and exercise of the Warrants
        shall
        be eligible for sale without restriction and without the need for registration
        under any applicable federal or state securities laws;
        (ii)
        during the Equity Conditions Measuring Period the Shares
        is
        designated for quotation on any Eligible Market and shall not have been
        suspended from trading on such exchange or market (other than suspensions
        of not
        more than two (2) days and occurring prior to the applicable date of
        determination due to business announcements by the Company and suspensions
        occurring upon the listing of the Shares on another Eligible Market (other
        than
        the Initial Principal Market)) nor shall delisting or suspension by such
        exchange or market been threatened or pending either (A) in writing by such
        exchange or market or (B) by falling below the then effective minimum listing
        maintenance requirements of such exchange or market; (iii) during the Equity
        Conditions Measuring Period, the Company shall have delivered Conversion
        Shares
        upon conversion of the Notes and Warrant Shares upon exercise of the Warrants
        to
        the holders on a timely basis as set forth in Section 3(c)(i) hereof (and
        analogous provisions under the Other Notes) and Section 1(a) of the Warrants;
        (iv) any applicable Shares to
        be
        issued in connection with the event requiring determination may be issued
        in
        full without violating Section 3(d) hereof and the rules or regulations of
        any
        applicable Eligible Market; (v) during the Equity Conditions Measuring Period,
        the Company shall not have failed to timely make any payments within five
        (5)
        Business Days of when such payment is due and has passed any applicable grace
        period pursuant to any Transaction Document; (vi) during the Equity Conditions
        Measuring Period, there shall not have occurred either (A) the public
        announcement of a pending, proposed or intended Fundamental Transaction which
        has not been abandoned, terminated or consummated, (B) an
        Event
        of Default or (C) a
        Default; (vii)
        the
        Company shall have no knowledge of any fact that would cause (x) the
        Registration Statements required pursuant to the Registration Rights Agreement
        not to be effective and available for the resale of all remaining Registrable
        Securities in accordance with the terms of the Registration Rights Agreement
        or
        (y) any Shares issuable upon conversion of the Notes and Shares issuable
        upon
        exercise of the Warrants not to be eligible for sale without restriction
        pursuant to Rule 144(k) and any applicable state securities laws; (viii)
        the
        Stockholder Approval (as defined in the Securities Purchase Agreement) shall
        have been obtained, if required; and (ix) the
        Company otherwise shall have been in material compliance with and shall not
        have
        materially breached any provision, covenant, representation or warranty of
        any
        Transaction Document.

       

      
        
          
          

        

        
          42

          
            

          

        

        
          
          

        

      

       

      (gg) "Equity
        Conditions Failure"
        means
        the failure to satisfy one or more of the Equity Conditions set forth above.
        

       

      (hh) "Equity
        Interests"
        means,
        in respect of any Person, any shares of capital stock of (or other ownership
        or
        profit interests in) such Person, any warrants, options or other rights for
        the
        purchase or acquisition from such Person of shares of capital stock of (or
        other
        ownership or profit interests in) such Person, any securities convertible
        into
        or exchangeable for shares of capital stock of (or other ownership or profit
        interests in) such Person or warrants, rights or options for the purchase
        or
        acquisition from such Person of such shares (or such other interests), and
        any
        other ownership or profit interests in such Person (including partnership,
        member or trust interests therein), whether voting or nonvoting, and whether
        or
        not such shares, warrants, options, rights or other interests are outstanding
        on
        any date of determination. 

       

      (ii) "ERISA"
        means
        the Employee Retirement Income Security Act of 1974, as amended, and any
        successor statute of similar import, and regulations thereunder, in each
        case,
        as in effect from time to time. References to sections of ERISA shall be
        construed also to refer to any successor sections.

      
         

        
          
            
            

          

          
            43

            
              

            

          

          
            
            

          

        

      

       

      (jj) "ERISA
        Affiliate"
        means
        (a) any Person subject to ERISA whose employees are treated as employed by
        the
        same employer as the employees of the Company or any of its Subsidiaries
        under
        Internal Revenue Code Section 414(b), (b) any trade or business subject to
        ERISA
        whose employees are treated as employed by the same employer as the employees
        of
        the Company or any of its Subsidiaries under Internal Revenue Code Section
        414(c), (c) solely for purposes of Section 302 of ERISA and Section 412 of
        the
        Internal Revenue Code, any organization subject to ERISA that is a member
        of an
        affiliated service group of which the Company or any of its Subsidiaries
        is a
        member under Internal Revenue Code Section 414(m), or (d) solely for purposes
        of
        Section 302 of ERISA and Section 412 of the Internal Revenue Code, any Person
        subject to ERISA that is a party to an arrangement with the Company or any
        of
        its Subsidiaries and whose employees are aggregated with the employees of
        the
        Company or any of its Subsidiaries under Internal Revenue Code Section
        414(o).

       

      (kk) "Excluded
        Securities"
        means
        any Shares, Options or Convertible Securities, stock appreciation rights
        or
        other rights with equity features issued or issuable: (i) in connection with
        any
        Approved Stock Plan; (ii) upon conversion of the Notes or the exercise of
        the
        Warrants or the Common PIPE Warrants (as defined in the Securities Purchase
        Agreement); (iii) issued in connection with any Permitted Acquisition and
        (iv)
        upon conversion of any Options or Convertible Securities which are outstanding
        on the day immediately preceding the Subscription Date, provided that the
        terms
        of such Options or Convertible Securities are not amended, modified or changed
        on or after the Subscription Date.

       

      (ll) "Fiscal
        Quarter" means
        each of the fiscal quarters adopted by the Company for financial reporting
        purposes that correspond to the Company's Fiscal
        Year,
        or such
        other fiscal quarter adopted by the Company for financial reporting purposes
        in
        accordance with GAAP.

       

      (mm) "Fiscal
        Year"
        means
        each of the fiscal years that ends on November 30 or December 31, or such
        other
        fiscal year adopted by the Company for financial reporting purposes in
        accordance with GAAP.

       

      (nn) "Fixed
        Charge Coverage Ratio"
        means,
        for any applicable period, the ratio of: (A) the sum of Consolidated EBITDA
        of
        the Company and its Subsidiaries for such period plus Reserved Cash; to (B)
        the
        sum of (i) net interest on outstanding Indebtedness, (ii) scheduled amortization
        of outstanding Indebtedness, (iii) taxes, (iv) dividends on any Equity Interest
        and (v) consolidated capital expenditures not funded with Permitted Indebtedness
        and/or Equity Interests, all calculated according to GAAP, provided that
        in the
        calculation of such ratio for the first twelve month period following the
        Closing, the Consolidated EBITDA of the Company and its Subsidiaries shall
        be
        equal to the higher of the actual such Consolidated EBITDA measured from
        and
        after the closing date, or $7,500,000 .

       

      (oo) "Fundamental
        Transaction"
        means
        that the Company shall, directly or indirectly, in one or more related
        transactions, after the date hereof (i) be dissolved or liquidated or be
        the
        subject of a plan of dissolution or liquidation adopted by its stockholders;
        (ii) consolidate or merge with or into (whether or not the Company is the
        surviving corporation) another Person or Persons; (iii) sell, assign, transfer,
        convey or otherwise dispose of all or substantially all of the properties
        or
        assets of the Company to another Person; (iv) allow another Person to make
        a
        purchase, tender or exchange offer that is accepted by the holders of more
        than
        the 50% of the outstanding shares of Voting Stock (not including any shares
        of
        Voting Stock held by the Person or Persons making or party to, or associated
        or
        affiliated with the Persons making or party to, such purchase, tender or
        exchange offer); (v) consummate a stock purchase agreement or other business
        combination (including, without limitation, a reorganization, recapitalization,
        spin-off or scheme of arrangement) with another Person whereby such other
        Person
        acquires more than 50% of the outstanding shares of Voting Stock (not including
        any shares of Voting Stock held by the other Person or other Persons making
        or
        party to, or associated or affiliated with the other Persons making or party
        to,
        such stock purchase agreement or other business combination); (vi) any "person"
        or "group" (as these terms are used for purposes of Sections 13(d) and 14(d)
        of
        the Exchange Act) is or shall become the "beneficial owner" (as defined in
        Rule
        13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate
        ordinary voting power represented by issued and outstanding Shares; (vii)
        cease
        to have during any period of two (2) years, as the majority of its Board
        of
        Directors individuals who at the beginning of such period constituted the
        Board
        of Directors of the Company (together with any new directors whose nomination
        for election was approved by a vote of at least a majority of the directors
        then
        still in office who were either directors at the beginning of such period
        or
        whose election or nomination for election was previously so approved); or
        (viii)
        fails to own, directly or indirectly, one hundred (100%) percent of the voting
        power (directly or indirectly) of the total outstanding voting stock of each
        of
        the Subsidiaries other than (A) pursuant to a sale of the voting stock of
        any
        Subsidiary permitted hereunder, (B) pursuant to a transfer of such voting
        stock
        to a Guarantor permitted herein, or (C) in the case of a Subsidiary is acquired
        after the date hereof pursuant to a Permitted Acquisition where less than
        one
        hundred (100%) percent of the voting power of the total outstanding voting
        stock
        of such Subsidiary is acquired.

       

      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

      

       

      (pp) "GAAP"
        means
        the generally accepted accounting principles of the United States of America,
        consistently applied.

       

      (qq) "Governmental
        Authority"
        means
        any nation or government, any foreign, Federal, State, city, town, municipality,
        county, local or other political subdivision thereof or thereto and any
        department, commission, board, bureau, instrumentality, agency or other entity
        exercising executive, legislative, judicial, taxing, regulatory or
        administrative powers or functions of or pertaining to government.

       

      (rr) "Hedging
        Agreement"
        means
        any interest rate, foreign currency, commodity or equity swap, collar, cap,
        floor or forward rate agreement, or other agreement or arrangement designed
        to
        protect against fluctuations in interest rates or currency, commodity (other
        than in the normal course of business) or equity values (including, without
        limitation, any option in respect of any of the foregoing and any combination
        of
        the foregoing agreements or arrangements), and any confirmation executed
        in
        connection with any such agreement or arrangement.

       

      
        
          
          

        

        
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      (ss) 
        "Indebtedness"
        means,
        in respect of any Person, without duplication, (i) all indebtedness of such
        Person for borrowed money; (ii) all obligations of such Person for the deferred
        purchase price of property or services (provided that neither trade payables
        or
        other accounts payable incurred in the ordinary course of such Person's business
        and not outstanding for more than ninety (90) days after such payable was
        due
        under its original terms nor such trade payables, if outstanding longer,
        that
        are being contested or disputed by such Person in good faith in the ordinary
        course of business shall be deemed to constitute Indebtedness) and including
        any
        earn-outs or similar arrangements in connection with any acquisition of
        businesses by such Person, whether contingent or otherwise subject to any
        conditions or limitations; (iii) all obligations of such Person evidenced
        by
        bonds, debentures, notes or other similar instruments or upon which interest
        payments are customarily made; (iv) all reimbursement, payment or other
        obligations and liabilities of such Person created or arising under any
        conditional sales or other title retention agreement in respect of property
        used
        and/or acquired by such Person, even though the rights and remedies of the
        lessor, seller and/or lender thereunder may be limited to repossession or
        sale
        of such property and all obligations and liabilities arising in connection
        with
        factoring arrangements or other arrangements in respect of the sale of
        receivables; (v) that portion of Capitalized Lease Obligations of such Person
        that is (or is required to be) classified as a liability on its balance sheet
        in
        conformity with GAAP; (vi) all obligations and liabilities, contingent or
        otherwise, of such Person, in respect of letters of credit, acceptances and
        similar facilities; (vii) all net obligations and liabilities, of such Person
        under Hedging Agreements; (viii) all Contingent Obligations; (ix) liabilities
        incurred under Title IV of ERISA in respect of any plan (other than a
        Multiemployer Plan) covered by Title IV of ERISA and maintained for employees
        of
        such Person or any of its ERISA Affiliates; (x) withdrawal liability incurred
        under ERISA by such Person or any of its ERISA Affiliates in respect of any
        Multiemployer Plan; and (xi) all obligations referred to in clauses (i) through
        (x) of this definition of another Person secured by (or for which the holder
        of
        such Indebtedness has an existing right, contingent or otherwise, to be secured
        by) a Lien upon property owned by such Person, even though such Person has
        not
        assumed or become liable for the payment of such Indebtedness. The Indebtedness
        of any Person shall include the Indebtedness of any partnership of or joint
        venture in which such Person is a general partner or a joint venturer to
        the
        extent such Person is liable therefor as a result of such Person's ownership
        interest in such entity, except to the extent the terms of such Indebtedness
        expressly provide that such Person is not liable therefor. None of (1) any
        Approved Stock Plan, (2) any Management Incentive Plan or any obligations
        under any of them shall be "Indebtedness"
        for
        purposes hereof. For purpose hereof “Management
        Incentive Plan”
means
        any management incentive plan adopted or to be adopted by the Board of Directors
        or the Compensation Committee of the Board of Directors, pursuant to which
        each
        of the identified officers therein will receive an annual performance-based
        bonus for each fiscal year within the employment period set forth in such
        officer’s employment agreement with such bonus being tied to achievement of the
        annual bonus targets to be set by the Board of Directors or the Compensation
        Committee of the Board of Directors. 

       

      (tt) “Industrial
        Project” means
        (i)
        any industrial facility (including elements for fabrication, transport on-site
        or to or from a related Agricultural Project, or on-site storage) which,
        taken
        as a whole, is capable of producing ethanol, biodiesel or other bio-fuels,
        or
        (ii) any expansion of any such industrial facility calculated to increase
        the
        production capacity thereof by a quantifiable number of gallons per year,
        together, in each case, with any real and personal property necessary or
        appropriate for the administration thereof.

       

      
        
          
          

        

        
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      (uu) "Initial
        Principal Market"
        means
        the National Association of Securities Dealers Inc.'s OTC Bulletin
        Board.

       

      (vv) "Insolvency
        Proceeding"
        means
        (a) any proceeding by or against any Person seeking to adjudicate it a bankrupt
        or insolvent, or seeking dissolution, liquidation, winding up, reorganization,
        administration, arrangement, adjustment, protection, relief or composition
        of it
        or its debts under any provision of the Bankruptcy Code, or seeking the entry
        of
        an order for relief or the appointment of a receiver, administrative receiver,
        administrator, manager, examiner, trustee, custodian, liquidator, sequestrator
        or other similar official for any such Person or for any substantial part
        of its
        property under any provision of the Bankruptcy Code, or (b) the appointment
        of a
        receiver, administrative receiver, administrator, manager, examiner, trustee,
        liquidator, custodian, sequestrator or similar official for such Person or
        a
        substantial part of its assets shall occur under any provisions of the
        Bankruptcy Code.

       

      (ww) "Interest
        Period"
        means
        (i) initially, the period commencing on the Interest Commencement Date
        and
        ending on the nine month anniversary of the Interest Commencement Date and
        (b)
        thereafter, each period commencing on the last day of the immediately preceding
        Interest Period and ending nine months thereafter.

       

      (xx) "Interest Rate"
        means,
        in respect of any Interest Period, a rate per annum equal to LIBOR plus the
        Applicable Margin then in effect. 

       

      (yy) "LIBOR",
        in
        respect of any Interest Period, shall mean the twelve-month London Interbank
        Offered Rate for deposits in U.S. dollars, as quoted from time to time on
        Bloomberg as of approximately 11:00 a.m., London time, on the second Business
        Day prior to the first day of such Interest Period.

       

      (zz) "Lien"
        means
        any mortgage, deed of trust, deed to secure debt or similar instrument, pledge,
        lien (statutory or otherwise), security interest, charge, attachment, assignment
        or other encumbrance or security or preferential arrangement of any nature,
        including, without limitation, any conditional sale or title retention
        arrangement, any Capitalized Lease and any assignment, deposit arrangement
        or
        financing lease intended as, or having the effect of, security.

       

      (aaa) "List"
        means
        that certain list maintained by the Office of Foreign Assets Control
        ("OFAC"),
        Department of the Treasury, and/or on any other similar list maintained by
        the
        OFAC pursuant to any authorizing statute, executive order or
        regulation.

       

      (bbb) “Issuance
        Date”
means
        the date hereof. 

       

      (ccc) "Material
        Contract"
        means
        (i) the Acquisition Documents, (ii) each contract or agreement to which the
        Company or any of their Subsidiaries is a party involving aggregate
        consideration payable to or by such Person of $1,000,000 or
        more
        in any twelve month period and (iii) all other contracts or agreements material
        to the business, operations, condition (financial or otherwise), performance,
        or
        properties of the Company and its Subsidiaries (taken as a whole).

       

      
        
          
          

        

        
          47

          
            

          

        

        
          
          

        

      

       

      (ddd) "Multiemployer
        Plan"
        means a
        "multiemployer plan" as defined in Section 4001(a)(3) of ERISA to which the
        Company or any Guarantor or any ERISA Affiliates has contributed to, or has
        been
        obligated to contribute.

       

      (eee) "Obligors"
        means
        the Company and the Guarantors, collectively.

       

      (fff) "Options"
        means
        any rights, warrants or options to subscribe for or purchase Shares or
        Convertible Securities.

       

      (ggg) "Parent
        Entity"
        of a
        Person means an entity that, directly or indirectly, controls the applicable
        Person and whose common stock or equivalent equity security is quoted or
        listed
        on an Eligible Market, or, if there is more than one such Person or Parent
        Entity, the Person or Parent Entity with the largest public market
        capitalization as of the date of consummation of the Fundamental
        Transaction.

       

      (hhh) 
        "Permitted
        Acquisition"
        means
        the Acquisitions (as defined in the Securities Purchase Agreement) and any
        other
        acquisition by
        the
        Company and/or
        any of
        its Subsidiaries,
        whether
        by purchase, merger or otherwise, whether or not involving cash and/or stock
        consideration; provided that, 

       

      (i) immediately
        prior to, and after giving effect thereto, no Default or Event of Default
        shall
        have occurred and be continuing or would result therefrom; 

       

      (ii) all
        transactions in connection therewith shall be consummated in accordance with
        applicable laws; 

       

      (iii) [Intentionally
        Omitted];
        

       

      (iv) the
        Company and its Subsidiaries shall be in compliance with the financial covenants
        set forth in Section 14(l) hereof on a pro forma basis after giving effect
        to
        such acquisition as of the last day of the fiscal quarter most recently ended;
        

       

      (v) after
        giving effect to such transaction, the Company or Guarantor shall own all
        of the
        interests in the Subsidiary having acquired the assets in the Permitted
        Acquisition (except
        for any equity interest held by an officer or employee of such Subsidiary
        with
        respect to equity interests granted pursuant to employment agreements which
        in
        the aggregate of all equity interests held by such officers or employees
        shall
        not exceed 1% of any Subsidiary’s equity);

       

      (vi) after
        giving effect to such transaction, the Company and/or its Subsidiaries shall
        have at least $2,500,000 of cash and Cash Equivalents on hand; and 

       

      
        
          
          

        

        
          48

          
            

          

        

        
          
          

        

      

       

      (vii) the
        acquired business and/or assets shall comprise assets used in, or be an
        operating company or a division of an operating company that engages in,
        a line
        of business substantially similar, complimentary or related to the business
        that
        the Company, Guarantors or their Subsidiaries are engaged in on the date
        hereof.

       

      (iii) "Permitted
        Indebtedness"
        means:

       

      (i) [intentionally
        omitted];

       

      (ii) Contingent
        Obligations of the Company or any of its Subsidiaries in respect of any
        Indebtedness described in this definition of Permitted Indebtedness which
        the
        Company or such Subsidiary is otherwise permitted to incur hereunder, provided
        that the Contingent Obligations of the Company or any Guarantor with respect
        to
        Indebtedness described in Clause (iii)(A) immediately below shall be limited
        to
        the amounts set forth in the Immediate Acquisition Documents;

       

      (iii) (A)
        Indebtedness of the Company or any of its Subsidiaries pursuant to any earn-outs
        and deferred purchase price payments or Indebtedness assumed, under the
        Acquisition Documents in accordance with the terms thereof as in effect on
        the
        date hereof and (B) Indebtedness of the Company or any of its Subsidiaries
        arising after the date hereof incurred in connection with any Permitted
        Acquisition (without distinction as to whether a security interest is created);
        provided that such Indebtedness is without recourse to the Company or any
        Guarantor (except with respect to the maximum amount as set out in the proviso
        in Clause (ii) above) and is not greater than: 

       

      (A)  in
        the
        case of an Industrial Project, an amount equal to three times the product
        of (A)
        the annual production capacity, in gallons, of the Industrial Project,
        multiplied by (B) the Consolidated EBITDA per gallon over the 12 months prior
        to
        the month in which the Indebtedness is incurred which corresponds to the
        fuel of
        the same type as the subject Industrial Asset (or, in the case of Permitted
        Acquisitions occurring prior to the first anniversary of the Closing, $0.50
        per
        gallon), adjusted, if appropriate, according to the final proviso in clause
        (E)
        below,

       

      (B) in
        the
        case of an Agricultural Project for the production of sugar cane, an amount
        equal to 1.5 times the product of (A) the annual anticipated production yield
        (based upon the average of similar yields in the prior 12 months at other
        Company properties for the type and variety of agricultural cane), in tons,
        of
        the Agricultural Project, and (B) the average per ton price established by
        the
        Conselho dos Produtores de Cana, Açúcar e Álcool do Estado de São Paulo
        (“CONSECANA”)
        for
        sugar cane over the 12 months prior to the month in which the Indebtedness
        is
        incurred, adjusted, if appropriate, according to the final proviso of clause
        (E)
        below,

       

      (C) in
        the
        case of an Agricultural Project for the production of feedstock for biodiesel,
        an amount equal to 3 times the product of (A) the annual production capacity,
        in
        gallons, of the Agricultural Project, and (B) the average per gallon price
        over
        the 12 months prior to the month in which the Indebtedness is incurred,
        established by an independent consultant for feedstocks of the same mixture
        as
        that used in the 12 months prior to the month in which the Indebtedness is
        incurred, adjusted, if appropriate, according to the final proviso of clause
        (E)
        below,

       

      
        
          
          

        

        
          49

          
            

          

        

        
          
          

        

      

       

      (D) 
        in the
        case of the acquisition of Agricultural Land, and amount equal to 75% of
        the
        purchase price thereof, and

       

      (E) in
        the
        case of the acquisition of any Component or of any Crushing, Storage or
        Transportation Asset, 60% of the installed cost (including the cost of
        equipment, interest during construction, taxes, engineering and labor) or
        in the
        case of cars, trucks or other rolling stock, the level of leasing or secured
        financing that is available on commercially reasonable terms, provided that
        in
        any case, the aggregate of such Indebtedness outstanding from time to time
        does
        not exceed 1.0 times Consolidated EBITDA in the 12 months prior to the month
        in
        which the subject Indebtedness is incurred or, in the case of Indebtedness
        incurred prior to the first anniversary of the Closing, $5.0 MM, and provided
        further that, if, after the incurrence of Indebtedness to fund any Component,
        the Company seeks to incur further Indebtedness to fund any Industrial or
        Agricultural Project of which the Component is a part, the amount then
        outstanding of the Indebtedness corresponding to the Component shall be deducted
        from the Indebtedness that would otherwise be Permitted Indebtedness
        corresponding to the Industrial or Agricultural Project;

      

      provided,
        however, that in any of the foregoing case, such Indebtedness shall not cause
        the Ratio Covenants to be breached.

      

      (iv) any
        other
        Indebtedness of the Company or any Subsidiary listed on Schedule
        14(u)
        hereto;

       

      (v) purchase
        money Indebtedness of the Company or any Subsidiary (including purchase money
        Capitalized Leases and including all reimbursement, payment or other obligations
        and liabilities of the Company or such Subsidiary created or arising under
        any
        conditional sales or other title retention agreement in respect of property
        used
        and/or acquired by the Company or such Subsidiary, even though the rights
        and
        remedies of the lessor, seller and/or lender thereunder may be limited to
        repossession or sale of such property) arising after the date hereof to the
        extent secured by purchase money security interests in equipment (including
        Capitalized Leases) and purchase money mortgage, deed of trust, deed to secure
        debt or similar instruments on Real Property not to exceed $5,000,000 in
        any
        Fiscal Year or $15,000,000 in
        the
        aggregate at any time outstanding (in each case including both purchase money
        Indebtedness secured by equipment and Real Property) so long as such security
        interests and mortgage, deed of trust, deed to secure debt or similar
        instruments do not apply to any property of the Company or any Subsidiary
        other
        than the equipment or Real Property so acquired and other equipment or Real
        Property financed by such lender to the extent that such financing constitutes
        Permitted Indebtedness and is evidenced by an agreement that includes customary
        provisions requiring cross-collateralization thereof, and the Indebtedness
        secured thereby does not exceed the cost of the equipment or Real Property
        so
        acquired and the cost of other equipment or Real Property financed by such
        lender to the extent that such financing constitutes Permitted Indebtedness
        and
        is evidenced by an agreement that includes customary provisions requiring
        cross-collateralization thereof, as the case may be;

       

      
        
          
          

        

        
          50

          
            

          

        

        
          
          

        

      

       

      (vi) Indebtedness
        of the Company or any Subsidiary arising pursuant to loans or advances by
        the
        Company or a Guarantor to the Company or such Subsidiary permitted under
        Sections 14(t) and 14(u);

       

      (vii) Indebtedness
        existing on the date hereof in the form of deferred compensation to employees,
        directors and/or officers of the Company or any Subsidiary as set out in
        Schedule 28(iii)(vii); 

       

      (viii) Indebtedness
        to provide working capital to the Company or its Subsidiaries in an aggregate
        amount not to exceed $5,000,000 at
        any
        time outstanding;

       

      (ix) Indebtedness
        to employees, directors and/or officers of the Company or any Subsidiary
        in the
        form of retention compensation not to exceed $1,000,000 in the aggregate
        outstanding at any time; 

       

      (x) Indebtedness
        of the Company or any Guarantor arising after the date hereof consisting
        of the
        reimbursement obligations to a financial institution in respect of letters
        of
        credit or bank guarantees issued by such financial institution for the account
        of the Company or any Guarantor, in the ordinary course of business; provided
        that (x) upon its request, the Collateral Agent shall have received true,
        correct and complete copies of all of agreements, documents and instruments
        relating to the facility pursuant to which such letters of credit are issued,
        and (y) in no event shall the aggregate amount of all such Indebtedness
        (contingent or otherwise) at any time exceed the amount equal to $10,000,000;
        

       

      (xi) Indebtedness
        of the Company and the Guarantors arising after the date hereof issued in
        exchange for, or the proceeds of which are used to refinance, replace or
        substitute for all or any portion of the Indebtedness permitted under clauses
        (iv) or (v) of this definition (the "Refinancing
        Indebtedness");
        provided that as to any such Refinancing Indebtedness, each of the following
        conditions is satisfied: (w) the Refinancing Indebtedness shall have a weighted
        average life to maturity and a final maturity equal to or greater than the
        weighted average life to maturity and the final maturity, respectively, of
        the
        Indebtedness being refinanced, replaced, or substituted for, (x) the Refinancing
        Indebtedness shall rank in right of payment no more senior than, and be at
        least
        as subordinated (if subordinated) to, the obligations under this Note as
        the
        Indebtedness being refinanced, replaced or substituted for, (y) such extension,
        refinancing or modification is pursuant to terms that are not less favorable
        to
        the Company, its Subsidiaries, the Collateral Agent and the Holder than the
        terms of the Indebtedness being refinanced, replaced, or substituted for
        and (z)
        after giving effect to such refinancing, replacement or substitution, the
        principal amount of such Indebtedness is not greater than the principal amount
        of Indebtedness outstanding immediately prior to such refinancing, replacement
        or substitution (or in the case of the refinancing, replacement or substitution
        of or for a revolving credit facility, the aggregate of the commitments of
        the
        lender or lenders under such facility);

       

      
        
          
          

        

        
          51

          
            

          

        

        
          
          

        

      

       

      (xii) In
        addition to all other Permitted Indebtedness, Subordinated Indebtedness or
        issuance of preference shares (or preferred stock, as applicable) of the
        Company
        or any Subsidiary arising after the date hereof, provided that (w) the
        Collateral Agent shall have received not less than ten (10) days prior written
        notice of the intention of the Company or such Subsidiary to incur such
        Indebtedness or issue such preference shares (or preferred stock, as
        applicable), which notice shall set forth in reasonable detail satisfactory
        to
        the Holders the amount of such Indebtedness or issuance of preference shares
        (or
        preferred stock, as applicable), the person or persons to whom such Indebtedness
        or preference shares (or preferred stock, as applicable) will be owed, the
        interest or dividend rate, the schedule of repayments and maturity date or
        redemption with respect thereto and such other information as the Holders
        may
        request with respect thereto, (x) the Holders shall have received true, correct
        and complete copies of all agreements, documents and instruments evidencing
        or
        otherwise related to such Indebtedness or preference shares (or preferred
        stock,
        as applicable), (y) in no event shall the aggregate principal amount of such
        Indebtedness together with redemption value, in the case of preference shares
        (or preferred stock, as applicable), at any time outstanding exceed $40,000,000
        and (z) as of the date of incurring such Indebtedness and after giving effect
        thereto, no Default or Event of Default shall exist or have occurred;

       

      (xiii) Indebtedness
        of the Company and its Subsidiaries arising after the date hereof consisting
        of
        obligations on surety or appeal bonds; provided that, (x) such surety or
        appeal
        bonds arise in the ordinary course of business and do not exceed at any time
        outstanding $5,000,000, and (y) in connection with any performance bonds
        issued
        by a surety or other person, the issuer of such bond shall have waived in
        writing any rights in or to, or other interest in, any of the Collateral
        (other
        than deposits or pledges of cash permitted to secure such Indebtedness under
        clause (x) of the definition of the term Permitted Liens) in an agreement,
        in
        form and substance satisfactory to the Collateral Agent.

       

      (xiv) [intentionally
        omitted]; and 

       

      (xv) Indebtedness
        consisting of liabilities incurred under Title IV of ERISA in respect of
        any
        plan (other than a Multiemployer Plan) covered by Title IV of ERISA and
        maintained for employees of such Person or any of its ERISA Affiliates and
        withdrawal liability incurred under ERISA by such Person or any of its ERISA
        Affiliates in respect of any Multiemployer Plan to the extent that in each
        case
        such Indebtedness does not otherwise constitute or give rise to an Event
        of
        Default; 

       

      (xvi) incentive
        bonus plans and other employee benefit plans of the Company and/or its
        Subsidiaries to the extent that obligations under such plans constitute
        "Indebtedness"; and

       

      (xvii) trade
        payables or other accounts payable incurred in the ordinary course of the
        Company's or any Subsidiary's business and not outstanding for more than
        one
        hundred and twenty (120) days after such amount is due by the Company or
        such
        Subsidiary or, if outstanding longer, that are being contested or disputed
        by
        the Company and/or such Subsidiary in good faith in the ordinary course of
        business.

       

      
        
          
          

        

        
          52

          
            

          

        

        
          
          

        

      

       

      (jjj) "Permitted
        Liens"
        means:

       

      (i) Liens
        securing the obligations under the Notes;

       

      (ii) Liens
        to
        secure the obligations under the Indebtedness described in clause (iii),
        and in
        the proviso to clause (ii), of the definition of Permitted Indebtedness to
        the
        extent that such Liens do not extend to the Company or the Guarantors, other
        than to the stock of the Subsidiary undertaking the Permitted Acquisition
        in
        connection with which such Indebtedness is incurred;

       

      (iii) Liens
        securing the payment of taxes, assessments or other governmental charges
        or
        levies either not yet overdue or the validity of which are being contested
        in
        good faith by appropriate proceedings diligently pursued and available to
        the
        Company, or Guarantor or any other Subsidiary of the Company, as the case
        may be
        and in respect of which adequate reserves have been set aside on its books
        and
        for which payment is not required by the terms of Section 14(x);

       

      (iv) Liens
        constituting purchase money security interests in equipment (including
        Capitalized Leases) and purchase money mortgages, deeds of trust, deeds to
        secure debt or similar instruments on real property to secure Indebtedness
        permitted under clause (v) of the definition of the term "Permitted
        Indebtedness";

       

      (v) Liens
        imposed by law, such as carriers', warehousemen's, mechanics', materialmen's
        and
        other similar Liens arising in the ordinary course of business and securing
        obligations (other than Indebtedness for borrowed money) that are not overdue
        by
        more than thirty (30) days or are being contested in good faith and by
        appropriate proceedings promptly initiated and diligently conducted; provided
        that they are subordinate to the Collateral Agent's Liens on the Collateral
        (except to the extent of customary fees payable in respect of such obligations),
        and a reserve or other appropriate provision, if any, as shall be required
        by
        GAAP shall have been made therefor;

       

      (vi) Liens
        described on Schedule
        28(jjj)(vi),
        but not
        the extension of coverage thereof to other property or the increase of the
        Indebtedness secured thereby (other than in respect of accrued interest in
        accordance with the terms thereof); 

       

      (vii) Liens
        and
        the right of setoff against deposits of cash by the Company, any Guarantor
        or
        any Subsidiary in the ordinary course of business with any financial institution
        at which a deposit account of the Company, such Guarantor or such Subsidiary
        is
        maintained to secure obligations of the Company, such Guarantor or such
        Subsidiary to such financial institution in connection with such deposit
        account
        and the cash management services provided by such financial institution for
        which such deposit account is used consistent with the current practices
        of the
        Company, such Guarantor or such Subsidiary as of the date hereof; provided
        that,
        such Liens are subordinate to the Collateral Agent's Liens on the Collateral
        except to the extent of customary fees, items returned unpaid and overdrafts
        payable in respect of such obligations; 

       

      
        
          
          

        

        
          53

          
            

          

        

        
          
          

        

      

       

      (viii) Liens
        arising from (i) operating leases and the precautionary UCC financing statement
        filings (or the equivalent thereof under any similar law or statute of any
        applicable jurisdiction) in respect thereof and (ii) equipment or other
        materials which are not owned by the Company, any Guarantor or any Subsidiary
        located on the premises of the Company, such Guarantor or such Subsidiary
        (but
        not in connection with, or as part of, the financing thereof) from time to
        time
        in the ordinary course of business and consistent with current practices
        of the
        Company, such Guarantor or such Subsidiary of the Company or such Guarantor
        and
        the precautionary UCC financing statement filings (or the equivalent thereof
        under any similar law or statute of any applicable jurisdiction) in respect
        thereof;

       

      (ix) Liens
        in
        favor of customs and revenue authorities arising as a matter of law to secure
        payment of customs duties in connection with importation of goods in the
        ordinary course of business;

       

      (x) deposits
        and pledges of cash securing (i) obligations incurred in respect of workers'
        compensation, unemployment insurance or other forms of governmental insurance
        or
        benefits, (ii) the performance of bids, tenders, leases, contracts (other
        than
        for the payment of money) and statutory obligations or (iii) obligations
        on
        surety or appeal bonds permitted under clause (xiii) of the definition of
        the
        term Permitted Indebtedness;

       

      (xi) easements,
        zoning restrictions and similar encumbrances on real property owned by the
        Company or any Subsidiary and minor irregularities in the title thereto that
        do
        not (x) secure obligations for the payment of money, or (y) materially impair
        the value of such property or its use by the Company or any Subsidiary in
        the
        normal conduct of the Company's or such Subsidiary business;

       

      (xii) Liens
        resulting from any judgment or award so long as (x) such judgment or award
        does
        not constitute an Event of Default under Section 4(a)(xv) and (y) the
        enforcement of such judgment or award has been stayed by reason of a pending
        appeal or otherwise; 

       

      (xiii) licenses
        in respect of Intellectual Property to the extent permitted hereunder or
        under
        the other Transaction Documents (including, without limitation,
        Licenses);

       

      (xiv) Liens
        of
        the financial institution that has issued letters of credit or bank guarantees
        for the account of the Company or any Guarantor giving rise to Indebtedness
        of
        such Person permitted under clause (x) of the definition of Permitted
        Indebtedness on cash and Cash Equivalents of such Person to secure the
        reimbursement obligations to such financial institution in respect of such
        letters of credit and bank guarantees; provided that, in no event shall the
        aggregate amount of such cash and Cash Equivalents at any time exceed the
        amount
        equal to one hundred five (105%) percent of the undrawn amount of such letters
        of credit and bank guarantees then outstanding;

       

      
        
          
          

        

        
          54

          
            

          

        

        
          
          

        

      

       

      (xv) Liens
        to
        secure Refinancing Indebtedness to the extent such Liens are otherwise permitted
        hereunder; and 

       

      pledges
        of any cash earnest money deposits, not to exceed $3,000,000 in the aggregate,
        by the Company or any Subsidiary pursuant to a letter of interest or purchase
        agreement executed by the Company or such Subsidiary in connection with any
        Permitted Acquisition.

       

      (kkk) 
        "Person"
        means
        an individual, a limited liability company, a partnership, a joint venture,
        a
        corporation, a trust, an unincorporated organization, any other entity and
        a
        government or any department or agency thereof. 

       

      (lll) "Principal
        Market"
        means,
        from time to time, the Eligible Market upon which the Shares are admitted
        or
        listed and principally trade.

       

      (mmm) "Real
        Property"
        means
        all now owned and hereafter acquired real property of the Company and each
        Subsidiary, including leasehold interests, together with all buildings,
        structures, and other improvements located thereon and all licenses, easements
        and appurtenances relating thereto, wherever located.

       

      (nnn) "Redemption
        Notices"
        means,
        collectively, the Event of Default
        Redemption Notices, the Change of Control Redemption Notices and the Optional
        Redemption Notice, each of the foregoing, individually, a Redemption
        Notice.

       

      (ooo) "Redemption
        Premium"
        means
        120%.

       

      (ppp) "Redemption
        Prices"
        means,
        collectively, the Event of Default Redemption Price, Optional Redemption
        Price
        and Change of Control Redemption Price and, each of the foregoing, individually,
        a Redemption Price.

       

      (qqq) "Registration
        Rights Agreement"
        means
        that certain registration rights agreement dated as of the Issuance Date
        by and
        among the Company and the initial holders of the Notes relating to, among
        other
        things, the registration for resale of the Shares issuable upon conversion
        of
        the Notes and exercise of the Warrants.

       

      (rrr) "Required
        Holders"
        means
        the holders of Notes representing at least a majority of the aggregate principal
        amount of the Notes then outstanding; provided that any Note that is held
        by an
        Affiliate of the Company shall not be deemed to be outstanding for purposes
        of
        the determination of "Required Holders."

       

      (sss) "Reserved
        Cash"
        means,
        with respect to a given period, the amount of cash specifically reserved
        throughout such period by the Company for the payment of principal of and
        interest on the Notes, or any other Permitted Indebtedness other than any
        Subordinated Indebtedness.

       

      
        
          
          

        

        
          55

          
            

          

        

        
          
          

        

      

       

      (ttt) 
        "SEC"
        means
        the United States Securities and Exchange Commission. 

       

      (uuu)
        "Securities
        Purchase Agreement"
        means
        that certain Securities Purchase Agreement (Notes and Warrants) dated as
        of the
        Subscription Date by and among the Company and the initial holders of the
        Notes,
        pursuant to which the Company issued the Notes.

       

      (vvv)
        "Subordinated
        Indebtedness"
        means
        Indebtedness (secured or unsecured) incurred by the Company and/or its
        Subsidiaries that is made expressly subordinate in right of payment to the
        Indebtedness evidenced by this Note, as reflected in a written agreement
        acceptable to the Holder and approved by the Holder in writing; provided
        that no
        such Indebtedness shall provide at any time for (1) the payment, prepayment,
        repayment, repurchase or defeasance, directly or indirectly, of any principal
        or
        premium, if any, thereon until ninety-one (91) days after the Maturity Date
        or
        later and (2) total cash interest at a rate in excess of eleven percent (11.0%)
        per annum.

       

      (www) "Subscription
        Date"
        means
        [__________].

       

      (xxx)
        "Subsidiary"
        means,
        from time to time, any entity in which the Company directly or indirectly,
        owns
        any of the capital stock or holds an equity or similar interest.

       

      (yyy)
        "Successor
        Entity"
        means
        the Person, which may be the Company, formed by, resulting from or surviving
        any
        Fundamental Transaction or the Person with which such Fundamental Transaction
        shall have been made, provided that if such Person is not a publicly traded
        entity whose common stock or equivalent equity security is quoted or listed
        for
        trading on an Eligible Market, Successor Entity shall mean such Person's
        Parent
        Entity.

       

      (zzz) “Total
        Leverage Ratio”
means
        the ratio of (A) the Indebtedness described in clause (iii), and in the proviso
        to clause (ii), of the definition of Permitted Indebtedness less cash and
        Cash
        Equivalents; to (B) Consolidated EBITDA of the Company and its Subsidiaries
        for
        the twelve (12) consecutive months determined on a rolling basis with a new
        12-month period beginning on the first day of each calendar month to be greater
        than 2.0, provided that in the calculation of such ratio for the first twelve
        month period following the Closing, the Consolidated EBITDA of the Company
        and
        its Subsidiaries shall be equal to the higher of the actual such Consolidated
        EBITDA measured from and after the closing date, or $7,500,000;

       

      (aaaa) "Trading
        Day"
        means
        any day on which the Shares are traded on the Principal Market, or, if the
        Principal Market is not the principal trading market for the Shares, then
        on the
        Eligible Market which is the principal securities exchange or securities
        market
        on which the Shares are then traded; provided that "Trading Day" shall not
        include any day on which the Shares are scheduled to trade on such exchange
        or
        market for less than 4.5 hours or any day that the Shares is suspended from
        trading during the final hour of trading on such exchange or market (or if
        such
        exchange or market does not designate in advance the closing time of trading
        on
        such exchange or market, then during the hour ending at 4:00:00 p.m., New
        York
        Time).

       

      
        
          
          

        

        
          56

          
            

          

        

        
          
          

        

      

       

      (bbbb) "Voting
        Stock"
        of a
        Person means capital stock of such Person of the class or classes pursuant
        to
        which the holders thereof have the general voting power to elect, or the
        general
        power to appoint, at least a majority of the board of directors, managers
        or
        trustees of such Person (irrespective of whether or not at the time capital
        stock of any other class or classes shall have or might have voting power
        by
        reason of the happening of any contingency).

       

      (cccc) "Warrants"
        has the
        meaning ascribed to such term in the Securities Purchase Agreement, and shall
        include all warrants issued in exchange therefor or replacement
        thereof.

       

      (dddd) "Weighted
        Average Price"
        means,
        for any security as of any date, the dollar volume-weighted average price
        for
        such security on the Principal Market during the period beginning at 9:30:01
        a.m., New York Time (or such other time as the Principal Market publicly
        announces is the official open of trading), and ending at 4:00:00 p.m., New
        York
        Time (or such other time as the Principal Market publicly announces is the
        official close of trading) as reported by Bloomberg through its "Volume at
        Price" functions, or, if the foregoing does not apply, the dollar
        volume-weighted average price of such security in the over-the-counter market
        on
        the electronic bulletin board for such security during the period beginning
        at
        9:30:01 a.m., New York Time (or such other time as such market publicly
        announces is the official open of trading), and ending at 4:00:00 p.m., New
        York
        Time (or such other time as such market publicly announces is the official
        close
        of trading) as reported by Bloomberg, or, if no dollar volume-weighted average
        price is reported for such security by Bloomberg for such hours, the average
        of
        the highest closing bid price and the lowest closing ask price of any of
        the
        market makers for such security as reported in the "pink sheets" by Pink
        Sheets
        LLC (formerly the National Quotation Bureau, Inc.). If the Weighted Average
        Price cannot be calculated for a security on a particular date on any of
        the
        foregoing bases, the Weighted Average Price of such security on such date
        shall
        be the fair market value as mutually determined by the Company and the Holder.
        If the Company and the Holder are unable to agree upon the fair market value
        of
        such security, then such dispute shall be resolved pursuant to Section 23.
        All
        such determinations to be appropriately adjusted for any stock dividend,
        stock
        split, stock combination or other similar transaction during the applicable
        calculation period.

       

      
        
          
          

        

        
          57

          
            

          

        

        
          
          

        

      

       

      (29) DISCLOSURE.
        The
        Company shall not, and shall cause its Subsidiaries and each of their respective
        officers, directors, employees and agents, not to, provide the Holder with
        any
        material, nonpublic information regarding, the Company or any if its
        Subsidiaries from and after the filing of the 8-K Filing with the SEC without
        the express written consent of the Holder. If the Holder has, or believes
        it
        has, received from the Company any such material, nonpublic information
        regarding the Company or any of the Subsidiaries, it shall provide the Company
        with written notice thereof. The Company shall, within four (4) Trading Days
        of
        receipt of such notice, make public disclosure of such material, nonpublic
        information unless the Company has in good faith determined that the matters
        relating to such notice do not constitute material non-public information
        about
        the Company. In the event of a breach of the foregoing covenant by the Company,
        any of its Subsidiaries, or any of their respective officers, directors,
        employees and agents, in addition to any other remedy provided herein or
        in the
        Transaction Documents, the Holder shall have the right to make a public
        disclosure, in the form of a press release, public advertisement or otherwise,
        of such material, nonpublic information with the prior approval by the Company.
        Holder shall not have any liability to the Company, any of its Subsidiaries,
        or
        any of their respective officers, directors, employees, stockholders or agents
        for any such disclosure. Subject to the foregoing, none of the Company, any
        of
        its Subsidiaries or the Holder shall issue any press releases or any other
        public statements in respect of the transactions contemplated hereby;
provided,
        however,
        that
        the Company shall be entitled, without the prior approval of the Holder,
        to make
        any press release or other public disclosure in respect of such transactions
        (i) in substantial conformity with the 8-K Filing and contemporaneously
        therewith and (ii) as is required by applicable Requirements of
        Law.

       

      [Signature
        Page Follows]

       

      
        
          
          

        

        
          58

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF, the Company has caused this Note to be duly executed as
        of the
        Issuance Date set out above.

      
        	 	 	 
	 	
                COMANCHE
                  CLEAN ENERGY CORPORATION

              
	 
 	 
 	 
 
	
              	By:  	
              
	 	
                

                Name:
                  Thomas Cauchois

              
	 	
                Title:
                  Chairman

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        I

       

      COMANCHE
        CLEAN ENERGY CORPORATION

       

      CONVERSION
        NOTICE

       

      Reference
        is made to the Senior Secured Convertible Note (the "Note")
        issued
        to the undersigned by Comanche Clean Energy Corporation (the "Company").
        In
        accordance with and pursuant to the Note, the undersigned hereby elects to
        convert the Conversion Amount (as defined in the Note) of the Note indicated
        below into Ordinary Shares, par value $0.001 per share (the "Shares")
        of the
        Company, as of the date specified below.

       

      
        	
                Date
                  of Conversion:

              
	
                
                  

                

              
	
                Aggregate
                  Conversion Amount to be converted:

              
	
                
                  

                

              
	
                Please
                  confirm the following information:

              
	 
	
                Conversion
                  Price:

              
	
                
                  

                

              
	
                Number
                  of Shares to be issued:

              
	
                
                  

                

              
	
                Installment
                  Amounts to be reduced and amount of reduction:

              
	
                
                  

                

              
	
                Please
                  issue the Shares into which the Note is being converted in the
                  following
                  name and to the following address:

              
	 	 
	
                Issue
                  to:

              	 
	
                

              
	
                

              
	
                

              
	 
	
                Facsimile
                  Number:

              
	
                
                  

                

              
	
                Authorization:

              
	
                
                  

                

              
	
                By:

              
	
                
                  

                

              
	
                Title:

              
	
                
                  

                

              
	
                Dated:

              
	
                

              
	
                Account
                  Number:

              
	
                
                  

                

              
	
                  (if
                  electronic book entry transfer)

              
	 
	
                Transaction
                  Code Number:

              
	
                
                  

                

              
	
                  (if
                  electronic book entry transfer)

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ACKNOWLEDGMENT

       

      The
        Company hereby acknowledges this Conversion Notice and hereby directs the
        Transfer Agent to issue the above indicated number of Shares in accordance
        with
        the Transfer Agent Instructions dated _______ __, 200_ from the Company and
        acknowledged and agreed to by [____________].

      
        	 	 	 
	 	
                [___________________].

              
	 
 	 
 	 
 
	
              	By:  	
              
	 	
                

                Name:

              
	 	
                Title:

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Schedule
        14(u)

      

      Transactions
        with Affiliates

      

      The
        Demand Notes as described in Schedule 3(n) of the Securities Purchase Agreement.
        

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Schedule
        28(vv)

      

      Existing
        Permitted Indebtedness

      

      The
        Demand Notes as described in Schedule 3(n) of the Securities Purchase Agreement.
        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Schedule
        28(iii)(vii)

      

      Indebtedness
        existing on the date hereof in the form of deferred compensation to employees,
        

      directors
        and/or officers of the Company or any Subsidiary

      

      As
        disclosed in the audited financials of the Company, as of December 31, 2006,
        the
        Company has incurred contingent salary obligations to employees of the Company’s
        Brazilian affiliates in the amount of $129,171 and since that date have incurred
        another approximately $63,071 of such deferred and contingent obligations.
        

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      Schedule
        28(jjj)(vi)

      

      Existing
        Permitted Liens

      

      NoneFORM
      OF WARRANT

     

    NEITHER
      THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR
      THE
      SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
      LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
      (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL,
      IN A
      GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
      OR
      (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.
      NOTWITHSTANDING THE FOREGOING, SUBJECT TO COMPLIANCE WITH APPLICABLE SECURITIES
      LAWS, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
      ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. ANY
      TRANSFEREE OF THIS WARRANT SHOULD CAREFULLY REVIEW THE TERMS OF THIS WARRANT,
      INCLUDING SECTION 6(d) HEREOF. 

     

    COMANCHE
      CLEAN ENERGY CORPORATION

    

      
        WARRANT
          TO
          PURCHASEORDINARY
          SHARES

      

    

     

    Warrant
      No.: ____________  

    Number
      of
      Ordinary Shares, par value $.001 per Share

    Date
      of
      Issuance: ____ ____, 2007 ("Issuance
      Date")

     

    Comanche
      Clean Energy Corporation, a Cayman Islands corporation (the "Company"),
      hereby certifies that, for good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, [BUYER], the registered holder
      hereof or its permitted assigns (the "Holder"),
      is
      entitled, subject to the terms set forth below, to purchase from the Company,
      at
      the Exercise Price (as defined below) then in effect, upon surrender of this
      Warrant to Purchase Ordinary Shares (including any Warrants to Purchase Ordinary
      Shares issued in exchange, transfer or replacement hereof, the "Warrant"),
      at
      any time or times on or after the Issuance Date, but not after 11:59 P.M.,
      New
      York time, on the Expiration Date (as defined below) fully paid nonassessable
      Ordinary Shares (as defined below) (the
      "Warrant
      Shares").
      Except as otherwise defined herein, capitalized terms in this Warrant shall
      have
      the meanings set forth in Section 15. This Warrant is one of the Warrants to
      purchase Ordinary Shares (the "Shares
      Warrants")
      issued
      pursuant to that certain Securities Purchase Agreement (Shares and Warrants),
      dated as of March 30, 2007 (the "Subscription
      Date"),
      by
      and among the Company and the buyers (the "Buyers")
      referred to therein (the "Securities
      Purchase Agreement (Shares and Warrants)").

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    1. EXERCISE
      OF WARRANT.

     

    (a)
       Mechanics
      of Exercise.
      Subject
      to the terms and conditions hereof (including, without limitation, the
      limitations set forth in Section 1(f)), this Warrant may be exercised by the
      Holder on any day on or after the Issuance Date, in whole or in part, by
      (i) delivery of a written notice, in the form attached hereto as
Exhibit
      A
      (the
      "Exercise
      Notice"),
      of
      the Holder's election to exercise this Warrant and (ii) (A) payment to the
      Company of an amount equal to the applicable Exercise Price multiplied by the
      number of Warrant Shares as to which this Warrant is being exercised (the
      "Aggregate
      Exercise Price")
      in
      cash or by wire transfer of immediately available funds or (B) by notifying
      the
      Company that this Warrant is being exercised pursuant to a Cashless Exercise
      (as
      defined in Section 1(d)). The Holder shall not be required to deliver the
      original Warrant in order to effect an exercise hereunder. Execution and
      delivery of the Exercise Notice with respect to less than all of the Warrant
      Shares shall have the same effect as cancellation of the original Warrant and
      issuance of a new Warrant evidencing the right to purchase the remaining number
      of Warrant Shares. On or before the first Business Day following the date on
      which the Company has received each of the Exercise Notice and the Aggregate
      Exercise Price (or notice of a Cashless Exercise) (the "Exercise
      Delivery Documents"),
      the
      Company shall transmit by facsimile an acknowledgment of confirmation of receipt
      of the Exercise Delivery Documents to the Holder and the Company's transfer
      agent (the "Transfer
      Agent").
      On or
      before the third Business Day following the date on which the Company has
      received all of the Exercise Delivery Documents (the "Share
      Delivery Date"),
      the
      Company shall (X) if legends are not required to be placed on certificates
      for
      Shares pursuant to the Securities Purchase Agreement (Shares and Warrants),
      provided that the Transfer Agent is participating in The Depository Trust
      Company ("DTC")
      Fast
      Automated Securities Transfer Program, and provided, further, that the Holder
      is
      eligible to receive shares through DTC, credit such aggregate number of Ordinary
      Shares to which the Holder is entitled pursuant to such exercise to the Holder's
      or its designee's balance account with DTC through its Deposit Withdrawal Agent
      Commission System, or (Y) if the Transfer Agent is not participating in the
      DTC
      Fast Automated Securities Transfer Program or the Holder is not eligible to
      receive shares through DTC, issue and dispatch by overnight courier to the
      address as specified in the Exercise Notice, a certificate, registered in the
      Company's share register in the name of the Holder or its designee, for the
      number of Ordinary Shares to which the Holder is entitled pursuant to such
      exercise. The Holder undertakes that whenever the Company credits securities
      as
      set forth in clause (X) of the preceding sentence, upon receipt of notice from
      the Company that the applicable registration statement is not, or no longer
      is,
      effective in respect of the resale of such securities, the Holder will not
      transfer such securities (other than (I) in connection with a transfer, wherein
      the Holder provides the Company with an opinion of counsel, in a generally
      acceptable form, to the effect that such transfer may be made without
      registration under the applicable requirements of the 1933 Act, or (II) the
      Holder provides the Company with reasonable assurances that the transfer may
      be
      effected pursuant to Rule 144 or Rule 144A) until the Company notifies the
      Holder that the applicable registration statement becomes effective (again).
      Upon delivery of the Exercise Delivery Documents or notification to the Company
      of a Cashless Exercise referred to in Section 1(d), the Holder shall be deemed
      for all corporate purposes to have become the holder of record of the Warrant
      Shares in respect of which this Warrant has been exercised, irrespective of
      the
      date such Warrant Shares are credited to the Holder's DTC account or the date
      of
      delivery of the certificates evidencing such Warrant Shares, as the case may
      be.
      If this Warrant is submitted in connection with any exercise pursuant to this
      Section 1(a) and the number of Warrant Shares represented by this Warrant
      submitted for exercise is greater than the number of Warrant Shares being
      acquired upon an exercise, then the Company shall as soon as practicable and
      in
      no event later than three (3) Business Days after any exercise (the
      "Warrant
      Delivery Date")
      and at
      its own expense, issue a new Warrant (in accordance with Section 6(d))
      representing the right to purchase the number of Warrant Shares purchasable
      immediately prior to such exercise under this Warrant, less the number of
      Warrant Shares in respect of which this Warrant is exercised. No fractional
      Ordinary Shares are to be issued upon the exercise of this Warrant, but rather
      the number of Ordinary Shares to be issued shall be rounded up to the nearest
      whole number. The Company shall pay any and all taxes, including without
      limitation, all documentary stamp, transfer or similar taxes, or other
      incidental expense that may be payable with respect to the issuance and delivery
      of Warrant Shares upon exercise of this Warrant.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (b)
       Exercise
      Price.
      For
      purposes of this Warrant, "Exercise
      Price"
      means
      $5.30 per Ordinary Share, as adjusted as provided herein.

     

    (c)
       Company's
      Failure to Timely Deliver Securities.
      If
      within three (3) Trading Days after the Company's receipt of the facsimile
      copy
      of Exercise Delivery Documents, the Company fails to (x) issue and deliver
      a
      certificate for that number of Ordinary Shares to which the Holder is entitled
      and register such Ordinary Shares on the Company's share register or to credit
      the Holder's balance account with DTC for the number of Ordinary Shares to
      which
      the Holder is entitled upon such Holder's exercise of this Warrant or (y) issue
      and deliver to the Holder by the Warrant Delivery Date a new Warrant for the
      number of Ordinary Shares to which such Holder is entitled pursuant to Section
      2(a) hereof, and if on or after such Trading Day the Holder purchases (in an
      open market transaction or otherwise) Ordinary Shares to deliver in satisfaction
      of a sale by the Holder of Ordinary Shares issuable upon such exercise that
      the
      Holder anticipated receiving from the Company (a "Buy-In"),
      then
      the Company shall, within three (3) Business Days after the Holder's request
      and
      in the Holder's discretion, either (i) pay cash to the Holder in an amount
      equal
      to the Holder's total purchase price (including brokerage commissions, if any)
      for the Ordinary Shares so purchased (the "Buy-In
      Price"),
      at
      which point the Company's obligation to deliver such certificate (and to issue
      such Ordinary Shares) shall terminate, or (ii) promptly honor its obligation
      to
      deliver to the Holder a certificate or certificates representing such Ordinary
      Shares or if legends are not required to be placed on certificates for Ordinary
      Shares pursuant to the Securities Purchase Agreement (Shares and Warrants),
      provided that the Transfer Agent is participating in DTC Fast Automated
      Securities Transfer Program, upon the request of the Holder, credit such
      aggregate number of Warrant Shares to which the Holder is entitled pursuant
      to
      such exercise to the Holder's or its designee's balance account with DTC through
      its Deposit Withdrawal Agent Commission system and pay cash to the Holder in
      an
      amount equal to the excess (if any) of the Buy-In Price over the product of
      (A)
      such number of Ordinary Shares, times (B) the Closing Bid Price on the date
      of
      exercise.

     

    (d)
       Cashless
      Exercise.
       Notwithstanding
      anything contained herein to the contrary, if within 210 days of the Issuance
      Date a Registration Statement (as defined in the Registration Rights Agreement)
      covering the Warrant Shares that are the subject of the Exercise Notice (the
      "Unavailable
      Warrant Shares")
      is not
      available for the resale of such Unavailable Warrant Shares, the Holder may,
      in
      its sole discretion, exercise this Warrant in whole or in part and, in lieu
      of
      making the cash payment otherwise contemplated to be made to the Company upon
      such exercise in payment of the Aggregate Exercise Price, elect instead to
      receive upon such exercise the "Net Number" of Ordinary Shares determined
      according to the following formula (a "Cashless
      Exercise"):

     

    Net
      Number = (A
      x
      B) - (A x C)

                                         
      B

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    For
      purposes of the foregoing formula:

     

    A=
      the
      total number of Ordinary Shares in respect of which this Warrant is then being
      exercised.

     

    B=
      the
      Closing Sale Price of the Ordinary Shares (as reported by Bloomberg) on the
      Trading Day immediately preceding the date of the Exercise Notice.

     

    C=
      the
      Exercise Price then in effect for the applicable Warrant Shares at the time
      of
      such exercise.

     

    (e)
       Disputes.
      In the
      case of a dispute as to the determination of the Exercise Price or the
      arithmetic calculation of the Warrant Shares, the Company shall promptly issue
      to the Holder the number of Warrant Shares that are not disputed and resolve
      such dispute in accordance with Section 12.

     

    (f)
       Limitations
      on Exercises 

     

    (i)
       Beneficial
      Ownership.
      The
      Company shall not effect the exercise of this Warrant, and the Holder shall
      not
      have the right to exercise this Warrant, to the extent that after giving effect
      to such exercise, such Person (together with such Person's affiliates) would
      beneficially own in excess of 9.99% (the "Maximum
      Percentage")
      of the
      number of Ordinary Shares outstanding immediately after giving effect to such
      exercise. For purposes of the foregoing sentence, the aggregate number of
      Ordinary Shares beneficially owned by such Person and its affiliates shall
      include the number of Ordinary Shares issuable upon exercise of this Warrant
      with respect to which the determination of such sentence is being made, but
      shall exclude the number of Ordinary Shares which would be issuable upon (i)
      exercise of the remaining, unexercised portion of this Warrant beneficially
      owned by such Person and its affiliates and (ii) exercise or conversion of
      the
      unexercised or unconverted portion of any other securities of the Company
      beneficially owned by such Person and its affiliates (including, without
      limitation, any convertible notes or convertible preferred stock or warrants)
      subject to a limitation on conversion or exercise analogous to the limitation
      contained herein. Except as set forth in the preceding sentence, for purposes
      of
      this paragraph, beneficial ownership shall be calculated in accordance with
      Section 13(d) of the Securities Exchange Act of 1934, as amended (the
      "Exchange
      Act").
      For
      purposes of this Warrant, in determining the number of outstanding Ordinary
      Shares, the Holder may rely on the number of outstanding Ordinary Shares as
      reflected in (1) the Company's most recent periodic report under the Exchange
      Act or other public filing with the Securities and Exchange Commission, as
      the
      case may be, (2) a more recent public announcement by the Company or (3) any
      other written notice by the Company or the Transfer Agent setting forth the
      number of Ordinary Shares outstanding. For any reason at any time, upon the
      written or oral request of the Holder, the Company shall within one Business
      Day
      confirm orally and in writing to the Holder the number of Ordinary Shares then
      outstanding. In any case, the number of outstanding Ordinary Shares shall be
      determined after giving effect to the conversion or exercise of securities
      of
      the Company, including the Convertible Notes issued pursuant to the Securities
      Purchase Agreement (Notes and Warrants), dated as of March 30, 2007 among the
      Company and certain investors (the “Securities
      Purchase Agreement (Notes and Warrants)”), the
      Warrants to Purchase Ordinary Shares issued
      pursuant to the Securities Purchase Agreement (Notes and Warrants) (the
“SPA
      (Notes) Warrants” and
      collectively with the Shares Warrants, the “SPA Warrants”)
      and the
      other Shares Warrants, by the Holder and its affiliates since the date as of
      which such number of outstanding Ordinary Shares was reported. By written notice
      to the Company, the Holder may from time to time increase or decrease the
      Maximum Percentage to any other percentage not in excess of 9.99% specified
      in
      such notice (except such percentage may be exceeded with respect to a Holder
      who
      has made a written request for a waiver of such limitation); provided that
      (i)
      any such increase will not be effective until the sixty-first (61st)
      day
      after such notice is delivered to the Company, and (ii) any such increase or
      decrease will apply only to the Holder and not to any other holder of SPA
      Warrants.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (ii)
       Principal
      Market Regulation.
      The
      Company shall not be obligated to issue any Ordinary Shares upon exercise of
      this Warrant, and the Holder of this Warrant shall not have the right to receive
      upon exercise of this Warrant any Ordinary Shares, if the issuance of such
      Ordinary Shares would exceed the aggregate number of Ordinary Shares which
      the
      Company may issue upon conversion or exercise, as applicable, of the SPA Notes
      and the SPA Warrants without breaching the Company's obligations under the
      rules
      or regulations of the applicable Eligible Market (the number of shares which
      may
      be issued without violating such rules and regulations, the "Exchange
      Cap"),
      except that such limitation shall not apply in the event that the Company
      (A) obtains the approval of its stockholders as required by the applicable
      rules of such Eligible Market for issuances of Ordinary Shares in excess of
      such
      amount or (B) obtains a written opinion from outside counsel to the Company
      that
      such approval is not required, which opinion shall be reasonably satisfactory
      to
      the Required Holders. Unless and until such approval or written opinion is
      obtained, no Buyer shall be issued in the aggregate, upon conversion or exercise
      or otherwise, as applicable, of SPA Notes and SPA Warrants, Ordinary Shares
      in
      an amount greater than the difference of (A) the product of the Exchange Cap
      multiplied by a fraction the numerator of which is the total number of Ordinary
      Shares issuable to such Buyer upon the exercise of all such Buyer's SPA Warrants
      and the conversion or all such Buyer's SPA Notes and the denominator of which
      is
      the total number of Ordinary Shares issuable upon the exercise of all the SPA
      Warrants and conversion of all the SPA Notes minus (B)(ii) the aggregate number
      of (x) Conversion Shares that have been issued to such Holder prior to such
      time
      upon conversion of any SPA Notes and (y) Warrant Shares that have been issued
      to
      such Holder prior to such time upon exercise of any SPA Warrants (in respect
      of
      each Buyer, the "Exchange
      Cap Allocation").
      In
      the event that any Buyer shall sell or otherwise transfer any of such Buyer's
      SPA Warrants, the transferee shall be allocated a pro rata portion of such
      Buyer's Exchange Cap Allocation, and the restrictions of the prior sentence
      shall apply to such transferee with respect to the portion of the Exchange
      Cap
      Allocation allocated to such transferee. In the event that any holder shall
      exercise all of such holder's SPA Warrants into a number of Ordinary Shares
      which, in the aggregate, is less than such holder's Exchange Cap Allocation,
      then the difference between such holder's Exchange Cap Allocation and the number
      of Ordinary Shares actually issued to such holder shall be allocated to the
      respective Exchange Cap Allocations of the remaining holders of SPA Warrants
      on
      a pro rata basis in proportion to the aggregate number of Warrant Shares and
      Conversion Shares issuable upon exercise of the SPA Warrants and conversion
      of
      the SPA Notes (at the then prevailing conversion price), if any, then held
      by
      each such holder.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    2. ADJUSTMENT
      OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES.
      The
      Exercise Price and the number of Warrant Shares shall be adjusted from time
      to
      time as follows: 

     

    (a)
       Adjustment
      upon Issuance of Ordinary Shares.
      If and
      whenever on or after the Subscription Date, the Company issues or sells, or
      in
      accordance with this Section 2(a) is deemed to have issued or sold, any
Ordinary
      Shares
      (including, without limitation, the issuance or sale of Ordinary
      Shares
      owned or
      held by or for the account of the Company and the issuance of any Ordinary
      Shares, Options or Convertible Securities in exchange for any non-convertible
      security such as a non-convertible note, but excluding Ordinary
      Shares
      deemed
      to have been issued or sold by the Company in connection with any Excluded
      Securities) for a consideration per share (the "New
      Issuance Price")
      less
      than a price (the "Applicable
      Price")
      equal
      to the Exercise Price in effect immediately prior to such issue or sale or
      deemed issuance or sale (the foregoing a "Dilutive
      Issuance"),
      then,
      (x) in the event of a Dilutive Issuance on or prior to the first anniversary
      of
      the Issuance Date, the Exercise Price in effect at the opening of business
      on
      the day next following such Dilutive Issuance shall be adjusted to equal the
      New
      Issuance Price, and (y) in the event of a Dilutive Issuance anytime following
      the first anniversary of the Issuance Date, the Exercise Price in effect at
      the
      opening of business on the day next following such Dilutive Issuance shall
      be
      reduced to an amount equal to the
      product of (A) the Exercise Price in effect immediately prior to such
      Dilutive Issuance and (B) the quotient determined by dividing (1) the
      sum of (I) the product derived by multiplying the Exercise Price in effect
      immediately prior to such Dilutive Issuance and the number of Ordinary Shares
      Deemed Outstanding immediately prior to such Dilutive Issuance plus
      (II) the consideration, if any, received by the Company upon such Dilutive
      Issuance, by (2) the product derived by multiplying (I) the Exercise Price
      in effect immediately prior to such Dilutive Issuance by (II) the number of
      Ordinary Shares Deemed Outstanding immediately after such Dilutive Issuance.
      Upon
      each
      such adjustment of the Exercise Price hereunder, the number of Warrant Shares
      shall be adjusted to the number of Ordinary Shares determined by multiplying
      the
      Exercise Price in effect immediately prior to such adjustment by the number
      of
      Warrant Shares acquirable upon exercise of this Warrant immediately prior to
      such adjustment and dividing the product thereof by the Exercise Price resulting
      from such adjustment. For purposes of determining the adjusted Exercise Price
      under this Section 2(a), the following shall be applicable:

     

    (i)
       Issuance
      of Options.
      If the
      Company in any manner grants any Options whether or not immediately exercisable
      and the lowest price per share for which one Ordinary Share is issuable upon
      the
      exercise of any such Option or upon conversion, exercise or exchange of any
      Convertible Securities issuable upon exercise of any such Option is less than
      the Applicable Price, then such Ordinary Share shall be deemed to be outstanding
      and to have been issued and sold by the Company at the time of the granting
      or
      sale of such Option for such price per share. For purposes of this Section
      2(a)(i), the "lowest price per share for which one Ordinary Share is issuable
      upon the exercise of any such Options or upon conversion, exercise or exchange
      of any Convertible Securities issuable upon exercise of any such Option" shall
      be equal to the sum of the lowest amounts of consideration (if any) received
      or
      receivable (but excluding any contingency amounts) by the Company with respect
      to any one Ordinary Share upon the granting or sale of the Option, upon exercise
      of the Option and upon conversion, exercise or exchange of any Convertible
      Security issuable upon exercise of such Option. No further adjustment of the
      Exercise Price or number of Warrant Shares shall be made upon the actual
      issuance of such Ordinary Shares or of such Convertible Securities upon the
      exercise of such Options or upon the actual issuance of such Ordinary Shares
      upon conversion, exercise or exchange of such Convertible Securities.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (ii)
       Issuance
      of Convertible Securities.
      If the
      Company in any manner issues or sells any Convertible Securities whether or
      not
      immediately convertible and the lowest price per share for which one Ordinary
      Share is issuable upon the conversion, exercise or exchange thereof is less
      than
      the Applicable Price, then such Ordinary Share shall be deemed to be outstanding
      and to have been issued and sold by the Company at the time of the issuance
      or
      sale of such Convertible Securities for such price per share. For the purposes
      of this Section 2(a)(ii), the "lowest price per share for which one Ordinary
      Share is issuable upon the conversion, exercise or exchange thereof" shall
      be
      equal to the sum of the lowest amounts of consideration (if any) received or
      receivable (but excluding any contingency amounts) by the Company with respect
      to one Ordinary Share upon the issuance or sale of the Convertible Security
      and
      upon conversion, exercise or exchange of such Convertible Security. No further
      adjustment of the Exercise Price or number of Warrant Shares shall be made
      upon
      the actual issuance of such Ordinary Shares upon conversion, exercise or
      exchange of such Convertible Securities, and if any such issue or sale of such
      Convertible Securities is made upon exercise of any Options for which adjustment
      of this Warrant has been or is to be made pursuant to other provisions of this
      Section 2(a), no further adjustment of the Exercise Price or number of Warrant
      Shares shall be made by reason of such issue or sale. 

     

    (iii)
       Change
      in Option Price or Rate of Conversion.
      If the
      purchase price provided for in any Options, the additional consideration, if
      any, payable upon the issue, conversion, exercise or exchange of any Convertible
      Securities, or the rate at which any Convertible Securities are convertible
      into
      or exercisable or exchangeable for Ordinary Shares increases or decreases at
      any
      time, the Exercise Price and the number of Warrant Shares in effect at the
      time
      of such increase or decrease shall be adjusted to the Exercise Price and the
      number of Warrant Shares which would have been in effect at such time had such
      Options or Convertible Securities provided for such increased or decreased
      purchase price, additional consideration or increased or decreased conversion
      rate, as the case may be, at the time initially granted, issued or sold. For
      purposes of this Section 2(a)(iii), if the terms of any Option or Convertible
      Security that was outstanding as of the date of issuance of this Warrant are
      increased or decreased in the manner described in the immediately preceding
      sentence, then such Option or Convertible Security and the shares of Common
      Stock deemed issuable upon exercise, conversion or exchange thereof shall be
      deemed to have been issued as of the date of such increase or decrease. No
      adjustment pursuant to this Section 2(a) shall be made if such adjustment would
      result in an increase of the Exercise Price then in effect or a decrease in
      the
      number of Warrant Shares.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (iv)
       Calculation
      of Consideration Received.
      In case
      any Option is issued in connection with the issue or sale of other securities
      of
      the Company, together comprising one integrated transaction in which no specific
      consideration is allocated to such Options by the parties thereto, the Options
      will be deemed to have been issued for a consideration of $0.001. For avoidance
      of doubt, such $0.001 consideration will be added to any consideration received
      upon exercise of the Option to determine the "lowest price per share for which
      one Ordinary Share issuable upon the exercise of any such Options or upon
      conversion, exercise or exchange of any Convertible Securities issuable upon
      exercise of any such Option" pursuant to clause (i) above. If any Ordinary
      Shares, Options or Convertible Securities are issued or sold or deemed to have
      been issued or sold for cash, the consideration received therefor will be deemed
      to be the net amount received by the Company therefor. If any Ordinary Shares,
      Options or Convertible Securities are issued or sold for a consideration other
      than cash, the amount of such consideration received by the Company will be
      the
      fair value of such consideration, except where such consideration consists
      of
      securities, in which case the amount of consideration received by the Company
      will be the Closing Sale Price of such security on the date of receipt. If
      any
      Ordinary Shares, Options or Convertible Securities are issued to the owners
      of
      the non-surviving entity in connection with any merger in which the Company
      is
      the surviving entity, the amount of consideration therefor will be deemed to
      be
      the fair value of such portion of the net assets and business of the
      non-surviving entity as is attributable to such Ordinary Shares, Options or
      Convertible Securities, as the case may be. The fair value of any consideration
      other than cash or securities will be determined jointly by the Company and
      the
      Required Holders. If such parties are unable to reach agreement within ten
      (10)
      days after the occurrence of an event requiring valuation (the "Valuation
      Event"),
      the
      fair value of such consideration will be determined within ten (10) Business
      Days after the tenth day following the Valuation Event by an independent,
      reputable appraiser jointly selected by the Company and the Required Holders.
      The determination of such appraiser shall be final and binding upon all parties
      absent manifest error and the fees and expenses of such appraiser shall be
      borne
      by the Company.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (v)
       Record
      Date.
      If the
      Company takes a record of the holders of shares of Common Stock for the purpose
      of entitling them (A) to receive a dividend or other distribution payable
      in shares of Common Stock, Options or in Convertible Securities or (B) to
      subscribe for or purchase shares of Common Stock, Options or Convertible
      Securities, then such record date will be deemed to be the date of the issue
      or
      sale of the shares of Common Stock deemed to have been issued or sold upon
      the
      declaration of such dividend or the making of such other distribution or the
      date of the granting of such right of subscription or purchase, as the case
      may
      be.

     

    (b) Adjustment
      upon Subdivision or Combination of Common Stock.
      If and
      whenever on or after the Subscription Date, the Company (A) pays a dividend
      or makes a distribution in either case payable in Ordinary Shares on any class
      of shares of capital stock of the Company, (B) subdivides its outstanding
      Ordinary Shares into a greater number of shares, (C) combines its outstanding
      Ordinary Shares into a smaller number of shares or (D) issues any shares of
      capital stock by reclassification of its Ordinary Shares, then, and in each
      such
      case, (X) the aggregate number of Warrant Shares for which this Warrant is
      exercisable (the "Warrant
      Share Number")
      immediately prior to such event shall be adjusted (and any other appropriate
      actions shall be taken by the Company) so that the Warrant Holder shall be
      entitled to receive upon exercise of this Warrant the number of Ordinary Shares
      or other securities of the Company that it would have owned or would have been
      entitled to receive upon or by reason of any of the events described above,
      had
      this Warrant been exercised immediately prior to the occurrence of such event
      and (Y) the Exercise Price payable upon the exercise of this Warrant shall
      be
      adjusted by multiplying such Exercise Price immediately prior to such adjustment
      by a fraction, the numerator of which shall be the number of Warrant Shares
      issuable upon the exercise of this Warrant immediately prior to such adjustment,
      and the denominator of which shall be the number of Warrant Shares issuable
      immediately thereafter. An adjustment made pursuant to this Section 2 shall
      become effective immediately upon the opening of business on the day next
      following the record date (subject to Section 2(f) below) in the case of a
      dividend or distribution and shall become effective immediately upon the opening
      of business on the day next following the effective date in the case of a
      subdivision, combination or reclassification.

     

    (c)
      Other
      Events.
      If any
      event occurs of the type contemplated by the provisions of this Section 2 but
      not expressly provided for by such provisions (including, without limitation,
      the granting of stock appreciation rights, phantom stock rights or other rights
      with equity features), then the Board of Directors will make an appropriate
      adjustment in the Exercise Price and the number of Warrant Shares so as to
      protect the rights of the Holder; provided that no such adjustment pursuant
      to
      this Section 2(d) will increase the Exercise Price or decrease the number of
      Warrant Shares as otherwise determined pursuant to this Section 2.

     

    (d)
      Notice
      of Adjustment.
      Upon
      the occurrence of any event which requires any adjustment or readjustment of
      the
      Exercise Price or change in number or type of stock, securities and/or other
      property issuable upon exercise of this Warrant, then, and in each such case,
      the Company shall promptly (i) file with the Transfer Agent an officer's
      certificate setting forth the adjusted Exercise Price after such adjustment
      and
      setting forth a brief statement of the facts requiring such adjustment, which
      certificate shall be conclusive evidence of the correctness of such adjustment
      absent manifest error, (ii) make a public announcement of such adjustment
      or readjustment and (iii) give notice thereof to the holder hereof, which
      notice shall state the adjusted Exercise Price, any change in the number or
      type
      of stock, securities and/or other property issuable upon exercise of this
      Warrant, setting forth in reasonable detail the method of calculation and the
      facts upon which such calculation is based and the effective date of such
      adjustment.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (e)
      No
      adjustment in the Exercise Price shall be required unless such adjustment would
      require a cumulative decrease of at least $0.01 in such price; provided,
      however,
      that
      any adjustments that by reason of this Section 2 are not required to be made
      shall be carried forward and taken into account in any subsequent adjustment
      until made. All calculations under this Section 2(f) shall be made to the
      nearest cent (with $0.005 being rounded upward) or to the nearest one-tenth
      of a
      share (with $0.05 of a share being rounded upward), as the case may
      be.

     

    (f)
      In
      any case in which Section 2 provides that an adjustment shall become effective
      on the day next following the record date for an event, the Company may without
      penalty defer until the occurrence of such event issuing to the Holders of
      any
      SPA Warrants exercised after such record date and before the occurrence of
      such
      event the additional Ordinary Shares issuable upon such exercise by reason
      of
      the adjustment required by such event over and above the Ordinary Shares
      issuable upon such conversion before giving effect to such
      adjustment.

     

    (g)
      If
      any action or transaction would require adjustment of the Exercise Price
      pursuant to more than one subsection of this Section 2, only one adjustment
      shall be made, and such adjustment shall be the amount of adjustment that that
      results in the lowest Exercise Price.

     

    3. PURCHASE
      RIGHTS; FUNDAMENTAL TRANSACTIONS.

     

    (a)
       Purchase
      Rights.
      In
      addition to any adjustments pursuant to Section 2 above, if at any time the
      Company grants, issues or sells any Options, Convertible Securities or rights
      to
      purchase stock, warrants, securities or other property pro rata to the record
      holders of any class of Ordinary Shares (the "Purchase
      Rights"),
      then
      the Holder will be entitled to acquire, upon the terms applicable to such
      Purchase Rights, the aggregate Purchase Rights which the Holder could have
      acquired if the Holder had held the number of Ordinary Shares acquirable upon
      complete exercise of this Warrant (without regard to any limitations on the
      exercise of this Warrant) immediately before the date on which a record is
      taken
      for the grant, issuance or sale of such Purchase Rights, or, if no such record
      is taken, the date as of which the record holders of Ordinary Shares are to
      be
      determined for the grant, issue or sale of such Purchase Rights.

     

    (b)
       Fundamental
      Transactions.
      If, at
      any time while this Warrant is outstanding there is a Fundamental Transaction,
      then the Holder shall have the right thereafter to receive, upon exercise of
      this Warrant, the same amount and kind of securities, cash or property as it
      would have been entitled to receive upon the occurrence of such Fundamental
      Transaction if it had been, immediately prior to such Fundamental Transaction,
      the holder of the number of Warrant Shares then issuable upon exercise in full
      of this Warrant (the "Alternate
      Consideration").
      For
      purposes of any such exercise, the determination of the Exercise Price shall
      be
      appropriately adjusted to apply to such Alternate Consideration based on the
      amount of Alternate Consideration issuable in respect of one share of Common
      Stock in such Fundamental Transaction, and the Company shall apportion the
      Exercise Price among the Alternate Consideration in a reasonable manner
      reflecting the relative value of any different components of the Alternate
      Consideration. If holders of Common Stock are given any choice as to the
      securities, cash or property to be received in a Fundamental Transaction, then
      the Holder shall be given the same choice as to the Alternate Consideration
      it
      receives upon any exercise of this Warrant following such Fundamental
      Transaction. At the Holder's option and request made prior to the consummation
      of a Fundamental Transaction, any successor to the Company or surviving entity
      in such Fundamental Transaction shall, either (1) issue to the Holder a new
      warrant substantially in the form of this Warrant and consistent with the
      foregoing provisions and evidencing the Holder's right to purchase the Alternate
      Consideration for the aggregate Exercise Price upon exercise thereof, or (2)
      in
      the event that the amount of the Alternate Consideration issuable per Ordinary
      Share in such Fundamental Transaction is less than or equal to 120% of the
      Exercise Price, purchase the Warrant from the Holder for a purchase price,
      payable in cash within five Trading Days after such request (or, if later,
      on
      the effective date of the Fundamental Transaction), equal to the Black Scholes
      Value of the remaining unexercised portion of this Warrant on the date of such
      request. The terms of any agreement pursuant to which a Fundamental Transaction
      is effected shall include terms requiring any such successor or surviving entity
      to comply with the provisions of this paragraph (b) and insuring that the
      Warrant (or any such replacement security) will be similarly adjusted upon
      any
      subsequent transaction analogous to a Fundamental Transaction.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    4. Representations,
      Warranties And Covenants of the Company.  The
      Company hereby covenants and agrees that the Company will not, by amendment
      of
      its Articles of Association, Memorandum of Association or through any
      reorganization, transfer of assets, consolidation, merger, scheme of
      arrangement, dissolution, issue or sale of securities, or any other voluntary
      action, avoid or seek to avoid the observance or performance of any of the
      terms
      of this Warrant, and will at all times in good faith carry out all the
      provisions of this Warrant and take all action as may be required to protect
      the
      rights of the Holder. Without limiting the generality of the foregoing, the
      Company (i) shall not increase the par value of any Ordinary Shares
      receivable upon the exercise of this Warrant above the Exercise Price then
      in
      effect, (ii) shall take all such actions as may be necessary or appropriate
      in order that the Company may validly and legally issue fully paid and
      nonassessable Ordinary Shares upon the exercise of this Warrant, and (iii)
      shall, so long as any of the Shares Warrants are outstanding, take all action
      necessary to reserve and keep available out of its authorized and unissued
      Ordinary Shares, solely for the purpose of effecting the exercise of the Shares
      Warrants, 125% of the number of Ordinary Shares as shall from time to time
      be
      necessary to effect the exercise of the Shares Warrants then outstanding
      (without regard to any limitations on exercise).

     

    (b)
       This
      Warrant is, and any Shares Warrants issued in substitution for or replacement
      of
      this Warrant will upon issuance be, duly authorized and validly
      issued.

     

    (c)
       All
      Warrant Shares that may be issued upon the exercise of the rights represented
      by
      this Warrant will, upon issuance, be validly issued, fully paid and
      nonassessable and free from all taxes and Liens with respect to the issuance
      thereof.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (d)
       So
      long
      as any of the Shares Warrants are outstanding, the Company will, and will cause
      each of its subsidiaries to (i) conduct its operations in the ordinary course
      of
      business consistent with past practice, (ii) maintain its corporate existence
      and (iii) maintain and protect all material Intellectual Property used in the
      business of the Company and its subsidiaries.

     

    (e)
       This
      Warrant will be binding upon any entity succeeding to the Company by merger,
      consolidation or acquisition of all or substantially all of the assets of the
      Company and it shall be a condition to the closing of any of the foregoing
      transactions that such successor entity (i) complies with the terms of, and
      satisfies the conditions in, Section 3(b) above and (ii) is a publicly traded
      corporation whose common stock is listed for trading or quoted on an Eligible
      Market.

     

    (f)
       Insufficient
      Authorized Shares.
      From
      the date of this Warrant until the date the rights represented by this Warrant
      may no longer be exercised, the Company will at all times have authorized and
      reserved at least 125% of the number of Ordinary Shares needed to provide for
      the exercise of the rights then represented by this Warrant (without regard
      to
      any limitations on exercises) (the "Required
      Reserve Amount").
      The
      initial number of Ordinary Shares reserved for exercises of the Shares Warrants
      and each increase in the number of Ordinary Shares so reserved shall be
      allocated pro rata among the Holders of the Shares Warrants based on the number
      of Shares Warrants then held by each Holder of the Shares Warrants or increase
      in the number of reserved Ordinary Shares, as the case may be. In the event
      any
      Holder of the Shares Warrants shall sell or otherwise transfer any of such
      Holder's Shares Warrants, each transferee shall be allocated a pro rata portion
      of the number of Ordinary Shares reserved for such transferor. Any Ordinary
      Shares reserved and allocated to any Person that ceases to hold any Shares
      Warrants shall be allocated to the remaining Holders of the Shares Warrants,
      pro
      rata based on the number of Shares Warrants then held by such Holders. If at
      any
      time while any of the Shares Warrants remain outstanding the Company does not
      have the Required Reserve Amount authorized and reserved (an “Authorized Share
      Failure”), then the Company shall immediately take all action necessary to
      increase the Company's authorized Ordinary Shares to an amount sufficient to
      allow the Company to reserve the Required Reserve Amount for the Shares Warrants
      then outstanding. Without limiting the generality of the foregoing sentence,
      promptly after the date of the occurrence of an Authorized Share Failure, but
      in
      no event later than fifteen (15) days after the occurrence of such, the Company
      shall take all action necessary to increase the Company's Authorized Ordinary
      Shares to an amount sufficient to allow the Company to reserve the Required
      Reserved Amount for the Warrants then outstanding, including obtaining the
      approval of its Shareholders as required by the applicable rules of the
      Principal Market. In connection with such actions, the Company shall provide
      each Shareholder with a proxy statement and shall use its best efforts to
      solicit its stockholders' approval of such increase in authorized Ordinary
      Shares and to cause its board of directors to recommend to the stockholders
      that
      they approve such proposal. 

     

    (g)
       Listing.
      The
      Company shall promptly secure the listing or quotation of the Ordinary Shares
      issuable upon the exercise of this Warrant upon the Initial Principal Market
      or
      upon such other Eligible Market, if any, upon which Ordinary Shares are then
      listed or quoted (subject to official notice of issuance upon exercise of this
      Warrant) and shall maintain, so long as any other Ordinary Shares shall be
      so
      listed or quoted, such listing or quotation of all Ordinary Shares from time
      to
      time issuable upon the exercise of this Warrant; and the Company shall so list
      or apply for quotation on each Eligible Market, and shall maintain such listing
      or quotation of, any other shares of capital stock of the Company issuable
      upon
      the exercise of this Warrant if and so long as any shares of the same class
      shall be listed or quoted on such Eligible Market.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (h)
       Blue
      Sky Laws.
      The
      Company shall, on or before the date of issuance of any Warrant Shares, take
      such actions as the Company shall reasonably determine are necessary to qualify
      the Warrant Shares for, or obtain exemption for the Warrant Shares for, sale
      to
      the holder of this Warrant upon the exercise hereof under applicable securities
      or "blue sky" laws of the states of the United States, and shall provide
      evidence of any such action so taken to the holder of this Warrant prior to
      such
      date; provided,
      however,
      that
      the Company shall not be required in connection therewith or as a condition
      thereto to (i) qualify to do business in any jurisdiction where it would
      not otherwise be required to qualify but for this Section 4(h)(i),
      (ii) subject itself to general taxation in any such jurisdiction or
      (iii) file a general consent to service of process in any such
      jurisdiction. 

     

    5. WARRANT
      HOLDER NOT DEEMED A STOCKHOLDER.
      Except
      as otherwise specifically provided herein, the Holder, solely in such Person's
      capacity as a holder of this Warrant, shall not be entitled to vote or receive
      dividends or be deemed the holder of share capital of the Company for any
      purpose, nor shall anything contained in this Warrant be construed to confer
      upon the Holder, solely in such Person's capacity as the Holder of this Warrant,
      any of the rights of a stockholder of the Company or any right to vote, give
      or
      withhold consent to any corporate action (whether any reorganization, issue
      of
      stock, reclassification of stock, consolidation, merger, conveyance or
      otherwise), receive notice of meetings, receive dividends or subscription
      rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares
      which such Person is then entitled to receive upon the due exercise of this
      Warrant. In addition, nothing contained in this Warrant shall be construed
      as
      imposing any liabilities on the Holder to purchase any securities (upon exercise
      of this Warrant or otherwise) or as a stockholder of the Company, whether such
      liabilities are asserted by the Company or by creditors of the Company.
      Notwithstanding this Section 5, the Company shall provide the Holder with copies
      of the same notices and other information given to the stockholders of the
      Company generally, contemporaneously with the giving thereof to the
      stockholders.

     

    6. REISSUANCE
      OF WARRANTS.

     

     

    (a)
      Transfer of Warrant.

     

    (i)
       The
      Company shall maintain at its principal executive offices (or such other office
      or agency of the Company as it may designate by notice to the Holder), a
      register for this Warrant, in which the Company shall record the name and
      address of the person in whose name this Warrant has been issued, as well as
      the
      name and address of each transferee. The Company may treat the person in whose
      name any Warrant is registered on the register as the owner and Holder thereof
      for all purposes, notwithstanding any notice to the contrary, but in all events
      recognizing any transfers made in accordance with the terms of this
      Warrant.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (ii)
       The
      Holder may assign or transfer some or all of its rights hereunder, subject
      to
      compliance with the 1933 Act and the provisions of Section 2 of the
      Securities Purchase Agreement (Shares and Warrants) without the consent of
      the
      Company.

     

    (iii)
       The
      Company is obligated to register the Warrant Shares for resale under the 1933
      Act pursuant to the Registration Rights Agreement. The Ordinary Shares issuable
      upon exercise of this Warrant shall constitute Registrable Securities (as such
      term is defined in the Registration Rights Agreement). Each Holder of this
      Warrant shall be entitled to all the benefits afforded to a Holder of any such
      Registrable Securities under the Registration Rights Agreement and such Holder,
      by its acceptance of this Warrant, agrees to be bound by and to comply with
      the
      terms and conditions of the Registration Rights Agreement applicable to such
      Holder as a Holder of such Registrable Securities.

     

    (b)
       Lost,
      Stolen or Mutilated Warrant.
      Upon
      receipt by the Company of evidence reasonably satisfactory to the Company of
      the
      loss, theft, destruction or mutilation of this Warrant, and, in the case of
      loss, theft or destruction, of any indemnification undertaking by the Holder
      to
      the Company in customary form and, in the case of mutilation, upon surrender
      and
      cancellation of this Warrant, the Company shall execute and deliver to the
      Holder a new Warrant (in accordance with Section 6(d)) representing the right
      to
      purchase the Warrant Shares then underlying this Warrant.

     

    (c)
       Exchangeable
      for Multiple Warrants.
      This
      Warrant is exchangeable, upon the surrender hereof by the Holder at the
      principal office of the Company, for a new Warrant or Warrants (in accordance
      with Section 6(d)) representing in the aggregate the right to purchase the
      number of Warrant Shares then underlying this Warrant, and each such new Warrant
      will represent the right to purchase such portion of such Warrant Shares as
      is
      designated by the Holder at the time of such surrender; provided,
      however,
      that no
      Warrants for fractional Ordinary Shares shall be given.

     

    (d)
       Book
      Entry.
      Notwithstanding anything to the contrary set forth herein, upon exercise of
      this
      Warrant in accordance with the terms hereof, the Holder shall not be required
      to
      physically surrender this Warrant to the Company unless it is being exercised
      for all of the Warrant Shares represented by the Warrant. The Holder and the
      Company shall each maintain records showing the number of Warrant Shares
      exercised and issued and the dates of such exercises or shall use such other
      method, reasonably satisfactory to the other, so as not to require physical
      surrender of this Warrant upon each such exercise. In the event of any dispute
      or discrepancy, such records of the Holder establishing the number of Warrant
      Shares to which the Holder is entitled shall be controlling and determinative
      in
      the absence of demonstrable error. In the event the Company disputes such
      records of the Holder, the terms and provisions of Section 12 hereof shall
      apply. Notwithstanding the foregoing, if this Warrant is exercised as aforesaid,
      the Holder may not transfer this Warrant unless the holder first physically
      surrenders this Warrant to the Company, whereupon the Company will forthwith
      issue and deliver upon the order of the Holder a new Warrant of like tenor,
      registered as the Holder may request, representing in the aggregate the
      remaining number of Warrant Shares represented by this Warrant. The Holder
      and
      any assignee, by acceptance of this Warrant, acknowledge and agree that, by
      reason of the provisions of this paragraph, following exercises of any portion
      of this Warrant, the number of Warrant Shares represented by this Warrant may
      be
      less than the number stated on the face hereof. 

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    7. NOTICES.
      Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms of this Warrant must be in writing and will be deemed
      to
      have been delivered: (i) upon receipt, when delivered personally; (ii) upon
      receipt, when sent by facsimile (provided confirmation of transmission is
      mechanically or electronically generated and kept on file by the sending party);
      or (iii) one (1) Business Day after deposit with a nationally recognized
      overnight delivery service, in each case properly addressed to the party to
      receive the same. The addresses and facsimile numbers for such communications
      shall be:

     

    If
      to the
      Company:

     

    Comanche
      Clean Energy Corporation

     

    Comanche
      Clean Energy Corporation

    c/o
      Maples & Calder Corporate Services Ltd.

    PO
      Box
      309 GT

    Ugland
      House

    South
      Church Street

    George
      Town

    Grand
      Cayman, Cayman Islands

    Tel:
      345-949-8066

    Fax:
      345-949-8080

    Attention:
      Graham Lockington

    Email:
       Graham.Lockington@MAPLESANDCALDER.com
      

     

    With
      a
      copy to:

     

    Comanche
      Clean Energy Corporation

    c/o
      FondElec

    One
      Dock
      Street

    Stamford,
      Ct. 06902 USa

    Tel:
      203-326-4570

    Fax:
      203-326-4578

    Attention:
      Thomas Cauchois

    Email:
      tcauchois@fondelec.com

     

    If
      to a
      Holder of this Warrant, to it at the address and facsimile number set forth
      on
      the Schedule of Buyers to the Securities Purchase Agreement (Shares and
      Warrants), with copies to such holder’s representatives as set forth on such
      Schedule of Buyers, or, in the case of the holder or any other Person named
      above, at such other address and/or facsimile number and/or to the attention
      of
      such other person as the recipient party has specified by written notice to
      the
      other party in accordance with this Section 7 at least five (5) Business
      Days prior to the effectiveness of such change. Written confirmation of receipt
      (A) given by the recipient of such notice, consent, waiver or other
      communication, (B) mechanically or electronically generated by the sender’s
      facsimile machine containing the time, date, recipient facsimile number and
      an
      image of the first page of such transmission or (C) provided by a
      nationally recognized overnight delivery service shall be rebuttable evidence
      of
      personal service, receipt by facsimile or deposit with a nationally recognized
      overnight delivery service in accordance with clause (i), (ii) or (iii)
      above, respectively.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    8. AMENDMENT
      AND WAIVER.
      Except
      as otherwise provided herein, the provisions of this Warrant may be amended
      and
      the Company may take any action herein prohibited, or omit to perform any act
      herein required to be performed by it, only if the Company has obtained the
      written consent of the Required Holders; provided that no such action may
      increase the exercise price of any Shares Warrant or decrease the number of
      shares or class of stock obtainable upon exercise of any Shares Warrant without
      the written consent of the Holder. No such amendment shall be effective to
      the
      extent that it applies to less than all of the holders of the SPA (Notes)
      Warrants then outstanding. No consideration shall be offered or paid to any
      Person to amend or consent to a waiver or modification of any provision of
      this
      Warrant unless the same consideration also is offered to all of the Holders
      of
      the Shares Warrants. 

     

    9. GOVERNING
      LAW; JURISDICTION.
      This
      Warrant shall be governed by and construed and enforced in accordance with,
      and
      all questions concerning the construction, validity, interpretation and
      performance of this Warrant shall be governed by, the internal laws of the
      State
      of New York, without giving effect to any choice of law or conflict of law
      provision or rule (whether of the State of New York or any other jurisdictions)
      that would cause the application of the laws of any jurisdictions other than
      the
      State of New York. Each party hereby irrevocably submits to the exclusive
      jurisdiction of the state and federal courts sitting in The City of New York,
      Borough of Manhattan, for the adjudication of any dispute hereunder or in
      connection herewith or with any transaction contemplated hereby or discussed
      herein, and hereby irrevocably waives, and agrees not to assert in any suit,
      action or proceeding, any claim that it is not personally subject to the
      jurisdiction of any such court, that such suit, action or proceeding is brought
      in an inconvenient forum or that the venue of such suit, action or proceeding
      is
      improper. Each party hereby irrevocably waives personal service of process
      and
      consents to process being served in any such suit, action or proceeding by
      mailing a copy thereof to such party at the address for such notices to it
      under
      this Warrant and agrees that such service shall constitute good and sufficient
      service of process and notice thereof. Nothing contained herein shall be deemed
      to limit in any way any right to serve process in any manner permitted by
      law.

     

    10. CONSTRUCTION;
      HEADINGS.
      This
      Warrant shall be deemed to be jointly drafted by the Company and all the Buyers
      and shall not be construed against any person as the drafter hereof. The
      headings of this Warrant are for convenience of reference and shall not form
      part of, or affect the interpretation of, this Warrant.

     

    11. SEVERABILITY.
      If any
      provision of this Warrant or the application thereof becomes or is declared
      by a
      court of competent jurisdiction to be illegal, void or unenforceable, the
      remainder of the terms of this Warrant will continue in full force and effect.
      

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    12. DISPUTE
      RESOLUTION.
      In the
      case of a dispute as to the determination of the Exercise Price or the
      arithmetic calculation of the Warrant Shares, the Company shall submit the
      disputed determinations or arithmetic calculations via facsimile within two
      Business Days of receipt of the Exercise Notice giving rise to such dispute,
      as
      the case may be, to the Holder. If the Holder and the Company are unable to
      agree upon such determination or calculation of the Exercise Price or the
      Warrant Shares within three Business Days of such disputed determination or
      arithmetic calculation being submitted to the Holder, then the Company shall,
      promptly, and in any event within two (2) Business Days submit via facsimile
      (a)
      the disputed determination of the Exercise Price to an independent, reputable
      investment bank agreed to by the Company and the Holder or (b) the disputed
      arithmetic calculation of the Warrant Shares to the Company's independent,
      outside accountant. The Company shall cause at its expense the investment bank
      or the accountant, as the case may be, to perform the determinations or
      calculations and notify the Company and the Holder of the results no later
      than
      five (5) Business Days from the time it receives the disputed determinations
      or
      calculations. If such investment bank or accountant agrees with the Company’s
      determination or calculations (as the case may be), then the Holder shall
      reimburse the Company for the expense it incurred to cause the investment
      bank/accountant to perform such determination or calculation (the “Evaluation
      Expense”).
      If
      Exercise Price or the Warrant Shares as determined or calculated (as the case
      may be) by such investment bank or accountant (the “Third
      Party Determination”)
      falls
      in between the Exercise Price or Warrant Shares as determined or calculated
      (as
      the case may be) by the Company (the “Company
      Determination”)
      and
      the Exercise Price or the Warrant Shares as determined or calculated (as the
      case may be) by the Holder (the “Holder
      Determination”),
      then
      the Holder shall reimburse the Company for a fraction of the Evaluation Expense
      of which the denominator shall be the absolute difference between the Company
      Determination and the Holder Determination and of which the numerator shall
      be
      the absolute difference between the Holder Determination and the Third Party
      Determination.  If the Third Party Determination of the Exercise Price is
      greater than the Company Determination of the Exercise Price or the Third Party
      Determination of the number of Warrant Shares is less than the Company
      Determination of the Warrant Shares, then the Holder shall reimburse the Company
      for the entire Evaluation Expense. If the Third Party Determination of the
      Exercise Price is lower than the Holder Determination of the Exercise Price
      or
      the Third Party Determination of the number of Warrant Shares is greater than
      the Holder Determination of the number of Warrant Shares, then the Holder shall
      not reimburse the Company for any Evaluation Expense. Such investment bank's
      or
      accountant's determination or calculation, as the case may be, shall be binding
      upon all parties absent demonstrable error. 

     

    13. REMEDIES,
      OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF.
      The
      remedies provided in this Warrant shall be cumulative and in addition to all
      other remedies available under this Warrant and the other Transaction Documents,
      at law or in equity (including a decree of specific performance and/or other
      injunctive relief), and nothing herein shall limit the right of the Holder
      to
      pursue actual damages for any failure by the Company to comply with the terms
      of
      this Warrant. The Company acknowledges that a breach by it of its obligations
      hereunder will cause irreparable harm to the Holder and that the remedy at
      law
      for any such breach may be inadequate. The Company therefore agrees that, in
      the
      event of any such breach or threatened breach, the holder of this Warrant shall
      be entitled, in addition to all other available remedies, to an injunction
      restraining any breach, without the necessity of showing economic loss and
      without any bond or other security being required. 

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    14. NOTICE
      OF CERTAIN EVENTS.
      The
      Company will give written notice to the Holder of this Warrant at least ten
      (10)
      Business Days prior to the date on which the Company closes its books or takes
      a
      record (A) with respect to any dividend or distribution upon the Common Stock,
      (B) with respect to any pro rata subscription offer to Holders of Shares or
      (C)
      for determining rights to vote in respect of any Fundamental Transaction,
      dissolution or liquidation, provided that such information shall be made known
      to the public prior to or in conjunction with such notice being provided to
      such
      Holder to the extent it is material non-public information. The Company will
      also give written notice to the Holder of this Warrant at least ten (10)
      Business Days prior to the date on which any Fundamental Transaction,
      dissolution or liquidation will take place, provided that such information
      shall
      be made known to the public prior to or in conjunction with such notice being
      provided to such Holder to the extent it is material non-public
      information.

     

    15. CERTAIN
      DEFINITIONS.
      For
      purposes of this Warrant, the following terms shall have the following
      meanings:

     

    (i)
      "Black
      Scholes Value"
      means
      the value of this Warrant based on the Black and Scholes Option Pricing Model
      obtained from the "OV" function on Bloomberg determined as of the day
      immediately following the public announcement of the applicable Fundamental
      Transaction and reflecting (i) a risk-free interest rate corresponding to the
      U.S. Treasury rate for a period equal to the remaining term of this Warrant
      as
      of such date of request and (ii) an expected volatility of the Common Stock
      equal to the greater of 60% and the 100 day volatility obtained from the HVT
      function on Bloomberg..

     

    (ii) "Bloomberg"
      means
      Bloomberg Financial Markets.

     

    (ii) "Business
      Day"
      means
      any day other than Saturday, Sunday or other day on which commercial banks
      in
      The City of New York are authorized or required by law to remain
      closed.

     

    (iv) "Closing
      Bid Price"
      and
      "Closing
      Sale Price"
      means,
      for any security as of any date, the last closing bid price and last closing
      trade price, respectively, for such security on the Principal Market, as
      reported by Bloomberg, or, if the Principal Market begins to operate on an
      extended hours basis and does not designate the closing bid price or the closing
      trade price, as the case may be, then the last bid price or last trade price,
      respectively, of such security prior to 4:00:00 p.m., New York time, as reported
      by Bloomberg, or, if the Principal Market is not the principal securities
      exchange or trading market for such security, the last closing bid price or
      last
      trade price, respectively, of such security on the principal securities exchange
      or trading market where such security is listed or traded as reported by
      Bloomberg, or if the foregoing do not apply, the last closing bid price or
      last
      trade price, respectively, of such security in the over-the-counter market
      on
      the electronic bulletin board for such security as reported by Bloomberg, or,
      if
      no closing bid price or last trade price, respectively, is reported for such
      security by Bloomberg, the average of the bid prices, or the ask prices,
      respectively, of any market makers for such security as reported in the "pink
      sheets" by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.).
      If
      the Closing Bid Price or the Closing Sale Price cannot be calculated for a
      security on a particular date on any of the foregoing bases, the Closing Bid
      Price or the Closing Sale Price, as the case may be, of such security on such
      date shall be the fair market value as mutually determined by the Company and
      the Holder. If the Company and the Holder are unable to agree upon the fair
      market value of such security, then such dispute shall be resolved pursuant
      to
      Section 12. All such determinations to be appropriately adjusted for any stock
      dividend, stock split, stock combination or other similar transaction during
      the
      applicable calculation period.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    (i)
       "Convertible
      Securities"
      means
      any stock or securities (other than Options) directly or indirectly convertible
      into or exercisable or exchangeable for Ordinary Shares.

     

    (ii)
       "Eligible
      Market"
      means
      the Initial Principal Market, The New York Stock Exchange, Inc., the American
      Stock Exchange, The NASDAQ Global Select Market, The NASDAQ Global Market or
      The
      NASDAQ Capital Market.

     

    (iii)
       "Excluded
      Securities"
      has the
      meaning set forth in the SPA Notes.

     

    (iv)
       "Expiration
      Date"
      means
      the date that is sixty months after the Issuance Date; provided that if such
      date falls on a day other than a Business Day or on which trading does not
      take
      place on the applicable Eligible Market (a "Holiday"),
      the
      next date that is not a Holiday.

     

    (v)
       "Fundamental
      Transaction"
      means
      that the Company shall, directly or indirectly, in one or more related
      transactions effected after the Issuance Date, (i) consolidate or merge with
      or
      into (whether or not the Company is the surviving corporation) another Person,
      or (ii) sell, assign, transfer, convey or otherwise dispose of all or
      substantially all of the properties or assets of the Company to another Person,
      or (iii) be the subject of a purchase, tender or exchange offer by another
      Person that is accepted by the holders of more than 50% of the outstanding
      shares of Voting Shares (not including any shares of Voting Shares held by
      the
      Person or Persons making or party to, or associated or affiliated with the
      Persons making or party to, such purchase, tender or exchange offer), or (iv)
      consummate a stock purchase agreement or other business combination (including,
      without limitation, a reorganization, recapitalization, spin-off or scheme
      of
      arrangement) with another Person whereby such other Person acquires more than
      the 50% of the outstanding Ordinary Shares (not including any Ordinary Shares
      held by the other Person or other Persons making or party to, or associated
      or
      affiliated with the other Persons making or party to, such stock purchase
      agreement or other business combination), or (v) reclassify or change the
      outstanding Ordinary Shares (other than a change in par value, or from par
      value
      to no par value, or from no par value to par value, or as a result of a
      subdivision or combination), or (vi) any "person" or "group" (as these terms
      are
      used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall
      become the "beneficial owner" (as defined in Rule 13d-3 under the Exchange
      Act),
      directly or indirectly, of 50% of the aggregate ordinary voting power
      represented by issued and outstanding Shares.

     

    (vi)
       "Initial
      Principal Market"
      means
      the National Association of Securities Dealers Inc.'s OTC Bulletin
      Board.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    (vii)
       "Options"
      means
      any rights, warrants or options to subscribe for or purchase Ordinary Shares
      or
      Convertible Securities.

     

    (viii)
       "Ordinary
      Shares"
      means
      (i) the Company's Ordinary Shares, par value $0.001 per share, and
      (ii) any share capital into which such Ordinary Shares shall have been
      changed or any share capital resulting from a reclassification of such Ordinary
      Shares.

     

    (ix)
       "Ordinary
      Shares Deemed Outstanding"
      means,
      at any given time, the number of Ordinary Shares actually outstanding at such
      time, plus the number of Ordinary Shares deemed to be outstanding pursuant
      to
      Section 2(a) hereof regardless of whether the Options or Convertible Securities
      are actually exercisable at such time, but excluding any Ordinary Shares owned
      or held by or for the account of the Company or issuable upon conversion of
      the
      SPA Notes and exercise of the SPA Warrants.

     

    (x)
       "Parent
      Entity"
      of a
      Person means an entity that, directly or indirectly, controls the applicable
      Person and whose common stock or equivalent equity security is quoted or listed
      on an Eligible Market, or, if there is more than one such Person or Parent
      Entity, the Person or Parent Entity with the largest public market
      capitalization as of the date of consummation of the Fundamental
      Transaction.

     

    (xi)
       "Person"
      means
      an individual, a limited liability company, a partnership, a joint venture,
      a
      corporation, a trust, an unincorporated organization, any other entity and
      a
      government or any department or agency thereof.

     

    (xii)
       "Principal
      Market"
      means,
      from time to time, the Eligible Market upon which the Common Stock is admitted
      or listed and principally trades.

     

    (xiii)
       "Registration
      Rights Agreement"
      means
      that certain registration rights agreement by and among the Company and the
      Buyers.

     

    (xiv)
       "Required
      Holders"
      means
      the holders of the SPA Warrants representing at least a majority of Ordinary
      Shares issuable upon exercise of the SPA Warrants then outstanding (without
      regard to any limitations on exercise thereof); provided, that any SPA Warrant
      that is held by an Affiliate of the Company shall not be deemed to be
      outstanding for purposes of the determination of “Required
      Holders.”

     

    (xv)
       "SPA
      Notes"
      means
      those certain Secured Convertible Notes due _____, 2012 issued pursuant to
      the
      Securities Purchase Agreement (Notes and Warrants) dated as of March 30, 2007
      among the Company and the buyers listed on the Schedule of Buyers
      thereto.

     

    (xvi)
       "Successor
      Entity"
      means
      the Person (or, if so elected by the Required Holders, the Parent Entity) formed
      by, resulting from or surviving any Fundamental Transaction or the Person (or,
      if so elected by the Required Holders, the Parent Entity) with which such
      Fundamental Transaction shall have been entered into.

     

    (xvii)
       "Trading
      Day"
      means
      any day on which trading the Ordinary Shares is reported on the Initial
      Principal Market, or, if the Initial Principal Market is not the principal
      trading market for the Common Stock, then on the Eligible Market that is the
      principal securities exchange or securities market on which the Ordinary Shares
      are then traded; provided that "Trading Day" shall not include any day on which
      the Ordinary Shares are scheduled to trade on such exchange or market for less
      than 4.5 hours or any day that the Ordinary Shares are suspended from trading
      during the final hour of trading on such exchange or market (or if such exchange
      or market does not designate in advance the closing time of trading on such
      exchange or market, then during the hour ending at 4:00:00 p.m., New York
      Time).

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    (xviii)
       "Voting
      Shares"
      of a
      Person means capital stock of such Person of the class or classes pursuant
      to
      which the holders thereof have the general voting power to elect, or the general
      power to appoint, at least a majority of the board of directors, managers or
      trustees of such Person (irrespective of whether or not at the time capital
      stock of any other class or classes shall have or might have voting power by
      reason of the happening of any contingency).

     

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Warrant to Purchase Ordinary Shares to be duly executed
      as of the Issuance Date set out above.

    
      	 	 	 
	 	
              COMANCHE
                CLEAN ENERGY CORPORATION

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name: Thomas
                Cauchois

              Title:
                Chairman 

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

    

    EXERCISE
      NOTICE

     

    TO
      BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS

    WARRANT
      TO PURCHASE ORDINARY SHARES

    

    COMANCHE
      CLEAN ENERGY CORPORATION

     

    The
      undersigned holder hereby exercises the right to purchase _________________
      of
      the Ordinary Shares of Comanche Clean Energy Corporation (the “Ordinary
      Shares”),
      a
      Cayman Islands corporation (the "Company"),
      pursuant to the Warrant to Purchase Ordinary Shares (Warrant No: ______________)
      (as adjusted by all the partial exercises thereof prior to the date hereof,
      the
      "Warrant";
      The
      total number of Ordinary Shares issuable upon exercise of the Warrant, the
      “Warrant
      Shares”).
      Capitalized terms used herein and not otherwise defined shall have the
      respective meanings set forth in the Warrant.

    

    1.
      Form
      of Exercise Price. The Holder intends that payment of the Exercise Price shall
      be made as:

    

    ___________ a
      "Cash
      Exercise" in respect of ___________ Warrant Shares; and/or

    

    When
      available pursuant to the terms of the Warrant, ___________ a
      "Cashless Exercise" in respect of ___________ Warrant Shares. 

    

    2.
      Cash
      Exercise. In the event that the holder has elected a Cash Exercise in respect
      of
      some or all of the Warrant Shares to be issued pursuant hereto, the undersigned
      holder hereby exercises the right to purchase _________________ of the Ordinary
      Shares ("Warrant
      Shares")
      of
      Comanche Clean Energy Corporation, a Cayman Islands corporation (the
      "Company"),
      evidenced by the attached Warrant to Purchase Ordinary Shares (the "Warrant").
      Capitalized terms used herein and not otherwise defined shall have the
      respective meanings set forth in the Warrant.

    

    3.
      Payment of Exercise Price. The holder shall pay the Aggregate Exercise Price
      in
      the sum of $___________________ to the Company in accordance with the terms
      of
      the Warrant.

    

    4.
      Delivery of Warrant Shares. The Company shall deliver to the holder __________
      Warrant Shares in accordance with the terms of the Warrant.

    

    Issue
      to:
      ___________________________________________________      

     

    Address: ___________________________________________________________

     

    Facsimile
      Number: ____________________________________________________

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Authorization: _______________________

     

    By: _______________________________  

     

    Title: _____________________________

     

    Dated: ____________________________

     

    DTC
      Participant Number and Name (if electronic book entry transfer):
      ____________________________  

     

    Account
      Number (if electronic book entry transfer):
      ____________________________    

     

    The
      undersigned holder hereby acknowledges that the execution and delivery of this
      Exercise Notice with respect to less than all of Warrant Shares shall have
      the
      same effect as cancellation of the Warrant and issuance of a new warrant
      evidencing the right to purchase the remaining number of Warrant Shares.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    ACKNOWLEDGMENT

     

    The
      Company hereby acknowledges this Exercise Notice and hereby directs Interwest
      Transfer Company Inc. to issue the above indicated number of Ordinary Shares
      in
      accordance with the Transfer Agent Instructions dated ____________________,
      2007
      from the Company and acknowledged and agreed to by Interwest Transfer Company
      Inc. 

    
      	 	 	 
	 	
              COMANCHE
                CLEAN ENERGY CORPORATION

            
	 
 	 
 	 
 
	
            	By:  	 
	 	
              

              Name:

              Title:

            

    

     

    
      
        
        

      

      
        -3-

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