Document:

cleb-2083007ex108.htm

    Exhibit
      10.8

     

    STOCK
      OPTION AGREEMENT

    

    

    THIS
      AGREEMENT is made and entered into as of the date last below written by and
      between CleanTech Biofuels, Inc., a Delaware corporation (the
“Company”), and _________________ (the
“Optionee”).

    

    WHEREAS,
      the Optionee was made a Director of the Company as of the ____ day of
      __________, 2007; and

    

    WHEREAS,
      the Company, in order to induce the Optionee to accept a position as a Director
      of the Company and to contribute to the success of the Company, agreed to grant
      the Optionee an option to acquire a proprietary interest in the Company through
      the purchase of shares of stock of the Company; and

    

    WHEREAS,
      the Company adopted the Company’s 2007 Stock Option Plan (the
“Plan”) under which the Company is authorized to grant stock
      options to certain employees, directors and consultants of the Company;
      and

    

    WHEREAS,
      the Committee (as defined in the Plan) has determined that the Company should,
      in recognition of Optionee’s contributions, grant an option to the Optionee
      pursuant to the terms of this Agreement and the Plan; and

    

    WHEREAS,
      the Optionee desires to accept the option.

    

    NOW,
      THEREFORE, in consideration of the mutual covenants set forth herein
      and for other valuable consideration hereinafter set forth, the parties agree
      as
      follows:

    

    1.           Grant
      of Option.  The Company hereby grants a Qualified Stock
      Option in the amount and subject to the terms provided in this Agreement (the
      “Option”) effective as of the _____ day of __________, 2007
      (the “Grant Date”).  If the Option is a Nonqualified
      Stock Option, the Option is not intended to be and shall not be treated as
      a
      qualified incentive stock option as defined under Section 422 of the Internal
      Revenue Code of 1986, as amended (the “Code”).  If
      the Option is a Qualified Stock Option, the Option is intended to be and shall
      be treated as a qualified incentive stock option as defined under Section 422
      of
      the Internal Revenue Code of 1986, as amended (the
“Code”).  The foregoing notwithstanding, to the
      extent the aggregate fair market value of stock with respect to which Qualified
      Stock Options are exercisable for the first time by Optionee in any given
      calendar year exceeds $100,000, such Qualified Stock Options shall be treated
      as
      Nonqualified Stock Options under the Plan.  In such event,
Section 8 of this Agreement shall not apply to shares acquired
      by Optionee as a result of the exercise of such Nonqualified Stock
      Options.

    

    2.           Shares.  The
      shares of stock subject to the Option shall be the Company’s authorized but
      unissued or reacquired Common Stock, $0.001 par value (the “Common
      Stock”).

    

    3.           Number
      of Shares.  The number of shares of Common Stock which the
      Optionee may purchase under the Option is _______.

    

    4.           Term
      and Exercise of Option.  The Option shall be first
      exercisable with respect to one half (1/2) of the shares subject to the Option
      commencing on the First Anniversary of Grant Date, with respect to another
      one
      half (1/2) of the shares subject to the Option commencing on the Second
      Anniversary of Grant Date, if Optionee is a member of the Board of Directors
      of
      the Company as of each of such dates.  The exercise period for the
      Option shall end upon the earliest of the following:

    

    
      	
               

            	
              a.

            	
              The
                date three (3) months after the Optionee’s termination of Optionee as a
                member of the Board of Directors of the Company for any reason other
                than
                retirement, disability, or death;
                or

            

    

    

    
      	
               

            	
              b.

            	
              The
                date one-year after termination of the Optionee as a Member of the
                Board
                of Directors of the Company due to retirement or disability;
                or

            

    

    

    
      	
               

            	
              c.

            	
              The
                date one (1) year after the Optionee’s death, if and only if the Optionee
                was a member of the Board of Directors of the Company on the date
                three
                (3) months prior to the Optionee’s
                death.

            

    

    

    
      	
               

            	
              d.

            	
              The
                date seven (7) years after the Grant
                Date.

            

    

    

    To
      the
      extent the Option for any of the shares is not exercised within the foregoing
      periods, the Option shall expire and thereafter shall be null and
      void.

    

    Notwithstanding
      anything herein to the contrary, if Optionee is employed by the Company upon
      the
      effective date of any merger, consolidation, sale of all (or substantially
      all)
      of the assets of the Company, or other business combination involving the sale
      or transfer of all (or substantially all) of the capital stock or assets of
      the
      Company in which the Company is not the surviving entity, or if it is the
      surviving entity, either (i) it does not survive as an operating ongoing concern
      in substantially the same line of business, or (ii) it is controlled by persons
      or entities previously unaffiliated with the Company, the Option shall become
      exercisable immediately prior to the consummation of any of the foregoing events
      with respect to one hundred percent (100%) of the shares subject to the
      Option.

    

    5.           Manner
      of Exercise, Purchase Price, and Payment.  Exercise of the
      Option shall be made by delivery to the Company by Optionee (or other person
      entitled to exercise the Option as provided hereunder) of (i) an executed
“Notice of Exercise of Stock Option and Record of Stock
      Transfer”, in the form attached hereto as Exhibit A
      and incorporated herein by reference, and (ii) payment of the aggregate purchase
      price for shares purchased pursuant to the exercise.  The price per
      share of the Common Stock which the Optionee may purchase hereunder is
      $0.15.  The purchase price shall be payable in full in United States
      dollars in cash or by certified check upon the exercise of the
      Option.

    

    6.           Restriction
      on Transfer.  This Option is not transferable by the Optionee
      other than by will or the laws of descent and distribution, and is exercisable,
      during the Optionee’s lifetime, only by the Optionee.  Upon the death
      of the Optionee, the executors or administrators of the Optionee’s estate, or
      any person or persons who shall have acquired the right to exercise the Option
      by bequest, inheritance, or otherwise by reason of the death of the Optionee
      shall have the right to exercise the Option, provided that such exercise occurs
      not more than seven (7) years from the Grant Date and also within one (1) year
      of the Optionee’s death.

    

    7.           Restrictions
      on Exercise.  The Option shall be exercisable subject to the
      following restrictions:

    

    
      	
               

            	
              a.

            	
              The
                Optionee must be a director of the Company at all times during the
                period
                beginning on the Grant Date and ending three (3) months before the
                earlier
                of the date of exercise of the Option or the date of the Optionee’s death;
                provided, however, that if the Optionee terminates employment with
                the
                Company due to retirement or disability, then the aforementioned
                period
                shall be extended to end thirty-six (36) months before the date of
                exercise of the Option.  If the Option is a Qualified Stock
                Option, the foregoing notwithstanding, the Optionee recognizes and
                acknowledges by the Optionee’s signature below that it is anticipated that
                the favorable tax consequences afforded by Section 422 of the Code
                will
                only be available to the Optionee if the Optionee exercises the Option
                within three (3) months of termination of employment with the Company
                or,
                in the event of the Optionee’s termination of employment due to
                disability, within one (1) year of such termination;
                and

            

    

    

    
      	
               

            	
              b.

            	
              So
                long as the Optionee remains a director of the Company, the Option
                may be
                exercised in whole or in part; provided, however, that the Optionee
                shall
                not exercise part of the Option for fewer than twenty-five (25) shares
                at
                one time unless the total number of shares subject to the Option
                is fewer
                than twenty-five (25), in which case the Optionee shall not exercise
                the
                Option for fewer than all of such
                shares.

            

    

    

    8.           Restriction
      on Disposition of Common Stock.  It is recognized that, under
      current tax laws, if the Option is a Qualified Stock Option and the Optionee
      disposes of Common Stock acquired pursuant to the Optionee’s exercise of the
      Option within two (2) years after the Grant Date or within one (1) year after
      the transfer of such Common Stock to the Optionee, then the Optionee must
      recognize ordinary income, as opposed to capital gain, on such
      disposition.  Further, the Optionee hereby consents to enter into and
      execute such agreements restricting the sale, assignment, transfer, or other
      disposition of the Common Stock by Optionee as may be required by the Committee
      and/or Board of Directors of the Company upon any exercise of the Option granted
      hereunder.

    

    9.           Other
      Restrictions.  The Option shall be subject to all of the
      terms, conditions, and restrictions of the Plan, the terms of which are
      incorporated herein by reference.  The Option shall in all respects be
      interpreted in accordance with the Plan.  To the extent the terms of
      the Plan and this Agreement or any other document pertaining to the Option
      are
      inconsistent, the Plan shall prevail.  The Committee shall interpret
      and construe the Plan and this Agreement and its interpretations and
      determinations shall be conclusive and binding on the parties hereto and any
      other person claiming an interest hereunder, with respect to any issue
      pertaining to the Option or the Plan.

    

    10.           Obligation
      of the Optionee.  The Optionee shall at no time be obligated
      to exercise the Option.

    

    11.           Rights
      as a Shareholder.  The Optionee and any transferee of the
      Option shall have no rights as a shareholder of the Company with respect to
      any
      shares of Common Stock which are the subject of the Option until the date of
      transfer on the records of the Company of the shares of stock.

    

    12.           Adjustment
      of and Changes in Stock of the Company.  In the event of a
      reorganization, recapitalization, change of shares, stock split, spin-off,
      stock
      dividend, reclassification, subdivision or combination of shares of stock of
      the
      Company, or the merger, consolidation, rights offering, or any other change
      in
      the corporate structure or shares of the Company, the Committee shall make
      such
      adjustment as it deems appropriate in the number and kind of shares of Common
      Stock subject to the Option or in the option price; provided, however, that
      no
      such adjustment shall give the Optionee any additional benefits under the
      Option.

    

    13.           Employment
      Rights Not Affected.  Neither the granting of the Option nor
      its exercise shall be construed as granting to the Optionee any right with
      respect to continuance of employment with the Company.  Except as may
      otherwise be limited by a written agreement between the Company and the
      Optionee, the right of the Company to terminate at will the Optionee’s
      employment with the Company at any time and for any reason whatsoever is
      specifically reserved by the Company, and acknowledged by the
      Optionee.

    

    14.           Amendment
      of Option.  The Option may be amended by the Board of
      Directors of the Company or by the Committee at any time (i) if the Board or
      the
      Committee determines, in its sole discretion, that amendment is necessary or
      advisable in light of any addition to or change in the Code or in the
      regulations issued thereunder, or any federal or state securities law or other
      law or regulation, which change occurs after the Grant Date and by its terms
      applies to the Option; or (ii) other than in the circumstances described in
      clause (i) or provided in the Plan, with the consent of the
      Optionee.  The foregoing notwithstanding, the Committee may, in its
      sole discretion, cancel the Option at any time prior to the Optionee’s exercise
      of the Option if, in the opinion of the Committee, the Optionee engages in
      activities contrary to the interests of the Company.

    

    15.           Notice.  Any
      notice to the Company provided for in this Agreement shall be addressed to
      it in
      care of its Secretary at its executive offices at 7320 Forsyth Blvd., Unit
      102,
      St. Louis, Missouri 63105, and any notice to the Optionee shall be addressed
      to
      the Optionee at the current address shown on the payroll records of the Company,
      or to such other address and to the attention of such other person(s) or
      officer(s) as either party may designate by written notice.  Any
      notice shall be deemed to be duly given if and when properly addressed and
      deposited, postage paid, in the United States mail or when hand delivered to
      the
      party to whom it is addressed.

    

    16.           Governing
      Law.  This Agreement shall be construed in accordance with
      and shall be subject to the internal laws of the State of Missouri, except
      to
      the extent preempted by federal law.

    

    17.           Acknowledgment
      of Receipt of Plan.  By Optionee’s signature below, Optionee
      hereby acknowledges receipt of a copy of the Plan.

    

    
      
        
        

         

      

      
         

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the Company has caused its duly authorized officers to
      execute this Agreement and the Optionee has placed his signature hereon as
      of
      the ____ day of _______________, _____, and effective as of the Grant
      Date.

    

    

    
      	
              COMPANY:

            	
              CLEANTECH
                BIOFUELS, INC.

            
	 	 
	 	 
	 	
              By:

            	 
	 	 
	 	
              Title

            	 

    

    

    
      	 	
              ATTEST:

            
	 	 
	 	 
	 	
              By:

            	 
	 	 
	 	
              Title

            	 

    

    

    
      	
              OPTIONEE:

            	 
	 	 

    

    

    

    
      
          

         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      A

    

    Larry
      McGee

    

    Notice
      of Exercise of Option

    and
      Record of Stock Transfer

    

    I
      hereby
      exercise my Option granted by Larry McGee  subject to all the terms
      and provisions set forth in the Stock Option Agreement dated August 14, 2007,
      pertaining thereto and of the CleanTech Biofuels, Inc. 2007 Stock Option Plan
      referred to therein, and notify you of my desire to purchase ____________ shares
      of Common Stock, $0.001 par value of the Company (the “Common
      Stock”) which were offered to me pursuant to said Stock Option
      Agreement.  Enclosed is my certified check in the sum of
      $_____________ in full payment for such shares.

    

    I
      hereby
      represent that I have previously received a Stock Option Agreement from the
      Company and that I understand the terms and restrictions described
      therein.  I further represent that the ____________ shares of Common
      Stock to be delivered to me pursuant to the above-mentioned exercise of the
      Option granted to me on August 14, 2007 are being acquired by me as an
      investment and not with a view to, or for sale in connection with, the
      distribution of any of such shares.

    

    
      	
              Dated:
                _________________, ______

            	
              ___________________________________

            
	 	
              Optionee

            

    

    

    

    Receipt

    

    Receipt
      is hereby acknowledged of the delivery to me by Larry McGee , on the
      ____  day of __________ , _____  of stock
      certificates for ____________ shares of Common Stock purchased by me pursuant
      to
      the terms and conditions of the CleanTech Biofuels, Inc. 2007 Stock Option
      Plan
      referred to above, which shares were transferred to me on the Company’s stock
      record books on the  ______ day of
      _____________ ,_____ .

    

    
      	 	
              ___________________________________

            
	 	
              Optioneecleb-2083007ex19.htm

    Exhibit
      10.9

    

    DIRECTORS
      STOCK PURCHASE AGREEMENT

    

    THIS
      DIRECTORS STOCK PURCHASE AGREEMENT
      is entered into as of _____________, 2007, by CleanTech Biofuels, Inc. (the
      “Company”) and _____________ (the “Director”).

    

    ARTICLE
      1

    ACQUISITION
      OF SHARES

    

    1.1           Sale
      and Purchase. On the terms and conditions set forth in this Agreement, the
      Company agrees to sell to the Director, and Director agrees to purchase, 150,000
      Shares. The sale and purchase shall occur at the offices of the Company on
      the
      date set forth above or at such other place and time as the parties may
      agree.

    

    1.2           Consideration.
      The Director agrees to pay $0.15 for each Purchased Share, which may be paid
      pursuant to a note in a form satisfactory to the Company.

    

    1.3           Defined
      Terms. Capitalized terms not defined above are defined in Section 11 of this
      Agreement.

    

    ARTICLE
      2

    RIGHT
      OF
      REPURCHASE

    

    2.1           Scope
      of Repurchase Right. All Purchased Shares initially shall be Restricted Shares
      and shall be subject to a right (but not an obligation) of repurchase by the
      Company. The Director shall not transfer, assign, encumber or otherwise dispose
      of any Restricted Shares, except as provided in the following sentence. The
      Director may transfer Restricted Shares (i) by beneficiary designation, will
      or
      intestate succession or (ii) to the Director’s spouse, children or grandchildren
      or to a trust established by the Director for the benefit of the Director or
      the
      Director’s spouse, children or grandchildren, provided in either case that the
      Transferee agrees in writing on a form prescribed by the Company to be bound
      by
      all provisions of this Agreement. If the Director transfers any Restricted
      Shares, then this Section 2 shall apply to the Transferee to the same extent
      as
      to the Director.

    

    2.2           Condition
      Precedent to Exercise. The Right of Repurchase shall be exercisable only during
      the 60-day period next following the date when the Director’s Service terminates
      for any reason, with or without cause, including (without limitation) death
      or
      disability.

    

    2.3           Lapse
      of Repurchase Right. During the first year after the date hereof, the Right
      of
      Repurchase shall lapse with respect to 8,333 of the Purchased Shares for each
      month of continuous Service completed by the Director following the date of
      this
      Agreement. During the second year after the date hereof the Right of Repurchase
      shall lapse with respect to an additional 4,167 of the Purchased Shares when
      the
      Director completes each month of continuous Service thereafter until such Right
      of Repurchase has elapsed with respect to all of the Purchased Shares. The
      Right
      of Repurchase shall lapse and all of the remaining Restricted Shares shall
      become vested if (i) the Company is subject to a Change in Control and (ii)
      the
      Right of Repurchase is not assigned to the entity that employs the Director
      immediately after the Change in Control or to its parent or
      subsidiary.

    

    2.4           Repurchase
      Cost. If the Company exercises the Right of Repurchase, it shall pay the
      Director an amount in cash or cash equivalents equal to the Purchase Price
      for
      each of the Restricted Shares being repurchased.

    

    2.5           Exercise
      of Repurchase Right. The Right of Repurchase shall be exercisable only by
      written notice delivered to the Director prior to the expiration of the 60-day
      period specified in Subsection 2.2 above. The notice shall set forth the date
      on
      which the repurchase is to be effected. Such date shall not be more than 30
      days
      after the date of the notice. The certificate(s) representing the Restricted
      Shares to be repurchased shall, prior to the close of business on the date
      specified for the repurchase, be delivered to the Company properly endorsed
      for
      transfer. The Company shall. concurrently with the receipt of such
      certificate(s), pay to the Director the purchase price determined according
      to
      Subsection 2.4 above. Payment shall be made in cash or cash equivalents or
      by
      canceling indebtedness to the Company incurred by the Director in the purchase
      of the Restricted Shares. The Right of Repurchase shall terminate with respect
      to any Restricted Shares for which it has not been timely exercised pursuant
      to
      this Subsection 2.5.

    

    2.6           Additional
      Shares or Substituted Securities. In the event of the declaration of a stock
      dividend, the declaration of an extraordinary dividend payable in a form other
      than stock, a spin-off, a stock split, an adjustment in conversion ratio, a
      recapitalization or a similar transaction affecting the Company’s outstanding
      securities without receipt of consideration, any new, substituted or additional
      securities or other property (including money paid other than as an ordinary
      cash dividend) that by reason of such transaction are distributed with respect
      to any Restricted Shares or into which such Restricted Shares thereby become
      convertible shall immediately be subject to the Right of Repurchase. Appropriate
      adjustments to reflect the distribution of such securities or property shall
      be
      made to the number and/or class of the Restricted Shares. After each such
      transaction, appropriate adjustments shall also be made to the price per share
      to be paid upon the exercise of the Right of Repurchase in order to reflect
      any
      change in the Company’s outstanding securities effected without receipt of
      consideration therefor; provided, however, that the aggregate purchase price
      payable for the Restricted Shares shall remain the same.

    

    2.7           Termination
      of Rights as Stockholder. If the Company makes available, at the time and place
      and in the amount and form provided in this Agreement, the consideration for
      the
      Restricted Shares to be repurchased in accordance with this Section 2, then
      after such time the person from whom such Restricted Shares are to be
      repurchased shall, no longer have any rights as a holder of such Restricted
      Shares’ ‘(other than the right to receive payment of such consideration in
      accordance with this Agreement). Such Restricted Shares shall be deemed to
      have
      been repurchased in accordance with the applicable provisions hereof, whether
      or
      not the certificate(s) therefor have been delivered as required by this
      Agreement.

    

    2.8           Escrow.
      Upon issuance, the certificates for Restricted Shares shall be deposited in
      escrow with the Company to be held in accordance with the provisions of this
      Agreement. Any new, substituted or additional securities or other property
      described in Subsection 2.6 above shall immediately be delivered to the Company
      to be held in escrow, but only to the extent the Purchased Shares are at the
      time Restricted Shares. All regular cash dividends on Restricted Shares (or
      other securities at the time held in escrow) shall be paid directly to the
      Director and shall not be held in escrow. Restricted Shares, together with
      any
      other assets or securities held in escrow hereunder, shall be (i) surrendered
      to
      the Company for repurchase and cancellation upon the Company’s exercise of its
      Right of Repurchase or Right of First Refusal or (ii) released to the Director
      upon the Director’s request to the extent the Purchased Shares are no longer
      Restricted Shares (but not more frequently than once every six months). In
      any
      event, all Purchased Shares that have vested (and any other vested assets and
      securities attributable thereto) shall be released within 60 days after the
      earlier of (i) the Director’s cessation of Service or (ii) the lapse of the
      Right of First Refusal.

    

    ARTICLE
      3

    OTHER
      RESTRICTIONS ON TRANSFER

    

    3.1           Director
      Representations. In connection with the issuance and acquisition of Shares
      under
      this Agreement, the Director hereby represents and warrants to the Company
      as
      follows:

    

    (a)           The
      Director is acquiring and will hold the Purchased Shares for investment for
      his
      or her account only and not with a view to, or for resale in connection with,
      any “distribution” thereof within the meaning of the Securities
      Act.

    

    (b)           The
      Director understands that the Purchased Shares have not been registered under
      the Securities Act by reason of a specific exemption therefrom and that the
      Purchased Shares must be held indefinitely, unless they are subsequently
      registered under the Securities Act or the Director obtains an opinion of
      counsel, in form and substance satisfactory to the Company and its counsel,
      that
      such registration is not required. The Director further acknowledges and
      understands that the Company is under no obligation to register the Purchased
      Shares.

    

    (c)           The
      Director is aware of the adoption of Rule 144 by the Securities and Exchange
      Commission under the Securities Act, which permits limited public resales of
      securities acquired in a nonpublic offering, subject only to the satisfaction
      of
      certain conditions. The Director acknowledges and understands that the
      conditions for resale set forth in Rule 144 have not been satisfied and that
      the
      Company has no plans to satisfy these conditions in the foreseeable
      future.

    

    (d)           The
      Director will not sell, transfer or otherwise dispose of the Purchased Shares
      in
      violation of the Securities Act, the Securities Exchange Act of 1934, or the
      rules promulgated thereunder, including Rule 144 under the Securities Act.
      The
      Director agrees that he or she will not dispose of the Purchased Shares unless
      and until he or she has complied with all requirements of this Agreement
      applicable to the disposition of Purchased Shares and he or she has provided
      the
      Company with written assurances, in substance and form satisfactory to the
      Company, that (A) the proposed disposition does not require registration of
      the
      Purchased Shares under the Securities Act or all appropriate action necessary
      for compliance with the registration requirements of the Securities Act or
      with
      any exemption from registration available under the Securities Act (including
      Rule 144) has been taken and (B) the proposed disposition will not result in
      the
      contravention of any transfer restrictions applicable to the
      Purchased.

    

    (e)           The
      Director has been furnished with, and has had access to, such information as
      he
      or she considers necessary or appropriate for deciding whether to invest in
      the
      Purchased Shares, and the Director has had an opportunity to ask questions
      and
      receive answers from the Company regarding the terms and conditions of the
      issuance of the Purchased Shares.

    

    (f)           The
      Director is aware that his or her investment in the Company is a speculative
      investment that has limited liquidity and is subject to the risk of complete
      loss. The Director is able, without impairing his or her financial condition,
      to
      hold the Purchased Shares for an indefinite period and to suffer a complete
      loss
      of his or her investment in the Purchased Shares.

    

    3.2           Securities
      Law Restrictions. Regardless of whether the offering and sale of Shares under
      this Agreement have been registered under the Securities Act or have been
      registered or qualified under the securities laws of any state, the Company
      at
      its discretion may impose restrictions upon the sale, pledge or other transfer
      of the Purchased Shares (including the placement of appropriate legends on
      stock
      certificates or the imposition of stop-transfer instructions) if, in the
      judgment of the Company, such restrictions are necessary or desirable in order
      to achieve compliance with the Securities Act, the securities laws of any state
      or any other law.

    

    3.3           Market
      Stand-Off. In connection with any underwritten public offering by the Company
      of
      its equity securities pursuant to an effective registration statement filed
      under the Securities Act, including the Company’s initial public offering, the
      Director shall not, without the prior written consent of the Company’s managing
      underwriter, (i) lend, offer, pledge, sell, contract to sell, sell any option
      or
      contract to purchase, purchase any option or contract to sell, grant any option,
      right or warrant to purchase, or otherwise transfer or dispose of, directly
      or
      indirectly, any shares of Stock or any securities convertible into or
      exercisable or exchangeable for Stock (whether such shares or any such
      securities are then owned by the Director or are thereafter acquired), or (ii)
      enter into any swap or other arrangement that transfers to another, in whole
      or
      in part, any of the economic consequences of ownership of the Stock, whether
      any
      such transaction described in clause (i) or (ii) above is to be settled by
      delivery of Stock or such other securities, in cash or otherwise. Such
      restriction (the “Market Stand-Off”) shall be in effect for such period of time
      following the date of the final prospectus for the offering as may be requested
      by the Company or such underwriters. In no event, however, shall such period
      exceed 180 days. The Market Stand-Off shall in any event terminate-two years
      after the date of the Company’s initial public offering. In the event of the
      declaration of a stock dividend, a spin-off, a stock split. an adjustment in
      conversion ratio, a recapitalization or a similar transaction affecting the
      Company’s outstanding securities without receipt of consideration, any new,
      substituted or additional securities that are by reason of such transaction
      distributed with respect to any Shares subject to the Market Stand-Off, or
      into
      which such Shares thereby become convertible, shall immediately be subject
      to
      the Market Stand-Off. In order to enforce the Market Stand-Off, the Company
      may
      impose stop-transfer instructions with respect to the Purchased Shares until
      the
      end of the applicable stand-off period. The Company’s underwriters shall be
      beneficiaries of the agreement set forth in this Subsection 3.3. This Subsection
      3.3 shall not apply to Shares registered in the public offering under the
      Securities Act, and the Director shall be subject to this Subsection 3.3 only
      if
      the directors and officers of the Company are subject to similar
      arrangements.

    

    3.4           Rights
      of the Company. The Company shall not be required to (i) transfer on its books
      any Purchased Shares that have been sold or transferred in contravention of
      this
      Agreement or (ii) treat as the owner of Purchased Shares, or otherwise to accord
      voting, dividend or liquidation rights to, any transferee to whom Purchased
      Shares have been transferred in contravention of this Agreement.

    

    ARTICLE
      4

    SUCCESSORS
      AND ASSIGNS

    

    Except
      as otherwise expressly provided
      to the contrary, the provisions of this Agreement shall inure to the benefit
      of,
      and be binding upon, the Company and its successors and assigns and be binding
      upon the Director and the Director’s legal representatives, heirs, legatees,
      distributees, assigns and transferees by operation of law, whether or not any
      such person has become a party to this Agreement or has agreed in writing to
      join herein and to be bound by the terms, conditions and restrictions
      hereof

    

    ARTICLE
      5

    NO
      RETENTION RIGHTS

    

    Nothing
      in this Agreement shall confer
      upon the Director any right to continue in Service for any period of specific
      duration or interfere with or otherwise restrict in any way the rights of the
      Company (or any Parent or Subsidiary employing or retaining the Director) or
      of
      the Director, which rights are hereby expressly reserved by each, to terminate
      his or her Service at any time and for any reason, with or without
      cause.

    

    ARTICLE
      6

    TAX
      ELECTION

    

    The
      acquisition of the Purchased Shares
      may result in adverse tax consequences that may be avoided or mitigated by
      filing an election under Code Section 83(b). Such election may be filed only
      within 30 days after the date of purchase. The form for making the Code Section
      83(b) election is attached to this Agreement as an Exhibit. The Director should
      consult with his or her tax advisor to determine the tax consequences of
      acquiring the Purchased Shares and the advantages and disadvantages of filing
      the Code Section 83(b) election. The Director acknowledges that it is his or
      her
      sole responsibility, and not the Company’s, to file a timely election under Code
      Section 83(b), even if the Director requests the Company or its representatives
      to make this filing on his or her behalf.

    

    ARTICLE
      7

    LEGENDS

    

    Legends.
      All certificates evidencing
      Purchased Shares shall bear the following legends:

    

    “THE
      SHARES REPRESENTED HEREBY MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED
      OR
      IN ANY MANNER DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE TERMS OF A WRITTEN
      AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER OF THE SHARES (OR THE
      PREDECESSOR IN INTEREST TO THE SHARES). SUCH AGREEMENT GRANTS TO THE COMPANY
      CERTAIN RIGHTS OF FIRST REFUSAL UPON AN ATTEMPTED TRANSFER OF THE SHARES AND
      CERTAIN REPURCHASE RIGHTS UPON TERMINATION OF SERVICE WITH THE COMPANY THE
      SECRETARY OF THE COMPANY WILL UPON WRITTEN REQUEST FURNISH A COPY OF SUCH
      AGREEMENT TO THE HOLDER HEREOF WITHOUT CHARGE. “

    

    “THE
      SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT
      AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL,
      SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT
      REQUIRED.”

    

    If
      required by the authorities of any
      state in connection with the issuance of the Purchased Shares, the legend or
      legends required by such state authorities shall also be endorsed on all such
      certificates.

    

    ARTICLE
      8

    NOTICE

    

    Any
      notice required by the terms of
      this Agreement shall be given in writing and shall be deemed effective upon
      personal delivery or upon deposit with the United States Postal Service, by
      registered or certified mail, with postage and fees prepaid. Notice shall be
      addressed to the Company at its principal executive office and to the Director
      at the address that he or she most recently provided to the
      Company.

    

    ARTICLE
      9

    ENTIRE
      AGREEMENT

    

    This
      Agreement constitutes the entire
      contract between the parties hereto with regard to the subject matter hereof.
      It
      supersedes any other agreements, representations or understandings (whether
      oral
      or written and whether express or implied) relating to the subject matter
      hereof.

    

    ARTICLE
      10

    CHOICE
      OF
      LAW

    

    This
      Agreement shall be governed by,
      and construed in accordance with, the laws of the State of Missouri, as such
      laws are applied to contracts entered into and to be performed entirely within
      such State.

    

    ARTICLE
      11

    DEFINITIONS

    

    11.1    “Agreement”
shall
      mean this Stock Purchase Agreement.

    

    11.2    “Board
      of Directors”
shall mean the Board of Directors of the Company, as constituted from time
      to
      time.

    

    11.3    “Change
      in Control”
shall mean:

    

    (a)           The
      consummation of a merger or consolidation of the Company with or into another
      entity or any other corporate reorganization, if more than 50% of the combined
      voting power of the continuing or surviving entity’s securities outstanding
      immediately after such merger, consolidation or other reorganization is owned
      by
      persons who were not stockholders of the Company immediately prior to such
      merger, consolidation or other reorganization; or

    

    (b)           The
      sale, transfer or other disposition of all or substantially all of the Company’s
      assets.

    

    A
      transaction shall not constitute a
      Change in Control if its sole purpose is to change the state of the Company’s
      incorporation or to create a holding company that will be owned in substantially
      the same proportions by the persons who held the Company’s securities
      immediately before such transaction.

    

    11.4    “Code”
shall
      mean the
      Internal Revenue Code of 1986, as amended.

    

    11.5    “Company”
shall
      mean
      CleanTech Biofuels, Inc., a Delaware corporation.

    

    11.6    “Consultant”
shall
      mean an individual who performs bona fide services for the Company, a Parent
      or
      a Subsidiary as a consultant or advisor, excluding Employees and Outside
      Directors,

    

    11.7    “Employee”
shall
      mean
      any individual who is a common law employee of the Company, a Parent or a
      Subsidiary.

    

    11.8    “Fair
      Market Value”
shall mean the fair market value of a Share, as determined by the Board of
      Directors in good faith. Such determination shall be conclusive and binding
      on
      all persons.

    

    11.9    “Outside
      Director”
shall mean a member of the Board of Directors who is not an
      Employee.

    

    11.10    “Parent”
shall
      mean
      any corporation (other than the Company) in an unbroken chain of corporations
      ending with the Company, if each of the corporations other than the Company
      owns
      stock possessing 50% or more of the total combined voting power of all classes
      of stock in one of the other corporations in such chain.

    

    11.11    “Purchased
      Shares”
shall mean the Shares purchased by the Director pursuant to this
      Agreement.

    

    11.12    “Purchase
      Price”
shall mean the amount for which one Share may be purchased pursuant to this
      Agreement, as specified in Subsection 1.2.

    

    11.13    “Restricted
      Share”
shall mean a Purchased Share that is subject to the Right of
      Repurchase.

    

    11.14    “Right
      of First
      Refusal” shall mean the Company’s right of first refusal described in Section
      3.

    

    11.15    “Right
      of Repurchase”
shall mean the Company’s right of repurchase described in Section
      2.

    

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

    

    11.17    “Service”
shall
      mean
      service as an Employee, Outside Director or Consultant.

    

    11.18    “Share”
shall
      mean
      one share of Stock.

    

    11.19    “Stock”
shall
      mean
      the Common Stock of the Company, with a par value of $0.001 per
      Share.

    

    11.20    “Subsidiary”
shall
      mean any corporation (other than the Company) in an unbroken chain of
      corporations beginning with the Company, if each of the corporations other
      than
      the last corporation in the unbroken chain owns stock possessing 50% or more
      of
      the total combined voting power of all classes of stock in one of the other
      corporations in such chain.

    

    11.21    “Transferee”
shall
      mean any person to whom the Director has directly or indirectly transferred
      any
      Purchased Share.

    

    11.22    “Transfer
      Notice”
shall mean the notice of a proposed transfer of Purchased Shares described
      in
      Section 3.

    

    
      	 	
              DIRECTOR:

            
	 	 
	 	 
	 	 
	 	
              Print
                Name:

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