Document:

Filed by Bowne Pure Compliance

Exhibit 10.69

MIMEDX GROUP, INC.

AMENDED AND RESTATED ASSUMED 2005 STOCK PLAN

(formerly the SpineMedica Corp. 2005 Employee, Director and Consultant Stock Plan)

Nonqualified Stock Option Award Agreement

(Non-employee Directors and Independent Contractors)

THIS AGREEMENT (together with Schedule A, attached hereto, the “Agreement”), effective as of
the date specified as the “Grant Date” on Schedule A attached hereto, between MiMedx Group, Inc., a
Florida corporation (the “Corporation”), and the individual identified on Schedule A attached
hereto, an individual in service to the Corporation or an Affiliate (the “Participant”).

R E C I T A L S :

In furtherance of the purposes of the MiMedx Group, Inc. Amended and Restated Assumed 2005
Stock Plan (formerly the SpineMedica Corp. 2005 Employee, Director and Consultant Stock Plan), as
it may be hereafter amended (the “Plan”), the Corporation and the Participant hereby agree as
follows:

1. Incorporation of Plan. The rights and duties of the Corporation and the Participant
under this Agreement shall in all respects be subject to and governed by the provisions of the
Plan, the terms of which are incorporated herein by reference. In the event of any conflict
between the provisions in the Agreement and those of the Plan, the provisions of the Plan shall
govern. Unless otherwise defined herein, capitalized terms in this Agreement shall have the same
definitions as set forth in the Plan.

2. Grant of Option; Term of Option. The Corporation hereby grants to the Participant
pursuant to the Plan, as a matter of separate inducement and agreement in connection with his or
her service to the Corporation, and not in lieu of any salary or other compensation for his or her
services, the right and Option (the “Option”) to purchase all or any part of such aggregate number
of shares (the “Shares”) of common stock of the Corporation (the “Common Stock”) at a purchase
price (the “Option Price”) as specified on Schedule A, attached hereto, and subject to such other
terms and conditions as may be stated herein or in the Plan or on Schedule A. The Participant
expressly acknowledges that the terms of Schedule A shall be incorporated herein by reference and
shall constitute part of this Agreement. The Corporation and the Participant further acknowledge
and agree that the signatures of the Corporation and the Participant on the Grant Notice contained
in Schedule A shall constitute their acceptance of all of the terms of this Agreement and their
agreement to be bound by the terms of this Agreement. The Option shall be designated as a
Nonqualified Option, as stated on Schedule A. Except as otherwise provided in the Plan or this
Agreement, this Option will expire if not exercised in full by the Expiration Date specified on
Schedule A.

 

 

 

3. Exercise of Option. Subject to the terms of the Plan and this Agreement, the Option
shall become exercisable on the date or dates, and subject to such conditions, as are set forth on
Schedule A attached hereto. To the extent that an Option which is exercisable is not exercised,
such Option shall accumulate and be exercisable by the Participant in whole or in part
at any time prior to expiration of the Option, subject to the terms of the Plan and this
Agreement. The Participant expressly acknowledges that the Option may vest and be exercisable
only upon such terms and conditions as are provided in this Agreement and the Plan. Upon the
exercise of an Option in whole or in part and payment of the Option Price in accordance with the
provisions of the Plan and this Agreement, the Corporation shall, as soon thereafter as
practicable, deliver to the Participant a certificate or certificates for the Shares purchased.
Payment of the Option Price may be made (i) in cash or by cash equivalent; and, where permitted by
applicable law, payment may also be made (ii) by delivery (by either actual delivery or
attestation) of shares of Common Stock owned by the Participant (subject to such terms and
conditions, if any, as may be determined by the Administrator); (iii) by shares of Common Stock
withheld upon exercise but only if and to the extent that payment by such method does not result in
variable accounting or other accounting consequences deemed unacceptable to the Corporation; (iv)
in the event that a Public Market (as defined in the Plan) for the Common Stock exists, by delivery
of written notice of exercise to the Corporation and delivery to a broker of written notice of
exercise and irrevocable instructions to promptly deliver to the Corporation the amount of sale or
loan proceeds to pay the Option Price; (v) by such other payment methods as may be approved by the
Administrator and which are acceptable under applicable law; or (vi) by any combination of the
foregoing methods. Shares delivered or withheld in payment of the Option Price shall be valued at
their Fair Market Value on the date of exercise, determined in accordance with the terms of the
Plan.

4. No Right of Employment or Service; Forfeiture of Option. Neither the Plan, this
Agreement nor any other action related to the Plan shall confer upon the Participant any right to
continue in the employment or service of the Corporation or an Affiliate or interfere with the
right of the Corporation or an Affiliate to terminate the Participant’s employment or service at
any time. Except as otherwise expressly provided in the Plan or this Agreement or as determined by
the Administrator, all rights of the Participant with respect to the Option shall terminate upon
termination of the services of the Participant with the Corporation or an Affiliate.
Notwithstanding any thing to the contrary herein or in the Plan, if Participant’s services as
director, consultant or otherwise on behalf of the Corporation terminate for any reason prior to
the expiration of ninety (90) days from the date of commencement of such services, then all Options
granted, whether or not vested, shall upon such termination be forfeited in full and shall no
longer be of any force or effect.

5. Termination of Service. Unless the Administrator determines otherwise (and unless
the Participant becomes an Employee after the date of this Agreement, in which case he or she shall
be subject to the provisions of Section 7(d)(iii) of the Plan), subject to any requirements imposed
under Code Section 409A, the Option may be exercised only to the extent vested and exercisable on
the Participant’s Termination Date (unless the termination was for Cause), and must be exercised,
if at all, prior to the first to occur of the following, as applicable: (a) the close of the period
of three months next succeeding the Termination Date; or (b) the close of the Option Period. If
the services of the Participant are terminated for Cause (as defined in the Plan), the Option shall
lapse and no longer be exercisable as of his or her Termination Date, as determined by the
Administrator.

 

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6. Nontransferability of Option. The Option shall not be transferable (including by
sale, assignment, pledge or hypothecation) other than by will or the laws of intestate succession,
except as may be permitted by the Administrator in a manner consistent with the registration
provisions of the Securities Act of 1933, as amended (the “Securities Act”). Except as may be
permitted by the preceding sentence, the Option shall be exercisable during the Participant’s
lifetime only by him or her or by his or her guardian or legal representative. The designation of a
beneficiary in accordance with the Plan does not constitute a transfer.

7. Superseding Agreement; Binding Effect. This Agreement supersedes any statements,
representations or agreements of the Corporation with respect to the grant of the Option or any
related rights, and the Participant hereby waives any rights or claims related to any such
statements, representations or agreements. This Agreement does not supersede or amend any existing
confidentiality agreement, nonsolicitation agreement, noncompetition agreement, employment
agreement or any other similar agreement between the Participant and the Corporation, including,
but not limited to, any restrictive covenants contained in such agreements. This Agreement shall
be binding upon and shall inure to the benefit of the parties hereto and their respective
executors, administrators, heirs, successors and assigns.

8. Governing Law. Except as otherwise provided in the Plan or herein, this Agreement
shall be construed and enforced according to the laws of the State of Florida, without regard to
the conflict of laws provisions of any state, and in accordance with applicable federal laws of the
United States.

9. Amendment and Termination; Waiver. Subject to the terms of the Plan, this Agreement
may be modified or amended only by the written agreement of the parties hereto. The waiver by the
Corporation of a breach of any provision of the Agreement by the Participant shall not operate or
be construed as a waiver of any subsequent breach by the Participant. Notwithstanding the
foregoing, the Administrator shall have unilateral authority to amend the Plan and this Agreement
(without Participant consent) to the extent necessary to comply with applicable law or changes to
applicable law (including but in no way limited to Code Section 409A, Code Section 422 and federal
securities laws).

10. No Rights as Stockholder. The Participant and his or her legal representatives,
legatees and distributees shall not be deemed to be the holder of any Shares subject to the Option
and shall not have any rights of a stockholder unless and until certificates for such Shares have
been issued and delivered to him or her or them.

11. Withholding; Tax Matters.

(a) The Participant acknowledges that the Corporation shall require the Participant to
pay the Corporation in cash the amount of any tax or other amount required by any
governmental authority to be withheld and paid over by the Corporation to such authority for
the account of the Participant, and the Participant agrees, as a condition to the grant of
the Option and delivery of the Shares or any other benefit, to satisfy such obligations.
Notwithstanding the foregoing, the Corporation may establish procedures to permit the
Participant to satisfy such obligations in whole or in part, and any other local, state,
federal, foreign or other income tax obligations relating to the Option, by electing (the
“election”) to have the Corporation withhold shares of Common Stock from the Shares to which
the Participant is entitled. The number of Shares to be withheld shall
have a Fair Market Value as of the date that the amount of tax to be withheld is
determined as nearly equal as possible to (but not exceeding) the amount of such obligations
being satisfied. Each election must be made in writing to the Administrator in accordance
with election procedures established by the Administrator.

 

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(b) The Participant acknowledges that the Corporation has made no warranties or
representations to the Participant with respect to the tax consequences (including, but not
limited to, income tax consequences) related to the transactions contemplated by this
Agreement, and the Participant is in no manner relying on the Corporation or its
representatives for an assessment of such tax consequences. The Participant acknowledges
that there may be adverse tax consequences upon acquisition or disposition of the Shares
subject to the Option and that the Participant should consult a tax advisor prior to such
exercise or disposition. The Participant acknowledges that he or she has been advised that
he or she should consult with his own attorney, accountant, and/or tax advisor regarding the
decision to enter into this Agreement and the consequences thereof. The Participant also
acknowledges that the Corporation has no responsibility to take or refrain from taking any
actions in order to achieve a certain tax result for the Participant.

12. Administration. The authority to construe and interpret this Agreement and the
Plan, and to administer all aspects of the Plan, shall be vested in the Administrator, and the
Administrator shall have all powers with respect to this Agreement as are provided in the Plan.
Any interpretation of the Agreement by the Administrator and any decision made by it with respect
to the Agreement is final and binding.

13. Notices. Except as may be otherwise provided by the Plan or determined by the
Administrator, any written notices provided for in this Agreement or the Plan shall be in writing
and shall be deemed sufficiently given if either hand delivered or if sent by fax or overnight
courier, or by postage paid first class mail. Notices sent by mail shall be deemed received three
business days after mailed but in no event later than the date of actual receipt. Notices shall be
directed, if to the Participant, at the Participant’s address indicated on Schedule A (or such
other address as may be designated by the Participant in a manner acceptable to the Administrator),
or, if to the Corporation, at the Corporation’s principal office, attention Chief Financial
Officer, MiMedx Group, Inc. Notice may also be provided by electronic submission, if and to the
extent permitted by the Administrator.

14. Severability. The provisions of this Agreement are severable and if any one or
more provisions may be determined to be illegal or otherwise unenforceable, in whole or in part,
the remaining provisions shall nevertheless be binding and enforceable.

15. Restrictions on Option and Shares. The Corporation may impose such restrictions on
the Option and the Shares or other benefits underlying the Option as it may deem advisable,
including without limitation restrictions under the federal securities laws, the requirements of
any stock exchange or similar organization and any blue sky, state or foreign securities laws
applicable to such Option or Shares. Notwithstanding any other provision in the Plan or the
Agreement to the contrary, the Corporation shall not be obligated to issue, deliver or transfer
shares of Common Stock, to make any other distribution of benefits, or to take any other action,
unless such delivery, distribution or action is in compliance with all applicable laws, rules
and regulations (including but not limited to the requirements of the Securities Act). The
Corporation may cause a restrictive legend to be placed on any certificate for Shares issued
pursuant to the exercise of the Option in such form as may be prescribed from time to time by
applicable laws and regulations or as may be advised by legal counsel.

 

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16. Effect of Changes in Status. Unless the Administrator, in its sole discretion,
determines otherwise (or unless required by Code Section 409A), the Option shall not be affected by
any change in the terms, conditions or status of the Participant’s service, provided that the
Participant continues to be in service to the Corporation or an Affiliate. Without limiting the
foregoing, the Administrator has sole discretion to determine, subject to Code Section 409A, at the
time of grant of the Option or at any time thereafter, the effect, if any, on the Option if the
Participant’s status as an Independent Contractor changes.

17. Right of Offset. Notwithstanding any other provision of the Plan or the Agreement,
the Corporation may reduce the amount of any payment otherwise payable to or on behalf of the
Participant by the amount of any obligation of the Participant to the Corporation that is or
becomes due and payable and the Participant shall be deemed to have consented to such reduction.

18. Counterparts; Further Instruments. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. The parties hereto agree to execute such further instruments and to
take such further action as may be reasonably necessary to carry out the purposes and intent of
this Agreement.

[Signatures of the Corporation and the Participant follow on Schedule A/Grant Notice.]

 

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MIMEDX GROUP, INC.

AMENDED AND RESTATED ASSUMED 2005 STOCK PLAN

(formerly the SpineMedica Corp. 2005 Employee, Director and Consultant Stock Plan)

Nonqualified Stock Option Agreement

(Non-employee Directors and Independent Contractors)

Schedule A/Grant Notice

1. Pursuant to the terms and conditions of the MiMedx Group, Inc. Amended and Restated Assumed
2005 Stock Plan (formerly the SpineMedica Corp. 2005 Employee, Director and Consultant Stock Plan)
(the “Plan”), you (the “Participant”) have been granted an option (the “Option”) to purchase
                     shares (the “Shares”) of our Common Stock as outlined below.

	 	 	 	 	 
	Name of Participant:
	 	 	 	 
	 
	 	 	 
	Address:
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 
	Grant Date:
	 	 	                     , 20	 
	 
	 	 	 
	Number of Shares Subject to Option:
	 	 	 	 
	 
	 	 	 
	Option Price:
	 	$	 	 
	 
	 	 	 
	Type of Option:
	 	Nonqualified Stock Option
	 
	 	 	 
	Expiration Date (Last day of Option Period):
	 	 	                     , 20	 
	 
	 	 	 
	Vesting Schedule/Conditions:
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 

2. By my signature below, I, the Participant, hereby acknowledge receipt of this Grant Notice
and the Option Award Agreement (the “Agreement”) dated                           , 200     , between the
Participant and MiMedx Group, Inc. (the “Corporation”) which is attached to this Grant Notice. I
understand that the Grant Notice and other provisions of Schedule A herein are incorporated by
reference into the Agreement and constitute a part of the Agreement. By my signature below, I
further agree to be bound by the terms of the Plan and the Agreement, including but not limited to
the terms of this Grant Notice and the other provisions of Schedule A contained herein. The
Corporation reserves the right to treat the Option and the Agreement as cancelled, void and of no
effect if the Participant fails to return a signed copy of the Grant Notice within 30 days of
grant date stated above.

 

 

 

	 	 	 	 	 	 	 
	Signature:

	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	Agreed to by:
	 
	 	 	 	 	 	 
	 	 	 	 	MIMEDX GROUP, INC.
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Attest:

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 	 	 	 	 
	SecretaryFiled by Bowne Pure Compliance

Exhibit 10.1

THIS HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE, IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, AS EVIDENCED BY A LEGAL
OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
ACCEPTABLE TO THE COMPANY. THIS NOTE MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN SECURED BY SUCH SECURITIES.

Original Issue Date: September 2, 2008

$287,500

SENIOR SECURED CONVERTIBLE PROMISSORY NOTE

DUE

December 31, 2009

FOR VALUE RECEIVED, BioGold Fuels Corporation, a Nevada corporation (the “Company”) promises
to pay to Heritage Opportunity Fund, LLC, a California limited liability company or its registered
assigns (the “Holder”), the outstanding principal sum of up to $287,500 on or before December 31,
2009 as set forth below (the “Maturity Date”). This Senior Secured Convertible Promissory Note
(the “Note”) is issued pursuant to the Securities Purchase Agreement, dated the date hereof, and is
subject to the following additional provisions:

Section 1. Definitions. For the purposes hereof, the following terms shall have the
following meanings:

“Business Day” means any day except Saturday, Sunday and any day which shall be a federal
legal holiday in the United States or a day on which banking institutions in the State of
California are authorized or required by law or other government action to close.

“Event of Default” shall have the meaning set forth in Section 7.

“Maturity Date” shall have the meaning set forth in Section 5 of this Note.

“Original Issue Date” shall mean the date of the first issuance of this Note regardless of the
number of transfers of this Note and regardless of the number of instruments which may be issued to
evidence this Note.

 

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“Principal” shall mean $287,500.

“Parties” means BioGold Fuels Corporation and Heritage Opportunity Fund, LLC.

“Person” means a corporation, an association, a partnership, organization, a business, an
individual, a government or political subdivision thereof or a governmental agency.

“Trading Day” means a day on which the Common Stock is traded on a Trading Market.

“Trading Market” means the following markets or exchanges on which the Common Stock is listed
or quoted for trading on the date in question: the Nasdaq SmallCap Market, the American Stock
Exchange, the New York Stock Exchange, the Nasdaq National Market or the OTC Bulletin Board.

Section 2.
Interest.

(a) Payment of Interest. The Company shall pay interest to the Holder on the aggregate
outstanding Principal amount of this Note at the annual rate of 15%, payable upon the Maturity Date
(except that, if any such date is not a Business Day, then such payment shall be due on the next
succeeding Business Day) (each such date, an “Interest Payment Date”).

(b) Interest Calculations. Interest shall be calculated on the basis of a 360-day year and
shall accrue daily commencing on the Original Issue Date based upon the Principal outstanding until
payment in full of the Principal sum, together with all accrued and unpaid interest has been made.

Section 3. Conversion.

(a) Conversion Right. The Holder shall have the right from time to time, and at any time on
or prior to the Maturity Date, to convert all or any part of the outstanding and unpaid principal
amount and interest of this Note into fully paid and non-assessable shares of the Company’s common
stock (the “Stock”) at the conversion price (the “Conversion Price”) determined as provided herein
(a “Conversion”). The number of shares of Stock to be issued upon conversion of this Note shall be
determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price
then in effect on the date specified in the notice of conversion, in the form attached hereto as
Exhibit B (the “Notice of Conversion”), delivered to the Company by the Holder in accordance with
Section 3(d) below; provided that the Notice of Conversion is submitted by facsimile (or by other
means resulting in, or reasonably expected to result in, notice) to the Company before 5:00 p.m.
California Time on such conversion date (the “Conversion Date”). The term “Conversion Amount”
means, with respect to any conversion of this Note, the sum of (i) the principal amount of this
Note to be converted in such conversion plus (ii) accrued and unpaid interest.

(b) Conversion Price. Subject to adjustment as provided for in Section 3(f), the initial
conversion price in effect on any Conversion Date shall be the lesser of (i) $0.10 per share of
common stock or (ii) the price per share of common stock sold by the Company in any equity
financing (not including stock sales or issuances to employees, consultants, directors or strategic
partners).

 

Page 2

 

(c) Authorized Shares. The Company covenants that during the period the conversion right
exists, the Company will reserve from its authorized and unissued Stock a sufficient number of
shares, free from preemptive rights, to provide for the issuance of Stock upon the full conversion
of
this Note. The Company represents that such shares, upon issuance, will be duly and validly
issued, fully paid and non-assessable. In addition, if the Company shall issue any securities or
make any change to its capital structure which would change the number of shares of Stock into
which the Note shall be convertible at the then current Conversion Price, the Company shall at the
same time make proper provision so that thereafter there shall be a sufficient number of shares of
Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Note.
The Company (i) acknowledges that it will irrevocably instruct its transfer agent to issue
certificates for the Stock issuable upon conversion of this Note, and (ii) agrees that its issuance
of this Note shall constitute full authority to its officers and agents who are charged with the
duty of executing stock certificates to execute and issue the necessary certificates for shares of
Stock in accordance with the terms and conditions of this Note.

(d) Method of Conversion.

(i) Mechanics of Conversion. This Note may be converted by the Holder in whole or in part at
any time from time to time by (A) submitting to the Company a Notice of Conversion (by facsimile or
other reasonable means of communication dispatched on the Conversion Date prior to 5:00 p.m.
California Time) and (B) subject to Section 3(d)(ii), surrendering this Note at the principal
office of the Company.

(ii) Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth
herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall not be
required to physically surrender this Note to the Company unless the entire unpaid principal amount
of this Note is so converted. The Holder and the Company shall maintain records showing the
principal amount so converted 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 each such conversion. In the event of any dispute or discrepancy, such records of
the Company shall be controlling and determinative in the absence of manifest error; provided that
the Holder shall provide the Company with all such records and related calculations and documents
for review by the Company. Notwithstanding the foregoing, if any portion of this Note is converted
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 (upon payment by the Holder of any
applicable transfer taxes) may request, representing in the aggregate the remaining unpaid
principal amount of 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 of
a portion of this Note, the unpaid and unconverted principal amount of this Note represented by
this Note may be less than the amount stated on the face hereof.

(iii) Payment of Taxes. The Company shall not be required to pay any tax which may be payable
in respect of any transfer involved in the issue and delivery of shares of Stock or other
securities or property on conversion of this Note in a name other than that of the Holder (or in
street name), and the Company shall not be required to issue or deliver any such shares or other
securities or property unless and until the person or persons (other than the Holder or the
custodian in whose street name such shares are to be held for the Holder’s account) requesting the
issuance thereof, or the transferee or transferees of such transfer, shall have paid to the Company
the amount of any such tax or shall have established to the satisfaction of the Company that such
tax has been paid.

 

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(iv) Delivery of Stock Upon Conversion. Upon receipt by the Company from the Holder of a
facsimile transmission (or other reasonable means of communication) of a Notice of Conversion
meeting the requirements for conversion as provided in this Section 3(d), the Company shall issued
and deliver to the Holder certificates for the Stock issuable upon such conversion within five (5)
business days after such receipt (and, solely in the case of conversion of the entire unpaid
principal amount hereof, surrender of this Note) in accordance with the terms hereof.

(v) Obligation of Company to Cause Delivery of Stock. Upon receipt by the Company of a Notice
of Conversion in accordance with this Section 3(d), the Holder shall be deemed to be the holder of
record of the Stock issuable upon such conversion, the outstanding principal amount and the amount
of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and,
unless the Company defaults on its obligations under this Section 3, all rights with respect to the
portion of this Note being so converted shall forthwith terminate except the right to receive the
Stock or other securities, cash or other assets, as herein provided, on such conversion. If the
Holder shall have given a Notice of Conversion as provided herein, the Company’s obligation to
issue and deliver the certificates for Stock shall be absolute and unconditional, irrespective of
the absence of any action by the Holder to enforce the same, any waiver or consent with respect to
any provision thereof, the recovery of any judgment against any person or any action to enforce the
same, any failure or delay in the enforcement of any other obligation of the Company to the holder
of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or
alleged breach by the Holder of any obligation to the Company, and irrespective of any other
circumstance which might otherwise limit such obligation of the Company to the Holder in connection
with such conversion. The Conversion Date specified in the Notice of Conversion shall be the
Conversion Date so long as the Notice of Conversion is received by the Company before 5:00 p.m.
California Time, on such date.

(e) Concerning the Shares. The shares of Stock issuable upon conversion of this Note may not
be sold or transferred unless (i) such shares are sold pursuant to an effective registration
statement under the Act or (ii) the Company or its transfer agent shall have been furnished with an
opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of
counsel in comparable transactions) to the effect that the shares to be sold or transferred may be
sold or transferred pursuant to an exemption from such registration or (iii) such shares are sold
or transferred pursuant to Rule 144 under the Act (or a successor rule) (“Rule 144”) or (iv) such
shares are transferred to an “affiliate” (as defined in Rule 144) of the Company who agrees to sell
or otherwise transfer the shares only in accordance with this Section 3(e) and who is an accredited
investor. Until such time as the shares of Stock issuable upon conversion of this Note have been
registered under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as
to the public sale of such securities, each certificate for shares of Stock issuable upon
conversion of this Note that has not been so included in an effective registration statement or
that has not been sold pursuant to an effective registration statement or an exemption that permits
removal of the legend, shall bear a legend substantially in the following form, as appropriate:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE
SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF
AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER SAID ACT,
OR AN OPINION OF
COUNSEL IN FORM, SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL
IN COMPARABLE TRANSACTIONS, THAT REGISTRATION IS NOT REQUIRED UNDER
SAID ACT UNLESS SOLD PURSUANT TO RULE 144 OR REGULATION S UNDER SAID
ACT.”

 

Page 4

 

The legend set forth above shall be removed and the Company shall issue to the Holder a new
certificate therefor free of any transfer legend if (i) the Company or its transfer agent shall
have received an opinion of counsel, in form, substance and scope customary for opinions of counsel
in comparable transactions, to the effect that a public sale or transfer of such Stock may be made
without registration under the Act and the shares are so sold or transferred, (ii) such Holder
provides the Company or its transfer agent with reasonable assurances that the Stock issuable upon
conversion of this Note (to the extent such securities are deemed to have been acquired on the same
date) can be sold pursuant to Rule 144 or (iii) in the case of the Stock issuable upon conversion
of this Note, such security is registered for sale by the Holder under an effective registration
statement filed under the Act or otherwise may be sold pursuant to Rule 144 without any restriction
as to the public sale of such securities. Nothing in this Note shall affect in any way the
Holder’s obligations to comply with applicable prospectus delivery requirements upon the resale of
the securities referred to herein.

(f) Effect of Certain Events.

(i) Adjustment Due to Merger, Consolidation, Etc.

(A) If, at any time when this Note is issued and outstanding and prior to conversion of the
Note, there shall be any merger, consolidation, exchange of shares, recapitalization,
reorganization, or other similar event, as a result of which shares of Stock of the Company shall
be changed into the same or a different number of shares of another class or classes of stock or
securities of the Company or another entity, or in case of any sale or conveyance of all or
substantially all of the assets of the Company other than in connection with a plan of complete
liquidation of the Company, then the Holder of this Note shall thereafter have the right to receive
upon conversion of this Note, upon the basis and upon the terms and conditions specified herein and
in lieu of the shares of Stock immediately theretofore issuable upon conversion, such stock,
securities or assets which the Holder would have been entitled to receive in such transaction had
this Note been converted in full immediately prior to such transaction (without regard to any
limitations on conversion set forth herein), and in any such case appropriate provisions shall be
made with respect to the rights and interests of the Holder of this Note to the end that the
provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price
and of the number of shares issuable upon conversion of the Note) shall thereafter be applicable,
as nearly as may be practicable in relation to any securities or assets thereafter deliverable upon
the conversion hereof.

(B) The Company shall not effect any transaction described in this Section 3(f)(i)(A) unless
the resulting successor or acquiring entity (if not the Company) assumes by written instrument the
obligations of this Section 3(f)(i). The above provisions shall similarly apply to successive
consolidations, mergers, sales, transfers or share exchanges.

 

Page 5

 

(ii) Adjustment Due to Distribution. If the Company shall declare or make any distribution of
its assets (or rights to acquire its assets) to holders of Stock as a dividend or stock
repurchase, by way of return of capital, or otherwise (including any dividend or distribution
to the Company’s shareholders in cash or shares (or rights to acquire shares) of capital stock of a
subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled,
upon any conversion of this Note after the date of record for determining shareholders entitled to
such Distribution, to receive the amount of such assets which would have been payable to the Holder
with respect to the shares of Stock issuable upon such conversion had such Holder been the holder
of such shares of Stock on the record date for the determination of shareholders entitled to such
Distribution.

(iii) Subdivision or Combination of Stock. If the Company at any time subdivides (by any
stock split, stock dividend, recapitalization, reorganization, reclassification or otherwise) the
shares of Stock acquirable hereunder into a greater number of shares, then, after the date of
record for effecting such subdivision, the Conversion Price in effect immediately prior to such
subdivision will be proportionately reduced. If the Company at any time combines (by reverse stock
split, recapitalization, reorganization, reclassification or otherwise) the shares of Stock
acquirable hereunder into a smaller number of shares, then, after the date of record for effecting
such combination, the Conversion Price in effect immediately prior to such combination will be
proportionately increased.

(iv) Notice of Adjustments. Upon the occurrence of each adjustment or readjustment of the
Conversion Price as a result of the events described in this Section 3(f), the Company, at its
expense, shall promptly compute such adjustment or readjustment and prepare and furnish to the
Holder a certificate setting forth such adjustment or readjustment and showing in detail the facts
upon which such adjustment or readjustment is based. The Company shall, upon the written request
at any time of the Holder, furnish to such Holder a like certificate setting forth (i) such
adjustment or readjustment, (ii) the Conversion Price at the time in effect and (iii) the number of
shares of Stock and the amount, if any, of other securities or property which at the time would be
received upon conversion of the Note.

(v) Minimum Adjustment of Conversion Price. No adjustment of the Conversion Price shall be
made in an amount of less than 1% of the Conversion Price in effect at the time such adjustment is
otherwise required to be made, but any such lesser adjustment shall be carried forward and shall be
made at the time and together with the next subsequent adjustment which, together with any
adjustments so carried forward, shall amount to not less than 1% of such Conversion Price.

(g) Status as Shareholder. Upon submission of a Notice of Conversion by a Holder in
accordance with Section 3(d) hereof, (i) the shares covered thereby shall be deemed converted into
shares of Stock and (ii) the Holder’s rights as a Holder of such converted portion of this Note
shall cease and terminate, excepting only the right to receive certificates for such shares of
Stock and to any remedies provided herein or otherwise available at law or in equity to such Holder
because of a failure by the Company to comply with the terms of this Note.

 

Page 6

 

Section 4. Origination Fee.

As additional consideration beyond interest, the Company shall pay the Holder an origination
fee of $43,125 for the origination of this Note.

Section 5. Maturity.

On December 31, 2009 (the “Maturity Date”), the entire outstanding Principal balance of this
Note shall mature and be due and payable to the Holder by the Company.

Section 6. Prepayment.

The Company may not prepay this Note at any time without the prior written consent of the
Holder. All obligations of the Company under this Note of shall terminate at such time.

Section 7. Events of Default.

(a) “Event of Default”, wherever used herein, means any one of the following events (whatever
the reason and whether it shall be voluntary or involuntary or effected by operation of law or
pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any
administrative or governmental body):

(i) any default in the payment of the principal amount of this Note, as and when the same
shall become due and payable (whether on the Maturity Date or by acceleration or otherwise) which
default is not cured, within 5 Trading Days;

(ii) the Company shall fail to observe or perform any other covenant or agreement contained in
this Note which failure is not cured, if possible to cure, within 5 Trading Days after notice of
such default sent by the Holder;

(iii) any representation or warranty made herein shall be untrue or incorrect in any material
respect as of the date when made or deemed made;

(iv) (i) the Company shall commence, or there shall be commenced against the Company, a case
under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor
thereto, or the Company commences any other proceeding under any reorganization, arrangement,
adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any
jurisdiction whether now or hereafter in effect relating to the Company or (ii) there is commenced
against the Company any such bankruptcy, insolvency or other proceeding which remains undismissed
for a period of 60 days; or (iii) the Company is adjudicated by a court of competent jurisdiction
insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding
is entered; or (iv) the Company suffers any appointment of any custodian or the like for it or any
substantial part of its property which continues undischarged or unstayed for a period of 60 days;
or (v) the Company makes a general assignment for the benefit of creditors; or (vi) the Company
shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become
due; or (vii) the Company shall call a meeting of its creditors with a view to arranging a
composition, adjustment or restructuring of its debts; or (viii) the Company shall by any act or
failure to act
expressly indicate its consent to, approval of or acquiescence in any of the foregoing; or
(ix) any corporate or other action is taken by the Company for the purpose of effecting any of the
foregoing; or

 

Page 7

 

(v) except with respect to those liabilities set forth on Schedule 6(a)(v), attached hereto,
the Company shall default in any of its obligations under any mortgage, credit agreement or other
facility, indenture agreement, factoring agreement or other instrument under which there may be
issued, or by which there may be secured or evidenced any indebtedness for borrowed money or money
due under any long term leasing or factoring arrangement of the Company in an amount exceeding
$100,000, whether such indebtedness now exists or shall hereafter be created and such default shall
result in such indebtedness becoming or being declared due and payable prior to the date on which
it would otherwise become due and payable.

(b) Remedies Upon Event of Default. If any Event of Default occurs, the full
principal amount of this Note to the date of acceleration shall become, at the Holder’s election,
immediately due and payable in full. The Holder need not provide and the Company hereby waives
any presentment, demand, protest or other notice of any kind (with the exception of the notice and
opportunity to cure provided in Section 7(a)(ii) above), and the Holder may immediately and without
expiration of any grace period enforce any and all of its rights and remedies hereunder and all
other remedies available to it under applicable law. Such declaration may be rescinded and
annulled by the Holder at any time prior to payment hereunder and the Holder shall have all rights
as a Note holder until such time, if any, as the full payment under this Section shall have been
received by it. No such rescission or annulment shall affect any subsequent Event of Default or
impair any right consequent thereon.

Section 8. Miscellaneous.

(a) Notices. Any and all notices or other communications or deliveries to be provided
by the Holder hereunder by facsimile, sent by a nationally recognized overnight courier service,
addressed to the Company, at BioGold Fuels Corporation, 1800 Century Park East, Suite 600, Los
Angeles, CA 90067, facsimile number, (310) 564-7611, Attn: CEO and CFO, or such other address or
facsimile number as the Company may specify for such purposes by notice to the Holder delivered in
accordance with this Section. Any and all notices or other communications or deliveries to be
provided by the Company hereunder shall be in writing and delivered personally, by facsimile, sent
by a nationally recognized overnight courier service addressed to the Holder at the facsimile
telephone number or address of such Holder appearing on the books of the Company, or if no such
facsimile telephone number or address appears, at the principal place of business of the Holder.
Any notice or other communication or deliveries hereunder shall be deemed given and effective on
the earliest of (i) the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile telephone number specified in this Section prior to 5:30 p.m. (local
time in Los Angeles, California), (ii) the date after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile telephone number specified in this
Section later than 5:30 p.m. (local time in Los Angeles, California) on any date and earlier than
11:59 p.m. (local time in Los Angeles, California) on such date, (iii) the second Business Day
following the date of mailing, if sent by nationally recognized overnight courier service, or
(iv) upon actual receipt by the party to whom such notice is required to be given.

(b) Absolute Obligation. Except as expressly provided herein, no provision of this
Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to
pay the
principal of this Note at the time, place, and rate, and in the coin or currency, herein
prescribed. This Note is a direct debt obligation of the Company.

 

Page 8

 

(c) Lost or Mutilated Note. If this Note shall be mutilated, lost, stolen or
destroyed, the Company shall execute and deliver, in exchange and substitution for and upon
cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or destroyed
Note, a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed but
only upon receipt of evidence of such loss, theft or destruction of such Note, and of the ownership
hereof, and indemnity, if requested, all reasonably satisfactory to the Company.

(d) Security Interest. This Note is a direct debt obligation of the Company and is
secured by a first priority (other than with respect to the Senior Secured Promissory Note issued
to Heritage Holding Group, LLC in the aggregate principal amount of $550,000 on March 3, 2008, as
amended (the “Senior Note”)) perfected security interest in all of the assets of the Company for
the benefit of the Holder. The Holder and the Company have agreed to and more fully provided the
Holder’s Security Interest in that certain Security Agreement, by and among the Parties hereto, of
even date herewith, attached hereto as Exhibit A (the “Security Agreement”). The Security
Agreement is incorporated by reference herein in its entirety.

(e) Governing Law. All questions concerning the construction, validity, enforcement
and interpretation of this Note shall be governed by and construed and enforced in accordance with
the internal laws of the State of California, without regard to the principles of conflicts of law
thereof.

(f) Waiver. Any waiver by the Company or the Holder of a breach of any provision of
this Note shall not operate as or be construed to be a waiver of any other breach of such provision
or of any breach of any other provision of this Note. The failure of the Company or the Holder to
insist upon strict adherence to any term of this Note on one or more occasions shall not be
considered a waiver or deprive that party of the right thereafter to insist upon strict adherence
to that term or any other term of this Note. Any waiver must be in writing.

(g) Severability. If any provision of this Note is invalid, illegal or unenforceable,
the balance of this Note shall remain in effect, and if any provision is inapplicable to any Person
or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances.
If it shall be found that any interest or other amount deemed interest due hereunder violates
applicable laws governing usury, the applicable rate of interest due hereunder shall automatically
be lowered to equal the maximum permitted rate of interest. The Company covenants (to the extent
that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law
which would prohibit or forgive the Company from paying all or any portion of the principal of or
interest on this Note as contemplated herein, wherever enacted, now or at any time hereafter in
force, or which may affect the covenants or the performance of this Note, and the Company (to the
extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law,
and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of
any power herein granted to the Holder.

(h) Next Business Day. Whenever any payment or other obligation hereunder shall be
due on a day other than a Business Day, such payment shall be made on the next succeeding Business
Day.

 

Page 9

 

(i) Headings. The headings contained herein are for convenience only, do not
constitute a part of this Note and shall not be deemed to limit or affect any of the provisions
hereof.

(j) Seniority. This Note is senior in right of payment to any and all other
indebtedness of the Company except for the Senior Note.

*********************

 

Page 10

 

IN WITNESS WHEREOF, the Company has caused this Note to be duly executed by a duly authorized
officer as of the date first above indicated.

	 	 	 	 	 	 	 	 	 
	 	 	BIOGOLD FUELS CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Chris Barsness	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Chris Barsness	 	 
	 

	 	 	 	Title:
	 	Chief Financial Officer	 	 

AGREED AND ACKNOWLEDGED

HERITAGE OPPORTUNITY FUND, LLC

	 	 	 	 	 	 	 
	By:	 	/s/ Ryan Bowers	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

 

Page 11

 

EXHIBIT A

Security Agreement

 

Page 12

 

EXHIBIT B

NOTICE OF CONVERSION

(To be Executed by the Registered Holder

in order to Convert the Note)

The undersigned hereby irrevocably elects to convert $_____ 
principal amount of the Note
(defined below) into shares of stock (“Stock”), of BioGold Fuels Corporation, a Nevada corporation
(the “Company”) according to the conditions of the Senior Secured Convertible Promissory Note of
the Company dated as of September 2, 2008 (the “Note”), as of the date written below. If
securities are to be issued in the name of a person other than the undersigned, the undersigned
will pay all transfer taxes payable with respect thereto and is delivering herewith such
certificates. No fee will be charged to the Holder for any conversion, except for transfer taxes,
if any. A copy of each Note is attached hereto (or evidence of loss, theft or destruction
thereof).

The undersigned hereby requests that the Company issue a certificate or certificates for the number
of shares of Stock set forth below (which numbers are based on the Holder’s calculation attached
hereto) in the name(s) specified immediately below or, if additional space is necessary, on an
attachment hereto:

	 	 	 	 	 
	Name:
	 	 	 	 
	Address:

	 	 

	 	 
	 

	 	 

	 	 

The undersigned represents and warrants that all offers and sales by the undersigned of the
securities issuable to the undersigned upon conversion of the Note shall be made pursuant to
registration of the securities under the Securities Act of 1933, as amended (the “Act”), or
pursuant to an exemption from registration under the Act.

	 	 	 	 	 	 	 	 	 
	Date of Conversion:	 	 	 	 	 	 
	 	 	 	 	 	 
	Applicable Conversion Price:	 	 	 	 	 
	 	 	 	 
	Number of Shares
of Stock to be Issued Pursuant to  Conversion of the Note:	 	 
	 	 	 	
 
	 	 
	Signature:
	 	 	 	 	 	 	 	 
	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 	 	 	 

The Company shall issue and deliver shares of Stock to an overnight courier not later than three
business days following receipt of the original Note(s) to be converted, and shall make payments
pursuant to the Note for the number of business days such issuance and delivery is late.

 

Page 13

 

Schedule 6(a)(v)

 

Page 14

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