Document:

Option
      No.: _______

     

    

    H2DIESEL
      HOLDINGS, INC.

    2007
      OMNIBUS INCENTIVE PLAN

     

    INCENTIVE
      STOCK OPTION AGREEMENT

     

    H2Diesel
      Holdings, Inc., a Florida corporation (the “Company”), hereby grants an option
      to purchase shares of its common stock, $.001 par value, (the “Stock”) to the
      optionee named below. Additional terms and conditions of the grant are set
      forth
      in this cover sheet and in the attachment (collectively the “Agreement”), and in
      the Company’s 2007 Omnibus Incentive Plan (the “Plan”).

     

    Grant
      Date: __________________, 200__

     

    Name
      of
      Optionee: _________________________________________________

     

    Optionee’s
      Employee Identification Number: _____-____-_____

     

    Number
      of
      Shares Covered by Option: ______________

     

    Option
      Price per Share: $_____.___ (At
      least 100% of Fair Market Value)

     

    Vesting
      Start Date: _________________, ____

     

    By
      signing this cover sheet, you agree to all of the terms and conditions described
      in the attached Agreement and in the Plan, a copy of which is also attached.
      You
      acknowledge that you have carefully reviewed the Plan, and agree that the Plan
      will control in the event any provision of this Agreement should appear to
      be
      inconsistent with the Plan. Certain capitalized terms used in this Agreement
      are
      defined in the Plan, and have the meaning set forth in the
      Plan.

     

    Optionee: 

    
      

    

     (Signature)

    Company:   

    
      

    

    (Signature)

    Title:  

    
      

    

     

    This
      is
      not a stock certificate or a negotiable instrument.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    H2DIESEL
      HOLDINGS, INC.

    2007
      OMNIBUS INCENTIVE PLAN

     

    INCENTIVE
      STOCK OPTION AGREEMENT

     

    
      	
              Incentive
                Stock Option

            	 	
              This
                option is intended to be an incentive stock option under Section
                422 of
                the Internal Revenue Code and will be interpreted accordingly. If
                you
                cease to be an employee of the Company, its parent or a subsidiary
                ("Employee") but continue to provide Service, this option will be
                deemed a
                nonstatutory stock option three months after you cease to be an Employee.
                In addition, to the extent that all or part of this option exceeds
                the
                $100,000 rule of section 422(d) of the Internal Revenue Code, this
                option
                or the lesser excess part will be deemed to be a nonstatutory stock
                option.

            
	 	 	 
	
              Vesting

            	 	
              This
                option is only exercisable before it expires and then only with respect
                to
                the vested portion of the option. Subject to the preceding sentence,
                you
                may exercise this option, in whole or in part, to purchase a whole
                number
                of vested shares not less than 100 shares, unless the number of shares
                purchased is the total number available for purchase under the option,
                by
                following the procedures set forth in the Plan and below in this
                Agreement.

               

              [Your
                right to the Stock under this Restricted Stock Agreement vests as
                to
                one-third (1/3rd) of the total number of shares of Stock covered
                by this
                grant, as shown on the cover sheet, on the first anniversary of the
                Vesting Date, provided you then continue in Service. Thereafter,
                you will
                vest in equal installments every month for the following 24 months.
                The
                resulting aggregate number of vested shares will be rounded down
                to the
                nearest whole number, and you cannot vest in more than the number
                of
                shares covered by this option.]

               

              No
                additional shares of Stock will vest after your Service has terminated
                for
                any reason.

            
	 	 	 
	
              Term

            	 	
              Your
                option will expire in any event at the close of business at Company
                headquarters on the day before the 10th anniversary of the Grant
                Date, as
                shown on the cover sheet. Your option will expire earlier if your
                Service
                terminates, as described below.

            
	 	 	 
	
              Regular
                Termination

            	 	
              If
                your Service terminates for any reason, other than death, Disability
                or
                Cause, then your option will expire at the close of business at Company
                headquarters on the 90th day after your termination
                date.

            
	 	 	 
	
              Termination
                for Cause

            	 	
              If
                your Service is terminated for Cause, then you shall immediately
                forfeit
                all rights to your option and the option shall immediately expire.
                

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
              Death

            	 	
              If
                your Service terminates because of your death, then your option will
                expire at the close of business at Company headquarters on the date
                twelve
                (12) months after the date of death. During that twelve month period,
                your
                estate or heirs may exercise the vested portion of your
                option.

               

              In
                addition, if you die during the 90-day period described in connection
                with
                a regular termination (i.e., a termination of your Service not on
                account
                of your death, Disability or Cause), and a vested portion of your
                option
                has not yet been exercised, then your option will instead expire
                on the
                date twelve (12) months after your termination date. In such a case,
                during the period following your death up to the date twelve (12)
                months
                after your termination date, your estate or heirs may exercise the
                vested
                portion of your option. 

            
	 	 	 
	
              Disability

            	 	
              If
                your Service terminates because of your Disability, then your option
                will
                expire at the close of business at Company headquarters on the date
                twelve
                (12) months after your termination date.

            
	 	 	 
	
              Leaves
                of Absence

            	 	
              For
                purposes of this option, your Service does not terminate when you
                go on a
                bona
                fide
                employee leave of absence that was approved by the Company in writing,
                if
                the terms of the leave provide for continued Service crediting, or
                when
                continued Service crediting is required by applicable law. However,
                your
                Service will be treated as terminating 90 days after you went on
                employee
                leave, unless your right to return to active work is guaranteed by
                law or
                by a contract. Your Service terminates in any event when the approved
                leave ends unless you immediately return to active employee
                work.

               

              The
                Company determines, in its sole discretion, which leaves count for
                this
                purpose, and when your Service terminates for all purposes under
                the
                Plan.

            
	 	 	 
	
              Notice
                of Exercise

            	 	
              When
                you wish to exercise this option, you must notify the Company by
                filing
                the proper “Notice of Exercise” form at the address given on the form.
                Your notice must specify how many shares you wish to purchase (in
                a parcel
                of at least 100 shares generally). Your notice must also specify
                how your
                shares of Stock should be registered (e.g. in your name only or in
                your
                and your spouse’s names as joint tenants with right of survivorship). The
                notice will be effective when it is received by the Company. 

               

              If
                someone else wants to exercise this option after your death, that
                person
                must prove to the Company’s satisfaction that he or she is entitled to do
                so.

            

    

      

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              Form
                of Payment

            	 	
              When
                you submit your notice of exercise, you must include payment of the
                option
                price for the shares you are purchasing. Payment may be made in one
                (or a
                combination) of the following forms:

               

              · Cash,
                your personal check, a cashier’s check, a money order or another cash
                equivalent acceptable to the Company.

               

              · Shares
                of Stock which have already been owned by you and which are surrendered
                to
                the Company. The value of the shares, determined as of the effective
                date
                of the option exercise, will be applied to the option price.

               

              · By
                delivery (on a form prescribed by the Company) of an irrevocable
                direction
                to a licensed securities broker acceptable to the Company to sell
                Stock
                and to deliver all or part of the sale proceeds to the Company in
                payment
                of the aggregate option price and any withholding
                taxes.

            
	 	 	 
	
              Withholding
                Taxes

            	 	
              You
                will not be allowed to exercise this option unless you make acceptable
                arrangements to pay any withholding or other taxes that may be due
                as a
                result of the option exercise or sale of Stock acquired under this
                option.
                In the event that the Company determines that any federal, state,
                local or
                foreign tax or withholding payment is required relating to the exercise
                or
                sale of shares arising from this grant, the Company shall have the
                right
                to require such payments from you, or withhold such amounts from
                other
                payments due to you from the Company or any Affiliate. Subject to
                the
                prior approval of the Company, which may be withheld by the Company,
                in
                its sole discretion, you may elect to satisfy this withholding obligation,
                in whole or in part, by causing the Company to withhold shares of
                Stock
                otherwise issuable to you or by delivering to the Company shares
                of Stock
                already owned by you. The shares of Stock so delivered or withheld
                must
                have an aggregate Fair Market Value equal to the withholding obligation
                and may not be subject to any repurchase, forfeiture, unfulfilled
                vesting,
                or other similar requirements. 

            
	 	 	 
	
              Corporate
                Transaction

            	 	
              Notwithstanding
                the vesting schedule set forth above, upon the consummation of a
                Corporate
                Transaction, this option will become 100% vested (i) if it is not
                assumed,
                or equivalent options are not substituted for the options, by the
                Company
                or its successor, or (ii) upon your Involuntary Termination within
                the
                12-month period following the consummation of the Corporate Transaction.
                Notwithstanding any other provision in this agreement, if assumed
                or
                substituted for, the option will expire one year after the date of
                termination. 

            

    

      

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	 	 	
              “Involuntary
                Termination” means termination of your Service by reason of (i) your
                involuntary dismissal by the Company or its successor for reasons
                other
                than Cause; or (ii) your voluntary resignation for Good Reason as
                defined
                in any applicable employment or severance agreement, plan, or arrangement
                between you and the Company, or if none, then as set forth in the
                Plan
                following (x) a
                substantial adverse alteration in your title or responsibilities
                from those in effect immediately prior to the Corporate Transaction;
                (y) a
                reduction in your annual base salary as
                of immediately prior to the Corporate Transaction (or as the same
                may be
                increased from time to time)
                or
                a material reduction in your annual target bonus opportunity as of
                immediately prior to the Corporate Transaction;
                or (z) the relocation of your principal place of employment to a
                location
                more than 35 miles from your principal place of employment as of
                the
                Corporate Transaction or the Company's requiring you to be based
                anywhere
                other than such principal place of employment (or permitted relocation
                thereof) except for required travel on the Company's business to
                an extent
                substantially consistent with your business travel obligations as
                of
                immediately prior to the Corporate Transaction. 

            
	 	 	 
	
              Transfer
                of Option

            	 	
              During
                your lifetime, only you (or, in the event of your legal incapacity
                or
                incompetency, your guardian or legal representative) may exercise
                the
                option. You cannot transfer or assign this option. For instance,
                you may
                not sell this option or use it as security for a loan. If you attempt
                to
                do any of these things, this option will immediately become invalid.
                You
                may, however, dispose of this option in your will or it may be transferred
                upon your death by the laws of descent and distribution.

              Regardless
                of any marital property settlement agreement, the Company is not
                obligated
                to honor a notice of exercise from your spouse, nor is the Company
                obligated to recognize your spouse’s interest in your option in any other
                way.

            
	 	 	 
	
              Retention
                Rights

            	 	
              Neither
                your option nor this Agreement give you the right to be retained
                by the
                Company (or any Parent, Subsidiaries or Affiliates) in any capacity.
                The
                Company (and any Parent, Subsidiaries or Affiliates) reserve the
                right to
                terminate your Service at any time and for any reason.

            
	 	 	 
	
              Shareholder
                Rights

            	 	
              You,
                or your estate or heirs, have no rights as a shareholder of the Company
                until a certificate for your option’s shares has been issued (or an
                appropriate book entry has been made). No adjustments are made for
                dividends or other rights if the applicable record date occurs before
                your
                stock certificate is issued (or an appropriate book entry has been
                made),
                except as described in the Plan.

            

    

      

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
              [Forfeiture
                of Rights

            	 	
              If
                during your term of Service you should take actions in competition
                with
                the Company, the Company shall have the right to cause a forfeiture
                of
                your rights, including, but not limited to, the right to cause: (i) a
                forfeiture of any outstanding option, and (ii) with respect to the
                period commencing twelve (12) months prior to your termination of
                Service
                with the Company and ending twelve (12) months following such termination
                of Service (A) a forfeiture of any gain recognized by you upon the
                exercise of an option or (B) a forfeiture of any Stock acquired by
                you
                upon the exercise of an option (but the Company will pay you the
                option
                price without interest). Unless otherwise specified in an employment
                or
                other agreement between the Company and you, you take actions in
                competition with the Company if you directly or indirectly, own,
                manage,
                operate, join or control, or participate in the ownership, management,
                operation or control of, or are a proprietor, director, officer,
                stockholder, member, partner or an employee or agent of, or a consultant
                to any business, firm, corporation, partnership or other entity which
                competes with any business in which the Company or any of its Affiliates
                is engaged during your employment or other relationship with the
                Company
                or its Affiliates or at the time of your termination of Service.
                Under the
                prior sentence, ownership of less than 1% of the securities of a
                public
                company shall not be treated as an action in competition with the
                Company.]

            
	 	 	 
	
              Adjustments

            	 	
              In
                the event of a stock split, a stock dividend or a similar change
                in the
                Stock, the number of shares covered by this option and the option
                price
                per share shall be adjusted (and rounded down to the nearest whole
                number)
                pursuant to the Plan. Your option shall be subject to the terms of
                the
                agreement of merger, liquidation or reorganization in the event the
                Company is subject to such corporate activity in accordance with
                the terms
                of the Plan.

            
	 	 	 
	
              Applicable
                Law

            	 	
              This
                Agreement will be interpreted and enforced under the laws of the
                State of
                Florida, other than any conflicts or choice of law rule or principle
                that
                might otherwise refer construction or interpretation of this Agreement
                to
                the substantive law of another jurisdiction.

            
	 	 	 
	
              The
                Plan 

            	 	
              The
                text of the Plan is incorporated in this Agreement by reference.
                

               

              This
                Agreement and the Plan constitute the entire understanding between
                you and
                the Company regarding this option. Any prior agreements, commitments
                or
                negotiations concerning this option are
                superseded.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              Data
                Privacy

            	 	
              In
                order to administer the Plan, the Company may process personal data
                about
                you. Such data includes but is not limited to the information provided
                in
                this Agreement and any changes thereto, other appropriate personal
                and
                financial data about you such as home address and business addresses
                and
                other contact information, payroll information and any other information
                that might be deemed appropriate by the Company to facilitate the
                administration of the Plan.

            
	 	 	 
	 	 	
              By
                accepting this option, you give explicit consent to the Company to
                process
                any such personal data. You also give explicit consent to the Company
                to
                transfer any such personal data outside the country in which you
                work or
                are employed, including, with respect to non-U.S. resident Optionees,
                to
                the United States, to transferees who shall include the Company and
                other
                persons who are designated by the Company to administer the
                Plan.

            
	 	 	 
	
              Consent
                to Electronic Delivery

            	 	
              The
                Company may choose to deliver certain statutory materials relating
                to the
                Plan in electronic form. By accepting this option grant you agree
                that the
                Company may deliver the Plan prospectus and the Company’s annual report to
                you in an electronic format. If at any time you would prefer to receive
                paper copies of these documents, as you are entitled to, the Company
                would
                be pleased to provide copies. Please contact [            
                 ]
                at
                [              ]
                to
                request paper copies of these documents.

            
	 	 	 
	
              Certain
                Dispositions

            	 	
              If
                you sell or otherwise dispose of Stock acquired pursuant to the exercise
                of this option sooner than the one year anniversary of the date you
                acquired the Stock, then you agree to notify the Company in writing
                of the
                date of sale or disposition, the number of share of Stock sold or
                disposed
                of and the sale price per share within 30 days of such sale or
                disposition.

            

    

     

    By
      signing the cover sheet of this Agreement, you agree to all of the terms and
      conditions
      described above and in the Plan.

     

    
      
        
        

      

      
        7Grant
        No.: _____

      

      H2DIESEL
        HOLDINGS, INC.

      2007
        OMNIBUS INCENTIVE PLAN

       

      RESTRICTED
        STOCK AGREEMENT

       

      H2Diesel
        Holdings, Inc., a Florida corporation (the “Company”), hereby grants shares of
        its common stock, $.001 par value (the “Stock”), to the Grantee named below,
        subject to the vesting conditions set forth in the attachment. Additional
        terms
        and conditions of the grant are set forth in this cover sheet and in the
        attachment (collectively, the “Agreement”) and in the Company’s 2007 Omnibus
        Incentive Plan (the “Plan”).

       

      Grant
        Date:________ ___, _______

       

      Name
        of
        Grantee: __________________

       

      Grantee's
        Employee Identification Number: ______________

       

      Number
        of
        Shares of Stock Covered by Grant: ___________

       

      Purchase
        Price per Share of Stock: $_____.___ 

       

      Vesting
        Start Date: __________________, _____

       

      By
        signing this cover sheet, you agree to all of the terms and conditions described
        in this Agreement and in the Plan, a copy of which is also attached. You
        acknowledge that you have carefully reviewed the Plan, and agree that the
        Plan
        will control in the event any provision of this Agreement should appear to
        be
        inconsistent with the Plan. Certain capitalized terms used in this Agreement
        are
        defined in the Plan, and have the meaning set forth in the
        Plan.

       

      
        	Grantee:	 	 
                
	 	 	
                (Signature)

              
	 	 	 
	Company:  	 	 
                
	 	 	
                (Signature)

              
	
                Title:

              	 	 
                

      

        

      This
        is not a stock certificate or a negotiable instrument.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      H2DIESEL
        HOLDINGS, INC.

      2007
        OMNIBUS INCENTIVE PLAN

       

      RESTRICTED
        STOCK AGREEMENT

       

      
        	
                Restricted
                  Stock/ Nontransferability

              	 	
                This
                  grant is an award of Stock in the number of shares set forth on
                  the cover
                  sheet, at the purchase price set forth on the cover sheet, and
                  subject to
                  the vesting conditions described below ("Restricted Stock"). The
                  purchase
                  price is deemed paid by your prior services to the Company. 
                  To
                  the extent not yet vested, your Restricted Stock may not be transferred,
                  assigned, pledged or hypothecated, whether by operation of law
                  or
                  otherwise, nor may the Restricted Stock be made subject to execution,
                  attachment or similar process. 

              
	 	 	 
	
                Vesting

              	 	
                The
                  Company will issue your Restricted Stock in your name as of the
                  Grant
                  Date. 

                 

                [Your
                  right to the Stock under this Restricted Stock Agreement vests
                  as to
                  one-third (1/3rd) of the total number of shares of Stock covered
                  by this
                  grant, as shown on the cover sheet, on the first anniversary of
                  the
                  Vesting Date, provided you then continue in Service. Thereafter,
                  you will
                  vest in equal installments every month for the following 24 months.
                  If,
                  however, such vesting would occur during a period in which you
                  are (i)
                  subject to a lock-up agreement restricting your ability to sell
                  shares of
                  Stock in the open market or (ii) restricted from selling shares
                  of Stock
                  in the open market because you are not then eligible to sell under
                  the
                  Company’s insider trading or similar plan as then in effect (whether
                  because a trading window is not open or you are otherwise restricted
                  from
                  trading), vesting in such shares of Stock will be delayed until
                  the first
                  date on which you are no longer prohibited from selling shares
                  of Stock
                  due to a lock-up agreement or insider trading plan restriction
                  (the
                  “Vesting Date”), and provided, further, that you have been continuously in
                  Service to the Company or a Subsidiary from the Grant Date until
                  the
                  Vesting Date. The resulting aggregate number of vested shares of
                  Stock
                  will be rounded down to the nearest whole number, and you cannot
                  vest in
                  more than the number of shares covered by this grant.] 1/

                 

                No
                  additional shares of Stock will vest after your Service has terminated
                  for
                  any reason.

              

      

       

        
          

        

      

      
        1/ 
          To be discussed.

         

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      
        	
                Forfeiture
                  of Unvested Stock

              	 	
                In
                  the event that your Service terminates for any reason, you will
                  forfeit to
                  the Company all of the shares of Stock subject to this grant that
                  have not
                  yet vested or with respect to which all applicable restrictions
                  and
                  conditions have not lapsed. 2

              
	 	 	 
	
                Leaves
                  of Absence

              	 	
                For
                  purposes of this option, your Service does not terminate when you
                  go on a
                  bona
                  fide
                  employee leave of absence that was approved by the Company in writing,
                  if
                  the terms of the leave provide for continued Service crediting,
                  or when
                  continued Service crediting is required by applicable law. However,
                  your
                  Service will be treated as terminating 90 days after you went on
                  employee
                  leave, unless your right to return to active work is guaranteed
                  by law or
                  by a contract. Your Service terminates in any event when the approved
                  leave ends unless you immediately return to active employee
                  work.

                 

                The
                  Company determines, in its sole discretion, which leaves count
                  for this
                  purpose, and when your Service terminates for all purposes under
                  the
                  Plan.

              
	 	 	 
	
                Issuance

              	 	
                The
                  issuance of the Stock under this grant shall be evidenced in such
                  a manner
                  as the Company, in its discretion, will deem appropriate, including,
                  without limitation, book-entry, registration or issuance of one
                  or more
                  Stock certificates, with any unvested Restricted Stock bearing
                  a legend
                  with the appropriate restrictions imposed by this Agreement. As
                  your
                  interest in the Stock vests as described above, the recordation
                  of the
                  number of shares of Restricted Stock attributable to you will be
                  appropriately modified.

              
	 	 	 
	
                Withholding
                  Taxes

              	 	
                You
                  agree, as a condition of this grant, that you will make acceptable
                  arrangements to pay any withholding or other taxes that may be
                  due as a
                  result of the payment of dividends or the vesting of Stock acquired
                  under
                  this grant. In the event that the Company determines that any federal,
                  state, or local tax or withholding payment is required relating
                  to the
                  payment of dividends or the vesting of shares arising from this
                  grant, the
                  Company shall have the right to require such payments from you,
                  or
                  withhold such amounts from other payments due to you from the Company
                  or
                  any Affiliate. Subject to the prior approval of the Company, which
                  may be
                  withheld by the Company, in its sole discretion, you may elect
                  to satisfy
                  this withholding obligation, in whole or in part, by causing the
                  Company
                  to withhold shares of Stock otherwise issuable to you or by delivering
                  to
                  the Company shares of Stock already owned by you. The shares of
                  Stock so
                  delivered or withheld must have an aggregate Fair Market Value
                  equal to
                  the withholding obligation and may not be subject to any repurchase,
                  forfeiture, unfulfilled vesting, or other similar requirements.
                  

              

      

      
         

        
          

        

        2
          Discuss
          whether vesting should be accelerated on death or
          disability.

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

         

      

      
        	
                Section
                  83(b) 

                Election

              	 	
                Under
                  Section 83 of the Internal Revenue Code of 1986, as amended (the
                  "Code"),
                  the difference between the purchase price paid for the shares of
                  Stock and
                  their Fair Market Value on the date any forfeiture restrictions
                  applicable
                  to such shares lapse will be reportable as ordinary income at that
                  time.
                  For this purpose, "forfeiture restrictions" include the forfeiture
                  as to
                  unvested Stock described above. You may elect to be taxed at the
                  time the
                  shares are acquired, rather than when such shares cease to be subject
                  to
                  such forfeiture restrictions, by filing an election under Section
                  83(b) of
                  the Code with the Internal Revenue Service within thirty (30) days
                  after
                  the Grant Date. You will have to make a tax payment to the extent
                  the
                  purchase price is less than the Fair Market Value of the shares
                  on the
                  Grant Date. No tax payment will have to be made to the extent the
                  purchase
                  price is at least equal to the Fair Market Value of the shares
                  on the
                  Grant Date. The form for making this election is attached as Exhibit
                  A
                  hereto. Failure to make this filing within the thirty (30) day
                  period will
                  result in the recognition of ordinary income by you (in the event
                  the Fair
                  Market Value of the shares as of the vesting date exceeds the purchase
                  price) as the forfeiture restrictions lapse.

                 

                YOU
                  ACKNOWLEDGE THAT IT IS YOUR SOLE RESPONSIBILITY, AND NOT THE COMPANY'S,
                  TO
                  FILE A TIMELY ELECTION UNDER SECTION 83(b), EVEN IF YOU REQUEST
                  THE
                  COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON YOUR BEHALF.
                  YOU ARE
                  RELYING SOLELY ON YOUR OWN ADVISORS WITH RESPECT TO THE DECISION
                  AS TO
                  WHETHER OR NOT TO FILE ANY 83(b) ELECTION.

              
	 	 	 
	
                Corporate
                  Transaction

              	 	
                Notwithstanding
                  the vesting schedule set forth above, upon the consummation of
                  a Corporate
                  Transaction, this award will become 100% vested (i) if it is not
                  assumed,
                  or equivalent awards are not substituted for the award, by the
                  Company or
                  its successor, or (ii) if assumed or substituted for, upon your
                  Involuntary Termination within the 12-month period following the
                  consummation of the Corporate Transaction. Notwithstanding any
                  other
                  provision in this Agreement, if assumed or substituted for, the
                  award will
                  expire one year after the date of termination of Service.
                  

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        	 	 	
                “Involuntary
                  Termination” means termination of your Service by reason of (i) your
                  involuntary dismissal by the Company or its successor for reasons
                  other
                  than Cause; or (ii) your voluntary resignation for Good Reason
                  as defined
                  in any applicable employment or severance agreement, plan, or arrangement
                  between you and the Company, or if none, then as set forth in the
                  Plan
                  following (x) a
                  substantial adverse alteration in your title or responsibilities
                  from those in effect immediately prior to the Corporate Transaction;
                  (y) a
                  reduction in your annual base salary as
                  of immediately prior to the Corporate Transaction (or as the same
                  may be
                  increased from time to time)
                  or
                  a material reduction in your annual target bonus opportunity as
                  of
                  immediately prior to the Corporate Transaction;
                  or (z) the relocation of your principal place of employment to
                  a location
                  more than 35 miles from your principal place of employment as of
                  the
                  Corporate Transaction or the Company's requiring you to be based
                  anywhere
                  other than such principal place of employment (or permitted relocation
                  thereof) except for required travel on the Company's business to
                  an extent
                  substantially consistent with your business travel obligations
                  as of
                  immediately prior to the Corporate Transaction.

              
	 	 	 
	
                Retention
                  Rights

              	 	
                Neither
                  your award nor this Agreement give you the right to be retained
                  by the
                  Company (or any Parent, Subsidiaries or Affiliates) in any capacity.
                  The
                  Company (and any Parent, Subsidiaries or Affiliates) reserve the
                  right to
                  terminate your Service at any time and for any reason.

              
	 	 	 
	
                Shareholder
                  Rights

              	 	
                You
                  have the right to vote the Restricted Stock and to receive any
                  dividends
                  declared or paid on such stock. Any distributions you receive as
                  a result
                  of any stock split, stock dividend, combination of shares or other
                  similar
                  transaction shall be deemed to be a part of the Restricted Stock
                  and
                  subject to the same conditions and restrictions applicable thereto.
                  The
                  Company may in its sole discretion require any dividends paid on
                  the
                  Restricted Stock to be reinvested in shares of Stock, which the
                  Company
                  may in its sole discretion deem to be a part of the shares of Restricted
                  Stock and subject to the same conditions and restrictions applicable
                  thereto. Except as described in the Plan, no adjustments are made
                  for
                  dividends if the applicable record date occurs before your stock
                  certificate is issued. 

              
	 	 	 
	
                [Forfeiture
                  of Rights

              	 	
                If
                  during your term of Service you should take actions in competition
                  with
                  the Company, the Company shall have the right to cause a forfeiture
                  of
                  your unvested Restricted Stock, and with respect to those shares
                  of
                  Restricted Stock vesting during the period commencing twelve (12)
                  months
                  prior to your termination of Service with the Company due to taking
                  actions in competition with the Company, the right to cause a forfeiture
                  of those vested shares of Stock.

                 

              

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      
        	 	 	
                Unless
                  otherwise specified in an employment or other agreement between
                  the
                  Company and you, you take actions in competition with the Company
                  if you
                  directly or indirectly, own, manage, operate, join or control,
                  or
                  participate in the ownership, management, operation or control
                  of, or are
                  a proprietor, director, officer, stockholder, member, partner or
                  an
                  employee or agent of, or a consultant to any business, firm, corporation,
                  partnership or other entity which competes with any business in
                  which the
                  Company or any of its Affiliates is engaged during your employment
                  or
                  other relationship with the Company or its Affiliates or at the
                  time of
                  your termination of Service. Under the prior sentence, ownership
                  of less
                  than 1% of the securities of a public company shall not be treated
                  as an
                  action in competition with the Company.] 

              
	 	 	 
	
                Adjustments

              	 	
                In
                  the event of a stock split, a stock dividend or a similar change
                  in the
                  Company Stock, the number of shares covered by this grant shall
                  be
                  adjusted (and rounded down to the nearest whole number) pursuant
                  to the
                  Plan. Your Restricted Stock shall be subject to the terms of the
                  agreement
                  of merger, liquidation or reorganization in the event the Company
                  is
                  subject to such corporate activity in accordance with the terms
                  of the
                  Plan. 

              
	 	 	 
	
                Legends

              	 	
                All
                  certificates representing the Stock issued in connection with this
                  grant
                  shall, where applicable, have endorsed thereon the following
                  legend:

                 

                “THE
                  SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS
                  ON TRANSFER SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE
                  REGISTERED HOLDER, OR HIS OR HER PREDECESSOR IN INTEREST. A COPY
                  OF SUCH
                  AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY AND
                  WILL BE
                  FURNISHED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY
                  BY THE
                  HOLDER OF RECORD OF THE SHARES REPRESENTED BY THIS
                  CERTIFICATE.”

              
	 	 	 
	
                Applicable
                  Law

              	 	
                This
                  Agreement will be interpreted and enforced under the laws of the
                  State of
                  Florida, other than any conflicts or choice of law rule or principle
                  that
                  might otherwise refer construction or interpretation of this Agreement
                  to
                  the substantive law of another
                  jurisdiction.

              

      

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      
        	
                The
                  Plan 

              	 	
                The
                  text of the Plan is incorporated in this Agreement by reference.
                  

                 

                This
                  Agreement and the Plan constitute the entire understanding between
                  you and
                  the Company regarding this grant of Restricted Stock. Any prior
                  agreements, commitments or negotiations concerning this grant are
                  superseded.

              
	 	 	 
	
                Data
                  Privacy

              	 	
                In
                  order to administer the Plan, the Company may process personal
                  data about
                  you. Such data includes but is not limited to the information provided
                  in
                  this Agreement and any changes thereto, other appropriate personal
                  and
                  financial data about you such as home address and business addresses
                  and
                  other contact information, payroll information and any other information
                  that might be deemed appropriate by the Company to facilitate the
                  administration of the Plan.

                 

                By
                  accepting this grant, you give explicit consent to the Company
                  to process
                  any such personal data. You also give explicit consent to the Company
                  to
                  transfer any such personal data outside the country in which you
                  work or
                  are employed, including, with respect to non-U.S. resident Grantees,
                  to
                  the United States, to transferees who shall include the Company
                  and other
                  persons who are designated by the Company to administer the
                  Plan.

              
	 	 	 
	
                Consent
                  to Electronic Delivery

              	 	
                The
                  Company may choose to deliver certain statutory materials relating
                  to the
                  Plan in electronic form. By accepting this grant you agree that
                  the
                  Company may deliver the Plan prospectus and the Company’s annual report to
                  you in an electronic format. If at any time you would prefer to
                  receive
                  paper copies of these documents, as you are entitled to, the Company
                  would
                  be pleased to provide copies. Please contact [                             
                  ] at
                  [                 
                  ] to
                  request paper copies of these
                  documents.

              

      

      

      By
        signing the cover sheet of this Agreement, you agree to all of the terms
        and
conditions
        described above and in the Plan.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A 

      

      ELECTION
        UNDER SECTION 83(b) OF

      THE
        INTERNAL REVENUE CODE

      

      The
        undersigned hereby makes an election pursuant to Section 83(b) of the Internal
        Revenue Code with respect to the property described below and supplies the
        following information in accordance with the regulations promulgated
        thereunder:

       

      1. The
        name,
        address and social security number of the undersigned:

       

      Name:
        ________________________________________

       

      Address:
        ______________________________________

       

      ______________________________________________

       

      Social
        Security No. : _____________________________

       

      2. Description
        of property with respect to which the election is being made:

       

      ________________shares
        of
        common stock, par value $.001 per share, H2Diesel 

      Holdings,
        Inc., a Florida corporation, (the “Company”).

       

      3. The
        date
        on which the property was transferred is ____________ __,
        200_.

       

      4. The
        taxable year to which this election relates is calendar year 200_.

       

      5. Nature
        of
        restrictions to which the property is subject:

       

      The
        shares of stock are subject to the provisions of a Restricted Stock Agreement
        between the undersigned and the Company. The shares of stock are subject
        to
        forfeiture under the terms of the Agreement.

       

      6. The
        fair
        market value of the property at the time of transfer (determined without
        regard
        to any lapse restriction) was $__________ per share, for a total of
        $__________.

       

      7. The
        amount paid by taxpayer for the property was $__________.

       

      8. A
        copy of
        this statement has been furnished to the Company.

       

      Dated:
        _____________, 2007

       

      
        	 	 	       

	 	 	Taxpayer’s Signature
	 	 	 
	 	 	         

	 	 	Taxpayer’s Printed
                Name

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      PROCEDURES
        FOR MAKING ELECTION

      UNDER INTERNAL REVENUE CODE SECTION 83(b)

      

      The
        following procedures must
        be
        followed with respect to the attached form for making an election under Internal
        Revenue Code section 83(b) in order for the election to be
        effective:3 

      

      1. You
        must
        file one copy of the completed election form with the IRS Service Center
        where
        you file your federal income tax returns within 30
        days
        after
        the Grant Date of your Restricted Stock.

      

      2. At
        the
        same time you file the election form with the IRS, you must also give a copy
        of
        the election form to the Secretary of the Company. 

      

      3. You
        must file another copy of the election form with your federal income tax
        return
        (generally, Form 1040) for the taxable year in which the stock is transferred
        to
        you.

      

        

        
          3  Whether
            or not to make the election is your decision and may create tax consequences
            for
            you. You are advised to consult your tax advisor if you are unsure whether
            or
            not to make the election.

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