Document:

exhibit1074.htm

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      TRANSFER
OF SECURITIES ACKNOWLEDGMENT AND AGREEMENT

      

      

      THIS
TRANSFER OF SECURITIES ACKNOWLEDGMENT AND AGREEMENT (this "Agreement") is made as of June
26, 2008, between PNG Ventures,
Inc., a Nevada corporation (the "Company"), and Radcliffe SPC, Ltd. for and on behalf
of the Class A Segregated Portfolio (the "Investor").

       

      WHEREAS, reference is hereby
made to (i) that certain Settlement Exchange Agreement (the "Settlement Exchange
Agreement"), dated as of June 26, 2008, pursuant to which, Earth
Biofuels, Inc., a Delaware corporation (the "EBOF") has sold 12%
Convertible Promissory Note of PNG Ventures, Inc., a Nevada corporation (the
"Company") having an
aggregate principal amount of $6,428.57 (the "Exchanged Notes"), which are
convertible into shares of common stock, $0.001 par value of the Company (the
"Conversion Shares"), to
Radcliffe SPC, Ltd. for and on behalf of the Class A Segregated Portfolio (the
"Investor") and (ii)
that certain Release and Acknowledgement Agreement by and between the Investor
and the Company with respect to the release without prejudice, of the Company
and its subsidiaries being acquired in the Share Exchange (as hereinafter
defined) of any and all indebtedness, penalties, liabilities or other
obligations (the "Release").

       

      WHEREAS, concurrently
herewith, EBOF, Earth LNG, Inc., a wholly owned subsidiary of EBOF and New Earth
LNG, LLC, a Delaware limited liability company and a wholly owned subsidiary of
Earth LNG, Inc. ("LNG
Sub") and the Issuer have entered into that certain Share Exchange
Agreement (the "Share Exchange
Agreement") pursuant to which EBOF will exchange (the "Share Exchange") 100% of the
membership interests of LNG Sub for 7,000,000 shares of common stock, $0.001 par
value of the Issuer (the "Common Stock").

       

      WHEREAS, the Company desires
to enter into this Agreement as a condition to closing of the Share Exchange and
in order to induce the Investor to enter into the Release.

       

      NOW, THEREFORE, in
consideration of the foregoing and for other good and valuable consideration,
the adequacy of which is hereby acknowledged, the parties hereto agree as
follows:

       

      1.           The
Company hereby agrees to take all actions necessary to effect the transfer of
the Exchanged Notes to the Investor, including, without limitation, having new
notes (in such denominations as the Investor may reasonably request)
representing the Exchanged Notes registered in the name of the Investor;
provided, that the Company and the Investor hereby agree that until the Closing
Date (as defined in the Share Exchange Agreement), the Company shall not effect
any conversion of the Exchanged Notes, and the Investor shall not have the right
to convert any portion of the Exchanged Note, pursuant to Section 4 of the
Exchanged Note or otherwise.

       

      2.           The
Company hereby represents and warrants to the Investor as follows:

       

      (a)           The
Company is a corporation duly organized and validly existing in good standing
under the laws of the State of Nevada, and has the requisite corporate power
and

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      authorization
to own its properties and to carry on its business as now being conducted. The
Company is duly qualified as a foreign corporation to do business and is in good
standing in every jurisdiction in which its ownership of property or the nature
of the business conducted by it prior to the Share Exchange makes such
qualification necessary, except to the extent that the failure to be so
qualified or be in good standing would not reasonably be expected to have a
Material Adverse Effect.  As used in this Agreement, "Material Adverse
Effect" means any material adverse effect on the business, properties, assets,
operations, results of operations, condition (financial or otherwise) or
prospects of the Company, taken as a whole, or on the transactions contemplated
hereby, under the Exchanged Notes and the Share Exchange Agreement or by the
agreements and instruments to be entered into in connection herewith or
therewith (collectively, the "Transaction Documents"), or on
the authority or ability of the Company to perform its obligations under the
Transaction Documents.

       

      (b)           The
Company has the requisite power and authority to enter into and perform its
obligations under the Transaction Documents and to issue the Exchanged Notes and
Conversion Shares in accordance with the terms hereof and
thereof.  The execution and delivery of the Transaction Documents by
the Company and the consummation by the Company of the transactions contemplated
hereby and thereby, including, without limitation, the issuance of the Exchanged
Notes and the reservation and issuance of the Conversion Shares into escrow as
well as the release from escrow upon conversion of the Exchanged Notes have been
duly authorized by the Company's Board of Directors and no further consent or
authorization is required by the Company, its Board of Directors or its
stockholders.  This Agreement and the other Transaction Documents have
been duly executed and delivered by the Company, and constitute the legal, valid
and binding obligations of the Company, enforceable against the Company in
accordance with their respective terms, except as such enforceability may be
limited by general principles of equity or applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or
affecting generally, the enforcement of applicable creditors' rights and
remedies.

       

      (c)           The
execution, delivery and performance of the Transaction Documents by the Company
and the consummation by the Company of the transactions contemplated hereby and
thereby will not (i) result in a violation of the Certificate of Incorporation
of the Company, any capital stock of the Company or the Bylaws of the Company or
(ii) conflict with, or constitute a default (or an event which with notice or
lapse of time or both would become a default) under, or give to others any
rights of termination, amendment, acceleration or cancellation of, any
agreement, indenture or instrument to which the Company is a party, except
(solely with respect to clause (ii) above) as would not be reasonably be
expected to have a Material Adverse Effect, or (iii) result in a violation of
any law, rule, regulation, order, judgment or decree (including federal and
state securities laws and regulations and the rules and regulations of Pink
Sheets LLC or the OTC Bulletin Board (as applicable, the "Principal Market")) applicable
to the Company or by which any property or asset of the Company is bound or
affected.

       

      (d)           The
issuance of the Exchanged Notes are duly authorized and, upon issuance shall be
free from all taxes, liens and charges with respect to the issue
thereof.  As of date hereof, a number of shares of Common Stock shall
have been duly authorized and reserved for issuance which equals or exceeds 100%
of the aggregate of the maximum number of shares

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      of Common
Stock issuable upon conversion of the Notes.  Upon conversion in
accordance with the Exchanged Notes, the Conversion Shares will be validly
issued, fully paid and nonassessable and free from all preemptive or similar
rights, taxes, liens and charges with respect to the issue thereof, with the
holders being entitled to all rights accorded to a holder of Common
Stock.

       

      (e)           The
Exchanged Notes are, and upon issuance in accordance with the Exchanged Notes,
the Conversion Shares shall be, unrestricted securities issued pursuant to
Section 3(a)(10) of the Securities Act (in accordance with the Settlement
Agreement and Order (as defined in the Settlement Agreement) relating to the
same).  The Conversion Shares, when issued, shall be freely tradable
on the NASDAQ OTC Bulletin Board without restriction and will not contain any
restrictive legend.

       

      (f)           The
Company is not required to obtain any consent, authorization or order of, or
make any filing or registration with, any court, governmental agency or any
regulatory or self-regulatory agency or any other person in order for it to
execute, deliver or perform any of its obligations under or contemplated by the
Transaction Documents, in each case in accordance with the terms hereof or
thereof.  All consents, authorizations, orders, filings and
registrations which the Company is required to obtain pursuant to the preceding
sentence have been obtained or effected on or prior to the date hereof, and the
Company and is unaware of any facts or circumstances which might prevent the
Company from obtaining or effecting any of the registration, application or
filings pursuant to the preceding sentence.  The Company is not in
violation of the listing requirements of the Principal Market and has no
knowledge of any facts which would reasonably lead to delisting or suspension of
the Common Stock in the foreseeable future.

       

      (g)           There
is no action, suit, proceeding, or to the knowledge of the Company, inquiry or
investigation before or by either Principal Market, any court, public board,
government agency, self-regulatory organization or body pending or, to the
knowledge of the Company, threatened against or affecting the Company, the
Common Stock or any of the Company's officers or directors in their capacities
as such, that is expected to have a Material Adverse Effect.

       

      (h)           To
the Company's knowledge, neither this Agreement, the other Transaction
Documents, nor any other written statements or certificates made or delivered in
connection herewith, when taken as a whole, contains any untrue statement of a
material fact or omits to state a material fact necessary to make the statements
contained herein or therein not misleading in light of the circumstances under
which they were made.

       

      (i)           The
Company represents and warrants to the Investor all of the representations and
warrants of the Company set forth in the Share Exchange Agreement, as if such
representations and warranties are set forth herein, mutatis
mutandis.

       

      (j)           The
Company represents and warrants that (A) the individuals set forth on Table I of
Schedule 2(j) hereto hold the offices set forth opposite their names on Table I
of Schedule 2(j)  hereto at the Company and (B) the individuals set
forth on Table II of Schedule 2(j) hereto are the only directors of the
Company.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Notwithstanding
anything to the contrary in this Agreement, under no circumstances shall the
foregoing covenants or warranties or other provisions herein, be deemed to cause
the Company in any way to assume or otherwise be or become, directly or
indirectly, liable or responsible for the indebtedness or any other liabilities
or obligations of the EBOF or any of its Subsidiaries owed to Investor, as more
fully set out in the Release or, to cause the Release to be
invalidated.

       

      

      3.           The
Investor hereby represents and warrants to the Company all of the
representations and warrants of the Investor set forth in the Settlement
Exchange Agreement, as if such representations and warranties are set forth
herein, mutatis
mutandis.

       

      4.           On
or before 8:30 a.m., New York City time, on the fourth (4th) Business Day
following the date of the Share Exchange, the Company shall file a Current
Report on Form 8-K describing the terms of the transactions contemplated by the
Share Exchange Agreement and the Settlement Exchange Agreement in the form
required by the 1934 Act and attaching the material documents related thereto
not previously filed (including, without limitation, this Agreement, the Share
Exchange Agreement, the Settlement Exchange Agreement, the Releases and the
Exchanged Note (including all attachments, the "8-K Filing").  From
and after the filing of the 8-K Filing with the SEC, the Investor shall not be
in possession of any material, nonpublic information received from the Company,
any of its subsidiaries or any of its respective officers, directors, employees
or agents, that is not disclosed in the 8-K Filing.  The Company shall
not, and shall cause each of its subsidiaries and its and each of their
respective officers, directors, employees and agents, not to, provide the
Investor with any material, nonpublic information regarding the Company or any
of its subsidiaries from and after the filing of the 8-K Filing with the SEC
without the express written consent of the Investor or as may be required under
the terms of this Agreement.  Subject to the foregoing, neither the
Company, its subsidiaries nor the Investor shall issue any press releases or any
other public statements with respect to the transactions contemplated hereby;
provided, however, that the Company shall be entitled, without the prior
approval of the Investor, to make any press release or other public disclosure
with respect to such transactions (i) in substantial conformity with the 8-K
Filing and contemporaneously therewith and (ii) as is required by applicable law
and regulations (provided that in the case of clause (i) the Investor shall be
consulted by the Company in connection with any such press release or other
public disclosure prior to its release).  Without the prior written
consent of the Investor, neither the Company nor any of its subsidiaries or
affiliates shall disclose the name of the Investor in any filing, announcement,
release or otherwise, unless such disclosure is required by law, subpoena, court
order, government agency, or self regulatory organization investigation or rule
or regulation or the Eligible Market in which the Common Stock is then traded or
listed.

       

      5.           For
the purposes of Rule 144, the Company acknowledges that the holding period of
the Note (as defined in the Settlement Exchange Agreement) (including the
corresponding shares of Common Stock issuable upon conversion of the Note) may
be tacked onto the holding period of the Exchanged Notes (including the
corresponding Conversion Shares issuable upon conversion of the Exchanged
Notes), and the Company agrees not to take a position contrary to this Section
5.  The Company agrees to take all actions, including, without
limitation, the

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      issuance
by its legal counsel of any necessary legal opinions, necessary to issue the
Conversion Shares as defined in the Settlement Exchange Agreement) that (other
than as to "Affiliates" of the Company as used in Rule 144, which shall be
subject to such rules and restrictions set forth in Rule 144) are freely
tradable on the NASDAQ OTC Bulletin Board without restriction  and not
containing any restrictive legend without the need for any action by the
Investor.

       

      6.           So
long as the Investor owns any Exchanged Notes or Conversion Shares (the "Registrable Securities"), with
a view to making available to the Investor the benefits of Rule 144, the Company
agrees to:

       

      (a)           make
and keep public information available, as those terms are understood and defined
in Rule 144;

       

      (b)           file
with the SEC in a timely manner all reports and other documents required of the
Company under the 1933 Act and the 1934 Act so long as the Company remains
subject to such requirements and the filing of such reports and other documents
is required for the applicable provisions of Rule 144; and

       

      (c)           furnish
to the Investor so long as the Investor owns the Company Registrable Securities,
promptly upon request, (i) a written statement by the Company, if true, that it
has complied with the reporting requirements of Rule 144, the 1933 Act and the
1934 Act, (ii) a copy of the most recent annual report of the Company and such
other reports and documents so filed by the Company (but only if such reports
are not publicly available on the EDGAR system), (iii) a written statement of
the number of shares of Common Stock then outstanding and (iv) such other
information as may be reasonably requested to permit the Investor to sell such
securities pursuant to Rule 144 without registration.

       

      7.           [Intentionally
Omitted]

       

      8.           This
Agreement may be executed in two or more identical counterparts, all of which
shall be considered one and the same agreement and shall become effective when
counterparts have been signed by each party and delivered to the other party;
provided that a facsimile signature shall be considered due execution and shall
be binding upon the signatory thereto with the same force and effect as if the
signature were an original, not a facsimile signature.

       

      9.           The
headings of this Agreement are for convenience of reference and shall not form
part of, or affect the interpretation of, this Agreement.

       

      10.           If
any provision of this Agreement is prohibited by law or otherwise determined to
be invalid or unenforceable by a court of competent jurisdiction, the provision
that would otherwise be prohibited, invalid or unenforceable shall be deemed
amended to apply to the broadest extent that it would be valid and enforceable,
and the invalidity or unenforceability of such provision shall not affect the
validity of the remaining provisions of this Agreement so long

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      as this
Agreement as so modified continues to express, without material change, the
original intentions of the parties as to the subject matter hereof and the
prohibited nature, invalidity or unenforceability of the provision(s) in
question does not substantially impair the respective expectations or reciprocal
obligations of the parties or the practical realization of the benefits that
would otherwise be conferred upon the parties.  The parties will
endeavor in good faith negotiations to replace the prohibited, invalid or
unenforceable provision(s) with a valid provision(s), the effect of which comes
as close as possible to that of the prohibited, invalid or unenforceable
provision(s).

       

      11.           All
questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by the internal laws of the State of New
York, without giving effect to any choice of law or conflict of law provision or
rule (whether of the State of New York or any other jurisdictions) that would
cause the application of the laws of any jurisdictions other than the State of
New York.  Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in The City of New York,
Borough of Manhattan, for the adjudication of any dispute hereunder or in
connection herewith or with any transaction contemplated hereby or discussed
herein, and hereby irrevocably waives, and agrees not to assert in any suit,
action or proceeding, any claim that it is not personally subject to the
jurisdiction of any such court, that such suit, action or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is
improper.  Each party hereby irrevocably waives personal service of
process and consents to process being served in any such suit, action or
proceeding by mailing a copy thereof to such party at the address for such
notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof.  Nothing
contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law.  If any provision of this Agreement
shall be invalid or unenforceable in any jurisdiction, such invalidity or
unenforceability shall not affect the validity or enforceability of the
remainder of this Agreement in that jurisdiction or the validity or
enforceability of any provision of this Agreement in any other
jurisdiction.  EACH
PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

       

      12.           This
Agreement is intended for the benefit of the parties hereto and their respective
permitted successors and assigns, and is not for the benefit of, nor may any
provision hereof be enforced by, any other Person.

       

      13.           Each
party shall do and perform, or cause to be done and performed, all such further
acts and things, and shall execute and deliver all such other agreements,
certificates, instruments and documents, as the other party may reasonably
request in order to carry out the intent and accomplish the purposes of this
Agreement and the consummation of the transactions contemplated
hereby.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      14.           The
language used in this Agreement will be deemed to be the language chosen by the
parties to express their mutual intent, and no rules of strict construction will
be applied against any party.

       

      15.           This
Agreement supersedes all other prior oral or written agreements between the
Investor, the Company, their affiliates and Persons acting on their behalf with
respect to the matters discussed herein, and this Agreement (other than the
Release, which shall remain in full force and effect) and the instruments
referenced herein contain the entire understanding of the parties with respect
to the matters covered herein and therein and, except as specifically set forth
herein or therein, neither the Company nor the Investor makes any
representation, warranty, covenant or undertaking with respect to such
matters.  No provision of this Agreement may be amended other than by
an instrument in writing signed by the Company and the Investor.  No
provision hereof may be waived other than by an instrument in writing signed by
the party against whom enforcement is sought.

       

      16.           This
Agreement shall be binding upon and inure to the benefit of the parties and
their respective successors and assigns in accordance with the terms of the
Settlement Exchange Agreement.

       

      

       [Signature
Page Follows]

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      IN WITNESS WHEREOF, the
Investor and the Company have caused their respective signature page to this
Agreement to be duly executed as of the date first written above.

       

      

       

      
        	
                COMPANY:

                 

              
	
                PNG
      VENTURES, INC.

                By:

                Name:
      Kevin Markey

                Title:  Chief
      Executive Officer

              
	
                Copy
      to:

                 

                Hodgson
      Russ, LLP

                1540
      Broadway

                24th
      Floor

                New
      York, NY 10036

                Attention:
      Ronniel Levy, Esq.

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      IN WITNESS WHEREOF, the
Investor and the Company have caused their respective signature page to this
Agreement to be duly executed as of the date first written above.

       

      

       

      
        	
                INVESTOR:

                 

              
	
                RADCLIFFE
      SPC, LTD. FOR AND ON BEHALF OF THE CLASS A SEGREGATED
      PORTFOLIO

                By:

                Name:
      Gerald F. Stahlecker

                Title:   Managing
      Director

              
	
                Copy
      to:

                 

                Wilmer
      Cutler Pickering Hale and Dorr LLP

                1875
      Pennsylvania Avenue, N.W.

                Washington,
      D.C.  20006

                Telephone:                                (202)
      663-6000

                Facsimile:                                (202)
      663-6363

                Attention:                                Eric
      R. Markus, Esq.exhibit1081.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    RELEASE, CONSENT AND
ACKNOWLEDGEMENT

     

    

     

    This Release, Consent and
Acknowledgment (this “Release”), dated as
of June 26, 2008, is made by and among Earth Biofuels, Inc., a Delaware
corporation (the “Parent”), Durant
Biofuels, LLC, an Oklahoma limited liability company (“Durant”), Earth LNG, Inc.
f/k/a Apollo LNG, Inc., a Texas corporation (“Earth LNG”), and its
direct wholly owned subsidiary, New Earth LNG, LLC, a Delaware limited liability
company (“New Earth
LNG”) and Earth LNG’s direct and indirect subsidiaries Arizona LNG,
L.L.C., a Nevada limited liability company, Fleet Star, Inc., a Delaware
corporation, Earth Leasing, Inc. f/k/a Alternative Dual Fuels, Inc., a Texas
corporation and Applied LNG Technologies USA, L.L.C., a Delaware limited
liability company (each of such subsidiaries, together with Earth LNG, and New
Earth LNG, an “LNG
Party” and collectively, the “LNG Parties”), PNG
Ventures, Inc., a Nevada corporation (“PNG”), and Castlerigg
PNG Investments LLC, as Collateral Agent (the “Collateral Agent”),
for each of the holders of the “Notes” (as defined below), and Castlerigg PNG
Investments LLC., as a creditor (in such capacity, the “Creditor”).

     

    RECITALS

     

    A.           Reference
is made to (i) a Securities Purchase Agreement, dated as of June 7, 2006, by and
among Earth Biofuels, Inc., a Delaware corporation and parent company of Earth
LNG, and certain buyers, pursuant to which, among other things, such buyers
purchased from Parent certain notes (the “Notes”), (ii) a
Securities Purchase Agreement, dated as of July 24, 2006, pursuant to which,
among other things, certain buyers purchased from the Parent senior convertible
notes (the “2006
Notes”, and together with the Notes, the “Existing Notes”) and
(iii) an Interim Restructuring Agreement, dated as of November 13, 2007, by and
among the Parent, Dennis McLaughlin III, and certain buyers, pursuant to which,
among other things, the Parent agreed to grant to each holder of the Notes a
security interest in certain assets of the Parent and the Parent’s direct and
indirect subsidiaries, including, without limitation, the LNG Parties, as
evidenced by (x) a Pledge and Security Agreement, dated as of December 20, 2007,
by the Parent and such subsidiaries, including, without limitation, the LNG
Parties (the “Existing
Pledge Agreement”), (y) a Guaranty Agreement, dated as of November 13,
2007, by the Parent’s subsidiaries, including, without limitation, the LNG
Parties (the “Existing
Guaranty Agreement”), and (z) each other agreement, instrument, document
and other writing entered into in connection with the Existing Pledge Agreement
and the Existing Guaranty Agreement (the documents described in clauses (x), (y)
and (z), as heretofore amended, modified, supplemented, restated or replaced
from time to time, or any forbearance or extension thereto, collectively the
“Collateral
Agreements”);

     

    B.           Parent
is a debtor under the Amended and Restated Senior Secured Exchangeable Note and
Senior Subordinated Secured Convertible Exchangeable Note, issued to the
Collateral Agent and to the Creditor and certain other creditors, pursuant to an
Amendment and Exchange Agreement, dated as of June 26, 2008, by and among the
Parent, PNG and the Creditor (the “Exchange Agreement”)
and certain related agreements, instruments, documents and other writings
(collectively the “Amended Parent Credit
Documents”) pursuant to which, for the avoidance of doubt, none of the
LNG Parties is obligated in any respect;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1)           Parent,
Earth LNG and New Earth LNG, as assignee of the subsidiaries of Earth
LNG,  have entered into a Share Exchange Agreement, dated as of June
30, 2008 (the "Share
Exchange Agreement") for the sale of all of the membership interests in
New Earth LNG to PNG and, in connection therewith and as a condition thereof,
the LNG Parties have requested that the Collateral Agent and the Creditor
release the LNG Parties and PNG from any and all liabilities under or in
connection with the Collateral Agreements and otherwise, and release any
collateral held as security by the Collateral Agent or the Creditor as security
for any such liabilities (whether such security interest is perfected or
otherwise), and that the Parent and Durant consent to such releases and
acknowledge certain related matters, all to which the parties desire to agree
pursuant to the terms hereof; and

     

    

    D.           Durant,
Earth Biofuels Technology Co., LLC, The Wing Sail Company, Earth Biofuels of
Cordele, LLC, B20 Customs, LLC, Earth Biofuels Operating, Inc., Earth Biofuels
Retail Fuel Company, LLC, Earth Ethanol of Washington L.L.C. and Earth Ethanol,
Inc. (collectively, the “Non-LNG
Subsidiaries”) are entering into to an Amended and Restated Guaranty
Agreement (the “Restated Guaranty”)
in favor of the Creditor, and (b) the Parent and the Non-LNG Subsidiaries are
entering into an Amended and Restated Pledge and Security Agreement (the “Restated Pledge
Agreement”) in favor of the Collateral Agent, to which agreements New
Earth and the Subsidiaries are no longer parties or obligors.

    

    AGREEMENT

     

    In consideration of the foregoing
premises, the covenants and conditions set forth herein, and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the undersigned do hereby acknowledge, consent and agree as
follows:

     

    1.           Releases by Collateral Agent
and Creditor.

     

    a.           Effective
on the “Waiver Effective Date” (as hereinafter defined), the Collateral Agent
and the Creditor (collectively, the “Creditor Parties”),
for themselves, their respective officers, directors, employees, agents,
attorneys, subsidiaries, affiliates and predecessors and the respective heirs,
executors, administrators, legal representatives, successors and assigns of each
of the foregoing (all of the foregoing being collectively the “Releasors”), hereby
and with prejudice unconditionally and irrevocably remise, release and forever
discharge the LNG Parties and PNG, their respective officers, directors,
employees, agents, attorneys, subsidiaries and predecessors and the respective
heirs, executors, administrators, legal representatives, successors and assigns
of each of the foregoing (all of the foregoing , collectively, the “Released Persons”) of
and from any and all manner of action and actions, cause and causes of action,
suits, debts, dues, sums of money, accounts, reckoning, bonds, bills,
specialties, covenants, contracts, controversies, agreements, promises,
variances, trespasses, damages, judgments, executions, claims (including,
without limitation, any and all defenses, counter-claims and cross-claims
against, and rights to indemnification or contribution from, any of the Released
Persons), demands, liabilities and obligations of whatever kind or nature
whatsoever (whether joint or several, direct or indirect, absolute or contingent
or otherwise, as maker, endorser, surety, guarantor or otherwise, and whether
evidenced by any promissory note, court order, or other instrument, or carried
as an open account payable or otherwise) in respect of any of the Collateral
Agreements or any other contract, instrument, liability, lien or claim
relating

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    thereto,
whether by operation of law or otherwise or to the business dealings directly
between Releasors and Parent and Non-LNG Subsidiaries (other than any business
dealings in which PNG has signed a written acknowledgment with respect thereto
or in which PNG is a party), whether in law (including, without limitation, any
domestic or foreign federal, state, local or other statute, regulation or other
law), in equity or as third-party beneficiary or otherwise, whether known or
unknown, suspected or unsuspected or otherwise, which any one or more of the
Releasors ever had, now has or in the future can, shall or may have, against or
otherwise involving any of the Released Persons or any asset or property of any
thereof, for any reason whatsoever, or as a result of any matter occurring or
failing to occur or otherwise, at any time or times whether heretofore or
hereafter occurring; provided, however, that the
foregoing releases shall not apply to any liabilities or obligations of PNG
itself to any of the Creditor Parties under or in respect of the "Transfer
Agreement" itself (as defined below) (to the extent that such representations
relate to PNG and are not representations or covenants of Parent, Non-LNG
Subsidiaries or LNG Parties or Creditors) or this Release (collectively, "Related
Obligations").

     

    b.           Effective
on the “Waiver Effective Date” (as hereinafter defined), the Releasors hereby
and with prejudice unconditionally and irrevocably remise, release and forever
discharge Parent, its respective officers, directors, employees, agents,
attorneys, subsidiaries and predecessors and its heirs, executors,
administrators, legal representatives, successors and assigns of each of the
foregoing (all of the foregoing, collectively, the “EBOF Released
Persons”) of and from any and all manner of action and actions, cause and
causes of action, suits, debts, dues, sums of money, accounts, reckoning, bonds,
bills, specialties, covenants, contracts, controversies, agreements, promises,
variances, trespasses, damages, judgments, executions, claims (including,
without limitation, any and all defenses, counter-claims and cross-claims
against, and rights to indemnification or contribution from, any of the EBOF
Released Persons), demands, liabilities and obligations of whatever kind or
nature whatsoever (whether joint or several, direct or indirect, absolute or
contingent or otherwise, as maker, endorser, surety, guarantor or otherwise, and
whether evidenced by any promissory note, court order, or other instrument, or
carried as an open account payable or otherwise) in respect of the Creditor's
"Note" and "Exchanged Notes" (as defined in "Settlement Exchange Agreement", as
defined in the "Transfer Agreement" defined below) and any security interests in
the shares of common stock, $0.0001 par value, of PNG issuable upon conversion
in accordance with the terms thereof, whether by operation of law or otherwise),
whether in law (including, without limitation, any domestic or foreign federal,
state, local or other statute, regulation or other law), in equity or as
third-party beneficiary or otherwise, whether known or unknown, suspected or
unsuspected or otherwise, which any one or more of the Releasors ever had, now
has or in the future can, shall or may have, against or otherwise involving any
of the EBOF Released Persons or any asset or property of any thereof, for any
reason whatsoever, or as a result of any matter occurring or failing to occur or
otherwise, at any time or times whether heretofore or hereafter
occurring.

     

    c.           Parent
shall continue to be obligors under and parties to the Amended Parent Credit
Documents.

    

    2.           Termination of Collateral
Agreements and Related Security.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    a.           Effective
on the Waiver Effective Date , the Creditor Parties acknowledge and agree that
(i) as to the Released Persons only, the Collateral Agreements are hereby fully,
and finally terminated and discharged in all respects, with prejudice, and none
of the Released Persons has any further or remaining liability or obligation
thereunder, and (ii) as to all assets of the Released Persons only, all security
interests and other liens, security agreements, mortgages, deeds of trust,
assignments, pledges, guaranties, subordinations and other collateral or
security granted to or existing in favor of the Creditor Parties or any of them
in connection with obligations under the Collateral Agreements, or in connection
with any other obligations of any of the Released Persons to the Creditor
Parties or any of them, are satisfied, discharged, released and terminated in
all respects.

     

    b.           Effective
on the Waiver Effective Date, the LNG Parties and their designees (including,
without limitation, Greenfield Commercial, L.L.C.) are immediately authorized to
file or record termination statements for each Uniform Commercial Code financing
statement of public record naming any LNG Party as debtor and the Creditor
Parties or any of them as secured party, including, without limitation, the
Uniform Commercial Code financing statements described on Exhibit A to this
Release.

     

    c.           Effective
on the Waiver Effective Date, promptly upon any further written request of any
LNG Party, each of the Creditor Parties, as applicable, will provide such LNG
Party with any other instruments or writings and take any other actions
reasonably required to (a) confirm the satisfaction, payment, discharge and
performance in full of the all indebtedness, liabilities and obligations
released pursuant to Section 1 of this Release (collectively, the “Released
Obligations”) and the termination and discharge of the Collateral
Agreements as to any of the LNG Parties, (b) return to such LNG Party any
collateral or security for any the Released Obligations in the possession of the
Creditor Parties or any of them and (c) satisfy, discharge, release or terminate
any security interest or other lien, security agreement, mortgage, deed of
trust, assignment, pledge or subordination, any guaranty or other assurance of
payment, any control, blocked account or similar agreement or any insurance
policy endorsement or other collateral or security existing in the favor of the
Creditor Parties or any of them with respect to any assets of any LNG Party or
otherwise as security or collateral for any of the Released
Obligations.

     

    3.           Consent by Parent and
Durant.  The Parent and the Non-LNG Subsidiaries (collectively,
the "Remaining Obligors") hereby consent to (a) the release of the LNG Parties
from their liabilities as guarantors of the Released Obligations and (b) the
release of the Collateral Agent’s security interest in the assets and property
of the LNG Parties (collectively, the "LNG Property"), and acknowledge that the
Remaining Obligors shall continue to be liable, jointly and severally, for the
payment in full of the any indebtedness owed to the Creditor pursuant to the
Amended Parent Credit Documents, the Existing Guaranty Agreement (as amended by
the Restated Guaranty), the Existing Pledge Agreement (as amended by the
Restated Pledge Agreement) and the other "Existing Transaction Documents" (as
defined in the Exchange Agreement), notwithstanding such releases herein, and
that their liabilities in regard thereto shall continue as provided therein and
Parent and Non-LNG Subsidiaries further agree to indemnify Released Persons for
any liabilities resulting there from (which covenant shall, for avoidance of
doubt survive any mutual release in favor of a Released Person relating to the
post Share Exchange financing with Fourth Third, LLC).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    i)           Conditions to
Effectiveness.  The effectiveness of this Release shall be
conditioned upon the satisfaction of the following conditions precedent (the
date on which all such conditions are fulfilled or waived by the Agents and the
Required Lenders are hereafter referred to as the “Waiver Effective
Date”):

     

    (1)(2)(3)(a)a.(4)(5)                                                      this
Release shall have been executed and delivered by the Collateral Agent, the
Creditor, the Parent, the Non-LNG Subsidiaries, PNG and the LNG
Parties;

     

    b.           the
Collateral Agent, the Parent, the Non-LNG Subsidiaries, the LNG Parties and each
of the other creditors listed in Exhibit B annexed hereto,
shall have (i) executed agreements identical to this Release (collectively, the
“Other
Releases”);

     

    c.           the
Securities Purchase Agreement, together with a Transfer of Securities
Acknowledgment and Agreement attached as Exhibit A thereto (the "Transfer Agreement"),
shall have been duly executed by Parent and PNG, as applicable, and a copy of
which shall be delivered to the Creditor;

     

    d.           the
“Closing” under (and as defined in) the Share Exchange Agreement shall have
occurred, with all closing conditions thereto satisfied as determined at the
sole discretion of the parties thereto; and

     

    e.           the
representations and warranties made by PNG in the Transfer Agreement shall be
true and correct in all material respects (except for those representations and
warranties that are qualified by materiality or material adverse effect, which
shall be true and correct in all respects) on and as of the Waiver Effective
Date as though made on and as of such date, except (i) to the extent that such
representations and warranties expressly relate solely to an earlier date (in
which case such representations and warranties are true and correct on and as of
such date, or (ii) are otherwise dependant on representations or warranties of
Parent, the LNG Parties or the Non-LNG Subsidiaries, in which case such
representations and warranties are true and correct in all material respects
(except for those representations and warranties that are qualified by
materiality or material adverse effect, which shall be true and correct in all
respects) except with respect to such representations or warranties by Parent,
the LNG Parties or Non-LNG Subsidiaries.

     

    For the
avoidance of doubt, the LNG Parties may rely, in determining the above, on
facsimile, PDF, statements of Parent, or similar representation of signed
documents or counterpart signature pages for purposes of determining the
satisfaction of any of the above.

     

    ii)           Representations and
Warranties.

     

    a.           The
Parent and the Non-LNG Subsidiaries hereby represent and warrant to the
Collateral Agent and the Creditor that, after the "Closing Date" (as defined in
the Exchange Agreement), no “Event of Default” (as defined in the Notes), and no
event that, with the giving of notice or the passage of time, or both, would
constitute an Event of Default, each, a “Default”) will have
occurred and be continuing or will result from this Release becoming effective
in accordance with its terms.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    b.           PNG
hereby represents and warrants to the Collateral Agent and the Creditor that (i)
the representations and warranties made by PNG in the Transfer Agreement are
true and correct on and as of the Waiver Effective Date as though made on and as
of such date, except to the extent that such representations and warranties
expressly relate solely to an earlier date (in which case such representations
and warranties are true and correct on and as of such date), and (ii) the
"Closing" has occurred under (and as defined in) the Share Exchange
Agreement.

     

    iii)           Ratification; Reservation of
Rights.  This Release does not and shall not affect any
obligations of the Parent, any of the Non-LNG Subsidiaries or any party other
than the LNG Parties under the Notes or any other Existing Transaction Document
or certificate or other writing delivered to the Collateral Agent or the
Creditor pursuant thereto, other than as expressly provided herein, including
(without limitation) the Parent’s obligations to pay all of its liabilities and
obligations under the Notes and all other Obligations in accordance with the
terms of the Notes and the other Existing Transaction Documents, all of which
obligations shall remain in full force and effect, in each case as against
Parent and the Non-LNG Subsidiaries.  Except as expressly provided
herein, the execution, delivery and effectiveness of this Release shall not
operate as a waiver of any right, power or remedy of the Collateral Agent or the
Creditor under the Notes or any other Existing Transaction Document, nor
constitute a waiver of any provision of the Notes or any other Transaction
Document as against Durant, Parent or the Non-LNG
Subsidiaries.  Except as expressly set forth in this Release, Consent
and Waiver, the Collateral Agents and the Creditor expressly reserve the right
to exercise any and all of their rights and remedies under the Notes, any other
Existing Transaction Document and applicable law in respect of any Default or
Event of Default as against the Parent and other Non-LNG
Subsidiaries.

     

    iv)           Indemnification and
Release.

     

    a.           The
Parent and the Non-LNG Subsidiaries hereby, jointly and
severally:  (a) indemnify and hold harmless the Collateral Agent and
the Creditor, and each of their respective officers, directors, employees,
equityholders, attorneys, consultants and agents (each, a “Creditor
Indemnitee”), from and against any and all claims, damages, liabilities
and expenses, including, without limitation, attorneys’ fees and disbursements,
which may be incurred by or asserted against any Creditor Indemnitee in any
investigation, litigation, suit or action arising out of or relating to (i) the
release pursuant hereto of any security interest, lien, encumbrance or other
charge granted to the Collateral Agent (on behalf the Creditor), or (ii) the
release of any of the LNG Parties from its respective liabilities under the
Guaranty; provided, however, that the
Parent and the Non-LNG Parties shall not be required to indemnify any Creditor
Indemnitee from or against any portion of such claims, damages, liabilities or
expenses arising out of the gross negligence or willful misconduct of such
Creditor Indemnitee, as determined by a final nonappealable judgment of a court
of competent jurisdiction; (b) agree to pay all costs and expenses in connection
with the preparation, execution, delivery, filing and recording of this Release,
Consent and Waiver, and the performance of any other acts and the execution of
any other documents required to effect the release of any security interest
pursuant hereto, including (without limitation) the fees and disbursements of
counsel to the Collateral Agent and the Creditor; (c) agree to pay any and all
stamp and other transfer or filing taxes and fees payable or determined to be
payable in connection with the execution and delivery hereof or any release
document pursuant hereto, and to hold each Creditor Indemnitee harmless from and
against any

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    and all
liabilities with respect to or resulting from any delay in paying or omission to
pay such taxes or fees; and (d) release each Creditor Indemnitee from any duty,
liability or obligation (if any) under the Notes or any other Existing
Transaction Document in respect of the LNG Property and the release of the
security interests therein pursuant hereto.

     

    b.           The
Parent and the Non-LNG Subsidiaries hereby, jointly and severally indemnify and
hold harmless PNG and the LNG Parties, and each of their respective officers,
directors, employees, equityholders, attorneys, consultants and agents (each, a
“PNG
Indemnitee”), from and against any and all claims, damages, liabilities
and expenses, including, without limitation, attorneys’ fees and disbursements,
which may be incurred by or asserted against any PNG Indemnitee in any
investigation, litigation, suit or action by any third party arising out of or
relating to the Collateral Agreements or any Related Obligations; provided, however, that the
Parent and the Non-LNG Subsidiaries shall not be required to indemnify any PNG
Indemnitee from or against any portion of such claims, damages, liabilities or
expenses arising out of the gross negligence or willful misconduct of such PNG
Indemnitee, as determined by a final nonappealable judgment of a court of
competent jurisdiction.

     

    8.           Miscellaneous.

     

    a.           Independent
Review.  Each of the parties hereto has reviewed this Release
with its own counsel and advisors.

     

    b.           Binding Effect. This
Release shall be binding upon and enforceable by, and inure to the benefit of,
each of the parties hereto and each direct or indirect legal representative,
successor and assignee of any such party.

     

    c.           Entire
Agreement.  This Release contains the entire agreement among
the parties hereto with respect to the subject matter of this Release and
supersedes each action heretofore taken or not taken, each course of conduct
heretofore pursued, accepted or acquiesced in, and each oral, written or other
agreement and representation heretofore made, by or on behalf of any of the
parties with respect thereto.  No action heretofore or hereafter taken
or not taken, no course of conduct heretofore or hereafter pursued, accepted or
acquiesced in, no oral, written or other agreement or representation heretofore
made, and no agreement or representation hereafter made other than in writing,
by or on behalf of any party hereto shall modify or terminate this Release,
impair or otherwise adversely affect this Release, any obligation, right, remedy
or power of any party pursuant to this Release or arising or accruing as a
result of this Release or operate as a waiver of any such obligation, right,
remedy or power.  No modification of this Release or waiver of any
such obligation, right, remedy or power shall be effective unless made in a
writing duly executed by each party sought to be bound thereby and specifically
referring to such modification or waiver. Notwithstanding anything herein to the
contrary, nothing herein shall be deemed to limit, alter, amend or constitute a
waiver with respect to, any other release or indemnification covenants or
agreements provided by Parent and any other Non-LNG Subsidiaries to any LNG
Party.

     

    d.           Severability.  Whenever
possible, each provision of this Release shall be interpreted in such manner as
to be effective and valid under applicable law.  If, however, any such
provision shall be prohibited by or invalid under such law, it shall be deemed
modified to

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    conform
to the minimum requirements of such law, or, if for any reason it is not deemed
so modified, it shall be prohibited or invalid only to the extent of such
prohibition or invalidity without the remainder thereof or any other such
provision being prohibited or invalid.

     

    e.           Governing
Law.  This Release shall be governed by and construed,
interpreted and enforced in accordance with the law of the State of New York
(including, but not limited to, Sections 5-1401 and 5-1402 of the General
Obligations Law of the State of New York) and, to the extent applicable, the
federal law of the United States without regard to the law of any other
jurisdiction.

     

    f.           Headings.  In
this Release, headings of sections are for convenience of reference only and
have no substantive effect.

     

    g.           JURISDICTIONAL CONSENTS AND
WAIVERS.  EACH PARTY KNOWINGLY, VOLUNTARILY, INTENTIONALLY AND
IRREVOCABLY (i) CONSENTS IN EACH ACTION AND OTHER LEGAL PROCEEDING
COMMENCED BY ANY OTHER PARTY AND ARISING OUT OF OR OTHERWISE RELATING TO THIS
RELEASE TO THE NONEXCLUSIVE PERSONAL JURISDICTION OF ANY COURT THAT IS EITHER A
COURT OF RECORD OF THE STATE OF NEW YORK OR A COURT OF THE UNITED STATES LOCATED
IN THE STATE OF NEW YORK, (ii) WAIVES EACH OBJECTION TO THE LAYING OF VENUE
OF ANY SUCH ACTION OR OTHER LEGAL PROCEEDING, (iii) WAIVES PERSONAL SERVICE
OF PROCESS IN EACH SUCH ACTION AND OTHER LEGAL PROCEEDING, (iv) WAIVES IN
EACH SUCH ACTION AND OTHER LEGAL PROCEEDING EACH RIGHT TO ASSERT ANY
NON-MANDATORY COUNTERCLAIM OR ANY SETOFF, (v) WAIVES EACH RIGHT TO ATTACK
ANY FINAL JUDGMENT THAT IS OBTAINED AS A RESULT OF ANY SUCH ACTION OR OTHER
LEGAL PROCEEDING AND (vi) CONSENTS TO EACH SUCH FINAL JUDGMENT BEING SUED
UPON IN ANY COURT HAVING JURISDICTION WITH RESPECT THERETO AND ENFORCED IN THE
JURISDICTION IN WHICH SUCH COURT IS LOCATED AS IF ISSUED BY SUCH
COURT.

     

    h.           WAIVER OF TRIAL BY
JURY. EACH PARTY KNOWINGLY, VOLUNTARILY, INTENTIONALLY AND IRREVOCABLY
WAIVES EACH RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY ACTION OR
OTHER LEGAL PROCEEDING, WHETHER BASED ON ANY CONTRACT OR NEGLIGENT, INTENTIONAL
OR OTHER TORT OR OTHERWISE, ARISING OUT OF OR OTHERWISE RELATING TO (i) THIS
RELEASE OR ANY OF THE OBLIGATIONS HEREUNDER, (ii) ANY TRANSACTION ARISING OUT OF
OR OTHERWISE RELATING TO THIS RELEASE OR ANY OF THE OBLIGATIONS HEREUNDER OR
(iii) ANY NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT OF THIS
RELEASE OR ANY OF THE OBLIGATIONS HEREUNDER.

     

    i.           Counterparts.  This
Release (i)  may be executed by the parties hereto in several
counterparts, and each such counterpart shall be deemed to be an original, and
all such counterparts shall constitute together but one and the same agreement
and (ii) may be executed and delivered by telecopier or “pdf” file, and when so
executed and delivered, shall constitute

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    an
“original” document.

     

    j.           Effective
Date.  This Release shall be deemed to be effective as of the
date of satisfaction of all conditions precedent set forth in Section 4
hereof.

     

    [REMAINDER
OF THIS PAGE LEFT INTENTIONALLY BLANK--SIGNATURE PAGES FOLLOW]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, each of the undersigned has caused this Release, Consent and
Acknowledgment to be executed as of the date first written above.

     

    DURANT
BIOFUELS, LLC

     

    

    By:____________________________

    Name:  Dennis
G. McLaughlin, III

    Title:    Chief
Executive Officer

    

    EARTH
BIOFUELS, INC.

    (a
Delaware corporation)

    

    By:____________________________

    Name:  Dennis
G. McLaughlin, III

    Title:   Chief
Executive Officer

    

    EARTH
LNG, INC.

    (a Texas
corporation)

    

    By:____________________________

    Name:  Dennis
G. McLaughlin, III

    Title:    President

    

    NEW
EARTH LNG, LLC

     (a Delaware limited
liability company)

    

    By:____________________________

    Name:  Kevin
Markey

    Title:    Chief
Executive Officer

    

    APPLIED
LNG TECHNOLOGIES USA, L.L.C.

    

    

    By:____________________________

    Name:  Dennis
G. McLaughlin, III

    Title:    Chief
Executive Officer

    

    FLEET
STAR, INC.

    

    

    By:____________________________

    Name:  Dennis
G. McLaughlin, III

    Title:    Chief
Executive Officer

    [Counterpart signature page to
Release, Consent and Acknowledgment]

    [Additional
Signatures Follow]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EARTH
LEASING, INC.

    

    

    By:____________________________

    Name:  Dennis
G. McLaughlin, III

    Title:    Chief
Executive Officer

    

    ARIZONA
LNG, L.L.C.

    

    

    By:____________________________

    Name:  Dennis
G. McLaughlin, III

    Title:    Chief
Executive Officer

    

    EARTH
BIOFUELS TECHNOLOGY CO., LLC

    

    

    By:____________________________

    Name:  Dennis
G. McLaughlin, III

    Title:    Chief
Executive Officer of Member, Earth Biofuels, Inc.

    

    THE
WING SAIL COMPANY

    

    

    By:____________________________

    Name:  Dennis
G. McLaughlin, III

    Title:    Chief
Executive Officer

    

    EARTH
BIOFUELS OF CORDELE, LLC

    

    

    By:____________________________

    Name:  Dennis
G. McLaughlin, III

    Title:    Chief
Executive Officer

    

    B20
CUSTOMS, LLC

    

    

    By:____________________________

    Name:  Dennis
G. McLaughlin, III

    Title:    Chief
Executive Officer

    

    [Counterpart signature page to
Release, Consent and Acknowledgment]

    [Additional
Signatures Follow]

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    EARTH
BIOFUELS OPERATING, INC.

    

    

    By:____________________________

    Name:  Dennis
G. McLaughlin, III

    Title:    Chief
Executive Officer

    

    EARTH
BIOFUELS RETAIL FUEL COMPANY, LLC

    

    

    By:____________________________

    Name:  Dennis
G. McLaughlin, III

    Title:   
Chief Executive Officer of Member, Earth Biofuels, Inc.

    

    EARTH
ETHANOL OF WASHINGTON L.L.C.

    

    

    By:____________________________

    Name:  Dennis
G. McLaughlin, III

    Title:   
Chief Executive Officer

    

    EARTH
ETHANOL, INC.

    

    

    By:____________________________

    Name:  Dennis
G. McLaughlin, III

    Title:   
Chief Executive Officer

    

    PNG
VENTURES, INC.

    

    

    By:____________________________

    Name:  Kevin
Markey

    Title:   
Chief Executive Officer

    

    [Counterpart signature page to
Release, Consent and Acknowledgment]

    [Additional
Signatures Follow]

    Collateral
Agent and Creditors:

    

    CASTLERIGG
PNG INVESTMENTS LLC

    as
Collateral Agent and Creditor

    

    By:
Castlerigg Master Investments Ltd.,

             its
managing member and sole member

    

    

    By:_______________________________

    Name:
Patrick T. Burke

    Title:  
Senior Managing Director

    

    

    [Counterpart signature page to
Release, Consent and Acknowledgment]

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    UCC FINANCING STATEMENTS TO
BE TERMINATED

    

    

      
        	
                 

                Jurisdiction

              	
                Date Filed

              	
                 

                Filing Number

              	
                 

                Secured Party

              	
                 

                Debtor

              
	
                Texas

              	
                12/21/07

              	
                07-0043021461

              	
                Castlerigg
      Master Investments Ltd., as Collateral Agent

              	
                Earth
      LNG, Inc.

              
	
                Texas

              	
                12/21/07

              	
                07-0043021249

              	
                Castlerigg
      Master Investments Ltd., as Collateral Agent

              	
                Alternative
      Dual Fuels, Inc.

              
	
                Delaware

              	
                12/20/07

              	
                20074826664

              	
                Castlerigg
      Master Investments Ltd., as Collateral Agent

              	
                Applied
      LNG Technologies USA, L.L.C.

              
	
                Nevada

              	
                12/21/07

              	
                2007042072-7

              	
                Castlerigg
      Master Investments Ltd., as Collateral Agent

              	
                Arizona
      LNG, L.L.C.

              
	
                Delaware

              	
                12/21/07

              	
                20074836259

              	
                Castlerigg
      Master Investments Ltd., as Collateral Agent

              	
                Fleet
      Star, Inc.

              

      

       

       

       

       

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
B

    

    Creditors

    

    

    Portside
Growth and Opportunity Fund

    

    Radcliffe
SPC, Ltd.

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