Document:

NuGen
Holdings, Inc.

    Regulation
S Subscription Agreement

    

    SECTION
1

    

    1.1           Subscription.   The
undersigned, ______
intending to be legally bound, hereby irrevocably subscribes for and agrees to
purchase ______ shares (“Shares”) of common stock of NuGen Holdings, Inc., a
Delaware corporation (the "Company") in a transaction exempt from the
registration requirements of the Securities Act of 1933, as amended (the
“Securities Act”) for the number of shares of common stock indicated
below.

    

    The undersigned understands that the
securities are being offered and issued by the Company in connection with a
private transaction exempt from the registration requirements of the Securities
Act for the offer and sale of an aggregate of 7,812,500 shares, or gross
proceeds of $1,250,000.

    

    1.2           Purchase of
Shares.  The undersigned understands and acknowledges that the
purchase price to be remitted to the Company in exchange for the Shares be
____________________ US Dollars ($______), or $0.16 per
share.  Simultaneous with the execution and delivery of this
Agreement, the undersigned shall deliver to the Company the aforementioned
purchase price by wire transfer of immediately available funds as
follows:

    

    
      
        	
                Name
      of Bank:

              	
                Bank
      of Texas

              
	
                Account
      Name:

              	
                NuGen
      Holdings, Inc.

              
	
                Bank
      Address;

              	
                1401
      McKinney, Houston, TX

              
	
                Account

              	
                8092216236

              
	
                ABA

              	
                111014325

              

      

    

    

    1.3           Acceptance or
Rejection.

    

    (a)           The
undersigned understands and agrees that the Company reserves the right to reject
this subscription for the Shares if, in its reasonable judgment, it deems such
action in the best interest of the Company, at any time prior to the Closing,
notwithstanding prior receipt by the undersigned of notice of acceptance of the
undersigned's subscription.

    

    (b)           The
undersigned understands and agrees that its subscription for the Shares is
irrevocable and upon acceptance by the Company, the Company shall have the full
use and right to the purchase price remitted by the undersigned.

    

    (c)           In
the event the sale of the Shares subscribed for by the undersigned is not
consummated by the Company for any reason (in which event this Subscription
Agreement shall be deemed to be rejected), this Subscription Agreement and any
other agreement entered into between the undersigned and the Company relating to
this subscription shall thereafter have no force or effect and the Company shall
promptly return or cause to be returned to the undersigned the purchase price
remitted to the Company by the undersigned, without interest thereon or
deduction therefrom, in exchange for the Shares.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    SECTION
2

    

    2.1           Closing.  The
closing (the "Closing") of the purchase and sale of the Shares, shall occur
simultaneously with the acceptance by the Company of the undersigned's
subscription, as evidenced by the Company's execution of this Subscription
Agreement. Simultaneous with the execution and delivery of this Agreement, the
undersigned shall deliver a Proxy, in the form of Exhibit A, and a
Lock-Up Agreement, in the form of Exhibit
B.  The undersigned acknowledges and represents the execution
and delivery of the (i) Proxy means that the undersigned relinquishes all voting
rights to the Shares and (ii) Lock-Up Agreement means that the undersigned shall
not be entitled to sell or dispose of the Shares for 9 months from the
Closing.

    

    SECTION
3

    

    3.1          Investor Representations and
Warranties.

    

    The
undersigned hereby acknowledges, represents and warrants to, and agrees with,
the Company and its affiliates as follows:

    

    (a)           The
undersigned is acquiring the Shares for his own account as principal, not as a
nominee or agent, for investment purposes only, and not with a view to, or for,
resale, distribution or fractionalization thereof in whole or in part and no
other person has a direct or indirect beneficial interest in such Shares or any
portion thereof.  Further, the undersigned does not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant
participations to such person or to any third person, with respect to the Shares
for which the undersigned is subscribing or any part of the Shares.

    

    (b)           The
undersigned has full power and authority to enter into this Agreement, the
execution and delivery of this Agreement has been duly authorized, if
applicable, and this Agreement constitutes a valid and legally binding
obligation of the undersigned.

    

    (c)           The
undersigned is not subscribing for the Shares as a result of or subsequent to
any advertisement, article, notice or other communication published in any
newspaper, magazine or similar media or broadcast over television or radio, or
presented at any seminar or meeting, or any solicitation of a subscription by
persons previously not known to the undersigned.

    

    (d)           The
undersigned understands that the Company is under no obligation to register the
Shares under the Securities Act, or to assist the undersigned in complying with
the Securities Act or the securities laws of any state of the United States or
of any foreign jurisdiction.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (e)           The
undersigned is (i) experienced in making investments of the kind described in
this Agreement and the related documents, (ii) able, by reason of the business
and financial experience of its officers (if an entity) and professional
advisors (who are not affiliated with or compensated in any way by the Company
or any of its affiliates or selling agents), to protect its own interests in
connection with the transactions described in this Agreement, and the related
documents, and (iii) able to afford the entire loss of its investment in the
Shares.

    

    (f)           The
undersigned acknowledges his understanding that the offering and sale of the
Securities is intended to be exempt from registration under the Securities
Act.  In furtherance thereof, in addition to the other representations
and warranties of the undersigned made herein, the undersigned further
represents and warrants to and agrees with the Company and its affiliates as
follows:

    

    (i)    The
undersigned realizes that the basis for the exemption may not be present if,
notwithstanding such representations, the undersigned has in mind merely
acquiring the Shares for a fixed or determinable period in the future, or for a
market rise, or for sale if the market does not rise.  The undersigned
does not have any such intention;

    

    (ii)   The
undersigned has the financial ability to bear the economic risk of his
investment, has adequate means for providing for his current needs and personal
contingencies and has no need for liquidity with respect to his investment in
the Company;

    

    (iii)    
  The undersigned has such knowledge and experience in financial and
business matters as to be capable of evaluating the merits and risks of the
prospective investment in the Shares.  The undersigned also represents
it has not been organized for the purpose of acquiring the Shares;
and

    

    (iv)      
The undersigned has been provided an opportunity for a reasonable period of time
prior to the date hereof to obtain information concerning the offering of the
Shares, the Company and all other information to the extent the Company
possesses such information or can acquire it without unreasonable effort or
expense.

    

    (g)           The
undersigned is not relying on the Company, or its affiliates or agents with
respect to economic considerations involved in this investment.  The
undersigned has relied solely on its own advisors.

    

    (h)           No
representations or warranties have been made to the undersigned by the Company,
or any officer, employee, agent, affiliate or subsidiary of the Company, other
than the representations of the Company contained herein, and in subscribing for
Shares the undersigned is not relying upon any representations other than those
contained herein.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (i)             Any
resale of the Shares during the ‘distribution compliance period’ as defined in
Rule 902(f) to Regulation S shall only be made in compliance with exemptions
from registration afforded by Regulation S.  Further, any such sale of
the Shares in any jurisdiction outside of the United States will be made in
compliance with the securities laws of such jurisdiction.  The
undersigned will not offer to sell or sell the Shares in any jurisdiction unless
the undersigned obtains all required consents, if any.

    

    (j) 
          The undersigned
understands that the Shares are being offered and sold in reliance on an
exemption from the registration requirements of United States federal and state
securities laws under Regulation S promulgated under the Securities Act and that
the Company is relying upon the truth and accuracy of the representations,
warranties, agreements, acknowledgments and understandings of the undersigned
set forth herein in order to determine the applicability of such exemptions and
the suitability of the undersigned to acquire the Shares.  In this
regard, the undersigned represents, warrants and agrees that:

    

    1.     The
undersigned is not an U.S. Person (as defined below) and is not an affiliate (as
defined in Rule 501(b) under the Securities Act) of the Company and is not
acquiring the Securities for the account or benefit of a U.S.
Person.  A U.S. Person means any one of the following:

     

    
      	
               
      

            	
              ·

            	
              any
      natural person resident in the United States of
  America;

            

    

     

    
      	
               
      

            	
              ·

            	
              any
      partnership or corporation organized or incorporated under the laws of the
      United States of America;

            

    

     

    
      	
               
      

            	
              ·

            	
              any
      estate of which any executor or administrator is a U.S.
      person;

            

    

     

    
      	
               
      

            	
              ·

            	
              any
      trust of which any trustee is a U.S.
person;

            

    

     

    
      	
               
      

            	
              ·

            	
              any
      agency or branch of a foreign entity located in the United States of
      America;

            

    

     

    
      	
               
      

            	
              ·

            	
              any
      non-discretionary account or similar account (other than an estate or
      trust) held by a dealer or other fiduciary for the benefit or account of a
      U.S. person;

            

    

     

    
      	
               
      

            	
              ·

            	
              any
      discretionary account or similar account (other than an estate or trust)
      held by a dealer or other fiduciary organized, incorporated or (if an
      individual) resident in the United States of America;
  and

            

    

     

    
      	
               
      

            	
              ·

            	
              any
      partnership or corporation if:

            

    

     

    (A)
organized or incorporated under the laws of any foreign jurisdiction;
and

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (B)
formed by a U.S. person principally for the purpose of investing in securities
not registered under the Securities Act, unless it is organized or incorporated,
and owned, by accredited investors (as defined in Rule 501(a) under the
Securities Act) who are not natural persons, estates or trusts.

    

    2.    At
the time of the origination of contact concerning this Agreement and the date of
the execution and delivery of this Agreement, the undersigned was outside of the
United States.

     

    3.    The
undersigned will not, during the period commencing on the date of issuance of
the Shares and ending on the first anniversary of such date, or such shorter
period as may be permitted by Regulation S or other applicable securities law
(the “Restricted Period”), offer, sell, pledge or otherwise transfer the
Securities in the United States, or to a U.S. Person for the account or for the
benefit of a U.S. Person, or otherwise in a manner that is not in compliance
with Regulation S.

     

    4.     The
undersigned will, after expiration of the Restricted Period, offer, sell, pledge
or otherwise transfer the Shares only pursuant to registration under the
Securities Act or an available exemption therefrom and, in accordance with all
applicable state and foreign securities laws.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5.    The
undersigned was not in the United States, engaged in, and prior to the
expiration of the Restricted Period will not engage in, any short selling of or
any hedging transaction with respect to the Shares, including without
limitation, any put, call or other option transaction, option writing or equity
swap.

     

    6.    Neither
the undersigned nor or any person acting on his behalf has engaged, nor will
engage, in any directed selling efforts to a U.S. Person with respect to the
Shares and the undersigned and any person acting on his behalf have complied and
will comply with the “offering restrictions” requirements of Regulation S under
the Securities Act.

     

    7.    The
transactions contemplated by this Agreement have not been pre-arranged with a
buyer located in the United States or with a U.S. Person, and are not part of a
plan or scheme to evade the registration requirements of the Securities
Act.

     

    8.    Neither
the undersigned nor any person acting on his behalf has undertaken or carried
out any activity for the purpose of, or that could reasonably be expected to
have the effect of, conditioning the market in the United States, its
territories or possessions, for any of the Shares.  The undersigned
agrees not to cause any advertisement of the Shares to be published in any
newspaper or periodical or posted in any public place and not to issue any
circular relating to the Shares, except such advertisements that include the
statements required by Regulation S under the Securities Act, and only offshore
and not in the U.S. or its territories, and only in compliance with any local
applicable securities laws.

     

    9.    Each
certificate representing the Shares shall be endorsed with the following
legends, in addition to any other legend required to be placed thereon by
applicable federal or state securities laws:

     

    (A)     “THE
SECURITIES ARE BEING OFFERED TO INVESTORS WHO ARE NOT U.S. PERSONS (AS DEFINED
IN REGULATION S UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“THE SECURITIES
ACT”)) AND WITHOUT REGISTRATION WITH THE UNITED STATES SECURITIES AND EXCHANGE
COMMISSION UNDER THE SECURITIES ACT IN RELIANCE UPON REGULATION S PROMULGATED
UNDER THE SECURITIES ACT.”

     

    (B)     “TRANSFER
OF THESE SECURITIES IS PROHIBITED, EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF
REGULATION S, PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT TO
AVAILABLE EXEMPTION FROM REGISTRATION.  HEDGING TRANSACTIONS MAY NOT
BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.”

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

    10.  The
undersigned consents to the Company making a notation on its records or giving
instructions to any transfer agent of the Company in order to implement the
restrictions on transfer of the Shares set forth in this Section.

    

    (k)          The
undersigned has carefully reviewed all of the Company’s filings under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), including
without limitation the Risk Factors provided for therein as well as the
registration statement filed by the Company to which the Company received
significant comments from the SEC.

    

    (l)           The
undersigned understands that an investment in the Shares is a speculative
investment which involves a high degree of risk and the potential loss of his
entire investment.

    

    (m)         The
undersigned's overall commitment to investments which are not readily marketable
is not disproportionate to the undersigned's net worth, and an investment in the
Securities will not cause such overall commitment to become
excessive.

    

    (n)          The
undersigned has received all documents, records, books and other information
pertaining to the undersigned’s investment in the Company that has been
requested by the undersigned.

    

    (o)          The
undersigned represents and warrants to the Company that all information that the
undersigned has provided to the Company is correct and complete as of the date
hereof.

    

    (p)          Other
than as set forth herein, the undersigned is not relying upon any other
information, representation or warranty by the Company or any officer, director,
stockholder, agent or representative of the Company in determining to invest in
the Shares.  The undersigned has consulted, to the extent deemed
appropriate by the undersigned, with the undersigned’s own advisers as to the
financial, tax, legal and related matters concerning an investment in the Shares
and on that basis believes that his or its investment in the Shares is suitable
and appropriate for the undersigned.

    

    (q)          The
undersigned is aware that no federal or state agency has (i) made any finding or
determination as to the fairness of this investment, (ii) made any
recommendation or endorsement of the Shares or the Company, or (iii) guaranteed
or insured any investment in the Shares or any investment made by the
Company.

    

    (r)           The
undersigned understands that the price of the Shares offered hereby bear no
relation to the assets, book value or net worth of the Company and were
determined arbitrarily by the Company.  The undersigned further
understands that there is a substantial risk of further dilution on his or its
investment in the Company.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    SECTION
4

    

    The Company represents and warrants to
the undersigned as follows:

    

    4.1         
Organization of the
Company.  The Company is a corporation duly organized and
validly existing and in good standing under the laws of the State of Delaware,
and has all requisite power and authority to own, lease and operate its
properties and to carry on its business as now being conducted.

    

    4.2           Authority.   The
Company has the requisite corporate power and authority to enter into and
perform its obligations under this Agreement and to issue the Shares; (b) the
execution and delivery of this Agreement by the Company and the consummation by
it of the transactions contemplated hereby and thereby have been duly authorized
by all necessary corporate action and no further consent or authorization is
required; and (c) this Agreement has been duly executed and delivered by the
Company and constitutes a valid and binding obligation of the Company
enforceable against the Company in accordance with its terms, except as
such  enforceability  may be limited by applicable
bankruptcy, insolvency, or similar laws relating to, or affecting generally the
enforcement of, creditors' rights and remedies or by other equitable principles
of general application.

    

    4.3          Exemption from Registration;
Valid Issuances.  The sale and issuance of the Shares, in
accordance with the terms and on the bases of the representations and warranties
of the undersigned set forth herein, may and shall be properly issued by the
Company to the undersigned pursuant to Section 4(2), Regulation S and/or any
applicable U.S state law. When issued and paid for as herein provided, the
Shares shall be duly and validly issued, fully paid, and nonassessable. Neither
the sales of the Shares pursuant to, nor the Company's performance of its
obligations under, this Agreement shall (a) result in the creation or imposition
of any liens, charges, claims or other encumbrances upon the Shares or any of
the assets of the Company, or (b) entitle the other holders of the Common Stock
of the Company to preemptive or other rights to subscribe to or acquire the
Common Stock or other securities of the Company. The Shares shall not subject
the undersigned to personal liability by reason of the ownership
thereof.

    

    4.4           No General Solicitation or
Advertising in Regard to this Transaction. Neither the Company nor any of
its affiliates nor any person acting on its or their behalf (a) has conducted or
will conduct any general solicitation (as that term is used in Rule 502(c) of
Regulation D) or general advertising with respect to any of the Shares, or (b)
made any offers or sales of any security or solicited any offers to buy any
security under any circumstances that would require registration of the Common
Stock under the Securities Act.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    4.5           No
Conflicts.  The execution, delivery and performance of this
Agreement by the Company and the consummation by the Company of the transactions
contemplated hereby, including without limitation the issuance of the Shares, do
not and will not (a) result in a violation of the Certificate or By-Laws of the
Company or (b) conflict with, or constitute a material default (or an event that
with notice or lapse of time or both would become a material default) under, or
give to others any rights of termination, amendment, acceleration or
cancellation of, any material agreement, indenture, instrument or any "lock-up"
or similar provision of any underwriting or similar agreement to which the
Company is a party, or (c) result in a violation of any federal, state, local or
foreign law, rule, regulation, order, judgment or decree (including federal and
state securities laws and regulations)applicable to the Company or by which any
property or asset of the Company is bound or affected (except for such
conflicts, defaults, terminations, amendments, accelerations, cancellations and
violations as would not, individually or in the aggregate, have a material
adverse effect on the business, operations, properties, prospects or condition
(financial or otherwise) of the Company) nor is the Company otherwise in
violation of, conflict with or in default under any of the foregoing. The
Company is not required under U.S. federal, state or local law, rule or
regulation to obtain any consent, authorization or order of, or make any filing
or registration with, any court or governmental agency in order for it to
execute, deliver or perform any of its obligations under this Agreement or issue
and sell the Common Stock in accordance with  the terms hereof (other
than any SEC, NASD or state securities filings that may be required to be made
by the Company subsequent to the Closing); provided that, for purposes of the
representation made in this sentence, the Company is assuming and relying upon
the accuracy of the relevant representations and agreements of the undersigned
herein.

    

    4.6           No Integrated
Offering.   Neither the Company, nor any of its
affiliates, nor any person acting on its or their behalf has, directly or
indirectly, made any offers or sales of any security or solicited any offers to
buy any security, other than pursuant to this Agreement.

    

    4.7           No Misleading or Untrue
Communication.   The Company, any person representing the
Company, and, to the knowledge of the Company, any other person selling or
offering to sell the Shares, if any, in connection with the transactions
contemplated by this Agreement, have not made, at any time, any written or oral
communication in connection with the offer or sale of the same which contained
any untrue statement of a material fact or omitted to state any material fact
necessary in order to make the statements, in the light of the circumstances
under which they were made, not misleading.

    

    SECTION
5

    

    5.1           Indemnity.    The
undersigned agrees to indemnify and hold harmless the Company, its officers and
directors, employees and its affiliates and their respective successors and
assigns and each other person, if any, who controls any thereof, against any
loss, liability, claim, damage and expense whatsoever (including, but not
limited to, any and all expenses whatsoever reasonably incurred in
investigating, preparing or defending against any litigation commenced or
threatened or any claim whatsoever) arising out of or based upon any false
representation or warranty or breach or failure by the undersigned to comply
with any covenant or agreement made by the undersigned herein or in any other
document furnished by the undersigned to any of the foregoing in connection with
this transaction.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    5.2           Modification.  Neither
this Agreement nor any provisions hereof shall be modified, discharged or
terminated except by an instrument in writing signed by the party against whom
any waiver, change, discharge or termination is sought.

    

    5.3           Notices.  Any
notice, demand or other communication which any  party hereto may be
required, or may elect, to give to anyone interested hereunder shall be
sufficiently given if (a) deposited, postage prepaid, in a mail letter box,
registered or certified mail, return receipt requested, addressed to such
address as may be given herein, or (b) delivered personally at such
address.

    

    5.4           Counterparts.  This
Agreement may be executed through the use of separate signature pages or in any
number of counterparts and by facsimile, and each of such counterparts shall,
for all purposes, constitute one agreement binding on all parties,
notwithstanding that all parties are not signatories to the same counterpart.
Signatures may  be facsimiles.

    

    5.5           Binding
Effect.  Except as otherwise provided herein, this Agreement
shall be binding upon and inure to the benefit of the parties and their heirs,
executors, administrators, successors, legal representatives and
assigns.  If the undersigned is more than one person, the obligation
of the undersigned shall be joint and several and the agreements,
representations, warranties and acknowledgments herein contained shall be deemed
to be made by and be binding upon each such person and his heirs, executors,
administrators and successors.

    

    5.6           Entire
Agreement.  This Agreement and the documents referenced herein
contain the entire agreement of the parties and there are no representations,
covenants or other agreements except as stated or referred to herein and
therein.

    

    5.7           Assignability.  This
Agreement is not transferable or assignable by the undersigned.

    

    5.8           Applicable
Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware, without giving effect to
conflicts of law principles.

    

    5.9          Pronouns.  The
use herein of the masculine pronouns "him" or "his" or similar terms shall be
deemed to include the feminine and neuter genders as well and the use herein of
the singular pronoun shall be deemed to include the plural as
well.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    IN
WITNESS WHEREOF, the undersigned has executed this Subscription Agreement on the
__day of _________ 20__.

    

    Amount of
Investment:

    

    $_______

    

    INDIVIDUAL
INVESTOR:

    

    ________________________

    Name:
________

    

    PARTNERSHIP,
CORPORATION, TRUST,

    CUSTODIAL
ACCOUNT, OTHER INVESTOR

    

    Taxpayer
Identification Number:_____________

    

    ACCEPTANCE
OF SUBSCRIPTION

    (to be
filed out only
by the Company)

    

    The
Company hereby accepts the above application of $_______ for subscription for
_________ shares on behalf of the Company.

    

    Dated:
__________, __20__

    

    By:
______________________________

    Name:
Henry Toh

    Title:
Vice Chairman, Executive Vice President of Corporate
Development

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Appendix
A

     

    Wiring
Instructions

     

    For
Payment of Purchase Price

     

    The
following are the wire instructions for the account into which the payment of
the purchase price for the Shares subscribed for should be wired.

    

    
      
        	
                Name
      of Bank:

              	 
      	
                Bank
      of Texas

              
	 
      	 
      	 
      
	
                Account
      Name:

              	 
      	
                NuGen
      Holdings, Inc.

              
	 
      	 
      	 
      
	
                Bank
      Address:

              	 
      	
                1401
      McKinney, Houston, TX

              
	 
      	 
      	 
      
	
                Account
      Number:

              	 
      	
                8092216236

              
	 
      	 
      	 
      
	
                ABA
      Number:

              	
                  

              	
                111014325

              

      

    

    

    In case
the entity on behalf of which the transfer is taking place is different from the
transferor, please make sure that the wire includes in the comments the name of
the entity.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
A

    

     Irrevocable
Proxy

    

    The undersigned stockholder of NuGen
Holdings, Inc., a Delaware corporation (the “Company”), hereby irrevocably (to
the fullest extent permitted by law) appoints Eric Takamura the attorney and
proxy of the undersigned with full power of substitution and resubstitution, to
the full extent of the undersigned’s rights with respect to (i) the outstanding
shares of Company common stock owned of record by the undersigned as of the date
of this proxy, and (ii) any and all other shares of Company common stock or
other securities which the undersigned may acquire on or after the date hereof.
The shares of the Company Common Stock referred to in clauses (i) and (ii) of
the immediately preceding sentence are collectively referred to in this proxy as
the “Shares”. Upon the execution hereof, any prior proxies given by the
undersigned with respect to any of the Shares are hereby revoked and the
undersigned agrees that no subsequent proxies will be given with respect to any
of the Shares.

     

    This proxy is irrevocable and is
coupled with an interest. This proxy shall remain in full force and effect to
the fullest extent permitted by law.

    

    The attorney and proxy named above will
be empowered, and may exercise this proxy, to vote the Shares at any meeting of
the stockholders of the Company, however called, and in any action by written
consent of the stockholders of the Company.

    

    This proxy shall be binding upon the
heirs, estate, executors, personal representatives, successors and assigns of
the undersigned, including any transferee of any of the Shares. If any provision
of this proxy or any part of any such provision is held under any circumstances
to be invalid or unenforceable in any jurisdiction, then (a) such provision or
part thereof shall, with respect to such circumstances and in such jurisdiction,
be deemed amended to conform to applicable laws so as to be valid and
enforceable to the fullest extent possible, (b) the invalidity or
unenforceability of such provision or part thereof under such circumstances and
in such jurisdiction shall not affect the validity or enforceability of such
provision or part thereof under any other circumstances or in any other
jurisdiction and (c) the invalidity or unenforceability of such provision or
part thereof under such circumstances and in such jurisdiction shall not affect
the validity or enforceability of the remainder of such provision or the
validity or enforceability of any provision of this proxy. Each provision of
this proxy is separable from every other provision of this proxy, and each part
of each provision of this proxy is separable from every other part of such
provision.

    

    IN WITNESS WHEREOF, the undersigned has
executed this irrevocable proxy as of the ___ day of ________,
20__.

     

    
      
        
          	 
      	
                  _______________________________

                
	 
      	
                  _________________

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
B

     

    NUGEN
HOLDINGS, INC.

     

    The
undersigned hereby agrees that for a period commencing on the date hereof and
expiring 9 months (the “Lock-Up Period”), he or she will not, directly or
indirectly, issue, offer, agree or offer to sell, sell, grant an option for the
purchase or sale of, transfer, pledge, assign, hypothecate, distribute or
otherwise encumber or dispose of any securities of NuGen Holdings, Inc.
(“NuGen”), including common stock or options, rights, warrants or other
securities underlying, convertible into, exchangeable or exercisable for or
evidencing any right to purchase or subscribe for any common stock (whether or
not beneficially owned by the undersigned), or any beneficial interest therein
(collectively, the “Securities”).

     

    Notwithstanding
anything contained herein to the contrary, the undersigned shall be permitted to
transfer Securities to (i) the parents, grandparents, brothers, sisters,
descendants (whether natural or adopted) and spouse of the undersigned; (ii) any
trust created solely for the benefit of any individual described in clauses (i)
above; (iii) any executor or administrator for any of the individuals or their
respective estates described in clauses (i) and (ii) above; (iv) any partnership
or limited liability company solely of the individuals described in clauses (i)
through (iii) above; (v) any tax exempt corporate foundation created by any of
the persons or entities described in clauses (i) through (iv) above exclusively
engaged in charitable purposes or a tax exempt corporation; and (vi) any
corporation or other entity all of the share capital or other equity interests
are owned solely by the undersigned and/or any of the individuals described in
clause (i) above, provided
that, in all cases, the transferee shall hold such Securities subject to
all of the terms and conditions of this agreement, and shall, as a condition of
receiving such Securities, execute and deliver documentation requested by NuGen
confirming that they shall be bound by this agreement

     

    In order
to enable the aforesaid covenants to be enforced, the undersigned hereby
consents to the placing of legends and/or stop-transfer orders with the transfer
agent of the NuGen’s securities with respect to any of the Securities registered
in the name of the undersigned or beneficially owned by the
undersigned.

     

    Dated:  ________
__, 20__

    

    
      
        
          	 
      	
                  ______________________

                
	 
      	
                  Name:
      ______

                
	 
      	
                  Number
      of Shares: ________

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule

    

    
      
        
          
            	
                    Subscriber's Name

                  	 	
                    Number of Shares

                  	 	 	
                    Purchase Price

                  	 
	 
      	 	 	 	 	 	 
	
                    Zhang
      Tao

                  	 	 	3,000,000	 	 	$	480,000	 
	
                    Zhang
      Chen

                  	 	 	1,250,000	 	 	$	200,000	 
	
                    Wang
      Bao Ru

                  	 	 	1,250,000	 	 	$	200,000	 
	
                    Zhou
      Qun

                  	 	 	412,500	 	 	$	66,000SUBSCRIPTION
AGREEMENT

     

    THIS SUBSCRIPTION AGREEMENT
(this “Agreement”), is
dated as of _____ __, 2010, by and between NuGen Holdings, Inc., a
Delaware corporation (the “Company”), and each of those
persons and entities, severally and not jointly, whose names are set forth on
the signature page hereto (which persons and entities are hereinafter
collectively referred to as “Subscribers” and each individually as a
“Subscriber”).

     

     WHEREAS, the Company and the
Subscriber are executing and delivering this Agreement in reliance upon an
exemption from securities registration afforded by the provisions of Section
4(2), Section 4(6), Regulation D (“Regulation D”) and/or
Regulation S (“Regulation
S”) as
promulgated by the United States Securities and Exchange Commission (the “Commission”) under the
Securities Act of 1933, as amended (the “1933 Act”).

     

    WHEREAS, the parties desire
that, upon the terms and subject to the conditions contained herein, the Company
shall issue and sell to the Subscriber, as provided herein, and the Subscriber
shall purchase for the principal amount of the Convertible Promissory Note (the
“Note”), in
the form attached hereto as Exhibit A, in the
amount as set forth on the signature page hereof (the “Subscription
Price”) (which aggregate amount for all Subscribers shall be the maximum
of $300,000), which Note shall be convertible into the number of shares of
common stock of the Company (the “Shares”)
as provided for therein.  The Note and the Shares are collectively
referred to herein as the “Securities”;

     

    NOW, THEREFORE, in
consideration of the mutual covenants and other agreements contained in this
Agreement the Company and the Subscriber hereby agree as follows:

     

    1.           Closing
Date.  Each Subscriber shall purchase and the Company shall
sell to each Subscriber a Note in the principal amount set forth on the
signature page hereto.  Each date the Company receives a signature
page to this Agreement and the applicable Subscription Price is referred to
herein as a “Closing
Date.”As there is no minimum amount of Notes to be offered and sold by
the Company, the Company shall have immediate access to the Subscription
Price.  The principal amount of the Notes to be purchased by the
Subscribers on all Closing Dates shall be not greater than Three Hundred
Thousand Dollars ($300,000).

    

    2.           Subscriber Representations
and Warranties.  Subscriber hereby represents and warrants to
and agrees with the Company that:

    

    (a)           Organization and Standing of
the Subscriber.  If Subscriber is an entity, Subscriber is duly
incorporated, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or formation, as the case may be.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)           Authorization and
Power.  Subscriber has the requisite power and authority to
enter into and perform this Agreement and any other agreements delivered
together with this Agreement or in connection herewith (collectively, “Transaction Documents”) and to
purchase the Note being sold to it hereunder.  The execution, delivery
and performance of this Agreement and the other Transaction Documents by
Subscriber and the consummation by it of the transactions contemplated hereby
and thereby have been duly authorized by all necessary corporate action, and no
further consent or authorization of Subscriber, its Board of Directors,
stockholders or any other third person is required.  This Agreement
and the other Transaction Documents have been duly authorized, executed and when
delivered by Subscriber and constitute, or shall constitute when executed and
delivered, a valid and binding obligation of Subscriber enforceable against
Subscriber in accordance with the terms thereof.

    

    (c)           No
Conflicts.  The execution, delivery and performance of this
Agreement and the other Transaction Documents and the consummation by Subscriber
of the transactions contemplated hereby and thereby or relating hereto do not
and will not violate, conflict with, result in a breach of, or constitute a
default (or an event which with the giving of notice or the lapse of time or
both would be reasonably likely to constitute a default) under (i) the articles
or certificate of incorporation, charter or bylaws or other organizational
documents of the Subscriber, (ii) any decree, judgment, order, law, treaty,
rule, regulation or determination applicable to the Subscriber of any court,
governmental agency or body, or arbitrator having jurisdiction over the
Subscriber or over the properties or assets of the Subscriber, or (iii) the
terms of any bond, debenture, note or any other evidence of indebtedness, or any
agreement, stock option or other similar plan, indenture, lease, mortgage, deed
of trust or other instrument to which the Subscriber is a party, by which the
Subscriber is bound, or to which any of the properties of the Subscriber is
subject.  Subscriber is not required to obtain any consent,
authorization or order of, or make any filing or registration with, any court or
governmental agency in order for it to execute, deliver or perform any of its
obligations under this Agreement and the other Transaction
Documents  nor to purchase the Securities in accordance with the terms
hereof.

    

    (d)           Information on
Company.   Subscriber has been furnished with or has had
access at the EDGAR Website of the Securities and Exchange Commission to all
filings made by the Company, including without limitation the financial
statements included therein (hereinafter referred to collectively as the "Reports").  In
addition, Subscriber may have received from the Company such other information
concerning its operations, financial condition and other matters as Subscriber
has requested and considered all factors Subscriber deems material in deciding
on the advisability of investing in the Note.

    

    (e)           Information on
Subscriber.   Subscriber is an "accredited investor", as such
term is defined in Regulation D promulgated by the Commission under the 1933
Act, is experienced in investments and business matters, has made investments of
a speculative nature and has purchased securities of United States
publicly-owned companies in private placements in the past and, with its
representatives, has such knowledge and experience in financial, tax and other
business matters as to enable Subscriber to utilize the information made
available by the Company to evaluate the merits and risks of and to make an
informed investment decision with respect to the proposed purchase, which
represents a speculative investment.  Subscriber has the authority and
is duly and legally qualified to purchase and own the
Securities.  Subscriber is able to bear the risk of such investment
for an indefinite period and to afford a complete loss thereof.  The
information set forth on the signature page hereto and the Investor
Questionnaire regarding Subscriber is accurate.

    
      
         

      

      
        –2-

        
          

        

      

      
         

      

    

    

    (f)          Purchase of Note and
Shares.  Subscriber is purchasing the Note as principal for its
own account for investment only and not with a view toward, or for resale in
connection with, the public sale or any distribution thereof.  No
other person has a direct or indirect beneficial interest in the Securities or
any portion thereof.  Further, the Subscriber does not have any
contract, undertaking, agreement or arrangement with any person to sell,
transfer or grant participations to such person or to any third person, with
respect to the Securities for which the undersigned is subscribing or any part
of the Securities.

    

    (g)           Compliance with Securities
Act.   Subscriber understands and agrees that the
Securities have not been registered under the 1933 Act or any applicable state
securities laws, by reason of their issuance in a transaction that does not
require registration under the 1933 Act (based in part on the accuracy of the
representations and warranties of the Subscriber contained herein), and that
such Securities must be held indefinitely unless a subsequent disposition is
registered under the 1933 Act or any applicable state securities laws or is
exempt from such registration. The Subscriber has the financial ability to bear
the economic risk of his investment, has adequate means for providing for his
current needs and personal contingencies and has no need for liquidity with
respect to his investment in the Company.

     

    (h)           Communication of
Offer.  The offer to sell the Securities was directly
communicated to Subscriber by the Company.  At no time was Subscriber
presented with or solicited by any leaflet, newspaper or magazine article, radio
or television advertisement, or any other form of general advertising or
solicited or invited to attend a promotional meeting otherwise than in
connection and concurrently with such communicated offer.

    

    (i)      
     Restricted
Securities.   Subscriber understands that the Securities
have not been registered under the 1933 Act and Subscriber will not sell, offer
to sell, assign, pledge, hypothecate or otherwise transfer any of the Securities
unless pursuant to an effective registration statement under the 1933 Act, or
unless an exemption from registration is available.  Subscriber
understands that the following or substantially similar legend shall be imposed
on the certificates representing the Securities:

    
      
         

      

      
        –3-

        
          

        

      

      
         

      

    

    "THE ISSUANCE AND SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, NOR APPLICABLE STATE SECURITIES
LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR
THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION
OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS
SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. "

    

    (j)           No Governmental
Review.  Subscriber understands that no United States federal
or state agency or any other governmental or state agency has passed on or made
recommendations or endorsement of the Securities or the suitability of the
investment in the Securities nor have such authorities passed upon or endorsed
the merits of the offering of the Securities.

    

    (k)           Correctness of
Representations.  Subscriber represents that the foregoing
representations and warranties are true and correct as of the date hereof and,
unless Subscriber otherwise notifies the Company prior to the Closing Date shall
be true and correct as of the Closing Date.

    

    (l)         
  Survival.  The
foregoing representations and warranties shall survive the Closing
Date.

     

    3.           Company Representations and
Warranties.  The Company represents and warrants to and agrees
with each Subscriber that:

     

    (a)           Due
Incorporation.  The Company is a corporation or other entity
duly incorporated or organized, validly existing and in good standing under the
laws of the State of Delaware and has the requisite corporate power to own its
properties and to carry on its business as presently conducted.

     

    (b)           Authority;
Enforceability.  This Agreement, the Note and the other
Transaction Documents have been duly authorized, executed and delivered by the
Company and are valid and binding agreements of the Company enforceable in
accordance with their terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability
relating to or affecting creditors' rights generally and to general principles
of equity.  The Company has full corporate power and authority
necessary to enter into and deliver this Agreement and the other Transaction
Documents and to perform its obligations hereunder and thereunder.

     

    (c)           Consents.  No
consent, approval, authorization or order of any court, governmental agency or
body or arbitrator having jurisdiction over the Company, or any of its
affiliates, or the Company's shareholders is required for the execution by the
Company of the Transaction Documents and compliance and performance by the
Company of its obligations under the Transaction Documents, including, without
limitation, the issuance and sale of the Securities.  The Transaction
Documents and the Company’s performance of its obligations thereunder have been
approved by the Company’s Board of Directors.

    
      
         

      

      
        –4-

        
          

        

      

      
         

      

    

     

    (d)          No Violation or
Conflict.  Assuming the representations and warranties of the
Subscriber in Section 4 are true and correct, neither the issuance and sale of
the Securities nor the performance of the Company’s obligations under this
Agreement and all other agreements entered into by the Company relating thereto
by the Company will:

     

    (i)           violate,
conflict with, result in a breach of, or constitute a default (or an event which
with the giving of notice or the lapse of time or both would be reasonably
likely to constitute a default) under (A) the articles or certificate of
incorporation, charter or bylaws of the Company, (B) to the Company's knowledge,
any decree, judgment, order, law, treaty, rule, regulation or determination
applicable to the Company of any court, governmental agency or body, or
arbitrator having jurisdiction over the Company or over the properties or assets
of the Company, or (C) the terms of any bond, debenture, note or any other
evidence of indebtedness, or any agreement, stock option or other similar plan,
indenture, lease, mortgage, deed of trust or other instrument to which the
Company is a party, by which the Company is bound, or to which any of the
properties of the Company is subject; or

     

    (ii)          result
in the creation or imposition of any lien, charge or encumbrance upon the
Securities or any of the assets of the Company except pursuant to applicable
securities laws and regulations. 

     

    (e)          The
Securities.  The Securities upon issuance:

     

    (i)           are,
or will be, free and clear of any security interests, liens, claims or other
encumbrances, subject only to restrictions upon transfer under the 1933 Act and
any applicable state or foreign securities laws;

    

    (ii)          have
been, or will be, duly and validly authorized and the Shares will be duly and
validly issued, fully paid and non-assessable;

     

    (iii)         will
not subject the holders thereof to personal liability by reason of being such
holders.

     

    (f)           Litigation.  There
is no pending or, to the best knowledge of the Company, threatened action, suit,
proceeding or investigation before any court, governmental agency or body, or
arbitrator having jurisdiction over the Company, or any of its Affiliates that
would affect the execution by the Company or the complete and timely performance
by the Company of its obligations under the Transaction
Documents.  There is no pending or, to the best knowledge of the
Company, basis for or threatened action, suit, proceeding or investigation
before any court, governmental agency or body, or arbitrator having jurisdiction
over the Company, or any of its Affiliates which litigation if adversely
determined would have a material adverse effect on the Company or its proposed
operations.

    
      
         

      

      
        –5-

        
          

        

      

      
         

      

    

     

    (g)           No General
Solicitation.  Neither the Company, nor any of its affiliates,
nor to its knowledge, any person acting on its or their behalf, has engaged in
any form of general solicitation or general advertising (within the meaning of
Regulation D under the 1933 Act) in connection with the offer or sale of the
Securities.

     

     (h)          Reporting
Company.  The Company is a publicly-held company subject to
reporting obligations pursuant to Section 13 of the Securities Exchange Act of
1934, as amended (the "1934
Act").  Pursuant to the provisions of the 1934 Act, the Company
has timely filed all reports and other materials required to be filed thereunder
with the Commission during the preceding twelve months.

    

    (i)         
  Correctness of
Representations.  The Company represents that the foregoing
representations and warranties are true and correct as of the date hereof in all
material respects, and, unless the Company otherwise notifies the Subscribers
prior to the Closing Date, shall be true and correct in all material respects as
of the Closing Date; provided, that, if such representation or warranty is made
as of a different date in which case such representation or warranty shall be
true as of such date.

     

    4.           Exempt Offering.  The
offer and issuance of the Securities to the Subscribers is being made pursuant
to the exemption from the registration provisions of the 1933 Act afforded by
Section 4(2) or Section 4(6) of the 1933 Act, Rule 506 of Regulation D and/or
Regulation S promulgated thereunder.

    

    5.           Broker.   The
Company and Subscriber agree to indemnify the other against and hold the other
harmless from any and all liabilities to any persons claiming brokerage
commissions, finder’s fees, or due diligence fees on account of services
purported to have been rendered on behalf of the indemnifying party in
connection with this Agreement and the offering.

     

    6.           Use of
Proceeds.   The proceeds of this Offering will be employed
by the Company for general working capital.

     

    7.           Indemnification. The Subscriber
agrees to indemnify, hold harmless, reimburse and defend the Company, the
Company’s officers, directors, agents, affiliates, members, managers, control
persons, representatives, principal shareholders and their respective successors
and assigns, against any claim, cost, expense, liability, obligation, loss or
damage (including reasonable legal fees) of any nature, incurred by or imposed
upon any such person which results, arises out of or is based upon any
misrepresentation by Subscriber or breach of any representation or warranty by
Subscriber in this Agreement or in any Exhibits or Schedules attached hereto in
any Transaction Document, or other agreement delivered pursuant hereto or in
connection herewith, now or after the date hereof.

    
      
         

      

      
        –6-

        
          

        

      

      
         

      

    

     

    8.           Miscellaneous.

     

    (a)           Notices.  All
notices, demands, requests, consents, approvals, and other communications
required or permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be (i) personally served, (ii) deposited in the mail,
registered or certified, return receipt requested, postage prepaid, (iii)
delivered by reputable air courier service with charges prepaid, or (iv)
transmitted by hand delivery, telegram, or facsimile, addressed as set forth
below or to such other address as such party shall have specified most recently
by written notice.  Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or delivery by facsimile, with accurate confirmation generated by the
transmitting facsimile machine, at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered
other than on a business day during normal business hours where such notice is
to be received) or (b) on the second business day following the date of mailing
by express courier service, fully prepaid, addressed to such address, or upon
actual receipt of such mailing, whichever shall first occur. The addresses for
such communications shall be: (i) if to the Company, to: NuGen Holdings, Inc.,
44645 Guildford Drive, Suite 201, Ashburn, VA 21047, and (ii) if to the
Subscriber, to: the address and fax number indicated on the signature page
hereto.

     

     (b)          Entire Agreement;
Assignment.  This Agreement and other documents delivered in
connection herewith represent the entire agreement between the parties hereto
with respect to the subject matter hereof and may be amended only by a writing
executed by both parties.  Neither the Company nor the Subscriber has
relied on any representations not contained or referred to in this Agreement and
the documents delivered herewith.   No right or obligation of the
Subscriber shall be assigned without prior notice to and the written consent of
the Company.

     

    (c)           Counterparts/Execution.  This
Agreement may be executed in any number of counterparts and by the different
signatories hereto on separate counterparts, each of which, when so executed,
shall be deemed an original, but all such counterparts shall constitute but one
and the same instrument.  This Agreement may be executed by facsimile
signature and delivered by electronic transmission.

    
      
         

      

      
        –7-

        
          

        

      

      
         

      

    

     

    (d)           Law Governing this
Agreement.  This Agreement shall be governed by and construed
in accordance with the laws of the State of New York without regard to
principles of conflicts of laws. Any action brought by either party against the
other concerning the transactions contemplated by this Agreement shall be
brought only in the state courts of New York or in the federal courts located in
the state and county of New York.  The parties to this Agreement
hereby irrevocably waive any objection to jurisdiction and venue of any action
instituted hereunder and shall not assert any defense based on lack of
jurisdiction or venue or based upon forum non
conveniens.  The parties executing this Agreement
and other agreements referred to herein or delivered in connection herewith on
behalf of the Company agree to submit to the in personam jurisdiction of such
courts and hereby irrevocably waive trial by jury.  The
prevailing party shall be entitled to recover from the other party its
reasonable attorney's fees and costs.  In the event that any provision
of this Agreement or any other agreement delivered in connection herewith is
invalid or unenforceable under any applicable statute or rule of law, then such
provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of
law.  Any such provision which may prove invalid or unenforceable
under any law shall not affect the validity or enforceability of any other
provision of any agreement.  Each party hereby irrevocably waives
personal service of process and consents to process being served in any suit,
action or proceeding in connection with this Agreement or any other Transaction
Document by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for
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 other manner permitted by law.

     

     (e)          Captions: Certain
Definitions.  The captions of the various sections and
paragraphs of this Agreement have been inserted only for the purposes of
convenience; such captions are not a part of this Agreement and shall not be
deemed in any manner to modify, explain, enlarge or restrict any of the
provisions of this Agreement.  As used in this Agreement the term
“person” shall
mean and include an individual, a partnership, a joint venture, a corporation, a
limited liability company, a trust, an unincorporated organization and a
government or any department or agency thereof.

     

    (f)           Severability.  In
the event that any term or provision of this Agreement shall be finally
determined to be superseded, invalid, illegal or otherwise unenforceable
pursuant to applicable law by an authority having jurisdiction and venue, that
determination shall not impair or otherwise affect the validity, legality or
enforceability: (i) by or before that authority of the remaining terms and
provisions of this Agreement, which shall be enforced as if the unenforceable
term or provision were deleted, or (ii) by or before any other authority of any
of the terms and provisions of this Agreement.

     

    [Remainder
of Page Intentionally Omitted; Signature Pages to Follow]

     

    
      
         

      

      
        –8-

        
          

        

      

      
         

      

    

     

    SIGNATURE PAGE TO
SUBSCRIPTION AGREEMENT

    

    Please
acknowledge your acceptance of the foregoing Subscription Agreement by signing
and returning a copy to the undersigned whereupon it shall become a binding
agreement between us.

    

    
      
        
          	
                  NUGEN
      HOLDINGS, INC.

                
	 
      
	
                  By:

                	 
      
	 
      	
                  Name:
      Alan Pritzker

                
	 
      	
                  Title:
      Chief Financial Officer
and Secretary

                
	 
      	 
      
	
                  Dated: 
      October ___, 2010

                

        

      

    

    

    
      
        
          	
                  SUBSCRIBER

                  ADDRESS

                	 
      	
                  PURCHASE PRICE 

                
	 
      	 
      	
                  $_____

                
	 
      	 
      	 
      
	
                  By:

                	 
      	 
      
	
                  Title:

                	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                  By:

                	 
      	 
      
	
                  Title:

                	 
      	 
      
	 
      	
                    

                	 
      
	 
      	 
      	 
      
	
                  By:

                	 
      	 
      
	
                  Title:

                	 
      	 
      

        

      

    

    
      
         

      

      
        –9-

        
          

        

      

      
         

      

    

    INVESTOR
QUESTIONNAIRE

    

    
      
        
          
            	
                    A.

                  	
                    General Information

                  	 
      
	 
      	 
      	 
      
	
                    1.

                  	
                    Print
      Full Name of Investor:

                  	
                    Individual:

                  
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                    First,
      Middle, Last

                  
	 
      	 
      	 
      
	 
      	 
      	
                    Partnership,
      Corporation, Trust, Custodial Account, Other:

                  
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                    Name
      of Entity

                  
	 
      	 
      	 
      
	
                    2.

                  	
                    Address
      for Notices:

                  	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                    3.

                  	
                    Name
      of Primary Contact Person:

                  	 
      
	 	      
                    Title:

                  	 
	 
      	 
      	 
      
	
                    4.

                  	
                    Telephone
      Number:

                  	 
      
	 
      	 
      	 
      
	
                    5.

                  	
                    E-Mail
      Address:

                  	 
      
	 
      	 
      	 
      
	
                    6.

                  	
                    Facsimile
      Number:

                  	 
      

          

        

      

    

    
      
         

      

      
        –10-

        
          

        

      

      
         

      

    

    

    
      	
              7.

            	
              U.S. Investors
      Only:

            	 
      
	 
      	 
      	 
      
	 
      	
              U.S.
      Taxpayer Identification or Social

              Security
      Number:

            	 
      

    

    

    B.           Accredited Investor
Status

    

    The
Subscriber represents and warrants that the Subscriber is an “accredited
investor” within the meaning of Rule 501 of Regulation D under the Securities
Act of 1933, as amended (the “Securities Act”), and has checked the box or boxes
below which are next to the categories under which the Investor qualifies as an
accredited investor:

    

    FOR
INDIVIDUALS:

    

    
      	
              o

            	
              A
      natural person with individual net worth (or joint net worth with spouse)
      in excess of $1 million. For purposes of this item, “net worth” means the
      excess of total assets at fair market value, including home, home
      furnishings and automobiles (and including property owned by a spouse),
      over total liabilities.

            

    

    

    
      	
              o

            	
              A
      natural person with individual income (without including any income of the
      Investor’s spouse) in excess of $200,000, or joint income with spouse of
      $300,000, in each of the two most recent years and who reasonably expects
      to reach the same income level in the current
  year.

            

    

    

    FOR
ENTITIES:

    

    
      	
              o

            	
              A
      bank as defined in Section 3(a)(2) of the Securities Act or any savings
      and loan association or other institution as defined in Section 3(a)(5)(A)
      of the Securities Act, whether acting in its individual or fiduciary
      capacity.

            

    

    

    
      	
              o

            	
              An
      insurance company as defined in Section 2(13) of the Securities
      Act.

            

    

    

    
      	
              o

            	
              A
      broker-dealer registered pursuant to Section 15 of the Securities Exchange
      Act of 1934.

            

    

    

    
      	
              o

            	
              An
      investment company registered under the Investment Company Act of 1940, as
      amended (the “Investment Company Act”). If an Investor has checked this
      box, please contact David Lubin, Esq. at 516-887-8200 for additional
      information that will be required.

            

    

    

    
      	
              o

            	
              A
      business development company as defined in Section 2(a)(48) of the
      Investment Company Act.

            

    

    

    
      	
              o

            	
              A
      small business investment company licensed by the Small Business
      Administration under Section 301(c) or (d) of the Small Business
      Investment Act of 1958.

            

    

    
      
         

      

      
        –11-

        
          

        

      

      
         

      

    

    

    
      	
              o

            	
              A
      private business development company as defined in Section 202(a)(22) of
      the Investment Advisers Act of 1940. If an Investor has checked this box,
      please contact David Lubin, Esq. for additional information that will be
      required.

            

    

    

    
      	
              o

            	
              An
      organization described in Section 501(c)(3) of the Internal Revenue Code,
      a corporation, Massachusetts or similar business trust, or partnership,
      not formed for the specific purpose of acquiring the Securities, with
      total assets in excess of $5
million.

            

    

    

    
      	
              o

            	
              A
      trust with total assets in excess of $5 million not formed for the
      specific purpose of acquiring the Securities, whose purchase is directed
      by a person with such knowledge and experience in financial and business
      matters as to be capable of evaluating the merits and risks of an
      investment in the Company and the purchase of the
    Securities.

            

    

    

    
      	
              o

            	
              An
      employee benefit plan within the meaning of ERISA if the decision to
      invest in the Securities is made by a plan fiduciary, as defined in
      Section 3(21) of ERISA, which is either a bank, savings and loan
      association, insurance company, or registered investment adviser, or if
      the employee benefit plan has total assets in excess of $5 million or, if
      a self-directed plan, with investment decisions made solely by persons
      that are accredited investors.

            

    

    

    
      	
              o

            	
              A
      plan established and maintained by a state, its political subdivisions, or
      any agency or instrumentality of a state or its political subdivisions,
      for the benefit of its employees, if the plan has total assets in excess
      of $5 million.

            

    

    

    
      	
              o

            	
              An
      entity, including a grantor trust, in which all of the equity owners are
      accredited investors as determined under any of the foregoing paragraphs
      (for this purpose, a beneficiary of a trust is not an equity owner, but
      the grantor of a grantor trust is an equity
  owner).

            

    

     

    
      
         

      

      
        –12-

        
          

        

      

      
         

      

    

    IF
THE FOLLOWING SECTION IS APPLICABLE, CHECK HERE __ INDICATING THAT THE
REPRESENTATIONS AND WARRANTIES CONTAINED IN THE FOLLOWING SECTION ARE EXPRESSLY
MADE BY THE SUBSCRIBER

    

    C.           Regulation
S

    

    The Subscriber understands that the
Securities are being offered and sold in reliance on an exemption from the
registration requirements of United States federal and state securities laws
under Regulation S promulgated under the Securities Act and that the Company is
relying upon the truth and accuracy of the representations, warranties,
agreements, acknowledgments and understandings of the Investor set forth herein
in order to determine the applicability of such exemptions and the suitability
of the Investor to acquire the Securities.  In this regard, the
Subscriber represents, warrants and agrees that:

    

    
      	
               
      

            	
              1.

            	
              The
      Subscriber is not a U.S. Person (as defined below) and is an affiliate (as
      defined in Rule 501(b) under the Securities Act) of the Company and is not
      acquiring the Securities for the account or benefit of a U.S.
      Person.

            

    

    

     A U.S. Person means any one of
the following:

     

    
      	
               
      

            	
              ·

            	
              any
      natural person resident in the United States of
  America;

            

    

     

    
      	
               
      

            	
              ·

            	
              any
      partnership or corporation organized or incorporated under the laws of the
      United States of America;

            

    

     

    
      	
               
      

            	
              ·

            	
              any
      estate of which any executor or administrator is a U.S.
      person;

            

    

     

    
      	
               
      

            	
              ·

            	
              any
      trust of which any trustee is a U.S.
person;

            

    

     

    
      	
               
      

            	
              ·

            	
              any
      agency or branch of a foreign entity located in the United States of
      America;

            

    

     

    
      	
               
      

            	
              ·

            	
              any
      non-discretionary account or similar account (other than an estate or
      trust) held by a dealer or other fiduciary for the benefit or account of a
      U.S. person;

            

    

     

    
      	
               
      

            	
              ·

            	
              any
      discretionary account or similar account (other than an estate or trust)
      held by a dealer or other fiduciary organized, incorporated or (if an
      individual) resident in the United States of America;
  and

            

    

     

    
      	
               
      

            	
              ·

            	
              any
      partnership or corporation if:

            

    

     

    
       
(A)
organized or incorporated under the laws of any foreign jurisdiction;
and

    

    

    (B) formed by a U.S. person
principally for the purpose of investing in securities not registered under the
Securities Act, unless it is organized or incorporated, and owned, by accredited
investors (as defined in Rule 501(a) under the Securities Act) who are not
natural persons, estates or trusts.

    
      
         

      

      
        –13-

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              2.

            	
              At
      the time of the origination of contact concerning this Agreement and the
      date of the execution and delivery of this Agreement, the Subscriber was
      outside of the United States.

            

    

    

    
      	
               
      

            	
              3.

            	
              The
      Subscriber will not, during the period commencing on the date of issuance
      of the Note or Shares and ending on the six month anniversary of such
      date, (the “Restricted Period”), offer, sell, pledge or otherwise transfer
      the Note or the Shares in the United States, or to a U.S. Person for the
      account or for the benefit of a U.S. Person, or otherwise in a manner that
      is not in compliance with Regulation
S.

            

    

    

    
      	
               
      

            	
              4.

            	
              The
      Subscriber will, after expiration of the Restricted Period, offer, sell,
      pledge or otherwise transfer the Note or Shares only pursuant to
      registration under the Securities Act or an available exemption therefrom
      and, in accordance with all applicable state and foreign securities
      laws.

            

    

    

    
      	
               
      

            	
              5.

            	
              The
      Subscriber was not in the United States, engaged in, and prior to the
      expiration of the Restricted Period will not engage in, any short selling
      of or any hedging transaction with respect to the Securities, including
      without limitation, any put, call or other option transaction, option
      writing or equity swap.

            

    

    

    
      	
               
      

            	
              6.

            	
              Neither
      the Subscriber nor or any person acting on his behalf has engaged, nor
      will engage, in any directed selling efforts to a U.S. Person with respect
      to the Securities and the Investor and any person acting on his behalf
      have complied and will comply with the “offering restrictions”
      requirements of Regulation S under the Securities
  Act.

            

    

    

    
      	
               
      

            	
              7.

            	
              The
      transactions contemplated by this Agreement have not been pre-arranged
      with a buyer located in the United States or with a U.S. Person, and are
      not part of a plan or scheme to evade the registration requirements of the
      Securities Act.

            

    

    

    
      	
               
      

            	
              8.

            	
              Neither
      the Subscriber nor any person acting on his behalf has undertaken or
      carried out any activity for the purpose of, or that could reasonably be
      expected to have the effect of, conditioning the market in the United
      States, its territories or possessions, for any of the
      Securities.  The Subscriber agrees not to cause any
      advertisement of the Securities to be published in any newspaper or
      periodical or posted in any public place and not to issue any circular
      relating to the Securities, except such advertisements that include the
      statements required by Regulation S under the Securities Act, and only
      offshore and not in the U.S. or its territories, and only in compliance
      with any local applicable securities
laws.

            

    

    

    
      	
               
      

            	
              9.

            	
              In
      addition to the legends described in Section 3 of the Agreement, each
      certificate representing the Securities shall be endorsed with the
      following legends, in addition to any other legend required to be placed
      thereon by applicable federal or state securities
  laws:

            

    

    
      
         

      

      
        –14-

        
          

        

      

      
         

      

    

    

    “THE
SECURITIESARE BEING OFFERED TO INVESTORS WHO ARE NOT U.S. PERSONS (AS DEFINED IN
REGULATION S UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“THE SECURITIES
ACT”)) AND WITHOUT REGISTRATION WITH THE UNITED STATES SECURITIES AND EXCHANGE
COMMISSION UNDER THE SECURITIES ACT IN RELIANCE UPON REGULATION S PROMULGATED
UNDER THE SECURITIES ACT.”

    

    D.          Supplemental
Data for Entities

    

    1.           If
the Subscriber is not a natural person, furnish the following supplemental data
(natural persons may skip this Section D of the Investor
Questionnaire):

    

    Legal
form of entity (trust, corporation, partnership, etc.):
_________________________

    

    Jurisdiction
of organization: ________________________________________________

    

    2.           Was
the Subscriber organized for the specific purpose of acquiring the
Securities?

    

    
      	
              o  Yes

            	
              o  No

            

    

    

    If the
answer to the above question is “Yes,” please contact David Lubin, Esq. at
516-887-8200 for additional information that will be required.

    

    3.           Are
shareholders, partners or other holders of equity or beneficial interest in the
Investor able to decide individually whether to participate, or the extent of
their participation, in the Investor’s investment in the Company (i.e., can
shareholders, partners or other holders of equity or beneficial interest in the
Investor determine whether their capital will form part of the capital invested
by the Investor in the Company)?

    

    
      	
              o  Yes

            	
              o  No

            

    

    

    If the
answer to the above question is “Yes,” please contact David Lubin for additional
information that will be required.

    

    4(a).      Please
indicate whether or not the Subscriber is, or is acting on behalf of, (i) an
employee benefit plan within the meaning of Section 3(3) of ERISA, whether or not such plan is
subject to ERISA, or (ii) an entity which is deemed to hold the assets of
any such employee benefit plan pursuant to 29 C.F.R. § 2510.3-101. For example,
a plan which is maintained by a foreign corporation, governmental entity or
church, a Keogh plan covering no common-law employees and an individual
retirement account are employee benefit plans within the meaning of Section 3(3)
of ERISA but generally are not subject to ERISA (collectively, “Non-ERISA Plans”). In
general, a foreign or US entity which is not an operating company and which is
not publicly traded or registered as an investment company under the Investment
Company Act of 1940, as amended, and in which 25% or more of the value of any
class of equity interest is held by employee pension or welfare plans (including
an entity which is deemed to hold the assets of any such plan), would be deemed
to hold the assets of one or more employee benefit plans pursuant to 29 C.F.R. §
2510.3-101. However, if only Non-ERISA Plans were invested in such an entity,
the entity generally would not be subject to ERISA. For purposes of determining
whether this 25% threshold has been met or exceeded, the value of any equity
interest held by a person (other than such a plan or entity) who has
discretionary authority or control with respect to the assets of the entity, or
any person who provides investment advice for a fee (direct or indirect) with
respect to such assets, or any affiliate of such a person, is
disregarded.

     

    
      
        	
                o  Yes

              	
                o  No

              

      

       

    

    
      
         

      

      
        –15-

        
          

        

      

      
         

      

    

     

    4(b).   
   If the Subscriber is, or is acting on behalf of, such an
employee benefit plan, or is an entity deemed to hold the assets of any such
plan or plans, please indicate whether or not the Investor is subject to
ERISA.

    

    
      	
              o  Yes

            	
              o  No

            

    

    

    4(c.)   
   If the Subscriber answered “Yes” to question 4.(b) and the
Subscriber is investing the assets of an insurance company general account,
please indicate what percentage of the Investor’s assets the purchase of the
Securities is subject to ERISA. ___________%.

    

    5.           Does
the amount of the Subscriber’s subscription for the Securities in the Company
exceed 40% of the total assets (on a consolidated basis with its subsidiaries)
of the Subscriber?

    

    
      	
              o   Yes

            	
              o   No

            

    

    

    If the
question above was answered “Yes,” please contact David Lubin for additional
information that will be required.

    

    6(a).  
    Is the Subscriber a private investment company which is
not registered under the Investment Company Act, in reliance on Section 3(c)(1)
or Section 3(c)(7) thereof?

    

    
      	
              o  Yes

            	
              o  No

            

    

    

    6(b). 
     If the question above was answered “Yes,” was the
Subscriber formed prior to April 30, 1996?

    

    
      	
              o  Yes

            	
              o  No

            

    

    

    If the
questions set forth in (a) and (b) above were both answered “Yes,” please
contact David Lubin for additional information that will be
required.

    

    7(a).  
    Is the Subscriber a grantor trust, a partnership or an
S-Corporation for US federal income tax purposes?

    

    
      	
              o  Yes

            	
              o  No

            

    

    

    7(b).  
    If the question above was answered “Yes,” please
indicate whether or not:

    

    (i) more
than 50 percent of the value of the ownership interest of any beneficial owner
in the Subscriber is (or may at any time during the term of the Company be)
attributable to the Subscriber’s (direct or indirect) interest in the Company;
or

     

    
      
        	
                o  Yes

              	
                o  No

              

      

    

     

    
      
         

      

      
        –16-

        
          

        

      

      
         

      

    

     

    (ii) it
is a principal purpose of the Subscriber’s participation in the Company to
permit the Partnership to satisfy the 100 partner limitation contained in US
Treasury Regulation Section 1.7704-1(h)(3).

    

    
      	
              o  Yes

            	
              o  No

            

    

    

    If either
question above was answered “Yes,” please contact David Lubin for additional
information that will be required.

    

    8.           If
the Subscriber’s tax year ends on a date other than December 31, please indicate
such date below:

    
      	 
      	 
      
	 
      	
              (Date)

            

    

    

    E.           
Related
Parties

    

    1.       To
the best of the Subscriber’s knowledge, does the Subscriber control, or is the
Subscriber controlled by or under common control with, any other investor in the
Company?

    

    
      	
              o  Yes

            	
              o
  No

            

    

    

    If the answer above was answered
“Yes”, please identify such related investor(s) below.

    

    Name(s) of related investor(s):
_______________________________

    

    2.                                                                      Will
any other person or persons have a beneficial interest in the Securities to be
acquired hereunder (other than as a shareholder, partner, or other beneficial
owner of equity interest in the Subscriber)?

    

    
      	
              o  Yes

            	
              o
  No

            

    

    

    If either question above was answered
“Yes”, please contact David Lubin for additional information that will be
required.

    
      
         

      

      
        –17-

        
          

        

      

      
         

      

    

    

    The
Subscriber understands that the foregoing information will be relied upon by the
Company for the purpose of determining the eligibility of the Subscriber to
purchase the Securities. The Subscriber agrees to notify the Company immediately
if any representation or warranty contained in this Agreement, including this
Investor Questionnaire, becomes untrue at any time. The Subscriber agrees to
provide, if requested, any additional information that may reasonably be
required to substantiate the Subscriber’s status as an accredited investor or to
otherwise determine the eligibility of the Subscriber to purchase the
Securities. The Subscriber agrees to indemnify and hold harmless the Company and
each officer, director, shareholder, agent and representative of the Company and
their respective affiliates and successors and assigns from and against any
loss, damage or liability due to or arising out of a breach of any
representation, warranty or agreement of the Subscriber contained
herein.

    

    
      
        
          
            
              	 
      	
                      INDIVIDUAL:

                    
	 
      	 
      
	 
      	 
      
	 
      	
                      (Signature)

                    
	 
      	 
      
	 
      	 
      
	 
      	
                      (Print
      Name)

                    
	 
      	 
      
	 
      	
                      PARTNERSHIP,
      CORPORATION, TRUST,

                      CUSTODIAL
      ACCOUNT, OTHER:

                    
	 
      	 
      
	 
      	 
      
	 
      	
                      (Name
      of Entity)

                    
	 
      	 
      
	 
      	
                      By:

                    	 
      
	 	 	      
                      (Signature)

                    
	 
      	 
      
	 
      	
                      (Print
      Name and
Title)

                    

            

          

        

      

    

    
      
         

      

      
        –18-

        
          

        

      

      
         

      

    

    Annex 1

    

    DEFINITION
OF “INVESTMENTS”

    

    The term
“investments” means:

    

    
      	
              1)

            	
              Securities,
      other than securities of an issuer that controls, is controlled by, or is
      under common control with, the Subscriber that owns such securities,
      unless the issuer of such securities
is:

            

    

    

    
      	
               
      

            	
              (i)

            	
              An
      investment company or a company that would be an investment company but
      for the exclusions or exemptions provided by the Investment Company Act,
      or a commodity pool; or

            

    

    

    
      	
               
      

            	
              (ii)

            	
              a
      Public Company (as defined below);

            

    

    

    
      	
               
      

            	
              (iii)

            	
              A
      company with shareholders’ equity of not less than $50 million (determined
      in accordance with generally accepted accounting principles) as reflected
      on the company’s most recent financial statements, provided that such
      financial statements present the information as of a date within 16 months
      preceding the date on which the Subscriber acquires
      Securities;

            

    

    

    
      	
              2)

            	
              Real
      estate held for investment
purposes;

            

    

    

    
      	
              3)

            	
              Commodity
      Shares (as defined below) held for investment
  purposes;

            

    

    

    
      	
              4)

            	
              Physical
      Commodities (as defined below) held for investment
    purposes;

            

    

    

    
      	
              5)

            	
              To
      the extent not securities, Financial Contracts (as defined below) entered
      into for investment purposes;

            

    

    

    
      	
              6)

            	
              In
      the case of a Subscriber that is a company that would be an investment
      company but for the exclusions provided by Section 3(c)(1) or 3(c)(7) of
      the Investment Company Act, or a commodity pool, any amounts payable to
      such Subscriber pursuant to a firm agreement or similar binding commitment
      pursuant to which a person has agreed to acquire an interest in, or make
      capital contributions to, the Subscriber upon the demand of the
      Subscriber; and

            

    

    

    
      	
              7)

            	
              Cash
      and cash equivalents held for investment
  purposes.

            

    

    

    Real
Estate that is used by the owner or a Related Person (as defined below) of the
owner for personal purposes, or as a place of business, or in connection with
the conduct of the trade or business of such owner or a Related Person of the
owner, will NOT be considered Real Estate held for investment purposes, provided
that real estate owned by an Subscriber who is engaged primarily in the business
of investing, trading or developing real estate in connection with such business
may be deemed to be held for investment purposes. However, residential real
estate will not be deemed to be used for personal purposes if deductions with
respect to such real estate are not disallowed by section 280A of the Internal
Revenue Code of 1986, as amended.

    

    A
Commodity Interest or Physical Commodity owned, or a Financial Contract entered
into, by the Subscriber who is engaged primarily in the business of investing,
reinvesting, or trading in Commodity Shares, Physical Commodities or Financial
Contracts in connection with such business may be deemed to be held for
investment purposes.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    “Commodity
Shares” means commodity futures contracts, options on commodity futures
contracts, and options on physical commodities traded on or subject to the rules
of:

    

    
      	
               
      

            	
              (i)

            	
              Any
      contract market designated for trading such transactions under the
      Commodity Exchange Act and the rules thereunder;
  or

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Any
      board of trade or exchange outside the United States, as contemplated in
      Part 30 of the rules under the Commodity Exchange
  Act.

            

    

    

    “Public
Company” means a company that:

    

    
      	
               
      

            	
              (i)

            	
              files
      reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of
      1934, as amended; or

            

    

    

    
      	
               
      

            	
              (ii)

            	
              has
      a class of securities that are listed on a Designated Offshore Securities
      Market, as defined by Regulation S of the Securities
  Act.

            

    

    

    “Financial
Contract” means any arrangement that:

    

    
      	
               
      

            	
              (i)

            	
              takes
      the form of an individually negotiated contract, agreement, or option to
      buy, sell, lend, swap, or repurchase, or other similar individually
      negotiated transaction commonly entered into by participants in the
      financial markets;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              is
      in respect of securities, commodities, currencies, interest or other
      rates, other measures of value, or any other financial or economic
      interest similar in purpose or function to any of the foregoing;
      and

            

    

    

    
      	
               
      

            	
              (iii)

            	
              is
      entered into in response to a request from a counter party for a
      quotation, or is otherwise entered into and structured to accommodate the
      objectives of the counterparty to such
  arrangement.

            

    

    

    “Physical
Commodities” means any physical commodity with respect to which a Commodity
Interest is traded on a market specified in the definition of Commodity Shares
above.

    

    “Related
Person” means a person who is related to the Subscriber as a sibling, spouse or
former spouse, or is a direct lineal descendant or ancestor by birth or adoption
of the Subscriber, or is a spouse of such descendant or ancestor, provided that,
in the case of a Family Company, a Related Person includes any owner of the
Family Company and any person who is a Related Person of such an owner. “Family
Company” means a company that is owned directly or indirectly by or for two or
more natural persons who are related as siblings or spouse (including former
spouses), or direct lineal descendants by birth or adoption, spouses of such
persons, the estates of such persons, or foundations, charitable organizations
or trusts established for the benefit of such persons.

    

    For
purposes of determining the amount of investments owned by a company, there may
be included investments owned by majority-owned subsidiaries of the company and
investments owned by a company (“Parent Company”) of which the company is a
majority-owned subsidiary, or by a majority-owned subsidiary of the company and
other majority-owned subsidiaries of the Parent Company.

    
      
         

      

      
        -ll–

        
          

        

      

      
         

      

    

    

    In
determining whether a natural person is a qualified purchaser, there may be
included in the amount of such person’s investments any investment held jointly
with such person’s spouse, or investments in which such person shares with such
person’s spouse a community property or similar shared ownership interest. In
determining whether spouses who are making a joint investment in the Partnership
are qualified purchasers, there may be included in the amount of each spouse’s
investments any investments owned by the other spouse (whether or not such
investments are held jointly). There shall be deducted from the amount of any
such investments any amounts specified by paragraph 2(a) of Annex 2 incurred by
such spouse.

    

    In
determining whether a natural person is a qualified purchaser, there may be
included in the amount of such person’s investments any investments held in an
individual retirement account or similar account the investments of which are
directed by and held for the benefit of such person.

    
      
         

      

      
        -lll–

        
          

        

      

      
         

      

    

    Annex 2

    

    VALUATIONS
OF INVESTMENTS

     

    The
general rule for determining the value of investments in order to ascertain
whether a person is a qualified purchaser is that the value of the aggregate
amount of investments owned and invested on a discretionary basis by such person
shall be their fair market value on the most recent practicable date or their
cost. This general rule is subject to the following provisos:

    

    
      	
              1)

            	
              In
      the case of Commodity Shares, the amount of investments shall be the value
      of the initial margin or option premium deposited in connection with such
      Commodity Shares; and

            

    

    

    
      	
              2)

            	
              In
      each case, there shall be deducted from the amount of investments owned by
      such person the following amounts:

            

    

    

    
      	
               
      

            	
              (i)

            	
              The
      amount of any outstanding indebtedness incurred to acquire the investments
      owned by such person.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              A
      Family Company, in addition to the amounts specified in paragraph (a)
      above, shall have deducted from the value of such Family Company’s
      investments any outstanding indebtedness incurred by an owner of the
      Family Company to acquire such
investments.

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    Exhibit
A

    

    THE
SALE AND ISSUANCE OF THE SECURITIES REPRESENTED BY THIS NOTE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE
SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THESE SECURITIES, INCLUDING
THE SHARES OF STOCK ISSUABLE UPON CONVERSION OF THIS NOTE, HAVE BEEN ACQUIRED
FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE DISTRIBUTION
THEREOF AND MAY NOT BE OFFERED, SOLD, ASSIGNED, TRANSFERRED OR OTHERWISE
DISPOSED OF UNLESS (I) A REGISTRATION STATEMENT UNDER THE ACT IS IN EFFECT AS TO
THESE SECURITIES AND SUCH DISPOSITION IS IN COMPLIANCE WITH APPLICABLE
SECURITIES LAW OF ANY STATE OR OTHER JURISDICTION OR (II) THERE IS AN OPINION OF
COUNSEL OR OTHER EVIDENCE, IN EITHER CASE, SATISFACTORY TO THE COMPANY, THAT AN
EXEMPTION THEREFROM IS AVAILABLE AND THAT SUCH DISPOSITION IS IN COMPLIANCE WITH
APPLICABLE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION.

    

    NUGEN
HOLDINGS, INC.

    

    CONVERTIBLE
PROMISSORY NOTE

    

    
      	
              Principal
      Amount: $ __________

            	
              Issue
      Date: October __, 2010

            

    

    

     

    FOR VALUE
RECEIVED, NUGEN HOLDINGS,
INC., a Delaware corporation (together with its successors and assigns
(the “Borrower”), hereby promises to pay to ______________________ (the
“Holder”) the principal sum of _________ Thousand Dollars ($_______.00), with
interest accruing thereon, on the date which is one (1) year from the date
hereof (the “Maturity Date”), if not sooner paid or converted as provided
herein.

     

    This Note
(this “Note”) is one of a series of Convertible Promissory Notes issued by the
Borrower in the aggregate principal amount of up to Three Hundred Thousand
Dollars ($300,000) (the “Promissory Notes”) in a transaction exempt from the
registration requirements of the Securities Act of 1933, as amended. Said
offering is pursuant to the terms of a subscription agreement between the
Borrower and the holders of the Promissory Notes (the “Subscription Agreement”),
and shall be governed by the terms of such Subscription
Agreement.  The Promissory Notes rank equally and ratably without
priority over one another.  No conversion or payment shall be made
hereunder unless such conversion or payment, as the case may be, is made with
respect to the other Promissory Notes in an amount which bears the same ratio to
the then unpaid principal amount of this Note to the other Promissory
Notes.

    

    ARTICLE
I

    GENERAL
PROVISIONS

     

    1.1           Interest.   Interest
payable on this Note shall accrue at the annual rate of three percent (3%)
per annum and shall be payable on the Maturity Date (as defined below),
accelerated or otherwise, when the principal and accrued but unpaid interest
shall be due and payable, or sooner as described below.  The Borrower
shall have the right to pay the accrued interest in cash or in additional shares
of common stock of the Borrower as provided below.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    1.2          Prepayment.  Provided
that an Event of Default, nor an event which with the passage of time or the
giving of notice could become an Event of Default has not occurred, the Borrower
may, upon not less than three (3) business days prior notice prepay all or a
portion of the principal and accrued interest thereon.  Any prepayment
may be in whole or in part at any time and from time to time without prepayment
charge or penalty.

    

    ARTICLE
II

    CONVERSION
RIGHTS

    

    At any
time prior to the Maturity Date, the Borrower shall have the right to convert
the principal and any interest due under this Note into shares of common stock
of the Borrower (“Common Stock”) as set forth below.

     

    2.1.       
      Conversion into Common
Stock.

    

    (a)          The
outstanding principal hereunder plus all interest accrued thereon may, at the
Borrower’s option, be converted on or prior to the Maturity Date, into fully
paid and non-assessable shares of Common Stock at a conversion ratio which is
based upon eighteen cents ($.18) (the “Conversion Price”). Within fifteen (15)
days upon delivery to the Borrower of a notice stating the number of shares of
Common Stock for the portion of the Note converted in accordance with the
foregoing, the Borrower shall issue to the Holder a stock certificate
representing the Common Stock.

    

    (b)         The
number and kind of shares or other securities to be issued upon conversion
determined pursuant to Section 2.1(a), shall be subject to adjustment from time
to time upon the happening of certain events while this conversion right remains
outstanding, as follows:

    

    A.           Merger, Sale of Assets,
etc.  If (A) the Borrower effects any merger or consolidation
of the Borrower with or into another entity, (B) the Borrower effects any sale
of all or substantially all of its assets in one or a series of related
transactions,  (C) any tender offer or exchange offer (whether by the
Borrower or another entity) is completed pursuant to which holders of Common
Stock are permitted to tender or exchange their shares for other securities,
cash or property, (D) the Borrower consummates a stock purchase agreement or
other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with one or more persons or
entities whereby such other persons or entities acquire more than the 50% of the
outstanding shares of Common Stock (not including any shares of Common Stock
held by such other persons or entities making or party to, or associated or
affiliated with the other persons or entities making or party to, such stock
purchase agreement or other business combination), (E) any "person" or "group"
(as these terms are used for purposes of Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934 (the “Exchange Act”)) is or shall become the
"beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, of 50% of the aggregate Common Stock of the Borrower, or (F) the
Borrower effects any reclassification of the Common Stock or any compulsory
share exchange pursuant to which the Common Stock is effectively converted into
or exchanged for other securities, cash or property (in any such case, a
"Fundamental  Transaction"), this Note, as to the unpaid principal
portion thereof, shall thereafter be deemed to evidence the right to convert
into such number and kind of shares or other securities and property as would
have been issuable or distributable on account of such Fundamental Transaction,
upon or with respect to the securities subject to the conversion right
immediately prior to such Fundamental Transaction.  The foregoing
provision shall similarly apply to successive Fundamental Transactions of a
similar nature by any such successor or purchaser. Without limiting the
generality of the foregoing, the anti-dilution provisions of this Section shall
apply to such securities of such successor or purchaser after any such
Fundamental Transaction.

    

    B.           Reclassification,
etc.  If the Borrower at any time shall, by reclassification or
otherwise, change the Common Stock into the same or a different number of
securities of any class or classes that may be issued or outstanding, this Note,
as to the unpaid principal portion thereof and accrued interest thereon, shall
thereafter be deemed to evidence the right to purchase an adjusted number of
such securities and kind of securities as would have been issuable as the result
of such change with respect to the Common Stock immediately prior to such
reclassification or other change.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    C.           Stock Splits, Combinations
and Dividends.  If the shares of Common Stock are subdivided or
combined into a greater or smaller number of shares of Common Stock, or if a
dividend is paid on the Common Stock in shares of Common Stock, the Conversion
Price shall be proportionately reduced in case of subdivision of shares or stock
dividend or proportionately increased in the case of combination of shares, in
each such case by the ratio which the total number of shares of Common Stock
outstanding immediately after such event bears to the total number of shares of
Common Stock outstanding immediately prior to such event.

    

    (c)          Upon
the conversion of this Note pursuant to this Section, no fractional shares or
scrip representing fractional shares shall be issued.  With respect to
any fraction of a share called for upon the conversion of this Note or any
portion hereof, a cash amount equal to such fraction shall be paid to the
Holder.

     

     (d)        Borrower
will reserve from its authorized and unissued Common Stock not less than an
amount of Common Stock equal to 100% of the amount of shares of Common Stock
issuable upon the full conversion of this Note.  Borrower represents
that upon issuance, such shares will be duly and validly issued, fully paid and
non-assessable.  Borrower agrees that its issuance of this Note shall
constitute full authority to its officers, agents, and transfer agents who are
charged with the duty of executing and issuing stock certificates to execute and
issue the necessary certificates for shares of Common Stock upon the conversion
of this Note.

    

    2.2          Partial
Conversion.   If the Borrower elects to convert a portion of
this Note pursuant to the terms hereof, the number of shares of Common Stock
shall be proportionate to the amount converted, including accrued interest, at
such time. Upon partial conversion of this Note, a new Note containing the same
date and provisions of this Note shall, at the request of the Holder, be issued
by the Borrower to the Holder for the principal balance of this Note and
interest which shall not have been converted or paid.

     

    ARTICLE
III

    REPRESENTATIONS
AND WARRANTIES

    

    3.1          Representations and
Warranties.  The Borrower hereby represents and warrants to the
Holder that:

     

    (a) The
execution and delivery of this Note and the issuance of the Common Stock in
accordance with the terms hereof shall be exempt from the registration
requirements of the Securities Act, as amended; and

     

    (b) The
issuance of this Note is duly authorized. Upon conversion in accordance with the
terms of this Note, the shares of Common Stock, when issued, will be validly
issued, fully paid and non-assessable, free from all taxes, liens, claims,
pledges, mortgages, restrictions, obligations, security interests and
encumbrances of any kind, nature and description. The Company has reserved from
its duly authorized capital stock the appropriate number of shares of Common
Stock for issuance upon conversion of this Note as required by the terms of this
Note

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    ARTICLE
IV

    EVENT
OF DEFAULT

    

    The
occurrence of any of the following events of default ("Event of Default") shall,
at the option of the Holder hereof, make all sums of principal and interest then
remaining unpaid hereon and all other amounts payable under all the Notes
immediately due and payable, upon demand, without presentment, or grace period,
all of which hereby are expressly waived, except as set forth
below:

    

    4.1           Failure to Pay
Principal.  The Borrower fails to pay any unpaid principal
under this Note on the Maturity Date, and such failure continues for ten
business days.

    

    4.2           Liquidation.   Any
dissolution, liquidation or winding up of Borrower or any substantial portion of
its business.

    

    4.3           Cessation of
Operations.   Any cessation of operations by Borrower or
Borrower admits it is otherwise generally unable to pay its debts as such debts
become due.

     

    4.4           Receiver or
Trustee.  The Borrower shall make an assignment for the benefit
of creditors, or apply for or consent to the appointment of a receiver or
trustee for it or for a substantial part of its property or business; or such a
receiver or trustee shall otherwise be appointed.

    

    4.5           Bankruptcy.  Bankruptcy,
insolvency, reorganization or liquidation proceedings or other proceedings or
relief under any bankruptcy law or any law, or the issuance of any notice in
relation to such event, for the relief of debtors shall be instituted by or
against the Borrower.

     

    4.6           Representations and
Warranties. Any representation, warranty, certificate, or other statement
(financial or otherwise) made or furnished by or on behalf of the Borrower to
the Holder included in this Note or in connection therewith, or as an inducement
to the Holder to enter into this Note, shall be false, incorrect, incomplete or
misleading in any material respect when made or furnished or becomes false
thereafter.

    

    ARTICLE
V

    MISCELLANEOUS

    

    5.1           Notices.  All
notices, demands, requests, consents, approvals, and other communications
required or permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be (i) personally served, (ii) deposited in the mail,
registered or certified, return receipt requested, postage prepaid, (iii)
delivered by reputable air courier service with charges prepaid, or (iv)
transmitted by hand delivery, telegram, or facsimile, addressed as set forth
below or to such other address as such party shall have specified most recently
by written notice.  Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or delivery by facsimile, with accurate confirmation generated by the
transmitting facsimile machine, at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered
other than on a business day during normal business hours where such notice is
to be received) or (b) on the second business day following the date of mailing
by express courier service, fully prepaid, addressed to such address, or upon
actual receipt of such mailing, whichever shall first occur. The addresses for
such communications shall be: (i) if to the Company, to: NuGen Holdings, Inc.,
44645 Guildford Drive, Suite 201, Ashburn, VA 21047, and (ii) if to the Holder,
to: __________.

     

    5.2       Amendment
Provision.  The term “Note” and all reference thereto, as used
throughout this instrument, shall mean this instrument as originally executed,
or if later amended or supplemented, then as so amended or
supplemented.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    5.3           Assignability.  This
Note shall be binding upon the Borrower and its successors and assigns, and
shall inure to the benefit of the Holder and its successors and
assigns.  

    

    5.4           Modification of
Note.  This Note may be modified only with the written consent
of the Holder and the Borrower.

    

    5.5           Governing
Law.  This Note shall be governed by and construed in
accordance with the laws of the State of New York without regard to conflicts of
laws principles that would result in the application of the substantive laws of
another jurisdiction.  Any action brought by either party against the
other concerning the transactions contemplated by this Agreement must be brought
only in the courts located in the State of New York.  Both parties
agree to submit to the jurisdiction of such courts.  In the event that
any provision of this Note is invalid or unenforceable under any applicable
statute or rule of law, then such provision shall be deemed inoperative to the
extent that it may conflict therewith and shall be deemed modified to conform
with such statute or rule of law. Any such provision which may prove invalid or
unenforceable under any law shall not affect the validity or unenforceability of
any other provision of this Note.

    

    5.6           Headings.         The
section headings herein are for convenience only and shall not affect the
construction hereof. This Note constitutes
the entire agreement and understanding between the parties hereto with respect
to the subject matter hereof and shall supersede any prior agreements and
understandings between the parties hereto with respect to such subject
matter. The
parties agree that this Note shall be deemed to have been jointly and equally
drafted by them, and that the provisions of this Note therefore should not be
construed against a party or parties on the grounds that such party or parties
drafted or was more responsible for the drafting of any such
provision(s). 

    

    5.7           Non-Business
Days.   Whenever any payment or any action to be made
shall be due on a Saturday, Sunday or a public holiday under the laws of the
State of New York, such payment may be due or action shall be required on the
next succeeding business day and, for such payment, such next succeeding day
shall be included in the calculation of the amount of accrued interest payable
on such date.

    

    5.8               Shareholder
Status.  The Holder shall not have rights as a stockholder of
the Borrower with respect to unconverted portions of this
Note.  However, the Holder will have the rights of a stockholder of
the Borrower with respect to the Common Stock to be received after delivery by
the Borrower of the notice provided for in Section 2.1(a).

    

    IN
WITNESS WHEREOF, this Note has been executed and delivered as a sealed
instrument on the date first above written by the duly authorized representative
of the Company.

    

    
      
        
          	
                  NUGEN
      HOLDINGS, INC.

                
	 
      	 
      
	
                  By:

                	 
      
	 
      	
                  Name:

                
	 
      	
                  Title:

                

        

      

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    Schedule

    

    
      
        
          
            	
                    Subscriber's Name

                  	 	
                    Principal Amount

                  	 
	 
      	 	 	 
	
                    Anthony
      J. Padon

                  	 	$	50,000	 
	
                    Stephen
      and Kathy Garcia Najarian

                  	 	$	20,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]