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Exhibit 10.1  

 
 

FIRST OTTAWA BANCSHARES, INC.
  2002 STOCK INCENTIVE PLAN    
    

Section 1.    Purpose of the Plan.  

        The FIRST OTTAWA BANCSHARES, INC. 2002 STOCK INCENTIVE PLAN (the
"Plan") is intended to provide a means whereby directors, officers and employees of FIRST OTTAWA
BANCSHARES, INC., a Delaware corporation (the "Company"), and the Related Corporations may sustain a sense of
proprietorship and personal involvement in the continued development and financial success of the Company and the Related Corporations, and to encourage them to remain with and devote their best
efforts to the business of the Company and the Related Corporations, thereby advancing the interests of the Company and its stockholders. Accordingly, the Company may permit certain directors,
officers and employees to acquire Shares or otherwise participate in the financial success of the Company, on the terms and conditions established herein. 

Section 2.    Definitions.  

        The following terms, when used herein and unless the context clearly requires otherwise, shall have the following meanings (such meanings to be equally applicable
to both the singular and plural forms of the terms defined): 

        (a)   "Board" means the board of directors of the Company. 

        (b)   "Cause" means the commission of fraud, the misappropriation of or intentional material damage to the property or business
of the Company, the material failure to fulfill the duties and responsibilities of
a regular position and/or comply with the Company's policies, rules or regulations, or the conviction of a felony. 

        (c)   "Change of Control" means: 

          (i)  the
consummation of the acquisition by any person (as such term is defined in Section 13(d) or 14(d)(2) of the Exchange Act) of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of fifty percent (50%) or more of the combined voting power of the then outstanding voting securities of the Company other
than through the receipt of Shares pursuant to the Plan; 

         (ii)  the
individuals who, as of the Effective Date, are members of the Board cease for any reason to constitute a majority of the Board, unless the election, or nomination
for election by the stockholders of the Company, of any new director was approved by a vote of a majority of the Board, and such new director shall, for purposes of the Plan, be considered as a member
of the Board; or 

        (iii)  consummation
by the Company of: (A) a merger or consolidation if those who are stockholders of the Company, immediately before such merger or consolidation, do
not, as a result of such merger or consolidation, own, directly or indirectly, more than sixty-seven percent (67%) of the combined voting power of the then outstanding voting securities of the entity
resulting from such merger or consolidation in substantially the same proportion as their ownership of the combined voting power of the voting securities of the Company outstanding immediately before
such merger or consolidation; or (B) a complete liquidation or dissolution or an agreement for the sale or other disposition of all or substantially all of the assets of the Company. 

Notwithstanding
the foregoing, a Change in Control shall not be deemed to occur solely because fifty percent (50%) or more of the combined voting power of the then outstanding securities of the
Company are acquired by: (x) a trustee or other fiduciary holding securities under one or more employee benefit plans maintained for employees of the Company or a Related Corporation; or 

 

(y) any
corporation which, immediately prior to such acquisition, is owned directly or indirectly by the stockholders of the Company in substantially the same proportion as their ownership of
stock of the Company immediately prior to such acquisition. 

        (d)   "Code" means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations promulgated
thereunder. 

        (e)   "Committee" means a committee appointed by the Board to administer the Plan, or if no Committee is appointed, the Board.
Each member of the Committee shall be (i) a "non-employee director" for purposes of Section 16 and Rule 16b-3 of the Exchange Act, and (ii) an
"outside director" for purposes of Section 162(m) of the Code, unless the Board has fewer than two (2) such outside directors. 

        (f)    "Disability" means a physical or mental disability (within the meaning of Section 22(e)(3) of the Code) which
impairs the individual's ability to substantially perform his or her current duties for a period of at least twelve (12) consecutive months, as determined by the Committee. 

        (g)   "Effective Date" means March 20, 2002, which was the date that the Plan was adopted by the Board. 

        (h)   "Exchange Act" means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations
promulgated thereunder. 

        (i)    "Fair Market Value" means as of any date, the value of a share of the Company's common stock determined as follows: 

          (i)  if
such common stock is then quoted on the NASDAQ National Market, its last reported sale price on the NASDAQ National Market on such date or, if no such reported sale
takes place on such date, the average of the closing bid and asked prices; 

         (ii)  if
such common stock is publicly traded and is then listed on a national securities exchange, the last reported sale price on such date or, if no such reported sale
takes place on such date, the average of the closing bid and asked prices on the principal national securities exchange on which the common stock is listed or admitted to trading; 

        (iii)  if
such common stock is publicly traded but is not quoted on the NASDAQ National Market nor listed or admitted to trading on a national securities exchange, the
average of the closing bid and asked prices on such date, as reported by The Wall Street Journal, for the over-the-counter market; or 

        (iv)  if
none of the foregoing is applicable, by the Board of Directors of the Company in good faith. 

        (j)    "Incentive Stock Option" means an award under the Plan that satisfies the general requirements of Section 422 of
the Code, namely: (i) grantees must be employees; (ii) the exercise price may not be less than the fair market value of the underlying Shares at the date of grant; (iii) no more
than $100,000 worth of Shares may become exercisable in any year; (iv) the maximum duration of an award may be ten (10) years; (v) awards must be exercised within three
(3) months after termination of employment, except in the event of Disability or death; and (vi) Shares received upon exercise must be retained for the greater of two (2) years
from the date of grant or one (1) year from the date of exercise. 

        (k)   "Nonqualified Option" means an option award under the Plan that is not an Incentive Stock Option. 

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        (l)    "Related Corporation" means any corporation, bank or other entity which would be a parent or subsidiary corporation with
respect to the Company as defined in Section 424(e) or (f), respectively, of the Code. 

        (m)  "Retirement" means Termination of Service, other than for Cause, after attainment of age sixty-five (65). 

        (n)   "Restricted Stock" means an award of Shares under the Plan that are restricted as to transfer and subject to forfeiture. 

        (o)   "Rule 16b-3" means Rule 16b-3 promulgated under the Exchange Act, as amended from
time to time. 

        (p)   "Shares" means shares of the common stock, $1.00 par value per share, of the Company. 

        (q)   "Stock Appreciation Rights" means rights entitling the grantee to receive the appreciation in the market value of a
stated number of Shares. 

        (r)   "Securities Act" means the Securities Act of 1933, as amended from time to time, and the rules and regulations
promulgated thereunder. 

        (s)   "Termination of Service" means the termination of a person's status as a director, officer or employee of the Company or
a Related Corporation. 

Section 3.    Administration of the Plan.  

        The Plan shall be administered by the Board, or a committee appointed by the Board. The Board, or the Committee, as the case may be, shall have sole authority to: 

        (a)   select
the directors, officers and employees to whom awards shall be granted under the Plan; 

        (b)   establish
the amount and conditions of each such award; 

        (c)   prescribe
any legend to be affixed to certificates representing such awards; 

        (d)   interpret
the Plan; 

        (e)   correct
any defect, supply any omission, or reconcile any inconsistency in the Plan, any award or any agreement related thereto; and 

        (f)    adopt
such rules, regulations, forms and agreements, not inconsistent with the provisions of the Plan, as it may deem advisable to carry out the Plan. 

All
decisions made by the Board, or the Committee, as the case may be, in administering the Plan shall be final. 

Section 4.    Shares Subject to the Plan.  

        The aggregate number of Shares that may be obtained by directors, officers, employees, consultants and advisors under the Plan shall be 150,000 Shares. Each
person is eligible to receive awards with respect to an aggregate maximum of 100,000 Shares over the term of the Plan. Any Shares that remain unissued at the termination of the Plan shall cease to be
subject to the Plan, but until termination of the Plan, the Company shall at all times make available sufficient Shares to meet the requirements of the Plan. 

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Section 5.    Stock Options.  

        (a)    Type of Options.    The Board may issue options that constitute Incentive Stock Options to officers and
employees and Nonqualified Options to directors, officers and employees of the Company and the Related Corporations. The grant of each option shall be confirmed by a stock option agreement that shall
be executed by the Company and the optionee as soon as practicable after such grant. The stock option agreement shall expressly state or incorporate by reference the provisions of the Plan and state
whether the option is an Incentive Stock Option or a Nonqualified Option. 

        (b)    Terms of Options.    Except as provided in paragraphs (c) and (d) of this Section, each option
granted under the Plan shall be subject to the terms and conditions set forth by the Board in the stock option agreement including, without limitation, option price, vesting schedule and option term. 

        (c)    Additional Terms Applicable to All Options.    Each option shall be subject to the following terms and
conditions: 

        (i)    Written Notice.    An option may be exercised only by giving written notice to the Company specifying the
number of Shares to be purchased. The Committee may specify a reasonable minimum number of Shares that may be purchased on any exercise of an option; provided that the minimum number will not prevent
the option holder from exercising an option for the full number of Shares for which it is then exercisable. 

        (ii)    Method of Exercise.    Except as otherwise provided in any written option agreement, the exercise price of an
option shall be paid in full (i) in cash; (ii) in Common Stock valued at its Fair Market Value on the date of exercise, provided it has been owned by the optionee for at least six
(6) months prior to the exercise; (iii) in cash by an unaffiliated broker-dealer to whom the holder of the option has submitted an exercise notice consisting of a fully endorsed option;
(iv) by agreeing to surrender SARs then exercisable by him valued at their Fair Market Value on the date of exercise; (v) by such other medium of payment as the Committee, in its
discretion, shall authorize; or (vi) by any combination of clauses (i) through (v) above, as the optionee shall elect. In the case of payment pursuant to clauses
(ii) through (v) above, the optionee's election must be made on or prior to the date of exercise of the option and must be irrevocable. In lieu of a separate election governing each
exercise of an option, an optionee may file a blanket election that shall govern all future exercises of options until revoked by the optionee. 

        (iii)    Term of Option.    An option shall be exercisable as provided under the Plan or by the Board. 

        (iv)    Disability or Death of Optionee.    If an optionee's Termination of Service occurs due to Retirement,
Disability or death prior to exercise in full of any options, he or she, or his or her beneficiary, executor, administrator or personal representative, shall have the right to exercise the options
within a period of twelve (12) months after the date of such termination to the extent that the right was exercisable at the date of such termination as provided in the stock option agreement,
or as may otherwise be provided by the Board. 

        (v)    Transferability.    No option may be transferred, assigned or encumbered by an optionee, except by will or the
laws of descent and distribution, and during the optionee's lifetime an option may only be exercised by him or her. 

        (d)    Additional Terms Applicable to Incentive Options.    Each Incentive Option shall be subject to the following
terms and conditions: 

        (i)    Option Price.    The option price per Share shall be 100% of the fair market value of a Share on the date the
option is granted. Notwithstanding the preceding sentence, the option price per Share granted to an individual who, at the time such option is granted, owns stock possessing more than 10% of the total
combined voting power of all classes of stock of the Company (a "10%  

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 Stockholder") shall not be less than 110% of the fair market value of a Share on the date the option is granted. 

        (ii)    Term of Option.    No option may be exercised more than ten (10) years after the date of grant. No
option granted to a 10% Stockholder may be exercised more than five (5) years after the date of grant. Notwithstanding any other provisions hereof, no option may be exercised more than three
(3) months after the optionee terminates employment with the Company, except in the event of death or Disability, in which case the option may be exercised as provided in subparagraph
(c)(iv) of this Section. 

        (iii)    Annual Exercise Limit.    The aggregate fair market value of Shares which first become exercisable during any
calendar year shall not exceed $100,000. For purposes of the preceding sentence, the fair market value of each Share shall be determined on the date the option with respect to such Share is granted.
To the extent the $100,000 limitation is exceeded, the excess shall be deemed Non-Qualified Options. 

        (iv)    Notice of Disqualifying Dispositions.    If an optionee sells or otherwise disposes of any Shares acquired
pursuant to the exercise of an Incentive Option on or before the later of (1) the date two (2) years after the date of grant, and (2) the date one year after the exercise of the
Incentive Option (in either case, a "Disqualifying Disposition"), the optionee must immediately notify the Company in writing of such disposition. The optionee may be subject to income tax withholding
by the Company on the compensation income recognized by the optionee from the Disqualifying Disposition. 

Section 6.    Restricted Stock Awards.  

        (a)    Grants.    An award of Restricted Stock under the Plan ("RSAs")
shall be evidenced by a written agreement in such form and consistent with the Plan as the Board shall approve from time to time. A grantee can accept an RSA only by signing and delivering to the
Company a purchase agreement in such form as the Board shall establish, and full payment of the purchase price, within thirty (30) days from the date the RSA agreement was delivered to the
grantee. If the grantee does not accept the RSA in this manner within thirty (30) days, then the offer of the RSA will terminate, unless the Committee determines otherwise. 

        (b)    Restriction Period.    RSAs awarded under the Plan shall be subject to such terms, conditions and restrictions
as shall be determined by the Board at the time of grant, including, without limitation: (i) prohibitions against transfer; (ii) substantial risks of forfeiture; (iii) attainment
of performance objectives; and (iv) repurchase by the Company or right of first refusal for such period or periods as shall be determined by the Board. The Board shall have the power to permit,
in its discretion, an acceleration of the expiration of the applicable restriction period with respect to any part or all of the RSAs awarded to a grantee. 

        (c)    Restrictions Upon Transfer.    RSAs awarded, and the right to vote underlying Shares and to receive dividends
thereon, may not be sold, assigned, transferred, exchanged, pledged, hypothecated or
otherwise encumbered during the restriction period applicable to such Shares, except: (i) by will or the laws of descent and distribution; (ii) by gifting for the benefit of descendants
for estate planning purposes; or (iii) pursuant to a certified domestic relations order. Subject to the foregoing, and except as otherwise provided in the Plan, the grantee shall have all the
other rights of a stockholder including, without limitation, the right to receive dividends and the right to vote such Shares. 

        (d)    Lapse of Restrictions.    Each restricted stock agreement shall specify the terms and conditions upon which any
restrictions upon Shares awarded under the Plan shall lapse, as determined by the Board. Upon the lapse of such restrictions, Shares, free of the foregoing restrictive legend, shall be issued to the
grantee or his or her legal representative. 

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        (e)    Termination Prior to Lapse of Restrictions.    In the event of a grantee's Termination of Service prior to the
lapse of restrictions applicable to any RSAs awarded to such grantee, all Shares as to which there still remain restrictions shall be forfeited by such grantee without payment of any consideration to
the grantee, and neither the grantee nor any successors, heirs, assigns, or personal representatives of such grantee shall thereafter have any further rights or interest in such Shares or
certificates. 

Section 7.    Stock Appreciation Rights.  

        (a)    Grants.    An award of Stock Appreciation Rights under the Plan
("SARs") may be granted separately or in tandem with or by reference to an option granted prior to or simultaneously with the grant of such rights, to
such eligible directors, officers, employees, consultants and advisors as may be selected by the Board, and shall be evidenced by a written agreement in such form and consistent with the Plan as the
Board shall approve from time to time. 

        (b)    Terms of Grant.    SARs may be granted in tandem with or with reference to a related option, in which event the
grantee may elect to exercise either the option or the SAR, but not both, as to the same Share subject to the option and the SAR, or the SAR may be granted independently of a related option. SARs
shall not be transferable, except: (i) by will or the laws of descent and distribution; (ii) by gifting for the benefit of descendants for estate planning purposes; or
(iii) pursuant to a certified domestic relations order. 

        (c)    Payment on Exercise.    Upon exercise of a SAR, the grantee shall be paid the excess of the then fair market
value of the number of Shares to which the SAR relates over the fair market value of such
number of Shares at the date of grant of the SAR or of the related option, as the case may be. Such excess shall be paid in cash or in such other form as the Board shall determine. 

Section 8.    Amendment or Termination of the Plan  

        The Board may amend, suspend or terminate the Plan or any portion thereof at any time, but (except as provided in  Section 12 below)
no amendment shall be made without approval of the stockholders of the Company which shall: (a) materially increase the
aggregate number of Shares with respect to which Incentive Stock Option awards may be made under the Plan; or (b) change the class of persons eligible to receive Incentive Stock Option awards
under the Plan; provided, however, that no amendment, suspension or termination shall impair the rights of any individual, without his or her consent,
in any award theretofore made pursuant to the Plan. 

Section 9.    Term of Plan.  

        The Plan shall be effective upon the date of its adoption by the Board; provided that Incentive Stock Options may be granted only if the Plan is approved by the
stockholders within twelve (12) months before or after the date of adoption by the Board. Unless sooner terminated under the provisions of  Section 8 above, options, RSAs and SARs shall not be
granted under the Plan after the expiration of ten (10) years from the Effective
Date. However, awards may be exercisable after the end of the term of the Plan. 

Section 10.    Rights as Stockholder.  

        Upon delivery of any Share to a director, officer or employee, such person shall have all of the rights of a stockholder of the Company with respect to such
Share, including the right to vote such Share and to receive all dividends or other distributions paid with respect to such Share. 

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Section 11.    Merger or Consolidation.  

        In the event the Company is merged or consolidated with another corporation and the Company is not the surviving corporation, the surviving corporation may agree
to exchange options and SARs issued under this Plan for options and SARs (with the same aggregate option price) to acquire and participate
in that number of shares in the surviving corporation that have a fair market value equal to the fair market value (determined on the date of such merger or consolidation) of Shares that the grantee
is entitled to acquire and participate in under this Plan on the date of such merger or consolidation. In the event of a Change of Control, options and SARs shall become immediately and fully
exercisable, and all restrictions on RSAs shall lapse. 

Section 12.    Changes in Capital and Corporate Structure.  

        The aggregate number of Shares and interests awarded and which may be awarded under the Plan shall be adjusted to reflect a change in the outstanding Shares of
the Company by reason of a recapitalization, reclassification, reorganization, stock split, reverse stock split, combination of shares, stock dividend or similar transaction. The adjustment shall be
made in an equitable manner which will cause the awards and the economic benefits thereof to remain unchanged as a result of the applicable transaction. 

Section 13.    Assumption of Awards by the Company.  

        The Company, from time to time, may substitute or assume outstanding awards granted by it or another company, whether in connection with an acquisition of another
company or otherwise, by either (a) granting an Award under the Plan in substitution of such other company's award, or (b) assuming such award as if it had been granted under the Plan if
the terms of such assumed award could be applied to an Award granted under the Plan. Such substitution or assumption shall be permissible if the holder of the substituted or assumed award would have
been eligible to be granted an Award under the Plan if the other company had applied the rules of the Plan to such grant. In the event the Company assumes an award granted by another company, the
terms and conditions of such award shall remain unchanged (except that the exercise price and the number and nature of Shares issuable upon exercise of any such option will be adjusted appropriately
pursuant to Section 424(a) of the Code). In the event the Company elects to grant a new option rather than assuming an existing option, such new option may be granted with a similarly adjusted
exercise price. 

Section 14.    Service.  

        An individual shall be considered to be in the service of the Company or a Related Corporation as long as he or she remains a director, officer or employee of the
Company or such Related Corporation. Nothing herein shall confer on any individual the right to continued service with the Company or a Related Corporation or affect the right of the Company or such
Related Corporation to terminate such service. 

Section 15.    Withholding of Tax.  

        (a)    Generally.    To the extent the award, issuance, vesting or exercise of option, RSAs or SARs results in the
receipt of compensation by a director, officer or employee, the Company may require the director, officer or employee to pay to the Company or the grantee may authorize the Company to withhold a
portion of any cash compensation then or thereafter payable to such person, an amount, sufficient to satisfy federal, state and local withholding tax requirements prior to the delivery of any
certificate for the Shares. If an award is to be paid in cash, the payment will be net of an amount sufficient to satisfy such tax withholding obligations 

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        (b)    Stock Withholding.    To the extent a grantee incurs tax liability in connection with the exercise or vesting
of any Award that is subject to tax withholding and the grantee is obligated to pay the Company the amount required to be withheld, the Board may, in its sole discretion, allow the grantee to satisfy
the minimum withholding tax obligation by electing to have the Company withhold from the Shares to be issued that number of Shares having a Fair Market Value equal to the minimum amount required to be
withheld, determined on the date that the amount of tax to be withheld is to be determined. All elections by a grantee to have Shares withheld for this purpose shall be made in writing in a form
acceptable to the Board. 

Section 16.    Delivery and Registration of Stock.  

        The Company's obligation to deliver Shares with respect to an award shall, if the Board so requests, be conditioned upon the receipt of a representation as to the
investment intention of the individual to whom such Shares are to be delivered, in such form as the Board shall determine to be necessary or advisable to comply with the provisions of the Securities
Act or any other federal, state or local securities legislation or regulation. It may be provided that any representation requirement shall become inoperative upon a registration of the Shares or
other action eliminating the necessity of such representation under securities legislation. The Company shall not be required to deliver any Shares under the Plan prior to: (a) the admission of
such Shares to listing on any stock exchange on which Shares may then be listed, and (b) the completion of such registration or other qualification of such Shares under any state or federal
law, rule or regulation, as the Board shall determine to be necessary or advisable. The Plan is intended to comply with Rule 16b-3, if applicable. Any provision of the Plan which is
inconsistent with said rule shall, to the extent of such inconsistency, be inoperative and shall not affect the validity of the remaining provisions of the Plan. 

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Exhibit 4.3  

        THE REGISTERED HOLDER OF THIS PURCHASE OPTION BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE OPTION EXCEPT AS HEREIN
PROVIDED AND THE REGISTERED HOLDER OF THIS PURCHASE OPTION AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE THIS PURCHASE OPTION FOR A PERIOD OF TWO YEARS FOLLOWING THE EFFECTIVE
DATE (DEFINED BELOW) TO ANYONE OTHER THAN (I) EARLYBIRDCAPITAL, INC. ("EBC") OR AN UNDERWRITER OR A SELECTED DEALER IN CONNECTION WITH THE OFFERING, OR (II) A BONA FIDE OFFICER OR PARTNER OF EBC OR OF
ANY SUCH UNDERWRITER OR SELECTED DEALER.

        THIS PURCHASE OPTION IS NOT EXERCISABLE PRIOR TO THE LATER OF THE CONSUMMATION BY THE COMPANY OF A MERGER, CAPITAL STOCK EXCHANGE, ASSET ACQUISITION OR OTHER
SIMILAR BUSINESS COMBINATION ("BUSINESS COMBINATION") (AS DESCRIBED MORE FULLY IN THE COMPANY'S REGISTRATION STATEMENT (DEFINED HEREIN)
OR                        , 2004. VOID AFTER 5:00 P.M. EASTERN
TIME,                        , 2008.

 
 

UNIT PURCHASE OPTION    
    
    For the Purchase of    
    
    350,000 Units    
    
    of    
    
    MILLSTREAM ACQUISITION CORPORATION    
    

1.    Purchase Option.    

        THIS
CERTIFIES THAT, in consideration of $            per option duly paid by or on behalf
of                        ("Holder"), as registered owner of this Purchase Option, to Millstream
Acquisition Corporation ("Company"), Holder is entitled, at any time or from time to time upon the later of the consummation of a Business Combination
or                        , 2004 ("Commencement Date"),
and at or before 5:00 p.m., Eastern Time,                        , 2008 ("Expiration Date"), but not thereafter, to subscribe
for, purchase and receive, in whole or in part, up to Three Hundred Fifty
Thousand (350,000) units ("Units") of the Company, each Unit consisting of one share of common stock of the Company, par value $.0001 per share ("Common Stock"), and two warrants ("Warrant(s)")
expiring four years from the effective date ("Effective Date") of the registration statement ("Registration Statement") pursuant to which Units are offered for sale to the public ("Offering"). Each
Warrant is the same as the warrants included in the Units being registered for sale to the public by way of the Registration Statement ("Public Warrants") except that the Warrants have an exercise
price of $6.00. If the Expiration Date is a day on which banking institutions are authorized by law to close, then this Purchase Option may be exercised on the next succeeding day which is not such a
day in accordance with the terms herein. During the period ending on the Expiration Date, the Company agrees not to take any action that would terminate the Purchase Option. This Purchase Option is
initially exercisable at $9.90 per Unit so purchased; provided, however, that upon the occurrence of any of the events specified in Section 6 hereof, the rights granted by this Purchase Option,
including the exercise price per Unit and the number of Units (and shares of Common Stock and Warrants) to be received upon such exercise, shall be adjusted as therein specified. The term "Exercise
Price" shall mean the initial exercise price or the adjusted exercise price, depending on the context. 

2.    Exercise.    

        2.1    Exercise Form.    In order to exercise this Purchase Option, the exercise form attached hereto must be duly
executed and completed and delivered to the Company, together with this Purchase Option and payment of the Exercise Price for the Units being purchased payable in cash or by certified check or
official bank check. If the subscription rights represented hereby shall not be exercised at or 

 

before
5:00 p.m., Eastern time, on the Expiration Date this Purchase Option shall become and be void without further force or effect, and all rights represented hereby shall cease and expire. 

        2.2    Legend.    Each certificate for the securities purchased under this Purchase Option shall bear a legend as
follows unless such securities have been registered under the Securities Act of 1933, as amended ("Act"): 

"The
securities represented by this certificate have not been registered under the Securities Act of 1933, as amended ("Act") or applicable state law. The securities may not be offered for sale, sold
or otherwise transferred except pursuant to an effective registration statement under the Act, or pursuant to an exemption from registration under the Act and applicable state law." 

        2.3    Cashless Exercise.    

        2.3.1    Determination of Amount.    In lieu of the payment of the Exercise Price multiplied by the number of Units
for which this Purchase Option is exercisable (and in lieu of being entitled to receive Common Stock and Warrants) in the manner required by Section 2.1, the Holder shall have the right (but
not the obligation) to convert any exercisable but unexercised portion of this Purchase Option into Units ("Conversion Right") as follows: upon exercise of the Conversion Right, the Company shall
deliver to the Holder (without payment by the Holder of any of the Exercise Price in cash) that number of shares of Common Stock and Warrants comprising that number of Units equal to the quotient
obtained by dividing (x) the "Value" (as defined below) of the portion of the Purchase Option being converted by (y) the Current Market Value (as defined below). The "Value" of the
portion of the Purchase Option being converted shall equal the remainder derived from subtracting (a) (i) the Exercise Price multiplied by (ii) the number of Units underlying the portion
of this Purchase Option being converted from (b) the Current Market Value of a Unit multiplied by the number of Units underlying the portion of the Purchase Option being converted. As used
herein, the term "Current Market Value" per Unit at any date means the remainder derived from subtracting (x) the exercise price of the Warrants multiplied by
the number of shares of Common Stock issuable upon exercise of the Warrants underlying one Unit from (y) the Current Market Price of the Common Stock multiplied by the number of shares of
Common Stock underlying the Warrants and the Common Stock issuable upon exercise of one Unit. The "Current Market Price" of a share of Common Stock shall mean (i) if the Common Stock is listed
on a national securities exchange or quoted on the Nasdaq National Market, Nasdaq SmallCap Market or NASD OTC Bulletin Board (or successor such as the Bulletin Board Exchange), the last sale price of
the Common Stock in the principal trading market for the Common Stock as reported by the exchange, Nasdaq or the NASD, as the case may be; (ii) if the Common Stock is not listed on a national
securities exchange or quoted on the Nasdaq National Market, Nasdaq SmallCap Market or the NASD OTC Bulletin Board (or successor such as the Bulletin Board Exchange), but is traded in the residual
over-the-counter market, the closing bid price for the Common Stock on the last trading day preceding the date in question for which such quotations are reported by the Pink
Sheets, LLC or similar publisher of such quotations; and (iii) if the fair market value of the Common Stock cannot be determined pursuant to clause (i) or (ii) above, such price
as the Board of Directors of the Company shall determine, in good faith. 

        2.3.2    Mechanics of Cashless Exercise.    The Cashless Exercise Right may be exercised by the Holder on any business
day on or after the Commencement Date and not later than the Expiration Date by delivering the Purchase Option with a duly executed exercise form attached hereto with the cashless exercise section
completed to the Company, exercising the Cashless Exercise Right and specifying the total number of Units the Holder will purchase pursuant to such Cashless Exercise Right. 

2

 

3.    Transfer.    

        3.1    General Restrictions.    The registered Holder of this Purchase Option, by its acceptance hereof, agrees
that
it will not sell, transfer, assign, pledge or hypothecate this Purchase Option for a period of two years following the Effective Date to anyone other than (i) EBC or an underwriter or a
selected dealer in connection with the Offering, or (ii) a bona fide officer or partner of EBC or of any such underwriter or selected dealer. On and after the Effective Date, transfers to
others may be made subject to compliance with or exemptions from applicable securities laws. In order to make any permitted assignment, the Holder must deliver to the Company the assignment form
attached hereto duly executed and completed, together with the Purchase Option and payment of all transfer taxes, if any, payable in connection therewith. The Company shall within five business days
transfer this Purchase Option on the books of the Company and shall execute and deliver a new Purchase Option or Purchase Options of like tenor to the appropriate assignee(s) expressly evidencing the
right to purchase the aggregate number of Units purchasable hereunder or such portion of such number as shall be contemplated by any such assignment.

 

        3.2    Restrictions Imposed by the Act.    The securities evidenced by this Purchase Option shall not be transferred
unless and until (i) the Company has received the opinion of counsel for the Holder that the securities may be transferred pursuant to an exemption from registration under the Act and
applicable
state securities laws, the availability of which is established to the reasonable satisfaction of the Company (the Company hereby agreeing that the opinion of Graubard Miller shall be deemed
satisfactory evidence of the availability of an exemption), or (ii) a registration statement or a post-effective amendment to the Registration Statement relating to such securities
has been filed by the Company and declared effective by the Securities and Exchange Commission and compliance with applicable state securities law has been established. 

4.    New Purchase Options to be Issued.    

        4.1    Partial Exercise or Transfer.    Subject to the restrictions in Section 3 hereof, this Purchase Option
may be exercised or assigned in whole or in part. In the event of the exercise or assignment hereof in part only, upon surrender of this Purchase Option for cancellation, together with the duly
executed exercise or assignment form and funds sufficient to pay any Exercise Price and/or transfer tax, the Company shall cause to be delivered to the Holder without charge a new Purchase Option of
like tenor to this Purchase Option in the name of the Holder evidencing the right of the Holder to purchase the number of Units purchasable hereunder as to which this Purchase Option has not been
exercised or assigned. 

        4.2    Lost Certificate.    Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction
or mutilation of this Purchase Option and of reasonably satisfactory indemnification or the posting of a bond, the Company shall execute and deliver a new Purchase Option of like tenor and date. Any
such new Purchase Option executed and delivered as a result of such loss, theft, mutilation or destruction shall constitute a substitute contractual obligation on the part of the Company. 

5.    Registration Rights.    

        5.1    Demand Registration.    

        5.1.1    Grant of Right.    The Company, upon written demand ("Initial Demand Notice") of the Holder(s) of at least
51% of the Purchase Options and/or the underlying Units and/or the underlying securities ("Majority Holders"), agrees to register on one occasion, all or any portion of the Purchase Options requested
by the Majority Holders in the Initial Demand Notice and all of the securities underlying such Purchase Options, including the Common Stock, the Warrants and the Common Stock underlying the Warrants
(collectively, the "Registrable Securities"). On such occasion, the Company will file a registration statement or a post-effective amendment to the Registration Statement covering
the Registrable Securities within sixty days after receipt of the 

3

 

Initial
Demand Notice and use its best efforts to have such registration statement or post-effective amendment declared effective as soon as possible thereafter. The demand for
registration may be made at any time during a period of five years beginning on the Effective Date. The Company covenants and agrees to give written notice of its receipt of any Initial Demand Notice
by any Holder(s) to all other registered Holders of the Purchase Options and/or the Registerable Securities within ten days from the date of the receipt of any such Initial Demand Notice. 

        5.1.2    Terms.    The Company shall bear all fees and expenses attendant to registering the Registrable Securities,
including the expenses of any legal counsel selected by the Holders to represent them in connection with the sale of the Registrable Securities, but the Holders shall pay any and all underwriting
commissions. The Company agrees to use its reasonable best efforts to qualify or register the Registrable Securities in such States as are reasonably requested by the Majority Holder(s); provided,
however, that in no event shall the Company be required to register the Registrable Securities in a State in which such registration would cause (i) the Company to be obligated to qualify to do
business in such State, or would subject the Company to taxation as a foreign corporation doing business in such jurisdiction or (ii) the principal stockholders of the Company to be obligated
to escrow their shares of capital stock of the Company. The Company shall cause any registration statement or post-effective amendment filed pursuant to the demand rights granted under
Section 5.1.1 to remain effective for a period of nine consecutive months from the effective date of such registration statement or post-effective amendment. 

        5.2    "Piggy-Back" Registration.    

        5.2.1    Grant of Right.    In addition to the demand right of registration, the Holders of the Purchase Options shall
have the right for a period of seven years commencing on the Effective Date, to include the Registrable Securities as part of any other registration of securities filed by the Company (other than in
connection with a transaction contemplated by Rule 145(a) promulgated under the Act or pursuant to Form S-8); provided, however, that if, in the written opinion of the
Company's managing underwriter or underwriters, if any, for such offering, the inclusion of the Registrable Securities, when added to the securities being registered by the Company or the selling
stockholder(s), will exceed the maximum amount of the Company's securities which can be marketed (i) at a price reasonably related to their then current market value, and (ii) without
materially and adversely affecting the entire offering, then the Company will still be required to include the Registrable Securities, but may require the Holders to agree, in writing, to delay the
sale of all or any portion of the Registrable Securities for a period of 90 days from the effective date of the offering, provided, further, that if the sale of any
Registrable Securities is so delayed, then the number of securities to be sold by all stockholders in such public offering shall be apportioned pro rata
among all such selling stockholders, including all holders of the Registrable Securities, according to the total amount of securities of the Company owned by said selling stockholders, including all
holders of the Registrable Securities. 

        5.2.2    Terms.    The Company shall bear all fees and expenses attendant to registering the Registrable Securities,
including the expenses of any legal counsel selected by the Holders to represent them in connection with the sale of the Registrable Securities but the Holders shall pay any and all underwriting
commissions. In the event of such a proposed registration, the Company shall furnish the then Holders of outstanding Registrable Securities with not less than fifteen days written notice prior to the
proposed date of filing of such registration statement. Such notice to the Holders shall continue to be given for each applicable registration statement filed (during the period in which the Purchase
Option is exercisable) by the Company until such time as all of the Registrable Securities have been registered and sold. The holders of the Registrable Securities shall exercise the
"piggy-back" rights provided for herein by giving written notice, within ten days of the receipt of the Company's notice of its intention to file a registration statement. The
Company shall cause any registration statement filed pursuant to the above "piggyback" rights to remain effective 

4

 

for
at least nine months from the date that the Holders of the Registrable Securities are first given the opportunity to sell all of such securities. 

        5.3    Damages.    Should the registration or the effectiveness thereof required by Sections 5.1 and 5.2 hereof be
delayed by the Company or the Company otherwise fails to comply with such provisions, the Company shall, in addition to any other equitable or other relief available to the Holder(s), be liable for
any and all incidental, special and consequential damages sustained by the Holder(s), including, but not limited to, the loss of any profits that might have been received by the holder upon the sale
of shares of Common Stock or Warrants (and shares of Common Stock underlying the Warrants) underlying this Purchase Option. 

        5.4    General Terms.    

        5.4.1    Indemnification.    The Company shall indemnify the Holder(s) of the Registrable Securities to be sold
pursuant to any registration statement hereunder and each person, if any, who controls such Holders within the meaning of Section 15 of the Act or Section 20(a) of the Securities
Exchange Act of 1934, as amended ("Exchange Act"), against all loss, claim, damage, expense or liability (including all reasonable attorneys' fees and other expenses reasonably incurred in
investigating, preparing or defending against litigation, commenced or threatened, or any claim whatsoever whether arising out of any action between the Underwriter and the Company or between the
Underwriter and any third party or otherwise) to which any of them may become subject under the Act, the Exchange Act or otherwise, arising from such registration statement but only to the same extent
and with the same effect as the provisions pursuant to which the Company has agreed to indemnify the Underwriters contained in Section 5 of the Underwriting Agreement. The Holder(s) of the
Registrable Securities to be sold
pursuant to such registration statement, and their successors and assigns, shall severally, and not jointly, indemnify the Company, its officers and directors and each person, if any, who controls the
Company within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act, against all loss, claim, damage, expense or liability (including all reasonable attorneys' fees
and other expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) to which they may become subject under the Act, the Exchange Act or otherwise, arising
from information furnished by or on behalf of such Holders, or their successors or assigns, in writing, for specific inclusion in such registration statement to the same extent and with the same
effect as the provisions contained in Section 5 of the Underwriting Agreement pursuant to which the Underwriters have agreed to indemnify the Company. 

        5.4.2    Exercise of Purchase Options.    Nothing contained in this Purchase Option shall be construed as requiring
the Holder(s) to exercise their Purchase Options or Warrants underlying such Purchase Options prior to or after the initial filing of any registration statement or the effectiveness thereof. 

        5.4.3    Exclusivity.    The Company shall not permit the inclusion of any securities other than the Registrable
Securities to be included in any registration statement filed pursuant to Section 5.1 hereof without the prior written consent of the Majority Holders of the Registrable Securities. 

        5.4.4    Documents Delivered to Holders.    The Company shall furnish EBC, as representative of the Holders
participating in any of the foregoing offerings, a signed counterpart, addressed to the participating Holders, of (i) an opinion of counsel to the Company, dated the effective date of such
registration statement (and, if such registration includes an underwritten public offering, an opinion dated the date of the closing under any underwriting agreement related thereto), and
(ii) a "cold comfort" letter dated the effective date of such registration statement (and, if such registration includes an underwritten public offering, a letter dated the date of the closing
under the underwriting agreement) signed by the independent public accountants who have issued a report on the Company's financial statements included in such registration statement, in each case 

5

 

covering
substantially the same matters with respect to such registration statement (and the prospectus included therein) and, in the case of such accountants' letter, with respect to events
subsequent to the date of such financial statements, as are customarily covered in opinions of issuer's counsel and in accountants' letters delivered to underwriters in underwritten public offerings
of securities. The Company shall also deliver promptly to EBC, as representative of the Holders participating in the offering, the correspondence and memoranda described below and copies of all
correspondence between the Commission and the Company, its counsel or auditors and all memoranda relating to discussions with the Commission or its staff with respect to the registration statement and
permit EBC, as representative of the Holders, to do such investigation, upon reasonable advance notice, with respect to information contained in or omitted from the registration statement as it deems
reasonably necessary to comply with applicable securities laws or rules of the National Association of Securities Dealers, Inc. ("NASD"). Such investigation shall include access to books,
records and properties and opportunities to discuss the business of the Company with its officers and independent auditors, all to such reasonable extent and at such reasonable times and as often as
EBC, as representative of the Holders, shall reasonably request. The Company shall not be required to disclose any confidential information or other records to EBC, as representative of the Holders,
or to any other person, until and unless such persons shall have entered into reasonable confidentiality agreements (in form and substance reasonably satisfactory to the Company), with the Company
with respect thereto. 

        5.4.5    Underwriting Agreement.    The Company shall enter into an underwriting agreement with the managing
underwriter(s), if any, selected by any Holders whose Registrable Securities are being registered pursuant to this Section 5, which managing underwriter shall be reasonably acceptable to the
Company. Such agreement shall be reasonably satisfactory in form and substance to the Company, each Holder and such managing underwriters, and shall contain such representations, warranties and
covenants by the Company and such other terms as are customarily contained in agreements of that type used by the managing underwriter. The Holders shall be parties to any underwriting agreement
relating to an underwritten sale of their Registrable Securities and may, at their option, require that any or all the representations, warranties and covenants of the Company to or for the benefit of
such underwriters shall also be made to and for the benefit of such Holders. Such Holders shall not be required to make any representations or warranties to or agreements with the Company or the
underwriters except as they may relate to such Holders and their intended methods of distribution. Such Holders, however, shall agree to such covenants and indemnification and contribution obligations
for selling stockholders as are customarily contained in agreements of that type used by the managing underwriter. Further, such Holders shall execute appropriate custody agreements and otherwise
cooperate fully in the preparation of the registration statement and other documents relating to any offering in which they include securities pursuant to this Section 5. Each Holder shall also
furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended
method of disposition of such securities as shall be reasonably required to effect the registration of the Registrable Securities. 

        5.4.6    Rule 144 Sale.    Notwithstanding anything contained in this Section 5 to the contrary, the
Company shall have no obligation pursuant to Sections 5.1 or 5.2 for the registration of Registrable Securities held by any Holder (i) where such Holder would then be entitled to sell under
Rule 144 within any three-month period (or such other period prescribed under Rule 144 as may be provided by amendment thereof) all of the Registrable Securities then held by such
Holder, and (ii) where the number of Registrable Securities held by such Holder is within the volume limitations under paragraph (e) of Rule 144 (calculated as if such Holder were
an affiliate within the meaning of Rule 144). 

6

 

        5.4.7    Supplemental Prospectus.    Each Holder agrees, that upon receipt of any notice from the Company of the
happening of any event as a result of which the prospectus included in the Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing, such Holder will immediately discontinue disposition of
Registrable Securities pursuant to the Registration Statement covering such Registrable Securities until such Holder's receipt of the copies of a supplemental or amended prospectus, and, if so desired
by the Company, such Holder shall deliver to the Company (at the expense of the Company) or destroy (and deliver to the Company a certificate of such destruction) all copies, other than permanent file
copies then in such Holder's possession, of the prospectus covering such Registrable Securities current at the time of receipt of such notice. 

6.    Adjustments.    

        6.1    Adjustments to Exercise Price and Number of Securities.    The Exercise Price and the number of Units
underlying the Purchase Option shall be subject to adjustment from time to time as hereinafter set forth: 

        6.1.1    Stock Dividends—Split-Ups.    If after the date hereof, and subject to the provisions
of Section 6.4 below, the number of outstanding shares of Common Stock is increased by a stock dividend payable in shares of Common Stock or by a split-up of shares of Common Stock
or other similar event, then, on the effective day thereof, the number of shares of Common Stock underlying each of the Units purchasable hereunder shall be increased in proportion to such increase in
outstanding shares. In such case, the number of shares of Common Stock, and the exercise price applicable thereto, underlying the Warrants underlying each of the Units purchasable hereunder shall be
adjusted in accordance with the terms of the Warrants. For example, if the Company declares a two-for-one stock dividend and at the time of such dividend this Purchase Option
is for the purchase of one Unit at $6.60 per whole Unit (each Warrant
underlying the Units is exercisable for $5.00 per share), upon effectiveness of the dividend, this Purchase Option will be adjusted to allow for the purchase of one Unit at $6.60 per Unit, each Unit
entitling the holder to receive two shares of Common Stock and four Warrants (each Warrant exercisable for $2.50 per share). 

        6.1.2    Aggregation of Shares.    If after the date hereof, and subject to the provisions of Section 6.4, the
number of outstanding shares of Common Stock is decreased by a consolidation, combination or reclassification of shares of Common Stock or other similar event, then, on the effective date thereof, the
number of shares of Common Stock underlying each of the Units purchasable hereunder shall be decreased in proportion to such decrease in outstanding shares. In such case, the number of shares of
Common Stock, and the exercise price applicable thereto, underlying the Warrants underlying each of the Units purchasable hereunder shall be adjusted in accordance with the terms of the Warrants. 

        6.1.3    Replacement of Securities upon Reorganization, etc.    In case of any reclassification or reorganization of
the outstanding shares of Common Stock other than a change covered by Section 6.1.1 or 6.1.2 hereof or that solely affects the par value of such shares of Common Stock, or in the case of any
merger or consolidation of the Company with or into another corporation (other than a consolidation or merger in which the Company is the continuing corporation and that does not result in any
reclassification or reorganization of the outstanding shares of Common Stock), or in the case of any sale or conveyance to another corporation or entity of the property of the Company as an entirety
or substantially as an entirety in connection with which the Company is dissolved, the Holder of this Purchase Option shall have the right thereafter (until the expiration of the right of exercise of
this Purchase Option) to receive upon the exercise hereof, for the same aggregate Exercise Price payable hereunder immediately prior to such event, the kind and amount 

7

 

of
shares of stock or other securities or property (including cash) receivable upon such reclassification, reorganization, merger or consolidation, or upon a dissolution following any such sale or
transfer, by a Holder of the number of shares of Common Stock of the Company obtainable upon exercise of this Purchase Option and the underlying Warrants immediately prior to such event; and if any
reclassification also results in a change in shares of Common Stock covered by Section 6.1.1 or 6.1.2, then such adjustment shall be made pursuant to Sections 6.1.1, 6.1.2 and this
Section 6.1.3. The provisions of this Section 6.1.3 shall similarly apply to successive reclassifications, reorganizations, mergers or consolidations, sales or other transfers. 

        6.1.4    Changes in Form of Purchase Option.    This form of Purchase Option need not be changed because of any change
pursuant to this Section, and Purchase Options issued after such change may state the same Exercise Price and the same number of Units as are stated in the Purchase Options initially issued pursuant
to this Agreement. The acceptance by any Holder of the issuance of new Purchase Options reflecting a required or permissive change shall not be deemed to waive any rights to an adjustment occurring
after the Commencement Date or the computation thereof. 

        6.2    [Intentionally Omitted]    

        6.3    Substitute Purchase Option.    In case of any consolidation of the Company with, or merger of the Company with,
or merger of the Company into, another corporation (other than a consolidation or merger which does not result in any reclassification or change of the outstanding Common Stock), the corporation
formed by such consolidation or merger shall execute and deliver to the Holder a supplemental Purchase Option providing that the holder of each Purchase Option then outstanding or to be outstanding
shall have the right thereafter (until the stated expiration of such Purchase Option) to receive, upon exercise of such Purchase Option, the kind and amount of shares of stock and other securities and
property receivable upon such consolidation or merger, by a holder of the number of shares of Common Stock of the Company for which such Purchase Option might have been exercised immediately prior to
such consolidation, merger, sale or transfer. Such supplemental Purchase Option shall provide for adjustments which shall be identical to the adjustments provided in Section 6. The above
provision of this Section shall similarly apply to successive consolidations or mergers. 

        6.4    Elimination of Fractional Interests.    The Company shall not be required to issue certificates representing
fractions of shares of Common Stock or Warrants upon the exercise of the Purchase Option, nor shall it be required to issue scrip or pay cash in lieu of any fractional interests, it being the intent
of the parties that all fractional interests shall be eliminated by rounding any fraction up to the nearest whole number of Warrants, shares of Common Stock or other securities, properties or rights. 

7.    Reservation and Listing.    The Company shall at all times reserve and keep available out of its authorized shares of Common
Stock, solely for the purpose of issuance upon exercise of the Purchase Options or the Warrants underlying the Purchase Option, such number of shares of Common Stock or other securities, properties or
rights as shall be issuable upon the exercise thereof. The Company covenants and agrees that, upon exercise of the Purchase Options and payment of the Exercise Price therefor, all shares of Common
Stock and other securities issuable upon such exercise shall be duly and validly issued, fully paid and non-assessable and not subject to preemptive rights of any stockholder. The Company
further covenants and agrees that upon exercise of the Warrants underlying the Purchase Options and payment of the respective Warrant exercise price therefor, all shares of Common Stock and other
securities issuable upon such exercise shall be duly and validly issued, fully paid and non-assessable and not subject to preemptive rights of any stockholder. As long as the Purchase
Options shall be outstanding, the Company shall use its best efforts to cause all (i) shares of Common Stock issuable upon exercise of the Purchase Options, (ii) Warrants issuable upon
exercise of the Purchase Options and (iii) shares of Common Stock issuable upon exercise of the Warrants included in the Units issuable upon exercise of the Purchase Option to be listed
(subject to official notice of 

8

 

issuance)
on all securities exchanges (or, if applicable on the Nasdaq National Market, SmallCap Market, OTC Bulletin Board or any successor trading market) on which the Common Stock or the Public
Warrants issued to the public in connection herewith may then be listed and/or quoted. 

8.    Certain Notice Requirements.    

        8.1    Holder's Right to Receive Notice.    Nothing herein shall be construed as conferring upon the Holders the right
to vote or consent or to receive notice as a stockholder for the election of directors or any other matter, or as having any rights whatsoever as a stockholder of the Company. If, however, at any time
prior to the expiration of the Purchase Options and their exercise, any of the events described in Section 8.2 shall occur, then, in one or more of said events, the Company shall give written
notice of such event at least fifteen days prior to the date fixed as a record date or the date of closing the transfer books for the determination of the stockholders entitled to such dividend,
distribution, conversion or exchange of securities or subscription rights, or entitled to vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date
or the date of the closing of the transfer books, as the case may be. 

        8.2    Events Requiring Notice.    The Company shall be required to give the notice described in this Section 8
upon one or more of the following events: (i) if the Company shall take a record of the holders of its shares of Common Stock for the purpose of entitling them to receive a dividend or
distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of retained earnings, as indicated by the accounting treatment of such dividend or
distribution on the books of the Company, or (ii) the Company shall offer to all the holders of its Common Stock any additional shares of capital stock of the Company or securities convertible
into or exchangeable for shares of capital stock of the Company, or any option, right or warrant to subscribe therefor, or (iii) a dissolution, liquidation or winding up of the Company (other
than in connection with a consolidation or merger) or a sale of all or substantially all of its property, assets and business shall be proposed. 

        8.3    Notice of Change in Exercise Price.    The Company shall, promptly after an event requiring a change in the
Exercise Price pursuant to Section 6 hereof, send notice to the Holders of such event and change ("Price Notice"). The Price Notice shall describe the event causing the change and the method of
calculating same and shall be certified as being true and accurate by the Company's President and Chief Financial Officer. 

        8.4    Transmittal of Notices.    All notices, requests, consents and other communications under this Purchase Option
shall be in writing and shall be deemed to have been duly made when hand delivered, or mailed by express mail or private courier service: (i) If to the registered Holder of the Purchase Option,
to the address of such Holder as shown on the books of the Company, or (ii) if to the Company, to following address or to such other address as the Company may designate by notice to the
Holders: 

Millstream
Acquisition Corporation

c/o Arthur Spector

435 Devon Park Drive

Building 400

Wayne, Pennsylvania 19087

Attn: Arthur Spector 

9.    Miscellaneous.    

        9.1    Amendments.    The Company and EBC may from time to time supplement or amend this Purchase Option without the
approval of any of the Holders in order to cure any ambiguity, to correct or supplement any provision contained herein that may be defective or inconsistent with any other provisions herein, or to
make any other provisions in regard to matters or questions arising hereunder that the Company and EBC may deem necessary or desirable and that the Company and EBC deem 

9

 

shall
not adversely affect the interest of the Holders. All other modifications or amendments shall require the written consent of and be signed by the party against whom enforcement of the
modification or amendment is sought. 

        9.2    Headings.    The headings contained herein are for the sole purpose of convenience of reference, and shall not
in any way limit or affect the meaning or interpretation of any of the terms or provisions of this Purchase Option. 

10.    Entire Agreement.    This Purchase Option (together with the other agreements and documents being delivered pursuant to or in
connection with this Purchase Option) constitutes the entire agreement of the parties hereto with respect to the subject matter hereof, and supersedes all prior agreements and understandings of the
parties, oral and written, with respect to the subject matter hereof. 

        10.1    Binding Effect.    This Purchase Option shall inure solely to the benefit of and shall be binding upon, the
Holder and the Company and their permitted assignees, respective successors, legal representative and assigns, and no other person shall have or be construed to have any legal or equitable right,
remedy or claim under or in respect of or by virtue of this Purchase Option or any provisions herein contained. 

        10.2    Governing Law; Submission to Jurisdiction.    This Purchase Option shall be governed by and construed and
enforced in accordance with the laws of the State of New York, without giving effect to conflict of laws. The Company hereby agrees that any action, proceeding or claim against it arising out of, or
relating in any way to this Purchase Option shall be brought and enforced in the courts of the State of New York or of the United States of America for the Southern District of New York, and
irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient
forum. Any process or summons to be served upon the Company may be served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage prepaid, addressed to it at
the address set forth in Section 8 hereof. Such mailing shall be deemed personal service and shall be legal and binding upon the Company in any action, proceeding or claim. The Company and the
Holder agree that the prevailing party(ies) in any such action shall be entitled to recover from the other party(ies) all of its
reasonable attorneys' fees and expenses relating to such action or proceeding and/or incurred in connection with the preparation therefor. 

        10.3    Waiver, Etc.    The failure of the Company or the Holder to at any time enforce any of the provisions of this
Purchase Option shall not be deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Purchase Option or any provision hereof or the right of the Company
or any Holder to thereafter enforce each and every provision of this Purchase Option. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of
this Purchase Option shall be effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement of such waiver is sought; and no waiver of any such
breach, non-compliance or non-fulfillment shall be construed or deemed to be a waiver of any other or subsequent breach, non-compliance or
non-fulfillment. 

        10.4    Execution in Counterparts.    This Purchase Option may be executed in one or more counterparts, and by the
different parties hereto in separate counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement, and shall become
effective when one or more counterparts has been signed by each of the parties hereto and delivered to each of the other parties hereto. 

        10.5    Exchange Agreement.    As a condition of the Holder's receipt and acceptance of this Purchase Option, Holder
agrees that, at any time prior to the complete exercise of this Purchase Option by Holder, if the Company and EBC enter into an agreement ("Exchange Agreement") 

10

 

pursuant
to which they agree that all outstanding Purchase Options will be exchanged for securities or cash or a combination of both, then Holder shall agree to such exchange and become a party to the
Exchange Agreement. 

        10.6    Underlying Warrants.    At any time after exercise by the Holder of this Purchase Option, the Holder may
exchange his Warrants (with a $6.00 exercise price) for Public Warrants (with a $5.00 exercise price) upon payment to the Company of $1.00 per Warrant. 

11

 

        IN
WITNESS WHEREOF, the Company has caused this Purchase Option to be signed by its duly authorized officer as of the            day
of                        , 2003. 

	 	 	MILLSTREAM ACQUISITION CORPORATION
	

 	
 	

 	

 
	 	 	By:	    
 Name: Arthur Spector

Title: Chairman of the Board

12

 

Form
to be used to exercise Purchase Option: 

Millstream
Acquisition Corporation

c/o Arthur Spector

435 Devon Park Drive

Building 400

Wayne, Pennsylvania 19087 

Date:                        ,
200  

        The
undersigned hereby elects irrevocably to exercise the within Purchase Option and to purchase            Units of Millstream Acquisition Corporation and hereby makes payment of
$                        (at the rate of
$                        per Unit) in payment of the Exercise Price pursuant thereto. Please issue the Common Stock and Warrants
as to which this Purchase Option is exercised
in accordance with the instructions given below. 

or

        The
undersigned hereby elects irrevocably to convert its right to purchase                        Units purchasable under the within
Purchase Option by surrender of the unexercised portion of
the attached Purchase Option (with a "Value" based of $            based on a "Market Price" of $            ). Please issue the
securities comprising the Units as to which this Purchase Option
is exercised in accordance with the instructions given below. 

	 	 	 	    
 Signature
	

 	

 	
 	

 
	 	 	 	    
 Signature Guaranteed
	

 	

 	
 	

 
	INSTRUCTIONS FOR REGISTRATION OF SECURITIES
	

 	

 	
 	

 
	Name	    
 (Print in Block Letters)	 	 
	

 	

 	
 	

 
	Address	    
	 	 

        NOTICE: The signature to this form must correspond with the name as written upon the face of the within Purchase Option in every
particular without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership on a registered
national securities exchange.

13

 

Form
to be used to assign Purchase Option: 

 
 

ASSIGNMENT    
    

        (To be executed by the registered Holder to effect a transfer of the within Purchase Option): 

        FOR
VALUE RECEIVED,
                                         
       does hereby sell, assign and transfer unto

                                         
       the right to purchase                        Units of Millstream Acquisition Corporation
("Company") evidenced by the within Purchase Option and does hereby authorize the Company to transfer
such right on the books of the Company. 

Dated:                        ,
200  

	

 	
 	

 
	 	 	    
 Signature
	

 	
 	

 
	 	 	    
 Signature Guaranteed

        NOTICE: The signature to this form must correspond with the name as written upon the face of the within Purchase Option in every
particular without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership on a registered
national securities exchange.

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QuickLinks

UNIT PURCHASE OPTION For the Purchase of 350,000 Units of MILLSTREAM ACQUISITION CORPORATION

ASSIGNMENT

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