Document:

11111
                  Katy Freeway, Suite 910

                Houston,
                  TX 77079

                (713)
                  973-5720 tel

                (713
                  973-5777 fax

              

      

      March
        23,
        2008

      

      Mr.
        Ferdinando Petrucci

      Via
        Stazione, 133a

      Arce,
        Italy

      

      
        	Re:	
                Amendment
                  No. 6 (“Amendment No. 6) to the Exclusive License Agreement, dated March
                  20, 2006 and as amended September 11, 2006, December 13, 2006,
                  November 3,
                  2007, November 9, 2007 and February 20, 2008 between Ferdinando
                  Petrucci
                  (“Petrucci”) and H2Diesel, Inc. (“H2Diesel”), a wholly owned subsidiary of
                  H2Diesel Holdings, Inc. (as amended, the “License
                  Agreement”)

              

      

      

      Dear
        Mr.
        Petrucci:

      

      Please
        acknowledge your agreement that the License Agreement is further amended
        as
        follows, by executing this Amendment No. 6 to the License Agreement in the
        space
        provided below:

      

      The
        due
        date for US$850,000 of the US$1,000,000 payment originally due March 20,
        2008 is
        extended to such date when H2 closes a financing transaction with net proceeds
        that exceed $850,000. 

      

      Very
        truly yours,

       

      
        	H2Diesel,
                Inc.	 	 	 
	 	 	 	 	 
	
                By:

              	/s/
                David A.
                Gillespie	 	 	
              
	 	
                
Name:
                David A. Gillespie	 	 	
              
	 	Title: President and Chief Executive
                Officer	 	 	
              

      

       

      Acknowledged
        and agreed to this 25 day of March 2008:

       

      /s/
        Ferdinando Petrucci 

        
          

        

      Ferdinando
        PetrucciH2DIESEL
      HOLDINGS, INC.

    

    OMNIBUS
      INCENTIVE PLAN

     

    
      
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF CONTENTS

    

      
        	 	 	 	 	
                Page

              
	
                1.

              	
                PURPOSE

              	 	
                1

              
	
                2.

              	
                DEFINITIONS

              	 	
                1

              
	
                3.

              	
                ADMINISTRATION
                  OF THE PLAN

              	 	
                6

              
	 	
                3.1.

              	
                Board

              	 	
                6

              
	 	
                3.2.

              	
                Committee

              	 	
                6

              
	 	
                3.3.

              	
                Terms
                  of Awards

              	 	
                7

              
	 	
                3.4.

              	
                No
                  Liability

              	 	
                8

              
	 	
                3.5.

              	
                Share
                  Issuance/Book-Entry

              	 	
                8

              
	
                4.

              	
                STOCK
                  SUBJECT TO THE PLAN

              	 	
                8

              
	 	
                4.1.

              	
                Number
                  of Shares Available for Awards

              	 	
                8

              
	 	
                4.2.

              	
                Adjustments
                  in Authorized Shares

              	 	
                8

              
	 	
                4.3.

              	
                Share
                  Usage

              	 	
                8

              
	
                5.

              	
                EFFECTIVE
                  DATE, DURATION AND AMENDMENTS

              	 	
                9

              
	 	
                5.1.

              	
                Effective
                  Date

              	 	
                9

              
	 	
                5.2.

              	
                Term

              	 	
                9

              
	 	
                5.3.

              	
                Amendment
                  and Termination of the Plan

              	 	
                9

              
	
                6.

              	
                AWARD
                  ELIGIBILITY AND LIMITATIONS

              	 	
                9

              
	 	
                6.1.

              	
                Service
                  Providers and Other Persons

              	 	
                9

              
	 	
                6.2.

              	
                Successive
                  Awards and Substitute Awards

              	 	
                9

              
	 	
                6.3.

              	
                Limitation
                  on Shares of Stock Subject to Awards and Cash Awards.

              	 	
                10

              
	
                7.

              	
                AWARD
                  AGREEMENT

              	 	
                10

              
	
                8.

              	
                TERMS
                  AND CONDITIONS OF OPTIONS

              	 	
                10

              
	 	
                8.1.

              	
                Option
                  Price

              	 	
                10

              
	 	
                8.2.

              	
                Vesting

              	 	
                10

              
	 	
                8.3.

              	
                Term

              	 	
                11

              
	 	
                8.4.

              	
                Termination
                  of Service

              	 	
                11

              
	 	
                8.5.

              	
                Limitations
                  on Exercise of Option

              	 	
                11

              
	 	
                8.6.

              	
                Method
                  of Exercise

              	 	
                11

              
	 	
                8.7.

              	
                Rights
                  of Holders of Options

              	 	
                11

              
	 	
                8.8.

              	
                Delivery
                  of Stock Certificates

              	 	
                12

              
	 	
                8.9.

              	
                Transferability
                  of Options

              	 	
                12

              
	 	
                8.10.

              	
                Family
                  Transfers

              	 	
                12

              
	 	
                8.11.

              	
                Limitations
                  on Incentive Stock Options

              	 	
                12

              
	 	
                8.12.

              	
                Notice
                  of Disqualifying Disposition

              	 	
                12

              
	
                9.

              	
                TERMS
                  AND CONDITIONS OF STOCK APPRECIATION RIGHTS

              	 	
                13

              
	 	
                9.1.

              	
                Right
                  to Payment and Grant Price

              	 	
                13

              
	 	
                9.2.

              	
                Other
                  Terms

              	 	
                13

              
	 	
                9.3.

              	
                Term

              	 	
                13

              
	 	
                9.4.

              	
                Transferability
                  of SARS

              	 	
                13

              
	 	
                9.5.

              	
                Family
                  Transfers

              	 	
                13

              

      

    

     

    
      
        
        

      

      
        -i-

        
          

        

      

      
        
        

      

    

     

    
      
        	
                10.

              	TERMS
                AND CONDITIONS OF RESTRICTED STOCK AND
                STOCK UNITS	 	
                1

              
	 	
                10.1.

              	
                Grant
                  of Restricted Stock or Stock Units.

              	 	
                1

              
	 	
                10.2.

              	
                Restrictions.

              	 	
                1

              
	 	
                10.3.

              	
                Restricted
                  Stock Certificates.

              	 	
                1

              
	 	
                10.4.

              	
                Rights
                  of Holders of Restricted Stock.

              	 	
                1

              
	 	
                10.5.

              	
                Rights
                  of Holders of Stock Units.

              	 	
                1

              
	 	
                10.5.1.

              	
                Voting
                  and Dividend Rights.

              	 	
                15

              
	 	
                10.5.2.

              	
                Creditor’s
                  Rights.

              	 	
                1

              
	 	
                10.6.

              	
                Termination
                  of Service.

              	 	
                1

              
	 	
                10.7.

              	
                Purchase
                  of Restricted Stock.

              	 	
                1

              
	 	
                10.8.

              	
                Delivery
                  of Stock.

              	 	
                1

              
	
                11.

              	TERMS
                AND CONDITIONS OF UNRESTRICTED STOCK AWARDS	 	
                1

              
	 	
                12.

              	
                FORM
                  OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK

              	 	
                1

              
	 	
                12.1.

              	
                General
                  Rule.

              	 	
                1

              
	 	
                12.2.

              	
                Surrender
                  of Stock.

              	 	
                1

              
	 	
                12.3.

              	
                Cashless
                  Exercise.

              	 	
                1

              
	 	
                12.4.

              	
                Other
                  Forms of Payment.

              	 	
                1

              
	
                13.

              	TERMS
                AND CONDITIONS OF DIVIDEND
                EQUIVALENTRIGHTS	 	
                1

              
	 	
                13.1.

              	
                Dividend
                  Equivalent Rights.

              	 	
                1

              
	 	
                13.2.

              	
                Termination
                  of Service.

              	 	
                1

              
	
                14.

              	TERMS
                AND CONDITIONS OF PERFORMANCE
                SHARES, PERFORMANCE UNITS, PERFORMANCE AWARDS AND
                ANNUAL INCENTIVE AWARDS	 	
                1

              
	 	
                14.1.

              	
                Grant
                  of Performance Units/Performance Shares.

              	 	
                1

              
	 	
                14.2.

              	
                Value
                  of Performance Units/Performance Shares.

              	 	
                1

              
	 	
                14.3.

              	
                Earning
                  of Performance Units/Performance Shares.

              	 	
                1

              
	 	
                14.4.

              	
                Form
                  and Timing of Payment of Performance Units/Performance
                  Shares.

              	 	
                1

              
	 	
                14.5.

              	
                Performance
                  Conditions.

              	 	
                1

              
	 	
                14.6.

              	
                Performance
                  Awards or Annual Incentive Awards Granted to Designated Covered
                  Employees.

              	 	
                1

              
	 	
                14.6.1.

              	
                Performance
                  Goals Generally.

              	 	
                18

              
	 	
                14.6.2.

              	
                Timing
                  For Establishing Performance Goals.

              	 	
                
                  19

                

              
	 	
                14.6.3.

              	
                Settlement
                  of Awards; Other Terms.

              	 	
                
                  19

                

              
	 	
                14.6.4.

              	
                Performance
                  Measures.

              	 	
                
                  19

                

              
	 	
                14.6.5.

              	
                Evaluation
                  of Performance.

              	 	
                
                  
                    
                      19

                    

                  

                

              
	 	
                14.6.6.

              	
                Adjustment
                  of Performance-Based Compensation.

              	 	
                21

              
	 	
                14.6.7.

              	
                Board
                  Discretion.

              	 	
                
                  21

                

              
	 	
                14.7.

              	
                Status
                  of Section Awards Under Code Section 162(m).

              	 	
                
                  21

                

              

      

       

      
        
           

        

        
          -ii-

          
            

          

        

        
           

        

      

       

      
        	
                15.

              	PARACHUTE
                LIMITATIONS	 	
                1

              
	 	
                16.

              	
                REQUIREMENTS
                  OF LAW

              	 	
                1

              
	 	
                16.1.

              	
                General.

              	 	
                1

              
	 	
                16.2.

              	
                Rule
                  16b-3.

              	 	
                1

              
	
                17.

              	EFFECT
                OF CHANGES IN CAPITALIZATION	 	
                1

              
	 	
                17.1.

              	
                Changes
                  in Stock.

              	 	
                1

              
	 	
                17.2.

              	
                Reorganization
                  in Which the Company Is the Surviving Entity Which does not Constitute
                  a
                  Corporate Transaction.

              	 	
                1

              
	 	
                17.3.

              	
                Corporate
                  Transaction.

              	 	
                1

              
	 	
                17.4.

              	
                Adjustments.

              	 	
                1

              
	 	
                17.5.

              	
                No
                  Limitations on Company.

              	 	
                1

              
	
                18.

              	
                GENERAL
                  PROVISIONS

              	 	
                1

              
	 	
                18.1.

              	
                Disclaimer
                  of Rights

              	 	
                1

              
	 	
                18.2.

              	
                Nonexclusivity
                  of the Plan

              	 	
                1

              
	 	
                18.3.

              	
                Withholding
                  Taxes

              	 	
                1

              
	 	
                18.4.

              	
                Captions

              	 	
                1

              
	 	
                18.5.

              	
                Other
                  Provisions

              	 	
                1

              
	 	
                18.6.

              	
                Number
                  and Gender

              	 	
                1

              
	 	
                18.7.

              	
                Severability

              	 	
                1

              
	 	
                18.8.

              	
                Governing
                  Law

              	 	
                1

              
	 	
                18.9.

              	
                Section
                  409A of the Code

              	 	
                1

              

      

    

     

    
      
        
        

      

      
        -iii-

        
          

        

      

      
        
        

      

    

    

    H2DIESEL
      HOLDINGS, INC.

    

    OMNIBUS
      INCENTIVE PLAN

    

    H2Diesel
      Holdings, Inc.,
      a
      Florida corporation (the “Company”), sets forth herein the terms of its Omnibus
      Incentive Plan (the “Plan”), as follows:

     

    1. PURPOSE

     

    The
      Plan
      is intended to enhance the Company’s and its Affiliates’ (as defined herein)
      ability to attract and retain highly qualified officers, directors, key
      employees, and other persons, and to motivate such persons to serve the Company
      and its Affiliates and to expend maximum effort to improve the business results
      and earnings of the Company, by providing to such persons an opportunity to
      acquire or increase a direct proprietary interest in the operations and future
      success of the Company. To
      this
      end, the Plan provides for the grant of stock options, stock appreciation
      rights, restricted stock, stock units, unrestricted stock, dividend equivalent
      rights, and cash awards. Any of these awards may, but need not, be made as
      performance incentives to reward attainment of annual or long-term performance
      goals in accordance with the terms hereof. Stock options granted under the
      Plan
      may be non-qualified stock options or incentive stock options, as provided
      herein, except that stock options granted to outside directors and any
      consultants or adviser providing services to the Company or an Affiliate shall
      in all cases be non-qualified stock options.

     

    2. DEFINITIONS

     

    For
      purposes of interpreting the Plan and related documents (including Award
      Agreements), the following definitions shall apply:

    

    2.1 “Affiliate”
      means,
      with respect to the Company, any company or other trade or business that
      controls, is controlled by or is under common control with the Company within
      the meaning of Rule 405 of Regulation C under the Securities Act, including,
      without limitation, any Subsidiary. For purposes of granting stock options
      or
      stock appreciation rights, an entity may not be considered an Affiliate if
      it
      results in noncompliance with Code Section 409A.

    

    2.2 “Annual
      Incentive Award”
      means an
      Award made subject to attainment of performance goals (as described in
Section
      14)
      over a
      performance period of up to one year (the Company’s fiscal year, unless
      otherwise specified by the Committee).

    

    2.3 “Award”
      means a
      grant of an Option, Stock Appreciation Right, Restricted Stock, Unrestricted
      Stock, Stock Unit, Dividend Equivalent Rights, Performance Share, Performance
      Unit or cash award under
      the
      Plan.

    

    2.4 “Award
      Agreement”
      means
      the written agreement between the Company and a Grantee that evidences and
      sets
      out the terms and conditions of an Award.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    2.5 “Benefit
      Arrangement”
      shall
      have the meaning set forth in Section 15
      hereof.

    

    2.6 “Board”
      means
      the Board of Directors of the Company.

    

    2.7 “Cause” means,
      as
      determined by the Board and unless otherwise provided in an applicable agreement
      with the Company or an Affiliate, (i) gross negligence or willful misconduct
      in
      connection with the performance of duties; (ii) conviction of a criminal
      offense (other than minor traffic offenses); or (iii) material breach of
      any term of any employment, consulting or other services, confidentiality,
      intellectual property or non-competition agreements, if any, between the Service
      Provider and the Company or an Affiliate.

    

    2.8 “Code”
      means
      the Internal Revenue Code of 1986, as now in effect or as hereafter
      amended.

    

    2.9 “Committee”
      means a
      committee of, and designated from time to time by resolution of, the Board,
      which shall be constituted as provided in Section
      3.2.

    

    2.10 “Company”
      means
H2Diesel
      Holdings, Inc.

    

    2.11 “Corporate
      Transaction” means
      (i)
      the dissolution or liquidation of the Company or a merger, consolidation, or
      reorganization of the Company with one or more other entities in which the
      Company is not the surviving entity, (ii) a sale of substantially all of the
      assets of the Company to another person or entity, or (iii) any transaction
      (including without limitation a merger or reorganization in which the Company
      is
      the surviving entity) which results in any person or entity (other than persons
      who are stockholders or Affiliates immediately prior to the transaction) owning
      50% or more of the combined voting power of all classes of stock of the
      Company.

     

    2.12 “Covered
      Employee”
      means a
      Grantee who is a covered employee within the meaning of Section 162(m)(3) of
      the
      Code.

     

    2.13 “Disability”
      means
      the Grantee is unable to perform each of the essential duties of such Grantee's
      position by reason of a medically determinable physical or mental impairment
      which is potentially permanent in character or which can be expected to last
      for
      a continuous period of not less than 12 months; provided, however, that, with
      respect to rules regarding expiration of an Incentive Stock Option following
      termination of the Grantee's Service, Disability shall mean the Grantee is
      unable to engage in any substantial gainful activity by reason of a medically
      determinable physical or mental impairment which can be expected to result
      in
      death or which has lasted or can be expected to last for a continuous period
      of
      not less than 12 months.

     

    2.14 “Dividend
      Equivalent Right”
      means a
      right, granted to a Grantee under Section
      13
      hereof,
      to receive cash, Stock, other Awards or other property equal in value to
      dividends paid with respect to a specified number of shares of Stock, or other
      periodic payments.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    2.15 “Effective
      Date” means
      ______ __, 2007, the date the Plan is approved by the Board. 

    

    2.16 “Exchange
      Act”
      means
      the Securities Exchange Act of 1934, as now in effect or as hereafter
      amended.

    

    2.17 “Fair
      Market Value” means
      the
      value of a share of Stock, determined as follows: if on the Grant Date or other
      determination date the Stock is listed on an established national or regional
      stock exchange, is admitted to quotation on The Nasdaq Stock Market, Inc. or
      is
      publicly traded on an established securities market, the Fair Market Value
      of a
      share of Stock shall be the closing price of the Stock on such exchange or
      in
      such market (if there is more than one such exchange or market the Board shall
      determine the appropriate exchange or market) on the Grant Date or such other
      determination date (or if there is no such reported closing price, the Fair
      Market Value shall be the mean between the highest bid and lowest asked prices
      or between the high and low sale prices on such trading day) or, if no sale
      of
      Stock is reported for such trading day, on the next preceding day on which
      any
      sale shall have been reported. If the Stock is not listed on such an exchange,
      quoted on such system or traded on such a market, Fair Market Value shall be
      the
      value of the Stock as determined by the Board in good faith in a manner
      consistent with Code Section 409A. 

     

    2.18 “Family
      Member”
      means a
      person who is a spouse, former spouse, child, stepchild, grandchild, parent,
      stepparent, grandparent, niece, nephew, mother-in-law, father-in-law,
      son-in-law, daughter-in-law, brother, sister, brother-in-law, or sister-in-law,
      including adoptive relationships, of the Grantee, any person sharing the
      Grantee’s household (other than a tenant or employee), a
      trust
      in which any one or more of these persons have more than fifty percent of the
      beneficial interest, a foundation in which any one or more of these persons
      (or
      the Grantee) control the management of assets, and any other entity in which
      one
      or more of these persons (or
      the
      Grantee) own more than fifty percent of the voting interests.

    

    2.19 “Grant
      Date”
      means,
      as determined by the Board, the
      latest to occur of (i)
      the
      date as of which the Board approves an Award, (ii) the date on which the
      recipient of an Award first becomes eligible to receive an Award under
Section 6
      hereof,
      or (iii) such other date as may be specified by the Board.

    

    2.20 “Grantee”
      means a
      person who receives or holds an Award under the Plan.

    

    2.21 “Incentive
      Stock Option”
      means an
“incentive stock option” within the meaning of Section 422 of the Code, or the
      corresponding provision of any subsequently enacted tax statute, as amended
      from
      time to time.

    

    2.22 “Non-qualified
      Stock Option”
      means an
      Option that is not an Incentive Stock Option.

    

    2.23 “Option”
      means an
      option to purchase one or more shares of Stock pursuant to the
      Plan.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    

    2.24 “Option
      Price”
      means
      the exercise price for each share of Stock subject to an Option.

    

    2.25 “Other
      Agreement”
      shall
      have the meaning set forth in Section
      15
      hereof.

    

    2.26 “Outside
      Director”
      means a
      member of the Board who is not an officer or employee of the
      Company.

    

    2.27 “Performance
      Award”
      means an
      Award made subject to the attainment of performance goals (as described in
      Section
      14)
      over a
      performance period of up to ten (10) years.

     

    2.28 “Performance-Based
      Compensation” means
      compensation under an Award that is intended to satisfy the requirements of
      Code
      Section 162(m) for certain performance-based compensation paid to Covered
      Employees. Notwithstanding the foregoing, nothing in this Plan shall be
      construed to mean that an Award which does not satisfy the requirements for
      performance-based compensation under Code Section 162(m) does not
      constitute performance-based compensation for other purposes, including Code
      Section 409A.

    

    2.29 “Performance
      Measures” means
      measures as described in Section
      14
      on which
      the performance goals are based and which are approved by the Company’s
      shareholders pursuant to this Plan in order to qualify Awards as
      Performance-Based Compensation. 

    

    2.30 “Performance
      Period” means
      the
      period of time during which the performance goals must be met in order to
      determine the degree of payout and/or vesting with respect to an Award.

    

    2.31 “Performance
      Share” means
      an
      Award under Section
      14
      herein
      and subject to the terms of this Plan, denominated in Shares, the value of
      which
      at the time it is payable is determined as a function of the extent to which
      corresponding performance criteria have been achieved. 

    

    2.32 “Performance
      Unit” means
      an
      Award under Section
      14
      herein
      and subject to the terms of this Plan, denominated in units, the value of which
      at the time it is payable is determined as a function of the extent to which
      corresponding performance criteria have been achieved.

    

    2.33 “Plan”
      means
      this H2Diesel
      Holdings, Inc.
      2007
      Omnibus Incentive Plan.

    

    2.34 “Purchase
      Price” means
      the
      purchase price for each share of Stock pursuant to a grant of Restricted Stock
      or Unrestricted Stock.

    

    2.35 “Reporting
      Person”
      means a
      person who is required to file reports under Section 16(a) of the Exchange
      Act.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    

    2.36 “Restricted
      Stock”
      means
      shares of Stock, awarded to a Grantee pursuant to Section
      10
      hereof.

    

    2.37 “SAR
      Exercise Price”
      means
      the per share exercise price of an SAR granted to a Grantee under Section
      9
      hereof. 

    

    2.38 “Securities
      Act”
      means
      the Securities Act of 1933, as now in effect or as hereafter
      amended.

    

    2.39 “Service”
      means
      service as a Service Provider to the Company or an Affiliate. Unless otherwise
      stated in the applicable Award Agreement, a Grantee's change in position or
      duties shall not result in interrupted or terminated Service, so long as such
      Grantee continues to be a Service Provider to the Company or an Affiliate.
      Subject to the preceding sentence, whether a termination of Service shall have
      occurred for purposes of the Plan shall be determined by the Board, which
      determination shall be final, binding and conclusive. 

    

    2.40 “Service
      Provider”
      means
      an
      employee, officer or director of the Company or an Affiliate, or a consultant
      or
      adviser (who is a natural person) currently providing services to the Company
      or
      an Affiliate.

    

    2.41 “Stock”
      means
      the common stock, par value $.001 per share, of the Company.

    

    2.42 “Stock
      Appreciation Right”
      or
“SAR”
      means a
      right granted to a Grantee under Section
      9
      hereof. 

    

    2.43 “Stock
      Unit”
      means a
      bookkeeping entry representing the equivalent of one share of Stock awarded
      to a
      Grantee pursuant to Section
      10
      hereof.

    

    2.44 “Subsidiary”
      means
      any “subsidiary corporation” of the Company within the meaning of Section 424(f)
      of the Code.

    

    2.45 “Substitute
      Awards”
      means
      Awards granted upon assumption of, or in substitution for, outstanding awards
      previously granted by a company or other entity acquired by the Company or
      any
      Affiliate or with which the Company or any Affiliate combines. 

    

    2.46 “Ten
      Percent Stockholder”
      means an
      individual who owns more than ten percent (10%) of the total combined voting
      power of all classes of outstanding stock of the Company, its parent or any
      of
      its Subsidiaries. In determining stock ownership, the attribution rules of
      Section 424(d) of the Code shall be applied.

     

    2.47 “Unrestricted
      Stock” means
      an
      Award pursuant to Section
      11
      hereof.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

     

    3. ADMINISTRATION
      OF THE PLAN

     

    
      	 	
              3.1.

            	
              Board

            

    

     

    The
      Board
      shall have such powers and authorities related to the administration of the
      Plan
      as are consistent with the Company’s certificate of incorporation and by-laws
      and applicable law. The Board shall have full power and authority to take all
      actions and to make all determinations required or provided for under the Plan,
      any Award or any Award Agreement, and shall have full power and authority to
      take all such other actions and make all such other determinations not
      inconsistent with the specific terms and provisions of the Plan that the Board
      deems to be necessary or appropriate to the administration of the Plan, any
      Award or any Award Agreement. All such actions and determinations shall be
      by
      the affirmative vote of a majority of the members of the Board present at a
      meeting or by unanimous consent of the Board executed in writing in accordance
      with the Company’s certificate of incorporation and by-laws and applicable law.
      The interpretation and construction by the Board of any provision of the Plan,
      any Award or any Award Agreement shall be final, binding and
      conclusive.

     

    
      	 	
              3.2.

            	
              Committee. 

            

    

     

    The
      Board
      from time to time may delegate to the Committee such powers and authorities
      related to the administration and implementation of the Plan, as set forth
      in
Section 3.1
      above
      and other applicable provisions, as the Board shall determine, consistent with
      the certificate of
      incorporation and by-laws of the Company and applicable law. 

    

    (i) Except
      as
      provided in Subsection (ii) and except as the Board may otherwise determine,
      the
      Committee, if any, appointed by the Board to administer the Plan shall consist
      of two or more Outside Directors of the Company who: (a) qualify as “outside
      directors” within the meaning of Section 162(m) of the Code and who (b) meet
      such other requirements as may be established from time to time by the
      Securities and Exchange Commission for plans intended to qualify for exemption
      under Rule 16b-3 (or its successor) under the Exchange Act and who (c) comply
      with the independence requirements of the stock exchange on which the Common
      Stock is listed. 

    

    (ii) The
      Board
      may also appoint one or more separate committees of the Board, each composed
      of
      one or more directors of the Company who need not be Outside Directors, who
      may
      administer the Plan with respect to employees or other Service Providers who
      are
      not officers or directors of the Company, may grant Awards under the Plan to
      such employees or other Service Providers, and may determine all terms of such
      Awards.

    

    In
      the
      event that the
      Plan,
      any Award or any Award Agreement
      entered
      into hereunder provides for any action to be taken by or determination to be
      made by the Board, such action may be taken or such determination may be made
      by
      the Committee if the power and authority to do so has been delegated to the
      Committee by the Board as provided for in this Section. Unless otherwise
      expressly determined by the Board, any such action or determination by the
      Committee shall be final, binding and conclusive.
      To the
      extent permitted by law, the Committee may delegate its authority under the
      Plan
      to a member of the Board. 

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    
      	 	
              3.3.

            	
              Terms
                of Awards.

            

    

     

    Subject
      to the other terms and conditions of the Plan, the Board shall have full and
      final authority to: 

    

    (i) designate
      Grantees, 

     

    (ii) determine
      the type or types of Awards to be made to a Grantee, 

     

    (iii) determine
      the number of shares of Stock to be subject to an Award, 

     

    (iv) establish
      the terms and conditions of each Award (including, but not limited to, the
      exercise price of any Option, the nature and duration of any restriction or
      condition (or provision for lapse thereof) relating to the vesting, exercise,
      transfer, or forfeiture of an Award or the shares of Stock subject thereto,
      and
      any terms or conditions that may be necessary to qualify Options as Incentive
      Stock Options), 

     

    (v) prescribe
      the form of each Award Agreement evidencing an Award, and

     

    (vi) amend,
      modify, or supplement the terms of any outstanding Award. Such authority
      specifically includes the authority, in order to effectuate the purposes of
      the
      Plan but without amending the Plan, to modify Awards to eligible individuals
      who
      are foreign nationals or are individuals who are employed outside the
      United States to recognize differences in local law, tax policy, or custom.
      Notwithstanding the foregoing, no amendment, modification or supplement of
      any
      Award shall, without the consent of the Grantee, impair the Grantee’s rights
      under such Award. 

     

    The
      Company may retain the right in an Award Agreement to cause a forfeiture of
      the
      gain realized by a Grantee on account of actions taken by the Grantee in
      violation or breach of or in conflict with any employment agreement,
      non-competition agreement, any agreement prohibiting solicitation of employees
      or clients of the Company or any Affiliate thereof
      or any confidentiality obligation with respect to the Company or any
      Affiliate thereof
      or otherwise in competition with the Company or any Affiliate thereof, to the
      extent specified in such Award Agreement applicable to the Grantee. Furthermore,
      the Company may annul an Award if the Grantee is an employee of the Company
      or
      an Affiliate thereof and is terminated for Cause as defined in the applicable
      Award Agreement or the Plan, as applicable.

     

    Notwithstanding
      the foregoing, no amendment or modification may be made to an outstanding Option
      or SAR which reduces the Option Price or SAR Exercise Price, either by lowering
      the Option Price or SAR Exercise Price or by canceling the outstanding Option
      or
      SAR and granting a replacement Option or SAR with a lower exercise price without
      the approval of the stockholders of the Company, provided, that, appropriate
      adjustments may be made to outstanding Options and SARs pursuant to Section
      17.
      

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    
      	 	
              3.4.

            	
              No
                Liability.

            

    

     

    No
      member
      of the Board or of the Committee shall be liable for any action or determination
      made in good faith with respect to the Plan or any Award or Award
      Agreement.

     

    
      	 	
              3.5.

            	
              Share
                Issuance/Book-Entry

            

    

     

    Notwithstanding
      any provision of this Plan to the contrary, the issuance of the Stock under
      the
      Plan may be evidenced in such a manner as the Board, in its discretion, deems
      appropriate, including, without limitation, book-entry registration or issuance
      of one or more Stock certificates.

     

    4. STOCK
      SUBJECT TO THE PLAN 

     

    
      	 	
              4.1.

            	
              Number
                of Shares Available for
                Awards

            

    

     

    Subject
      to adjustment as provided in Section 17
      hereof,
      the number of shares of Stock available for issuance under the Plan shall be
      two
      million seven hundred thousand (2,700,000).
      Stock
      issued or to be issued under the Plan shall be authorized but unissued shares;
      or,
      to
      the extent permitted by applicable law, issued shares that have been reacquired
      by the Company.
      

     

    
      	 	
              4.2.

            	
              Adjustments
                in Authorized Shares

            

    

     

    The
      Board
      shall have the right to substitute or assume Awards in connection with mergers,
      reorganizations, separations, or other transactions to which Section 424(a)
      of
      the Code applies. The number of shares of Stock reserved pursuant to
Section
      4
      shall be
      increased by the corresponding number of Awards assumed and, in the case of
      a
      substitution, by the net increase in the number of shares of Stock subject
      to
      Awards before and after the substitution.

     

    
      	 	
              4.3.

            	
              Share
                Usage

            

    

     

    Shares
      covered by an Award shall be counted as used as of the Grant Date. If any shares
      covered by an Award are not purchased or are forfeited or expire, or if an
      Award
      otherwise terminates without delivery of any Stock subject thereto or is settled
      in cash in lieu of shares, then the number of shares of Stock counted against
      the aggregate number of shares available under the Plan with respect to such
      Award shall, to the extent of any such forfeiture, termination or expiration,
      again be available for making Awards under the Plan. Furthermore,
      the number of shares subject to an award of SARs will be counted against the
      aggregate number of shares available for issuance under the Plan regardless
      of
      the number of shares actually issued to settle the SAR upon
      exercise.

    
 

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    5. EFFECTIVE
      DATE, DURATION AND AMENDMENTS

     

    
      	 	
              5.1.

            	
              Effective
                Date. 

            

    

     

    The
      Plan
      shall be effective as of the Effective Date, subject to approval of the
      Plan
      by the
      Company’s stockholders within
      one year of the Effective Date. Upon approval of the Plan by the stockholders
      of
      the Company as set forth above, all Awards made under the Plan on or after
      the
      Effective Date shall be fully effective as if the stockholders of the Company
      had approved the Plan on the Effective Date. If the stockholders fail to approve
      the Plan within one year of the Effective Date, any Awards made hereunder shall
      be null and void and of no effect.

     

    
      	 	
              5.2.

            	
              Term. 

            

    

     

    The
      Plan
      shall terminate automatically ten (10) years after its adoption by the Board
      and
      may be terminated on any earlier date as provided in Section 5.3.

     

    
      	 	
              5.3.

            	
              Amendment
                and Termination of the
                Plan

            

    

     

    The
      Board
      may, at any time and from time to time, amend, suspend, or terminate the Plan
      as
      to any shares of Stock as to which Awards have not been made. An amendment
      shall
      be contingent on approval of the Company’s stockholders to the extent stated by
      the Board, required by applicable law or required by applicable stock exchange
      listing requirements. No Awards shall be made after termination of the Plan.
      No
      amendment, suspension, or termination of the Plan shall, without the consent
      of
      the Grantee, impair rights or obligations under any Award theretofore awarded
      under the Plan.

     

    6. AWARD
      ELIGIBILITY AND LIMITATIONS

     

    
      	 	
              6.1.

            	
              Service
                Providers and Other
                Persons

            

    

     

    Subject
      to this Section
      6,
      Awards
      may be made under the Plan to: (i) any Service
      Provider to the Company or of any Affiliate, including any Service Provider
      who
      is an officer or director of the Company, or of any Affiliate, as the Board
      shall determine and designate from time to time and (ii) any other individual
      whose participation in the Plan is determined to be in the best interests of
      the
      Company by the Board.
      

     

    
      	 	
              6.2.

            	
              Successive
                Awards and Substitute Awards. 

            

    

     

    An
      eligible person may receive more than one Award, subject to such restrictions
      as
      are provided herein. Notwithstanding Sections
      8.1
      and
9.1,
      the
      Option Price of an Option or the grant price of an SAR that is a Substitute
      Award may be less than 100% of the Fair Market Value of a share of Common Stock
      on the original date of grant; provided, that, the Option Price or grant price
      is determined in accordance with the principles of Code Section 424 and the
      regulations thereunder.

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    
      	 	
              6.3.

            	
              Limitation
                on Shares of Stock Subject to Awards and Cash Awards. 

            

    

     

    During
      any time when the Company has a class of equity security registered under
      Section 12 of the Exchange Act:

    

    (i)
      the
      maximum number of shares of Stock subject to Options or SARs that can be awarded
      under the Plan to any person eligible for an Award under Section
      6
      hereof
      is one million (1,000,000) per calendar year; 

    (ii)
      the
      maximum number of shares that can be awarded under the Plan, other than pursuant
      to an Option or SARs, to any person eligible for an Award under Section
      6
      hereof
      is one million (1,000,000) per calendar year; and

    (iii)
      the
      maximum amount that may be earned as an Annual Incentive Award or other cash
      Award in any calendar year by any one Grantee shall be $500,000 and the maximum
      amount that may be earned as a Performance Award or other cash Award in respect
      of a performance period by any one Grantee shall be $500,000. 

    

    The
      preceding limitations in this Section
      6.3
      are
      subject
      to
      adjustment as provided in Section
      17
      hereof.

     

    7. AWARD
      AGREEMENT

     

    Each
      Award granted pursuant to the Plan shall be evidenced by an Award Agreement,
      in
      such form or forms as the Board shall from time to time determine. Award
      Agreements granted from time to time or at the same time need not contain
      similar provisions but shall be consistent with the terms of the Plan. Each
      Award Agreement evidencing an Award of Options shall specify whether such
      Options are intended to be Non-qualified Stock Options or Incentive Stock
      Options, and in the absence of such specification such options shall be deemed
      Non-qualified Stock Options.

     

    8. TERMS
      AND CONDITIONS OF OPTIONS

     

    
      	 	
              8.1.

            	
              Option
                Price

            

    

     

    The
      Option Price of each Option shall be fixed by the Board and stated in the Award
      Agreement evidencing such Option. The Option Price of each Option shall be
      at least the
      Fair
      Market Value on the Grant Date of a share of Stock; provided,
      however,
      that in
      the event that a Grantee is a Ten Percent Stockholder, the Option Price of
      an
      Option granted to such Grantee that is intended to be an Incentive Stock Option
      shall be not less than 110 percent of the Fair Market Value of a share of Stock
      on the Grant Date. In no case shall the Option Price of any Option be less
      than
      the par value of a share of Stock. 

     

    
      	 	
              8.2.

            	
              Vesting.

            

    

     

    Subject
      to Sections
      8.3
      and 17.3
      hereof,
each
      Option granted under the Plan shall become exercisable at such times and under
      such conditions as shall be determined by the Board and stated in the Award
      Agreement. For purposes of this Section 8.2,
      fractional numbers of shares of Stock subject to an Option shall be rounded
      down
      to the next nearest whole number. 

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

    
      	 	
              8.3.

            	
              Term. 

            

    

     

    Each
      Option granted under the Plan shall terminate, and all rights to purchase shares
      of Stock thereunder shall cease, upon the expiration of ten years from the
      date
      such Option is granted, or under such circumstances and on such date prior
      thereto as is set forth in the Plan or as may be fixed by the Board and stated
      in the Award Agreement relating to such Option; provided,
      however,
      that in
      the event that the Grantee is a Ten Percent Stockholder, an Option granted
      to
      such Grantee that is intended to be an Incentive Stock Option shall not be
      exercisable after the expiration of five years from its Grant Date.

     

    
      	 	
              8.4.

            	
              Termination
                of Service. 

            

    

     

    Each
      Award Agreement shall set forth the extent to which the Grantee shall have
      the
      right to exercise the Option following termination of the Grantee’s Service.
      Such provisions shall be determined in the sole discretion of the Board, need
      not be uniform among all Options issued pursuant to the Plan, and may reflect
      distinctions based on the reasons for termination of Service. 

     

    
      	 	
              8.5.

            	
              Limitations
                on Exercise of Option. 

            

    

     

    Notwithstanding
      any other provision of the Plan, in no event may any Option be exercised, in
      whole or in part, prior to the date the Plan is approved by the stockholders
      of
      the Company as provided herein or after the occurrence of an event referred
      to
      in Section 17
      hereof
      which results in termination of the Option. 

     

    
      	 	
              8.6.

            	
              Method
                of Exercise. 

            

    

     

    An
      Option
      that is exercisable may be exercised by the Grantee’s delivery to the Company of
      written notice of exercise on any business day, at the Company’s principal
      office, on the form specified by the Company. Such notice shall specify the
      number of shares of Stock with respect to which the Option is being exercised
      and shall be accompanied by payment in full of the Option Price of the shares
      for which the Option is being exercised plus the amount (if any) of federal
      and/or other taxes which the Company may, in its judgment, be required to
      withhold with respect to an Award. 

     

    
      	 	
              8.7.

            	
              Rights
                of Holders of Options

            

    

     

    Unless
      otherwise stated in the applicable Award Agreement, an individual holding or
      exercising an Option shall have none of the rights of a stockholder (for
      example, the right to receive cash or dividend payments or distributions
      attributable to the subject shares of Stock or to direct the voting of the
      subject shares of Stock ) until the shares of Stock covered thereby are fully
      paid and issued to him. Except as provided in Section 17
      hereof,
      no adjustment shall be made for dividends, distributions or other rights for
      which the record date is prior to the date of such issuance.

     

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

     

    
      	 	
              8.8.

            	
              Delivery
                of Stock Certificates. 

            

    

     

    Promptly
      after the exercise of an Option by a Grantee and the payment in full of the
      Option Price, such Grantee shall be entitled to the issuance of a stock
      certificate or certificates evidencing his or her ownership of the shares of
      Stock subject to the Option. 

     

    
      	 	
              8.9.

            	
              Transferability
                of Options

            

    

     

    Except
      as
      provided in Section
      8.10,
      during
      the lifetime of a Grantee, only the Grantee (or, in the event of legal
      incapacity or incompetency, the Grantee's guardian or legal representative)
      may
      exercise an Option. Except as provided in Section
      8.10,
      no
      Option shall be assignable or transferable by the Grantee to whom it is granted,
      other than by will or the laws of descent and distribution.

     

    
      	 	
              8.10.

            	
              Family
                Transfers. 

            

    

     

    If
      authorized in the applicable Award Agreement, a Grantee may transfer, not for
      value, all or part of an Option which is not an Incentive Stock Option to any
      Family Member. For the purpose of this Section
      8.10,
      a “not
      for value” transfer is a transfer which is (i) a gift, (ii) a transfer under a
      domestic relations order in settlement of marital property rights; or (iii)
      a
      transfer to an entity in which more than fifty percent of the voting interests
      are owned by Family Members (or the Grantee) in exchange for an interest in
      that
      entity. Following a transfer under this Section
      8.10,
      any
      such Option shall continue to be subject to the same terms and conditions as
      were applicable immediately prior to transfer. Subsequent transfers of
      transferred Options are prohibited except to Family Members of the original
      Grantee in accordance with this Section 8.10
      or by
      will or the laws of descent and distribution. The events of termination of
      Service of Section
      8.4
      hereof
      shall continue to be applied with respect to the original Grantee, following
      which the Option shall be exercisable by the transferee only to the extent,
      and
      for the periods specified, in Section
      8.4.
      

     

    
      	 	
              8.11.

            	
              Limitations
                on Incentive Stock Options. 

            

    

     

    An
      Option
      shall constitute an Incentive Stock Option only (i) if the Grantee of such
      Option is an employee of the Company or any Subsidiary of the Company; (ii)
      to
      the extent specifically provided in the related Award Agreement; and (iii)
      to
      the extent that the aggregate Fair Market Value (determined at the time the
      Option is granted) of the shares of Stock with respect to which all Incentive
      Stock Options held by such Grantee become exercisable for the first time during
      any calendar year (under the Plan and all other plans of the Grantee’s employer
      and its Affiliates) does not exceed $100,000. This limitation shall be applied
      by taking Options into account in the order in which they were granted.

    

     

    
      	 	
              8.12.

            	
              Notice
                of Disqualifying
                Disposition

            

    

     

    If
      any
      Grantee shall make any disposition of shares of Stock issued pursuant to the
      exercise of an Incentive Stock Option under the circumstances described in
      Code
      Section 421(b) (relating to certain disqualifying dispositions), such Grantee
      shall notify the Company of such disposition within ten (10) days
      thereof.

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

     

    9. TERMS
      AND CONDITIONS OF STOCK APPRECIATION RIGHTS

     

    
      	 	
              9.1.

            	
              Right
                to Payment and Grant
                Price.

            

    

     

    A
      SAR
      shall confer on the Grantee to whom it is granted a right to receive, upon
      exercise thereof, the excess of (A) the Fair Market Value of one share of Stock
      on the date of exercise over (B) the grant price of the SAR as determined by
      the
      Board. The
      Award
      Agreement for a SAR shall specify the grant price of the SAR, which shall be
      at
      least the Fair Market Value of a share of Stock on the date of grant.
SARs
      may
      be granted in conjunction with all or part of an Option granted under the Plan
      or at any subsequent time during the term of such Option, in conjunction with
      all or part of any other Award or without regard to any Option or other Award;
      provided that an SAR that is granted subsequent to the Grant Date of a related
      Option must have an SAR Price that is no less than the Fair Market Value of
      one
      share of Stock on the SAR Grant Date. 

     

    
      	 	
              9.2.

            	
              Other
                Terms. 

            

    

     

    The
      Board
      shall determine at the date of grant or thereafter, the time or times at which
      and the circumstances under which an SAR may be exercised in whole or in part
      (including based on achievement of performance goals and/or future service
      requirements), the time or times at which SARs shall cease to be or become
      exercisable following termination of Service or upon other conditions, the
      method of exercise, method of settlement, form of consideration payable in
      settlement, method by or forms in which Stock will be delivered or deemed to
      be
      delivered to Grantees, whether or not an SAR shall be in tandem or in
      combination with any other Award, and any other terms and conditions of any
      SAR.

     

    
      	 	
              9.3.

            	
              Term. 

            

    

     

    Each
      SAR
      granted under the Plan shall terminate, and all rights thereunder shall cease,
      upon the expiration of ten years from the date such SAR is granted, or under
      such circumstances and on such date prior thereto as is set forth in the Plan
      or
      as may be fixed by the Board and stated in the Award Agreement relating to
      such
      SAR. 

     

    
      	 	
              9.4.

            	
              Transferability
                of SARS

            

    

     

    Except
      as
      provided in Section
      9.5,
      during
      the lifetime of a Grantee, only the Grantee (or, in the event of legal
      incapacity or incompetency, the Grantee's guardian or legal representative)
      may
      exercise a SAR. Except as provided in Section
      9.5,
      no SAR
      shall be assignable or transferable by the Grantee to whom it is granted, other
      than by will or the laws of descent and distribution.

     

    
      	 	
              9.5.

            	
              Family
                Transfers. 

            

    

     

    If
      authorized in the applicable Award Agreement, a Grantee may transfer, not for
      value, all or part of a SAR to any Family Member. For the purpose of this
Section
      9.5,
      a “not
      for value” transfer is a transfer which is (i) a gift, (ii) a transfer under a
      domestic relations order in settlement of marital property rights; or (iii)
      a
      transfer to an entity in which more than fifty percent of the voting interests
      are owned by Family Members (or the Grantee) in exchange for an interest in
      that
      entity. Following a transfer under this Section
      9.5,
      any
      such SAR shall continue to be subject to the same terms and conditions as were
      applicable immediately prior to transfer. Subsequent transfers of transferred
      SARs are prohibited except to Family Members of the original Grantee in
      accordance with this Section 9.5
      or by
      will or the laws of descent and distribution.

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

     

    10. TERMS
      AND CONDITIONS OF RESTRICTED STOCK
      AND STOCK UNITS

     

    
      	 	
              10.1.

            	
              Grant
                of Restricted Stock or Stock Units. 

            

    

     

    Awards
      of
      Restricted Stock or Stock Units may be made for no consideration (other than
      par
      value of the shares which is deemed paid by Services already rendered).

     

    
      	 	
              10.2.

            	
              Restrictions. 

            

    

     

    At
      the
      time a grant of Restricted Stock or Stock Units is made, the Board may, in
      its
      sole discretion, establish a period of time (a “restricted period”) applicable
      to such Restricted Stock or Stock Units. Each Award of Restricted Stock or
      Stock
      Units may be subject to a different restricted period. The Board may, in its
      sole discretion, at the time a grant of Restricted Stock or Stock Units is
      made,
      prescribe restrictions in addition to or other than the expiration of the
      restricted period, including the satisfaction of corporate or individual
      performance objectives, which may be applicable to all or any portion of the
      Restricted Stock or Stock Units as described in Article
      14.
      Neither
      Restricted Stock nor Stock Units may be sold, transferred, assigned, pledged
      or
      otherwise encumbered or disposed of during the restricted period or prior to
      the
      satisfaction of any other restrictions prescribed by the Board with respect
      to
      such Restricted Stock or Stock Units. 

     

    
      	 	
              10.3.

            	
              Restricted
                Stock Certificates. 

            

    

     

    The
      Company shall issue, in the name of each Grantee to whom Restricted Stock has
      been granted, stock certificates representing the total number of shares of
      Restricted Stock granted to the Grantee, as soon as reasonably practicable
      after
      the Grant Date. The Board may provide in an Award Agreement that either (i)
      the
      Secretary of the Company shall hold such certificates for the Grantee’s benefit
      until such time as the Restricted Stock is forfeited to the Company or the
      restrictions lapse, or (ii) such certificates shall be delivered to the Grantee,
      provided,
      however,
      that
      such certificates shall bear a legend or legends that comply with the applicable
      securities laws and regulations and makes appropriate reference to the
      restrictions imposed under the Plan and the Award Agreement. 

     

    
      	 	
              10.4.

            	
              Rights
                of Holders of Restricted Stock. 

            

    

     

    Unless
      the Board otherwise provides in an Award Agreement, holders of Restricted Stock
      shall have the right to vote such Stock and the right to receive any dividends
      declared or paid with respect to such Stock. The Board may provide that any
      dividends paid on Restricted Stock must be reinvested in shares of Stock, which
      may or may not be subject to the same vesting conditions and restrictions
      applicable to such Restricted Stock. All distributions, if any, received by
      a
      Grantee with respect to Restricted Stock as a result of any stock split, stock
      dividend, combination of shares, or other similar transaction shall be subject
      to the restrictions applicable to the original Grant.

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

     

    
      	 	
              10.5.

            	
              Rights
                of Holders of Stock Units. 

            

    

     

    
      	 	
              10.5.1.

            	
               Voting
                and Dividend Rights.

            

    

     

    Holders
      of Stock Units shall have no rights as stockholders of the Company. The Board
      may provide in an Award Agreement evidencing a grant of Stock Units that the
      holder of such Stock Units shall be entitled to receive, upon the Company’s
      payment of a cash dividend on its outstanding Stock, a cash payment for each
      Stock Unit held equal to the per-share dividend paid on the Stock. Such Award
      Agreement may also provide that such cash payment will be deemed reinvested
      in
      additional Stock Units at a price per unit equal to the Fair Market Value of
      a
      share of Stock on the date that such dividend is paid. 

    

    
      	 	
              10.5.2.

            	
               Creditor’s
                Rights.

            

    

     

    A
      holder
      of Stock Units shall have no rights other than those of a general creditor
      of
      the Company. Stock Units represent an unfunded and unsecured obligation of
      the
      Company, subject to the terms and conditions of the applicable Award
      Agreement.

     

    
      	 	
              10.6.

            	
              Termination
                of Service. 

            

    

     

    Unless
      the Board otherwise provides in an Award Agreement or
      in
      writing after the Award Agreement is issued,
      upon the
      termination of a Grantee’s Service, any Restricted Stock or Stock Units held by
      such Grantee that have not vested, or with respect to which all applicable
      restrictions and conditions have not lapsed, shall immediately be deemed
      forfeited. Upon forfeiture of Restricted Stock or Stock Units, the Grantee
      shall
      have no further rights with respect to such Award, including but not limited
      to
      any right to vote Restricted Stock or any right to receive dividends with
      respect to shares of Restricted Stock or Stock Units. 

     

    
      	 	
              10.7.

            	
              Purchase
                of Restricted Stock.

            

    

     

    The
      Grantee shall be required, to the extent required by applicable law, to purchase
      the Restricted Stock from the Company at a Purchase Price equal to the greater
      of (i) the aggregate par value of the shares of Stock represented by such
      Restricted Stock or (ii) the Purchase Price, if any, specified in the Award
      Agreement relating to such Restricted Stock. The Purchase Price shall be payable
      in a form described in Section
      12 or,
      in
      the discretion of the Board, in consideration for past Services rendered to
      the
      Company or an Affiliate.

     

    
      	 	
              10.8.

            	
              Delivery
                of Stock. 

            

    

     

    Upon
      the
      expiration or termination of any restricted period and the satisfaction of
      any
      other conditions prescribed by the Board, the restrictions applicable to shares
      of Restricted Stock or Stock Units settled in Stock shall lapse, and, unless
      otherwise provided in the Award Agreement, a stock certificate for such shares
      shall be delivered, free of all such restrictions, to the Grantee or the
      Grantee’s beneficiary or estate, as the case may be. Neither the Grantee, nor
      the Grantee’s beneficiary or estate, shall have any further rights with regard
      to a Stock Unit once the share of Stock represented by the Stock Unit has been
      delivered.

     

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

     

    11. TERMS
      AND CONDITIONS OF UNRESTRICTED STOCK AWARDS

     

    The
      Board
      may, in its sole discretion, grant (or sell at par value or such other higher
      purchase price determined by the Board) an Unrestricted Stock Award to any
      Grantee pursuant to which such Grantee may receive shares of Stock free of
      any
      restrictions (“Unrestricted Stock”) under the Plan. Unrestricted Stock Awards
      may be granted or sold as described in the preceding sentence in respect of
      past
      services and other valid consideration, or in lieu of, or in addition to, any
      cash compensation due to such Grantee.

     

    12. FORM
      OF PAYMENT
      FOR OPTIONS AND RESTRICTED STOCK

     

    
      	 	
              12.1.

            	
              General
                Rule.

            

    

     

    Payment
      of the Option Price for the shares purchased pursuant to the exercise of an
      Option or the Purchase Price for Restricted Stock shall be made in cash or
      in
      cash equivalents acceptable to the Company.

     

    
      	 	
              12.2.

            	
              Surrender
                of Stock.

            

    

     

    To
      the
      extent the Award Agreement so provides, payment of the Option Price for shares
      purchased pursuant to the exercise of an Option or the Purchase Price for
      Restricted Stock may be made all or in part through the tender to the Company
      of
      shares of Stock, which shall be valued, for purposes of determining the extent
      to which the Option Price or Purchase Price has been paid thereby, at their
      Fair
      Market Value on the date of exercise or surrender.

     

    
      	 	
              12.3.

            	
              Cashless
                Exercise.

            

    

     

    With
      respect to an Option only (and not with respect to Restricted Stock), to the
      extent permitted by law and to the extent the Award Agreement so provides,
      payment of the Option Price for shares purchased pursuant to the exercise of
      an
      Option may be made all or in part by delivery (on a form acceptable to the
      Board) of an irrevocable direction to a licensed securities broker acceptable
      to
      the Company to sell shares of Stock and to deliver all or part of the sales
      proceeds to the Company in payment of the Option Price and any withholding
      taxes
      described in Section 18.3.

     

    
      	 	
              12.4.

            	
              Other
                Forms of Payment.

            

    

     

    To
      the
      extent the Award Agreement so provides, payment of the Option Price for shares
      purchased pursuant to exercise of an Option or the Purchase Price for Restricted
      Stock may be made in any other form that is consistent with applicable laws,
      regulations and rules.

     

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

     

    13. TERMS
      AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS

     

    
      	 	
              13.1.

            	
              Dividend
                Equivalent Rights. 

            

    

     

    A
      Dividend Equivalent Right is an Award entitling the recipient to receive credits
      based on cash distributions that would have been paid on the shares of Stock
      specified in the Dividend Equivalent Right (or other award to which it relates)
      if such shares had been issued to and held by the recipient. A Dividend
      Equivalent Right may be granted hereunder to any Grantee. The terms and
      conditions of Dividend Equivalent Rights shall be specified in the grant.
      Dividend equivalents credited to the holder of a Dividend Equivalent Right
      may
      be paid currently or may be deemed to be reinvested in additional shares of
      Stock, which may thereafter accrue additional equivalents. Any such reinvestment
      shall be at Fair Market Value on the date of reinvestment. Dividend Equivalent
      Rights may be settled in cash or Stock or a combination thereof, in a single
      installment or installments, all determined in the sole discretion of the Board.
      A Dividend Equivalent Right granted as a component of another Award may provide
      that such Dividend Equivalent Right shall be settled upon exercise, settlement,
      or payment of, or lapse of restrictions on, such other award, and that such
      Dividend Equivalent Right shall expire or be forfeited or annulled under the
      same conditions as such other award. A Dividend Equivalent Right granted as
      a
      component of another Award may also contain terms and conditions different
      from
      such other award.

     

    
      	 	
              13.2.

            	
              Termination
                of Service. 

            

    

     

    Except
      as
      may otherwise be provided by the Board either in the Award Agreement or in
      writing after the Award Agreement is issued, a Grantee’s rights in all Dividend
      Equivalent Rights or interest equivalents shall automatically terminate upon
      the
      Grantee’s termination of Service for any reason.

     

    
      	14.	
              TERMS
                AND CONDITIONS OF PERFORMANCE SHARES, PERFORMANCE UNITS, PERFORMANCE
                AWARDS AND ANNUAL INCENTIVE
                AWARDS

            

    

     

    
      	 	
              14.1.

            	
              Grant
                of Performance Units/Performance Shares. 

            

    

     

    Subject
      to the terms and provisions of this Plan, the Board, at any time and from time
      to time, may grant Performance Units and/or Performance Shares to Participants
      in such amounts and upon such terms as the Committee shall
      determine.

     

    
      	 	
              14.2.

            	
               Value
                of Performance Units/Performance Shares. 

            

    

     

      Each
      Performance Unit shall have an initial value that is established by the Board
      at
      the time of grant. Each Performance Share shall have an initial value equal
      to
      the Fair Market Value of a Share on the date of grant. The Board shall set
      performance goals in its discretion which, depending on the extent to which
      they
      are met, will determine the value and/or number of Performance Units/Performance
      Shares that will be paid out to the Participant. 

     

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

     

    
      	 	
              14.3.

            	
              Earning
                of Performance Units/Performance Shares. 

            

    

     

    Subject
      to the terms of this Plan, after the applicable Performance Period has ended,
      the holder of Performance Units/Performance Shares shall be entitled to receive
      payout on the value and number of Performance Units/Performance Shares earned
      by
      the Participant over the Performance Period, to be determined as a function
      of
      the extent to which the corresponding performance goals have been achieved.
      

     

    
      	 	
              14.4.

            	
               Form
                and Timing of Payment of Performance Units/Performance
                Shares. 

            

    

     

    Payment
      of earned Performance Units/Performance Shares shall be as determined by the
      Board and as evidenced in the Award Agreement. Subject to the terms of this
      Plan, the Board, in its sole discretion, may pay earned Performance
      Units/Performance Shares in the form of cash or in shares (or in a combination
      thereof) equal to the value of the earned Performance Units/Performance Shares
      at the close of the applicable Performance Period, or as soon as practicable
      after the end of the Performance Period. Any Shares may be granted subject
      to
      any restrictions deemed appropriate by the Committee. The determination of
      the
      Committee with respect to the form of payout of such Awards shall be set forth
      in the Award Agreement pertaining to the grant of the Award. 

     

    
      	 	
              14.5.

            	
              Performance
                Conditions.

            

    

     

    The
      right
      of a Grantee to exercise or receive a grant or settlement of any Award, and
      the
      timing thereof, may be subject to such performance conditions as may be
      specified by the Board. The Board may use such business criteria and other
      measures of performance as it may deem appropriate in establishing any
      performance conditions. If and to the extent required under Code Section 162(m),
      any power or authority relating to an Award intended to qualify under Code
      Section 162(m), shall be exercised by the Committee and not the
      Board.

     

    
      	 	
              14.6.

            	
              Performance
                Awards or Annual Incentive Awards Granted to Designated Covered
                Employees.

            

    

     

    If
      and to
      the extent that the Board determines that an Award to be granted to a Grantee
      who is designated by the Committee as likely to be a Covered Employee should
      qualify as “performance-based compensation” for purposes of Code Section 162(m),
      the grant, exercise and/or settlement of such Award shall be contingent upon
      achievement of pre-established performance goals and other terms set forth
      in
      this Section
      14.6.

     

    
      	 	
              14.6.1.

            	
               Performance
                Goals Generally.

            

    

     

    The
      performance goals for such Awards shall consist of one or more business criteria
      and a targeted level or levels of performance with respect to each of such
      criteria, as specified by the Committee consistent with this Section
      14.6.
      Performance
      goals
      shall be objective and shall otherwise meet the requirements of Code Section
      162(m) and regulations thereunder including the requirement that the level
      or
      levels of performance targeted by the Committee result in the achievement of
      performance goals being “substantially uncertain.” The Committee may determine
      that such Awards shall be granted, exercised and/or settled upon achievement
      of
      any one performance goal or that two or more of the performance goals must
      be
      achieved as a condition to grant, exercise and/or settlement of such Awards.
      Performance goals may differ for Awards granted to any one Grantee or to
      different Grantees.

     

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

    

    
      	 	
              14.6.2.

            	
              Timing
                For Establishing Performance Goals. 

            

    

     

    Performance
      goals shall be established not later than 90 days after the beginning of any
      performance period applicable to such Awards, or at such other date as may
      be
      required or permitted for “performance-based compensation” under Code Section
      162(m).

    

    
      	 	
              14.6.3.

            	
              Settlement
                of Awards; Other Terms.

            

    

     

    Settlement
      of such Awards shall be in cash, Stock, other Awards or other property, in
      the
      discretion of the Committee. The Committee may, in its discretion, reduce the
      amount of a settlement otherwise to be made in connection with such Awards.
      The
      Committee shall specify the circumstances in which such Performance or Annual
      Incentive Awards shall be paid or forfeited in the event of termination of
      Service by the Grantee prior to the end of a performance period or settlement
      of
      Awards.

     

    
      	 	
              14.6.4.

            	
              Performance
                Measures. 

            

    

     

       The
      performance goals upon which the payment or vesting of an Award to a Covered
      Employee that is intended to qualify as Performance-Based Compensation shall
      be
      limited to the following Performance Measures: 

     

    (a)
      net
      earnings or net income; 

     

    (b)
      operating earnings;

     

    (c)
      pretax earnings;

     

    (d)
      earnings per share; 

     

    (e)
      share
      price, including growth measures and total stockholder return;

     

    (f)
      earnings before interest and taxes;

     

    
      
         

      

      
        -19-

        
          

        

      

      
         

      

    

     

    (g)
      earnings before interest, taxes, depreciation and/or amortization;

     

    (h)
      sales
      or revenue growth, whether in general, by type of product or service, or by
      type
      of customer; 

     

    (i)
      gross
      or operating margins; 

     

    (j)
      return measures, including return on assets, capital, investment, equity, sales
      or revenue;

     

    (k)
      cash
      flow, including operating cash flow, free cash flow, cash flow return on equity
      and cash flow return on investment;

     

    (l)
      productivity ratios; 

     

    (m)
      expense targets; 

     

    (n)
      market share; 

     

    (o)
      financial ratios as provided in credit agreements of the Company and its
      subsidiaries; 

     

    (p)
      working capital targets;

     

    (q)
      completion of acquisitions of business or companies;

     

    (r)
      completion of divestitures and asset sales; 

     

    (s)
      achievement of specific project and business development milestones;

     

    (t)
      achievement of capital raising targets; 

     

    (u)
      achievement of specific legislative or regulatory objectives regarding tax
      incentives or other government policies; and

     

    (t)
      any
      combination of any of the foregoing business criteria. 

     

    Any
      Performance Measure(s) may be used to measure the performance of the Company,
      Subsidiary, and/or Affiliate as a whole or any business unit of the Company,
      Subsidiary, and/or Affiliate or any combination thereof, as the Committee may
      deem appropriate, or any of the above Performance Measures as compared to the
      performance of a group of comparator companies, or published or special index
      that the Committee, in its sole discretion, deems appropriate, or the Company
      may select Performance Measure (f) above as compared to various stock
      market indices. The Committee also has the authority to provide for accelerated
      vesting of any Award based on the achievement of performance goals pursuant
      to
      the Performance Measures specified in this Section
      14.
      

     

    
      
         

      

      
        -20-

        
          

        

      

      
         

      

    

     

    
      	 	
              14.6.5.

            	
              Evaluation
                of Performance. 

            

    

     

     The
      Committee may provide in any such Award that any evaluation of performance
      may
      include or exclude any of the following events that occur during a Performance
      Period: (a) asset write-downs; (b) litigation or claim judgments or
      settlements; (c) the effect of changes in tax laws, accounting principles,
      or other laws or provisions affecting reported results; (d) any
      reorganization and restructuring programs; (e) extraordinary nonrecurring
      items as described in Accounting Principles Board Opinion No. 30 and/or in
      management’s discussion and analysis of financial condition and results of
      operations appearing in the Company’s annual report to shareholders for the
      applicable year; (f) acquisitions or divestitures; and (g) foreign
      exchange gains and losses. To the extent such inclusions or exclusions affect
      Awards to Covered Employees, they shall be prescribed in a form that meets
      the
      requirements of Code Section 162(m) for deductibility. 

     

    
      	 	
              14.6.6.

            	
              Adjustment
                of Performance-Based Compensation.  

            

    

     

    Awards
      that are intended to qualify as Performance-Based Compensation may not be
      adjusted upward. The Board shall retain the discretion to adjust such Awards
      downward, either on a formula or discretionary basis, or any combination as
      the
      Committee determines. 

     

    
      	 	
              14.6.7.

            	
              Board
                Discretion.  

            

    

     

    In
      the
      event that applicable tax and/or securities laws change to permit Board
      discretion to alter the governing Performance Measures without obtaining
      shareholder approval of such changes, the Board shall have sole discretion
      to
      make such changes without obtaining shareholder approval provided the exercise
      of such discretion does not violate Code Section 409A. In addition, in the
      event that the Committee determines that it is advisable to grant Awards that
      shall not qualify as Performance-Based Compensation, the Committee may make
      such
      grants without satisfying the requirements of Code Section 162(m) and base
      vesting on Performance Measures other than those set forth in Section 14.6.4.
      

     

    
      	 	
              14.7.

            	
              Status
                of Section Awards Under Code Section
                162(m).

            

    

     

    It
      is the
      intent of the Company that Awards under Section
      14.6
      hereof
      granted to persons who are designated by the Committee as likely to be Covered
      Employees within the meaning of Code Section 162(m) and regulations thereunder
      shall, if so designated by the Committee, constitute “qualified
      performance-based compensation” within the meaning of Code Section 162(m) and
      regulations thereunder. Accordingly, the terms of Section
      14.6,
      including the definitions of Covered Employee and other terms used therein,
      shall be interpreted in a manner consistent with Code Section 162(m) and
      regulations thereunder. The foregoing notwithstanding, because the Committee
      cannot determine with certainty whether a given Grantee will be a Covered
      Employee with respect to a fiscal year that has not yet been completed, the
      term
      Covered Employee as used herein shall mean only a person designated by the
      Committee, at the time of grant of an Award, as likely to be a Covered Employee
      with respect to that fiscal year. If any provision of the Plan or any agreement
      relating to such Awards does not comply or is inconsistent with the requirements
      of Code Section 162(m) or regulations thereunder, such provision shall be
      construed or deemed amended to the extent necessary to conform to such
      requirements.

     

    
      
         

      

      
        -21-

        
          

        

      

      
         

      

    

     

    15. PARACHUTE
      LIMITATIONS

     

    Notwithstanding
      any other provision of this Plan or of any other agreement, contract, or
      understanding heretofore or hereafter entered into by a Grantee with the Company
      or any Affiliate, except an agreement, contract, or understanding that expressly
      addresses Section 280G or Section 4999 of the Code (an “Other Agreement”), and
      notwithstanding any formal or informal plan or other arrangement for the direct
      or indirect provision of compensation to the Grantee (including groups or
      classes of Grantees or beneficiaries of which the Grantee is a member), whether
      or not such compensation is deferred, is in cash, or is in the form of a benefit
      to or for the Grantee (a “Benefit Arrangement”), if the Grantee is a
“disqualified individual,” as defined in Section 280G(c) of the Code, any
      Option, Restricted Stock, Stock Unit, Performance Share or Performance Unit
      held
      by that Grantee and any right to receive any payment or other benefit under
      this
      Plan shall not become exercisable or vested (i) to the extent that such
      right to exercise, vesting, payment, or benefit, taking into account all other
      rights, payments, or benefits to or for the Grantee under this Plan, all Other
      Agreements, and all Benefit Arrangements, would cause any payment or benefit
      to
      the Grantee under this Plan to be considered a “parachute payment” within the
      meaning of Section 280G(b)(2) of the Code as then in effect (a “Parachute
      Payment”) and
      (ii) if, as a result of receiving a Parachute Payment, the aggregate
      after-tax amounts received by the Grantee from the Company under this Plan,
      all
      Other Agreements, and all Benefit Arrangements would be less than the maximum
      after-tax amount that could be received by the Grantee without causing any
      such
      payment or benefit to be considered a Parachute Payment. In the event that
      the
      receipt of any such right to exercise, vesting, payment, or benefit under this
      Plan, in conjunction with all other rights, payments, or benefits to or for
      the
      Grantee under any Other Agreement or any Benefit Arrangement would cause the
      Grantee to be considered to have received a Parachute Payment under this Plan
      that would have the effect of decreasing the after-tax amount received by the
      Grantee as described in clause (ii) of the preceding sentence, then the
      Grantee shall have the right, in the Grantee’s sole discretion, to designate
      those rights, payments, or benefits under this Plan, any Other Agreements,
      and
      any Benefit Arrangements that should be reduced or eliminated so as to avoid
      having the payment or benefit to the Grantee under this Plan be deemed to be
      a
      Parachute Payment.

     

    16. REQUIREMENTS
      OF LAW

     

    
      	 	
              16.1.

            	
              General.

            

    

     

    The
      Company shall not be required to sell or issue any shares of Stock under any
      Award if the sale or issuance of such shares would constitute a violation by
      the
      Grantee, any other individual exercising an Option, or the Company of any
      provision of any law or regulation of any governmental authority, including
      without limitation any federal or state securities laws or regulations. If
      at
      any time the Company shall determine, in its discretion, that the listing,
      registration or qualification of any shares subject to an Award upon any
      securities exchange or under any governmental regulatory body is necessary
      or
      desirable as a condition of, or in connection with, the issuance or purchase
      of
      shares hereunder, no shares of Stock may be issued or sold to the Grantee or
      any
      other individual exercising an Option pursuant to such Award unless such
      listing, registration, qualification, consent or approval shall have been
      effected or obtained free of any conditions not acceptable to the Company,
      and
      any delay caused thereby shall in no way affect the date of termination of
      the
      Award. Without limiting the generality of the foregoing, in connection with
      the
      Securities Act, upon the exercise of any Option or any SAR that may be settled
      in shares of Stock or the delivery of any shares of Stock underlying an Award,
      unless a registration statement under such Act is in effect with respect to
      the
      shares of Stock covered by such Award, the Company shall not be required to
      sell
      or issue such shares unless the Board has received evidence satisfactory to
      it
      that the Grantee or any other individual exercising an Option may acquire such
      shares pursuant to an exemption from registration under the Securities Act.
      Any
      determination in this connection by the Board shall be final, binding, and
      conclusive. The Company may, but shall in no event be obligated to, register
      any
      securities covered hereby pursuant to the Securities Act. The Company shall
      not
      be obligated to take any affirmative action in order to cause the exercise
      of an
      Option or a SAR or the issuance of shares of Stock pursuant to the Plan to
      comply with any law or regulation of any governmental authority. As to any
      jurisdiction that expressly imposes the requirement that an Option (or SAR
      that
      may be settled in shares of Stock) shall not be exercisable until the shares
      of
      Stock covered by such Option (or SAR) are registered or are exempt from
      registration, the exercise of such Option (or SAR) under circumstances in which
      the laws of such jurisdiction apply shall be deemed conditioned upon the
      effectiveness of such registration or the availability of such an
      exemption.

     

    
      
         

      

      
        -22-

        
          

        

      

      
         

      

    

     

    
      	 	
              16.2.

            	
              Rule
                16b-3. 

            

    

     

    During
      any time when the Company has a class of equity security registered under
      Section 12 of the Exchange Act, it is the intent of the Company that Awards
      pursuant to the Plan and the exercise of Options and SARs granted hereunder
      will
      qualify for the exemption provided by Rule 16b-3 under the Exchange Act. To
      the
      extent that any provision of the Plan or action by the Board does not comply
      with the requirements of Rule 16b-3, it shall be deemed inoperative to the
      extent permitted by law and deemed advisable by the Board, and shall not affect
      the validity of the Plan. In the event that Rule 16b-3 is revised or replaced,
      the Board may exercise its discretion to modify this Plan in any respect
      necessary to satisfy the requirements of, or to take advantage of any features
      of, the revised exemption or its replacement.

     

    17. EFFECT
      OF CHANGES IN CAPITALIZATION 

     

    
      	 	
              17.1.

            	
              Changes
                in Stock. 

            

    

     

    If
      the
      number of outstanding shares of Stock is increased or decreased or the shares
      of
      Stock are changed into or exchanged for a different number or kind of shares
      or
      other securities of the Company on account of any recapitalization,
      reclassification, stock split, reverse split, combination of shares, exchange
      of
      shares, stock dividend or other distribution payable in capital stock, or other
      increase or decrease in such shares effected without receipt of consideration
      by
      the Company occurring after the Effective Date, the number and kinds of shares
      for which grants of Options and other Awards may be made under the Plan shall
      be
      adjusted proportionately and accordingly by the Company. In addition, the number
      and kind of shares for which Awards are outstanding shall be adjusted
      proportionately and accordingly so that the proportionate interest of the
      Grantee immediately following such event shall, to the extent practicable,
      be
      the same as immediately before such event. Any such adjustment in outstanding
      Options or SARs shall not change the aggregate Option Price or SAR Exercise
      Price payable with respect to shares that are subject to the unexercised portion
      of an outstanding Option or SAR, as applicable, but shall include a
      corresponding proportionate adjustment in the Option Price or SAR Exercise
      Price
      per share. The conversion of any convertible securities of the Company shall
      not
      be treated as an increase in shares effected without receipt of consideration.
      Notwithstanding
      the foregoing, in the event of any distribution to the Company's stockholders
      of
      securities of any other entity or other assets (including
      an extraordinary dividend but excluding a non-extraordinary dividend of the
      Company) without
      receipt of consideration by the Company, the Company shall, in such manner
      as
      the Company deems appropriate, adjust (i) the number and kind of shares subject
      to outstanding Awards and/or (ii) the exercise price of outstanding Options
      and
      Stock Appreciation Rights to reflect such distribution.

     

    
      
         

      

      
        -23-

        
          

        

      

      
         

      

    

     

    
      	 	
              17.2.

            	
              Reorganization
                in Which the Company Is the Surviving Entity Which does not Constitute
                a
                Corporate Transaction.

            

    

     

    Subject
      to Section 17.3
      hereof,
      if the Company shall be the surviving entity in any reorganization, merger,
      or
      consolidation of the Company with one or more other entities which does not
      constitute a Corporate Transaction, any Option or SAR theretofore granted
      pursuant to the Plan shall pertain to and apply to the securities to which
      a
      holder of the number of shares of Stock subject to such Option or SAR would
      have
      been entitled immediately following such reorganization, merger, or
      consolidation, with a corresponding proportionate adjustment of the Option
      Price
      or SAR Exercise Price per share so that the aggregate Option Price or SAR
      Exercise Price thereafter shall be the same as the aggregate Option Price or
      SAR
      Exercise Price of the shares remaining subject to the Option or SAR immediately
      prior to such reorganization, merger, or consolidation. Subject to any contrary
      language in an Award Agreement evidencing an Award, any restrictions applicable
      to such Award shall apply as well to any replacement shares received by the
      Grantee as a result of the reorganization, merger or consolidation. In the
      event
      of a transaction described in this Section 17.2,
      Stock
      Units shall be adjusted so as to apply to the securities that a holder of the
      number of shares of Stock subject to the Stock Units would have been entitled
      to
      receive immediately following such transaction.

     

    
      	 	
              17.3.

            	
              Corporate
                Transaction. 

            

    

     

    Subject
      to the exceptions set forth in the last sentence of this Section
      17.3
      and the
      last sentence of Section
      17.4,
      upon
      the occurrence of a Corporate Transaction: 

    

    (i)
      all
      outstanding shares of Restricted Stock shall be deemed to have vested, and
      all
      Stock Units shall be deemed to have vested and the shares of Stock subject
      thereto shall be delivered, immediately prior to the occurrence of such
      Corporate Transaction, and 

     

    
      
         

      

      
        -24-

        
          

        

      

      
         

      

    

    

    (ii)
      either of the following two actions shall be taken: 

    

    (A)
      fifteen days prior to the scheduled consummation of a Corporate Transaction,
      all
      Options and SARs outstanding hereunder shall become immediately exercisable
      and
      shall remain exercisable for a period of fifteen days, or 

    (B)
      the
      Board may elect, in its sole discretion, to cancel any outstanding Awards of
      Options, Restricted Stock, Stock Units, and/or SARs and pay or deliver, or
      cause
      to be paid or delivered, to the holder thereof an amount in cash or securities
      having a value (as determined by the Board acting in good faith), in the case
      of
      Restricted Stock or Stock Units, equal to the formula or fixed price per share
      paid to holders of shares of Stock and, in the case of Options or SARs, equal
      to
      the product of the number of shares of Stock subject to the Option or SAR (the
      “Award Shares”) multiplied by the amount, if any, by which (I) the formula or
      fixed price per share paid to holders of shares of Stock pursuant to such
      transaction exceeds (II) the Option Price or SAR Exercise Price applicable
      to
      such Award Shares. 

    With
      respect to the Company's establishment of an exercise window, (i) any exercise
      of an Option or SAR during such fifteen-day period shall be conditioned upon
      the
      consummation of the event and shall be effective only immediately before the
      consummation of the event, and (ii) upon consummation of any Corporate
      Transaction, the Plan and all outstanding but unexercised Options and SARs
      shall
      terminate. The Board shall send written notice of an event that will result
      in
      such a termination to all individuals who hold Options and SARs not later than
      the time at which the Company gives notice thereof to its stockholders. This
      Section
      17.3
      shall
      not apply to any Corporate Transaction to the extent that provision is made
      in
      writing in connection with such Corporate Transaction for the assumption or
      continuation of the Options, SARs, Stock Units and Restricted Stock theretofore
      granted, or for the substitution for such Options, SARs, Stock Units and
      Restricted Stock for new common stock options and stock appreciation rights
      and
      new common stock units and restricted stock relating to the stock of a successor
      entity, or a parent or subsidiary thereof, with appropriate adjustments as
      to
      the number of shares (disregarding any consideration that is not common stock)
      and option and stock appreciation right exercise prices, in which event the
      Plan, Options, SARs, Stock Units and Restricted Stock theretofore granted shall
      continue in the manner and under the terms so provided. 

     

    
      	 	
              17.4.

            	
              Adjustments. 

            

    

     

    Adjustments
      under this Section 17
      related
      to shares of Stock or securities of the Company shall be made by the Board,
      whose determination in that respect shall be final, binding and conclusive.
      No
      fractional shares or other securities shall be issued pursuant to any such
      adjustment, and any fractions resulting from any such adjustment shall be
      eliminated in each case by rounding downward to the nearest whole share. The
      Board shall determine the effect of a Corporate Transaction upon Awards other
      than Options, SARs, Stock Units and Restricted Stock, and such effect shall
      be
      set forth in the appropriate Award Agreement. The Board may provide in the
      Award
      Agreements at the time of grant, or any time thereafter with the consent of
      the
      Grantee, for different provisions to apply to an Award in place of those
      described in Sections
      17.1,
      17.2
      and
17.3.

     

    
      
         

      

      
        -25-

        
          

        

      

      
         

      

    

     

    
      	 	
              17.5.

            	
              No
                Limitations on Company. 

            

    

     

    The
      making of Awards pursuant to the Plan shall not affect or limit in any way
      the
      right or power of the Company to make adjustments, reclassifications,
      reorganizations, or changes of its capital or business structure or to merge,
      consolidate, dissolve, or liquidate, or to sell or transfer all or any part
      of
      its business or assets.

     

    18. GENERAL
      PROVISIONS

     

    
      	 	
              18.1.

            	
              Disclaimer
                of Rights

            

    

     

    No
      provision in the Plan or in any Award or Award Agreement shall be construed
      to
      confer upon any individual the right to remain in the employ or service of
      the
      Company or any Affiliate, or to interfere in any way with any contractual or
      other right or authority of the Company either to increase or decrease the
      compensation or other payments to any individual at any time, or to terminate
      any employment or other relationship between any individual and the Company.
      In
      addition, notwithstanding anything contained in the Plan to the contrary, unless
      otherwise stated in the applicable Award Agreement, no Award granted under
      the
      Plan shall be affected by any change of duties or position of the Grantee,
      so
      long as such Grantee continues to be a director, officer, consultant or employee
      of the Company or an Affiliate. The obligation of the Company to pay any
      benefits pursuant to this Plan shall be interpreted as a contractual obligation
      to pay only those amounts described herein, in the manner and under the
      conditions prescribed herein. The Plan shall in no way be interpreted to require
      the Company to transfer any amounts to a third party trustee or otherwise hold
      any amounts in trust or escrow for payment to any Grantee or beneficiary under
      the terms of the Plan. 

     

    
      	 	
              18.2.

            	
              Nonexclusivity
                of the Plan

            

    

     

    Neither
      the adoption of the Plan nor the submission of the Plan to the stockholders
      of
      the Company for approval shall be construed as creating any limitations upon
      the
      right and authority of the Board to adopt such other incentive compensation
      arrangements (which arrangements may be applicable either generally to a class
      or classes of individuals or specifically to a particular individual or
      particular individuals) as the Board in its discretion determines desirable,
      including, without limitation, the granting of stock options otherwise than
      under the Plan.

     

    
      	 	
              18.3.

            	
              Withholding
                Taxes

            

    

     

    The
      Company or an Affiliate, as the case may be, shall have the right to deduct
      from
      payments of any kind otherwise due to a Grantee any federal, state, or local
      taxes of any kind required by law to be withheld with respect to the vesting
      of
      or other lapse of restrictions applicable to an Award or upon the issuance
      of
      any shares of Stock upon the exercise of an Option or pursuant to an Award.
      At
      the time of such vesting, lapse, or exercise, the Grantee shall pay to the
      Company or the Affiliate, as the case may be, any amount that the Company or
      the
      Affiliate may reasonably determine to be necessary to satisfy such withholding
      obligation. Subject to the prior approval of the Company or the Affiliate,
      which
      may be withheld by the Company or the Affiliate, as the case may be, in its
      sole
      discretion, the Grantee may elect to satisfy such obligations, in whole or
      in
      part, (i) by causing the Company or the Affiliate to withhold shares of
      Stock otherwise issuable to the Grantee or (ii) by delivering to the
      Company or the Affiliate shares of Stock already owned by the Grantee. The
      shares of Stock so delivered or withheld shall have an aggregate Fair Market
      Value equal to such withholding obligations. The Fair Market Value of the shares
      of Stock used to satisfy such withholding obligation shall be determined by
      the
      Company or the Affiliate as of the date that the amount of tax to be withheld
      is
      to be determined. A Grantee who has made an election pursuant to this
Section 18.3
      may
      satisfy his or her withholding obligation only with shares of Stock that are
      not
      subject to any repurchase, forfeiture, unfulfilled vesting, or other similar
      requirements. The maximum number of shares of Stock that may be withheld from
      any Award to satisfy any federal, state or local tax withholding requirements
      upon the exercise, vesting, lapse of restrictions applicable to such Award
      or
      payment of shares pursuant to such Award, as applicable, cannot exceed such
      number of shares having a Fair Market Value equal to the minimum statutory
      amount required by the Company to be withheld and paid to any such federal,
      state or local taxing authority with respect to such exercise, vesting, lapse
      of
      restrictions or payment of shares. 

     

    
      
         

      

      
        -26-

        
          

        

      

      
         

      

    

     

    
      	 	
              18.4.

            	
              Captions

            

    

     

    The
      use
      of captions in this Plan or any Award Agreement is for the convenience of
      reference only and shall not affect the meaning of any provision of the Plan
      or
      such Award Agreement.

     

    
      	 	
              18.5.

            	
              Other
                Provisions

            

    

     

    Each
      Award granted under the Plan may contain such other terms and conditions not
      inconsistent with the Plan as may be determined by the Board, in its sole
      discretion.

     

    
      	 	
              18.6.

            	
              Number
                and Gender

            

    

     

    With
      respect to words used in this Plan, the singular form shall include the plural
      form, the masculine gender shall include the feminine gender, etc., as the
      context requires.

     

    
      	 	
              18.7.

            	
              Severability

            

    

     

    If
      any
      provision of the Plan or any Award Agreement shall be determined to be illegal
      or unenforceable by any court of law in any jurisdiction, the remaining
      provisions hereof and thereof shall be severable and enforceable in accordance
      with their terms, and all provisions shall remain enforceable in any other
      jurisdiction.

     

    
      	 	
              18.8.

            	
              Governing
                Law

            

    

     

    The
      validity and construction of this Plan and the instruments evidencing the Awards
      hereunder shall be governed by the laws of the State of Florida, other than
      any
      conflicts or choice of law rule or principle that might otherwise refer
      construction or interpretation of this Plan and the instruments evidencing
      the
      Awards granted hereunder to the substantive laws of any other
      jurisdiction.

     

    
      
         

      

      
        -27-

        
          

        

      

      
         

      

    

     

    
      	 	
              18.9.

            	
              Section
                409A of the Code

            

    

     

    The
      Board
      intends to comply with Section 409A of the Code ("Section 409A"), or an
      exemption to Section 409A, with regard to Awards hereunder that constitute
      nonqualified deferred compensation within the meaning of Section 409A. To the
      extent that the Board determines that a Grantee would be subject to the
      additional 20% tax imposed on certain nonqualified deferred compensation plans
      pursuant to Section 409A as a result of any provision of any Award granted
      under
      this Plan, such provision shall be deemed amended to the minimum extent
      necessary to avoid application of such additional tax. The nature of any such
      amendment shall be determined by the Board.

    

    *    *    *

     

    
      
         

      

      
        -28-

        
          

        

      

      
         

      

    

     

    To
      record
      adoption of the Plan by the Board as of __________ __, 2007, and approval of
      the
      Plan by the stockholders on __________ __, 2007, the Company has caused its
      authorized officer to execute the Plan.

     

    
      	 	 	 
	 	H2Diesel Holdings, Inc.
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

            
	 	
              Title:
                
                

            

    

    

    
      
         

      

      
        -29-

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