Document:

ex4_12.htm

    
      

    

    Exhibit
4.12

     

    
      PIGGYBACK REGISTRATION RIGHTS AGREEMENT

      

      THIS PIGGYBACK REGISTRATION RIGHTS
AGREEMENT (this "Agreement"), dated as of the same date as
the Warrant to which it is attached as Exhibit 1, is made by
and between FOCUS ENHANCEMENTS,
INC., a Delaware corporation, with headquarters located at 1370 Dell
Avenue, Campbell, California 95008 (the “Company”), and Marketing By Design
(“Consultant”).

      

      W
I T N E S S E T H:

      

      WHEREAS, the Company has
agreed to issue the Warrant to the Consultant in connection with the performance
of certain services, and the Warrant may be exercised for the purchase of shares
of Common Stock (the “Warrant Shares”) upon certain  terms and
conditions; and

      

      WHEREAS, the Company has
agreed to provide certain registration rights under the Securities Act of 1933,
as amended, (the “1933 Act”) with respect to the Warrant.

      

      NOW, THEREFORE, in
consideration of the premises and the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Company and the Holder hereby agree as
follows:

      

      1.       
   Definitions.   As used in
this Agreement, the following terms shall have the following
meanings:

      

      (a)         “Effective
Date” means any  date after the date hereof that  the
Securities and Exchange Commission (“SEC”) declares effective a Registration
Statement covering Registrable Securities and otherwise meeting the conditions
contemplated hereby to be effective.

      

      (b)         “Holder”
means Consultant and any permitted transferee or assignee who agrees to become
bound by the provisions of this Agreement in accordance with Section 3 hereof
and who holds Registrable Securities, as the context may require.

      

      (c)         “Register,”
“Registered,” and “Registration” refer to a registration effected by preparing
and filing a Registration Statement or Statements in compliance with the
Securities Act and pursuant to Rule 415 under the Securities Act or any
successor rule providing for offering securities on a continuous basis (“Rule
415"), and the SEC’s declaration or ordering of effectiveness of such
Registration Statement.

      

      (d)         "Registrable
Securities" means the Warrant and the Warrant Shares purchased upon exercise of
the Warrant as set forth in the document to which this Agreement is Exhibit
1.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (e)         “Registration
Statement” means a registration statement of the Company under the 1933 Act
covering Registrable Securities on Form S-3, if the Company is then eligible to
file using such form, and if not eligible, then on Form SB-2 or other
appropriate form.

      

      2.      
    Piggy-back
Registration Rights.  If, after the date hereof (but without
any obligation to do so), the Company proposes to register (including for this
purpose a registration effected by the Company for persons other than the
Holders) any of its securities under the 1933 Act in connection with the public
offering of such securities (other than a registration (i) with respect to an
employee benefit plan, or (ii)  in connection with a Rule 145
transaction under the 1933 Act), the Company shall, each such time, promptly
give each Holder written notice of such registration together with a list of the
jurisdictions in which the Company intends to attempt to qualify such securities
under applicable state securities laws.  Upon the written request of
each Holder given within twenty (20) business days after delivery of such
written notice by the Company to Holder, the Company shall, subject to the
provisions hereof, use its reasonable efforts to cause to be registered under
the 1933 Act all of the Registrable Securities that each such Holder has
requested to be registered.  If a Holder decides not to include all of
its Registrable Securities in any registration statement thereafter filed by the
Company, such Holder shall nevertheless continue to have the right to include
any Registrable Securities in any subsequent registration statement or
registration statements as may be filed by the Company with respect to offerings
of its securities, all upon the terms and conditions set forth
herein.

       

      2.1       
   Obligations
of the Company.  Whenever required to effect the registration
of any Registrable Securities, the Company shall, as expeditiously as reasonably
possible:

       

      (a)         Prepare
and file with the SEC a registration statement with respect to such Registrable
Securities and use its reasonable efforts to cause such registration statement
to become effective, and, upon the request of the holders of a majority of the
securities registered thereunder, keep such registration statement effective for
up to one hundred twenty (120) days.

       

      (b)         Prepare
and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection with such registration statement
as may be necessary to comply with the provisions of the 1933 Act with respect
to the disposition of all securities covered by such registration statement for
a period set forth in Section 2.1 (a) above.

       

      (c)         Furnish
to the Holders such numbers of copies of a prospectus, including a preliminary
prospectus, in conformity with the requirements of the 1933 Act, and such other
documents as they may reasonably request in order to facilitate the disposition
of Registrable Securities owned by them.

       

      (d)         In
the event of any underwritten public offering, enter into and perform its
obligations under an underwriting agreement with terms generally satisfactory to
the managing underwriter of such offering.  Each Holder participating
in such underwriting shall also enter into and perform its obligations under
such an agreement.

      
        
           

        

        
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      (e)         Notify
each Holder of Registrable Securities covered by such registration statement, at
any time when a prospectus relating thereto is required to be delivered under
the 1933 Act, of the happening of any event as a result of which the prospectus
included in such registration statement, as then in effect, includes an untrue
statement of a material fact or omits to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in
light of the circumstances then existing. In such instance, Company shall use
its best efforts to amend or supplement such prospectus to cure any such
statement or omission so as to render such statement or omission not
misleading.

       

      (f)      
   Use its best efforts to furnish, on the date that such
Registrable Securities are delivered to the underwriters for sale, if such
securities are being sold through underwriters, (i) an opinion, dated as of
such date, of the counsel representing the Company for the purposes of such
registration, in form and substance as is customarily given to underwriters in
an underwritten public offering, addressed to the underwriters, if any, and
(ii) a letter, dated as of such date, from the independent certified public
accountants of the Company, in form and substance as is customarily given by
independent certified public accountants to underwriters in an underwritten
public offering addressed to the underwriters.

       

      2.2        
  Furnish
Information.  In connection with any action pursuant to this
Section 2, the selling Holders shall furnish to the Company such information
regarding themselves, the Registrable Securities held by them, and the intended
method of disposition of such securities as shall be required to effect the
registration of their Registrable Securities.  In that connection,
each selling Holder shall be required to represent to the Company that all such
information which is given is both complete and accurate in all material
respects when made.

       

      2.3      
    Definition
of Expenses.

       

      (a)         “Registration
Expenses” shall mean all expenses incurred by the Company, except for
“Selling Expenses,” in complying herewith  including, without
limitation, all registration, filing and qualification fees, underwriters’
expense allowances, printing expenses, fees and disbursements of counsel for the
Company,  blue sky fees and disbursements, and the expense of any
special audits incident to or required by any registration.

       

      (b)         “Selling Expenses”
shall mean all underwriting discounts and selling commissions applicable to the
sale of the Registrable Securities in the registration, all stock transfer taxes
and all fees and disbursements of any additional special counsel in connection
with each such registration attributable to the Registrable Securities being
registered.

       

      2.4      
    Expenses
of Registration.  The Company shall
bear all Registration Expenses incurred in connection with any registration,
qualification or compliance,  All Selling Expenses shall be borne by
the Holders of the securities so registered, pro rata on the basis of the number
of Registrable Securities so registered.

       

      2.5      
    Underwriting
Requirements in Piggy-back Registration.  The right of any
Holder to registration pursuant to an underwriting shall be conditioned upon
such Holder’s participation in such underwriting and the inclusion of such
Holder’s Registrable Securities in the underwriting to the extent provided
herein.  All Holders proposing to distribute their securities through
such underwriting shall (together with the Company and any other persons
distributing their securities through such underwriting) enter into an
underwriting agreement in customary form with the underwriter or underwriters
selected by the Company.  Notwithstanding any other provision of this
Agreement, if the underwriter determines that market factors require a
limitation of the number of shares to be underwritten, the underwriter
may  exclude some or all Registrable Securities from such registration
and underwriting.  Notwithstanding anything to the contrary herein, no
reduction shall be made with respect to securities offered by the Company for
its own account in connection with any Company offering. If any Holder
disapproves of the terms of any such underwriting, he may elect to withdraw
therefrom by written notice to the Company and the underwriter.  Any
Registrable Securities excluded or withdrawn from such underwriting shall be
withdrawn from such registration.

      
        
           

        

        
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      2.6     
     Delay
of Registration.  No Holder shall
have any right to obtain or seek an injunction restraining or otherwise delaying
any such registration as a result of any controversy that might arise with
respect to the interpretation or implementation of this Section 2.

       

      2.7     
     Indemnification.  In the event any
Registrable Securities are included in a registration statement under this
Section 2:

       

      (a)         To
the extent permitted by law, the Company will indemnify and hold harmless each
Holder, the officers, directors and partners of each Holder, any underwriter (as
defined in the 1933 Act) for such Holder and each person, if any, who controls
such Holder or underwriter within the meaning of the 1933 Act or the Securities
Exchange Act of 1934, as amended (the “1934 Act”) against any losses, claims,
damages, or liabilities (joint or several) to which they may become subject
under the 1933 Act, the 1934 Act or other federal or state law, insofar as such
losses, claims, damages, or liabilities (or actions in respect thereof) arise
out of or are based upon any of the following statements, omissions or
violations (collectively a “Violation”): (i) any untrue statement or alleged
untrue statement of a material fact contained in such registration statement,
including any preliminary prospectus or final prospectus contained therein or
any amendments or supplements thereto; (ii) the omission or alleged omission to
state therein a material fact required to be stated therein, or necessary to
make the statements therein not misleading; or (iii) any violation or alleged
violation by the Company of the 1933 Act, the 1934 Act, any state securities law
or any rule or regulation promulgated under the 1933 Act, the 1934 Act or any
state securities law; and the Company will reimburse each such Holder, officer,
director or partner, underwriter or controlling person for any reasonable legal
or other expenses reasonably incurred by them in connection with investigating
or defending any such loss, claim, damage, liability, or action; provided,
however, that the Company’s indemnity contained in this Section 2.7(a) shall not
apply to amounts paid in settlement of any such loss, claim, damage, liability
or action if such settlement is effected without the consent of the Company
(which consent shall not be unreasonably withheld), nor shall the Company be
liable in any such case for any such loss, claim, damage, liability, or action
to the extent that it arises out of or is based upon a Violation which occurs in
reliance upon and in conformity with  information furnished in writing
and expressly stated for use in connection with such registration by any such
Holder, or such Holder’s officers, directors or partners, underwriter, or
controlling person.  The Company shall not be required to indemnify
any person against any liability arising out of the failure of any Holder or
person acting on behalf of a Holder to deliver a prospectus as required by the
1993 Act. The
indemnity provided for in this Section 2.7(a) shall remain in full force and
effect regardless of any investigation made by or on behalf of such seller,
underwriter, participating person or controlling person and shall survive
transfer of such securities by such seller.

      
        
           

        

        
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      (b)         To
the extent permitted by law, each selling Holder will indemnify and hold
harmless the Company, each of its directors, each of its officers who have
signed the registration statement, each person, if any, who controls the Company
within the meaning of the 1933 Act, any underwriter (within the meaning of the
1933 Act) for the Company, any person who controls such underwriter, and any
other Holder selling securities in such registration statement or any of its
partners, directors or officers or any person who controls such Holder, against
any losses, claims, damages or liabilities (joint or several) to which any of
the foregoing persons may become subject, under the 1933 Act, the 1934 Act or
other federal or state law, insofar as such losses, claims, damages, or
liabilities (or actions in respect thereto) arise out of or are based upon any
Violation, in each case to the extent (and only to the extent) that such
Violation occurs in reliance upon and in conformity with written information
furnished by such Holder expressly stated in a writing for use in connection
with such registration; and each such Holder will reimburse any legal or other
expenses, as incurred, where same are reasonably incurred by any person intended
to be indemnified pursuant to this Section 2.7(b), in connection with
investigating or defending any such loss, claim, damage, liability, or action;
provided, however, that the indemnity agreement contained in this Section 2.7(b)
shall not apply to amounts paid in settlement of any such loss, claim, damage,
liability or action if such settlement is effected without the consent of the
Holder, which consent shall not be unreasonably
withheld.  Notwithstanding the foregoing, the liability of each Holder
under this Section 2.7(b) shall be limited to an amount equal to the net
proceeds from the offering price of the shares sold by such Holder.

       

      (c)         Promptly
after receipt by an indemnified party under this Section 2.7 of notice of the
commencement of any action (including any governmental action), such indemnified
party will, if a claim in respect thereof is to be made against any indemnifying
party under this Section 2.7, notify the indemnifying party in writing of the
commencement thereof, and the indemnifying party shall have the right to
participate in and, to the extent the indemnifying party so desires, jointly
with any other indemnifying party similarly noticed, to assume the defense
thereof with counsel mutually satisfactory to the parties; provided, however,
that an indemnified party shall have the right to retain its own counsel, with
the reasonable fees and expenses to be paid by the indemnifying party if the
indemnified party reasonably determines that representation of such indemnified
party by the counsel retained by the indemnifying party would be inappropriate
due to actual or potential differing interests between such indemnified party
and any other party represented by such counsel in such
proceeding.  The failure to notify an indemnifying party within a
reasonable time of the commencement of any such action, to the extent
prejudicial to its ability to defend such action, shall relieve such
indemnifying party of any liability to the indemnified party under this Section
2.7, but the omission so to notify the indemnifying party will not relieve it of
any liability that it may have to any indemnified party otherwise than under
this Section 2.7.

      
        
           

        

        
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      (d)         In
order to provide for just and equitable contribution to joint liability under
the 1933 Act in any case in which either (i) any indemnified party makes a claim
under this Section 2.7 or any controlling person of such indemnified party makes
such a claim but is judicially determined (by entry of a final judgment or
decree by a court of competent jurisdiction and the expiration of time to appeal
or the denial of the last right of appeal) that such indemnification may not be
enforced in such case notwithstanding the fact that this Section 2.7 provides
for indemnification in such case, or (ii) contribution under the 1933 Act may be
required on the part of any such person seeking indemnity under the terms of
this Section 2.7; then, and in each such case, the Company and such person will
contribute to the aggregate losses, claims, damages, or liabilities to which
they may be subject (after contribution from others) in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the one
hand and of the indemnified party on the other in connection with the statements
or omissions that resulted in such loss, liability, claim, damage, or expense as
well as any other relevant equitable considerations.  The relative
fault of the indemnifying party and of the indemnified party shall be determined
by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission to state a material fact relates to
information supplied by the indemnifying party or by the indemnified party and
the parties’ relative intent, knowledge, access to information, and opportunity
to correct or prevent such statement or omission; provided, however,
that, in any such case, (A) no such person shall be required to contribute any
amount in excess of the net proceeds from the offering price of all such
Registrable Securities sold by it pursuant to such registration statement and
(B) no person or entity guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from
any person or entity who was not guilty of such fraudulent
misrepresentation.

       

      2.8     
     Reports
Under Securities Exchange Act of 1934.  With
a view to making available to the Holders the benefits of Rule 144 promulgated
under the 1933 Act and any other rule or regulation of the SEC that may at any
time permit a Holder to sell securities of the Company to the public without
registration, the Company agrees to:

       

      (a)         use
its reasonable  efforts to make and keep public information available,
as those terms are understood and defined in Rule 144, at all times after ninety
(90) days after the closing date of the first registration statement filed by
the Company;

       

      (b)         use
its reasonable efforts to file with the SEC in a timely manner all reports and
other documents required of the Company under the 1933 Act and the 1934 Act;
and

       

      (c)         furnish
to any Holder, so long as the Holder owns any Registrable Securities, forthwith
upon request: (i) a written statement by the Company that it has complied with
the reporting requirements of Rule 144 (at any time after ninety (90) days after
the closing date of the first registration statement filed by the Company), the
1933 Act and the 1934 Act (at any time after it has become subject to such
reporting requirements); (ii) a copy of the most recent annual or quarterly
report of the Company and such other reports and documents so filed by the
Company; and (iii) such other information as may be reasonably requested in
order to permit any Holder to avail itself of any rule or regulation of the SEC
or any state securities authority which permits the selling of any such
securities without registration or pursuant to such form.

      
        
           

        

        
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      3.
         Assignment
of Registration Rights.

       

      The
piggyback registration rights hereunder may be assigned by a Holder to a
transferee or assignee of such securities: (i) if such transfer is made in
connection with the transfer of all Registrable Securities held by the
transferor;  (ii) if such transferee or assignee acquires at least
thirty thousand (30,000) shares of the then outstanding Registrable Securities
held by such Holder, (iii) to any Affiliate (as defined in Regulation D of the
1933 Act) of such Holder; (iv) to any family member or trust established for the
benefit of an individual Holder; or (v) in connection with a distribution by
such Holder to any partner, member, former partner, or member or the estate of
such partner or member; provided in each case that the Company is, within a
reasonable time after such transfer, furnished with written notice of the name
and address of such transferee or assignee and the securities with respect to
which such registration rights are being assigned; provided, however, that such
assignment shall be effective only if the transferee agrees in writing at the
time of transfer to be  bound by the terms and conditions of this
Agreement and such transfer of any Registrable Securities is lawful under all
applicable securities laws.

       

      4.      
    Termination of the Company’s
Obligations.

       

      The
Company shall have no obligations hereunder with respect to any registration
request or requests made by any Holder (a) more than three years following the
date of the Warrants are issued or (b) all Registrable Securities held by and
issuable to such Holder (and its affiliates) may be sold under Rule 144 during
any ninety (90) day period.

      

      5.     
     Obligations
of the Investors.  In connection
with the registration of the Registrable Securities, any Holder  shall
have the following obligations:

      

      (a)         Such
Holder shall cooperate with the Company as reasonably requested by the Company
in connection with the preparation and filing of any
respective  Registration Statement hereunder, unless such Holder has
notified the Company in writing of such Holder's election to exclude all of such
Holder's Registrable Securities from the Registration Statement;
and

      

      (b)         Each
Holder agrees that, upon receipt of any notice from the Company of the happening
of any material event which, in the Company’s opinion justifies the cessation of
the distribution of the Registrable Securities, such Holder will immediately
discontinue disposition of Registrable Securities pursuant to the Registration
Statement covering such Registrable Securities until such Holder's receipt of
the copies of any supplemented or amended prospectus which addresses such
material event, and, if so directed by the Company, such Holder shall deliver to
the Company (at the expense of the Company) or destroy (and deliver to the
Company a certificate of destruction) all copies in such Holder's possession, of
the prospectus covering such Registrable Securities current at the time of
receipt of such notice.

      
        
           

        

        
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      6.   
       Amendment
of Registration Rights.

      

      Any
provision of this Agreement may be amended and the observance thereof may be
waived (either generally or in a particular instance and either retroactively or
prospectively), only with the written consent of the Company and Holders who
hold a fifty (50%) percent interest of the Warrant Shares as of such
date.  Any amendment or waiver effected in accordance with this
Section 6 shall be binding upon each Holder and the Company.

      

      7.       
   Miscellaneous.

      

      (a)         A
person or entity is deemed to be a holder of Registrable Securities whenever
such person or entity owns of record such Registrable Securities.  If
the Company receives conflicting instructions, notices or elections from two or
more persons or entities with respect to the same Registrable Securities, the
Company shall act upon the basis of instructions, notice or election received
from the registered owner of such Registrable Securities.

      

      (b)         Notices
required or permitted to be given hereunder shall be given in the manner
contemplated by the Warrant:  if to the Company or to the Holder, to
their respective address contemplated by the Warrant or at such other address as
each such party furnishes by notice given in accordance with this clause
(b).

      

      (c)         Failure
of any party to exercise any right or remedy under this Agreement or otherwise,
or delay by a party in exercising such right or remedy, shall not operate as a
waiver thereof.

      

      (d)         This
Agreement shall be deemed to be a contract made under the laws of the State of
Delaware for contracts to be wholly performed in such state and without giving
effect to the principles thereof regarding the conflict of laws.  Each
of the parties consents to the exclusive jurisdiction of the federal courts
whose districts encompass any part of the State of California, Santa Clara
County in connection with any dispute arising under this Agreement and hereby
waives, to the maximum extent permitted by law, any objection, including any
objection based on forum non
conveniens, to the bringing of any such proceeding in such
jurisdiction.

      

      (e)         The
Company and the Holder hereby waive a trial by jury in any action, proceeding or
counterclaim brought by either of the parties hereto against the other in
respect of any matter arising out of or in connection with this
Agreement.

      

      (f)          If
any provision of this Agreement shall be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement or the validity or
enforceability of this Agreement in any other jurisdiction.

      

      (g)         This
Agreement shall inure to the benefit of and be binding upon the successors and
assigns of each of the parties hereto.

      
        
           

        

        
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      (h)         All
pronouns and any variations thereof refer to the masculine, feminine or neuter,
singular or plural, as the context may require.

      

      (i)   
      The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning thereof.

      

      (j)     
    This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same agreement.  This Agreement, once executed
by a party, may be delivered to the other party hereto by facsimile transmission
of a copy of this Agreement bearing the signature of the party so delivering
this Agreement.

      

      (k)         This
Agreement constitutes the entire agreement among the parties hereto with respect
to the Holder’s registration rights with respect to the Warrant and Warrant
Shares  There are no restrictions, promises, warranties or
undertakings, other than those set forth or referred to herein.  This
Agreement supersedes all prior agreements and understandings among the parties
hereto with respect to its subject matter.

      

      

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      IN WITNESS WHEREOF, the
parties have caused this Agreement to be duly executed by their respective
officers thereunto duly authorized as of the day and year first above
written.

      

      
        	 
      	COMPANY:	 
      
	 
      	 	 
      	 
      
	 
      	FOCUS
      ENHANCEMENTS, INC.	 
      
	 
      	 	 
      	 
      
	 
      	 	 
      	 
      
	 
      	By: 	
                /s/ Gary Williams

              	 
      
	 
      	Name:	
                Gary Williams

              	 
      
	 
      	Title:	
                EVP of Finance & CFO

              	 
      
	 
      	 	 
      	 
      
	 
      	 	
                MARKETING
      BY DESIGN

              	 
      
	 
      	 	 
      	 
      
	 
      	By:	
                /s/ Susan McDonald

              	 
      
	 
      	Name: 	
                Susan McDonald

              	 
      
	 
      	Title:	
                 PrincipalUnassociated Document

    Exhibit
      10.1

     

    XETHANOL
      CORPORATION

    

    2005
      INCENTIVE COMPENSATION PLAN

    As
      Amended Effective February 12, 2008

    

    1.
      Purpose.
      The
      purpose of this XETHANOL CORPORATION 2005 INCENTIVE COMPENSATION PLAN (the
      “Plan”) is to assist Xethanol Corporation, a Delaware corporation (the
“Company”) and its Related Entities (as hereinafter defined) in attracting,
      motivating, retaining and rewarding high-quality executives and other employees,
      officers, directors, consultants and other persons who provide services to
      the
      Company or its Related Entities by enabling such persons to acquire or increase
      a proprietary interest in the Company in order to strengthen the mutuality
      of
      interests between such persons and the Company’s shareholders, and providing
      such persons with performance incentives to expend their maximum efforts in
      the
      creation of shareholder value.

    

    2.
      Definitions.
      For
      purposes of the Plan, the following terms shall be defined as set forth below,
      in addition to such terms defined in Section 1 hereof.

    

    (a)
      “Award” means any Option, Stock Appreciation Right, Restricted Stock Award,
      Deferred Stock Award, Share granted as a bonus or in lieu of another award,
      Dividend Equivalent, Other Stock-Based Award or Performance Award, together
      with
      any other right or interest, granted to a Participant under the
      Plan.

    

    (b)
      “Award Agreement” means any written agreement, contract or other instrument or
      document evidencing any Award granted by the Committee hereunder.

    

    (c)
      “Beneficiary” means the person, persons, trust or trusts that have been
      designated by a Participant in his or her most recent written beneficiary
      designation filed with the Committee to receive the benefits specified under
      the
      Plan upon such Participant’s death or to which Awards or other rights are
      transferred if and to the extent permitted under Section 10(b) hereof. If,
      upon
      a Participant’s death, there is no designated Beneficiary or surviving
      designated Beneficiary, then the term Beneficiary means the person, persons,
      trust or trusts entitled by will or the laws of descent and distribution to
      receive such benefits.

    

    (d)
      “Beneficial Owner” shall have the meaning ascribed to such term in Rule 13d-3
      under the Exchange Act and any successor to such Rule.

    

    (e)
      “Board” means the Company’s Board of Directors.

    

    (f)
      “Cause” shall, with respect to any Participant have the meaning specified in the
      Award Agreement. In the absence of any definition in the Award Agreement,
“Cause” shall have the equivalent meaning or the same meaning as “cause” or “for
      cause” set forth in any employment, consulting, or other agreement for the
      performance of services between the Participant and the Company or a Related
      Entity or, in the absence of any such agreement or any such definition in such
      agreement, such term shall mean (i) the failure by the Participant to perform,
      in a reasonable manner, his or her duties as assigned by the Company or a
      Related Entity, (ii) any violation or breach by the Participant of his or her
      employment, consulting or other similar agreement with the Company or a Related
      Entity, if any, (iii) any violation or breach by the Participant of any
      non-competition, non-solicitation, non-disclosure and/or other similar agreement
      with the Company or a Related Entity, (iv) any act by the Participant of
      dishonesty or bad faith with respect to the Company or a Related Entity, (v)
      use
      of alcohol, drugs or other similar substances in a manner that adversely affects
      the Participant’s work performance, or (vi) the commission by the Participant of
      any act, misdemeanor, or crime reflecting unfavorably upon the Participant
      or
      the Company or any Related Entity. The good faith determination by the Committee
      of whether the Participant’s Continuous Service was terminated by the Company
      for “Cause” shall be final and binding for all purposes hereunder.

     

    (g)
      “Change in Control” means a Change in Control as defined with related terms in
      Section 9(b) of the Plan.

    

    (h)
      “Code” means the Internal Revenue Code of 1986, as amended from time to time,
      including regulations thereunder and successor provisions and regulations
      thereto.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (i)
      “Committee” means a committee designated by the Board to administer the Plan;
      provided, however, that if the Board fails to designate a committee or if there
      are no longer any members on the committee so designated by the Board, then
      the
      Board shall serve as the Committee. The Committee shall consist of at least
      two
      directors, and each member of the Committee shall be (i) a “non-employee
      director” within the meaning of Rule 16b-3 (or any successor rule) under the
      Exchange Act, unless administration of the Plan by “non-employee directors” is
      not then required in order for exemptions under Rule 16b-3 to apply to
      transactions under the Plan, (ii) an “outside director” within the meaning of
      Section 162(m) of the Code, and (iii) “Independent.”

    

    (j)
      “Consultant” means any person (other than an Employee or a Director, solely with
      respect to rendering services in such person’s capacity as a director) who is
      engaged by the Company or any Related Entity to render consulting or advisory
      services to the Company or such Related Entity.

    

    (k)
      “Continuous Service” means the uninterrupted provision of services to the
      Company or any Related Entity in any capacity of Employee, Director, Consultant
      or other service provider. Continuous Service shall not be considered to be
      interrupted in the case of (i) any approved leave of absence, (ii) transfers
      among the Company, any Related Entities, or any successor entities, in any
      capacity of Employee, Director, Consultant or other service provider, or (iii)
      any change in status as long as the individual remains in the service of the
      Company or a Related Entity in any capacity of Employee, Director, Consultant
      or
      other service provider (except as otherwise provided in the Award Agreement).
      An
      approved leave of absence shall include sick leave, military leave, or any
      other
      authorized personal leave.

    

    (l)
      “Covered Employee” means an Eligible Person who is a “covered employee” within
      the meaning of Section 162(m)(3) of the Code, or any successor provision
      thereto.

    

    (m)
      “Deferred Stock” means a right to receive Shares, including Restricted Stock,
      cash or a combination thereof, at the end of a specified deferral
      period.

    

    (n)
      “Deferred Stock Award” means an Award of Deferred Stock granted to a Participant
      under Section 6(e) hereof.

    

    (o)
      “Director” means a member of the Board or the board of directors of any Related
      Entity.

    

    (p)
      “Disability” means a permanent and total disability (within the meaning of
      Section 22(e) of the Code), as determined by a medical doctor satisfactory
      to
      the Committee.

     

    (q)
      “Discounted Option” means any Option awarded under Section 6(b) hereof with an
      exercise price that is less than the Fair Market Value of a Share on the date
      of
      grant.

    

    (r)
      “Discounted Stock Appreciation Right” means any Stock Appreciation Right awarded
      under Section 6(c) hereof with an exercise price that is less than the Fair
      Market Value of a Share on the date of grant.

    

    (s)
      “Dividend Equivalent” means a right, granted to a Participant under Section 6(g)
      hereof, to receive cash, Shares, other Awards or other property equal in value
      to dividends paid with respect to a specified number of Shares, or other
      periodic payments.

    

    (t)
      “Effective Date” means the effective date of the Plan, which shall be February
      2, 2005.

    

    (u)
      “Eligible Person” means each officer, Director, Employee, Consultant and other
      person who provides services to the Company or any Related Entity. The foregoing
      notwithstanding, only employees of the Company, or any parent corporation or
      subsidiary corporation of the Company (as those terms are defined in Sections
      424(e) and (f) of the Code, respectively), shall be Eligible Persons for
      purposes of receiving any Incentive Stock Options. An Employee on leave of
      absence may be considered as still in the employ of the Company or a Related
      Entity for purposes of eligibility for participation in the Plan.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (v)
      “Employee” means any person, including an officer or Director, who is an
      employee of the Company or any Related Entity. The payment of a director’s fee
      by the Company or a Related Entity shall not be sufficient to constitute
“employment” by the Company.

    

    (w)
      “Exchange Act” means the Securities Exchange Act of 1934, as amended from time
      to time, including rules thereunder and successor provisions and rules
      thereto.

    

    (x)
“Fair
      Market Value” means the fair market value of Shares, Awards or other property as
      determined by the Committee, or under procedures established by the Committee.
      Unless otherwise determined by the Committee, the Fair Market Value of a Share
      as of any given date shall be the closing sale price per Share reported on
      a
      consolidated basis for stock listed on the principal stock exchange or market
      on
      which Shares are traded on the date as of which such value is being determined
      or, if there is no sale on that date, then on the last previous day on which
      a
      sale was reported.

    

    (y)
“Good
      Reason” shall, with respect to any Participant, have the meaning specified in
      the Award Agreement. In the absence of any definition in the Award Agreement,
      “Good Reason” shall have the equivalent meaning or the same meaning as “good
      reason” or “for good reason” set forth in any employment, consulting or other
      agreement for the performance of services between the Participant and the
      Company or a Related Entity or, in the absence of any such agreement or any
      such
      definition in such agreement, such term shall mean (i) the assignment to the
      Participant of any duties inconsistent in any material respect with the
      Participant’s position, authority, duties or responsibilities as assigned by the
      Company or a Related Entity, or any other action by the Company or a Related
      Entity which results in a material diminution in such position, authority,
      duties or responsibilities, excluding for this purpose any action not taken
      in
      bad faith and which is remedied by the Company or a Related Entity promptly
      after receipt of notice thereof given by the Participant, or any action taken
      with the consent of the Participant; or (ii) any material failure by the Company
      or a Related Entity to comply with its obligations to the Participant as agreed
      upon, other than any failure not occurring in bad faith and which is remedied
      by
      the Company or a Related Entity promptly after receipt of notice thereof given
      by the Participant.

     

    (z)
      “Incentive Stock Option” means any Option intended to be designated as an
      incentive stock option within the meaning of Section 422 of the Code or any
      successor provision thereto.

    

    (aa)
      “Independent,” when referring to either the Board or members of the Committee,
      shall have the same meaning as used in the rules of the Nasdaq Stock Market
      or
      any national securities exchange on which any securities of the Company are
      listed for trading, and if not listed for trading, by the rules of the Nasdaq
      Stock Market.

    

    (bb)
      “Incumbent Board” means the Incumbent Board as defined in Section 9(b)(ii) of
      the Plan.

    

    (cc)
      “Option” means a right granted to a Participant under Section 6(b) hereof, to
      purchase Shares or other Awards at a specified price during specified time
      periods.

    

    (dd)
      “Optionee” means a person to whom an Option is granted under this Plan or any
      person who succeeds to the rights of such person under this Plan.

    

    (ee)
      “Option Proceeds” means the cash actually received by the Company for the
      exercise price in connection with the exercise of Options that are exercised
      after the Effective Date of the Plan, plus the maximum tax benefit that could
      be
      realized by the Company as a result of the exercise of such Options, which
      tax
      benefit shall be determined by multiplying (i) the amount that is deductible
      for
      Federal income tax purposes as a result of any such option exercise (currently,
      equal to the amount upon which the Participant’s withholding tax obligation is
      calculated), times (ii) the maximum Federal corporate income tax rate for the
      year of exercise. With respect to Options, to the extent that a Participant
      pays
      the exercise price and/or withholding taxes with Shares, Option Proceeds shall
      not be calculated with respect to the amounts so paid in Shares.

    

    (ff)
      “Other Stock-Based Awards” means Awards granted to a Participant under Section
      6(i) hereof.

    

    (gg)
      “Outside Director” means a member of the Board who is not an
      Employee.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (hh)
      “Participant” means a person who has been granted an Award under the Plan which
      remains outstanding, including a person who is no longer an Eligible
      Person.

    

    (ii)
      “Performance Award” shall mean any Award of Performance Shares or Performance
      Units granted pursuant to Section 6(h).

    

    (jj)
      “Performance Period” means that period established by the Committee at the time
      any Performance Award is granted or at any time thereafter during which any
      performance goals specified by the Committee with respect to such Award are
      to
      be measured.

    

    (kk)
      “Performance Share” means any grant pursuant to Section 6(h) of a unit valued by
      reference to a designated number of Shares, which value may be paid to the
      Participant by delivery of such property as the Committee shall determine,
      including cash, Shares, other property, or any combination thereof, upon
      achievement of such performance goals during the Performance Period as the
      Committee shall establish at the time of such grant or thereafter.

    

    (ll)
      “Performance Unit” means any grant pursuant to Section 6(h) of a unit valued by
      reference to a designated amount of property (including cash) other than Shares,
      which value may be paid to the Participant by delivery of such property as
      the
      Committee shall determine, including cash, Shares, other property, or any
      combination thereof, upon achievement of such performance goals during the
      Performance Period as the Committee shall establish at the time of such grant
      or
      thereafter.

    

    (mm)
      “Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the
      Exchange Act and used in Sections 13(d) and 14(d) thereof, and shall include
      a
“group” as defined in Section 13(d) thereof.

    

    (nn)
      “Related Entity” means any Subsidiary, and any business, corporation,
      partnership, limited liability company or other entity designated by Board
      in
      which the Company or a Subsidiary holds a substantial ownership interest,
      directly or indirectly.

    

    (oo)
      “Restricted Stock” means any Share issued with the restriction that the holder
      may not sell, transfer, pledge or assign such Share and with such risks of
      forfeiture and other restrictions as the Committee, in its sole discretion,
      may
      impose (including any restriction on the right to vote such Share and the right
      to receive any dividends), which restrictions may lapse separately or in
      combination at such time or times, in installments or otherwise, as the
      Committee may deem appropriate.

    

    (pp)
      “Restricted Stock Award” means an Award granted to a Participant under Section
      6(d) hereof.

    

    (qq)
      “Rule 16b-3” means Rule 16b-3, as from time to time in effect and applicable to
      the Plan and Participants, promulgated by the Securities and Exchange Commission
      under Section 16 of the Exchange Act.

    

    (rr)
      “Shareholder Approval Date” means the date on which this Plan is approved
      shareholders of the Company eligible to vote in the election of directors,
      by a
      vote sufficient to meet the requirements of Code Sections 162(m) (if applicable)
      and 422, Rule 16b-3 under the Exchange Act (if applicable), applicable
      requirements under the rules of any stock exchange or automated quotation system
      on which the Shares may be listed on quoted, and other laws, regulations and
      obligations of the Company applicable to the Plan.

    

    (ss)
      “Shares” means the shares of common stock of the Company, par value $.001 per
      share, and such other securities as may be substituted (or resubstituted) for
      Shares pursuant to Section 10(c) hereof.

    

    (tt)
      “Stock Appreciation Right” means a right granted to a Participant under Section
      6(c) hereof.

    

    (uu)
      “Subsidiary” means any corporation or other entity in which the Company has a
      direct or indirect ownership interest of 50% or more of the total combined
      voting power of the then outstanding securities or interests of such corporation
      or other entity entitled to vote generally in the election of directors or
      in
      which the Company has the right to receive 50% or more of the distribution
      of
      profits or 50% or more of the assets on liquidation or dissolution.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (vv)
      “Substitute Awards” shall mean Awards granted or Shares issued by the Company in
      assumption of, or in substitution or exchange for, awards previously granted,
      or
      the right or obligation to make future awards, by a company acquired by the
      Company or any Related Entity or with which the Company or any Related Entity
      combines.

    

    3.
      Administration.

    

    (a)
      Authority
      of the Committee.
      The
      Plan shall be administered by the Committee, except to the extent the Board
      elects to administer the Plan, in which case the Plan shall be administered
      by
      only those directors who are Independent Directors, in which case references
      herein to the “Committee” shall be deemed to include references to the
      Independent members of the Board. The Committee shall have full and final
      authority, subject to and consistent with the provisions of the Plan, to select
      Eligible Persons to become Participants, grant Awards, determine the type,
      number and other terms and conditions of, and all other matters relating to,
      Awards, prescribe Award Agreements (which need not be identical for each
      Participant) and rules and regulations for the administration of the Plan,
      construe and interpret the Plan and Award Agreements and correct defects, supply
      omissions or reconcile inconsistencies therein, and to make all other decisions
      and determinations as the Committee may deem necessary or advisable for the
      administration of the Plan. In exercising any discretion granted to the
      Committee under the Plan or pursuant to any Award, the Committee shall not
      be
      required to follow past practices, act in a manner consistent with past
      practices, or treat any Eligible Person or Participant in a manner consistent
      with the treatment of other Eligible Persons or Participants.

    

    (b)
      Manner
      of Exercise of Committee Authority.
      The
      Committee, and not the Board, shall exercise sole and exclusive discretion
      on
      any matter relating to a Participant then subject to Section 16 of the Exchange
      Act with respect to the Company to the extent necessary in order that
      transactions by such Participant shall be exempt under Rule 16b-3 under the
      Exchange Act. Any action of the Committee shall be final, conclusive and binding
      on all persons, including the Company, its Related Entities, Participants,
      Beneficiaries, transferees under Section 10(b) hereof or other persons claiming
      rights from or through a Participant, and shareholders. The express grant of
      any
      specific power to the Committee, and the taking of any action by the Committee,
      shall not be construed as limiting any power or authority of the Committee.
      The
      Committee may delegate to officers or managers of the Company or any Related
      Entity, or committees thereof, the authority, subject to such terms as the
      Committee shall determine, to perform such functions, including administrative
      functions as the Committee may determine to the extent that such delegation
      will
      not result in the loss of an exemption under Rule 16b-3(d)(1) for Awards granted
      to Participants subject to Section 16 of the Exchange Act in respect of the
      Company and will not cause Awards intended to qualify as “performance-based
      compensation” under Code Section 162(m) to fail to so qualify. The Committee may
      appoint agents to assist it in administering the Plan.

    

    (c)
      Limitation
      of Liability.
      The
      Committee and the Board, and each member thereof, shall be entitled to, in
      good
      faith, rely or act upon any report or other information furnished to him or
      her
      by any officer or Employee, the Company’s independent auditors, Consultants or
      any other agents assisting in the administration of the Plan. Members of the
      Committee and the Board, and any officer or Employee acting at the direction
      or
      on behalf of the Committee or the Board, shall not be personally liable for
      any
      action or determination taken or made in good faith with respect to the Plan,
      and shall, to the extent permitted by law, be fully indemnified and protected
      by
      the Company with respect to any such action or determination.

    

    4.
      Shares Subject to Plan.

    

    (a)
      Limitation
      on Overall Number of Shares Available for Delivery Under Plan.
      Subject
      to adjustment as provided in Section 10(c) hereof, the total number of Shares
      reserved and available for delivery under the Plan shall be 6,500,000. Any
      Shares delivered under the Plan may consist, in whole or in part, of authorized
      and unissued shares or treasury shares.

     

    (b)
      Application
      of Limitation to Grants of Award.
      No
      Award may be granted if the number of Shares to be delivered in connection
      with
      such an Award or, in the case of an Award relating to Shares but settled only
      in
      cash (such as cash-only Stock Appreciation Rights), the number of Shares to
      which such Award relates, exceeds the number of Shares remaining available
      for
      delivery under the Plan, minus the number of Shares deliverable in 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    settlement
      of or relating to then outstanding Awards. The Committee may adopt reasonable
      counting procedures to ensure appropriate counting, avoid double counting (as,
      for example, in the case of tandem or substitute awards) and make adjustments
      if
      the number of Shares actually delivered differs from the number of Shares
      previously counted in connection with an Award.

    

    (c)
      Availability
      of Shares Not Delivered under Awards and Adjustments to Limits.

    

    (i)
      If
      any Shares subject to an Award are forfeited, expire or otherwise terminate
      without issuance of such Shares, or any Award is settled for cash or otherwise
      does not result in the issuance of all or a portion of the Shares subject to
      such Award or award, the Shares shall, to the extent of such forfeiture,
      expiration, termination, cash settlement or non-issuance, again be available
      for
      Awards under the Plan, subject to Section 4(c)(v) below.

    

    (ii)
      In
      the event that any Option or other Award granted hereunder is exercised through
      the tendering of Shares (either actually or by attestation) or by the
      withholding of Shares by the Company, or withholding tax liabilities arising
      from such option or other award are satisfied by the tendering of Shares (either
      actually or by attestation) or by the withholding of Shares by the Company,
      then
      only the number of Shares issued net of the Shares tendered or withheld shall
      be
      counted for purposes of determining the maximum number of Shares available
      for
      grant under the Plan.

    

    (iii)
      Shares reacquired by the Company on the open market using Option Proceeds shall
      be available for Awards under the Plan. The increase in Shares available
      pursuant to the repurchase of Shares with Option Proceeds shall not be greater
      than the amount of such proceeds divided by the Fair Market Value of a Share
      on
      the date of exercise of the Option giving rise to such Option
      Proceeds.

    

    (iv)
      Substitute Awards shall not reduce the Shares authorized for grant under the
      Plan or authorized for grant to a Participant in any period. Additionally,
      in
      the event that a company acquired by the Company or any Related Entity or with
      which the Company or any Related Entity combines has shares available under
      a
      pre-existing plan approved by shareholders and not adopted in contemplation
      of
      such acquisition or combination, the shares available for delivery pursuant
      to
      the terms of such pre-existing plan (as adjusted, to the extent appropriate,
      using the exchange ratio or other adjustment or valuation ratio or formula
      used
      in such acquisition or combination to determine the consideration payable to
      the
      holders of common stock of the entities party to such acquisition or
      combination) may be used for Awards under the Plan and shall not reduce the
      Shares authorized for delivery under the Plan; provided that Awards using such
      available shares shall not be made after the date awards or grants could have
      been made under the terms of the pre-existing plan, absent the acquisition
      or
      combination, and shall only be made to individuals who were not Employees or
      Directors prior to such acquisition or combination.

    

    (v)
      Any
      Shares that again become available for delivery pursuant to this Section 4(c)
      shall be added back as one (1) Share.

    

    (vi)
      Notwithstanding anything in this Section 4(c) to the contrary and solely for
      purposes of determining whether Shares are available for the delivery of
      Incentive Stock Options, the maximum aggregate number of shares that may be
      granted under this Plan shall be determined without regard to any Shares
      restored pursuant to this Section 4(c) that, if taken into account, would cause
      the Plan to fail the requirement under Code Section 422 that the Plan designate
      a maximum aggregate number of shares that may be issued.

    

    5.
      Eligibility; Per-Person Award Limitations.
      Awards
      may be granted under the Plan only to Eligible Persons. The maximum dollar
      value
      payable to any one Participant with respect to Performance Units is (x)
      $1,000,000 with respect to any 12 month Performance Period, and (y) with respect
      to any Performance Period that is more than 12 months, $1,000,000 multiplied
      by
      the number of full years in the Performance Period.

    

    6.
      Specific Terms of Awards.

    

    (a)
      General.
      Awards
      may be granted on the terms and conditions set forth in this Section 6. In
      addition, the Committee may impose on any Award or the exercise thereof, at
      the
      date of grant or thereafter (subject to Section 10(e)), such additional terms
      and conditions, not inconsistent with the provisions of the Plan, as the
      Committee shall determine, including terms requiring forfeiture of Awards in
      the
      event of termination of the Participant’s Continuous

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

     Service
      and terms permitting a Participant to make elections relating to his or her
      Award. The Committee shall retain full power and discretion to accelerate,
      waive
      or modify, at any time, any term or condition of an Award that is not mandatory
      under the Plan. Except in cases in which the Committee is authorized to require
      other forms of consideration under the Plan, or to the extent other forms of
      consideration must be paid to satisfy the requirements of applicable law, no
      consideration other than services may be required for the grant (but not the
      exercise) of any Award.

    

    (b)
      Options.
      The
      Committee is authorized to grant Options to any Eligible Person on the following
      terms and conditions:

    

    (i)
      Exercise
      Price.
      Other
      than in connection with Substitute Awards, the exercise price per Share
      purchasable under an Option shall be determined by the Committee, provided
      that
      such exercise price shall not, in the case of Incentive Stock Options, be less
      than 100% of the Fair Market Value of a Share on the date of grant of the Option
      and shall not, in any event, be less than the par value of a Share on the date
      of grant of the Option. If an Employee owns or is deemed to own (by reason
      of
      the attribution rules applicable under Section 424(d) of the Code) more than
      10%
      of the combined voting power of all classes of stock of the Company (or any
      parent corporation or subsidiary corporation of the Company, as those terms
      are
      defined in Sections 424(e) and (f) of the Code, respectively) and an Incentive
      Stock Option is granted to such employee, the exercise price of such Incentive
      Stock Option (to the extent required by the Code at the time of grant) shall
      be
      no less than 110% of the Fair Market Value a Share on the date such Incentive
      Stock Option is granted.

    

    (ii)
      Time
      and Method of Exercise.
      The
      Committee shall determine the time or times at which or the circumstances under
      which an Option 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 Options shall cease to be or become exercisable following
      termination of Continuous Service or upon other conditions, the methods by
      which
      the exercise price may be paid or deemed to be paid (including in the discretion
      of the Committee a cashless exercise procedure), the form of such payment,
      including, without limitation, cash, Shares, other Awards or awards granted
      under other plans of the Company or a Related Entity, or other property
      (including notes or other contractual obligations of Participants to make
      payment on a deferred basis provided that such deferred payments are not in
      violation of the Sarbanes-Oxley Act of 2002, or any rule or regulation adopted
      thereunder or any other applicable law), and the methods by or forms in which
      Shares will be delivered or deemed to be delivered to Participants.

    

    (iii)
      Incentive
      Stock Options.
      The
      terms of any Incentive Stock Option granted under the Plan shall comply in
      all
      respects with the provisions of Section 422 of the Code. Anything in the Plan
      to
      the contrary notwithstanding, no term of the Plan relating to Incentive Stock
      Options (including any Stock Appreciation Right issued in tandem therewith)
      shall be interpreted, amended or altered, nor shall any discretion or authority
      granted under the Plan be exercised, so as to disqualify either the Plan or
      any
      Incentive Stock Option under Section 422 of the Code, unless the Participant
      has
      first requested, or consents to, the change that will result in such
      disqualification. Thus, if and to the extent required to comply with Section
      422
      of the Code, Options granted as Incentive Stock Options shall be subject to
      the
      following special terms and conditions:

    

    (A)
      the
      Option shall not be exercisable more than ten years after the date such
      Incentive Stock Option is granted; provided, however, that if a Participant
      owns
      or is deemed to own (by reason of the attribution rules of Section 424(d) of
      the
      Code) more than 10% of the combined voting power of all classes of stock of
      the
      Company (or any parent corporation or subsidiary corporation of the Company,
      as
      those terms are defined in Sections 424(e) and (f) of the Code, respectively)
      and the Incentive Stock Option is granted to such Participant, the term of
      the
      Incentive Stock Option shall be (to the extent required by the Code at the
      time
      of the grant) for no more than five years from the date of grant;
      and

    

    (B)
      The
      aggregate Fair Market Value (determined as of the date the Incentive Stock
      Option is granted) of the Shares with respect to which Incentive Stock Options
      granted under the Plan and all other option plans of the Company (and any parent
      corporation or subsidiary corporation of the Company, as those terms are defined
      in Sections 424(e) and (f) of the Code, respectively) during any calendar year
      exercisable for the first time by the Participant during any calendar year
      shall
      not (to the extent required by the Code at the time of the grant) exceed
      $100,000.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (c)
      Stock
      Appreciation Rights.
      The
      Committee may grant Stock Appreciation Rights to any Eligible Person in
      conjunction with all or part of any Option granted under the Plan or at any
      subsequent time during the term of such Option (a “Tandem Stock Appreciation
      Right”), or without regard to any Option (a “Freestanding Stock Appreciation
      Right”), in each case upon such terms and conditions as the Committee may
      establish in its sole discretion, not inconsistent with the provisions of the
      Plan, including the following:

    

    (i)
      Right
      to Payment.
      A Stock
      Appreciation Right shall confer on the Participant to whom it is granted a
      right
      to receive, upon exercise thereof, the excess of (A) the Fair Market Value
      of
      one Share on the date of exercise over (B) the grant price of the Stock
      Appreciation Right as determined by the Committee. The grant price of a Stock
      Appreciation Right shall not be less than 100% of the Fair Market Value of
      a
      Share on the date of grant, in the case of a Freestanding Stock Appreciation
      Right, or less than the associated Option exercise price, in the case of a
      Tandem Stock Appreciation Right.

    

    (ii)
      Other
      Terms.
      The
      Committee shall determine at the date of grant or thereafter, the time or times
      at which and the circumstances under which a Stock Appreciation Right 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 Stock
      Appreciation Rights shall cease to be or become exercisable following
      termination of Continuous Service or upon other conditions, the method of
      exercise, method of settlement, form of consideration payable in settlement,
      method by or forms in which Shares will be delivered or deemed to be delivered
      to Participants, whether or not a Stock Appreciation Right shall be in tandem
      or
      in combination with any other Award, and any other terms and conditions of
      any
      Stock Appreciation Right.

    

    (iii)
      Tandem
      Stock Appreciation Rights.
      Any
      Tandem Stock Appreciation Right may be granted at the same time as the related
      Option is granted or, for Options that are not Incentive Stock Options, at
      any
      time thereafter before exercise or expiration of such Option. Any Tandem Stock
      Appreciation Right related to an Option may be exercised only when the related
      Option would be exercisable and the Fair Market Value of the Shares subject
      to
      the related Option exceeds the exercise price at which Shares can be acquired
      pursuant to the Option. In addition, if a Tandem Stock Appreciation Right exists
      with respect to less than the full number of Shares covered by a related Option,
      then an exercise or termination of such Option shall not reduce the number
      of
      Shares to which the Tandem Stock Appreciation Right applies until the number
      of
      Shares then exercisable under such Option equals the number of Shares to which
      the Tandem Stock Appreciation Right applies. Any Option related to a Tandem
      Stock Appreciation Right shall no longer be exercisable to the extent the Tandem
      Stock Appreciation Right has been exercised, and any Tandem Stock Appreciation
      Right shall no longer be exercisable to the extent the related Option has been
      exercised.

    

    (d)
      Restricted
      Stock Awards.
      The
      Committee is authorized to grant Restricted Stock Awards to any Eligible Person
      on the following terms and conditions:

    

    (i)
      Grant
      and Restrictions.
      Restricted Stock Awards shall be subject to such restrictions on
      transferability, risk of forfeiture and other restrictions, if any, as the
      Committee may impose, or as otherwise provided in this Plan, covering a period
      of time specified by the Committee (the “Restriction Period”). The terms of any
      Restricted Stock Award granted under the Plan shall be set forth in a written
      Award Agreement which shall contain provisions determined by the Committee
      and
      not inconsistent with the Plan. The restrictions may lapse separately or in
      combination at such times, under such circumstances (including based on
      achievement of performance goals and/or future service requirements), in such
      installments or otherwise, as the Committee may determine at the date of grant
      or thereafter. Except to the extent restricted under the terms of the Plan
      and
      any Award Agreement relating to a Restricted Stock Award, a Participant granted
      Restricted Stock shall have all of the rights of a shareholder, including the
      right to vote the Restricted Stock and the right to receive dividends thereon
      (subject to any mandatory reinvestment or other requirement imposed by the
      Committee). During the Restriction Period, subject to Section 10(b) below,
      the
      Restricted Stock may not be sold, transferred, pledged, hypothecated, margined
      or otherwise encumbered by the Participant.

    

    (ii)
      Forfeiture.
      Except
      as otherwise determined by the Committee, upon termination of a Participant’s
      Continuous Service during the applicable Restriction Period, the Participant’s
      Restricted Stock that is at that time subject to a risk of forfeiture that
      has
      not lapsed or otherwise been satisfied shall be forfeited and reacquired by
      the
      Company; provided that the Committee may provide, by rule or regulation or
      in
      any Award Agreement, or may 

     

    
      
        
        

      

      
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    determine
      in any individual case, that forfeiture conditions relating to Restricted Stock
      Awards shall be waived in whole or in part in the event of terminations
      resulting from specified causes.

    

    (iii)
      Certificates
      for Stock.
      Restricted Stock granted under the Plan may be evidenced in such manner as
      the
      Committee shall determine. If certificates representing Restricted Stock are
      registered in the name of the Participant, the Committee may require that such
      certificates bear an appropriate legend referring to the terms, conditions
      and
      restrictions applicable to such Restricted Stock, that the Company retain
      physical possession of the certificates, and that the Participant deliver a
      stock power to the Company, endorsed in blank, relating to the Restricted
      Stock.

    

    (iv)
      Dividends
      and Splits.
      As a
      condition to the grant of a Restricted Stock Award, the Committee may require
      or
      permit a Participant to elect that any cash dividends paid on a Share of
      Restricted Stock be automatically reinvested in additional Shares of Restricted
      Stock or applied to the purchase of additional Awards under the Plan. Unless
      otherwise determined by the Committee, Shares distributed in connection with
      a
      stock split or stock dividend, and other property distributed as a dividend,
      shall be subject to restrictions and a risk of forfeiture to the same extent
      as
      the Restricted Stock with respect to which such Shares or other property have
      been distributed.

    

    (e)
      Deferred
      Stock Award.
      The
      Committee is authorized to grant Deferred Stock Awards to any Eligible Person
      on
      the following terms and conditions:

    

    (i)
      Award
      and Restrictions.
      Satisfaction of a Deferred Stock Award shall occur upon expiration of the
      deferral period specified for such Deferred Stock Award by the Committee (or,
      if
      permitted by the Committee, as elected by the Participant). In addition, a
      Deferred Stock Award shall be subject to such restrictions (which may include
      a
      risk of forfeiture) as the Committee may impose, if any, which restrictions
      may
      lapse at the expiration of the deferral period or at earlier specified times
      (including based on achievement of performance goals and/or future service
      requirements), separately or in combination, in installments or otherwise,
      as
      the Committee may determine. A Deferred Stock Award may be satisfied by delivery
      of Shares, cash equal to the Fair Market Value of the specified number of Shares
      covered by the Deferred Stock, or a combination thereof, as determined by the
      Committee at the date of grant or thereafter. Prior to satisfaction of a
      Deferred Stock Award, a Deferred Stock Award carries no voting or dividend
      or
      other rights associated with Share ownership.

    

    (ii)
      Forfeiture.
      Except
      as otherwise determined by the Committee, upon termination of a Participant’s
      Continuous Service during the applicable deferral period or portion thereof
      to
      which forfeiture conditions apply (as provided in the Award Agreement evidencing
      the Deferred Stock Award), the Participant’s Deferred Stock Award that is at
      that time subject to a risk of forfeiture that has not lapsed or otherwise
      been
      satisfied shall be forfeited; provided that the Committee may provide, by rule
      or regulation or in any Award Agreement, or may determine in any individual
      case, that forfeiture conditions relating to a Deferred Stock Award shall be
      waived in whole or in part in the event of terminations resulting from specified
      causes, and the Committee may in other cases waive in whole or in part the
      forfeiture of any Deferred Stock Award.

    

    (iii)
      Dividend
      Equivalents.
      Unless
      otherwise determined by the Committee at date of grant, any Dividend Equivalents
      that are granted with respect to any Deferred Stock Award shall be either (A)
      paid with respect to such Deferred Stock Award at the dividend payment date
      in
      cash or in Shares of unrestricted stock having a Fair Market Value equal to
      the
      amount of such dividends, or (B) deferred with respect to such Deferred Stock
      Award and the amount or value thereof automatically deemed reinvested in
      additional Deferred Stock, other Awards or other investment vehicles, as the
      Committee shall determine or permit the Participant to elect.

    

    (f)
      Bonus
      Stock and Awards in Lieu of Obligations.
      The
      Committee is authorized to grant Shares to any Eligible Persons as a bonus,
      or
      to grant Shares or other Awards in lieu of obligations to pay cash or deliver
      other property under the Plan or under other plans or compensatory arrangements,
      provided that, in the case of Eligible Persons subject to Section 16 of the
      Exchange Act, the amount of such grants remains within the discretion of the
      Committee to the extent necessary to ensure that acquisitions of Shares or
      other
      Awards are exempt from liability under Section 16(b) of the Exchange Act. Shares
      or Awards granted hereunder shall be subject to such other terms as shall be
      determined by the Committee.

     

    
      
        
        

      

      
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    (g)
      Dividend
      Equivalents.
      The
      Committee is authorized to grant Dividend Equivalents to any Eligible Person
      entitling the Eligible Person to receive cash, Shares, other Awards, or other
      property equal in value to the dividends paid with respect to a specified number
      of Shares, or other periodic payments. Dividend Equivalents may be awarded
      on a
      free-standing basis or in connection with another Award. The Committee may
      provide that Dividend Equivalents shall be paid or distributed when accrued
      or
      shall be deemed to have been reinvested in additional Shares, Awards, or other
      investment vehicles, and subject to such restrictions on transferability and
      risks of forfeiture, as the Committee may specify.

    

    (h)
      Performance
      Awards.
      The
      Committee is authorized to grant Performance Awards to any Eligible Person
      payable in cash, Shares, or other Awards, on terms and conditions established
      by
      the Committee, subject to the provisions of Section 8 if and to the extent
      that
      the Committee shall, in its sole discretion, determine that an Award shall
      be
      subject to those provisions. The performance criteria to be achieved during
      any
      Performance Period and the length of the Performance Period shall be determined
      by the Committee upon the grant of each Performance Award; provided, however,
      that a Performance Period shall not be shorter than 12 months nor longer than
      five years. Except as provided in Section 9 or as may be provided in an Award
      Agreement, Performance Awards will be distributed only after the end of the
      relevant Performance Period. The performance goals to be achieved for each
      Performance Period shall be conclusively determined by the Committee and may
      be
      based upon the criteria set forth in Section 8(b), or in the case of an Award
      that the Committee determines shall not be subject to Section 8 hereof, any
      other criteria that the Committee, in its sole discretion, shall determine
      should be used for that purpose. The amount of the Award to be distributed
      shall
      be conclusively determined by the Committee. Performance Awards may be paid
      in a
      lump sum or in installments following the close of the Performance Period or,
      in
      accordance with procedures established by the Committee, on a deferred
      basis.

    

    (i)
      Other
      Stock-Based Awards.
      The
      Committee is authorized, subject to limitations under applicable law, to grant
      to any Eligible Person such other Awards that may be denominated or payable
      in,
      valued in whole or in part by reference to, or otherwise based on, or related
      to, Shares, as deemed by the Committee to be consistent with the purposes of
      the
      Plan. Other Stock-Based Awards may be granted to Participants either alone
      or in
      addition to other Awards granted under the Plan, and such Other Stock-Based
      Awards shall also be available as a form of payment in the settlement of other
      Awards granted under the Plan. The Committee shall determine the terms and
      conditions of such Awards. Shares delivered pursuant to an Award in the nature
      of a purchase right granted under this Section 6(i) shall be purchased for
      such
      consideration (including, without limitation, loans from the Company or a
      Related Entity provided that such loans are not in violation of the Sarbanes
      Oxley Act of 2002, or any rule or regulation adopted thereunder or any other
      applicable law) paid for at such times, by such methods, and in such forms,
      including, without limitation, cash, Shares, other Awards or other property,
      as
      the Committee shall determine.

    

    7.
      Certain Provisions Applicable to Awards.

    

    (a)
      Stand-Alone,
      Additional, Tandem and Substitute Awards.
      Awards
      granted under the Plan may, in the discretion of the Committee, be granted
      either alone or in addition to, in tandem with, or in substitution or exchange
      for, any other Award or any award granted under another plan of the Company,
      any
      Related Entity, or any business entity to be acquired by the Company or a
      Related Entity, or any other right of a Participant to receive payment from
      the
      Company or any Related Entity. Such additional, tandem, and substitute or
      exchange Awards may be granted at any time. If an Award is granted in
      substitution or exchange for another Award or award, the Committee shall require
      the surrender of such other Award or award in consideration for the grant of
      the
      new Award. In addition, Awards may be granted in lieu of cash compensation,
      including in lieu of cash amounts payable under other plans of the Company
      or
      any Related Entity, in which the value of Stock subject to the Award is
      equivalent in value to the cash compensation (for example, Deferred Stock or
      Restricted Stock), or in which the exercise price, grant price or purchase
      price
      of the Award in the nature of a right that may be exercised is equal to the
      Fair
      Market Value of the underlying Stock minus the value of the cash compensation
      surrendered (for example, Options or Stock Appreciation Right granted with
      an
      exercise price or grant price “discounted” by the amount of the cash
      compensation surrendered).

     

    (b)
      Term
      of Awards.
      The
      term of each Award shall be for such period as may be determined by the
      Committee; provided that in no event shall the term of any Option or Stock
      Appreciation Right exceed a period of ten years (or in the case of an Incentive
      Stock Option such shorter term as may be required under Section 422 of the
      Code).

     

    
      
        
        

      

      
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    (c)
      Form
      and Timing of Payment Under Awards; Deferrals.
      Subject
      to the terms of the Plan and any applicable Award Agreement, payments to be
      made
      by the Company or a Related Entity upon the exercise of an Option or other
      Award
      or settlement of an Award may be made in such forms as the Committee shall
      determine, including, without limitation, cash, Shares, other Awards or other
      property, and may be made in a single payment or transfer, in installments,
      or
      on a deferred basis. Any installment or deferral provided for in the preceding
      sentence shall, however, be subject to the Company’s compliance with the
      provisions of the Sarbanes-Oxley Act of 2002, the rules and regulations adopted
      by the U.S. Securities and Exchange Commission thereunder, and all applicable
      rules of the Nasdaq Stock Market or any national securities exchange on which
      the Company’s securities are listed for trading and, if not listed for trading
      on either the Nasdaq Stock Market or a national securities exchange, then the
      rules of the Nasdaq Stock Market. The settlement of any Award may be
      accelerated, and cash paid in lieu of Shares in connection with such settlement,
      in the discretion of the Committee or upon occurrence of one or more specified
      events (in addition to a Change in Control). Installment or deferred payments
      may be required by the Committee (subject to Section 10(e) of the Plan,
      including the consent provisions thereof in the case of any deferral of an
      outstanding Award not provided for in the original Award Agreement) or permitted
      at the election of the Participant on terms and conditions established by the
      Committee. Payments may include, without limitation, provisions for the payment
      or crediting of a reasonable interest rate on installment or deferred payments
      or the grant or crediting of Dividend Equivalents or other amounts in respect
      of
      installment or deferred payments denominated in Shares.

    

    (d)
      Exemptions
      from Section 16(b) Liability.
      It is
      the intent of the Company that the grant of any Awards to or other transaction
      by a Participant who is subject to Section 16 of the Exchange Act shall be
      exempt from Section 16 pursuant to an applicable exemption (except for
      transactions acknowledged in writing to be non-exempt by such Participant).
      Accordingly, if any provision of this Plan or any Award Agreement does not
      comply with the requirements of Rule 16b-3 then applicable to any such
      transaction, such provision shall be construed or deemed amended to the extent
      necessary to conform to the applicable requirements of Rule 16b-3 so that such
      Participant shall avoid liability under Section 16(b).

    

    8.
      Code Section 162(m) Provisions.

    

    (a)
      Covered
      Employees.
      The
      Committee, in its discretion, may determine at the time an Award is granted
      to
      an Eligible Person who is, or is likely to be, as of the end of the tax year
      in
      which the Company would claim a tax deduction in connection with such Award,
      a
      Covered Employee, that the provisions of this Section 8 shall be applicable
      to
      such Award.

    

    (b)
      Performance
      Criteria.
      If an
      Award is subject to this Section 8, then the lapsing of restrictions thereon
      and
      the distribution of cash, Shares or other property pursuant thereto, as
      applicable, shall be contingent upon achievement of one or more objective
      performance goals.
      Performance goals shall be objective and shall otherwise meet the requirements
      of Section 162(m) of the Code 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.”
One or more of the following business criteria for the Company, on a
      consolidated basis, and/or for Related Entities, or for business or geographical
      units of the Company and/or a Related Entity (except with respect to the total
      shareholder return and earnings per share criteria), shall be used by the
      Committee in establishing performance goals for such Awards: (1) earnings per
      share; (2) revenues or margins; (3) cash flow; (4) operating margin; (5) return
      on net assets, investment, capital, or equity; (6) economic value added; (7)
      direct contribution; (8) net income; pretax earnings; earnings before interest
      and taxes; earnings before interest, taxes, depreciation and amortization;
      earnings after interest expense and before extraordinary or special items;
      operating income; income before interest income or expense, unusual items and
      income taxes, local, state or federal and excluding budgeted and actual bonuses
      which might be paid under any ongoing bonus plans of the Company; (9) working
      capital; (10) management of fixed costs or variable costs; (11) identification
      or consummation of investment opportunities or completion of specified projects
      in accordance with corporate business plans, including strategic mergers,
      acquisitions or divestitures; (12) total shareholder return; and (13) debt
      reduction. Any of the above goals may be determined on an absolute or relative
      basis or as compared to the performance of a published or special index deemed
      applicable by the Committee including, but not limited to, the Standard &
Poor’s 500 Stock Index or a group of companies that are comparable to the
      Company. The Committee may exclude the impact of an event or occurrence which
      the Committee determines should appropriately be excluded, including without
      limitation (i) restructurings, discontinued operations, extraordinary items,
      and
      other unusual or non-recurring charges, (ii) an event either not directly
      related to the operations of the Company or not within the reasonable control of the

     

    
      
        
        

      

      
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    Company’s
      management, or (iii) a change in accounting standards required by generally
      accepted accounting principles.

    

    (c)
      Performance
      Period; Timing For Establishing Performance Goals.
      Achievement of performance goals in respect of such Performance Awards shall
      be
      measured over a Performance Period no shorter than 12 months and no longer
      than
      five years, as specified by the Committee. Performance goals shall be
      established not later than 90 days after the beginning of any Performance Period
      applicable to such Performance Awards, or at such other date as may be required
      or permitted for “performance-based compensation” under Code Section
      162(m).

    

    (d)
      Adjustments.
      The
      Committee may, in its discretion, reduce the amount of a settlement otherwise
      to
      be made in connection with Awards subject to this Section 8, but may not
      exercise discretion to increase any such amount payable to a Covered Employee
      in
      respect of an Award subject to this Section 8. The Committee shall specify
      the
      circumstances in which such Awards shall be paid or forfeited in the event
      of
      termination of Continuous Service by the Participant prior to the end of a
      Performance Period or settlement of Awards.

    

    (e)
      Committee
      Certification.
      No
      Participant shall receive any payment under the Plan unless the Committee has
      certified, by resolution or other appropriate action in writing, that the
      performance criteria and any other material terms previously established by
      the
      Committee or set forth in the Plan, have been satisfied to the extent necessary
      to qualify as “performance based compensation” under Code Section
      162(m).

    

    9.
      Change in Control.

    

    (a)
      Effect
      of “Change in Control.”
      Subject to Section 9(a)(iv), and if and only to the extent provided in the
      Award
      Agreement, or to the extent otherwise determined by the Committee, upon the
      occurrence of a “Change in Control,” as defined in Section 9(b):

     

    (i)
      Any
      Option or Stock Appreciation Right that was not previously vested and
      exercisable as of the time of the Change in Control, shall become immediately
      vested and exercisable, subject to applicable restrictions set forth in Section
      10(a) hereof.

    

    (ii)
      Any
      restrictions, deferral of settlement, and forfeiture conditions applicable
      to a
      Restricted Stock Award, Deferred Stock Award or an Other Stock-Based Award
      subject only to future service requirements granted under the Plan shall lapse
      and such Awards shall be deemed fully vested as of the time of the Change in
      Control, except to the extent of any waiver by the Participant and subject
      to
      applicable restrictions set forth in Section 10(a) hereof.

    

    (iii)
      With respect to any outstanding Award subject to achievement of performance
      goals and conditions under the Plan, the Committee may, in its discretion,
      deem
      such performance goals and conditions as having been met as of the date of
      the
      Change in Control.

    

    (iv)
      Notwithstanding the foregoing, if in the event of a Change in Control the
      successor company assumes or substitutes for an Option, Stock Appreciation
      Right, Restricted Stock Award, Deferred Stock Award or Other Stock-Based Award,
      then each outstanding Option, Stock Appreciation Right, Restricted Stock Award,
      Deferred Stock Award or Other Stock-Based Award shall not be accelerated as
      described in Sections 9(a)(i), (ii) and (iii). For the purposes of this Section
      9(a)(iv), an Option, Stock Appreciation Right, Restricted Stock Award, Deferred
      Stock Award or Other Stock-Based Award shall be considered assumed or
      substituted for if following the Change in Control the award confers the right
      to purchase or receive, for each Share subject to the Option, Stock Appreciation
      Right, Restricted Stock Award, Deferred Stock Award or Other Stock-Based Award
      immediately prior to the Change in Control, the consideration (whether stock,
      cash or other securities or property) received in the transaction constituting
      a
      Change in Control by holders of Shares for each Share held on the effective
      date
      of such transaction (and if holders were offered a choice of consideration,
      the
      type of consideration chosen by the holders of a majority of the outstanding
      shares); provided, however, that if such consideration received in the
      transaction constituting a Change in Control is not solely common stock of
      the
      successor company or its parent or subsidiary, the Committee may, with the
      consent of the successor company or its parent or subsidiary, provide that
      the
      consideration to be received upon the exercise or vesting of an Option, Stock
      Appreciation Right, Restricted Stock Award, Deferred Stock Award or Other
      Stock-Based Award, for each Share subject thereto, will be solely common stock
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    successor
      company or its parent or subsidiary substantially equal in fair market value
      to
      the per share consideration received by holders of Shares in the transaction
      constituting a Change in Control. The determination of such substantial equality
      of value of consideration shall be made by the Committee in its sole discretion
      and its determination shall be conclusive and binding.

    

    (b)
      Definition
      of “Change in Control.”
Unless
      otherwise specified in an Award Agreement, a “Change in Control” shall mean the
      occurrence of any of the following:

    

    (i)
      The
      acquisition by any Person of Beneficial Ownership (within the meaning of Rule
      13d-3 promulgated under the Exchange Act) of more than fifty percent (50%)
      of
      either (A) the then outstanding shares of common stock of the Company (the
      “Outstanding Company Common Stock”) or (B) the combined voting power of the then
      outstanding voting securities of the Company entitled to vote generally in
      the
      election of directors (the “Outstanding Company Voting Securities) (the
      foregoing Beneficial Ownership hereinafter being referred to as a “Controlling
      Interest”); provided, however, that for purposes of this Section 9(b), the
      following acquisitions shall not constitute or result in a Change of Control:
      (v) any acquisition directly from the Company; (w) any acquisition by the
      Company; (x) any acquisition by any Person that as of the Effective Date owns
      Beneficial Ownership of a Controlling Interest; (y) any acquisition by any
      employee benefit plan (or related trust) sponsored or maintained by the Company
      or any Subsidiary; or (z) any acquisition by any corporation pursuant to a
      transaction which complies with clauses (A), (B) and (C) of subsection (iii)
      below; or

     

    (ii)
      During any period of two (2) consecutive years (not including any period prior
      to the Effective Date) individuals who constitute the Board on the Effective
      Date (the “Incumbent Board”) cease for any reason to constitute at least a
      majority of the Board; provided, however, that any individual becoming a
      director subsequent to the Effective Date whose election, or nomination for
      election by the Company’s shareholders, was approved by a vote of at least a
      majority of the directors then comprising the Incumbent Board shall be
      considered as though such individual were a member of the Incumbent Board,
      but
      excluding, for this purpose, any such individual whose initial assumption of
      office occurs as a result of an actual or threatened election contest with
      respect to the election or removal of directors or other actual or threatened
      solicitation of proxies or consents by or on behalf of a Person other than
      the
      Board; or

    

    (iii)
      Consummation of a reorganization, merger, statutory share exchange or
      consolidation or similar corporate transaction involving the Company or any
      of
      its Subsidiaries, a sale or other disposition of all or substantially all of
      the
      assets of the Company, or the acquisition of assets or stock of another entity
      by the Company or any of its Subsidiaries (each a “Business Combination”), in
      each case, unless, following such Business Combination, (A) all or substantially
      all of the individuals and entities who were the Beneficial Owners,
      respectively, of the Outstanding Company Common Stock and Outstanding Company
      Voting Securities immediately prior to such Business Combination beneficially
      own, directly or indirectly, more than fifty percent (50%) of the then
      outstanding shares of common stock and the combined voting power of the then
      outstanding voting securities entitled to vote generally in the election of
      directors, as the case may be, of the corporation resulting from such Business
      Combination (including, without limitation, a corporation which as a result
      of
      such transaction owns the Company or all or substantially all of the Company’s
      assets either directly or through one or more subsidiaries) in substantially
      the
      same proportions as their ownership, immediately prior to such Business
      Combination, of the Outstanding Company Common Stock and Outstanding Company
      Voting Securities, as the case may be, (B) no Person (excluding any employee
      benefit plan (or related trust) of the Company or such corporation resulting
      from such Business Combination or any Person that as of the Effective Date
      owns
      Beneficial Ownership of a Controlling Interest) beneficially owns, directly
      or
      indirectly, fifty percent (50%) or more of the then outstanding shares of common
      stock of the corporation resulting from such Business Combination or the
      combined voting power of the then outstanding voting securities of such
      corporation except to the extent that such ownership existed prior to the
      Business Combination and (C) at least a majority of the members of the Board
      of
      Directors of the corporation resulting from such Business Combination were
      members of the Incumbent Board at the time of the execution of the initial
      agreement, or of the action of the Board, providing for such Business
      Combination; or

    

    (iv)
      Approval by the shareholders of the Company of a complete liquidation or
      dissolution of the Company.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    10.
      General Provisions.

    

    (a)
      Compliance
      With Legal and Other Requirements.
      The
      Company may, to the extent deemed necessary or advisable by the Committee,
      postpone the issuance or delivery of Shares or payment of other benefits under
      any Award until completion of such registration or qualification of such Shares
      or other required action under any federal or state law, rule or regulation,
      listing or other required action with respect to any stock exchange or automated
      quotation system upon which the Shares or other Company securities are listed
      or
      quoted, or compliance with any other obligation of the Company, as the
      Committee, may consider appropriate, and may require any Participant to make
      such representations, furnish such information and comply with or be subject
      to
      such other conditions as it may consider appropriate in connection with the
      issuance or delivery of Shares or payment of other benefits in compliance with
      applicable laws, rules, and regulations, listing requirements, or other
      obligations.

     

    (b)
      Limits
      on Transferability; Beneficiaries.
      No
      Award or other right or interest granted under the Plan shall be pledged,
      hypothecated or otherwise encumbered or subject to any lien, obligation or
      liability of such Participant to any party, or assigned or transferred by such
      Participant otherwise than by will or the laws of descent and distribution
      or to
      a Beneficiary upon the death of a Participant, and such Awards or rights that
      may be exercisable shall be exercised during the lifetime of the Participant
      only by the Participant or his or her guardian or legal representative, except
      that Awards and other rights (other than Incentive Stock Options and Stock
      Appreciation Rights in tandem therewith) may be transferred to one or more
      Beneficiaries or other transferees during the lifetime of the Participant,
      and
      may be exercised by such transferees in accordance with the terms of such Award,
      but only if and to the extent such transfers are permitted by the Committee
      pursuant to the express terms of an Award Agreement (subject to any terms and
      conditions which the Committee may impose thereon). A Beneficiary, transferee,
      or other person claiming any rights under the Plan from or through any
      Participant shall be subject to all terms and conditions of the Plan and any
      Award Agreement applicable to such Participant, except as otherwise determined
      by the Committee, and to any additional terms and conditions deemed necessary
      or
      appropriate by the Committee.

    

    (c)
      Adjustments.

    

    (i)
      Adjustments
      to Awards.
      In the
      event that any extraordinary dividend or other distribution (whether in the
      form
      of cash, Shares, or other property), recapitalization, forward or reverse split,
      reorganization, merger, consolidation, spin-off, combination, repurchase, share
      exchange, liquidation, dissolution or other similar corporate transaction or
      event affects the Shares and/or such other securities of the Company or any
      other issuer such that a substitution, exchange, or adjustment is determined
      by
      the Committee to be appropriate, then the Committee shall, in such manner as
      it
      may deem equitable, substitute, exchange or adjust any or all of (A) the number
      and kind of Shares which may be delivered in connection with Awards granted
      thereafter, (B) the number and kind of Shares by which annual per-person Award
      limitations are measured under Section 5 hereof, (C) the number and kind of
      Shares subject to or deliverable in respect of outstanding Awards, (D) the
      exercise price, grant price or purchase price relating to any Award and/or
      make
      provision for payment of cash or other property in respect of any outstanding
      Award, and (E) any other aspect of any Award that the Committee determines
      to be
      appropriate.

    

    (ii)
      Adjustments
      in Case of Certain Corporate Transactions.
      In the
      event of any merger, consolidation or other reorganization in which the Company
      does not survive, or in the event of any Change in Control, any outstanding
      Awards may be dealt with in accordance with any of the following approaches,
      as
      determined by the agreement effectuating the transaction or, if and to the
      extent not so determined, as determined by the Committee: (a) the continuation
      of the outstanding Awards by the Company, if the Company is a surviving
      corporation, (b) the assumption or substitution for, as those terms are defined
      in Section 9(b)(iv) hereof, the outstanding Awards by the surviving corporation
      or its parent or subsidiary, (c) full exercisability or vesting and accelerated
      expiration of the outstanding Awards, or (d) settlement of the value of the
      outstanding Awards in cash or cash equivalents or other property followed by
      cancellation of such Awards (which value, in the case of Options or Stock
      Appreciation Rights, shall be measured by the amount, if any, by which the
      Fair
      Market Value of a Share exceeds the exercise or grant price of the Option or
      Stock Appreciation Right as of the effective date of the transaction). The
      Committee shall give written notice of any proposed transaction referred to
      in
      this Section 10(c)(ii) a reasonable period of time prior to the closing date
      for
      such transaction (which notice may be given either before or after the approval
      of such transaction), in order that Participants may have a reasonable period
      of
      time prior to the closing date of such transaction within which to exercise
      any
      Awards that are then exercisable (including any Awards that may become

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    exercisable
      upon the closing date of such transaction). A Participant may condition his
      exercise of any Awards upon the consummation of the transaction.

     

    (iii)
      Other
      Adjustments.
      The
      Committee (and the Board if and only to the extent such authority is not
      required to be exercised by the Committee to comply with Section 162(m) of
      the
      Code) is authorized to make adjustments in the terms and conditions of, and
      the
      criteria included in, Awards (including Performance Awards, or performance
      goals
      relating thereto) in recognition of unusual or nonrecurring events (including,
      without limitation, acquisitions and dispositions of businesses and assets)
      affecting the Company, any Related Entity or any business unit, or the financial
      statements of the Company or any Related Entity, or in response to changes
      in
      applicable laws, regulations, accounting principles, tax rates and regulations
      or business conditions or in view of the Committee’s assessment of the business
      strategy of the Company, any Related Entity or business unit thereof,
      performance of comparable organizations, economic and business conditions,
      personal performance of a Participant, and any other circumstances deemed
      relevant; provided that no such adjustment shall be authorized or made if and
      to
      the extent that such authority or the making of such adjustment would cause
      Options, Stock Appreciation Rights, Performance Awards granted pursuant to
      Section 8(b) hereof to Participants designated by the Committee as Covered
      Employees and intended to qualify as “performance-based compensation” under Code
      Section 162(m) and the regulations thereunder to otherwise fail to qualify
      as
“performance-based compensation” under Code Section 162(m) and regulations
      thereunder.

    

    (d)
      Taxes.
      The
      Company and any Related Entity are authorized to withhold from any Award
      granted, any payment relating to an Award under the Plan, including from a
      distribution of Shares, or any payroll or other payment to a Participant,
      amounts of withholding and other taxes due or potentially payable in connection
      with any transaction involving an Award, and to take such other action as the
      Committee may deem advisable to enable the Company or any Related Entity and
      Participants to satisfy obligations for the payment of withholding taxes and
      other tax obligations relating to any Award. This authority shall include
      authority to withhold or receive Shares or other property and to make cash
      payments in respect thereof in satisfaction of a Participant’s tax obligations,
      either on a mandatory or elective basis in the discretion of the
      Committee.

    

    (e)
      Changes
      to the Plan and Awards.
      The
      Board may amend, alter, suspend, discontinue or terminate the Plan, or the
      Committee’s authority to grant Awards under the Plan, without the consent of
      shareholders or Participants, except that any amendment or alteration to the
      Plan shall be subject to the approval of the Company’s shareholders not later
      than the annual meeting next following such Board action if such shareholder
      approval is required by any federal or state law or regulation (including,
      without limitation, Rule 16b-3 or Code Section 162(m)) or the rules of any
      stock
      exchange or automated quotation system on which the Shares may then be listed
      or
      quoted), and the Board may otherwise, in its discretion, determine to submit
      other such changes to the Plan to shareholders for approval; provided that,
      without the consent of an affected Participant, no such Board action may
      materially and adversely affect the rights of such Participant under any
      previously granted and outstanding Award. The Committee may waive any conditions
      or rights under, or amend, alter, suspend, discontinue or terminate any Award
      theretofore granted and any Award Agreement relating thereto, except as
      otherwise provided in the Plan; provided that, without the consent of an
      affected Participant, no such Committee or the Board action may materially
      and
      adversely affect the rights of such Participant under such Award.

    

    (f)
      Limitation
      on Rights Conferred Under Plan.
      Neither
      the Plan nor any action taken hereunder shall be construed as (i) giving any
      Eligible Person or Participant the right to continue as an Eligible Person
      or
      Participant or in the employ or service of the Company or a Related Entity;
      (ii)
      interfering in any way with the right of the Company or a Related Entity to
      terminate any Eligible Person’s or Participant’s Continuous Service at any time,
      (iii) giving an Eligible Person or Participant any claim to be granted any
      Award
      under the Plan or to be treated uniformly with other Participants and Employees,
      or (iv) conferring on a Participant any of the rights of a shareholder of the
      Company unless and until the Participant is duly issued or transferred Shares
      in
      accordance with the terms of an Award.

     

    (g)
      Unfunded
      Status of Awards; Creation of Trusts.
      The
      Plan is intended to constitute an “unfunded” plan for incentive and deferred
      compensation. With respect to any payments not yet made to a Participant or
      obligation to deliver Shares pursuant to an Award, nothing contained in the
      Plan
      or any Award shall give any such Participant any rights that are greater than
      those of a general creditor of the Company; provided that the Committee may
      authorize the creation of trusts and deposit therein cash, Shares, other Awards
      or other property, or make other arrangements

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

     to
      meet the Company’s obligations under the Plan. Such trusts or other arrangements
      shall be consistent with the “unfunded” status of the Plan unless the Committee
      otherwise determines with the consent of each affected Participant. The trustee
      of such trusts may be authorized to dispose of trust assets and reinvest the
      proceeds in alternative investments, subject to such terms and conditions as
      the
      Committee may specify and in accordance with applicable law.

    

    (h)
      Nonexclusivity
      of the Plan.
      Neither
      the adoption of the Plan by the Board nor its submission to the shareholders
      of
      the Company for approval shall be construed as creating any limitations on
      the
      power of the Board or a committee thereof to adopt such other incentive
      arrangements as it may deem desirable including incentive arrangements and
      awards which do not qualify under Section 162(m) of the Code.

    

    (i)
      Payments
      in the Event of Forfeitures; Fractional Shares.
      Unless
      otherwise determined by the Committee, in the event of a forfeiture of an Award
      with respect to which a Participant paid cash or other consideration, the
      Participant shall be repaid the amount of such cash or other consideration.
      No
      fractional Shares shall be issued or delivered pursuant to the Plan or any
      Award. The Committee shall determine whether cash, other Awards or other
      property shall be issued or paid in lieu of such fractional shares or whether
      such fractional shares or any rights thereto shall be forfeited or otherwise
      eliminated.

    

    (j)
      Governing
      Law.
      The
      validity, construction and effect of the Plan, any rules and regulations under
      the Plan, and any Award Agreement shall be determined in accordance with the
      laws of the State of Delaware without giving effect to principles of conflict
      of
      laws, and applicable federal law.

    

    (k)
      Non-U.S.
      Laws.
      The
      Committee shall have the authority to adopt such modifications, procedures,
      and
      subplans as may be necessary or desirable to comply with provisions of the
      laws
      of foreign countries in which the Company or its Subsidiaries may operate to
      assure the viability of the benefits from Awards granted to Participants
      performing services in such countries and to meet the objectives of the
      Plan.

    

    (l)
      Plan
      Effective Date and Shareholder Approval; Termination of Plan.
      The
      Plan shall become effective on the Effective Date, subject to subsequent
      approval, within 12 months of its adoption by the Board, by shareholders of
      the
      Company eligible to vote in the election of directors, by a vote sufficient
      to
      meet the requirements of Code Sections 162(m) (if applicable) and 422, Rule
      16b-3 under the Exchange Act (if applicable), applicable requirements under
      the
      rules of any stock exchange or automated quotation system on which the Shares
      may be listed or quoted, and other laws, regulations, and obligations of the
      Company applicable to the Plan. Awards may be granted subject to shareholder
      approval, but may not be exercised or otherwise settled in the event the
      shareholder approval is not obtained. The Plan shall terminate at the earliest
      of (a) such time as no Shares remain available for issuance under the Plan,
      (b)
      termination of this Plan by the Board, or (c) the tenth anniversary of the
      Effective Date. Awards outstanding upon expiration of the Plan shall remain
      in
      effect until they have been exercised or terminated, or have
      expired.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

      

    

    Non-Qualified
      Stock Option Agreement

    Issued
      to:    ________________

     

    1.
      Grant
      of Option.
      Xethanol Corporation (the “Company”)
      hereby
      grants, as of ____________,
      _______
      (“Date
      of Grant”),
      to
__________________
      (the
      “Optionee”)
      an
      option (the “Option”)
      to
      purchase up to _________
      shares
      (the
“Shares”)
      of the
      Company’s common stock, par value $.001 per share (the “Common
      Stock”),
      at an
      exercise price per share equal to $______
      (the
      “Exercise
      Price”).
      The
      Option has been granted on the terms and subject to the conditions set forth
      herein. The Option is being issued pursuant to the Company’s 2005 Incentive
      Compensation Plan (the “Plan”),
      as
      amended, which is incorporated herein by reference for all purposes. The
      Optionee hereby acknowledges receipt of a copy of the Plan and agrees to be
      bound by all of the terms and conditions hereof and thereof and all applicable
      laws and regulations. The Option is a Non-Qualified Stock Option, and not an
      Incentive Stock Option. 

     

    2.
      Definitions.
      Unless
      otherwise provided herein, capitalized terms used herein and not otherwise
      defined herein shall have the meanings attributed thereto in the
      Plan.

     

    3.
      Exercise
      Schedule.
      Subject
      to the provisions of Sections 6 or 9 of this Agreement and of the Plan, the
      Option is exercisable in installments as provided below, which shall be
      cumulative. To the extent that the Option has become exercisable with respect
      to
      any Shares as provided below, the Option may thereafter be exercised by the
      Optionee, in whole or in part, at any time and from time to time prior to the
      expiration of the Option as provided herein. The following table indicates
      each
      date (each, a “Vesting
      Date”)
      upon
      which the Optionee shall be entitled to first exercise the Option with respect
      to the Shares indicated beside the date, provided that the Continuous Service
      of
      the Optionee continues through the applicable Vesting Date:

     

    
      	
              Number
                of Shares

            	
              Vesting
                Date

            
	 	 

    

    

    The
      Option shall vest incrementally on each Vesting Date and shall not
      proportionately or partially vest during the period prior to any Vesting Date
      except as otherwise specifically provided herein. 

     

    4.
      Method
      of Exercise.
      

     

    (a) The
      vested portion of this Option shall be exercisable in whole or in part by
      written notice which shall state the election to exercise the Option and the
      number of Shares for which the Option is being exercised and, unless the
      issuance of the Shares upon the exercise of the Option has been registered
      under
      the Securities Act of 1933, as amended (the “Securities Act”), the written
      notice of exercise shall include such representations, warranties and agreements
      as the Company may reasonably require to the effect that the Shares are being
      purchased for investment only and without any present intention to sell or
      otherwise distribute such Shares and that such Shares will not be disposed
      of in
      transactions which, in the opinion of counsel to the Company, would violate
      the
      registration provisions of the Securities Act and the rules and regulations
      thereunder. The certificate issued to evidence such Shares shall bear
      appropriate legends 

     

    
      
        
        

      

      
         

        
          

        

      

      
        
        

      

    

     

    summarizing
      these restrictions on the disposition thereof. Such written notice shall be
      signed by the Optionee and shall be delivered to the Company in the manner
      set
      forth in Section 13. 

     

    (b) The
      written notice shall be accompanied by payment of an amount equal to the product
      of (i) the Exercise Price multiplied by (ii) the number of Shares for which
      the
      Option is then being exercised, plus the amount of the withholding taxes
      estimated in accordance with Section 5 to be due upon the purchase of such
      number of Shares, unless the Committee shall have consented to the making of
      other arrangements with the Optionee. Payment of the Exercise Price for the
      Shares upon any exercise of the Option shall be by certified check or by the
      surrender of that number of whole shares of Common Stock with a Fair Market
      Value (as of the date of exercise) as shall equal the Exercise Price of the
      Option. 

     

    (c) Delivery
      of the notice of exercise shall constitute an irrevocable election to purchase
      the Shares specified in the notice, and the date on which the Company receives
      the notice accompanied by payment in full of the Exercise Price for the Shares
      covered by the notice and the applicable withholding taxes shall be the date
      as
      of which the Shares so purchased shall be deemed to have been
      issued.

     

    (d) Notwithstanding
      anything to the contrary herein, the Option shall not be exercisable if the
      Company, at any time and in its sole discretion, shall determine that (a) the
      listing, registration or qualification of any Shares otherwise deliverable
      upon
      such exercise, upon any securities exchange or under any state or Federal law,
      or (b) the consent or approval of any regulatory body, is necessary or desirable
      in connection with such exercise. In such event, such exercise shall be held
      in
      abeyance and shall not be effective unless and until such listing, registration,
      qualification or approval shall have been effected or obtained free of any
      conditions not acceptable to the Company.

     

    5. Withholding
      Taxes.

     

    (a) At
      the
      time of the exercise of all or any part of this Option, the Optionee shall
      pay
      to the Company (or otherwise make arrangements satisfactory to the Committee
      for
      the payment of) the amount of the Federal, state and local and foreign income
      and employment taxes required, in the Company’s sole judgment, to be collected
      or withheld with respect to the exercise of the Option. Such amount shall be
      paid to the Company in cash or by the surrender of that number of whole shares
      of Common Stock with a Fair Market Value (as of the date of exercise) as shall
      equal but not exceed the minimum statutory amounts required to be collected
      or
      withheld by the Company with respect to the exercise of the Option.

     

    (b) At
      the
      time of any “disqualifying disposition” (as defined in Treas. Reg. Section
      1.421-2(b)) of the Shares acquired upon exercise of this Option, the Optionee
      shall pay to the Company (or otherwise make arrangements satisfactory to the
      Committee for the payment of the amount of the Federal, state and local and
      foreign income and employment taxes required, in the Company’s sole judgment, to
      be collected or withheld with respect to the disqualifying disposition of the
      Shares acquired upon exercise of the Option. Such amount shall be paid to the
      Company in cash or by the surrender of that number of whole shares of Common
      Stock with a Fair Market Value (as of the date of exercise) as shall equal
      but
      not exceed the minimum statutory amounts required to be collected or withheld
      by
      the Company with respect to the exercise of the Option.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    6. Termination
      of Option.

     

    (a) Any
      unexercised portion of the Option shall automatically and without notice
      terminate and become null and void at the time of the earliest to occur of
      the
      following:

     

    (i) the
      fifth
      (5th) anniversary of the date as of which the Option is granted [Insert: “the
      tenth (10th) anniversary” if this Option is being granted for service as a
      director] for any reason other than (A) by the Company for Cause or (B) by
      reason of the Optionee’s Disability or death; or

     

    (ii) immediately
      upon the termination of the Optionee’s Continuous Service with the Company for
      Cause; or

     

    (iii) twelve
      months after the date on which the Optionee’s Continuous Service with the
      Company is terminated by reason of a Disability; or

     

    (iv) twelve
      months after the date of termination of the Optionee’s Continuous Service with
      the Company by reason of the Optionee’s death (or, if later, three months after
      the date on which the Optionee shall die if such death shall occur during the
      one-year period specified in paragraph (iii) of this Section 6); or

     

    (b) To
      the
      extent not previously exercised, (i) the Option shall terminate immediately
      in
      the event of (1) the liquidation or dissolution of the Company, or (2) any
      reorganization, merger, consolidation or other form of corporate transaction
      in
      which the Company does not survive or the outstanding shares of Common Stock
      are
      converted into or exchanged for securities issued by another entity, or an
      affiliate of such successor or acquiring entity, unless the successor or
      acquiring entity, or an affiliate of such successor or acquiring entity, assumes
      the Option or substitutes an equivalent option or right pursuant to Section
      10(c) of the Plan, and (ii) the Committee in its sole discretion may by written
      notice (“cancellation
      notice”)
      cancel, effective upon the consummation of any corporate transaction described
      in Subsection 8(b)(i) of the Plan in which the Company does survive, the Option
      (or portion thereof) that remains unexercised on such date. The Committee shall
      give written notice of any proposed transaction referred to in this Section
      6(b)
      a reasonable period of time prior to the closing date for such transaction
      (which notice may be given either before or after approval of such transaction),
      in order that the Optionee may have a reasonable period of time prior to the
      closing date of such transaction within which to exercise the Option if and
      to
      the extent that it then is exercisable (including any portion of the Option
      that
      may become exercisable upon the closing date of such transaction). The Optionee
      may condition his exercise of the Option upon the consummation of a transaction
      referred to in this Section 6(b).

     

    7. Transferability.
      The
      Option granted hereby is not transferable otherwise than by will or under the
      applicable laws of descent and distribution, and during the lifetime of the
      Optionee the Option shall be exercisable only by the Optionee. To exercise
      the
      Option upon the Optionee’s death, the persons who acquire the right to exercise
      the Option must prove to the Committee’s satisfaction that they have duly
      acquired the Option and that they have paid (or have provided for payment of)
      any taxes, such as estate, transfer, inheritance or death taxes, payable with
      respect to the Option or to the Shares to which it relates. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    8. No
      Rights of Stockholders.
      Neither
      the Optionee nor any personal representative (or beneficiary) shall be, or
      shall
      have any of the rights and privileges of, a stockholder of the Company with
      respect to any Shares issuable upon the exercise of the Option, in whole or
      in
      part, prior to the issuance thereof.

     

    9. Acceleration
      of Exercisability of Option. 

     

    This
      Option shall become immediately fully exercisable, prior to the Vesting Date
      as
      disclosed in Section 3 herein, in the event that:

     

    (a) Prior
      to
      the termination of the Option pursuant to Section 6 hereof, and during the
      Optionee’s Continuous Service, any transaction or series of transactions
      constituting a Change in Control is consummated.

     

    (b) The
      termination of the Optionee’s Continuous Service by the Company is without
      Cause.

     

    10. No
      Right to Continued Employment.
      Neither
      the Option nor this Agreement shall confer upon the Optionee any right to
      continued employment or service with the Company.

     

    11. Law
      Governing.
      This
      Agreement shall be governed in accordance with and governed by the internal
      laws
      of the State of Delaware. 

     

    12.
      Interpretation
      / Provisions of Plan Control.
      This
      Agreement is subject to all the terms, conditions, and provisions of the Plan,
      including, without limitation, the amendment provisions thereof, and to such
      rules, regulations and interpretations relating to the Plan adopted by the
      Committee as may be in effect from time to time. If and to the extent that
      this
      Agreement conflicts or is inconsistent with the terms, conditions and provisions
      of the Plan, the Plan shall control, and this Agreement shall be deemed to
      be
      modified accordingly. The Optionee accepts the Option subject to all the terms,
      conditions and provisions of the Plan and this Agreement.

     

    13.
      Notices.
      Any
      notice under this Agreement shall be in writing and shall be deemed to have
      been
      duly given when delivered personally or when deposited in the United States
      mail, registered, postage prepaid, and addressed in the case of the Company,
      to
      the Company’s Chief Financial Officer at 3348 Peachtree Road NE, Suite 250 Tower
      Place 200, Atlanta, Georgia 30326, or if the Company should move its principal
      office, to such principal office, and, in the case of the Optionee, to the
      Optionee’s last permanent address as shown on the Company’s records, subject to
      the right of either party to designate some other addresses at any time
      hereafter in a notice satisfying the requirements of this Section. 

     

    IN
      WITNESS WHEREOF, the undersigned have executed this Agreement as of the ____
      day
      of ____________
      _______.

     

    [Signatures
      on Following Page]

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    COMPANY:

     

    
      	 	 	 
	 	
              XETHANOL
                CORPORATION

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Gary
                Flicker

              Chief
                Financial Officer

            
	 	 

    

     

    The
      Optionee acknowledges receipt of a copy of the Plan and represents that he
      or
      she has reviewed the Plan and this Option Agreement in their entirety, is
      familiar with and understands their terms, conditions and provisions, and hereby
      accepts this Option subject to all of the terms, conditions and provisions
      of
      the Plan and the Option Agreement. 

     

    

     

    
      
        	 	 	 
	Dated:
                ____________,
                _______ 	
                OPTIONEE:

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                

                Name:

              
	 	 

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

    

    SUBSCRIPTION
      FORM

     

    (To
      be
      executed only upon exercise of Option)

     

     

     

    
      	
            	To:	Xethanol Corporation	
            
	 	 	 	 
	
            	
            	3348 Peachtree Road NE	
            
	 	 	
            	 
	 	 	Suite 250 Tower Place 200	 
	 	 	
            	 
	 	 	Atlanta, Georgia 30326	 

    

     

    The
      undersigned, pursuant to the provisions set forth in the attached Option
      agreement, hereby irrevocably elects to purchase ________ shares of Xethanol
      Corporation Common Stock covered by such Option and herewith makes payment
      of
      $___________, representing the full purchase price for such shares at the price
      per share provided for in such Option.

     

     

    
      	Dated: ____________,
              _______	 	Name:
              ______________________________	 
	
            	 	
            	 
	
            	 	Signature:
              ___________________________	 
	 	 	
            	 
	 	 	Address:
              ____________________________	 
	 	 	
            	 
	 	 	
              
              
            
              _______________________	 

    

     

    
      
        
        

      

      
        6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]