Document:

Warrant
      Certificate No. 1

    

    NEITHER
      THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES ISSUABLE
      UPON
      THE EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS, AND NEITHER SUCH
      SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, ASSIGNED OR OTHERWISE
      TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS
      EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE
      SECURITIES LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE
      COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH
      COUNSEL AND OPINION ARE SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY
      BE
      OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED
      WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE
      SECURITIES
      LAWS.

    

       
      
        	 Effective
                Date: October 4, 2007	
                  Void
                  After: October 3, 2014

              

      

    

    

    

    UFOOD
      FRANCHISE COMPANY

    

    WARRANT
      TO PURCHASE COMMON STOCK

    

    UFood
      Franchise Company, a Nevada corporation (the “Company”),
      for
      value received on October 4, 2007 (the “Effective
      Date”),
      hereby issues to Spencer
      Trask Ventures, Inc.
      (the
      “Holder”)
      this
      Warrant (the “Warrant”)
      to
      purchase 800,000 shares (each such share
      as from
      time to time adjusted as hereinafter provided
      being a
“Warrant
      Share”
and
      all
      such shares being the “Warrant
      Shares”)
      of the
      Company’s Common Stock (as defined below), at the Exercise Price (as defined
      below), as adjusted from time to time as provided herein, on or before October
      3, 2014 (the “Expiration
      Date”),
      all
      subject to the following terms and conditions. Unless otherwise defined in
      this
      Warrant, terms appearing in initial capitalized form shall have the meaning
      ascribed to them in that certain Subscription Agreement (or Securities Purchase
      Agreement) between the Company and the purchaser signatory thereto pursuant
      to
      which this Warrant was issued (the “Subscription
      Agreement”
or
      the
“Securities
      Purchase Agreement”,
      as the
      case may be).

    

    As
      used
      in this Warrant, (i) “Business
      Day”
means
      any day other than Saturday, Sunday or any other day on which commercial banks
      in the City of New York, New York, are authorized or required by law or
      executive order to close; (ii) “Common
      Stock”
means
      the common stock of the Company, par value $0.001 per share, including
      any securities issued or issuable with respect thereto or into which or for
      which such shares may be exchanged for, or converted into, pursuant to any
      stock
      dividend, stock split, stock combination, recapitalization, reclassification,
      reorganization or other similar event; (iii) “Exercise
      Price”
means
      $1.00 per share of Common Stock, subject to adjustment as provided herein;
      (iv)
      “Trading
      Day”
means
      any
      day
      on which
      the Common Stock is traded on the primary national or regional stock exchange
      on
      which the Common Stock is listed, or if not so listed, the OTC Bulletin Board,
      if quoted thereon, is
      open
      for the transaction of business; and (v) “Affiliate”
means
      any person that, directly or indirectly, through one or more intermediaries,
      controls, is controlled by, or is under common control with, a person, as such
      terms are used and construed in Rule 144 promulgated
      under the Securities Act of 1933, as amended (the “Securities
      Act”).

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    1. DURATION
      AND EXERCISE OF WARRANTS

    

    (a) Exercise
      Period.
      The
      Holder may exercise this Warrant in whole or in part on any Business Day on
      or
      before 5:00 P.M., Eastern Time, on the Expiration Date, at which time this
      Warrant shall become void and of no value.

    

    (b) Exercise
      Procedures.

    

    (i) While
      this Warrant remains outstanding and exercisable in accordance with Section
      1(a), in addition to the manner set forth in Section 1(b)(ii) below, the Holder
      may exercise this Warrant in whole or in part
      at any
      time and from time to time
      by:

    

    (A) delivery
      to the Company of a duly executed copy of the Notice of Exercise attached as
      Exhibit
      A;

    

    (B) surrender
      of this Warrant to the Secretary of the Company at its principal offices or
      at
      such other office or agency as the Company may specify in writing to the Holder;
      and

    

    (C) payment
      of the
      then-applicable
      Exercise
      Price per share multiplied by the number of Warrant Shares being purchased
      upon
      exercise of the Warrant (such amount, the “Aggregate
      Exercise Price”)
      made
      in
      the form of cash, or by certified check, bank draft or money order payable
      in
      lawful money of the United States of America
      or in
      the form of a Cashless Exercise
      to the
      extent permitted in Section 1(b)(ii) below.

    

    (ii) In
      addition, the Holder may at anytime during the Exercise Period, in its sole
      discretion, exercise all or any part of the Warrant in a “cashless” or
“net-issue” exercise (a “Cashless
      Exercise”)
      by
      delivering to the Company (1) the Notice of Exercise and (2) the original
      Warrant, pursuant to which the Holder shall surrender the right to receive
      upon
      exercise of this Warrant, a number of Warrant Shares having a value (as
      determined below) equal to the Aggregate Exercise Price, in which case, the
      number of Warrant Shares to be issued to the Holder upon such exercise shall
      be
      calculated using the following formula:

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

                            

                            X
 = Y
      * (A
      - B)

                       A

    

    with:               X
      =
 the
      number of Warrant Shares to be issued to the Holder

    

    Y
      = the
      number of Warrant Shares with respect to which the Warrant is being
      exercised

    

    A
      = the
      fair
      value per share of Common
      Stock on
      the
      date of exercise of this Warrant

    

    B
      = the
      then-current Exercise Price of
      the
      Warrant

    

    Solely
      for the purposes of this paragraph, “fair value” per share of Common Stock shall
      mean (A) the average of the closing sales prices, as quoted on the primary
      national or regional stock exchange on which the Common Stock is listed, or,
      if
      not listed,
      the OTC
      Bulletin Board if quoted thereon, on the twenty
      (20)
      trading days immediately preceding the date on which the Notice of Exercise
      is
      deemed to have been sent to the Company, or (B) if the Common Stock is not
      publicly traded as set forth above, as reasonably and in good faith determined
      by the Board of Directors of the Company as of the date which the Notice of
      Exercise is deemed to have been sent to the Company.

    

    Notwithstanding
      the foregoing provisions of this Section 1(b)(ii), the Holder may not make
      a
      Cashless Exercise if and to the extent that such exercise would require the
      Company to issue a number of shares of Common Stock in excess of its authorized
      but unissued shares of Common Stock, less all amounts of Common Stock that
      have
      been reserved for issue upon the conversion of all outstanding securities
      convertible into shares of Common Stock and the exercise of all outstanding
      options, warrants and other rights exercisable for shares of Common Stock.
      If
      the Company does not have the requisite number of authorized but unissued shares
      of Common Stock to permit the Holder to make a Cashless Exercise, the Company
      shall use commercially reasonable efforts to obtain the necessary stockholder
      consent to increase the authorized number of shares of Common Stock to permit
      such Holder to make a Cashless Exercise pursuant to this Section
      1(b)(ii).

    

    (iii) Upon
      the
      exercise of this Warrant in compliance with the provisions of this Section
      1(b),
      and except as limited pursuant to the last paragraph of Section 1(b)(ii), the
      Company shall promptly issue and cause to be delivered to the Holder a
      certificate for the Warrant Shares purchased by the Holder. Each
      exercise of this Warrant shall be effective immediately prior to the close
      of
      business on the date (the “Date
      of Exercise”)
      that
      the
      conditions set forth in Section 1(b) have been satisfied, as the case may be.
      On
      the
      first Business Day following the date on which the Company has received each
      of
      the Notice of Exercise and the Aggregate Exercise Price (or notice of a Cashless
      Exercise in accordance with Section 1(b)(ii)) (the “Exercise
      Delivery Documents”),
      the
      Company shall transmit an acknowledgment of receipt of the Exercise Delivery
      Documents to the Company’s transfer agent (the “Transfer
      Agent”).
      On or
      before the third Business Day following the date on which the Company has
      received all of the Exercise Delivery Documents (the “Share
      Delivery Date”),
      the
      Company shall (X) provided that the Transfer Agent is participating in The
      Depository Trust Company (“DTC”)
      Fast
      Automated Securities Transfer Program, upon the request of the Holder, credit
      such aggregate number of shares of Common Stock to which the Holder is entitled
      pursuant to such exercise to the Holder’s or its designee’s balance account with
      DTC through its Deposit Withdrawal Agent Commission system, or (Y) if the
      Transfer Agent is not participating in the DTC Fast Automated Securities
      Transfer Program, issue and dispatch by overnight courier to the address as
      specified in the Notice of Exercise, a certificate, registered in the Company’s
      share register in the name of the Holder or its designee, for the number of
      shares of Common Stock to which the Holder is entitled pursuant to such
      exercise. Upon delivery of the Exercise Delivery Documents, the Holder shall
      be
      deemed for all corporate purposes to have become the holder of record of the
      Warrant Shares with respect to which this Warrant has been exercised,
      irrespective of the date of delivery of the certificates evidencing such Warrant
      Shares. If this Warrant is submitted in connection with any exercise pursuant
      to
      Section 1(a) and the number of Warrant Shares represented by this Warrant
      submitted for exercise is greater than the actual
      number
      of
      Warrant Shares being acquired upon such an
      exercise, then the Company shall as soon as practicable and in no event later
      than three (3) Business Days after any exercise and at its own expense, issue
      a
      new Warrant of
      like
      tenor
      representing the right to purchase the number of Warrant Shares purchasable
      immediately prior to such exercise under this Warrant, less the number of
      Warrant Shares with respect to which this Warrant is exercised.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    (iv) If
      the
      Company shall fail for any reason or for no reason to issue to the Holder,
      within three (3) Business Days of receipt of the Exercise Delivery Documents,
      a
      certificate for the number of shares of Common Stock to which the Holder is
      entitled and register such shares of Common Stock on the Company’s share
      register or to credit the Holder’s balance account with DTC for such number of
      shares of Common Stock to which the Holder is entitled upon the Holder’s
      exercise of this Warrant, and if on or after such Business Day the Holder
      purchases (in an open market transaction or otherwise) shares of Common Stock
      to
      deliver in satisfaction of a sale by the Holder of shares of Common Stock
      issuable upon such exercise that the Holder anticipated receiving from the
      Company (a “Buy-In”),
      then
      the Company shall, within three (3) Business Days after the Holder’s request and
      in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal
      to the Holder’s total purchase price (including brokerage commissions, if any)
      for the shares of Common Stock so purchased (the “Buy-In
      Price”),
      at
      which point the Company’s obligation to deliver such certificate (and to issue
      such shares of Common Stock) shall terminate, or (ii) promptly honor its
      obligation to deliver to the Holder a certificate or certificates representing
      such shares of Common Stock and pay cash to the Holder in an amount equal to
      the
      excess (if any) of the Buy-In Price over the product of (A) such number of
      shares of Common Stock, times (B) the closing bid price on
      the
      date of exercise. 

    

    (c) Partial
      Exercise.
      This
      Warrant shall be exercisable, either in its entirety or, from time to time,
      for
      part only of the number of Warrant Shares referenced by this Warrant. If this
      Warrant is exercised in part, the Company shall issue, at its expense, a new
      Warrant, in substantially the form of this Warrant, referencing such reduced
      number of Warrant Shares that remain subject to this Warrant.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (d) Disputes.
      In the
      case of a dispute as to the determination of the Exercise Price or the
      arithmetic calculation of the Warrant Shares, the Company shall promptly issue
      to the Holder the number of Warrant Shares that are not disputed and resolve
      such dispute in accordance with Section 15.

    

    2. ISSUANCE
      OF WARRANT SHARES

    

    (a) The
      Company covenants that all Warrant Shares will, upon issuance in accordance
      with
      the terms of this Warrant, be (i) duly authorized, fully paid and
      non-assessable, and (ii) free from all liens, charges and security interests,
      with the exception of claims arising through the acts or omissions of any Holder
      and except as arising from applicable Federal and state securities
      laws.

    

    (b) The
      Company shall register this Warrant upon records to be maintained by the Company
      for that purpose in the name of the record holder of such Warrant from time
      to
      time. The Company may deem and treat the registered Holder of this Warrant
      as
      the absolute owner thereof for the purpose of any exercise thereof, any
      distribution to the Holder thereof and for all other purposes.

    

    (c) The
      Company will not, by amendment of its articles of incorporation, by-laws or
      through any reorganization, transfer of assets, consolidation, merger,
      dissolution, issue or sale of securities or any other voluntary action, avoid
      or
      seek to avoid the observance or performance of any of the terms to be observed
      or performed hereunder by the Company, but will at all times in good faith
      assist in the carrying out of all the provisions of this Warrant and in the
      taking of all action necessary or appropriate in order to protect the rights
      of
      the Holder to exercise this Warrant, or against impairment of such
      rights.

    

    3. ADJUSTMENTS
      OF EXERCISE PRICE, NUMBER AND TYPE OF WARRANT SHARES

    

    (a) The
      Exercise Price and the number of shares purchasable upon the exercise of this
      Warrant shall be subject to adjustment from time to time upon the occurrence
      of
      certain events described in this Section 3(a); provided,
      that
      notwithstanding the provisions of this Section 3, the Company shall not be
      required to make any adjustment if and to the extent that such adjustment would
      require the Company to issue a number of shares of Common Stock in excess of
      its
      authorized but unissued shares of Common Stock, less all amounts of Common
      Stock
      that have been reserved for issue upon the conversion of all outstanding
      securities convertible into shares of Common Stock and the exercise of all
      outstanding options, warrants and other rights exercisable for shares of Common
      Stock. If the Company does not have the requisite number of authorized but
      unissued shares of Common Stock to make any adjustment, the Company shall use
      its commercially best efforts to obtain the necessary stockholder consent to
      increase the authorized number of shares of Common Stock to make such an
      adjustment pursuant to this Section 3(a).

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (i) Subdivision
      or Combination of Stock.
      In case
      the Company shall at any time subdivide (whether
      by way of stock dividend, stock split or otherwise) its
      outstanding shares of Common Stock into a greater number of shares, the Exercise
      Price in effect immediately prior to such subdivision shall be proportionately
      reduced
      and the
      number of Warrant Shares shall be proportionately increased, and conversely,
      in
      case the outstanding shares of Common Stock of the Company shall be combined
      (whether
      by way of stock combination, reverse stock split or otherwise) into
      a
      smaller number of shares, the Exercise Price in effect immediately prior to
      such
      combination shall be proportionately increased
      and the
      number of Warrant Shares shall be proportionately decreased. The Exercise Price
      and the Warrant Shares, as so adjusted, shall be readjusted in the same manner
      upon the happening of any successive event or events described in this Section
      3(a)(i).

    

    (ii) Dividends
      in Stock, Property, Reclassification.
      If at
      any time, or from time to time, the holders of Common Stock (or any shares
      of
      stock or other securities at the time receivable upon the exercise of this
      Warrant) shall have received or become entitled to receive, without payment
      therefore:

    

    (A) any
      shares of stock or other securities that are at any time directly or indirectly
      convertible into or exchangeable for Common Stock, or any rights or options
      to
      subscribe for, purchase or otherwise acquire any of the foregoing by way of
      dividend or other distribution, or

    

    (B) additional
      stock or other securities or property (including cash) by way of spin-off,
      split-up, reclassification, combination of shares or similar corporate
      rearrangement (other than shares of Common Stock issued as a stock split or
      adjustments in respect of which shall be covered by the terms of Section 3(a)(i)
      above),

    

    then
      and
      in each such case, the Exercise
      Price and the number of Warrant Shares to be obtained upon exercise of this
      Warrant shall be adjusted proportionately, and the Holder
      hereof shall, upon the exercise of this Warrant, be entitled to receive, in
      addition to the number of shares of Common Stock receivable thereupon, and
      without payment of any additional consideration therefor, the amount of stock
      and other securities and property (including cash in the cases referred to
      above) that such Holder would hold on the date of such exercise had such Holder
      been the holder of record of such Common Stock as of the date on which holders
      of Common Stock received or became entitled to receive such shares or all other
      additional stock and other securities and property.
      The
      Exercise Price and the Warrant Shares, as so adjusted, shall be readjusted
      in
      the same manner upon the happening of any successive event or events described
      in this Section 3(a)(ii).

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    (iii) Reorganization,
      Reclassification, Consolidation, Merger or Sale.
      If any
      recapitalization, reclassification or reorganization of the capital stock of
      the
      Company, or any consolidation or merger of the Company with another corporation,
      or the sale of all or substantially all of its assets or other
      transaction shall be effected in such a way that holders of Common Stock shall
      be entitled to receive stock, securities, or other assets or property (an
“Organic
      Change”),
      then,
      as a condition of such Organic Change, lawful and adequate provisions shall
      be
      made by the Company whereby the Holder hereof shall thereafter have the right
      to
      purchase and receive (in lieu of the shares of the Common Stock of the Company
      immediately theretofore purchasable and receivable upon the exercise of the
      rights represented by this Warrant) such shares of stock, securities or other
      assets or property as may be issued or payable with respect to or in exchange
      for a number of outstanding shares of such Common Stock equal to the number
      of
      shares of such stock immediately theretofore purchasable and receivable assuming
      the full exercise of the rights represented by this Warrant. In the event of
      any
      Organic Change, appropriate provision shall be made by the Company with respect
      to the rights and interests of the Holder of this Warrant to the end that the
      provisions hereof (including, without limitation, provisions for adjustments
      of
      the Exercise Price and of the number of shares purchasable and receivable upon
      the exercise of this Warrant) shall thereafter be applicable, in relation to
      any
      shares of stock, securities or assets thereafter deliverable upon the exercise
      hereof. The Company will not effect any such consolidation, merger or sale
      unless, prior to the consummation thereof, the successor corporation (if other
      than the Company) resulting from such consolidation or merger
      or
the
      corporation purchasing such assets shall assume by written instrument reasonably
      satisfactory in form and substance to the Holder executed and mailed or
      delivered to the registered Holder hereof at the last address of such Holder
      appearing on the books of the Company, the obligation to deliver to such Holder
      such shares of stock, securities or assets as, in accordance
      with the foregoing provisions, such Holder may be entitled to
      purchase. If
      there
      is an Organic Change, then the Company shall cause to be mailed to the Holder
      at
      its last address as it shall appear on the books and records of the Company,
      at
      least 10 calendar days before the effective date of the Organic Change, a notice
      stating the date on which such Organic Change is expected to become effective
      or
      close, and the date as of which it is expected that holders of the Common Stock
      of record shall be entitled to exchange their shares for securities, cash,
      or
      other property delivered upon such Organic Change; provided,
      that
      the failure to mail such notice or any defect therein or in the mailing thereof
      shall not affect the validity of the corporate action required to be specified
      in such notice. The Holder is entitled to exercise this Warrant during the
      10-day period commencing on the date of such notice to the effective date of
      the
      event triggering such notice. In
      any
      event, the successor corporation (if other than the Company) resulting from
      such
      consolidation or merger or the corporation purchasing such assets shall be
      deemed to assume such obligation to deliver to such Holder such shares of stock,
      securities or assets even in the absence of a written instrument assuming such
      obligation to the extent such assumption occurs by operation of law. 

    

    (b) Certificate
      as to Adjustments.
      Upon
      the occurrence of each adjustment or readjustment pursuant to this Section
      3,
      the Company at its expense shall promptly compute such adjustment or
      readjustment in accordance with the terms hereof and furnish to each Holder
      of
      this Warrant a certificate setting forth such adjustment or readjustment and
      showing in detail the facts upon which such adjustment or readjustment is based.
      The Company shall
      promptly
      furnish
      or cause to be furnished to such Holder a like certificate setting forth: (i)
      such adjustments and readjustments; and (ii) the number of shares and the
      amount, if any, of other property which at the time would be received upon
      the
      exercise of the Warrant.

    

    (c) Certain
      Events.
      If any
      event occurs as to which the other provisions of this Section 3 are not strictly
      applicable but the lack of any adjustment would not fairly protect the purchase
      rights of the Holder under this Warrant in accordance with the basic intent
      and
      principles of such provisions, or if strictly applicable would not fairly
      protect the purchase rights of the Holder under this Warrant in accordance
      with
      the basic intent and principles of such provisions, then the Company's Board
      of
      Directors will, in good faith, make an appropriate adjustment to protect the
      rights of the Holder; provided,
      that no
      such adjustment pursuant to this Section 3(c) will increase the Exercise Price
      or decrease the number of Warrant Shares as otherwise determined pursuant to
      this Section 3.

    
      
        
        

      

      
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    (d) Adjustment
      of Exercise Price Upon Issuance of Additional Shares of Common
      Stock.
      In the
      event
      the
      Company shall at any time prior to the eighteenth month anniversary of the
      Effective Date issue Additional Shares of Common Stock, as defined below,
      without consideration or for a consideration per share less than the Exercise
      Price in effect immediately prior to such issue, then the Exercise Price shall
      be reduced, concurrently with such issue, to a price (calculated to the nearest
      cent) determined by multiplying such Exercise Price by a fraction, (A) the
      numerator of which shall be (1) the number of shares of Common Stock outstanding
      immediately prior to such issue plus (2) the number of shares of Common Stock
      which the aggregate consideration received or to be received by the Company
      for
      the total number of Additional Shares of Common Stock so issued would purchase
      at such Exercise Price; and (B) the denominator of which shall be the number
      of
      shares of Common Stock outstanding immediately prior to such issue plus the
      number of such Additional Shares of Common Stock so issued; provided
      that,
      (i) for the purpose of this Section 3(d), all shares of Common Stock issuable
      upon conversion or exchange of convertible securities outstanding immediately
      prior to such issue shall be deemed to be outstanding, and (ii) the number
      of
      shares of Common Stock deemed issuable upon conversion or exchange of such
      outstanding convertible securities shall be determined without giving effect
      to
      any adjustments to the conversion or exchange price or conversion or exchange
      rate of such convertible securities resulting from the issuance of Additional
      Shares of Common Stock that is the subject of this calculation. For purposes
      of
      this Warrant, “Additional Shares of Common Stock” shall mean all shares of
      Common Stock issued by the Company after the Effective Date (including without
      limitation any shares of Common Stock issuable upon conversion or exchange
      of
      any convertible securities or upon exercise of any option or warrant, on an
      as-converted basis), other than: (i) shares of Common Stock issued or
      issuable upon conversion or exchange of any convertible securities or exercise
      of any options outstanding on the Effective Date; (ii) shares of Common
      Stock issued or issuable by reason of a dividend, stock split, split-up or
      other
      distribution on shares of Common Stock that is covered by Sections 3(a)(i)
      through 3(a)(iii) above; or (iii) shares of Common Stock (or options with
      respect thereto) issued or issuable to employees or directors of, or consultants
      to, the Company or any of its subsidiaries pursuant to a plan, agreement or
      arrangement approved by the Board of Directors of the Company. The provisions
      of
      this Section 3(d) shall not operate to increase the Exercise Price.

    

    4. TRANSFERS
      AND EXCHANGES OF WARRANT AND WARRANT SHARES

    

    (a) Registration
      of Transfers and Exchanges.
      Subject
      to Section 4(c), upon the Holder’s surrender of this Warrant, with a duly
      executed copy of the Form of Assignment attached as Exhibit
      B,
      to the
      Secretary of the Company at its principal offices or at such other office or
      agency as the Company may specify in writing to the Holder, the Company shall
      register the transfer of all or any portion of this Warrant. Upon such
      registration of transfer, the Company shall issue a new Warrant, in
      substantially the form of this Warrant, evidencing the acquisition rights
      transferred to the transferee and a new Warrant, in similar form, evidencing
      the
      remaining acquisition rights not transferred, to the Holder requesting the
      transfer.

    
      
        
        

      

      
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    (b) Warrant
      Exchangeable for Different Denominations.
      The
      Holder may exchange this Warrant for a new Warrant or Warrants, in substantially
      the form of this Warrant, evidencing in the aggregate the right to purchase
      the
      number of Warrant Shares which may then be purchased hereunder, each of such
      new
      Warrants to be dated the date of such exchange and to represent the right to
      purchase such number of Warrant Shares as shall be designated by the Holder.
      The
      Holder shall surrender this Warrant with duly executed instructions regarding
      such
      re-certification of this Warrant to the Secretary of the Company at its
      principal offices or at such other office or agency as the Company may specify
      in writing to the Holder.

    

    (c) Restrictions
      on Transfers.
      This
      Warrant may not be transferred at any time without (i) registration under the
      Securities Act or (ii) an exemption from such registration and a written opinion
      of legal counsel addressed to the Company that the proposed transfer of the
      Warrant may be effected without registration under the Securities Act, which
      opinion will be in form and from counsel reasonably satisfactory to the Company.
      Notwithstanding
      anything contained herein, the Company shall, upon written instructions to
      be
      delivered to the Company within ninety (90) days following the date hereof,
      transfer all or a portion of this Warrant to officers, directors, employees
      and
      other registered agents or associated persons of the Holder.

    

    (d) Permitted
      Transfers and Assignments.
      Notwithstanding any provision to the contrary in this Section 4, the Holder
      may
      transfer, with or without consideration, this Warrant or any of the Warrant
      Shares (or a portion thereof) to the Holder’s Affiliates (as such term is
      defined under Rule 144 of the Securities Act) without obtaining the opinion
      from
      counsel that may be required by Section 4(c)(ii), provided,
      that the
      Holder delivers to the Company and its counsel certification, documentation,
      and
      other assurances reasonably required by the Company’s counsel to enable the
      Company’s counsel to render an opinion to the Company’s Transfer Agent that such
      transfer does not violate applicable securities laws.

    

    5. MUTILATED
      OR MISSING WARRANT CERTIFICATE

    

    If
      this
      Warrant is mutilated, lost, stolen or destroyed, upon request by the Holder,
      the
      Company will, at its expense,
      issue,
      in exchange for and upon cancellation of the mutilated Warrant, or in
      substitution for the lost, stolen or destroyed Warrant, a new Warrant, in
      substantially the form of this Warrant, representing the right to acquire the
      equivalent number of Warrant Shares; provided,
      that,
      as a prerequisite to the issuance of a substitute Warrant, the Company may
      require satisfactory evidence of loss, theft or destruction as well as an
      indemnity from the Holder of a lost, stolen or destroyed Warrant.

    

    6. PAYMENT
      OF TAXES

    

    The
      Company will pay all transfer and stock issuance taxes attributable to the
      preparation, issuance and delivery of this Warrant and the Warrant Shares
(and
      replacement Warrants) including,
      without limitation, all documentary and stamp taxes; provided,
      however,
      that
      the Company shall not be required to pay any tax in respect of the transfer
      of
      this Warrant, or the issuance or delivery of certificates for Warrant Shares
      or
      other securities in respect of the Warrant Shares to any person or entity other
      than to the Holder.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    7. FRACTIONAL
      WARRANT SHARES

    

    No
      fractional Warrant Shares shall be issued upon exercise of this Warrant. The
      Company, in lieu of issuing any fractional Warrant Share, shall round up the
      number of Warrant Shares issuable to nearest whole share.

    

    8. NO
      STOCK
      RIGHTS AND LEGEND

    

    No
      holder
      of this Warrant, as such, shall be entitled to vote or be deemed the holder
      of
      any other securities of the Company that may at any time be issuable on the
      exercise hereof, nor shall anything contained herein be construed to confer
      upon
      the holder of this Warrant, as such, the rights of a stockholder of the Company
      or the right to vote for the election of directors or upon any matter submitted
      to stockholders at any meeting thereof,
      or give
      or withhold consent to any corporate action or to receive notice of meetings
      or
      other actions affecting stockholders (except as provided herein), or to receive
      dividends or subscription rights or otherwise (except as provide
      herein).

    

    Each
      certificate for Warrant Shares initially issued upon the exercise of this
      Warrant, and each certificate for Warrant Shares issued to any subsequent
      transferee of any such certificate, shall be stamped or otherwise imprinted
      with
      a legend in substantially the following form:

    

    “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS,
      AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD,
      PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT
      WITH RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE
      SECURITIES LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE
      COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH
      COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH
      SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER
      CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR
      APPLICABLE STATE SECURITIES LAWS.”

    

    9. [Intentionally
      Omitted]

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    10. NOTICES

    

    All
      notices, consents, waivers, and other communications under this Warrant must
      be
      in writing and will be deemed given to a party when (a) delivered to the
      appropriate address by hand or by nationally recognized overnight courier
      service (costs prepaid); (b) sent by facsimile or e-mail with confirmation
      of
      transmission by the transmitting equipment; (c) received or rejected by the
      addressee, if sent by certified mail, return receipt requested, if to the
      registered Holder hereof; or (d) seven days after the placement of the notice
      into the mails (first class postage prepaid), to the Holder at the address,
      facsimile number, or e-mail address furnished by the registered Holder to the
      Company in accordance with the Subscription Agreement and/or Securities Purchase
      Agreement by and between the Company and the Holder, or if to the Company,
      to it
      at 255 Washington Street, Suite 100, Newton, MA 02458, Attention: George
      Naddaff, Chief Executive Officer (or to such other address, facsimile number,
      or
      e-mail address as the Holder or the Company as a party may designate by notice
      the other party) with a copy to Robinson & Cole LLP, 695 East Main Street,
      Stamford, CT 06904, Attention: Richard A. Krantz, Esq.

    

    11. SEVERABILITY

    

    If
      a
      court of competent jurisdiction holds any provision of this Warrant invalid
      or
      unenforceable, the other provisions of this Warrant will remain in full force
      and effect. Any provision of this Warrant held invalid or unenforceable only
      in
      part or degree will remain in full force and effect to the extent not held
      invalid or unenforceable.

    

    12. BINDING
      EFFECT

    

    This
      Warrant shall be binding upon and inure to the sole and exclusive benefit of
      the
      Company, its successors and assigns, the registered Holder or Holders from
      time
      to time of this Warrant and the Warrant Shares.

    

    13. SURVIVAL
      OF RIGHTS AND DUTIES

    

    This
      Warrant shall terminate and be of no further force and effect on the earlier
      of
      5:00 P.M., Eastern Time, on the Expiration Date or the date on which this
      Warrant has been exercised in full.

    

    14. GOVERNING
      LAW

    

    This
      Warrant will be governed by and construed under the laws of the State of
New
      York
      without regard to conflicts of laws principles that would require the
      application of any other law.

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    15. DISPUTE
      RESOLUTION

    

    In
      the
      case of a dispute as to the determination of the Exercise Price or the
      arithmetic calculation of the Warrant Shares, the Company shall submit the
      disputed determinations or arithmetic calculations via facsimile within two
      Business Days of receipt of the Notice of Exercise giving rise to such dispute,
      as the case may be, to the Holder. If the Holder and the Company are unable
      to
      agree upon such determination or calculation of the Exercise Price or the
      Warrant Shares within three Business Days of such disputed determination or
      arithmetic calculation being submitted to the Holder, then the Company shall,
      within two Business Days, submit via facsimile (a) the disputed determination
      of
      the Exercise Price to an independent, reputable investment bank selected by
      the
      Company and approved by the Holder or (b) the disputed arithmetic calculation
      of
      the Warrant Shares to the Company’s independent, outside accountant. The Company
      shall cause at its expense the investment bank or the accountant, as the case
      may be, to perform the determinations or calculations and notify the Company
      and
      the Holder of the results no later than ten (10) Business Days from the time
      it
      receives the disputed determinations or calculations. Such investment bank’s or
      accountant’s determination or calculation, as the case may be, shall be binding
      upon all parties absent demonstrable error. 

    16. NOTICES
      OF RECORD DATE

    

    Upon
      (a)
      any establishment by the Company of a record date of the holders of any class
      of
      securities for the purpose of determining the holders thereof who are entitled
      to receive any dividend or other distribution, or right or option to acquire
      securities of the Company, or any other right, or (b) any capital
      reorganization, reclassification, recapitalization, merger or consolidation
      of
      the Company with or into any other corporation, any transfer of all or
      substantially all the assets of the Company, or any voluntary or involuntary
      dissolution, liquidation or winding up of the Company, or the sale, in a single
      transaction, of a majority of the Company’s voting stock (whether newly issued,
      or from treasury, or previously issued and then outstanding, or any combination
      thereof), the Company shall mail to the Holder at least ten (10) Business Days,
      or such longer period as may be required by law, prior to the record date
      specified therein, a notice specifying (i) the date established as the record
      date for the purpose of such dividend, distribution, option or right and a
      description of such dividend, option or right, (ii) the date on which any such
      reorganization, reclassification, transfer, consolidation, merger, dissolution,
      liquidation or winding up, or sale is expected to become effective and (iii)
      the
      date, if any, fixed as to when the holders of record of Common Stock shall
      be
      entitled to exchange their shares of Common Stock for securities or other
      property deliverable upon such reorganization, reclassification, transfer,
      consolation, merger, dissolution, liquidation or winding up.

    

    17. RESERVATION
      OF SHARES

    

    The
      Company shall reserve and keep available out of its authorized but unissued
      shares of Common Stock for issuance upon the exercise of this Warrant, free
      from
      pre-emptive rights, such number of shares of Common Stock for which this Warrant
      shall from time to time be exercisable.
      The
      Company will take all such reasonable action as may be necessary to assure
      that
      such Warrant Shares may be issued as provided herein without violation of any
      applicable law or regulation. Without limiting the generality of the foregoing,
      the Company covenants that it will use commercially reasonable efforts to take
      all such action as may be necessary or appropriate in order that the Company
      may
      validly and legally issue fully paid and nonassessable Warrant Shares upon
      the
      exercise of this Warrant and use commercially reasonable efforts to obtain
      all
      such authorizations, exemptions or consents, including but not limited to
      consents from the Company’s stockholders or Board of Directors or any public
      regulatory body, as may be necessary to enable the Company to perform its
      obligations under this Warrant.

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    18. NO
      THIRD
      PARTY RIGHTS

    

    This
      Warrant is not intended, and will not be construed, to create any rights in
      any
      parties other than the Company and the Holder, and no person or entity may
      assert any rights as third-party beneficiary hereunder.

    

    [SIGNATURE
      PAGE FOLLOWS]

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be duly executed as
      of
      the date first set forth above.

    

    

    
      	 	
              UFOOD
                FRANCHISE COMPANY

            
	 	 	 
	 	 	 
	 	
              By:___________________________

            
	 	
              Name:

            	
              Brent
                Hahn

            
	 	
              Title:

            	
              Chief
                Executive Officer

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    NOTICE
      OF
      EXERCISE

    

    (To
      be
      executed by the Holder of Warrant if such Holder
      desires
      to exercise Warrant)

    

    To
      UFood
      Franchise Company:

    

    The
      undersigned hereby irrevocably elects to exercise this Warrant and to purchase
      thereunder, ___________________ full shares of UFood Franchise Company common
      stock issuable upon exercise of the Warrant and delivery of:

    

    (1) $_________
      (in cash as provided for in the foregoing Warrant) and any applicable taxes
      payable by the undersigned pursuant to such Warrant; and

    

    (2) __________
      shares of Common Stock (pursuant to a Cashless Exercise in accordance with
      Section 1(b)(ii) of the Warrant) (check here if the undersigned desires to
      deliver an unspecified number of shares equal the number sufficient to effect
      a
      Cashless Exercise [___]).

    

    The
      undersigned requests that certificates for such shares be issued in the name
      of:

    

    _________________________________________

    (Please
      print name, address and social security or federal employer

    identification
      number (if applicable))

    

    _________________________________________

    

    _________________________________________

    

    If
      the
      shares issuable upon this exercise of the Warrant are not all of the Warrant
      Shares which the Holder is entitled to acquire upon the exercise of the Warrant,
      the undersigned requests that a new Warrant evidencing the rights not so
      exercised be issued in the name of and delivered to:

    

    _________________________________________

    (Please
      print name, address and social security or federal employer

    identification
      number (if applicable))

    

    _________________________________________

    

    _________________________________________

     

    Name
      of
      Holder (print): __________________

    (Signature):
      ___________________________

    (By:)
      ________________________________

    (Title:)
      _______________________________

    Dated:
      _______________________________

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      B

    

    FORM
      OF
      ASSIGNMENT

    

    FOR
      VALUE
      RECEIVED, ___________________________________ hereby sells, assigns and
      transfers to each assignee set forth below all of the rights of the undersigned
      under the Warrant (as defined in and evidenced by the attached Warrant) to
      acquire the number of Warrant Shares set opposite the name of such assignee
      below and in and to the foregoing Warrant with respect to said acquisition
      rights and the shares issuable upon exercise of the Warrant:

     

    
      
        	
                Name
                  of Assignee

              	 	
                Address

              	 	
                Number
                  of Shares

              
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

      

    

    

    If
      the
      total of the Warrant Shares are not all of the Warrant Shares evidenced by
      the
      foregoing Warrant, the undersigned requests that a new Warrant evidencing the
      right to acquire the Warrant Shares not so assigned be issued in the name of
      and
      delivered to the undersigned.

    

    

    Name
      of
      Holder (print): ________________________

    (Signature):
      ___________________________________

    (By:)
      _________________________________________

    (Title:)
      ________________________________________

    Dated:
      ________________________________________UFOOD
      RESTAURANT GROUP, INC. 

    

    2007
      EQUITY INCENTIVE PLAN

     

    Section
      1. Purpose

    

    The
      purpose of the UFood Restaurant Group, Inc. 2007 Equity Incentive Plan
      (the “2007 Plan”) is to attract and retain employees, directors and
      consultants, to provide an incentive for them to assist UFood Restaurant Group,
      Inc. (the “Corporation”) to achieve its long-range performance goals, and to
      enable them to participate in the long-term growth of the
      Corporation.

    

    Section
      2. Definitions

    

    
      	
              (a)

            	
              “Award”
                means any Option, Stock Appreciation Right, Restricted Stock Unit,
                Restricted Stock or Performance Grant awarded under the
                2007 Plan.

            

    

    

    
      	(b)	
              “Board”
                means the Board of Directors of the
                Corporation.

            

    

    

    
      	
              (c)

            	
              “Code”
                means the Internal Revenue Code of 1986, as amended from time to
                time, and
                the regulations promulgated
                thereunder.

            

    

    

    
      	
              (d)

            	
              “Committee”
                means the Compensation Committee of the Board, or such other committee
                of
                not less than two members of the Board appointed by the Board to
                administer the 2007 Plan, provided that the members of such Committee
                must be Non-Employee Directors as defined in Rule 16b-3(b) promulgated
                under the Securities Exchange Act of 1934, as
                amended.

            

    

    

    
      	
              (e)

            	
              “Common
                Stock” or “Stock” means the Common Stock, par value $0.001 per share, of
                the Corporation.

            

    

    

    
      	(f)	
              “Corporation”
                means UFood Restaurant Group, Inc.

            

    

    

    
      	
              (g)

            	
              “Designated
                Beneficiary” means the beneficiary designated by a Participant, in a
                manner determined by the Board, to receive amounts due or exercise
                rights
                of the Participant in the event of the Participant’s death. In the absence
                of an effective designation by a Participant, Designated Beneficiary
                shall
                mean the Participant’s estate.

            

    

    

    
      	
              (h)

            	
              “Director”
                means any non-employee member of the
                Board.

            

    

    

    
      	
              (i)

            	
              “Fair
                Market Value” means, with respect to Common Stock or any other property,
                the fair market value of such property as determined by the Board
                in good
                faith or in the manner established by the Board from time to
                time.

            

    

    

    
      	
              (j)

            	
              “Incentive
                Stock Option” means an option to purchase shares of Common Stock, awarded
                to a Participant under Section 6, which is intended to meet the
                requirements of Section 422 of the Code or any successor
                provision.

            

    

    
      
        
 

         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              (k)

            	
              “Nonqualified
                Stock Option” means an option to purchase shares of Common Stock, awarded
                to a Participant under Section 6, which is not intended to be an
                Incentive
                Stock Option.

            

    

    

    
      	(l)	
              “Option”
                means an Incentive Stock Option or a Nonqualified Stock
                Option.

            

    

    

    
      	
              (m)

            	
              “Participant”
                means a person selected by the Board to receive an Award under the
                2007 Plan.

            

    

    

    
      	(n)	
              “Performance
                Grant” means an award to a Participant under
                Section 9.

            

    

    

    
      	
              (o)

            	
              “Restricted
                Period” means the period of time selected by the Board during which an
                award of Restricted Stock may be forfeited to the
                Corporation.

            

    

    

    
      	
              (p)

            	
              “Restricted
                Stock” means shares of Common Stock subject to forfeiture, awarded to a
                Participant under Section 8.

            

    

    

    
      	
              (q)

            	
              “Restricted
                Stock Unit” or “RSU” means units granted to a Participant that are settled
                in Stock and awarded to a Participant under Section 10. An RSU is
                a
                bookkeeping entry representing the equivalent of one share of
                Stock.

            

    

    

    
      	
              (r)

            	
              “Stock
                Appreciation Right” or “SAR” means a right to receive any excess in value
                of shares of Common Stock over the reference price, awarded to a
                Participant under Section 7.

            

    

    

    Section
      3. Administration

    

    The
      Board
      shall have the responsibility to administer the 2007 Plan. However, the
      Board may designate the Committee to administer the 2007 Plan on its
      behalf. The Board, or if designated, the Committee, shall have authority to
      adopt, alter and repeal such administrative rules, guidelines and practices
      governing the operation of the 2007 Plan as it shall from time to time
      consider advisable, and to interpret the provisions of the 2007 Plan. The
      Board’s decisions shall be final and binding. To the extent permitted by
      applicable law and permitted to meet the requirements of Rule 16b-3
      promulgated under the Securities Exchange Act of 1934, as amended, the Board
      may
      delegate to the Committee the power to make Awards to Participants and all
      determinations under the 2007 Plan with respect thereto.

    

    Section
      4. Eligibility

    

    All
      employees and, in the case of Awards other than Incentive Stock Options,
      Directors, advisors and consultants of the Corporation capable of contributing
      significantly to the successful performance of the Corporation are eligible
      to
      be Participants in the 2007 Plan.

    
      
        
 

         

      

      
         

        
          

        

      

      
         

      

    

    

    Section
      5. Stock
      Available for Awards

    

    
      	
              (a)

            	
              Subject
                to adjustment under subsection (b), Awards may be made under the
                2007 Plan of up to a maximum of 3,000,000 shares of Common Stock. If
                any Award in respect of shares of Common Stock granted under the
                2007 Plan expires, terminates, is terminated unexercised or is
                forfeited for any reason or settled in a manner that results in fewer
                shares outstanding than were initially awarded, including without
                limitation the surrender of shares in payment for the Award or any
                tax
                obligation thereon, the shares subject to such Award or so surrendered,
                as
                the case may be, to the extent of such expiration, termination, forfeiture
                or decrease, shall again be available for award under the 2007 Plan,
                subject, however, in the case of Incentive Stock Options, to any
                limitation required under the Code. Common Stock issued through the
                assumption or substitution of outstanding grants from an acquired
                corporation shall not reduce the shares available for Awards under
                the
                2007 Plan. Shares issued under the 2007 Plan may consist in
                whole or in part of authorized but unissued shares or treasury
                shares.

            

    

    

    
      	
              (b)

            	
              In
                the event that the Board determines that any stock dividend, extraordinary
                cash dividend, creation of a class of equity securities, recapitalization,
                stock split, reverse stock split, reclassification, reorganization,
                merger, consolidation, split-up, spin-off, liquidation, combination,
                exchange of shares, warrants or rights offering to purchase Common
                Stock
                at a price substantially below fair market value, or other similar
                transaction affects the Common Stock such that an adjustment is required
                in order to preserve the benefits or potential benefits intended
                to be
                made available under the 2007 Plan, then the Board, subject, in the
                case of Incentive Stock Options, to any limitation required under
                Section
                422 of the Code, and with respect to other Awards, any applicable
                requirements of Section 409A of the Code, shall equitably adjust
                any or
                all of (i) the number and kind of shares in respect of which Awards
                may be made under the 2007 Plan, (ii) the number and kind of
                shares subject to outstanding Awards, and (iii) the award, exercise
                or conversion price with respect to any of the foregoing, and if
                considered appropriate, the Board may make provision for a cash payment
                with respect to an outstanding Award, provided that the number of
                shares
                subject to any Award shall always be a whole
                number.

            

    

    

    Section
      6. Stock
      Options

    

    
      	
              (a)

            	
              Subject
                to the provisions of the 2007 Plan, the Board may award Incentive
                Stock Options and Nonqualified Stock Options and determine the number
                of
                shares to be covered by each Option, the option price therefore and
                the
                conditions and limitations applicable to the exercise of the Option.
                The
                terms and conditions of Incentive Stock Options shall be subject
                to and
                comply with Section 422 of the Code, or any successor provision,
                and any
                regulations thereunder.

            

    

    

    
      	
              (b)

            	
              The
                Board shall establish the option price at the time each Option is
                awarded,
                which price shall not be less than 100% of the Fair Market Value
                of the
                Common Stock on the date of award with respect to such
                Option.

            

    

    
      
         

        

         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              (c)

            	
              Each
                Option shall be exercisable at such times and subject to such terms
                and
                conditions as the Board may specify in the applicable Award or thereafter.
                The Board may impose such conditions with respect to the exercise
                of
                Options, including conditions relating to applicable federal or state
                securities laws, as it considers necessary or
                advisable.

            

    

    

    
      	
              (d)

            	
              No
                shares shall be delivered pursuant to any exercise of an Option until
                payment in full of the option price therefore is received by the
                Corporation. Such payment may be made in whole or in part in cash
                or, to
                the extent permitted by the Board at or after the award of the Option,
                by
                delivery of shares of Common Stock owned by the option holder, valued
                at
                their Fair Market Value on the date of delivery, by the reduction
                of the
                shares of Common Stock that the optionholder would be entitled to
                receive
                upon exercise of the Option, such shares to be valued at their Fair
                Market
                Value on the date of exercise, less their option price (a so-called
                “cashless exercise”), or such other lawful consideration as the Board may
                determine. 

            

    

    

    
      	
              (e)

            	
              In
                the case of Incentive Stock Options the following additional conditions
                shall apply to the extent required under Section 422 of the Code
                for the
                options to qualify as Incentive Stock
                Options:

            

    

    

    
      	 	
              (i)

            	
              Such
                options shall be granted only to employees of the Corporation, and
                shall
                not be granted to any person who owns stock that possesses more than
                ten
                percent of the total combined voting power of all classes of stock
                of the
                Corporation or of its parent or subsidiary corporation (as those
                terms are
                defined in Section 422(b) of the Code), unless, at the time of such
                grant,
                the exercise price of such option is at least 110% of the fair market
                value of the stock that is subject to such option and the option
                shall not
                be exercisable more than five years after the date of
                grant;

            

    

    

    
      	
            	(ii)	
              Such
                options shall, by their terms, be transferable by the optionholder
                only by
                the laws of descent and distribution, and shall be exercisable only
                by
                such optionholder during his
                lifetime.

            

    

    

    
      	
            	(iii)	
              Such
                options shall not be granted more than ten years from the effective
                date
                of the 2007 Plan or any subsequent amendment to the 2007 Plan
                approved by the stockholders of the Corporation which extends this
                Incentive Stock Option expiration date, and shall not be exercisable
                more
                than ten years from the date of
                grant.

            

    

    

    
      	 	
              (iv)

            	
              Notwithstanding
                other provisions hereof, the aggregate Fair Market Value (determined
                at
                the time the Incentive Stock Option is granted) of the Common Stock
                with
                respect to which Incentive Stock Options are exercisable for the
                first
                time by the employee during any calendar year (under all such plans
                of the
                employee’s employer corporation and its parent and subsidiary
                corporations) shall not exceed
                $100,000.

            

    

    
      
        
 

         

      

      
         

        
          

        

      

      
         

      

    

    

    Section
      7. Stock
      Appreciation Rights

    

    Subject
      to the provisions of the 2007 Plan, the Board may award SARs in tandem with
      an Option (at or after the award of the Option), or alone and unrelated to
      an
      Option. The Board shall establish the option price at the time each SAR is
      awarded, which price shall not be less than 100% of the Fair Market Value of
      the
      Common Stock on the date of award with respect to SARs. SARs granted in tandem
      with an Option shall terminate to the extent that the related Option is
      exercised, and the related Option shall terminate to the extent that the tandem
      SARs are exercised.

    

    Section
      8. Restricted
      Stock

    

    
      	
              (a)

            	
              Subject
                to the provisions of the 2007 Plan, the Board may award shares of
                Restricted Stock and determine the duration of the Restricted Period
                during which, and the conditions under which, the shares may be forfeited
                to the Corporation and the other terms and conditions of such Awards.
                Shares of Restricted Stock may be issued for no cash consideration
                or such
                minimum consideration as may be required by applicable
                law.

            

    

    

    
      	
              (b)

            	
              Shares
                of Restricted Stock may not be sold, assigned, transferred, pledged
                or
                otherwise encumbered, except as permitted by the Board, during the
                Restricted Period. Shares of Restricted Stock shall be evidenced
                in such
                manner as the Board may determine. Any certificates issued in respect
                of
                shares of Restricted Stock shall be registered in the name of the
                Participant and unless otherwise determined by the Board deposited
                by the
                Participant, together with a stock power endorsed in blank, with
                the
                Corporation. At the expiration of the Restricted Period, the Corporation
                shall deliver such certificates to the Participant or, if the Participant
                has died, to the Participant’s Designated
                Beneficiary.

            

    

    

    
      	
              (c)

            	
              Holders
                of Restricted Stock shall have the right to receive any dividends
                declared
                or paid with respect to such Restricted Stock, provided, however
                that the
                Board may provide that any dividends paid on Restricted Stock must
                be
                reinvested in shares of Stock, which may or may not be subject to
                the same
                terms and conditions of such Restricted
                Stock.

            

    

    

    Section
      9. Performance
      Grants

    

    Subject
      to the provisions of the 2007 Plan, the Board may award Performance Grants
      to Participants. The Board shall establish performance goals for the Awards,
      including performance criteria, target and maximum amounts payable, and other
      terms and conditions, including, if applicable, the provisions of Section 162(m)
      of the Code.

    

    Section
      10. Restricted
      Stock Units

    

    Subject
      to the provisions of the 2007 Plan, the Board may award Restricted Stock
      Units to Participants. The Board shall determine criteria for vesting and the
      value of each RSU at the time each RSU is awarded, which value shall be equal
      to
      100% of the Fair Market Value of the Common Stock on the date of award with
      respect to RSUs. If dividends or dividend equivalents are credited under this
      Section 10 of the 2007 Plan, such dividends or dividend equivalents
      shall be deferred until such time as the RSU is settled. RSUs shall be settled
      in shares of Common Stock.

    
      
        
 

         

      

      
         

        
          

        

      

      
         

      

    

     

    Section
      11. General
      Provisions Applicable to Awards

    

    
      	
              (a)

            	
              Documentation.
                Each Award under the 2007 Plan shall be evidenced by a written
                document delivered to the Participant specifying the terms and conditions
                thereof and containing such other terms and conditions not inconsistent
                with the provisions of the 2007 Plan as the Board considers necessary
                or advisable to achieve the purposes of the 2007 Plan or comply with
                applicable tax and regulatory laws and accounting principles. If
                such
                written document evidences an Award of Options, it shall specify
                whether
                such Options are intended to be Nonqualified Stock Options or Incentive
                Stock Options, and in the absence of such specification such Options
                shall
                be deemed Nonqualified Stock
                Options.

            

    

    

    
      	
              (b)

            	
              Board
                Discretion.
                Each type of Award may be made alone, in addition to or in relation
                to any
                other type of Award. The terms of each type of Award need not be
                identical, and the Board need not treat Participants uniformly. Except
                as
                otherwise provided by the 2007 Plan or a particular Award, any
                determination with respect to an Award may be made by the Board at
                the
                time of award or at any time thereafter.

            

    

    

    
      	
              (c)

            	
              Settlement.
                The Board shall determine whether Awards, other than Restricted Stock
                Units, are settled in whole or in part in cash, Common Stock, other
                securities of the Corporation, Awards, other property or such other
                methods as the Board may deem appropriate. If shares of Common Stock
                are
                to be used in payment pursuant to an Award and such shares were acquired
                upon the exercise of a stock option (whether or not granted under
                the
                2007 Plan), such shares must have been held by the Participant for at
                least six months.

            

    

    

    
      	
              (d)

            	
              Termination
                of Employment.
                The Board shall determine the effect on an Award of the disability,
                death,
                retirement or other termination of employment of a Participant and
                the
                extent to which, and the period during which, the Participant’s legal
                representative, guardian or Designated Beneficiary may receive payment
                of
                an Award or exercise rights
                thereunder.

            

    

    

    
      	
              (e)

            	
              Change
                in Control.
                In order to preserve a Participant’s rights under an Award in the event of
                a change in control of the Corporation, as defined in Treasury Regulation
                Section 1.409A-3(i)(5)(i), the Board in its discretion may, at the
                time an Award is made or at any time thereafter, take one or more
                of the
                following actions: (i) provide for the acceleration of any time period
                relating to the exercise or realization of the Award, (ii) provide
                for the purchase of the Award upon the Participant’s request for an amount
                of cash or other property that could have been received upon the
                exercise
                or realization of the Award had the Award been currently exercisable
                or
                payable, (iii) adjust the terms of the Award in a manner determined
                by the
                Board to reflect the change in control, (iv) cause the Award to be
                assumed, or new rights substituted therefore, by another entity,
                or (v)
                make such other provision as the Board may consider equitable and
                in the
                best interests of the Corporation. Notwithstanding the foregoing,
                any
                change in Incentive Stock Options shall comply with the rules under
                Section 424 of the Code and no change may be made to any Award which
                would
                make the Award subject to the provisions of Section 409A of the
                Code.

            

    

    
      
         

        

         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              (f)

            	
              Withholding.
                The Corporation shall have the power and the right to deduct or withhold,
                or require a Participant to remit to the Corporation an amount sufficient
                to satisfy federal, state and local taxes (including the Participant’s
                FICA obligation) required to be withheld with respect to an Award
                or any
                dividends or other distributions payable with respect thereto. In
                the
                Board’s discretion, such tax obligations may be paid in whole or in part
                in shares of Common Stock, including shares retained from the Award
                creating the tax obligation, valued at their Fair Market Value on
                the date
                of delivery. The Corporation may, to the extent permitted by law,
                deduct
                any such tax obligations from any payment of any kind otherwise due
                to the
                Participant.

            

    

    

    
      	
              (g)

            	
              Amendment
                of Award.
                The Board may amend, modify or terminate any outstanding Award, including
                substituting therefore another Award of the same or a different type,
                changing the date of exercise or realization and converting an Incentive
                Stock Option to a Nonqualified Stock Option, provided that the
                Participant’s consent to such action shall be required unless the Board
                determines that the action, taking into account any related action,
                would
                not materially and adversely affect the
                Participant.

            

    

    

    
      	
              (h)

            	
              Transfer.
                Except as otherwise provided by the Board, Awards under the 2007 Plan
                are not transferable other than as designated by the Participant
                by will
                or by the laws of descent and
                distribution.

            

    

    

    
      	
              (i)

            	
              Compliance
                with Section 409A of the Code.
                To the extent applicable, the 2007 Plan is intended to be operated in
                good faith compliance with the requirements of Section 409A of the
                Code
                and its accompanying regulations, and any additional guidance issued
                under
                Section 409A. To the extent that any provision of the 2007 Plan
                violates Section 409A, such provision shall be deemed inoperative
                and the
                remaining provisions of the 2007 Plan shall continue to be fully
                effective.

            

    

    

    Section
      12. Miscellaneous

    

    
      	
              (a)

            	
              No
                Right to Employment.
                No person shall have any claim or right to be granted an Award, and
                the
                grant of an Award shall not be construed as giving a Participant
                the right
                to continued employment. The Corporation expressly reserves the right
                at
                any time to dismiss a Participant free from any liability or claim
                under
                the 2007 Plan, except as expressly provided in the applicable
                Award.

            

    

    

    
      	
              (b)

            	
              No
                Rights as Shareholder.
                Subject to the provisions of the applicable Award, no Participant
                or
                Designated Beneficiary shall have any rights as a shareholder with
                respect
                to any shares of Common Stock to be distributed under the 2007 Plan
                until he or she becomes the holder thereof. A Participant to whom
                Common
                Stock is awarded shall be considered the holder of the Stock at the
                time
                of the Award except as otherwise provided in the applicable
                Award.

            

    

    
      
         

        

         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              (c)

            	
              Effective
                Date and Duration of the 2007 Plan.
                The 2007 Plan was adopted by the Board and stockholders of the Corporation
                and became effective on August 17, 2007. Unless earlier terminated
                by the
                Board, the 2007 Plan shall terminate on August 17,
                2017.

            

    

    

    
      	
              (d)

            	
              Amendment
                of 2007 Plan.
                The Board may amend, suspend or terminate the 2007 Plan or any
                portion thereof at any time, without shareholder approval, provided
                that
                no amendment shall be made without shareholder approval if such approval
                is necessary to comply with any applicable requirement of the laws
                of the
                jurisdiction of incorporation of the Corporation, any applicable
                tax
                requirement, including Section 422 of the Code, any applicable rules
                or regulation of the Securities and Exchange Commission, including
                Rule 16b-3 (or any successor rule thereunder), or the rules and
                regulations of NASDAQ or any other exchange or stock market over
                which the
                Corporation’s securities are listed. No amendment shall be made where such
                amendment increases the total number of shares of Common Stock reserved
                for issuance of Awards or reduced the minimum exercise price for
                options
                or exchange of options for other Awards, unless such change is authorized
                by the shareholders within one
                year.

            

    

    

    
      	
              (e)

            	
              Governing
                Law.
                The provisions of the 2007 Plan shall be governed by and interpreted
                in accordance with the laws of the jurisdiction of incorporation
                of the
                Corporation.

            

    

    

    
      	
              (f)

            	
              Indemnity.
                Neither the Board nor the Committee, nor any members of either, nor
                any
                employees of the Corporation or any parent, subsidiary, or other
                affiliate, shall be liable for any act, omission, interpretation,
                construction or determination made in good faith in connection with
                their
                responsibilities with respect to the 2007 Plan, and the Corporation
                hereby agrees to indemnify the members of the Board, the members
                of the
                Committee, and the employees of the Corporation and its parent or
                subsidiaries in respect of any claim, loss, damage, or expense (including
                reasonable counsel fees) arising from any such act, omission,
                interpretation, construction or determination to the full extent
                permitted
                by law.

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