Document:

Exhibit 10.10

 

 

 

REGISTRATION RIGHTS AGREEMENT

 

by and among

 

OMEGA NAVIGATION ENTERPRISES,
INC.

 

and

 

ONE HOLDINGS, INC.

 

 

 

Dated as of               ,
2006

 

 

REGISTRATION
RIGHTS AGREEMENT, dated as of          
   , 2006, by and between Omega Navigation Enterprises, Inc.,
a Marshall Islands corporation (the “Company”), and ONE Holdings, Inc.,
a Marshall Islands corporation (the “Stockholder”).

 

In
consideration of the mutual covenants and agreements herein contained and other
good and valid consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties to this Agreement hereby agree as follows:

 

1.             Certain
Definitions.

 

In
addition to the terms defined elsewhere in this Agreement, the following terms
shall have the following meanings:

 

“Affiliate” of any Person means any other
Person which directly or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, such
Person.  The term “control”
(including the terms “controlling,” “controlled by” and “under
common control with”) as used with respect to any Person means the
possession, direct or indirect, of the power to direct or cause the direction
of the management and policies of such Person, whether through the ownership of
voting securities, by contract or otherwise.

 

“Agreement” means this Registration Rights
Agreement, including all amendments, modifications and supplements and any
exhibits or schedules to any of the foregoing, and shall refer to this
Registration Rights Agreement as the same may be in effect at the time such
reference becomes operative.

 

“Class A Common Shares” means Common
Shares of the Company designated as Class A Shares pursuant to the Company’s
Amended and Restated Articles of Incorporation. 

 

“Common Shares” means common shares, par value
$0.01 per share, of the Company and any other shares into which such shares are
converted pursuant to a recapitalization or reorganization.

 

“Company” has the meaning set forth in the
introductory paragraph.

 

“Demand Registration” has the meaning set forth
in Section 2(a) hereof.

 

“Exchange Act” means the Securities Exchange
Act of 1934, as amended.

 

“Governmental Entity” means any national,
federal, state, municipal, local, territorial, foreign or other government or
any department, commission, board, bureau, agency, regulatory authority or
instrumentality thereof, or any court, judicial, administrative or arbitral
body or public or private tribunal.

 

“Holder” means any holder of record of
Registrable Common Shares and any transferees of at least 50% of such
Registrable Common Shares from such Holders. 
For purposes of this Agreement, the Company may deem and treat the
registered holder of Registrable Common Shares as the Holder and absolute owner
thereof, and the Company shall not be affected by any notice to the contrary.

 

1

 

“Initiating Holders” has the meaning set forth
in Section 2(a) hereof.

 

“Person” means any individual, sole
proprietorship, partnership, limited liability company, joint venture, trust,
incorporated organization, association, corporation, institution, public
benefit corporation, Governmental Entity or any other entity.

 

“Piggyback Registration” has the meaning set
forth in Section 4(a) hereof.

 

“Prospectus” means the prospectus or
prospectuses included in any Registration Statement, as amended or supplemented
by any prospectus supplement, with respect to the terms of the offering of any
portion of the Registrable Common Shares covered by such Registration Statement
and by all other amendments and supplements to the prospectus, including
post-effective amendments and all material incorporated by reference in such
prospectus or prospectuses.

 

“Qualifying IPO” means the sale in an
underwritten initial public offering registered under the Securities Act of
shares of common equity securities of the Company.

 

“Registrable Common Shares” means the Class A
Common Shares held by the Stockholder or affiliates of the Stockholder as of
the date of the Qualifying IPO; provided, however, that Registrable Common
Shares shall not include any securities sold by a Person to the public either
pursuant to a Registration Statement or Rule 144.  For purposes of this Agreement, in the event
that the Company ceases to have more than one series or class of Common Shares
designated, Registrable Common Shares shall include all of the Company’s Common
Shares.

 

“Registration Expenses” has the meaning set
forth in Section 7(a) hereof.

 

“Registration Statement” means any registration
statement of the Company which covers any of the Registrable Common Shares
pursuant to the provisions of this Agreement, including the Prospectus,
amendments and supplements to such Registration Statement, including
post-effective amendments, all exhibits and all materials incorporated by
reference in such Registration Statement.

 

“SEC” means the United States Securities and
Exchange Commission.

 

“Securities Act” means the Securities Act of
1933, as amended.

 

“Shelf Registration” has the meaning set forth
in Section 3(a) hereof.

 

“Stockholder” has the meaning set forth in the
introductory paragraph.

 

“Suspension Notice” has the meaning set forth
in Section 6(f) hereof.

 

“Underwritten registration” or “underwritten
offering” means a registration in which securities of the Company are sold
to underwriters for reoffering to the public.

 

“Withdrawn Demand Registration” has the meaning
set forth in Section 2(f) hereof.

 

2.             Demand
Registrations.

 

(a)           Right
to Request Registration.  At any time
commencing 180 days following the closing of a Qualifying IPO, any Holder or
Holders may request 

 

2

 

registration under the Securities Act (“Initiating Holders”) of
all or part of the Registrable Common Shares (“Demand Registration”);
provided, that each Demand Registration be at least equal to 10% of the Company’s
outstanding common shares immediately following the closing of such Qualifying
IPO.

 

Within
10 days after receipt of any such request for Demand Registration, the Company
shall give written notice of such request to all other Holders of Registrable
Common Shares and shall, subject to the provisions of Section 2(d) hereof,
include in such registration all such Registrable Common Shares with respect to
which the Company has received written requests for inclusion therein within 15
days after the receipt of the Company’s notice.

 

(b)           Number
of Demand Registrations.  Subject to
the provisions of Section 2(a), the Initiating Holders of Registrable
Common Shares shall collectively be entitled to request an aggregate of three
Demand Registrations.  A registration
shall not count as one of the permitted Demand Registrations (i) until it
has become effective, (ii) if the Initiating Holders requesting such
registration are not able to have registered and sold at least 50% of the
Registrable Common Shares requested by such Initiating Holders to be included
in such registration or (iii) in the case of a Demand Registration that
would be the last permitted Demand Registration requested hereunder, if the
Initiating Holders requesting such registration are not able to have registered
and sold all of the Registrable Common Shares requested to be included by such
Initiating Holders in such registration.

 

(c)           Priority
on Demand Registrations.  Except as
provided in Section 2(g), the Company shall not include in any Demand
Registration any securities which are not Registrable Common Shares without the
written consent of the Holders of a majority of the Registrable Common Shares
to be included in such registration, or, if such Demand Registration is an
underwritten offering, without the written consent of the managing
underwriters.  If the managing
underwriters of the requested Demand Registration advise the Company in writing
that in their opinion the number of shares of Registrable Common Shares
proposed to be included in any such registration exceeds the number of
securities which can be sold in such offering without having an adverse affect
on such offering, including the price at which such Registrable Common Shares
can be sold, the Company shall include in such registration only the number of
shares of Registrable Common Shares which in the opinion of such managing
underwriters can be sold without having the adverse effect referred to above.  If the number of shares which can be sold
without having the adverse effect referred to above is less than the number of
shares of Registrable Common Shares proposed to be registered, the amount of
Registrable Common Shares to be so sold shall be allocated pro rata among the
Holders of Registrable Common Shares desiring to participate in such
registration on the basis of the amount of such Registrable Common Shares
initially proposed to be registered by such Holders. If the number of shares
which can be sold exceeds the number of shares of Registrable Common Shares
proposed to be sold, such excess shall be allocated pro rata among the other
holders of securities, if any, desiring to participate in such registration
based on the amount of such securities initially requested to be registered by
such holders or as such holders may otherwise agree.

 

(d)           Restrictions
on Demand Registrations.  The Company
shall not be obligated to effect any Demand Registration within three months
after the termination of 

 

3

 

an offering under a previous Demand Registration or a previous
registration under which the Initiating Holder had piggyback rights pursuant to
Section 4 hereof where the Initiating Holder was permitted to register and
sell 50% of the Registrable Common Shares requested to be included
therein.  The Company may postpone for up
to 90 days the filing or the effectiveness of a Registration Statement for a
Demand Registration if, based on the good faith judgment of the Company’s board
of directors, such postponement or withdrawal is necessary in order to avoid
premature disclosure of a matter the board has determined would not be in the
best interest of the Company to be disclosed at such time; provided, that in no
event shall the Company withdraw a Registration Statement after such
Registration Statement has been declared effective; and provided, further, that
in the event described above, the Initiating Holders requesting such Demand
Registration shall be entitled to withdraw such request and, if such request is
withdrawn, such Demand Registration shall not count as one of the permitted
Demand Registrations.  The Company shall
provide written notice to the Initiating Holders requesting such Demand
Registration of (i) any postponement or withdrawal of the filing or
effectiveness of a Registration Statement pursuant to this Section 2(d), (ii) the
Company’s decision to file or seek effectiveness of such Registration Statement
following such withdrawal or postponement and (iii) the effectiveness of
such Registration Statement.  The Company
may defer the filing of a particular Registration Statement pursuant to this Section 2(d) only
once during any 12-month period.

 

(e)           Selection
of Underwriters.  If any of the
Registrable Common Shares covered by a Demand Registration are to be sold in an
underwritten offering, the Initiating Holders shall have the right to select
the managing underwriter or underwriters to administer the offering subject to
the approval of the Company, which will not be unreasonably withheld.

 

(f)            Effective
Period of Demand Registrations. 
After any Demand Registration filed pursuant to this Agreement has
become effective, the Company shall use its best efforts to keep such Demand
Registration effective for a period equal to 180 days from the date on which
the SEC declares such Demand Registration effective (or if such Demand
Registration is not effective during any period within such 180 days, such 180-day
period shall be extended by the number of days during such period when such
Demand Registration is not effective), or such shorter period which shall
terminate when all of the Registrable Common Shares covered by such Demand
Registration have been sold pursuant to such Demand Registration.  If the Company shall withdraw any Demand
Registration pursuant to Section 2(d) (a “Withdrawn Demand
Registration”), the Initiating Holders of the Registrable Common Shares
remaining unsold and originally covered by such Withdrawn Demand Registration
shall be entitled to a replacement Demand Registration which (subject to the
provisions of this Section 2) the Company shall use its best efforts to
keep effective for a period commencing on the effective date of such Demand
Registration and ending on the earlier to occur of the date (i) which is
180 days from the effective date of such Demand Registration and (ii) on
which all of the Registrable Common Shares covered by such Demand Registration
have been sold.  Such additional Demand
Registration otherwise shall be subject to all of the provisions of this
Agreement.

 

4

 

3.             Shelf
Registration.

 

(a)           At
such time as the Company is able to use Form F-3 under the Securities Act
(or any successor form) for sales of Registrable Common Shares by a Holder, at
the request of Holders of the lesser of (x) 5% of the Registrable Common Shares
(without reduction for Common Shares that cease to be Registrable Common
Shares) and (y) Registrable Common Shares having an aggregate market value of
at least $25 million, the Company shall use its commercially reasonable efforts
to effect, as expeditiously as possible, the registration under the Securities
Act of any number of Registrable Common Shares for which it receives requests
in accordance with this Section 3(a) (the “Shelf Registration”).  The Company shall use its commercially
reasonable best efforts to cause such Registration Statement to become
effective as promptly as practicable and maintain the effectiveness of such
Registration Statement (subject to the terms and conditions herein) for a
period ending on the earlier of (i) two years following the date on which
such Registration Statement first becomes effective (but one year if the
Company is not able to use Form F-3 under the Securities Act (or any
successor form)) and (ii) the date on which all Registrable Common Shares
covered by such Registration Statement have been sold and the distribution
contemplated thereby has been completed or have become freely tradeable
pursuant to Rule 144 without regard to volume.

 

(b)           The
Shelf Registration Statement pursuant to this Section 3 shall to the
extent possible under applicable law, be effected to permit sales on a
continuous basis pursuant to Rule 415 under the Securities Act. Any
takedown under the Shelf Registration pursuant to this Section 3 may or
may not be underwritten; provided, however, that (i) Holders may request
any underwritten takedown only to be effected as a Demand Registration (in
which event, unless such Demand Registration would not require representatives
of the Company to meet with prospective purchasers of the Company’s securities,
a Demand Registration must be available thereunder and the number of Demand
Registrations available shall be reduced by one under Section 2(b)) or (ii) Holders
may request an unlimited number of underwritten takedowns to be effected in
accordance with the terms of Section 4. The Company shall be entitled to
effect the Shelf Registration on any available form under the Securities Act.

 

(c)           In
the event of a request for a Shelf Registration pursuant to Section 3(a),
the Company shall give written notice of the proposed filing of the
Registration Statement in connection therewith to all Holders of Registrable
Common Shares offering to each such Holder the opportunity to have any or all
of the Registrable Common Shares held by such Holder included in such
registration statement. Each Holder of Registrable Common Shares desiring to
have its Registrable Common Shares registered under this Section 3(c) shall
so advise the Company in writing within 15 days after the date of such notice
from the Company (which request shall set forth the amount of Registrable
Common Shares for which registration is requested), and the Company shall
include in such Registration Statement all such Registrable Common Shares so
requested to be included therein.

 

(d)           The
number, percentage, fraction or kind of shares referred to in this Section 3
shall be appropriately adjusted for any stock dividend, stock split, reverse
stock split, combination, recapitalization, reclassification, merger or
consolidation, exchange or distribution in respect of the shares of Class A
Common Shares.

 

5

 

(e)           The
Company, and any other holder of the Company’s securities who has registration
rights, may include its securities in any Shelf Registration effected pursuant
to this Section 3.

 

4.             Piggyback
Registrations.

 

(a)           Right
to Piggyback.  If at any time
commencing 180 days following the closing of a Qualifying IPO the Company
proposes to register any of its common equity securities under the Securities
Act (other than a registration statement on Form S-8 or on Form F-4
or any similar successor forms thereto), whether for its own account or for the
account of one or more stockholders of the Company, and the registration form
to be used may be used for any registration of Registrable Common Shares (a “Piggyback
Registration”), the Company shall give prompt written notice (in any event
within 20 days after its receipt of notice of any exercise of other demand
registration rights) to all Holders of its intention to effect such a
registration and, subject to Sections 4(b) and 4(c), shall include in such
registration all Registrable Common Shares with respect to which the Company
has received written requests for inclusion therein within 15 days after the
effectiveness of the Company’s notice. 
The Company may postpone or withdraw the filing or the effectiveness of
a Piggyback Registration at any time in its sole discretion.

 

(b)           Priority
on Primary Registrations.  If a
Piggyback Registration is an underwritten primary registration on behalf of the
Company, and the managing underwriters advise the Company in writing that in
their opinion the number of securities requested to be included in such
registration exceeds the number which can be sold in such offering without
having an adverse effect on such offering, the Company shall include in such
registration (i) first, the securities the Company proposes to sell, (ii) second,
the Registrable Common Shares requested to be included therein by the Holders,
pro rata among the Holders of such Registrable Common Shares on the basis of
the number of shares requested to be registered by such Holders and (iii) third,
other securities requested to be included in such registration pro rata among
the holders of such securities on the basis of the number of shares requested
to be registered by such holders or as such holders may otherwise agree.

 

(c)           Priority
on Secondary Registrations.  If a Piggyback
Registration is an underwritten secondary registration on behalf of a holder of
the Company’s securities other than Registrable Common Shares, and the managing
underwriters advise the Company in writing that in their opinion the number of
securities requested to be included in such registration exceeds the number
which can be sold in such offering without having an adverse effect on such
offering, the Company shall include in such registration (i) first, the
securities requested to be included therein by the holders requesting such
registration and the Registrable Common Shares requested to be included in such
registration, pro rata among the holders of such securities on the basis of the
number of shares requested to be registered by such holders and (ii) second,
other securities requested to be included in such registration pro rata among
the holders of such securities on the basis of the number of shares requested
to be registered by such holders or as such holders may otherwise agree.

 

6

 

(d)           Selection
of Underwriters.  If any Piggyback
Registration is an underwritten primary offering, the Company shall have the
right to select the managing underwriter or underwriters to administer any such
offering.

 

(e)           Other
Registrations.  If the Company has
previously filed a Registration Statement with respect to Registrable Common
Shares, and if such previous registration has not been withdrawn or abandoned,
the Company shall not be obligated to cause to become effective any other
registration of any of its securities under the Securities Act, whether on its
own behalf or at the request of any holder or holders of such securities, until
a period of at least 90 days has elapsed from the termination of the offering
under the previous registration.

 

5.             Holdback
Agreements.

 

The
Company agrees not to effect any sale or distribution of any of its equity
securities during the 10 days prior to and during the 180 days beginning on the
effective date of any underwritten Demand Registration or any underwritten
Piggyback Registration (except as part of such underwritten registration or
pursuant to registrations on Form S-8 or F-4 or any successor forms
thereto) unless the underwriters managing the offering otherwise agree to a
shorter period.

 

6.             Registration
Procedures.

 

(a)           Whenever
the Holders request that any Registrable Common Shares be registered pursuant
to this Agreement, the Company shall use its best efforts to effect the
registration and the sale of such Registrable Common Shares in accordance with
the intended methods of disposition thereof, and pursuant thereto the Company
shall as expeditiously as possible:

 

(i)            prepare
and file with the SEC a Registration Statement with respect to such Registrable
Common Shares and use its best efforts to cause such Registration Statement to
become effective as soon as practicable thereafter; and before filing a
Registration Statement or Prospectus or any amendments or supplements thereto,
furnish to the Holders of Registrable Common Shares covered by such
Registration Statement and the underwriter or underwriters, if any, copies of
all such documents proposed to be filed, including documents incorporated by
reference in the Prospectus and, if requested by such Holders, the exhibits
incorporated by reference, and such Holders shall have the opportunity to
object to any information pertaining to such Holders that is contained therein
and the Company will make the corrections reasonably requested by such Holders
with respect to such information prior to filing any Registration Statement or
amendment thereto or any Prospectus or any supplement thereto;

 

(ii)           prepare
and file with the SEC such amendments and supplements to such Registration
Statement and the Prospectus used in connection therewith as may be necessary
to keep such Registration Statement effective for a period of not less than 180
days, in the case of a Demand Registration or such shorter period as is
necessary to complete the distribution of the 

 

7

 

securities covered by such Registration Statement and
comply with the provisions of the Securities Act with respect to the
disposition of all securities covered by such Registration Statement during
such period in accordance with the intended methods of disposition by the
sellers thereof set forth in such Registration Statement;

 

(iii)          furnish
to each seller of Registrable Common Shares such number of copies of such
Registration Statement, each amendment and supplement thereto, the Prospectus
included in such Registration Statement (including each preliminary Prospectus)
and such other documents as such seller may reasonably request in order to
facilitate the disposition of the Registrable Common Shares owned by such
seller;

 

(iv)          use its
best efforts to register or qualify such Registrable Common Shares under such
other securities or blue sky laws of such jurisdictions as any seller
reasonably requests and do any and all other acts and things which may be
reasonably necessary or advisable to enable such seller to consummate the
disposition in such jurisdictions of the Registrable Common Shares owned by
such seller (provided, that the Company will not be required to (x) qualify
generally to do business in any jurisdiction where it would not otherwise be
required to qualify but for this subparagraph 6(a)(iv), (y) subject itself to
taxation in any such jurisdiction, or (z) consent to general service of process
in any such jurisdiction);

 

(v)           notify
each seller of such Registrable Common Shares, at any time when a Prospectus
relating thereto is required to be delivered under the Securities Act, of the
occurrence of any event as a result of which the Prospectus included in such
Registration Statement contains an untrue statement of a material fact or omits
any fact necessary to make the statements therein not misleading, and, at the
request of any such seller, the Company shall prepare a supplement or amendment
to such Prospectus so that, as thereafter delivered to the purchasers of such Registrable
Common Shares, such Prospectus shall not contain an untrue statement of a
material fact or omit to state any material fact necessary to make the
statements therein not misleading;

 

(vi)          in the case
of an underwritten offering, enter into such customary agreements (including
underwriting agreements in customary form with customary indemnification
provisions) and take all such other actions as the Holders of a majority of the
Registrable Common Shares being sold or the underwriters reasonably request in
order to expedite or facilitate the disposition of such Registrable Common
Shares (including, without limitation, making members of senior management of
the Company available to participate in, and cause them to cooperate with the
underwriters in connection with, “road-show” and other customary marketing
activities (including one-on-one meetings with prospective purchasers of the
Registrable Common Shares)) and cause to be delivered to the underwriters and
the sellers, if any, opinions of counsel to the 

 

8

 

Company in customary form, covering such matters as
are customarily covered by opinions for an underwritten public offering as the
underwriters may request and addressed to the underwriters and the sellers;

 

(vii)         make
available, for inspection by any seller of Registrable Common Shares, any
underwriter participating in any disposition pursuant to such Registration
Statement, and any attorney, accountant or other agent retained by any such
seller or underwriter, all financial and other records, pertinent corporate
documents and properties of the Company, and cause the Company’s officers,
directors, employees and independent accountants to supply all information
reasonably requested by any such seller, underwriter, attorney, accountant or
agent in connection with such Registration Statement;

 

(viii)        use
its best efforts to cause all such Registrable Common Shares to be listed on
each securities exchange on which securities of the same class issued by the Company
are then listed;

 

(ix)           if
requested, cause to be delivered, immediately prior to the effectiveness of the
Registration Statement (and, in the case of an underwritten offering, at the
time of delivery of any Registrable Common Shares sold pursuant thereto),
letters from the Company’s independent certified public accountants addressed
to each selling Holder (unless such selling Holder does not provide to such
accountants the appropriate representation letter required by rules governing
the accounting profession) and each underwriter, if any, stating that such
accountants are independent public accountants within the meaning of the
Securities Act and the applicable rules and regulations adopted by the SEC
thereunder, and otherwise in customary form and covering such financial and
accounting matters as are customarily covered by letters of the independent
certified public accountants delivered in connection with primary or secondary
underwritten public offerings, as the case may be;

 

(x)            make
generally available to its stockholders a consolidated earnings statement
(which need not be audited) for the 12 months beginning after the effective
date of a Registration Statement as soon as reasonably practicable after the
end of such period, which earnings statement shall satisfy the requirements of
an earnings statement under Section 11(a) of the Securities Act; and

 

(xi)           promptly
notify each seller of Registrable Common Shares and the underwriter or
underwriters, if any:

 

(A)          when the
Registration Statement, any pre-effective amendment, the Prospectus or any
Prospectus supplement or post-effective amendment to the Registration Statement
has been filed and, with respect to the Registration Statement or any
post-effective amendment, when the same has become effective;

 

9

 

(B)           of any
comments of the SEC or of any written request by the SEC for amendments or
supplements to the Registration Statement or Prospectus;

 

(C)           of the
notification to the Company by the SEC of its initiation of any proceeding with
respect to the issuance by the SEC of any stop order suspending the
effectiveness of the Registration Statement; and

 

(D)          of the
receipt by the Company of any notification with respect to the suspension of
the qualification of any Registrable Common Shares for sale under the
applicable securities or blue sky laws of any jurisdiction.

 

(b)           The
Company shall ensure that no Registration Statement (including any amendments
or supplements thereto and Prospectuses contained therein) shall contain any
untrue statement of a material fact or omit to state a material fact required
to be stated therein, or necessary to make the statements therein not
misleading (except, with respect to any Holder, for an untrue statement or
alleged untrue statement of a material fact or omission or alleged omission of
a material fact made in reliance on and in conformity with written information
furnished to the Company by or on behalf of such Holder specifically for use
therein).

 

(c)           The
Company shall make available to each Holder whose Registrable Common Shares are
included in a Registration Statement (i) promptly after the same is
prepared and publicly distributed, filed with the SEC, or received by the
Company, one copy of each Registration Statement and any amendment thereto,
each preliminary Prospectus and Prospectus and each amendment or supplement
thereto, each letter written by or on behalf of the Company to the SEC or the
staff of the SEC (or other governmental agency or self-regulatory body or other
body having jurisdiction, including any domestic or foreign securities
exchange), and each item of correspondence from the SEC or the staff of the SEC
(or other governmental agency or self-regulatory body or other body having
jurisdiction, including any domestic or foreign securities exchange), in each
case relating to such Registration Statement (other than any portion thereof
which contains information for which the Company has sought confidential
treatment), and (ii) such number of copies of a Prospectus, including a
preliminary Prospectus, and all amendments and supplements thereto and such
other documents as such Holder may reasonably request in order to facilitate
the disposition of the Registrable Common Shares owned by such Holder.  The Company will promptly notify each Holder
by facsimile of the effectiveness of each Registration Statement or any
post-effective amendment.  The Company
will promptly respond to any and all comments received from the SEC, with a
view towards causing each Registration Statement or any amendment thereto to be
declared effective by the SEC as soon as practicable and shall file an
acceleration request as soon as practicable following the resolution or
clearance of all SEC comments or, if applicable, following notification by the
SEC that any such Registration Statement or any amendment thereto will not be
subject to review.

 

(d)           At
all times after the Company has filed a registration statement with the SEC
pursuant to the requirements of either the Securities Act or the Exchange Act,
the 

 

10

 

Company shall file all reports required to be filed by it under the
Securities Act and the Exchange Act and the rules and regulations adopted
by the SEC thereunder, and take such further action as any Holders may
reasonably request, all to the extent required to enable such Holders to be
eligible to sell Registrable Common Shares pursuant to Rule 144 (or any
similar rule then in effect).

 

(e)           the
Company may require each seller of Registrable Common Shares as to which any
registration is being effected to furnish to the Company any other information
regarding such seller and the distribution of such securities as the Company
may from time to time reasonably request in writing.

 

(f)            Each
seller of Registrable Common Shares agrees by having its shares treated as
Registrable Common Shares hereunder that, upon notice of the happening of any
event as a result of which the Prospectus included in such Registration
Statement contains an untrue statement of a material fact or omits any material
fact necessary to make the statements therein not misleading (a “Suspension
Notice”), such seller will forthwith discontinue disposition of Registrable
Common Shares for a reasonable length of time not to exceed 60 days until such
seller is advised in writing by the Company that the use of the Prospectus may
be resumed and is furnished with a supplemented or amended Prospectus as
contemplated by Section 6(c) hereof, and, if so directed by the
Company, such seller will deliver to the Company (at the Company’s expense) all
copies, other than permanent file copies then in such seller’s possession, of
the Prospectus covering such Registrable Common Shares current at the time of
receipt of such notice; provided, however, that such postponement of sales of
Registrable Common Shares by the Holders shall not exceed 90 days in the
aggregate in any one year.  If the
Company shall give any notice to suspend the disposition of Registrable Common
Shares pursuant to a Prospectus, the Company shall extend the period of time
during which the Company is required to maintain the Registration Statement
effective pursuant to this Agreement by the number of days during the period
from and including the date of the giving of such notice to and including the
date such seller either is advised by the Company that the use of the
Prospectus may be resumed or receives the copies of the supplemented or amended
Prospectus contemplated by Section 6(e). 
In any event, the Company shall not be entitled to deliver more than
three Suspension Notices in any one year.

 

7.             Registration
Expenses.

 

(a)           All
expenses incident to the Company’s performance of or compliance with this
Agreement, including, without limitation, all registration and filing fees,
fees and expenses of compliance with securities or blue sky laws, listing
application fees, printing expenses, transfer agent’s and registrar’s fees,
cost of distributing Prospectuses in preliminary and final form as well as any
supplements thereto, and fees and disbursements of counsel for the Company and
all independent certified public accountants and other Persons retained by the
Company (all such expenses being herein called “Registration Expenses”)
(but not including any underwriting discounts or commissions attributable to
the sale of Registrable Common Shares or fees and expenses of more than one
counsel representing the Holders of Registrable Common Shares), shall be borne
by the Company.  In addition, the Company
shall pay its internal expenses (including, without limitation, all salaries
and expenses of its officers and employees 

 

11

 

performing legal or accounting duties), the expense of any annual audit
or quarterly review, the expense of any liability insurance and the expenses
and fees for listing the securities to be registered on each securities
exchange on which they are to be listed.

 

(b)           In
connection with each registration initiated hereunder (whether a Demand
Registration or a Piggyback Registration), the Company shall reimburse the
Holders covered by such registration or sale for the reasonable fees and
disbursements of one law firm chosen by the Holders of a majority of the
Registrable Common Shares included in such registration or sale.

 

(c)           The
obligation of the Company to bear the expenses described in Section 7(a) and
to reimburse the Holders for the expenses described in Section 7(b) shall
apply irrespective of whether a registration, once properly demanded, if
applicable, becomes effective, is withdrawn or suspended, is converted to
another form of registration and irrespective of when any of the foregoing
shall occur; provided, however, that Registration Expenses for any Registration
Statement withdrawn solely at the request of a Holder of Registrable Common
Shares (unless withdrawn following postponement of filing by the Company in
accordance with Section 2(d)(i) or (ii)) or any supplements or
amendments to a Registration Statement or Prospectus resulting from a
misstatement furnished to the Company by a Holder shall be borne by such
Holder.

 

8.             Indemnification.

 

(a)           The
Company shall indemnify, to the fullest extent permitted by law, each Holder,
its officers, directors and Affiliates and each Person who controls such Holder
(within the meaning of the Securities Act) against all losses, claims, damages,
liabilities and expenses arising out of or based upon any untrue or alleged
untrue statement of material fact contained in any Registration Statement,
Prospectus or preliminary Prospectus or any amendment thereof or supplement
thereto or any omission or alleged omission of a material fact required to be
stated therein or necessary to make the statements therein not misleading or
any violation or alleged violation by the Company of the Securities Act, the
Exchange Act or applicable blue sky laws, except insofar as the same are made
in reliance and in conformity with information relating to such Holder
furnished in writing to the Company by such Holder expressly for use therein or
caused by such Holder’s failure to deliver to such Holder’s immediate purchaser
a copy of the Registration Statement or Prospectus or any amendments or
supplements thereto (if the same was required by applicable law to be so
delivered).  In connection with an underwritten
offering, the Company shall indemnify such underwriters, their officers and
directors and each Person who controls such underwriters (within the meaning of
the Securities Act) to the same extent as provided above with respect to the
indemnification of the Holders.

 

(b)           In
connection with any Registration Statement in which a Holder of Registrable
Common Shares is participating, each such Holder shall furnish to the Company
in writing such information and affidavits as the Company reasonably requests
for use in connection with any such Registration Statement or Prospectus and,
shall indemnify, to the fullest extent permitted by law, the Company, its
officers, directors Affiliates, and each Person who controls the Company
(within the meaning of the Securities Act) against all losses, claims, damages,
liabilities and expenses arising out of 

 

12

 

or based upon any untrue or alleged untrue statement of material fact
contained in the Registration Statement, Prospectus or preliminary Prospectus
or any amendment thereof or supplement thereto or any omission or alleged
omission of a material fact required to be stated therein or necessary to make
the statements therein not misleading, but only to the extent that the same are
made in reliance and in conformity with information relating to such Holder
furnished in writing to the Company by such Holder expressly for use therein or
caused by such Holder’s failure to deliver to such Holder’s immediate purchaser
a copy of the Registration Statement or Prospectus or any amendments or
supplements thereto (if the same was required by applicable law to be so
delivered) after the Company has furnished such Holder with a sufficient number
of copies of the same; provided, however, that the obligation to indemnify
shall be several, not joint and several, among such Holders and the liability
of each such Holder shall be in proportion to and limited to the net amount
received by such Holder from the sale of Registrable Common Shares pursuant to
such Registration Statement.

 

(c)           Any
Person entitled to indemnification hereunder shall (i) give prompt written
notice to the indemnifying party of any claim with respect to which it seeks
indemnification, provided that the failure to notify the indemnifying party
shall not relieve the indemnifying party from any liability that it may have
under this Section 8 except to the extent that it has been materially
prejudiced (through the forfeiture of substantive rights or defenses) by such
failure; and provided, further, that the failure to notify the indemnifying
party shall not relieve the indemnifying party from any liability that it may
have to an indemnified party otherwise than under this Section 8 and (ii) unless
in such indemnified party’s reasonable judgment a conflict of interest between
such indemnified and indemnifying parties may exist with respect to such claim,
permit such indemnifying party to assume the defense of such claim with counsel
reasonably satisfactory to the indemnified party.  If such defense is assumed, the indemnifying
party shall not be subject to any liability for any settlement made by the
indemnified party without its consent (but such consent will not be
unreasonably withheld).  An indemnifying
party who is not entitled to, or elects not to, assume the defense of a claim
shall not be obligated to pay the fees and expenses of more than one counsel
for all parties indemnified by such indemnifying party with respect to such
claim, unless in the reasonable judgment of any indemnified party there may be
one or more legal or equitable defenses available to such indemnified party
which are in addition to or may conflict with those available to another
indemnified party with respect to such claim. 
Failure to give prompt written notice shall not release the indemnifying
party from its obligations hereunder.

 

(d)           The
indemnification provided for under this Agreement shall remain in full force
and effect regardless of any investigation made by or on behalf of the
indemnified party or any officer, director or controlling Person of such
indemnified party and shall survive the transfer of securities.

 

(e)           If
the indemnification provided for in or pursuant to this Section 8 is due
in accordance with the terms hereof, but is held by a court to be unavailable
or unenforceable in respect of any losses, claims, damages, liabilities or
expenses referred to herein, then each applicable indemnifying party, in lieu
of indemnifying such indemnified party, shall contribute to the amount paid or
payable by such indemnified 

 

13

 

Person as a result of such losses, claims, damages, liabilities or
expenses 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 which result in such
losses, claims, damages, liabilities or expenses as well as any other relevant
equitable considerations.  The relative
fault of the indemnifying party on the one hand and of the indemnified Person
on the other shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by
the indemnifying party or by the indemnified party, and by such party’s
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.  In
no event shall the liability of any selling Holder be greater in amount than
the amount of net proceeds received by such Holder upon such sale or the amount
for which such indemnifying party would have been obligated to pay by way of
indemnification if the indemnification provided for under Section 8(a) or
8(b) hereof had been available under the circumstances.

 

9.             Participation
in Underwritten Registrations.

 

No
Person may participate in any registration hereunder which is underwritten
unless such Person (a) agrees to sell such Person’s securities on the
basis provided in any underwriting arrangements approved by the Person or
Persons entitled hereunder to approve such arrangements and (b) completes
and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents required under the terms of such underwriting
arrangements.

 

10.          Rule 144.

 

The
Company covenants that it will file the reports required to be filed by it
under the Securities Act and the Exchange Act and the rules and regulations
adopted by the SEC thereunder, and it will take such further action as any
Holder may reasonably request to make available adequate current public
information with respect to the Company meeting the current public information
requirements of Rule 144(c) under the Securities Act, to the extent
required to enable such Holder to sell Registrable Common Shares without
registration under the Securities Act within the limitation of the exemptions
provided by (i) Rule 144 under the Securities Act, as such rule may
be amended from time to time, or (ii) any similar rule or regulation
hereafter adopted by the SEC.  Upon the
request of any Holder, the Company will deliver to such Holder a written
statement as to whether it has complied with such information and requirements.

 

11.          Miscellaneous.

 

(a)           Notices.  All notices, requests, consents and other
communications required or permitted hereunder shall be in writing and shall be
hand delivered or mailed postage prepaid by registered or certified mail or by
facsimile transmission (with immediate telephone confirmation thereafter),

 

14

 

If to
the Company:

 

Omega
Navigation Enterprises, Inc.

24 Kaningos Street

Piraeus 185 34

Greece

Attention:  Chief Executive
Officer

Facsimile
No.:

 

with a
copy to:

 

Seward & Kissel LLP

One
Battery Park Plaza

New
York, New York 10004

Attention:  Gary J. Wolfe, Esq.

Facsimile
No.:  (212) 480-8421

 

If to
the Stockholder:

 

ONE
Holdings, Inc.

 

Attention:

Facsimile
No.:

 

or if to another Holder,
to the addresses set forth on the counterpart signature pages of this
Agreement signed by such Holders.

 

If to a transferee
Holder, to the address of such Holder set forth in the transfer documentation
provided to the Company or at such other address as such party each may specify
by written notice to the others, and each such notice, request, consent and
other communication shall for all purposes of this Agreement be treated as
being effective or having been given when delivered personally or upon receipt
of facsimile confirmation if transmitted by facsimile, or, if sent by mail, at
the time of its receipt.

 

(b)           No
Waivers.  No failure or delay by any
party in exercising any right, power or privilege hereunder shall operate as a
waiver thereof nor shall any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right, power or
privilege.  The rights and remedies
herein provided shall be cumulative and not exclusive of any rights or remedies
provided by law.

 

(c)           Successors
and Assigns.  The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns, it being understood that
subsequent Holders of the Registrable Common Shares are intended third party
beneficiaries of this Agreement.

 

(d)           Governing
Law.  The laws of the State of New
York shall govern the enforceability and validity of this Agreement, the
construction of its terms and the interpretation of the rights and duties of
the parties, without regard to the principles of conflicts of laws thereof.

 

15

 

(e)           Jurisdiction.  Any suit, action or proceeding seeking to
enforce any provision of, or based on any matter arising out of or in
connection with, this Agreement or the transactions contemplated hereby may be
brought in any federal or state court located in the County and State of New
York, and each of the parties hereby consents to the jurisdiction of such
courts (and of the appropriate appellate courts therefrom) in any such suit,
action or proceeding and irrevocably waives, to the fullest extent permitted by
law, any objection which it may now or hereafter have to the laying of the
venue of any such suit, action or proceeding in any such court or that any such
suit, action or proceeding which is brought in any such court has been brought
in an inconvenient forum.  Process in any
such suit, action or proceeding may be served on any party anywhere in the
world, whether within or without the jurisdiction of any such court.  Without limiting the foregoing, each party
agrees that service of process on such party as provided in Section 10(a) shall
be deemed effective service of process on such party.

 

(f)            Waiver
of Jury Trial.  EACH OF THE PARTIES
HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

 

(g)           Counterparts;
Effectiveness.  This Agreement may be
executed in any number of counterparts (including by facsimile) and by
different parties hereto in separate counterparts, with the same effect as if
all parties had signed the same document. 
All such counterparts shall be deemed an original, shall be construed
together and shall constitute one and the same instrument.  This Agreement shall become effective when
each party hereto shall have received counterparts hereof signed by all of the
other parties hereto.

 

(h)           Entire
Agreement.  This Agreement contains the
entire agreement among the parties hereto with respect to the subject matter
hereof and supersedes and replaces all other prior agreements, written or oral,
among the parties hereto with respect to the subject matter hereof.

 

(i)            Captions.  The headings and other captions in this
Agreement are for convenience and reference only and shall not be used in
interpreting, construing or enforcing any provision of this Agreement.

 

(j)            Severability.  If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction or
other authority to be invalid, void or unenforceable, the remainder of the
terms, provisions, covenants and restrictions of this Agreement shall remain in
full force and effect and shall in no way be affected, impaired or invalidated
so long as the economic or legal substance of the transactions contemplated
hereby is not affected in any manner materially adverse to any party.  Upon such a determination, the parties shall
negotiate in good faith to modify this Agreement so as to effect the original
intent of the parties as closely as possible in an acceptable manner in order
that the transactions contemplated hereby be consummated as originally
contemplated to the fullest extent possible.

 

(k)           Amendments.  The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given without the prior 

 

16

 

written consent of the Holders of a majority of the Registrable Common
Shares (as constituted on the date hereof); provided, however, that without a
Holder’s written consent no such amendment, modification, supplement or waiver
shall affect adversely such Holder’s rights hereunder in a discriminatory
manner inconsistent with its adverse effects on rights of other Holders
hereunder (other than as reflected by the different number of shares held by
such Holder); provided, further, that the consent or agreement of the Company
shall be required with regard to any termination, amendment, modification or
supplement of, or waivers or consents to departures from, the terms hereof,
which affect the Company’s obligations hereunder.  This Agreement cannot be changed, modified,
discharged or terminated by oral agreement.

 

(l)            Aggregation
of Shares.  All Registrable Common
Shares held by or acquired by any Affiliated Persons will be aggregated
together for the purpose of determining the availability of any rights under
this Agreement.

 

(m)          Equitable
Relief.  Without limiting the
remedies available, the parties hereto acknowledge that any failure by the
Company to comply with its obligations under this Agreement will result in
material irreparable injury to the Holders for which there is no adequate
remedy at law, that it will not be possible to measure damages for such
injuries precisely and that, in the event of any such failure, any Holder shall
have the right to obtain such relief as may be required to specifically enforce
the Company’s obligations under this Agreement.

 

[Signature Page Follows]

 

17

 

IN
WITNESS WHEREOF, this Registration Rights Agreement has been
duly executed by each of the parties hereto as of the date first written above.

 

 

	
   

  	
  OMEGA NAVIGATION ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  ONE HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

18Exhibit 10.11

 

OMEGA NAVIGATION ENTERPRISES, INC.

2006 STOCK INCENTIVE PLAN

 

ARTICLE I.

General

 

1.1.         Purpose

 

The Omega Navigation Enterprises, Inc. 2006 Stock
Incentive Plan (the “Plan”) is designed to provide certain key persons, on
whose initiative and efforts the successful conduct of the business of Omega
Navigation Enterprises, Inc. (the “Company”) depends, with incentives to: (a) enter
into and remain in the service of the Company (b) acquire a proprietary
interest in the success of the Company, (c) maximize their performance and
(d) enhance the long-term performance of the Company.

 

1.2.         Administration

 

(a)           Administration
by Board of Directors.  The Plan
shall be administered by the Company’s Board of Directors (the “Administrator”).  The Administrator shall have the authority (i) to
exercise all of the powers granted to it under the Plan, (ii) to construe,
interpret and implement the Plan and any Award Agreements executed pursuant to Section 2.1
in its sole discretion with all such determination being final, binding and
conclusive, (iii) to prescribe, amend and rescind rules and
regulations relating to the Plan, including rules governing its own
operations, (iv) to make all determinations necessary or advisable in
administering the Plan, and (v) to correct any defect, supply any omission
and reconcile any inconsistency in the Plan.

 

(b)           Administrator
Action.  Actions of the Administrator
shall be taken by the vote of a majority of its members.  Any action may be taken by a written
instrument signed by a majority of the Administrator members, and action so
taken shall be fully as effective as if it had been taken by a vote at a
meeting.  Except to the extent prohibited
by applicable law or the applicable rules of a stock exchange, the
Administrator may allocate all or any portion of its responsibilities and
powers to any one or more of its members and may delegate all or any part of
its responsibilities to any person or persons selected by it, and may revoke
any such allocation or delegation at any time.

 

1.3.         Persons
Eligible for Awards

 

The persons eligible to receive awards under the Plan
are those officers, directors, and executive, managerial, administrative and
professional employees of the Company, (collectively, “key persons”) as the
Administrator in its sole discretion shall select, taking into account the
duties of the respective employees, their present and potential contributions
to the success of the Company, and such other factors as the Administrator
shall deem relevant in connection with accomplishing the purpose of the
Plan.  The Administrator may from time to
time, in its sole discretion, determine that any key person shall be ineligible
to receive awards under the Plan.

 

1

 

1.4.         Types
of Awards Under Plan

 

Awards may be made under the Plan in the form of (a) incentive
stock options, (b) non-qualified stock options, (c) stock
appreciation rights, (d) dividend equivalent rights, (e) restricted
stock, (f) unrestricted stock, (g) restricted stock units, and (h) performance
shares, all as more fully set forth in Article II.  The term “award” means any of the
foregoing.  No incentive stock option may
be granted to a person who is not an employee of the Company on the date of
grant. Notwithstanding any provision of the Plan, to the extent any Award would
be subject to Section 409A of the Code, no such Award may be granted if it
would fail to comply with the requirements set forth in Section 409A of
the Code.

 

1.5.         Shares
Available for Awards

 

(a)           Subject
to the provisions of Section 1.5(b), the aggregate number of shares of Class A
common stock of the Company (“Class A Common Stock”) with respect to which
options or restricted shares may at any time be granted under the Plan are [        ]
shares of Class A Common Stock.

 

(b)           Shares
issued pursuant to the Plan may be authorized but unissued Class A Common
Stock.  The Administrator may direct that
any stock certificate evidencing shares issued pursuant to the Plan shall bear
a legend setting forth such restrictions on transferability as may apply to
such shares.

 

(c)           Adjustment
Upon Changes in Class A Common Stock. 
Upon certain changes in Class A Common Stock, the number of shares
of Class A Common Stock available for issuance with respect to awards that
may be granted under the Plan pursuant to Section 1.5(a), shall be
adjusted pursuant to Section 3.7(a).

 

(d)           Certain
Shares to Become Available Again. 
The following shares of Class A Common Stock shall again become
available for awards under the Plan: any shares that are subject to an award
under the Plan and that remain unissued upon the cancellation or termination of
such award for any reason whatsoever; any shares of restricted stock forfeited
pursuant to Section 2.7(e), provided that any dividends paid on such
shares are also forfeited pursuant to such Section 2.7(e); and any shares
in respect of which a stock appreciation right or performance share award is
settled for cash.

 

(e)           Individual
Limit.  Except for the limits set
forth in this Section 1.5(d) and 2.2(i), no provision of this Plan
shall be deemed to limit the number or value of shares with respect to which
the Administrator may make awards to any eligible person.  Subject to adjustment as provided in Section 3.7(a),
the total number of shares of Class A Common Stock with respect to which
awards may be granted to any one employee of the Company during any one
calendar year shall not exceed [       ]
shares.  Stock options and stock
appreciation rights granted and subsequently canceled or deemed to be canceled
in a calendar year count against this limit even after their cancellation.  The provisions of this Section 1.5(e) shall
not apply in any circumstance with respect to which the Committee determines
that compliance with Section 162(m) of the Code is not necessary.

 

2

 

1.6.         Definitions
of Certain Terms

 

(a)           The “Fair Market Value” of a share of Class A Common Stock on any
day shall be the closing price on the Nasdaq National Market as reported for
such day in The Wall Street Journal or, if no such price is reported for such
day, the average of the high bid and low asked price of Class A Common
Stock as reported for such day.  If no
quotation is made for the applicable day, the Fair Market Value of a share of Class A
Common Stock on such day shall be determined in the manner set forth in the
preceding sentence using quotations for the next preceding day for which there
were quotations, provided that such quotations shall have been made within the
ten (10) business days preceding the applicable day.  Notwithstanding the foregoing, if deemed
necessary or appropriate by the Administrator, the Fair Market Value of a share
of Class A Common Stock on any day shall be determined by the
Administrator.  In no event shall the
Fair Market Value of any share of Class A Common Stock be less than its
par value.

 

(b)           The
term “incentive stock option” means an option that is intended to qualify for
special federal income tax treatment pursuant to sections 421 and 422 of the
Code as now constituted or subsequently amended, or pursuant to a successor
provision of the Code, and which is so designated in the applicable Grant
Certificate.  Any option that is not
specifically designated as an incentive stock option shall under no
circumstances be considered an incentive stock option.  Any option that is not an incentive stock
option is referred to herein as a “non-qualified stock option.”

 

(c)           The
term “cause” in connection with a termination of employment or Board membership
by reason of a dismissal for cause shall mean:

 

(i)            to
the extent that there is an employment, severance or other agreement governing
the relationship between the grantee and the Company, a Company subsidiary or a
Company joint venture, which agreement contains a definition of “cause,” cause
shall consist of those acts or omissions that would constitute “cause” under
such agreement; and otherwise,

 

(ii)           the
grantee’s termination of employment or Board membership by the Company or an
affiliate on account of any one or more of the following:

 

(A)          any
failure by the grantee substantially to perform the grantee’s employment or
Board membership duties;

 

(B)           any
excessive unauthorized absenteeism by the grantee;

 

(C)           any
refusal by the grantee to obey the lawful orders of the Board or any other
person or Administrator to whom the grantee reports;

 

(D)          any
act or omission by the grantee that is or may be injurious to the Company,
monetarily or otherwise;

 

(E)           any
act by the grantee that is inconsistent with the best interests of the Company;

 

3

 

(F)           the
grantee’s material violation of any of the Company’s policies, including,
without limitation, those policies relating to discrimination or sexual
harassment;

 

(G)           the
grantee’s unauthorized (a) removal from the premises of the Company or an
affiliate of any document (in any medium or form) relating to the Company or an
affiliate or the customers or clients of the Company or an affiliate or (b) disclosure
to any person or entity of any of the Company’s, or its affiliates’
confidential or proprietary information;

 

(H)          the
grantee’s commission of any felony, or any other crime involving moral
turpitude; and

 

(I)            the
grantee’s commission of any act involving dishonesty or fraud.

 

Any rights the Company may have hereunder in respect
of the events giving rise to cause shall be in addition to the rights the
Company may have under any other agreement with a grantee or at law or in
equity.  Any determination of whether a
grantee’s employment or Board membership is (or is deemed to have been)
terminated for cause shall be made by the Administrator in its discretion,
which determination shall be final, binding and conclusive on all parties.  If, subsequent to a grantee’s voluntary
termination of employment or involuntary termination of employment without
cause, it is discovered that the grantee’s employment could have been
terminated for cause, the Administrator may deem such grantee’s employment or
Board membership to have been terminated for cause.  A grantee’s termination of employment or
Board membership for cause shall be effective as of the date of the occurrence
of the event giving rise to cause, regardless of when the determination of
cause is made.

 

(d)           The
term “Code” means the Internal Revenue Code of 1986, as amended.

 

ARTICLE II.

Awards Under The Plan

 

2.1.         Agreements
Evidencing Awards

 

Each award granted under the Plan (except an award of
unrestricted stock) shall be evidenced by a written certificate (“Award Agreement”)
which shall contain such provisions as the Administrator may, in its sole
discretion, deem necessary or desirable. 
By executing an Award Agreement pursuant to the Plan, a grantee thereby
agrees that the award shall be subject to all of the terms and provisions of
the Plan and the applicable Award Agreement.

 

2.2.         Grant
of Stock Options, Stock Appreciation Rights, Restricted Stock Units and
Dividend Equivalent Rights

 

(a)           Stock
Option Grants.  The Administrator may
grant incentive stock options and non-qualified stock options (“options”) to
purchase shares of Class A Common Stock from the Company, to such key
persons, and in such amounts and subject to such vesting and forfeiture
provisions and other terms and conditions, as the Administrator shall determine,
in its sole 

 

4

 

discretion, subject to the
provisions of the Plan.  The
Administrator may not grant incentive stock options to non-employee directors.

 

(b)           Stock
Appreciation Right Grants; Types of Stock Appreciation Rights.  The Administrator may grant stock
appreciation rights to such key persons, and in such amounts and subject to
such vesting and forfeiture provisions and other terms and conditions, as the
Administrator shall determine, in its sole discretion, subject to the
provisions of the Plan.  The terms of a
stock appreciation right may provide that it shall be automatically exercised
for a cash payment upon the happening of a specified event that is outside the
control of the grantee, and that it shall not be otherwise exercisable.  Stock appreciation rights may be granted in
connection with all or any part of, or independently of, any option granted
under the Plan.  A stock appreciation
right granted in connection with an option may be granted at or after the time
of grant of such option.

 

(c)           Nature
of Stock Appreciation Rights.  The
grantee of a stock appreciation right shall have the right, subject to the
terms of the Plan and the applicable Award Agreement, to receive from the
Company an amount equal to (i) the excess of the Fair Market Value of a
share of Class A Common Stock on the date of exercise of the stock
appreciation right over the Fair Market Value of a share of Class A Common
Stock on the date of grant (or over the option exercise price if the stock
appreciation right is granted in connection with an option), multiplied by (ii) the
number of shares with respect to which the stock appreciation right is
exercised.  Payment upon exercise of a
stock appreciation right shall be in cash or in shares of Class A Common
Stock (valued at their Fair Market Value on the date of exercise of the stock
appreciation right) or both, all as the Administrator shall determine in its
sole discretion; provided, however, that a Stock Appreciation Right settled in
cash shall be exercisable only to the extent that such exercise complies with Section 409A
of the Code.  Upon the exercise of a
stock appreciation right granted in connection with an option, the number of
shares subject to the option shall be reduced by the number of shares with
respect to which the stock appreciation right is exercised.  Upon the exercise of an option in connection
with which a stock appreciation right has been granted, the number of shares
subject to the stock appreciation right shall be reduced by the number of
shares with respect to which the option is exercised.

 

(d)           Option
Exercise Price.  Each Award Agreement
with respect to an option shall set forth the amount (the “option exercise
price”) payable by the grantee to the Company upon exercise of the option
evidenced thereby.  The option exercise
price per share shall be determined by the Administrator in its sole
discretion; provided, however, that the option exercise price of an incentive
stock option shall be at least 100% of the Fair Market Value of a share of Class A
Common Stock on the date the option is granted, and provided further that in no
event shall the option exercise price be less than the par value of a share of Class A
Common Stock.

 

(e)           Exercise
Period.  Each Award Agreement with
respect to an option or stock appreciation right shall set forth the periods
during which the award evidenced thereby shall be exercisable, whether in whole
or in part.  Such periods shall be determined
by the Administrator in its sole discretion; provided, however, that no option
or a stock appreciation right shall be exercisable more than 10 years after the
date of grant, and provided further that, except as and to the extent that the
Administrator may otherwise provide pursuant to Sections 2.5, 3.7 or 3.8, no
option or stock appreciation right shall be exercisable prior to the first
anniversary of the date of grant. (See the default exercise period provided for
under Sections 2.3(a) and (b).)

 

5

 

(f)            Reload
Options.  The Administrator may, in
its sole discretion, include in any Award Agreement with respect to an option
(the “original option”) a provision that an additional option (the “reload
option”) shall be granted to any grantee who, pursuant to Section 2.3(e)(ii),
delivers shares of Class A Common Stock in partial or full payment of the
exercise price of the original option. 
The reload option shall be for a number of shares of Class A Common
Stock equal to the number thus delivered, shall have an exercise price equal to
the Fair Market Value of a share of Class A Common Stock on the date of
exercise of the original option, and shall have an expiration date no later
than the expiration date of the original option.  In the event that a Award Agreement provides
for the grant of a reload option, such Agreement shall also provide that the
exercise price of the original option be no less than the Fair Market Value of
a share of Class A Common Stock on its date of grant, and that any shares
that are delivered pursuant to Section 2.3 (e) (ii) in payment
of such exercise price shall have been held for at least six months.

 

(g)           Dividend
Equivalent Rights.  The Administrator
may, in its sole discretion, include in any Award Agreement with respect to an
option, stock appreciation right or performance shares, a dividend equivalent
right entitling the grantee to receive amounts equal to the ordinary dividends
that would be paid, during the time such award is outstanding and unexercised,
on the shares of Class A Common Stock covered by such award if such shares
were then outstanding.  In the event such
a provision is included in a Award Agreement, the Administrator shall determine
whether such payments shall be made in cash or in shares of Class A Common
Stock, whether they shall be conditioned upon the exercise of the award to
which they relate, the time or times at which they shall be made, and such
other vesting and forfeiture provisions and other terms and conditions as the
Administrator shall deem appropriate.

 

(h)           Restricted Stock Units.  The
Administrator may, in its sole discretion, grant stock restricted stock units
to such key persons, and in such amounts and subject to such vesting and
forfeiture provisions and other terms and conditions, as the Administrator
shall determine, in its sole discretion, subject to the provisions of the
Plan.  A restricted stock unit granted
under the Plan shall confer upon the grantee a right to receive from the
Company, upon the occurrence of an event specified in the Award Agreement, such
grantee’s vested restricted stock units multiplied by the Fair Market Value of
a share of Class A Common Stock. 
Restricted stock units may be granted in connection with all or any part
of, or independently of, any award granted under the Plan.  A restricted stock unit granted in connection
with another award may be granted at or after the time of grant of such award.

 

(i)            Incentive
Stock Option Limitation: Exercisability. 
To the extent that the aggregate Fair Market Value (determined as of the
time the option is granted) of the stock with respect to which incentive stock
options are first exercisable by any employee during any calendar year shall
exceed $100,000, or such higher amount as may be permitted from time to time
under section 422 of the Code, such options shall be treated as
non-qualified stock options.

 

(j)            Incentive
Stock Option Limitation; 10% Owners. 
Notwithstanding the provisions of paragraphs (d) and (e) of
this Section 2.2, an incentive stock option may not be granted under the
Plan to an individual who, at the time the option is granted, owns stock
possessing more than 10% of the total combined voting power of all classes of
stock of his employer corporation or of its parent or subsidiary corporations
(as such ownership may be determined for purposes of section 422(b) (6) of
the Code) unless (i) at the time such incentive stock option is granted
the option exercise price is at least 110% of the Fair Market Value of the 

 

6

 

shares subject thereto and (ii) the
incentive stock option by its terms is not exercisable after the expiration of
5 years from the date it is granted.

 

2.3.         Exercise
of Options, Stock Appreciation Rights and Restricted Stock Units

 

Subject to the other provisions of this Article II,
each option, stock appreciation right and restricted stock unit granted under
the Plan shall be exercisable as follows:

 

(a)           Timing
and Extent of Exercise.  Options,
stock appreciation rights and restricted stock units shall be exercisable at
such times and under such conditions as set forth in the corresponding Award
Agreement, but in no event shall any such award be exercisable prior to the
first anniversary or subsequent to the tenth anniversary of the date on which
such award was granted.  Unless the
applicable Award Agreement otherwise provides, an option, stock appreciation
right or restricted stock unit may be exercised from time to time as to all or
part of the shares or units as to which such award is then exercisable.  A stock appreciation right granted in
connection with an option may be exercised at any time when, and to the same
extent that, the related option may be exercised.

 

(b)           Notice
of Exercise.  An option, stock
appreciation right or restricted stock unit shall be exercised by the filing of
a written notice with the Company or the Company’s designated exchange agent
(the “exchange agent”), on such form and in such manner as the Administrator
shall in its sole discretion prescribe.

 

(c)           Payment
of Exercise Price.  Any written
notice of exercise of an option shall be accompanied by payment for the shares
being purchased.  Such payment shall be
made: (i) by certified or official bank check (or the equivalent thereof
acceptable to the Company or its exchange agent) for the full option exercise
price; or (ii) with the consent of the Administrator, by delivery of
shares of Class A Common Stock having a Fair Market Value (determined as
of the exercise date) equal to all or part of the option exercise price and a
certified or official bank check (or the equivalent thereof acceptable to the
Company or its exchange agent) for any remaining portion of the full option
exercise price; or (iii) at the discretion of the Administrator and to the
extent permitted by law, by such other provision, consistent with the terms of
the Plan, as the Administrator may from time to time prescribe (whether
directly or indirectly through the exchange agent).

 

(d)           Delivery
of Certificates Upon Exercise. 
Subject to the provision of section 2.3(e), promptly after
receiving payment of the full option exercise price, or after receiving notice
of the exercise of a stock appreciation right for which payment will be made
partly or entirely in shares, the Company or its exchange agent shall, subject
to the provisions of Section 3.2, deliver to the grantee or to such other
person as may then have the right to exercise the award, a certificate or
certificates for the shares of Class A Common Stock for which the award
has been exercised.  If the method of
payment employed upon option exercise so requires, and if applicable law
permits, an optionee may direct the Company or its exchange agent, as the case
may be, to deliver the stock certificate(s) to the optionee’s stockbroker.

 

(e)           Investment
Purpose and Legal Requirements. 
Notwithstanding the foregoing, at the time of the exercise of any
option, the Company may, if it shall deem it necessary or advisable for any
reason, require the holder of such option (i) to represent in writing to
the Company that it is the optionee’s then intention to acquire the Shares with
respect to which the 

 

7

 

option is to be exercised for
investment and not with a view to the distribution thereof, or (ii) to
postpone the date of exercise until such time as the Company has available for
delivery to the optionee a prospectus meeting the requirements of all
applicable securities laws; and no shares shall be
issued or transferred upon the exercise of any option unless and until all
legal requirements applicable to the issuance or transfer of such Shares have
been complied with to the satisfaction of the Company.  The Company shall have the right to condition
any issuance of shares to any optionee hereunder on such optionee’s undertaking
in writing to comply with such restrictions on the subsequent transfer of such
shares as the Company shall deem necessary or advisable as a result of any
applicable law, regulation or official interpretation thereof, and certificates
representing such shares may contain a legend to reflect any such restrictions.

 

(f)            No
Stockholder Rights.  No grantee of an
option, stock appreciation right or restricted stock unit (or other person
having the right to exercise such award) shall have any of the rights of a
stockholder of the Company with respect to shares subject to such award until
the issuance of a stock certificate to such person for such shares.  Except as otherwise provided in Section 1.5(b),
no adjustment shall be made for dividends, distributions or other rights
(whether ordinary or extraordinary, and whether in cash, securities or other
property) for which the record date is prior to the date such stock certificate
is issued.

 

2.4.         Compensation
in Lieu of Exercise of an Option

 

Upon written application of the grantee of an option,
the Administrator may in its sole discretion determine to substitute, for the
exercise of such option, compensation to the grantee not in excess of the
difference between the option exercise price and the Fair Market Value of the
shares covered by such written application on the date of such
application.  Such compensation may be in
cash, in shares of Class A Common Stock, or both, and the payment thereof
may be subject to conditions, all as the Administrator shall determine in its
sole discretion.  In the event
compensation is substituted pursuant to this Section 2.4 for the exercise,
in whole or in part, of an option, the number of shares subject to the option
shall be reduced by the number of shares for which such compensation is
substituted.

 

2.5.         Termination
of Employment; Death Subsequent to a Termination of Employment

 

(a)           General
Rule.  Except to the extent otherwise
provided in paragraphs (b), (c), (d) or (e) of this Section 2.5
or Section 3.8(b)(iii), a grantee who incurs a termination of employment
may exercise any outstanding option or stock appreciation right on the
following terms and conditions: (i) exercise may be made only to the
extent that the grantee was entitled to exercise the award on the termination
of employment date; and (ii) exercise must occur within three months after
termination of employment but in no event after the original expiration date of
the award.

 

(b)           Dismissal
for Cause; Resignation.  If a grantee
incurs a termination of employment as the result of a dismissal for cause or
resignation without the Company’s prior consent, as applicable, all options and
stock appreciation rights not theretofore exercised shall terminate upon the
grantee’s termination of employment.

 

(c)           Retirement.  If a grantee incurs a termination of
employment as the result of his retirement, then any outstanding option, stock
appreciation right or restricted stock unit shall be exercisable pursuant to
its terms.  For this purpose “retirement”
shall mean a grantee’s 

 

8

 

termination of employment,
under circumstances other than those described in paragraph (b) above, on
or after: (x) his 65th birthday, (y) the date on which he has attained age 60
and completed at least five years of service with the Company, as applicable,
(using any method of calculation the Administrator deems appropriate) or (z) if
approved by the Administrator, on or after he has completed at least 20 years
of service.

 

(d)           Disability.  If a grantee incurs a termination of
employment by reason of a disability (as defined below), then any outstanding
option, stock appreciation right or restricted stock unit shall be exercisable
pursuant to its terms.  For this purpose “disability”
shall mean, except in connection any physical or mental condition that would
qualify a grantee for a disability benefit under the long-term disability plan
maintained by the Company, if there is no such plan, a physical or mental
condition that prevents the grantee from performing the essential functions of
the grantee’s position (with or without reasonable accommodation) for a period
of six consecutive months.  The existence
of a disability shall be determined by the Administrator in its sole and
absolute discretion.

 

(e)           Death.

 

(i)            Termination of Employment as a Result of Grantee’s Death.  If a grantee incurs a termination of
employment as the result of his death, then any outstanding option, stock
appreciation right or restricted stock unit shall be exercisable pursuant to its
terms.

 

(ii)           Restrictions on Exercise Following Death.  Any such exercise of an award following a
grantee’s death shall be made only by the grantee’s executor or administrator
or other duly appointed representative reasonably acceptable to the Administrator,
unless the grantee’s will specifically disposes of such award, in which case
such exercise shall be made only by the recipient of such specific
disposition.  If a grantee’s personal
representative or the recipient of a specific disposition under the grantee’s
will shall be entitled to exercise any award pursuant to the preceding
sentence, such representative or recipient shall be bound by all the terms and
conditions of the Plan and the applicable Award Agreement which would have
applied to the grantee including, without limitation, the provisions of
Sections 3.2 and 3.5 hereof.

 

(f)            Special
Rules for Incentive Stock Options. 
No option that remains exercisable for more than three months following
a grantee’s termination of employment for any reason other than death or
disability, or for more than one year following a grantee’s termination of
employment as the result of his becoming disabled, may be treated as an
incentive stock option.

 

(g)           Administrator
Discretion.  The Administrator, in
the applicable Award Agreement, may waive or modify the application of the
foregoing provisions of this Section 2.5.

 

2.6.          Transferability
of Options, Stock Appreciation Rights and Restricted Stock Units

 

Except as otherwise provided in an applicable Award
Agreement evidencing an option, stock appreciation right or restricted stock
unit, during the lifetime of a grantee, each such award granted to a grantee
shall be exercisable only by the grantee and no such award shall be assignable
or transferable otherwise than by will or by the laws of descent and
distribution.  The Administrator may, in
any applicable Award Agreement evidencing an option (other than an incentive
stock option to the extent inconsistent with the requirements of section 422
of the 

 

9

 

Code applicable to incentive
stock options), permit a grantee to transfer all or some of the options to (A) the
grantee’s spouse, children or grandchildren (“Immediate Family Members”), (B) a
trust or trusts for the exclusive benefit of such Immediate Family Members, or (C) other
parties approved by the Administrator in its sole and absolute discretion.  Following any such transfer, any transferred
options shall continue to be subject to the same terms and conditions as were
applicable immediately prior to the transfer.

 

2.7.         Grant
of Restricted Stock

 

(a)           Restricted
Stock Grants.  The Administrator may
grant restricted shares of Class A Common Stock to such key persons, in
such amounts, and subject to such vesting and forfeiture provisions and other
terms and conditions as the Administrator shall determine in its sole
discretion, subject to the provisions of the Plan.  Restricted stock awards may be made
independently of or in connection with any other award under the Plan.  A grantee of a restricted stock award shall
have no rights with respect to such award unless such grantee accepts the award
within such period as the Administrator shall specify by accepting delivery of
a restricted stock agreement in such form as the Administrator shall determine
and, in the event the restricted shares are newly issued by the Company, makes
payment to the Company its exchange agent by certified or official bank check
(or the equivalent thereof acceptable to the Company) in an amount at least
equal to the par value of the shares covered by the award.

 

(b)           Issuance
of Stock Certificate(s).  Promptly
after a grantee accepts a restricted stock award, the Company or its exchange
agent shall issue to the grantee a stock certificate or stock certificates for
the shares of Class A Common Stock covered by the award or shall establish
an account evidencing ownership of the stock in uncertificated form.  Upon the issuance of such stock
certificate(s), or establishment of such account, the grantee shall have the
rights of a stockholder with respect to the restricted stock, subject to: (i) the
nontransferability restrictions and forfeiture provision described in
paragraphs (d) and (e) of this Section 2.7; (ii) in the
Administrator’s discretion, to a requirement that any dividends paid on such
shares shall be held in escrow until all restrictions on such shares have
lapsed; and (iii) any other restrictions and conditions contained in the
applicable restricted stock agreement.

 

(c)           Custody
of Stock Certificate(s).  Unless the
Administrator shall otherwise determine, any stock certificates issued
evidencing shares of restricted stock shall remain in the possession of the
Company until such shares are free of any restrictions specified in the
applicable restricted stock agreement. 
The Administrator may direct that such stock certificate(s) bear a
legend setting forth the applicable restrictions on transferability.

 

(d)           Nontransferability.  Shares of restricted stock may not be sold,
assigned, transferred, pledged or otherwise encumbered or disposed of except as
otherwise specifically provided in this Plan or the applicable restricted stock
agreement.  The Administrator at the time
of grant shall specify the date or dates (which may depend upon or be related to
the attainment of performance goals and other conditions) on which the
nontransferability of the restricted stock shall lapse.

 

(e)           Consequence
of Termination of Employment.  A
grantee’s termination of employment for any reason (including death) shall cause
the immediate forfeiture of all shares of restricted stock that have not yet
vested as of the date of such termination of employment.  All dividends paid on such shares also shall
be forfeited, whether by termination of any escrow 

 

10

 

arrangement under which such
dividends are held, by the grantee’s repayment of dividends he received
directly, or otherwise.

 

2.8.         Grant
of Unrestricted Stock

 

The Administrator may grant (or sell at a purchase
price at least equal to par value) shares of Class A Common Stock free of
restrictions under the Plan, to such key persons and in such amounts and
subject to such forfeiture provisions as the Administrator shall determine in
its sole discretion.  Shares may be thus
granted or sold in respect of past services or other valid consideration.

 

2.9.         Grant
of Performance Shares

 

(a)           Performance
Share Grants.  The Administrator may
grant performance share awards to such key persons, and in such amounts and
subject to such vesting and forfeiture provisions and other terms and
conditions, as the Administrator shall in its sole discretion determine,
subject to the provisions of the Plan. 
Such an award shall entitle the grantee to acquire shares of Class A
Common Stock, or to be paid the value thereof in cash, as the Administrator
shall determine, if specified performance goals are met.  Performance shares may be awarded
independently of, or in connection with, any other award under the Plan.  A grantee shall have no rights with respect
to a performance share award unless such grantee accepts the award by accepting
delivery of a Award Agreement at such time and in such form as the
Administrator shall determine.

 

(b)           Stockholder
Rights.  The grantee of a performance
share award will have the rights of a stockholder only as to shares for which a
stock certificate has been issued pursuant to the award and not with respect to
any other shares subject to the award.

 

(c)           Consequence
of Termination of Employment.  Except
as may otherwise be provided by the Administrator at any time prior to a
grantee’s termination of employment, the rights of a grantee of a performance
share award shall automatically terminate upon the grantee’s termination of
employment by the Company or its subsidiaries for any reason (including death).

 

(d)           Exercise
Procedures; Automatic Exercise.  At
the discretion of the Administrator, the applicable Award Agreement may set out
the procedures to be followed in exercising a performance share award or it may
provide that such exercise shall be made automatically after satisfaction of
the applicable performance goals.

 

(e)           Tandem
Grants; Effect on Exercise.  Except
as otherwise specified by the Administrator, (i) a performance share award
granted in tandem with an option may be exercised only while the option is
exercisable, (ii) the exercise of a performance share award granted in
tandem with any other award shall reduce the number of shares subject to such
other award in the manner specified in the applicable Award Agreement, and (iii) the
exercise of any award granted in tandem with a performance share award shall
reduce the number of shares subject to the latter in the manner specified in
the applicable Award Agreement.

 

(f)            Nontransferability.  Performance shares may not be sold, assigned,
transferred, pledged or otherwise encumbered or disposed of except as otherwise
specifically provided in this Plan or the applicable Award Agreement.  The Administrator at the time of grant shall

 

11

 

specify the date or dates
(which may depend upon or be related to the attainment of performance goals and
other conditions) on which the nontransferability of the performance shares
shall lapse.

 

ARTICLE III.

Miscellaneous

 

3.1.         Amendment
of the Plan; Modification of Awards

 

(a)           Amendment
of the Plan.  The Board may from time
to time suspend, discontinue, revise or amend the Plan in any respect
whatsoever, except that no such amendment shall materially impair any rights or
materially increase any obligations under any award theretofore made under the
Plan without the consent of the grantee (or, upon the grantee’s death, the
person having the right to exercise the award). 
For purposes of this Section 3.1, any action of the Board or the
Administrator that in any way alters or affects the tax treatment of any award
shall not be considered to materially impair any rights of any grantee.

 

(b)           Stockholder
Approval Requirement.  Stockholder
approval shall be required with respect to any amendment to the Plan that (i) increases
the aggregate number of shares that may be issued pursuant to incentive stock
options or changes the class of employees eligible to receive such options; or (ii) materially
increases the benefits under the Plan to persons whose transactions in Class A
Common Stock are subject to section 16(b) of the 1934 Act or
increases the benefits under the Plan to someone who is, materially increases
the number of shares which may be issued to such persons, or materially
modifies the eligibility requirements affecting such persons.

 

(c)           Modification
of Awards.  The Administrator may
cancel any award under the Plan.  The
Administrator also may amend any outstanding Award Agreement, including,
without limitation, by amendment which would: (i) accelerate the time or
times at which the award becomes unrestricted or may be exercised, provided
that, except as and to the extent that the Administrator may otherwise provide
pursuant to Section 2.5, 3.7 or 3.8, no option, stock appreciation right
or restricted stock unit shall be exercisable prior to the first anniversary of
its date of grant; (ii) waive or amend any goals, restrictions or
conditions set forth in the Agreement; or (iii) waive or amend the
operation of Section 2.5 with respect to the termination of the award upon
termination of employment.  However, any
such cancellation or amendment (other than an amendment pursuant to
Sections 3.7 or 3.8(b)) that materially impairs the rights or materially
increases the obligations of a grantee under an outstanding award shall be made
only with the consent of the grantee (or, upon the grantee’s death, the person
having the right to exercise the award).

 

3.2.         Consent
Requirement

 

(a)           No
Plan Action Without Required Consent. 
If the Administrator shall at any time determine that any Consent (as
hereinafter defined) is necessary or desirable as a condition of, or in
connection with, the granting of any award under the Plan, the issuance or
purchase of shares or other rights thereunder, or the taking of any other
action thereunder (each such action being hereinafter referred to as a “Plan
Action”), then such Plan Action shall not be taken, in whole or in part, unless
and until such Consent shall have been effected or obtained to the full
satisfaction of the Administrator.

 

12

 

(b)           Consent
Defined.  The term “Consent” as used
herein with respect to any Plan Action means (i) any and all listings,
registrations or qualifications in respect thereof upon any securities exchange
or under any federal, state or local law, rule or regulation, (ii) any
and all written agreements and representations by the grantee with respect to
the disposition of shares, or with respect to any other matter, which the
Administrator shall deem necessary or desirable to comply with the terms of any
such listing, registration or qualification or to obtain an exemption from the
requirement that any such listing, qualification or registration be made and (iii) any
and all consents, clearances and approvals in respect of a Plan Action by any
governmental or other regulatory bodies.

 

3.3.         Nonassignability

 

Except as provided in Sections 2.5(e), 2.6, 2.7(d) and
2.9(f): (a) no award or right
granted to any person under the Plan or under any Award Agreement shall be
assignable or transferable other than by will or by the laws of descent and
distribution; and (b) all rights granted under the Plan or any Award
Agreement shall be exercisable during the life of the grantee only by the
grantee or the grantee’s legal representative.

 

3.4.         Requirement
of Notification of Election Under Section 83(b) of the Code

 

If any grantee shall, in connection with the
acquisition of shares of Class A Common Stock under the Plan, make the
election permitted under section 83(b) of the Code (i.e., an election
to include in gross income in the year of transfer the amounts specified in section 83(b)),
such grantee shall notify the Company of such election within 10 days of filing
notice of the election with the Internal Revenue Service, in addition to any
filing and notification required pursuant to regulations issued under the
authority of Code section 83(b).

 

3.5.         Requirement
of Notification Upon Disqualifying Disposition Under Section 421(b) of
the Code

 

Each Award Agreement with respect to an incentive
stock option shall require the grantee to notify the Company of any disposition
of shares of Class A Common Stock issued pursuant to the exercise of such
option under the circumstances described in section 421(b) of the
Code (relating to certain disqualifying dispositions), within 10 days of such
disposition.

 

3.6.         Withholding
Taxes

 

(a)           With
Respect to Cash Payments.  Whenever
cash is to be paid pursuant to an award under the Plan, the Company shall be
entitled to deduct therefrom an amount sufficient in its opinion to satisfy all
federal, state and other governmental tax withholding requirements related to
such payment.

 

(b)           With
Respect to Delivery of Class A Common Stock.  Whenever shares of Class A Common Stock
are to be delivered pursuant to an award under the Plan, the Company shall be
entitled to require as a condition of delivery that the grantee remit to the
Company an amount sufficient in the opinion of the Company to satisfy all
federal, state and other governmental tax withholding requirements related
thereto.  With the approval of the
Administrator, which the Administrator shall have sole discretion whether or
not to give, the grantee may satisfy the foregoing condition by electing to
have the Company withhold from delivery shares having a value equal to the
amount of tax to be withheld. Such shares shall be valued at their Fair Market 

 

13

 

Value as of the date on which
the amount of tax to be withheld is determined. Fractional share amounts shall
be settled in cash.  Such a withholding
election may be made with respect to all or any portion of the shares to be
delivered pursuant to an award.

 

3.7.         Adjustment
Upon Changes in Class A Common Stock

 

(a)           Shares
Available for Grants.  In the event
of any change in the number of shares of Class A Common Stock outstanding
by reason of any stock dividend or split, reverse stock split,
recapitalization, merger, consolidation, combination or exchange of shares or
similar corporate change, the maximum number of shares of Class A Common
Stock with respect to which the Administrator may grant awards under Article II
hereof, as described in Section 1.5(a), and the individual annual limit
described in Section 1.5(d), shall be appropriately adjusted by the
Administrator.  In the event of any
change in the number of shares of Class A Common Stock outstanding by
reason of any other event or transaction, the Administrator may, but need not,
make such adjustments in the number and class of shares of Class A Common
Stock with respect to which awards: (i) may be granted under Article II
hereof and (ii) granted to any one employee of the Company or a subsidiary
during any one calendar year, in each case as the Administrator may deem
appropriate.

 

(b)           Outstanding
Restricted Stock and Performance Shares. 
Unless the Administrator in its sole and absolute discretion otherwise
determines, any securities or other property (including dividends paid in cash)
received by a grantee with respect to a share of restricted stock, the issue
date with respect to which occurs prior to such event, but which has not vested
as of the date of such event, as a result of any dividend, stock split, reverse
stock split, recapitalization, merger, consolidation, combination, exchange of
shares or otherwise will not vest until such share of restricted stock vests,
and shall be promptly deposited with the Company or other custodian designated
pursuant to Section 2.7(c) hereof.

 

The Administrator may, in its absolute discretion,
adjust any grant of shares of restricted stock, the issue date with respect to
which has not occurred as of the date of the occurrence of any of the following
events, or any grant of performance shares, to reflect any dividend, stock
split, reverse stock split, recapitalization, merger, consolidation,
combination, exchange of shares or similar corporate change as the
Administrator may deem appropriate to prevent the enlargement or dilution of
rights of grantees.

 

(c)           Outstanding
Options, Stock Appreciation Rights and Dividend Equivalent Rights—Increase or
Decrease in Issued Shares Without Consideration.   Subject to any required action by the
stockholders of the Company, in the event of any increase or decrease in the
number of issued shares of Class A Common Stock resulting from a
subdivision or consolidation of shares of Class A Common Stock or the
payment of a stock dividend (but only on the shares of Class A Common
Stock), or any other increase or decrease in the number of such shares effected
without receipt of consideration by the Company, the Administrator shall
proportionally adjust the number of shares of Class A Common Stock subject
to each outstanding option and stock appreciation right, and the exercise
price-per-share of Class A Common Stock of each such option and stock
appreciation right and the number of any related dividend equivalent rights.

 

(d)           Outstanding
Options, Stock Appreciation Rights, Restricted Stock Units and Dividend
Equivalent Rights—Certain Mergers. 
Subject to any required action by the

 

14

 

stockholders of the Company, in
the event that the Company shall be the surviving corporation in any merger or
consolidation (except a merger or consolidation as a result of which the
holders of shares of Class A Common Stock receive securities of another
corporation), each option, stock appreciation right and dividend equivalent
right outstanding on the date of such merger or consolidation shall pertain to
and apply to the securities which a holder of the number of shares of Class A
Common Stock subject to such option, stock appreciation right, restricted stock
unit or dividend equivalent right would have received in such merger or
consolidation.

 

(e)           Outstanding
Options, Stock Appreciation Rights, Restricted Stock Units and Dividend
Equivalent Rights — Certain Other Transactions. In the event of (i) a
dissolution or liquidation of the Company, (ii) a sale of all or substantially
all of the Company’s assets, (iii) a merger or consolidation involving the
Company in which the Company is not the surviving corporation or (iv) a merger
or consolidation involving the Company in which the Company is the surviving
corporation but the holders of shares of Class A Common Stock receive
securities of another corporation and/or other property, including cash, the
Administrator shall, in its absolute discretion, have the power to:

 

(i)            cancel,
effective immediately prior to the occurrence of such event, each option, stock
appreciation right and restricted stock unit (including each dividend
equivalent right related thereto) outstanding immediately prior to such event
(whether or not then exercisable), and, in full consideration of such
cancellation, pay to the grantee to whom such option or stock appreciation right
was granted an amount in cash, for each share of Class A Common Stock subject
to such option or stock appreciation right, respectively, equal to the excess
of (x) the value, as determined by the Administrator in its absolute
discretion, of the property (including cash) received by the holder of a share
of Class A Common Stock as a result of such event over (y) the exercise price
of such option or stock appreciation right; or

 

(ii)           provide
for the exchange of each option, stock appreciation right and restricted stock
unit (including any related dividend equivalent right) outstanding immediately
prior to such event (whether or not then exercisable) for an option on, stock
appreciation right, restricted stock unit and dividend equivalent right with
respect to, as appropriate, some or all of the property which a holder of the
number of shares of Class A Common Stock subject to such option, stock
appreciation right or restricted stock unit would have received and, incident
thereto, make an equitable adjustment as determined by the Administrator in its
absolute discretion in the exercise price of the option, stock appreciation
right or restricted stock unit, or the number of shares or amount of property
subject to the option, stock appreciation right, restricted stock unit or
dividend equivalent right or, if appropriate, provide for a cash payment to the
grantee to whom such option, stock appreciation right or restricted stock unit
was granted in partial consideration for the exchange of the option, stock
appreciation right or restricted stock unit.

 

(f)            Outstanding
Options, Stock Appreciation Rights, Restricted Stock Units and Dividend
Equivalent Rights — Other Changes. In the event of any change in the
capitalization of the Company or a corporate change other than those
specifically referred to in Sections 3.7(c), (d) or (e) hereof, the
Administrator may, in its absolute discretion, make such adjustments in the
number and class of shares subject to options, stock appreciation rights,
restricted stock units and dividend equivalent rights outstanding on the date
on which such change occurs and in the per-share exercise price of each such
option, stock appreciation right and restricted stock unit as the

 

15

 

Administrator may consider appropriate to prevent
dilution or enlargement of rights. In addition, if and to the extent the
Administrator determines it is appropriate, the Administrator may elect to
cancel each option, stock appreciation right and restricted stock unit
(including each dividend equivalent right related thereto) outstanding
immediately prior to such event (whether or not then exercisable), and, in full
consideration of such cancellation, pay to the grantee to whom such option,
stock appreciation right or restricted stock unit was granted an amount in
cash, for each share of Class A Common Stock subject to such option, stock
appreciation right or restricted stock unit, respectively, equal to the excess
of (i) the Fair Market Value of Class A Common Stock on the date of such
cancellation over (ii) the exercise price of such option, stock appreciation
right or restricted stock unit.

 

(g)           No
Other Rights. Except as expressly provided in the Plan, no grantee shall
have any rights by reason of any subdivision or consolidation of shares of
stock of any class, the payment of any dividend, any increase or decrease in
the number of shares of stock of any class or any dissolution, liquidation,
merger or consolidation of the Company or any other corporation. Except as
expressly provided in the Plan, no issuance by the Company of shares of stock
of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect
to, the number of shares of Class A Common Stock subject to an award or the
exercise price of any option or stock appreciation right.

 

3.8.         Change
in Control

 

(a)           Change
in Control Defined. For purposes of this Section 3.8, “Change in Control”
shall mean the occurrence of any of the following:

 

(i)            any
person or “group” (within the meaning of Section 13(d)(3) of the 1934
Act), other than entities which the President of the Company directly or
indirectly controls (as defined in Rule 12b-2 under the 1934 Act), acquiring
“beneficial ownership” (as defined in Rule 13d-3 under the 1934 Act), directly
or indirectly, of fifty percent (50%) or more of the aggregate voting power of
the capital stock ordinarily entitled to elect directors of the Company;

 

(ii)           the
sale of all or substantially all of the Company’s assets in one or more related
transactions to a person other than such a sale to a subsidiary of the Company
which does not involve a change in the equity holdings of the Company or to an
entity which the President directly or indirectly controls; or

 

(iii)          any
merger, consolidation, reorganization or similar event of the Company or any of
its subsidiaries, as a result of which the holders of the voting stock of the
Company immediately prior to such merger, consolidation, reorganization or
similar event do not directly or indirectly hold at least fifty-one percent
(51%) of the aggregate voting power of the capital stock of the surviving
entity.

 

Notwithstanding the foregoing, for each award subject
to Section 409A of the Code, a Change in Control shall be deemed to occur under
this Plan with respect to such Award only if a change in the ownership or
effective control of the Company or a change in the ownership of a substantial
portion of the assets of the Company shall also be deemed to have occurred
under Section 409A of the Code.

 

16

 

(b)           Effect
of a Change in Control. Unless the Administrator provides otherwise in a
Award Agreement, upon the occurrence of a Change in Control:

 

(i)            notwithstanding
any other provision of this Plan, any award then outstanding shall become fully
vested and any award in the form of an option, stock appreciation right or
restricted stock unit shall be immediately exercisable;

 

(ii)           to
the extent permitted by law, the Administrator may, in its sole discretion,
amend any Award Agreement in such manner as it deems appropriate;

 

(iii)          a
grantee who incurs a termination of employment for any reason, other than a
dismissal for cause, concurrent with or within one year following the Change in
Control may exercise any outstanding option, stock appreciation right or
restricted stock unit, but only to the extent that the grantee was entitled to
exercise the award on his termination of employment date, until the earlier of
(A) the original expiration date of the award and (B) the later of (x) the date
provided for under the terms of Section 2.5 without reference to this Section
3.8(b)(iii) and (y) the first anniversary of the grantee’s termination of
employment.

 

(c)           Miscellaneous.
Whenever deemed appropriate by the Administrator, any action referred to in
paragraph (b)(ii) of this Section 3.8 may be made conditional upon the
consummation of the applicable Change in Control transaction.

 

3.9.         Right
of Discharge Reserved

 

Nothing in the Plan or in any Award Agreement shall confer upon any
grantee the right to continue his employment with the Company or affect any
right that the Company may have to terminate such employment.

 

3.10.       Non-Uniform
Determinations

 

The Administrator’s determinations under the Plan need not be uniform
and may be made by it selectively among persons who receive, or who are
eligible to receive, awards under the Plan (whether or not such persons are
similarly situated). Without limiting the generality of the foregoing, the
Administrator shall be entitled, among other things, to make non-uniform and
selective determinations, and to enter into non-uniform and selective Award
Agreements, as to (a) the persons to receive awards under the Plan, and (b) the
terms and provisions of awards under the Plan.

 

3.11.       Other
Payments or Awards

 

Nothing contained in the Plan shall be deemed in any way to limit or
restrict the Company from making any award or payment to any person under any
other plan, arrangement or understanding, whether now existing or hereafter in
effect.

 

3.12.       Headings

 

Any section, subsection, paragraph or other subdivision headings
contained herein are for the purpose of convenience only and are not intended
to expand, limit or otherwise define the contents of such subdivisions.

 

17

 

3.13.       Effective
Date and Term of Plan

 

(a)           Adoption;
Stockholder Approval. The Plan was adopted by the Board and although the
Company intends to obtain approval of the Plan by the Company’s stockholders
within the time period required to allow grants of options hereunder to qualify
as incentive stock options, awards under the Plan prior to such stockholder
approval may, but need not, be made subject to such approval.

 

(b)           Termination
of Plan. Unless sooner terminated by the Board or pursuant to Paragraph (a)
above, the provisions of the Plan respecting the grant of incentive stock
options shall terminate on the tenth anniversary of the adoption of the Plan by
the Board, and no incentive stock option awards shall thereafter be made under
the Plan. All such awards made under the Plan prior to its termination shall
remain in effect until such awards have been satisfied or terminated in
accordance with the terms and provisions of the Plan and the applicable Award
Agreements.

 

3.14.       Restriction
on Issuance of Stock Pursuant to Awards

 

The Company shall not permit any shares of Class A Common Stock to be
issued pursuant to Awards granted under the Plan unless such shares of Class A
Common Stock are fully paid and non-assessable under applicable law.

 

3.15.       Governing
Law

 

Except to the extent preempted by any applicable federal law, the Plan
will be construed and administered in accordance with the laws of the State of
New York, without giving effect to principles of conflict of laws.

 

3.16.       Compliance
with Section 409A of the Code

 

Notwithstanding anything to the contrary contained in the Plan or in
any Agreement, to the extent that the Committee determines that the Plan or any
Award is subject to Section 409A of the Code and fails to comply with the
requirements of Section 409A of the Code, the Committee reserves the right to
amend or terminate the Plan and/or amend, restructure, terminate or replace the
Award in order to cause the Award to either not be subject to Section 409A of
the Code or to comply with the applicable provisions of such section.

 

18

 

EXHIBIT A

 

OMEGA NAVIGATION ENTERPRISES, INC.,

2006 STOCK INCENTIVE PLAN

 

OPTION AGREEMENT

 

THIS OPTION AGREEMENT made this [    ] day of [    ]
200[   ], between Omega Navigation Enterprises, Inc. (the
“Company”) and [                    ]
(the “Optionee”).

 

WHEREAS, the Company desires to carry out the purpose of the between
Omega Navigation Enterprises, Inc. 2006 Stock Incentive Plan (the “Plan”), a
copy of which is attached hereto as Exhibit A, by affording the Optionee an
opportunity to purchase its common stock;

 

WHEREAS, any terms defined in the Plan shall have the same meaning in
this Agreement;

 

NOW THEREFORE, under the Plan and in consideration of the mutual
covenants hereinafter set forth, the parties hereto agree as follows:

 

1.     Grant
of Option. The Company hereby grants to the Optionee the right and option
(the “Option”) to purchase [    ] shares of Class A common
stock of the Company, par value $0.01 share (the “Shares”) on the terms and
conditions set forth under the Plan and this Agreement. The Options issued
pursuant to this Agreement shall constitute nonqualified stock options.

 

2.     Option
Price. Subject to Section 5 below, the purchase price of the Shares covered
by the Option shall be $[    ] per Share (equaling the
offer price per Share in the Company’s follow-on offering) which shall be paid
in full at the time of exercise. The Option Price is the purchase price per
Share times the number of Options to be exercised. The Option Price may be
adjusted by the Administrator as provided in Section 3.7 of the Plan.

 

3.     Method
of Exercise. Subject to the terms and conditions of the Plan and this
Agreement, the vested Options may be exercised upon notice to the Company on
the form provided by the Administrator and delivery of the Option Price
attributable to the optioned Shares to be purchased. 

 

4.     Time
and Method of Payment. The Option Price for the optioned Shares to be
purchase shall be paid in full at the time an Option is exercised. The Option
Price may be paid in a combination of cash and Shares having a Market Price
equal to the balance of the Option Price. A valid exercise requires that the
Optionee deliver the form of exercise and full payment for the optioned Shares
to be purchased to the Company.

 

5.     [Dividend
Equivalents. For any full calendar year following the date of grant in
which the dividends per share distributed to Company shareholders exceeds three
percent (3%) of the Option Price as of the grant date, the Option Price shall
be reduced by the amount of the dividends the Optionee would have received with
respect to the optioned Shares had the Optionee been a shareholder of record on
the record date with respect to such dividend distribution.]

 

1

 

6.     Vesting
and Term of Option. The Options shall vest with respect to 25% of the
Options on [                    ]  and each of the three anniversaries
thereafter, conditioned upon the Optionee’s continued service as an employee of
the Company or an affiliate (an “Employee”) or as a director of the Company
from the date of this Agreement until the date such Options vest. In the event
the Optionee’s ceases to be a member of the Board or an Employee, as
applicable, for any reason, the Optionee shall forfeit all rights to the
non-vested Options. Except as otherwise permitted by the Administrator, this
Option shall not be exercisable to any extent prior to [                    ]
or after [                    ].

 

7.     Exercise.
During the term of the Option, a vested Option may be exercised in one or
more exercises in part or in whole at any time. The Administrator, as provided
in Section 3.1(c) of the Plan, may accelerate the exercisability of the Option
at such time and under such circumstances as the Administrator, in its sole
discretion, deems appropriate.

 

8.     Termination
of Employment or Board Membership. Upon the Optionee’s termination of
service as an Employee or as a member of the Board for any reason, any Options
not vested shall be forfeited. Except as provided in the case of the Optionee’s
termination of employment by reason of the Optionee’s death, Disability or
Retirement, each Option granted hereunder shall expire, to the extent vested
and not theretofore exercised, upon the earlier of the date the Optionee ceases
to be an Employee or a member of the Board, or when the Option would otherwise
expire.

 

9.     Death,
Disability or Retirement of Optionee. If an Optionee shall die or become
Disabled while an Employee or member of the Board, or Retire, all vested
Options theretofore granted to such Optionee may be exercised pursuant to their
terms. In the event of death or incapacity an Option shall be exercised by a
legal representative of an Optionee, written notice of such exercise shall be
accompanied by a certified copy of letters testamentary or equivalent proof of
the right of such legal representative to exercise such Option.

 

10.   Taxes.
If the Administrator shall so require, as a condition of exercise of an
Option, the Optionee shall agree that no later than the date of exercise, the
Optionee will pay to the Company or make arrangements satisfactory to the
Administrator regarding payment of any federal, state or local taxes of any
kind required by law to be withheld in connection with the exercise of an
Option.

 

11.   Nontransferability.
The Option is nontransferable other than by will or by the laws of descent
and distribution.

 

12.   Legal
Requirements. At the time of the exercise of any Option, the Company or the
Administrator may postpone the date of exercise until such time as the Company
has available for delivery to the Optionee a prospectus meeting the
requirements of all applicable securities laws, and no Shares shall be issued
or transferred upon the exercise of any Option unless and until all legal
requirements applicable to the issuance or transfer of Shares have been
complied with to the satisfaction of the Company.

 

13.   Representation
of Optionee. Prior to the issuance of any Shares pursuant to the exercise
of Options hereunder, at the request of the Administrator, the Optionee shall
represent in writing to the Company that it is the Optionee’s intention to
acquire the Shares with respect

 

2

 

to which the Option is to be exercised for
investment and not with a view to the distribution thereof.

 

14.   Changes
in Capital Structure. As determined by the Administrator within the discretion
granted under Section 7 of the Plan, if any change described in Section 7 of
the Plan is made to the Shares, an appropriate adjustment in the number of
Shares for which Options which have been or may be granted under the Plan and
the Option Price will be made.

 

15.   Rights
as a Shareholder. An Optionee shall have no rights as a shareholder with
respect to any Shares covered by the Option until the date of the issuance of a
stock certificate for such Shares. No adjustment shall be made for dividends (ordinary
or extraordinary, whether in cash, securities or other property) or
distributions of other rights for which the record date is prior to the date
such stock certificate is issued, except as provided in Section 5 above and
Section 7 of the Plan.

 

16.   Amendment
and Termination of the Plan. The Board at any time and from time to time
may suspend, terminate, modify or amend the Plan; provided, however, except as
provided in Section 7 of the Plan, no suspension, termination,
modification or amendment of the Plan may, without the express written consent
of the Optionee involved, adversely affect any Option previously granted to the
Optionee.

 

17.   Governing
Law. The Plan and this Agreement are governed by the internal substantive
laws but not the choice of law rules of New York.

 

IN WITNESS WHEREOF, THE PARTIES HERETO HAVE EXECUTED THIS OPTION
AGREEMENT ON THE DATE FIRST WRITTEN ABOVE.

 

	
   

  	
  OMEGA NAVIGATION ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  OPTIONEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}]]