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EXHIBIT 4.7

TECHNOLOGY SOLUTIONS COMPANY

2006 Employment Inducement Award Plan

     1. Purposes of the Plan. The purposes of this 2006 Employment Inducement Award Plan
(the “Plan”) are (a) to align the interests of the Company’s stockholders and the recipients of
awards under this Plan by increasing the participation of such recipients in the Company’s growth
and success, (b) to advance the interests of the Company by providing a material inducement for the
best available employees to join the Company, and (c) to motivate such persons to act in the
long-term best interests of the Company’s stockholders. The Plan permits the grant of Nonstatutory
Stock Options, Restricted Stock and Restricted Stock Units.

     2. Definitions. As used herein, the following definitions shall apply:

          (a) “Administrator” means the Committee that shall be administering the Plan in
accordance with Section 4 of the Plan.

          (b) “Applicable Laws” means the requirements relating to the administration of stock
option plans under state corporate laws, federal and state securities laws, the Code, any stock
exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws
of any foreign country or jurisdiction where Awards are granted under the Plan.

          (c) “Award” means, individually or collectively, a grant under the Plan of Options,
Restricted Stock or Restricted Stock Units.

          (d) “Award Agreement” means the written agreement setting forth the terms and
provisions applicable to each Award granted under the Plan. The Award Agreement is subject to the
terms and conditions of the Plan.

          (e) “Change in Control” means the occurrence of any of the following events:

               (i) the acquisition by any individual, entity or group (a “Person”), including any
“person” within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act, of beneficial
ownership within the meaning of Rule 13d-3 under the Exchange Act, of 40% or more of either (i) the
then outstanding shares of Common Stock (the “Outstanding Common Stock”) or (ii) the
combined voting power of the then outstanding securities of the Company entitled to vote generally
in the election of directors (the “Outstanding Voting Securities”); excluding, however, the
following: (A) any acquisition directly from the Company (excluding any acquisition resulting from
the exercise of an exercise, conversion or exchange privilege unless the security being so
exercised, converted or exchanged was acquired directly from the Company), (B) any acquisition by
the Company, (C) any acquisition by an employee benefit plan (or related trust)

 

 

sponsored or maintained by the Company or any corporation controlled by the Company or (D) any
acquisition by any corporation pursuant to a transaction which complies with clauses (a), (b) and
(c) of subsection (iii) of this Section 2(e); provided, further, that for purposes of clause (B), if
any Person (other than the Company or any employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company) shall become the beneficial
owner of 40% or more of the Outstanding Common Stock or 40% or more of the Outstanding Voting
Securities by reason of an acquisition by the Company, and such Person shall, after such
acquisition by the Company, become the beneficial owner of any additional shares of the Outstanding
Common Stock or any additional Outstanding Voting Securities and such beneficial ownership is
publicly announced, such additional beneficial ownership shall constitute a Change in Control;

               (ii) individuals who, as of the date this Plan is approved by the Board of Directors
constitute the Board of Directors (the “Incumbent Board”) cease for any reason to
constitute at least a majority of such Board of Directors; provided, that any individual who
becomes a director of the Company subsequent to the date this Plan is approved by the Board of
Directors whose election, or nomination for election by the Company’s stockholders, was approved by
the vote of at least a majority of the directors then comprising the Incumbent Board shall be
deemed a member of the Incumbent Board; and provided, further, that any individual who was
initially elected as a director of the Company as a result of an actual or threatened election
contest, as such terms are used in Rule 14a-11 of Regulation 14A under the Exchange Act, or any
other actual or threatened solicitation of proxies or consents by or on behalf of any Person other
than the Board of Directors shall not be deemed a member of the Incumbent Board;

               (iii) the consummation of a reorganization, merger or consolidation of the Company or sale or
other disposition of all or substantially all of the assets of the Company (a “Corporate
Transaction”); excluding, however, a Corporate Transaction pursuant to which (a) all or
substantially all of the individuals or entities who are the beneficial owners, respectively, of
the Outstanding Common Stock and the Outstanding Voting Securities immediately prior to such
Corporate Transaction will beneficially own, directly or indirectly, more than 60% of,
respectively, the outstanding shares of common stock, and the combined voting power of the
outstanding securities of such corporation entitled to vote generally in the election of directors,
as the case may be, of the corporation resulting from such Corporate Transaction (including,
without limitation, a corporation which as a result of such transaction owns the Company or all or
substantially all of the Company’s assets either directly or indirectly) in substantially the same
proportions relative to each other as their ownership, immediately prior to such Corporate
Transaction, of the Outstanding Common Stock and the Outstanding Voting Securities, as the case may
be, (b) no Person (other than: the Company; any employee benefit plan (or related trust) sponsored
or maintained by the Company or any corporation controlled by the Company; the corporation
resulting from such Corporate Transaction; and any Person which beneficially owned, immediately
prior to such Corporate Transaction, directly or indirectly, 40% or more of the Outstanding Common
Stock or the Outstanding Voting Securities, as the case may be) will beneficially own, directly or
indirectly, 40% or more of, respectively, the outstanding shares of common stock of the corporation
resulting from such Corporate Transaction or the combined voting power of the outstanding
securities of such corporation entitled to vote generally in the election of directors and (c)
individuals who were members of the Incumbent Board will

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constitute at least a majority of the members of the board of directors of the corporation
resulting from such Corporate Transaction; or

               (iv) the consummation of a plan of complete liquidation or dissolution of the Company.

          (f) “Code” means the Internal Revenue Code of 1986, as amended.

          (g) “Committee” means a committee of Independent Directors appointed by the Board of
Directors in accordance with Section 4 of the Plan. The Committee shall consist of two or more
members of the Board of Directors, each of whom shall be (i) a “Non-Employee Director” within the
meaning of Rule 16b-3 and (ii) an “outside director” within the meaning of Section 162(m) of the
Code. Initially, the Committee shall be the Compensation Committee of the Board of Directors.

          (h) “Common Stock” means the common stock, $0.01 par value per share, of the Company.

          (i) “Company” means Technology Solutions Company, a Delaware corporation.

          (j) “Consultant” means any person, including an advisor, engaged by the Company or a
Parent or Subsidiary to render services to such entity.

          (k) “Director” means a member of the Company’s Board of Directors.

          (l) “Disability” means a condition which renders the individual unable to engage in
any substantial gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or which can be expected to last for a
continuous period of not fewer than twelve (12) months.

          (m) “Employee” means any person, including Officers and Directors, employed by the
Company or any Parent or Subsidiary of the Company. Neither service as a Director nor payment of a
director’s fee by the Company shall be sufficient to constitute “employment” by the Company.

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

          (o) “Fair Market Value” means, as of any date, the value of Common Stock determined as
follows:

               (i) If the Common Stock is listed on any established stock exchange or a national market
system, including without limitation the NASDAQ Global Market, its Fair Market Value shall be the
closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on
such exchange or system on the date of determination, as reported in The Wall Street Journal or
such other source as the Administrator deems reliable;

               (ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling
prices are not reported, the Fair Market Value of a Share of Common Stock shall be

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the mean between the high bid and low asked prices for the Common Stock on the date of
determination, as reported in The Wall Street Journal or such other source as the Administrator
deems reliable; or

               (iii) in the absence of an established market for the Common Stock, the Fair Market Value
shall be determined in good faith by the Administrator, consistent with any method which is
considered reasonable for purposes of determinations of fair market value under Code Section 409A.

          (p) “Independent Director” means a Director who is not an Employee and who qualifies
as an Independent Director under the applicable rules of NASDAQ Global Market (and/or the similar
rules of any other stock exchange(s) on which the Company’s securities become publicly traded).

          (q) “Nonstatutory Stock Option” means an option not intended to qualify as an
“incentive stock option” within the contemplation of Code Section 422.

          (r) “Notice of Grant” means a written or electronic notice evidencing certain terms
and conditions of an individual Award. The Notice of Grant is part of the Award Agreement.

          (s) “Officer” means a person who is an officer of the Company within the meaning of
Section 16 of the Exchange Act and the rules and regulations thereunder.

          (t) “Option” means a Nonstatutory Stock Option granted pursuant to the Plan.

          (u) “Optioned Stock” means the Common Stock subject to an Option.

          (v) “Optionee” means a Participant to whom an Option has been granted under the Plan
which has not expired or been fully exercised or surrendered.

          (w) “Parent” means a “parent corporation,” whether now or hereafter existing, as
defined in Section 424(e) of the Code.

          (x) “Participant” means the holder of an outstanding Award granted under the Plan.

          (y) “Performance Measures” shall mean the criteria and objectives, established by the
Committee, which shall be satisfied or met (i) as a condition to the grant of an Award of
Restricted Stock or Restricted Stock Units, or (ii) during the applicable Restriction Period or
Performance Period as a condition to the holder’s receipt, in the case of a Restricted Stock Award,
of the shares of Common Stock subject to such award, or, in the case of an Award of Performance
Shares, of the shares of Common Stock subject to such award and/or of payment with respect to such
award. In the sole discretion of the Committee, the Committee may amend or adjust the Performance
Measures or other terms and conditions of an outstanding award in recognition of unusual or
nonrecurring events affecting the Company or its financial statements or changes in law or
accounting principles. Such criteria and objectives may include one or more of the following: the
attainment by a share of Common Stock of a specified Fair Market Value for a specified period of
time, earnings per share, return to stockholders (including dividends), operating income, operating
income margin, return on equity, earnings of the Company,

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revenues, market share, cash flow or cost reduction goals, or any combination of the
foregoing. If the Committee desires that compensation payable pursuant to any award subject to
Performance Measures be “qualified performance-based compensation” within the meaning of Section
162(m) of the Code, the Performance Measures (i) shall be established by the Committee no later
than 90 days after the beginning of the Performance Period or Restriction Period, as applicable (or
such other time designated by the Internal Revenue Service) and (ii) shall satisfy all other
applicable requirements imposed by Section 162(m) of the Code and the rules and regulations
thereunder, including the requirement that such Performance Measures be stated in terms of an
objective formula or standard.

          (z) “Performance Period” shall mean any period designated by the Committee during
which the Performance Measures applicable to an Award of Performance Shares shall be measured.

          (aa) “Performance Share” shall mean a right, contingent upon the attainment of
specified Performance Measures within a specified Performance Period, to receive one share of
Restricted Stock, Restricted Stock Unit, or, in lieu of all or a portion thereof, the Fair Market
Value of such Performance Share in cash.

          (bb) “Plan” means this 2006 Employment Inducement Award Plan.

          (cc) “Restricted Stock” means shares of Common Stock granted pursuant to Section 9 of
the Plan that are subject to vesting.

          (dd) “Restricted Stock Units” means units representing rights to acquire shares of
Common Stock granted pursuant to Section 9 of the Plan that are subject to vesting.

          (ee) “Restriction Period” shall mean any period designated by the Committee during
which the Common Stock subject to an Award of Restricted Stock may not be sold, transferred,
assigned, pledged, hypothecated or otherwise encumbered or disposed of, except as provided in this
Plan or the Award Agreement relating to such award.

          (ff) “Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3,
as in effect when discretion is being exercised with respect to the Plan.

          (gg) “Section 16(b)” means Section 16(b) of the Exchange Act.

          (hh) “Service Provider” means an Employee, Director or Consultant.

          (ii) “Share” means a share of the Common Stock, as adjusted in accordance with Section
12 of the Plan.

          (jj) “Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing,
as defined in Section 424(f) of the Code and also include partnerships, limited liability companies
and other entities that are at least 30% owned by the Company.

     3. Stock Subject to the Plan. Subject to the provisions of Section 12 of the Plan, the
maximum aggregate number of Shares which may be issued under the Plan is three hundred and

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seventy five thousand (375,000) Shares; provided, however, that in no event shall more than
25% of the Shares issuable under the Plan be granted pursuant to Awards with an exercise price or
purchase price that is less than 100% of Fair Market Value on the date of grant. The Shares may be
authorized, but unissued, or reacquired Common Stock.

          If an Award expires or becomes unexercisable without having been exercised in full, or, with
respect to Restricted Stock or Restricted Stock Units, is forfeited back to or repurchased by the
Company, the unpurchased Shares (or for Restricted Stock or Restricted Stock Units, the forfeited
or repurchased shares) which were subject thereto shall become available for future grant or sale
under the Plan (unless the Plan has terminated). However, Shares that have actually been issued
under the Plan under any Award shall not be returned to the Plan and shall not become available for
future distribution under the Plan, except that if Shares of Restricted Stock are repurchased by
the Company at their original purchase price or are forfeited to the Company, such Shares shall
become available for future grant under the Plan.

          Subject to adjustment as provided in Section 12, the maximum number of Shares of Common Stock
with respect to which an Award may be granted to a new Employee (other than a new executive
officer) of the Company shall be (i) 50,000 Shares pursuant to an Option, (ii) 25,000 Shares
pursuant to an Award of Restricted Stock and/or Restricted Stock Units, or (iii) a pro rata
combination of the limits set forth under clauses (i) and (ii) if a combination of Options,
Restricted Stock and Restricted Stock Units are granted. The Committee shall have the authority, in
its discretion, to reduce the preceding limits to the extent required to make an Award compliant
with Section 162(m) of the Code and the rules and regulations thereunder.

     4. Administration of the Plan.

          (a) Procedure.

               (i) Rule 16b-3. To the extent desirable to qualify transactions hereunder as exempt
under Rule 16b-3, the transactions contemplated hereunder shall be structured to satisfy the
requirements for exemption under Rule 16b-3.

               (ii) Plan Administration. The Plan shall be administered by the Company’s Compensation
Committee of the Board of Directors.

               (b) Powers of the Administrator. Subject to the provisions of the Plan, and further
subject to the requirements imposed under Section 162(m) of the Code and the rules and regulations
thereunder in the case of an Award intended to be qualified performance-based compensation, the
Administrator shall have the authority, in its discretion:

               (i) to determine the Fair Market Value;

               (ii) to select the new Employees to whom Awards may be granted hereunder;

               (iii) to determine the number of shares of Common Stock to be covered by each Award granted
hereunder;

               (iv) to approve forms of Award Agreement for use under the Plan;

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               (v) to determine the terms and conditions, not inconsistent with the terms of the Plan, of any
Award granted hereunder. Such terms and conditions include, but are not limited to, the exercise or
purchase price, the time or times when Awards may be vested, exercised, purchased or granted (which
may be based on performance criteria), any vesting acceleration or waiver of forfeiture
restrictions or repurchase rights, and any restriction or limitation regarding any Award or the
shares of Common Stock relating thereto (including any Restriction Period or any Performance
Measures to be satisfied or met as a condition to the grant or vesting of an Award of Restricted
Stock or Restricted Stock Units), based in each case on such factors as the Administrator, in its
sole discretion, shall determine;

               (vi) to construe and interpret the terms of the Plan and awards granted pursuant to the Plan,
including, but not limited to, a determination of a Participant’s date of termination with respect
to any Award granted under the Plan;

               (vii) to prescribe, amend and rescind rules and regulations relating to the Plan, including
rules and regulations relating to sub-plans established for the purpose of qualifying for preferred
tax treatment under foreign tax laws, satisfying foreign securities law or achieving other foreign
legal compliance objectives;

               (viii) to modify or amend each Award (subject to Section 14 of the Plan), including the
discretionary authority to extend the post-termination vesting or exercisability of Awards longer
than is otherwise provided for in the Plan;

               (ix) in accordance with Section 18 of the Plan, to allow or require Participants to satisfy
withholding tax obligations by having the Company withhold from the Shares to be issued upon
exercise of an Option or upon the vesting or earlier tax recognition of Restricted Stock or
Restricted Stock Units that number of Shares having a Fair Market Value equal to the minimum amount
required to be withheld;

               (x) to authorize any person to execute on behalf of the Company any instrument required to
effect the grant of an Award previously granted by the Administrator; and

               (xi) to make all other determinations deemed necessary or advisable for administering the
Plan.

          (c) Effect of Administrator’s Decision. The Administrator’s decisions, determinations
and interpretations shall be final and binding on all Participants and any other holders of Awards.

     5. Eligibility.

          (a) General Eligibility. Awards may be granted only to Employees as a material
inducement to entering into their initial employment with the Company; provided, however, that a
former employee who is returning to the employ of the Company following a bona-fide period of
non-employment by the Company may also receive an Award hereunder.

          (b) Leaves of Absence. The effect of leaves of absence on Award vesting, if any, shall
be as set forth in the applicable Award Agreement.

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     6. Limitations.

          (a) Each Option shall be designated in the Award Agreement as a Nonstatutory Stock Option.

          (b) Neither the Plan nor any Award shall confer upon a Participant any right with respect to
continuing their relationship as a Service Provider, nor shall they interfere in any way with the
right of the Participant or the right of the Company or its Parent or Subsidiaries to terminate
such relationship at any time, with or without cause.

     7. Term of Plan. The Plan shall become effective upon the date of approval by the
Board of Directors. The Plan shall continue in effect for a term of ten (10) years from the date
upon which the Board of Directors approved the Plan.

     8. Stock Options.

          (a) Term of Option. The term of each Option shall be stated in the Award Agreement and
shall be no more than ten (10) years from the date of grant.

          (b) Option Exercise Price, Waiting Period and Consideration.

               (i) Exercise Price. The per share exercise price for the Shares to be issued pursuant
to exercise of an Option shall be determined by the Administrator, with a minimum exercise price
equal to the Fair Market Value of a Share on the date of grant.

               (ii) Waiting Period and Exercise Dates. At the time an Option is granted, the
Administrator shall fix the period within which the Option may become vested or be exercised and
shall determine any conditions which must be satisfied before the Option may vest or be exercised.

               (iii) Form of Consideration. The Administrator shall determine the acceptable form of
consideration for exercising an Option, including the method of payment. Such consideration,
subject to Applicable Laws, may consist entirely of:

                    (1) cash;

                    (2) check;

                    (3) other Shares which (A) in the case of Shares acquired upon exercise of an Option, have
been owned by the Optionee for more than six months on the date of surrender, and (B) have a Fair
Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to
which said Option shall be exercised;

                    (4) consideration received by the Company under a broker-assisted cashless exercise program
acceptable to the Company, in its sole discretion;

                    (5) any combination of the foregoing methods of payment; or

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                    (6) such other consideration and method of payment for the issuance of Shares to the extent
permitted by Applicable Laws.

               (iv) Exercise of Option; Rights as a Stockholder. Any Option granted hereunder shall
be exercisable according to the terms of the Plan and at such times and under such conditions as
determined by the Administrator and set forth in the Award Agreement.

               An Option shall be deemed exercised when the Company receives: (i) written or electronic
notice of exercise (in accordance with the Award Agreement) from the person entitled to exercise
the Option, and (ii) full payment for the Shares with respect to which the Option is exercised.
Full payment may consist of any consideration and method of payment authorized by the Administrator
and permitted by the Award Agreement and the Plan. Shares issued upon exercise of an Option shall
be issued in the name of the Optionee or, if requested by the Optionee, in the name of the Optionee
and his or her spouse. Until the Shares are issued (as evidenced by the appropriate entry on the
books of the Company or of a duly authorized transfer agent of the Company), no right to vote or
receive dividends or any other rights as a stockholder shall exist with respect to the Optioned
Stock, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued)
such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or
other right for which the record date is prior to the date the Shares are issued, except as
provided in Section 12 of the Plan.

               Exercising an Option in any manner shall decrease the number of Shares thereafter available,
both for purposes of the Plan and for sale under the Option, by the number of Shares as to which
the Option is exercised. An Option may not be exercised for a fraction of a Share.

               It is not intended that any Option be granted under terms or conditions which would constitute
deferred compensation which is subject to Code Section 409A.

          (c) Termination of Relationship as a Service Provider. If an Optionee ceases to be a
Service Provider, other than upon the Optionee’s death or Disability, the Optionee may exercise his
or her Option within such period of time as is specified in the Award Agreement to the extent that
the Option is vested and exercisable on the date of termination (but in no event later than the
expiration of the term of such Option as set forth in the Award Agreement). In the absence of a
specified time in the Award Agreement, the Option shall remain exercisable for three (3) months
following the Optionee’s termination. If, on the date of termination, the Optionee is not vested as
to his or her entire Option, the Shares covered by the unvested portion of the Option shall be
forfeited immediately and shall thereupon revert to the Plan. If, after termination, the Optionee
does not exercise his or her Option within the time specified by the Administrator, the Option
shall terminate and be forfeited immediately, and the Shares covered by such Option shall revert to
the Plan.

          (d) Disability of Optionee. If an Optionee ceases to be a Service Provider as a result
of the Optionee’s Disability, the Optionee may exercise his or her Option within such period of
time as is specified in the Award Agreement to the extent the Option is vested and exercisable on
the date of termination (but in no event later than the expiration of the term of such Option as
set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the

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Option shall remain exercisable for six (6) months following the Optionee’s termination. If,
on the date of termination, the Optionee is not vested as to his or her entire Option, the Shares
covered by the unvested portion of the Option shall be forfeited immediately and shall thereupon
revert to the Plan. If, after termination, the Optionee does not exercise his or her Option within
the time specified herein, the Option shall terminate and shall be forfeited immediately, and the
Shares covered by such Option shall thereupon revert to the Plan.

          (e) Death of Optionee. If an Optionee dies while a Service Provider, the Option may be
exercised within such period of time as is specified in the Award Agreement (but in no event later
than the expiration of the term of such Option as set forth in the Notice of Grant), by the
Optionee’s estate or by a person who acquires the right to exercise the Option by bequest or
inheritance, but only to the extent that the Option is vested and exercisable on the date of death.
In the absence of a specified time in the Award Agreement, the Option shall remain exercisable for
twelve (12) months following the Optionee’s termination. If, at the time of death, the Optionee is
not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option
shall immediately revert to the Plan. The Option may be exercised by the executor or administrator
of the Optionee’s estate or, if none, by the person(s) entitled to exercise the Option under the
Optionee’s will or the laws of descent or distribution. If the Option is not so exercised within
the time specified herein, the Option shall terminate, and the Shares covered by such Option shall
revert to the Plan.

     9. Restricted Stock/Restricted Stock Units.

          (a) Grant of Restricted Stock/Restricted Stock Units. Subject to the terms and
conditions of the Plan, Restricted Stock may be granted to new Employees as shall be determined by
the Administrator, in its sole discretion. The Administrator shall have complete discretion to
determine (i) the number of Shares subject to a Restricted Stock or Restricted Stock Unit award
granted to any new Employee, (ii) whether the form of the award shall be Shares or units to acquire
Shares (which latter shall be referred to herein as Restricted Stock Units), and (iii) the
conditions that must be satisfied, including any Performance Measures, upon which is conditioned
the grant or vesting of Restricted Stock or Restricted Stock Units. For Restricted Stock Units,
each such unit shall be the equivalent of one Share of Common Stock for purposes of determining the
number of Shares subject to an Award. Until the Shares are issued, no right to vote or receive
dividends or any other rights as a stockholder shall exist with respect to Restricted Stock or
Restricted Stock Units.

          (b) Terms and Conditions. The Administrator, subject to the provisions of the Plan,
shall have complete discretion to determine the terms and conditions of Restricted Stock and
Restricted Stock Units granted under the Plan. Restricted Stock and Restricted Stock Unit grants
shall be subject to the terms, conditions, and restrictions determined by the Administrator at the
time the stock or unit is awarded, which may include such performance-based milestones as are
determined appropriate by the Administrator. The Administrator may require the recipient to sign a
Restricted Stock or and Restricted Stock Unit Agreement as a condition of the award. Any
certificates representing the shares of Stock awarded shall bear such legends as shall be
determined by the Administrator.

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          (c) Restricted Stock or Restricted Stock Unit Award Agreement. Each Restricted Stock
and Restricted Stock Unit grant shall be evidenced by an Award Agreement that shall specify the
purchase price (if any) and such other terms and conditions as the Administrator, in its sole
discretion, shall determine; provided, however, that if the Restricted Stock or Restricted Stock
Unit grant has a purchase price, such purchase price must be paid no more than ten (10) years
following the date of grant.

          (d) No Delayed Compensation. Under no circumstances will any award of Restricted Stock
or Restricted Stock Units be designed to delay the federal, state, local or other taxation of the
resulting compensation beyond the date as of which the award becomes vested.

     10. Change in Control. Notwithstanding any provision in this Plan or any Award
Agreement, in the event of a Change in Control, the Board of Directors may, but shall not be
required to, make such adjustments to outstanding awards hereunder as it deems appropriate,
including, without limitation, electing that each outstanding Award shall be surrendered to the
Company by the holder thereof, and that each such Award shall immediately be cancelled by the
Company, and that the holder shall receive, within a specified period of time from the occurrence
of the Change in Control, a cash payment from the Company in an amount equal to:

               (i) in the case of an Option, the number of shares of Common Stock then subject to such
Option, multiplied by the excess, if any, of the greater of (A) the highest per share price offered
to stockholders of the Company in any transaction whereby the Change in Control takes place or (B)
the Fair Market Value of a share of Common Stock on the date of occurrence of the Change in
Control, over the purchase price per share of Common Stock subject to the Option; or

               (ii) in the case of an Award of Restricted Stock, Restricted Stock Units or Performance
Shares, the number of shares of Common Stock or the number of Performance Shares, as the case may
be, then subject to such award, multiplied by the greater of (A) the highest per share price
offered to stockholders of the Company in any transaction whereby the Change in Control takes place
or (B) the Fair Market Value of a share of Common Stock on the date of occurrence of the Change in
Control.

     The Company may, but is not required to, cooperate with any person who is subject to Section
16 of the Exchange Act to assure that any cash payment in accordance with the foregoing to such
person is made in compliance with Section 16 of the Exchange Act and the rules and regulations
thereunder.

     In the event of a Change in Control, the Board of Directors may, but shall not be required to,
substitute for each share of Common Stock available under this Plan, whether or not then subject to
an outstanding Award, the number and class of shares into which each outstanding share of Common
Stock shall be converted pursuant to such Change in Control. In the event of any such substitution,
the purchase price per share in the case of an Option shall be proportionately adjusted by the
Committee, such adjustments to be made in the case of outstanding Options without an increase in
the aggregate purchase price.

     11. Limited Transferability of Awards. Except as otherwise specified in an individual
Award Agreement, an Award may not be sold, pledged, assigned, hypothecated, transferred, or

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disposed of in any manner other than by will or by the laws of descent or distribution and may
be exercised, during the lifetime of the Participant, only by the Participant and otherwise only as
expressly provided in this Plan and the Award Agreement.

     12. Adjustment. In the event of any stock split, stock dividend, recapitalization,
reorganization, merger, consolidation, combination, exchange of shares, liquidation, spin-off or
other similar change in capitalization or event, or any distribution to holders of Common Stock
other than a regular cash dividend, the number and class of securities available under this Plan,
the number and class of securities subject to each outstanding Award and the purchase price per
security under each Option shall be proportionately adjusted by the Committee, such adjustments to
be made in the case of outstanding Options without an increase in the aggregate purchase price. The
decision of the Committee regarding any such adjustment shall be final, binding and conclusive. If
any such adjustment would result in a fractional security being (a) available under this Plan, such
fractional security shall be disregarded, or (b) subject to an award under this Plan, the Company
shall pay the holder of such award, in connection with the first the vesting, exercise or
settlement of such award in whole or in part occurring after such adjustment, an amount in cash
determined by multiplying (i) the fraction of such security (rounded to the nearest hundredth) by
(ii) the excess, if any, of (A) the Fair Market Value on the vesting, exercise or settlement date
over (B) the exercise price, if any, of such award.

     13. Award Date of Grant. The date of grant of an Award shall be, for all purposes, the
date on which the Administrator makes the determination granting such Award, or such other later
date as is determined by the Administrator as of which the Service Provider first obtains
contingent rights under an Award. Notice of the determination shall be provided to each new
Employee within a reasonable time after the date of such grant.

     14. Amendment and Termination of the Plan.

          (a) Amendment and Termination. The Committee may at any time amend, alter, suspend or
terminate the Plan.

          (b) Stockholder Approval. The Company shall obtain stockholder approval of any Plan
amendment to the extent necessary and desirable to comply with Applicable Laws.

          (c) Effect of Amendment or Termination. No amendment, alteration, suspension or
termination of the Plan shall impair the rights of any Participant, unless mutually agreed
otherwise between the Participant and the Administrator, which agreement must be in writing and
signed by the Participant and the Company. Termination of the Plan shall not affect the
Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards
granted under the Plan prior to the date of such termination.

     15. Conditions Upon Issuance of Shares.

          (a) Legal Compliance. Shares shall not be issued pursuant to the exercise or vesting
of an Award unless the exercise or vesting of such Award and the issuance and delivery of such
Shares shall comply with Applicable Laws and shall be further subject to the approval of counsel
for the Company with respect to such compliance.

- 12 -

 

          (b) Investment Representations. As a condition to the exercise of an Award, the
Company may require the person exercising such Award to represent and warrant at the time of any
such exercise that the Shares are being purchased only for investment and without any present
intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a
representation is required.

     16. Inability to Obtain Authority. The inability of the Company to obtain authority
from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to
be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of
any liability in respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.

     17. Reservation of Shares. The Company, during the term of this Plan, will at all
times reserve and keep available such number of Shares as shall be sufficient to satisfy the
requirements of the Plan.

     18. Tax Withholding. The Company shall have the right to require, prior to the
issuance or delivery of any shares of Common Stock or the payment of any cash pursuant to an Award,
payment by the holder of such award of any federal, state, local or other taxes which may be
required to be withheld or paid in connection with such Award. An Award Agreement may provide that
(i) the Company shall withhold whole shares of Common Stock which would otherwise be delivered to a
holder, having an aggregate Fair Market Value determined as of the date the obligation to withhold
or pay taxes arises in connection with an award (the “Tax Date”), or withhold an amount of
cash which would otherwise be payable to a holder, in the amount necessary to satisfy any such
obligation or (ii) the holder may satisfy any such obligation by any of the following means: (A) a
cash payment to the Company, (B) delivery to the Company of Shares (for which the holder thereof
has good title, free and clear of all liens and encumbrances and which such holder has held for at
least six months) having an aggregate Fair Market Value, determined as of the Tax Date, equal to
the amount necessary to satisfy any such obligation, (C) authorizing the Company to withhold whole
shares of Common Stock which would otherwise be delivered having an aggregate Fair Market Value,
determined as of the Tax Date, or withhold an amount of cash which would otherwise be payable to a
holder, equal to the amount necessary to satisfy any such obligation, (D) in the case of the
exercise of an option, a cash payment by a broker-dealer acceptable to the Company to whom the
Optionee has submitted an irrevocable notice of exercise or (E) any combination of (A), (B) and
(C), in each case to the extent set forth in the Award Agreement relating to the award; provided,
however, that the Company shall have sole discretion to disapprove of an election pursuant to any
of clauses (B)-(E) and that in the case of a holder who is subject to Section 16 of the Exchange
Act, the Company may require that the method of satisfying such an obligation be in compliance with
Section 16 of the Exchange Act and the rules and regulations thereunder. Any fraction of a share of
Common Stock which would be required to satisfy such an obligation shall be disregarded and the
remaining amount due shall be paid in cash by the holder

- 13 -

 

     19. Code Section 409A. It is intended that the Awards made hereunder shall not
constitute deferred compensation within the contemplation of Code Section 409A, and shall not
thereafter be modified or administered in a way which would subject any Award to the punitive
provisions of such Section. The Plan shall be construed and administered accordingly.

* * * * *

- 14 -

 

TECHNOLOGY SOLUTIONS COMPANY

2006 EMPLOYMENT INCENTIVE AWARD PLAN

RESTRICTED STOCK UNIT AWARD AGREEMENT

               Technology Solutions Company (the “Company”) hereby grants to                                          (the
“Employee”) as of                                         , 2006 (the “Grant Date”), pursuant to the provisions of the
Company’s 2006 Employment Incentive Award Plan (the “Plan”), a restricted stock unit award (the
“Award”) with respect to                     shares of the Company’s Common Stock, $0.01 par value
(“Stock”), upon and subject to the restrictions, terms and conditions set forth below. Capitalized
terms not defined herein shall have the meanings specified in the Plan.

               1. Award Subject to Acceptance of Agreement. The Award shall be null and void unless
the Employee shall accept this Agreement by executing it in the space provided below and returning
it to the Company.

               2. Rights as a Stockholder. The Employee shall not be entitled to any privileges of
ownership with respect to the shares of Stock subject to the Award unless and until, and only to
the extent, such shares become vested pursuant to Section 3 hereof and the Employee becomes a
stockholder of record with respect to such shares.

               3. Vesting of Shares Subject to Award.

               3.1 Vesting of Award. Except for the vesting of the Award upon a Change in Control as
provided in Section 3.2 of this Agreement and Section 2(e) of the Plan, the Award shall vest as
follows:

               (a) The Award shall vest on the first anniversary of the Grant Date with respect to one-third
of the number of shares of Stock subject to the Award on the Grant Date, rounded up to the nearest
whole share, provided the Employee remains in continuous employment with the Company through such
anniversary date.

               (b) The Award shall vest on the second anniversary of the Grant Date with respect to one-third
of the number of shares of Stock subject to the Award on the Grant Date, rounded down to the
nearest whole share, provided that (i) the Employee remains in continuous employment with the
Company through such anniversary date and (ii) the Company reports positive net income, within the
meaning of U.S. Generally Accepted Accounting Principles, in its audited financial statements for
the calendar year ending prior to such anniversary date.

               (c) The Award shall vest on the third anniversary of the Grant Date with respect to the
remaining shares of Stock subject to the Award on the Grant Date, provided that (i) the Employee
remains in continuous employment with the Company through such anniversary date and (ii) the
Company reports positive net income, within the meaning of U.S.

- 15 -

 

Generally Accepted Accounting Principles, in its audited financial statements for the calendar
year ending prior to such anniversary date.

               If the Employee’s employment by the Company terminates for any reason, the Employee shall
forfeit all rights with respect to the shares of Stock which are not vested as of the effective
date of the Employee’s termination of employment and such unvested portion of the Award shall be
cancelled by the Company. If the Company fails to meet the performance objective set forth in
Section 3.1(b) or 3.1(c), the shares of Stock that otherwise would have vested pursuant to such
Section shall be forfeited and such portion of the Award shall be cancelled by the Company.

               3.2 Change in Control. Notwithstanding anything herein to the contrary, to the extent
the Award remains outstanding upon a Change in Control, all conditions and restrictions relating
to the continued performance of services and the attainment of performance goals set forth in
Section 3.1 of this Agreement shall immediately lapse upon a Change in Control, and the Award shall
thereupon become fully vested.

               4. Termination of Award. In the event that the Employee shall forfeit all or a
portion of the shares of Stock subject to the Award, the Employee shall, upon the Company’s
request, promptly return this Agreement to the Company for cancellation. Such cancellation shall
be effective regardless of whether the Employee returns this Agreement.

               5. Additional Terms and Conditions of Award.

               5.1 Nontransferability of Award. The Award is not transferable by the Employee except
by will or the laws of descent and distribution (or to a designated beneficiary in the event of the
Employee’s death). The Award may not be pledged, mortgaged, hypothecated or otherwise encumbered
and shall not be subject to the claims of creditors.

               5.2 Investment Representation. The Employee hereby represents and covenants that (a)
any share of Stock acquired upon the vesting of the Award will be acquired for investment and not
with a view to the distribution thereof within the meaning of the Securities Act of 1933, as
amended (the “Securities Act”), unless such acquisition has been registered under the Securities
Act and any applicable state securities law; (b) any subsequent sale of any such shares shall be
made either pursuant to an effective registration statement under the Securities Act and any
applicable state securities laws, or pursuant to an exemption from registration under the
Securities Act and such state securities laws; and (c) if requested by the Company, the Employee
shall submit a written statement, in form satisfactory to the Company, to the effect that such
representation (x) is true and correct as of the date of acquisition of any shares hereunder or (y)
is true and correct as of the date of any sale of any such shares, as applicable. As a further
condition precedent to the delivery to the Employee of any shares subject to the Award, the
Employee shall comply with all regulations and requirements of any regulatory authority having
control of or supervision over the issuance of the shares and, in connection therewith, shall
execute any documents which the Board or any committee authorized by the Board shall in its sole
discretion deem necessary or advisable. Unless covered by an effective registration statement filed
with the U.S. Securities and Exchange Commission, all

- 16 -

 

certificates representing shares of Stock acquired upon the vesting of the Award shall bear
the following legend:

The shares represented by this certificate have been acquired for investment and
have not been registered under the Securities Act of 1933, as amended. The shares
may not be sold or transferred in the absence of such registration or exemption
therefrom under said Act.

               5.3 Withholding Taxes. As a condition precedent to the delivery to the Employee of
any shares of Stock subject to the Award, the Employee shall, upon request by the Company, pay to
the Company such amount of cash as the Company may be required, under all applicable federal,
state, local or other laws or regulations, to withhold and pay over as income or other withholding
taxes (the “Required Tax Payments”) with respect to the Award. If the Employee shall fail to
advance the Required Tax Payments after request by the Company, the Company may, in its discretion,
deduct any Required Tax Payments from any amount then or thereafter payable by the Company to the
Employee, including the shares issuable pursuant to this Award.

               5.4 Adjustment. In the event of any stock split, stock dividend, recapitalization,
reorganization, merger, consolidation, combination, exchange of shares, liquidation, spin-off or
other similar change in capitalization or event, or any distribution to holders of Common Stock
other than a regular cash dividend, the number and class of securities subject to the Award shall
be appropriately adjusted by the Committee in accordance with the Plan. The decision of the
Committee regarding any such adjustment shall be final, binding and conclusive.

               5.5 Compliance with Applicable Law. The Award is subject to the condition that if the
listing, registration or qualification of the shares subject to the Award upon any securities
exchange or under any law, or the consent or approval of any governmental body, or the taking of
any other action is necessary or desirable as a condition of, or in connection with, the vesting or
delivery of shares hereunder, the shares of Stock subject to the Award shall not vest or be
delivered, in whole or in part, unless such listing, registration, qualification, consent or
approval shall have been effected or obtained, free of any conditions not acceptable to the
Company. The Company agrees to use reasonable efforts to effect or obtain any such listing,
registration, qualification, consent or approval.

               5.6 Delivery of Certificates. Subject to Section 5.3, as soon as practicable after
the vesting of the Award, in whole or in part, the Company shall deliver or cause to be delivered
one or more certificates issued in the Employee’s name (or such other name as is acceptable to the
Company and designated in writing by the Employee) representing the number of vested shares. The
Company shall pay all original issue or transfer taxes and all fees and expenses incident to such
delivery, except as otherwise provided in Section 5.3.

               5.7 Award Confers No Rights to Continued Employment. In no event shall the granting
of the Award or its acceptance by the Employee give or be deemed to give the Employee any right to
continued employment by the Company or any affiliate of the Company.

- 17 -

 

               5.8 Decisions of Board or Committee. The Board or the Committee shall have the right
to resolve all questions which may arise in connection with the Award. Any interpretation,
determination or other action made or taken by the Board or the Committee regarding the Plan or
this Agreement shall be final, binding and conclusive.

               5.9 Company to Reserve Shares. The Company shall at all times prior to the
cancellation of the Award reserve and keep available, either in its treasury or out of it
authorized but unissued shares of Stock, the full number of unvested shares subject to the Award
from time to time.

               5.10 Agreement Subject to the Plan. This Agreement is subject to the provisions of
the Plan and shall be interpreted in accordance therewith. The Employee hereby acknowledges
receipt of a copy of the Plan.

               6. Miscellaneous Provisions.

               6.1 Meaning of Certain Terms. As used herein, the term “vest” shall mean no longer
subject to forfeiture. As used herein, employment by the Company shall include employment by any
Parent or Subsidiary of the Company.

               6.2 Successors. This Agreement shall be binding upon and inure to the benefit of any
successor or successors of the Company and any person or persons who shall acquire any rights under
this Agreement or the Plan.

               6.3 Notices. All notices, requests or other communications provided for in this
Agreement shall be made in writing either (i) by actual delivery to the party entitled thereto, or
(ii) by mailing in the U.S. mails to the last known address of the party entitled thereto, via
certified or registered mail, return receipt requested. The notice shall be deemed to be received
in case (i) on the date of its actual receipt by the party entitled thereto, and in case (ii) on
the date of its mailing.

               6.4 Governing Law. This Agreement, the Award and all determinations made and actions
taken pursuant hereto and thereto, to the extent not otherwise governed by the Code or the laws of
the United States, shall be governed by the laws of the State of Delaware and construed in
accordance therewith without giving effect to the principles of conflicts of laws.

- 18 -

 

               6.5 Counterparts. This Agreement may be executed in two counterparts each of which
shall be deemed an original and both of which together shall constitute one and the same
instrument.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	TECHNOLOGY SOLUTIONS COMPANY
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 .
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	Accepted this               day of                  , 2006.
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

Employee

	 	 	 	 	 	 	 	 	 	 

- 19 -

 

\

TECHNOLOGY SOLUTIONS COMPANY

2006 EMPLOYMENT INCENTIVE AWARD PLAN

INDUCEMENT STOCK OPTION AGREEMENT

     Technology Solutions Company, a Delaware corporation (the “Company”), hereby grants to
the employee whose name appears below (the “Employee”), an option to purchase from the Company (the
“Option”) such number of shares of its Common Stock, $0.01 par value (“Stock”), as set forth below,
at the price per share set forth below, and subject to the other terms and conditions set forth
herein and in Annex I hereto (“Annex I”). The Option is granted subject to the terms and
conditions of the Company’s 2006 Employment Inducement Award Plan (the “Plan”). Capitalized terms
used but not otherwise defined in this Agreement shall have the meanings given them in Annex I or
the Plan, as applicable. The Option shall become null and void unless the Employee shall accept
this Agreement by executing it in the space provided and returning it to the Company.

	 	 	 	 	 	 	 
	 

	 	Employee Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Number of Shares Subject to Option:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Exercise Price Per Share:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Exercise Provisions:	 	 	 	 
	 

	 	 	 	 

	 	 

               (a) The Option shall become exercisable (i) on the first anniversary of the Option Date with
respect to one-third of the number of shares subject to the Option on the Option Date, (ii) on the
last day of each calendar month for 24 months thereafter, beginning the month following the first
anniversary of the Option Date, with respect to an additional 1/36 of the number of shares subject
to the Option on the Option Date, and (iii) as otherwise provided pursuant to paragraphs (b)
through (g) of this Agreement or Section 10 of the Plan.

               (b) If, prior to the first anniversary of the Option Date, the Employee’s employment by the
Company terminates for any reason whatsoever (including, without limitation, involuntary
termination by the Company) other than death or Disability, the Option shall terminate in its
entirety upon the effective date of Employee’s termination of employment.

               (c) If, on or after the first anniversary of the Option Date, the Employee’s employment by
the Company terminates for any reason whatsoever (including, without limitation, involuntary
termination by the Company) other than death, Disability, or Retirement, the Option shall remain
exercisable with respect to the number of shares subject to the Option that are exercisable upon
the effective date of the Employee’s termination of employment and may thereafter be exercised for
a period of 90 days from the effective date of the Employee’s

- 20 -

 

termination of employment or until the Expiration Date, whichever period is shorter, after
which the Option shall terminate in its entirety.

               (d) If the Employee’s employment by the Company terminates by reason of the Employee’s death,
the Option shall become exercisable as of the date of death with respect to any or all of the
shares subject to the Option on the Option Date and may thereafter be exercised for a period of one
year from the date of death or until the Expiration Date, whichever period is shorter, after which
the Option shall terminate in its entirety.

               (e) If the Employee’s employment by the Company terminates by reason of the Employee’s
Disability, the Option shall become exercisable with respect to any or all of the shares subject to
the Option on the Option Date and may thereafter be exercised for a period of 90 days from the
effective date of the Employee’s termination of employment or until the Expiration Date, whichever
period is shorter, after which the Option shall terminate in its entirety. For purposes of this
Agreement, “Disability” shall mean the inability of an individual to fully perform the duties
pertaining to his or her employment for a continuous period in excess of 360 days, as determined by
the Board in its sole discretion.

               (f) If the Employee’s employment by the Company terminates by reason of the Employee’s
retirement after the Employee has completed five years of service as an Employee of the Company and
is at least 55 years of age (“Retirement”), the Option shall remain exercisable with respect to the
number of shares subject to the Option that are exercisable upon the effective date of Employee’s
Retirement, and may thereafter be exercised for a period of two years from the effective date of
the Employee’s Retirement or until the Expiration Date, whichever period is shorter, after which
the Option shall terminate in its entirety.

               (g) If the Employee dies following the termination of the Employee’s employment by the
Company, the Option shall be exercisable only to the extent that it is exercisable on the date of
the Employee’s death and may thereafter be exercised only for that period of time for which the
Option is exercisable immediately prior to the Employee’s death.

               General:

               A copy of the Plan is available upon request by contacting the Company’s Legal Department in
the Chicago office. Employee acknowledges that the grant of the Option is an inducement material
to the Employee’s entering into employment with the Company. This Agreement may be executed in two
counterparts each of which shall constitute one and the same instrument.

- 21 -

 

               IN WITNESS WHEREOF, this Agreement has been executed this                      day of                       
                  ,
20      (the “Option Date”).

	 	 	 	 	 	 	 	 	 
	Accepted and agreed this

               day of                                , 20     
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	EMPLOYEE	 	 	 	TECHNOLOGY SOLUTIONS COMPANY
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Name:	 	 	 	Name:

Title:	 	 

- 22 -

 

Annex I

to

Inducement Stock Option Agreement

               1. Meaning of Certain Terms. As used herein, the following terms shall have the
meanings set forth below. “Board” shall mean the Board of Directors of the Company. “Securities
Act” shall mean the Securities Act of 1933, as amended, together with the rules and regulations
thereunder. References to this “Agreement,” the “Option” and “herein” shall be deemed to include
the Inducement Stock Option Agreement and this Annex I to Inducement Stock Option Agreement taken
as a whole. This Annex I and the Inducement Stock Option Agreement shall be deemed to be one and
the same instrument. References herein to sections of the Code shall be deemed to refer to any
successor section of the Code or any successor internal revenue law.

               2. Time and Manner of Exercise of Option.

               2.1. Term and Termination of Option. The maximum term of the Option shall be the date
which is 10 years after the Option Date (the “Expiration Date”). The Option shall terminate, to
the extent not exercised or earlier terminated pursuant to the terms of this Agreement, on its
Expiration Date. In no event may the Option be exercised, in whole or in part, after it
terminates.

               2.2. Exercisability of Option. The Option shall become exercisable on the date or
dates as set forth in this Agreement.

               2.3. Procedure for Exercise; Payment of Purchase Price. Subject to the limitations
set forth in this Agreement, the Option may be exercised by delivery of written notice to the
Company specifying the number of shares to be purchased, accompanied by payment in full of the
purchase price for such number of shares. The purchase price shall be payable either (A) in cash,
(B) by delivery of Mature Shares having an aggregate Fair Market Value, determined as of the date
of exercise, equal to the aggregate purchase price payable by reason of such exercise, (C) in cash
by a broker-dealer acceptable to the Company to whom the Employee has submitted an irrevocable
notice of exercise or (D) a combination of (A) and (B). The Company shall have sole discretion to
disapprove of an election pursuant to any of clauses (B)-(D) and if the Employee is subject to
Section 16 of the Exchange Act, the Company may require that the method of making such payment be
in compliance with Section 16 and the rules and regulations thereunder. Any fraction of a share of
Stock which would be required to pay such purchase price shall be disregarded and the remaining
amount due shall be paid in cash by the Employee. No certificate representing Stock shall be
delivered until the full purchase price therefor has been paid (or arrangement made for such
payment to the Company’s satisfaction).

 

 

               3. Additional Terms and Conditions of Option.

               3.1. Nontransferability of Option. Neither the Option nor any right under this
Agreement may be transferred by the Employee other than (i) by will or the laws of descent and
distribution or (ii) to a Permitted Transferee, as hereinafter defined. During the Employee’s
lifetime the Option is exercisable only by the Employee or a Permitted Transferee. Upon the
Employee’s death, the Option may be exercised by the Employee’s successor in interest in accordance
with the terms and conditions of this Agreement. Any other transfer or any attempted assignment,
pledge or hypothecation, whether or not by operation of law, shall be void. The Option shall not
be subject to execution, attachment or other process, and no person shall be entitled to exercise
any rights of the Employee hereunder or possess any rights hereunder by virtue of any attempted
execution, attachment or other process. For purposes of this Agreement, a “Permitted Transferee”
shall mean (i) the Employee’s spouse, (ii) any of the Employee’s lineal descendants, (iii) a trust
or similar arrangement of which such spouse, a lineal descendant of the Employee, or one or more of
such persons are the only current beneficiaries, or (iv) a charitable organization described in
Section 170(c) of the Code, provided that such transferee has entered into a written agreement with
the Company authorizing the Company to withhold shares of Stock which would otherwise be delivered
to such person upon an exercise of the Option to pay any federal, state, local or other taxes which
may be required to be withheld or paid in connection with such exercise in the event that the
Employee does not provide for an arrangement satisfactory to the Company to assure that such taxes
will be paid.

               3.2. Investment Representation. The Employee hereby represents and covenants that (a)
any share of Stock purchased upon exercise of the Option will be purchased for investment and not
with a view to the distribution thereof within the meaning of the Securities Act unless such
purchase has been registered under the Securities Act or applicable state securities law; (b) any
subsequent resale of any such shares shall be made either pursuant to an effective registration
statement under the Securities Act and any applicable state securities laws, or pursuant to an
exemption from registration under the Securities Act and such state securities laws; and (c) if
requested by the Company, the Employee shall submit a written statement, in form satisfactory to
counsel for the Company, to the effect that either representation (a) above is true and correct as
of the date of purchase of any shares hereunder, or representation (b) above is true and correct as
of the date of any resale of any such shares, as applicable. As a further condition precedent to
any exercise of the Option, the Employee shall comply with all regulations and requirements of
regulatory authority having control of or supervision over the issuance of the shares and, in
connection therewith, shall execute any documents which the Company shall in its sole discretion
deem necessary or advisable. Unless covered by an effective registration statement filed with the
U.S. Securities and Exchange Commission, all certificates representing shares of Stock acquired
pursuant to the exercise of the Option shall bear the following legend:

The shares represented by this certificate have been acquired for investment and
have not been registered under the Securities Act of 1933,

24

 

as amended. The shares may not be sold or transferred in the absence of such
registration or exemption therefrom under said Act.

               3.3. Withholding Taxes. As a condition precedent to any exercise of the Option, the
Employee shall, upon request by the Company, pay to the Company in addition to the purchase price
of the Stock, such amount of cash as the Company may be required, under all applicable federal,
state, local or other laws or regulations, to withhold and pay over as income or other withholding
taxes (the “Required Tax Payments”) with respect to such exercise of the Option. If the Employee
shall fail to advance such Required Tax Payments after request by the Company, the Company may, in
its discretion, deduct any such Required Tax Payments from the amount to be paid hereunder, whether
in Stock or in cash, or from any other amount then or thereafter payable by the Company to the
Employee.

               3.4. Adjustments in the Event of Capitalization Changes. In the event of any stock
split, stock dividend, recapitalization, reorganization, merger, consolidation, combination,
exchange of shares, liquidation, spin-off or other similar change in capitalization or event, or
any distribution to holders of Stock other than a regular cash dividend, the number and class of
securities subject to the Option and the purchase price per security, shall be appropriately
adjusted by the Committee in accordance with the Plan. The decision of the Committee regarding any
such adjustment shall be final, binding and conclusive.

               3.5. Compliance with Applicable Law. The Option is subject to the requirement that
if at any time the Company determines that the listing, registration or qualification of the shares
of Stock subject to the Option upon any securities exchange or under any law, or the consent or
approval of any governmental body, or the taking of any other action is necessary or desirable as a
condition of, or in connection with, the delivery of shares hereunder, such shares shall not be
delivered unless such listing, registration, qualification, consent, approval or other action shall
have been effected or obtained, free of any conditions not acceptable to the Company. The Company
may require that certificates evidencing shares of Stock delivered pursuant to the Option bear a
legend indicating that the sale, transfer or other disposition thereof by the holder is prohibited
except in compliance with the Securities Act.

               3.6. Indemnification. The Employee hereby covenants and agrees to indemnify and hold
harmless the Company, its officers, directors, employees and agents from and against any loss,
claim, damage and expense (including, without limitation, reasonable attorneys’ fees) arising out
of or based upon any breach or failure by the Employee to comply with any representation, warranty,
covenant or agreement made by the Employee herein or in any other document furnished by the
Employee in connection with this transaction.

               3.7. Delivery of Certificates. Upon the exercise of the Option in whole or in part,
the Company shall deliver one or more certificates representing the number of shares purchased
against full payment therefor. The Company shall pay all original issue

25

 

or transfer taxes and all fees and expenses incident to such delivery, except as otherwise
provided in paragraph 3.3.

               3.8. Option Confers No Rights as Stockholder. The Employee shall have no rights as a
stockholder of the Company with respect to any shares of Stock or other equity security of the
Company which is subject to the Option hereunder unless and until the Employee becomes a
stockholder of record with respect to such shares of Stock or equity security.

               3.9. Option Confers No Rights to Continued Employment. In no event shall the
granting of the Option or its acceptance by the Employee confer upon the Employee any right to
continued employment by the Company or any of its subsidiaries or affiliates or affect in any
manner the right of the Company or any of its subsidiaries or affiliates to terminate the
employment of the Employee at any time without liability hereunder.

               3.10. Decisions of Committee. The Committee shall have the right to resolve all
questions which may arise in connection with the Option or its exercise. Any interpretation,
determination or other action made or taken by the Committee regarding this Agreement including any
of the terms or conditions of the Plan that are incorporated herein by reference, shall be final,
binding and conclusive.

               3.11. Company to Reserve Shares. The Company shall at all times prior to the
expiration or termination of the Option reserve and keep available, either in its treasury or out
of its authorized but unissued shares of Stock, the full number of shares subject to the Option
from time to time.

               4. Miscellaneous Provisions.

               4.1. Designation as Nonqualified Stock Option. The Option is hereby designated as
not constituting an “incentive stock option” within the meaning of section 422A of the Code; this
Agreement shall be interpreted and treated consistently with such designation.

               4.2. Successors. This Agreement shall be binding upon and inure to the benefit of
any successor or successors of the Company and any person or persons who shall acquire any rights
under this Agreement or the Plan.

               4.3. Notices. All notices, requests or other communications provided for in this
Agreement shall be made in writing either (1) by actual delivery to the party entitled thereto, or
(2) by mailing in the U.S. mails to the last known address of the party entitled thereto, via
certified or registered mail, return receipt requested. The notice shall be deemed to be received
in case (1) on the date of its actual receipt by the party entitled thereto, and in case (2) on the
date of its mailing.

26

 

               4.4. Governing Law. This Agreement, the Option and all determinations made and
actions taken pursuant hereto and thereto, to the extent not otherwise governed by the Code or the
laws of the United States, shall be governed by the laws of the State of Delaware and construed in
accordance therewith without giving effect to the principles of conflicts of laws.

27exv4w3

 

Exhibit 4.3

ESCROW AGREEMENT

     This Escrow Agreement (the “Agreement”) dated as of November 13, 2006 is by and between
Bootheel Agri-Energy, LLC, a Missouri limited liability company (the “Company”), and U.S. Bank (the
“Escrow Agent”) (the “Escrow Agent” and the “Company” may also be hereinafter referred to as the
“Parties”).

RECITALS

          WHEREAS, the Company proposes to offer a minimum of 30,000,000 and a maximum of 55,000,000 of
its Membership Units (the “Units”) at a price of $2.00 per Unit, with a required minimum investment
of 10,000 Units and in additional increments of 5,000 Units, in an offering made pursuant to a
federal registration under the provisions of the Securities Act of 1933, as amended (the
“Offering”);

          WHEREAS, the Company has filed a registration statement (as may be amended) (the “Registration
Statement”) to register the Units with the Securities and Exchange Commission;

          WHEREAS, the Company desires to comply with the requirements of the Securities Act of 1933 and
of the various state regulatory statutes and regulations, and desires to protect the investors in
the Offering by providing, under the terms and conditions herein set forth, for the return to
subscribers of the money which they may pay on account of purchases of Units in the Offering if
certain specified conditions are not met; and

          NOW, THEREFORE, in consideration of the premises the Parties agree as follows:

          1. Acceptance Of Appointment. Escrow Agent hereby agrees to act as escrow agent under
this Agreement. The Escrow Agent shall have no duty to enforce any provision hereof requiring
performance by any other party hereunder.

          2. Establishment Of Escrow Account. An escrow account (the “Escrow Account”) is
hereby established with the Escrow Agent for the benefit of the investors in the Offering. Except
as specifically provided in this Agreement, the Escrow Account shall be created and maintained
subject to the customary rules and regulations of the Escrow Agent pertaining to such accounts.

          3. Ownership Of Escrow Account. Until such time as the funds deposited in the Escrow
Account (the “Deposited Funds”) are disbursed in accordance with the terms hereof, all funds
deposited in the Escrow Account by the Company shall not become the property of the Company or be
subject to the debts of the Company or any other person but shall be held by the Escrow Agent
solely for the benefit of the investors who have purchased Units in the Offering.

 

 

          4. Escrow Fees. The Company hereby agrees to pay to the Escrow Agent upon the
execution of this Agreement an advance payment for ordinary services rendered hereunder in the
amount of $1,000 (the “Escrow Fee”). Thereafter, Company shall pay to Escrow Agent an annual
maintenance fee payable on the last day of each year during the term of this Agreement in the
amount of $1,000.

          5. Deposit Of Proceeds. All proceeds from sales of Units in the Offering shall be
delivered by the Company to the Escrow Agent, within forty-eight hours of the receipt thereof from
investors, endorsed (if appropriate) to the order of the Escrow Agent, together with an appropriate
written statement setting forth the name, address and social security number/taxpayer
identification number of each person or entity purchasing Units, the number of Units purchased, and
the amount paid by each such purchaser. Any such proceeds deposited with the Escrow Agent in the
form of uncollected checks shall be promptly presented by the Escrow Agent for collection through
customary banking and clearing house facilities. All such deposited proceeds are referred to herein
as the “Escrow Funds.”

          6. Investment Of Escrow Funds. The Escrow Funds shall be credited by Escrow Agent and
recorded in the Escrow Account. The Escrow Agent shall be permitted, and is hereby authorized to
invest all funds received under this Agreement from time to time in a repurchase agreement fully
collateralized by federal government securities. Any interest received by Escrow Agent with respect
to the Escrow Funds shall be paid pursuant to the terms of this Agreement.

          7. Termination Of Escrow. This Agreement and the Escrow created hereunder shall be
terminated as provided in paragraph 8 hereof or as of the date in calendar year 2007 (the
“Termination Date”) one year and one day following the date in calendar year 2006 upon which the
Securities and Exchange Commission authorizes the Offering (the “Offering’s Effective Date”). The
Company shall notify Escrow Agent of the Offering’s Effective Date within thirty (30) days of the
receipt of notice of the Offering’s Effective Date from the Securities and Exchange Commission.

          8. Disposition Of Escrow Funds. The Escrow Agent shall have the following duties and
obligations under this Agreement:

     A. The Escrow Agent shall send a written notice acknowledging the receipt of
the Deposited Funds every seven days to the Company.

     B. The Escrow Agent shall give the Company prompt written notice when the
Deposited Funds equal $60,000,000 (exclusive of interest). Thereafter, Escrow Agent
shall give the Company written notice acknowledging the receipt of the Deposited
Funds every seven days. The Escrow Agent shall give the Company prompt written
notice when the Deposited Funds total $110,000,000 (exclusive of interest).

     C. At the time (and in the event) that: (a) the Deposited Funds shall, during
the term of this Agreement, equal at least $60,000,000 in

2

 

subscription proceeds (exclusive of interest) (the “Minimum Escrow Deposit”)
and (b) the Escrow Agent shall have received written confirmation from the Company
that the Company has obtained written debt financing commitments which combined
with the Deposited Funds, would equal $187,880,000 for debt financing, then this
Agreement shall terminate, and the Escrow Agent shall promptly disburse the funds
on deposit, including interest, to the Company to be used in accordance with the
provisions set out in the Registration Statement. The Company will deliver a copy
of the Registration Statement to the Escrow Agent upon execution of this Agreement.
The Escrow Agent will have no responsibility to examine the Registration Statement
with regard to the Escrow Account or otherwise, nor shall Escrow Agent have any
duty to ensure that Company complies with the Registration Statement. Upon the
making of such disbursement, the Escrow Agent shall be completely discharged and
released of any and all further responsibilities hereunder.

     D. In the event that (a) the Deposited Funds do not equal or exceed the
Minimum Escrow Deposit on or before the Termination Date, (b) the Company has not
received written debt financing commitments as described herein on or before the
Termination Date, or (c) the Company has terminated or abandoned the Offering, then
the Escrow Agent shall return to each of the purchasers of the Units in the
Offering, as promptly as possible after such Termination Date and on the basis of
its records pertaining to the Escrow Account: (x) the sum which each purchaser
initially paid in on account of purchases of the Units in the Offering and (y) each
purchaser’s portion of the total interest earned on the Escrow Account as of the
Termination Date, (z) reduced by the transaction fees provided in paragraph 11
hereof. Computation of any purchaser’s share of the net interest earned will be a
weighted average based on the proportion of such purchaser’s deposit in the Escrow
Account from the Offering to all such purchasers’ deposits held by the Escrow Agent
and upon the length of time in days such deposit was held in the Escrow Account as
compared to all such deposits. All computations with respect to each purchaser’s
allocable share of net interest shall be made by the Escrow Agent, which
determinations shall be final and conclusive. Any amount paid or payable to a
purchaser pursuant to this paragraph shall be deemed to be the property of such
purchaser, free and clear of any and all claims of the Company or its agents or
creditors; and the respective purchases of the Units made and entered into in the
Offering shall thereupon be deemed, ipso facto, to be cancelled. At such time as
the Escrow Agent shall have made all the payments called for in this paragraph, the
Escrow Agent shall be completely discharged and released of any and all further
responsibilities hereunder, except that Escrow Agent shall be required to prepare
and issue a single IRS Form 1099 to each investor in the event that funds are
returned to investors.

3

 

          9. Liability Of Escrow Agent. It is understood and agreed that the duties of the
Escrow Agent are purely ministerial in nature. It is further agreed that:

     A. The Escrow Agent shall not be required to enforce any of the terms or
conditions of any other agreement between the Company and any prospective purchaser
or purchaser, nor shall the Escrow Agent be responsible for the performance by the
Company of its respective obligations under this Agreement.

     B. The Escrow Agent may, at its own discretion, refuse to accept any deposits
lacking required documentation or containing discrepancies.

     C. The Escrow Agent shall be under no duty to collect any check or other
payment instrument delivered to it hereunder that is dishonored, but the Escrow
Agent shall within a reasonable time return to the Company any such check or other
payment instrument together with any information which accompanied such check,
draft or other payment instrument.

     D. The Escrow Agent shall have the right to act in reliance upon any document,
instrument or signature believed by it to be genuine and to assume that any person
purporting to give any notice or instructions in accordance with this Agreement or
in connection with any transaction to which this Agreement relates has been duly
authorized to do so. The Escrow Agent shall not be obligated to make any inquiry as
to the authority, capacity, existence or identity of any person purporting to give
any such notice or instructions.

     E. The Escrow Agent shall not be liable for any action taken or omitted
hereunder except in the case of its gross negligence or willful misconduct. The
Escrow Agent shall be entitled to consult with counsel of its own choosing and
shall not be liable for any action taken, suffered or omitted by it in accordance
with the advice of such counsel.

     F. The Escrow Agent shall have no responsibility at any time to ascertain
whether or not any security interest exists in the Escrow Account or any part
thereof or to file any financing statement under the Uniform Commercial Code with
respect to the Escrow Account or any part thereof.

          10. Warranties To Escrow Agent. The Company warrants to and agrees with the Escrow
Agent that, unless otherwise expressly set forth in this Agreement, the Company has not granted to
any party any lien, claim or security interest in the Escrow Account or any part thereof and has no
direct knowledge of any financing statement under the Uniform Commercial Code on file in any
jurisdiction claiming a security interest in or describing (whether specially or generally) the
Escrow Account or any part thereof.

          11. Fees And Expenses. In the event the Deposited Funds do not equal or exceed the
Minimum Escrow Deposit before the Termination Date or the Company does

4

 

not receive written debt financing commitments as described herein before the Termination
Date, the Escrow Agent shall be entitled to a fee of $25 per purchaser, which fees shall be paid by
the Company. In the event the Escrow Agent renders any service not provided for in this Agreement,
or if the Company requests a substantial modification of its terms, or if any controversy arises,
or if the Escrow Agent is made a party to, or intervenes in, any litigation pertaining to this
escrow or its subject matter, the Escrow Agent shall be reasonably compensated for such
extraordinary services and reimbursed for all costs, attorney’s fees, including allocated costs of
in-house counsel, and expenses occasioned by such default, delay, controversy or litigation and the
Escrow Agent shall have the right to retain all documents and/or other things of value at any time
held by the Escrow Agent in this escrow until such compensation, fees, costs and expenses are paid.
The Company promises to pay these sums upon demand. Unless otherwise provided, the Company will pay
all of the Escrow Agent’s usual charges and the Escrow Agent may deduct such sums from the interest
on the Escrow Account only and not from principal deposited to the Escrow Account.

          12. Controversies. If any controversy arises between the Parties to this Agreement,
or with any other Party, concerning the subject matter of this Agreement, its terms or conditions,
the Escrow Agent will not be required to determine the controversy or to take any action regarding
it. The Escrow Agent may hold all documents and funds and may wait for settlement of any such
controversy by final appropriate legal proceedings or other means as, in the Escrow Agent’s
discretion, the Escrow Agent may require, despite what may be set forth elsewhere in this
Agreement. In such event, the Escrow Agent will not be liable for interest or damage. Furthermore,
the Escrow Agent may at its option file an action of interpleader requiring the Parties to answer
and litigate any claims and rights among themselves. The Escrow Agent is authorized to deposit
with the clerk of the court all documents and funds held in escrow, except all costs, expenses,
charges and reasonable attorney fees incurred by the Escrow Agent due to the interpleader action
and which the Company agrees to pay. Upon initiating such action, the Escrow Agent shall be fully
released and discharged of and from all obligations and liability imposed by the terms of this
Agreement.

          13. Indemnification Of Escrow Agent. The Company and its successors and assigns agree
jointly and severally to indemnify and hold the Escrow Agent harmless against any and all losses,
claims, damages, liabilities, and expenses, including reasonable costs of investigation, counsel
fees, including allocated costs of in-house counsel and disbursements that may be imposed on the
Escrow Agent or incurred by the Escrow Agent in connection with the performance of its duties under
this Agreement, including but not limited to any litigation arising from this Agreement or
involving its subject matter. The Escrow Agent shall have a first lien on the property and papers
held under this Agreement for such compensation and expenses.

          14. Resignation Of Escrow Agent. The Escrow Agent may resign at any time upon giving
at least (30) days written notice to the Company provided, however, that no such resignation shall
become effective until the appointment of a successor escrow agent which shall be accomplished as
follows: The Company shall use its best efforts to obtain a successor escrow agent within thirty
(30) days after receiving such

5

 

notice. If the Company fails to agree upon a successor escrow agent within such time, the
Escrow Agent shall have the right to appoint a successor escrow agent authorized to do business in
the state of Missouri. The successor escrow agent shall execute and deliver an instrument accepting
such appointment and it shall without further acts, be vested with all the estates, properties,
rights, powers, and duties of the predecessor escrow agent as if originally named as escrow agent.
The Escrow Agent shall thereupon be discharged from any further duties and liability under this
Agreement.

          15. Automatic Succession. Any company into which the Escrow Agent may be merged or
with which it may be consolidated, or any company to whom the Escrow Agent may transfer a
substantial amount of its global escrow business, shall be the Successor to the Agent without the
execution or filing of any paper or any further act on the part of any of the Parties, anything
herein to the contrary notwithstanding.

          16. Miscellaneous:

     A. Governing Laws. This Agreement is to be construed and interpreted according
to Missouri law.

     B. Counterpart. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. The exchange of copies of this Agreement
and of signature pages by facsimile transmission shall constitute effective
execution and delivery of this Agreement as to the parties and may be used in lieu
of the original Agreement for all purposes. Signatures of the parties transmitted
by facsimile shall be deemed to be their original signatures for all purposes.

     C. Notices. All instructions, notices and demands herein provided for shall
be in writing and shall be deemed to have been duly given (a) on the date of
service if served personally on the party to whom notice is to be given; (b) on the
day of transmission if sent by facsimile transmission to the facsimile number given
below and telephonic confirmation of receipt is promptly obtained after completion
of transmission; (c) on the next day on which such deliveries are made in Sikeston,
Missouri, when delivery is to Federal Express or similar overnight courier or the
Express Mail service maintained by the United States Postal Service; or (d) on the
fifth day after mailing if mailed to the party to whom notice is to be given, by
first class mail, registered or certified, postage prepaid and properly addressed,
return receipt requested, to the party as follows:

6

 

If to the Company:

Bootheel Agri-Energy, LLC

Attn: David Herbst

1214 Linn Street

Sikeston, MO 63801

Telephone: 573.471.9952

Facsimile:

With a required copy to:

Bryan Cave LLP

Attn: Gregory G. Johnson

1200 Main Street, Suite 3500

Kansas City, MO 64105

Telephone: 816.374.3200

If to the Escrow Agent:

U. S. Bank

Attn: Teresa Bye

104 East Center Street

Sikeston, MO 63801

Telephone: 573-471-1200

Fax: 573-471-3412

     D. Amendments. This Agreement may be amended or modified and any of the
terms, covenants, representations, warranties or conditions hereof may be waived,
only by a written instrument executed by the parties hereto, or in the case of a
waiver, by the party waiving compliance. Any waiver by any party of any condition
or of the breach of any provision, term, covenant, representation or warranty
contained in the Agreement, in any one or more instances, shall not be deemed to be
nor construed as further or continuing waiver of any such conditions or of the
breach of any other provision, term, covenant, representation or warranty of this
Agreement.

     E. Entire Agreement. This Agreement contains the entire understanding among
the parties hereto with respect to the escrow contemplated hereby and supersedes
and replaces all prior and contemporaneous agreements and understandings, oral or
written, with regard to such escrow.

     F. Non-Endorsement. The Company represents and agrees that it has not made
nor will it in the future make any representation that states or implies that the
Escrow Agent has endorsed, recommended or guaranteed the purchase, value, or repayment of the Securities offered for sale by the
Company.

[remainder of page intentionally blank]

7

 

          IN WITNESS WHEREOF, the parties hereto have hereunto affixed their signatures as of the day and year first above written.

	 	 	 	 	 
	 	The Company

Bootheel Agri-Energy, LLC

 	 
	 	By:  	/s/ David Herbst
 	 
	 	 	David Herbst 	 
	 	 	Chairman 	 
	 
	 	Escrow Agent

U.S. Bank

 	 
	 	By:  	/s/  Stephen L. Matthews
 	 
	 	Name:  Stephen L. Matthews 	 

	 	Title:  Market President 	 
	 

8

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