Document:

Exhibit 10.1 to Scanner Technologies Corporation Form 8-K dated June 9, 2005

EXHIBIT 10.1

SCANNER TECHNOLOGIES CORPORATION

2004 EQUITY INCENTIVE PLAN 

(As Amended by Board on April 26, 2005; Approved by Shareholders on June 9, 2005)  

SECTION 1.

DEFINITIONS  

             As
used herein, the following terms shall have the meanings indicated below: 

	  	(a)  	  	“Affiliates” shall mean a Parent or
Subsidiary of the Company. 

	  	(b)  	  	“Committee” shall mean a Committee of
two or more directors who shall be appointed by and serve at the pleasure of the Board. If the Company’s securities
are registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended, then, to the extent necessary
for compliance with Rule 16b-3, or any successor provision, each of the members of the Committee shall be a
“non-employee director.” Solely for purposes of this Section 1(a), “non-employee director” shall
have the same meaning as set forth in Rule 16b-3, or any successor provision, as then in effect, of the General Rules
and Regulations under the Securities Exchange Act of 1934, as amended. 

	  	(c)  	  	The “Company” shall mean Scanner
Technologies Corporation, a New Mexico corporation. 

	  	(d)  	  	“Fair Market Value” as of any date
shall mean (i) if such stock is listed on the Nasdaq National Market, Nasdaq SmallCap Market, or an established stock
exchange, the price of such stock at the close of the regular trading session of such market or exchange on such date,
as reported by The Wall Street Journal or a comparable reporting service, or, if no sale of such stock shall have
occurred on such date, on the next preceding day on which there was a sale of stock; (ii) if such stock is not so listed
on the Nasdaq National Market, Nasdaq SmallCap Market, or an established stock exchange, the closing price quoted by the
OTC Bulletin Board, the National Quotation Bureau, or any comparable reporting service on such date; or (iii) if such
stock is not publicly traded as of such date, the per share value as determined by the Board, or the Committee, in its
sole discretion by applying principles of valuation with respect to the Company’s Common Stock. 

	  	(e)  	  	The “Internal Revenue Code” is the
Internal Revenue Code of 1986, as amended from time to time. 

	  	(f)  	  	The “Participant” means (i) an employee
of the Company or any Subsidiary to whom an incentive stock option has been granted pursuant to Section 9, (ii) a
consultant or advisor to or director, employee or officer of the Company or any Subsidiary to whom a nonqualified stock
option has been granted pursuant to Section 10, or (iii) a consultant or advisor to, or director, employee or officer of
the Company or any Subsidiary to whom a restricted stock award has been granted pursuant to Section 11. 

	  	(g)  	  	“Parent” shall mean any corporation
that owns, directly or indirectly in an unbroken chain, fifty percent (50%) or more of the total voting power of the
Company’s outstanding stock. 

	  	(h)  	  	The “Plan” means the Scanner
Technologies Corporation 2004 Equity Incentive Plan, as amended from time to time, including the form of Option and
Award Agreements as they may be modified by the Board from time to time. 

	  	(i)  	  	“Stock” shall mean Common Stock of the
Company (subject to adjustment as described in Section 13) reserved for incentive and nonqualified stock options and
restricted stock awards pursuant to this Plan. 

	  	(j)  	  	A “Subsidiary” shall mean any
corporation of which fifty percent (50%) or more of the total voting power of outstanding stock is owned, directly or
indirectly in an unbroken chain, by the Company. 

SECTION 2.

PURPOSE  

             The
purpose of the Plan is to promote the success of the Company and its Subsidiaries by facilitating the employment and
retention of competent personnel and by furnishing incentive to officers, directors, employees, consultants, and
advisors upon whose efforts the success of the Company and its Subsidiaries will depend to a large degree. 

             It
is the intention of the Company to carry out the Plan through the granting of stock options that will qualify as
“incentive stock options” under the provisions of Section 422 of the Internal Revenue Code, or any successor
provision, pursuant to Section 9 of this Plan, through the granting of “nonqualified” stock options pursuant
to Section 10 of this Plan, and through the granting of restricted stock awards pursuant to Section 11 of this Plan. The
grant of all stock options and restricted stock awards shall, to the extent required, comply with Section 16(b) of the
Securities Exchange Act of 1934, the Internal Revenue Code, or any other applicable law or regulation. In no event shall
any stock options become exercisable or the risks of forfeiture on any restricted stock awards lapse prior to the date
this Plan is approved by the shareholders of the Company. If shareholder approval of this Plan is not obtained within
twelve (12) months after the adoption of the Plan by the Board of Directors, any stock options or restricted stock
awards previously granted shall be revoked. 

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SECTION 3.

EFFECTIVE DATE OF PLAN  

             The
Plan shall be effective upon its adoption by the Board of Directors of the Company, subject to approval by the
shareholders of the Company as required in Section 2. 

SECTION 4.

ADMINISTRATION  

             The
Plan shall be administered by the Board of Directors of the Company (hereinafter referred to as the “Board”)
or by a Committee that may be appointed by the Board from time to time to administer the Plan (collectively referred to
as the “Administrator”). The Administrator shall have all of the powers vested in it under the provisions of
the Plan, including but not limited to exclusive authority (where applicable and within the limitations described
herein) to determine, in its sole discretion, whether an incentive stock option, nonqualified stock option or restricted
stock award shall be granted, the individuals to whom, and the time or times at which, options and awards shall be
granted, the number of shares subject to each option or award, the option price, and terms and conditions of each option
or award. The Administrator shall have full power and authority to administer and interpret the Plan, to make and amend
rules, regulations and guidelines for administering the Plan, to prescribe the form and conditions of the respective
stock option and restricted stock award agreements (which may vary from Participant to Participant) evidencing each
option or award and to make all other determinations necessary or advisable for the administration of the Plan. The
Administrator’s interpretation of the Plan, and all actions taken and determinations made by the Administrator
pursuant to the power vested in it hereunder, shall be conclusive and binding on all parties concerned. 

             No
member of the Board or the Committee shall be liable for any action taken or determination made in good faith in
connection with the administration of the Plan. In the event the Board appoints a Committee as provided hereunder, any
action of the Committee with respect to the administration of the Plan shall be taken pursuant to a majority vote of the
Committee members or pursuant to the written resolution of all Committee members. 

SECTION 5.

PARTICIPANTS  

             The
Administrator shall from time to time, at its discretion and without approval of the shareholders, designate those
employees to whom incentive stock options shall be granted pursuant to Section 9 of the Plan; those employees, officers,
directors, consultants and advisors of the Company or of any Subsidiary to whom nonqualified stock options shall be
granted pursuant to Section 10 of the Plan; and those employees, officers, directors, consultants and advisors of the
Company or any Subsidiary to whom restricted stock awards shall be granted pursuant to Section 11 of the Plan; provided,
however, that consultants or advisors shall not be eligible to receive stock options or restricted stock awards
hereunder unless such consultant or advisor renders bona fide services to the Company or Subsidiary and such services
are not in connection with the offer or sale 

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of securities in a capital raising transaction and do not directly
or indirectly promote or maintain a market for the Company’s securities. The Administrator may grant additional
incentive stock options, nonqualified stock options and restricted stock awards under this Plan to some or all
Participants then holding options or awards or may grant options and awards solely or partially to new Participants. In
designating Participants, the Administrator shall also determine the number of shares to be optioned or awarded to each
such Participant. The Board may from time to time designate individuals as being ineligible to participate in the Plan.

SECTION 6.

STOCK 

             The
Stock to be optioned or awarded under this Plan shall consist of authorized but unissued shares of Stock. Two Million
Three Hundred Thousand (2,300,000) shares of Stock shall be reserved and available for stock options and restricted
stock awards under the Plan; provided, however, that the total number of shares of Stock reserved for options and
restricted stock awards under this Plan shall be subject to adjustment as provided in Section 13 of the Plan. In the
event (i) any portion of an outstanding stock option or restricted stock award under the Plan for any reason expires,
(ii) any portion of an outstanding stock option is terminated prior to the exercise of such option, or (iii) any portion
of a restricted stock award is terminated prior to the lapsing of any risks of forfeiture on such stock, the shares of
Stock allocable to such portion of the option or award shall continue to be reserved for stock options and restricted
stock awards under the Plan and may be optioned or awarded hereunder. 

SECTION 7.

DURATION OF PLAN  

             Incentive
stock options may be granted pursuant to the Plan from time to time during a period of ten (10) years from the effective
date of the Plan as defined in Section 3. Nonqualified stock options and restricted stock awards may be granted pursuant
to the Plan from time to time after the effective date of the Plan and until the Plan is discontinued or terminated by
the Board. Any incentive stock option granted during such ten-year period and any nonqualified stock option or
restricted stock award granted prior to the termination of the Plan by the Board shall remain in full force and effect
until the expiration of the option or award as specified in the written stock option or restricted stock award agreement
and shall remain subject to the terms and conditions of this Plan. 

SECTION 8.

PAYMENT  

             Participants
may pay for shares upon exercise of stock options granted pursuant to this Plan with cash, personal check, certified
check or, if approved by the Administrator in its sole discretion, previously-owned shares of the Company’s Common
Stock valued at such Stock’s then Fair Market Value, or such other form of payment as may be authorized by the
Administrator. The

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Administrator may, in its sole discretion, limit the forms of
payment available to the Participant and may exercise such discretion any time prior to the termination of the option
granted to the Participant or upon any exercise of the option by the Participant. “Previously-owned shares”
means shares of the Company’s Common Stock which the Participant has owned for at least six (6) months prior to the
exercise of the stock option, or for such other period of time as may be required by generally accepted accounting
principles. 

             With
respect to payment in the form of Common Stock of the Company, the Administrator may require advance approval or adopt
such rules as it deems necessary to assure compliance with Rule 16b-3, or any successor provision, as then in effect, of
the General Rules and Regulations under the Securities Exchange Act of 1934, if applicable. 

SECTION 9.

 TERMS AND CONDITIONS OF INCENTIVE STOCK OPTIONS 

             Each
incentive stock option granted pursuant to this Section 9 shall be evidenced by a written stock option agreement (the
“Option Agreement”). The Option Agreement shall be in such form as may be approved from time to time by the
Administrator and may vary from Participant to Participant; provided, however, that each Participant and each Option
Agreement shall comply with and be subject to the following terms and conditions: 

	  	(a)  	  	Number of Shares and Option
Price.   The Option Agreement shall state the total number of shares covered by the incentive stock
option. To the extent required to qualify the Option as an incentive stock option under Section 422 of the Internal
Revenue Code, or any successor provision, or under the laws of any other applicable law or regulation, the option price
per share shall not be less than one hundred percent (100%) of the Fair Market Value of the Common Stock per share on
the date the Administrator grants the option; provided, however, that if a Participant owns stock possessing more than
ten percent (10%) of the total combined voting power of all classes of stock of the Company or of its Parent or any
Subsidiary, the option price per share of an incentive stock option granted to such Participant shall not be less than
one hundred ten percent (110%) of the Fair Market Value of the Common Stock per share on the date of the grant of the
option. The Administrator shall have full authority and discretion in establishing the option price and shall be fully
protected in so doing.

	  	(b)  	  	Term and Exercisability of Incentive Stock
Option.   The Administrator shall establish in each case the term during which any incentive stock
option granted under the Plan may be exercised. To the extent required to qualify the Option as an incentive stock
option under Section 422 of the Internal Revenue Code, or any successor provision, or by the laws of any other
applicable law or regulation, in no event shall any incentive stock option be exercisable during a term of more than ten
(10) years from the date on which it is granted; provided, however, that if a Participant owns stock possessing more
than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of its Parent or any

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	  		  	Subsidiary, the incentive stock option granted to such
Participant shall be exercisable during a term of not more than five (5) years from the date on which it is granted. The
Option Agreement shall state when the incentive stock option becomes exercisable and shall also state the maximum term
during which the option may be exercised. In the event an incentive stock option is exercisable immediately, the manner
of exercise of the option in the event it is not exercised in full immediately shall be specified in the Option
Agreement. The Administrator may accelerate the exercise date of any incentive stock option granted hereunder which is
not immediately exercisable as of the date of grant. 

	  	(c)  	  	Withholding.   The Company or its
Subsidiary shall be entitled to withhold and deduct from future wages of the Participant all legally required amounts
necessary to satisfy any and all withholding and employment-related taxes attributable to the Participant’s
exercise of an incentive stock option or a “disqualifying disposition” of shares acquired through the exercise
of an incentive stock option as defined in Code Section 421(b). In the event the Participant is required under the
Option Agreement to pay the Company, or make arrangements satisfactory to the Company respecting payment of, such
withholding and employment-related taxes, the Board may, in its discretion and pursuant to such rules as it may adopt,
permit the Participant to satisfy such obligation, in whole or in part, by electing to have the Company withhold shares
of Common Stock otherwise issuable to the Participant as a result of the option’s exercise having a Fair Market
Value equal to the minimum required tax withholding, based on the minimum statutory withholding rates for federal and
state tax purposes, including payroll taxes, that are applicable to the supplemental income resulting from the option.
In no event may the Company or any Affiliate withhold shares having a Fair Market Value in excess of such statutory
minimum required tax withholding. The Participant’s election to have shares withheld for this purpose shall be made
on or before the date the option is exercised or, if later, the date that the amount of tax to be withheld is determined
under applicable tax law. Such election shall be approved by the Board and otherwise comply with such rules as the Board
may adopt to assure compliance with Rule 16b-3, or any successor provision, as then in effect, of the General Rules and
Regulations under the Securities Exchange Act of 1934, if applicable. 

	  	(d)  	  	Other Provisions.   The Option
Agreement authorized under this Section 9 shall contain such other provisions as the Administrator shall deem advisable.
Any such Option Agreement shall contain such limitations and restrictions upon the exercise of the option as shall be
necessary to ensure that such option will be considered an “incentive stock option” as defined in Section 422
of the Internal Revenue Code or to conform to any change therein. 

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SECTION 10.

TERMS AND CONDITIONS OF NONQUALIFIED STOCK OPTIONS  

             Each
nonqualified stock option granted pursuant to this Section 10 shall be evidenced by a written Option Agreement. The
Option Agreement shall be in such form as may be approved from time to time by the Administrator and may vary from
Participant to Participant; provided, however, that each Participant and each Option Agreement shall comply with and be
subject to the following terms and conditions: 

	  	(a)  	  	Number of Shares and Option
Price.   The Option Agreement shall state the total number of shares covered by the nonqualified
stock option. Unless otherwise determined by the Administrator, the option price per share shall be one hundred percent
(100%) of the Fair Market Value of the Common Stock per share on the date the Administrator grants the option; provided,
however, that the option price may not be less than eighty-five percent (85%) of the Fair Market Value of the Common
Stock per share on the date of grant.

	  	(b)  	  	Term and Exercisability of Nonqualified Stock
Option.   The Administrator shall establish in each case the term during which any nonqualified stock
option granted under the Plan may be exercised. The Option Agreement shall state when the nonqualified stock option
becomes exercisable and shall also state the maximum term during which the option may be exercised. In the event a
nonqualified stock option is exercisable immediately, the manner of exercise of the option in the event it is not
exercised in full immediately shall be specified in the Option Agreement. The Administrator may accelerate the exercise
date of any nonqualified stock option granted hereunder which is not immediately exercisable as of the date of grant.

	  	(c)  	  	Withholding.   The Company or its
Subsidiary shall be entitled to withhold and deduct from future wages of the Participant all legally required amounts
necessary to satisfy any and all withholding and employment-related taxes attributable to the Participant’s
exercise of a nonqualified stock option. In the event the Participant is required under the Option Agreement to pay the
Company or Subsidiary, or make arrangements satisfactory to the Company or Subsidiary respecting payment of, such
withholding and employment-related taxes, the Administrator may, in its discretion and pursuant to such rules as it may
adopt, permit the Participant to satisfy such obligation, in whole or in part, by delivering shares of the
Company’s Common Stock or by electing to have the Company or Subsidiary withhold shares of Common Stock otherwise
issuable to the Participant having a Fair Market Value equal to the minimum required tax withholding, based on the
minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to
the supplemental income resulting from the exercise of the nonqualified stock option. In no event may the Company or
Subsidiary withhold shares having a Fair Market Value in excess of such statutory minimum required tax withholding. The
Participant’s election to have shares withheld for this purpose shall be made on or before the date the option is
exercised or, if later, the date that the amount of tax to be withheld is determined under applicable tax 

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	  	   	  	law. Such election shall be approved by the
Administrator and otherwise comply with such rules as the Administrator may adopt to assure compliance with Rule 16b-3,
or any successor provision, as then in effect, of the General Rules and Regulations under the Securities Exchange Act of
1934, if applicable. 

	  	(d)  	  	Other Provisions.   The Option
Agreement authorized under this Section 10 shall contain such other provisions as the Administrator shall deem
advisable. 

SECTION 11.

RESTRICTED STOCK AWARDS 

             Each
restricted stock award granted pursuant to the Plan shall be evidenced by a written restricted stock agreement (the
“Restricted Stock Agreement”). The Restricted Stock Agreement shall be in such form as may be approved from
time to time by the Administrator and may vary from Participant to Participant; provided, however, that each Participant
and each Restricted Stock Agreement shall comply with and be subject to the following terms and conditions: 

	  	(a)  	  	Number of Shares.   The Restricted
Stock Agreement shall state the total number of shares of Stock covered by the restricted stock award. 

	  	(b)  	  	Risks of Forfeiture.   The
Restricted Stock Agreement shall set forth the risks of forfeiture, if any, which shall apply to the shares of Stock
covered by the restricted stock award, and shall specify the manner in which such risks of forfeiture shall lapse. The
Administrator may, in its sole discretion, modify the manner in which such risks of forfeiture shall lapse but only with
respect to those shares of Stock that are restricted as of the effective date of the modification. 

	  	(c)  	  	Issuance of Restricted
Shares.   The Company shall cause to be issued a stock certificate representing such shares of Stock
in the Participant’s name, and shall deliver such certificate to the Participant; provided, however, that the
Company shall place a legend on such certificate describing the risks of forfeiture and other transfer restrictions set
forth in the Participant’s Restricted Stock Agreement and providing for the cancellation and return of such
certificate if the shares of Stock subject to the restricted stock award are forfeited. 

	  	(d)  	  	Rights as Shareholder.   Until the
risks of forfeiture have lapsed or the shares subject to such restricted stock award have been forfeited, the
Participant shall be entitled to vote the shares of Stock represented by such stock certificates and shall receive all
dividends attributable to such shares, but the Participant shall not have any other rights as a shareholder with respect
to such shares. 

	  	(e)  	  	Withholding Taxes.   The Company
or its Subsidiary shall be entitled to withhold and deduct from future wages of the Participant all legally required
amounts necessary to satisfy any and all withholding and employment-related taxes attributable to the Participant’s
restricted stock award. In the event the Participant is required under the Restricted Stock Agreement to pay the Company
or Subsidiary,

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	  	 	  	or make arrangements satisfactory to the Company or
Subsidiary respecting payment of, such withholding and employment-related taxes, the Administrator may, in its
discretion and pursuant to such rules as it may adopt, permit the Participant to satisfy such obligations, in whole or
in part, by delivering shares of Common Stock, including shares of Stock received pursuant to a restricted stock award
on which the risks of forfeiture have lapsed. Such shares shall have a Fair Market Value equal to the minimum required
tax withholding, based on the minimum statutory withholding rates for federal and state tax purposes, including payroll
taxes, that are applicable to the supplemental income resulting from the lapsing of the risks of forfeiture on such
restricted stock. In no event may the Participant deliver shares having a Fair Market Value in excess of such statutory
minimum required tax withholding. The Participant’s election to deliver shares of Common Stock for this purpose
shall be made on or before the date that the amount of tax to be withheld is determined under applicable tax law. Such
election shall be approved by the Administrator and otherwise comply with such rules as the Administrator may adopt to
assure compliance with Rule 16b-3, or any successor provision, as then in effect, of the General Rules and Regulations
under the Securities Exchange Act of 1934, if applicable. 

	  	(f)  	  	Nontransferability.   No
restricted stock award shall be transferable, in whole or in part, by the Participant, other than by will or by the laws
of descent and distribution, prior to the date the risks of forfeiture described in the restricted stock agreement have
lapsed. If the Participant shall attempt any transfer of any restricted stock award granted under the Plan prior to such
date, such transfer shall be void and the restricted stock award shall terminate. 

	  	(g)  	  	Other Provisions.   The Restricted Stock Agreement
authorized under this Section 11 shall contain such other provisions as the Administrator shall deem advisable.

SECTION 12.

TRANSFER OF OPTIONS 

             No
incentive stock option shall be transferable, in whole or in part, by the Participant other than by will or by the laws
of descent and distribution. During the Participant’s lifetime, only the Participant may exercise the incentive
stock option. If the Participant shall attempt any transfer of any incentive stock option granted under the Plan during
the Participant’s lifetime, such transfer shall be void and the incentive stock option, to the extent not fully
exercised, shall terminate. 

             No
nonqualified stock option shall be transferred, except that the Administrator may, in its sole discretion, permit the
Participant to transfer any or all nonqualified stock options to any member of the Participant’s “immediate
family” as such term is defined in Rule 16a-1(e) promulgated under the Securities Exchange Act of 1934, or any
successor provision, or to one or more trusts whose beneficiaries are members of such Participant’s “immediate
family” or partnerships in which such family members are the only partners; provided, however, that the Participant
cannot receive any consideration for the transfer and such transferred nonqualified stock option shall continue to be
subject to the same terms and conditions as were applicable to such nonqualified stock option immediately prior to its
transfer.

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SECTION 13.

RECAPITALIZATION, SALE, MERGER, EXCHANGE OR LIQUIDATION  

             If,
following adoption of this Plan, the Company effects an increase or decrease in the number of shares of Common Stock in
the form of a subdivision or consolidation of shares, or the payment of a stock dividend, or effects any other increase
or decrease in the number of shares of Common Stock without receipt of consideration by the Company, the number of
shares of Option Stock reserved under Section 6 hereof and the number of shares of Option Stock covered by each
outstanding option and restricted stock award, and the price per share thereof, shall be appropriately adjusted by the
Board to reflect such change. Additional shares that may be credited pursuant to such adjustment shall be subject to the
same restrictions as are applicable to the shares with respect to which the adjustment relates. 

             Unless
otherwise provided in the Option or Award Agreement, in the event of an acquisition of the Company through the sale of
substantially all of the Company’s assets and the consequent discontinuance of its business or through a merger,
consolidation, exchange, reorganization, reclassification, extraordinary dividend, divestiture or liquidation of the
Company (collectively referred to as a “transaction”), the Board may provide for one or more of the following:

	  	(a)  	  	the equitable acceleration of the exercisability of any
outstanding options and the lapsing of the risks of forfeiture on any restricted stock awards; 

	  	(b)  	  	the complete termination of this Plan, the cancellation
of outstanding options not exercised prior to a date specified by the Board (which date shall give Participants a
reasonable period of time in which to exercise the options prior to the effectiveness of such transaction), and the
cancellation of any restricted stock awards for which the risks of forfeiture have not lapsed; 

	  	(c)  	  	that Participants holding outstanding stock options
shall receive, with respect to each share of Stock subject to such options, as of the effective date of any such
transaction, cash in an amount equal to the excess of the Fair Market Value of such Stock on the date immediately
preceding the effective date of such transaction over the option price per share of such options; provided that the
Board may, in lieu of such cash payment, distribute to such Participants shares of stock of the Company or shares of
stock of any corporation succeeding the Company by reason of such transaction, such shares having a value equal to the
cash payment herein; 

	  	(d)  	  	that Participants holding outstanding restricted stock
awards shall receive, with respect to each share of Stock subject to such awards, as of the effective date of any such
transaction, cash in an amount equal to the Fair Market Value of such Stock on the date immediately preceding the
effective date of such transaction; provided that the Board may, in lieu of such cash payment, distribute to such
Participants shares of 

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	  	  	  	stock of the Company or shares of stock of any
corporation succeeding the Company by reason of such transaction, such shares having a value equal to the cash payment
herein; 

	  	(e)  	  	the continuance of the Plan with respect to the exercise
of options which were outstanding as of the date of adoption by the Board of such plan for such transaction and provide
to Participants holding such options the right to exercise their respective options as to an equivalent number of shares
of stock of the corporation succeeding the Company by reason of such transaction; and 

	  	(f)  	  	the continuance of the Plan with respect to restricted
stock awards for which the risks of forfeiture have not lapsed as of the date of adoption by the Board of such plan for
such transaction and provide to Participants holding such awards the right to receive an equivalent number of shares of
stock of the corporation succeeding the Company by reason of such transaction. 

The Board may restrict the rights of or the applicability of this
Section 13 to the extent necessary to comply with Section 16(b) of the Securities Exchange Act of 1934, the Internal
Revenue Code or any other applicable law or regulation. The grant of an option or restricted stock award pursuant to the
Plan shall not limit in any way the right or power of the Company to make adjustments, reclassifications,
reorganizations or changes of its capital or business structure or to merge, exchange or consolidate or to dissolve,
liquidate, sell or transfer all or any part of its business or assets. 

SECTION 14.

INVESTMENT PURPOSE 

             No
shares of Common Stock shall be issued pursuant to the Plan unless and until there has been compliance, in the opinion
of Company’s counsel, with all applicable legal requirements, including without limitation, those relating to
securities laws and stock exchange listing requirements. As a condition to the issuance of Stock to Participant, the
Administrator may require Participant to (i) represent that the shares of Stock are being acquired for investment and
not resale and to make such other representations as the Administrator shall deem necessary or appropriate to qualify
the issuance of the shares as exempt from the Securities Act of 1933 and any other applicable securities laws, and (ii)
represent that Participant shall not dispose of the shares of Stock in violation of the Securities Act of 1933 or any
other applicable securities laws or any company policies then in effect. 

             As
a further condition to the grant of any stock option or the issuance of Stock to Participant, Participant agrees to the
following: 

	  	(a)  	  	In the event the Company advises Participant that it
plans an underwritten public offering of its Common Stock in compliance with the Securities Act of 1933, as amended, and
the underwriter(s) seek to impose restrictions under which certain shareholders may not sell or contract to sell or
grant any option to buy or otherwise dispose of part or all of their stock purchase rights of the underlying Common
Stock, 

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	  	   	  	Participant will not, for a period not to exceed 180
days from the prospectus, sell or contract to sell or grant an option to buy or otherwise dispose of any stock option
granted to Participant pursuant to the Plan or any of the underlying shares of Common Stock without the prior written
consent of the underwriter(s) or its representative(s). 

	  	(b)  	  	In the event the Company makes any public offering of
its securities and determines in its sole discretion that it is necessary to reduce the number of issued but unexercised
stock purchase rights so as to comply with any state’s securities or Blue Sky law limitations with respect thereto,
the Board of Directors of the Company shall have the right (i) to accelerate the exercisability of any stock option and
the date on which such option must be exercised, provided that the Company gives Participant prior written notice of
such acceleration, and (ii) to cancel any options or portions thereof, in reverse chronological order based on the date
or dates on which such options or portions thereof would have become exercisable according to the original vesting
schedule set forth in the related stock option agreements, which Participant does not exercise prior to or
contemporaneously with such public offering. 

	  	(c)  	  	In the event of a transaction (as defined in Section 13
of the Plan), Participant will comply with Rule 145 of the Securities Act of 1933 and any other restrictions imposed
under other applicable legal or accounting principles if Participant is an “affiliate” (as defined in such
applicable legal and accounting principles) at the time of the transaction, and Participant will execute any documents
necessary to ensure compliance with such rules. 

The Company reserves the right to place a legend on any stock
certificate issued upon the exercise of an option or upon the grant of a restricted stock award pursuant to the Plan to
assure compliance with this Section 14. 

SECTION 15.

RIGHTS AS A SHAREHOLDER 

             A
Participant (or the Participant’s successor or successors) shall have no rights as a shareholder with respect to
any shares covered by an incentive stock option or nonqualified stock option until the date of the issuance of a stock
certificate evidencing such shares. No adjustment shall be made for dividends (ordinary or extraordinary, whether in
cash, securities or other property), distributions or other rights for which the record date is prior to the date such
stock certificate is actually issued (except as otherwise provided in Section 13 of the Plan). 

SECTION 16.

AMENDMENT OF THE PLAN 

             The
Board may from time to time, insofar as permitted by law, suspend or discontinue the Plan or revise or amend it in any
respect; provided, however, that no such revision or amendment, 

12

except as is authorized in Section 13, shall impair the terms and
conditions of any stock option or restricted stock award which is outstanding on the date of such revision or amendment
to the material detriment of the Participant without the consent of the Participant. Notwithstanding the foregoing, no
such revision or amendment shall (i) increase the number of shares subject to the Plan except as provided in Section 13
hereof, (ii) change the designation of the class of employees eligible to receive stock options or restricted stock
awards, (iii) decrease the price at which options may be granted, or (iv) increase the benefits accruing to
Participants under the Plan, without the approval of the shareholders of the Company if such approval is required for
compliance with the requirements of any applicable law or regulation. Furthermore, the Plan may not, without the
approval of the shareholders, be amended in any manner that will cause incentive stock options to fail to meet the
requirements of Section 422 of the Internal Revenue Code. 

SECTION 17.

NO OBLIGATION TO EXERCISE OPTION 

             The
granting of a stock option shall impose no obligation upon the Participant to exercise such option. Further, the
granting of a stock option or restricted stock award hereunder shall not impose upon the Company or any Subsidiary any
obligation to retain the Participant in its employ for any period. 

13EXHIBIT 10.1

                           WARRANT ISSUANCE AGREEMENT

     This WARRANT ISSUANCE AGREEMENT is among WHITE RIVER CAPITAL,  INC. ("WHITE
RIVER"),  CASTLE CREEK  CAPITAL,  LLC  ("CASTLE  CREEK"),  CASTLE CREEK  CAPITAL
PARTNERS FUND IIa, LP ("FUND IIa"),  CASTLE CREEK CAPITAL  PARTNERS FUND IIb, LP
("FUND IIb" and,  together  with Fund IIa, the  "Funds"),  and UNION  ACCEPTANCE
CORPORATION ("UAC").

                                    RECITALS:

     Whereas,  the  parties  have worked  extensively  toward  development  of a
proposed series of transactions  under which White River and UAC will enter into
a plan of share  exchange as a result of which UAC will become a  subsidiary  of
White River; (ii) White River will conduct a subscription  offering to raise new
equity  capital  primarily  from UAC's current  shareholders;  (iii) White River
would effect a private  placement of secured  notes for $15 million;  (iv) White
River would purchase Coastal Credit, LLC; and (v) White River would purchase all
or  substantially  all  outstanding   claims  under  UAC's  bankruptcy  Plan  of
Reorganization (collectively, the "Transactions").

     Whereas,  Castle Creek,  on behalf of the Funds,  has been  instrumental in
advancing this proposal  through  extensive  effort in developing,  structuring,
negotiating and documenting various aspects of the proposed Transactions and, in
particular, by advancing and agreeing to advance (through Fund IIa and Fund IIb)
expenses related to the Transactions on behalf of UAC and White River;

     Whereas, the undertaking of the Funds to bear such expenses is essential to
such Transactions  inasmuch as White River and UAC have  insufficient  resources
from which to pay such expenses and, in particular, the parties have agreed with
the Plan  Committee  under UAC's Plan of  Reorganization  that UAC will not bear
such expenses.

     Whereas,  to date,  Castle Creek  (through the Funds) has borne or incurred
approximately  $700,000 in  Transaction  expenses and expects  such  expenses to
amount to  approximately  $1.3 million in the aggregate,  excluding  $250,000 in
incremental  fees that could become payable in connection  with the UAC creditor
buyout, if the Transactions do not timely progress.

     Whereas,  if the Transactions are not successfully  consummated,  the Funds
may never recover such costs; and

     Whereas,  to induce the Funds to bear, and continue to bear,  such expenses
and risks and to  compensate  Castle  Creek for the  management  time and effort
associated with its work in developing the Transactions,  White River has agreed
to issue to the Funds a warrant to purchase  White River shares of Common Stock,
on the terms and subject to the conditions described herein.

     Therefore, the parties agree as follows:
<PAGE>

     1. Castle Creek Undertakings. The Funds shall, and Castle Creek shall cause
the Funds to,  continue  to advance on behalf of White  River and UAC and to pay
currently,  subject to the  reimbursement  obligation of White River as provided
herein, expenses and fees reasonably related and incurred in connection with the
proposed Transactions ("Transaction Expenses"), including, without limitation:

     (a)  Legal and accounting fees and expenses;

     (b)  Fees and expenses of Piper Jaffray for fairness evaluation services;

     (c)  Fees and  expenses of KPMG LLP for tax  advisory  services and related
          opinion;

     (d)  SEC registration fees,  printing expenses,  mailing expenses,  and the
          fees  and  expenses  of  the  exchange  agent,   subscription   agent,
          information agent and similar services;

     (e)  Costs  associated  with the exercise  and  perfection  of  dissenters'
          rights by UAC  shareholders  exercising such rights in connection with
          the Plan of Share  Exchange,  but only to the extent  that UAC becomes
          obligated  to pay such  amounts and White River  becomes  obligated to
          indemnify UAC in respect  thereof in accordance with the Plan of Share
          Exchange;

     (f)  The amount  required to be paid to  shareholders  of UAC in connection
          with the Plan of Share Exchange upon  consummation  of the exchange in
          lieu of the issuance of fractional shares in the exchange; and

     (g)  The Abandonment  Fee, as defined in, and any similar  incremental fees
          and costs  associated  with  untimely  consummation  of, or failure to
          timely meet progress  milestones  established  under, the terms of the
          Memorandum  of  Understanding,  dated  February  15,  2005,  among the
          parties hereto and the Plan Committee.

     2. White River Obligations.  In consideration of the foregoing commitments,
services and undertakings,  White River agrees promptly upon consummation of the
proposed transactions:

     (a)  to  reimburse  the  Funds for out of  pocket  expenses  borne by them,
          respectively,  in connection with the transactions (without interest),
          based on submission of supporting documentation in reasonable detail;

     (b)  Subject to shareholder  approval as provided below, to issue a warrant
          ("Warrant")  for White  River  Common  Stock to Castle  Creek  private
          equity funds designated by Castle Creek, in substantially  the form of
          Exhibit A, hereto and on the following basic terms and conditions:

          1.   Shares subject warrant: 132,500 shares of Common Stock

          2.   Term: 3 years and 90 days.

          3.   Issue date: Closing of the transactions

          4.   Exercisable: Beginning 3 years after issue date.

          5.   Exercise price: $10.00/share

          6.   Exercise  price  may be paid  in  cash or in kind by  withholding
               shares otherwise issuable upon exercise,  based on the fair value
               of such shares at the time of exercise.

The number of shares subject to, and the exercise price of, the Warrant shall be
adjusted  ratably in the event of changes in the proposed  exchange ratio in the
share exchange or the offering price

<PAGE>

in the subscription offering, such that the Warrant shall represent the right to
acquire,  at a price equal to the final subscription price, the number of shares
that could be purchased in the subscription offering for $1,325,000. The Warrant
and the  underlying  shares will be  restricted  securities  under SEC Rule 144.
White River will also  undertake,  upon request of Castle  Creek,  to the extent
legally  permitted,  to file a  registration  statement  on Form S-3 (or similar
successor  form) covering  resale of shares issuable under the Warrant by Castle
Creek funds,  at White River's  expense,  and to use its  reasonable  efforts to
cause such  registration  statement to be declared  effective before the date on
which the Warrants  first become  exercisable.  Castle Creek and the Funds shall
cooperate in all  reasonable  and  customary  respects in  connection  with such
registration.

     3.  Shareholder  Approval.  White  River's  obligation to issue the Warrant
shall be subject to the condition precedent that the shareholders of UAC, at the
special meeting called to approve the Plan of Share Exchange and the acquisition
of Coastal Credit,  shall have approved the issuance of the Warrant as described
herein.

     4. No Recourse To UAC. UAC shall have no  obligation  to  reimburse  Castle
Creek or the Funds for Transaction Expenses.

<PAGE>

EXECUTED, this 9th day of March, 2005.

CASTLE CREEK CAPITAL LLC

By: /s/ William J. Ruh
   ----------------------
   William J. Ruh

Its: Executive Vice President

CASTLE CREEK CAPITAL PARTNERS FUND IIa, LP
CASTLE CREEK CAPITAL PARTNERS FUND IIb, LP

By: CASTLE CREEK CAPITAL LLC
Its: General Partner

By: /s/ William J. Ruh
   ----------------------
   William J. Ruh

Its: Executive Vice President

WHITE RIVER CAPITAL, INC.

By: /s/ Mark R. Ruh
   ----------------------
   Mark R. Ruh

Its: President and CFO

UNION ACCEPTANCE CORPORATION

By: /s/ Mark R. Ruh
   ----------------------
   Mark R. Ruh

Its: President and CFO

<PAGE>

                                                                       Exhibit A

No. of Shares:  ________                                       Warrant No. W-___

                          Dated: _______________, 2005

                               WARRANT TO PURCHASE

                             SHARES OF COMMON STOCK

                                       OF

                            WHITE RIVER CAPITAL, INC.

     THIS IS TO CERTIFY that,  for value  received and subject to the provisions
hereinafter set forth,

                         [Castle Creek Capital Fund __]

                                   or assigns

is entitled upon the due exercise  hereof at any time during the Exercise Period
(as hereinafter defined) to purchase from White River Capital,  Inc., an Indiana
corporation  (the  "Company"),  up to  __________  shares  of  Common  Stock (as
hereinafter defined and subject to adjustment as provided herein) of the Company
at the  Exercise  Price (as  hereinafter  defined and subject to  adjustment  as
provided herein) for each share of Common Stock so purchased and to exercise the
other rights, powers and privileges  hereinafter provided,  all on the terms and
conditions and pursuant to the provisions hereinafter set forth.

                                           WHITE RIVER CAPITAL, INC.

                                           By:
                                              ----------------------------------
                                               President

                    Additional provisions follow on the next
                      6 pages and are incorporated in this
                      Warrant as if set forth on this page.

THIS  WARRANT  AND THE  UNDERLYING  SHARES  HAVE NOT BEEN  REGISTERED  UNDER THE
SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS. THIS WARRANT AND UNDERLYING
SHARES ARE  RESTRICTED  SECURITIES  AND MAY NOT BE TRANSFERRED IN THE ABSENCE OF
SUCH   REGISTRATION   OR  AN  APPLICABLE   EXEMPTION   FROM  SUCH   REGISTRATION
REQUIREMENTS.

<PAGE>

SECTION 1. DEFINITIONS.

     In addition to the terms defined  elsewhere in this Warrant,  the following
terms have the following respective meanings:

     "Business Day" shall mean any day except Saturday, Sunday and any day which
shall be a Federal legal holiday or a day on which banking  institutions  in the
State of Indiana are authorized or required by law or other  government  actions
to close.

     "Common Stock" shall mean the Company's Common Stock, without par value.

     "Commission"  shall mean the  Securities  and Exchange  Commission,  or any
other federal agency at the time administering the Securities Act.

     "Company" shall mean White River Capital, Inc., an Indiana corporation, and
any  successor  to all or  substantially  all of the assets and business of such
corporation.

     "Exercise  Period"  shall  mean the period  commencing  on the date that is
three  years  and one day  from  the  date  hereof  (or  __________,  2008)  and
terminating on the Expiration Date.

     "Exercise  Price" shall mean $10.00 per share,  adjustable  as set forth in
ss. 3.

     "Expiration Date" shall mean __________________, 2008.

     "Holder"  shall mean the  registered  holder of this  Warrant,  and, if the
context so indicates, the holder of Warrant Shares.

     "Person"  shall  mean  an  individual,  partnership,   corporation,  trust,
unincorporated  organization or any other entity,  and a government or agency or
political subdivision thereof.

     "Underlying  Shares"  shall mean the shares of Common  Stock of the Company
issuable upon exercise of this Warrant.

     "Warrant" or "this  Warrant" as used herein shall mean this Warrant and any
Warrant hereafter issued in exchange or substitution for this Warrant.

     "Warrant  Issuance  Agreement"  shall mean the Warrant  Issuance  Agreement
dated March 9, 2005,  among the  Company,  Castle Creek  Capital,  LLC and Union
Acceptance Corporation.

     "Warrant  Shares"  shall  mean the  shares of Common  Stock of the  Company
issued upon the exercise of this Warrant.

                                       2
<PAGE>

SECTION 2. EXERCISE OF WARRANT.

     2.1. Exercise Generally.  The rights represented by this Warrant are issued
pursuant  to and for the reasons  set forth in the  Warrant  Issuance  Agreement
dated March 9, 2005,  among the  Company,  Castle Creek  Capital,  LLC and Union
Acceptance Corporation.

     Subject to the  conditions  hereinafter  set  forth,  this  Warrant  may be
exercised  in whole or in part  (but not as to any  fractional  share of  Common
Stock), during the Exercise Period, but in no event subsequent to the end of the
Exercise  Period,  by the surrender of this Warrant (with the exercise notice at
the end hereof duly  completed  and  executed)  at the  principal  office of the
Company in Indianapolis,  Indiana,  and upon payment to the Company,  or for the
account of the Company, of the Exercise Price. Payment of the Exercise Price may
be made (i) by cash in immediately available funds or by certified check or bank
draft or (ii) in kind,  by electing in writing that the Company  shall  withhold
the number  Underlying  Shares otherwise  issuable upon exercise of the Warrant,
the fair  value of which  Underlying  Shares  at the time of such  exercise  and
election is equal to the Exercise Price. This Warrant and all rights and options
hereunder shall expire at the Expiration Date, and shall be wholly null and void
to the extent this Warrant is not exercised before that time. The Company agrees
that the Warrant  Shares shall be and shall be deemed to be issued to the Holder
hereof as the record owner of such Warrant Shares as of the close of business on
the date on which this Warrant shall have been  surrendered and payment made for
such shares as aforesaid. Certificates for the Warrant Shares shall be delivered
to the Holder hereof within a reasonable  time,  not exceeding 30 Business Days,
after the Warrant  shall have been so  exercised,  and,  unless this Warrant has
expired,  a new Warrant  representing the number of Underlying  Shares,  if any,
with respect to which this Warrant shall not then have been exercised shall also
be issued to the Holder hereof within such time.

     2.2.  Expenses of Exercise.  The Company shall pay all expenses,  taxes and
other charges payable in connection with the preparation, execution and delivery
of stock certificates under this ss. 2, regardless of the name or names in which
such stock certificates shall be registered.

SECTION 3. ANTI-DILUTION.

     Common Stock Dividends,  Subdivisions,  Combinations.  If the Company shall
(i) pay or make a dividend  or other  distribution  to all holders of its Common
Stock in  shares  of Common  Stock,  (ii)  subdivide,  split or  reclassify  the
outstanding  shares of its Common Stock into a larger number of shares, or (iii)
combine or reclassify the outstanding  shares of its Common Stock into a smaller
number of shares, then in each such case the Underlying Shares shall be adjusted
to equal the  number of such  shares to which the Holder of this  Warrant  would
have been  entitled  upon the  occurrence  of such event had this  Warrant  been
exercised  immediately prior to the happening of such event or, in the case of a
stock dividend or other distribution, prior to the record date for determination
of such Shareholder  entitled thereto, and the Exercise Price per share shall be
appropriately and ratably adjusted.  An adjustment made pursuant to this Section
3 shall become  effective  immediately  after such record date, in the case of a
dividend

                                       3
<PAGE>

or  distribution,  and  immediately  after the effective  date, in the case of a
subdivision, split, combination or reclassification.

SECTION 4. CERTIFICATE OF ADJUSTMENT.

     Upon the  occurrence of each  adjustment or  readjustment  or  modification
pursuant to Section 3 or in connection  with a  Reorganization  under Section 5,
the Company (in the exercise of its reasonable discretion), shall as promptly as
practicable compute such adjustment,  readjustment or modification in accordance
with the provisions of this  agreement,  and prepare and furnish to the Holder a
certificate  setting forth such  adjustment,  readjustment or  modification  and
showing in reasonable detail the facts upon which such adjustment,  readjustment
or modification in based.

SECTION 5. REORGANIZATIONS.

     If, in connection with any capital  reorganization or  reclassification  of
the capital stock of the Company,  or any merger or consolidation of the Company
with or into  another  Person as a result of which  all the  outstanding  Common
Stock of the Company is exchanged or converted to or for other securities or the
right to receive  securities or property of the Company or another  person,  the
Company  shall cause  effective  provision  to be made  whereby the Holder shall
thereafter  have the  right to  receive,  upon the  basis and upon the terms and
conditions  specified  in  this  Warrant,  and  in  lieu  of  the  Common  Stock
immediately  theretofore  receivable  upon the  exercise of this  Warrant,  such
shares of stock,  securities  or  assets as would  have been (by  virtue of such
Reorganization) issued or payable with respect to or in exchange for a number of
outstanding shares of Common Stock equal to the number of shares of Common Stock
immediately  theretofore receivable upon the exercise of this Warrant,  assuming
such exercise had taken place immediately prior to such  Reorganization.  In any
such case,  appropriate  provision  shall be made with respect to the rights and
interests  of the  Holder  to the end that  the  provisions  hereof  (including,
without limitation, provisions for adjustments of the number of shares of Common
Stock  receivable upon exercise of this Warrant) shall thereafter be applicable,
as nearly as may be, in  relation to any shares of stock,  securities  or assets
thereafter receivable upon the exercise of this Warrant.

SECTION 6. DISSOLUTION OR LIQUIDATION.

     Upon any proposed  distribution of the assets of the Company in dissolution
or liquidation  (except under circumstances when Section 5 shall be applicable),
the  Company  shall  mail  notice  thereof  to the  Holder  and  shall  make  no
distribution to its  shareholders  until the expiration of 30 days from the date
of mailing of such notice and, in any such event, the Holder of this Warrant may
exercise  the purchase  rights with respect to this Warrant  within 30 days from
the date of mailing  such  notice.  All rights  herein  granted not so exercised
within such 30-day period shall thereafter become null and void.

                                       4
<PAGE>

SECTION 7. FRACTIONAL SHARES.

     The Company shall not be required to issue or cause to be issued fractional
shares on the exercise of this Warrant and any such  fractional  share otherwise
issuable shall be rounded down to the nearest whole share.

SECTION 8. FULLY PAID STOCK; VOTING RIGHTS UPON EXERCISE; TAXES.

     (a) The Company  covenants  and agrees that the shares of its Common  Stock
represented by each  certificate to be delivered on the exercise of this Warrant
shall, at the time of such delivery,  be validly issued and outstanding,  and be
fully paid and  non-assessable.  The Company  covenants  and agrees  that,  upon
issuance of the  Underlying  Shares,  the  Underlying  Shares  shall have voting
rights equivalent to those of other shares of Common Stock.

     (b) The  Company  covenants  and  agrees  that it shall  pay,  when due and
payable,  any and all federal and state  issuance or transfer  taxes that may be
payable in respect of this  Warrant or any Common Stock or  certificates  issued
hereunder.  The Company shall not, however, be required to pay any tax which may
be payable in respect of any  transfer  involved in the transfer and delivery of
stock  certificates in the name other than that of the Holder,  and any such tax
shall be paid by the Holder at the time of presentation.

SECTION 9. LOST, STOLEN WARRANTS, ETC.

     If this Warrant shall be mutilated,  lost, stolen or destroyed, the Company
shall issue a new Warrant of like date,  tenor and  denomination and deliver the
same in exchange and substitution for and upon surrender and cancellation of the
mutilated  Warrant,  or in lieu of the Warrant lost,  stolen or destroyed,  upon
receipt  of  evidence  satisfactory  to  the  Company  of  the  loss,  theft  or
destruction of such Warrant,  and upon receipt of indemnity  satisfactory to the
Company.

SECTION 10. SEVERABILITY.

     Should any part of this  Warrant for any reason be declared  invalid,  such
decision  shall not affect the validity of any  remaining  portion,  which shall
remain in force and effect as if this Warrant had been executed with the invalid
portion thereof  eliminated.  It is hereby declared the intention of the parties
hereto that they would have executed and accepted the remaining  portion of this
Warrant without including therein any such part, parts or portion which may, for
any reason, be hereafter declared invalid.

SECTION 11. MISCELLANEOUS.

     11.1.  Notices.  Any notice,  demand or delivery to be made pursuant to the
provisions  of this Warrant  shall be in writing and (a) shall be deemed to have
been given or made one day after the date sent (i) if by the Company, by prepaid
overnight delivery,  addressed to the Holder at his

                                       5
<PAGE>

last known  address  appearing on the books of the Company  maintained  for such
purpose or (ii) if by the Holder,  by prepaid overnight  delivery,  addressed to
the Company at 250 North Shadeland Avenue, Indianapolis,  Indiana 46219; and (b)
if given by courier or confirmed facsimile  transmission shall be deemed to have
been made or given when received.  The Holder and the Company may each designate
a  different  address  by  notice to the other in the  manner  provided  in this
Section 11.1.

     11.2.  Assignment  and  Securities Law Matters.  Holder  acknowledges  this
Warrant and the Warrant Shares are restricted  securities  within the meaning of
Rule 144 under the  Securities  Act of 1933,  as amended.  Subject to compliance
with applicable Federal and state securities registration  requirements,  or the
availability of an exemption  therefrom,  this Warrant may be assigned by holder
to one or more persons by completing  the form of assignment  annexed hereto and
delivering  this Warrant with such  assignment  to the Company.  The Company may
require an opinion of counsel or other  evidence of compliance or exemption from
applicable  securities  registration  requirements  before giving effect to such
assignment.  Unless issued under an applicable registration  statement,  Warrant
Shares  will be issued  bearing a  customary  restrictive  legend.  The  Company
acknowledges  that,  pursuant to the Warrant  Issuance  Agreement,  Castle Creek
Capital,  LLC is entitled  to request  that the  Company  seek to  register  the
Warrant Shares issuable pursuant to this Warrant with the Commission for re-sale
on Form S-3 (or similar  form).  Holder shall  cooperate in all  reasonable  and
customary respects in connection with such registration.

     11.3.  Successors and Assigns. This Warrant and the rights evidenced hereby
shall inure to the benefit of and be binding upon the  successors  and permitted
assigns of the  Company  and the  Holder.  The  provisions  of this  Warrant are
intended  to be for the  benefit  of the Holder of this  Warrant or the  Warrant
Shares and shall be enforceable by the Holder.

     11.4. Amendments. This Warrant may not be modified, supplemented, varied or
amended except by an instrument in writing signed by the Company and the Holder.

     11.5.  Headings.  The descriptive  headings of sections of this Warrant are
provided solely for convenience of reference and shall not, for any purpose,  be
deemed a part of this Warrant.

     11.6.  Governing Law. THIS WARRANT AND ALL MATTERS  CONCERNING THIS WARRANT
SHALL BE GOVERNED BY THE LAWS OF THE STATE OF INDIANA FOR CONTRACTS ENTERED INTO
AND TO BE PERFORMED IN SUCH STATE  WITHOUT  REGARD TO PRINCIPLES OF CONFLICTS OF
LAWS.

                                   * * * * * *

                                       6
<PAGE>

                                 EXERCISE NOTICE

TO WHITE RIVER CAPITAL, INC.:

     The undersigned  registered holder of the within Warrant hereby irrevocably
exercises the Warrant, purchases thereunder ______________________ shares of the
Common Stock of the Company,  herewith  makes  payment of  $____________________
therefore, and requests that the certificate(s) for such shares be issued in the
name of the  undersigned  Holder or its nominee and  delivered to it at Holder's
address on the books of the Company.

Signature:
          --------------------------------

Printed Name:
             -----------------------------

Dated:
      ------------------------------------

                                   ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned registered Holder of the within Warrant
hereby sells, assigns and transfers unto ___________________________________ the
Warrant and all rights  evidenced  thereby and does  irrevocably  constitute and
appoint  ___________________________  attorney  to  transfer  the Warrant on the
books of the Company.

                                        Signature:
                                                  ------------------------------

                                        Printed Name:
                                                     ---------------------------

                                        Dated:
                                              ----------------------------------
<PAGE>
                               AMENDMENT NO. 1 TO
                           WARRANT ISSUANCE AGREEMENT

This AMENDMENT NO. 1 TO WARRANT ISSUANCE AGREEMENT is among WHITE RIVER CAPITAL,
INC. ("WHITE RIVER"),  CASTLE CREEK CAPITAL, LLC ("CASTLE CREEK"),  CASTLE CREEK
CAPITAL  PARTNERS FUND IIa, LP ("FUND IIa"),  CASTLE CREEK CAPITAL PARTNERS FUND
IIb,  LP ("FUND  IIb" and,  together  with Fund  IIa,  the  "Funds"),  and UNION
ACCEPTANCE CORPORATION ("UAC").

                                    RECITALS:

Whereas, the parties entered into a Warrant Issuance Agreement dated as of March
9, 2005 ("Warrant Issuance Agreement"),  providing for the issuance of a warrant
for the  purchase of 132,500  shares of common stock of White River to the Funds
to compensate  the Funds for advancing and  undertaking  to advance  Transaction
Expenses (as defined in the Warrant Issuance Agreement).

Whereas, at the time of approval and execution of the Warrant Issuance Agreement
the  parties  anticipated  that  Transaction  Expenses  for which the Funds were
incurring the obligation to fund (and the risk of a failure of  reimbursement if
the Transactions are unsuccessful) would be approximately $1,325,000, but as the
Transactions  have  developed and time has elapsed,  the parties now  anticipate
that the Transaction Expenses will be approximately $1,900,000.

Whereas,  White  River has  determined  that it is  appropriate  to provide  for
additional  compensation  to the Funds for incurring a greater than  anticipated
obligation and greater than anticipated  risk, and,  therefore,  to increase the
number of shares to be subject to the Warrant to 150,000.

Therefore, the parties agree as follows:

1. Amendment.  Each reference in the Warrant Issuance  Agreement and the related
form of Warrant to "$1,325,000" is hereby amended to read "$1,500,000"; and each
reference in the Warrant  Issuance  Agreement and the related form of Warrant to
"132,500" is hereby amended to read "150,000."

2. Terms.  Capitalized  terms used,  but not defined  herein,  have the meanings
given them in the Warrant Issuance Agreement.

3. Confirmation.  The Warrant Issuance Agreement is hereby confirmed as modified
hereby and remains in full force and effect in all respects.

<PAGE>

EXECUTED, this 31st day of May, 2005.

CASTLE CREEK CAPITAL LLC

By: /s/ William J. Ruh
   --------------------------

Its: Executive Vice President

CASTLE CREEK CAPITAL PARTNERS FUND IIa, LP
CASTLE CREEK CAPITAL PARTNERS FUND IIb, LP

By: CASTLE CREEK CAPITAL LLC
Its: General Partner

By: /s/ William J. Ruh
   --------------------------

Its: Executive Vice President

WHITE RIVER CAPITAL, INC.

By: /s/ Mark R. Ruh
   --------------------------

Its: President

UNION ACCEPTANCE CORPORATION

By: /s/ Mark R. Ruh
   --------------------------

Its: President

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