Document:

ASSIGNMENT,
      WAIVER AND THIRD AMENDMENT
      TO CREDIT AGREEMENT

     

    AMONG

     

    TANDEM
      ENERGY CORPORATION

     

    PER
      ACQUISITION CORP.

    

     

    AND

    

     

    GUARANTY
      BANK, FSB

     

    Effective
      as of October 26, 2007

     

    __________________________________

     

    LETTER
      OF CREDIT FACILITY OF UP TO $2,825,000

    ___________________________________

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

    

      
        	 	 	
                PAGE

              
	 	 	 
	
                ARTICLE
                  I.

              	
                DEFINITIONS

              	
                1

              
	
                1.01

              	
                Terms
                  Defined Above

              	
                1

              
	
                1.02

              	
                Terms
                  Defined in Agreement

              	
                1

              
	
                1.03

              	
                References

              	
                1

              
	
                1.04

              	
                Articles
                  and Sections

              	
                2

              
	
                1.05

              	
                Number
                  and Gender

              	
                2

              
	 	 	
                 

              
	
                ARTICLE
                  II.

              	
                ASSIGNMENT

              	
                2

              
	
                2.01

              	
                Assignment

              	
                2

              
	
                2.02

              	
                Assumption

              	
                2

              
	
                2.03

              	
                Consent

              	
                2

              
	
                 

              	 	
                 

              
	
                ARTICLE
                  III.

              	
                WAIVER

              	
                2

              
	
                3.01

              	
                Waiver

              	
                2

              
	
                3.02

              	
                Limitation
                  on Waivers

              	
                2

              
	
                 

              	 	
                 

              
	
                ARTICLE
                  IV.

              	
                AMENDMENTS

              	
                3

              
	
                4.01

              	
                References
                  to Borrower

              	
                3

              
	
                4.02

              	
                Amendment
                  of Section 2.8(a)

              	
                3

              
	
                4.03

              	
                Amendment
                  of Exhibit I

              	
                3

              
	
                 

              	 	
                 

              
	
                ARTICLE
                  V.

              	
                CONDITIONS

              	
                3

              
	
                5.01

              	
                Receipt
                  of Documents

              	
                3

              
	
                5.02

              	
                Accuracy
                  of Representations and Warranties

              	
                3

              
	
                5.03

              	
                Matters
                  Satisfactory to Lender

              	
                3

              
	
                 

              	 	
                 

              
	
                ARTICLE
                  VI.

              	
                REPRESENTATIONS
                  AND WARRANTIES

              	
                4

              
	
                 

              	 	
                 

              
	
                ARTICLE
                  VII.

              	
                RATIFICATION

              	
                4

              
	
                 

              	 	
                 

              
	
                ARTICLE
                  VIII.

              	
                MISCELLANEOUS

              	
                4

              
	
                8.01

              	
                Scope
                  of Amendment

              	
                4

              
	
                8.02

              	
                Agreement
                  as Amended

              	
                4

              
	
                8.03

              	
                Parties
                  in Interest

              	
                4

              
	
                8.04

              	
                Rights
                  of Third Parties

              	
                4

              
	
                8.05

              	
                ENTIRE
                  AGREEMENT

              	
                4

              
	
                8.06

              	
                GOVERNING
                  LAW

              	
                5

              
	
                8.07

              	
                JURISDICTION
                  AND VENUE

              	
                5

              

      

       

    

    EXHIBIT
      I
      - FORM
      OF
      PROMISSORY NOTE

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

    ASSIGNMENT,
      WAIVER AND THIRD AMENDMENT
      TO CREDIT AGREEMENT

     

    This
      ASSIGNMENT,
      WAIVER
      AND THIRD AMENDMENT TO CREDIT AGREEMENT
      (this
“Third
      Amendment”)
      is
      made and entered into effective as of October 26, 2007, among TANDEM
      ENERGY CORPORATION,
      a
      Colorado corporation (“Tandem”),
      PER
      ACQUISITION CORP.,
      a
      Delaware corporation (“PER”)
      and
GUARANTY
      BANK, FSB,
      a
      federal savings bank (the “Lender”).

     

    WITNESSETH

     

    WHEREAS,
      the Lender and Tandem did execute and exchange counterparts of that certain
      Credit Agreement dated June 8, 2005, as amended by First Amendment to
      Credit Agreement dated effective October 21, 2005, and as further amended by
      Waiver and Second Amendment to Credit Agreement dated February 15, 2006 (as
      so
      amended, the “Agreement”),
      to
      which reference is here made for all purposes;

     

    WHEREAS,
      TEC has assigned all of the Mortgaged Property to PER, subject to the liens
      and
      security interests of the Security Instruments, and PER has assumed certain
      liabilities of Tandem, including, without limitation, the Obligations and all
      obligations of Tandem under the ISDA Master Agreement between Tandem and BP
      Corporation North America Inc., (“BP”)
      which
      is the subject of the Intercreditor Agreement dated August 28, 2006 by and
      among the Lender, BP and Tandem (the “Intercreditor
      Agreement”);
      

     

    WHEREAS,
      Tandem is desirous of assigning to PER all rights of Tandem under the Agreement
      and the other Loan Documents and PER is desirous of confirming its assumption
      of
      all obligations of Tandem under the Agreement and the other Loan
      Documents;

     

    WHEREAS,
      PER and the Lender are desirous of amending the Agreement in the particulars
      hereinafter set forth;

     

    NOW,
      THEREFORE, in consideration of the mutual covenants and agreements of the
      parties to the Agreement, as set forth therein, and the mutual covenants and
      agreements of the parties hereto, as set forth in this Third Amendment, the
      parties hereto agree as follows:

     

    ARTICLE
      I.

    DEFINITIONS

     

    1.01    Terms
      Defined Above.
      As used
      herein, each of the terms “Agreement,”
      “BP,”
      “Intercreditor
      Agreement,”
      “Lender,”
      “PER,”
      “Tandem,”
and
      “Third
      Amendment”
shall
      have the meaning assigned to such term hereinabove.

     

    1.02    Terms
      Defined in Agreement.
      As used
      herein, each term defined in the Agreement shall have the meaning assigned
      thereto in the Agreement, unless expressly provided herein to the
      contrary.

     

    1.03    References.
      References in this Third Amendment to Article or Section numbers shall be to
      Articles and Sections of this Third Amendment, unless expressly stated herein
      to
      the contrary. References in this Third Amendment to “hereby,” “herein,”
hereinafter,” hereinabove,” “hereinbelow,” “hereof,” and “hereunder” shall be to
      this Third Amendment in its entirety and not only to the particular Article
      or
      Section in which such reference appears.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.04    Articles
      and Sections.
      This
      Third Amendment, for convenience only, has been divided into Articles and
      Sections and it is understood that the rights, powers, privileges, duties,
      and
      other legal relations of the parties hereto shall be determined from this Third
      Amendment as an entirety and without regard to such division into Articles
      and
      Sections and without regard to headings prefixed to such Articles and
      Sections.

     

    1.05    Number
      and Gender.
      Whenever the context requires, reference herein made to the single number shall
      be understood to include the plural and likewise the plural shall be understood
      to include the singular. Words denoting sex shall be construed to include the
      masculine, feminine, and neuter, when such construction is appropriate, and
      specific enumeration shall not exclude the general, but shall be construed
      as
      cumulative. Definitions of terms defined in the singular and plural shall be
      equally applicable to the plural or singular, as the case may be.

     

    ARTICLE
      II.

    ASSIGNMENT

     

    2.01    Assignment.
      Tandem
      hereby transfers and assigns to PER all rights and benefits of Tandem under
      the
      Agreement and the other Loan Documents.

     

    2.02    Assumption.
      PER
      hereby assumes all obligations and duties of Tandem under the Agreement and
      the
      other Loan Documents, including, without limitation, the obligations and duties
      of Tandem in respect of the Letters of Credit outstanding as of the effective
      date of this Third Amendment.

     

    2.03    Consent.
      The
      Lender hereby consents to the transfer and assignment pursuant to
      Section 2.1 and the assumption pursuant to Section 2.2.

     

    ARTICLE
      III.

    WAIVER

     

    3.01    Waiver.
      The
      Lender hereby waives any Default or Event of Default arising under the Agreement
      or any other Loan Document solely as a result of violations of Section 6.4
      through October 26, 2007.

     

    3.02    Limitation
      on Waivers.
      The
      scope of the waiver set forth in Section 2.01 is expressly limited to its terms
      and does not extend to any other or future breaches, Defaults, violations or
      Events of Default under the Agreement or any other Loan Document.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      IV.

    AMENDMENTS

     

    The
      PER
      the Lender hereby amend the Agreement in the following particulars:

     

    4.01    References
      to Borrower. All references to “the Borrower” in the Agreement shall mean
      PER.

     

    4.02    Amendment
      of Section 2.8(a). Section 2.8(a) of the Agreement is hereby amended to read
      as
      follows:

     

    “2.8    Borrowing
      Base Determinations. (a) The Borrowing Base as of the effective date of this
      Third Amendment is acknowledged by the Borrower and the Lender to be $5,000,000
      or the amount of the outstanding Letters of Credit as of the effective date
      of
      this Third Amendment as reduced as any of such Letters of Credit expires or
      is
      cancelled, whichever is less.”

     

    4.03    Amendment
      of Exhibit I. Exhibit I, i.e. the “Form of Promissory Note” shall be amended
      to be as set forth on Exhibit I-A attached to this Third Amendment.

     

    ARTICLE
      V.

    CONDITIONS

     

    The
      obligation of the Lender to amend the Agreement as provided herein is subject
      to
      the fulfillment of the following conditions precedent:

     

    5.01    Receipt
      of Documents.
      The
      Lender shall have received, reviewed, and approved the following documents
      and
      other items, appropriately executed when necessary and in form and substance
      satisfactory to the Lender:

     

    
      	 	
              (a)

            	
              multiple
                counterparts of this Third Amendment as requested by the Lender;
                

            

    

     

    
      	 	
              (b)

            	
              the
                Note;

            

    

     

    
      	 	
              (c)

            	
              payment
                of the legal fees of Jackson Walker L.L.P. in the amount of $44,213.41;
                

            

    

     

    
      	 	
              (d)

            	
              payment
                to the Lender the amount of $20,588,702.80 for principal, interest
                through
                October 26, 2006, and LIBO breakage fees;
                and

            

    

     

    
      	 	
              (e)

            	
              such
                other agreements, documents, items, instruments, opinions, certificates,
                waivers, consents, and evidence as the Lender may reasonably
                request.

            

    

     

    5.02    Accuracy
      of Representations and Warranties.
      The
      representations and warranties contained in Article IV of the Agreement and
      this
      Third Amendment shall be true and correct.

     

    5.03    Matters
      Satisfactory to Lender.
      All
      matters incident to the consummation of the transactions contemplated hereby
      shall be satisfactory to the Lender.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VI.

    REPRESENTATIONS
      AND WARRANTIES

     

    The
      Borrower hereby expressly re-makes, in favor of the Lender, all of the
      representations and warranties set forth in Article IV of the Agreement, and
      represents and warrants that all such representations and warranties remain
      true
      and unbreached.

     

    ARTICLE
      VII.

    RATIFICATION

     

    PER
      and
      the Lender do hereby adopt, ratify and confirm the Agreement and the other
      Loan
      Documents, in all things in accordance with the terms and provisions thereof,
      as
      amended by this Third Amendment also hereby adopts, ratifies, and confirms
      the
      Intercreditor Agreement among in accordance with the terms and provisions
      thereof.

     

    ARTICLE
      VIII.

    MISCELLANEOUS

     

    8.01    Scope
      of Amendment.
      The
      scope of this Third Amendment is expressly limited to the matters addressed
      herein and this Third Amendment shall not operate as a waiver of any past,
      present, or future breach, Default, or Event of Default under the Agreement.
      except to the extent, if any, that any such breach, Default, or Event of Default
      is remedied by the effect of this Third Amendment.

     

    8.02    Agreement
      as Amended.
      All
      references to the Agreement in any document heretofore or hereafter executed
      in
      connection with the transactions contemplated in the Agreement shall be deemed
      to refer to the Agreement as amended by this Third Amendment.

     

    8.03    Parties
      in Interest.
      All
      provisions of this Third Amendment shall be binding upon and shall inure to
      the
      benefit of the parties hereto and their respective successors and
      assigns.

     

    8.04    Rights
      of Third Parties.
      All
      provisions herein are imposed solely and exclusively for the benefit of the
      parties hereto, and no other Person shall have standing to require satisfaction
      of such provisions in accordance with their terms and any or all of such
      provisions may be freely waived in whole or in part by the Lender at any time
      if
      in its sole discretion it deems it advisable to do so.

     

    8.05    ENTIRE
      AGREEMENT.
      THIS
      THIRD AMENDMENT CONSTITUTES THE ENTIRE AGREEMENT AMONG THE PARTIES HERETO WITH
      RESPECT TO THE SUBJECT HEREOF AND SUPERSEDES ANY PRIOR AGREEMENT, WHETHER
      WRITTEN OR ORAL, AMONG SUCH PARTIES REGARDING THE SUBJECT HEREOF. FURTHERMORE
      IN
      THIS REGARD, THIS THIRD AMENDMENT, THE AGREEMENT, THE NOTE, THE SECURITY
      INSTRUMENTS, AND THE OTHER WRITTEN DOCUMENTS REFERRED TO IN THE AGREEMENT OR
      EXECUTED IN CONNECTION WITH OR AS SECURITY FOR THE NOTE REPRESENT, COLLECTIVELY,
      THE FINAL AGREEMENT AMONG THE PARTIES THERETO AND MAY NOT BE CONTRADICTED BY
      EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE
      PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE
      PARTIES.

     

    8.06    GOVERNING
      LAW.
      THIS
      THIRD AMENDMENT, THE AGREEMENT AND THE NOTE SHALL BE DEEMED TO BE CONTRACTS
      MADE
      UNDER AND SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF
      THE
      STATE OF TEXAS. THE PARTIES ACKNOWLEDGE AND AGREE THAT THIS AGREEMENT AND THE
      NOTE AND THE TRANSACTIONS CONTEMPLATED HEREBY BEAR A NORMAL, REASONABLE, AND
      SUBSTANTIAL RELATIONSHIP TO THE STATE OF TEXAS.

     

    8.07    JURISDICTION
      AND VENUE.
      ALL
      ACTIONS OR PROCEEDINGS WITH RESPECT TO, ARISING DIRECTLY OR INDIRECTLY IN
      CONNECTION WITH, OUT OF, RELATED TO, OR FROM THIS THIRD AMENDMENT, THE AGREEMENT
      OR ANY OTHER LOAN DOCUMENT MAY BE LITIGATED IN COURTS HAVING SITUS IN HARRIS
      COUNTY, TEXAS. EACH OF THE PARTIES HERETO HEREBY SUBMITS TO THE JURISDICTION
      OF
      ANY LOCAL, STATE OR FEDERAL COURT LOCATED IN HARRIS COUNTY, TEXAS, AND HEREBY
      WAIVES ANY RIGHTS IT MAY HAVE TO TRANSFER OR CHANGE THE JURISDICTION OR VENUE
      OF
      ANY LITIGATION BROUGHT AGAINST IT BY ANY OTHER PARTY HERETO IN ACCORDANCE WITH
      THIS SECTION.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, this Assignment, Waiver and Third Amendment to Credit Agreement
      is executed effective the date first hereinabove written.

     

    
      	 	 	 
	 	TANDEM
              ENERGY CORPORATION
	 
 	 
 	 
 
	 	By:  	/s/
              Michael G. Cunningham
	 	
              
Name:
Michael
              G. Cunningham
	 	Title:
              Senior
              Vice President

    

     

    
      	 	 	 
	 	PER
              ACQUISITION CORP.
	 
 	 
 	 
 
	 	By:  	/s/
              Barry Kostiner
	 	
              
Barry
              Kostiner
	 	Vice
              President

    

     

    
      	 	 	 
	 	GUARANTY
              BANK, FSB
	 
 	 
 	 
 
	 	By:  	/s/
              Christopher S. Parada
	 	
              
Christopher
              S. Parada
	 	Senior
              Vice President,

    

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      I

     

    FORM
      OF NOTE

     

    PROMISSORY
      NOTE

     

    
      	
              $5,000,000

            	
              Houston,
                Texas

            	
              October
                26, 2007

            

    

    

     

    FOR
      VALUE
      RECEIVED and WITHOUT GRACE, the undersigned (“Maker”)
      promises to pay to the order of GUARANTY
      BANK, FSB (“Payee”),
      at
      its banking quarters in Houston, Harris County, Texas, the sum of FIVE
      MILLION DOLLARS ($5,000,000), or so much thereof as may be advanced against
      this
      Note pursuant to the Credit Agreement dated June 8, 2005, as amended,
      originally by and between Tandem Energy Corporation and Payee (as amended,
      restated or supplemented from time to time, the “Credit
      Agreement”),
      together with interest at the rates and calculated as provided in the Credit
      Agreement.

     

    Reference
      is hereby made to the Credit Agreement for matters governed thereby, including,
      without limitation, certain events which will entitle the holder hereof to
      accelerate the maturity of all amounts due hereunder. Capitalized terms used
      but
      not defined in this Note shall have the meanings assigned to such terms in
      the
      Credit Agreement.

     

    This
      Note
      is issued pursuant to, is the “Note” under, and is payable as provided in the
      Credit Agreement. Subject to compliance with applicable provisions of the Credit
      Agreement, Maker may at any time pay the full amount or any part of this Note
      without the payment of any premium or fee, but such payment shall not, until
      this Note is fully paid and satisfied, excuse the payment as it becomes due
      of
      any payment on this Note provided for in the Credit Agreement.

     

    Without
      being limited thereto or thereby, this Note is secured by the Security
      Instruments.

     

    THIS
      NOTE SHALL BE GOVERNED AND CONTROLLED BY THE LAWS OF THE STATE OF TEXAS WITHOUT
      GIVING EFFECT TO PRINCIPLES THEREOF RELATING TO CONFLICTS OF
      LAW.

     

    
      	 	 	 
	 	PER
              ACQUISITION CORP.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Barry
              Kostiner
	 	President

    

     

    
      
        
        

      

      
        I-iPLATINUM
        ENERGY RESOURCES, INC.

      2006
        LONG-TERM INCENTIVE PLAN 

       

      ARTICLE
        I

      PURPOSE
        

       

      Section
        1.1 Purpose.
        This
        2006 Long-Term Incentive Plan (the “Plan”) is established by Platinum Energy
        Resources, Inc., a Delaware corporation (the “Company”) to create incentives
        which are designed to motivate Participants to put forth maximum effort toward
        the success and growth of the Company and to enable the Company to attract
        and
        retain experienced individuals who by their position, ability and diligence
        are
        able to make important contributions to the Company’s success. Toward these
        objectives, the Plan provides for the grant of Options, Restricted Stock
        Awards,
        Stock Appreciation Rights (“SARs”), Performance Units and Performance Bonuses to
        Eligible Employees and the grant of Nonqualified Stock Options, Restricted
        Stock
        Awards, SARs and Performance Units to Consultants and Eligible Directors,
        subject to the conditions set forth in the Plan. 

      

      Section
        1.2 Establishment.
        The
        Plan is effective as of [    ], 2006 and for a period of ten
        years thereafter. The Plan shall continue in effect until all matters relating
        to the payment of Awards and administration of the Plan have been settled.
        The
        Plan is subject to approval by the Company’s stockholders in accordance with
        applicable law which approval must occur within the period ending twelve
        months
        after the date the Plan is adopted by the Board. Pending such approval by
        the
        stockholders, Awards under the Plan may be granted, but no such Awards may
        be
        exercised prior to receipt of stockholder approval. In the event stockholder
        approval is not obtained within a twelve-month period, all Awards granted
        shall
        be void. 

      

      Section
        1.3 Shares Subject to the Plan.
        Subject
        to the limitations set forth in the Plan, Awards may be made under this Plan
        for
        a total of 4 million shares of the Company’s common stock, par value $.0001 per
        share (the “Common Stock”). A maximum of 2 million shares of Common Stock of the
        total authorized under this Section 1.3 may be granted as Incentive Stock
        Options. The limitations of this Section 1.3 shall be subject to the adjustment
        provisions of Article X. 

      

      ARTICLE
        II

      DEFINITIONS
        

      

      Section
        2.1 “Account”
        means
        the recordkeeping account established by the Company to which will be credited
        an Award of Performance Units to a Participant. 

      

      Section
        2.2 “Affiliated Entity”
        means
        any corporation, partnership, limited liability company or other form of
        legal
        entity in which a majority of the partnership or other similar interest thereof
        is owned or controlled, directly or indirectly, by the Company or one or
        more of
        its Subsidiaries or Affiliated Entities or a combination thereof. For purposes
        hereof, the Company, a Subsidiary or an Affiliated Entity shall be deemed
        to
        have a majority ownership interest in a partnership or limited liability
        company
        if the Company, such Subsidiary or Affiliated Entity shall be allocated a
        majority of partnership or limited liability company gains or losses or shall
        be
        or control a managing director or a general partner of such partnership or
        limited liability company. 

      

      Section
        2.3 “Award”
        means,
        individually or collectively, any Option, Restricted Stock Award, SAR,
        Performance Unit or Performance Bonus granted under the Plan to an Eligible
        Employee by the Board or any Nonqualified Stock Option, Performance Unit
        SAR or
        Restricted Stock Award granted under the Plan to a Consultant or an Eligible
        Director by the Board pursuant to such terms, conditions, restrictions, and/or
        limitations, if any, as the Board may establish by the Award Agreement or
        otherwise. 

      

      Section
        2.4 “Award Agreement”
        means
        any written instrument that establishes the terms, conditions, restrictions,
        and/or limitations applicable to an Award in addition to those established
        by
        this Plan and by the Board’s exercise of its administrative powers.

      

      Section
        2.5 “Board”
        means
        the Board of Directors of the Company and, if the Board has appointed a
        Committee as provided in Section 3.1, the term “Board” shall include such
        Committee. 

      

        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

       

      Section
        2.6 “Change of Control Event”
        means
        each of the following: 

      

      (i)
        Any
        transaction in which shares of voting securities of the Company representing
        more than 50% of the total combined voting power of all outstanding voting
        securities of the Company are issued by the Company, or sold or transferred
        by
        the stockholders of the Company as a result of which those persons and entities
        who beneficially owned voting securities of the Company representing more
        than
        50% of the total combined voting power of all outstanding voting securities
        of
        the Company immediately prior to such transaction cease to beneficially own
        voting securities of the Company representing more than 50% of the total
        combined voting power of all outstanding voting securities of the Company
        immediately after such transaction; 

      

      (ii)
        The
        asset acquisition or consolidation of the Company with or into another entity
        as
        a result of which those persons and entities who beneficially owned voting
        securities of the Company representing more than 50% of the total combined
        voting power of all outstanding voting securities of the Company immediately
        prior to such asset acquisition or consolidation cease to beneficially own
        voting securities of the Company representing more than 50% of the total
        combined voting power of all outstanding voting securities of the surviving
        corporation or resulting entity immediately after such asset acquisition
        of
        consolidation; or 

      

      (iii)
        The
        sale of all or substantially all of the Company’s assets to an entity of which
        those persons and entities who beneficially owned voting securities of the
        Company representing more than 50% of the total combined voting power of
        all
        outstanding voting securities of the Company immediately prior to such asset
        sale do not beneficially own voting securities of the purchasing entity
        representing more than 50% of the total combined voting power of all outstanding
        voting securities of the purchasing entity immediately after such asset sale.
        

      

      Section
        2.7 “Code”
        means
        the Internal Revenue Code of 1986, as amended. References in the Plan to
        any
        section of the Code shall be deemed to include any amendments or successor
        provisions to such section and any regulations under such section. 

      

      Section
        2.8 “Committee”
        means
        the Committee appointed by the Board as provided in Section 3.1. 

      

      Section
        2.9 “Common Stock”
        means
        the common stock, par value $.0001 per share, of the Company, and after
        substitution, such other stock as shall be substituted therefore as provided
        in
        Article X. 

      

      Section
        2.10 “Consultant”
        means
        any person who is engaged by the Company, a Subsidiary or an Affiliated Entity
        to render consulting or advisory services. 

      

      Section
        2.11 “Date of Grant”
        means
        the date on which the grant of an Award is authorized by the Board or such
        later
        date as may be specified by the Board in such authorization. 

      

      Section
        2.12 “Disability”
        means
        the Participant is unable to continue employment by reason of any medically
        determinable physical or mental impairment which can be expected to result
        in
        death or can be expected to last for a continuous period of not less than
        12
        months. For purposes of this Plan, the determination of Disability shall
        be made
        in the sole and absolute discretion of the Board. 

      

      Section
        2.13 “Eligible Employee”
        means
        any employee of the Company, a Subsidiary, or an Affiliated Entity as approved
        by the Board. 

      

      Section
        2.14 “Eligible Director”
        means
        any member of the Board who is not an employee of the Company, a Subsidiary
        or
        an Affiliated Entity. 

      

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

      

      Section
        2.16 “Fair Market Value”
        means
        (A) during such time as the Common Stock is registered under Section 12 of
        the
        Exchange Act, the closing price of the Common Stock as reported by an
        established stock exchange or automated quotation system on the day for which
        such value is to be determined, or, if no sale of the Common Stock shall
        have
        been made on any such stock exchange or automated quotation system that day,
        on
        the next preceding day on which there was a sale of such Common Stock, or
        (B)
        during any such time as the Common Stock is not listed upon an established
        stock
        exchange or automated quotation system, the mean between dealer “bid” and “ask”
prices of the Common Stock in the over-the-counter market on the day for
        which
        such value is to be determined, as reported by the National Association of
        Securities Dealers, Inc., or (C) during any such time as the Common Stock
        cannot
        be valued pursuant to (A) or (B) above, the fair market value shall be as
        determined by the Board considering all relevant information including, by
        example and not by limitation, the services of an independent appraiser.
        

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      

      Section
        2.17 “Incentive Stock Option”
        means an
        Option within the meaning of Section 422 of the Code. 

      

      Section
        2.18 “Nonqualified Stock Option”
        means an
        Option which is not an Incentive Stock Option. 

      

      Section
        2.19 “Option”
        means an
        Award granted under Article V of the Plan and includes both Nonqualified
        Stock
        Options and Incentive Stock Options to purchase shares of Common Stock.

      

      Section
        2.20 “Participant”
        means an
        Eligible Employee, a Consultant or an Eligible Director to whom an Award
        has
        been granted by the Board under the Plan. 

      

      Section
        2.21 “Performance Bonus”
        means
        the cash bonus which may be granted to Eligible Employees under Article IX
        of
        the Plan. 

      

      Section
        2.22 “Performance Units”
        means
        those monetary units that may be granted to Eligible Employees, Consultants
        or
        Eligible Directors pursuant to Article VIII hereof. 

      

      Section
        2.23 “Plan”
        means
        this Platinum Energy Resources, Inc. 2006 Long-Term Incentive Plan.

      

      Section
        2.24 “Restricted Stock Award”
        means an
        Award granted to an Eligible Employee, Consultant or Eligible Director under
        Article VI of the Plan. 

      

      Section
        2.25 “Retirement”
        means
        the termination of an Eligible Employee’s employment with the Company, a
        Subsidiary or an Affiliated Entity on or after attaining age 62. 

      

      Section
        2.26 “SAR”
        means a
        stock appreciation right granted to an Eligible Employee, Consultant or Eligible
        Director under Article VII of the Plan. 

      

      Section
        2.27 “Subsidiary”
        shall
        have the same meaning set forth in Section 424 of the Code. 

      

      ARTICLE
        III

      ADMINISTRATION
        

      

      Section
        3.1 Administration of the Plan by the Board.
        The
        Board shall administer the Plan. The Board may, by resolution, appoint a
        committee to administer the Plan and delegate its powers described under
        this
        Section 3.1 for purposes of Awards granted to Eligible Employees and
        Consultants. 

      

      Subject
        to the provisions of the Plan, the Board shall have exclusive power to:

      

      (a)
        Select Eligible Employees and Consultants to participate in the Plan.

      

      (b)
        Determine the time or times when Awards will be made to Eligible Employees
        or
        Consultants. 

      

      (c)
        Determine the form of an Award, whether an Incentive Stock Option, Nonqualified
        Stock Option, Restricted Stock Award, SAR, Performance Unit, or Performance
        Bonus, the number of shares of Common Stock or Performance Units subject
        to the
        Award, the amount and all the terms, conditions (including performance
        requirements), restrictions and/or limitations, if any, of an Award, including
        the time and conditions of exercise or vesting, and the terms of any Award
        Agreement, which may include the waiver or amendment of prior terms and
        conditions or acceleration or early vesting or payment of an Award under
        certain
        circumstances determined by the Board. 

      

      (d)
        Determine whether Awards will be granted singly or in combination. 

      

      (e)
        Accelerate the vesting, exercise or payment of an Award or the performance
        period of an Award. 

      

      (f)
        Determine whether and to what extent a Performance Bonus may be deferred,
        either
        automatically or at the election of the Participant or the Board. 

      

      (g)
        Take
        any and all other action it deems necessary or advisable for the proper
        operation or administration of the Plan. 

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      Section
        3.2 Administration of Grants to Eligible Directors.
        The
        Board shall have the exclusive power to select Eligible Directors to participate
        in the Plan and to determine the number of Nonqualified Stock Options,
        Performance Units, SARs or shares of Restricted Stock awarded to Eligible
        Directors selected for participation. If the Board appoints a committee to
        administer the Plan, it may delegate to the committee administration of all
        other aspects of the Awards made to Eligible Directors. 

      

      Section
        3.3 Board to Make Rules and Interpret Plan.
        The
        Board in its sole discretion shall have the authority, subject to the provisions
        of the Plan, to establish, adopt, or revise such rules and regulations and
        to
        make all such determinations relating to the Plan, as it may deem necessary
        or
        advisable for the administration of the Plan. The Board’s interpretation of the
        Plan or any Awards and all decisions and determinations by the Board with
        respect to the Plan shall be final, binding, and conclusive on all parties.
        

      

      Section
        3.4 Section 162(m) Provisions.
        The
        Company intends for the Plan and the Awards made there under to qualify for
        the
        exception from Section 162(m) of the Code for “qualified performance based
        compensation” if it is determined by the Board that such qualification is
        necessary for an Award. Accordingly, the Board shall make determinations
        as to
        performance targets and all other applicable provisions of the Plan as necessary
        in order for the Plan and Awards made there under to satisfy the requirements
        of
        Section 162(m) of the Code. 

      

      ARTICLE
        IV

      GRANT
        OF AWARDS 

      

      Section
        4.1 Grant of Awards.
        Awards
        granted under this Plan shall be subject to the following conditions:

      

      (a)
        Subject to Article X, the aggregate number of shares of Common Stock made
        subject to the grant of Options and/or SARs to any Eligible Employee in any
        calendar year may not exceed 100,000. 

      

      (b)
        Subject to Article X, the aggregate number of shares of Common Stock made
        subject to the grant of Restricted Stock Awards and Performance Unit Awards
        to
        any Eligible Employee in any calendar year may not exceed 100,000. 

      

      (c)
        The
        maximum amount made subject to the grant of Performance Bonuses to any Eligible
        Employee in any calendar year may not exceed $500,000. 

      

      (d)
        Any
        shares of Common Stock related to Awards which terminate by expiration,
        forfeiture, cancellation or otherwise without the issuance of shares of Common
        Stock or are exchanged in the Board’s discretion for Awards not involving Common
        Stock, shall be available again for grant under the Plan and shall not be
        counted against the shares authorized under Section 1.3. 

      

      (e)
        Common Stock delivered by the Company in payment of an Award authorized under
        Articles V and VI of the Plan may be authorized and unissued Common Stock
        or
        Common Stock held in the treasury of the Company. 

      

      (f)
        The
        Board shall, in its sole discretion, determine the manner in which fractional
        shares arising under this Plan shall be treated. 

      

      (g)
        Separate certificates or a book-entry registration representing Common Stock
        shall be delivered to a Participant upon the exercise of any Option.

      

      (h)
        The
        Board shall be prohibited from canceling, reissuing or modifying Awards if
        such
        action will have the effect of repricing the Participant’s Award. 

      

      (i)
        Eligible Directors may only be granted Nonqualified Stock Options, Restricted
        Stock Awards, SARs or Performance Units under this Plan. Subject to Article
        X,
        the aggregate number of shares of Common Stock made subject to the grant
        of
        Options to any individual Eligible Director in any calendar year may not
        exceed
        10,000. 

      

      (j)
        Subject to Article X, in no event shall more than 10,000 shares of Restricted
        Stock be awarded to any individual Eligible Director in any calendar year.
        

      

      (k)
        The
        maximum term of any Award shall be ten years. 

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      ARTICLE
        V

      STOCK
        OPTIONS 

      

      Section
        5.1 Grant of Options.
        The
        Board may, from time to time, subject to the provisions of the Plan and such
        other terms and conditions as it may determine, grant Options to Eligible
        Employees. These Options may be Incentive Stock Options or Nonqualified Stock
        Options, or a combination of both. The Board may, subject to the provisions
        of
        the Plan and such other terms and conditions as it may determine, grant
        Nonqualified Stock Options to Eligible Directors and Consultants. Each grant
        of
        an Option shall be evidenced by an Award Agreement executed by the Company
        and
        the Participant, and shall contain such terms and conditions and be in such
        form
        as the Board may from time to time approve, subject to the requirements of
        Section 5.2. 

      

      Section
        5.2 Conditions of Options.
        Each
        Option so granted shall be subject to the following conditions: 

      

      (a)
        Exercise Price. As limited by Section 5.2(e) below, each Option shall state
        the
        exercise price which shall be set by the Board at the Date of Grant; provided,
        however, no Option shall be granted at an exercise price which is less than
        the
        Fair Market Value of the Common Stock on the Date of Grant. 

      

      (b)
        Form
        of Payment. The exercise price of an Option may be paid (i) in cash or by
        check,
        bank draft or money order payable to the order of the Company; (ii) by
        delivering shares of Common Stock having a Fair Market Value on the date
        of
        payment equal to the amount of the exercise price, but only to the extent
        such
        exercise of an Option would not result in an adverse accounting charge to
        the
        Company for financial accounting purposes with respect to the shares used
        to pay
        the exercise price unless otherwise determined by the Board; or (iii) a
        combination of the foregoing. In addition to the foregoing, the Board may
        permit
        an Option granted under the Plan to be exercised by a broker-dealer acting
        on
        behalf of a Participant through procedures approved by the Board. 

      

      (c)
        Exercise of Options. Options granted under the Plan shall be exercisable,
        in
        whole or in such installments and at such times, and shall expire at such
        time,
        as shall be provided by the Board in the Award Agreement. Exercise of an
        Option
        shall be by written notice to the Secretary of the Company at least two business
        days in advance of such exercise stating the election to exercise in the
        form
        and manner determined by the Board. Every share of Common Stock acquired
        through
        the exercise of an Option shall be deemed to be fully paid at the time of
        exercise and payment of the exercise price. 

      

      (d)
        Other
        Terms and Conditions. Among other conditions that may be imposed by the Board,
        if deemed appropriate, are those relating to (i) the period or periods and
        the
        conditions of exercisability of any Option; (ii) the minimum periods during
        which Participants must be employed by the Company, its Subsidiaries, or
        an
        Affiliated Entity, or must hold Options before they may be exercised; (iii)
        the
        minimum periods during which shares acquired upon exercise must be held before
        sale or transfer shall be permitted; (iv) conditions under which such Options
        or
        shares may be subject to forfeiture; (v) the frequency of exercise or the
        minimum or maximum number of shares that may be acquired at any one time;
        (vi)
        the achievement by the Company of specified performance criteria; and (vii)
        non-compete and protection of business matters. 

      

      (e)
        Special Restrictions Relating to Incentive Stock Options. Options issued
        in the
        form of Incentive Stock Options shall only be granted to Eligible Employees
        of
        the Company or a Subsidiary, and not to Eligible Employees of an Affiliated
        Entity unless such entity shall be considered as a “disregarded entity” under
        the Code and shall not be distinguished for federal tax purposes from the
        Company or the applicable Subsidiary. 

      

      (f)
        Application of Funds. The proceeds received by the Company from the sale
        of
        Common Stock pursuant to Options will be used for general corporate purposes.
        

       

      (g)
        Stockholder Rights. No Participant shall have a right as a stockholder with
        respect to any share of Common Stock subject to an Option prior to purchase
        of
        such shares of Common Stock by exercise of the Option. 

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      

      ARTICLE
        VI

      RESTRICTED
        STOCK AWARDS 

      

      Section
        6.1 Grant of Restricted Stock Awards.
        The
        Board may, from time to time, subject to the provisions of the Plan and such
        other terms and conditions as it may determine, grant a Restricted Stock
        Award
        to Eligible Employees, Consultants or Eligible Directors. Restricted Stock
        Awards shall be awarded in such number and at such times during the term
        of the
        Plan as the Board shall determine. Each Restricted Stock Award shall be subject
        to an Award Agreement setting forth the terms of such Restricted Stock Award
        and
        may be evidenced in such manner as the Board deems appropriate, including,
        without limitation, a book-entry registration or issuance of a stock certificate
        or certificates. 

      

      Section
        6.2 Conditions of Restricted Stock Awards.
        The
        grant of a Restricted Stock Award shall be subject to the following:

      

      (a)
        Restriction Period. Restricted Stock Awards granted to an Eligible Employee
        shall require the holder to remain in the employment of the Company, a
        Subsidiary, or an Affiliated Entity for a prescribed period. Restricted Stock
        Awards granted to Consultants or Eligible Directors shall require the holder
        to
        provide continued services to the Company for a period of time. These employment
        and service requirements are collectively referred to as a “Restriction Period”.
        The Board or the Committee, as the case may be, shall determine the Restriction
        Period or Periods which shall apply to the shares of Common Stock covered
        by
        each Restricted Stock Award or portion thereof. In addition to any time vesting
        conditions determined by the Board or the Committee, as the case may be,
        Restricted Stock Awards may be subject to the achievement by the Company
        of
        specified performance criteria based upon the Company’s achievement of all or
        any of the operational, financial or stock performance criteria set forth
        on
        Exhibit A annexed hereto, as may from time to time be established by the
        Board
        or the Committee, as the case may be. At the end of the Restriction Period,
        assuming the fulfillment of any other specified vesting conditions, the
        restrictions imposed by the Board or the Committee, as the case may be shall
        lapse with respect to the shares of Common Stock covered by the Restricted
        Stock
        Award or portion thereof. In addition to acceleration of vesting upon the
        occurrence of a Change of Control Event as provided in Section 11.6, the
        Board
        or the Committee, as the case may be, may, in its discretion, accelerate
        the
        vesting of a Restricted Stock Award in the case of the death, Disability
        or
        Retirement of the Participant who is an Eligible Employee or resignation
        of a
        Participant who is a Consultants or an Eligible Director. 

      

      (b)
        Restrictions. The holder of a Restricted Stock Award may not sell, transfer,
        pledge, exchange, hypothecate, or otherwise dispose of the shares of Common
        Stock represented by the Restricted Stock Award during the applicable
        Restriction Period. The Board shall impose such other restrictions and
        conditions on any shares of Common Stock covered by a Restricted Stock Award
        as
        it may deem advisable including, without limitation, restrictions under
        applicable Federal or state securities laws, and may legend the certificates
        representing Restricted Stock to give appropriate notice of such restrictions.
        

      

      (c)
        Rights as Stockholders. During any Restriction Period, the Board may, in
        its
        discretion, grant to the holder of a Restricted Stock Award all or any of
        the
        rights of a stockholder with respect to the shares, including, but not by
        way of
        limitation, the right to vote such shares and to receive dividends. If any
        dividends or other distributions are paid in shares of Common Stock, all
        such
        shares shall be subject to the same restrictions on transferability as the
        shares of Restricted Stock with respect to which they were paid. 

      

      ARTICLE
        VII

      STOCK
        APPRECIATION RIGHTS 

      

      Section
        7.1 Grant of SARs.
        The
        Board may from time to time, in its sole discretion, subject to the provisions
        of the Plan and subject to other terms and conditions as the Board may
        determine, grant a SAR to any Eligible Employee, Consultant or Eligible
        Director. SARs may be granted in tandem with an Option, in which event, the
        Participant has the right to elect to exercise either the SAR or the Option.
        Upon the Participant’s election to exercise one of these Awards, the other
        tandem Award is automatically terminated. SARs may also be granted as an
        independent Award separate from an Option. Each grant of a SAR shall be
        evidenced by an Award Agreement executed by the Company and the Participant
        and
        shall contain such terms and conditions and
        be in
        such form as the Board may from time to time approve, subject to the
        requirements of the Plan. The exercise price of the SAR shall not be less
        than
        the Fair Market Value of a share of Common Stock on the Date of Grant of
        the
        SAR. 

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      Section
        7.2 Exercise and Payment.
        SARs
        granted under the Plan shall be exercisable in whole or in installments and
        at
        such times as shall be provided by the Board in the Award Agreement. Exercise
        of
        a SAR shall be by written notice to the Secretary of the Company at least
        two
        business days in advance of such exercise. The amount payable with respect
        to
        each SAR shall be equal in value to the excess, if any, of the Fair Market
        Value
        of a share of Common Stock on the exercise date over the exercise price of
        the
        SAR. Payment of amounts attributable to a SAR shall be made in shares of
        Common
        Stock. 

      

      Section
        7.3 Restrictions.
        In the
        event a SAR is granted in tandem with an Incentive Stock Option, the Board
        shall
        subject the SAR to restrictions necessary to ensure satisfaction of the
        requirements under Section 422 of the Code. In the case of a SAR granted
        in
        tandem with an Incentive Stock Option to an Eligible Employee who owns more
        than
        10% of the combined voting power of the Company or its Subsidiaries on the
        date
        of such grant, the amount payable with respect to each SAR shall be equal
        in
        value to the applicable percentage of the excess, if any, of the Fair Market
        Value of a share of Common Stock on the Exercise date over the exercise price
        of
        the SAR, which exercise price shall not be less than 110% of the Fair Market
        Value of a share of Common Stock on the date the SAR is granted. 

      

      ARTICLE
        VIII

      PERFORMANCE
        UNITS 

      

      Section
        8.1 Grant of Awards.
        The
        Board may, from time to time, subject to the provisions of the Plan and such
        other terms and conditions as it may determine, grant Performance Units to
        Eligible Employees, Consultants and Eligible Directors. Each Award of
        Performance Units shall be evidenced by an Award Agreement executed by the
        Company and the Participant, and shall contain such terms and conditions
        and be
        in such form as the Board may from time to time approve, subject to the
        requirements of Section 8.2. 

      

      Section
        8.2 Conditions of Awards.
        Each
        Award of Performance Units shall be subject to the following conditions:
        

      

      (a)
        Establishment of Award Terms. Each Award shall state the target, maximum
        and
        minimum value of each Performance Unit payable upon the achievement of
        performance goals. 

      

      (b)
        Achievement of Performance Goals. The Board shall establish performance targets
        for each Award for a period of no less than a year based upon some or all
        of the
        operational, financial or performance criteria listed in Exhibit A attached.
        The
        Board shall also establish such other terms and conditions as it deems
        appropriate to such Award. The Award may be paid out in cash or Common Stock
        as
        determined in the sole discretion of the Board. 

      

      ARTICLE
        IX

      PERFORMANCE
        BONUS 

      

      Section
        9.1 Grant of Performance Bonus.
        The
        Board may from time to time, subject to the provisions of the Plan and such
        other terms and conditions as the Board may determine, grant a Performance
        Bonus
        to certain Eligible Employees selected for participation. The Board will
        determine the amount that may be earned as a Performance Bonus in any period
        of
        one year or more upon the achievement of a performance target established
        by the
        Board. The Board shall select the applicable performance target(s) for each
        period in which a Performance Bonus is awarded. The performance target shall
        be
        based upon all or some of the operational, financial or performance criteria
        more specifically listed in Exhibit A attached. 

      

      Section
        9.2 Payment of Performance Bonus.
        In
        order for any Participant to be entitled to payment of a Performance Bonus,
        the
        applicable performance target(s) established by the Board must first be obtained
        or exceeded. Payment of a Performance Bonus shall be made within 60 days
        of the
        Board’s certification that the performance target(s) has been achieved unless
        the Participant has previously elected to defer payment pursuant to a
        nonqualified deferred compensation plan adopted by the Company. Payment of
        a
        Performance Bonus may be made in either cash or Common Stock as determined
        in
        the sole discretion of the Board. 

      

        
          
             

          

          
            7

            
              

            

          

          
             

          

        

      

       

      ARTICLE
        X

      STOCK
        ADJUSTMENTS 

       

      In
        the
        event that the shares of Common Stock, as constituted on the effective date
        of
        the Plan, shall be changed into or exchanged for a different number or kind
        of
        shares of stock or other securities of the Company or of another corporation
        (whether by reason of asset acquisition, consolidation, recapitalization,
        reclassification, stock split, spin-off, combination of shares or otherwise),
        or
        if the number of such shares of Common Stock shall be increased through the
        payment of a stock dividend, or a dividend on the shares of Common Stock,
        or if
        rights or warrants to purchase securities of the Company shall be issued
        to
        holders of all outstanding Common Stock, then there shall be substituted
        for or
        added to each share available under and subject to the Plan, and each share
        theretofore appropriated under the Plan, the number and kind of shares of
        stock
        or other securities into which each outstanding share of Common Stock shall
        be
        so changed or for which each such share shall be exchanged or to which each
        such
        share shall be entitled, as the case may be, on a fair and equivalent basis
        in
        accordance with the applicable provisions of Section 424 of the Code; provided,
        however, with respect to Options, in no such event will such adjustment result
        in a modification of any Option as defined in Section 424(h) of the Code.
        In the
        event there shall be any other change in the number or kind of the outstanding
        shares of Common Stock, or any stock or other securities into which the Common
        Stock shall have been changed or for which it shall have been exchanged,
        then if
        the Board shall, in its sole discretion, determine that such change equitably
        requires an adjustment in the shares available under and subject to the Plan,
        or
        in any Award, theretofore granted, such adjustments shall be made in accordance
        with such determination, except that no adjustment of the number of shares
        of
        Common Stock available under the Plan or to which any Award relates that
        would
        otherwise be required shall be made unless and until such adjustment either
        by
        itself or with other adjustments not previously made would require an increase
        or decrease of at least 1% in the number of shares of Common Stock available
        under the Plan or to which any Award relates immediately prior to the making
        of
        such adjustment (the “Minimum Adjustment”). Any adjustment representing a change
        of less than such minimum amount shall be carried forward and made as soon
        as
        such adjustment together with other adjustments required by this Article
        X and
        not previously made would result in a Minimum Adjustment. Notwithstanding
        the
        foregoing, any adjustment required by this Article X which otherwise would
        not
        result in a Minimum Adjustment shall be made with respect to shares of Common
        Stock relating to any Award immediately prior to exercise, payment or settlement
        of such Award. No fractional shares of Common Stock or units of other securities
        shall be issued pursuant to any such adjustment, and any fractions resulting
        from any such adjustment shall be eliminated in each case by rounding downward
        to the nearest whole share. 

      

      ARTICLE
        XI

      GENERAL
        

      

      Section
        11.1 Amendment or Termination of Plan.
        The
        Board may alter, suspend or terminate the Plan at any time provided, however,
        that it may not, without stockholder approval, adopt any amendment which
        would
        (i) increase the aggregate number of shares of Common Stock available under
        the
        Plan (except by operation of Article X), (ii) materially modify the requirements
        as to eligibility for participation in the Plan, or (iii) materially increase
        the benefits to Participants provided by the Plan. 

      

      Section
        11.2 Termination of Employment; Termination of Service.
        If an
        Eligible Employee’s employment with the Company, a Subsidiary or an Affiliated
        Entity terminates as a result of death, Disability or Retirement, the Eligible
        Employee (or personal representative in the case of death) shall be entitled
        to
        purchase all or any part of the shares subject to any (i) vested Incentive
        Stock
        Option for a period of up to three months from such date of termination (one
        year in the case of death or Disability (as defined above) in lieu of the
        three-month period), and (ii) vested Nonqualified Stock Option during the
        remaining term of the Option. If an Eligible Employee’s employment terminates
        for any other reason, the Eligible Employee shall be entitled to purchase
        all or
        any part of the shares subject to any vested Option for a period of up to
        three
        months from such date of termination. In no event shall any Option be
        exercisable past the term of the Option. The Board may, in its sole discretion,
        accelerate the vesting of unvested Options in the event of termination of
        employment of any Participant. 

      

      In
        the
        event a Consultant ceases to provide services to the Company or an Eligible
        Director terminates service as a director of the Company, the unvested portion
        of any Award shall be forfeited unless otherwise accelerated pursuant to
        the
        terms of the Eligible Director’s Award Agreement or by the Board. The Consultant
        or Eligible Director shall have a period of three years following the date
        he
        ceases to provide consulting services or ceases to be a director, as applicable,
        to exercise any Nonqualified Stock Options which are otherwise exercisable
        on
        his date of termination of service. 

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      Section
        11.3 Limited Transferability — Options.
        The
        Board may, in its discretion, authorize all or a portion of the Nonqualified
        Stock Options granted under this Plan to be on terms which permit transfer
        by
        the Participant to (i) the ex-spouse of the Participant pursuant to the terms
        of
        a domestic relations order, (ii) the spouse, children or grandchildren of
        the
        Participant (“Immediate Family Members”), (iii) a trust or trusts for the
        exclusive benefit of such Immediate Family Members, or (iv) a partnership
        or
        limited liability company in which such Immediate Family Members are the
        only
        partners or members. In addition, there may be no consideration for any such
        transfer. The Award Agreement pursuant to which such Nonqualified Stock Options
        are granted expressly provide for transferability in a manner consistent
        with
        this paragraph. Subsequent transfers of transferred Nonqualified Stock Options
        shall be prohibited except as set forth below in this Section 11.3. Following
        transfer, any such Nonqualified Stock Options shall continue to be subject
        to
        the same terms and conditions as were applicable immediately prior to transfer,
        provided that for purposes of Section 11.2 hereof the term “Participant” shall
        be deemed to refer to the transferee. The events of termination of employment
        of
        Section 11.2 hereof shall continue to be applied with respect to the original
        Participant, following which the Nonqualified Stock Options shall be exercisable
        by the transferee only to the extent, and for the periods specified in Section
        11.2 hereof. No transfer pursuant to this Section 11.3 shall be effective
        to
        bind the Company unless the Company shall have been furnished with written
        notice of such transfer together with such other documents regarding the
        transfer as the Board shall request. With the exception of a transfer in
        compliance with the foregoing provisions of this Section 11.3, all other
        types
        of Awards authorized under this Plan shall be transferable only by will or
        the
        laws of descent and distribution; however, no such transfer shall be effective
        to bind the Company unless the Board has been furnished with written notice
        of
        such transfer and an authenticated copy of the will and/or such other evidence
        as the Board may deem necessary to establish the validity of the transfer
        and
        the acceptance by the transferee of the terms and conditions of such Award.
        

      

      Section
        11.4 Withholding Taxes.
        Unless
        otherwise paid by the Participant, the Company, its Subsidiaries or any of
        its
        Affiliated Entities shall be entitled to deduct from any payment under the
        Plan,
        regardless of the form of such payment, the amount of all applicable income
        and
        employment taxes required by law to be withheld with respect to such payment
        or
        may require the Participant to pay to it such tax prior to and as a condition
        of
        the making of such payment. In accordance with any applicable administrative
        guidelines it establishes, the Board may allow a Participant to pay the amount
        of taxes required by law to be withheld from an Award by (i) directing the
        Company to withhold from any payment of the Award a number of shares of Common
        Stock having a Fair Market Value on the date of payment equal to the amount
        of
        the required withholding taxes or (ii) delivering to the Company previously
        owned shares of Common Stock having a Fair Market Value on the date of payment
        equal to the amount of the required withholding taxes. However, any payment
        made
        by the Participant pursuant to either of the foregoing clauses (i) or (ii)
        shall
        not be permitted if it would result in an adverse accounting charge with
        respect
        to such shares used to pay such taxes unless otherwise approved by the Board.
        

      

      Section
        11.5 Change of Control.
        Notwithstanding any other provision in this Plan to the contrary, Awards
        granted
        under the Plan to any Eligible Employee, Consultant or Eligible Director
        shall
        be immediately vested, fully earned and exercisable upon the occurrence of
        a
        Change of Control Event. 

      

      Section
        11.6 Amendments to Awards.
        Subject
        to the limitations of Article IV, such as the prohibition on repricing of
        Options, the Board may at any time unilaterally amend the terms of any Award
        Agreement, whether or not presently exercisable or vested, to the extent
        it
        deems appropriate. However, amendments which are adverse to the Participant
        shall require the Participant’s consent. 

      

      Section
        11.7 Registration; Regulatory Approval.
        Following approval of the Plan by the stockholders of the Company as provided
        in
        Section 1.2 of the Plan, the Board, in its sole discretion, may determine
        to
        file with the Securities and Exchange Commission and keep continuously
        effective, a Registration Statement on Form S-8 with respect to shares of
        Common
        Stock subject to Awards hereunder. Notwithstanding anything contained in
        this
        Plan to the contrary, the Company shall have no obligation to issue shares
        of
        Common Stock under this Plan prior to the obtaining of any approval from,
        or
        satisfaction of any waiting period or other condition imposed by, any
        governmental agency which the Board shall, in its sole discretion, determine
        to
        be necessary or advisable. 

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

      Section
        11.8 Right to Continued Employment.
        Participation in the Plan shall not give any Eligible Employee any right
        to
        remain in the employ of the Company, any Subsidiary, or any Affiliated Entity.
        The Company or, in the case of employment with a Subsidiary or an Affiliated
        Entity, the Subsidiary or Affiliated Entity reserves the right to terminate
        any
        Eligible Employee at any time. Further, the adoption of this Plan shall not
        be
        deemed to give any Eligible Employee or any other individual any right to
        be
        selected as a Participant or to be granted an Award. 

      

      Section
        11.9 Reliance on Reports.
        Each
        member of the Board and each member of the Board shall be fully justified
        in
        relying or acting in good faith upon any report made by the independent public
        accountants of the Company and its Subsidiaries and upon any other information
        furnished in connection with the Plan by any person or persons other than
        himself or herself. In no event shall any person who is or shall have been
        a
        member of the Board be liable for any determination made or other action
        taken
        or any omission to act in reliance upon any such report or information or
        for
        any action taken, including the furnishing of information, or failure to
        act, if
        in good faith. 

      

      Section
        11.10 Construction.
        Masculine pronouns and other words of masculine gender shall refer to both
        men
        and women. The titles and headings of the sections in the Plan are for the
        convenience of reference only, and in the event of any conflict, the text
        of the
        Plan, rather than such titles or headings, shall control. 

      

      Section
        11.11 Governing Law.
        The
        Plan shall be governed by and construed in accordance with the laws of the
        State
        of Delaware except as superseded by applicable Federal law. 

      

      Section
        11.12 Other Laws.
        The
        Board may refuse to issue or transfer any shares of Common Stock or other
        consideration under an Award if, acting in its sole discretion, it determines
        that the issuance or transfer of such shares or such other consideration
        might
        violate any applicable law or regulation or entitle the Company to recover
        the
        same under Section 16(b) of the Exchange Act, and any payment tendered to
        the
        Company by a Participant, other holder or beneficiary in connection with
        the
        exercise of such Award shall be promptly refunded to the relevant Participant,
        holder or beneficiary. 

      

      Section
        11.13 No Trust or Fund Created.
        Neither
        the Plan nor an Award shall create or be construed to create a trust or separate
        fund of any kind or a fiduciary relationship between the Company and a
        Participant or any other person. To the extent that a Participant acquires
        the
        right to receive payments from the Company pursuant to an Award, such right
        shall be no greater than the right of any general unsecured creditor of the
        Company. 

      

      Section
        11.14 Conformance to Section 409A of the Code.
        To the
        extent that the Committee determines that any Award granted under the Plan
        is
        subject to Section 409A of the Code, the Award Agreement evidencing such
        Award
        shall incorporate the terms and conditions required by Section 409A of the
        Code.
        To the extent applicable, the Plan and Award Agreements shall be interpreted
        in
        accordance with Section 409A of the Code and Department of Treasury regulations
        and other interpretive guidance issued thereunder, including without limitation
        any such regulations or other guidance that may be issued after the Effective
        Date. Notwithstanding any provision of the Plan to the contrary, in the event
        that the Committee determines that any Award may be subject to Section 409A
        of
        the Code and related Department of Treasury guidance, the Committee may adopt
        such amendments to the Plan and the applicable Award Agreement or adopt other
        policies and procedures (including amendments, policies and procedures with
        retroactive effect), or take any other actions, that the Committee determines
        are necessary or appropriate to (i) exempt the Award from Section 409A of
        the
        Code or (ii) comply with the requirements of Section 409A of the Code and
        related Department of Treasury guidance. 

      

      
        
           

        

        
          10

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