Document:

S-8

Exhibit 4.1  

	 	Cimatron Ltd.

11 Gush Etzion St.

 Givat Shmuel 54030, Israel

Tel. (972) 3-531-2121

Fax. (972) 3-531-2192

2004 SHARE OPTION AND 

RESTRICTED SHARES
INCENTIVE PLAN 

ADOPTED BY THE BOARD:
OCTOBER, 2004 

APPROVED BY THE
SHAREHOLDERS: OCTOBER, 2004 

CIMATRON LTD. 

2004 SHARE OPTION AND 

RESTRICTED SHARES INCENTIVE PLAN 

Unless otherwise defined,
capitalized terms used herein shall have the meaning ascribed to them in Section 2 hereof.  

	1.  	PURPOSE;
TYPES OF AWARDS; CONSTRUCTION. 

	 	1.1. 	Purpose.
The purpose of the CIMATRON LTD. 2004 Share Option and                Restricted Shares
Incentive Plan (the “Plan”) is to afford an                incentive to
selected Employees, Directors, Office Holders, service providers                and
Consultants of CIMATRON LTD. (the “Company”), or any
               “employing company” (“Affiliated Company”)
               within the meaning of Section 102(a) of the Ordinance, which now exists or
               hereafter is organized or acquired by the Company, to acquire a
proprietary                interest in the Company in order to increase the efforts of
the Company’s                Employees, Directors, Office Holders, service providers
and Consultants on                behalf of the Company, and to promote the success of
the Company’s                business. 

	 	1.2. 	Types
of Awards. The Plan is intended to enable the Company to issue                Awards
under varying tax regimes, including without limitation (i) as                “incentive
stock options” (“Incentive Share Options”)                within
the meaning of Section 422 of the United States Internal Revenue Code of
               1986, as amended (the “Code”); (ii) Nonqualified Share
Options                (as defined below); (iii) restricted Shares (“Restricted
“Share”) under the Plan; (iv) pursuant and subject to the
               provisions of Section 102 (“102 Share Options”), provided
that,                unless otherwise provided by law, all Options granted to Employees
of the                Company or its Affiliated Companies in Israel shall be issued only
under Section                102 in the “regular income (“peroti”) route;
(v) pursuant to                Section 3(9) of the Ordinance (“3(9) Share Options”),
provided                that, unless otherwise provided by law, no Options shall be
granted under                Section 3(9) to Employees of the Company or its Affiliated
Companies in Israel                (all 102 Share Options, 3(9) Share Options, Incentive
Share Options and                Non-Qualified Share Options, as well as options issued
under other tax regimes                collectively, the “Options”); and
(vi) other Share-based Awards                pursuant to Section 12 hereof. Apart from
issuance under the relevant tax                regimes of the State of Israel and the
United States of America, the Plan                contemplates issuances to Grantees (as
defined below) in other jurisdictions                with respect to which the Board (as
defined below) is empowered to make the                requisite adjustments in the Plan
and set forth the relevant conditions in the                Company’s agreements
with the Grantees in order to comply with the                requirements of the tax
regimes in any such other jurisdictions. Section 102(7)                of the Ordinance
applies to this Plan and the Employees, Office Holders and                Directors
eligible for 102 Share Options. 

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	 	1.3. 	Construction.
To the extent any provision herein conflicts with the                conditions of any
relevant tax law or regulation which are relied upon for tax                relief in
respect of a particular Option or Share granted to a Grantee, the
               provisions of said law or regulation shall prevail over those of the Plan,
and                the Board (as defined below) is empowered hereunder to interpret and
enforce the                said prevailing provisions. The Plan contemplates the issuance
of Awards by the                Company, both as a private company and, to the extent
applicable, as a publicly                traded company. 

	2.  	DEFINITIONS. 

	 	
As
used in this Plan, the following words and phrases shall have the meanings ascribed to
them in this Section 2: 

	 	2.1. 	“Award” shall
mean any share, Option, Restricted Shares or any                     other Share-based
award, granted to a Grantee under the Plan and any share                     issued
pursuant to the exercise of an Option. 

	 	2.2. 	“Approved
102 Option” means an Option granted pursuant to                     Section
102(b) of the Ordinance and held in trust by a Trustee for the benefit
                    of the Grantee. 

	 	2.3. 	“Board” shall
mean the Board of Directors of the Company. 

	 	2.4. 	“Consultant” means
any person, including an advisor,                     engaged by the Company, or an
Affiliated Company thereof, to render consulting                     or advisory
services, and who is compensated for such services. 

	 	2.5.	“Controlling
Shareholder” means a controlling shareholder                     (Ba’al
Shlita) as such term is defined in Section 32(9) of the
                    Ordinance. 

	 	2.6.	“Date
of Grant” shall mean the date specified in the Notice of
                    Share Option Grant. 

	 	2.7.	 “Director” means
a member of the Board. 

	 	2.8. 	“Disability” shall
mean, unless otherwise specified in the                     Option Agreement, a Grantee’s
inability to perform his duties to the                     Company, or any of its
Affiliated Companies, by reason of any medically                     determinable
physical or mental impairment, as determined by a physician                     selected
by the Grantee and acceptable to the Company. 

	 	2.9.	“Employee” means
any person employed by the Company or an                     Affiliated Company thereof. 

	 	2.10. 	“Exercise
Period” shall mean the period during which the Option                     shall
be exercisable. 

	 	2.11. 	“Exercise
Price” shall mean the amount for which one Share may                     be
purchased upon exercise of an Award, as specified in the Notice of Share
                    Option Grant. 

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	 	2.12. 	“Fair
Market Value” per share as of a particular date shall                     mean
(i) if the Shares are traded on a securities exchange, including without
                    limitation the Nasdaq Stock Market, the closing sales price per Share
on the                     securities exchange on which the Shares are principally traded
for the last                     preceding date on which there was a sale of such Shares
on such exchange; or                     (ii) if the Shares are then traded in an
over-the-counter market, the average of                     the closing bid and asked
prices for the Shares in such over-the-counter market                     for the last
preceding date on which there was a sale of such Shares in such
                    market; or (iii) if the Shares are not then listed on a securities
exchange or                     market or traded in an over-the-counter market, such
value as the Board, in its                     sole discretion, shall determine, which
determination shall be conclusive and                     binding on all parties. Without
derogating from the above, solely for the                     purpose of determining the
tax liability pursuant to Section 102(b)(3) of the                     Ordinance, if at
the Date of Grant the Company’s shares are listed on any
                    established stock exchange or a national market system or if the
Company’s                     shares will be registered for trading within ninety
(90) days following the Date                     of Grant, the Fair Market Value of a
Share at the Date of Grant shall be                     determined in accordance with the
provisions of Section 102(b)(3) of the                     Ordinance. 

	 	2.13. 	“Grantee” shall
mean a person who receives a grant of Options,                     Restricted Shares,
Shares or other Awards under the Plan, who at the time of                     grant is an
Employee, Office Holder, Director, service provider or Consultant of
                    the Company or any Affiliated Companies of the Company. 

	 	2.14. 	“ITA” means
the Israeli Tax Authorities. 

	 	2.15. 	“Nonqualified
Share Option” shall mean any Option granted to a                     U.S.
resident, which Option is not designated as, or does not meet the
                    conditions for, an Incentive Share Option. 

	 	2.16. 	“Office
Holder” shall mean any office holder (“nose                     misra”)
as defined in the Israeli Companies Law – 1999, as                     amended. 

	 	2.17. 	“Ordinance” shall
mean the Israeli Income Tax Ordinance (New                     Version) 1961, as amended,
including, without limitation, by the revisions                     enacted effective
January 1, 2003, and any regulations, rules, orders or                     procedures
promulgated thereunder. 

	 	2.18. 	“Parent” shall
mean any company (other than the Company) in an                     unbroken chain of
companies ending with the Company if, at the time of granting                     an
Award, each of the companies, other than the Company, owns share possessing
                    fifty percent (50%) or more of the total combined voting power of all
classes of                     share in one of the other companies in such chain. 

	 	2.19. 	“Retirement” shall
mean a Grantee’s retirement pursuant to                     applicable law or in
accordance with the terms of any tax-qualified retirement                     plan
maintained by the Company, or any of its affiliates, in which the Grantee
                    participates. 

	 	2.20. 	“Section
102” shall mean Section 102 of the Ordinance and any
                    regulations, rules, orders or procedures promulgated thereunder. 

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	 	2.21. 	“Shares” shall
mean Ordinary Shares, par value of NIS 0.10                     each, of the Company. 

	 	2.22. 	“Ten
Percent Shareholder” shall mean a Grantee who, at the time
                    that an Incentive Share Option is granted, owns shares possessing
more than ten                     percent (10%) of the total combined voting power of all
classes of share of the                     Company or any Parent or Affiliated
Companies. 

	 	2.23. 	“Trustee” shall
mean the trustee appointed by the Board in                     accordance with the
provisions of the Ordinance or other applicable law, as the                     case may
be, and approved by the ITA, to hold in trust the respective Options,
                    Restricted Shares and/or Shares, if so appointed. 

	 	2.24. 	“Unapproved
102 Option” means an Option granted pursuant to                     Section
102(c) of the Ordinance and not held in trust by a Trustee. 

	3.  	ADMINISTRATION. 

	 	3.1. 	To
the extent permitted under applicable law, the Plan shall be administered by
                    the Board. The Board may appoint a committee from its members to
administer                     certain aspects of the Plan. 

	 	3.2. 	Subject
to applicable law, all decisions, determination and interpretations of
                    the Board shall be final and binding on all Grantees of any Awards
under this                     Plan. No member of the Board shall be liable for any
action taken or                     determination made in good faith with respect to the
Plan or any Award granted                     hereunder. 

	 	3.3. 	The
Board shall have the authority in its discretion to administer the Plan and
                    to exercise all power and authority specifically granted to it under
the Plan or                     take any actions necessary or advisable in the
administration of the Plan,                     including, without limitation: 

	 	3.3.1. 	the
authority to grant Options, Restricted Share and Shares or other Awards;  

	 	3.3.2. 	to
designate the type of Options (whether 102 Share Options, 3(9) Share Options,
                    Incentive Share Options, Nonqualified Share Options or  otherwise;

	 	3.3.3. 	to
effect the elected “ordinary income (“pairoti”)”               treatment
under Section 102– The ordinary income                (“pairoti”)
in accordance with the provisions of Section                102(b)(1) of the Ordinance
– shall be adopted for the purposes of the Plan                under Section 102 of
the Ordinance;  

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	 	3.3.4. 	to
appoint a Trustee, if the Board deems it necessary, prudent or advisable;  

	 	3.3.5. 	to
determine the Exercise Price of the Shares covered by each Option;  

	 	3.3.6. 	to
determine the Grantees to whom, and the time or times at which Awards shall
               be granted;  

	 	3.3.7. 	to
determine the number of Shares to be covered by each Award;  

	 	3.3.8. 	to
interpret the Plan;  

	 	3.3.9. 	to
prescribe, amend and rescind rules and regulations relating to the Plan;  

	 	3.3.10. 	to
determine the terms and provisions of the Option Agreements (which need not
               be identical), and to cancel or suspend Awards, as necessary; and  

	 	3.3.11. 	to
make all other determinations deemed necessary or advisable for the
               administration of the Plan, including to adjust the terms of the Plan or
any                Option Agreement so as to reflect (i) changes in applicable Israeli,
U.S. or                other laws respectively, and (ii) the laws of other jurisdictions
within which                the Company wishes to grant Awards.  

	4.  	ELIGIBILITY.
102 Share Options may be granted only to Employees and Office                Holders who
are not Controlling Shareholders. Other Awards (other than 102 Share
               Options) may be granted to Employees and Directors (that are Controlling
               Shareholders), Office Holders, Consultants and service providers,
provided,                however, that any member of the Board shall be eligible to
receive Awards under                the Plan while serving on the Board, unless otherwise
specified herein. A person                who has been granted an Award hereunder may be
granted additional Awards, if the                Board shall so determine. In determining
the persons to whom Awards shall be                granted and the number of Shares to be
covered by each Award, the Board shall                take into account the duties of the
respective persons, their present and                potential contributions to the
success of the Company and such other factors as                the Board shall deem
relevant in connection with accomplishing the purpose of                the Plan. 

	5.  	SHARES. 

	 	5.1. 	The
maximum number of Shares reserved for the grant of Awards under the Plan
               shall initially be 240,000, and as shall be further resolved by the Board,
from                time to time. Such Shares may, in whole or in part, be authorized but
unissued                Shares or Shares that shall have been or may be reacquired by the
Company. Any                of such Shares which may remain unissued and which are not
subject to                outstanding options at the termination of the Plan shall cease
to be reserved                for the purpose of the Plan, but until termination of the
Plan, the Company                shall at all times reserve a sufficient number of Shares
to meet the                requirements of the Plan. 

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	 	5.2. 	If
any outstanding Award under the Plan should, for any reason, expire, be
               canceled or be forfeited without having been exercised in full, the Shares
               subject to the unexercised, canceled or terminated portion of such Award
shall                (unless the Plan shall have been terminated) become available for
subsequent                grants of Awards under the Plan. 

	6.  	TERMS
AND CONDITIONS OF OPTIONS. Each Option granted pursuant to the Plan shall
               be evidenced by a written agreement between the Company and the Grantee
(the                “Option Agreement”), in such form and containing
such terms and                conditions as the Board shall from time to time approve,
which Option Agreement                shall comply with and be subject to the following
terms and conditions, unless                otherwise specifically provided in such
Option Agreement. For purposes of                interpreting this Section 6, a
Director’s service as a member of                the Board or the services of an
Office Holder, as the case may be, shall be                deemed to be employment with
the Company. 

	 	6.1. 	Number
of Shares. Each Option Agreement shall state the number of Shares                to
which the Option relates. 

	 	6.2. 	Type
of Option. Each Option Agreement shall specifically state the type                of
Option granted thereunder and whether it constitutes a 102 Share Option, 3(9)
               Share Option, Incentive Share Option, Nonqualified Share Option or
otherwise,                and in the event that it constitutes a 102 Share Option, the
Option Agreement                shall also state that it was granted pursuant to the
regular income treatment                and whether it was granted with or without a
Trustee. 

	 	6.3. 	Exercise
Price. Each Option Agreement shall state the Exercise Price,                which, in
the case of an Incentive Share Option, shall not be less than one                hundred
percent (100%) of the Fair Market Value of the Shares covered by the
               Option on the Date of Grant or such other amount as may be required
pursuant to                the Code. In the case of a Nonqualified Share Option granted
to any Grantee,                other than a Ten-Percent Shareholder, the per Share
Exercise Price shall be no                less than 95% of the Fair Market Value of the
Shares covered by the Option on                the Date of Grant. In the case of an
Incentive Share Option granted to any                Ten-Percent Shareholder, the
Exercise Price shall be no less than 110% of the                Fair Market Value of the
Shares covered by the Option on the Date of Grant. In                no event shall the
Exercise Price of an Option be less than the par value of the                Shares for
which such Option is exercisable. The Exercise Price shall also be                subject
to adjustment as provided in Section 13 hereof. 

	 	6.4. 	Manner
of Exercise. An Option may be exercised, as to any or all whole                Shares
as to which the Option has become exercisable, by written notice                delivered
in person or by mail to the Chief Executive Officer of the Company,
               specifying the number of Shares with respect to which the Option is being
               exercised, along with payment of the Exercise Price for such Shares in the
               manner specified in the following sentence. The Exercise Price shall be
paid in                full with respect to each Share, at the time of exercise in cash
or otherwise as                may be determined by the Board. 

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	 	6.5. 	Exercise
Period and Vesting Schedule. Each Option Agreement shall provide                the
vesting schedule for the Option as determined by the Board. Unless otherwise
               resolved by the Board and stated in the Option Agreement, Options shall
vest and                become exercisable during a three (3) years vesting schedule as
follows: (i)                thirty three percent (33%) of the Shares covered by the
Option shall vest and                become exercisable on the first anniversary of the
date on which such Option is                granted; and (ii) sixteen and one-half
percent (16.5%) of the Shares covered by                the Option shall vest and become
exercisable at the end of each subsequent six                months period over the
course of the following two (2) years of continued                employment by, or
service for, the Company or its Affiliated Companies. The                Board, in its
absolute discretion, may, on such terms and conditions as it may                determine
to be appropriate, accelerate or otherwise change the time and vesting
               schedule at which an Option or any portion thereof (whether outstanding or
               granted) may be exercised. The Option Agreement may contain performance
goals                and measurements, and the provisions with respect to any Option need
not be the                same as the provisions with respect to any other Option. The
Exercise Period                will be ten (10) years from the date of the grant of the
Option, or such earlier                period resulting from termination under Sections
6.6 or 6.7, in                each case, unless otherwise determined by
the Board; provided, however, that in                the case of a grant of an Incentive
Share Option to a Ten Percent Shareholder,                such Exercise Period shall not
exceed five (5) years from the Date of Grant of                such Option. 

	 	6.6. 	Termination. 

	 	6.6.1. 	Except
as provided in this Section 6.6 and in Section 6.7                hereof,
an Option may not be exercised unless the Grantee is then in the employ
               of, or maintaining a Director, Office Holder, service provider or
Consultant                relationship with the Company, or an Affiliated Company
thereof, issuing or                assuming the Option in a transaction to which Section
424(a) of the Code                applies, and unless the Grantee has remained
continuously so employed or in the                Director, Office Holder, service
provider or Consultant relationship since the                Date of Grant of the Option.
In the event that the employment or Director,                Office Holder, service
provider or Consultant relationship of a Grantee shall                terminate (other
than by reason of death, Disability or Retirement), all Options                of such
Grantee that are vested and exercisable at the time of such termination
               may, unless earlier terminated in accordance with their terms, be
exercised                within ninety (90) days after the date of such termination (or
such different                period as the Board shall prescribe); provided, however,
that if the Company                shall terminate the Grantee’s employment for
Cause (as defined below) (as                determined by the Board), all Options
theretofore granted to such Grantee                (whether vested or not) shall, to the
extent not theretofore exercised,                terminate on the date of such
termination or cessation of employment or                performance of services, unless
otherwise determined by the Board. In the case                of a Grantee whose
principal employer is an Affiliated Company, the                Grantee’s employment
shall also be deemed to be terminated for purposes of                this Section 6.6
as of the date on which such principal employer ceases                to be an Affiliated
Company.  

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	 	6.6.2. 	Notwithstanding
anything to the contrary, the Board, in its absolute discretion                may, on
such terms and conditions as it may determine appropriate, extend the
               periods for which the Options held by any individual may continue to vest
and be                exercisable; provided, that such Options may lose their status as
Incentive                Share Options under applicable law and be deemed Nonqualified
Share Options in                the event that the period of vesting and/or
exercisability of any Option is                extended beyond the later of: (i) ninety
(90) days after the date of cessation                of employment or performance of
services; or (ii) the applicable period under                Section 6.7 below.  

	 	6.6.3. 	For
any purpose under this Plan, the Grantee’s employment shall be deemed
               to continue while the Grantee is on a bona fide leave of absence, if such
leave                was approved by the Company in writing and if such writing expressly
provided                that vesting of options will continue.  

	 	6.6.4. 	For
purposes of this Plan, the term “Cause” shall mean any of
               the following resulting from an act or omission of Grantee: (a) fraud,
               embezzlement or felony or similar act; (b) failure to substantially
perform                duties as an Employee or to abide by the general policies of the
Company                applicable to all Employees (including, without limitation,
policies relating to                confidentiality and reasonable workplace conduct);
(c) an act of moral                turpitude, or any similar act, to the extent that such
act causes injury to the                reputation of the Company; (d) any other act or
omission which in the reasonable                opinion of the Company could be
financially injurious to the Company or                injurious to the business
reputation of the Company; (e) any act or omission of                Grantee which is
otherwise defined as “cause” under the Grantees’               employment
or service agreement.  

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	 	6.7. 	Death,
Disability or Retirement of Grantee. If a Grantee shall die while
               employed by, or maintaining a Director, Office Holder, service provider or
               Consultant relationship with, the Company or an Affiliated Company, or
within                ninety (90) days after the date of termination of such Grantee’s
employment                or Director, Office Holder, service provider or Consultant
relationship (or                within such different period as the Board may have
provided pursuant to Section                6.6 hereof), or if the Grantee’s
employment or Director, Office                Holder, service provider or Consultant
relationship shall terminate by reason of                Disability, all Options
theretofore granted to such Grantee (to the extent                otherwise vested and
exercisable as of such date of death or Disability) may,                unless earlier
terminated in accordance with their terms, be exercised by the                Grantee, or
by the Grantee’s estate, or by a person who acquired the right                to
exercise such Options by bequest or inheritance or otherwise by result of
               death or Disability of the Grantee, at any time within one (1) year after
the                death or Disability of the Grantee (or such different period as the
Board shall                prescribe). In the event that an Option granted hereunder
shall be exercised by                the legal representatives of a deceased or former
Grantee, written notice of                such exercise shall be accompanied by a
certified copy of letters testamentary                or equivalent proof of the right of
such legal representative to exercise such                Option. In the event that the
employment or Director, Office Holder, service                provider or Consultant
relationship of a Grantee shall terminate on account of                such Grantee’s
Retirement, all Options of such Grantee that are vested and                exercisable at
the time of such Retirement may, unless earlier terminated in                accordance
with their terms, be exercised at any time within ninety (90) days                after
the date of such Retirement (or such different period as the Board shall
               prescribe). 

	 	6.8. 	Loans.
To the extent permitted under law, the Company or an Affiliated                Company,
may make loans to Grantees as the Board, in its discretion, may                determine
in connection with the exercise of outstanding Options granted under                the
Plan. Such loans shall: (i) be evidenced by promissory notes entered into by
               the Grantees in favor of the Company or an Affiliated Company, as the case
may                be; (ii) be subject to the terms and conditions set forth in this
Section 6.8                and such other terms and conditions, not inconsistent with the
Plan, as the                Board shall determine; (iii) bear interest, if any, at such
rate as the Board                shall determine; and (iv) if so determined by the Board,
shall be at full                recourse and at market terms. The initial term of the
loan, the schedule of                payments of principal and interest under the loan,
the extent to which the loan                is to be with or without recourse against the
Grantee with respect to principal                and/or interest and the conditions upon
which the loan will become payable in                the event of the Grantee’s
termination of employment or ceasing to perform                services shall be
determined by the Board; provided, however, that the term of                the loan
including extensions, shall not exceed 10 years. Unless the Board
               determines otherwise, when a loan shall have been made, Shares having a
Fair                Market Value at least equal to the principal amount of the loan shall
be pledged                by the Grantee to the Company, the relevant Affiliated Company
or to a trustee                appointed by the Company as security for payment of the
unpaid balance of the                loan and such pledge shall be evidenced by a pledge
agreement, the terms of                which shall be determined by the Board, in its
discretion; provided, however,                that each loan shall comply with all
applicable laws. 

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	 	6.9. 	Exchange
of Outstanding Shares. The Board, in its sole discretion, may                permit a
Grantee to (i) surrender to the Company Shares previously acquired by                the
Grantee and/or (ii) request that the Company withhold Shares issuable upon
               exercise of the Option, as part or full payment for the exercise of a
Option.                Such surrendered or withheld Shares shall be valued at their Fair
Market Value                on the date of exercise. Shares credited to a Grantee shall
again be available                for grant under the Plan. 

	 	6.10. 	Other
Provisions. The Option Agreements evidencing Awards under the Plan
               shall contain such other terms and conditions not inconsistent with the
Plan, as                the Board may determine. 

	7.  	NONQUALIFIED
SHARE OPTIONS. Options granted pursuant to this Section 7                are
intended to constitute Nonqualified Share Options and shall be subject to
               the general terms and conditions specified in Section 6 hereof and
other                provisions of the Plan, except for said provisions of the Plan
applying to                Options under a different tax law or regulation. 

	8.  	INCENTIVE
SHARE OPTIONS. Options granted pursuant to this Section 8 are intended                to
constitute Incentive Share Options and shall be subject to both the following
               special terms and conditions and the general terms and conditions
specified in                Section 6 hereof, and other provisions of the Plan,
except for said                provisions of the Plan applying to Options under a
different tax law or                regulation: 

	 	8.1. 	Value
of Shares. The aggregate Fair Market Value (determined as of the                date
the Incentive Share Option is granted) of the Shares with respect to which
               Incentive Share Options granted under this Plan and all other option plans
of                any Affiliated Company become exercisable for the first time by each
Grantee                during any calendar year shall not exceed $100,000 with respect to
such Grantee.                To the extent that the aggregate Fair Market Value of Shares
with respect to                which the Incentive Share Options are exercisable for the
first time by any                Grantee during any calendar years exceeds $100,000, such
Options shall be                treated as Non-Qualified Share Options. The foregoing
shall be applied by taking                options into account in the order in which they
were granted, with the Fair                Market Value of any Share to be determined at
the time of the grant of the                Option. In the event the foregoing results in
the portion of an Incentive Share                Option exceeding the $100,000
limitation, only such excess shall be treated as a                Non-Qualified Share
Option. 

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	 	8.2. 	Ten
Percent Shareholder. In the case of an Incentive Share Option granted
               to a Ten Percent Shareholder, (i) the Exercise Price shall not be less
than one                hundred ten percent (110%) of the Fair Market Value of the Shares
on the Date of                Grant of such Incentive Share Option, and (ii) the Exercise
Period shall not                exceed five (5) years from the Date of Grant of such
Incentive Share Option. 

	9.  	RESTRICTED
SHARES. The Board may award Restricted Shares to any eligible                Employee,
Director, Office Holder or Consultant, including under Section 102 of                the
Ordinance. Each Award of Restricted Shares under the Plan shall be evidenced
               by a written agreement between the Company and the Grantee (the
               “Restricted Shares Agreement”), in such form as the Board
shall                from time to time approve, which Restricted Shares Agreement shall
comply with                and be subject to the following terms and conditions, unless
otherwise                specifically provided in such Agreement: 

	 	9.1. 	Number
of Shares. Each Restricted Shares Agreement shall state the number                of
Restricted Shares to be subject to an Award. 

	 	9.2. 	Restrictions.
Restricted Shares may not be sold, assigned, transferred,                pledged,
hypothecated or otherwise disposed of, except by will or the laws of
               descent and distribution, for such period as the Board shall determine
from the                date on which the Award is granted (the “Restricted Period”).
               The Board may also impose such additional or alternative restrictions and
               conditions on the Restricted Shares, as it deems appropriate including the
               satisfaction of performance criteria. Such performance criteria may
include,                without limitation, sales, earnings before interest and taxes,
return on                investment, earnings per share, any combination of the foregoing
or rate of                growth of any of the foregoing, as determined by the Board.
Certificates for                Shares issued pursuant to Restricted Shares Awards shall
bear an appropriate                legend referring to such restrictions, and any attempt
to dispose of any such                Shares in contravention of such restrictions shall
be null and void and without                effect. During the Restricted Period, such
certificates shall be held in escrow                by an escrow agent appointed by the
Board, or, if a Restricted Share Award is                made pursuant to Section 102, by
the Trustee. In determining the Restricted                Period of an Award the Board
may provide that the foregoing restrictions shall                lapse with respect to
specified percentages of the awarded Shares on successive                anniversaries of
the date of such Award. To the extent required by the Ordinance                or the ITA
of the State of Israel, the Restricted Shares issued pursuant to                Section
102 of the Ordinance shall be issued to the Trustee and the Restricted
               Shares shall be held for the benefit of the Grantee for a period of not
less                than the period required under the Ordinance. 

	 	9.3. 	Adjustment
of Performance Goals. The Board may adjust performance goals                to take
into account changes in law and accounting and tax rules and to make                such
adjustments as the Board deems necessary or appropriate to reflect the
               inclusion or the exclusion of the impact of extraordinary or unusual
items,                events or circumstances. The Board may also adjust the performance
goals by                reducing the amount to be received by any Grantee pursuant to an
Award if and to                the extent that the Board deems it appropriate. 

- 12 -

	 	9.4. 	Forfeiture.
Subject to such exceptions as may be determined by the Board,                if the
Grantee’s continuous employment or Director, Office Holder, service
               provider or Consultant relationship with the Company, or any Affiliated
Company,                shall terminate for any reason prior to the expiration of the
Restricted Period                of an Award, any Shares remaining subject to
restrictions (after taking into                account the provisions of Section 9.6)
shall thereupon be forfeited by                the Grantee and transferred to, and
reacquired by, the Company or an Affiliated                Company at no cost to the
Company or Affiliated Company, subject to all                applicable law. 

	 	9.5. 	Ownership.
During the Restricted Period the Grantee shall possess all                incidents of
ownership of such Shares, subject to Section 9.2, including                the
right to receive dividends with respect to such Shares and to vote such
               Shares (subject to proxy, if in place). 

	 	9.6. 	Accelerated
Lapse of Restrictions. Upon the occurrence of any of the                events listed
in Section 13.2 and subject to Section 13.3, all restrictions then
               outstanding with respect to Restricted Shares awarded hereunder shall
               automatically expire and be of no further force and effect. The Board
shall have                the authority (and the Restricted Share Agreement may so
provide) to cancel all                or any portion of any outstanding restrictions
prior to the expiration of the                Restricted Period with respect to any or
all of the Restricted Shares awarded on                such terms and conditions as the
Board shall deem appropriate. 

	10.  	102
SHARE OPTIONS. 

	 	10.1. 	Options
granted pursuant to this Section 10 are intended to constitute 102 Share
               Options and subject to Section 102 of the Ordinance and the rules and
               regulations promulgated thereunder, as amended, the general terms and
conditions                specified in Section 6 hereof and other provisions of
the Plan, except                for said provisions of the Plan applying to Options under
a different tax law or                regulation, shall apply. The Company shall indicate
in the Notice of Share                Option Grant given to each Grantee that the grant
of any particular 102 Share                Option is granted pursuant to the income (pairoti)
treatment, pursuant to                a decision of the Board. 

	 	10.2. 	Approved
102 Options, which shall be granted under the Plan, and/or any Shares
               allocated or issued upon exercise of such Approved 102 Options, and/or
other                shares received subsequently following any realization of rights,
including                without limitation bonus shares, shall be allocated or issued to
the Trustee and                held for the benefit of the Grantees for such period of
time as required by                Section 102 (the “Holding Period”).
In case the requirements                for Approved 102 Options are not met, then the
Approved 102 Options may be                treated as Unapproved 102 Options, all in
accordance with the provisions of                Section 102. 

	 	10.3. 	Notwithstanding
anything to the contrary, the Trustee shall not release any                Shares
allocated or issued upon exercise of Approved 102 Options prior to the
               full payment of the Grantee’s tax liabilities arising from Approved
102                Options, which were granted to him and/or any Shares allocated or
issued upon                exercise of such Options. 

- 13 -

	 	10.4. 	With
respect to any Approved 102 Option, subject to the provisions of Section
               102, a Grantee shall not sell or release from trust any Share received
upon the                exercise of an Approved 102 Option and/or any share received
subsequently                following any realization of rights, including without
limitation, bonus shares,                until the lapse of the Holding Period required
under Section 102.                Notwithstanding the above, if any such sale or release
occurs during the Holding                Period, the sanctions under Section 102 shall
apply to and shall be borne by                such Grantee. 

	 	10.5. 	Upon
receipt of Approved 102 Option, at the request of the Trustee, Grantee will
               sign an undertaking to release the Trustee from any liability in respect
of any                action or decision duly taken and bona fide executed in relation
with the Plan,                or any Approved 102 Option or share granted to him
thereunder. 

	 	10.6. 	With
respect to Unapproved 102 Option, if the Grantee ceases to be employed by
               the Company or any Affiliated Company, the Grantee shall extend to the
Company                and/or its Affiliated Company a security or guarantee for the
payment of tax due                at the time of sale of Shares, all in accordance with
the provisions of Section                102. 

	11.  	3(9)
SHARE OPTIONS. 

	 	11.1. 	Options
granted pursuant to this Section 11 are intended to constitute
               3(9) Share Options and shall be subject to the general terms and
conditions                specified in Section 6 hereof and other provisions of
the Plan, except                for said provisions of the Plan applying to Options under
a different tax law or                regulation. 

	 	11.2. 	To
the extent required by the Ordinance or the ITA, the 3(9) Share Options,
               which shall be granted pursuant to the Plan shall be issued to a Trustee. 

	12.  	OTHER
SHARE-BASED AWARDS. The Board may grant other Awards under the Plan
               pursuant to which Shares (which may, but need not, be Restricted Shares
pursuant                to Section 9 hereof) are or may in the future be
acquired, or Awards                denominated in share units, including units valued on
the basis of measures                other than market value. The Board may also grant
share appreciation rights                without the grant of an accompanying option,
which rights shall permit the                Grantees to receive, at the time of any
exercise of such rights, cash equal to                the amount by which the Fair Market
Value of all Shares in respect to which the                right was granted exceeds the
Exercise Price thereof. Such other share based                Awards may be granted
alone, in addition to, or in tandem with any Award of any                type granted
under the plan and must be consistent with the purposes of the                Plan. 

	13.  	EFFECT
OF CERTAIN CHANGES. 

	 	13.1. 	General.
In the event of a subdivision of the outstanding share capital                of the
Company, any payment of a share dividend (distribution of bonus shares),                a
recapitalization, a reorganization (which may include a combination or
               exchange of shares), a consolidation, a share split, a spin-off or other
               corporate divestiture or division, a reclassification or other similar
               occurrence, the Board shall make appropriate adjustments in one or more of
(i)                the number of Shares available for Awards, (ii) the number of such
Shares                covered by outstanding Awards, and (iii) the Exercise Price per
share covered by                the Awards, all as determined by the Board in its sole
discretion; provided,                however, that any fractional shares resulting from
such adjustment shall be                rounded down to the nearest whole share. 

- 14 -

	 	13.2. 	Merger
and Sale of Company. In the event of (i) a sale of all or
               substantially all of the assets of the Company; or (ii) a sale (including
an                exchange) of all or substantially all of the share capital of the
Company; or                (iii) the merger, consolidation, amalgamation or like
transaction of the Company                with or into another corporation (all such
transactions being herein referred to                as a “Merger/Sale”),
then, without the Grantee’s consent                and action –

	 	13.2.1. 	The
Board in its sole discretion will use its efforts to cause that any Award
               then outstanding be assumed or an equivalent Award shall be substituted by
such                successor corporation (or, in such event that such transaction is
effected                through a subsidiary, the Parent of such successor corporation),
under                substantially the same terms as the Award, provided that the Board
may determine                in its discretion whether an Award has been properly assumed
or substituted, and                provided further however, that in the event that the
consideration to the                shareholders of the Company in such Merger/Sale
consists, in whole or in part,                of cash or any consideration other than
shares of the successor corporation, the                Board may determine in its
discretion that the Award will be assumed or                substituted by an equivalent
award exercisable solely into shares of the                successor corporation with a
value equal to the value of the Shares issuable                under the Award with such
value to be determined by the Board base on                independent valuation obtained
from a third party selected by the Board in good                faith; and  

	 	13.2.2. 	In
such case that such successor corporation or other entity does not agree to
               assume the Award or to substitute an equivalent Award and, if the Award is
an                Option (“Option Award”), then the Board may, in lieu
of such                assumption or substitution of the Option Award, either (i) provide
the Grantee                the right to exercise the part of the Option Award which is
vested and                exercisable as of the closing of such Merger/Sale, under such
terms and                conditions as the Board shall determine or such other greater
portion of the                Option Award as determined by the Board, or (ii) provide
for the cancellation of                each outstanding Option Award at the closing of
said Merger/Sale, against                payment to the Grantee of an amount in cash
equal to (a) the fair market value                of each Share covered by the Option
Award which is vested and exercisable as of                the closing of such
Merger/Sale, or such other greater portion of the Option                Award as
determined by the Board, the fair market value to be as reflected under
               the terms of the Merger/Sale and as determined by the Board based on
independent                valuation obtained from a third party selected by the Board in
good faith, minus                (b) the Exercise Price of each Share covered by the
Option Award so cancelled.  

- 15 -

	 	13.2.3. 	Notwithstanding
the foregoing, in the event of a Merger/Sale, the Board may                determine in
its sole discretion that upon completion of such Merger/Sale, the                terms of
any Award be otherwise amended and modified, as the Board shall deem in
               good faith to be appropriate, and if an Option Award, that the Option
Award                shall confer the right to purchase any other security or asset, or
any                combination thereof, or that its terms be otherwise amended or
modified, as the                Board shall deem in good faith to be appropriate,
provided that any such                determination shall not adversely effect the rights
attached to the Shares.  

	 	13.3. 	Reservation
of Rights. Except as expressly provided in this Section                13,
the Grantee of an Award hereunder shall have no rights by reason of                any
subdivision or consolidation of shares of any class or the payment of any
               bonus shares or any other increase or decrease in the number of shares of
any                class or by reason of any dissolution, liquidation, Merger/Sale, or
               consolidation, divestiture or spin-off of assets or shares of another
company;                and any issue by the Company of shares of any class, or
securities convertible                into shares of any class, shall not effect, and no
adjustment by reason thereof                shall be made with respect to, the number or
price of Shares subject to an                Award. The grant of an Award pursuant to the
Plan shall not affect in any way                the right of power of the Company to make
adjustments, reclassifications,                reorganizations or changes of its capital
or business structures or to merge or                to consolidate or to dissolve,
liquidate or sell, or transfer all or part of its                business or assets or
engage in any similar transactions. 

- 16 -

	14.  	NON-TRANSFERABILITY
OF AWARDS; SURVIVING BENEFICIARY. All Awards granted under                the Plan shall
not be transferable other than by will or by the laws of descent                and
distribution, and Awards may be exercised or otherwise realized, during the
               lifetime of the Grantee, only by the Grantee or by his guardian or legal
               representative, to the extent provided for herein. A Grantee may file with
the                Board a written designation of a beneficiary on such form as may be
prescribed                by the Board and may, from time to time, amend or revoke such
designation. If no                designated beneficiary survives the Grantee, the
executor or administrator of                the Grantee’s estate shall be deemed to
be the Grantee’s beneficiary. 

	15.  	AGREEMENT
BY GRANTEE REGARDING TAXES. 

	 	15.1. 	If
the Board shall so require, as a condition of exercise of an Option, the
               release of Shares by the Trustee, the sale of the Shares or the expiration
of                the Restricted Period (each a “Tax Event”), each
Grantee shall                agree that, no later than the date of the Tax Event, he will
pay to the Company                or make arrangements satisfactory to the Board and the
Trustee (if applicable)                regarding payment of any applicable taxes of any
kind required by law to be                withheld or paid upon the Tax Event. To the
extent approved by the Board and                permitted by law, a withholding
obligation may be satisfied by the withholding                or delivery of Shares. 

	 	15.2. 	ALL
TAX CONSEQUENCES UNDER ANY APPLICABLE LAW WHICH MAY ARISE FROM THE GRANT OF
               ANY OPTIONS, RESTRICTED SHARES, SHARES OR OTHER AWARDS, OR IN THE CASE OF
AN                OPTION, FROM ITS EXERCISE, FROM THE SALE OR DISPOSITION OF THE SHARES,
               RESTRICTED SHARE OR OTHER AWARDS OR FROM ANY OTHER ACT OF THE GRANTEE IN
               CONNECTION WITH THE FOREGOING SHALL BE BORNE SOLELY BY THE GRANTEE, AND
THE                GRANTEE SHALL INDEMNIFY THE COMPANY, AND THE TRUSTEE, AND SHALL HOLD
THEM                HARMLESS AGAINST AND FROM ANY LIABILITY FOR ANY SUCH TAX OR PENALTY,
INTEREST OR                INDEXATION THEREON OR THEREUPON. 

	 	15.3. 	Each
Grantee shall notify the Company in writing within ten (10) days after the
               date such Grantee first obtains knowledge of any tax bureau inquiry,
audit,                assertion, determination, investigation, or question relating in
any manner to                the value of shares or Awards granted or received hereunder,
and each Grantee                agrees to any settlement, closing or other similar
agreement in connection with                the foregoing. Upon request, a Grantee shall
provide to the Company any                information or document relating to any event
described in the preceding                sentence, which the Company (in its sole
discretion) requires in order to                calculate and substantiate any change in
the Company’s tax liability as a                result of such event 

	16.  	RIGHTS
AS A SHAREHOLDER; VOTING AND DIVIDENDS. Subject to Section 9.5, a
               Grantee or a transferee of an Award in accordance with Section 14
shall                have no rights as a shareholder with respect to any Shares covered
by the Award                until the date of the issuance of a share certificate to him
for such Shares,                or, in the case of 102 Share Options or 3(9) Share
Options (if such Share                Options are being held by a Trustee), until the
date of the issuance of a share                certificate to the Trustee for his
benefit. No adjustment shall be made for                dividends (ordinary or
extraordinary, whether in cash, securities or other                property) or
distribution of other rights for which the record date is prior to                the
date such share certificate is issued, except as provided in Section
               13.1 hereof. The Company may restrict or otherwise regulate the
voting                powers with respect to any Shares held by a Grantee pursuant to
this Plan                (including by way of proxy), and the rights to transfer or
dispose of any shares                covered by an Award (including, without limitation,
any limitations set forth                herein, in the Option Agreement and in the
Company’s Articles of                Association, as in effect from time to time). 

- 17 -

	17.  	NO
RIGHTS TO EMPLOYMENT. Nothing in the Plan or in any Award granted, Option
               Agreement or Restricted Share Agreement entered into pursuant hereto shall
               confer upon any Grantee the right to continue in the employ of, or in a
               Consultant, Director, Office Holder or service provider relationship with,
the                Company or any Affiliated Company or to be entitled to any
remuneration or                benefits not set forth in the Plan or such Agreement or to
interfere with or                limit in any way the right of the Company or any such
Affiliated Company to                terminate such Grantee’s employment. Awards
granted under the Plan shall                not be affected by any change in duties or
position of a Grantee as long as such                Grantee continues to be employed by,
or in a Consultant, service provider,                Office Holder or Director
relationship with, the Company or any Affiliated                Company. 

	18.  	NO
REPRESENTATION BY COMPANY. By approving the Awards, the Company shall not,
               and shall not be deemed as, granting any representation or warrants to the
               Grantee regarding the Company, its business affairs, its prospects or the
future                value of its Shares. 

	19.  	APPROVAL. 

	 	19.1. 	The
Plan shall take effect upon its adoption by the Board and shall terminate on
               the tenth anniversary of such date. Notwithstanding the foregoing, in the
event                that approval of the Plan by the shareholders of the Company is
required under                applicable law, in connection with the application of
certain tax treatment or                pursuant to applicable share exchange rules or
regulations or otherwise, such                approval shall be obtained within the time
required under the applicable law. 

	 	19.2. 	The
102 Share Options and the 3(9) Share Options are subject to the approval, if
               required, of the ITA and receipt by the Company of all approvals thereof. 

	20.  	PERIOD
DURING WHICH AWARDS MAY BE GRANTED. Awards may be granted pursuant to the
               Plan from time to time within a period of ten (10) years from the date the
Plan                is adopted by the Board. 

	21.  	AMENDMENT
AND TERMINATION OF THE PLAN. The Board at any time and from time to                time
may suspend, terminate, modify or amend the Plan. Except as provided in
               Section 13.1 hereof, no suspension, termination, modification or
               amendment of the Plan may adversely affect any Award previously granted,
unless                the written consent of the Grantee is obtained. 

	22.  	NON-EXCLUSIVITY
OF THE PLAN. Neither the adoption of the Plan by the Board, nor                the
submission of the Plan to shareholders of the Company for approval (to the
               extent required under applicable law), shall be construed as creating any
               limitations on the power or authority of the Board to adopt such other or
               additional incentive, or other compensation arrangements, of whatever
nature, as                the Board may deem necessary or desirable, or preclude or limit
the continuation                of any other plan, practice or arrangement for the
payment of compensation or                fringe benefits to employees generally, or to
any class or group of employees,                which the Company, or any Affiliated
Company, now has lawfully put into effect,                including, without limitation,
any retirement, pension, savings and share                purchase plan, insurance, death
and disability benefits and executive short-term                or long-term incentive
plans. 

- 18 -

	23.  	GOVERNING
LAW. The Plan and all determinations made and actions taken pursuant
               hereto shall be governed by the laws of the State of Israel. Certain
               definitions, which refer to laws other than the laws of the State of
Israel,                shall be construed in accordance with such other laws. 

	24.  	MISCELLANEOUS. 

	 	24.1. 	Each
Award under the Plan may contain such other terms and conditions not
               inconsistent with the Plan (unless permitted hereunder), as may be
determined by                the Board, in its sole discretion. If any provision of the
Plan, any Options                Agreement or any Restricted Share Agreement, shall be
determined to be illegal                or unenforceable by any court of law in any
jurisdiction, the remaining                provisions hereof and thereof shall be
severable and enforceable in accordance                with their terms, and all
provisions shall remain enforceable in any other                jurisdiction. 

	 	24.2. 	With
respect to words used in this Plan, the singular form shall include the
               plural form, the masculine gender shall include the feminine gender, as
the                context requires. The use of captions in this Plan or any Options
Agreement or                Restricted Share Agreement is for the convenience of
reference only, and shall                not affect the meaning of any provision of the
Plan or such agreement. 

- 19 -FIFTH AMENDMENT TO CREDIT AGREEMENT

THIS FIFTH AMENDMENT TO CREDIT AGREEMENT (this "Amendment") is entered into as of February 16, 2007, among PETRO STOPPING CENTERS, L.P., a Delaware limited partnership (the "Borrower"), PETRO STOPPING CENTERS HOLDINGS, L.P., a Delaware limited partnership and a limited partner of the Borrower ("Holdings"), PETRO HOLDINGS FINANCIAL CORPORATION, a Delaware corporation ("Petro Holdings"), PETRO DISTRIBUTING, INC., a Delaware corporation and a Subsidiary of the Borrower ("Petro Distributing"), and PETRO FINANCIAL CORPORATION, a Delaware corporation and a Subsidiary of the Borrower ("Petro Financial"), the Lenders (as defined in the Credit Agreement referred to below), and WELLS FARGO BANK, N. A., as Administrative Agent, Collateral Agent and L/C Issuer.

RECITALS:

A.The Borrower, Holdings, Petro Holdings, Petro Distributing, Petro Financial, the Lenders party thereto and the Administrative Agent have entered into that certain Credit Agreement dated as of February 9, 2004 (as amended by that certain First Amendment to Credit Agreement dated as of January 21, 2005, that certain Second Amendment to Credit Agreement dated as of July 26, 2005, that certain Third Amendment and Consent relating to Credit Agreement dated as of February 3, 2006 and that certain Fourth Amendment and Consent relating to Credit Agreement dated as of July 14, 2006, and as such Credit Agreement may be further amended, modified, supplemented and extended from time to time, including, without limitation, as amended by this Amendment, the "Credit Agreement").

B.The Borrower has requested that the Credit Agreement be amended in certain respects, and the Agents and the Lenders have agreed to make such amendments upon and subject to the terms and conditions set forth in this Amendment.

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

	

DEFINITIONS

	Definitions.  Capitalized terms used in this Amendment, to the extent not otherwise defined herein, shall have the same meanings herein as in the Credit Agreement.

	

amendments to the credit agreement

	Amendment to Definition of "Applicable Rate".  The definition of the term "Applicable Rate" set forth in Section 1.01 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:

"Applicable Rate" means as follows:  (a) with respect to Base Rate Loans, 0.75% per annum, (b) with respect to Eurodollar Rate Loans, 1.75% per annum, (c) with respect to the commitment fee payable pursuant to Section 2.09(a), 0.375% per annum, and (d) with respect to the Letter of Credit Fees payable pursuant to Section 2.03(i), 1.75% per annum.  

	Amendment to Definition of "Revolving Loans Maturity Date".  The definition of the term "Revolving Loans Maturity Date" set forth in Section 1.01 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:

"Revolving Loans Maturity Date" means February 9, 2009.

	Amendment to Definition of "Term Loan Maturity Date".  The definition of the term "Term Loan Maturity Date" set forth in Section 1.01 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:

"Term Loan Maturity Date" means February 9, 2009.

	Amendment to Section 7.16.  Clause (b) of the proviso contained in Section 7.16 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:

(b)  such deposit accounts held with such banks as referred to in clause (a) preceding shall not be required to be subject to such Control Agreements if and to the extent (but only if and to the extent) that (i) each such bank refuses to execute such a Control Agreement notwithstanding the Borrower's commercially reasonable efforts to obtain such a Control Agreement and (ii) the aggregate amount contained in all deposit accounts which are not subject to such Control Agreements (exclusive of amounts pledged to or deposited with the Administrative Agent to Cash Collateralize Letters of Credit as required by this Agreement) shall not at any time exceed $8,000,000, and

	Amendment to Section 8.12.  Section 8.12 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:

8.12Capital Expenditures.  Make or become legally obligated to make any expenditure which constitutes a Consolidated Capital Expenditure, except for (a) Consolidated Capital Expenditures made in the ordinary course of business and not exceeding in the aggregate for all Loan Parties during each fiscal year the amount set forth opposite such fiscal year below:

	
Fiscal Year
	
Maximum Amount of Capital Expenditures

	
2004
	
$10,000,000.00

	
2005
	
$14,000,000.00

	
2006
	
$14,000,000.00

	
2007
	
$18,000,000.00

	
2008
	
$18,000,000.00

	
2009
	
$18,000,000.00

, and (b) additional Consolidated Capital Expenditures (i) for building new Petro Lube stations in an aggregate amount not to exceed $5,000,000 at any and all times during the term of this Agreement, (ii) for building new stopping center locations in an aggregate amount not to exceed $35,000,000 at any and all times during the term of this Agreement, and (iii) made with proceeds of Dispositions that were reinvested in a Replacement Asset within 12 months of the date of such Disposition and that did not result in the requirement of a mandatory prepayment pursuant to clause (ii) of Section 2.05(b) of this Agreement; provided, however, that, for purposes of calculating the maximum amount of Consolidated Capital Expenditures permitted during any fiscal year in accordance with clause (a) of this Section 8.12, so long as no Default has occurred and is continuing or would result from such expenditure, any portion of any amount set forth in the table above, if not expended in the fiscal year for which it is permitted above, may be carried over for expenditure in the next following fiscal year (and such Consolidated Capital Expenditures made during any fiscal year shall first be applied to any carry-forward credit from the prior fiscal year).

	

CONDITIONS PRECEDENT; Representations and Warranties

	Conditions Precedent.  The effectiveness of this Amendment is subject to the satisfaction of each of the following conditions precedent (except if and to the extent that any of such conditions precedent is waived in writing by the Agents and the Required Lenders):

(a)The Administrative Agent shall have received all of the following, each in form and substance and otherwise reasonably satisfactory to the Administrative Agent:

(i)Amendment.  This Amendment duly executed by all parties hereto;

(ii)Resolutions.  Certified resolutions of the board of directors, members, managers, partners or similar governing body of each Loan Party which authorize the execution, delivery and performance of this Amendment and the other agreements, documents and instruments referred to herein to which such Loan Party is a party; and

(iii)Organizational Documents.  True and correct copies of any and all amendments to or modifications of any of the Organizational Documents of any Loan Party or Petro since the Closing Date, certified (where applicable) by the appropriate Governmental Authorities.

(b)All representations and warranties of any Loan Party or Petro contained in the Credit Agreement or any other Loan Document shall be true and correct as of the date hereof as if made again on and as of the date hereof (except to the extent that such representations and warranties were expressly, in the Loan Documents, made only in reference to a specific date).

(c)No Default or Event of Default shall have occurred and be continuing (after giving effect to this Amendment).

(d)If and to the extent required by the Administrative Agent and presented for payment, all fees and expenses of counsel to the Administrative Agent payable by the Borrower in accordance with Section 11.04 of the Credit Agreement shall have been paid.

	Representations and Warranties.  Each of the Loan Parties represents and warrants to the Agents and the Lenders that each of the conditions precedent set forth in Section 3.01 of this Amendment has been satisfied as of the date of this Amendment.  Without limiting the generality of the foregoing, each of the Loan Parties represents and warrants to the Agents and the Lenders that (a) all representations and warranties of any Loan Party or Petro contained in the Credit Agreement or any other Loan Document are true and correct as of the date hereof as if made again on and as of the date hereof (except to the extent that such representations and warranties were expressly, in the Loan Documents, made only in reference to a specific date) and (b) no Default or Event of Default has occurred and is continuing (after giving effect to this Amendment).

	

MISCELLANEOUS

	Ratifications.  Except as expressly modified and superseded by this Amendment, the terms and provisions of the Credit Agreement are ratified and confirmed and shall continue in full force and effect.  The Loan Parties, the Agents and the Lenders agree that the Credit Agreement shall continue to be legal, valid, binding and enforceable in accordance with its terms.

	Reference to Credit Agreement, etc.  Each of the Loan Documents, including the Credit Agreement and any and all other agreements, documents or instruments now or hereafter executed and/or delivered pursuant to the terms hereof or pursuant to the terms of the Credit Agreement as amended hereby, is hereby amended so that any reference in such Loan Document to the Credit Agreement shall mean a reference to the Credit Agreement as amended hereby.  This Amendment shall constitute a Loan Document.

	Severability.  Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable.

	Applicable Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE (INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF NEW YORK'S GENERAL OBLIGATIONS LAW REGARDING CHOICE OF LAW); PROVIDED THAT THE AGENTS AND EACH LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

	Successors and Assigns.  This Amendment is binding upon and shall inure to the benefit of the Loan Parties, the Agents and the Lenders and their respective successors and permitted assigns, except that none of the Loan Parties may assign or transfer any of its rights or obligations hereunder without the prior written consent of the Agents and the Required Lenders.

	Counterparts.  This Amendment may be executed in one or more counterparts, each of which when so executed shall be deemed to be an original, but all of which together shall constitute one and the same agreement.

	Headings.  The headings, captions and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written.

[The remainder of this page is intentionally left blank.]

 

 
BORROWER:

PETRO STOPPING CENTERS, L.P.,

a Delaware limited partnership

 

By:

Name:

Title:

 

HOLDINGS:

PETRO STOPPING CENTERS HOLDINGS, L.P.

 

By:

Name:

Title:

 

PETRO HOLDINGS:

PETRO HOLDINGS FINANCIAL CORPORATION

 

By:

Name:

Title:

 

PETRO DISTRIBUTING:

PETRO DISTRIBUTING, INC.

By:

Name:

Title:

 

PETRO FINANCIAL:  

PETRO FINANCIAL CORPORATION

 

By:

Name:

Title:

AGENTS:

WELLS FARGO BANK, N. A.,

as Administrative Agent and Collateral Agent 

 

By:

Name:David G. James

Title:Vice President

 

LENDERS:

WELLS FARGO BANK, N. A.,

as a Lender and L/C Issuer 

 

By:

Name:David G. James

Title:Vice President

 

 

BANK OF AMERICA, N.A.,

as a Lender 

 

By:

Name:

Title:

 

BIG SKY LOAN FUND, LTD.,

as a Lender 

By:Eaton Vance Management

Title:Investment Advisor

 

By:

Name:

Title:

 

CELERITY CLO LIMITED

By:TCW Advisors, Inc.,

as Agent

 

By:

Name:

Title:

 

By:

Name:

Title:

EATON VANCE SENIOR FLOATING-RATE TRUST,

 as a Lender

By:Eaton Vance Management

Title:Investment Advisor

 

By:

Name:

Title:

EATON VANCE INSTITUTIONAL SENIOR LOAN FUND, as a Lender

By:Eaton Vance Management

Title:Investment Advisor

 

By:

Name:

Title:

GRAYSON & CO.,

as a Lender

By:Boston Management and Research

Title:Investment Advisor

 

By:

Name:

Title:

 

 

RAYMOND JAMES BANK, FSB,

as a Lender

 

By:

Name:

Title:

TCW SELECT LOAN FUND, LIMITED,

By:TCW Advisors, Inc.

as its Collateral Manager

 

By:

Name:

Title:

 

By:

Name:

Title:

DARIEN LOAN FUNDING COMPANY

By:TCW Advisors

as its Interim Collateral Manager

 

By:

Name:

Title:

 

By:

Name:

Title:

 

 

 

CONSENT TO FIFTH AMENDMENT TO CREDIT AGREEMENT

Petro, Inc. hereby (a) consents to and approves all of the terms and provisions of the Fifth Amendment to Credit Agreement dated as of February 16, 2007 to which this Consent is attached and (b) ratifies, confirms and reaffirms (i) all terms and provisions of that certain Guaranty dated as of February 9, 2004, executed by it to and in favor of Wells Fargo Bank, N.A., as Administrative Agent, Collateral Agent and L/C Issuer, and the other Lenders party to the Credit Agreement, and all other Loan Documents to which it is a party, and (ii) all of its indebtedness, liabilities and obligations under such Guaranty and other Loan Documents, all of which shall continue in full force and effect in accordance with their terms.

Date:February 16, 2007.

PETRO, INC.

 

By:

Name:

Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]