Document:

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                                                                     Exhibit 4.8

                         ENVIRONMENTAL POWER CORPORATION

                             STOCK OPTION AGREEMENT

This Stock Option Agreement is entered into between Environmental Power
Corporation (the "Company") and Robert I. Weisberg ("Optionee").

I.   NOTICE OF STOCK OPTION GRANT

Pursuant to a July 20, 2001 resolution of the Board of Directors of the Company,
the undersigned Optionee has been granted an Option to purchase Common Stock of
the Company, subject to the terms and conditions of this Option Agreement, as
follows:

<TABLE>
<S>                                             <C>
         Grant Number
                                                _____________________________________________

         Date of Grant                                         9/14/01
                                                ---------------------------------------------

         Vesting Commencement Date                             9/14/01
                                                ---------------------------------------------

         Exercise Price per Share                               $0.72
                                                ---------------------------------------------

         Total Number of Shares Underlying
         Grant                                                 350,000
                                                ---------------------------------------------

         Total Exercise Price                                  $252,000
                                                ---------------------------------------------

         Type of Option:                             ________    Incentive Stock Option

                                                        X     Nonqualified Stock Option
                                                     -------

         Term/Expiration Date:                                      9/14/06
                                                ---------------------------------------------
</TABLE>

Vesting:

This Option shall be exercisable, in whole or in part, immediately upon the
grant of the Option as of September 14, 2001.

<PAGE>

Termination Period:

Upon Optionee's death or disability, this Option may be exercised for one (1)
year after Optionee's death or disability, respectively.

II.  AGREEMENT

     1.    Grant of Option. The Company hereby grants to the Optionee an Option
to purchase the number of Shares set forth in the Notice of Grant, at the
Exercise Price per Share set forth in the Notice of Grant. This Option shall be
treated as a Nonqualified Stock Option ("NSO").

     2.    Exercise of Option.

                 (a)   Right to Exercise. This Option shall be exercisable
during its term in accordance with the Vesting Schedule set out in the Notice of
Grant and with the applicable provisions of this Option Agreement.

                 (b)   Method of Exercise and Payment. This Option shall be
exercisable by delivery of an Exercise Notice in the form attached as Exhibit A
which shall state the election to exercise the Option, the number of Shares with
respect to which the Option is being exercised, and such other representations
and agreements as may be required by the Company. The Exercise Notice shall be
accompanied by payment of the aggregate Exercise Price as to all exercised
Shares. Optionee may pay the Exercise Price by cash or check (bank check,
certified check, or personal check) or, with the approval of the Company, by
delivering to the Company the full Exercise Price in a combination of cash, not
less than the par value of one share of Common Stock multiplied by the number of
shares of Common Stock with respect to which the Option is being exercised, and
a full recourse promissory note with a term not to exceed five (5) years, which
promissory note shall provide for interest on the unpaid balance thereof which
at all times is not less than the minimum rate required to avoid the imputation
of income, original issue discount or a below-market rate loan pursuant to
Sections 483, 1274 or 7872 of the Internal Revenue Code of 1986, as amended.
This Option shall be deemed to be exercised upon receipt by the Company of such
fully executed Exercise Notice accompanied by the aggregate Exercise Price.

                 In addition, as an alternative to payment of the Exercise Price
in accordance with the preceding paragraph, the Optionee may elect to effect a
cashless exercise by so indicating on the exercise notice and including a
calculation of the number of shares of Common Stock to be issued upon such
exercise in accordance with the terms hereof (a "Cashless Exercise"). In the
event of a Cashless Exercise, the Optionee shall surrender this Option for that
number of shares of Common Stock determined by multiplying the number of shares
of Common Stock for which this Option is being exercised by the difference
between the "Closing Price", as herein defined minus the exercise price in
effect at such time, divided by the Closing Price. The "Closing Price" for each
day shall be

                                       2

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the last reported sale price regular way or, in case no sale takes place on such
day, the average of the closing bid and asked prices regular way on such day, in
either case as reported on the primary exchange, automated quotation system or
reporting system on which the Common Stock is listed or trades or is reported,
or if no prices shall be so reported, the average of the bid and asked prices
for such day as furnished by any New York Stock Exchange member firm selected
from time to time by the Company for such purpose, or if no such bid and asked
prices can be obtained from any such firm, the fair market value of one share of
the Common Stock on such day as determined in good faith by the Board of
Directors of the Company.

                 No Shares shall be issued pursuant to the exercise of an Option
unless such issuance and such exercise complies with applicable federal, state
and local securities laws. Assuming such compliance, for income tax purposes the
Shares shall be considered transferred to the Optionee on the date on which the
Option is exercised with respect to such Shares.

     3.    Non-Transferability of Option. This Option may not be transferred in
any manner otherwise than by will or by the laws of descent or distribution and
may be exercised during the lifetime of Optionee only by Optionee. The terms of
this Option Agreement shall be binding upon the executors, administrators,
heirs, successors and assigns of the Optionee.

     4.    Term of Option. This Option may be exercised only within the term set
out in the Notice of Grant, and may be exercised during such term only in
accordance with the terms of this Option.

     5.    Optionee's Representations. In the event the Shares have not been
registered under the Securities Act of 1933, as amended, at the time this Option
is exercised, the Optionee shall, if required by the Company, concurrently with
the exercise of all or any portion of this Option, deliver to the Company his or
her Investment Representation Statement in the form attached hereto as Exhibit
B.

     6.    Lock-Up Period. Optionee hereby agrees that, if so requested by the
Company or any representative of the underwriters (the "Managing Underwriter")
in connection with any registration of the offering of any securities of the
Company under the Securities Act, Optionee shall not sell or otherwise transfer
any Shares or other securities of the Company during the 180-day period (or such
other period as may be requested in writing by the Managing Underwriter and
agreed to in writing by the Company) (the "Market Standoff Period") following
the effective date of a registration statement of the Company filed under the
Securities Act. Such restriction shall apply only to the first registration
statement of the Company to become effective under the Securities Act that
includes securities to be sold on behalf of the Company to the public in an
underwritten public offering under the Securities Act. The Company may impose
stop-transfer instructions with respect to securities subject to the foregoing
restrictions until the end of such Market Standoff Period.

                                       3

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     7.    Tax Consequences. Set forth below is a brief summary as of the date
of this Agreement of some of the federal tax consequences of exercise of this
Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE,
AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. THE OPTIONEE SHOULD
CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

              (a)   Exercise of NSO. There may be a regular federal income tax
liability, at ordinary income tax rates, upon the exercise of the Option. If
Optionee is an employee or a former employee, the Company will be required to
withhold from Optionee's compensation or collect from Optionee and pay to the
applicable taxing authorities an amount in cash equal to a percentage of this
compensation income at the time of exercise, and may refuse to honor the
exercise and refuse to deliver Shares if such withholding amounts are not
delivered at the time of exercise.

              (b)   Disposition of Shares. The disposition of Shares is
generally a taxable event. The tax treatment will depend on the length of time
for which the Shares have been held by Optionee.

     8.    Entire Agreement; Governing Law. This Option Agreement constitutes
the entire agreement of the parties with respect to the subject matter hereof
and supersedes in its entirety all prior undertakings and agreements of the
Company and Optionee with respect to the subject matter hereof, and may not be
modified adversely to the Optionee's interest except by means of a writing
signed by the Company and Optionee. This agreement is governed by the laws of
the State of New Hampshire.

                                       4

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Optionee has reviewed this Option Agreement in its entirety, has had an
opportunity to obtain the advice of counsel prior to executing this Option and
fully understands all provisions of the Option. Optionee hereby agrees to accept
as binding, conclusive and final all decisions or interpretations of the Company
upon any questions arising under this Option. Optionee further agrees to notify
the Company upon any change in the residence address indicated below.

OPTIONEE                                           ENVIRONMENTAL POWER
                                                   CORPORATION

                                                   By:
------------------------------                        --------------------------

Signature                                          Name:
                                                        ------------------------

------------------------------                     -----------------------------

Print Name                                         Title:

------------------------------

------------------------------

Residence Address

                                       5

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                                                                       EXHIBIT A

                                 EXERCISE NOTICE

ENVIRONMENTAL POWER CORPORATION
500 Market Street, Suite 1-E
Portsmouth, NH  03801
Attention: __________________

          1. Exercise of Option. Effective as of today, ___________, 20__, the
undersigned Optionee hereby elects to exercise Optionee's option to purchase
________ Shares of the Common Stock of ENVIRONMENTAL POWER CORPORATION (the
"Company") under and pursuant to the Stock Option Agreement dated September 14,
2001 (the "Option Agreement").

          2. Delivery of Payment. Purchaser herewith delivers to the Company the
full purchase price of the Shares, as set forth in the Option Agreement.

          3. Representations of Optionee. Optionee acknowledges that Optionee
has received, read and understood the Option Agreement and agrees to abide by
and be bound by its terms and conditions.

          4. Rights as Shareholder. Until the issuance of the Shares (as
evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company), no right to vote or receive dividends
or any other rights as a shareholder shall exist with respect to the Shares,
notwithstanding the exercise of the Option. The Shares shall be issued to the
Optionee as soon as practicable after the Option is exercised. No adjustment
shall be made for a dividend or other right for which the record date is prior
to the date of issuance.

          5. Tax Consultation. Optionee understands that Optionee may suffer
adverse tax consequences as a result of Optionee's purchase or disposition of
the Shares. Optionee represents that Optionee has consulted with any tax
consultants Optionee deems advisable in connection with the purchase or
disposition of the Shares and that Optionee is not relying on the Company for
any tax advice.

          6. Restrictive Legends and Stop-Transfer Orders.

               (a) Legends. Optionee understands and agrees that the Company
shall cause the legends set forth below or legends substantially equivalent
thereto, to be placed upon any certificate(s) evidencing ownership of the Shares
together with any other legends that may be required by the Company or by state
or federal securities laws:

          THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE BEEN
          ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER
          THE SECURITIES ACT OF 1933 (THE "ACT") OR ANY STATE
          SECURITIES LAWS. SUCH SECURITIES MAY NOT BE SOLD OR OFFERED
          FOR SALE OR OTHERWISE TRANSFERRED,

                                      A-1

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          PLEDGED OR HYPOTHECATED IN THE ABSENCE OF SUCH REGISTRATION
          OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER AND ITS
          COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT
          AND ANY STATE SECURITIES LAWS.

          THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
          CERTAIN RESTRICTIONS ON TRANSFER AND A RIGHT OF FIRST
          REFUSAL HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH
          IN THE EXERCISE NOTICE BETWEEN THE ISSUER AND THE ORIGINAL
          HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT
          THE PRINCIPAL OFFICE OF THE ISSUER. SUCH TRANSFER
          RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE BINDING ON
          TRANSFEREES OF THESE SHARES.

               (b) Stop-Transfer Notices. Optionee agrees that, in order to
ensure compliance with the restrictions referred to herein, the Company may
issue appropriate "stop transfer" instructions to its transfer agent, if any,
and that, if the Company transfers its own securities, it may make appropriate
notations to the same effect in its own records.

               (c) Refusal to Transfer. The Company shall not be required (i) to
transfer on its books any Shares that have been sold or otherwise transferred in
violation of any of the provisions of this Exercise Notice or (ii) to treat as
owner of such Shares or to accord the right to vote or pay dividends to any
purchaser or other transferee to whom such Shares shall have been so
transferred.

          7. Successors and Assigns. The Company may assign any of its rights
under this Exercise Notice to single or multiple assignees, and this Exercise
Notice shall inure to the benefit of the successors and assigns of the Company.
Subject to the restrictions on transfer herein set forth, this Exercise Notice
shall be binding upon Optionee and his or her heirs, executors, administrators,
successors and assigns.

          8. Governing Law; Severability. This Exercise Notice is governed by
the laws of the State of New Hampshire.

                                      A-2

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          9. Entire Agreement. The Option Agreement is incorporated herein by
reference. This Exercise Notice, the Option Agreement and the Investment
Representation Statement constitute the entire agreement of the parties with
respect to the subject matter hereof and supersede in their entirety all prior
undertakings and agreements of the Company and Optionee with respect to the
subject matter hereof, and may not be modified adversely to the Optionee's
interest except by means of a writing signed by the Company and Optionee.

Submitted by:                           Accepted by:

OPTIONEE                                ENVIRONMENTAL POWER
                                        CORPORATION

______________________________          By:_____________________________________

Signature                               Name: __________________________________

Robert I. Weisberg                      Title:__________________________________
------------------------------

Print Name

Address:                                Address:
-------                                 -------

______________________________          500 Market Street, Suite 1-E
                                        ----------------------------------------

______________________________          Portsmouth, New Hampshire  03801
                                        ----------------------------------------

                                        ________________________________________

                                        Date Received

                                      A-3

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                                                                       EXHIBIT B

                       INVESTMENT REPRESENTATION STATEMENT

OPTIONEE:         Robert I. Weisberg

COMPANY:          Environmental Power Corporation

SECURITY:

AMOUNT:

DATE:

In connection with the purchase of the above-listed Securities, the undersigned
Optionee represents to the Company the following:

(a)  Optionee is aware of the Company's business affairs and financial condition
and has acquired sufficient information about the Company to reach an informed
and knowledgeable decision to acquire the Securities. Optionee is acquiring
these Securities for investment for Optionee's own account only and not with a
view to, or for resale in connection with, any "distribution" thereof within the
meaning of the Securities Act of 1933, as amended (the "Securities Act").

(b)  Optionee acknowledges and understands that the Securities constitute
"restricted securities" under the Securities Act and have not been registered
under the Securities Act in reliance upon a specific exemption therefrom, which
exemption depends upon, among other things, the bona fide nature of Optionee's
investment intent as expressed herein. In this connection, Optionee understands
that, in the view of the Securities and Exchange Commission, the statutory basis
for such exemption may be unavailable if Optionee's representation was
predicated solely upon a present intention to hold these Securities for the
minimum capital gains period specified under tax statutes, for a deferred sale,
for or until an increase or decrease in the market price of the Securities, or
for a period of one year or any other fixed period in the future. Optionee
further understands that the Securities must be held indefinitely unless they
are subsequently registered under the Securities Act or an exemption from such
registration is available. Optionee further acknowledges and understands that
the Company is under no obligation to register the Securities. Optionee
understands that the certificate evidencing the Securities will be imprinted
with a legend which prohibits the transfer of the Securities unless they are
registered or such registration is not required in the opinion of counsel
satisfactory to the Company, and any other legend required under applicable
state securities laws.

(c)  Optionee is familiar with the provisions of Rule 144, promulgated under the
Securities Act, which, in substance, permits limited public resale of
"restricted securities" acquired, directly

                                      B-1

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or indirectly from the issuer thereof, in a non-public offering subject to the
satisfaction of certain conditions. Rule 144 requires the resale to occur not
less than one year after the later of the date the Securities were sold by the
Company or the date the Securities were sold by an affiliate of the Company,
within the meaning of Rule 144; and, in the case of acquisition of the
Securities by an affiliate, or by a non-affiliate who subsequently holds the
Securities less than two years, the satisfaction of the following conditions:
(1) the resale being made through a broker in an unsolicited "broker's
transaction" or in transactions directly with a market maker (as said term is
defined under the Securities Exchange Act of 1934, as amended); and, in the case
of an affiliate, (2) the availability of certain public information about the
Company, (3) the amount of Securities being sold during any three-month period
not exceeding the limitations specified in Rule 144(e), and (4) the timely
filing of a Form 144, if applicable.

(d) Optionee further understands that in the event all of the applicable
requirements of Rule 144 are not satisfied, registration under the Securities
Act, compliance with Regulation A, or some other registration exemption will be
required; and that, the Staff of the Securities and Exchange Commission has
expressed its opinion that persons proposing to sell private placement
securities other than in a registered offering and otherwise than pursuant to
Rule 144 will have a substantial burden of proof in establishing that an
exemption from registration is available for such offers or sales, and that such
persons and their respective brokers who participate in such transactions do so
at their own risk. Optionee understands that no assurances can be given that any
such other registration exemption will be available in such event.

                                         Signature of Optionee:

                                         _______________________________________

                                         Date: __________________________

                                      B-2Prepared by R.R. Donnelley Financial -- Amended and Restated 2001 Stock Option Plan

  
 EXHIBIT 4.1 
  
 AMENDED AND RESTATED 
 AMERICAN SOFTWARE, INC. 
 2001 STOCK OPTION PLAN 
 (Effective August 19, 2002) 
  
 American Software, Inc., a Georgia corporation (the “Company”), hereby establishes the American Software, Inc. 2001 Stock Option
Plan (the “Plan”), effective as of May 16, 2000, the date on which this Plan was adopted by the Board of Directors of the Company. No Options shall be granted under this Plan until (a) it has been approved by the affirmative vote of
shareholders holding a majority in voting power of the Common Stock of the Company or (b) September 1, 2000, whichever shall occur later (the “Commencement Date”). Options may not be granted under the Plan more than ten years after May 16,
2000. 
  
 1.  Purpose.    The purpose of the Plan is to attract and retain the
best available talent and encourage the highest level of performance by officers, employees, directors, advisors and consultants, and to provide them with incentives to put forth maximum efforts for the success of the Company’s business in
order to serve the best interests of the Company. Options granted under the Plan may be Incentive Stock Options or Nonqualified Stock Options, as such terms are hereinafter defined. 
  
 2.  Definitions.    The following terms, when used in the Plan with initial capital letters, will have the following meanings:

  
 (a)  “Act” means the Securities Exchange Act of 1934 as in effect from time
to time. 
  
 (b)  “Board” means the Board of Directors of the Company.

  
 (c)  “Change in Control” means the occurrence, prior to the expiration of an
Option, of any of the following events: 
  
 (i)  the Company is merged, consolidated or
reorganized into or with another corporation or other legal person, and as a result of such merger, consolidation or reorganization less than two-thirds of the combined voting power of the then-outstanding securities entitled to vote generally in
the election of directors (“Voting Stock”) of such corporation or person immediately after such transaction are held in the aggregate by the holders of Voting Stock of the Company immediately prior to such transaction; 

  
 (ii)  the Company sells or otherwise transfers all or
substantially all of its assets to another corporation or other legal person, and as a result of such sale or transfer less than two-thirds of the combined voting power of the then-outstanding Voting Stock of such corporation or person immediately
after such sale or transfer is held in the aggregate by the holders of Voting Stock of the Company immediately prior to such sale or transfer; 
  
 (iii)  there is a report filed on Schedule 13D or Schedule 14D-1 (or any successor schedule, form or report), each as promulgated pursuant to the Act, disclosing that any person (as the term
“person” is used in Section 13(d)(3) or Section 14(d)(2) of the Act) has become, after the effective date hereof, the direct or indirect beneficial owner (as the term “beneficial owner” is defined under Rule 13d-3 or any
successor rule or regulation promulgated under the Act) of securities representing 50% or more of the combined voting power of the then-outstanding Voting Stock of the Company other than by gift or inheritance; 
  
 (iv)  the Company files a report or proxy statement with the Securities and Exchange Commission pursuant to the
Act disclosing in response to Form 8-K or Schedule 14A (or any successor schedule, form or report or item therein) that a change in control of the Company has occurred or will occur in the future pursuant to any then-existing contract or
transaction; or 
  
 (v)  if, during any period of two consecutive years, individuals who at
the beginning of any such period constitute the directors of the Company cease for any reason to constitute at least a majority thereof; provided, however, that for purposes of this clause (v) each director who is first elected, or first nominated
for election by the Company’s stockholders, by a vote of at least two-thirds of the directors of the Company (or a committee thereof) then still in office who were directors of the Company at the beginning of any such period will be deemed to
have been a director of the Company at the beginning of such period; and provided further that this clause (v) shall not commence applicability until such time as at least five directors are serving concurrently on the Board, but shall apply
thereafter regardless of the number of directors. 
  
 Notwithstanding the foregoing provisions of
clauses (iii) or (iv) above, unless otherwise determined in a specific case by majority vote of the Board, a “Change in Control” will not be deemed to have occurred for purposes of clause (iii) or clause (iv) above solely because (1) the
Company, (2) a Subsidiary, or (3) any Company-sponsored employee stock ownership plan or any other employee benefit plan of the Company or any Subsidiary either files or becomes obligated to file a report or a proxy statement under or in response to
Schedule 13D, Schedule 14D-1, Form 8-K or Schedule 14A (or any successor schedule, form or report or item therein) under the Act disclosing beneficial ownership by it of shares of Voting Stock of the Company, whether in excess of 50% or otherwise,
or because the Company reports that a change in 
 

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control of the Company has occurred or will occur in the future by reason of such beneficial ownership or any increase or decrease thereof. For purposes of clauses (i), (ii) and (iii) above, for
so long as the entity in question maintains two classes of common stock substantially as currently maintained by the Company, the phrase “combined voting power of the then-outstanding Voting Stock” shall be calculated by allocating to each
Class A Common Share one vote and by allocating to each Class B Common Share three votes. 
  
 (d)  “Code” means the Internal Revenue Code of 1986, as in effect from time to time. 
  
 (e)  “Commencement Date” shall mean May 1, 2001 or the date the shareholders of the Company approve the Plan, whichever occurs later. 
  
 (f)  “Committee” shall refer to either the Stock Option Committee or the Special Stock Option Committee. 
  
 (g)  “Common Stock” means the Class A Common Shares, $.10 par value, of the Company or any security
into which Class A Common Shares may be changed by reason of any transaction or event of the type described in Section 9. 
  
 (h)  “Date of Grant” means the date specified by the Stock Option Committee or the Special Stock Option Committee, as applicable, on which a grant of Stock Options will become effective (which date will
not be earlier than the date on which such Committee takes action with respect thereto). 
  
 (i)  “Disability” means (i) with respect to a Grantee who is eligible to participate in the Company’s program of long-term disability insurance, a condition with respect to which the Grantee is entitled to
commence benefits under such program of long-term disability insurance, and (ii) with respect to all Grantees generally (including a Grantee who is eligible to participate in the Company’s program of long-term disability insurance), a
disability as determined under procedures established by the relevant Committee or in any Option Grant Agreement. 
  
 (j)  “Grantee” means a person who is selected by the Stock Option Committee or the Special Stock Option Committee, as applicable, to receive Stock Options and who is at that time (i) an executive officer or other
key employee of the Company or any Subsidiary, (ii) an advisor or consultant to the Company or any Subsidiary, or (iii) a member of the Board. 
  
 (k)  “Incentive Stock Option” means an Option granted in accordance with Section 422 of the Code. 
  
 (l)  “Market Value” means last sale price as reported on any national securities exchange or automated quotation system on which the
Common Stock is listed on the Date of 
 

 3 

 
Grant if such date is a trading day and, if such date is not a trading day, on the immediately preceding date which is a trading day. 
  
 (m)  “Nonemployee Director” means a member of the Board who is not an employee of the Company or any Subsidiary and who qualifies as a
“Non-Employee Director” within the meaning of Rule 16b-3. 
  
 (n)  “Nonqualified Stock Option” means an Option other than an Incentive Stock Option. 
  
 (o)  “Option Grant Agreement” means the instrument by which the Company grants an Option to a Grantee, which instrument contains the particular terms of such Option in addition to the terms set forth in
the Plan. 
  
 (p)  “Option Price” means the purchase price per share payable on
exercise of an Option. 
  
 (q)  “Rule 16b-3” means Rule 16b-3 under Section 16 of
the Act, as such Rule is in effect from time to time. 
  
 (r)  “Special Stock Option
Committee” means a committee that at all times consists of at least two Nonemployee Directors and all of whose members qualify as “outside directors” within the meaning of Section 162(m) of the Code, appointed by the Board to grant
and administer Options granted under Section 5. 
  
 (s)  “Option” means the
right to purchase shares of Common Stock upon exercise of Stock option granted pursuant to Section 4, Section 5 or Section 6. 
  
 (t)  “Stock Option Committee” means the stock option committee appointed by the Board to grant and administer Options granted under Section 4. 
  
 (u)  “Subsidiary” means any corporation, partnership, joint venture or other entity in which the
Company owns or controls, directly or indirectly, not less than 50% of the total combined voting power or equity interests represented by all classes of stock issued by such corporation, partnership, joint venture or other entity. 

 
 (v)  “10-Percent Shareholder” means any person who at the time of the grant of an Option
owns capital stock of the Company possessing more than 10% of the combined voting power of all classes of capital stock of the Company. 
  
 3.  Shares Available Under Plan.    The shares of Common Stock that may be issued under the Plan will not exceed in the aggregate 2,975,000 shares, subject to adjustment as provided in

 

 4 

 
Section 9. Such shares may be shares of original issuance or treasury shares o r a combination of the foregoing. Any shares of Common Stock that are subject to Stock Options that are terminated,
expire unexercised, are forfeited or are surrendered will again be available for issuance under the Plan. 
  
 4.  Stock Options for Grantees—Nonexempt Grants.    The Stock Option Committee may from time to time authorize Option grants to any Grantee to purchase shares of Common Stock upon such terms
and conditions as such Committee may determine in accordance with the provisions set forth below. Grants made by the Stock Option Committee pursuant to this Section 4 are not intended to comply with or otherwise satisfy the requirements of Rule
16b-3. 
  
 (a)  Each Option Grant Agreement shall specify the number of shares of Common
Stock to which it pertains. 
  
 (b)  Each Option Grant Agreement shall specify the Option
Price, which, in the case of an Incentive Stock Option, shall be not less than 100% of the Market Value per Share on the Date of Grant or, in the case of an Incentive Stock Option granted to a 10% Shareholder, not less than 110% of the Market Value
per Share on the Date of Grant. 
  
 (c)  Each Option Grant Agreement shall specify whether
the Stock Option is intended to be an Incentive Stock Option or a Nonqualified Stock Option. 
  
 (d)  Each Option Grant Agreement may specify whether the Option Price will be payable (i) in cash or by check acceptable to the Company, (ii) by the transfer to the Company of shares of Common Stock owned by the Grantee for
at least six months having an aggregate fair market value per share at the date of exercise equal to the aggregate Option Price, or (iii) by a combination of such methods of payment; provided, however, that the payment method described in clause
(ii) shall not be available at any time that the Company is prohibited from purchasing or acquiring such shares of Common Stock. In the absence of any such specification, only the payment method in clause (i) shall be permitted. Any Option Grant
Agreement may provide for deferred payment of the Option Price from the proceeds of sale through a bank or broker of some or all of the shares to which such exercise relates. 
  
 (e)  Each Option Grant Agreement shall specify the term of the Stock Option, which in the case of an Incentive Stock Option granted to a 10%
Shareholder shall not be greater than five years and for all other Stock Options shall not be greater than ten years. 
  
 (f)  Each Option Grant Agreement shall specify the required period or periods (if any) of continuous service by the Grantee with the Company or any Subsidiary and any other conditions to be satisfied before the
Stock Option or installments thereof will become exercisable, and any Option Grant Agreement may provide, or may be amended to provide for the earlier exercise of the Stock Option in the event of a Change in Control. 
 

 5 

  
 (g)  Each Stock Option granted pursuant to this Section
4 shall be subject to the transfer restrictions set forth in Section 8. 
  
 (h)  Each
Option Grant Agreement shall be in the form of a written instrument executed on behalf of the Company by the Chief Executive Officer or Chief Financial Officer (or another officer designated by the Board of Directors or by the Stock Option
Committee) and delivered to the Grantee and containing such further terms and provisions, consistent with the Plan, as the Committee may approve. 
  
 5.  Stock Options for Grantees—Exempt Grants.    The Special Stock Option Committee may from time to time authorize grants to any Grantee of options to
purchase shares of Common Stock upon such terms and conditions as it may determine in accordance with the provisions set forth below. Grants made by the Special Stock Option Committee pursuant to this Section 5 are intended to comply with and
otherwise satisfy the requirements of Rule 16b-3. To the extent that (i) any provision of the Plan applicable to an Option granted pursuant to this Section 5, or (ii) any act of the Board, Stock Option Committee or Special Stock Option Committee
would cause such Option to fail to satisfy or comply with any requirements of Rule 16b-3, such provision or act will be deemed null and void for purposes of such Option. 
  
 (a)  Each Option Grant Agreement shall specify the number of shares of Common Stock to which it pertains. 
  
 (b)  Each Option Grant Agreement shall specify the Option Price, which, in the case of an Incentive Stock
Option, shall be not less than 100% of the Market Value per Share on the Date of Grant or, in the case of an Incentive Stock Option granted to a 10% Shareholder, not less than 110% of the Market Value per Share on the Date of Grant. 

 
 (c)  Each Option Grant Agreement shall specify whether the Option is intended to be an Incentive
Stock Option or a Nonqualified Stock Option. 
  
 (d)  Each Option Grant Agreement shall
specify whether the Option Price will be payable (i) in cash or by check acceptable to the Company, (ii) by the transfer to the Company of shares of Common Stock owned by the Grantee for at least six months having an aggregate fair market value per
share at the date of exercise equal to the aggregate Option Price, or (iii) by a combination of such methods of payment; provided, however, that the payment method described in clause (ii) shall not be available at any time that the Company is
prohibited from purchasing or acquiring such shares of Common Stock. In the absence of any such specification, only the payment method in clause (i) shall be permitted. Any Option Grant Agreement may provide for deferred payment of the Option Price
from the proceeds of sale through a bank or broker of some or all of the shares to which such exercise relates. 
 

 6 

  
 (e)  Each Option Grant Agreement shall specify the term
of the Option, which in the case of an Incentive Stock Option granted to a 10% Shareholder shall not be greater than five years and for all other Options shall not be greater than ten years. 
  
 (f)  Each Option Grant Agreement shall specify the required period or periods (if any) of continuous service by the Grantee with the Company or
any Subsidiary and any other conditions to be satisfied before the Options or installments thereof will become exercisable, and any Option Grant Agreement may provide, or may be amended to provide for the earlier exercise of the Options in the event
of a Change in Control. 
  
 (g)  Each Option granted pursuant to this Section 5 shall be
subject to the transfer restrictions set forth in Section 8. 
  
 (h)  Each Option Grant
Agreement shall be in the form of a written instrument executed on behalf of the Company by the Chief Executive Officer or Chief Financial Officer (or another officer designated by the Board of Directors or by the Special Stock Option Committee) and
delivered to the Grantee and containing such further terms and provisions, consistent with the Plan, as the Special Stock Option Committee may approve. 
  
 6.  Options for Nonemployee Directors. 
  
 (a)  Each current Nonemployee Director will be granted a Nonqualified Stock Option to purchase 3,000 shares of Common Stock as of the last day of each fiscal quarter, provided that such individual has served continuously as
a Nonemployee Director during such quarter through the close of business on such date. Such Option grants shall commence as of the fiscal quarter-end immediately following the Commencement Date. 
  

(b)  Each Nonemployee Director newly elected or appointed to the Board on or subsequent to the date on which the Shareholders approve this
Plan will be granted a Nonqualified Stock Option, effective upon his or her initial election or other appointment to the Board, to purchase 5,000 shares of Common Stock, but issued not sooner than the Commencement Date. Consistent with paragraph
6(a), each such Nonemployee Director will also be granted an additional Nonqualified Stock Option to purchase shares of Common Stock as of the last day of each fiscal quarter following his or her Initial Option grant in accordance with paragraph (a)
of this Section 6, beginning on the fiscal quarter-end immediately following the Commencement Date, provided that such individual has served continually as a Nonemployee Director during such quarter through the close of business on such date.

  
 (c)  Each Option Grant Agreement shall specify the Option Price, which shall be equal
to the Market Value on the Date of Grant. All Options granted pursuant to this Section 6 shall contain the terms and conditions set forth in paragraphs (a), (d), (e), (f), (g) and (h) of Section 4. Options granted pursuant to this Section 6 are
intended to comply with and otherwise satisfy 
 

 7 

 
the requirements of Rule 16b-3. To the extent that (i) any provision of the Plan applicable to an Option granted pursuant to this Section 6 or (ii) any act of the Board, Stock Option Committee or
Special Stock Option Committee would cause such Option to fail to satisfy or comply with any requirements of Rule 16b-3, such provision or act will be deemed null and void for purposes of such Option. 
  
 7.  Exercise of Options. 
  
 (a)  Any Option granted hereunder shall be exercisable according to the terms of the Plan and at such times and under such conditions as
determined by the Committee and set forth in the Option Grant Agreement. Unless the Committee provides otherwise, vesting of Options shall be tolled during any unpaid leave of absence. Options may not be exercised for a fraction of a share of Common
Stock. 
  
 (b)  An Option shall be deemed exercised when the Company receives:

  
 (i)  written or electronic notice of exercise (in accordance with the terms of the
Option Grant Agreement) from the person entitled to exercise the Option, and 
  
 (ii)  full
payment for the shares of Common Stock with respect to which the Option is exercised, in the form permitted by the Option Grant Agreement and the Plan. 
  
 (c)  Shares issued upon exercise of an Option shall be issued in the name of the Grantee, or, if requested by the Grantee, in the name of the
Grantee and his or her spouse. Until the shares of Stock are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights
as a shareholder shall exist with respect to the Stock acquired upon exercise of the Option, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such shares of Common Stock promptly after the Option is
exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the shares of Common Stock are issued, except as provided in Section 9. 
  
 (d)  Exercising an Option in any manner shall decrease the number of shares thereafter available, both for purposes of the Plan and for sale under
the Option, by the number of shares as to which the Option is exercised. 
  
 (e)  If a
Grantee received an Option as an employee or director of the Company and ceases to be an employee or director, as the case may be, of the Company, or if the Grantee received an Option as an advisor or consultant to the Company and ceases to be such
an advisor or consultant, other than upon the Grantee’s death or Disability, the Grantee may exercise his 
 

 8 

 or her Option within such period of time as is specified in the Option Grant Agreement to the extent that the Option is
vested on the date of termination. In the absence of a specified time in the Option Grant Agreement, the Option shall remain exercisable for three months following the Grantee’s termination (but in no event later than the expiration of the term
of such Option as set forth in the Option Grant Agreement). Notwithstanding the foregoing, except in the case of termination of employment in accordance with the retirement policies of the Company, if a Grantee voluntarily terminates his employment
or voluntarily terminates his status as an advisor or consultant, the Grantee may not exercise his or her Option following the date of termination. 
  
 (f)  If a Grantee ceases to be an employee, director, advisor or consultant as a result of the Grantee’s Disability, the Grantee may exercise
his or her Option within such period of time as is specified in the Option Grant Agreement to the extent the Option is vested on the date of exercise. In the absence of a specified time in the Option Grant Agreement relating to Disability, the
Option shall remain exercisable and shall continue to vest for 12 months following the Grantee’s termination (but in no event later than the expiration of the term of such Option as set forth in the Option Grant Agreement). 

 
 (g)  If a Grantee dies while he remains an employee, director, advisor or consultant of the Company,
the Option may be exercised within such period of time as is specified in the Option Grant Agreement to the extent that the Option is vested on the date of exercise (but in no event later than the expiration of the term of such Option as set forth
in the Option Grant Agreement). In the absence of a specified time in the Option Grant Agreement, the Option shall remain exercisable and shall continue to vest for 12 months following the Grantee’s death. The Option may be exercised by the
executor or administrator of the Grantee’s estate or, if none, by the person(s) entitled to exercise the Option under the Grantee’s Will or the laws of descent and distribution. 
  
 (h)  The Committee may at any time offer to buy out, for a payment in cash or shares of Common Stock, an Option previously granted based on such
terms and conditions as the Committee shall establish and communicate to the Grantee at the time that such offer is made. 
  
 8.  Transferability.    Except as otherwise expressly provided in the Option Grant Agreement, or in any amendment to such agreement, no Option will be transferable by a Grantee other than by will
or the laws of descent and distribution, and during the lifetime of the Grantee may be exercised only by the Grantee. 
  
 9.  Adjustments.    The Board or the Stock Option Committee, with respect to Options granted under Section 4, and the Board or the Special Stock Option Committee, with respect to Options granted
under Section 5, shall make or provide for such adjustments in the maximum number of shares of Common Stock specified in Section 3, in the number of shares of Common Stock covered by outstanding Options granted hereunder, in the Option exercise
price applicable to any such Options or in the kind of shares covered thereby (including shares of another issuer), as the 
 

 9 

 Board or such Committee in its sole discretion, exercised in good faith, may determine is equitably required to prevent dilution or enlargement
of the rights of Grantees that otherwise would result from any stock dividend, stock split, combination of shares, recapitalization or other change in the capital structure of the Company, merger, consolidation, spin-off, reorganization, partial or
complete liquidation, issuance of rights or warrants to purchase securities or any other corporate transaction or event having an effect similar to any of the foregoing. Any fractional shares resulting from the foregoing adjustments may be
eliminated. 
  
 10.  Withholding of Taxes.    To the extent that the Company is
required to withhold federal, state, local or foreign taxes in connection with any benefit realized by a Grantee under the Plan, or is requested by any Grantee to withhold additional amounts with respect to such taxes, and the amounts available to
the Company for such withholding are insufficient, it will be a condition to the realization of such benefit that the Grantee make arrangements satisfactory to the Company for payment of the balance of such taxes required or requested to be
withheld. In addition, if permitted by the Stock Option Committee with respect to Options granted under Section 4, or by the Special Stock Option Committee with respect to Options granted under Section 5, a Grantee may elect to have any withholding
obligation of the Company satisfied, in whole or in part, by (i) authorizing the Company to withhold from shares of Common Stock to be issued pursuant to any Option a number of shares with an aggregate Market Value (as of the date the withholding is
effected) that would satisfy the minimum withholding amount due, or (ii) transferring to the Company shares of Common Stock owned by the Grantee with an aggregate Market Value (as of the date the withholding is effected) that would satisfy the
minimum withholding amount due. 
  
 11.  Administration of the Plan. 
  
 (a)  The Plan will be administered by the Stock Option Committee with respect to Options granted under Section 4
and by the Special Stock Option Committee with respect to Options granted under Section 5. For purposes of any action taken by either Committee, a majority of the members of that Committee will constitute a quorum, and the action of the members
present at any meeting at which a quorum is present, or acts unanimously approved in writing, will be the acts of such Committee. The Board of Directors as a whole shall administer the Plan with respect to Options granted under Section 6.

  
 (b)  Subject to the allocation of administrative responsibilities set forth in Section
11(a), the Stock Option Committee and the Special Stock Option Committee have the full authority and discretion to administer the Plan and to take any action that is necessary or advisable in connection with the administration of the Plan, including
without limitation the authority and discretion to interpret and construe any provision of the Plan or of any agreement, notification or document evidencing the grant of an Option. The interpretation and construction by the Stock Option Committee,
the Special Stock Option Committee or the Board of Directors, as applicable, of any such provision and any determination by the respective Committee pursuant to any provision of the Plan or of any such agreement, notification or document will be
final 
 

 10 

 and conclusive. No member of the Board or of either Committee will be liable for any such action or determination made in
good faith. 
  
 (c)  Notwithstanding the provisions of Section 11(b), if any authority,
discretion or responsibility granted to the Special Stock Option Committee under the Plan would, if exercised or discharged by the Special Stock Option Committee, cause the provisions of Section 5 or any Option granted under Section 5 to fail to
satisfy the requirements of Rule 16b-3, such authority, discretion or responsibility may be exercised by the Board to the same extent and with the same effect as if exercised by the Special Stock Option Committee; provided, however, that such act of
the Board will not cause the provisions of Section 5 or any Option granted under Section 5 to fail to satisfy the requirements of Rule 16b-3 or cause any member of the Special Stock Option Committee to cease to be a Nonemployee Director for purposes
of Rule 16b-3. 
  
 12.  Amendments, Etc. 
  
 (a)  The Stock Option Committee, or the Special Stock Option Committee, as applicable, or the Board of Directors as to grants under Section 6,
may, without the consent of the Grantee, amend any agreement evidencing an Option granted under the Plan, or otherwise take action, to accelerate the time or times at which the Option may be exercised, to extend the expiration date of such Option,
to waive any other condition or restriction applicable to such Grantee or to the exercise of such Option, to reduce the exercise price of such Option, to amend the definition of a Change in Control to expand the events that would constitute a Change
in Control, even if such definition may be different from that contained in the Plan, and may amend any such agreement in any other respect with the consent of the Grantee. 
  
 (b)  The Plan may be amended from time to time by the Stock Option Committee or the Board but may not be amended without further approval by the
shareholders of the Company if such Plan amendment would result in any grant or other transaction with respect to Options under Section 5 no longer satisfying the requirements of Rule 16b-3. Notwithstanding the foregoing, the provisions of Section 6
that designate Nonemployee Directors eligible to receive Options and specify the amount, Option Price and timing of Option grants may be amended only by the Board and may be amended no more than once every six months except to comply with changes in
the Code, the Employee Retirement Income Security Act of 1974, as amended, or the rules and regulations thereunder. In the event any law, or any rule or regulation issued or promulgated by the Internal Revenue Service, the Securities and Exchange
Commission, the National Association of Securities Dealers, Inc., any stock exchange upon which the Common Stock is listed for trading, or any other governmental or quasi-governmental agency having jurisdiction over the Company, the Common Stock or
the Plan requires the Plan to be amended, or in the event Rule 16b-3 is amended or supplemented (e.g., by addition of alternative rules) or any of the rules under Section 16 of the Act are amended or supplemented, 
 

 11 

 in either event to permit the Company to remove or lessen any restrictions on or with respect to Options, the Board of
Directors reserves the right to amend the Plan to the extent of any such requirement, amendment or supplement, and all Options then outstanding will be subject to such amendment. 
  
 (c)  The Plan may be terminated at any time by action of the Board, but in any event will terminate on the tenth anniversary of the effective date
of the Plan. The termination of the Plan will not adversely affect the terms of any outstanding Option. 
  
 (d)  The Plan will not confer upon any Grantee any right with respect to continuance of employment or other service with the Company or any Subsidiary, nor will it interfere in any way with any right the Company or any
Subsidiary would otherwise have to terminate a Grantee’s employment or other service at any time. 
  
 (e)  The Plan shall be governed by and construed in accordance with the internal laws of the State of Georgia. 
  
 
	 AMERICAN SOFTWARE, INC. 
 
	 
	 By:
 	 	 

	  	 	 Secretary
 

 
 

 12

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