Document:

Form of First Amendment to Base Option Agreement

 Exhibit 10.40 
 FIRST AMENDMENT TO 
 STOCK OPTION AGREEMENT

 This FIRST AMENDMENT TO STOCK OPTION AGREEMENT (this “Amendment”) is made as of «DATE» (the
“Effective Date”), between American Tire Distributors Holdings, Inc., a Delaware corporation (the “Company”), and «NAME» (the “Optionee”). 
 RECITALS 
 A. The Company and the Optionee are parties
to the Stock Option Agreement, dated as of May 25, 2005 (the “Option Agreement”), pursuant to which the Company granted to Optionee an option to purchase shares (the “Option Shares”) of Series A Common Stock, $0.01 par value
per share, of the Company, subject to the terms and conditions of the Company’s 2005 Management Stock Incentive Plan (the “Plan”). 
 B. As of the date hereof, the option has vested with respect to «NUMBER OF SHARES»Option Shares, and remains unvested with respect to «NUMBER OF SHARES»Option Shares. 

C. The parties hereto desire to amend the Option Agreement on the terms and conditions more specifically set forth below. 
 NOW, THEREFORE, for and in consideration of the foregoing premises, and the covenants and agreements of the parties set forth herein,
together with other good and valuable consideration received by each of the parties, the receipt and sufficiency of which are hereby acknowledged and confessed by each of the parties, the parties do hereby covenant and agree as follows: 

AGREEMENTS 
 1. Definitions. Capitalized terms which are used but not defined in this Amendment shall have the meanings ascribed thereto in the Option Agreement. 
 2. Exercisability. Section 3(a) of the Option Agreement is hereby amended to insert the following sentences at the end of such clause: 
 “With respect to the Option Shares that remain unvested at January 1, 2009 (the “Remaining Option
Shares”), vesting pursuant to Exhibit 1 shall no longer apply and the Option shall become exercisable to the extent of one-third (1/3) of the number of Remaining Option Shares as of the end of each of the Fiscal Years set forth on Exhibit
2 of this Agreement if the Company’s EBITDA equals or exceeds the Target annual EBITDA amount set forth in column (A) of Exhibit 2 with respect to such Fiscal Year. If, as of the end of any Fiscal Year set forth on Exhibit 2, the
Company’s cumulative annual EBITDA amount as of the end of such Fiscal Year equals or exceeds the Cumulative Target EBITDA amount set forth in column (B) of Exhibit 2 with respect to such Fiscal Year, the Option shall become exercisable to
the extent that it did not become exercisable, but would have become exercisable had the Company achieved its Target annual EBITDA amounts for that and each of such preceding Fiscal Years.” 
 3. Additional Exhibit. Exhibit 2, in the form attached to this Amendment, shall be annexed to the Option Agreement. 
 4. Ratification. Except as expressly provided in this Amendment, all of the terms and provisions of the Option Agreement shall remain
unaffected, unchanged and unimpaired by reason of this Amendment. The Option Agreement, as amended by this Amendment, is hereby ratified, confirmed and continued in full force and effect. 

 5. Reliance. The Optionee acknowledges and agrees that the Company will continue to
administer the Plan (including allocation of options authorized under the Plan) in reliance on the agreements set forth in this Amendment. 
 6. Counterparts. This Amendment may be executed in two counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument. 
 [Signature Page Follows] 
  

 2 

 IN WITNESS WHEREOF, the parties have executed this Amendment as of the Effective Date.

  

			
	AMERICAN TIRE DISTRIBUTORS HOLDINGS, INC.
		
	 By:
	 	                                       
                                         
        
	Name:	 	
	Title:	 	

	
	
	OPTIONEE:
	
	                                        
                                         
                       

	Name: «NAME»
	
	Address:
	                                       
                                         
                       
	                                       
                                         
                       
	                                       
                                         
                       
	Facsimile:
(            )                           
                                     

  

 3 

 EXHIBIT 2 
 EARNINGS BEFORE INTEREST, TAXES, 
 DEPRECIATION AND
AMORTIZATION 
 (IN MILLIONS OF DOLLARS) 
  

							
	 Fiscal Year
	  	(A)
Target	  	(B)
Cumulative
Target
	 2009
	  	$	102.2	  	$	102.2
	 2010
	  	$	130.1	  	$	232.4
	 2011
	  	$	138.2	  	$	370.6

 Earnings Before
Interest, Taxes, Depreciation and Amortization (“EBITDA”) is defined as Consolidated Net Income (loss) of the Company and its Subsidiaries as it would appear on a statement of income (loss) of the Company prepared in accordance with U.S.
GAAP, consistently applied, which shall (i) exclude or be otherwise adjusted for acquisitions and additional equity contributions to the extent such acquisitions and/or equity contributions are determined by the Board of Directors in good faith
to materially affect target EBITDA for any particular Fiscal Year, (ii) reflect a reduction for all management and employee bonuses payable with respect to the Fiscal Year and (iii) be adjusted for any material Board of Directors approved
amendment to the capital expenditure plan; plus (minus), to the extent such amounts are otherwise taken into account in determining EBITDA (prior to adjustment), the following: 
  

	1.	Any provision (benefit) for taxes (including franchise taxes) deducted (added) in calculating such consolidated net income (loss); plus 

  

	2.	Any interest expense (net of interest income), deducted in calculating such consolidated net income (loss); plus 

  

	3.	Amortization expenses deducted in calculating consolidated net income (loss); plus 

  

	4.	Depreciation expense deducted in calculating consolidated net income (loss); plus 

  

	5.	Management fees paid to Investcorp; plus (minus) 

  

	6.	Any unusual losses (gains) deducted (added) in calculating consolidated net income (loss). (Unusual items are intended to include transactions considered outside the
ordinary course of business. EBITDA will be adjusted to eliminate the effects, if any, of such transactions, the intent being to calculate EBITDA as if such transactions had not occurred); plus (minus) 

  

	7.	Any compensation expense (income) deducted (added) in calculating consolidated net income (loss) attributable to transactions involving equity securities of the Company
or its Subsidiaries. 

 EBITDA shall be computed and determined by the Board of Directors in good faith. The
Participant and his or her representative shall be provided reasonable opportunity to review the computation of EBITDA and reasonable access to the data and information supporting such computation, but the Board of Directors’ determination
shall be conclusive and binding.U.S. Geothermal Inc.: Exhibit 10.4 - Filed by newsfilecorp.com

Exhibit 10.4

March 16, 2010 

To the Purchasers on Schedule A hereto 

U.S. Geothermal Inc. 
1505 Tyrell Lane 
Boise, Idaho
83706 

Ladies and Gentlemen: 

The undersigned director or officer of U.S. Geothermal Inc.
(the “Corporation”) understands in connection with the issue and sale by the
Corporation of 8.209,519 shares of common stock, par value US$0.001 per share
(each, a “Share”) at a price of US$1.05 per Share and Common Stock Purchase
Warrants (as defined below) to purchase an aggregate of 4,104,757 Common Shares
(the “Private Placement”), pursuant to the securities purchase agreement (the
“Securities Purchase Agreement”) dated March 8, 2010, between the Corporation
and each investor purchasing securities of the Corporation in the Private
Placement (collectively, the “Purchasers”)Pursuant to the Securities Purchase
Agreement, each Purchaser will be issued a Common Share purchase warrant
(“Warrant”) exercisable for up to 50% of the Shares purchased by the Purchaser
for a period beginning six (6) months after the Closing Date of the Private
Placement and ending sixty-six (66) months after the Closing Date of the Private
Placement (the “Expiry Date”) at an exercise price of US$1.25 per Share (the
“Exercise Price”). Any capitalized terms not defined herein shall have the
definition as set forth in the Securities Purchase Agreement.

In consideration for the benefit that the Private Placement
will confer upon the undersigned as a shareholder of the Corporation, and for
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the undersigned agrees with the Corporation and the
Purchasers that the undersigned will not, directly or indirectly, without the
prior written consent of RBC Capital Markets (which consent may not be
unreasonably withheld): 

	 	(i) 	
      offer, pledge, sell, contract to sell, sell any option or
      contract to purchase, purchase any option or contract to sell, announce
      any intention to sell, grant any option, right or warrant for the sale of,
      or otherwise dispose of or transfer any shares of common stock in the
      capital of the Corporation (“Common Shares”) or any securities
      convertible into or exchangeable or exercisable for Common Shares, whether
      now owned or hereafter acquired by the undersigned or with respect to
      which the undersigned has or hereafter acquires the power of disposition,
      or file a registration statement or prospectus with respect to any of the
      foregoing; or 

	 	 	 
	 	(ii) 	
      enter into any swap or any other agreement or any
      transaction that transfers, in whole or in part, directly or indirectly,
      the economic consequence of ownership of the Common Shares, whether any
      such swap or transaction is to be settled by delivery of Common Shares or
      other securities, in cash or otherwise, 

in each case, during the period of 90 days from March 16, 2010
(the date of closing of the Private Placement), other than pursuant to (i) a
bona fide offer by a third party to acquire Common Shares or securities
exchangeable or convertible into Common Shares made to all holders of such
securities, or (ii) Common Shares received pursuant to exercises after the date
hereof of stock options granted pursuant to the Company’s stock option plans.
For the purposes of clarity, this Lock-up Agreement does not apply to actions
taken by the undersigned in his official capacity as an officer or director of
the Corporation. 

The undersigned hereby represents and warrants that the
undersigned has full power and authority to enter into this Lock-Up Agreement
and that, upon request, the undersigned will execute any additional documents
necessary or desirable in connection with the enforcement hereof. Any
obligations of the undersigned shall be binding upon the successors and assigns
of the undersigned. 

The undersigned understands that the Corporation and the
Purchasers will proceed with the Private Placement in reliance on this Lock-Up
Agreement and the representation and warranties contained herein. 

	 	Very truly yours, 
	 	  
	 	  
	 	  
	 	  
	 	By: _______________________
	 	Name: 
	 	Title: 

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SCHEDULE A 

	
    Purchaser Name 

	
    Cranshire Capital LP 

	
    Exploration
      Capital Partners 2005 Limited Partnership 

	
    Hudson Bay Overseas Fund LTD 

	
    Hudson Bay
      Fund LP 

	
    Glacier Partners 

	
    Iroquois
      Master Fund Ltd. 

	
    Praesidis Master Fund, Ltd. 

	
    ZLP Master
      Opportunity Fund, Ltd. 

	
    Orphan Fund, L.P. 

	
    SIM Green
      Tech Fund, L.P. 

	
    Ramius Navigation Master Fund Ltd 

	
    Ramius
      Enterprise Master Fund Ltd 

	
    AGF Canada Fund 

	
    AGF Canada
      Class 

	
    AGF Canadian Stock Fund 

	
    IG AGF
      Canadian Growth Fund 

	
    IG AGF Canadian Growth Class 

	
    Keystone
      Equity Fund 

	
    Empery Asset Master LTD By: Empery Asset Management LP,
      its Authorized Agent 

	
    Hartz
      Capital Investments LLC By: Empery Asset Management LP, its Authorized
      Agent 

	
    NBCN INC. In Trust For: Front Street Capital A/C 26AA13V
    

	
    NBCN INC.
      In Trust For: Front Street Capital A/C 26AA11V 

	
    NBCN INC. In Trust For: Front Street Capital A/C 26AA14V
    

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