Document:

Exhibit 10.1

Execution
Copy

10,000,000 Shares

Clean Energy Fuels Corp.

Common Stock

UNDERWRITING AGREEMENT

May 25, 2007

W.R.
Hambrecht + Co., LLC
     as Representative of the several
    Underwriters named in Schedule I
hereto

c/o
W.R. Hambrecht + Co., LLC

539 Bryant Street, Suite 100

San Francisco, CA 94107

Ladies
and Gentlemen:

Clean Energy Fuels Corp., a Delaware corporation (the “Company”),
proposes, subject to the terms and conditions contained in this Underwriting
Agreement (this “Agreement”), to sell to you and the other underwriters named
on Schedule I to this Agreement (the “Underwriters”), for whom you are
acting as Representative (the “Representative”), 10,000,000 shares (the “Firm
Shares”) of the Company’s common stock, par value $0.0001 per share (the “Common
Stock”).  The respective amounts of the
Firm Shares to be purchased by each of the several Underwriters are set forth
opposite their names on Schedule I hereto. In addition, the persons listed
on Schedule II hereto (the “Selling Stockholders”) propose to grant to the
Underwriters an option to purchase up to an additional 1,500,000 shares (the “Option
Shares”) of Common Stock from the Selling Stockholders for the purpose of
covering over allotments in connection with the sale of the Firm Shares.  The Firm Shares and the Option Shares are
collectively called the “Shares.”

The Company has prepared and filed in conformity with
the requirements of the Securities Act of 1933, as amended (the “Securities Act”),
and the published rules and regulations thereunder (the “Rules”) adopted by the
Securities and Exchange Commission (the “Commission”) a Registration Statement
(as hereinafter defined) on Form S-1 (No. 333-137124),
including a Preliminary Prospectus (as hereinafter defined) relating to the
Shares, and such 

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amendments thereof as may
have been required to the date of this Agreement.  Copies of such Registration Statement
(including all amendments thereof) and of the related Preliminary Prospectus
have been delivered by the Company to you. 
As used in this Agreement:

a.             The term “Preliminary Prospectus” means
any preliminary prospectus relating to the Shares included at any time as a
part of the Registration Statement or filed with the Commission by the Company
pursuant to Rule 424 of the Rules.

b.             The term “Pricing Prospectus” means the
Preliminary Prospectus relating to the Shares dated May 21, 2007 that was
included in the Registration Statement immediately prior to the Applicable Time
(as defined below).

c.             The term “Registration Statement” means
the registration statement on Form S-1 (File No. 333-137124)
(including any Preliminary Prospectus, the Prospectus, all exhibits and
financial schedules), as amended at the time and on the date it became
effective (the “Effective Date”), including the information (if any) contained
in the form of final prospectus to be filed with the Commission pursuant to
Rule 424(b) of the Rules and deemed to be part thereof at the Effective
Date pursuant to Rule 430A of the Rules. 
If the Company has filed an abbreviated registration statement to
register additional Shares pursuant to Rule 462(b) under the Rules (the “462(b)
Registration Statement”), then any reference herein to the Registration
Statement shall also be deemed to include such 462(b) Registration Statement.

d.             The term “Prospectus” as used in this
Agreement means the prospectus in the form included in the Registration
Statement at the Effective Date or, if Rule 430A of the Rules is relied
on, the term Prospectus shall also include the final prospectus relating to the
Shares filed with the Commission pursuant to Rule 424(b) of the Rules.

e.             The term “Issuer Free Writing Prospectus”
means any “issuer free writing prospectus” relating to the Shares as defined in
Rule 433 of the Rules.  The term “free
writing prospectus” means each “free writing prospectus” (as defined in
Rule 405 of the Rules) prepared by or on behalf of the Company in
connection with the offering of the Shares.

f.              “Pricing Disclosure Package” means, as of
the Applicable Time, the Pricing Prospectus together with each Issuer Free
Writing Prospectus filed with the Commission or used by the Company on or
before the Applicable Time and listed on Schedule IV hereto, including any
“road show” (as defined in Rule 433(h) of the Rules) that is an Issuer Free
Writing Prospectus but is not required to be filed under Rule 433 of the
Rules, taken as a whole.

g.             The “Applicable Time” is 9:00 a.m.
(Eastern Time) on the date of this Agreement.

The Company and the Selling Stockholders understand
that the Underwriters propose to make a public offering of the Shares, as set
forth in and pursuant to the Prospectus, as soon after the Effective Date and
the date of this Agreement as the Representative deems advisable.  The Company and the Selling Stockholders
hereby confirm that the Underwriters and 

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dealers have been
authorized to distribute or cause to be distributed the Pricing Prospectus and
are authorized to distribute the Prospectus (as from time to time amended or
supplemented if the Company furnishes amendments or supplements thereto to the
Underwriters).

1.             Sale, Purchase, Delivery and Payment for
the Shares.  On the basis of the representations,
warranties and agreements contained in, and subject to the terms and conditions
of, this Agreement:

(a)       The Company agrees to sell to each of the
Underwriters, and each of the Underwriters agrees, severally and not jointly,
to purchase from the Company, at a purchase price of $11.298 per share (the “Initial
Price”), the number of Firm Shares set forth opposite the name of such
Underwriter in Schedule I hereto, subject to adjustment in accordance with
Section 10 hereof.

(b)       The Selling Stockholders hereby grant to
the several Underwriters a one-time option to purchase, severally and not
jointly, all or any part of the Option Shares at the Initial Price.  The Selling Stockholders agree, severally and
not jointly, to sell to the Underwriters the respective numbers of Option
Shares obtained by multiplying the number of Option Shares specified in the
notice referred to below in this paragraph by a fraction the numerator of which
is the number of shares set forth opposite the names of such Selling
Stockholders in Schedule II hereto under the caption “Maximum Number of
Option Shares to be Sold” and the denominator of which is the total number of
Option Shares (subject to adjustment by the Representative to eliminate
fractional shares).  The number of Option
Shares to be purchased by each Underwriter shall be the same percentage
(adjusted by the Representative to eliminate fractions) of the total number of
Option Shares to be purchased by the Underwriters as such Underwriter is
purchasing of the Firm Shares.  Such
option may be exercised only to cover over-allotments in the sales of the Firm
Shares by the Underwriters and may be exercised in whole or in part at any time
on or before 12:00 noon, New York City time, on the business day before the
Firm Shares Closing Date (as defined below), and from time to time thereafter
within 30 days after the date of this Agreement, in each case upon written,
facsimile or electronic notice, by the Representative to the Company no later
than 12:00 noon, New York City time, on the business day before the Firm Shares
Closing Date or at least two business days before the Option Shares Closing
Date (as defined below), as the case may be, setting forth the number of Option
Shares to be purchased and the time and date (if other than the Firm Shares
Closing Date) of such purchase.

(c)       Payment of the purchase price for and
delivery of certificates for the Firm Shares shall be made at the offices of
W.R. Hambrecht + Co., LLC, 539 Bryant Street, Suite 100,
San Francisco, CA, 94107 at 7:00 a.m., San Francisco time, on
the third business day following the date of this Agreement or at such time on
such other date, not later than ten (10) business days after the date of
this Agreement, as shall be agreed upon by the Company and the Representative
(such time and date of delivery and payment are called the “Firm Shares Closing
Date”).  In addition, in the event that any
or all of the Option Shares are purchased by the Underwriters, payment of the
purchase price, and delivery of the certificates, for such Option Shares shall
be made at the above-mentioned offices, or at such other place as shall be
agreed upon by the Representative and the Company, on each date of delivery as
specified in the notice from the Representative to the Company (such time and
date of delivery and payment are called the “Option Shares Closing Date”).  The Firm Shares Closing Date and any Option Shares
Closing Date are called, individually, a “Closing Date” and, together, the “Closing
Dates.”

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(d)       Payment for the Shares shall be made to
the Company and the Selling Stockholders by wire transfer of immediately
available funds or by one or more certified or official bank check or checks in
same day funds drawn to the order of the Company, and to the Selling
Stockholders for the shares purchased from the Selling Stockholders, against
delivery of the respective certificates to the Representative for the
respective accounts of the Underwriters of certificates for the Shares to be
purchased by them.

(e)       Certificates evidencing the Shares shall
be registered in such names and shall be in such denominations as the
Representative shall request at least two full business days before the Firm
Shares Closing Date or, in the case of Option Shares, on the day of notice of
exercise of the option as described in Section 1(b) and shall be delivered
by or on behalf of the Company to the Representative through the facilities of
the Depository Trust Company (“DTC”) for the account of such Underwriter.  The Company will cause the certificates
representing the Shares to be made available for checking and packaging, at
such place as is designated by the Representative, on the full business day
before the Firm Shares Closing Date (or the Option Shares Closing Date in the
case of the Option Shares).  Time shall
be of the essence, and delivery at the time and place specified pursuant to this
Agreement is a further condition to the obligation of each Underwriter
hereunder.

2.             Representations and Warranties of the
Company.  The Company represents and warrants to, and
agrees with, each of the Underwriters that:

(a)       The Registration Statement conformed in
all material respects when filed, and will conform in all material respects on
each of the Effective Date and the applicable Closing Date, and any amendment
to the Registration Statement filed after the date hereof will conform in all
material respects when filed, to the requirements of the Securities Act and the
Rules.  The Pricing Prospectus conformed
as of the Applicable Time, and the Prospectus will conform when filed with the
Commission pursuant to Rule 424(b) of the Rules and as of the applicable
Closing Date, in all material respects to the requirements of the Securities
Act and the Rules.

(b)       The Registration Statement, as of the
Effective Date, did not contain an untrue statement of a material fact or omit
to state any material fact necessary to make the statements therein not
misleading.  The Prospectus, as of its
date and the applicable Closing Date, will not contain an untrue statement of a
material fact or omit to state any material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.  As of the
Applicable Time, the Pricing Disclosure Package did not contain an untrue
statement of a material fact or omit to state any material fact necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading. 
Each Issuer Free Writing Prospectus listed on Schedule IV hereto
does not conflict with the information contained in the Registration Statement,
the Pricing Prospectus or the Prospectus. 
Each such Issuer Free Writing Prospectus, as of the Applicable Time, did
not contain any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements therein, in light of
the circumstances under which they were made, not misleading.  The Prospectus, as of its filing date and the
applicable Closing Date, will not contain an untrue statement of a material
fact or omit to state any material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.  Notwithstanding
the foregoing, none of the representations and warranties in this paragraph
shall 

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apply to statements in,
or omissions from, the Registration Statement, the Pricing Prospectus, the
Prospectus and any Issuer Free Writing Prospectus made in reliance upon, and in
conformity with, information herein or otherwise furnished in writing by the
Representative on behalf of the several Underwriters for use in the
Registration Statement, the Pricing Prospectus, the Prospectus or any Issuer
Free Writing Prospectus.  With respect to
the preceding sentence, the Company acknowledges that the only information
furnished in writing by the Representative on behalf of the several
Underwriters for use in the Registration Statement, any Preliminary Prospectus,
the Pricing Prospectus, the Prospectus or any Issuer Free Writing Prospectus is
the information set forth in the paragraph describing the Open IPO process on
the front cover page, in the first and third paragraphs under the caption “Plan
of Distribution,” and in the “Plan of Distribution” section under the
subsections entitled “The OpenIPO Auction Process,” “Determination of Initial
Public Offering Price,” “Allocation of Shares,” “Requirements for Valid Bids,” “The
Closing of the Auction and the Allocation of Shares,” “Short Sales, Stabilizing
Transactions and Penalty Bids,” and the third paragraph under the subsection
entitled “Lock-Up Agreements.”

(c)       Unless the Company obtains the prior
consent of the Representative, it has not made and will not make any offer
relating to the Shares that would constitute an Issuer Free Writing Prospectus
other than those Issuer Free Writing Prospectuses listed on Schedule IV
attached hereto, or that would otherwise constitute a Free Writing Prospectus
required to be filed with the Commission. 
The Company has complied and will comply with the requirements of
Rule 433 of the Rules applicable to any Issuer Free Writing Prospectus,
including timely filing with the Commission where required, legending and
recordkeeping.

(d)       If applicable, each Preliminary
Prospectus (including the Pricing Prospectus) and the Prospectus delivered to
the Underwriters for use in connection with this offering was identical to the
electronically transmitted copies thereof filed with the Commission pursuant to
EDGAR, except to the extent permitted by Regulation S-T.  If Rule 434 of the Rules is used, the
Company will comply with the requirements of Rule 434 and the Prospectus
shall not be “materially different,” as such term is used in Rule 434,
from the Prospectus included in the Registration Statement at the time it
became effective.

(e)       The Registration Statement has been
declared effective under the Securities Act and no stop order preventing or
suspending the effectiveness of the Registration Statement or suspending or
preventing the use of any Preliminary Prospectus, the Prospectus or any Issuer
Free Writing Prospectus has been issued by the Commission and no proceedings
for that purpose are pending or have been instituted or, to the Company’s
knowledge, threatened by the Commission. 
Any required filing of the Prospectus and any supplement thereto
pursuant to Rule 424(b) of the Rules has been or will be made in the
manner and within the time period required by such Rule 424(b).

(f)        The Company has not distributed and,
prior to the later to occur of any Closing Date and completion of the
distribution of the Shares, will not distribute any offering material in
connection with the offering and sale of the Shares other than any Preliminary
Prospectus, the Prospectus, any Issuer Free Writing Prospectus listed on
Schedule IV hereto, and any other materials, if any, permitted by the
Securities Act, including Rule 134 of the Rules, to which the Representative
has consented.

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(g)       The financial statements of the Company
(including all notes and schedules thereto) included in the Registration
Statement and the Pricing Prospectus present fairly in all material respects
the financial position of the Company and its consolidated subsidiaries at the
dates indicated and the statement of operations, stockholders’ equity and cash
flows of the Company and its consolidated subsidiaries for the periods
specified; and such financial statements and related schedules and notes
thereto, and the unaudited financial information filed with the Commission as
part of the Registration Statement and the Pricing Prospectus has been prepared
in conformity with generally accepted accounting principles, consistently
applied throughout the periods involved except as disclosed in the notes
thereto.  The summary and selected
financial data included in the Registration Statement and the Pricing
Prospectus present fairly in all material respects the information shown
therein as at the respective dates and for the respective periods specified and
have been presented on a basis consistent with the consolidated financial
statements set forth in the Registration Statement and the Pricing Prospectus
and other financial information.

(h)       KPMG, LLP, whose reports are filed with
the Commission as a part of the Registration Statement, is and, during the
periods covered by their reports, was an independent registered public
accounting firm within the meaning of the Securities Act and the Rules and the
rules and regulations adopted by the Public Company Accounting Oversight Board
(the “PCAOB”).

(i)        The Company (i) has been duly
incorporated and is validly existing as a corporation in good standing under
the laws of the State of Delaware, having full corporate power and authority to
own or lease its properties and to conduct its business as described in the
Pricing Disclosure Package; and (ii) is duly qualified to do business as a
foreign corporation and is in good standing in all other jurisdictions in which
the character of the property owned or leased or the nature of the business
transacted by it makes qualification necessary except for such jurisdictions
where the failure to so qualify individually or in the aggregate would not have
a material adverse effect on the assets, properties, condition (financial or
otherwise) or in the results of operations, business affairs or business
prospects of the Company and its subsidiaries considered as a whole (a “Material
Adverse Effect”).  The Company has employees
located solely in Arizona, California, Colorado, Georgia, Maryland,
Massachusetts, New Hampshire, New Mexico, New York, Rhode
Island, Texas, Washington, Wyoming and Canada, and in no other jurisdiction,
and is duly qualified to do business as a foreign corporation and is in good
standing in such jurisdictions, which are the only jurisdictions where the
Company is required to be so qualified. 
To the Company’s knowledge, no proceeding has been instituted in any
such jurisdiction revoking, limiting or curtailing, or seeking to revoke, limit
or curtail, such power and authority or qualification.  Except for Canada, the Company does not own,
lease or license any asset or property outside the United States of America.

(j)        Except as disclosed in the Registration
Statement or Pricing Prospectus, the Company and each of its subsidiaries has
all requisite corporate power and authority, and all necessary authorizations,
approvals, consents, orders, licenses, certificates and permits of and from all
governmental or regulatory bodies or any other person or entity (collectively,
the “Permits”), to own, lease and license its assets and properties and conduct
its business, all of which are valid and in full force and effect, except where
the lack of such Permits, individually or in the aggregate, would not have a
Material Adverse Effect. The Company and each of its subsidiaries has fulfilled
and performed in all material respects all of its material obligations with
respect to such Permits 

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and no event has occurred
that allows, or after notice or lapse of time would allow, revocation or
termination thereof or results in any other material impairment of the rights
of the Company thereunder except, in each such case, where such revocation,
termination or impairment would not have a Material Adverse Effect.  Except as may be required under the
Securities Act and state and foreign Blue Sky laws and the rules and
regulations of the National Association of Securities Dealers, Inc. (the “NASD”),
no other Permits are required for the Company to enter into, deliver and
perform this Agreement and to issue and sell the Shares to be issued and sold
by it hereunder.

(k)       Except as disclosed in the Registration
Statement or Pricing Prospectus, the Company and each of its subsidiaries owns
or possesses legally enforceable rights to use all patents, patent rights,
patent applications, inventions, trademarks, trademark applications, trade
names, service marks, copyrights, copyright applications, licenses, domain
names, know-how (including trade secrets and other unpatented and/or
unpatentable proprietary or confidential information, systems or procedures)
and other similar rights and proprietary knowledge (collectively, “Intellectual
Property”) necessary for the conduct of its business.  Neither the Company nor any of its
subsidiaries has knowledge of or has received any notice of any
(i) infringement, misappropriation or violation by third parties of any
such Intellectual Property or (ii) any threatened action, suit, proceeding
or claim by others challenging the Company or its subsidiaries’ rights in or to
any such Intellectual Property.  The
Intellectual Property owned by the Company and its subsidiaries has not been
adjudged invalid or unenforceable, in whole or in part, and there is no pending
or, to the Company’s knowledge, threatened action, suit, proceeding or claim by
others challenging the validity or scope of any such Intellectual
Property.  There is no pending or, to the
Company’s knowledge, threatened action, suit, proceeding or claim by others
against the Company or any of its subsidiaries that the Company or any of its
subsidiaries infringes, misappropriates or otherwise violates any Intellectual
Property or other proprietary rights of others. 
To the Company’s knowledge, no employee of the Company or any of its
subsidiaries is the subject of any claim or proceeding involving a violation of
any term of any employment contract, patent disclosure agreement, invention
assignment agreement, non-competition agreement, non-solicitation agreement,
nondisclosure agreement or any restrictive covenant to or with a former
employer where the basis of such violation relates to such employee’s
employment with the Company or any of the Company’s subsidiaries or actions
undertaken by the employee while employed with the Company or any of the
Company’s subsidiaries.

(l)        The Company and each of its subsidiaries
has good and indefeasible title in fee simple to all real property, and good
and indefeasible title to all other property owned by it, in each case free and
clear of all liens, encumbrances, claims, security interests and defects,
except such as do not materially affect the value of such property and do not
materially interfere with the use made or proposed to be made of such property
by the Company and its subsidiaries.  All
property held under lease by the Company and its subsidiaries is held by them
under valid, existing and enforceable leases, free and clear of all liens,
encumbrances, claims, security interests and defects, except such as would not
have a Material Adverse Effect. 
Subsequent to the respective dates as of which information is given in
the Pricing Prospectus, (i) there has not been any Material Adverse
Effect; (ii) neither the Company nor any of its subsidiaries has sustained
any loss of or interference with its assets, businesses or properties (whether
owned or leased) from fire, explosion, earthquake, flood or other calamity,
whether or not covered by insurance, or from any labor dispute or any court or
legislative or other governmental action, order or decree which would have a
Material Adverse Effect; and (iii) since the date of the latest balance
sheet included in the Pricing 

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Prospectus, neither the
Company nor its subsidiaries has (A) issued any securities, except for issuance
pursuant to this Agreement or pursuant to reservations, agreements or employee
benefit plans referred to in the Registration Statement or Pricing Prospectus
or upon the conversion or exercise of convertible securities, options or
warrants referred to in the Registration Statement or Pricing Prospectus, or
incurred any liability or obligation, direct or contingent, for borrowed money,
except such liabilities or obligations incurred in the ordinary course of
business, (B) entered into any transaction not in the ordinary course of
business that is material to the Company or (C) declared or paid any
dividend or made any distribution on any shares of its stock or redeemed,
purchased or otherwise acquired or agreed to redeem, purchase or otherwise acquire
any shares of its capital stock.

(m)      There is no document, contract or other
agreement required to be described in the Registration Statement or the Pricing
Prospectus or to be filed as an exhibit to the Registration Statement which is
not described or filed as required by the Securities Act or Rules.  Each description of a contract, document or
other agreement in the Registration Statement and the Pricing Prospectus
accurately reflects in all material respects the terms of the underlying
contract, document or other agreement. 
Except as disclosed in the Registration Statement or Pricing Prospectus,
each contract, document or other agreement described in the Registration
Statement or the Pricing Prospectus or listed in the Exhibits to the
Registration Statement is in full force and effect and is valid and enforceable
by and against the Company or its subsidiaries, as the case may be, in
accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization or other similar laws
relating to the enforcement of creditors’ rights generally, and general
equitable principles relating to the availability of remedies, and except as
rights of indemnity or contribution may be limited by federal or state
securities laws and the public policy underlying such laws.  Neither the Company nor any of its
subsidiaries, if a subsidiary is a party, nor to the Company’s knowledge, any
other party is in default in the observance or performance of any term or
obligation to be performed by it under any such agreement, and no event has
occurred which with notice or lapse of time or both would constitute such a
default, in any such case which default or event, individually or in the
aggregate, would have a Material Adverse Effect.  No default exists, and no event has occurred
which with notice or lapse of time or both would constitute a default, in the
due performance and observance of any term, covenant or condition, by the
Company or a subsidiary, if a subsidiary is a party thereto, of any other
agreement or instrument to which the Company or any of its subsidiaries is a
party or by which the Company or its properties or business or a subsidiary or
the subsidiary’s properties or business may be bound or affected which default
or event, individually or in the aggregate, would have a Material Adverse
Effect.

(n)       The statistical and market related data
included in the Pricing Disclosure Package are based on or derived from sources
that the Company believes to be reliable and accurate.

(o)       Neither the Company nor any of its
subsidiaries is in violation of any term or provision of its charter or bylaws
or of any franchise, license, permit, judgment, decree, order, statute, rule or
regulation, where the consequences of such violation, individually or in the
aggregate, would have a Material Adverse Effect.

(p)       This Agreement has been duly authorized,
executed and delivered by the Company.

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(q)       Neither the execution, delivery and
performance of this Agreement by the Company nor the consummation of any of the
transactions contemplated hereby (including, without limitation, the issuance
and sale by the Company of the Shares) will give rise to a right to terminate
or accelerate the due date of any payment due under, or conflict with or result
in the breach of any term or provision of, or constitute a default (or an event
which with notice or lapse of time or both would constitute a default) under,
or require any consent or waiver under, or result in the execution or
imposition of any lien, charge or encumbrance upon any properties or assets of
the Company or its subsidiaries pursuant to the terms of, any indenture,
mortgage, deed of trust or other agreement or instrument to which the Company
or any of its subsidiaries is a party or by which either the Company or its
subsidiaries or any of their properties or businesses is bound, or any
franchise, license, permit, judgment, decree, order, statute, rule or
regulation applicable to the Company or any of its subsidiaries or violate any
provision of the charter or bylaws of the Company or any of its subsidiaries,
except for (i) such consents or waivers which have already been obtained
and are in full force and effect, (ii) any such termination or
acceleration right, conflict, breach, default, lien or violation that would
not, individually or in the aggregate, have a Material Adverse Effect or
(iii) except as may be required by the NASD or state securities or Blue
Sky laws in connection with the offer and sale of the Shares.

(r)        The Company has the duly authorized and
validly issued outstanding capitalization as of March 31, 2007 as set
forth under the caption “Capitalization” in the Pricing Prospectus and will
have the adjusted capitalization as of March 31, 2007 (giving effect to
the closing of the offering contemplated by this Agreement) set forth therein
on each Closing Date, based on the assumptions set forth therein.  The certificates evidencing the Shares are in
due and proper legal form and have been duly authorized for issuance by the
Company, except that some certificates do not contain the legend required by
Section 151(f) of the DGCL.  All of the
issued and outstanding shares of Common Stock have been duly and validly issued
and fully paid and nonassessable.  All of
the issued and outstanding shares of capital stock of the Company were issued
in transactions that were exempt from the registration requirements of the
Securities Act, without violation of preemptive rights, rights of first refusal
or similar rights.  Except as disclosed
in the Registration Statement or Pricing Prospectus, there are no statutory
preemptive or other similar rights to subscribe for or to purchase or acquire
any shares of Common Stock of the Company or any of its subsidiaries or any
such rights pursuant to its Certificate of Incorporation or bylaws or any
agreement or instrument to or by which the Company or any of its subsidiaries
is a party or bound other than any that do not apply to the issuance and sale
of the Shares pursuant to this Agreement and that will expire at the Firm
Shares Closing Date.  The Shares to be
issued and sold by the Company pursuant to this Agreement (the “Company Shares”),
when issued and sold against payment therefor pursuant to this Agreement, will
be duly authorized and validly issued, fully paid and nonassessable and none of
them will be issued in violation of any preemptive or other similar right.  The Shares to be sold by the Selling
Stockholders have been duly authorized and are, or will be prior to the relevant
Closing Date, validly issued and are fully paid and nonassessable.  Except as disclosed in the Pricing
Prospectus, there is no outstanding option, warrant or other right calling for
the issuance of, and there is no commitment, plan or arrangement to issue, any
share of stock of the Company or any of its subsidiaries or any security
convertible into, or exercisable or exchangeable for, such stock.  The securities of the Company conform, and
the Company Shares when issued at the applicable Closing Date will conform, to
the descriptions thereof contained in the Registration Statement, the Pricing
Prospectus and the Prospectus.  All
outstanding shares of capital stock of each of the Company’s subsidiaries have
been duly authorized and validly issued, 

 9
 

and are fully paid and
nonassessable and are owned directly by the Company or by another wholly-owned
subsidiary of the Company free and clear of any security interests, liens,
encumbrances, equities or claims, other than those described in the
Registration Statement and the Pricing Prospectus.

(s)       Except as disclosed in the Registration
Statement or Pricing Prospectus, no holder of any security of the Company has
any right, which has not been waived, to have any security owned by such holder
included in the Registration Statement or to demand registration of any
security owned by such holder for a period of 180 days after the date of this
Agreement.  Each director and executive
officer of the Company and each stockholder of the Company listed on
Schedule III has delivered to the Representative his enforceable written
lock-up agreement in the form attached to this Agreement as Exhibit A
hereto (“Lock-Up Agreement”).

(t)        All necessary corporate action has been
duly and validly taken by the Company to authorize the execution, delivery and
performance of this Agreement and the issuance and sale of the Shares by the
Company.  This Agreement has been duly
and validly authorized, executed and delivered by the Company and constitutes
and will constitute legal, valid and binding obligations of the Company enforceable
against the Company in accordance with their respective terms, except as the
enforceability thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles.

(u)       Neither the Company nor any of its
subsidiaries is involved in any labor dispute nor, to the knowledge of the
Company, is any such dispute threatened, which dispute would have a Material
Adverse Effect.  To the Company’s
knowledge there is no existing or imminent labor disturbance by the employees
of any of its principal suppliers or contractors which would have a Material
Adverse Effect.  There is no threatened
or to the Company’s knowledge, any pending litigation between the Company or
its subsidiaries and any of its executive officers which, if adversely
determined, could have a Material Adverse Effect and the Company has no reason
to believe that such officers will not remain in the employment of the Company.

(v)       No relationship, direct or indirect,
exists between or among the Company or its subsidiaries, on the one hand, and
the current or prior directors, officers, stockholders, customers or suppliers
of the Company and its subsidiaries, on the other hand, which is required to be
described in the Registration Statement and the Pricing Prospectus that is not
so described.

(w)      Neither the Company nor any affiliate of
the Company has taken, nor will they take, directly or indirectly, any action
designed to or which might reasonably be expected to cause or result in, or
which has constituted or which might reasonably be expected to constitute, the
stabilization or manipulation of the price of the Common Stock or any security
of the Company to facilitate the sale or resale of any of the Shares.

(x)        The Company and each of its subsidiaries
has filed all federal, state, local and foreign tax returns which are required
to be filed through the date hereof, which returns are true and correct in all
material respects or has received timely extensions thereof, and has paid all
taxes shown on such returns and all assessments received by it to the extent
that the same are material and have become due. There are no tax audits or
investigations pending, which if adversely

 10

determined would have a
Material Adverse Effect; nor, to the Company’s knowledge, are there any
material proposed additional tax assessments against the Company or any of its
subsidiaries.

(y)       The Shares have been approved for listing
on the National Association of Securities Dealers Automated Quotation (“NASDAQ”)
Global Market subject only to notice of issuance.

(z)        A registration statement has been filed
on Form 8-A pursuant to Section 12 of the Exchange Act with
respect to the Common Stock, which registration statement complies in all
material respects with the Exchange Act.

(aa)     The Company has taken no action designed
to, or likely to have the effect of, terminating the registration of the Common
Stock under the Exchange Act or the listing of the Common Stock on the NASDAQ
Global Market, nor has the Company received any notification that the
Commission or the NASDAQ Global Market is contemplating terminating such
registration or listing.

(bb)     The books, records and accounts of the
Company and its subsidiaries accurately and fairly reflect, in all material
respects and in reasonable detail, the transactions in, and dispositions of,
the assets of, and the results of operations of, the Company and its
subsidiaries.  The Company and each of
its subsidiaries maintains a system of internal accounting controls sufficient
to provide reasonable assurances that (i) transactions are executed in
accordance with management’s general or specific authorizations,
(ii) transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting
principles and to maintain asset accountability, (iii) access to assets is
permitted only in accordance with management’s general or specific
authorization and (iv) the recorded accountability for assets is compared
with the existing assets at reasonable intervals and appropriate action is
taken with respect to any differences; the Company maintains “disclosure
controls and procedures” (as defined in Rule 13a-14(c) under the Exchange
Act) to ensure that material information relating to the Company is made known
to the Company’s principal executive officer and the Company’s principal
financial officer or persons performing similar functions; the Company is
otherwise in compliance in all material respects with all applicable effective
provisions of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) and is
actively taking steps to ensure that it will be in compliance with other
applicable provisions of the Sarbanes-Oxley Act upon the effectiveness of such
provisions.

(cc)     The Company and its subsidiaries are
insured by insurers of recognized financial responsibility against such losses
and risks and in such amounts as are generally deemed customary in the
businesses in which they are engaged or propose to engage after giving effect
to the transactions described in the Pricing Prospectus, all of which insurance
is in full force and effect.  The Company
and each of its subsidiaries are in compliance with the terms of such policies
and instruments in all material respects; and neither the Company nor any
subsidiary of the Company has any reason to believe that it will not be able to
renew its existing insurance coverage as and when such coverage expires or to
obtain similar coverage from similar insurers as may be necessary to continue
its business at a cost that would not have a Material Adverse Effect.  Neither the Company nor any of its
subsidiaries has been denied any material insurance policy or coverage for
which it has applied.

 11
 

(dd)     Each approval, consent, order,
authorization, designation, declaration or filing of, by or with any
regulatory, administrative or other governmental body necessary in connection
with the execution and delivery by the Company of this Agreement and the
consummation of the transactions herein contemplated required to be obtained or
performed by the Company (except such additional steps as may be required by
the NASD or may be necessary to qualify the Shares for public offering by the
Underwriters under the state securities or Blue Sky laws) has been obtained or
made and is in full force and effect.

(ee)     Except as disclosed in the Registration
Statement and the Pricing Prospectus, there is no action, suit, claim,
proceeding or investigation pending or, to the Company’s knowledge, threatened
against the Company before or by any court, regulatory body or administrative
agency or any other governmental agency or body, domestic or foreign, that
(i) questions the validity of the capital stock of the Company or this
Agreement or any action taken or to be taken by the Company pursuant to or in
connection with this Agreement; (ii) is required to be disclosed in the
Registration Statement and the Pricing Prospectus and is not disclosed (and
such proceedings, if any, as are summarized in the Registration Statement and
the Pricing Prospectus are accurately summarized in all material respects) or
(iii) may have a Material Adverse Effect.

(ff)       There are no affiliations with the NASD
among the Company’s officers, directors or, to the knowledge of the Company,
any five percent (5%) or greater stockholder of the Company, except as set
forth in the Pricing Prospectus or otherwise disclosed in writing to the
Representative.

(gg)     (i) Each of the Company and each of
its subsidiaries is in compliance with all rules, laws and regulation relating
to the use, treatment, storage and disposal of toxic substances and protection
of health or the environment (“Environmental Law”) which are applicable to its
business, except where a failure to comply would not have a Material Adverse
Effect; (ii) neither the Company nor its subsidiaries has received any
notice from any governmental authority or third party of an asserted claim
under Environmental Laws; (iii) each of the Company and each of its
subsidiaries has received all permits, licenses or other approvals required of
it under applicable Environmental Laws to conduct its business and is in
compliance with all terms and conditions of any such permit, license or
approval, except where a failure to comply would not have a Material Adverse
Effect; (iv) to the Company’s knowledge, no facts currently exist that
will require the Company or any of its subsidiaries to make future material
capital expenditures to comply with Environmental Laws; and (v) no
property which is or has been owned, leased or occupied by the Company or its
subsidiaries has been designated as a Superfund site pursuant to the
Comprehensive Environmental Response, Compensation of Liability Act of 1980, as
amended (42 U.S.C. Section 9601, et. seq.) (“CERCLA”) or
otherwise designated as a contaminated site under applicable state or local
law.  Neither the Company nor any of its
subsidiaries has been named as a “potentially responsible party” under CERCLA.

(hh)     In the ordinary course of its business,
the Company periodically reviews the effect of Environmental Laws on the
business, operations and properties of the Company and its subsidiaries, in the
course of which the Company identifies and evaluates associated costs and
liabilities (including, without limitation, any capital or operating
expenditures required for clean-up, closure of properties or compliance with
Environmental Laws, or any permit, license or approval, any related constraints
on operating activities and any potential liabilities to third 

 12
 

parties).  On the basis of such review, the Company has
reasonably concluded that such associated costs and liabilities would not,
individually or in the aggregate, have a Material Adverse Effect.

(ii)       The Company is not and, after giving
effect to the offering and sale of the Shares, including the issuance, offering
and sale of the Company Shares, and the application of proceeds from the sale
of the Company Shares as described in the Pricing Prospectus and the
Prospectus, will not be an “investment company” within the meaning of the
Investment Company Act of 1940, as amended (the “Investment Company Act”).

(jj)       The Company was not at the time of
initial filing of the Registration Statement and at the earliest time
thereafter that the Company or another offering participant made a bona fide
offer (within the meaning of Rule 164(h)(2) of the Rules) of the Shares,
is not on the date hereof and will not be on the applicable Closing Date, an “ineligible
issuer” (as defined in Rule 405 of the Rules).

(kk)     The Company does not, directly or
indirectly, including through any subsidiary, have any outstanding personal
loans or other credit extended to or for any director or executive officer.

(ll)       None of the Company nor, to the knowledge
of the Company, any other person associated with or acting on behalf of the
Company including, without limitation, any director, officer, agent or employee
of the Company or its subsidiary, has, directly or indirectly, while acting on
behalf of the Company or any of its subsidiaries (i) used any corporate
funds for unlawful contributions, gifts, entertainment or other unlawful
expenses relating to political activity; (ii) made any unlawful payment to
foreign or domestic government officials or employees or to foreign or domestic
political parties or campaigns from corporate funds; (iii) violated any
provision of the Foreign Corrupt Practices Act of 1977, as amended; or
(iv) made any other unlawful payment.

(mm)   The operations of the Company and its subsidiaries are
and have been conducted at all times in compliance with applicable financial
recordkeeping and reporting requirements of the Currency and Foreign
Transactions Reporting Act of 1970, as amended, the USA PATRIOT Act, the money
laundering statutes of all jurisdictions to which it is subject, the rules and
regulations thereunder and any related or similar rules, regulations or
guidelines, issued, administered or enforced by any governmental agency
(collectively, the “Money Laundering Laws”), and no action, suit or proceeding
by or before any court or governmental agency, authority or body or any
arbitrator involving the Company or its subsidiary with respect to the Money
Laundering Laws is pending, or to the knowledge of the Company, threatened.

(nn)     Neither the Company nor any of its
subsidiaries nor, to the knowledge of the Company, any director, officer,
agent, employee or affiliate of the Company or any of its subsidiaries is
currently subject to any U.S. sanctions administered by the Office of Foreign Assets
Control of the U.S. Treasury Department (“OFAC”); and the Company will not
directly or indirectly use the proceeds of the offering, or lend, contribute or
otherwise make available such proceeds to any subsidiary, joint venture partner
or other person or entity, for the purpose of financing the activities of any
person currently subject to any U.S. sanctions administered by OFAC.

 13
 

(oo)     Except as described in the Pricing
Prospectus and the Registration Statement, the Company has not sold or issued
any securities during the six-month period preceding the date of the Pricing
Prospectus, including any sales pursuant to Rule 144A under, or
Regulations D or S of, the Securities Act.

(pp)     The Company has fulfilled its
obligations, if any, under the minimum funding standards of Section 302 of
the U.S. Employee Retirement Income Security Act of 1974 (“ERISA”) and the
regulations and published interpretations thereunder with respect to each “plan”
as defined in Section 3(3) of ERISA and such regulations and published
interpretations in which its employees are eligible to participate and each
such plan is in compliance in all material respects with the presently
applicable provisions of ERISA and such regulations and published
interpretations. No “Reportable Event” (as defined in 12 ERISA) has
occurred with respect to any “Pension Plan” (as defined in ERISA) for which the
Company could have any liability.

(qq)     The Company has not incurred any
liability for a fee, commission, or other compensation on account of the employment
of a broker or finder in connection with the transactions contemplated by this
Agreement other than as contemplated hereby.

(rr)       Each of the Company, its directors and
officers has not distributed and will not distribute prior to the later of
(i) the Firm Shares Closing Date, or the Option Shares Closing Date, and
(ii) completion of the distribution of the Shares, any offering material
in connection with the offering and sale of the Shares other than any
Preliminary Prospectus, the Prospectus, the Registration Statement and any
Issuer Free Writing Prospectus listed on Schedule IV attached hereto.

3.             Representations and Warranties of the
Selling Stockholders.  Each of the Selling Stockholders hereby
represents, severally and not jointly, warrants to, and agrees with, each
Underwriter that:

(a)       Such Selling Stockholder has caused
certificates for the number of Shares listed opposite such Selling Stockholder’s
name on Schedule II hereto to be delivered to U.S. Stock Transfer
Corporation (the “Custodian”), endorsed in blank or with blank stock powers
duly executed, with a signature appropriately guaranteed, such certificates to
be held in custody by the Custodian for delivery, pursuant to the provisions of
this Agreement and agreements dated on or prior to the date of this Agreement
among the Custodian and the Selling Stockholders substantially in the form
attached hereto as Exhibit B (the “Custody Agreement”).

(b)       Such Selling Stockholder has granted an
irrevocable power of attorney substantially in the form attached hereto as
Exhibit C (the “Power of Attorney”) to each of the persons named therein,
on behalf of such Selling Stockholder, to execute and deliver this Agreement
and any other document necessary or desirable in connection with the
transactions contemplated hereby and to deliver the Shares to be sold by such
Selling Stockholder pursuant hereto.

(c)       This Agreement, the Custody Agreement,
the Power of Attorney and the Lock-Up Agreement have each been duly authorized,
executed and delivered by or on behalf of such Selling Stockholder and,
assuming due authorization, execution and delivery by the other parties
thereto, 

 14
 

constitutes the valid and
legally binding agreement of such Selling Stockholder, enforceable against such
Selling Stockholder in accordance with its terms.

(d)       The execution and delivery by such
Selling Stockholder of this Agreement and the performance by such Selling
Stockholder of its obligations under this Agreement, including the sale and
delivery of the Shares to be sold by such Selling Stockholder and the
consummation of the transactions contemplated herein and compliance by such
Selling Stockholder with its obligations hereunder, do not and will not,
whether with or without the giving of notice or the passage of time or both, (i) violate
or contravene any provision of the charter or bylaws or other organizational
instrument of such Selling Stockholder, if applicable, or any applicable law,
statute, regulation, or filing or any agreement or other instrument binding
upon such Selling Stockholder or any judgment, order or decree of any
governmental body, agency or court having jurisdiction over such Selling
Stockholder, (ii) conflict with or constitute a breach of, or default
under, or result in the creation or imposition of any tax, lien, charge or
encumbrance upon the Shares to be sold by such Selling Stockholder or any
property or assets of such Selling Stockholder pursuant to the terms of any
agreement or instrument to which such Selling Stockholder is a party or by
which such Selling Stockholder may be bound or to which any of the property or
assets of such Selling Stockholder is subject or (iii) require any
consent, approval, authorization or order of or registration or filing with any
court or governmental agency or body having jurisdiction over it, except such
as may be required by the NASD, the Securities Act or state securities or Blue
Sky laws in connection with the offer and sale of the Shares.

(e)       Such Selling Stockholder will have on the
Option Shares Closing Date valid and marketable title to the Option Shares to
be sold by such Selling Stockholder free and clear of any lien, claim, security
interest or other encumbrance, including, without limitation, any restriction
on transfer, except as otherwise described in the Registration Statement and
the Pricing Prospectus.

(f)        Such Selling Stockholder has and will
have on the Option Shares Closing Date full legal right, power and  authority, and any approval required by law,
to sell, assign, transfer and deliver the Option Shares to be sold by such
Selling Stockholder in the manner provided by this Agreement.

(g)       Upon delivery of and payment for the
Shares to be sold by such Selling Stockholder pursuant to this Agreement, and
assuming each Underwriter has no notice of any adverse claim, the several
Underwriters will receive valid and marketable title to such Shares free and
clear of any  lien, claim, mortgage,
pledge, security interest or other encumbrance.

(h)       All information relating to such Selling
Stockholder furnished in writing by such Selling Stockholder expressly for use
in the Registration Statement, the Pricing Prospectus and any Issuer Free
Writing Prospectus is, and on each Closing Date will be, true, correct, and
complete, and does not, and on each Closing Date will not, contain any untrue
statement of a material fact or omit to state any material fact necessary to
make such information not misleading. 
Such Selling Stockholder confirms that the only information being
supplied by such Selling Stockholder in writing expressly for use in the
Registration Statement, any Preliminary Prospectus (including the Pricing
Prospectus), the Prospectus, or any Issuer Free Writing Prospectus is the
number of the Shares that such Selling Stockholder has agreed to sell pursuant
to this Agreement and the information regarding such Selling Stockholder in the
Pricing Prospectus and the Prospectus 

 15
 

(i) under the caption “Principal
and Selling Stockholders,” including the footnotes, and, (ii) to the extent
applicable, under the caption “Certain Relationships and Related Party
Transactions.”

(i)        Each Indemnification Stockholder has
reviewed the Registration Statement and Pricing Prospectus and the Pricing
Disclosure Package taken as a whole and, although such Indemnification
Stockholder has not independently verified the accuracy or completeness of all
the information contained therein, nothing has come to the attention of such
Indemnification Stockholder that would lead such Indemnification Stockholder to
believe that (i) as of the Effective Date, the Registration Statement contained
any untrue statement of a material fact or omitted to state any material fact
required to be stated therein to make the statements made therein not
misleading or (ii) as of the Applicable Time, either the Pricing Prospectus or
the Pricing Disclosure Package contained any untrue statement of a material
fact or omitted to state any material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.

(j)        The sale of Shares by each
Indemnification Stockholder pursuant to this Agreement is not prompted by such
Indemnification Stockholder’s knowledge of any material adverse information
concerning the Company or any of its subsidiaries which is not set forth in the
Pricing Prospectus.

(k)       Such Selling Stockholder has not taken
and will not take, directly or indirectly, any action designed to or that might
reasonably be expected to cause or result in stabilization or manipulation of
the price of any security of the Company to facilitate the sale or resale of
the Shares.

(l)        Such Selling Stockholder has no actual
knowledge that any representation or warranty of the Company set forth in
Section 2 above is untrue or inaccurate in any material respect.

(m)      The representations and warranties of
such Selling Stockholder in the Custody Agreement are and on each applicable
Closing Date will be, true and correct.

4.             Conditions of the Underwriters’
Obligations.  The obligations of the Underwriters under
this Agreement are several and not joint. 
The respective obligations of the Underwriters to purchase the Shares
are subject to each of the following terms and conditions:

(a)       Notification that the Registration
Statement has become effective shall have been received by the Representative;
the Prospectus shall have been timely filed with the Commission in accordance
with Section 5(a) of this Agreement; the Company shall have complied with
all filing requirements applicable to any Issuer Free Writing Prospectus used
or referred to after the date hereof; and any request of the Commission for
inclusion of additional information in the Registration Statement or the
Prospectus or otherwise shall have been complied with or otherwise satisfied.

(b)       No order preventing or suspending the use
of any Preliminary Prospectus, Issuer Free Writing Prospectus or the Prospectus
shall have been or shall be in effect and no order suspending the effectiveness
of the Registration Statement shall be in effect and no proceedings for such
purpose shall be pending before or threatened by the Commission, and any
requests for 

 16
 

additional information on
the part of the Commission (to be included in the Registration Statement or the
Prospectus or otherwise) shall have been complied with to the satisfaction of
the Commission and the Representative. 
If the Company has elected to rely upon Rule 430A, Rule 430A
information previously omitted from the effective Registration Statement
pursuant to Rule 430A shall have been transmitted to the Commission for filing
pursuant to Rule 424(b) within the prescribed time period and the Company
shall have provided evidence satisfactory to the Underwriters of such timely
filing, or a post-effective amendment providing such information shall have
been promptly filed and declared effective in accordance with the requirements
of Rule 430A.  If the Company has
elected to rely upon Rule 434, a term sheet shall have been transmitted to
the Commission for filing pursuant to Rule 424(b) within the prescribed
time period.

(c)       (i) the representations and
warranties of the Company and the Selling Stockholders contained in this
Agreement and in the certificates delivered pursuant to Section 4(d) shall
be true and correct when made and on and as of each Closing Date as if made on
such date; (ii) since the Effective Date, no event has occurred that
should have been set forth in a supplement or amendment to the Prospectus that
has not been set forth in an effective supplement or amendment and
(iii) since the respective dates as of which information is given in the
Registration Statement in the form in which it originally became effective and
the Pricing Prospectus, there has not been any Material Adverse Effect or any
development involving a prospective Material Adverse Effect, the effect of
which is, in the sole judgment of the Representative, to make it impracticable
or inadvisable to proceed with the public offering or the delivery of the
Shares on the terms and in the manner contemplated in the Pricing Prospectus.
The Company and the Selling Stockholders shall have performed all covenants and
agreements and satisfied all the conditions contained in this Agreement
required to be performed or satisfied by them at or before such Closing Date.

(d)       The Representative shall have received on
each Closing Date a certificate, addressed to the Representative and dated such
Closing Date, of the chief executive or chief operating officer and the chief
financial officer or chief accounting officer of the Company to the effect that
(i) the representations, warranties and agreements of the Company in this
Agreement were true and correct when made and are true and correct as of such
Closing Date; (ii) the Company has performed all covenants and agreements
and satisfied all conditions contained herein; (iii) they have carefully
examined the Registration Statement, the Prospectus and the Pricing Disclosure
Package and, in their opinion (A) as of the Effective Date, the
Registration Statement did not include any untrue statement of a material fact
and did not omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading; (B) as of the
Applicable Time, the Pricing Disclosure Package did not include any untrue
statement of a material fact and did not omit to state a  material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading; (C) as of its date and the
applicable Closing Date, the Prospectus did not include any untrue statement of
a material fact and did not omit to state a 
material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading and (D) since the Effective Date no event has occurred
which should have been set forth in a supplement or otherwise required an
amendment to the Registration Statement or the Prospectus which was not set
forth and (iv) no stop order suspending the effectiveness of the Registration
Statement or preventing or suspending the use of any Preliminary Prospectus,
the Prospectus or any Issuer Free Writing Prospectus has 

 17
 

been issued and, to their
knowledge, no proceedings for that purpose are pending or have been instituted
or threatened by the Commission.

(e)       The Representative shall have received a
certificate on each Closing Date signed by the Secretary of the Company to the
effect that, as of the Closing Date the Secretary certifies as to the accuracy
of the Company’s Certificate of Incorporation and bylaws, the resolutions of
the Board of Directors relating to the offering contemplated hereby, the form
of stock certificate representing the Shares, and copies of all communications
with the Commission; as to the execution and delivery of this Agreement; as to
the incumbency and signature of persons signing this Agreement, the
Registration Statement and other related documents; as to the approval of the
Company Shares for listing on the NASDAQ Global Market; as to the Company’s
compliance with all agreements and performance or satisfaction of all
conditions required hereunder; as to the consideration received for all
outstanding shares of the Company’s Common Stock; and as to such other matters
as Underwriters’ counsel may reasonably request.

(f)        The Representative shall have been
furnished evidence in the usual written or electronic form from the appropriate
authorities of the several jurisdictions, or other evidence satisfactory to the
Representative, of the good standing and qualifications of the Company.

(g)       The Representative shall have received,
on the Effective Date and prior to the time this Agreement is executed, on the
effective date of any post-effective amendment to the Registration Statement
filed subsequent to the date of this Agreement and on each Closing Date, a
signed letter from KPMG, LLP addressed to the Representative and dated,
respectively, the date of this Agreement and each such Closing Date, in form
and substance reasonably satisfactory to the Representative containing
statements and information of the type ordinarily included in accountants’ “comfort
letters” to underwriters with respect to the financial statements and certain
financial information contained in the Registration Statement, the Pricing
Prospectus and the Prospectus.

(h)       The Representative shall have received a
copy of a letter from KPMG, LLP addressed to the Company, stating that their
review of the Company’s internal accounting controls, to the extent they deemed
necessary in establishing the scope of their examination of the Company’s
financial statements filed with the Registration Statement, the Pricing
Prospectus and the Prospectus, did not disclose any weakness in internal
controls that they considered to be material weaknesses.

(i)        The Representative shall have received on
each Closing Date from Sheppard, Mullin, Richter & Hampton LLP,
counsel for the Company, an opinion, addressed to the Representative and dated
such Closing Date, and stating in effect that:

(i)            The Company has been duly incorporated
and is validly existing as a corporation in good standing under the laws of the
State of Delaware, and each of its subsidiaries has been duly incorporated and
is validly existing as a corporation, limited liability company or limited
partnership, as the case may be, in good standing under the laws of its
jurisdiction of incorporation, formation or organization.  Each of the Company and its subsidiaries is
duly qualified to transact business and is in 
good standing as a foreign corporation in each 

 18
 

jurisdiction in which the
character or location of its assets or properties or the nature of its business
makes such qualification necessary, except where the failure to so qualify or
to be in good standing, individually or in the aggregate, would not have a
Material Adverse Effect.

(ii)           Each of the Company and its subsidiaries
has all requisite corporate power and authority to own, lease and operate its
properties and to conduct its business as now being conducted and as described
in the Registration Statement and the Pricing Prospectus and, with respect to
the Company, to enter into and perform its obligations under this Agreement and
to issue and sell the Shares required to be issued by it (the “Company Shares”).

(iii)          The authorized, issued and outstanding
capital stock of the Company is as set forth in the Registration Statement and
the Pricing Prospectus under the caption “Capitalization” as of the dates
stated therein and, since such dates, there has been no change in the capital
stock of the Company except for subsequent issuances, if any, pursuant to this
Agreement or pursuant to reservations, agreements or employee benefit plans
referred to in the Pricing Prospectus and the Prospectus or pursuant to the
conversion or exercise of convertible securities or options referred to in the
Pricing Prospectus and the Prospectus; all of the outstanding shares of capital
stock of the Company have been duly and validly authorized and issued and are
fully paid and nonassessable and none of them was issued in violation of any
preemptive or other similar right under the DGCL, under the certificate of
incorporation or bylaws of the Company, as amended and restated from time to
time, or preemptive rights, rights of first refusal and similar rights arising
under any contract filed as an exhibit to the Registration Statement or
otherwise known to such counsel.  The
Company Shares have been duly authorized for issuance and sale to the
Underwriters pursuant to this Agreement and, when issued and delivered by the
Company pursuant to this Agreement against payment of the consideration set
forth herein, will be validly issued, fully paid and nonassessable, and no
holder of the Shares is or will be subject to personal liability by reason of
being such a holder.  The Selling Stockholder
Shares have been duly authorized and are or will be when issued pursuant to the
Agreement validly issued, fully paid and nonassessable.  The issuance and sale of the Company Shares
by the Company is not subject to any preemptive or other similar rights of any
securityholder of the Company under the DGCL, under the certificate of
incorporation or bylaws of the Company, as amended and restated from time to
time, or any preemptive rights, rights of first refusal or similar rights under
any contract filed as an exhibit to the Registration Statement or otherwise
known to such counsel.  Except as
disclosed in the Registration Statement and the Pricing Prospectus, there are
no preemptive or other rights to subscribe for or to purchase or any
restriction upon the voting or transfer of any securities of the Company
pursuant to the Company’s Certificate of Incorporation or bylaws or other
governing documents or any agreements or other instruments known to such
counsel to which the Company is a party or by which it is bound.  The sale of the Shares by the Selling
Stockholders is not subject to any preemptive or other similar rights of any
security holders of the 

 19
 

company under the DGCL,
under the certificate of incorporation or bylaws of the Company, as amended and
restated from time to time, or any preemptive rights, rights of first refusal
or similar rights under any contract filed as an exhibit to the Registration
Statement or otherwise known to such counsel. 
Except as disclosed in the Registration Statement and the Pricing
Prospectus, to the knowledge of such counsel, there is no outstanding option,
warrant or other right calling for the issuance of, and no commitment, plan or
arrangement to issue, any shares of stock of the Company or any security
convertible into, exercisable for, or exchangeable for stock of the
Company.  The Common Stock, and the
Shares conform in all material respects to the descriptions thereof contained
in the Registration Statement, the Pricing Prospectus and the Prospectus.  The form of certificate used to evidence the
Common Stock complies in all material respects with all applicable statutory
requirements, with any applicable requirements of the certificate of
incorporation or bylaws of the Company, as amended and restated from time to
time, and the requirements of the NASDAQ Global Market, except that certain
certificates representing outstanding shares do not have the legend required by
Section 151(f) of the DGCL.  Except as
disclosed in the Registration Statement and the Pricing Prospectus, to the
knowledge of such counsel, there are no persons with registration rights or
other similar rights to have any Company securities registered pursuant to the
Registration Statement or otherwise registered by the Company under the
Securities Act that have not been satisfied or waived.

(iv)          All necessary corporate action has been
duly and validly taken by the Company to authorize the execution, delivery and
performance of this Agreement and the issuance and sale of the Company
Shares.  This Agreement has been duly and
validly authorized, executed and delivered by the Company.

(v)           Neither the execution, delivery and
performance of this Agreement by the Company nor the consummation of any of the
transactions contemplated hereby (including, without limitation, the issuance
and sale by the Company of the Shares) nor the execution, delivery or
performance of any other agreement or instrument entered into or to be entered
into by the Company in connection with the transactions contemplated by this
Agreement will give rise to a right to terminate or accelerate the due date of
any payment due under, or conflict with or result in the breach of any term or
provision of, or constitute a default (or any event which with notice or lapse
of time, or both, would constitute a default) under, or require consent or
waiver under, or result in the execution or imposition of any lien, charge,
claim, security interest or encumbrance upon any properties or assets of the
Company or any subsidiary pursuant to the terms of, (i) any indenture,
mortgage, deed trust, note or other agreement or instrument to which the
Company or any subsidiary is a party or by which the Company or any subsidiary
or any of its assets or properties or businesses is bound and which is filed as
an exhibit to the Registration Statement, (ii) any judgment, decree,
order, license, permit or franchise applicable to the Company and known to such
counsel, or (iii) the DGCL or any federal, California State or New York
State statute, law, rule or regulation of which such counsel is aware or
violate any provision of the charter or bylaws of the Company or any
subsidiary.

 20

(vi)          No consent, approval, authorization,
license, registration, qualification or order of any court or governmental
agency or regulatory body is required for the due authorization, execution,
delivery or performance of this Agreement by the Company or the consummation of
the transactions contemplated hereby or thereby, except the registration of the
Shares under the Securities Act, the approval for listing of the Shares on the
NASDAQ Global Market and such as may be required under state securities or Blue
Sky laws in connection with the purchase and distribution of the Shares by the
several Underwriters.

(vii)         To the best of such counsel’s knowledge,
there is no action, suit, proceeding or other investigation, before any court
or before or by any public body or board pending or threatened against, or
involving the assets, properties or businesses of, the Company which is
required to be disclosed in the Registration Statement and the Pricing
Prospectus and is not so disclosed or which could reasonably be expected to
have a Material Adverse Effect.

(viii)        The statements in the Pricing Prospectus
and the Prospectus under the captions “Description of Capital Stock,” “Business
Background on Clean Air Regulation,” “Business-Government Regulation and
Environmental Matters,” “Business Legal Proceedings,” “Shares Eligible for
Future Sale” and “Certain Relationships and Related Party Transactions,” and in
the Registration Statement under Item 15 of Part II, insofar as such statements
constitute a summary of documents referred to therein or matters of law, are
accurate in all material respects and accurately present the information with
respect to such documents and matters. 
To the knowledge of such counsel, copies of all contracts and other
documents required to be filed as exhibits to, or described in, the
Registration Statement, the Pricing Prospectus and the Prospectus have been so
filed with the Commission or are described therein.

(ix)           The Registration Statement, as of the
Effective Date and the applicable Closing Date, all Preliminary Prospectuses,
including the Pricing Prospectus, as of their respective dates and the
applicable Closing Date, and the Prospectus, as of its date and the applicable
Closing Date, (except for the financial statements and schedules and other
financial data included therein, as to which such counsel need not express an
opinion) complied as to form in all material respects with the requirements of
the Securities Act and the Rules.

(x)            The Registration Statement is effective
under the Securities Act, and to such counsel’s knowledge no stop order
suspending the effectiveness of the Registration Statement or preventing or
suspending the use of any Preliminary Prospectus, the Prospectus or any Issuer
Free Writing Prospectus has been issued and no proceedings for that purpose are
pending or have been instituted or threatened by the Commission.

 21
 

(xi)           Any required filing of the Prospectus and
any supplement thereto pursuant to Rule 424(b) of the Rules has been made
in the manner and within the time period required by such Rule 424(b).

(xii)          The Shares have been approved for listing
on the NASDAQ Global Market, subject only to official notice of issuance.

(xiii)         The Company is not an “investment company”
or an entity controlled by an “investment company” as such terms are defined in
the Investment Company Act.

To the extent deemed advisable by such counsel, such
counsel may rely as to matters of fact on certificates of responsible officers
of the Company and public officials, such counsel may limit its opinion to the
DGCL, the laws of the States of California and New York, and the federal
laws of the United States.  Copies of
such certificates and other opinions shall be furnished to the Representative
and counsel for the Underwriters.

In addition, such counsel shall state that such
counsel has participated in conferences with officers and other representatives
of the Company, the Underwriters and the independent registered public
accounting firm of the Company, at which conferences the contents of the Registration
Statement, the Pricing Disclosure Package and the Prospectus and related
matters were discussed and, although such counsel is not passing upon and does
not assume any responsibility for the accuracy, completeness or fairness of the
statements contained in the Registration Statement, the Pricing Disclosure
Package and the Prospectus (except as specified in the foregoing opinion), on
the basis of the foregoing, no facts have come to the attention of such counsel
which lead such counsel to believe that (i) the Registration Statement, as
of the Effective Date, (except with respect to the financial statements and
notes and schedules thereto and other financial data, as to which such counsel
need make no statement) contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary to
make the statements therein not misleading, (ii) the Pricing Disclosure
Package, as of the Applicable Time, (except with respect to the financial
statements, notes and schedules thereto and other financial data, as to which
such counsel need make no statement) contained any untrue statement of a
material fact or omitted to state a material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were
made, not misleading or (iii) the Prospectus, as of its date and the
applicable Closing Date, (except with respect to the financial statements,
notes and schedules thereto and other financial data, as to which such counsel
need make no statement) contained any untrue statement of a material fact or
omitted to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.

(j)        The Representative shall have received on
each Closing Date from Arnold & Porter LLP, counsel for Perseus ENRG
Investment, L.L.C., an opinion, addressed to the Representative and dated such
Closing Date, and stating in effect that:

(i)            This Agreement has been duly authorized,
executed and delivered by or on behalf of such Selling Stockholder.

 22
 

(ii)           Each of the Custody Agreement, the Power
of Attorney and the Lock-up Agreement has been duly authorized, executed and
delivered by such Selling Stockholder.

(iii)          This Agreement, the Custody Agreement,
the Power of Attorney and the Lock-Up Agreement each constitute the legal,
valid and binding obligation of such Selling Stockholder enforceable against
such Selling Stockholder in accordance with its terms except as such enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
or other similar laws affecting the enforcement of creditors’ rights generally
and by general equitable principles.

(iv)          Such Selling Stockholder has the legal
right, power and authority to enter into this Agreement and to sell, transfer
and deliver in the manner provided in this Agreement, the Shares to be sold by
such Selling Stockholder hereunder.

(k)       The Representative shall have received on
each Closing Date from Simon Millner, corporate counsel for Westport
Innovations, Inc., an opinion, addressed to the Representative and dated such
Closing Date, and stating in effect that:

(i)            This Agreement has been duly authorized,
executed and delivered by or on behalf of such Selling Stockholder.

(ii)           Each of the Custody Agreement, the Power
of Attorney and the Lock-up Agreement has been duly authorized, executed and
delivered by such Selling Stockholder.

(iii)          This Agreement, the Custody Agreement,
the Power of Attorney and the Lock-Up Agreement each constitute the legal,
valid and binding obligation of such Selling Stockholder enforceable against
such Selling Stockholder in accordance with its terms except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles.

(iv)          Such Selling Stockholder has the legal
right, power and authority to enter into this Agreement and to sell, transfer
and deliver in the manner provided in this Agreement, the Shares to be sold by
such Selling Stockholder hereunder.

(l)        The Representative shall have received on
each Closing Date from Whalen LLP, counsel for the Selling Stockholders who are
residents of the State of California, and for Selling Stockholder Mark Riley,
all of whom are listed on Schedule V to this Agreement (the “California Selling
Stockholders”), an opinion, addressed to the Representative and dated such
Closing Date, and stating in effect that:

 23
 

(i)            This Agreement has been duly executed and
delivered by or on behalf of each California Selling Stockholder.

(ii)           Each of the Custody Agreement, the Power
of Attorney and the Lock-up Agreement has been duly executed and delivered by
each California Selling Stockholder.

(iii)          This Agreement, the Custody Agreement,
the Power of Attorney and the Lock-Up Agreement each constitute the legal,
valid and binding obligation of each California Selling Stockholder enforceable
against each California Selling Stockholder in accordance with its terms except
as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles.

(iv)          Each California Selling Stockholder has
the legal right, power and authority to enter into this Agreement and to sell,
transfer and deliver in the manner provided in this Agreement, the Shares to be
sold by such California Selling Stockholder hereunder; provided no opinion
shall be given concerning compliance with any state securities or Blue Sky laws
in connection with the offer or sale of the Shares.

(m)      The Representative shall have received on
each Closing Date from Haynes and Boone, LLP, counsel for the Selling
Stockholders who are residents of the State of Texas and listed on Schedule VI
to this Agreement (the “Texas Selling Stockholders”), an opinion, addressed to
the Representative and dated such Closing Date, and stating in effect that:

(i)            This Agreement has been duly authorized,
executed and delivered by or on behalf of each Texas Selling Stockholder.

(ii)           Each of the Custody Agreement, the Power
of Attorney and the Lock-up Agreement has been duly authorized, executed and
delivered by each Texas Selling Stockholder.

(iii)          This Agreement, the Custody Agreement,
the Power of Attorney and the Lock-Up Agreement each constitute the legal,
valid and binding obligation of each Selling Stockholder enforceable against
each Texas Selling Stockholder in accordance with its terms except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles.

(iv)          Each Texas Selling Stockholder has the
legal right, power and authority to enter into this Agreement and to sell,
transfer and deliver in the manner provided in this Agreement, the Shares to be
sold by such Texas Selling Stockholder hereunder; provided no opinion shall be
given concerning compliance with any state securities or Blue Sky laws in
connection with the offer or sale of the Shares.

 24
 

(n)       The Representative shall have received on
each Closing Date from Fulbright & Jaworski L.L.P., counsel for Selling
Stockholder Alan P. Basham (“Basham”), an opinion, addressed to the
Representative and dated such Closing Date, and stating in effect that:

(i)            This Agreement has been duly authorized,
executed and delivered by or on behalf of Basham.

(ii)           Each of the Custody Agreement, the Power
of Attorney and the Lock-up Agreement has been duly authorized, executed and
delivered by Basham.

(iii)          This Agreement, the Custody Agreement,
the Power of Attorney and the Lock-Up Agreement each constitute the legal,
valid and binding obligation of Basham enforceable against Basham in accordance
with its terms except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally and by general
equitable principles.

(iv)          Basham has the legal right, power and
authority to enter into this Agreement and to sell, transfer and deliver in the
manner provided in this Agreement, the Shares to be sold by Basham hereunder;
provided no opinion shall be given concerning compliance with any state
securities or Blue Sky laws in connection with the offer or sale of the Shares.

(o)       The Shares shall have been approved for listing on the
NASDAQ Global Market, subject only to official notice of issuance.

(p)       The Company and each Selling Stockholder shall have
furnished or caused to be furnished to the Representative such further
certificates or documents as the Representative shall have reasonably
requested.

(q)       The Representative shall have received from Baker
Botts L.L.P., counsel for the Underwriters, such opinion or opinions, dated
such Closing Date, with respect to the issuance of the Company Shares, the sale
of the Shares, the Registration Statement, the Prospectus and the Pricing
Disclosure Package and other related matters as the Representative may
reasonably require, and the Company shall have furnished to such counsel such
documents as they reasonably request for the purpose of enabling them to pass upon
such matters.

5.             Covenants of the Company. 
The Company covenants and agrees as follows:

(a)       The Company will (A) prepare and timely file with
the Commission under Rule 424(b) a Prospectus containing information
previously omitted at the time of effectiveness of the Registration Statement
in reliance on Rule 430A; and (B) not file with the Commission any
amendment to the Registration Statement or supplement to the Prospectus of
which the Underwriters shall not previously have been advised and furnished with
a copy a reasonable period of time prior to the proposed filing and as to which
the Underwriters shall not have given their consent or which is not in
compliance with the Securities Act or the Rules.

 25
 

(b)       The Company shall promptly advise the Representative
in writing (A) when any post-effective amendment to the Registration
Statement shall have become effective or any supplement to the Prospectus shall
have been filed, (B) of any request by the Commission for any amendment of
the Registration Statement or the Prospectus or for any additional information,
(C) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement or of any order preventing or
suspending the use of any Preliminary Prospectus, Issuer Free Writing
Prospectus or the Prospectus or the institution or threatening of any
proceeding for that purpose and (D) of the receipt by the Company of any
notification with respect to the suspension of the qualification of the Shares
for sale in any jurisdiction or the initiation or threatening of any proceeding
for such purpose.  The Company shall use
its best efforts to prevent the issuance of any such stop order and, if issued,
to obtain as soon as possible the withdrawal thereof.

(c)       The Company will not to make any offer relating to the
Shares that would constitute an Issuer Free Writing Prospectus without the
prior written consent of the Representative. 
The Company will comply with all applicable requirements of
Rule 433 of the Rules with respect to any Issuer Free Writing Prospectus
and retain in accordance with the Rules all Issuer Free Writing Prospectuses
not required to be filed pursuant to the Rules. 
If at any time after the date hereof any events shall have occurred as a
result of which any Issuer Free Writing Prospectus, as then amended or
supplemented, would conflict with the information in the Registration
Statement, the Pricing Prospectus or the Prospectus or would include an untrue
statement of a material fact or omit to state any material fact necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading, or, if for any other reason it shall be
necessary to amend or supplement any Issuer Free Writing Prospectus, the Company
will notify the Representative and, upon its request, file such document and
prepare and furnish without charge to each Underwriter as many copies as the
Representative may from time to time reasonably request of an amended or
supplemented Issuer Free Writing Prospectus that will correct such conflict,
statement or omission or effect such compliance.

(d)       If, at any time when a Prospectus relating to the
Shares is required to be delivered under the Securities Act and the Rules, any
event occurs as a result of which the Prospectus as then amended or
supplemented would include any untrue statement of a material fact or omit to
state any material fact necessary to make the statements therein in the light
of the circumstances under which they were made not misleading, or if it shall
be necessary to amend or supplement the Registration Statement or the
Prospectus to comply with the Securities Act or the Rules, the Company promptly
shall prepare and file with the Commission, subject to paragraph (a) of
this Section 5, an amendment or supplement which shall correct such
statement or omission or an amendment which shall effect such compliance.

(e)       The Company shall make generally available to its
security holders and to the Representative as soon as practicable, but not
later than 45 days after the end of the 12-month period beginning at the end of
the fiscal quarter of the Company during which the Effective Date occurs (or 90
days if such 12-month period coincides with the Company’s fiscal year), an
earnings statement (which need not be audited) of the Company, covering such
12-month period, which shall satisfy the provisions of Section 11(a) of
the Securities Act or Rule 158 of the Rules.

 26
 

(f)        The Company shall furnish to the Representative and
counsel for the Underwriters, without charge, signed copies of the Registration
Statement (including all exhibits thereto and amendments thereof) and to each
other Underwriter a copy of the Registration Statement (without exhibits
thereto) and all amendments thereof and, so long as delivery of a Prospectus by
an Underwriter or dealer may be required by the Securities Act or the Rules, as
many copies of any Preliminary Prospectus, the Prospectus and any Issuer Free
Writing Prospectus and any amendments thereof and supplements thereto as the
Representative may reasonably request. 
The copies of the Registration Statement, any Preliminary Prospectus,
the Prospectus and any Issuer Free Writing Prospectus and each amendment and
supplement thereto furnished to the Underwriters will be identical to the
electronically transmitted copies thereof filed with the Commission pursuant to
EDGAR, except to the extent permitted by Regulation S-T.

(g)       The Company shall cooperate with the Representative
and their counsel in endeavoring to qualify the Shares for offer and sale in
connection with the offering under the laws of such jurisdictions as the
Representative may designate and shall maintain such qualifications in effect
so long as required for the distribution of the Shares; provided, however, that
the Company shall not be required in connection therewith, as a condition
thereof, to qualify as a foreign corporation or to execute a general consent to
service of process in any jurisdiction or subject itself to taxation as doing
business in any jurisdiction.

(h)       The Company, during the period when the Prospectus is
required to be delivered under the Securities Act and the Rules or the Exchange
Act, will file all reports and other documents required to be filed by the
Company with the Commission pursuant to Section 13, 14 or 15 of the
Exchange Act within the time periods required by the Exchange Act and the
regulations promulgated thereunder.

(i)        Without the prior written consent of the
Representative, for a period of 180 days after the date of this Agreement, the
Company and each of its individual directors and executive officers shall not
issue, sell or register with the Commission (other than on Form S-8
or on any successor form), or otherwise dispose of, directly or indirectly, any
equity securities of the Company (or any securities convertible into,
exercisable for or exchangeable for equity securities of the Company), except
for the issuance of the Shares pursuant to the Registration Statement and the
issuance of shares pursuant to outstanding Warrants or the Company’s existing
stock option plan or bonus plan as described in the Registration Statement and
the Prospectus.  In the event that during
this period, (A) any shares are issued pursuant to the Company’s existing
stock option plan or bonus plan that are exercisable during such 180-day period
or (B) any registration is effected on Form S-8 or on any
successor form relating to shares that are exercisable during such 180-day
period, the Company shall use commercially reasonable efforts to obtain the
written agreement of such grantee or purchaser or holder of such registered
securities that, for a period of 180 days after the date of this Agreement,
such person will not, without the prior written consent of the Representative,
offer for sale, sell, distribute, grant any option for the sale of, or
otherwise dispose of, directly or indirectly, or exercise any registration
rights with respect to, any shares of Common Stock (or any securities
convertible into, exercisable for, or exchangeable for any shares of Common
Stock) owned by such person. 
Notwithstanding the foregoing, if (a) during the last 17 days of
such 180 day period, the Company issues an earnings release or publicly
announces material news or if a material event relating to the Company occurs
or (b) prior to the expiration of such 180-day period, the Company
announces that it will release earnings during the 16-day period 

 27
 

beginning on the last day
of the 180-day period, the restrictions in this Section will
continue to apply until the expiration of the 18-day period beginning on
the issuance of the earnings release or the occurrence of the material news or
material event.

(j)        On or before completion of this offering, the Company
shall make all filings required under applicable securities laws and by the
NASDAQ Global Market (including any required registration under the Exchange
Act).

(k)       Prior to the Firm Shares Closing Date, the Company
will issue no press release or other communications directly or indirectly and
hold no press conference with respect to the Company, the condition, financial
or otherwise, or the earnings, business affairs or business prospects of any of
them, or the offering of the Shares without the prior written consent of the
Representative unless in the judgment of the Company and its counsel, and after
notification to the Representative, such press release or communication is
required by law.

(l)        The Company will apply the net proceeds from the
offering of the Company Shares in the manner set forth under “Use of Proceeds”
in the Pricing Prospectus and the Prospectus.

(m)      The Company will maintain a transfer agent and, if
necessary under the jurisdiction of incorporation of the Company, a registrar
(which may be the same entity as the transfer agent) for its Common Stock.

(n)       The Company will not take, directly or indirectly, and
will use its reasonable best efforts to cause its officers, directors or
affiliates not to take, directly or indirectly, any action designed to, or that
might in the future be expected to cause or result in, stabilization or
manipulation of the price of any securities of the Company.

(o)       Upon the request of any Underwriter, the Company shall
furnish to such Underwriter an electronic version of the Company’s trademarks,
servicemarks and corporate logo for use on the website, if any, operated by
such Underwriters for the purpose of facilitating the on-line offering of the
Shares (the “License”); provided, however, that the License shall be used
solely for the purpose described above and is granted without any fee and may
not be assigned or transferred.

(p)       The Company agrees to pay, or reimburse if paid by the
Representative, whether or not the transactions contemplated hereby are
consummated or this Agreement is terminated, all costs and expenses incident to
the public offering of the Shares and the performance of the obligations of the
Company under this Agreement including those relating to:  (i) the preparation, printing, filing
and distribution of the Registration Statement including all exhibits thereto,
each Preliminary Prospectus, the Prospectus, all amendments and supplements to
the Registration Statement and the Prospectus, any Issuer Free Writing
Prospectus and the printing, filing and distribution of this Agreement;
(ii) the preparation and delivery of certificates for the Shares to the
Underwriters; (iii) the registration or qualification of the Shares for
offer and sale under the securities or Blue Sky laws of the various
jurisdictions referred to in Section 5(g), including the reasonable fees
and disbursements of counsel for the Underwriters in connection with such
registration and qualification and the preparation, printing, distribution and
shipment of preliminary and supplementary Blue Sky memoranda; (iv) the
furnishing (including costs of 

 28
 

shipping and mailing) to
the Representative and to the Underwriters of copies of each Preliminary
Prospectus, the Prospectus and all amendments or supplements to the Prospectus,
any Issuer Free Writing Prospectus and of the several documents required by
this Section to be so furnished, as may be reasonably requested for use in
connection with the offering and sale of the Shares by the Underwriters or by
dealers to whom Shares may be sold; (v) the filing fees of the NASD in
connection with its review of the terms of the public offering;
(vi) inclusion of the Shares for listing on the NASDAQ Global Market;
(vii) the investor presentations on any roadshow undertaken in connection with
the marketing of the Shares and related expenses of the Company, including
expenses associated with any electronic roadshow, travel and lodging expenses
of the Company’s representatives and the cost of aircraft chartered in
connection with the roadshow; (viii) all transfer taxes, if any, with
respect to the sale and delivery of the Shares by the Company to the
Underwriters; and (ix) the performance of the Company’s obligations under
Sections 4, 5 and 7.  The
Underwriters agree to pay, whether or not the transactions contemplated hereby
are consummated or this Agreement is terminated, all costs and expenses
incident to the performance of the obligations of the Underwriters under this
Agreement not payable by the Company pursuant to the preceding sentence,
including, the fees and disbursements of counsel for the Underwriters and travel
and lodging expenses of the Underwriters’ representatives in connection with
the roadshow, including commercial airline travel but excluding aircraft
chartered by the Company.

(q)       The Company will pay all expenses incident to the
performance of its obligations under, and the consummation of the transactions
contemplated by, this Agreement, including (i) any stamp duties, capital
duties and stock transfer taxes, if any, payable upon the sale of the Shares by
the Company to the Underwriters, and its transfer between the Underwriters
pursuant to an agreement between such Underwriters, and (ii) the fees and
disbursements of its counsel and accountants.

6.             Covenant of the Underwriters. 
Each Underwriter represents and agrees that, unless it obtains the prior
consent of the Company, it has not made and will not make any offer relating to
the Shares that would constitute a free writing prospectus required to be filed
with the Commission by the Company or retained by the Company under
Rule 433 under the Securities Act. 
Each Underwriter further represents and agrees that it has complied and
will comply with the requirements of Rule 433 applicable to any free
writing prospectus produced by such Underwriter, including timely filing with
the Commission where required, legending and recordkeeping.

7.             Indemnification.

(a)       The Company and each of the Selling Stockholders
listed on Schedule VII hereto (the “Indemnification Stockholders”),
jointly and severally, agrees to indemnify and hold harmless each Underwriter
and each person, if any, who controls any Underwriter within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act
against any and all losses, claims, damages and liabilities, joint or several
(including any reasonable investigation, legal and other expenses incurred in
connection with, and any amount paid in settlement of, any action, suit or
proceeding or any claim asserted), to which they, or any of them, may become
subject under the Securities Act, the Exchange Act or other federal or state
law or regulation, at common law or otherwise, insofar as such losses, claims,
damages or liabilities arise out of or are based upon (i) any untrue
statement or alleged untrue statement of a material fact contained in any
Preliminary 

 29
 

Prospectus (including the
Pricing Prospectus), the Registration Statement, the Prospectus, any Issuer
Free Writing Prospectus or any amendment or supplement thereto or (ii) any
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading (in
the case of any Preliminary Prospectus, the Prospectus or any Issuer Free
Writing Prospectus, in light of the circumstances under which such statements
were made); provided, however, that such indemnity shall not inure to the
benefit of any Underwriter (or any person controlling such Underwriter) on
account of any losses, claims, damages or liabilities arising from the sale of
the Shares to any person by such Underwriter if such untrue statement or
omission or alleged untrue statement or omission was made in reliance upon and
in conformity with information furnished in writing to the Company by the
Representative on behalf of any Underwriter specifically for use therein;
provided, further, that such indemnity shall not inure to the benefit of any
Underwriter (or any person controlling such Underwriter) with respect to the
Preliminary Prospectus to the extent any such losses, claims, damages or
liabilities of such Underwriter result from the fact that such Underwriter sold
Shares to a person to whom there was not sent or given, at or prior to the
Applicable Time, a copy of the Preliminary Prospectus as then amended or
supplemented (in any case where such delivery is required by the Securities Act)
or any subsequent Issuer Free Writing Prospectus if the Company has furnished
copies thereof to such Underwriter sufficiently in advance of the Applicable
Time to allow for delivery of the amended Preliminary Prospectus or Issuer Free
Writing Prospectus to all investors prior to the Effective Time and the loss,
claim, damage or liability of such Underwriter results from an untrue statement
or omission of a material fact contained in the Preliminary Prospectus which
was corrected in such amended Preliminary Prospectus or Issuer Free Writing
Prospectus; and provided, further, that the liability of any Indemnification
Stockholder pursuant to Section 7(a), 8(a) or 9 shall not exceed the lesser of
(A) the Net Proceeds (as such term is defined in the Custody Agreement)
received from the sale of Shares by such Indemnification Stockholder pursuant
to this Agreement and (B) such Indemnification Stockholder’s Pro Rata
Contribution.  For purposes of this
Section 7(a), “Pro Rata Contribution” means, with respect to each
Indemnification Stockholder, an amount equal to the product of (w) the number
of Shares sold to the Underwriters under this Agreement by such Indemnification
Stockholder divided by the total number of Shares sold to the
Underwriters under this Agreement by the Company and all Selling Stockholders and
(x) the aggregate amount of losses, claims, damages and liabilities incurred by
the Underwriters, and any persons who control any Underwriter, for which the
Company and the Indemnification Stockholders have agreed to indemnify each
Underwriter and persons who control any Underwriter under this Section
7(a).  The information described in the
last sentence of Section 2(b) hereof constitutes the only information furnished
by the Underwriters to the Company for inclusion in the Registration Statement,
any Preliminary Prospectus (including the Pricing Prospectus), the Prospectus
or any Issuer Free Writing Prospectus. 
This indemnity agreement will be in addition to any liability which the
Company or any Indemnification Stockholder may otherwise have.

(b)       Each of the Selling Stockholders other than the
Indemnification Stockholders (the “Limited Indemnification Stockholders”),
severally and not jointly, agrees to indemnify and hold harmless each
Underwriter and each person, if any, who controls any Underwriter within the
meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act against any and all losses, claims, damages and liabilities, joint
or several (including any reasonable investigation, legal and other expenses
incurred in connection with, and any amount paid in settlement of, any action,
suit or proceeding or any claim asserted), to which they, or any of them, may
become

 30

subject under the
Securities Act, the Exchange Act or other federal or state law or regulation,
at common law or otherwise, insofar as such losses, claims, damages or
liabilities arise out of or are based upon (i) any untrue statement or
alleged untrue statement of a material fact contained in any Preliminary
Prospectus (including the Pricing Prospectus), the Registration Statement, the
Prospectus, any Issuer Free Writing Prospectus or any amendment thereof or
supplement thereto or (ii) any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading (in the case of any Preliminary Prospectus,
the Prospectus or any Issuer Free Writing Prospectus, in light of the circumstances
under which such statements were made); in each case, however, only to the
extent, that such untrue statement or alleged untrue statement or omission or
alleged omission in the Registration Statement, any Preliminary Prospectus
(including the Pricing Prospectus), the Prospectus, any Issuer Free Writing
Prospectus or any such amendment or supplement relates to information about
such Limited Indemnification Stockholder or related persons, it being
understood and agreed that the information described in the last sentence of
Section 3(h) hereof constitutes the only information furnished by such Limited
Indemnification Stockholder for inclusion in the Registration Statement, any
Preliminary Prospectus (including the Pricing Prospectus), the Prospectus, or any
Issuer Free Writing Prospectus; provided, however, that the liability of any
Limited Indemnification Stockholder pursuant to Section 7(b), 8(b) or 9 shall
not exceed the aggregate Net Proceeds (as such term is defined in the Custody
Agreement), if any, received from the sale of Shares by such Limited
Indemnification Stockholder pursuant to this Agreement.  This indemnity agreement will be in addition
to any liability which any Limited Indemnification Stockholder may otherwise
have.

(c)       Each Underwriter agrees to indemnify and hold harmless
the Company and each Selling Stockholder and each person, if any, who controls
the Company or each Selling Stockholder within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act, each director of
the Company, and each officer of the Company who signs the Registration
Statement, against any losses, claims, damages or liabilities joint or several
(including any reasonable investigation, legal and other expenses incurred in
connection with, and any amount paid in settlement of, any action, suit or
proceeding or any claim asserted), to which such party may become subject,
under the Securities Act or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon
(i) any untrue statement or alleged untrue statement of a material fact
contained in any Preliminary Prospectus (including the Pricing Prospectus), the
Registration Statement, the Prospectus, any Issuer Free Writing Prospectus or
any amendment thereof or supplement thereto or (ii) any omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading (in the case of any
Preliminary Prospectus, the Prospectus or any Issuer Free Writing Prospectus,
in light of the circumstances under which such statements were made); in each
case, however, only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in reliance upon and in
conformity with written information furnished to the Company by such
Underwriter through the Representative expressly for use therein; provided,
however, that the obligation of each Underwriter to indemnify the Company or the
Selling Stockholders (including any controlling person, director or officer
thereof) shall be limited to the net proceeds received by the Company from such
Underwriter.  The information described
in the last sentence of Section 2(b) hereof constitutes the only information
furnished by the Underwriters to the Company for inclusion in the Registration
Statement, any 

 31
 

Preliminary Prospectus
(including the Pricing Prospectus), the Prospectus or any Issuer Free Writing
Prospectus.

(d)       Any party that proposes to assert the right to be
indemnified under this Section will, promptly after receipt of notice of
commencement of any action, suit or proceeding against such party in respect of
which a claim is to be made against an indemnifying party or parties under this
Section, notify each such indemnifying party of the commencement of such
action, suit or proceeding, enclosing a copy of all papers served.  No indemnification provided for in
Section 7(a), 7(b) or 7(c) shall be available to any party who shall fail
to give notice as provided in this Section 7(d) if the party to whom
notice was not given was unaware of the proceeding to which such notice would
have related and was prejudiced by the failure to give such notice; but the
omission to notify such indemnifying party of any such action, suit or
proceeding shall not relieve it from any liability that it may have to any
indemnified party for contribution or otherwise than under this Section.  In case any such action, suit or proceeding
shall be brought against any indemnified party and it shall notify the
indemnifying party of the commencement thereof, the indemnifying party shall be
entitled to participate in, and, to the extent that it shall wish, jointly with
any other indemnifying party similarly notified, to assume the defense thereof,
with counsel reasonably satisfactory to such indemnified party, and after
notice from the indemnifying party to such indemnified party of its election to
assume the defense thereof and the approval by the indemnified party of such
counsel, the indemnifying party shall not be liable to such indemnified party
for any legal or other expenses, except as provided below and except for the
reasonable costs of investigation subsequently incurred by such indemnified
party in connection with the defense thereof. 
The indemnified party shall have the right to employ its counsel in any
such action, but the fees and expenses of such counsel shall be at the expense
of such indemnified party unless (i) the employment of counsel by such
indemnified party has been authorized in writing by the indemnifying parties,
(ii) the indemnified party shall have been advised by counsel that there
may be one or more legal defenses available to it which are different from or
in addition to those available to the indemnifying party (in which case the
indemnifying parties shall not have the right to direct the defense of such
action on behalf of the indemnified party) or (iii) the indemnifying
parties shall not have employed counsel to assume the defense of such action
within a reasonable time after notice of the commencement thereof, in each of
which cases the fees and expenses of counsel shall be at the expense of the
indemnifying parties.

(e)       An indemnifying party shall not be liable for any
settlement of any action, suit, and proceeding or claim effected without its
written consent, which consent shall not be unreasonably withheld or delayed.

8.             Reimbursement of Certain Expenses.

(a)       The Company and each of the Indemnification
Stockholders, jointly and severally, and in the case of the Indemnification
Stockholders, subject to Section 7(a) of this Agreement, hereby agree to
reimburse the Underwriters pursuant to Section 7 of this Agreement on a
monthly basis for all reasonable legal and other expenses incurred in connection
with investigating or defending any claim, action, investigation, inquiry or
other proceeding arising out of or based upon any statement or omission, or any
alleged statement or omission described in paragraph (a) of Section 7
of this Agreement, notwithstanding the absence of a judicial determination as
to the propriety and enforceability of the obligations under Section 7 or
this Section 8 and the possibility 

 32
 

that such payments might later be held to be improper;
provided, however, that to the extent that such payment is ultimately held to
be improper, the Underwriters shall promptly refund it.

(b)       Each Limited Indemnification Stockholders, subject to
Section 7(b) of this Agreement, severally and not jointly, hereby agrees
to reimburse the Underwriters pursuant to Section 7 of this Agreement on a
monthly basis for all reasonable legal and other expenses incurred in
connection with investigating or defending any claim, action, investigation,
inquiry or other proceeding arising out of or based upon any statement or
omission, or any alleged statement or omission described in paragraph (b)
of Section 7 of this Agreement with respect to such Limited
Indemnification Stockholder, notwithstanding the absence of a judicial determination as to the
propriety and enforceability of the obligations under Section 7 or this
Section 8 and the possibility that such payments might later be held to be
improper; provided, however, that to the extent that such payment is ultimately
held to be improper, the Underwriters shall promptly refund it.

9.             Contribution.  In order to
provide for just and equitable contribution in circumstances in which the
indemnification provided for in Section 7(a), 7(b) or 7(c) is due in
accordance with its terms but for any reason is unavailable to or insufficient
to hold harmless an indemnified party in respect to any losses, liabilities,
claims, damages or expenses referred to therein, then each indemnifying party
shall contribute to the aggregate losses, liabilities, claims, damages and expenses
(including any investigation, legal and other expenses reasonably incurred in
connection with, and any amount paid in settlement of, any action, suit or
proceeding or any claims asserted, but after deducting any contribution
received by any person entitled hereunder to contribution from any person who
may be liable for contribution) incurred by such indemnified party, as
incurred, in such proportion as is appropriate to reflect the relative benefits
received by the Company and the Selling Stockholders on the one hand and the
Underwriters on the other hand from the offering of the Shares pursuant to this
Agreement or, if such allocation is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred
to above but also the relative fault of the Company and the Selling
Stockholders on the one hand and the Underwriters on the other hand in
connection with the statements or omissions which resulted in such losses,
liabilities, claims, damages or expenses, as well as any other relevant
equitable considerations.  The Company,
the Selling Stockholders and the Underwriters agree that it would not be just
and equitable if contribution pursuant to this Section 9 were determined
by pro rata allocation (even if the Underwriters were treated as one entity for
such purpose) or by any other method of allocation which does not take account
of the equitable considerations referred to above.  The aggregate amount of losses, liabilities,
claims, damages and expenses incurred by an indemnified party and referred to
above shall be deemed to include any legal or other expenses reasonably
incurred by such indemnified party in investigating, preparing or defending
against any litigation, or any investigation or proceeding by any governmental
agency or body, commenced or threatened, or any claim whatsoever based upon any
such untrue or alleged untrue statement or omission or alleged omission.  Notwithstanding the provisions of this Section 9,
(i) no Underwriter (except as may be provided in the Agreement Among
Underwriters) shall be required to contribute any amount in excess of the
underwriting discount applicable to the Shares purchased by the Underwriter
hereunder; and (ii) no Selling Stockholder shall be required to contribute
any amount in excess of the Net Proceeds (as such term is defined in the
Custody Agreement), if any, of the sale of Shares received by such Selling
Stockholder.  No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any 

 33
 

person who was not guilty of such fraudulent
misrepresentation.  For purposes of this
Section 9, each person, if any, who controls an Underwriter within the
meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act shall have the same rights to contribution as such Underwriter,
and each director of the Company including any person who, with his or her
consent, is named in the Registration Statement as about to become a director
of the Company, each officer of the Company who signed the Registration
Statement, and each person, if any, who controls the Company or any/the Selling
Stockholders within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act, shall have the same rights to contribution
as the Company or any/the Selling Stockholders, as the case may be.  Any party entitled to contribution will,
promptly after receipt of notice of commencement of any action, suit or
proceeding against such party in respect of which a claim for contribution may
be made against another party or parties under this Section 9, notify such
party or parties from whom contribution may be sought, but the omission so to
notify such party or parties from whom contribution may be sought shall not
relieve the party or parties from whom contribution may be sought from any
other obligation it or they may have hereunder or otherwise than under this
Section 9.  No party shall be liable
for contribution with respect to any action, suit, proceeding or claim settled
without its written consent, which consent shall not be unreasonably withheld
or delayed.  The Underwriter’s
obligations to contribute pursuant to this Section 9 are several in
proportion to their respective underwriting commitments and not joint.

10.           Termination.

(a)       This Agreement may be terminated with respect to the
Shares to be purchased on a Closing Date by the Representative by notifying the
Company and the Selling Stockholders at any time at or before a Closing Date in
the absolute discretion of the Representative if:  (i) there has occurred any material
adverse change in the securities markets or any event, act or occurrence that
has materially disrupted, or in the opinion of the Representative, will in the
future materially disrupt, the securities markets or (ii) there shall be a
material adverse change in general financial, political or economic conditions
in the financial markets such that, in the judgment of the Representative, it
is inadvisable or impracticable to market the Shares or enforce contracts for
the sale of the Shares; (iii) there has occurred any outbreak or material
escalation of hostilities or other calamity or crisis the effect of which on
the financial market is such as to make it, in the judgment of the
Representative, inadvisable or impracticable to market the Shares or enforce
contracts for the sale of the Shares; (iv) trading in the Shares or any
securities of the Company has been suspended or materially limited by the
Commission or trading generally on the New York Stock Exchange, Inc., the
American Stock Exchange, Inc. or the NASDAQ Global Market has been suspended or
materially limited, or minimum or maximum ranges for prices for securities
shall have been fixed, or maximum ranges for prices for securities have been
required, by any of said exchanges or by such system or by order of the
Commission, the National Association of Securities Dealers, Inc., or any other
governmental or regulatory authority; (v) a banking moratorium has been
declared by any state or federal authority; or (vi) in the judgment of the
Representative, there has been, since the time of execution of this Agreement
or since the respective dates as of which information is given in the
Prospectus, any material adverse change in the assets, properties, condition,
financial or otherwise, or in the results of operations, business affairs or
business prospects of the Company and its subsidiaries considered as a whole,
whether or not arising in the ordinary course of business.

 34
 

(b)       If this Agreement is terminated pursuant to this
Section 10, neither the Company nor the Selling Stockholders shall be
under any liability to any Underwriter, and no Underwriter shall be under any
liability to the Company or a Selling Stockholders; provided, however, that in
the event of any such termination, the Company agrees to indemnify and hold
harmless the Underwriters from all expenses incident to the performance of the
obligations of the Company under this Agreement, including all costs and expenses
referred to in Section 5(p); and, provided further, if this Agreement is
terminated by the Representatives or the Underwriters because of any failure,
refusal or inability on the part of the Company or the Selling Stockholder to
comply with the terms or to fulfill any of the conditions of this Agreement,
the Company shall reimburse the Underwriters for all out-of-pocket expenses
(including the reasonable fees and disbursements of their counsel) incurred by
them in connection with the proposed purchase and sale of the Shares or in
contemplation of performing their obligations hereunder.  Notwithstanding anything in this
Section 10(b) to the contrary, no Underwriter who shall have failed or
refused to purchase the Shares agreed to be purchased by it under this
Agreement shall be relieved of liability to the Company or the other
Underwriters for damages occasioned by its refusal.

11.           Substitution of Underwriters.

(a)       If any Underwriter shall default in its obligation to
purchase on any Closing Date the Shares agreed to be purchased hereunder on
such Closing Date, the Representative shall have the right, within 36 hours
thereafter, to make arrangements for one or more of the non-defaulting
Underwriters, or any other underwriters, to purchase such Shares on the terms
contained herein.  If, however, the
Representative shall not have completed such arrangements within such 36 hour
period, then the Company shall be entitled to a further period of 36 hours
within which to procure another party or other parties satisfactory to the
Underwriters to purchase such Shares on such terms.  If, after giving effect to any arrangements
for the purchase of the Shares of a defaulting Underwriter or Underwriters by
the Representative and the Company as provided above, the aggregate number of
Shares which remains unpurchased on such Closing Date does not exceed 10% of
the aggregate number of all the Shares that all the Underwriters are obligated
to purchase on such date, then the Company shall have the right to require each
non-defaulting Underwriter to purchase the number of Shares which such
Underwriter agreed to purchase hereunder at such date and, in addition, to
require each non-defaulting Underwriter to purchase its pro rata share (based
on the number of Shares which such Underwriter agreed to purchase hereunder) of
the Shares of such defaulting Underwriter or Underwriters for which such
arrangements have not been made; but nothing herein shall relieve a defaulting
Underwriter from liability for its default. 
In any such case, either the Representative or the Company and the
Selling Stockholders shall have the right to postpone the applicable Closing
Date for a period of not more than seven days in order to effect any necessary
changes and arrangements (including any necessary amendments or supplements to
the Registration Statement or Prospectus or any other documents), and the
Company agrees to file promptly any amendments to the Registration Statement or
the Prospectus which in the opinion of the Company and the Underwriters and their
counsel may thereby be made necessary.

(b)       If, after giving effect to any arrangements for the
purchase of the Shares of a defaulting Underwriter or Underwriters by the
Representative and the Company as provided above, the aggregate number of such
Shares which remains unpurchased exceeds 10% of the aggregate number of all the
Shares to be purchased at such date, then this Agreement, or, with respect to a
Closing Date which occurs after the first Closing Date, the obligations of the 

 35
 

Underwriters to purchase
and of the Company or the Selling Stockholders, as the case may be, to sell the
Shares to be purchased and sold on such date, shall terminate, without
liability on the part of any non-defaulting Underwriter to the Company or the
Selling Stockholders, and without liability on the part of the Company or the
Selling Stockholders, except as provided in Sections 5(p), 7, 8 and
9.  The provisions of this
Section 11 shall not in any way affect the liability of any defaulting
Underwriter to the Company or the non-defaulting Underwriters arising out of
such default.  The term “Underwriter” as
used in this Agreement shall include any person substituted under this
Section 11 with like effect as if such person had originally been a party
to this Agreement with respect to such Shares.

12.           Miscellaneous.

(a)       The respective agreements, representations,
warranties, indemnities and other statements of the Company, Selling
Stockholders and the several Underwriters, as set forth in this Agreement or
made by or on behalf of them pursuant to this Agreement, shall remain in full
force and effect, regardless of any investigation (or any statement as to the
results thereof) made by or on behalf of any Underwriter or the Company or the
Selling Stockholders or any of their respective officers, directors or
controlling persons referred to in Section 6 hereof, and shall survive
delivery of and payment for the Shares. 
In addition, the provisions of Sections 5(p), 7, 8 and 9 shall survive
the termination or cancellation of this Agreement.

(b)       This Agreement has been and is made for the benefit of
the Underwriters, the Company and the Selling Stockholders and their respective
successors and assigns, and, to the extent expressed herein, for the benefit of
persons controlling any of the Underwriters, the Selling Stockholders or the
Company, and directors and officers of the Company, and their respective
successors and assigns, and no other person shall acquire or have any right
under or by virtue of this Agreement. 
The term “successors and assigns” shall not include any purchaser of
Shares from any Underwriter merely because of such purchase.

(c)       The Company acknowledges and agrees that each of the
Underwriters is acting solely in the capacity of an arm’s length contractual
counterparty to the Company with respect to the offering of Shares contemplated
hereby.  Additionally, neither the
Representative nor any of the other Underwriters is advising the Company or any
other person as to any legal, tax, investment, accounting or regulatory matters
in any jurisdiction with respect to the offering contemplated hereby or the
process leading thereto (irrespective of whether such Representative or
Underwriter has advised or is advising the Company on other matters). The
Company has conferred with its own advisors concerning such matters and shall
be responsible for making its own independent investigation and appraisal of
the transactions contemplated hereby, and the Underwriters shall have no
responsibility or liability to the Company or any other person with respect
thereto.  The Underwriters advise that
the Underwriters and their affiliates are engaged in a broad range of
securities and financial services and that they or their affiliates may have
business relationships or enter into contractual relationships with purchasers
or potential purchasers of the Company’s securities.  Any review by the Underwriters of the
Company, the transactions contemplated hereby or other matters relating to such
transactions will be performed solely for the benefit of the Underwriters and
shall not be on behalf of the Company.

 36
 

(d)       All notices and communications hereunder shall be in
writing and mailed or delivered or by telephone or telegraph if subsequently
confirmed in writing, (i) if to the Representative, c/o W.R. Hambrecht +
Co., LLC, 539 Bryant Street, San Francisco, California 94107,
Attention:  Harrison Clay, Esq., with a
copy to Stephen A. Massad, Esq., Baker Botts L.L.P., One Shell Plaza, 910 Louisiana
Street, Houston, Texas 77002; (ii) if to the Company, to its agent for
service as such agent’s address appears on the cover page of the Registration
Statement, with a copy to John J. Hentrich, Esq., Sheppard, Mullin,
Richter & Hampton LLP, 12275 El Camino Real, Suite 200,
San Diego, California 92130; (iii) if to the Texas Selling
Stockholders, to Gregory R. Samuel, Esq., Haynes and Boone, LLP, 901 Main
Street, Suite 3100, Dallas, Texas 75202; (iv) if to the California Selling
Stockholders, to Karen C. Goodin, Esq., Whalen LLP, 60 Anton Blvd., Suite 1740,
Costa Mesa, California 92626; (v)  if to Alan P. Basham, to David A.
Ebershoff, Esq., Fulbright & Jaworski L.L.P., 555 South Flower Street, 41st
Floor, Los Angeles, California 90071; (vi) if to Perseus ENRG Investment,
L.L.C., to Robert B. Ott, Esq., Arnold & Porter LLP, 1600 Tysons Blvd.,
Suite 900, McLean, Virginia 22102-4865; and (vii) if to Westport
Innovations, Inc., to Simon Millner, Corporate Counsel, 10-1750 West 75th
Avenue, Vancouver, British Columbia V6P 6G2, Canada.

(e)       This Agreement shall be governed by and construed in accordance with
the laws of the State of New York, without regard to conflicts of law
principles thereof.  The Company and the
Underwriters agree to waive trial by jury in any action, proceeding or
counterclaim brought by or on behalf of either party with respect to any matter
whatsoever relating to or arising out of this Agreement or the purchase of the
Shares hereunder.  The Company also
hereby submits to the jurisdiction of the courts of the State of New York
located in the City and County of New York or in the United States District
Court for the Southern District of New York, and each of the parties hereto
submits to the jurisdiction of such courts in any proceeding arising out of or
relating to this agreement, and agrees not to commence any suit, action or
proceeding relating thereto except in such courts, and waives, to the fullest
extent permitted by law, the right to move to dismiss or transfer any action
brought in such court on the basis of any objection to personal jurisdiction,
venue or inconvenient forum.

(f)        This Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument.

 37
 

Please confirm that the
foregoing correctly sets forth the agreement among us.

	
  

  	
  Very truly yours, 

  
	
   

  	
   

  	
   

  
	
   

  	
  CLEAN ENERGY FUELS CORP.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Rick Wheeler

  	
   

  
	
   

  	
   

  	
  Name: Rick Wheeler

  
	
   

  	
   

  	
  Title: CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SELLING STOCKHOLDERS NAMED ON

  SCHEDULE II ANNEXED HERETO

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Rick Wheeler

  	
   

  
	
   

  	
   

  	
  Name: Rick Wheeler

  
	
   

  	
   

  	
  Attorney in Fact

  
	
   

  	
   

  	
   

  
	
  Confirmed:

  	
   

  	
   

  
	
  W.R. HAMBRECHT + CO., LLC 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  On behalf of itself and as Representative of the
  several Underwriters named in Schedule I annexed hereto.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By W.R. HAMBRECHT + CO., LLC 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
  Barclay F. Corbus

  	
   

  	
   

  	
   

  
	
   

  	
  Name: Barclay F. Corbus

  	
   

  	
   

  
	
   

  	
  Title: Co-CEO

  	
   

  	
   

  
						

 

 38

SCHEDULE
I

	
  Name

  	
   

  	
  Number of

  Firm Shares

  to be

  Purchased

  	
   

  
	
  W.R. Hambrecht + Co.,
  LLC

  	
   

  	
  3,750,000

  	
   

  
	
  Simmons & Company
  International

  	
   

  	
  3,750,000

  	
   

  
	
  Susquehanna Financial
  Group, LLLP

  	
   

  	
  1,560,000

  	
   

  
	
  NBF Securities (USA)
  Corp.

  	
   

  	
  940,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  10,000,000

  	
   

  

 

 Sch I - 1

SCHEDULE
II

	
  Selling Stockholder

  	
   

  	
  Maximum

  Number of

  Option Shares

  to be Sold

  	
   

  
	
  Perseus ENRG
  Investment, L.L.C.

  	
   

  	
  292,171

  	
   

  
	
  Westport Innovations,
  Inc.

  	
   

  	
  92,575

  	
   

  
	
  Alan P. Basham

  	
   

  	
  16,174

  	
   

  
	
  Boone Pickens

  	
   

  	
  608,663

  	
   

  
	
  Andrew J. Littlefair

  	
   

  	
  29,645

  	
   

  
	
  James N. Harger

  	
   

  	
  39,528

  	
   

  
	
  Mitchell W. Pratt

  	
   

  	
  10,870

  	
   

  
	
  Joseph B. Powers

  	
   

  	
  494

  	
   

  
	
  Denis C.K. Ding

  	
   

  	
  1,976

  	
   

  
	
  Warren I. Mitchell

  	
   

  	
  19,764

  	
   

  
	
  J.L. Herrington 2002
  Family Trust

  	
   

  	
  49,409

  	
   

  
	
  Glen David Aasheim

  	
   

  	
  988

  	
   

  
	
  Ronald D. Bassett

  	
   

  	
  19,764

  	
   

  
	
  G. Michael Boswell IRA
  - FCC Custodian

  	
   

  	
  9,882

  	
   

  
	
  Brian Bradshaw

  	
   

  	
  9,882

  	
   

  
	
  Drew A. Campbell

  	
   

  	
  4,941

  	
   

  
	
  Marti J. Carlin

  	
   

  	
  4,941

  	
   

  
	
  Denise Delile

  	
   

  	
  395

  	
   

  
	
  Sally Geymuller

  	
   

  	
  4,941

  	
   

  
	
  Dick Grant

  	
   

  	
  4,941

  	
   

  
	
  M&R Ventures, LLC

  	
   

  	
  197,637

  	
   

  
	
  Chad M. Lindholm

  	
   

  	
  494

  	
   

  
	
  Eric Oberg

  	
   

  	
  19,764

  	
   

  
	
  Stephen R. Perkins

  	
   

  	
  4,941

  	
   

  
	
  Bretta Price

  	
   

  	
  99

  	
   

  
	
  Mark J. Riley

  	
   

  	
  197

  	
   

  
	
  Michael Ross

  	
   

  	
  9,882

  	
   

  
	
  Jack E. Rosser

  	
   

  	
  4,941

  	
   

  
	
  Robert L. Stillwell

  	
   

  	
  19,764

  	
   

  
	
  Aleksander A. Szewczyk

  	
   

  	
  5,000

  	
   

  
	
  Danny Tillett

  	
   

  	
  4,941

  	
   

  
	
  Jon N. Whisler

  	
   

  	
  514

  	
   

  
	
  Eugene Frenkel

  	
   

  	
  9,882

  	
   

  
	
  TOTAL

  	
   

  	
  1,500,000

  	
   

  

 

 Sch II - 1

SCHEDULE
III

LOCK-UP
SIGNATORIES

Perseus ENRG Investment,
L.L.C.

Westport Innovations,
Inc.

Alan P. Basham

Boone Pickens

Andrew J. Littlefair

James N. Harger

Mitchell W. Pratt

Richard R. Wheeler

Barbara A. Johnson

Catherine M. Weaver

Madeleine Pickens

Joseph B. Powers

Denis C.K. Ding

Peter J. Grace

Warren I. Mitchell

J.L. Herrington 2002
Family Trust

Glen David Aasheim

Ronald D. Bassett

G. Michael Boswell IRA -
FCC Custodian

Brian Bradshaw

Drew A. Campbell

Marti J. Carlin

Denise Delile

Sally Geymuller

Dick Grant

M&R Ventures, LLC

Chad M. Lindholm

Eric Oberg

Stephen R. Perkins

Bretta Price

Mark J. Riley

Michael Ross

Jack E. Rosser

Robert L. Stillwell

Aleksander A. Szewczyk

Danny Tillett

Jon N. Whisler

Eugene Frenkel

David D. Demers

John S. Herrington

James C. Miller III

Kenneth M. Socha

 Sch III - 1

SCHEDULE
IV

ISSUER
FREE WRITING PROSPECTUSES

Roadshow filed with the SEC as a free writing
prospectus on May 14, 2007.

Free writing prospectus filed with the SEC on May 25,
2007 conveying pricing terms.

 Sch IV - 1

SCHEDULE
V

CALIFORNIA
SELLING STOCKHOLDERS

	
  1.

  	
  Andrew J. Littlefair

  
	
   

  	
   

  
	
  2.

  	
  James N. Harger

  
	
   

  	
   

  
	
  3.

  	
  Mitchell W. Pratt

  
	
   

  	
   

  
	
  4.

  	
  Warren I. Mitchell

  
	
   

  	
   

  
	
  5.

  	
  Joseph B. Powers

  
	
   

  	
   

  
	
  6.

  	
  Dennis C. K. Ding

  
	
   

  	
   

  
	
  7.

  	
  John Herrington/J.L. Herrington 2002 Family Trust

  
	
   

  	
   

  
	
  8.

  	
  Chad M. Lindholm

  
	
   

  	
   

  
	
  9.

  	
  Mark J. Riley

  

 

 Sch V - 1

SCHEDULE
VI

TEXAS
SELLING STOCKHOLDERS

	
  1.

  	
  Boone Pickens

  
	
   

  	
   

  
	
  2.

  	
  Glen David Aasheim

  
	
   

  	
   

  
	
  3.

  	
  Ronald D. Bassett

  
	
   

  	
   

  
	
  4.

  	
  G. Michael Boswell IRA - FCC

  Customer

  
	
   

  	
   

  
	
  5.

  	
  Brian Bradshaw

  
	
   

  	
   

  
	
  6.

  	
  Drew A. Campbell

  
	
   

  	
   

  
	
  7.

  	
  Marti J. Carlin

  
	
   

  	
   

  
	
  8.

  	
  Denise Delile

  
	
   

  	
   

  
	
  9.

  	
  Sally Geymuller

  
	
   

  	
   

  
	
  10.

  	
  Dick Grant

  
	
   

  	
   

  
	
  11.

  	
  M&R Ventures, LLC

  
	
   

  	
   

  
	
  12.

  	
  Eric Oberg

  
	
   

  	
   

  
	
  13.

  	
  Stephen R. Perkins

  
	
   

  	
   

  
	
  14.

  	
  Bretta Price

  
	
   

  	
   

  
	
  15.

  	
  Michael Ross

  
	
   

  	
   

  
	
  16.

  	
  Jack E. Rosser

  
	
   

  	
   

  
	
  17.

  	
  Robert L. Stillwell

  
	
   

  	
   

  
	
  18.

  	
  Aleksander A. Szewczyk

  
	
   

  	
   

  
	
  19.

  	
  Danny Tillett

  
	
   

  	
   

  
	
  20.

  	
  Jon N. Whisler

  
	
   

  	
   

  
	
  21.

  	
  Eugene Frenkel

  

 

 Sch VI - 1

SCHEDULE
VII

INDEMNIFICATION
STOCKHOLDERS

	
  1.

  	
  Boone Pickens

  
	
   

  	
   

  
	
  2.

  	
  Perseus ENRG Investment, L.L.C.

  
	
   

  	
   

  
	
  3.

  	
  Westport Innovations, Inc.

  
	
   

  	
   

  
	
  4.

  	
  Andrew J. Littlefair

  
	
   

  	
   

  
	
  5.

  	
  James N. Harger

  
	
   

  	
   

  
	
  6.

  	
  Mitchell W. Pratt

  
	
   

  	
   

  
	
  7.

  	
  J&L Herrington 2002 Family Trust

  
	
   

  	
   

  
	
  8.

  	
  Warren I. Mitchell

  

 

 Sch VII - 1

Exhibit A

FORM OF
LOCK-UP AGREEMENT

[               ],
2007

W.R. HAMBRECHT + CO, LLC

(as Representative of the several Underwriters listed

in Schedule I to the Underwriting Agreement referred to
below)

c/o W.R. HAMBRECHT + CO, LLC

539 Bryant Street, Suite 100

San Francisco, California
94107

Re:          CLEAN ENERGY FUELS CORP.
— Initial Public Offering

Ladies and Gentlemen:

The
undersigned understands that you, as
Representative of the several Underwriters, propose to enter into an
Underwriting Agreement (the “Underwriting Agreement”)
with  Clean Energy Fuels Corp., a  Delaware  corporation
(the “Company”), providing for the
public offering (the “Public Offering”)
by  the several Underwriters named in Schedule I  to the Underwriting Agreement (the “Underwriters”),
of common stock  of the Company (the “Securities”).
Capitalized terms used herein and not otherwise defined shall have the meanings
set forth in the Underwriting Agreement.

In
consideration of the Underwriters’ agreement to purchase and make the Public
Offering of the Securities, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the undersigned
hereby agrees that, without the prior written consent of W.R. Hambrecht + Co.,
LLC on behalf of the Underwriters, the undersigned will not, during the period
ending 180 days after the date of the prospectus relating to the Public
Offering (the “Prospectus”), (1) offer,
pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to
purchase, lend, or otherwise transfer or dispose of, directly or indirectly,
any shares of Common Stock, $0.0001  per share par
value, of the Company (the “Common Stock”),
or any securities convertible into or exercisable or exchangeable for shares of
Common Stock (including without limitation, Common Stock which may be deemed to
be beneficially owned by the undersigned in accordance with the rules and
regulations of the Securities and Exchange Commission and securities which may
be issued upon exercise of a stock option or warrant), or (2) enter into
any swap or other agreement that transfers to another, in whole or in part, any
of the economic consequences of ownership of the Common Stock, whether any such
transaction described in clause (1) or (2) above is to be settled by
delivery of Common Stock or such other securities, in cash or otherwise, other
than:  (a) transfers or
distributions of shares of Common Stock acquired from the Underwriters in the
Public Offering; (b) transfers or distributions of shares of Common Stock
acquired in open market transactions after the completion of the Public
Offering; (c) transfers of shares of Common Stock or any security
convertible into Common

 A - 1
 

Stock as a bona
fide gift or gifts; (d) transfers of shares of Common Stock to any trust
for the direct or indirect benefit of the persons bound by the foregoing terms
or the immediate family of the persons bound by the foregoing terms; or
(e) distributions of shares of Common Stock or any security convertible
into Common Stock to the partners, members or stockholders of the persons bound
by the foregoing terms; provided, however,
that in the case of any transfer or distribution described in any of
subclauses (c) through (e) above, the transferees, donees or distributees,
as the case may be, agree to be bound by the foregoing terms and the
transferor, donor or distributor, as the case may be, would not be required to,
nor would such transferor, donor or distributor voluntarily, file a report
under Section 16(a) of the United States Securities Exchange Act of 1934,
as amended (the “Exchange Act”).  In addition, the undersigned agrees that,
without the prior written consent of W.R. Hambrecht + Co., LLC on behalf of the
Underwriters, it will not, during the period ending 180 days after the date of
the Prospectus, make any demand for or exercise any right with respect to, the
registration of any shares of Common Stock or any security convertible into or
exercisable or exchangeable for Common Stock.

Notwithstanding
the foregoing, if (1) during the last seventeen (17) days of the 180-day
restricted period, the Company issues an earnings release, publicly announces
material news or if a material event relating to the Company occurs; or
(2) prior to the expiration of the 180-day restricted period, the Company
announces that it will release earnings results during the 16-day period
beginning on the last day of the 180-day period, the restrictions imposed by
this Letter Agreement shall continue to apply until the expiration of the
18-day period beginning on the issuance of the earnings release or the
occurrence of a material news or material event.

In
furtherance of the foregoing, the Company, and any duly appointed transfer
agent for the registration or transfer of the securities described herein, are
hereby authorized to decline to make any transfer of securities if such
transfer would constitute a violation or breach of this Letter Agreement.

The
undersigned hereby represents and warrants that the undersigned has full power
and authority to enter into this Letter Agreement.  All authority herein conferred or agreed to
be conferred and any obligations of the undersigned shall be binding upon the
successors, assigns, heirs or personal representatives of the undersigned.

The
undersigned understands that, if the Underwriting Agreement does not become
effective, or if the Underwriting Agreement (other than the provisions thereof
which survive termination) shall terminate or be terminated prior to payment
for and delivery of the Securities, the undersigned shall be released from all
obligations under this Letter Agreement.

The
undersigned understands that the Underwriters are entering into the
Underwriting Agreement and proceeding with the Public Offering in reliance upon
this Letter Agreement.

 A - 2
 

This Letter
Agreement shall be governed by and construed in accordance with the laws of the
State of New York, without regard to the conflict of laws principles thereof.

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [NAME OF STOCKHOLDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 A - 3

Exhibit B

FORM OF CUSTODY AGREEMENT

for sale of shares of
common stock,

par value $0.0001 per
share, of

Clean Energy Fuels
Corp.

U.S. Stock Transfer Corporation (the “Custodian”)

[Address]

[Address]

[City, State ZIP]

Attention:  [          ]

Ladies and Gentlemen:

There are delivered to you herewith
certificate(s) representing shares of Common Stock, par value $0.0001 per share
(“Common Stock”), of Clean Energy
Fuels Corp., a Delaware corporation (the “Company”),
as set forth at the end of this Custody Agreement (this “Custody
Agreement”) on the page entitled “CERTIFICATE(S) DEPOSITED.”  Each of the certificates so delivered is
accompanied by an executed assignment form duly endorsed for transfer and is in
negotiable form bearing the signature of the undersigned.  The certificate(s) are to be held by you as
Custodian for the account of the undersigned and are to be disposed of by you
in accordance with this Custody Agreement.

If the undersigned is (i) acting as
trustee or in any fiduciary or representative capacity, the undersigned has
also delivered duly certified copies of each trust agreement, will, letters
testamentary or other instrument pursuant to which the undersigned is
authorized to act as a Selling Stockholders (as defined herein); (ii) a
corporation or limited liability company, the undersigned has also delivered
duly certified resolutions of its board of directors or managers authorizing it
to enter into this Custody Agreement, the Underwriting Agreement (as defined
herein) and the Power of Attorney (as defined herein) and duly certified copies
of such corporation’s by-laws, certificate of incorporation or other
organizational documents; or (iii) a partnership, the undersigned has also
delivered extracts of any applicable provisions of its partnership agreement
(and applicable provisions of the organizational documents or partnership
agreement(s) of the general partner(s) of such partnership) authorizing such
partnership to enter into this Custody Agreement, the Underwriting Agreement
and the Power of Attorney.

The undersigned agrees to deliver such
additional documentation as you, the Attorneys (as defined herein), the Company
or the Representative (as defined herein) or any of their respective counsel
may reasonably request to effectuate or confirm compliance with any of the
provisions hereof or of the Power of Attorney or the Underwriting Agreement,
all of the foregoing to be in form and substance satisfactory in all respects
to the party requesting such documentation.

Concurrently with the execution and delivery
of this Custody Agreement, the undersigned has executed a power of attorney
(the “Power of Attorney”)
irrevocably appointing

 B - 1
 

Andrew J. Littlefair, Richard R. Wheeler and
Mitchell W. Pratt, each with full power and authority to act alone in any
matter thereunder and with full power of substitution, the true and lawful
attorneys-in-fact of the undersigned (individually, an “Attorney”
and collectively, the “Attorneys”),
with full power and authority in the name of, for and on behalf of, the undersigned
with respect to all matters arising in connection with the sale of the Common
Stock by the undersigned pursuant to an underwriting agreement (the “Underwriting Agreement”) among the
Company, certain stockholders of the Company including the undersigned (the “Selling Stockholders”), and W.R.
Hambrecht + Co., LLC, as representative (the “Representative”)
of the several underwriters to be named in Schedule I to the
Underwriting Agreement (the “Underwriters”).  The total number of shares of Common Stock to
be sold by the undersigned to the Underwriters and set forth opposite the name
of the undersigned in Schedule II to the Underwriting Agreement is
hereinafter referred to as the “Shares.”

You are authorized and directed to hold the
certificate(s) deposited with you hereunder in your custody and, subject to the
instructions of the Attorneys, (i) to take all necessary action to cause
the Shares to be transferred on the books of the Company into such names as the
Representative, on behalf of the several Underwriters, shall have instructed,
including surrendering the certificate(s) representing the Shares to the
transfer agent for the Common Stock for cancellation, in exchange for new
certificate(s) for shares of Common Stock registered in such names and in such
denominations as the Representative shall have instructed; (ii) to deliver
such new certificate(s) to the Representative, for the accounts of the several
Underwriters, against payment for such Shares at the purchase price per Share
specified in the Underwriting Agreement and to give receipt for such payment;
(iii) to deposit the same to your account as Custodian and draw upon such
account to pay such transfer taxes, if any, payable in connection with the
transfer of the Shares to the Underwriters (“Transfer
Taxes”) as you may be instructed to pay by the Attorneys; and
(iv) to transmit to the undersigned in the manner set forth under “Manner
of Payment” below, within 24 hours of receiving instructions from the Attorneys
to do so, the excess, if any (the “Net Proceeds”),
of the amount received by you as payment for the Shares over the Transfer
Taxes, if any.  The amount of such Net
Proceeds is to be paid in the manner requested by the undersigned at the end of
this Custody Agreement or in such manner as you, in accordance with the terms
hereof, shall deem appropriate.  Upon
receipt of instructions from the Attorneys, you shall also return to the
undersigned, new certificate(s) representing the excess, if any, of the number
of shares of Common Stock represented by the certificate(s) deposited with you
hereunder over the number of Shares sold by the undersigned to the
Underwriters.

Under the terms of the Power of Attorney, the
authority conferred thereby is granted and conferred subject to and in
consideration of the interests of the Attorneys, the several Underwriters, the
Company and the other Selling Stockholders (as defined in the Underwriting
Agreement) and is irrevocable and not subject to withdrawal or termination by
any act of the undersigned or by operation of law, whether by the death or
incapacity of the undersigned (or either or any of the undersigned) or by the
occurrence of any other event or events (including, without limitation, the
termination of any trust or estate for which the undersigned is acting as
fiduciary or fiduciaries, the death or incapacity of one or more trustees,
guardians, executors or administrators under such trust or estate or the
merger, consolidation, dissolution or liquidation of any corporation or
partnership) (any of the foregoing being hereinafter referred to as an “Event”).  Accordingly, the certificate(s) deposited
with you hereunder and this Custody Agreement and your authority hereunder are
subject to and in consideration of the interests of the

 B - 2
 

several Underwriters, the Company, the
Attorneys and the other Selling Stockholders, and this Custody Agreement and
your authority hereunder are irrevocable and are not subject to withdrawal or
termination by the occurrence of any Event. 
If an Event shall occur after the execution hereof but before the
delivery of the Shares to the Underwriters, then certificate(s) representing
such Shares will be delivered by you to the Underwriters on behalf of the
undersigned in accordance with the terms and conditions of the Underwriting Agreement
and this Custody Agreement and any actions taken by you pursuant to this
Custody Agreement shall be as valid as if such Event had not occurred,
regardless of whether or not you, the Attorneys, the Underwriters or any one of
them, shall have received notice of such Event.

Notwithstanding any of the foregoing
provisions, if the Underwriting Agreement shall not have been executed and
delivered prior to [November 30], 2007, then, upon the written request of
the undersigned to you (accompanied by written notice of termination of the
Power of Attorney addressed to each of the Attorneys) on or after that date,
you are to return to the undersigned, all certificate(s), together with any
stock powers, delivered herewith.

Until payment of the purchase price for the
Shares has been made to you by or for the account of the several Underwriters,
the undersigned shall remain the owner of all shares of Common Stock
represented by the certificate(s) deposited with you hereunder and shall have
the right to vote such shares and all other securities, if any, represented by
such certificate(s) and to receive all dividends and distributions thereon,
except the right to retain custody and dispose of such shares, which is subject
to the rights of the Custodian under this Custody Agreement, the Attorneys
under the Power of Attorney and the Underwriters under the Underwriting
Agreement.  The Underwriters shall not
acquire the power or the right to direct the investment of the Shares by virtue
of this Custody Agreement until the consideration therefor is paid pursuant to
the Underwriting Agreement.

You shall be entitled to act and rely upon
any statement, request, notice or instruction respecting this Custody Agreement
given to you by the Attorneys, or any one of them.  Any Attorney has the authority to instruct
you on irregularities or discrepancies in the certificates representing shares
of Common Stock and any accompanying documents.

In taking any action requested or directed by
the Representative under the terms of this Custody Agreement, you will be
entitled to rely upon a writing signed by a Vice President, Senior Vice
President, Managing Director or General Counsel of W.R. Hambrecht + Co., LLC

It is understood that you assume no
responsibility or liability to any person other than to deal with the
certificate(s) deposited with you hereunder and the proceeds from the sale of
all or a portion of the securities represented thereby in accordance with the
provisions of this Custody Agreement. 
THE UNDERSIGNED AGREES TO INDEMNIFY YOU FOR AND TO HOLD YOU FREE FROM
AND HARMLESS AGAINST ANY AND ALL LOSS, CLAIM, DAMAGE, LIABILITY OR EXPENSE
INCURRED BY YOU ARISING OUT OF OR IN CONNECTION WITH ACTING AS CUSTODIAN
HEREUNDER, AS WELL AS THE COST AND EXPENSE OF DEFENDING AGAINST ANY CLAIM OF LIABILITY
HEREUNDER, WHICH IS NOT DUE TO YOUR OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

The representations and warranties of the
undersigned set forth in the Underwriting Agreement are hereby incorporated by
reference herein and the undersigned

 B - 3
 

represents and warrants that such
representations and warranties are true and correct on the date hereof as if
made on the date hereof.  The
representations, warranties and agreements contained herein, as well as those
contained in the Underwriting Agreement, are made for the benefit of, and may
be relied upon by, you, the other Selling Stockholders, the Attorneys, the
Company, the Underwriters and Underwriter counsel and their Representative,
agents and counsel.  These representations,
warranties and agreements shall remain operative and in full force and effect,
and shall survive delivery of and payment for the Shares, regardless of
(i) any investigation, or statement as to the results thereof, made by or
on behalf of any of the persons listed in the preceding sentence,
(ii) acceptance of the Shares and payment for them under the Underwriting
Agreement and (iii) termination of this Custody Agreement.

It is understood that the undersigned
Custodian shall serve entirely without compensation.

This Custody Agreement shall be binding upon
the undersigned and the heirs, legal representative, distributees, successors
and assigns of the undersigned.

This Custody Agreement may be signed in
counterparts which together shall constitute one and the same agreement.

This Custody Agreement shall be governed by
the laws of the State of New York without regard to the conflicts of laws
principles thereof.

Please acknowledge your acceptance hereof as
Custodian, and receipt of the certificate(s) deposited with you hereunder, by
executing and returning the enclosed copy hereof to the undersigned in care of
[                                    ].

DATED:                    ,
2007

	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 B - 4
 

 

	
  Print Name(s) and Address of
  Selling

  
	
  Stockholder(s)
  and Name and Title of

  
	
  any Person
  Signing as Agent or

  
	
  Fiduciary:

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  Taxpayer I.D.:

  
	
  Telephone:

  

 

 B - 5
 

Instruction:  If you are an individual and are married,
your spouse is required to complete this form:

SPOUSAL
CONSENT

I am the spouse of                                                 .  On behalf of myself, my heirs and legatees, I
hereby join in and consent to the terms of the foregoing Custody Agreement and
agree to the sale of the shares of Common Stock of                               ,
registered in the name of my spouse or otherwise registered, which my spouse
proposes to sell pursuant to the Underwriting Agreement (as defined therein).

DATED:                                 ,
            

	
  

  	
   

  
	
   

  	
  (Signature of
  Spouse)

  

 

 B - 6
 

Instruction:  Complete each column as to certificate(s) to
be deposited with the Custodian.

CERTIFICATE(S)
DEPOSITED

	
  Stock Certificate

  No.

  	
   

  	
  Maximum Number of Shares

  of Common Stock To Be Sold

  from Certificate

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
                         

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TOTAL:

  	
   

  	
   

  	
   

  

 

 B - 7
 

Instruction:  Indicate how you wish to receive payment for
the shares of Common Stock sold to the Underwriters.  Please note that if you are selling shares of
Common Stock registered in the name of a corporation or other association or a
trust, payment will be made only to the corporation or other association or
trust.  A wire transfer can be made only
to an account standing in exactly the same name as the person or entity,
including the corporation or other association or trust, that is the registered
owner of the Common Stock being sold.

MANNER OF PAYMENT

I request that payment of the net proceeds
from the sale of the shares of Common Stock of the Company to be sold by me
pursuant to the Underwriting Agreement be made in the following manner (CHECK
ONE):

	
  o

  	
  CHECK made payable to:

  
	
   

  	
  to be sent to the following address:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Phone: (   )

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Please send by (check one):

  
	
   

  	
   

  
	
   

  	
  o            First class mail

  
	
   

  	
  o            Federal Express

  
	
   

  	
                  Federal Express account number

  
	
   

  	
   

  
	
   

  	
  o
  or transfer to the following account:

  
	
   

  	
  Account No.

  
	
   

  	
   

  
	
   

  	
  Bank                                            See
  attached wire transfer instructions

  
	
   

  	
  (name)

  
	
   

  	
   

  
	
   

  	
  (address)

  
	
   

  	
  ABA No.

  
	
   

  	
   

  
	
   

  	
  Phone: (   )

  
	
   

  	
   

  
	
  o

  	
  Other (please specify)

  
	
   

  	
   

  

 

 B - 8
 

CUSTODIAN’S
ACKNOWLEDGMENT AND RECEIPT

[                          ],
as Custodian, acknowledges acceptance of the duties of the Custodian under the
foregoing Custody Agreement and receipt of the certificate(s) referred therein.

DATED:                         ,
2007

	
  

  	
  [CUSTODIAN]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 B - 9

Exhibit C

SELLING STOCKHOLDERS’

IRREVOCABLE POWER OF ATTORNEY

for sale of shares of
common stock,

par value $0.0001
per share, of Clean Energy Fuels Corp.

Andrew J. Littlefair

Richard R. Wheeler

Mitchell W. Pratt

c/o Clean Energy Fuels Corp.

3020 Old Ranch Parkway, Suite 200

Seal Beach, California
90740

Ladies and
Gentlemen:

The undersigned stockholder and certain other
holders of common stock of Clean Energy Fuels Corp. (the “Company”)
(such holders and the undersigned being hereinafter sometimes collectively
referred to as the “Selling Stockholders”),
propose to enter into an Underwriting Agreement, substantially in the form
attached hereto as Exhibit A (the “Underwriting Agreement”),
with the Company and W.R. Hambrecht + Co., LLC, as Representative (the “Representative”) of the several
underwriters to be named in Schedule I to the Underwriting Agreement (the “Underwriters”).  The Selling Stockholders propose to sell to
the Underwriters pursuant to the Underwriting Agreement certain authorized and
issued shares of the common stock, par value $0.0001 per share, of the Company
(the “Common Stock”) owned by them
in accordance with that certain Registration Rights Agreement dated
December 31, 2002 among the Company and the equity security holders of the
Company party thereto (as amended, the “Rights Agreement”).  It is understood that at this time there is
no commitment on the part of the Underwriters to purchase any shares of Common
Stock and no assurance that the Underwriting Agreement will be entered into by
the Company or the Underwriters.

The undersigned hereby irrevocably
constitutes and appoints Andrew J. Littlefair, Richard R. Wheeler and Mitchell
W. Pratt each with full power and authority to act alone in any matter
hereunder and with full power of substitution, the true and lawful
attorneys-in-fact of the undersigned (individually an “Attorney”
and collectively, the “Attorneys”),
with full power and authority in the name of, for and on behalf of, the
undersigned with respect to all matters arising in connection with the sale of
Common Stock by the undersigned pursuant to the Underwriting Agreement
including, but not limited to, the power and authority on behalf of the
undersigned to take any and all of the following actions:

1.             To sell, assign, transfer and deliver to the several
Underwriters up to the number of shares of Common Stock set forth on the
signature page hereof such shares of Common Stock to be represented by
certificate(s) deposited by the undersigned pursuant to the Custody Agreement
substantially in the form attached hereto as Exhibit B (the “Custody Agreement”) between the
undersigned and U.S. Stock Transfer Corporation, as Custodian (the “Custodian”), at a purchase price per
share, after deducting underwriting discounts and

 C - 1
 

commissions, to be paid by the Underwriters,
as the Attorneys, in their sole discretion, shall determine, but at the same
price per share at which the Company and all other Selling Stockholders (as
defined in the Underwriting Agreement) sell Common Stock to the Underwriters;

2.             To determine the number of shares of Common Stock to
be sold by the undersigned to the Underwriters in accordance with the Rights
Agreement, which numbers shall be no greater but may be fewer than the
corresponding numbers set forth on the signature page hereof (such total number
of shares of Common Stock as is finally determined by the Attorneys and set
forth opposite the name of the undersigned in Schedule II to the
Underwriting Agreement is hereinafter referred to as the “Shares”);

3.             To execute, deliver and perform the Underwriting
Agreement and the Custody Agreement in the respective forms attached hereto
with such customary representations, warranties and covenants as the Attorneys,
in their sole discretion, may deem appropriate, with full power to make such
amendments to the Underwriting Agreement and the Custody Agreement as the
Attorneys, in their sole discretion, may deem advisable; provided,
however, that any such amendments shall not increase the
indemnification obligations of the undersigned as set forth in the form of
Underwriting Agreement attached hereto;

4.             On behalf of the undersigned, to make such
representations and warranties and enter into the agreements contained in the
form of Underwriting Agreement attached hereto (including, without limitation,
entering into the “lock-up” agreements);

5.             (a) To instruct the Custodian on all matters
pertaining to the sale of the Shares pursuant to the Underwriting Agreement and
the delivery of certificates therefor, including:  (i) the transfer of the Shares on the
books of the Company in order to effect the sale of the Shares (including
designating the name or names in which new certificate(s) for Shares are to be
issued and the denominations thereof); (ii) the delivery to or for the
account of the Underwriters of the certificate(s) for the Shares against
receipt by the Custodian of the purchase price to be paid therefor;
(iii) the payment, out of the proceeds (net of underwriting discounts and
commissions) from the sale of the Shares by the undersigned to the
Underwriters, of any expense incurred in accordance with paragraph 6
which is not payable by the Company and any transfer taxes payable in
connection with the transfer of the Shares to the Underwriters (“Transfer Taxes”); and (iv) the
transmission to the undersigned of the proceeds, if any, from the sale of the
Shares (after deducting all amounts payable by the undersigned pursuant to clause (iii) above) and the return to the undersigned,
of new certificate(s) representing the excess, if any, of the number of shares
of Common Stock represented by certificate(s) deposited with the Custodian over
the number of Shares sold to the Underwriters; and (b) to amend the
Custody Agreement and any related documents in such manner as the Attorneys may
determine to be not materially adverse to the undersigned.

6.             To incur or authorize the incurrence of any
necessary or appropriate expense in connection with the sale of the Shares to
the Underwriters and to determine the amount of any Transfer Taxes;

7.             To take any and all steps deemed necessary or
desirable by the Attorneys in connection with the registration of the Shares
under the Securities Act of 1933, as amended (the “Securities
Act”), the Securities Exchange Act of 1934, as amended, and the
securities or Blue Sky laws of various states and jurisdictions, including,
without limitation, the giving,

 C - 2
 

making or filing of such customary
undertakings, consents to service of process and representations and agreements
and the taking of such other steps as the Attorneys may deem necessary or
desirable;

8.             To make, execute, acknowledge and deliver all such
other contracts, orders, receipts, notices, instructions, certificates, letters
and other writings, including, without limitation, communications with the
Securities and Exchange Commission, state securities commissions and the
National Association of Securities Dealers, Inc., and in general to do all
things and to take all actions which the Attorneys, in their sole discretion,
may consider necessary or desirable in connection with the sale of Shares to
the Underwriters and the public offering thereof, as fully as could the
undersigned if personally present and acting;

9.             If necessary, to endorse (in blank or otherwise) on
behalf of the undersigned the certificate(s) representing the Shares, or a
stock power or powers attached to such certificate(s); and

10.           To sign such other certificates, documents and
agreements and take any and all other actions as the Attorneys may deem
necessary or desirable in connection with the consummation of the transactions
contemplated by the Underwriting Agreement, the Custody Agreement and this
Power of Attorney.

Each Attorney may act alone in exercising the
rights and powers conferred on the Attorneys in this Power of Attorney, and the
act of any Attorney shall be the act of the Attorneys.  Each Attorney is hereby empowered to
determine in his or her sole discretion the time or times when, the purpose for
and the manner in which any power herein conferred upon him or her shall be
exercised, and the conditions, provisions or covenants of any instrument or
document which may be executed by him or her pursuant hereto.

The undersigned acknowledges receipt of a
copy of Amendment No. 4 to the Registration Statement on Form S-1, filed with
the SEC on May 14, 2007 (the “Registration Statement”),
relating to the offering of the Shares and the other shares of Common Stock
(together, the “Offered Shares”) to be sold
by the Selling Stockholders.  The
undersigned has reviewed the Registration Statement and the form of the
Underwriting Agreement attached hereto and understands the obligations and
agreements of the undersigned set forth in such form of Underwriting
Agreement.  All representations and
warranties of the Selling Stockholders in the Underwriting Agreement with
respect to the undersigned will be, as of the date of the execution of the
Underwriting Agreement and the Closing Dates (as determined in accordance with
the Underwriting Agreement), true and correct. 
All such representations and warranties will, as provided in the
Underwriting Agreement, survive the termination of the Underwriting Agreement
and the delivery of and payment for the Shares.

Upon the execution and delivery of the
Underwriting Agreement by the Attorneys on behalf of the Selling Stockholders,
the undersigned agrees to be bound by and to perform each and every covenant
and agreement contained therein of the undersigned as a Selling Stockholder.

The undersigned agrees, if so requested, to
cause its counsel to provide an opinion of counsel, addressed to Sheppard,
Mullin, Richter & Hampton LLP, which opinion shall expressly permit
reliance thereon by Sheppard, Mullin, Richter & Hampton LLP, setting forth
such matters as Sheppard, Mullin, Richter & Hampton LLP may reasonably
request in rendering

 C - 3
 

its opinion pursuant to the Underwriting
Agreement and such other documentation as the Attorneys, the Company, the
Representative or any of their respective counsel may request to effectuate any
of the provisions hereof or of the Underwriting Agreement, all of the foregoing
to be in form and substance reasonably satisfactory in all respects to the
party requesting such documentation.

This Power of Attorney and all authority
conferred hereby are granted and conferred subject to and in consideration of
the interests of the Attorneys, the several Underwriters, the Company and the
other Selling Stockholders who may become parties to the Underwriting
Agreement, and for the purposes of completing the transactions contemplated by
the Underwriting Agreement and this Power of Attorney.

This Power of Attorney is an agency coupled
with an interest and all authority conferred hereby shall be irrevocable, and
shall not be withdrawn or terminated by any act of the undersigned or by
operation of law, whether by the death or incapacity of the undersigned (or
either or any of the undersigned) or by the occurrence of any other event or
events (including, without limitation, the termination of any trust or estate
for which the undersigned is acting as a fiduciary or fiduciaries, the death or
incapacity of one or more trustees, guardians, executors or administrators
under such trust or estate or the merger, consolidation, dissolution or
liquidation of any corporation or partnership) (any of the foregoing being hereinafter
referred to as an “Event”).  If an Event shall occur after the execution
hereof but before completion of the transactions contemplated by the
Underwriting Agreement or this Power of Attorney, then certificate(s)
representing the Shares will be delivered to the Underwriters by or on behalf
of the undersigned in accordance with the terms and conditions of the
Underwriting Agreement and the Custody Agreement and any actions taken
hereunder by the Attorneys shall be as valid as if such Event had not occurred
regardless of whether or not the Custodian, the Attorneys, the Underwriters, or
any one of them, shall have received notice of such Event.

Notwithstanding any of the foregoing
provisions, if the Underwriting Agreement shall not have been executed and
delivered prior to November 30, 2007 then, upon the written notice of the
undersigned on or after that date to the Attorneys, this Power of Attorney
shall terminate subject, however, to all lawful action done or performed
pursuant hereto prior to the receipt of actual notice.

It is understood that the Attorneys, in their
capacity as such, assume no responsibility or liability to any person other
than to deal with the certificate(s) for shares of Common Stock deposited with
the Custodian pursuant to the Custody Agreement and the proceeds from the sale
of the Shares in accordance with the provisions hereof.  The Attorneys, in their capacity as such,
make no representations with respect to and shall have no responsibility for
the Registration Statement or any prospectus relating to the Shares nor, except
as herein expressly provided, for any aspect of the offering of the Shares, and the Attorneys shall not be liable for any error of judgment or for
any act done or omitted or for any mistake of fact or law except for the
Attorneys’ own gross negligence or willful misconduct.  THE UNDERSIGNED AGREES TO INDEMNIFY THE
ATTORNEYS FOR AND TO HOLD THE ATTORNEYS, JOINTLY AND SEVERALLY, FREE FROM AND
HARMLESS AGAINST ANY AND ALL LOSS, CLAIM, DAMAGE, LIABILITY OR EXPENSE INCURRED
BY OR ON BEHALF OF THE ATTORNEYS, OR ANY OF THEM, ARISING OUT OF OR IN
CONNECTION WITH ACTING AS ATTORNEYS UNDER THIS POWER OF ATTORNEY, AS WELL AS
THE COST AND EXPENSE OF DEFENDING AGAINST ANY CLAIM OF

 C - 4
 

LIABILITY HEREUNDER, WHICH IS NOT DUE TO THE
ATTORNEYS’ OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.  The undersigned agrees that the Attorneys may
consult with counsel of their choice (which may but need not be counsel for the
Company) and the Attorneys shall have full and complete authorization and
protection for any action taken or suffered by the Attorneys, or any of them
hereunder, in good faith and in accordance with the opinion of such counsel.

It is understood that the purchase price per
share of Common Stock to be paid in connection with the offering of the Shares
pursuant to the Underwriting Agreement could be higher or lower than the high
end and the low end of the price range reflected in the preliminary prospectus
filed with the SEC on May 14, 2007 relating to the Shares.

It is understood that the Attorneys shall
serve entirely without compensation.

This Power of Attorney shall be binding upon
the undersigned and the heirs, legal representatives, distributees, successors
and assigns of the undersigned.

This Power of Attorney shall be governed by
the laws of the State of New York without regard to the conflicts of laws
principles thereof.

 C - 5
 

Witness the due
execution of the foregoing Power of Attorney as of the date written below.

	
  Maximum Number of Shares of

  
	
  Common Stock to
  be Sold by Selling

  
	
  Stockholders(s):

  
	
   

  

 

	
  

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

DATED:                         ,
              

	
  Print Name and Address of Selling

  
	
  Stockholder(s) and Name and Title of any Person

  
	
  Signing as Agent or Fiduciary:

  
	
   

  
	
   

  
	
   

  
	
  Telephone: 

  	
  (    )

  
	
  Facsimile:

  	
  (    )

  

 

 C - 6
 

 

	
  STATE OF TEXAS

  	
  §

  
	
   

  	
  §

  
	
  COUNTY OF

  	
  §

  

 

This instrument was
acknowledged before me on this           
day of                                       ,
2007, by                                             ,
                                            
of                                               ,
a [                    ]
corporation, on behalf of said corporation.

	
  

  	
   

  	
   

  
	
   

  	
  Notary Public in and for the State of Texas

  

 

My
Commission Expires:

                                      

(SEAL)

 C - 7
 

 

	
  STATE OF CALIFORNIA

  	
  )

  
	
   

  	
  )

  
	
  COUNTY OF

  	
  )

  

 

On                                         ,
before me,                                         ,
a Notary Public, personally appeared                                         ,
personally known to me (or proved to me on the basis of satisfactory evidence)
to be the person(s) whose name(s) is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.

WITNESS my hand and official seal.

	
  Signature

  	
   

  	
   

  

 C - 8
 

EXHIBIT A

FORM OF UNDERWRITING AGREEMENT

 C - 9
 

EXHIBIT B

FORM OF CUSTODY AGREEMENT

 C - 10Exhibit
10.13

SEVERANCE
COMPENSATION PLAN

1.             Purpose of Plan.  The purpose of the
Plan is to protect and retain qualified employees and to reward employees for
loyal service to the Company by providing severance compensation to employees
upon their involuntary termination of employment resulting from specified
events.

2.             Definitions.  The terms defined
in this section shall have the meaning given below:

a.             “Affiliate” means a person that
directly, or indirectly, through one or more intermediaries, is controlled by
the Company.

b.             “Base
Compensation” means (i) Employee’s annual salary determined
as of the date the Employee’s termination is effective plus (ii) the Employee’s
targeted annual incentive bonus for the fiscal year of the Company in which
Employee was terminated.  A “week” of
Base Compensation shall mean Base Compensation divided by 52.

c.             “Cause”
shall be defined as any of the following events:  (i) Employee embezzles funds or otherwise
misappropriates the assets of the Company, is convicted in a court of law of or
pleads guilty or no contest to a felony or any criminal activity involving
dishonesty, fraud, breach of trust or involving money or property of the
Company, or engages in any public conduct that has a material detrimental
effect on the Company, or (ii) Employee materially breaches any of the
provisions of an employment agreement between Employee and the Company, or
(iii) Employee engages in continued and deliberate neglect or willful
misconduct in connection with the performance of, or refusal to perform
Employee’s duties, any of which has not been cured within thirty (30) days
after Employee has been provided with written notice of the same; provided,
however, that the Company shall first have given Employee written notice of his
breach of the terms of the Management Compensation Agreement or failure to
perform, and Employee shall have failed to remedy such violation within 30
calendar days of the receipt of such notice.

d.             “Change-in-Control”
means the time when (i) there is an acquisition by any individual, entity or
group, including any “person” within the meaning of Section 13(d)(3) of the
Exchange Act, of beneficial ownership within the meaning of Rule 13d-3
promulgated under the Exchange Act, of 50% or more of the combined voting power
of the then outstanding securities of the Company, other than (A) any
acquisition directly from the Company or a subsidiary of the Company, (B) any
acquisition by the Company or a subsidiary of the Company, (C) any acquisition
by an employee benefit plan (or related trust) sponsored or maintained by the
Company or a subsidiary of the Company (all such persons, referenced in
(A)-(C), the “Exempted Persons”), or (ii) approval by the board of directors or
shareholders of the Company of (A) a plan of complete liquidation or
dissolution 

of the Company, or (B)
the sale or other disposition of all or substantially all of the assets of the
Company, other than to one or more Exempted Persons.

e.             “Code”
means the Internal Revenue Code of 1986, as amended.

f.              “Committee”
means the Compensation Committee of the Board of Directors of the Company, or
any successor to the Committee.

g.             “Company”
means MAIR Holdings, Inc.

h.             “Employee”
means a person employed by the Company as a non-union salaried or hourly
employee who is regularly scheduled to work on a consistent and ongoing basis.

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

j.              “Management
Director” means an Employee of the Company whose job description identifies the
Employee’s position as a director-level position.

k.             “Officer” means an Employee who is
appointed as an officer of the Company by the Company’s Board of Directors or a
committee thereof.

l.              “Plan”
means the Company’s Severance Compensation Plan as stated herein, and as it may
be amended from time to time.

m.            “Qualifying
Termination” means (i) an Employee’s involuntary
termination without Cause due to the elimination of a job position in
connection with an organizational restructuring, or (ii) an Employee’s
involuntary termination without Cause due to a Change-in-Control.  An involuntary termination within twelve (12)
months following a Change-in-Control will be deemed to be due to such
Change-in-Control.

n.             “Year of
Service” means a consecutive 365-day period of employment with the
Company, including employment with any of the Company’s subsidiaries, and does
not include partial years.

3.             General Eligibility Requirements.  All Employees of the Company shall be eligible,
upon a Qualifying Termination, to receive the benefits described in Sections 4,
5 and 6 of the Plan.

4.             Severance
Compensation.

a.             Upon the Qualifying
Termination of any eligible Employee who has been employed by the Company for
at least 12 months, the Employee shall be entitled to severance compensation as
follows:

i.              If the Employee is
not an Officer or Management Director, the Employee shall receive a severance
benefit equal to 3 weeks of Base Compensation 

 2
 

for each Year of Service,
with a minimum severance benefit equal to 12 weeks and a maximum severance
benefit equal to 52 weeks.

ii.             If the Employee is a
Management Director, the Employee shall receive a severance benefit equal to 3
weeks of Base Compensation for each Year of Service, with a minimum severance
benefit equal to 16 weeks and a maximum severance benefit equal to 52 weeks.

iii.            If the Employee is an
Officer, the Employee shall receive a severance benefit equal to 52 weeks of
Base Compensation.

b.             Notwithstanding
Section 4a, the Committee shall have the authority, in its full discretion, to
modify the stated benefit level above, but not below, that provided by the Plan
and to authorize payment of additional pro rata anticipated bonuses through the
date of termination for a particular Employee in consideration of the
circumstances surrounding that Employee’s separation.

c.             The severance
compensation shall be paid to the eligible Employee by the Company in
installments no less frequently than monthly, with the first payment due within
thirty (30) days of the Employee’s Qualifying Termination, provided that, if
the Qualifying Termination resulted from a Change-in-Control involving the
liquidation of the Company, the severance compensation shall be paid to the
eligible Employee by the Company in a lump sum within thirty (30) days of the
Employee’s Qualifying Termination.  In
the event that an Employee has commenced receipt of benefits under this Plan
and dies before receipt of all payments, the remaining payments will be paid to
his or her estate in a lump sum within sixty (60) days of Employee’s
death.  The means of paying severance
compensation hereunder may be modified, if necessary, pursuant to paragraph 7.

5.             Treatment of Stock
Options.

a.             Upon a Qualifying
Termination, all of Employee’s unvested stock options shall immediately vest.

b.             Notwithstanding the above
provision of Section 5, if the result of a Change-in-Control is that no shares
of the Company’s stock remain available for issuance following such
Change-in-Control, then the Committee shall (i) take steps necessary to
immediately vest any unvested stock options, and (ii) provide the Employee with
a reasonable period of time to exercise any vested options, including options
that will vest upon the effective time of the Change-in-Control.  Such exercise period shall not continue
beyond the original expiration date of the option.

6.             Continuation of Benefits.  Upon the Qualifying Termination of any
eligible Employee, the Employee shall be entitled to participate in each
Company medical, dental, life and disability plan or benefit in which the
Employee participated immediately prior to the Qualifying Termination, upon the
same terms and at the same level of coverage (single or family) in place
immediately prior to the Qualifying Termination, provided that the 

 3
 

Company or an Affiliate
continues to sponsor the relevant plan. 
With respect to medical and dental coverage which the Employee has
elected to continue under COBRA or applicable state law through a plan
sponsored by the Company or an Affiliate, the Company will subsidize the cost
of premiums for such continued coverage for the applicable period to the extent
the premiums for such coverage exceed contribution rates paid by the Employee
on the date of termination of employment. 
With respect to life and disability coverage, the Company will subsidize
the cost of premiums for such continued coverage for the period in which the
Employee continues to receive severance payments under Section 4(a) above, and
no coverage is available after that period expires, with life insurance
contracts being assignable to Employees, as available.  The benefit to be provided, or payments to be
made under this paragraph, shall be reduced to the extent that the Employee
receives benefits or payments for the same occurrence under another employer-sponsored
plan to which the Employee is entitled because of the Employee’s employment
subsequent to the Qualifying Termination.

7.             Section
409A Exception. Severance compensation shall be paid under the terms of
Paragraph 4, unless they exceed the limits of Paragraph 7a, below, in which case
the excess amount of such payments shall be paid out as provided in Paragraphs
7b and c, as applicable.

a.             Severance payments
must not total more than two times the lesser of:

i.              the Employee’s
annualized compensation, including base pay and bonus, and based on Employee’s
annual rate of pay for his taxable year preceding the year of his employment
termination, or

ii.             the annual maximum
amount that may be taken into account under a qualified plan pursuant to Code
Section 401(a)(17) for the year of the Executive’s employment termination.

b.             Payments within the
limits set forth in Paragraph 7a shall be paid to an Employee in equal amounts
for the severance period described in Paragraph 4a.

c.             That portion of
payments to any Employee exceeding the limits in a., above, shall be paid in
equal installments over a period decided by the Committee which will end not
later than two-and-one-half months after the end of the taxable year of the
Employee or the Company, whichever is later, in which the Employee’s Qualifying
Termination occurred.

8.             Section
280G Payments.  If the payment of
benefits under the Plan, either alone or together with other payments to an
Employee from the Company, would constitute a “parachute payment” as defined in
Section 280G of the Code, such payment of benefits shall be reduced to the
largest amount that will result in no portion of the severance compensation
payments under the Plan being subject to the excise tax imposed by the
provisions of Section 4999 of the Code, or being disallowed as deductions to
the Company under Section 280G of the Code. 
The determination of any reduction in severance compensation payments
under this Section 8 pursuant to the foregoing 

 4
 

provision shall be made
by the Company’s independent public accountants in good faith after
consultation with the Company and the Employee, and such determination shall be
conclusive and binding.

9.             Amendment.  The Company
reserves the right at any time to terminate or amend this Plan in any respect
and without the consent of any Employee. However, the Plan, as amended, may not
be terminated or further amended in any respect upon the occurrence of a
Qualifying Termination. The power to amend, modify or terminate the Plan at any
time is reserved to the Committee.  The
Company agrees to amend its stock plans and agreements if necessary to
accommodate the accelerated vesting periods provided hereunder.

10.          Employee Agreements.  In the event an
Employee and the Company execute an Employment Agreement or other Severance
Agreement that provides for severance benefits upon the Employee’s termination,
the terms of this Plan as to a Qualifying Termination (as defined herein) shall
be applied first, with any payments due to a Qualifying Termination under any
other agreement to be offset by payments made hereunder.  The terms of this Plan shall control as to
payments by the Company due to a Qualifying Termination.

11.          Unfunded Obligations.  All benefits due a Participant or the
Participant’s beneficiary under this Plan are unfunded and unsecured, and are
payable out of the general funds of the Company.  The Company, in its sole and absolute
discretion, may establish a “grantor trust” for the payment of benefits and
obligations under this Plan, the assets of which shall at all times be subject
to the claims of creditors of the Company, as provided for in the trust.  The trust shall make distributions in
accordance with the terms of the Plan.

12.          Release
Required.  Payment of benefits
and other rights granted under the Plan are expressly conditioned upon the
Employee signing a release of all claims against the Company and related
parties on a form to be determined from time to time in the sole discretion of
the Company.  The release shall release
the Company and its predecessors, successors and Affiliates, and their
directors, officers, employees, agents and other related parties from any and
all liabilities in connection with the Employee’s relationship with the
Company.  Severance payments will begin
only after the required release becomes final and the release is no longer
subject to revocation or rescission by the Employee.

13.          Transferability of Benefits.  The right to
receive payment of any benefits under this Plan shall not be transferred,
assigned or pledged, except by beneficiary designation, by will, or under the
laws of descent and distribution, and then only if, and to the extent,
permitted by the underlying benefit plan.

14.          Taxes.  The Company may
withhold from any payment due under this Plan any taxes required to be withheld
under applicable federal, state or local tax laws or regulations.

15.          Construction, Governing Laws.  Except to the
extent that federal legislation or applicable regulations shall govern, the
validity and construction of the Plan and each of 

 5
 

its provisions shall be
subject to and governed by the laws of the State of Minnesota.  The Committee has sole authority and full
discretion to apply, interpret and amend the Plan, and to determine eligibility
and the amount of an Employee’s benefits hereunder.

16.          Severability.  If any provision
of this Plan is found, held or deemed to be void, unlawful or unenforceable
under any applicable statute or other controlling law, the remainder of this
Plan shall continue in full force and effect.

This Plan shall be
effective as of the date approved by the Committee.

	
  

  	
  MAIR
  Holdings, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Raymond W.
  Zehr, Jr.

  	
   

  
	
   

  	
  By Chair,
  Compensation Committee

  
	
   

  	
   

  
	
   

  	
  Dated: July 11,
  2007

  

 

 6

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