Document:

Filed by sedaredgar.com - Eden Energy Corp. - Exhibit 10.2

SECURITY AGREEMENT

SECURITY AGREEMENT, dated as of September 1, 2009 (this
“Agreement”), between Eden Energy Corp. (the “Company”) (the Company also
referred to as the “Debtor”) and D Sharpe Management Inc., signatory hereto, its
endorsees, transferees and assigns (the “Secured Party”), the provider of
certain loans due October 2, 2010 in the original aggregate principal amount of
up to $1,000,000, advanced pursuant to certain promissory notes (the
“Notes”).

W I T N E S S E T H:

WHEREAS, pursuant to a Loan Agreement dated October 2, 2009
between the parties and the Notes issuable thereunder, the Secured Party has
severally agreed to extend the loans to the Company to be evidenced by the
Notes; and

WHEREAS, in order to induce the Secured Party to extend the
loans evidenced by the Notes, the Debtor has agreed to execute and deliver to
the Secured Party this Agreement and to grant the Secured Party, a perfected
security interest in certain property of the Debtor to secure the prompt
payment, performance and discharge in full of all of the Company’s obligations
under the Loan Agreement and the Notes.

NOW, THEREFORE, in consideration of the agreements herein
contained and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as
follows:

	1. 	
      Certain Definitions. As used in this Agreement,
      the following terms shall have the meanings set forth in this Section 1.
      Terms used but not otherwise defined in this Agreement that are defined in
      Article 9 of the UCC (such as “account”, “chattel paper”, “commercial tort
      claim”, “deposit account”, “document”, “equipment”, “fixtures”, “general
      intangibles”, “goods”, “instruments”, “inventory”, “investment property”,
      “letter-of-credit rights”, “proceeds” and “supporting obligations”) shall
      have the respective meanings given such terms in Article 9 of the
    UCC.

	 	 	 	 
		(a) 	
      “Collateral” means the collateral in which the Secured
      Party is granted a security interest by this Agreement and which shall
      include the following personal property of the Debtor, whether presently
      owned or existing or hereafter acquired or coming into existence, wherever
      situated, and all additions and accessions thereto and all substitutions
      and replacements thereof, and all proceeds, products and accounts thereof,
      including, without limitation, all proceeds from the sale or transfer of
      the Collateral and of insurance covering the same and of any tort claims
      in connection therewith, and all dividends, interest, cash, notes,
      securities, equity interest or other property at any time and from time to
      time acquired, receivable or otherwise distributed in respect of, or in
      exchange for, any or all of the Pledged Securities (as defined
    below):

	 	 	 	 
			(i) 	
      All goods, including, without limitations, (A) all
      machinery, equipment, computers, motor vehicles, trucks, tanks, boats,
      ships, appliances, furniture, special and general tools, fixtures, test
      and quality control

	 		
      devices and other equipment of every kind and nature and
      wherever situated, together with all documents of title and documents
      representing the same, all additions and accessions thereto, replacements
      therefor, all parts therefor, and all substitutes for any of the foregoing
      and all other items used and useful in connection with the Debtor’s
      businesses and all improvements thereto; and (B) all inventory;

	 	 	 
	 	(ii) 	
      All contract rights and other general intangibles,
      including, without limitation, all partnership interests, membership
      interests, stock or other securities, rights under any of the
      Organizational Documents, agreements related to the Pledged Securities,
      licenses, distribution and other agreements, computer software (whether
      “off-the-shelf”, licensed from any third party or developed by the
      Debtor), computer software development rights, leases, franchises,
      customer lists, quality control procedures, grants and rights, goodwill,
      trademarks, service marks, trade styles, trade names, patents, patent
      applications, copyrights, Intellectual Property, and income tax
      refunds;

	 	 	 
	 	(iii) 	
      All accounts, together with all instruments, all
      documents of title representing any of the foregoing, all rights in any
      merchandising, goods, equipment, motor vehicles and trucks which any of
      the same may represent, and all right, title, security and guaranties with
      respect to each account, including any right of stoppage in
  transit;

	 	 	 
	 	(iv) 	
      All documents, letter-of-credit rights, instruments and
      chattel paper;

	 	 	 
	 	(v) 	
      All commercial tort claims;

	 	 	 
	 	(vi) 	
      All deposit accounts and all cash (whether or not
      deposited in such deposit accounts);

	 	 	 
	 	(vii) 	
      All investment property;

	 	 	 
	 	(viii) 	
      All supporting obligations; and

	 	 	 
	 	(ix) 	
      All files, records, books of account, business papers,
      and computer programs; and

	 	 	 
	 	(x) 	
      the products and proceeds of all of the foregoing
      Collateral set forth in clauses (i)-(ix) above.

Without limiting the generality of the
foregoing, the “Collateral” shall include all investment property and general
intangibles respecting ownership and/or other equity interests, including,
without limitation, the shares of capital stock and the other equity interests
of the Company, and any other shares of capital stock and/or other equity
interests of any other direct or indirect subsidiary of the Debtor obtained in
the future, and, in each case, all certificates representing such shares 

Page 2

	 		
      and/or equity interests and, in each case, all rights,
      options, warrants, stock, other securities and/or equity interests that
      may hereafter be received, receivable or distributed in respect of, or
      exchanged for, any of the foregoing (all of the foregoing being referred
      to herein as the “Pledged Securities”) and all rights arising under or in
      connection with the Pledged Securities, including, but not limited to, all
      dividends, interest and cash.

	 	 	 
	 		
      Notwithstanding the foregoing, nothing herein shall be
      deemed to constitute an assignment of any asset which, in the event of an
      assignment, becomes void by operation of applicable law or the assignment
      of which is otherwise prohibited by applicable law (in each case to the
      extent that such applicable law is not overridden by Sections 9-406, 9-407
      and/or 9-408 of the UCC or other similar applicable law); provided,
      however, that to the extent permitted by applicable law, this Agreement
      shall create a valid security interest in such asset and, to the extent
      permitted by applicable law, this Agreement shall create a valid security
      interest in the proceeds of such asset.

	 	 	 
	 	(b) 	
      “Intellectual Property” means the collective reference to
      all rights, priorities and privileges relating to intellectual property,
      whether arising under United States, multinational or foreign laws or
      otherwise, including, without limitation, (i) all copyrights arising under
      the laws of the United States, any other country or any political
      subdivision thereof, whether registered or unregistered and whether
      published or unpublished, all registrations and recordings thereof, and
      all applications in connection therewith, including, without limitation,
      all registrations, recordings and applications in the United States
      Copyright Office, (ii) all letters patent of the United States, any other
      country or any political subdivision thereof, all reissues and extensions
      thereof, and all applications for letters patent of the United States or
      any other country and all divisions, continuations and
      continuations-in-part thereof, (iii) all trademarks, trade names,
      corporate names, company names, business names, fictitious business names,
      trade dress, service marks, logos, domain names and other source or
      business identifiers, and all goodwill associated therewith, now existing
      or hereafter adopted or acquired, all registrations and recordings
      thereof, and all applications in connection therewith, whether in the
      United States Patent and Trademark Office or in any similar office or
      agency of the United States, any State thereof or any other country or any
      political subdivision thereof, or otherwise, and all common law rights
      related thereto, (iv) all trade secrets arising under the laws of the
      United States, any other country or any political subdivision thereof, (v)
      all rights to obtain any reissues, renewals or extensions of the
      foregoing, (vi) all licenses for any of the foregoing, and (vii) all
      causes of action for infringement of the foregoing.

	 	 	 
	 	(c) 	
      “Majority in Interest” shall mean, at any time of
      determination, the majority in interest (based on then-outstanding
      principal amounts of Notes at the time of such determination) of the
      Secured Party.

Page 3

	 	(d) 	
      “Necessary Endorsement” shall mean undated stock powers
      endorsed in blank or other proper instruments of assignment duly executed
      and such other instruments or documents as the Secured Party may
      reasonably request.

	 	 	 
	 	(e) 	
      “Obligations” means all of the Debtor’s obligations under
      this Agreement, the Notes, the Loan Agreement and any other instruments,
      agreements or other documents executed and/or delivered in connection
      herewith or therewith, in each case, whether now or hereafter existing,
      voluntary or involuntary, direct or indirect, absolute or contingent,
      liquidated or unliquidated, whether or not jointly owed with others, and
      whether or not from time to time decreased or extinguished and later
      increased, created or incurred, and all or any portion of such obligations
      or liabilities that are paid, to the extent all or any part of such
      payment is avoided or recovered directly or indirectly from the Secured
      Party as a preference, fraudulent transfer or otherwise as such
      obligations may be amended, supplemented, converted, extended or modified
      from time to time. Without limiting the generality of the foregoing, the
      term “Obligations” shall include, without limitation: (i) principal of,
      and interest on the Notes and the loans extended pursuant thereto; (ii)
      any and all other fees, indemnities, costs, obligations and liabilities of
      the Debtor from time to time under or in connection with this Agreement,
      the Notes, the Loan Agreement and any other instruments, agreements or
      other documents executed and/or delivered in connection herewith or
      therewith; and (iii) all amounts (including but not limited to
      post-petition interest) in respect of the foregoing that would be payable
      but for the fact that the obligations to pay such amounts are
      unenforceable or not allowable due to the existence of a bankruptcy,
      reorganization or similar proceeding involving the Debtor.

	 	 	 
	 	(f) 	
      “Organizational Documents” means with respect to the
      Debtor, the documents by which the Debtor was organized (such as a
      certificate of incorporation, certificate of limited partnership or
      articles of organization, and including, without limitation, any
      certificates of designation for preferred stock or other forms of
      preferred equity) and which relate to the internal governance of the
      Debtor (such as bylaws, a partnership agreement or an operating, limited
      liability or members agreement).

	 	 	 
	 	(g) 	
      “UCC” means the Uniform Commercial Code of the State of
      Colorado and or any other applicable law of any state or states which has
      jurisdiction with respect to all, or any portion of, the Collateral or
      this Agreement, from time to time. It is the intent of the parties that
      defined terms in the UCC should be construed in their broadest sense so
      that the term “Collateral” will be construed in its broadest sense.
      Accordingly if there are, from time to time, changes to defined terms in
      the UCC that broaden the definitions, they are incorporated herein and if
      existing definitions in the UCC are broader than the amended definitions,
      the existing ones shall be controlling.

Page 4

	2. 	
      Grant of Perfected Security Interest. As an
      inducement for the Secured Party to extend the loans as evidenced by the
      Notes and to secure the complete and timely payment, performance and
      discharge in full, as the case may be, of all of the Obligations, the
      Debtor hereby unconditionally and irrevocably pledges, grants and
      hypothecates to the Secured Party a continuing and perfected security
      interest in and to, a lien upon and a right of set-off against all of
      their respective right, title and interest of whatsoever kind and nature
      in and to, the Collateral (the “Security Interest”).

	 	 	 
	3. 	
      Delivery of Certain Collateral. Contemporaneously
      or prior to the execution of this Agreement, the Debtor shall deliver or
      cause to be delivered to the Secured Party (a) any and all certificates
      and other instruments representing or evidencing the Pledged Securities,
      and (b) any and all certificates and other instruments or documents
      representing any of the other Collateral, in each case, together with all
      Necessary Endorsements requested by the Secured Party. The Debtor is,
      contemporaneously with the execution hereof, delivering to the Secured
      Party, or has previously delivered to the Secured Party, a true and
      correct copy of each Organizational Document governing any of the Pledged
      Securities.

	 	 	 
	4. 	
      Representations, Warranties, Covenants and Agreements
      of the Debtor. The Debtor represents and warrants to, and covenants
      and agrees with, the Secured Party, except as otherwise provided in the
      Disclosure Annex to the Purchase Agreement of even date herewith, as
      follows:

	 	 	 
		(a) 	
      The Debtor has the requisite corporate, partnership,
      limited liability company or other power and authority to enter into this
      Agreement and otherwise to carry out its obligations hereunder. The
      execution, delivery and performance by the Debtor of this Agreement and
      the filings contemplated therein have been duly authorized by all
      necessary action on the part of the Debtor and no further action is
      required by the Debtor. This Agreement has been duly executed by the
      Debtor. This Agreement constitutes the legal, valid and binding obligation
      of the Debtor, enforceable against the Debtor in accordance with its terms
      except as such enforceability may be limited by applicable bankruptcy,
      insolvency, reorganization and similar laws of general application
      relating to or affecting the rights and remedies of creditors and by
      general principles of equity.

	 	 	 
		(b) 	
      The Debtor has no place of business or offices where its
      respective books of account and records are kept (other than temporarily
      at the offices of its attorneys or accountants) or places where Collateral
      is stored or located, except as set forth on Schedule A attached hereto.
      Except as specifically set forth on Schedule A, the Debtor is the record
      owner of the real property where such Collateral is located, and there
      exist no mortgages or other liens on any such real property. Except as
      disclosed on Schedule A, none of such Collateral is in the possession of
      any consignee, bailee, warehouseman, agent or processor.

	 	 	 
		(c) 	
      Except as set forth on Schedule B attached hereto, the
      Debtor is the sole owner of the Collateral (except for non-exclusive
      licenses granted by the Debtor in the

Page 5

	 		
      ordinary course of business), free and clear of any
      liens, security interests, encumbrances, rights or claims and are fully
      authorized to grant the Security Interest. There is not on file in any
      governmental or regulatory authority, agency or recording office an
      effective financing statement, security agreement, license or transfer or
      any notice of any of the foregoing (other than those that will be filed in
      favor of the Secured Party pursuant to this Agreement) covering or
      affecting any of the Collateral. So long as this Agreement shall be in
      effect, the Debtor shall not execute and shall not knowingly permit to be
      on file in any such office or agency any such financing statement or other
      document or instrument (except to the extent filed or recorded in favor of
      the Secured Party pursuant to the terms of this Agreement).

	 	 	 
	 	(d) 	
      Except as set forth on Schedule I attached hereto, no
      written claim has been received that any Collateral or Debtor's use of any
      Collateral violates the rights of any third party. There has been no
      adverse decision to the Debtor's claim of ownership rights in or exclusive
      rights to use the Collateral in any jurisdiction or to the Debtor's right
      to keep and maintain such Collateral in full force and effect, and there
      is no proceeding involving said rights pending or, to the best knowledge
      of the Debtor, threatened before any court, judicial body, administrative
      or regulatory agency, arbitrator or other governmental
authority.

	 	 	 
	 	(e) 	
      The Debtor shall at all times maintain its books of
      account and records relating to the Collateral at its principal place of
      business and its Collateral at the locations set forth on Schedule A
      attached hereto and may not relocate such books of account and records or
      tangible Collateral unless it delivers to the Secured Party at least 30
      days prior to such relocation (i) written notice of such relocation and
      the new location thereof (which must be within the United States) and (ii)
      evidence that appropriate financing statements under the UCC and other
      necessary documents have been filed and recorded and other steps have been
      taken to perfect the Security Interest to create in favor of the Secured
      Party a valid, perfected and continuing perfected first priority lien in
      the Collateral.

	 	 	 
	 	(f) 	
      This Agreement creates in favor of the Secured Party a
      valid, security interest in the Collateral, securing the payment and
      performance of the Obligations. Upon making the filings described in the
      immediately following paragraph, all security interests created hereunder
      in any Collateral which may be perfected by filing Uniform Commercial Code
      financing statements shall have been duly perfected. Except for the filing
      of the Uniform Commercial Code financing statements referred to in the
      immediately following paragraph, the recordation of the Intellectual
      Property Security Agreement (as defined below) with respect to copyrights
      and copyright applications in the United States Copyright Office referred
      to in paragraph (p), and the delivery of the certificates and other
      instruments provided in Section 3, no action is necessary to create,
      perfect or protect the security interests created hereunder. Without
      limiting the generality of the foregoing, except for the filing of said
      financing statements, the recordation of said Intellectual Property
      Security Agreement, no consent of any third parties
and

Page 6

	 		
      no authorization, approval or other action by, and no
      notice to or filing with, any governmental authority or regulatory body is
      required for (i) the execution, delivery and performance of this
      Agreement, (ii) the creation or perfection of the Security Interests
      created hereunder in the Collateral or (iii) the enforcement of the rights
      of the Secured Party hereunder.

	 	 	 
	 	(g) 	
      The Debtor hereby authorizes the Secured Party, or any of
      them, to file one or more financing statements under the UCC, with respect
      to the Security Interest with the proper filing and recording agencies in
      any jurisdiction deemed proper by them.

	 	 	 
	 	(h) 	
      The execution, delivery and performance of this Agreement
      by the Debtor does not (i) violate any of the provisions of any
      Organizational Documents of the Debtor or any judgment, decree, order or
      award of any court, governmental body or arbitrator or any applicable law,
      rule or regulation applicable to the Debtor or (ii) conflict with, or
      constitute a default (or an event that with notice or lapse of time or
      both would become a default) under, or give to others any rights of
      termination, amendment, acceleration or cancellation (with or without
      notice, lapse of time or both) of, any agreement, credit facility, debt or
      other instrument (evidencing the Debtor's debt or otherwise) or other
      understanding to which the Debtor is a party or by which any property or
      asset of the Debtor is bound or affected. No consent (including, without
      limitation, from stockholders or creditors of the Debtor) is required for
      the Debtor to enter into and perform its obligations hereunder.

	 	 	 
	 	(i) 	
      The capital stock and other equity interests listed on
      Schedule H hereto represent all capital stock and other equity interests
      owned, directly or indirectly, by the Company.

	 	 	 
	 	(j) 	
      The ownership and other equity interests in partnerships
      and limited liability companies (if any) included in the Collateral (the
      “Pledged Interests”) by their express terms do not provide that they are
      securities governed by Article 8 of the UCC and are not held in a
      securities account or by any financial intermediary.

	 	 	 
	 	(k) 	
      The Debtor shall at all times maintain the liens and
      Security Interest provided for hereunder as valid and perfected second
      priority liens and security interests in the Collateral in favor of the
      Secured Party until this Agreement and the Security Interest hereunder
      shall be terminated pursuant to Section 14 hereof. The Debtor hereby
      agrees to defend the same against the claims of any and all persons and
      entities. The Debtor shall safeguard and protect all Collateral for the
      account of the Secured Party. At the request of the Secured Party, the
      Debtor will sign and deliver to the Secured Party at any time or from time
      to time one or more financing statements pursuant to the UCC in form
      reasonably satisfactory to the Secured Party and will pay the cost of
      filing the same in all public offices wherever filing is, or is deemed by
      the Secured Party to be, necessary or desirable to effect the rights and
      obligations provided for herein. Without limiting
the

Page 7

	 		
      generality of the foregoing, the Debtor shall pay all
      fees, taxes and other amounts necessary to maintain the Collateral and the
      Security Interest hereunder, and the Debtor shall obtain and furnish to
      the Secured Party from time to time, upon demand, such releases and/or
      subordinations of claims and liens which may be required to maintain the
      priority of the Security Interest hereunder.

	 	 	 
	 	(l) 	
      The Debtor will not transfer, pledge, hypothecate,
      encumber, license, sell or otherwise dispose of any of the Collateral
      (except for non-exclusive licenses granted by the Debtor in its ordinary
      course of business and sales of inventory by a Debtor in its ordinary
      course of business) without the prior written consent of a Majority in
      Interest.

	 	 	 
	 	(m) 	
      The Debtor shall keep and preserve its equipment,
      inventory and other tangible Collateral in good condition, repair and
      order and shall not operate or locate any such Collateral (or cause to be
      operated or located) in any area excluded from insurance
  coverage.

	 	 	 
	 	(n) 	
      The Debtor shall maintain with financially sound and
      reputable insurers, insurance with respect to the Collateral owned by them
      against loss or damage of the kinds and in the amounts customarily insured
      against by entities of established reputation having similar properties
      similarly situated and in such amounts as are customarily carried under
      similar circumstances by other such entities and otherwise as is prudent
      for entities engaged in similar businesses but in any event sufficient to
      cover the full replacement cost thereof. The Debtor shall cause each
      insurance policy issued in connection herewith to provide, and the insurer
      issuing such policy to certify to the Secured Party that (a) the Secured
      Party will be named as lender loss payee and additional insured under each
      such insurance policy; (b) if such insurance be proposed to be cancelled
      or materially changed for any reason whatsoever, such insurer will
      promptly notify the Secured Party and such cancellation or change shall
      not be effective as to the Secured Party for at least thirty (30) days
      after receipt by the Secured Party of such notice, unless the effect of
      such change is to extend or increase coverage under the policy; and (c)
      the Secured Party will have the right (but no obligation) at its election
      to remedy any default in the payment of premiums within thirty (30) days
      of notice from the insurer of such default. If no Event of Default (as
      defined in the Note) exists and if the proceeds arising out of any claim
      or series of related claims do not exceed $50,000, loss payments in each
      instance will be applied by the applicable Debtor to the repair and/or
      replacement of property with respect to which the loss was incurred to the
      extent reasonably feasible, and any loss payments or the balance thereof
      remaining, to the extent not so applied, shall be payable to the
      applicable Debtor, provided, however, that payments received by the Debtor
      after an Event of Default occurs and is continuing or in excess of $50,000
      for any occurrence or series of related occurrences shall be paid to the
      Secured Party and, if received by the Debtor, shall be held in trust for
      and immediately paid over to the Secured Party unless otherwise directed
      in writing by the Secured Party. Copies of such policies or the related
      certificates, in each case, naming the Secured Party
as

Page 8

	 		
      lender loss payee and additional insured shall be
      delivered to the Secured Party at least annually and at the time any new
      policy of insurance is issued.

	 	 	 
	 	(o) 	
      The Debtor shall, within ten (10) days of obtaining
      knowledge thereof, advise the Secured Party promptly, in sufficient
      detail, of any substantial change in the Collateral, and of the occurrence
      of any event which would have a material adverse effect on the value of
      the Collateral or on the Secured Party’s security interest
  therein.

	 	 	 
	 	(p) 	
      The Debtor shall promptly execute and deliver to the
      Secured Party such further deeds, mortgages, assignments, security
      agreements, financing statements or other instruments, documents,
      certificates and assurances and take such further action as the Secured
      Party may from time to time request and may in its sole discretion deem
      necessary to perfect, protect or enforce its security interest in the
      Collateral including, without limitation, if applicable, the execution and
      delivery of a separate security agreement with respect to the Debtor’s
      Intellectual Property (“Intellectual Property Security Agreement”) in
      which the Secured Party has been granted a security interest hereunder,
      substantially in a form acceptable to the Secured Party, which
      Intellectual Property Security Agreement, other than as stated therein,
      shall be subject to all of the terms and conditions hereof.

	 	 	 
	 	(q) 	
      The Debtor shall permit the Secured Party and their
      representatives and agents to inspect the Collateral at any time, and to
      make copies of records pertaining to the Collateral as may be requested by
      a Secured Party from time to time.

	 	 	 
	 	(r) 	
      The Debtor shall take all steps reasonably necessary to
      diligently pursue and seek to preserve, enforce and collect any rights,
      claims, causes of action and accounts receivable in respect of the
      Collateral.

	 	 	 
	 	(s) 	
      The Debtor shall promptly notify the Secured Party in
      sufficient detail upon becoming aware of any attachment, garnishment,
      execution or other legal process levied against any Collateral and of any
      other information received by the Debtor that may materially affect the
      value of the Collateral, the Security Interest or the rights and remedies
      of the Secured Party hereunder.

	 	 	 
	 	(t) 	
      All information heretofore, herein or hereafter supplied
      to the Secured Party by or on behalf of the Debtor with respect to the
      Collateral is accurate and complete in all material respects as of the
      date furnished.

	 	 	 
	 	(u) 	
      The Debtor shall at all times preserve and keep in full
      force and effect valid existence and good standing and any rights and
      franchises material to its business.

	 	 	 
	 	(v) 	
      The Debtor will not change its name, type of
      organization, jurisdiction of organization, organizational identification
      number (if it has one), legal or corporate structure, or identity, or add
      any new fictitious name unless it provides at least 20 days prior written
      notice to the Secured Party of such change and, at the time of such
      written notification, Debtor provides any financing statements
  or

Page 9

	 		
      fixture filings necessary to perfect and continue
      perfected the perfected security Interest granted and evidenced by this
      Agreement.

	 	 	 
	 	(w) 	
      The Debtor may not consign any of its Inventory or sell
      any of its Inventory on bill and hold, sale or return, sale on approval,
      or other conditional terms of sale without the consent of a Majority in
      Interest which shall not be unreasonably withheld, except to the extent
      such consignment or sale does not exceed 15% of the total value of all of
      the Company’s finished goods in Inventory.

	 	 	 
	 	(x) 	
      The Debtor may not relocate its chief executive office to
      a new location without providing 30 days prior written notification
      thereof to the Secured Party and so long as, at the time of such written
      notification, the Debtor provides any financing statements or fixture
      filings necessary to perfect and continue perfected the perfected security
      Interest granted and evidenced by this Agreement.

	 	 	 
	 	(y) 	
      The Debtor was organized and remains organized solely
      under the laws of the state set forth next to the Debtor’s name in the
      first paragraph of this Agreement. Schedule D attached hereto sets forth
      the Debtor’s organizational identification number or, if the Debtor does
      not have one, states that one does not exist.

	 	 	 
	 	(z) 	
      (i) The actual name of the Debtor is the name set forth
      in the preamble above; (ii) the Debtor has no trade names except as set
      forth on Schedule E attached hereto; (iii) the Debtor has not used any
      name other than that stated in the preamble hereto or as set forth on
      Schedule E for the preceding five years; and (iv) no entity has merged
      into the Debtor or been acquired by the Debtor within the past five years
      except as set forth on Schedule E.

	 	 	 
	 	(aa) 	
      At any time and from time to time that any Collateral
      consists of instruments, certificated securities or other items that
      require or permit possession by the secured party to perfect the security
      interest created hereby, the Debtor shall deliver such Collateral to the
      Secured Party.

	 	 	 
	 	(bb) 	
      The Debtor, in its capacity as issuer, hereby agrees to
      comply with any and all orders and instructions of the Secured Party
      regarding the Pledged Interests consistent with the terms of this
      Agreement without the further consent of any Debtor as contemplated by
      Section 8-106 (or any successor section) of the UCC. Further, the Debtor
      agrees that it shall not enter into a similar agreement (or one that would
      confer “control” within the meaning of Article 8 of the UCC) with any
      other person or entity.

	 	 	 
	 	(cc) 	
      The Debtor shall cause all tangible chattel paper
      constituting Collateral to be delivered to the Secured Party, or, if such
      delivery is not possible, then to cause such tangible chattel paper to
      contain a legend noting that it is subject to the security interest
      created by this Agreement. To the extent that any Collateral consists of
      electronic chattel paper, the Debtor shall cause the underlying
    chattel

Page 10

	 		
      paper to be “marked” within the meaning of Section 9-105
      of the UCC (or successor section thereto).

	 	 	 
	 	(dd) 	
      Reserved.

	 	 	 
	 	(ee) 	
      To the extent that any Collateral consists of
      letter-of-credit rights, the applicable Debtor shall cause the issuer of
      each underlying letter of credit to consent to an assignment of the
      proceeds thereof to the Secured Party.

	 	 	 
	 	(ff) 	
      To the extent that any Collateral is in the possession of
      any third party, the Debtor shall join with the Secured Party in notifying
      such third party of the Secured Party’s security interest in such
      Collateral and shall use its best efforts to obtain an acknowledgement and
      agreement from such third party with respect to the Collateral, in form
      and substance satisfactory to the Secured Party.

	 	 	 
	 	(gg) 	
      If the Debtor shall at any time hold or acquire a
      commercial tort claim, such Debtor shall promptly notify the Secured Party
      in a writing signed by the Debtor of the particulars thereof and grant to
      the Secured Party in such writing a security interest therein and in the
      proceeds thereof, all upon the terms of this Agreement, with such writing
      to be in form and substance satisfactory to the Secured Party.

	 	 	 
	 	(hh) 	
      The Debtor shall immediately provide written notice to
      the Secured Party of any and all accounts which arise out of contracts
      with any governmental authority and, to the extent necessary to perfect or
      continue the perfected status of the Security Interest in such accounts
      and proceeds thereof, shall execute and deliver to the Secured Party an
      assignment of claims for such accounts and cooperate with the Secured
      Party in taking any other steps required, in their judgment, under the
      Federal Assignment of Claims Act or any similar federal, state or local
      statute or rule to perfect or continue the perfected status of the
      Security Interest in such accounts and proceeds thereof.

	 	 	 
	 	(ii) 	
      The Debtor shall cause each subsidiary of the Debtor to
      immediately become a party hereto (an “Additional Debtor”), by executing
      and delivering an Additional Debtor Joinder in substantially the form of
      Annex A attached hereto and comply with the provisions hereof applicable
      to the Debtor. Concurrent therewith, the Additional Debtor shall deliver
      replacement schedules for, or supplements to all other Schedules to (or
      referred to in) this Agreement, as applicable, which replacement schedules
      shall supersede, or supplements shall modify, the Schedules then in
      effect. The Additional Debtor shall also deliver such opinions of counsel,
      authorizing resolutions, good standing certificates, incumbency
      certificates, organizational documents, financing statements and other
      information and documentation as the Secured Party may reasonably request.
      Upon delivery of the foregoing to the Secured Party, the Additional Debtor
      shall be and become a party to this Agreement with the same rights and
      obligations as the Debtor, for all purposes hereof as fully and to the
      same extent as if it were an original signatory hereto and shall be deemed
      to have made the representations, warranties

Page 11

	 		
      and covenants set forth herein as of the date of
      execution and delivery of such Additional Debtor Joinder, and all
      references herein to the “Debtor” shall be deemed to include each
      Additional Debtor.

	 	 	 
	 	(jj) 	
      The Debtor shall vote the Pledged Securities to comply
      with the covenants and agreements set forth herein and in the
  Notes.

	 	 	 
	 	(kk) 	
      The Debtor shall register the pledge of the applicable
      Pledged Securities on the books of the Debtor. Further, except with
      respect to certificated securities delivered to the Secured Party, the
      applicable Debtor shall deliver to the Secured Party an acknowledgement of
      pledge (which, where appropriate, shall comply with the requirements of
      the relevant UCC with respect to perfection by registration) signed by the
      issuer of the applicable Pledged Securities, which acknowledgement shall
      confirm that: (a) it has registered the pledge on its books and records;
      and (b) at any time directed by the Secured Party during the continuation
      of an Event of Default, such issuer will transfer the record ownership of
      such Pledged Securities into the name of any designee of the Secured
      Party, will take such steps as may be necessary to effect the transfer,
      and will comply with all other instructions of the Secured Party regarding
      such Pledged Securities without the further consent of the
  Debtor.

	 	 	 
	 	(ll) 	
      In the event that, upon an occurrence of an Event of
      Default, the Secured Party shall sell all or any of the Pledged Securities
      to another party or parties (herein called the “Transferee”) or shall
      purchase or retain all or any of the Pledged Securities, the Debtor shall,
      to the extent applicable: (i) deliver to the Secured Party or the
      Transferee, as the case may be, the articles of incorporation, bylaws,
      minute books, stock certificate books, corporate seals, deeds, leases,
      indentures, agreements, evidences of indebtedness, books of account,
      financial records and all other Organizational Documents and records of
      the Debtor; (ii) use its best efforts to obtain resignations of the
      persons then serving as officers and directors of the Debtor, if so
      requested; and (iii) use its best efforts to obtain any approvals that are
      required by any governmental or regulatory body in order to permit the
      sale of the Pledged Securities to the Transferee or the purchase or
      retention of the Pledged Securities by the Secured Party and allow the
      Transferee or the Secured Party to continue the business of the
    Debtor.

	 	 	 
	 	(mm) 	
      Without limiting the generality of the other obligations
      of the Debtor hereunder, the Debtor shall, upon request, promptly (i)
      cause to be registered at the United States Copyright Office all of its
      material copyrights, (ii) cause the security interest contemplated hereby
      with respect to all Intellectual Property registered at the United States
      Copyright Office or United States Patent and Trademark Office to be duly
      recorded at the applicable office, and (iii) give the Secured Party notice
      whenever it acquires (whether absolutely or by license) or creates any
      additional material Intellectual Property.

Page 12

		(nn) 	
      The Debtor will from time to time, at the joint and
      several expense of the Debtor, promptly execute and deliver all such
      further instruments and documents, and take all such further action as may
      be necessary or desirable, or as the Secured Party may reasonably request,
      in order to perfect and protect any security interest granted or purported
      to be granted hereby or to enable the Secured Party to exercise and
      enforce their rights and remedies hereunder and with respect to any
      Collateral or to otherwise carry out the purposes of this
  Agreement.

	 	 	 
		(oo) 	
      Schedule F attached hereto lists all of the patents,
      patent applications, trademarks, trademark applications, registered
      copyrights, and domain names owned by the Debtor as of the date hereof.
      Schedule F lists all material licenses in favor of the Debtor for the use
      of any patents, trademarks, copyrights and domain names as of the date
      hereof. All material patents and trademarks of the Debtor, if any, have
      been duly recorded at the United States Patent and Trademark Office and
      all material copyrights of the Debtor have been duly recorded at the
      United States Copyright Office.

	 	 	 
		(pp) 	
      Except as set forth on Schedule G attached hereto, none
      of the account debtors or other persons or entities obligated on any of
      the Collateral is a governmental authority covered by the Federal
      Assignment of Claims Act or any similar federal, state or local statute or
      rule in respect of such Collateral.

	 	 	 
	5. 	
      Effect of Pledge on Certain Rights. If any of the
      Collateral subject to this Agreement consists of nonvoting equity or
      ownership interests (regardless of class, designation, preference or
      rights) that may be converted into voting equity or ownership interests
      upon the occurrence of certain events (including, without limitation, upon
      the transfer of all or any of the other stock or assets of the issuer), it
      is agreed that the pledge of such equity or ownership interests pursuant
      to this Agreement or the enforcement of any of the Secured Party’s rights
      hereunder shall not be deemed to be the type of event which would trigger
      such conversion rights notwithstanding any provisions in the
      Organizational Documents or agreements to which the Debtor is subject or
      to which the Debtor is party.

	 	 	 
	6. 	
      Defaults. The following events shall be “Events of
      Default”:

	 	 	 
		(a) 	
      The occurrence of an Event of Default (as defined in the
      Loan Agreement) under the Loan Agreement;

	 	 	 
		(b) 	
      Any representation or warranty of the Debtor in this
      Agreement shall prove to have been incorrect in any material respect when
      made;

	 	 	 
		(c) 	
      The failure by the Debtor to observe or perform any of
      its obligations hereunder for five (5) days after delivery to the Debtor
      of notice of such failure by or on behalf of a Secured Party unless such
      default is capable of cure but cannot be cured within such time frame and
      the Debtor is using best efforts to cure same in a timely fashion;
    or

Page 13

		(d) 	
      If any provision of this Agreement shall at any time for
      any reason be declared to be null and void, or the validity or
      enforceability thereof shall be contested by the Debtor, or a proceeding
      shall be commenced by the Debtor, or by any governmental authority having
      jurisdiction over the Debtor, seeking to establish the invalidity or
      unenforceability thereof, or the Debtor shall deny that the Debtor has any
      liability or obligation purported to be created under this
    Agreement.

	 	 	 
	7. 	
      Duty To Hold In Trust.

	 	 	 
		(a) 	
      Upon the occurrence of any Event of Default and at any
      time thereafter, the Debtor shall, upon receipt of any revenue, income,
      dividend, interest or other sums subject to the Security Interest, whether
      payable pursuant to the Notes or otherwise, or of any check, draft, note,
      trade acceptance or other instrument evidencing an obligation to pay any
      such sum, hold the same in trust for the Secured Party and shall forthwith
      endorse and transfer any such sums or instruments, or both, to the Secured
      Party, pro-rata in proportion to their initial purchases of Notes for
      application to the satisfaction of the Obligations (and if any Note is not
      outstanding, pro-rata in proportion to the initial purchases of the
      remaining Notes).

	 	 	 
		(b) 	
      If the Debtor shall become entitled to receive or shall
      receive any securities or other property (including, without limitation,
      shares of Pledged Securities or instruments representing Pledged
      Securities acquired after the date hereof, or any options, warrants,
      rights or other similar property or certificates representing a dividend,
      or any distribution in connection with any recapitalization,
      reclassification or increase or reduction of capital, or issued in
      connection with any reorganization of the Debtor) in respect of the
      Pledged Securities (whether as an addition to, in substitution of, or in
      exchange for, such Pledged Securities or otherwise), the Debtor agrees to
      (i) accept the same as the agent of the Secured Party; (ii) hold the same
      in trust on behalf of and for the benefit of the Secured Party; and (iii)
      to deliver any and all certificates or instruments evidencing the same to
      the Secured Party on or before the close of business on the fifth business
      day following the receipt thereof by the Debtor, in the exact form
      received together with the Necessary Endorsements, to be held by the
      Secured Party subject to the terms of this Agreement as
  Collateral.

	 	 	 
	8. 	
      Rights and Remedies Upon Default.

	 	 	 
		(a) 	
      Upon the occurrence of any Event of Default and at any
      time thereafter provided the same is then continuing, the Secured Party,
      acting through any agent appointed by them for such purpose, shall have
      the right to exercise all of the remedies conferred hereunder and under
      the Notes, and the Secured Party shall have all the rights and remedies of
      a secured party under the UCC. Without limitation, the Secured Party shall
      have the following rights and powers:

Page 14

	 	(i) 	
      The Secured Party shall have the right to take possession
      of the Collateral and, for that purpose, enter, with the aid and
      assistance of any person, any premises where the Collateral, or any part
      thereof, is or may be placed and remove the same, and the Debtor shall
      assemble the Collateral and make it available to the Secured Party at
      places which the Secured Party shall reasonably select, whether at the
      Debtor's premises or elsewhere, and make available to the Secured Party,
      without rent, all of the Debtor’s respective premises and facilities for
      the purpose of the Secured Party taking possession of, removing or putting
      the Collateral in saleable or disposable form.

	 	 	 
	 	(ii) 	
      Upon notice to the Debtor by the Secured Party, all
      rights of the Debtor to exercise the voting and other consensual rights
      which it would otherwise be entitled to exercise and all rights of the
      Debtor to receive the dividends and interest which it would otherwise be
      authorized to receive and retain, shall cease. Upon such notice, the
      Secured Party shall have the right to receive any interest, cash dividends
      or other payments on the Collateral and, at the option oft, to exercise in
      such the Secured Party’s discretion all voting rights pertaining thereto.
      Without limiting the generality of the foregoing, the Secured Party shall
      have the right (but not the obligation) to exercise all rights with
      respect to the Collateral as it were the sole and absolute owners thereof,
      including, without limitation, to vote and/or to exchange, at its sole
      discretion, any or all of the Collateral in connection with a merger,
      reorganization, consolidation, recapitalization or other readjustment
      concerning or involving the Collateral or the Debtor.

	 	 	 
	 	(iii) 	
      The Secured Party shall have the right to operate the
      business of the Debtor using the Collateral and shall have the right to
      assign, sell, lease or otherwise dispose of and deliver all or any part of
      the Collateral, at public or private sale or otherwise, either with or
      without special conditions or stipulations, for cash or on credit or for
      future delivery, in such parcel or parcels and at such time or times and
      at such place or places, and upon such terms and conditions as the Secured
      Party may deem commercially reasonable, all without (except as shall be
      required by applicable statute and cannot be waived) advertisement or
      demand upon or notice to any Debtor or right of redemption of a Debtor,
      which are hereby expressly waived. Upon each such sale, lease, assignment
      or other transfer of Collateral, the Secured Party may, unless prohibited
      by applicable law which cannot be waived, purchase all or any part of the
      Collateral being sold, free from and discharged of all trusts, claims,
      right of redemption and equities of the Debtor, which are hereby waived
      and released.

	 	 	 
	 	(iv) 	
      The Secured Party shall have the right (but not the
      obligation) to notify any account debtors and any obligors under
      instruments or accounts to make payments directly to the Secured Party and
      to enforce the Debtor’s rights against such account debtors and
      obligors.

Page 15

	 	(v) 	
      The Secured Party may (but are not obligated to) direct
      any financial intermediary or any other person or entity holding any
      investment property to transfer the same to the Secured Party or their
      designee.

	 	 	 
	 	(vi) 	
      The Secured Party may (but are not obligated to) transfer
      any or all Intellectual Property registered in the name of the Debtor at
      the United States Patent and Trademark Office and/or Copyright Office into
      the name of the Secured Party or any designee or any purchaser of any
      Collateral.

	 	(b) 	
      The Secured Party may comply with any applicable law in
      connection with a disposition of Collateral and such compliance will not
      be considered adversely to affect the commercial reasonableness of any
      sale of the Collateral. The Secured Party may sell the Collateral without
      giving any warranties and may specifically disclaim such warranties. If
      the Secured Party sells any of the Collateral on credit, the Debtor will
      only be credited with payments actually made by the purchaser. In
      addition, the Debtor waives any and all rights that it may have to a
      judicial hearing in advance of the enforcement of any of the Secured
      Party’s rights and remedies hereunder, including, without limitation, its
      right following an Event of Default to take immediate possession of the
      Collateral and to exercise its rights and remedies with respect
      thereto.

	 	 	 
	 	(c) 	
      For the purpose of enabling the Secured Party to further
      exercise rights and remedies under this Section 8 or elsewhere provided by
      agreement or applicable law, the Debtor hereby grants to the Secured Party
      an irrevocable, nonexclusive license (exercisable without payment of
      royalty or other compensation to the Debtor) to use, license or sublicense
      following an Event of Default, any Intellectual Property now owned or
      hereafter acquired by the Debtor, and wherever the same may be located,
      and including in such license access to all media in which any of the
      licensed items may be recorded or stored and to all computer software and
      programs used for the compilation or printout
thereof.

	9. 	
      Applications of Proceeds. The proceeds of any such
      sale, lease or other disposition of the Collateral hereunder shall be
      applied first, to the expenses of retaking, holding, storing, processing
      and preparing for sale, selling, and the like (including, without
      limitation, any taxes, fees and other costs incurred in connection
      therewith) of the Collateral, to the reasonable attorneys’ fees and
      expenses incurred by the Secured Party in enforcing their rights hereunder
      and in connection with collecting, storing and disposing of the
      Collateral, and then to satisfaction of the Obligations pro rata among the
      Secured Party (based on then-outstanding principal amounts of Notes at the
      time of any such determination), and to the payment of any other amounts
      required by applicable law, after which the Secured Party shall pay to the
      applicable Debtor any surplus proceeds. If, upon the sale, license or
      other disposition of the Collateral, the proceeds thereof are insufficient
      to pay all amounts to which the Secured Party are legally entitled, the
      Debtor will be liable for the deficiency, together with interest thereon,
      at the rate of 20% per annum or the lesser amount permitted by applicable
      law (the “Default Rate”), and the reasonable fees of any attorneys
      employed by the Secured Party to collect such

Page 16

		
      deficiency. To the extent permitted by applicable law,
      the Debtor waives all claims, damages and demands against the Secured
      Party arising out of the repossession, removal, retention or sale of the
      Collateral, unless due solely to the gross negligence or willful
      misconduct of the Secured Party as determined by a final judgment (not
      subject to further appeal) of a court of competent jurisdiction.

	 	 
	10. 	
      Securities Law Provision. The Debtor recognizes
      that the Secured Party may be limited in its ability to effect a sale to
      the public of all or part of the Pledged Securities by reason of certain
      prohibitions in the Securities Act of 1933, as amended, or other federal
      or state securities laws (collectively, the “Securities Laws”), and may be
      compelled to resort to one or more sales to a restricted group of
      purchasers who may be required to agree to acquire the Pledged Securities
      for their own account, for investment and not with a view to the
      distribution or resale thereof. The Debtor agrees that sales so made may
      be at prices and on terms less favorable than if the Pledged Securities
      were sold to the public, and that the Secured Party has no obligation to
      delay the sale of any Pledged Securities for the period of time necessary
      to register the Pledged Securities for sale to the public under the
      Securities Laws. The Debtor shall cooperate with the Secured Party in its
      attempt to satisfy any requirements under the Securities Laws (including,
      without limitation, registration thereunder if requested by the Secured
      Party) applicable to the sale of the Pledged Securities by the Secured
      Party.

	 	 
	11. 	
      Costs and Expenses. The Debtor agrees to pay all
      reasonable out-of-pocket fees, costs and expenses incurred in connection
      with any filing required hereunder, including without limitation, any
      financing statements pursuant to the UCC, continuation statements, partial
      releases and/or termination statements related thereto or any expenses of
      any searches reasonably required by the Secured Party. The Debtor shall
      also pay all other claims and charges which in the reasonable opinion of
      the Secured Party might prejudice, imperil or otherwise affect the
      Collateral or the Security Interest therein. The Debtor will also, upon
      demand, pay to the Secured Party the amount of any and all reasonable
      expenses, including the reasonable fees and expenses of its counsel and of
      any experts and agents, which the Secured Party may incur in connection
      with (i) the enforcement of this Agreement, (ii) the custody or
      preservation of, or the sale of, collection from, or other realization
      upon, any of the Collateral, or (iii) the exercise or enforcement of any
      of the rights of the Secured Party under the Notes. Until so paid, any
      fees payable hereunder shall be added to the principal amount of the Notes
      and shall bear interest at the Default Rate.

	 	 
	12. 	
      Responsibility for Collateral. The Debtor assumes
      all liabilities and responsibility in connection with all Collateral, and
      the Obligations shall in no way be affected or diminished by reason of the
      loss, destruction, damage or theft of any of the Collateral or its
      unavailability for any reason. The Secured Party agrees to act in
      accordance with commercially reasonable standards and the UCC. Without
      limiting the generality of the foregoing, (a) no Secured Party (i) has any
      duty (either before or after an Event of Default) to collect any amounts
      in respect of the Collateral or to preserve any rights relating to the
      Collateral, or (ii) has any obligation to clean-up or otherwise prepare
      the Collateral for sale, and (b) the Debtor shall remain obligated and
      liable under each

Page 17

		
      contract or agreement included in the Collateral to be
      observed or performed by the Debtor thereunder. No Secured Party shall
      have any obligation or liability under any such contract or agreement by
      reason of or arising out of this Agreement or the receipt by the Secured
      Party of any payment relating to any of the Collateral, nor shall the the
      Secured Party be obligated in any manner to perform any of the obligations
      of the Debtor under or pursuant to any such contract or agreement, to make
      inquiry as to the nature or sufficiency of any payment received by the
      Secured Party in respect of the Collateral or as to the sufficiency of any
      performance by any party under any such contract or agreement, to present
      or file any claim, to take any action to enforce any performance or to
      collect the payment of any amounts which may have been assigned to the
      Secured Party may be entitled at any time or times.

	 	 
	13. 	
      Security Interest Absolute. All rights of the
      Secured Party and all obligations of the Debtor hereunder, shall be
      absolute and unconditional, irrespective of: (a) any lack of validity or
      enforceability of this Agreement, the Notes or any agreement entered into
      in connection with the foregoing, or any portion hereof or thereof; (b)
      any change in the time, manner or place of payment or performance of, or
      in any other term of, all or any of the Obligations, or any other
      amendment or waiver of or any consent to any departure from the Notes or
      any other agreement entered into in connection with the foregoing; (c) any
      exchange, release or nonperfection of any of the Collateral, or any
      release or amendment or waiver of or consent to departure from any other
      collateral for, or any guaranty, or any other security, for all or any of
      the Obligations; (d) any action by the Secured Party to obtain, adjust,
      settle and cancel in its sole discretion any insurance claims or matters
      made or arising in connection with the Collateral; or (e) any other
      circumstance which might otherwise constitute any legal or equitable
      defense available to a Debtor, or a discharge of all or any part of the
      Security Interest granted hereby. Until the Obligations shall have been
      paid and performed in full, the rights of the Secured Party shall continue
      even if the Obligations are barred for any reason, including, without
      limitation, the running of the statute of limitations or bankruptcy. The
      Debtor expressly waives presentment, protest, notice of protest, demand,
      notice of nonpayment and demand for performance. In the event that at any
      time any transfer of any Collateral or any payment received by the Secured
      Party hereunder shall be deemed by final order of a court of competent
      jurisdiction to have been a voidable preference or fraudulent conveyance
      under the bankruptcy or insolvency laws of the United States, or shall be
      deemed to be otherwise due to any party other than the Secured Party,
      then, in any such event, the Debtor’s obligations hereunder shall survive
      cancellation of this Agreement, and shall not be discharged or satisfied
      by any prior payment thereof and/or cancellation of this Agreement, but
      shall remain a valid and binding obligation enforceable in accordance with
      the terms and provisions hereof. The Debtor waives all right to require
      the Secured Party to proceed against any other person or entity or to
      apply any Collateral which the Secured Party may hold at any time, or to
      marshal assets, or to pursue any other remedy. The Debtor waives any
      defense arising by reason of the application of the statute of limitations
      to any obligation secured hereby.

	 	 
	14. 	
      Term of Agreement. This Agreement and the Security
      Interest shall terminate on the date on which all payments under the Notes
      have been indefeasibly paid in full and all

Page 18

		
      other Obligations have been paid or discharged; provided,
      however, that all indemnities of the Debtor contained in this Agreement
      shall survive and remain operative and in full force and effect regardless
      of the termination of this Agreement.

	 	 	 
	15. 	
      Power of Attorney; Further Assurances.

	 	 	 
		(a) 	
      The Debtor authorizes the Secured Party, and does hereby
      make, constitute and appoint the Secured Party and their respective
      officers, agents, successors or assigns with full power of substitution,
      as the Debtor’s true and lawful attorney- in-fact, with power, in the name
      of the various Secured Party or the Debtor, to, after the occurrence and
      during the continuance of an Event of Default, (i) endorse any note,
      checks, drafts, money orders or other instruments of payment (including
      payments payable under or in respect of any policy of insurance) in
      respect of the Collateral that may come into possession of the Secured
      Party; (ii) to sign and endorse any financing statement pursuant to the
      UCC or any invoice, freight or express bill, bill of lading, storage or
      warehouse receipts, drafts against debtors, assignments, verifications and
      notices in connection with accounts, and other documents relating to the
      Collateral; (iii) to pay or discharge taxes, liens, security interests or
      other encumbrances at any time levied or placed on or threatened against
      the Collateral; (iv) to demand, collect, receipt for, compromise, settle
      and sue for monies due in respect of the Collateral; (v) to transfer any
      Intellectual Property or provide licenses respecting any Intellectual
      Property; and (vi) generally, at the option of the Secured Party, and at
      the expense of the Debtor, at any time, or from time to time, to execute
      and deliver any and all documents and instruments and to do all acts and
      things which the Secured Party deem necessary to protect, preserve and
      realize upon the Collateral and the Security Interest granted therein in
      order to effect the intent of this Agreement and the Notes all as fully
      and effectually as the Debtor might or could do; and the Debtor hereby
      ratifies all that said attorney shall lawfully do or cause to be done by
      virtue hereof. This power of attorney is coupled with an interest and
      shall be irrevocable for the term of this Agreement and thereafter as long
      as any of the Obligations shall be outstanding. The designation set forth
      herein shall be deemed to amend and supersede any inconsistent provision
      in the Organizational Documents or other documents or agreements to which
      the Debtor is subject or to which the Debtor is a party. Without limiting
      the generality of the foregoing, after the occurrence and during the
      continuance of an Event of Default, each Secured Party is specifically
      authorized to execute and file any applications for or instruments of
      transfer and assignment of any patents, trademarks, copyrights or other
      Intellectual Property with the United States Patent and Trademark Office
      and the United States Copyright Office.

	 	 	 
		(b) 	
      On a continuing basis, the Debtor will make, execute,
      acknowledge, deliver, file and record, as the case may be, with the proper
      filing and recording agencies in any jurisdiction, including, without
      limitation, the jurisdictions indicated on Schedule C attached hereto, all
      such instruments, and take all such action as may reasonably be deemed
      necessary or advisable, or as reasonably requested by
the

Page 19

		
       
	Secured Party, to perfect the Security Interest granted
      hereunder and otherwise to carry out the intent and purposes of this
      Agreement, or for assuring and confirming to the Secured Party the grant
      or perfection of a perfected security interest in all the Collateral under
      the UCC.
	 	 	 
		(c) 	
      The Debtor hereby irrevocably appoints the Secured Party
      as the Debtor’s attorney-in-fact, with full authority in the place and
      instead of the Debtor and in the name of the Debtor, from time to time in
      the Secured Party’s discretion, to take any action and to execute any
      instrument which the Secured Party may deem necessary or advisable to
      accomplish the purposes of this Agreement, including the filing, in its
      sole discretion, of one or more financing or continuation statements and
      amendments thereto, relative to any of the Collateral without the
      signature of the Debtor where permitted by law, which financing statements
      may (but need not) describe the Collateral as “all assets” or “all
      personal property” or words of like import, and ratifies all such actions
      taken by the Secured Party. This power of attorney is coupled with an
      interest and shall be irrevocable for the term of this Agreement and
      thereafter as long as any of the Obligations shall be
  outstanding.

	 	 	 
	16. 	
      Notices. All notices, requests, demands and other
      communications hereunder shall be subject to the notice provision of the
      Purchase Agreement (as such term is defined in the Notes).

	 	 	 
	17. 	
      Other Security. To the extent that the Obligations
      are now or hereafter secured by property other than the Collateral or by
      the guarantee, endorsement or property of any other person, firm,
      corporation or other entity, then the Secured Party shall have the right,
      in its sole discretion, to pursue, relinquish, subordinate, modify or take
      any other action with respect thereto, without in any way modifying or
      affecting any of the Secured Party’s rights and remedies
  hereunder.

	 	 	 
	18. 	
      Intentionally Omitted.

	 	 	 
	19. 	
      Miscellaneous.

	 	 	 
		(a) 	
      No course of dealing between the Debtor and the Secured
      Party, nor any failure to exercise, nor any delay in exercising, on the
      part of the Secured Party, any right, power or privilege hereunder or
      under the Notes shall operate as a waiver thereof; nor shall any single or
      partial exercise of any right, power or privilege hereunder or thereunder
      preclude any other or further exercise thereof or the exercise of any
      other right, power or privilege.

	 	 	 
		(a) 	
      All of the rights and remedies of the Secured Party with
      respect to the Collateral, whether established hereby or by the Notes or
      by any other agreements, instruments or documents or by law shall be
      cumulative and may be exercised singly or
concurrently.

Page 20

	 	(b) 	
      This Agreement constitutes the entire agreement of the
      parties with respect to the subject matter hereof and is intended to
      supersede all prior negotiations, understandings and agreements with
      respect thereto. Except as specifically set forth in this Agreement, no
      provision of this Agreement may be modified or amended except by a written
      agreement specifically referring to this Agreement and signed by the
      parties hereto.

	 	 	 
	 	(c) 	
      In the event any provision of this Agreement is held to
      be invalid, prohibited or unenforceable in any jurisdiction for any
      reason, unless such provision is narrowed by judicial construction, this
      Agreement shall, as to such jurisdiction, be construed as if such invalid,
      prohibited or unenforceable provision had been more narrowly drawn so as
      not to be invalid, prohibited or unenforceable. If, notwithstanding the
      foregoing, any provision of this Agreement is held to be invalid,
      prohibited or unenforceable in any jurisdiction, such provision, as to
      such jurisdiction, shall be ineffective to the extent of such invalidity,
      prohibition or unenforceability without invalidating the remaining portion
      of such provision or the other provisions of this Agreement and without
      affecting the validity or enforceability of such provision or the other
      provisions of this Agreement in any other jurisdiction.

	 	 	 
	 	(d) 	
      No waiver of any breach or default or any right under
      this Agreement shall be considered valid unless in writing and signed by
      the party giving such waiver, and no such waiver shall be deemed a waiver
      of any subsequent breach or default or right, whether of the same or
      similar nature or otherwise.

	 	 	 
	 	(e) 	
      This Agreement shall be binding upon and inure to the
      benefit of each party hereto and its successors and assigns.

	 	 	 
	 	(f) 	
      Each party shall take such further action and execute and
      deliver such further documents as may be necessary or appropriate in order
      to carry out the provisions and purposes of this Agreement.

	 	 	 
	 	(g) 	
      All questions concerning the construction, validity,
      enforcement and interpretation of this Agreement shall be governed by and
      construed and enforced in accordance with the internal laws of the
      Province of British Columbia, without regard to the principles of
      conflicts of law thereof. The Debtor agrees that all proceedings
      concerning the interpretations, enforcement and defense of the
      transactions contemplated by this Agreement and the Notes (whether brought
      against a party hereto or its respective affiliates, directors, officers,
      shareholders, partners, members, employees or agents) shall be commenced
      exclusively in the supreme courts sitting in the City of Vancouver. Each
      party hereto hereby irrevocably waives personal service of process and
      consents to process being served in any such proceeding by mailing a copy
      thereof via registered or certified mail or overnight delivery (with
      evidence of delivery) to such party at the address in effect for notices
      to it under this Agreement and agrees that such service shall constitute
      good and sufficient service of process and notice thereof.
  Nothing

Page 21

	 		
      contained herein shall be deemed to limit in any way any
      right to serve process in any manner permitted by law. Each party hereto
      hereby irrevocably waives, to the fullest extent permitted by applicable
      law, any and all right to trial by jury in any legal proceeding arising
      out of or relating to this Agreement or the transactions contemplated
      hereby. If any party shall commence a proceeding to enforce any provisions
      of this Agreement, then the prevailing party in such proceeding shall be
      reimbursed by the other party for its reasonable attorney’s fees and other
      costs and expenses incurred with the investigation, preparation and
      prosecution of such proceeding.

	 	 	 
	 	(h) 	
      This Agreement may be executed in any number of
      counterparts, each of which when so executed shall be deemed to be an
      original and, all of which taken together shall constitute one and the
      same Agreement. In the event that any signature is delivered by facsimile
      transmission, such signature shall create a valid binding obligation of
      the party executing (or on whose behalf such signature is executed) the
      same with the same force and effect as if such facsimile signature were
      the original thereof.

	 	 	 
	 	(i) 	
      The Debtor shall jointly and severally be liable for the
      obligations of the Debtor to the Secured Party hereunder.

	 	 	 
	 	(j) 	
      The Debtor shall indemnify, reimburse and hold harmless
      the Secured Party and their respective partners, members, shareholders,
      officers, directors, employees and agents (collectively, “Indemnitees”)
      from and against any and all losses, claims, liabilities, damages,
      penalties, suits, costs and expenses, of any kind or nature, (including
      fees relating to the cost of investigating and defending any of the
      foregoing) imposed on, incurred by or asserted against such Indemnitee in
      any way related to or arising from or alleged to arise from this Agreement
      or the Collateral, except any such losses, claims, liabilities, damages,
      penalties, suits, costs and expenses which result from the gross
      negligence or willful misconduct of the Indemnitee as determined by a
      final, nonappealable decision of a court of competent jurisdiction. This
      indemnification provision is in addition to, and not in limitation of, any
      other indemnification provision in the Notes, the Purchase Agreement (as
      such term is defined in the Notes) or any other agreement, instrument or
      other document executed or delivered in connection herewith or
      therewith.

	 	 	 
	 	(k) 	
      Nothing in this Agreement shall be construed to subject
      the Secured Party to liability as a partner in the Debtor that is a
      partnership or as a member in the Debtor that is a limited liability
      company, nor the Secured Party be deemed to have assumed any obligations
      under any partnership agreement or limited liability company agreement, as
      applicable, of the Debtor or otherwise, unless and until the Secured Party
      exercises its right to be substituted for the Debtor as a partner or
      member, as applicable, pursuant hereto.

Page 22

	 	(l) 	
      To the extent that the grant of the security interest in
      the Collateral and the enforcement of the terms hereof require the
      consent, approval or action of any partner or member, as applicable, of
      the Debtor or any direct or indirect subsidiary of the Debtor or
      compliance with any provisions of any of the Organizational Documents, the
      Debtor hereby grant such consent and approval and waive any such
      noncompliance with the terms of said documents.

IN WITNESS WHEREOF, the parties hereto have caused this
Security Agreement to be duly executed on the day and year first above
written.

EDEN ENERGY CORP.

	 	 	 
	By: 	Drew Bonnell 	 
	Title: 	Chief Financial Officer and
      Director 	 

 

 

	 	 
	D Sharpe Management Inc. 	 

Page 23

SCHEDULE A

LOCATION OF COLLATERAL

Principal Place of Business of the Debtor:

Vancouver, British Columbia

 

Locations Where Collateral is Located or Stored:

Vancouver, British Columbia 
Denver, Colorado

Page 24

SCHEDULE B

EXISTING LIENS ON COLLATERAL

Page 25

SCHEDULE C

JURISDICTIONS IN WHICH COLLATERAL LOCATED

British Columbia, Canada

Colorado, United States of America

Page 26

SCHEDULE D

ORGANIZATIONAL IDENTIFICATION NUMBERS

Page 27

SCHEDULE E

NAMES; MERGERS AND ACQUISITIONS

Page 28

SCHEDULE F

INTELLECTUAL PROPERTY

Page 29

SCHEDULE G

ACCOUNT DEBTORS

Page 30

SCHEDULE H

EQUITY INTERESTS

Page 31

SCHEDULE I

CLAIMS

Page 32

ANNEX A 
to 
SECURITY AGREEMENT

FORM OF ADDITIONAL DEBTOR JOINDER

Security Agreement dated as of September 1, 2009 made by
_________________________ and its subsidiaries party thereto from time to time,
as Debtors to and in favor of the Secured Party identified therein (the
“Security Agreement”).

Reference is made to the Security Agreement as defined above;
capitalized terms used herein and not otherwise defined herein shall have the
meanings given to such terms in, or by reference in, the Security Agreement.

The undersigned hereby agrees that upon delivery of this
Additional Debtor Joinder to the Secured Party referred to above, the
undersigned shall (a) be an Additional Debtor under the Security Agreement, (b)
have all the rights and obligations of the Debtor under the Security Agreement
as fully and to the same extent as if the undersigned was an original signatory
thereto and (c) be deemed to have made the representations and warranties set
forth in Section ___ therein as of the date of execution and delivery of this
Additional Debtor Joinder. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, THE
UNDERSIGNED SPECIFICALLY GRANTS TO THE SECURED PARTY A SECURITY INTEREST IN THE
COLLATERAL AS MORE FULLY SET FORTH IN THE SECURITY AGREEMENT AND ACKNOWLEDGES
AND AGREES TO THE WAIVER OF JURY TRIAL PROVISIONS SET FORTH THEREIN.

Attached hereto are supplemental and/or replacement Schedules
to the Security Agreement, as applicable.

An executed copy of this Joinder shall be delivered to the
Secured Party, and the Secured Party may rely on the matters set forth herein on
or after the date hereof. This Joinder shall not be modified, amended or
terminated without the prior written consent of the Secured Party.

IN WITNESS WHEREOF, the undersigned has caused this Joinder to
be executed in the name and on behalf of the undersigned.

[Name of Additional Debtor]

	 	 	 
	By: 	 	 
	 	 	 
	Name: 	 	 
	 	 	 
	Title: 	 	 
	 	 	 
	Address: 	 	 
	  	 	 
	Dated: 	 	 

Page 33www.eXFILE.com 888.775-4789 --- NORTH AMERICAN GALVANIZING -- FORM 8K

    EXHIBIT
10.00

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    NORTH
AMERICAN GALVANIZING & COATINGS, INC.

    2009
INCENTIVE STOCK PLAN

    (Amended
and Restated as of October 1, 2009)

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    TABLE
OF CONTENTS

    
 

    
      
        
          	 	 	
                  PAGE 

                
	 	 	 
	
                  § 1.

                	
                  BACKGROUND
      AND PURPOSE

                	
                  1

                

           

          	
                  §
      2.

                	
                  DEFINITIONS

                	
                  1

                

        

         

        
          	
                  2.1

                	
                  Account

                	
                  1

                
	
                  2.2

                	
                  Affiliate

                	
                  2

                
	
                  2.3

                	
                  Automatic
      Deferral Period

                	
                  2

                
	
                  2.4

                	
                  Beneficiary

                	
                  2

                
	
                  2.5

                	
                  Board

                	
                  2

                
	
                  2.6

                	
                  Certificate

                	
                  2

                
	
                  2.7

                	
                  Change
      Effective Date

                	
                  2

                
	
                  2.8

                	
                  Change
      in Control

                	
                  2

                
	
                  2.9

                	
                  Code

                	
                  5

                
	
                  2.10

                	
                  Committee

                	
                  5

                
	
                  2.11

                	
                  Company

                	
                  5

                
	
                  2.12

                	
                  Deferral
      Period

                	
                  5

                
	
                  2.13

                	
                  Director

                	
                  5

                
	
                  2.14

                	
                  Elective
      Deferral Period

                	
                  5

                
	
                  2.15

                	
                  Fair
      Market Value

                	
                  5

                
	
                  2.16

                	
                  ISO

                	
                  6

                
	
                  2.17

                	
                  Inside
      Director

                	
                  6

                
	
                  2.18

                	
                  Key
      Employee

                	
                  7

                
	
                  2.19

                	
                  1933
      Act

                	
                  7

                
	
                  2.20

                	
                  1934
      Act

                	
                  7

                
	
                  2.21

                	
                  Non-ISO

                	
                  7

                
	
                  2.22

                	
                  Option

                	
                  7

                
	
                  2.23

                	
                  Option
      Certificate

                	
                  7

                
	
                  2.24

                	
                  Option
      Price

                	
                  7

                
	
                  2.25

                	
                  Outside
      Director

                	
                  7

                
	
                  2.26

                	
                  Parent

                	
                  7

                
	
                  2.27

                	
                  Plan

                	
                  7

                
	
                  2.28

                	
                  Preexisting
      Plan

                	
                  7

                

        

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

        
          
             

          

          
            i

            
              

            

          

          
             

          

        

        
          TABLE
OF CONTENTS

          (continued)

          
 

        

        
          	
                  2.29

                	
                  Rule
      16b-3

                	
                  8

                
	
                  2.30

                	
                  SAR
      Value

                	
                  8

                
	
                  2.31

                	
                  Stock

                	
                  8

                
	
                  2.32

                	
                  Stock
      Appreciation Right

                	
                  8

                
	
                  2.33

                	
                  Stock
      Appreciation Right Certificate

                	
                  8

                
	
                  2.34

                	
                  Stock
      Grant

                	
                  8

                
	
                  2.35

                	
                  Stock
      Grant Certificate

                	
                  8

                
	
                  2.36

                	
                  Stock
      Unit Grant

                	
                  8

                
	
                  2.37

                	
                  Subsidiary

                	
                  8

                
	
                  2.38

                	
                  Ten
      Percent Shareholder

                	
                  8

                

        

         

         

         

         

         

         

         

         

         

         

         

        
          	
                  §
      3.

                	
                  SHARES
      AND GRANT LIMITS

                	
                  9

                

        

         

         

        
          	
                  3.1

                	
                  Shares
      Reserved

                	
                  9

                
	
                  3.2

                	
                  Source
      of Shares

                	
                  9

                
	
                  3.3

                	
                  Reduction
      and Restoration of Shares Reserved

                	
                  10

                
	
                  3.4

                	
                  Use
      of Proceeds

                	
                  11

                
	
                  3.5

                	
                  Grant
      Limits

                	
                  11

                
	
                  3.6

                	
                  Preexisting
      Plan

                	
                  11

                

        

         

         

         

         

         

         

         

        
          	
                  §
      4.

                	
                  EFFECTIVE
      DATE

                	
                  11

                

        

         

         

        
          	
                  §
      5.

                	
                  COMMITTEE

                	
                  11

                

           

           

          	
                  §
      6.

                	
                  ELIGIBILITY

                	
                  12

                

           

           

          	
                  §
      7.

                	
                  OPTIONS

                	
                  12

                

           

           

          	
                  7.1

                	
                  Committee
      Action

                	
                  12

                
	
                  7.2

                	
                  Option
      Certificate

                	
                  12

                
	
                  7.3

                	
                  $100,000
      Limit

                	
                  13

                
	
                  7.4

                	
                  Option
      Price

                	
                  13

                
	
                  7.5

                	
                  Payment

                	
                  14

                
	
                  7.6

                	
                  Exercise

                	
                  14

                

           

           

           

           

           

           

           

          	
                  §
      8.

                	
                  STOCK
      APPRECIATION RIGHTS

                	
                  15

                

           

           

          	
                  8.1

                	
                  Committee
      Action

                	
                  15

                
	
                  8.2

                	
                  Terms
      and Conditions

                	
                  16

                

        

         

         

         

        
          
             

          

          
            ii

            
              

            

          

          
             

          

        

        
          TABLE
OF CONTENTS

          (continued)

           

           

        

        
          	
                  8.3

                	
                  Exercise

                	
                  18

                

           

           

          	
                  §
      9.

                	
                  STOCK
      GRANTS

                	
                  18

                

           

           

          	
                  9.1

                	
                  Committee
      Action

                	
                  18

                
	
                  9.2

                	
                  Conditions

                	
                  19

                
	
                  9.3

                	
                  Dividends,
      Voting Rights and Creditor Status

                	
                  21

                
	
                  9.4

                	
                  Satisfaction
      of Forfeiture Conditions

                	
                  22

                
	
                  9.5

                	
                  Performance
      Goals for Income Tax Deduction

                	
                  22

                

           

           

           

           

           

           

          	
                  §
      10.

                	
                  NORTH
      AMERICAN GALVANIZING & COATINGS, INC. DIRECTOR STOCK UNIT
      PROGRAM

                	
                  24

                

           

           

          	
                  10.1

                	
                  Outside
      Directors

                	
                  24

                
	
                  10.2

                	
                  Inside
      Directors

                	
                  25

                
	
                  10.3

                	
                  Matching
      Grants

                	
                  25

                
	
                  10.4

                	
                  Deferral
      Periods

                	
                  25

                
	
                  10.5

                	
                  Payment

                	
                  28

                
	
                  10.6

                	
                  Non-Forfeitable
      Account and Account Adjustments

                	
                  28

                
	
                  10.7

                	
                  General
      Assets

                	
                  28

                
	
                  10.8

                	
                  No
      Liability

                	
                  29

                
	
                  10.9

                	
                  Rabbi
      Trust

                	
                  29

                
	
                  10.10

                	
                  Amendment
      and Termination

                	
                  29

                

           

           

           

           

           

           

           

           

           

           

           

          	
                  §
      11.

                	
                  NON-TRANSFERABILITY

                	
                  31

                

           

           

          	
                  §
      12.

                	
                  SECURITIES
      REGISTRATION

                	
                  31

                

           

           

          	
                  §
      13.

                	
                  LIFE
      OF PLAN

                	
                  32

                

           

           

          	
                  §
      14.

                	
                  ADJUSTMENT

                	
                  33

                

           

           

          	
                  14.1

                	
                  Capital
      Structure

                	
                  33

                
	
                  14.2

                	
                  Shares
      Reserved

                	
                  34

                
	
                  14.3

                	
                  Transactions
      Described in § 424 of the Code

                	
                  34

                
	
                  14.4

                	
                  Fractional
      Shares

                	
                  35

                

           

           

           

           

           

          	
                  §
      15.

                	
                  CHANGE
      IN CONTROL

                	
                  35

                

           

           

          	
                  §
      16.

                	
                  AMENDMENT
      OR TERMINATION

                	
                  36

                

           

           

          	
                  §
      17.

                	
                  MISCELLANEOUS

                	
                  37

                

        

         

         

        
          
             

          

          
            iii

            
              

            

          

          
             

          

        

        
          TABLE
OF CONTENTS

          (continued)

          
 

        

        
          	
                  17.1

                	
                  Shareholder
      Rights

                	
                  37

                
	
                  17.2

                	
                  No
      Contract of Employment

                	
                  37

                
	
                  17.3

                	
                  Tax
      Withholding

                	
                  37

                
	
                  17.4

                	
                  Construction

                	
                  38

                
	
                  17.5

                	
                  Other
      Conditions

                	
                  38

                
	
                  17.6

                	
                  Rule
      16b-3

                	
                  38

                
	
                  17.7

                	
                  Coordination
      with Employment Agreements and Other Agreements

                	
                  39

                

        

      

    

    

     

     

     

     

     

     

    
 

    
      
        
           

        

        
          iv

          
            

          

        

        
           

        

      

    

     

    §
1.

    

     

    BACKGROUND AND
PURPOSE

     

    The
purpose of this Plan is to promote the interests of North American Galvanizing
& Coatings, Inc., (the “Company”) by authorizing the Committee to grant
Options and Stock Appreciation Rights and to make Stock Grants to Key Employees
and Directors and to make Stock Unit Grants to Directors in order (1) to
attract and retain Key Employees and Directors, (2) to provide an
additional incentive to each Key Employee and Director to work to increase the
Stock value, (3) to provide each Key Employee and Director with a stake in
the future of the Company which corresponds to the stake of each of the
Company’s shareholders, and (4) to tie each Director’s compensation to the
long-term Stock value.  This Plan document contains various amendments
approved by the Board after the Plan was approved by the shareholders July 29,
2009.  The shareholder-approved Plan replaced and superseded the North
American Galvanizing & Coatings, Inc., 2004 Stock Incentive Plan, as
amended.  This amended and restated Plan document also incorporates
and supersedes the North American Galvanizing & Coatings, Inc., Director
Stock Unit Program that was adopted in connection with the adoption of the 2004
Incentive Stock Plan July 21, 2004.  This amended and restated Plan
document is effective as of October 1, 2009 and supersedes all previous versions
of the Plan and the Director Stock Unit Program.

     

    §
2. 

    

     

    DEFINITIONS

     

    2.1 Account - means the
bookkeeping account maintained by the Committee to show for each Director as of
any date all Stock Unit Grant credits made for such Director under this Plan,
the adjustments to such credits and any distributions related to such
Account.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2.2 Affiliate - means any
organization (other than a Subsidiary) that would be treated as under common
control with the Company under § 414(c) of the Code if “50 percent” were
substituted for “80 percent” in the income tax regulations under § 414(c)
of the Code.

     

    2.3 Automatic Deferral
Period - means the period described in § 10.4(b). 

     

    2.4 Beneficiary - means
for each Director the person designated as such by the Director on the form
provided for this purpose or, if no such person is so designated or if no such
person survives the Director, the Director’s estate.

     

    2.5 Board - means the
Board of Directors of the Company.

     

    2.6 Certificate - means,
as applicable, an Option Certificate, a Stock Appreciation Right Certificate or
a Stock Grant Certificate.

     

    2.7 Change Effective Date
- means either the date which includes the “closing” of the transaction which
makes a Change in Control effective if the Change in Control is made effective
through a transaction which has a “closing” or the date a Change in Control is
reported in accordance with applicable law as effective to the Securities and
Exchange Commission if the Change in Control is made effective other than
through a transaction which has a “closing”.

     

    2.8 Change in Control -
means any one of the following events or transactions: 

     

    
      	
              (a)  

            	
              any
      "person" (as that term is used in Sections 13(d) and 14(d)(2) of the 1934
      Act) after the date this Plan becomes effective under § 4
      

            

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      	 	becomes
      the beneficial owner (as defined in Rule 13d-3 under the 1934 Act)
      directly or indirectly, of securities representing 30% or more of the
      combined voting power for election of directors of the then outstanding
      securities of the Company or any successor to the Company; provided,
      however, the following transactions shall not constitute a Change of
      Control under this §2.8(a):  (A) any acquisition of such
      securities by the Company, (B) any acquisition of such securities by any
      employee benefit plan (or a related trust) sponsored or maintained by the
      Company or any corporation controlled by the Company, (C) any acquisition
      of such securities by any person who, immediately before such acquisition,
      had beneficial ownership (as defined in Rule 13d-3 under the 1933 Act) of
      50% or more of (i) the fair market value of the then outstanding
      securities of the Company or (ii) the combined voting power of the
      outstanding voting securities of the Company entitled to vote generally in
      the election of directors to the board of directors of the Company or (D)
      any acquisition by any corporation pursuant to a transaction which
      satisfies the requirements of  § 2.8(d)(A),
      § 2.8(d)(B) and
§ 2.8(d)(C); 

    

    
      	
              (b)  

            	
              during
      any period of two consecutive years or less, individuals who at the
      beginning of such period constitute the Board cease for any reason
      (whether beginning on or after the date this Plan becomes effective under
      § 4) to constitute at least a majority of the Board,
  

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	 	unless
      the election or nomination for election of each new director was approved
      by a vote of at least two-thirds of the directors then still in office who
      were directors at the beginning of the period; 
	
              (c)  

            	
              the
      shareholders of the Company after the date this Plan becomes effective
      under § 4 approve any dissolution or liquidation of the Company or
      any sale or the disposition of 50% or more of the assets or business of
      the Company; or

            

    

    
      	
              (d)  

            	
              shareholders
      of the Company after the date this Plan becomes effective under § 4
      approve any reorganization, merger, consolidation or share exchange unless
      (A) the persons who were the beneficial owners of the outstanding shares
      of the common stock of the Company immediately before the consummation of
      such transaction beneficially own more than 60% of the outstanding shares
      of the common stock of the successor or survivor corporation in such
      transaction immediately following the consummation of such transaction and
      (B) the number of shares of the common stock of such successor or survivor
      corporation beneficially owned by the persons described in
      § 2.8(d)(A) immediately following the consummation of such
      transaction is beneficially owned by each such person in substantially the
      same proportion that each such person had beneficially owned shares of the
      Company common stock immediately before the consummation of such
      transaction, provided (C) the percentage described in
  

            

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      	 	§ 2.8(d)(A)
      of the beneficially owned shares of the successor or survivor corporation
      and the number described in § 2.8(d)(B) of the beneficially owned
      shares of the successor or survivor corporation shall be determined
      exclusively by reference to the shares of the successor or survivor
      corporation which result from the beneficial ownership of shares of common
      stock of the Company by the persons described in § 2.8(d)(A)
      immediately before the consummation of such
  transaction. 

    

     

    2.9 Code - means the
Internal Revenue Code of 1986, as amended.

     

    2.10 Committee - means a
committee of the Board which shall have at least 2 members, each of whom shall
be appointed by and shall serve at the pleasure of the Board and shall come
within the definition of a “non-employee director” under Rule 16b-3 and an
“outside director” under § 162(m) of the Code.

     

    2.11 Company - means North
American Galvanizing & Coatings, Inc. and any successor to North American
Galvanizing & Coatings, Inc.

     

    2.12 Deferral Period -
means the period described in § 10.4(b) and the period described in
§ 10.4(c).

     

    2.13 Director - means any
member of the Board.

     

    2.14 Elective Deferral
Period - means the period described in § 10.4(c).

     

    2.15 Fair Market Value -
means either (a) the NASDAQ Official Closing Price for the applicable date
or (b) if the NASDAQ Official Closing Price is not available for the applicable
date, the NASDAQ Official Closing Price for the immediately preceding business
day or (c) if no such NASDAQ Official Closing Price quotation is available,

    
      
         

      

      
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    (c) the
current fair market value of a share of Stock that the Committee acting in good
faith determines through the reasonable application of a reasonable valuation
method which takes into consideration in applying its methodology all available
information material to the value of the Company, considering factors including
(as applicable) (1) the value of the Company’s tangible and intangible assets,
(2) the present value of the Company’s anticipated future cash-flows, (3) the
market value of equity interests in similar companies engaged in trades or
businesses substantially similar to those engaged in by the Company, the value
of which can be readily determined through nondiscretionary, objective means
(such as through trading prices on an established securities market or an amount
paid in an arms-length private transaction), (4) recent arm’s length
transactions involving the sale or transfer of shares of Stock, and (5) other
relevant factors such as control premiums or discounts for lack of marketability
and whether the valuation method is used for other purposes that have a material
economic effect on the Company, the holders of Stock or the Company’s
creditors.

     

    2.16 ISO - means an option
granted under this Plan to purchase Stock which is intended to satisfy the
requirements of § 422 of the Code.

     

    2.17 Inside Director -
means a member of the Board who is an employee of the Company or a Parent or
Subsidiary or Affiliate .  

     

    2.18 Key Employee - means
an employee of the Company or any Subsidiary or Parent or Affiliate to whom the
Committee decides for reasons sufficient to the Committee to make a grant under
this Plan.

    
      
         

      

      
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    2.10 NASDAQ Official Closing
Price - means the price of a share of Stock as determined using the
NASDAQ process for identifying the NASDAQ market-specific closing price for
NASDAQ-listed issues.

     

    2.19 1933 Act - means the
Securities Act of 1933, as amended.

     

    2.20 1934 Act - means the
Securities Exchange Act of 1934, as amended.

     

    2.21 Non-ISO - means an
option granted under this Plan to purchase Stock which is intended to fail to
satisfy the requirements of § 422 of the Code.

     

    2.22 Option - means an ISO
or a Non-ISO which is granted under § 7.

     

    2.23 Option Certificate -
means the certificate (whether in electronic or written form) which sets forth
the terms and conditions of an Option granted under this Plan.

     

    2.24 Option Price - means
the price which shall be paid to purchase one share of Stock upon the exercise
of an Option granted under this Plan.

     

    2.25 Outside Director -
means a member of the Board who is not an employee of the Company or a Parent or
Subsidiary or Affiliate.

     

    2.26 Parent - means any
corporation which is a parent corporation (within the meaning of § 424(e)
of the Code) of the Company.

     

    2.27 Plan - means this
North American Galvanizing & Coatings, Inc. 2009 Incentive Stock Plan as
effective as of the date approved by the shareholders of the Company and as
amended from time to time thereafter.

     

    2.28 Preexisting Plan -
means the North American Galvanizing & Coatings, Inc. 2004 Incentive Stock
Plan, as such plan has been amended from time to time up to the date this Plan
is effective.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    2.29 Rule 16b-3 - means
the exemption under Rule 16b-3 to Section 16(b) of the 1934 Act or any
successor to such rule.

     

    2.30 SAR Value - means the
value assigned by the Committee to a share of Stock in connection with the grant
of a Stock Appreciation Right under § 8.

     

    2.31 Stock - means the
$0.10 par value common stock of the Company.

     

    2.32 Stock Appreciation
Right - means a right which is granted under § 8 to receive the
appreciation in a share of Stock.

     

    2.33 Stock Appreciation Right
Certificate - means the certificate (whether in electronic or written
form) which sets forth the terms and conditions of a Stock Appreciation Right
which is not granted as part of an Option.

     

    2.34 Stock Grant - means a
grant under § 9 which is designed to result in the issuance of the number
of shares of Stock described in such grant.

     

    2.35 Stock Grant
Certificate - means the certificate (whether in electronic or written
form) which sets forth the terms and conditions of a Stock Grant.

     

    2.36 Stock Unit Grant -
means a grant under § 10 which shall be designed to result in the issuance
of whole shares of Stock and cash in lieu of any fractional share (based on the
average Fair Market Value of a share of Stock over the 10 trading days
immediately before the date of the issuance of such Stock). 

     

    2.37 Subsidiary - means a
corporation which is a subsidiary corporation (within the meaning of
§ 424(f) of the Code) of the Company.

     

    2.38 Ten Percent
Shareholder - means a person who owns (after taking into account the
attribution rules of § 424(d) of the Code) more than ten percent of the
total combined voting power of all classes of stock of either the Company, a
Subsidiary or Parent.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    §
3.

     

    SHARES AND GRANT
LIMITS

     

    3.1 Shares
Reserved.  There shall (subject to § 14) be reserved for
issuance under this Plan (a) 2,500,000  shares of Stock plus (b) the
124,898 shares of Stock which would remain available for issuance under the
Preexisting Plan if shares were issued on August 1, 2009, the effective date of
this Plan, sufficient to satisfy grants then outstanding under such plan and the
North American Galvanizing & Coatings, Inc. Director Stock Unit Program plus
(c) the number of shares of Stock subject to grants under the Preexisting Plan
which are outstanding on the effective date of this Plan and which are forfeited
or expire on or after such effective date in accordance with the terms of such
grants or are cancelled; provided, however, (d) no more than the number of
shares of Stock described in § 3.1(a) and § 3.1(b) shall be issued in
connection with the exercise of ISOs and (e) nothing in this Plan shall affect
any grants under the Preexisting Plan which are outstanding on the effective
date of this Plan until such time, if any, that any shares of Stock subject to
such grants are forfeited or grants respecting any shares of Stock expire on or
after such effective date in accordance with the terms of such grants or such
grants are cancelled.  

     

    3.2 Source of
Shares.  The shares of Stock described in § 3.1 shall be
reserved to the extent that the Company deems appropriate from authorized but
unissued shares of Stock and from shares of Stock which have been reacquired by
the Company.  

    
      
         

      

      
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    3.3 Reduction and Restoration of
Shares Reserved.  All shares of Stock reserved for issuance
under § 3.1 shall remain available for issuance under this Plan until
issued pursuant to the exercise of an Option or a Stock Appreciation Right or
issued pursuant to a Stock Grant or Stock Unit Grant; provided, 

     

    
      	
              (a)  

            	
              any
      such shares of stock which are issued pursuant to an Option shall reduce
      the number of shares reserved for issuance under § 3.1 on a one to
      one (1 to 1) basis, any shares issued pursuant to a Stock Grant or Stock
      Unit Grant shall reduce the number of shares reserved for issuance under
      § 3.1 on a one to one  (1 to 1) basis, and any shares which
      are forfeited after issuance pursuant to a Stock Grant or Stock Unit Grant
      shall be restored to the number of shares reserved for issuance under
      § 3.1 on a one to one (1 to 1)
basis;

            

    

    
      	
              (b)  

            	
              any
      shares of Stock issued or otherwise used to satisfy a tax withholding
      obligation under § 17.3 shall no longer be available for issuance
      under § 3.1;

            

    

    
      	
              (c)  

            	
              any
      shares of Stock which are tendered to the Company to pay the Option Price
      of an Option or which are tendered to the Company in satisfaction of any
      condition to a Stock Grant shall not be added to the shares of Stock
      reserved for issuance under § 3.1,
and

            

    

    
      	
              (d)  

            	
              the
      number of shares of Stock reserved for issuance under § 3.1 shall be
      reduced on a one to one (1 to 1) basis for each share of Stock with
      respect to which the appreciation in a Stock Appreciation Right is based
      if a share of Stock is issued in connection with the exercise of such
      Stock Appreciation Right.

            

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    3.4 Use of
Proceeds.  The proceeds which the Company receives from the
sale of any shares of Stock under this Plan shall be used for general corporate
purposes and shall be added to the general funds of the Company.

     

    3.5 Grant
Limits.  Subject to Section 14, no Key Employee or Director in
any calendar year shall be granted an Option to purchase more than 200,000
shares of Stock or a Stock Appreciation Right based on the appreciation with
respect to more than 200,000 shares of Stock.  If a Key Employee or
Director is granted both an Option and a Stock Appreciation Right in any
calendar year, however, the total of the number of Shares subject to the Option
and the number of shares with respect to which the Stock appreciation is based
shall not exceed 200,000.  Notwithstanding the above limits, the
Committee shall have the discretion to exceed any such limits if deemed
necessary or appropriate in connection with the hiring of any individual who,
when hired, would be a Key Employee.  

     

    3.6 Preexisting
Plan.  No grants shall be made under the Preexisting Plan on or
after the date this Plan becomes effective.

     

     

    §
4.

    

     

    EFFECTIVE
DATE

     

    The
effective date of this amended and restated Plan shall be August 1,
2009.

    §
5.

    

     

    COMMITTEE

     

    This Plan
shall be administered by the Committee.  The Committee acting in its
absolute discretion shall exercise such powers and take such action as expressly
called 

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    for under
this Plan and, further, the Committee shall have the power to interpret this
Plan and (subject to § 15 and § 16 and Rule 16b-3) to take such other
action in the administration and operation of this Plan as the Committee deems
equitable under the circumstances, which action shall be binding on the Company,
on each affected Key Employee or Director and on each other person directly or
indirectly affected by such action.  Furthermore, the Committee as a
condition to making any grant under this Plan to any Key Employee or Director
shall have the right to require him or her to execute an agreement which makes
the Key Employee or Director subject to non-competition provisions and other
restrictive covenants which run in favor of the Company.

     

    §
6.

    

     

    ELIGIBILITY

     

    Only Key
Employees who are employed by the Company or a Subsidiary or Parent shall be
eligible for the grant of ISOs under this Plan.  All Key Employees and
all Directors shall be eligible for the grant of Non-ISOs and Stock Appreciation
Rights and for Stock Grants under this Plan.  Only Directors shall be
eligible for Stock Unit Grants under § 10 of this Plan.

     

    §
7.

    

     

    OPTIONS

     

    7.1 Committee
Action.  The Committee acting in its absolute discretion shall
have the right to grant Options to Key Employees and to Directors under this
Plan from time to time to purchase shares of Stock, and Options may be granted
for any reason the Committee deems appropriate, including as a substitute for
compensation otherwise payable in cash.  

    
      
         

      

      
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    7.2 Option
Certificate.  Each grant of an Option shall be evidenced by an
Option Certificate, and each Option Certificate shall set forth whether the
Option is an ISO or a Non-ISO and shall set forth such other terms and
conditions of such grant as the Committee acting in its absolute discretion
deems consistent with the terms of this Plan; however, (a) if the Committee
grants an ISO and a Non-ISO to a Key Employee on the same date, the right of the
Key Employee to exercise the ISO shall not be conditioned on his or her failure
to exercise the Non-ISO and (b) no Option Certificate shall provide for the
automatic grant of any new Option upon the exercise of an Option subject to such
Option Certificate.  

     

    7.3 $100,000
Limit.  No Option shall be treated as an ISO to the extent that
the aggregate Fair Market Value of the Stock subject to the Option which would
first become exercisable in any calendar year exceeds $100,000.  Any
such excess shall instead automatically be treated as a Non-ISO.  The
Committee shall interpret and administer the ISO limitation set forth in this
§ 7.3 in accordance with § 422(d) of the Code, and the Committee shall
treat this § 7.3 as in effect only for those periods for which
§ 422(d) of the Code is in effect.

     

    7.4 Option
Price.  The Option Price for each share of Stock subject to an
Option shall be no less than the Fair Market Value of a share of Stock on the
date the Option is granted; provided, however, if the Option is an ISO granted
to a Key Employee who is a Ten Percent Shareholder, the Option Price for each
share of Stock subject to such ISO shall be no less than 110% of the Fair Market
Value of a share of Stock on the date such ISO is granted.  The
Committee shall not (except in accordance with § 14 and § 15) take any
action absent the approval of the Company’s shareholders 

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    (whether
through an amendment, a cancellation, making replacement grants or exchanges or
any other means) to directly or indirectly reduce the Option Price of any
outstanding Option or to make a tender offer for any Option if the Option Price
for such Option on the effective date of such tender offer exceeds the then Fair
Market Value of a share of Stock subject to such Option.

     

    7.5 Payment.  The
Option Price shall be payable in full upon the exercise of any Option and, at
the discretion of the Committee, an Option Certificate can provide for the
payment of the Option Price either in cash, by check, in Stock or through any
cashless exercise procedure which is acceptable to the Committee, or in any
combination of such forms of payment.  Any payment made in Stock shall
be treated as equal to the Fair Market Value of such Stock on the date action
acceptable to the Committee is taken to tender to the Committee or its
delegate.

     

    7.6 Exercise.  

     

    
      	
              (a)  

            	
              Vesting.  The
      Committee may condition the right to exercise an Option on the
      satisfaction of a service requirement or a performance requirement or on
      the satisfaction of more than one such requirement or the satisfaction of
      any combination of such requirements or may grant an Option which is not
      subject to any such requirements, all as determined by the Committee in
      its discretion and as set forth in the related Option
      Certificate.

            

    

    
      	
              (b)  

            	
              Exercise
      Period.  Each Option granted under this Plan shall be
      exercisable in whole or in part to the extent vested at such time or times
      as set forth in the related Option Certificate, but no Option Certificate
      shall make an Option exercisable on or after the earlier
  of

            

    

     

    
      
         

      

      
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              (1)  

            	
              the
      date which is the fifth anniversary of the date the Option is granted, if
      the Option is an ISO and  the Key Employee is a Ten Percent
      Shareholder on the date the Option is granted,
  or

            

    

    
      	
              (2)  

            	
              the
      date which is the tenth anniversary of the date the Option is granted, if
      the Option is (a) a Non-ISO or (b) an ISO which is granted to a Key
      Employee who is not a Ten Percent Shareholder on the date the Option is
      granted.

            

    

    
      	
              (c)  

            	
              Termination of Status
      as Key Employee or Director.  Subject to § 7.6(a),
      an Option Certificate may provide for the exercise of an Option after a
      Key Employee’s or a Director’s status as such has terminated for any
      reason whatsoever, including death or
  disability.

            

    

     

    §
8.

     

    STOCK APPRECIATION
RIGHTS

     

    8.1 Committee
Action.  The Committee acting in its absolute discretion shall
have the right to grant Stock Appreciation Rights to Key Employees and to
Directors under this Plan from time to time, and each Stock Appreciation Right
grant shall be evidenced by a Stock Appreciation Right Certificate or, if such
Stock Appreciation Right is granted as part of an Option, shall be evidenced by
the Option Certificate for the related Option.  Stock Appreciation
Rights may be granted for any reason the Committee deems appropriate, including
as a substitute for compensation otherwise payable in cash.  The
Committee shall not (except in accordance with § 14 and § 15)

    
      
         

      

      
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    take any
action absent the approval of the Company’s shareholders (whether through an
amendment, a cancellation, making replacement grants or exchanges or any other
means) to directly or indirectly reduce the SAR Value of any outstanding Stock
Appreciation Right or to make a tender offer for any Stock Appreciation Right if
the SAR Value for such Stock Appreciation Right on the effective date of such
tender offer exceeds the then Fair Market Value of a share of Stock with respect
to which the appreciation in such Stock Appreciation Right is
based.

     

    8.2 Terms and
Conditions.  

     

    
      	
              (a)  

            	
              Stock Appreciation
      Right Certificate.  If a Stock Appreciation Right is
      granted independent of an Option, such Stock Appreciation Right shall be
      evidenced by a Stock Appreciation Right Certificate, and such certificate
      shall set forth the number of shares of Stock on which the Key Employee’s
      or Director’s right to appreciation shall be based and the SAR Value of
      each share of Stock.  The SAR Value shall be no less than the
      Fair Market Value of a share of Stock on the date the Stock Appreciation
      Right is granted.  The Stock Appreciation Right Certificate
      shall set forth such other terms and conditions for the exercise of the
      Stock Appreciation Right as the Committee deems appropriate under the
      circumstances, but no Stock Appreciation Right Certificate shall make a
      Stock Appreciation Right exercisable on or after the date which is the
      tenth anniversary of the date such Stock Appreciation Right is
      granted.

            

    

     

    
      
         

      

      
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              (b)  

            	
              Option
      Certificate.  If a Stock Appreciation Right is granted
      together with an Option, such Stock Appreciation Right shall be evidenced
      by the related Option Certificate, the number of shares of Stock on which
      the Key Employee’s or Director’s right to appreciation is based shall be
      no more than the number of shares of Stock subject to the related Option,
      and the SAR Value for each such share of Stock shall be no less than the
      Option Price under the related Option.  Each such Option
      Certificate shall provide that the exercise of the Stock Appreciation
      Right with respect to any share of Stock shall cancel the Key Employee’s
      or Director’s right to exercise his or her Option with respect to such
      share and, conversely, that the exercise of the Option with respect to any
      share of Stock shall cancel the Key Employee’s or Director’s right to
      exercise his or her Stock Appreciation Right with respect to such
      share.  A Stock Appreciation Right which is granted as part of
      an Option shall be exercisable only while the related Option is
      exercisable.  The Option Certificate shall set forth such other
      terms and conditions for the exercise of the Stock Appreciation Right as
      the Committee deems appropriate under the
  circumstances.

            

    

    
      	
              (c)  

            	
              Vesting.  The
      Committee may condition the right to exercise a Stock Appreciation Right
      on the satisfaction of a service requirement or a performance requirement
      or on the satisfaction of more than one such requirement or the
      satisfaction of any combination of such requirements or may grant a Stock
      Appreciation Right which is not subject to any such requirements, all as
      determined by the Committee in its discretion and as set forth in the
      related Stock Appreciation Right
Certificate.

            

    

     

    
      
         

      

      
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    8.3 Exercise.  A
Stock Appreciation Right shall be exercisable to the extent vested only when the
Fair Market Value of a share of Stock on which the right to appreciation is
based exceeds the SAR Value for such share, and the payment, if any, due on
exercise shall be based on such excess with respect to the number of shares of
Stock to which the exercise relates.  A Key Employee or Director upon
the exercise of his or her Stock Appreciation Right shall receive a payment from
the Company in cash or in Stock issued under this Plan, or in a combination of
cash and Stock, and the number of shares of Stock issued shall be based on the
Fair Market Value of a share of Stock on the date the Stock Appreciation Right
is exercised.  The Committee acting in its absolute discretion shall
have the right to determine the form and time of any payment under this
§ 8.3.

     

     

    §
9.

     

    STOCK
GRANTS

     

    9.1 Committee
Action.  The Committee acting in its absolute discretion shall
have the right to make Stock Grants to Key Employees and to Directors, and Stock
Grants may be made for any reason the Committee deems appropriate, including as
a substitute for compensation otherwise payable in cash.  Each Stock
Grant shall be evidenced by a Stock Grant Certificate, and each Stock Grant
Certificate shall set forth the conditions, if any, under which Stock will be
issued under the Stock Grant and the 

    
      
         

      

      
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    conditions
under which the Key Employee’s or Director’s interest in any Stock which has
been issued will become vested and non-forfeitable.

     

    9.2 Conditions.

     

    
      	
              (a)  

            	
              Conditions to Issuance
      of Stock.  The Committee acting in its absolute
      discretion may make the issuance of Stock under a Stock Grant subject to
      the satisfaction of one, or more than one, condition which the Committee
      deems appropriate under the circumstances for Key Employees or Directors
      generally or for a Key Employee or a Director in particular, and the
      related Stock Grant Certificate shall set forth each such condition and
      the deadline for satisfying each such condition.  Stock subject
      to a Stock Grant shall be issued in the name of a Key Employee or Director
      only after each such condition, if any, has been timely satisfied, and any
      Stock which is so issued shall be held by the Company pending the
      satisfaction of the vesting conditions, if any, under § 9.2(b) for
      the related Stock Grant.

            

    

    
      	
              (b)  

            	
              Vesting
      Conditions.  The Committee acting in its absolute
      discretion may issue any Stock in the name of a Key Employee or Director
      under a Stock Grant subject to the satisfaction of one, or more than one,
      objective employment, performance or other vesting condition that the
      Committee acting in its absolute discretion deems appropriate under the
      circumstances for Key Employees or Directors generally or for a Key
      Employee or a Director in 

            

       

      
        
           

        

        
          19

          
            

          

        

        
           

        

      

      	 	particular,
      and the related Stock Grant Certificate shall set forth each
      such  vesting condition, if any, and the deadline, if any, for
      satisfying each such vesting condition.  A Key Employee’s or a
      Director’s vested and non-forfeitable interest in the shares of Stock
      underlying a Stock Grant shall depend on the extent to which he or she
      timely satisfies each such vesting condition.  If a share of
      Stock is issued under this § 9.2(b) before a Key Employee’s or
      Director’s interest in such share of Stock is vested and is
      non-forfeitable, (1) such share of Stock shall not be available for
      re-issuance under § 3 until such time, if any, as such share of Stock
      thereafter is forfeited as a result of a failure to timely satisfy a
      vesting condition and (2) the Company shall have the right to condition
      any such issuance on the Key Employee or Director first signing an
      irrevocable stock power in favor of the Company with respect to the
      forfeitable shares of Stock issued to such Key Employee or Director in
      order for the Company to effect any forfeiture called for under the
      related Stock Grant Certificate. 

    

    
      	
              (c)  

            	
              Minimum Service
      Requirement.  If the conditions to the vesting of a Stock
      Grant include the satisfaction of a service requirement and a performance
      requirement, the minimum service requirement for 100% vesting shall be at
      least one year.  If the only condition to the vesting of a Stock
      Grant is the satisfaction of a service requirement, the minimum service
      requirement for 100% vesting shall be at least three years.  The
      Committee in either case, however, may provide for a shorter period of
      service (or no period of service) if the Committee determines that the
      Company’s interests are better
served.

            

    

     

    
      
         

      

      
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    9.3 Dividends, Voting Rights and
Creditor Status.  

     

    
      	
              (a)  

            	
              Cash
      Dividends.  Except as otherwise set forth in a Stock
      Grant Certificate, if a dividend is paid in cash on a share of Stock
      awarded under a Stock Grant before the first date that a Key Employee’s or
      a Director’s interest in such Stock (1) is forfeited completely or
      (2) becomes completely non-forfeitable, the Company shall pay such
      cash dividend directly to such Key Employee or
  Director.

            

    

    
      	
              (b)  

            	
              Stock
      Dividends.  If a Stock dividend is paid on a share of
      Stock awarded pursuant to a Stock Grant before the first date that a Key
      Employee’s or a Director’s interest in such award Stock (1) is
      forfeited completely or (2) becomes completely non-forfeitable, the
      Company shall hold such Stock dividend subject to the same conditions that
      apply to the award Stock under
§ 9.2(b).

            

    

    
      	
              (c)  

            	
              Other.  If
      a dividend (other than a dividend described in § 9.3(a) or
      § 9.3(b)) is paid with respect to a share of Stock after such Stock
      has been issued under a Stock Grant but before the first date that a Key
      Employee’s or a Director’s interest in such Stock (1) is forfeited
      completely or (2) becomes completely non-forfeitable, the Company
      shall distribute or hold such dividend in accordance with such rules as
      the Committee shall adopt with respect to each such
    dividend.

            

    

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    
      	
              (d)  

            	
              Voting.  Except
      as otherwise set forth in a Stock Grant Certificate, a Key Employee or a
      Director shall have the right to vote the Stock issued under his or her
      Stock Grant during the period which comes after such Stock has been issued
      under a Stock Grant but before the first date that a Key Employee’s or
      Director’s interest in such Stock (1) is forfeited completely or (2)
      becomes completely non-forfeitable.

            

    

     

    9.4 Satisfaction of Forfeiture
Conditions.  A share of Stock shall cease to be subject to a
Stock Grant at such time as a Key Employee’s or a Director’s interest in such
Stock becomes vested and non-forfeitable under this Plan, and the certificate or
other evidence of ownership representing such share shall be transferred to the
Key Employee or Director as soon as practicable thereafter.

     

    9.5 Performance Goals for Income
Tax Deduction.  

     

    
      	
              (a)  

            	
              General.  The
      Committee shall (where the Committee under the circumstances deems it in
      the Company’s best interest) (1) make Stock Grants to Key Employees
      subject to at least one condition related to one, or more than one,
      performance goal based on the performance goals described in § 9.5(b)
      which the Committee deems likely to result in the Stock Grant qualifying
      as “performance-based compensation” under § 162(m) of the Code or (2)
      make Stock Grants to Key Employees under such other circumstances as the
      Committee deems likely to result in an income tax deduction for the
      Company with respect to such Stock
Grant.

            

    

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    
      	
              (b)  

            	
              Performance
      Goals.  A performance goal is described in this
      § 9.5(b) if such goal relates to (1) the Company’s return on capital
      employed or increases in return on capital employed, (2) the Company’s
      total earnings or the growth in such earnings, (3) the Company’s
      consolidated earnings or the growth in such earnings, (4) the Company’s
      earnings per share or the growth in such earnings, (5) the Company’s net
      earnings or the growth in such earnings, (6) the Company’s earnings before
      interest expense, taxes, depreciation, amortization and other non-cash
      items or the growth in such earnings, (7) the Company’s earnings
      before interest and taxes or the growth in such earnings, (8) the
      Company’s consolidated net income or the growth in such income, (9) the
      value of the Company’s stock or the growth in such value, (10) the
      Company’s stock price or the growth in such price, (11) the Company’s
      return on assets or the growth on such return, (12) the Company’s cash
      flow or the growth in such cash flow, (13) the Company’s total shareholder
      return or the growth in such return, (14) the Company’s expenses or the
      reduction of such expenses, (15) the Company’s sales growth, (16) the
      Company’s overhead ratios or changes in such ratios, (17) the Company’s
      expense-to-sales ratios or the changes in such ratios, or (18) the
      Company’s economic value added or changes in such value
    added.

            

    

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    
      	
              (c)  

            	
              Alternative
      Goals.  A performance goal may be set in any manner
      determined by the Committee, including looking to achievement on an
      absolute or relative basis in relation to peer groups or indexes, and the
      Committee may set more than one goal.  No change may be made to
      a performance goal after the goal has been set.  However, the
      Committee may express any goal in terms of alternatives, or a range of
      alternatives, as the Committee deems appropriate under the circumstances,
      such as including or excluding (1) any acquisitions or dispositions,
      restructuring, discontinued operations, extraordinary items and other
      unusual or non-recurring charges, (2) any event either not directly
      related to the operations of the Company or not within the reasonable
      control of the Company’s management or (3) the effects of tax or
      accounting changes.

            

    

     

    §
10.

    

     

    NORTH AMERICAN GALVANIZING
& COATINGS, INC.

     

    DIRECTOR STOCK UNIT
PROGRAM

     

    10.1 Outside
Directors.  In order to tie each Outside Director’s
compensation to the long-term value of the Stock, the Company shall defer 100%
of each Outside Director’s fees each calendar year.  The deferred
amounts shall be converted into a Stock Unit Grant at the average of the Fair
Market Value for a share of Stock for the 10 trading days before the date the
director fees for Outside Directors otherwise would have been payable in
cash.

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

     

    10.2 Inside
Directors.  In order to tie a portion of each Inside Director’s
compensation to the long-term value of the Stock, the Company shall defer for
each Inside Director each calendar year a dollar amount equal to 100% of the
deferred director fees for Outside Directors.  Any deferrals for
Inside Directors shall be matched by the Company at the same rate that applies
to the required deferrals for Outside Directors under
§ 10.3.  The deferrals for each Inside Director shall be effected
from their base salary or other cash compensation to coincide with the deferrals
for Outside Directors, and the deferrals for Inside Directors shall be converted
into a Stock Unit Grant at the same time and in accordance with the same
procedure followed for Outside Directors.  

     

    10.3 Matching
Grants.  The Company shall match 75% of each Director’s
deferred fees.  A Director’s matching grant under this § 10.3
will be deferred and converted into a Stock Unit Grant at the same time and
under the same procedure as his or her deferrals are converted into a Stock Unit
Grant.  

     

    10.4 Deferral
Periods.  

     

    
      	
              (a)  

            	
              General.  All
      deferrals under this § 10 shall be paid in the calendar year immediately
      following, and within 30 days after the end of, an Automatic Deferral
      Period or, if a Director so elects in accordance with this § 10.4,
      the end of an additional Elective Deferral
  Period.

            

    

    
      	
              (b)  

            	
              Automatic Deferral
      Period.  The Automatic Deferral Period for a Director for
      deferrals effected in any calendar year shall be the five calendar year
      period starting on the immediately following
      January 1.  There will be separate Automatic Deferral
      Period for deferrals effected in each calendar
  year.

            

    

     

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    
      	
              (c)  

            	
              Elective Deferral
      Period.  If a Director delivers an election on the form
      provided for this purpose to the Company at least one full year before the
      end of any Automatic Deferral Period, the payment of the deferrals subject
      to such Automatic Deferral Period shall be deferred for an additional five
      calendar years.  Any such election shall be irrevocable when
      delivered to the Company.  Any such payment shall be made in the
      calendar year immediately following, and within 30 days after the end of,
      any Elective Deferral Period.

            

    

    
      	
              (d)  

            	
              Special
      Rules.

            

    

    
      	
              (1)  

            	
              Termination.  All
      deferrals (whether subject to an Automatic Deferral Period or an Elective
      Deferral Period) shall be payable as of the date a Director has “separated
      from service”, by death or otherwise, as that term is defined for purposes
      of § 409A of the Code.  If the Director is also a
      “specified employee”, as defined for purposes of § 409A of the Code,
      the distribution on account of the Director’s separation from service
      shall be made six months and one day after the date of the Director’s
      separation from service unless the separation from service occurs as a
      result of the Director’s death, in which event the distribution shall be
      made as soon as is practical after the Director’s
  death.

            

    

     

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    
      	
              (2)  

            	
              Unforseeable
      Emergency.  If a Director can demonstrate to a majority
      of the other members of the Board that he or she has an extreme financial
      hardship as a result of an unforeseeable emergency (within the meaning of
      § 409A of the Code) and that access to his or her deferrals under
      this Plan is more appropriate under the circumstances than using any of
      his or her other assets to meet the emergency, the Board (acting by a
      majority vote with the affected Director not voting) may authorize the
      payment of all or a portion of his or her deferrals to meet the
      emergency.  The amounts distributed under this § 10.4(d)(2)
      may not exceed the amount necessary to meet the emergency plus the amount
      necessary to pay taxes reasonably anticipated to result from the
      distribution and, in any event, may not exceed the amount allowable under
      § 409A of the Code.

            

    

    
      	
              (e)  

            	
              Accelerated
      Payments.  The timing of any payment under this § 10
      shall not be accelerated unless the Committee (1) in its absolute
      discretion consents to such acceleration and (2) determines (acting
      in good faith) such acceleration is permissible under § 409A of the
      Code.

            

    

     

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    
      	
              (f)  

            	
              Delayed
      Payments.  The timing of any payment under this § 10
      shall not be delayed unless the Committee (1) in its absolute
      discretion consents to such a delay and (2) determines (acting in
      good faith) such delay is permissible under § 409A of the
      Code.

            

    

     

    10.5 Payment.  When
any deferrals become payable at the end of a Deferral Period or become payable
under § 10.4(d), payment shall be made (subject to applicable withholdings)
in whole shares of Stock and cash in lieu of a fractional share (based on the
average of the Fair Market Value for a share of Stock for the 10 trading days
before the date as of which payment is made).  The Company shall make
a payment as soon as practicable after a deferral becomes
payable.   A payment due a Director shall be made to his or her
Beneficiary if the Director dies before the payment is
made.  

     

    10.6 Non-Forfeitable Account and
Account Adjustments.  A Director’s interest in his or her
Account shall be non-forfeitable.  The number of shares described in a
Stock Unit Grant credited to a Director’s Account shall be adjusted at the same
time and in the same manner as Stock Grants made under this Plan.

     

    10.7 General
Assets.  All cash distributions to, or on behalf of, a Director
under this § 10 shall be made from the Company’s general assets, and any
claim by a Director or by his or her Beneficiary against the Company for any
cash distribution under this Plan shall be treated the same as a claim of any
general and unsecured creditor of the Company.

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

     

    10.8 No
Liability.  No Director and no Beneficiary shall have the right
to look to, or have any claim whatsoever against, any officer, director,
employee or agent of the Company in his or her individual capacity for the
distribution of any Account.

     

    10.9 Rabbi
Trust.  The Company, at the discretion of the Committee, may
establish a revocable “rabbi trust” which is a part of this Plan and transfer a
number of shares of Stock to the trustee of such trust which matches the number
of Stock Unit Grants made pursuant to this § 10.

     

    10.10 Amendment and
Termination.

     

    
      	
              (a)  

            	
              In
      General.  The Company reserves the right to amend or
      terminate this Director Stock Unit Program at any time by action of the
      Board.  No amendment or termination shall directly or indirectly
      reduce the balance of any Account as of the effective date of such
      amendment or termination.  Except as otherwise permitted in this
      Section 10 or as permitted by Section 409A of the Code and the regulations
      thereunder or other IRS guidance, no amendment or termination of the
      Program shall cause the payment of a deferred amount to be accelerated or
      further deferred.

            

    

    
      	
              (b)  

            	
              Termination After
      Change in Control.   As permitted by Section 409A of
      the Code, the Committee may terminate the Program within 30 days preceding
      or 12 months following a Change of Control as defined under any of the
      definitions of a Change of Control in Section 409A or the regulations or
      other IRS guidance issued pursuant to Section 409A.  In the
      event of a termination 

            

    

     

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

    
      	 	associated
      with a Change of Control, Participant accounts in this Program and all
      similar Company deferred compensation programs shall be distributed in a
      lump sum within 12 months following the termination. 
	
              (c)  

            	
              Termination After
      Corporate Dissolution.   As permitted by Section
      409A of the Code, the Committee may terminate the Program within 12 months
      of a corporate dissolution taxed under Section 331 of the Code, or with
      the approval of a bankruptcy court pursuant to 11 U.S.C. Section
      503(b)(1)(A), provided that the amounts deferred under the Program are
      distributed to the Program Participants and included in their taxable
      income within the time limits specified for such terminations in the
      regulations under Section 409A of the
Code.

            

    

    
      	
              (d)  

            	
              Termination of All
      Deferral Arrangements.  As permitted by Section 409A of
      the Code, the Company may terminate the Program  provided that
      all the following conditions are met:  (1) The Company
      terminates all of its deferral arrangements that would be aggregated with
      this Program pursuant to Section 409A of the Code. (2) No payments of
      deferred amounts are made within 12 months of the termination other than
      payments that would otherwise be payable under the Program if the Program
      had not been terminated. (3)  Payments of all remaining Deferred
      Amounts are made within 24 months of the termination. (4) The Company does
      not adopt any new deferral arrangement that would be aggregated with any
      terminated arrangement at any time within five years following the date of
      termination. (5) The termination and liquidation does not occur proximate
      to a downturn in the financial health of the
  Company.

            

    

     

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

    §
11.

    

     

    NON-TRANSFERABILITY

     

    No
Option, Stock Grant, Stock Unit Grant  or Stock Appreciation Right
shall (absent the Committee’s express, written consent) be transferable by a Key
Employee or a Director other than by will or by the laws of descent and
distribution, and any Option or Stock Appreciation Right shall (absent the
Committee’s express, written consent) be exercisable during a Key Employee’s or
Director’s lifetime only by the Key Employee or Director.  The person
or persons to whom an Option or Stock Grant or Stock Unit Grant or Stock
Appreciation Right is transferred by will or by the laws of descent and
distribution (or with the Committee’s express, written consent) thereafter shall
be treated as the Key Employee or Director.

    §
12.

    

     

    SECURITIES
REGISTRATION

     

    As a
condition to the receipt of shares of Stock under this Plan, the Key Employee or
Director shall, if so requested by the Company, agree to hold such shares of
Stock for investment and not with a view of resale or distribution to the public
and, if so requested by the Company, shall deliver to the Company a written
statement satisfactory to the Company to that effect.  Furthermore, if
so requested by the Company, the Key Employee or Director shall make a written
representation to the 

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

    Company
that he or she will not sell or offer for sale any of such Stock unless a
registration statement shall be in effect with respect to such Stock under the
1933 Act and any applicable state securities law or he or she shall have
furnished to the Company an opinion in form and substance satisfactory to the
Company of legal counsel satisfactory to the Company that such registration is
not required.  Certificates or other evidence of ownership
representing the Stock transferred upon the exercise of an Option or Stock
Appreciation Right or upon the lapse of the forfeiture conditions, if any, on
any Stock Grant or issued pursuant to a Stock Unit Grant may at the discretion
of the Company bear a legend to the effect  that such Stock has not
been registered under the 1933 Act or any applicable state securities law and
that such Stock cannot be sold or offered for sale in the absence of an
effective registration statement as to such Stock under the 1933 Act and any
applicable state securities law or an opinion in form and substance satisfactory
to the Company of legal counsel satisfactory to the Company that such
registration is not required.

     

    §
13.

    

     

    LIFE OF
PLAN

     

    No Option
or Stock Appreciation Right shall be granted or Stock Grant or Stock Unit Grant
made under this Plan on or after the earlier of:

    
      	
              (1)  

            	
              the
      tenth anniversary of the effective date of this Plan (as determined under
      § 4), in which event this Plan otherwise thereafter shall continue in
      effect until all outstanding Options and Stock Appreciation Rights have
      been exercised in full or no longer are exercisable, all Stock issued
      under any Stock Grants under this Plan have been forfeited or have become
      non-forfeitable, and payment has been made in full with respect to all
      Stock Unit Grants, or

            

    

     

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

    
      	
              (2)  

            	
              the
      date on which all of the Stock reserved under § 3 has (as a result of
      the exercise of Options or Stock Appreciation Rights granted under this
      Plan or the satisfaction of the forfeiture conditions, if any, on Stock
      Grants or the payments with respect to Stock Unit Grants) been issued or
      no longer is available for use under this Plan, in which event this Plan
      also shall terminate on such date.

            

    

     

    §
14.

    

     

    ADJUSTMENT

     

    14.1 Capital
Structure.  The grant limits described in § 3.5, the
number, kind or class (or any combination thereof) of shares of Stock subject to
outstanding Options and Stock Appreciation Rights granted under this Plan and
the Option Price of such Options and the SAR Value of such Stock Appreciation
Rights as well as the number, kind or class (or any combination thereof) of
shares of Stock subject to outstanding Stock Grants or Stock Unit Grants made
under this Plan shall be adjusted by the Committee in a reasonable and equitable
manner to preserve immediately after

     

    
      	
              (a)  

            	
              any
      equity restructuring or change in the capitalization of the Company,
      including, but not limited to, spin offs, stock dividends, large
      non-reoccurring cash or stock dividends, rights offerings or stock splits,
      or

            

    

    
      	
              (b)  

            	
              any
      other transaction described in § 424(a) of the Code which does not
      constitute a Change in Control of the Company the aggregate intrinsic
      value of each such outstanding Option, Stock Appreciation Right, Stock
      Grant and Stock Unit Grant immediately before such restructuring or
      recapitalization or other
transaction.

            

    

     

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

    14.2 Shares
Reserved.  If any adjustment is made with respect to any
outstanding Option, Stock Appreciation Right, Stock Grant or Stock Unit Grant
under § 14.1, then the Committee shall adjust the number, kind or class (or
any combination thereof) of shares of Stock reserved under
§ 3.1.  The Committee shall have the discretion to limit such
adjustment to account only for the number, kind and class of shares of Stock
subject to each such Option, Stock Appreciation Right, Stock Grant and Stock
Unit Grant as adjusted under § 14.1 or to further adjust such number, kind
or class (or any combination thereof) of shares of Stock reserved under
§ 3.1 to account for any reduction in the total number of shares of Stock
then reserved under § 3.1 which would result from the events described in
§ 14.1(a) and § 14.1(b) if no action was taken by the Committee under
this § 14.2.  The Committee may make any adjustment provided for
in this § 14.2 without seeking the approval of the Company’s shareholders
for such adjustment unless the Committee acting on the advice of counsel
determines that such approval is required under applicable law or the rules of
the stock exchange on which shares of Stock are traded.  

     

    14.3 Transactions Described in
§ 424 of the Code.  If there is a  corporate
transaction described in § 424(a) of the Code which does not constitute a
Change in Control of the Company, the Committee as part of any such transaction
shall have the right to make Stock Grants and Option and Stock Appreciation
Right grants (without regard to any limitations set forth under § 3.5 of
this Plan) to effect the assumption of, or 

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

    the
substitution for, outstanding stock grants and option and stock appreciation
right grants previously made by any other corporation to the extent that such
corporate transaction calls for such substitution or assumption of such
outstanding stock grants and stock option and stock appreciation right
grants.  Furthermore, if the Committee makes any such grants as part
of any such transaction, the Committee shall have the right to increase the
number of shares of Stock available for issuance under § 3.1 by the number
of shares of Stock subject to such grants without seeking the approval of the
Company’s shareholders for such adjustment unless such approval is required
under applicable law or the rules of the stock exchange on which shares of Stock
are traded.

     

    14.4 Fractional
Shares.  If any adjustment under this § 14 would create a
fractional share of Stock or a right to acquire a fractional share of Stock
under any Option, Stock Appreciation Right or Stock Grant, such fractional share
shall be disregarded and the number of shares of Stock reserved under this Plan
and the number subject to any Options, Stock Appreciation Right grants and Stock
Grants shall be the next lower number of shares of Stock, rounding all fractions
downward.  An adjustment made under this § 14 by the Committee
shall be conclusive and binding on all affected persons.

     

    §
15.

    

     

    CHANGE IN
CONTROL

     

    If there
is a Change in Control of the Company, then as of the Change Effective Date for
such Change in Control any and all conditions to the exercise of all outstanding
Options and Stock Appreciation Rights on such date and any and all outstanding
issuance and forfeiture conditions on any Stock Grants on such date
automatically shall be deemed 100% satisfied as of such Change Effective Date,
and the Board shall have

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

    the right
(to the extent expressly required as part of such transaction) to cancel such
Options, Stock Appreciation Rights and Stock Grants after providing each Key
Employee and Director a reasonable period to exercise his or her Options and
Stock Appreciation Rights and to take such other action as necessary or
appropriate to receive the Stock subject to any Stock Grants; provided, if any
issuance or forfeiture condition described in this § 15 relates to
satisfying any performance goal and there is a target for such goal, such
issuance or forfeiture condition shall be deemed satisfied under this § 15
only to the extent of such target unless such target has been exceeded before
the Change Effective Date, in which event such issuance or forfeiture condition
shall be deemed satisfied to the extent such target had been so
exceeded.

     

    §
16.

    

     

    AMENDMENT OR
TERMINATION

     

    This Plan
may be amended by the Board from time to time to the extent that the Board deems
necessary or appropriate; provided, however, (a) no amendment shall be made
absent the approval of the shareholders of the Company to the extent such
approval is required under applicable law or the rules of the stock exchange on
which shares of Stock are listed and (b) no amendment shall be made to § 15
on or after the date of any Change in Control which might adversely affect any
rights which otherwise would vest on the related Change Effective
Date.  The Board also may suspend granting Options or Stock
Appreciation Rights or making Stock Grants or Stock Unit Grants under this Plan
at any time and may terminate this Plan at any time; provided, however, the
Board shall not have the right in connection with any such suspension or
termination to unilaterally modify, amend or cancel any Option or Stock
Appreciation Right granted, or Stock Grant or Stock Unit Grant unless
(1) the Key Employee or Director consents in writing to such modification,
amendment or cancellation or (2) there is a dissolution or liquidation of
the Company or a transaction described in § 15.

    
      
         

      

      
        36

        
          

        

      

      
         

      

    

     

    §
17.

    

     

    MISCELLANEOUS

     

    17.1 Shareholder
Rights.  No Key Employee or Director shall have any rights as a
shareholder of the Company as a result of the grant of an Option or a Stock
Appreciation Right or a Stock Unit Grant pending the actual delivery of the
Stock subject to such Option or Stock Appreciation Right or Stock Unit Grant to
such Key Employee or Director.  A Key Employee’s or a Director’s
rights as a shareholder in the shares of Stock which remain subject to
forfeiture under § 9.2(b) shall be set forth in the related Stock Grant
Certificate.

     

    17.2 No Contract of
Employment.  The grant of an Option or a Stock Appreciation
Right or a Stock Grant or Stock Unit Grant to a Key Employee or Director under
this Plan shall not constitute a contract of employment or a right to continue
to serve on the Board and shall not confer on a Key Employee or Director any
rights upon his or her termination of employment or service in addition to those
rights, if any, expressly set forth in this Plan or the related Option
Certificate, Stock Appreciation Right Certificate, or Stock Grant
Certificate.

     

    17.3 Tax
Withholding.  Each Option, Stock Appreciation Right, Stock
Grant and Stock Unit Grant shall be made subject to the condition that the Key
Employee or Director consents to whatever action the Committee directs to at
least satisfy the statutory federal and state tax withholding requirements, if
any, which the Company determines are applicable to the exercise of such Option
or Stock Appreciation Right or to the satisfaction of any forfeiture conditions
with respect to Stock subject to a Stock 

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

    Grant
issued in the name of the Key Employee or Director or any payment made pursuant
to a Stock Unit Grant.  No withholding shall be effected under this
Plan which exceeds the federal and state tax withholding
requirements.

     

    17.4 Construction.  All
references to sections (§) are to sections (§) of this Plan unless otherwise
indicated.  This Plan shall be construed under the laws of the State
of Delaware.  Each term set forth in § 2 shall, unless otherwise
stated, have the meaning set forth opposite such term for purposes of this Plan
and, for purposes of such definitions, the singular shall include the plural and
the plural shall include the singular.  Finally, if there is any
conflict between the terms of this Plan and the terms of any Option Certificate,
Stock Appreciation Right Certificate or Stock Grant Certificate, the terms of
this Plan shall control.

     

    17.5 Other
Conditions.  Each Option Certificate, Stock Appreciation
Right  Certificate or Stock Grant Certificate may require that a Key
Employee or a Director (as a condition to the exercise of an Option or a Stock
Appreciation Right or the issuance of Stock subject to a Stock Grant) enter into
any agreement or make such representations prepared by the Company, including
(without limitation) any agreement which restricts the transfer of Stock
acquired pursuant to the exercise of an Option or a Stock Appreciation Right or
a Stock Grant or provides for the repurchase of such Stock by the
Company.  The Company also may condition any payment under § 10 on a
Director signing such an agreement or making such representations.

     

    17.6 Rule
16b-3.  The Committee shall have the right to amend any Option,
Stock Appreciation Right, Stock Grant or Stock Unit Grant to withhold or
otherwise restrict the transfer of any Stock or cash under this Plan to a Key
Employee or Director as the Committee deems appropriate in order to satisfy any
condition or requirement under Rule 16b-3 to the extent Rule 16 of the 1934 Act
might be applicable to such grant or transfer.

    
      
         

      

      
        38

        
          

        

      

      
         

      

    

     

    17.7 Coordination with Employment
Agreements and Other Agreements.  If the Company enters into an
employment agreement or other agreement with a Key Employee or Director which
expressly provides for the acceleration in vesting of an outstanding Option,
Stock Appreciation Right or Stock Grant or for the extension of the deadline to
exercise any rights under an outstanding Option, Stock Appreciation Right or
Stock Grant, any such acceleration or extension shall be deemed effected
pursuant to, and in accordance with, the terms of such outstanding Option, Stock
Appreciation Right or Stock Grant and this Plan even if such employment
agreement or other agreement is first effective after the date the outstanding
Option or Stock Appreciation Right was granted or the Stock Grant was
made.

     

    IN
WITNESS WHEREOF, the Company has caused its duly authorized officer to execute
this Plan to evidence its adoption of this Plan.

     

     

     

    NORTH
AMERICAN GALVANIZING & COATINGS, INC.

    

    

    

    By:  __________________________________________                                                    

    

    Date:  _________________________________________                                                     

    
      
         

      

      
        39

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