CONTINENTAL FUELS, INC.
EXHIBIT 10.13
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<DESCRIPTION>EXHIBIT 10.13
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<font face="Arial" size="2">Exhibit 10.13</font></p align="right">
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<font face="Arial" size="2">CONTINENTAL FUELS, INC.</font></p align="center">
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<font face="Arial" size="2">2007 STOCK OPTION/STOCK ISSUANCE PLAN</font></p align="center">
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<font face="Arial" size="2">ARTICLE ONE</font></p align="center">
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<font face="Arial" size="2">GENERAL PROVISIONS</font></p align="center">
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<br><font face="Arial" size="2">I. 	PURPOSE OF THE PLAN</font><br><br><font face="Arial" size="2"> 	This 2007 Stock Option/Stock Issuance Plan is intended to promote the interests of Continental Fuels, Inc., </font><br><font face="Arial" size="2">a Nevada corporation, by providing eligible persons in the Corporation&#8217;s employ or service with the opportunity to </font><br><font face="Arial" size="2">acquire a proprietary interest, or otherwise increase their proprietary interest, in the Corporation as an incentive for </font><br><font face="Arial" size="2">them to continue in such employ or service.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalized terms herein shall have the meanings assigned to such terms in the attached Appendix.</font><br><br><font face="Arial" size="2">II. 	STRUCTURE OF THE PLAN</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Plan shall be divided into two (2) separate equity programs:</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	(i) the Option Grant Program under which eligible persons may, at the discretion of the Plan </font><br><font face="Arial" size="2">Administrator, be granted options to purchase shares of Common Stock, and</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	(ii) the Stock Issuance Program under which eligible persons may, at the discretion of the Plan </font><br><font face="Arial" size="2">Administrator, be issued shares of Common Stock directly, either through the immediate purchase of such shares or </font><br><font face="Arial" size="2">as compensation or a bonus for services rendered the Corporation (or any Parent or Subsidiary).</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The provisions of Articles One and Four shall apply to both equity programs under the Plan and shall </font><br><font face="Arial" size="2">accordingly govern the interests of all persons under the Plan.</font><br><br><font face="Arial" size="2">III. 	ADMINISTRATION OF THE PLAN</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Plan shall be administered by the Board. However, any or all administrative functions otherwise </font><br><font face="Arial" size="2">exercisable by the Board may be delegated to the Committee.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Plan Administrator shall have full power and authority (subject to the provisions of the Plan) to </font><br><font face="Arial" size="2">establish such rules and regulations as it may deem appropriate for proper administration of the Plan and to make </font><br><font face="Arial" size="2">such determinations under, and issue such interpretations of, the Plan and any outstanding options or stock </font><br><font face="Arial" size="2">issuances thereunder as it may deem necessary or advisable. Decisions of the Plan Administrator shall be final and </font><br><font face="Arial" size="2">binding on all parties who have an interest in the Plan or any option grant or stock issuance thereunder.</font><br><br><font face="Arial" size="2">IV. 	ELIGIBILITY</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.   The persons eligible to participate in the Plan are as follows:</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	(i) Employees,</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	(ii) non-employee members of the Board or the non-employee members of the board of directors of </font><br><font face="Arial" size="2">any Parent or Subsidiary, and</font><br><br></p align="right">
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<br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	(iii) consultants and other independent advisors who provide services to the Corporation (or any </font><br><font face="Arial" size="2">Parent or Subsidiary).</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.   The Plan Administrator shall have full authority to determine, (i) with respect to the grants made under </font><br><font face="Arial" size="2">the Option Grant Program, which eligible persons are to receive such grants, the time or times when those grants are </font><br><font face="Arial" size="2">to be made, the number of shares to be covered by each such grant, the status of the granted option as either an </font><br><font face="Arial" size="2">Incentive Option or a Non-Statutory Option, the time or times when each option is to become exercisable, the vesting </font><br><font face="Arial" size="2">schedule (if any) applicable to the option shares and the maximum term for which the option is to remain outstanding, </font><br><font face="Arial" size="2">and (ii) with respect to stock issuances made under the Stock Issuance Program, which eligible persons are to </font><br><font face="Arial" size="2">receive such issuances, the time or times when those issuances are to be made, the number of shares to be issued </font><br><font face="Arial" size="2">to each Participant, the vesting schedule (if any) applicable to the issued shares and the consideration to be paid by </font><br><font face="Arial" size="2">the Participant for such shares.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.   The Plan Administrator shall have the absolute discretion either to grant options in accordance with the </font><br><font face="Arial" size="2">Option Grant Program or to effect stock issuances in accordance with the Stock Issuance Program.</font><br><br><font face="Arial" size="2">V. 	STOCK SUBJECT TO THE PLAN</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.   The stock issuable under the Plan shall be shares of authorized but unissued or reacquired Common </font><br><font face="Arial" size="2">Stock. The maximum number of shares of Common Stock that may be issued over the term of the Plan shall not </font><br><font face="Arial" size="2">exceed 20,000,000 shares. </font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.   Shares of Common Stock subject to outstanding options shall be available for subsequent issuance </font><br><font face="Arial" size="2">under the Plan to the extent (i) the options expire or terminate for any reason prior to exercise in full or (ii) the options </font><br><font face="Arial" size="2">are cancelled in accordance with the cancellation-regrant provisions of Article Two. Unvested shares issued under </font><br><font face="Arial" size="2">the Plan and subsequently surrendered to the Corporation pursuant to the Corporation&#8217;s rights under the Plan shall </font><br><font face="Arial" size="2">be added back to the number of shares of Common Stock reserved for issuance under the Plan and shall accordingly </font><br><font face="Arial" size="2">be available for reissuance through one or more subsequent option grants or direct stock issuances under the Plan.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.   Should any change be made to the Common Stock by reason of any stock split, stock dividend, </font><br><font face="Arial" size="2">recapitalization, combination of shares, exchange of shares or other change affecting the outstanding Common Stock </font><br><font face="Arial" size="2">as a class without the Corporation&#8217;s receipt of consideration, appropriate adjustments shall be made to (i) the </font><br><font face="Arial" size="2">maximum number and/or class of securities issuable under the Plan and (ii) the number and/or class of securities and </font><br><font face="Arial" size="2">the exercise price per share in effect under each outstanding option in order to prevent the dilution or enlargement of </font><br><font face="Arial" size="2">benefits thereunder. The adjustments determined by the Plan Administrator shall be final, binding and conclusive. </font><br></p align="center">
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<font face="Arial" size="2">ARTICLE TWO</font></p align="center">
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<font face="Arial" size="2">OPTION GRANT PROGRAM</font></p align="center">
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<br><font face="Arial" size="2">I. 	OPTION TERMS</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each option shall be evidenced by one or more documents in the form approved by the Plan Administrator; </font><br><font face="Arial" size="2">PROVIDED, however, that each such document shall comply with the terms specified below. Each document </font><br><font face="Arial" size="2">evidencing an Incentive Option shall, in addition, be subject to the provisions of the Plan applicable to such options.</font><br><br></p align="right">
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<br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.    EXERCISE PRICE.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	1. The exercise price per share shall be fixed by the Plan Administrator at the time of the option </font><br><font face="Arial" size="2">grant and may be equal to, less than or greater than the Fair Market Value per share of Common Stock on the option </font><br><font face="Arial" size="2">grant date.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	2. The exercise price shall become immediately due upon exercise of the option and shall, subject </font><br><font face="Arial" size="2">to the provisions of Section I of Article Four and the documents evidencing the option, be payable in cash or check </font><br><font face="Arial" size="2">made payable to the Corporation or as follows:</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;	(i) in shares of Common Stock held for the requisite period necessary to avoid a charge to </font><br><font face="Arial" size="2">the Corporation&#8217;s earnings for financial reporting purposes and valued at Fair Market Value on the  Exercise Date,</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;	(ii) to the extent the option is exercised for vested free trading shares, through a special </font><br><font face="Arial" size="2">sale and remittance procedure pursuant to which the Optionee shall concurrently provide irrevocable instructions (A) </font><br><font face="Arial" size="2">to a Corporation-designated brokerage firm to effect the immediate sale of the purchased shares and remit to the </font><br><font face="Arial" size="2">Corporation, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate </font><br><font face="Arial" size="2">exercise price payable for the purchased shares plus all applicable Federal, state and local income and employment </font><br><font face="Arial" size="2">taxes required to be withheld by the Corporation by reason of such exercise and (B) to the Corporation to deliver the </font><br><font face="Arial" size="2">certificates for the purchased shares directly to such brokerage firm in order to complete the sale, or</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;	(iii) through the use of other &#8220;Cashless Exercise&#8221; provisions as determined by the Plan </font><br><font face="Arial" size="2">Administrator in its sole discretion.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except to the extent such sale and remittance procedure is utilized, payment of the exercise price for the </font><br><font face="Arial" size="2">purchased shares must be made on the Exercise Date.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.   EXERCISE AND TERM OF OPTIONS. Each option shall be exercisable at such time or times, during </font><br><font face="Arial" size="2">such period and for such number of shares as shall be determined by the Plan Administrator and set forth in the </font><br><font face="Arial" size="2">documents evidencing the option grant. However, no option shall have a term in excess of ten (10) years measured </font><br><font face="Arial" size="2">from the option grant date.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.   EFFECT OF TERMINATION OF SERVICE.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	1. The following provisions shall govern the exercise of any options held by the Optionee at the </font><br><font face="Arial" size="2">time of cessation of Service or death:</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;	 (i) Should the Optionee cease to remain in Service for any reason other than death, </font><br><font face="Arial" size="2">Disability or Misconduct, then the Optionee shall have a period of three (3) months following the date of such </font><br><font face="Arial" size="2">cessation of Service during which to exercise each outstanding option held by such Optionee.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;	 (ii) Should Optionee&#8217;s Service terminate by reason of Disability, then the Optionee shall </font><br><font face="Arial" size="2">have a period of twelve (12) months following the date of such cessation of Service during which to exercise each </font><br><font face="Arial" size="2">outstanding option held by such Optionee.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;	(iii) If the Optionee dies while holding an outstanding option, then the personal </font><br><font face="Arial" size="2">representative of his or her estate or the person or persons to whom the option is transferred pursuant to the </font><br><font face="Arial" size="2">Optionee&#8217;s will or the laws of inheritance or the Optionee&#8217;s designated beneficiary or beneficiaries of that option shall </font><br><font face="Arial" size="2">have a twelve (12)-month period following the date of the Optionee&#8217;s death to exercise such option.</font><br><br></p align="right">
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<br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;	(iv) Under no circumstances, however, shall any such option be exercisable after the </font><br><font face="Arial" size="2">specified expiration of the option term.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;	(v) During the applicable post-Service exercise period, the option may not be exercised in </font><br><font face="Arial" size="2">the aggregate for more than the number of vested shares for which the option is exercisable on the date of the </font><br><font face="Arial" size="2">Optionee&#8217;s cessation of Service. Upon the expiration of the applicable exercise period or (if earlier) upon the </font><br><font face="Arial" size="2">expiration of the option term, the option shall terminate and cease to be outstanding for any vested shares for which </font><br><font face="Arial" size="2">the option has not been exercised. However, the option shall, immediately upon the Optionee&#8217;s cessation of Service, </font><br><font face="Arial" size="2">terminate and cease to be outstanding with respect to any and all option shares for which the option is not otherwise </font><br><font face="Arial" size="2">at the time exercisable or in which the Optionee is not otherwise at that time vested.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;	 (vi) Should Optionee&#8217;s Service be terminated for Misconduct or should Optionee </font><br><font face="Arial" size="2">otherwise engage in Misconduct while holding one or more outstanding options under the Plan, then all those options </font><br><font face="Arial" size="2">shall terminate immediately and cease to remain outstanding.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	2. The Plan Administrator shall have the discretion, exercisable either at the time an option is </font><br><font face="Arial" size="2">granted or at any time while the option remains outstanding, to:</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;	(i) extend the period of time for which the option is to remain exercisable following </font><br><font face="Arial" size="2">Optionee&#8217;s cessation of Service or death from the limited period otherwise in effect for that option to such greater </font><br><font face="Arial" size="2">period of time as the Plan Administrator shall deem appropriate, but in no event beyond the expiration of the option </font><br><font face="Arial" size="2">term, and/or</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;	(ii) permit the option to be exercised, during the applicable post-Service exercise period, </font><br><font face="Arial" size="2">not only with respect to the number of vested shares of Common Stock for which such option is  exercisable at the </font><br><font face="Arial" size="2">time of the Optionee&#8217;s cessation of Service but also with respect to one or more additional installments in which the </font><br><font face="Arial" size="2">Optionee would have vested under the option had the Optionee continued in Service.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.   STOCKHOLDER RIGHTS. The holder of an option shall have no stockholder rights with respect to the </font><br><font face="Arial" size="2">shares subject to the option until such person shall have exercised the option, paid the exercise price and become </font><br><font face="Arial" size="2">the recordholder of the purchased shares.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.   LIMITED TRANSFERABILITY OF OPTIONS. An Incentive Stock Option shall be exercisable only by the </font><br><font face="Arial" size="2">Optionee during his or her lifetime and shall not be assignable or transferable other than by will or by the laws of </font><br><font face="Arial" size="2">inheritance following the Optionee&#8217;s death. A Non-Statutory Option may be assigned in whole or in part during the </font><br><font face="Arial" size="2">Optionee&#8217;s lifetime to one or more members of the Optionee&#8217;s family or to a trust established exclusively for one or </font><br><font face="Arial" size="2">more such family members or to Optionee&#8217;s former spouse, to the extent such assignment is in connection with the </font><br><font face="Arial" size="2">Optionee&#8217;s estate plan or pursuant to a domestic relations order. The assigned portion may only be exercised by the </font><br><font face="Arial" size="2">person or persons who acquire a proprietary interest in the Non-Statutory Option pursuant to the assignment. The </font><br><font face="Arial" size="2">terms applicable to the assigned portion shall be the same as those in effect for the option immediately prior to such </font><br><font face="Arial" size="2">assignment and shall be set forth in such documents issued to the assignee as the Plan Administrator may deem </font><br><font face="Arial" size="2">appropriate. Notwithstanding the foregoing, the Optionee may also designate one or more persons as the beneficiary </font><br><font face="Arial" size="2">or beneficiaries of his or her outstanding options under the Plan, and those options shall, in accordance with such </font><br><font face="Arial" size="2">designation, automatically be transferred to such beneficiary or beneficiaries upon the Optionee&#8217;s death while holding </font><br><font face="Arial" size="2">those options. Such beneficiary or beneficiaries shall take the transferred options subject to all the terms and </font><br><font face="Arial" size="2">conditions of the applicable agreement evidencing each such transferred option, including (without limitation) the </font><br><font face="Arial" size="2">limited time period during which the option may be exercised following the Optionee&#8217;s death.</font><br><br></p align="right">
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<br><br><font face="Arial" size="2">II. 	INCENTIVE OPTIONS</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms specified below shall be applicable to all Incentive Options. Except as modified by the provisions </font><br><font face="Arial" size="2">of this Section II, all the provisions of Articles One, Two and Four shall be applicable to Incentive Options. Options </font><br><font face="Arial" size="2">which are specifically designated as Non-Statutory Options shall not be subject to the terms of this Section II.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.   ELIGIBILITY. Incentive Options may only be granted to Employees.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.   EXERCISE PRICE. The exercise price per share shall not be less than one hundred percent (100%) of </font><br><font face="Arial" size="2">the Fair Market Value per share of Common Stock on the option grant date. If the person to whom the Incentive </font><br><font face="Arial" size="2">Option is granted is a 10% Stockholder, then the exercise price per share shall not be less than one hundred ten </font><br><font face="Arial" size="2">percent (110%) of the Fair Market Value per share of Common Stock on the option grant date.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.   DOLLAR LIMITATION. The aggregate Fair Market Value of the shares of Common Stock (determined </font><br><font face="Arial" size="2">as of the respective date or dates of grant) for which one or more options granted to any Employee under the Plan (or </font><br><font face="Arial" size="2">any other option plan of the Corporation or any Parent or Subsidiary) may for the first time become exercisable as </font><br><font face="Arial" size="2">Incentive Options during any one (1) calendar year shall not exceed the sum of One Hundred Thousand Dollars </font><br><font face="Arial" size="2">($100,000). To the extent the Employee holds two (2) or more such options which become exercisable for the first </font><br><font face="Arial" size="2">time in the same calendar year, the foregoing limitation on the exercisability of such options as Incentive Options </font><br><font face="Arial" size="2">shall be applied on the basis of the order in which such options are granted.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.   10% STOCKHOLDER. If any Employee to whom an Incentive Option is granted is a 10% Stockholder, </font><br><font face="Arial" size="2">then the option term shall not exceed five (5) years measured from the option grant date.</font><br><br><font face="Arial" size="2">III. 	CHANGE IN CONTROL</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.   The shares subject to each option outstanding under the Plan at the time of a Change in Control shall </font><br><font face="Arial" size="2">automatically vest in full so that each such option shall, immediately prior to the effective date of the Change in </font><br><font face="Arial" size="2">Control, become exercisable for all of the shares of Common Stock at the time subject to that option and may be </font><br><font face="Arial" size="2">exercised for any or all of those shares as fully-vested shares of Common Stock. However, the shares subject to an </font><br><font face="Arial" size="2">outstanding option shall NOT vest on such an accelerated basis if and to the extent: (i) such option is assumed by the </font><br><font face="Arial" size="2">successor corporation (or parent thereof) or otherwise continued in full force and effect in pursuant to the terms of the </font><br><font face="Arial" size="2">Change in Control transaction or (ii) such option is to be replaced with a cash incentive program of the Corporation or </font><br><font face="Arial" size="2">any successor corporation which preserves the spread existing on the unvested option shares at the time of the</font><br><font face="Arial" size="2">Change in Control and provides for subsequent payout in accordance with the same vesting schedule applicable to </font><br><font face="Arial" size="2">those unvested option shares or (iii) the acceleration of such option is subject to other limitations imposed by the Plan </font><br><font face="Arial" size="2">Administrator at the time of the option grant.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.   Immediately following the consummation of the Change in Control, all outstanding options shall </font><br><font face="Arial" size="2">terminate and cease to be outstanding, except to the extent assumed by the successor corporation (or parent </font><br><font face="Arial" size="2">thereof) or otherwise continued in effect pursuant to the terms of the Change in Control transaction.</font><br><br></p align="right">
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<br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.   Each option which is assumed in connection with a Change in Control or otherwise continued in full </font><br><font face="Arial" size="2">force and effect shall be appropriately adjusted, immediately after such Change in Control, to apply to the number </font><br><font face="Arial" size="2">and class of securities which would have been issuable to the Optionee in consummation of such Change in Control, </font><br><font face="Arial" size="2">had the option been exercised immediately prior to such Change in Control. Appropriate adjustments shall also be </font><br><font face="Arial" size="2">made to (i) the number and class of securities available for issuance under the Plan following the consummation of </font><br><font face="Arial" size="2">such Change in Control and (ii) the exercise price payable per share under each outstanding option, PROVIDED the </font><br><font face="Arial" size="2">aggregate exercise price payable for such securities shall remain the same. To the extent the actual holders of the </font><br><font face="Arial" size="2">Corporation&#8217;s outstanding Common Stock receive cash consideration for their Common Stock in consummation of the </font><br><font face="Arial" size="2">Change in Control, the successor corporation may, in connection with the assumption of the outstanding options </font><br><font face="Arial" size="2">under this Plan, substitute one or more shares of its own common stock with a fair market value equivalent to the </font><br><font face="Arial" size="2">cash consideration paid per share of Common Stock in such Change in Control.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.   The Plan Administrator shall have the discretion, exercisable either at the time the option is granted or at </font><br><font face="Arial" size="2">any time while the option remains outstanding, to structure one or more options so that those options shall </font><br><font face="Arial" size="2">automatically accelerate and vest in full (and any repurchase rights of the Corporation with respect to the unvested </font><br><font face="Arial" size="2">shares subject to those options shall immediately terminate) upon the occurrence of a Change in Control, whether or </font><br><font face="Arial" size="2">not those options are to be assumed in the Change in Control or otherwise continued in effect.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.   The Plan Administrator shall also have full power and authority, exercisable either at the time the option </font><br><font face="Arial" size="2">is granted or at any time while the option remains outstanding, to structure such option so that the shares subject to </font><br><font face="Arial" size="2">that option will automatically vest on an accelerated basis should the Optionee&#8217;s Service terminate by reason of an </font><br><font face="Arial" size="2">Involuntary Termination within a designated period (not to exceed eighteen (18) months) following the effective date </font><br><font face="Arial" size="2">of any Change in Control in which the option is assumed or otherwise continued in effect. Any option so accelerated </font><br><font face="Arial" size="2">shall remain exercisable for the fully-vested option shares until the expiration or sooner termination of the option term. </font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.   The portion of any Incentive Option accelerated in connection with a Corporate Transaction shall remain </font><br><font face="Arial" size="2">exercisable as an Incentive Option only to the extent the applicable One Hundred Thousand Dollar limitation is not </font><br><font face="Arial" size="2">exceeded. To the extent such dollar limitation is exceeded, the accelerated portion of such option shall be exercisable </font><br><font face="Arial" size="2">as a Non-Statutory Option under the Federal tax laws.</font><br><br><font face="Arial" size="2"> 	G.   The grant of options under the Plan shall in no way affect the right of the Corporation to adjust, </font><br><font face="Arial" size="2">reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, </font><br><font face="Arial" size="2">liquidate or sell or transfer all or any part of its business or assets.</font><br><br><font face="Arial" size="2">IV. 	CANCELLATION AND REGRANT OF OPTIONS</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan Administrator shall have the authority to effect, at any time and from time to time, with the consent </font><br><font face="Arial" size="2">of the affected option holders, the cancellation of any or all outstanding options under the Plan and to grant in </font><br><font face="Arial" size="2">substitution therefore new options covering the same or different number of shares of Common Stock but with an </font><br><font face="Arial" size="2">exercise price per share based on the Fair Market Value per share of Common Stock on the new option grant date.</font><br><br></p align="right">
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<font face="Arial" size="2">ARTICLE THREE</font></p align="center">
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<font face="Arial" size="2">STOCK ISSUANCE PROGRAM</font></p align="center">
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<br><font face="Arial" size="2">I. 	STOCK ISSUANCE TERMS</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of Common Stock may be issued under the Stock Issuance Program through direct and immediate </font><br><font face="Arial" size="2">issuances without any intervening option grants. Each such stock issuance shall be evidenced by a Stock Issuance </font><br><font face="Arial" size="2">Agreement which complies with the terms specified below.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.   PURCHASE PRICE.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	1.  The purchase price per share shall be fixed by the Plan Administrator at the time of the share </font><br><font face="Arial" size="2">issuance and may be equal to, less than or greater than the Fair Market Value per share of Common Stock on the </font><br><font face="Arial" size="2">issue date.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	2.  Subject to the provisions of Section I of Article Four, shares of Common Stock may be issued </font><br><font face="Arial" size="2">under the Stock Issuance Program for any of the following items of consideration which the Plan Administrator may </font><br><font face="Arial" size="2">deem appropriate in each individual instance:</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;	(i)    cash or check made payable to the Corporation,</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;	(ii)   past services rendered to the Corporation (or any Parent or Subsidiary), or</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;	(iii)  any other valid consideration for the issuance of shares of Common Stock under the </font><br><font face="Arial" size="2">Nevada Revised Statutes.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.  VESTING PROVISIONS.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	1.  Shares of Common Stock issued under the Stock Issuance Program may, in the discretion of </font><br><font face="Arial" size="2">the Plan Administrator, be fully and immediately vested upon issuance or may vest in one or more installments over </font><br><font face="Arial" size="2">the Participant&#8217;s period of Service or upon attainment of specified performance objectives.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	2.  Any new, substituted or additional securities or other property (including money paid other than </font><br><font face="Arial" size="2">as a regular cash dividend) which the Participant may have the right to receive with respect to the Participant&#8217;s </font><br><font face="Arial" size="2">unvested shares of Common Stock by reason of any stock dividend, stock split, recapitalization, combination of </font><br><font face="Arial" size="2">shares, exchange of shares or other change affecting the outstanding Common Stock as a class without the </font><br><font face="Arial" size="2">Corporation&#8217;s receipt of consideration shall be issued subject to (i) the same vesting requirements applicable to the </font><br><font face="Arial" size="2">Participant&#8217;s unvested shares of Common Stock and (ii) such escrow arrangements as the Plan Administrator shall </font><br><font face="Arial" size="2">deem appropriate.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	3.   The Participant shall have full stockholder rights with respect to any shares of Common Stock </font><br><font face="Arial" size="2">issued to the Participant under the Stock Issuance Program, whether or not the Participant&#8217;s interest in those shares </font><br><font face="Arial" size="2">is vested. Accordingly, the Participant shall have the right to vote such shares and to receive any regular cash </font><br><font face="Arial" size="2">dividends paid on such shares.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	4.   Should the Participant cease to remain in Service while holding one or more unvested shares of </font><br><font face="Arial" size="2">Common Stock issued under the Stock Issuance Program or should the performance objectives not be attained with </font><br><font face="Arial" size="2">respect to one or more such unvested shares of Common Stock, then those shares shall be immediately surrendered </font><br><font face="Arial" size="2">to the Corporation for cancellation, and the Participant shall have no further stockholder rights with respect to those </font><br><font face="Arial" size="2">shares. To the extent the surrendered shares were previously issued to the Participant for consideration paid in cash </font><br><font face="Arial" size="2">or cash equivalent (including the Participant&#8217;s purchase-money indebtedness), the Corporation shall repay to the </font><br><font face="Arial" size="2">Participant the cash consideration paid for the surrendered shares and shall cancel the unpaid principal balance of </font><br><font face="Arial" size="2">any outstanding purchase-money note of the Participant attributable to such surrendered shares.</font><br><br></p align="right">
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<br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	5.   The Plan Administrator may in its discretion waive the surrender and cancellation of one or </font><br><font face="Arial" size="2">more unvested shares of Common Stock (or other assets attributable thereto) which would otherwise occur upon the </font><br><font face="Arial" size="2">non-completion of the vesting schedule applicable to those shares. Such waiver shall result in the immediate vesting </font><br><font face="Arial" size="2">of the Participant&#8217;s interest in the shares of Common Stock as to which the waiver applies. Such waiver may be </font><br><font face="Arial" size="2">effected at any time, whether before or after the Participant&#8217;s cessation of Service or the attainment or non-attainment </font><br><font face="Arial" size="2">of the applicable performance objectives.</font><br><br><font face="Arial" size="2">II. 	CHANGE IN CONTROL</font><br><br><font face="Arial" size="2">Upon the occurrence of a Change in Control, any unvested shares of Common Stock shall immediately vest in full, </font><br><font face="Arial" size="2">except to the extent such accelerated vesting is precluded by other limitations imposed by the Plan Administrator.</font><br><br><font face="Arial" size="2">III. 	SHARE ESCROW/LEGENDS</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unvested shares may, in the Plan Administrator&#8217;s discretion, be held in escrow by the Corporation until the </font><br><font face="Arial" size="2">Participant&#8217;s interest in such shares vests or may be issued directly to the Participant with restrictive legends on the </font><br><font face="Arial" size="2">certificates evidencing those unvested shares.</font><br></p align="center">
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<font face="Arial" size="2">ARTICLE FOUR</font></p align="center">
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<font face="Arial" size="2">MISCELLANEOUS</font></p align="center">
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<br><font face="Arial" size="2">I. 	FINANCING</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan Administrator may permit any Optionee or Participant to pay the option exercise price under the </font><br><font face="Arial" size="2">Option Grant Program or the purchase price for shares issued under the Stock Issuance Program by delivering a full-</font><br><font face="Arial" size="2">recourse, interest bearing promissory note payable in one or more installments and secured by the purchased </font><br><font face="Arial" size="2">shares. In no event may the maximum credit available to the Optionee or Participant exceed the sum of (i) the </font><br><font face="Arial" size="2">aggregate option exercise price or purchase price payable for the purchased shares (less the par value of those </font><br><font face="Arial" size="2">shares) plus (ii) any Federal, state and local income and employment tax liability incurred by the Optionee or the </font><br><font face="Arial" size="2">Participant in connection with the option exercise or share purchase.</font><br><br><font face="Arial" size="2">II. 	EFFECTIVE DATE AND TERM OF PLAN</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.   The Plan shall become effective when adopted by the Board, but no option granted under the Plan may </font><br><font face="Arial" size="2">be exercised, and no shares shall be issued under the Plan, until the Plan is approved by the Corporation&#8217;s </font><br><font face="Arial" size="2">stockholders. If such stockholder approval is not obtained within twelve (12) months after the date of the Board&#8217;s </font><br><font face="Arial" size="2">adoption of the Plan, then all options previously granted under the Plan shall terminate and cease to be outstanding, </font><br><font face="Arial" size="2">and no further options shall be granted and no shares shall be issued under the Plan. Subject to such limitation, the </font><br><font face="Arial" size="2">Plan Administrator may grant options and issue shares under the Plan at any time after the effective date of the Plan </font><br><font face="Arial" size="2">and before the date fixed herein for termination of the Plan.</font><br><br></p align="right">
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<br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.   The Plan shall terminate upon the EARLIEST of (i) the expiration of the ten (10)-year period measured </font><br><font face="Arial" size="2">from the date the Plan is adopted by the Board, (ii) the date on which all shares available for issuance under the Plan </font><br><font face="Arial" size="2">shall have been issued as vested shares or (iii) the termination of all outstanding options in connection with a </font><br><font face="Arial" size="2">Corporate Transaction. All options and unvested stock issuances outstanding at the time of a clause (i) termination </font><br><font face="Arial" size="2">event shall continue to have full force and effect in accordance with the provisions of the documents evidencing those </font><br><font face="Arial" size="2">options or issuances.</font><br><br><font face="Arial" size="2">III. 	AMENDMENT OF THE PLAN</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.   The Board shall have complete and exclusive power and authority to amend or modify the Plan in any or </font><br><font face="Arial" size="2">all respects. However, no such amendment or modification shall adversely affect the rights and obligations with </font><br><font face="Arial" size="2">respect to options or unvested stock issuances at the time outstanding under the Plan unless the Optionee or the </font><br><font face="Arial" size="2">Participant consents to such amendment or modification. In addition, certain amendments may require stockholder </font><br><font face="Arial" size="2">approval pursuant to applicable laws and regulations.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.   Options may be granted under the Option Grant Program and shares may be issued under the Stock </font><br><font face="Arial" size="2">Issuance Program which are in each instance in excess of the number of shares of Common Stock then available for </font><br><font face="Arial" size="2">issuance under the Plan, provided any excess shares actually issued under those programs shall be held in escrow </font><br><font face="Arial" size="2">until there is obtained stockholder approval of an amendment sufficiently increasing the number of shares of </font><br><font face="Arial" size="2">Common Stock available for issuance under the Plan. If such stockholder approval is not obtained within twelve (12) </font><br><font face="Arial" size="2">months after the date the first such excess grants or issuances are made, then (i) any unexercised options granted </font><br><font face="Arial" size="2">on the basis of such excess shares shall terminate and cease to be outstanding and (ii) the Corporation shall </font><br><font face="Arial" size="2">promptly refund to the Optionees and the Participants the exercise or purchase price paid for any excess shares </font><br><font face="Arial" size="2">issued under the Plan and held in escrow, together with interest (at the applicable Short Term Federal Rate) for the </font><br><font face="Arial" size="2">period the shares were held in escrow, and such shares shall thereupon be automatically cancelled and cease to be </font><br><font face="Arial" size="2">outstanding.</font><br><br><font face="Arial" size="2">IV. 	USE OF PROCEEDS</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any cash proceeds received by the Corporation from the sale of shares of Common Stock under the Plan </font><br><font face="Arial" size="2">shall be used for general corporate purposes.</font><br><br><font face="Arial" size="2">V. 	WITHHOLDING</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation&#8217;s obligation to deliver to Employees shares of Common Stock upon the exercise of any </font><br><font face="Arial" size="2">options granted under the Plan or upon the issuance or vesting of any shares issued under the Plan shall be subject </font><br><font face="Arial" size="2">to the satisfaction of all applicable Federal, state and local income and employment tax withholding requirements.</font><br><br><font face="Arial" size="2">VI. 	REGULATORY APPROVALS</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The implementation of the Plan, the granting of any options under the Plan and the issuance of any shares </font><br><font face="Arial" size="2">of Common Stock (i) upon the exercise of any option or (ii) under the Stock Issuance Program shall be subject to the </font><br><font face="Arial" size="2">Corporation&#8217;s procurement of all approvals and permits required by regulatory authorities having jurisdiction over the </font><br><font face="Arial" size="2">Plan, the options granted under it and the shares of Common Stock issued pursuant to it.</font><br><br></p align="right">
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<br><br><font face="Arial" size="2">VII. 	NO EMPLOYMENT OR SERVICE RIGHTS</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nothing in the Plan shall confer upon the Optionee or the Participant any right to continue in Service for any </font><br><font face="Arial" size="2">period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent </font><br><font face="Arial" size="2">or Subsidiary employing or retaining such person) or of the Optionee or the Participant, which rights are hereby </font><br><font face="Arial" size="2">expressly reserved by each, to terminate such person&#8217;s Service at any time for any reason, with or without cause; </font><br><font face="Arial" size="2">provided, however, that if a written employment agreement between the Optionee and the Corporation is in effect, </font><br><font face="Arial" size="2">that agreement shall govern the terms and conditions of Optionee&#8217;s employment.</font><br><br><br></p align="right">
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<font face="Arial" size="2">APPENDIX</font></p align="center">
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<br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following definitions shall be in effect under the Plan:</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.   BOARD shall mean the Corporation&#8217;s Board of Directors.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.   CHANGE IN CONTROL shall mean a change in ownership or control of the Corporation effected through </font><br><font face="Arial" size="2">any of the following transactions:</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a stockholder-approved merger or consolidation in which securities possessing more than fifty </font><br><font face="Arial" size="2">percent (50%) of the total combined voting power of the Corporation&#8217;s outstanding securities are transferred to a </font><br><font face="Arial" size="2">person or persons different from the persons holding those securities immediately prior to such transaction, or</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a stockholder-approved sale, transfer or other disposition of all or substantially all of the </font><br><font face="Arial" size="2">Corporation&#8217;s assets in complete liquidation or dissolution of the Corporation, or</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the acquisition, directly or indirectly, by an person or related group of persons (other than the </font><br><font face="Arial" size="2">Corporation or a person that directly or indirectly controls, is controlled by, or is under common control with, the </font><br><font face="Arial" size="2">Corporation), of beneficial ownership (within the meaning of Rule 13-d3 of the 1934 Act) of securities possessing </font><br><font face="Arial" size="2">more than fifty percent (50%) of the total combined voting power of the Corporation&#8217;s outstanding securities pursuant </font><br><font face="Arial" size="2">to a tender or exchange offer made directly to the Corporation&#8217;s stockholders.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.   CODE shall mean the Internal Revenue Code of 1986, as amended.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.   COMMITTEE shall mean a committee of two (2) or more Board members appointed by the Board to </font><br><font face="Arial" size="2">exercise one or more administrative functions under the Plan.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.   COMMON STOCK shall mean the Corporation&#8217;s common stock.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.   CORPORATION shall mean Continental Fuels, Inc., a Nevada corporation, and any successor </font><br><font face="Arial" size="2">corporation to all or substantially all of the assets or voting stock of Continental Fuels, Inc., which shall by appropriate </font><br><font face="Arial" size="2">action adopt the Plan.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.   DISABILITY shall mean the inability of the Optionee or the Participant to engage in any substantial gainful </font><br><font face="Arial" size="2">activity by reason of any medically determinable physical or mental impairment and shall be determined by the Plan </font><br><font face="Arial" size="2">Administrator on the basis of such medical evidence as the Plan Administrator deems warranted under the </font><br><font face="Arial" size="2">circumstances.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H.   EMPLOYEE shall mean an individual who is in the employ of the Corporation (or any Parent or </font><br><font face="Arial" size="2">Subsidiary), subject to the control and direction of the employer entity as to both the work to be performed and the </font><br><font face="Arial" size="2">manner and method of performance.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.   EXERCISE DATE shall mean the date on which the Corporation shall have received written notice of the </font><br><font face="Arial" size="2">option exercise.</font><br><br></p align="right">
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<br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J.   FAIR MARKET VALUE per share of Common Stock on any relevant date shall be determined in </font><br><font face="Arial" size="2">accordance with the following provisions:</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the Common Stock is at the time traded on the Nasdaq National Market or OTC Bulletin Board, </font><br><font face="Arial" size="2">then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question, as </font><br><font face="Arial" size="2">such price is reported by the National Association of Securities Dealers. If there is no closing selling price for the </font><br><font face="Arial" size="2">Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last </font><br><font face="Arial" size="2">preceding date for which such quotation exists.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall </font><br><font face="Arial" size="2">be the closing selling price per share of Common Stock on the date in question on the Stock Exchange determined </font><br><font face="Arial" size="2">by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the </font><br><font face="Arial" size="2">composite tape of transactions on such exchange. If there is no closing selling price for the Common Stock on the </font><br><font face="Arial" size="2">date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which </font><br><font face="Arial" size="2">such quotation exists.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If the Common Stock is at the time neither listed on any Stock Exchange nor traded on the Nasdaq </font><br><font face="Arial" size="2">National Market or the OTC Bulletin Board, then the Fair Market Value shall be determined by the Plan Administrator </font><br><font face="Arial" size="2">after taking into account such factors as the Plan Administrator shall deem appropriate.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K.   INCENTIVE OPTION shall mean an option which satisfies the requirements of Code Section 422.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;L.  INVOLUNTARY TERMINATION shall mean the termination of the Service of any individual which occurs </font><br><font face="Arial" size="2">by reason of:</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such individual&#8217;s involuntary dismissal or discharge by the Corporation for reasons other than </font><br><font face="Arial" size="2">Misconduct, or</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such individual&#8217;s voluntary resignation following (A) a change in his or her position with the </font><br><font face="Arial" size="2">Corporation which materially reduces his or her duties and responsibilities or the level of management to which he or </font><br><font face="Arial" size="2">she reports, (B) a reduction in his or her level of compensation (including base salary, fringe benefits and target </font><br><font face="Arial" size="2">bonus under any corporate-performance based bonus or incentive programs) by more than fifteen percent (15%) or </font><br><font face="Arial" size="2">(C) a relocation of such individual&#8217;s place of employment by more than fifty (50) miles, provided and only if such </font><br><font face="Arial" size="2">change, reduction or relocation is effected without the individual&#8217;s consent.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M.  MISCONDUCT shall mean the commission of any act of fraud, embezzlement or dishonesty by the </font><br><font face="Arial" size="2">Optionee or Participant, any unauthorized use or disclosure by such person of confidential information or trade </font><br><font face="Arial" size="2">secrets of the Corporation (or any Parent or Subsidiary), or any other intentional misconduct by such person </font><br><font face="Arial" size="2">adversely affecting the business or affairs of the Corporation (or any Parent or Subsidiary) in a material manner. The </font><br><font face="Arial" size="2">foregoing definition shall not be deemed to be inclusive of all the acts or omissions which the Corporation (or any </font><br><font face="Arial" size="2">Parent or Subsidiary) may consider as grounds for the dismissal or discharge of any Optionee, Participant or other </font><br><font face="Arial" size="2">person in the Service of the Corporation (or any Parent or Subsidiary).</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N.   1934 ACT shall mean the Securities Exchange Act of 1934, as amended.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;O.   NON-STATUTORY OPTION shall mean an option not intended to satisfy the requirements of Code </font><br><font face="Arial" size="2">Section 422.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;P.   OPTION GRANT PROGRAM shall mean the option grant program in effect under the Plan.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Q.  OPTIONEE shall mean any person to whom an option is granted under the Plan.</font><br><br></p align="right">
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<br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;R.   PARENT shall mean any corporation (other than the Corporation) in an unbroken chain of corporations </font><br><font face="Arial" size="2">ending with the Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at </font><br><font face="Arial" size="2">the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all </font><br><font face="Arial" size="2">classes of stock in one of the other corporations in such chain.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;S.   PARTICIPANT shall mean any person who is issued shares of Common Stock under the Stock Issuance </font><br><font face="Arial" size="2">Program.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;T.   PLAN shall mean the Corporation&#8217;s 2007 Stock Option/Stock Issuance Plan, as set forth in this document.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.   PLAN ADMINISTRATOR shall mean either the Board or the Committee acting in its capacity as </font><br><font face="Arial" size="2">administrator of the Plan.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V.   SERVICE shall mean the provision of services to the Corporation (or any Parent or Subsidiary) by a </font><br><font face="Arial" size="2">person in the capacity of an Employee, a non-employee member of the board of directors or a consultant or </font><br><font face="Arial" size="2">independent advisor, except to the extent otherwise specifically provided in the documents evidencing the option </font><br><font face="Arial" size="2">grant.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W.   STOCK EXCHANGE shall mean either the American Stock Exchange or the New York Stock Exchange.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X.   STOCK ISSUANCE AGREEMENT shall mean the agreement entered into by the Corporation and the </font><br><font face="Arial" size="2">Participant at the time of issuance of shares of Common Stock under the Stock Issuance Program.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Y.   STOCK ISSUANCE PROGRAM shall mean the stock issuance program in effect under the Plan.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Z.   SUBSIDIARY shall mean any corporation (other than the Corporation) in an unbroken chain of </font><br><font face="Arial" size="2">corporations beginning with the Corporation, provided each corporation (other than the last corporation) in the </font><br><font face="Arial" size="2">unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total </font><br><font face="Arial" size="2">combined voting power of all classes of stock in one of the other corporations in such chain.</font><br><br><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AA. 10% STOCKHOLDER shall mean the owner of stock (as determined under Code Section 424(d)) </font><br><font face="Arial" size="2">possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Corporation </font><br><font face="Arial" size="2">(or any Parent or Subsidiary).</font><br><br></p align="right">
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