Common use of Exercise of Option Clause in Contracts

Exercise of Option. In order to exercise the Option, the Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange.

Exercise of Option. In order to exercise the Option, the Option Holder shall submit to shall, in the Company an instrument in writing signed manner directed by the Option HolderCompany, specifying specify the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. In addition, in lieu of making payment of the exercise price of the Option and receiving the number of Shares for which the Option is being exercised as described above, the Option Holder may instead elect to exercise the Option by making no cash exercise price payment but having the Company issue to the Option Holder the number of Shares (rounded down to the nearest whole number) equal to the net result obtained by (A) subtracting the exercise price per Share from the Fair Market Value per Share on the date of exercise, (B) multiplying the difference by the number of Shares for which the Option is being exercised, and (C) dividing the product by the Fair Market Value per Share on the date of exercise. For the avoidance of doubt, if the calculation in the immediately preceding sentence results in a negative number, no Shares will be issued upon exercise. Option Shares will be issued accordingly by the Company, and a share certificate dispatched or electronic delivery of such Option Shares to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange.

Exercise of Option. In order Subject to exercise the Optionlimitations set forth herein and in the Plan, the this Option Holder shall submit may be exercised by notice provided to the Company an instrument as set forth in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), Section 5. The payment of the Option Exercise Price for the Option Shares for which Common Stock being purchased pursuant to the Option is being exercised. Payment shall be made (a) in cash, by check or cash equivalent, (b) by tender to the Company in cash Company, or Shares already attestation to the ownership, of Common Stock owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and Optionee having a total Fair Market Value (as defined belowdetermined by the Company without regard to any restrictions on transferability applicable to such Common Stock by reason of federal or state securities laws or agreements with an underwriter for the Company) equal not less than the Exercise Price, (c) by delivery of a properly executed notice together with irrevocable instructions to a broker providing for the assignment to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in proceeds of a Share would be deliverable sale or loan with respect to some or all of the shares being acquired upon the exercise of the Option in whole or in part but for (including, without limitation, through an exercise complying with the provisions of this paragraphRegulation T as promulgated from time to time by the Board of Governors of the Federal Reserve System), the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount (d) by withholding Option Shares equal to their the Exercise Price multiplied by the number of Options exercised divided by the Fair Market Value at the time of exercise, rounded up to the nearest whole share, (e) by such other consideration as may be approved by the Board from time to time to the extent permitted by applicable law, or (f) by any combination thereof. Such notice shall be accompanied by cash or Common Stock in the full amount of all federal and state withholding or other employment taxes applicable to the taxable income of such Optionee resulting from such exercise (or instructions to satisfy such withholding obligation by withholding Option Shares in accordance with Section 8). Notwithstanding the foregoing, if the Exercise Price of the outstanding portion of the Option is less than the Fair Market Value of a share of Common Stock on the day the Option would otherwise expire as provided in Section 3(a), then the Option shall be automatically exercised in full pursuant to clause (d) above immediately prior to its expiration. If the Optionee desires to pay the purchase price for the Option Shares by tendering Common Stock using the method of attestation, the Optionee may, subject to any such conditions and in compliance with any such procedures as the Committee may adopt, do so by attesting to the ownership of Common Stock of the requisite value, in which case the Company shall issue or otherwise deliver to the Optionee upon such exercise a number of Option Shares are not publicly traded, an amount equal to the book value result obtained by dividing (a) the excess of the aggregate Fair Market Value of the total number shares of Common Stock subject to the Option for which the Option (or portion thereof) is being exercised over the purchase price payable in respect of such exercise by (b) the Fair Market Value per share at of Common Stock subject to the end Option, and the Optionee may retain the shares of Common Stock the most recent fiscal quarter) multiplied by the fraction ownership of the fractional share which would otherwise have been issued hereunderis attested. Anything Notwithstanding anything to the contrary herein notwithstandingcontained herein, the Optionee agrees that he will not exercise the Option granted pursuant hereto, and the Company shall will not be obligated to issue any Option Shares hereunder pursuant to this Option Agreement, if the exercise of the Option or the issuance of such Option Shares shares would violate constitute a violation by the Optionee or by the Company of any provision of any applicable lawlaw or regulation of any governmental authority or any stock exchange or transaction quotation system. The Optionee agrees that, in which event unless the options and shares covered by the Plan have been registered pursuant to the Securities Act of 1933, as amended, the Company shallmay, at its election, require the Optionee to give a representation in writing in form and substance satisfactory to the Company to the effect that he is acquiring such shares for his own account for investment and not with a view to, or for sale in connection with, the distribution of such shares or any part thereof. If any law or regulation requires the Company to take any action with respect to the shares specified in such notice, the time for delivery thereof, which would otherwise be as soon promptly as reasonably practicable, shall be postponed for the period of time necessary to take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeaction.

Exercise of Option. In order to exercise the Option, the Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement)Company, of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open marketmonths) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereofacceptable. Option Shares will be issued accordingly by the CompanyCompany within 15 business days, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange.

Exercise of Option. In order The Option granted hereby shall be exercisable, subject to exercise the provisions of the preceding Paragraphs 3 and 4, in whole or in part, at any time and from time to time during the term of the Option, the provided such exercise is for a whole number of Shares. The Option Holder shall submit be exercised by signing and returning to the Company, at the office of the Company an instrument at the address set forth in writing Paragraph 11 hereof, to the attention of the President of the Company, the "Notice of Exercise" which is set forth as Exhibit A hereto, together with the tender of the purchase price which shall be payable in United States dollars. Such Notice of Exercise shall be signed by the Option Holderperson exercising the Option, specifying shall state the whole number of Option Shares in with respect of to which the Option is being exercised, accompanied by payment, in a manner acceptable to exercised and shall otherwise comply with the Company (which shall include a broker assisted exercise arrangement), terms and conditions of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 daysthis Agreement. The Company shall deliver a certificate or certificates representing such Shares as soon as practicable after the Notice of Exercise is received. The certificate or certificates for the Shares as to which the Option shall have been exercised shall be registered in the name of the person or persons exercising the Option (or if the Optionee requests in the Notice of Exercise, shall be registered in the name of the Optionee and another person jointly with right of survivorship). In the event of the death of the Optionee, the Option, to the extent exercisable but not exercised as of the date of death, may be required exercised by the estate of the Optionee or by any person or person who acquired the right to issue fractional Shares upon exercise the exercise Option by bequest or inheritance from the Optionee or by reason of the death of such Optionee. In such event, the Option must be exercised, if at all, within the originally prescribed term of the Option. If In the event that the Option shall be exercised by any fractional interest in a Share would person or persons other than the Optionee, such Notice of Exercise shall be deliverable accompanied by appropriate proof of the right of such person or persons to exercise the Option. All Shares that shall be purchased upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, as provided herein shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high fully paid and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangenonassessable.

Exercise of Option. In order (a) Subject to exercise the OptionSection 2, the Vested Portion of the Option Holder shall submit may be exercised by delivering to the Company an instrument in writing signed by at its principal office written notice of intent to so exercise; provided that the Option Holder, specifying may be exercised with respect to whole Shares only. Such notice shall specify the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment exercised (the “Purchased Shares”) and shall be accompanied by payment in full of the Option Price in cash or by check or wire transfer; provided, however, that payment of such aggregate Option Price may instead be made, in whole or in part, by one or more of the following: (i) provided that the Company is not then contractually prohibited from permitting exercise in this fashion, the delivery to the Company in cash of a certificate or Shares already owned certificates representing Shares, duly endorsed or accompanied by a duly executed stock power, which delivery effectively transfers to the Option Holder Company good and valid title to such Shares, free and clear of any pledge, commitment, lien, claim or other encumbrance (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total to be valued at their aggregate Fair Market Value on the date of such exercise), provided that if a certificate or certificates representing Shares in excess of the amount required are delivered, a certificate (as defined belowor other satisfactory evidence of ownership) equal to representing the exercise price, or in a combination excess number of cash and such Shares, Shares shall promptly be deemed acceptable for purposes hereof. Option Shares will be issued accordingly returned by the Company, and (ii) a share certificate dispatched reduction in the number of Purchased Shares to be issued upon such exercise having a Fair Market Value on the date of exercise equal to the aggregate Option Price in respect of the Purchased Shares, provided that the Company is not then contractually prohibited from permitting exercise in this fashion, or (iii) other cashless exercise procedures approved by the Committee. The Participant shall not have any rights to dividends or other rights of a stockholder with respect to Shares subject to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon until the Participant has given written notice of exercise of the Option. If , paid the Option Price in full for such Shares and, if applicable, has satisfied any fractional interest other conditions pursuant to the Plan or this Agreement (including provisions for the payment of applicable withholding taxes, which provisions may be made in a Share would be deliverable upon the exercise any of the ways in which the Option Price may be paid). Notwithstanding anything to the contrary contained in whole this Agreement or in part but the Plan, for the provisions purposes of this paragraphSection 5(a), the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly tradedof a Share shall, an amount equal to the book value per share at the end extent necessary to avoid incurring “additional tax,” interest or penalties under Section 409A of the most recent fiscal quarter) multiplied by Code, not be treated as greater than the fraction “fair market value” of a Share determined consistently with Section 409A of the fractional share which would otherwise have been issued hereunder. Anything to Code and the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high regulations and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeguidance promulgated thereunder.

Exercise of Option. In order Subject to exercise the Optionlimitations set forth herein and in the Plan, the this Option Holder shall submit may be exercised by notice provided to the Company an instrument as set forth in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), Section 5. The payment of the Option Exercise Price for the Option Shares for which being purchased pursuant to the Option is being exercised. Payment shall be made (a) in cash, by check or cash equivalent, (b) by tender to the Company in cash Company, or Shares already attestation to the ownership, of Common Stock owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and Optionee having a total Fair Market Value (as defined belowdetermined by the Company without regard to any restrictions on transferability applicable to such Common Stock by reason of federal or state securities laws or agreements with an underwriter for the Company) equal not less than the Exercise Price, (c) by delivery of a properly executed notice together with irrevocable instructions to a broker providing for the assignment to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in proceeds of a Share would be deliverable sale or loan with respect to some or all of the shares being acquired upon the exercise of the Option in whole or in part but for (including, without limitation, through an exercise complying with the provisions of this paragraphRegulation T as promulgated from time to time by the Board of Governors of the Federal Reserve System), the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount (d) by withholding Option Shares equal to their the Exercise Price multiplied by the number of Options exercised divided by the Fair Market Value at the time of exercise, rounded up to the nearest whole share, (e) by such other consideration as may be approved by the Board from time to time to the extent permitted by applicable law, or (f) by any combination thereof. Notwithstanding the foregoing, if the Exercise Price of the outstanding portion of the Option is less than the Fair Market Value of a share of Common Stock on the day the Option would otherwise expire as provided in Section 3(a), then the Option shall be automatically exercised in full pursuant to clause (d) above immediately prior to its expiration. If the Optionee desires to pay the purchase price for the Option Shares by tendering Common Stock using the method of attestation, the Optionee may, subject to any such conditions and in compliance with any such procedures as the Committee may adopt, do so by attesting to the ownership of Common Stock of the requisite value, in which case the Company shall issue or otherwise deliver to the Optionee upon such exercise a number of Option Shares are not publicly traded, an amount equal to the book value result obtained by dividing (a) the excess of the aggregate Fair Market Value of the total number shares of Common Stock subject to the Option for which the Option (or portion thereof) is being exercised over the purchase price payable in respect of such exercise by (b) the Fair Market Value per share at of Common Stock subject to the end Option, and the Optionee may retain the shares of Common Stock the most recent fiscal quarter) multiplied by the fraction ownership of the fractional share which would otherwise have been issued hereunderis attested. Anything Notwithstanding anything to the contrary herein notwithstandingcontained herein, the Optionee agrees that he will not exercise the Option granted pursuant hereto, and the Company shall will not be obligated to issue any Option Shares hereunder pursuant to this Option Agreement, if the exercise of the Option or the issuance of such Option Shares shares would violate constitute a violation by the Optionee or by the Company of any provision of any applicable lawlaw or regulation of any governmental authority or any stock exchange or transaction quotation system. The Optionee agrees that, in which event unless the options and shares covered by the Plan have been registered pursuant to the Securities Act of 1933, as amended (the “Act”), the Company shallmay, at its election, require the Optionee to give a representation in writing in form and substance satisfactory to the Company to the effect that he is acquiring such shares for his own account for investment and not with a view to, or for sale in connection with, the distribution of such shares or any part thereof. If any law or regulation requires the Company to take any action with respect to the shares specified in such notice, the time for delivery thereof, which would otherwise be as soon promptly as reasonably practicable, shall be postponed for the period of time necessary to take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeaction.

Exercise of Option. In order Subject to exercise the Optionlimitations set forth herein and in the Plan, the this Option Holder shall submit may be exercised by written notice provided to the Company an instrument as set forth in writing signed by Section 5. Such written notice shall (a) state the Option Holder, specifying the whole number of Option Shares in shares of Common Stock with respect of to which the Option is being exercised, (b) be accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder shares of Common Stock (provided that the Option Holder has owned such Shares for a minimum period of six months not subject to limitations on transfer) or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and Common Stock payable to Pride International, Inc. in the full amount of the purchase price for any shares of Common Stock being acquired and (c) be accompanied by cash or Common Stock in the full amount of all federal and state withholding or other employment taxes applicable to the taxable income of such SharesParticipant resulting from such exercise (or instructions to satisfy such withholding obligation by withholding Option Shares in accordance with Section 8); provided, however, that any shares of Common Stock delivered in payment of the option price that are or were the subject of an award under the Plan must be shares that the Optionee has owned for a period of at least six months prior to the date of exercise. For the purpose of determining the amount, if any, of the purchase price satisfied by payment in Common Stock, such Common Stock shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their valued at its Fair Market Value (or if any Shares are not publicly traded, an amount equal to on the book value per share at the end date of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunderexercise. Anything Notwithstanding anything to the contrary herein notwithstandingcontained herein, the Optionee agrees that he will not exercise the option granted pursuant hereto, and the Company shall will not be obligated to issue any option shares pursuant to this Option Shares hereunder Agreement, if the exercise of the Option or the issuance of such Option Shares shares would violate constitute a violation by the Optionee or by the Company of any provision of any applicable lawlaw or regulation of any governmental authority or any stock exchange or transaction quotation system. The Optionee agrees that, in which event unless the options and shares covered by the Plan have been registered pursuant to the Securities Act of 1933, as amended (the “Act”), the Company shallmay, as soon as practicableat its election, require the Optionee to give a representation in writing in form and substance satisfactory to the Company to the effect that he is acquiring such shares for his own account for investment and not with a view to, or for sale in connection with, the distribution of such shares or any part thereof. If any law or regulation requires the Company to take whatever any action it reasonably can so that such Option Shares may be issued without resulting with respect to the shares specified in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that daynotice, the next preceding day that time for delivery thereof, which would otherwise be as promptly as possible, shall be postponed for the Shares were traded) on the principal exchange on which the Shares are traded, as period of time necessary to take such prices are officially quoted on such exchangeaction.

Exercise of Option. In order Subject to exercise the Optionlimitations set forth herein and in the Plan, the this Option Holder shall submit may be exercised by notice provided to the Company an instrument as set forth in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), Section 5. The payment of the Option Exercise Price for the Option Shares for which being purchased pursuant to the Option is being exercised. Payment shall be made (a) in cash, by check or cash equivalent, (b) by tender to the Company in cash Company, or Shares already attestation to the ownership, of Common Stock owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and Optionee having a total Fair Market Value (as defined belowdetermined by the Company without regard to any restrictions on transferability applicable to such Common Stock by reason of federal or state securities laws or agreements with an underwriter for the Company) equal not less than the Exercise Price, (c) by delivery of a properly executed notice together with irrevocable instructions to a broker providing for the assignment to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in proceeds of a Share would be deliverable sale or loan with respect to some or all of the shares being acquired upon the exercise of the Option in whole or in part but for (including, without limitation, through an exercise complying with the provisions of this paragraphRegulation T as promulgated from time to time by the Board of Governors of the Federal Reserve System), (d) by such other consideration as may be approved by the Board from time to time to the extent permitted by applicable law, or (e) by any combination thereof. If the Optionee desires to pay the purchase price for the Option Shares by tendering Common Stock using the method of attestation, the CompanyOptionee may, subject to any such conditions and in compliance with any such procedures as the Committee may adopt, do so by attesting to the ownership of Common Stock of the requisite value, in lieu which case the Company shall issue or otherwise deliver to the Optionee upon such exercise a number of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount Option Shares equal to their the result obtained by dividing (a) the excess of the aggregate Fair Market Value of the total number shares of Common Stock subject to the Option for which the Option (or if any Shares are not publicly traded, an amount equal portion thereof) is being exercised over the purchase price payable in respect of such exercise by (b) the Fair Market Value per share of Common Stock subject to the book value per share at Option, and the end Optionee may retain the shares of Common Stock the most recent fiscal quarter) multiplied by the fraction ownership of the fractional share which would otherwise have been issued hereunderis attested. Anything Notwithstanding anything to the contrary herein notwithstandingcontained herein, the Optionee agrees that he will not exercise the Option granted pursuant hereto, and the Company shall will not be obligated to issue any Option Shares hereunder pursuant to this Option Agreement, if the exercise of the Option or the issuance of such Option Shares shares would violate constitute a violation by the Optionee or by the Company of any provision of any applicable lawlaw or regulation of any governmental authority or any stock exchange or transaction quotation system. The Optionee agrees that, in which event unless the options and shares covered by the Plan have been registered pursuant to the Securities Act of 1933, as amended (the “Act”), the Company shallmay, at its election, require the Optionee to give a representation in writing in form and substance satisfactory to the Company to the effect that he is acquiring such shares for his own account for investment and not with a view to, or for sale in connection with, the distribution of such shares or any part thereof. If any law or regulation requires the Company to take any action with respect to the shares specified in such notice, the time for delivery thereof, which would otherwise be as soon promptly as reasonably practicable, shall be postponed for the period of time necessary to take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeaction.

Exercise of Option. In order to exercise the Option, the Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement)Company, of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the CompanyCompany within 15 business days, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange.

Exercise of Option. In order The Option may be exercised for all, or from time to exercise the Optiontime any part, of the Option Holder Shares for which it is then exercisable. The exercise date shall submit to be the date the Company an instrument in writing receives a written notice of exercise signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment(a) full payment for the Option Shares with respect to which the Option is exercised, in a manner acceptable to the Company (which which, at the discretion of the Company, shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercisedexercised and (b) payment by the Option Holder of all payroll, withholding or income taxes incurred in connection with the Option exercise (or arrangements for the collection or payment of such tax satisfactory to the Committee are made). Payment The purchase price for the Shares as to which the Option is exercised shall be paid to the Company in cash or full at the time of exercise at the election of the Option Holder (i) in cash, (ii) in Shares already owned having a Fair Market Value equal to the aggregate Option Price for the Shares being purchased and satisfying such other requirements as may be imposed by the Committee; provided, that, such Shares have been held by the Option Holder for no less than six months, (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open marketiii) and having a total Fair Market Value (as defined below) equal to the exercise price, or partly in a combination of cash and partly in such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by or (iv) through the Company, and delivery of irrevocable instructions to a share certificate dispatched broker to deliver promptly to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at aggregate Option Price for the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunderShares being purchased. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such the Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such the Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange.

Exercise of Option. In order to exercise the Option, the Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), payment of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company exercised in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open marketmonths) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the CompanyCompany within 15 business days, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange.

Exercise of Option. In order to exercise the Option, the The Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall may be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option exercised in whole or in part but by the Participant after the Vesting Date (or the date provided pursuant to Exhibit A) upon notice to the Company together with provision for payment of the provisions Xxxxx Xxxxx and applicable withholding taxes. Such notice shall be given in the manner prescribed by the Company and shall specify the date and method of this paragraphexercise and the number of shares being exercised. The Participant acknowledges that the laws of the country in which the Participant is working at the time of grant or exercise of the Option (including any rules or regulations governing securities, foreign exchange, tax, or labor matters) or Company accounting or other policies dictated by such country’s political or regulatory climate, may restrict or prohibit any one or more of the Companystock option exercise methods described in the Prospectus, that such restrictions may apply differently if the Participant is a resident or expatriate employee, and that such restrictions are subject to change at any time. The Committee may suspend the right to exercise the Option during any period for which (a) there is no registration statement under the Securities Act of 1933, as amended, in lieu effect with respect to the shares of delivering Common Stock issuable upon exercise of the Option, or (b) the Committee determines, in its sole discretion, that such suspension would be necessary or advisable in order to comply with the requirements of (i) any applicable federal securities law or rule or regulation thereunder; (ii) any rule of the New York Stock Exchange or other self-regulatory organization; or (iii) any other federal or state law or regulation (an “Option Exercise Suspension”). To the extent the vested and exercisable portion of the Option remains unexercised as of the close of business on the date the Option expires (the Expiration Date or such fractional share thereforearlier date that is the last date on which the Option may be exercised under the Option Rules of Exhibit A if the Participant’s employment with the Travelers Group has ended), shall pay a cash adjustment therefor that portion of the Option will be exercised without any action by the Participant in an amount equal to their accordance with Section 7.5 of the Plan if the Fair Market Value (or if any Shares are not publicly traded, an amount equal to of a share of Common Stock on that date is at least $0.01 greater than the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstandingXxxxx Xxxxx, the Company shall not be obligated to issue any exercise will result in Participant receiving at least one incremental share, and no Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, Exercise Suspension is then in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeeffect.

Exercise of Option. In order (a) Optionee may exercise only vested portions of this Option and only in the following manner. From time to exercise time prior to the earlier to occur of (i) the termination hereof in accordance with the provisions of this Option, or (ii) the Expiration Date (as set forth in Paragraph 5 herein) with respect to a given portion of this Option, the Option Holder shall submit Optionee may give written notice to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect his or her election to purchase some or all of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which this Option may be exercised at the time of such notice. Said notice shall specify the number of Option Shares to be purchased and shall be accompanied (i) by payment therefor in cash and (ii) by such agreement, statement or other evidence as the Company may require in order to satisfy itself that the issuance of the Option is Shares being exercisedpurchased pursuant to such exercise and any subsequent resale thereof will be in compliance with applicable laws and regulations, including without limitation all applicable federal and state securities laws and regulations. Payment to the Company in cash or Shares already owned by This Option shall not be exercisable for any fractional share. a Certificates for the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has so purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by to the CompanyOptionee upon compliance to the satisfaction of the Company with all requirements under applicable laws or regulations in connection with such issuance, including without limitation, if said Option Shares have not been registered under the Securities Act of 1933, as amended (the "Act"), receipt of a representation from the Optionee upon each exercise of this Option that the Optionee is purchasing the Option Shares for his or her own account and not with a view to any resale or distribution thereof, the legending of any certificate representing said Option Shares, and the imposition of a share certificate dispatched stop transfer order with respect thereto, to prevent a resale or distribution in violation of federal or state securities laws. Until the Option Holder within 30 days. The Company Optionee shall not be required to issue fractional Shares upon have complied with the exercise requirements hereof and of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstandingPlan, the Company shall be under no obligation to issue the Option Shares subject to this Option, and the determination of the MRC (as defined in the Plan) as to such compliance shall be final and binding on the Optionee. The Optionee shall not be obligated deemed for any purpose to issue be the owner of any Option Shares hereunder if the issuance of subject to this Option until such Option Shares would violate shall have been issued in accordance with the foregoing provisions. b Notwithstanding any other provision hereof or of the Plan, no portion of this Option shall be exercisable (i) after its termination in accordance with the provisions hereof, (ii) after the Expiration Date applicable thereto (as set forth in Paragraph 5 herein), or (iii) at any applicable lawtime unless all necessary regulatory or other approvals have been received. c To the extent that this Option is not exercised in full, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such will be deemed to have been exercised first for any remaining Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share Installment (as defined in Paragraph 5 herein) which would otherwise expire on the immediately preceding date (ornext succeeding Expiration Date, if then for any remaining Option Shares in the Shares were not traded on that day, the next preceding day that the Shares were traded) Installment which would otherwise expire on the principal exchange on second succeeding Expiration Date and so on, thereby reducing the number of Option Shares with respect to which the Shares are traded, as such prices are officially quoted this Option will expire on such exchangeExpiration Dates.

Exercise of Option. In order The Over-allotment Option granted pursuant to exercise Section 1(d) hereof may be exercised by the Option, Representative as to all (at any time) or any part (from time to time) of the Option Holder shall submit Shares and/or the Option Pre-Funded Warrants and/or the Option Purchase Warrants within 45 days after the Closing Date. The Underwriters will not be under any obligation to purchase any of such Option Shares and/or Option Pre-Funded Warrants and/or Option Purchase Warrants prior to the exercise of the Over-allotment Option. The Over-allotment Option granted hereby may be exercised by the giving of written notice to the Company an instrument in writing signed by from the Option HolderRepresentative, specifying setting forth the whole number of Option Shares and/or Option Pre-Funded Warrants and/or Option Purchase Warrants to be purchased and the date and time for delivery of and payment for such Option Shares and/or Option Pre-Funded Warrants and/or Option Purchase Warrants, which will not be earlier than two Business Days, in respect of which the event the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value Closing Date (as defined below) equal to does not occur on the exercise priceClosing Date, or in a combination later than three Business Days after the date of cash and the notice or such Shares, other time as shall be deemed acceptable agreed upon by the Company and the Representative, at the offices of the Representative or at such other place as shall be agreed upon by the Company and the Representative. If such delivery and payment for purposes hereof. all of the Option Shares and/or Option Pre-Funded Warrants and/or Option Purchase Warrants does not occur on the Closing Date, the date and time of the closing for such Option Shares and/or Option Pre-Funded Warrants and/or Option Purchase Warrants will be issued accordingly by as set forth in the Company, and a share certificate dispatched to notice (hereinafter the “Option Holder within 30 daysClosing Date”). The Company shall not be required to issue fractional Shares upon the Upon exercise of the Over-allotment Option, the Company will become obligated to convey to the Underwriters, and, subject to the terms and conditions set forth herein, the Underwriters will become obligated to purchase, the number of Option Shares and/or Option Pre-Funded Warrants and/or Option Purchase Warrants specified in such notice. If any Option Securities are to be purchased, each Underwriter agrees, severally and not jointly, to purchase the number of Option Securities (subject to such adjustments to eliminate fractional interest in a Share would be deliverable upon shares as the exercise of Representative may determine) that bears the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal same proportion to the book value per share at number of Firm Securities to be purchased as set forth on Schedule I opposite the end name of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything such Underwriter bears to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance total number of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeFirm Securities.

Exercise of Option. In order The Option may be exercised for all, or from time to exercise the Optiontime any part, of the Option Holder Shares for which it is then exercisable. The exercise date shall submit to be the date the Company an instrument in writing receives a written notice of exercise signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment(a) full payment for the Option Shares with respect to which the Option is exercised, in a manner acceptable to the Company (which which, at the discretion of the Company, shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercisedexercised and (b) payment by the Option Holder of all payroll, withholding or income taxes incurred in connection with the Option exercise (or arrangements for the collection or payment of such tax satisfactory to the Compensation Committee of the Board of Directors of the Company (or if there is no such committee, then the Board of Directors of the Company) (the "Committee") are made). Payment The purchase price for the Shares as to which the Option is exercised shall be paid to the Company in cash or Shares already owned by full at the time of exercise at the election of the Option Holder (provided that the Option Holder has owned such i) in cash, (ii) in Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise priceaggregate Option Price for the Shares being purchased and satisfying such other requirements as may be imposed by the Committee; provided, or that, such Shares have been held by the Option Holder for no less than six months, (iii) partly in a combination of cash and partly in such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by or (iv) through the Company, and delivery of irrevocable instructions to a share certificate dispatched broker to deliver promptly to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at aggregate Option Price for the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunderShares being purchased. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such the Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such the Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange.

Exercise of Option. (a) The Option may only be exercised by Parametric, in whole or in part, at any time or from time to time, after the Acquisition Agreement becomes terminable under circumstances which would entitle Parametric to a payment under Section 7.3(d) of the Acquisition Agreement upon its termination, regardless of whether the Acquisition Agreement is terminated pursuant to such provisions or whether an Alternative Transaction is consummated (any of the events specified in this sentence being referred to herein as an "Exercise Event"). Computervision shall notify Parametric promptly in writing of the occurrence of any Exercise Event, it being understood that the giving of such notice by Computervision shall not be a condition to the right of Parametric to exercise the Option. In order the event Parametric wishes to exercise the Option, the Option Holder Parametric shall submit deliver to the Company Computervision a written notice (an instrument in writing signed by the Option Holder, "Exercise Notice") specifying the whole total number of Option Shares it wishes to acquire. Each closing of a purchase of Option Shares (a "Closing") shall occur on a date and at a time designated by Parametric in respect an Exercise Notice delivered at least two business days prior to the date of such Closing, which Closing shall be held at the offices of counsel to Parametric. Upon the giving by Parametric to Computervision of the Exercise Notice and the tender of the applicable aggregate Exercise Price and provided that the conditions to Computervision's obligation to issue the Option is being exercisedShares to Parametric hereunder set forth in Section 3 have been satisfied or waived, accompanied by payment, in a manner acceptable Parametric shall be deemed to be the Company (which shall include a broker assisted exercise arrangement), holder of record of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided issuable upon such exercise, notwithstanding that the Option Holder has owned such Shares for a minimum period stock transfer book of six months Computervision shall then be closed or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of that certificates representing such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may shall not then be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeactually delivered to Parametric.

Exercise of Option. In order to exercise The option hereby granted shall be exercised by the Option, the Option Holder shall submit delivery to the Company an instrument in writing Treasurer of the Corporation or his delegate, from time to time, of written notice, signed by the Option HolderOptionee, specifying the whole number of Option Shares in respect of which shares the Option is being exercisedOptionee then desires to purchase, accompanied by paymenttogether with cash, in a manner acceptable certified check, bank draft or postal or express money order to the Company (which shall include a broker assisted exercise arrangement), order of the Option Price Corporation for an amount in United States dollars equal to the sum of: (a) the option price of such shares and (b) an amount sufficient to pay all state and federal withholding taxes (including, without limitation, FICA) with respect to the exercise (the total of (a) and (b) shall be referred to as the "Exercise Amount"). In the alternative, the Optionee may tender payment for the Option Shares for which option shares in the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period form of six months or has purchased such Shares on the open market) and shares of Timber Stock having a total Fair Market Value (as defined below) on the date of exercise equal to the exercise price, Exercise Amount or in a combination of cash (i) shares of Timber Stock and such Shares(ii) cash, certified check, bank draft or postal or express money order to the order of the Corporation in an amount in United States dollars equal to the difference between the Exercise Amount and the Fair Market Value of the tendered shares of Timber Stock on the date of exercise. If the written notice of exercise is mailed, the date of its receipt by the Treasurer of the Corporation or his delegate shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by considered the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the date of exercise of the Optionoption by the Optionee. If An exercise of stock options granted under this Agreement will generate compensation subject to federal and state tax withholding (including, without limitation, FICA withholding) in the calendar year of each exercise, and all such withholding taxes shall be the responsibility of the Optionee. The Committee may also authorize alternative procedures for exercising options under this Agreement. Within thirty (30) business days after any fractional interest in a Share would be deliverable upon the such exercise of the Option option in whole or in part but for by the provisions of this paragraphOptionee, the CompanyCorporation shall deliver to the Optionee a certificate or certificates representing the aggregate number of shares with respect to which such option shall be so exercised, registered in the Optionee's name. The Optionee shall not have the right, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end exercise of the most recent fiscal quarter) multiplied by option, to surrender the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstandingoption granted hereby, the Company shall not be obligated to issue or any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable lawportion thereof, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of laworder to receive shares covered by this option grant. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange7.

Exercise of Option. In order to exercise the Option, the The Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall may be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option exercised in whole or in part but by the Participant after the Vesting Date (or the date provided pursuant to Exhibit A) upon notice to the Company together with provision for payment of the provisions Xxxxx Xxxxx and applicable withholding taxes. Such notice shall be given in the manner prescribed by the Company and shall specify the date and method of this paragraphexercise and the number of shares being exercised. The Participant acknowledges that the laws of the country in which the Participant is working at the time of grant or exercise of the Option (including any rules or regulations governing securities, foreign exchange, tax, or labor matters) or Company accounting or other policies dictated by such country's political or regulatory climate, may restrict or prohibit any one or more of the Companystock option exercise methods described in the Prospectus, that such restrictions may apply differently if the Participant is a resident or expatriate employee, and that such restrictions are subject to change at any time. The Committee may suspend the right to exercise the Option during any period for which (a) there is no registration statement under the Securities Act of 1933, as amended, in lieu effect with respect to the shares of delivering Common Stock issuable upon exercise of the Option, or (b) the Committee determines, in its sole discretion, that such suspension would be necessary or advisable in order to comply with the requirements of (i) any applicable federal securities law or rule or regulation thereunder; (ii) any rule of the New York Stock Exchange or other self-regulatory organization; or (iii) any other federal or state law or regulation (an "Option Exercise Suspension"). To the extent the vested and exercisable portion of the Option remains unexercised as of the close of business on the date the Option expires (the Expiration Date or such fractional share thereforearlier date that is the last date on which the Option may be exercised under the Option Rules of Exhibit A if the Participant’s employment with the Travelers Group has ended), shall pay a cash adjustment therefor that portion of the Option will be exercised without any action by the Participant in an amount equal to their accordance with Section 7.5 of the Plan if the Fair Market Value (or if any Shares are not publicly traded, an amount equal to of a share of Common Stock on that date is at least $0.01 greater than the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstandingXxxxx Xxxxx, the Company shall not be obligated to issue any exercise will result in Participant receiving at least one incremental share, and no Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, Exercise Suspension is then in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeeffect.

Exercise of Option. In order (a) The Option may be exercised only by (i) the Optionee's completion, execution and delivery to the Company of a notice of exercise and, if required by the Company, an "investment letter" as supplied by the Company confirming the Optionee's representations and warranties in section 16 of this Agreement, including the representation that the Optionee is acquiring the Shares for investment only and not with a view to the resale or other distribution thereof, and (ii) the payment to the Company, pursuant to the terms of this Agreement, of an amount equal to the Purchase Price multiplied by the number of Shares being purchased as specified in the Optionee's notice of exercise. The Optionee's right to exercise the Option, the Option Holder shall submit be conditioned upon and subject to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by paymentsatisfaction, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement)Company, of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company any withholding liability under any state or federal law arising in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the connection with exercise of the Option. If any fractional interest in a Share would be deliverable upon the The Optionee must provide notice of exercise of the Option with respect to no fewer than 100 Shares (or any lesser number of Shares with respect to which the Option is vested and exercisable). The Optionee's notice of exercise shall be given in whole the manner specified in section 23, but any exercise of the Option shall be effective only when the items required by the preceding sentence are actually received by the Company. The notice of exercise and the "investment letter" may be in the form set forth in Exhibit A attached to this Agreement. Payment of the aggregate exercise price may be made in cash or by check payable to the order of the Company for an amount in part but U.S. dollars equal to the option price of such shares. Payment may also be made by delivery of shares of Stock held by the Optionee for the provisions of this paragraph, requisite period necessary to avoid a charge to the Company's earnings for financial reporting purposes, as determined by the Committee in lieu of delivering any such fractional share thereforits discretion, shall pay a cash adjustment therefor in and having an amount equal to their aggregate Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per amount of cash that would otherwise be required to pay the full option price, or by authorizing a third party to sell a portion of the shares acquired upon exercise of the Option and remit to the Company a sufficient portion of the sales proceeds to pay the full option price. Payment may also be made by combining the above methods. To the extent that shares are used in making full or partial payment of the option price, each such share will be valued at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean thereof as of the mean between date of exercise. Any overpayment will be promptly refunded, and any underpayment will be deemed an exercise of such lesser whole number of shares as the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeamount paid is sufficient to purchase.

Exercise of Option. In order Subject to exercise the Optionlimitations set forth herein and in the Plan, the this Option Holder shall submit may be exercised by notice provided to the Company an instrument as set forth in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), Section 5. The payment of the Option Exercise Price for the Option Shares for which Common Stock being purchased pursuant to the Option is being exercised. Payment shall be made (a) in cash, by check or cash equivalent, (b) by tender to the Company in cash Company, or Shares already attestation to the ownership, of Common Stock owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and Optionee having a total Fair Market Value (as defined belowdetermined by the Company without regard to any restrictions on transferability applicable to such Common Stock by reason of federal or state securities laws or agreements with an underwriter for the Company) equal not less than the Exercise Price, (c) by delivery of a properly executed notice together with irrevocable instructions to a broker providing for the assignment to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in proceeds of a Share would be deliverable sale or loan with respect to some or all of the shares being acquired upon the exercise of the Option in whole or in part but for (including, without limitation, through an exercise complying with the provisions of this paragraphRegulation T as promulgated from time to time by the Board of Governors of the Federal Reserve System), (d) by such other consideration as may be approved by the CompanyBoard from time to time to the extent permitted by applicable law, or (e) by any combination thereof. Such notice shall be accompanied by cash or Common Stock in lieu the full amount of delivering any all federal and state withholding or other employment taxes applicable to the taxable income of such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value Optionee resulting from such exercise (or if any instructions to satisfy such withholding obligation by withholding Option Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunderin accordance with Section 8). Anything Notwithstanding anything to the contrary herein notwithstandingcontained herein, the Optionee agrees that he will not exercise the Option granted pursuant hereto, and the Company shall will not be obligated to issue any Option Shares hereunder pursuant to this Option Agreement, if the exercise of the Option or the issuance of such Option Shares shares would violate constitute a violation by the Optionee or by the Company of any provision of any applicable lawlaw or regulation of any governmental authority or any stock exchange or transaction quotation system. The Optionee agrees that, in which event unless the options and shares covered by the Plan have been registered pursuant to the Securities Act of 1933, as amended, the Company shallmay, at its election, require the Optionee to give a representation in writing in form and substance satisfactory to the Company to the effect that he is acquiring such shares for his own account for investment and not with a view to, or for sale in connection with, the distribution of such shares or any part thereof. If any law or regulation requires the Company to take any action with respect to the shares specified in such notice, the time for delivery thereof, which would otherwise be as soon promptly as reasonably practicable, shall be postponed for the period of time necessary to take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeaction.

Exercise of Option. In order Subject to exercise the Optionlimitations set forth herein and in the Plan, the this Option Holder shall submit may be exercised by notice provided to the Company an instrument as set forth in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), Section 5. The payment of the Option Exercise Price for the Option Shares for which Common Stock being purchased pursuant to the Option is being exercised. Payment shall be made (a) in cash, by check or cash equivalent, (b) by tender to the Company in cash Company, or Shares already attestation to the ownership, of Common Stock owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and Optionee having a total Fair Market Value (as defined belowdetermined by the Company without regard to any restrictions on transferability applicable to such Common Stock by reason of federal or state securities laws or agreements with an underwriter for the Company) equal not less than the Exercise Price, (c) by delivery of a properly executed notice together with irrevocable instructions to a broker providing for the assignment to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in proceeds of a Share would be deliverable sale or loan with respect to some or all of the shares being acquired upon the exercise of the Option in whole or in part but for (including, without limitation, through an exercise complying with the provisions of this paragraphRegulation T as promulgated from time to time by the Board of Governors of the Federal Reserve System), (d) by such other consideration as may be approved by the CompanyBoard from time to time to the extent permitted by applicable law, or (e) by any combination thereof. Such notice shall be accompanied by cash or Common Stock in lieu the full amount of delivering any all federal and state withholding or other employment taxes applicable to the taxable income of such fractional share thereforParticipant resulting from such exercise (or instructions to satisfy such withholding obligation by withholding Option Shares in accordance with Section 8). For the purpose of determining the amount, if any, of the purchase price satisfied by payment in Common Stock, such Common Stock shall pay a cash adjustment therefor in an amount equal to their be valued at its Fair Market Value (on the date of exercise. If the Optionee desires to pay the purchase price for the Option Shares by tendering Common Stock using the method of attestation, the Optionee may, subject to any such conditions and in compliance with any such procedures as the Committee may adopt, do so by attesting to the ownership of Common Stock of the requisite value, in which case the Company shall issue or if any otherwise deliver to the Optionee upon such exercise a number of Option Shares are not publicly traded, an amount equal to the book value per share at result obtained by dividing (a) the end excess of the most recent fiscal quarter) multiplied by the fraction aggregate Fair Market Value of the fractional share total number shares of Common Stock subject to the Option for which would otherwise have been issued hereunderthe Option (or portion thereof) is being exercised over the purchase price payable in respect of such exercise by (b) the Fair Market Value per Option Share subject to the Option, and the Optionee may retain the shares of Common Stock the ownership of which is attested. Anything Notwithstanding anything to the contrary herein notwithstandingcontained herein, the Optionee agrees that he will not exercise the Option granted pursuant hereto, and the Company shall will not be obligated to issue any Option Shares hereunder pursuant to this Option Agreement, if the exercise of the Option or the issuance of such Option Shares shares would violate constitute a violation by the Optionee or by the Company of any provision of any applicable lawlaw or regulation of any governmental authority or any stock exchange or transaction quotation system. The Optionee agrees that, in which event unless the options and shares covered by the Plan have been registered pursuant to the Securities Act of 1933, as amended (the “Act”), the Company shallmay, at its election, require the Optionee to give a representation in writing in form and substance satisfactory to the Company to the effect that he is acquiring such shares for his own account for investment and not with a view to, or for sale in connection with, the distribution of such shares or any part thereof. If any law or regulation requires the Company to take any action with respect to the shares specified in such notice, the time for delivery thereof, which would otherwise be as soon promptly as reasonably practicable, shall be postponed for the period of time necessary to take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeaction.

Exercise of Option. In order The Option may be exercised by delivering to the Corporation at the office of the Corporate Secretary (a) a written notice, signed by the person entitled to exercise the Option, stating the designated number of Shares such person then elects to purchase; provided, however, that in the discretion of the Corporation, notice sent through an approved electronic means may be substituted for a signed, written notice, (b) payment in an amount equal to the full exercise price for the Shares to be purchased, and (c) if the Option Holder shall submit is exercised by any person other than the Employee, such as the Employee’s Beneficiary, evidence satisfactory to the Company an instrument Corporation that such person has the right to exercise the Option. Payment of the exercise price shall be made (i) in writing signed cash, (ii) in previously acquired shares of Common Stock of the Corporation, or (iii) in any combination of cash and such shares. In addition to the foregoing, subject to the consent of the Corporation at the time of exercise in a manner consistent with Plan, the Option may be exercised in a “net exercise”, pursuant to which the Corporation shall reduce the number of Shares issuable upon exercise of the Option by the Option Holder, specifying the largest whole number of Shares with an aggregate Fair Market Value that does not exceed such exercise price and shall accept a cash or other payment from the undersigned to the extent of any remaining balance of such exercise price not satisfied by such reduction in the number of whole Shares to be issued (provided, however, that Shares will no longer be outstanding under the Option to the extent of such reduction in the number of whole Shares to be issued that are used to pay such exercise price pursuant to such “net exercise”). Shares tendered in payment of the exercise price that have been acquired through an exercise of a stock option must have been held at least six (6) months prior to exercise of the Option and shall be valued at the Fair Market Value on the date of such exercise. Upon the exercise of the Option, the Corporation shall cause the Shares in respect of which the Option is being exercised, accompanied shall have been so exercised to be issued and delivered by payment, in crediting such Shares without restriction on transfer to a manner acceptable to book-entry account for the Company (which shall include a broker assisted exercise arrangement), benefit of the Option Price for Employee or his or her designee or the Option Employee’s Beneficiary maintained by the Corporation’s stock transfer agent or its designee, subject to applicable withholdings and satisfaction thereof (including, if the Corporation elects, through the Corporation retaining Shares for otherwise issuable or cash otherwise to be delivered) as provided in Section 13.2 of the Plan. The Employee does not have any rights as a shareholder in respect of any Shares as to which the Option is being exercised. Payment shall not have been duly exercised and no rights as a shareholder shall exist prior to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the proper exercise of the such Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange.

Exercise of Option. Subject to the terms and conditions of this Agreement, the Option may be exercised by written notice to the Company at its principal office which is now located at 777 Third Avenue, Thirtieth Floor, New York, New York 10017, Attenxxxx: Xxxxx Xxxxxxxxx Xxxxxxx. Xxxx xxxxxx xxxxx xxxxx xhe election to exercise the Option and the number of shares in respect of which it shall be exercised, and shall be signed by the person or persons so exercising the Option. In order the event that the Option shall be exercised pursuant to paragraph 7 hereof by any person or persons other than the Employee, such notice shall be accompanied by appropriate proof of the right of such person or persons to exercise the Option, the Option Holder shall submit to as may be reasonably required by the Company an instrument and its counsel. The notice of exercise shall be accompanied by payment of the full purchase price of the shares being purchased in writing signed by cash or cash equivalents. The certificate or certificates for the Option Holder, specifying the whole number of Option Shares in respect of shares as to which the Option is being exercised, accompanied by payment, shall have been so exercised shall be registered in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), name of the Option Price for person or persons so exercising the Option Shares for which and shall be delivered, as provided above, to or upon the written order of the person or persons exercising the Option is being exercised. Payment to as soon as practicable (except as otherwise provided below in this paragraph 9) after the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) due and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the proper exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise The holder of the Option in whole or in part but for the provisions shall not have any rights of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal stockholder with respect to the book value per share at the end of the most recent fiscal quarter) multiplied shares covered by the fraction of Option unless and until the fractional share which would otherwise certificate or certificates for such shares shall have been issued hereunderand delivered to him or her. Anything It is expressly understood that, notwithstanding anything contained in this Agreement to the contrary herein notwithstandingcontrary, (1) the time for the delivery of the certificate or certificates of Common Stock may be postponed by the Company for such period as may be required by the Company to comply with any listing requirements of any national securities exchange or to comply with any applicable State or Federal law, and (2) the Company shall not be obligated to sell, issue or deliver any Option Shares hereunder if shares as to which the issuance option or any part thereof shall have been exercised unless such shares are at that time effectively registered or exempt from registration under the Securities Act of such Option Shares would violate the provision of any applicable law, in which event the Company shall1933, as soon amended. All shares that shall be purchased upon the exercise of the Option as practicable, take whatever action it reasonably can so that such Option Shares may provided herein shall be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high fully paid and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangenon-assessable.

Exercise of Option. In order This option may be exercised by the person then entitled to do so as to any vested and exercisable Shares (a) by giving written notice of exercise the Option, the Option Holder shall submit to the Secretary of the Company an instrument in writing signed by the Option Holder(or his or her designee), specifying the whole number of Option full Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal subject to the exercise priceand (b) providing that all such exercised Shares necessary to cover the full cost of the transaction including the aggregate Exercise Price, brokerage fees, Securities and Exchange Commission charges or in a combination exchange fees, and all applicable taxes (including but not limited to income taxes, payroll taxes, transfer taxes, payment on account and social insurance contributions) required to be withheld under the laws of cash any country, state, province, city or other jurisdiction (collectively, the “Tax-Related Items”) shall be sold simultaneously with or immediately following the exercise, and such Sharesthe remaining Shares shall be delivered to the person exercising the option. Subject to compliance with applicable laws, this option shall be deemed acceptable to be exercised upon receipt by the Company of the appropriate written notice of exercise accompanied by the Exercise Price and the satisfaction of Tax-Related Items and other requirements or restrictions that may be imposed by the to comply with applicable laws or facilitate administration of the Plan. No partial exercise of this option may be for purposes hereofless than ten (10) Share lots or multiples thereof. Option Shares will be issued accordingly The Employee understands and agrees that, unless otherwise permitted by the Company, any cross-border cash remittance made to exercise this option or transfer proceeds received upon the sale of Shares must made through a locally-authorized financial institution or registered foreign exchange agency and a share certificate dispatched may require the Employee to provide to such entity certain information regarding the Option Holder within 30 daystransaction. Moreover, the Employee understands and agrees that the future value of the underlying Shares is unknown and cannot be predicted with certainty and may decrease in value, even below the Exercise Price. The Employee understands that neither the Company shall not be required to issue fractional Shares upon nor any Subsidiary or Affiliate is responsible for any foreign exchange fluctuation between local currency and the exercise United States Dollar or the selection by the Company or any Subsidiary or Affiliate in its sole discretion of an applicable foreign currency exchange rate that may affect the value of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value option (or if any Shares are not publicly traded, an amount equal to the book value per share at the end calculation of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeincome or Tax-Related Items thereunder).

Exercise of Option. In order The Option may be exercised by written notice to the Company or to such agent as the Company shall designate. The notice shall state the election to exercise the Option, the Option Holder number of Shares for which it is being exercised and shall submit to the Company an instrument in writing be signed by the person or persons so exercising the Option. The Option Holdermay not be exercised unless such exercise is in compliance, specifying to the whole number reasonable satisfaction of the Company with all applicable federal and state securities laws as in effect on the date of exercise. The Option may not be exercised as to fewer than 100 Shares in respect of unless it is exercised as to all Shares as to which the Option is being exercised, then exercisable. The exercise notice must be accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), payment of the Option Price for full exercise price of the Option Shares for which the Option is being exercised. Payment to , or evidence of satisfaction of one of the alternative payment methods set forth on Section 8, and the Company in cash shall deliver a certificate or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and certificates representing such Shares, or cause such Shares to be delivered electronically, as soon as practicable after the notice shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 daysreceived. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any may postpone such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if delivery until it receives satisfactory proof that the issuance of such Option Shares would will not violate any of the provision provisions of the Securities act of 1933, as amended, or the Exchange Act, any rules or regulations of the Securities and Exchange Commission (the “SEC”) promulgated thereunder, or the requirements of applicable lawstate law relating to authorization, in which event issuance or sale of securities, or until there has been compliance with the provisions of such acts or rules. The Optionee understands that the Company shallis under no obligation to register or qualify the Shares with the SEC, as soon as practicable, take whatever action it reasonably can any state securities commission or any stock exchange to effect such compliance. The certificate or certificates shall be registered in the name of the person or persons so that such exercising the Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that dayOption is exercised by the Optionee and the Optionee shall so request in the notice exercising the Option, shall be registered in the next preceding day that name of the Shares were traded) on Optionee and another person jointly, with right of survivorship). In the principal exchange on which event the Shares are tradedOption shall be exercised, as pursuant to Section 6 hereof, by any person or persons other than the Optionee, such prices are officially quoted on notice shall be accompanied by appropriate proof of the right of such exchangeperson or persons to exercise the Option.

Exercise of Option. In order The Option may be exercised by delivering to the Company at the office of Stock Plan Administration (a) a written notice, signed by the person entitled to exercise the Option, stating the designated number of Shares such person then elects to purchase; provided, however, that in the discretion of the Company, notice sent through an approved electronic means may be substituted for a signed, written notice, (b) payment in an amount equal to the full exercise price for the Shares to be purchased, and (c) if the Option Holder shall submit is exercised by any person other than the Employee, such as the Employee’s Beneficiary, evidence satisfactory to the Company an instrument that such person has the right to exercise the Option. Payment of the exercise price shall be made (x) in writing signed cash, (y) in previously acquired Shares, or (z) in any combination of cash and Shares. In addition to the foregoing, subject to the consent of the Company at the time of exercise in a manner consistent with Plan, the Option may be exercised in a “net exercise”, pursuant to which the Company shall reduce the number of Shares issuable upon exercise of the Option by the Option Holder, specifying the largest whole number of Shares with an aggregate Fair Market Value that does not exceed such exercise price and shall accept a cash or other payment from the undersigned to the extent of any remaining balance of such exercise price not satisfied by such reduction in the number of whole Shares to be issued (provided, however, that Shares will no longer be outstanding under the Option to the extent of such reduction in the number of whole Shares to be issued that are used to pay such exercise price pursuant to such “net exercise”). Shares tendered in payment of the exercise price that have been acquired through an exercise of a stock option must have been held at least six (6) months prior to exercise of the Option and shall be valued at the Fair Market Value on the date of such exercise. Upon the exercise of the Option, the Company shall cause the Shares in respect of which the Option is being exercisedshall have been so exercised to be issued and delivered by crediting such Shares without restriction on transfer to a book-entry account for the benefit of the Employee or the Employee’s Beneficiary maintained by the Company’s stock transfer agent or its designee, accompanied by paymentsubject to applicable withholdings and satisfaction thereof (including, in a manner acceptable to if the Company (which shall include a broker assisted exercise arrangement)elects, through the Company retaining Shares otherwise issuable or cash otherwise to be delivered) as provided in Section 13.2 of the Option Price for the Option Plan. The Employee does not have any rights as a shareholder in respect of any Shares for as to which the Option is being exercised. Payment shall not have been duly exercised and no rights as a shareholder shall exist prior to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the proper exercise of the such Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange.

Exercise of Option. In order Upon receipt of an Option Notice, the Operating Partnership shall have ninety (90) days from receipt of a Stabilization Notice and thirty (30) days from receipt of a User Sale Notice or a Liquidation Notice to send written notice to the Fund of its intention to exercise the Option, the Option Holder shall submit with respect to the Company an instrument ownership interests in writing signed any Property Entity owning a Property that is the subject to said notice (any such notice sent by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable Operating Partnership to the Company (which shall include Fund being referred to herein as a broker assisted exercise arrangement“Stabilization Option Exercise Notice”, a “User Sale Option Exercise Notice”, or a “Liquidation Option Exercise Notice”, as applicable and each, an “Option Exercise Notice”), a signed counterpart of the Purchase and Sale Agreement and a non-refundable xxxxxxx money deposit equal to five percent (5%) of the Option Price (the “Deposit’). The Fund shall deliver a signed counterpart of the Purchase and Sale Agreement to the Operating Partnership upon confirmation from the escrow agent identified in the Purchase and Sale Agreement that the Deposit has been received. The parties agree that if the Option Price is not known at the time of delivery of a Liquidation Option Exercise Notice, the purchase price set forth in the Purchase and Sale Agreement shall be the Operating Partnership’s reasonable estimate of the fair market value of the applicable Property and the Deposit shall be five percent (5%) of said estimated fair market value, provided that once the Appraisals for the Option Shares for which applicable Properties are received, the Option is being exercised. Payment parties shall promptly enter into an amendment to the Company in cash or Shares already owned by Purchase and Sale Agreement that changes the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal purchase price to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book fair market value per share at the end of the most recent fiscal quarter) multiplied by Properties as set forth in the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeAppraisals.

Exercise of Option. In order Subject to exercise the Optionlimitations set forth herein and in the Plan, the this Option Holder shall submit may be exercised by written notice provided to the Company an instrument as set forth in writing signed by Section 5. Such written notice shall (a) state the Option Holder, specifying the whole number of Option Shares in shares of Common Stock with respect of to which the Option is being exercised, (b) be accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder shares of Common Stock (provided that the Option Holder has owned such Shares for a minimum period of six months not subject to limitations on transfer) or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and Common Stock payable to Pride International, Inc. in the full amount of the purchase price for any shares of Common Stock being acquired and (c) be accompanied by cash or Common Stock in the full amount of all federal and state withholding or other employment taxes applicable to the taxable income of such SharesParticipant resulting from such exercise (or instructions to satisfy such withholding obligation by withholding Option Shares in accordance with Section 8); provided, however, that any shares of Common Stock delivered in payment of the option price that are or were the subject of an award under the Plan must be shares that the Optionee has owned for a period of at least six months prior to the date of exercise. For the purpose of determining the amount, if any, of the purchase price satisfied by payment in Common Stock, such Common Stock shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their valued at its Fair Market Value (or if any Shares are not publicly traded, an amount equal to on the book value per share at the end date of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunderexercise. Anything Notwithstanding anything to the contrary herein notwithstandingcontained herein, the Optionee agrees that he will not exercise the option granted pursuant hereto, and the Company shall will not be obligated to issue any option shares pursuant to this Option Shares hereunder Agreement, if the exercise of the Option or the issuance of such Option Shares shares would violate constitute a violation by the Optionee or by the Company of any provision of any applicable lawlaw or regulation of any governmental authority or any stock exchange or transaction quotation system. The Optionee agrees that, in which event unless the options and shares covered by the Plan have been registered pursuant to the Securities Act of 1933, as amended (the "Act"), the Company shallmay, as soon as practicableat its election, require the Optionee to give a representation in writing in form and substance satisfactory to the Company to the effect that he is acquiring such shares for his own account for investment and not with a view to, or for sale in connection with, the distribution of such shares or any part thereof. If any law or regulation requires the Company to take whatever any action it reasonably can so that such Option Shares may be issued without resulting with respect to the shares specified in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that daynotice, the next preceding day that time for delivery thereof, which would otherwise be as promptly as possible, shall be postponed for the Shares were traded) on the principal exchange on which the Shares are traded, as period of time necessary to take such prices are officially quoted on such exchangeaction.

Exercise of Option. In order Resources may exercise the Option by giving written notice thereof to Regco during the Option Period. Subject to compliance with Section 3.3, and to satisfaction of the Regulatory Conditions to Exercise, delivery of and payment for the Shares (assuming the Option has been so exercised) shall be made at 10:00 A.M., Houston time, on the later of (a) the third business day following the giving of such notice (or such other date as the parties agree) and (b) the first business day following the satisfaction of the Regulatory Conditions to Exercise (satisfaction of which shall be a condition precedent to such delivery and payment) (which date shall be the "Option Closing Date"), provided that if the amount of any Control Premium Amount included in the exercise price has not been determined by Final Order of the PUCT prior to the date for delivery and payment so determined, the payment made on the date so determined shall exclude any Control Premium Amount and such Control Premium Amount shall be paid in immediately available funds no later than 5 business days after the PUCT issues a Final Order determining market value under Section 39.262(h)(3) of the Utilities Code. Delivery of the Shares shall be made to Resources against payment by Resources of the purchase price by wire transfer payable in same-day funds to the account specified by Regco. Delivery of the Shares shall be made by delivery to Resources of stock certificates representing the Shares, accompanied by appropriate stock powers or other instruments in proper form to effect such transfer. If Resources determines prior to the Option Period and within one year prior to the anticipated Option Closing Date that it intends in good faith, subject to economic conditions and other reasonable assumptions identified at such time, to exercise the Option, it and Regco shall make all appropriate regulatory filings, including filings under the Option Holder shall submit Hart-Xxxxx-Xxxxxx Xxxitrust Improvements Act ("H-S-R") and the Nuclear Regulatory Commission, with a view to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), obtaining required approvals or expiration or termination of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum applicable waiting period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched prior to the Option Holder within 30 daysExercise Date. The Company Regco and Resources shall not use commercially reasonable efforts to cause all other Regulatory Conditions to Exercise to be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of satisfied as promptly as practicable after the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeExercise Date.

Exercise of Option. In order to exercise the OptionWhile this Option remains exercisable, the Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in Optionee may exercise a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), vested portion of the Option by delivering to the Corporation or its designee in the form and at the location specified by the Corporation, notice stating the Optionee's intent to exercise a specified number of shares subject to the Option and payment of the full Exercise Price for the Option Shares specified number of shares. The payment for which the Option is being exercised. Payment full Exercise Price for the shares exercised must be made in (i) cash, (ii) by certified check or bank draft payable in U.S. dollars ($US) to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise order of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option Corporation, (iii) in whole or in part but for in Common Stock of the provisions of this paragraphCorporation owned by the Optionee, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their valued at Fair Market Value or (or iv) if any Shares are not publicly traded, an amount equal available to the book value per share at Optionee, by "cashless exercise", by the end Optionee delivering to his/her securities broker instructions to sell a sufficient number of shares of Common Stock to cover the Exercise Price, applicable tax obligations and the brokerage fees and expenses associated therewith. Shares of Common Stock of the most recent fiscal quarter) multiplied Corporation used for payment, in whole or part, of the Exercise Price must have been owned by the fraction Optionee, free and clear of all liens or encumbrances for a period of at least six (6) months prior to the exercise date. In addition, the Committee may impose such other or different requirements as it may deem necessary to avoid charges to earnings of the fractional share Corporation. The exercise date for the Optionee's exercise of all or a specified portion of the Option pursuant to this Section III will be deemed to be the date on which would otherwise have been issued hereunderthe Corporation receives the irrevocable commitment from the Optionee to exercise the Option Shares in the form of notice of exercise specified by the Corporation, subject to Optionee's payment in full of the Option Shares to be exercised. Anything Notice of exercise of all portions of the Option being exercised along with payment in full of the Exercise Price for such portion must be received by the Corporation or its designee on or prior to the contrary herein notwithstandinglast day of the Option term, as set forth in Section II above, except as provided in Section IV below. Upon the Corporation's determination that there has been a valid exercise of the Option, the Company Corporation shall issue certificates in accordance with the terms of this Agreement, or cause the Corporation's transfer agent to make the necessary book entries, for the shares subject to the exercised portion of the Option. However, the Corporation shall not be obligated liable to issue the Optionee, the Optionee's personal representative, or the Optionee's successor(s)-in-interest for damages relating to any Option Shares hereunder if delays in issuing the certificates or in making book entries, any loss of the certificates, or any mistakes or errors in the issuance of such Option Shares would violate the provision of any applicable lawcertificates or in making book entries, or in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangecertificates themselves.

Exercise of Option. In order The Option shall be exercised by written notice directed to the Secretary of the Company at the principal executive offices of the Company, in substantially the form attached hereto as Exhibit A, or such other form as the Committee may hereafter approve and require. Unless the exercise is a broker-assisted "cashless exercise" as described below, such written notice shall be accompanied by full payment in cash, shares of Stock previously acquired by the OptionOptionee, or any combination thereof, for the number of shares specified in such written notice; provided, however, that if shares of Stock are used to pay the exercise price, such shares must have been held by the Optionee for at least six months. The Fair Market Value of the surrendered Stock as of the last trading day immediately prior to the exercise date shall be used in valuing Stock used in payment of the exercise price. To the extent permitted under Regulation T of the Federal Reserve Board, and subject to applicable securities laws, the Option Holder shall submit to may be exercised through a broker in a so-called "cashless exercise" whereby the Company an instrument in writing signed by broker sells the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment shares and delivers cash sales proceeds to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period payment of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price. In such case, or in a combination the date of cash and such Shares, exercise shall be deemed acceptable for purposes hereofto be the date on which notice of exercise is received by the Company and the exercise price shall be delivered to the Company on the settlement date. Subject to the terms of this Option Shares will Agreement, the Option may be issued accordingly exercised at any time, or from time to time in part, and without regard to any other option held by the Optionee to purchase stock of the Company, and a share certificate dispatched as to any Option Shares then vested under Paragraph 2. If this Option Agreement covers more than 1,000 shares of Stock, Optionee may exercise this Option for the Option Holder within 30 days. The Company shall not be required purchase of more than 1,000 shares of Stock, either in whole or from time to issue fractional Shares upon time in part during the course of any calendar year, only if the Optionee designates the exercise of this Option for the Option. If any fractional interest in a Share would be deliverable upon purchase of such number of shares of Stock as may exceed the number 1,000, or such larger number as may then qualify under the Code for Incentive Stock Option treatment (the "ISO Maximum") as the Optionee's exercise of the a Non-Qualified Stock Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal as to the book value per share at the end shares of the most recent fiscal quarter) multiplied Stock in excess of such ISO Maximum so acquired by the fraction of the fractional share which would otherwise have been issued hereunder. Anything Optionee pursuant to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangethis Option.

Exercise of Option. In order to exercise the Option, the Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange.

Exercise of Option. In order to exercise the OptionThe Indiana Option may be exercised by SIGCORP, the Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for part, at any time or from time to time after the provisions Merger Agreement becomes terminable by SIGCORP under circumstances which could entitle SIGCORP to termination fees under either Section 9.3(a) of this paragraphthe Merger Agreement or Section 9.3(b) of the Merger Agreement, provided that the Companyevents specified in Section 9.3(b)(ii) of the Merger Agreement shall have occurred (regardless of whether the Merger Agreement is actually terminated or whether there occurs a closing of any Business Combination involving an Indiana Target Party or a closing by which an Indiana Target Party becomes a subsidiary), in lieu of delivering any such fractional share therefor, event by which the Merger Agreement becomes so terminable by SIGCORP being referred to herein as a "Trigger Event." Indiana shall pay a cash adjustment therefor notify SIGCORP promptly in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end writing of the most recent fiscal quarter) multiplied occurrence of any Trigger Event, it being understood that the giving of such notice by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company Indiana shall not be obligated a condition to issue any Option the right of SIGCORP to exercise the Indiana Option. In the event SIGCORP wishes to exercise the Indiana Option, SIGCORP shall deliver to Indiana a written notice (an "Exercise Notice") specifying the total number of Indiana Shares hereunder if it wishes to purchase. If at the time of issuance of any Indiana Shares pursuant to an exercise of all or part of the Indiana Option hereunder, Indiana shall not have redeemed the Indiana Rights, or shall have issued any similar securities, then each Indiana Share issued pursuant to such exercise shall also represent Indiana Rights or new rights with terms substantially the same as and at least as favorable to SIGCORP as are provided under the Indiana Rights Agreement or any similar agreement then in effect. Each closing of a purchase of Indiana Shares (a "Closing") shall occur at a place, on a date and at a time designated by SIGCORP in an Exercise Notice delivered at least two business days prior to the date of the Closing. The Indiana Option Shares would violate shall terminate upon the provision earlier of: (i) the Effective Time; (ii) the termination of the Merger Agreement pursuant to Section 9.1 thereof (other than upon or during the continuance of a Trigger Event); or (iii) 180 days following any termination of the Merger Agreement upon or during the continuance of a Trigger Event (or if, at the expiration of such 180 day period the Indiana Option cannot be exercised by reason of any applicable lawjudgment, decree, order, law or regulation, ten business days after such impediment to exercise shall have been removed or shall have become final and not subject to appeal, but in which no event under this clause (iii) later than the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations third anniversary of lawthe date hereof). For purposes hereof, Fair Market Value shall mean Notwithstanding the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that dayforegoing, the next preceding day Indiana Option may not be exercised if SIGCORP is in material breach of any of its material representations or warranties, or in material breach of any of its covenants or agreements, contained in this Agreement or in the Merger Agreement. Upon the giving by SIGCORP to Indiana of the Exercise Notice and the tender of the applicable aggregate Exercise Price, SIGCORP shall be deemed to be the holder of record of the Indiana Shares issuable upon such exercise, notwithstanding that the stock transfer books of Indiana shall then be closed or that certificates representing such Indiana Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeshall not then be actually delivered to SIGCORP.

Exercise of Option. (a) In order to exercise this Option, Option Holder shall take all of the following actions: (i) delivering or mailing to the Company, Attention: Corporate Secretary, a notice of exercise, in the form specified by the Company, specifying therein the number of shares of Common Stock he has elected to purchase, accompanied by (A) payment in cash or by check payable to the order of the Company for the Exercise Price multiplied by the number of shares to be purchased; (B) if required, the letter described in Paragraph 6; (ii) making appropriate arrangements with the Company for the satisfaction of the withholding requirements set forth in Paragraph 8 hereof; and (iii) executing and delivering to the Company the Acknowledgment and Statement of Decision Regarding Election Pursuant to Section 83(b) and a copy of the executed Election Pursuant to Section 83(b), if applicable, in accordance with Section 5 of the Optionee Restriction Agreement attached hereto as Exhibit “A” and being executed concurrently herewith. Notwithstanding the foregoing, the aggregate purchase price to be paid upon any exercise of this Option may, if permissible under applicable state law and in the discretion of the Board of Directors of the Company (the “Board”), be paid (1) in installments or in whole or in part by a promissory note of the Option Holder (in a form reasonably satisfactory to the Company) and secured by a security interest in the shares issued upon such exercise (provided, however, that an amount equal to the par value of the Common Stock multiplied by the number of shares being issued upon exercise shall be paid in cash) and/or (2) in whole or in part by delivery to the Company of shares of Common Stock previously acquired by the Option Holder having a Fair Market Value (determined as of the date of exercise of this Option and in the manner set forth in the Plan) equal to the portion of the aggregate purchase price being paid by delivery of such shares and, in the case of (1) or (2), if and to the extent applicable, cash or a check (or, in the case of (2) only, a note) made payable to the Company for any remaining portion of the aggregate purchase price. If so requested by the Board, prior to the acceptance of shares of Common Stock in satisfaction (in whole or in part) of the purchase price upon such exercise of this Option, the Option Holder shall submit to supply the Company an instrument in writing signed by the Option HolderBoard with written representations and warranties, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in including without limitation a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided representation and warranty that the Option Holder has owned good and marketable title to such Shares for a minimum period shares, free and clear of six months or has purchased such Shares on the open market) liens and having a total Fair Market Value (as defined below) equal to the encumbrances. The exercise price, or in a combination of cash and such Shares, this Option shall not be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, effective unless and a share certificate dispatched to until the Option Holder within 30 dayshas complied with all of the provisions of this Paragraph 2(a). The No partial exercise of this Option may be for less than «MIN_EXERCISE_AMOUNT_5» shares and, in no event, shall the Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeshares.

Exercise of Option. In order Subject to exercise the Optionlimitations set forth herein and in the Plan, the this Option Holder shall submit may be exercised by written notice provided to the Company an instrument as set forth in writing signed by Section 5. Such written notice shall (a) state the Option Holder, specifying the whole number of Option Shares in shares of Common Stock with respect of to which the Option is being exercised, (b) be accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder shares of Common Stock (provided that the Option Holder has owned such Shares for a minimum period of six months not subject to limitations on transfer) or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and Common Stock payable to Dxxxxx Geophysical Company in the full amount of the purchase price for any shares of Common Stock being acquired and (c) be accompanied by cash or Common Stock in the full amount of all federal and state withholding or other employment taxes applicable to the taxable income of such SharesParticipant resulting from such exercise (or instructions to satisfy such withholding obligation by withholding Option Shares in accordance with Section 8); provided, however, that any shares of Common Stock delivered in payment of the option price that are or were the subject of an award under the Plan must be shares that the Participant has owned for a period of at least six months prior to the date of exercise. For the purpose of determining the amount, if any, of the purchase price satisfied by payment in Common Stock, such Common Stock shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by valued at its Fair Market Value on the Company, and a share certificate dispatched to the Option Holder within 30 daysdate of exercise. The Company shall not be required to issue fractional Shares upon Committee may, in its sole discretion, arrange for the exercise of the Optionthis Option through a broker-assisted cashless exercise program. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything Notwithstanding anything to the contrary herein notwithstandingcontained herein, the Participant agrees that he will not exercise the option granted pursuant hereto, and the Company shall will not be obligated to issue any option shares pursuant to this Option Shares hereunder Agreement, if the exercise of the Option or the issuance of such Option Shares shares would violate constitute a violation by the Participant or by the Company of any provision of any applicable lawlaw or regulation of any governmental authority or any stock exchange or transaction quotation system. The Participant agrees that, in which event unless the options and shares covered by the Plan have been registered pursuant to the Securities Act of 1933, as amended (the “Act”), the Company shallmay, as soon as practicableat its election, require the Participant to give a representation in writing in form and substance satisfactory to the Company to the effect that he is acquiring such shares for his own account for investment and not with a view to, or for sale in connection with, the distribution of such shares or any part thereof. If any law or regulation requires the Company to take whatever any action it reasonably can so that such Option Shares may be issued without resulting with respect to the shares specified in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that daynotice, the next preceding day that time for delivery thereof, which would otherwise be as promptly as possible, shall be postponed for the Shares were traded) on the principal exchange on which the Shares are traded, as period of time necessary to take such prices are officially quoted on such exchangeaction.

Exercise of Option. In order The Optionee, from time to time during the period when the Option hereby granted may by its terms be exercised, may exercise the Option, the Option Holder shall submit by delivering to the Company an instrument in writing a written notice signed by the Option Holder, specifying Optionee stating the whole number of Option Shares in respect shares that the Optionee has elected to purchase and the manner of which the Option is being exercised, payment for such shares. The notice shall be accompanied by paymentpayment in full by (a) cash or check, in or, (b) delivery of shares of Common Shares, duly endorsed for transfer (or with duly executed stock powers attached), (c) if there shall be a manner acceptable public market for the Common Shares at such time, subject to such rules as may be established by the Company (which shall include Committee, through delivery of irrevocable instructions to a broker assisted exercise arrangement), to sell a number of the Option Price for the Option Common Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be otherwise deliverable upon the exercise of the Option in whole or in part but for and to deliver promptly to the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, Company an amount equal to the book value per share at the end exercise price or (d) any combination of the most recent fiscal quarter) multiplied foregoing, for an amount equal to the purchase price of the shares then to be purchased (including any withholding taxes as determined by the fraction Committee). Common Shares surrendered as payment for shares purchased pursuant to the exercise of this Option will be valued, for such purposes, at fair market value (as determined by the Committee) on the date of such Option exercise. As soon as practicable after receipt of the fractional share which would otherwise have been issued hereunderforegoing, the Company shall issue the shares in the name of the Optionee and deliver the certificates therefor to the Optionee. Anything to the contrary herein notwithstanding, the Company’s obligation to sell and deliver Common Shares under this Option is subject to such compliance with Federal and state laws, rules and regulations applying to the authorization, issuance or sale of securities as the Company deems necessary or advisable. The Company shall not be obligated required to issue sell and deliver stock pursuant hereto unless and until it receives satisfactory proof that the provisions of the Securities Act of 1933 or the Securities Exchange Act of 1934 or the rules and regulations of the Securities and Exchange Commission promulgated thereunder or the provisions of any Option Shares hereunder if state law governing the issuance sale of securities, or that there has been compliance with the provisions of such Option Shares would violate the provision of any applicable lawacts, in which event the Company shallrules, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high regulations and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangestate laws.

Exercise of Option. The Chartwell Option may be exercised by Trenwick, in whole or in part, at any time or from time to time after the Merger Agreement becomes terminable by Trenwick under circumstances which would or could entitle Trenwick to receive the Termination Fee pursuant to Section 5.14(b) of the Merger Agreement (a "Trigger Event") (regardless of whether the Merger Agreement is actually terminated or whether there occurs a closing involving Chartwell); provided, that a Trigger Event shall not occur in the circumstances contemplated by Section 5.14(b)(z) of the Merger Agreement unless and until a Termination Fee shall be payable pursuant to Section 5.14(b)(z) of the Merger Agreement. In order the event Trenwick wishes to exercise the Chartwell Option, the Option Holder Trenwick shall submit deliver to the Company Chartwell a written notice (an instrument in writing signed by the Option Holder, "Exercise Notice") specifying the whole total number of Option Shares in respect it wishes to purchase. Each closing of which the a purchase of Option is being exercisedShares (an "Option Closing") shall occur, accompanied by payment, in a manner acceptable but subject to the Company (which shall include satisfaction or waiver of the conditions set forth in Section 3 hereof, at a broker assisted exercise arrangement)place, on a date and at a time designated by Trenwick in an Exercise Notice delivered at least two business days prior to the date of the Option Price for Closing. The Chartwell Option shall terminate upon the earlier of: (i) the Effective Time; (ii) the termination of the Merger Agreement other than under circumstances which also constitute a Trigger Event; or (iii) the 180th day following a Trigger Event (or if, at the expiration of such 180 day period the Chartwell Option cannot be exercised by reason of any applicable judgment, decree, order, law or regulation, 10 business days after such impediment to exercise shall have been removed or shall have become final and not subject to appeal, but in no event under this clause (iii) later than the 365th day following such Trigger Event). Notwithstanding the foregoing, the Chartwell Option may not be exercised if Trenwick is in material breach of any of its representations or warranties, or in material breach of any of its covenants or agreements, contained in this Agreement or in the Merger Agreement. Upon the giving by Trenwick to Chartwell of the Exercise Notice and the tender of the applicable aggregate Exercise Price, but subject to the satisfaction or waiver of the conditions set forth in Section 3 hereof, Trenwick shall be deemed to be the holder of record of the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided issuable upon such exercise, notwithstanding that the Option Holder has owned such Shares for a minimum period stock transfer books of six months Chartwell shall then be closed or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of that certificates representing such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may shall not then be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeactually delivered to Trenwick.

Exercise of Option. In order Subject to exercise the Optionlimitations set forth herein and in the Plan, the this Option Holder shall submit may be exercised by written notice provided to the Company an instrument as set forth in writing signed by Section 5. Such written notice shall (a) state the Option Holder, specifying the whole number of Option Shares in shares of Common Stock with respect of to which the Option is being exercised, (b) be accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder shares of Common Stock (provided that the Option Holder has owned such Shares for a minimum period of six months not subject to limitations on transfer) or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and Common Stock payable to Pride International, Inc. in the full amount of the purchase price for any shares of Common Stock being acquired and (c) be accompanied by cash or Common Stock in the full amount of all federal and state withholding or other employment taxes applicable to the taxable income of such SharesOptionee resulting from such exercise (or instructions to satisfy such withholding obligation by withholding Option Shares in accordance with Section 8); provided, however, that any shares of Common Stock delivered in payment of the option price that are or were the subject of an award under the Plan must be shares that the Optionee has owned for a period of at least six months prior to the date of exercise. For the purpose of determining the amount, if any, of the purchase price satisfied by payment in Common Stock, such Common Stock shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their valued at its Fair Market Value (or if any Shares are not publicly traded, an amount equal to on the book value per share at the end date of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunderexercise. Anything Notwithstanding anything to the contrary herein notwithstandingcontained herein, the Optionee agrees that he will not exercise the option granted pursuant hereto, and the Company shall will not be obligated to issue any option shares pursuant to this Option Shares hereunder Agreement, if the exercise of the Option or the issuance of such Option Shares shares would violate constitute a violation by the Optionee or by the Company of any provision of any applicable lawlaw or regulation of any governmental authority or any stock exchange or transaction quotation system. The Optionee agrees that, in which event unless the options and shares covered by the Plan have been registered pursuant to the Securities Act of 1933, as amended (the “Act”), the Company shallmay, as soon as practicableat its election, require the Optionee to give a representation in writing in form and substance satisfactory to the Company to the effect that he is acquiring such shares for his own account for investment and not with a view to, or for sale in connection with, the distribution of such shares or any part thereof. If any law or regulation requires the Company to take whatever any action it reasonably can so that such Option Shares may be issued without resulting with respect to the shares specified in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that daynotice, the next preceding day that time for delivery thereof, which would otherwise be as promptly as possible, shall be postponed for the Shares were traded) on the principal exchange on which the Shares are traded, as period of time necessary to take such prices are officially quoted on such exchangeaction.

Exercise of Option. In order Unless terminated pursuant to exercise the OptionSection 7 hereof, the Option Holder shall submit may be exercised as to not more than the Company an instrument Annual Option Vesting Amount of the aggregate number of Common Shares originally subject thereto commencing on the first Annual Vesting Date following the date of grant. Thereafter, on each Annual Vesting Date and until the expiration of the term of this Agreement (unless earlier terminated or canceled as provided in writing signed by this Agreement), the Option Holder, specifying may be exercised for an additional Annual Option Vesting Amount. To the whole number extent that Schedule A provides for amounts or schedules of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided vesting that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for conflict with the provisions of this paragraph, the Company, in lieu provisions of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal Schedule A will govern. The right to their Fair Market Value (or if any purchase Common Shares are not publicly traded, an amount equal pursuant to the book value per share Option shall be cumulative. If the full number of Common Shares available for purchase under the Option, to the extent the Option is vested, has not been purchased, the balance may be purchased at any time or from time to time thereafter, but prior to the termination of such Option. The Option shall not, however, be exercisable after the expiration thereof; and except as provided in Section 7 hereof, the Option shall not be exercisable unless the Employee is an employee of the Company at the end time of exercise. The holder of the most recent fiscal quarter) multiplied by Option shall not have any rights to dividends or any other rights of a shareholder with respect to the fraction of Common Shares subject to the fractional share which would otherwise Option until such Common Shares shall have been issued hereunderto him (as evidenced by the appropriate entry on the books of a duly authorized transfer agent of the Company), upon the purchase of such Common Shares through exercise of the Option. Anything Notwithstanding the foregoing or anything to the contrary herein notwithstandingset forth herein, upon the occurrence of a Change in Control of the Company, the Company Option shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, become vested and immediately exercisable in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of lawfull. For purposes hereofof this Agreement, Fair Market Value shall mean a “Change in Control” of the mean between Company means the high and low selling prices per Share on occurrence of one of the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange.following events:

Exercise of Option. In order The Over-allotment Option granted pursuant to exercise the Option, the Option Holder shall submit to the Company an instrument in writing signed Section 1.2.1 hereof may be exercised by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable Representative as to the Company all (which shall include a broker assisted exercise arrangement), at any time) or any part (from time to time) of the Option Price for Additional Securities within 45 days after the Option Shares for which the Option is being exercisedEffective Date. Payment The purchase price to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) be paid per Additional Share shall be equal to the exercise price, or price per Firm Share set forth in a combination of cash and such Shares, Section 1.1.1(ii) hereof. The purchase price to be paid per Additional Warrant shall be deemed acceptable for purposes equal to the price per Firm Warrant set forth in Section 1.1.1(ii) hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company Underwriters shall not be required under any obligation to issue fractional Shares upon purchase any Additional Securities prior to the exercise of the Over-allotment Option. The Over-allotment Option granted hereby may be exercised by the giving of oral notice to the Company from the Representative, which must be confirmed in writing by overnight mail or facsimile or other electronic transmission setting forth the number of Additional Securities to be purchased and the date and time for delivery of and payment for the Additional Securities (the “Option Closing Date”), which such Option Closing Date shall not be later than five (5) full Business Days after the date of the notice or such other time as shall be agreed upon by the Company and the Representative, at the offices of Representative Counsel or at such other place (including remotely by facsimile or other electronic transmission) as shall be agreed upon by the Company and the Representative. If any fractional interest such delivery and payment for the Additional Securities does not occur on the Closing Date, the Option Closing Date will be as set forth in a Share would be deliverable upon the notice. Upon exercise of the Over-allotment Option in whole with respect to all or in part but for any portion of the provisions of this paragraphAdditional Securities, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal subject to the book value per share at the end of the most recent fiscal quarterterms and conditions set forth herein, (i) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be become obligated to issue any Option Shares hereunder if sell to the issuance Underwriters the number of Additional Securities specified in such notice and (ii) each of the Underwriters, acting severally and not jointly, shall purchase that portion of the total number of Additional Securities then being purchased that the number of Firm Securities as set forth in Schedule 1 opposite the name of such Option Shares would violate Underwriter bears to the provision total number of any applicable lawFirm Securities, subject, in which event each case, to such adjustments as the Company shallRepresentative, as soon as practicablein its sole discretion, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangedetermine.

Exercise of Option. In order On and after the Grant Date, to exercise the Optionextent not previously exercised, and subject to termination or acceleration as provided in these Standard Terms and Conditions, the Option Holder shall submit be exercisable only to the extent it becomes vested, as described in the Award Agreement or the terms of the Plan, to purchase up to that number of shares of Common Stock as set forth in the Award Agreement, provided that (except as set forth in Section 4.A below) the Participant remains employed with the Company and does not experience a Termination of Service. The vesting period and/or exercisability of an Option may be adjusted by the Board to reflect the decreased level of employment during any period in which the Participant is on an approved leave of absence or is employed on a less than full time basis. The Option shall become fully vested upon a Change in Control under the terms in Section 14 of the Plan. To exercise the Option (or any part thereof), the Participant shall deliver to the Company an instrument a “Notice of Exercise” in writing signed a form specified by the Option HolderBoard, specifying the whole number of Option Shares whole shares of Common Stock the Participant wishes to purchase and how the Participant’s shares of Common Stock should be registered (in respect the Participant’s name only or in the Participant’s and the Participant’s spouse’s names as community property or as joint tenants with right of which survivorship). The exercise price (the “Exercise Price”) of the Option is being exercised, accompanied by payment, set forth in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 daysAward Agreement. The Company shall not be required obligated to issue fractional Shares any shares of Common Stock until the Participant shall have paid the total Exercise Price for that number of shares of Common Stock. The Exercise Price may be paid in Common Stock, cash or a combination thereof, including an irrevocable commitment by a broker to pay over such amount from a sale of the Common Stock issuable under the Option, the delivery of previously owned Common Stock, withholding of shares of Common Stock deliverable upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole , or in part but for the provisions of this paragraphanother manner, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied all as may be permitted by the fraction Board. Fractional shares may not be exercised. Shares of Common Stock will be issued as soon as practical after exercise. Notwithstanding the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstandingabove, the Company shall not be obligated to issue deliver any shares of Common Stock during any period when the Company determines that the exercisability of the Option Shares or the delivery of shares of Common Stock hereunder if the issuance of such Option Shares would violate the provision of any federal, state or other applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangelaws.

Exercise of Option. In order to Written notice of the exercise the Option, the Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option or any portion thereof shall be given to CVCA accompanied by the aggregate Exercise Price for the Option Shares for which the Option is being exercised. Payment proposed to the Company be acquired payable (i) in cash by certified or Shares already owned bank cashier's check, (ii) by instructing CVCA to cancel that portion of this Option exercisable for that number of shares of Company Common Stock (the "Relinquished Shares") having an aggregate Market Value on the last business day immediately preceding the date of exercise equal to sum of (A) the Exercise Price multiplied by the Option Holder number of Relinquished Shares plus (provided that B) the Option Holder has owned Exercise Price multiplied by the number of shares subject to such Shares for a minimum period of six months exercise or has purchased such Shares on the open market(iii) and having a total Fair Market Value (as defined below) equal to the exercise price, or in by a combination of cash and such Sharesthe foregoing. If any exercise is made pursuant to clause (ii) above, the Option shall automatically be deemed acceptable for purposes hereof. adjusted to reduce the number of shares issuable upon exercise of the Option Shares will be issued accordingly by the Company, number of Relinquished Shares. No exercise may be made pursuant to clause (ii) above if the number of shares subject to such exercise and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional number of Relinquished Shares exceeds the number of shares issuable upon the exercise of the Option. If As used herein, "Market Value" means as to any fractional interest in a Share would be deliverable upon security the exercise average of the Option in whole or in part but for closing prices of such security's sales on the provisions of this paragraphUnited States securities exchanges on which such security may at the time be listed, or, if there have no sales on any such exchange on the subject day, the Company, in lieu average of delivering any the highest bid and lowest asked prices on such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share exchange at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstandingsuch day, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if on any such day such security is not so listed, the Shares were not traded average of the representative bid and asked prices quoted on that the NASDAQ System as of 4:00 P.M., New York time on such day, or, if on any day such security is not quoted in the next preceding day that NASDAQ System, the Shares were traded) on average of the principal exchange on which the Shares are traded, as such highest bid and lowest asked prices are officially quoted on such exchangeday in the domestic over-the-counter market as reported by the National Quotation Bureau, Incorporated, or any similar or successor organization.

Exercise of Option. In Subject to the conditions set forth in this Agreement, this Option may be exercised by the Optionee’s delivery of written notice of exercise to the Clerk of the Company, specifying the number of whole Option Shares to be purchased and the purchase price to be paid therefor. The Optionee may purchase less than the number of Option Shares covered hereby, provided that no partial exercise of this Option may be for any fractional Share. The Company shall then schedule a closing date as soon as practicable, but no later than thirty (30) business days following receipt of such notice. Unless otherwise agreed by the “Committee,” as that term is defined in the Plan, payment of the purchase price for Shares purchased upon exercise of the Option shall be made by delivery to the Company of cash or a certified or bank check to the order of the Company in an amount equal to the purchase price of such Shares; or by delivery of a properly executed exercise notice, together with irrevocable instructions to a broker directing the broker to sell the Shares and then to properly deliver to the Company the amount of sale or loan proceeds to pay the exercise price, all in accordance with the regulations of the Federal Reserve Board. As a condition to any exercise of the Option, the Option Holder Optionee shall submit to the Company an instrument in writing signed by the Option Holdermake arrangement, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner reasonably acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be for withholding of any tax or other amount required to issue fractional Shares upon be withheld under applicable law in connection with the exercise of the Option. If The Company shall, upon payment of the option price for the number of Shares purchased, and delivery of a subscription agreement in form satisfactory to the Committee, make prompt delivery of such Shares to the Optionee, provided that if any fractional interest in a Share would law or regulation requires the Company to take any action with respect to such Shares before the issuance thereof, then the date of delivery of such Shares shall be deliverable extended for the period necessary to complete such action. No shares shall be issued and delivered upon the exercise of any option unless and until, in the Option in whole or in part but opinion of counsel for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end applicable registration requirements of the most recent fiscal quarter) multiplied by the fraction Securities Act of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding1933, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision applicable listing requirements of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal national securities exchange on which stock of the Shares are tradedsame class is then listed, as or any other requirements of law or of any regulatory bodies having jurisdiction over such prices are officially quoted on such exchangeissuance and delivery, shall have been fully complied with.

Exercise of Option. In order to exercise Exercise of the Option, the purchase rights represented by this Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by paymentmay be made, in a manner acceptable whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (which shall include a broker assisted exercise arrangement), or such other office or agency of the Option Price for the Option Shares for which the Option is being exercised. Payment Company as it may designate by notice in writing to the Company in cash or Shares already owned by registered Holder at the Option address of the Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares appearing on the open marketbooks of the Company) of a duly executed facsimile copy of the Notice of Exercise form annexed hereto as Exhibit A and having a total Fair Market Value within three (as defined below3) equal Trading Days of the date said Notice of Exercise is delivered to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and the Company shall have received payment of the aggregate Exercise Price of the shares thereby purchased by wire transfer or cashier’s check drawn on a share certificate dispatched United States bank or, if available, pursuant to the Option cashless exercise procedure specified in Section 2(c) below. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise form be required. Notwithstanding anything herein to the contrary, the Holder within 30 days. The Company shall not be required to issue fractional Shares upon physically surrender this Option to the exercise Company until the Holder has purchased all of the OptionOption Shares available hereunder and the Option has been exercised in full, in which case, the Holder shall surrender this Option to the Company for cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered to the Company. If Partial exercises of this Option resulting in purchases of a portion of the total number of Option Shares available hereunder shall have the effect of lowering the outstanding number of Option Shares purchasable hereunder in an amount equal to the applicable number of Option Shares purchased. The Holder and the Company shall maintain records showing the number of Option Shares purchased and the date of such purchases. The Company shall deliver any fractional interest objection to any Notice of Exercise Form within one (1) Business Day of receipt of such notice. Notwithstanding anything herein to the contrary, the minimum aggregate exercise value for each individual exercise shall be as noted herein below. Further, subject to the provisions of this Section 2(a), the Holder and the Company agree that the Holder has the right and the obligation to exercise, on a cashless basis, in accordance with the Exercise Price formula referenced in Section 2(c) and utilizing the cashless methodology set forth in Section 2(d), $1,000,000.00 of the Options not later than October 15, 2022. Thereafter, the Holder shall undertake to exercise not less than (i) $400,000.00 of the Options on a Share would be deliverable upon “cash basis” not later than the later of (y) November 14, 2022 or (z) the date on which there is an effective registration statement permitting the issuance of the Option Shares to or resale of the Option Shares by the Holder and (ii) an additional $400,000.00 of the Options on a “cash basis” not later than the latest of (x) thirty (30) days following the exercise of the Option under subsection (i), above, (y) December 14, 2022, or (z) the date on which there is an effective registration statement permitting the issuance of the Option Shares to or resale of the Option Shares by the Holder. From and after the occurrence of the three above-referenced exercises, each additional exercise of Options hereunder shall be in whole an amount not less than $200,000.00 and exercised only on a cash basis. The Holder’s obligation to exercise each specified portion of this Option on the specific dates set forth in this Section 2(a) is subject to the VWAP (market value), as detailed on Schedule A (the chart following the signature page to this Option Agreement), being not less than $0.200 per share on the relevant Option exercise date. Any or in part but for all of the three above- specified Option exercise dates may be changed upon the mutual agreement thereto of the Company and the Holder. Finally, the Holder and any assignee, by acceptance of this Option, as updated herein, acknowledge and agree that, by reason of the provisions of this paragraphSection, following the purchase of a portion of the Option Shares hereunder, the Company, in lieu number of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares available for purchase hereunder if the issuance of such Option Shares would violate the provision of at any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares given time may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean less than the mean between the high and low selling prices per Share amount stated on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeface hereof.

Exercise of Option. In order to exercise the Option, the Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a by broker assisted exercise arrangementarrangements), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to Company on the Option Holder within 30 daysdate of exercise. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange.

Exercise of Option. In order Subject to exercise the Optionlimitations set forth herein and in the Plan, the this Option Holder shall submit may be exercised by written notice provided to the Company an instrument as set forth in writing signed by Section 5. Such written notice shall (a) state the Option Holder, specifying the whole number of Option Shares in shares of Common Stock with respect of to which the Option is being exercised, (b) be accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder shares of Common Stock (provided that the Option Holder has owned such Shares for a minimum period of six months not subject to limitations on transfer) or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and Common Stock payable to Mexco Energy Corporation in the full amount of the purchase price for any shares of Common Stock being acquired and (c) be accompanied by cash or Common Stock in the full amount of all federal and state withholding or other employment taxes applicable to the taxable income of such SharesParticipant resulting from such exercise (or instructions to satisfy such withholding obligation by withholding Option Shares in accordance with Section 8); provided, however, that any shares of Common Stock delivered in payment of the option price that are or were the subject of an award under the Plan must be shares that the Participant has owned for a period of at least six months prior to the date of exercise. For the purpose of determining the amount, if any, of the purchase price satisfied by payment in Common Stock, such Common Stock shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by valued at its Fair Market Value on the Company, and a share certificate dispatched to the Option Holder within 30 daysdate of exercise. The Company shall not be required to issue fractional Shares upon Committee may, in its sole discretion, arrange for the exercise of the Optionthis Option through a broker-assisted cashless exercise program. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything Notwithstanding anything to the contrary herein notwithstandingcontained herein, the Participant agrees that he will not exercise the option granted pursuant hereto, and the Company shall will not be obligated to issue any option shares pursuant to this Award Agreement, if the exercise of the Option Shares hereunder if or the issuance of such Option Shares shares would violate constitute a violation by the Participant or by the Company of any provision of any applicable lawlaw or regulation of any governmental authority or any stock exchange or transaction quotation system. The Participant agrees that, in which event unless the options and shares covered by the Plan have been registered pursuant to the Securities Act of 1933, as amended (the “Act”), the Company shallmay, as soon as practicableat its election, require the Participant to give a representation in writing in form and substance satisfactory to the Company to the effect that he is acquiring such shares for his own account for investment and not with a view to, or for sale in connection with, the distribution of such shares or any part thereof. If any law or regulation requires the Company to take whatever any action it reasonably can so that such Option Shares may be issued without resulting with respect to the shares specified in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that daynotice, the next preceding day that time for delivery thereof, which would otherwise be as promptly as possible, shall be postponed for the Shares were traded) on the principal exchange on which the Shares are traded, as period of time necessary to take such prices are officially quoted on such exchangeaction.

Exercise of Option. In order The Option may be exercised by KDT at any time within one year following the occurrence of a Triggering Event (as hereinafter defined), in whole or in part. If KDT wishes to exercise the Option, the Option Holder KDT shall submit give written notice to the Company an instrument in writing signed by of its intention to exercise the Option HolderOption, specifying the whole number of Option Shares it will purchase and a place, time and date not earlier than one day and not later than five (5) days from the date such notice is given for the closing of such purchase (a "Closing"). Each Closing shall be held on the date specified in respect such notice unless, on such date, there shall be any preliminary or permanent injunction or other order by any court of competent jurisdiction or any other legal restraint or prohibition preventing the consummation of such purchase, in which event such Closing shall be held as soon as practicable following the lifting, termination or suspension of such injunction, or on the date such order, restraint or prohibition preventing the consummation of such purchase has expired or been terminated, but in any event within two days thereof. The Company's obligation to issue Option Shares upon exercise of the Option is being exercised, accompanied by payment, in a manner acceptable subject to the Company conditions that (which shall include a broker assisted exercise arrangementi) all waiting periods under the Hart-Xxxxx-Xxxxxx Xxxitrust Improvements Act of 1976, as amended (the "HSR Act"), required for the purchase of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash upon such exercise shall have expired or Shares already owned by the Option Holder been waived and (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open marketii) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company there shall not be required to issue fractional Shares upon the exercise of the Option. If in effect any fractional interest in a Share would be deliverable upon preliminary injunction or other order issued by any governmental entity prohibiting the exercise of the Option in whole or in part but for the provisions of pursuant to this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunderAgreement. Anything to the contrary herein notwithstanding, Photobition and the Company shall each promptly make such filings and provide such information as may be required under the HSR Act with respect to the purchase of the Option Shares, and Photobition shall pay any fees payable in connection therewith. In the event any required waiting period under the HSR Act has not expired or been terminated, the Closing will be obligated to issue any Option Shares hereunder if postponed until the issuance of such Option Shares would violate the provision expiration or early termination of any applicable law, in which event required waiting period under the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeHSR Act.

Exercise of Option. In order Subject to exercise the Optionlimitations set forth herein and in the Plan, the this Option Holder shall submit may be exercised by written notice provided to the Company an instrument as set forth in writing signed by Section 5. Such written notice shall (a) state the Option Holder, specifying the whole number of Option Shares in shares of Common Stock with respect of to which the Option is being exercised, (b) be accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder shares of Common Stock (provided that the Option Holder has owned such Shares for a minimum period of six months not subject to limitations on transfer) or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and Common Stock payable to Pride International, Inc. in the full amount of the purchase price for any shares of Common Stock being acquired and (c) be accompanied by cash or Common Stock in the full amount of all federal and state withholding or other employment taxes applicable to the taxable income of such SharesOptionee resulting from such exercise (or instructions to satisfy such withholding obligation by withholding Option Shares in accordance with Section 8). For the purpose of determining the amount, if any, of the purchase price satisfied by payment in Common Stock, such Common Stock shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their valued at its Fair Market Value (or if any Shares are not publicly traded, an amount equal to on the book value per share at the end date of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunderexercise. Anything Notwithstanding anything to the contrary herein notwithstandingcontained herein, the Optionee agrees that he will not exercise the option granted pursuant hereto, and the Company shall will not be obligated to issue any option shares pursuant to this Option Shares hereunder Agreement, if the exercise of the Option or the issuance of such Option Shares shares would violate constitute a violation by the Optionee or by the Company of any provision of any applicable lawlaw or regulation of any governmental authority or any stock exchange or transaction quotation system. The Optionee agrees that, in which event unless the options and shares covered by the Plan have been registered pursuant to the Securities Act of 1933, as amended, the Company shallmay, as soon as practicableat its election, require the Optionee to give a representation in writing in form and substance satisfactory to the Company to the effect that he is acquiring such shares for his own account for investment and not with a view to, or for sale in connection with, the distribution of such shares or any part thereof. If any law or regulation requires the Company to take whatever any action it reasonably can so that such Option Shares may be issued without resulting with respect to the shares specified in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that daynotice, the next preceding day that time for delivery thereof, which would otherwise be as promptly as possible, shall be postponed for the Shares were traded) on the principal exchange on which the Shares are traded, as period of time necessary to take such prices are officially quoted on such exchangeaction.

Exercise of Option. In order The Option may be exercised for all, or from time to exercise the Optiontime any part, of the Option Holder Shares for which it is then exercisable. The exercise date shall submit to be the date the Company an instrument in writing receives a written notice of exercise signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment(a) full payment for the Option Shares with respect to which the Option is exercised, in a manner acceptable to the Company (which which, at the discretion of the Company, shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised, and (b) payment by the Option Holder of all payroll, withholding, or income taxes incurred in connection with the Option exercise (or arrangements for the collection or payment of such tax satisfactory to the Committee are made). Payment The purchase price for the Shares as to which the Option is exercised shall be paid to the Company in cash or full at the time of exercise at the election of the Option Holder (i) in cash, (ii) in Shares already owned having a Fair Market Value equal to the aggregate Option Price for the Shares being purchased and satisfying such other requirements as may be imposed by the Committee; provided, that, such Shares have been held by the Option Holder for no less than six months, (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open marketiii) and having a total Fair Market Value (as defined below) equal to the exercise price, or partly in a combination of cash and partly in such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by or (iv) through the Company, and delivery of irrevocable instructions to a share certificate dispatched broker to deliver promptly to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at aggregate Option Price for the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunderShares being purchased. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such the Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such the Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange.

Exercise of Option. In order The Option may be exercised by Optionee during the Option Period by delivery to the Optioner of (i) a written notice, substantially in the form attached hereto as Exhibit A (the “Exercise Notice”), indicating that (A) Optionee is electing to exercise the OptionOption to acquire Option Shares, (B) the Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect it is then electing to purchase and the aggregate Option Price payable for such number of which Option Shares (the “Exercise Price”) and (C) the custodian bank, broker, dealer or other nominee of Optionee and the applicable account number where the Option is Shares then being exercisedpurchased are to be transferred, accompanied by paymentand (ii) the Exercise Price in immediately available funds. Optioner shall immediately notify the Company’s transfer agent or Optioner’s custodian bank, in a manner acceptable to broker, dealer or other nominee holding the Company Option Shares on behalf of the Optioner, as the case may be (which shall include a broker assisted exercise arrangementthe “Transferring Party”), of the Option Price for exercise of the Option and instruct the Transferring Party to immediately transfer the number of Option Shares for which the Option is being exercised. Payment elected by Optionee to the Company custodian bank, broker, dealer or other nominee of Optionee as communicated to Optioner by Optionee in cash or Shares already owned the Exercise Notice. Optionee shall provide Optioner and the Transferring Party with any other reference information reasonably requested by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal Transferring Party to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon effectuate the exercise of the Option. If any fractional interest in a Share would be deliverable upon Optionee shall cause the exercise Transferring Party to notify the Company of the Option aforesaid transfer as necessary in whole or in part but for order to afford the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal Optionee with all rights afforded to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if so purchased, including, but not limited to, rights to stock dividends on, and rights to vote, such Option Shares. The Optioner agrees to use its reasonable commercial efforts to cause the issuance transfer of such Option Shares would violate to Optionee as quickly as practicable and in any event within three (3) business days from Optionee’s delivery of the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeExercise Notice to Optioner.

Exercise of Option. In order During the period commencing on December 10, 1996 and ending on December 9, 1997 ("Option Period I"), the Optionee shall have the right to purchase, at the Exercise Price, up to 10,000 shares of Common Stock. During the period commencing on December 10, 1997 and ending on December 10, 2006 ("Option Period II"), the Optionee shall have the right to purchase, at the Exercise Price, up to 20,000 shares of Common Stock less any shares of Common Stock purchased during Option Period I pursuant to the terms of this Agreement. The Optionee shall exercise the Option, the Option Holder shall submit option by delivering to the Company an instrument Company: (a) a written notice in writing the form of Exhibit A attached hereto signed by the Option HolderOptionee and (b) payment of the total option price, specifying which shall be the whole Exercise Price multiplied by the number of shares to be purchased (the "Total Option Shares in respect of which the Option is being exercised, accompanied by paymentPrice"), in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement)form of cash, of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise pricecertified check, bank draft, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor money order in an amount equal to their Fair Market Value the Total Option Price of the shares then to be purchased pursuant to this Agreement. Within five (or if any Shares are not publicly traded5) days after receipt of the foregoing, an amount equal the Company shall issue the shares in the name of the Optionee and deliver the certificates therefor to the book value per share at Optionee. If the end Optionee fails to pay for all or any part of the most recent fiscal quarter) multiplied number of shares specified in the written notice or fails to accept delivery of same upon tender of delivery thereof, the Optionee's right to exercise his option with respect to such undelivered shares may be terminated by the fraction of the fractional share which would otherwise have been issued hereunderCompany. Anything to the contrary herein notwithstanding, the Company's obligation to sell and deliver stock under this Agreement is subject to compliance with federal and state laws, rules and regulations applying to the authorization, issuance or sale of securities, and applicable stock exchange and automated quotation system requirements as the Company deems necessary or advisable. The Company shall not be obligated required to issue any Option Shares hereunder if sell and deliver stock pursuant hereto unless and until it receives proof satisfactory to it that the issuance or transfer of such Option Shares would shares will not violate any of the provision provisions of the Securities Act of 1933 or the Securities Exchange Act of 1934 or the rules and regulations of the Securities and Exchange Commission promulgated thereunder, or the rules and regulations of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal stock exchange or automated quotation system on which the Shares Company's securities are tradedtraded or quoted, as or the provisions of any state law governing the sale of securities, or that there has been compliance with the provisions of such prices are officially quoted on such exchangeacts, rules, regulations and state laws.

Exercise of Option. In order to exercise This option may be exercised only by written notice (the Option, "Exercise Notice") by the Option Holder shall submit Optionee to the Company at its principal executive office. The Exercise Notice shall be deemed given when deposited in the U. S. mails, postage prepaid, addressed to the Company at its principal executive office, or if given other than by deposit in the U.S. mails, when delivered in person to an instrument in writing signed by executive officer of the Company at that office. The date of exercise of the Option Holder, specifying (the whole "Exercise Date") shall be the date of the postmark if the notice is mailed or the date received if the notice is delivered other than by mail. The Exercise Notice shall state the number of Option Shares shares in respect of which the Option option is being exercisedexercised and, accompanied if the shares for which the option is being exercised are to be evidenced by paymentmore than one stock certificate, the denominations in a manner acceptable which the stock certificates are to be issued. The Exercise Notice shall be signed by the Company (which Optionee and shall include a broker assisted exercise arrangement)the complete address of such person, together with such person's social security number. This option may be exercised either by tendering cash in the amount of the Option Price for or by tendering shares of Common Stock (which may include shares previously acquired upon exercise of options granted under the Plan). The Exercise Notice shall be accompanied by payment of the aggregate Option Price of the shares purchased by cash or check payable to the order of the Company or by delivery of shares of Common Stock owned by the Optionee, in form satisfactory to the Company, tendered in full or partial payment of the Option Shares for which Price. If shares of Common Stock are used to pay part or all of the Option Price, the value of such shares for purposes of exercising this option shall be the Fair Market Value of the Common Stock on the Exercise Date. This Option may also be exercised by having shares of Common Stock having a Fair Market Value on the Exercise Date equal to the aggregate Option Price withheld by the Company. In addition to the foregoing, any option granted under this Agreement may be exercised by a broker-dealer acting on behalf of the Optionee if (i) the broker-dealer has received from the Optionee or the Company a fully- and duly-endorsed agreement evidencing such option, together with instructions signed by the Optionee requesting the Company to deliver the shares of Common Stock subject to such option to the broker-dealer on behalf of the Optionee and specifying the account into which such shares should be deposited, (ii) adequate provision has been made with respect to the payment of any withholding taxes due upon such exercise, and (iii) the broker-dealer and the Optionee have otherwise complied with Section 220.3(e)(4) of Regulation T, 12 CFR Part 220, or any successor provision. The certificates for shares of Common Stock as to which this option shall have been so exercised shall be registered in the name of the Optionee and shall be delivered to the Optionee at the address specified in the Exercise Notice. In the case of the exercise of the option by an Optionee who is being exercised. Payment employed by the Company or a Subsidiary on the Exercise Date, the Optionee in exercising such option shall make payment or other arrangements (including, but not limited to, requesting that the Company withhold shares of Common Stock that were to be issued to the Optionee upon such exercise) satisfactory to the Company in cash or Shares already owned for withholding federal and state taxes, if applicable, with respect to the shares acquired upon exercise of the option. In the case of options exercised when the Optionee is no longer employed by the Option Holder (provided that Company or a Subsidiary, such option exercise shall be valid only if accompanied by payment or other arrangement satisfactory to the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on Company with respect to the open market) Company's obligations, if any, to withhold federal and having a total Fair Market Value (as defined below) equal state taxes with respect to the exercise priceof the option. In the event the person exercising the option is a transferee of the Optionee, or in a combination of cash and such Shares, the Exercise Notice shall be deemed acceptable for purposes hereofaccompanied by appropriate proof of the right of such transferee to exercise this Option. Option Shares will be issued accordingly by the Company, and a share certificate dispatched Subject to the limitation expressed herein, this Option Holder within 30 daysmay be exercised with respect to all or a part of the shares of Common Stock subject to it. The Neither the Optionee nor any person claiming under or through the Optionee shall be or have any rights or privileges of a stockholder of the Company shall not be required to issue fractional Shares in respect of any of the shares issuable upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraphoption, the Company, in lieu of delivering any unless and until certificates representing such fractional share therefor, shares shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to (as evidenced by the contrary herein notwithstanding, appropriate entry on the books of the Company shall not be obligated to issue any Option Shares hereunder if or of a duly authorized transfer agent of the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeCompany).

Exercise of Option. In order to exercise This option shall be exercised by the Option, the Option Holder shall submit delivery of written notice to the Company (the "Notice") setting forth the number of shares with respect to which the option is to be exercised and the address to which the certificates for such shares are to be mailed, together with (i) delivery of a personal, certified or bank check or postal money order payable to the order of the Company for an instrument amount equal to the option price for the number of shares specified in writing signed the Notice, or (ii) with the consent of the Committee, shares of Common Stock of the Company which (a) either have been owned by the Option HolderHolder for more than six (6) months and are not subject to restrictions under any Plan on the date of surrender or were not acquired, specifying directly or indirectly, from the whole number Company, and (b) have a fair market value on the date of Option Shares in respect of surrender not greater than the option price for the shares as to which the Option such option is being exercised, accompanied by paymentor (iii) with the consent of the Committee, in delivering to the Company a manner properly executed Notice together with irrevocable instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable to the Company (which to pay the purchase price; provided that in the event the Holder chooses to pay the purchase price as so provided, the Holder and the broker shall include comply with such procedures and enter into such agreement of indemnity and other agreements as the Committee shall prescribe as a broker assisted exercise arrangement), condition of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (such payment procedure; provided that the Option Holder has owned Company need not act upon such Shares for a minimum period Notice until the Company receives full payment of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a (iv) with the consent of the Committee, any combination of cash and such Shares, shall be deemed acceptable for purposes hereofmethods of payment. Option Shares will be issued accordingly by For the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise purpose of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraphpreceding sentence, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book fair market value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything Common Stock so delivered to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices closing price per Share share on the immediately preceding date of delivery as reported by the Nasdaq Stock Market, Inc. ("Nasdaq") or another automated quotation system of the National Association of Securities Dealers, Inc. (the "NASD"), including the OTC Bulletin Board or any successor thereto or, if the Shares were Common Stock is not traded then quoted on that dayNasdaq or any such automated quotation system, the next preceding day that the Shares were traded) on the principal such registered national securities exchange on which the Shares are Common Stock is listed; provided, that, if there is no trading on such date, the fair market value shall be deemed to be the closing price per share on the last preceding date on which the Common Stock was traded, as such prices are officially . If the Common Stock is not listed on any national registered securities exchange or quoted on such exchangeNasdaq or any sich automated quotation system, the fair market value of the Common Stock shall be determined in good faith by the Committee.

Exercise of Option. In (a) Option Holder may exercise this Option by (i) delivering or mailing to the Company, Attention: Corporate Secretary, a notice of exercise, in the form specified by the Company, specifying therein the number of shares of Common Stock he has elected to purchase, accompanied by (A) payment in cash or by check payable to the order of the Company for the Exercise Price multiplied by the number of shares to be purchased and, (B) if required, the letter described in Paragraph 6 and (ii) executing and delivering to the Company the Acknowledgment and Statement of Decision Regarding Election Pursuant to Section 83(b) and a copy of the executed Election Pursuant to Section 83(b), if applicable, in accordance with Section 5 of the Optionee Restriction Agreement attached hereto as Exhibit “A” and being executed concurrently herewith. Notwithstanding the foregoing, the aggregate purchase price to be paid upon any exercise of this Option may, if permissible under applicable state law and in the discretion of the Board of Directors of the Company (the “Board”), be paid (1) in installments or in whole or in part by a promissory note of the Option Holder (in a form reasonably satisfactory to the Company) and secured by a security interest in the shares issued upon such exercise (provided, however, that an amount equal to the par value of the Common Stock multiplied by the number of shares being issued upon exercise shall be paid in cash) and/or (2) in whole or in part by delivery to the Company of shares of Common Stock previously acquired by the Option Holder having a Fair Market Value (determined as of the date of exercise of this Option and in the manner set forth in the Plan) equal to the portion of the aggregate purchase price being paid by delivery of such shares and, in the case of (1) or (2), if and to the extent applicable, cash or a check (or, in the case of (2) only, a note) made payable to the Company for any remaining portion of the aggregate purchase price. If so requested by the Board, prior to the acceptance of shares of Common Stock in satisfaction (in whole or in part) of the purchase price upon such exercise of this Option, the Option Holder shall submit to supply the Company an instrument in writing signed by the Option HolderBoard with written representations and warranties, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in including without limitation a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided representation and warranty that the Option Holder has owned good and marketable title to such Shares for a minimum period shares, free and clear of six months or has purchased such Shares on the open market) liens and having a total Fair Market Value (as defined below) equal to the encumbrances. The exercise price, or in a combination of cash and such Shares, this Option shall not be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, effective unless and a share certificate dispatched to until the Option Holder within 30 dayshas complied with all of the provisions of this Paragraph 2(a). The No partial exercise of this Option may be for less than «MIN_EXERCISE_AMOUNT_5» shares and, in no event, shall the Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeshares.

Exercise of Option. In order to exercise the OptionThe Grantor option may be exercised by Acquiror, the Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for part, at any time or from time to time after the provisions Merger Agreement is terminated and a termination fee is payable under circumstances which would entitle Acquiror to the termination fee under Section 9.2(b)(i) or 9.2(b)(ii) of this paragraphthe Merger Agreement. In the event Acquiror wishes to exercise the Grantor Option, Acquiror shall deliver to Grantor a written notice (an "Exercise Notice") specifying the Companytotal number of Grantor Shares it wishes to purchase. Each closing of a purchase of Grantor Shares (a "Closing") shall occur at a place, in lieu of delivering any such fractional share therefor, shall pay on a cash adjustment therefor date and at a time designated by Acquiror in an amount equal Exercise Notice delivered at least two business days prior to their Fair Market Value the date of the Closing. The Grantor Option shall terminate upon the earlier of: (i) the Effective Time; or (ii) two years following the first event that triggers the obligation of Grantor to pay the termination fee under Section 9.2(b)(i) or 9.2(b)(ii) of the Merger Agreement (or if any Shares are not publicly tradedif, an amount equal to the book value per share at the end expiration of such two year period the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall Grantor Option cannot be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision exercised by reason of any applicable lawjudgment, in which event decree, order, law or regulation, 10 business days after such impediment to exercise shall have been removed or shall have become final and not subject to appeal). Notwithstanding the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that dayforegoing, the next preceding day Grantor Option may not be exercised if Acquiror is in material breach of any of its representations or warranties, or in material breach of any of its covenants or agreements, contained in this Agreement or in the Merger Agreement. Upon the giving by Acquiror to Grantor of the Exercise Notice and the tender of the applicable aggregate Exercise Price, Acquiror shall be deemed to be the holder of record of the Grantor Shares issuable upon such exercise, notwithstanding that the stock transfer books of Grantor shall then be closed or that certificates representing such Grantor Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeshall not then be actually delivered to Acquiror.

Exercise of Option. In order (a) At least six (6) months but no more than twelve (12) months prior to the expiration of the Option Term, the Issuer shall give written notice to the Company of the pending expiration of the Option (the “Issuer’s Notice”). The Company may exercise the Option, at any time during the Option Holder shall submit Term, by giving written notice thereof to the Issuer. If the Bond has not theretofore been fully paid and if the Company an instrument in writing signed is not then also the Bondholder, a copy of such notice shall also be given by the Option HolderCompany to the Bondholder at the address of the Bondholder as reflected on the Bond Register. Such notice shall specify a date and time of the Closing (the “Closing Date”), specifying which shall be no earlier than thirty (30) days and no more than sixty (60) days following the whole number date such notice is sent to the Issuer. The time, date and place of Option Shares the Closing shall be 10:00 a.m. Georgia time on the Closing Date at the principal meeting place of the Issuer in respect of which Xxxxxx County, Georgia, or such other time, date and place as the Company and the Issuer may agree. In the event the Company does not exercise the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of during the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned Term (after notice by the Option Holder (provided that the Option Holder has owned Issuer of such Shares for a minimum period of six months failure as hereinafter provided) or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the after exercise of the Option. If any fractional interest , fails to proceed with the Closing of the purchase of the Project pursuant to the terms and provisions as contained herein, the Issuer shall be entitled to retain (1) the Option Fee, and (2) except as provided below in a Share would be deliverable upon connection with the deemed exercise of the Option in whole or in part but for Option, the provisions Project, free and clear of this paragraphAgreement. In the event that the Company fails to exercise the Option under this Agreement during the Option Term, the Company, in lieu Issuer promptly shall notify the Company of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, failure and the Company shall not be obligated entitled to issue any exercise the Option Shares hereunder if within thirty (30) days following such notice and the issuance Option Term shall be deemed to have been extended through the date on which notice of such Option Shares would violate election is furnished to the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeIssuer.

Exercise of Option. In order Subject to exercise the Optionlimitations set forth herein and in the Plan, the this Option Holder shall submit may be exercised by notice provided to the Company an instrument as set forth in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), Section 5. The payment of the Option Exercise Price for the Option Shares for which Class B Common Stock being purchased pursuant to the Option is being exercised. Payment shall be made (a) in cash, by check or cash equivalent, (b) by tender to the Company in cash Company, or Shares already attestation to the ownership, of Common Stock owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and Optionee having a total Fair Market Value (as defined belowdetermined by the Company without regard to any restrictions on transferability applicable to such Common Stock by reason of federal or state securities laws or agreements with an underwriter for the Company) equal not less than the Exercise Price, (c) by delivery of a properly executed notice together with irrevocable instructions to a broker providing for the assignment to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in proceeds of a Share would be deliverable sale or loan with respect to some or all of the shares being acquired upon the exercise of the Option in whole or in part but for (including, without limitation, through an exercise complying with the provisions of this paragraphRegulation T as promulgated from time to time by the Board of Governors of the Federal Reserve System), (d) by such other consideration as may be approved by the CompanyBoard from time to time to the extent permitted by applicable law, or (e) by any combination thereof. Such notice shall be accompanied by cash or Common Stock in lieu the full amount of delivering any all federal and state withholding or other employment taxes applicable to the taxable income of such fractional share thereforParticipant resulting from such exercise (or instructions to satisfy such withholding obligation by withholding Option Shares in accordance with Section 8). For the purpose of determining the amount, if any, of the purchase price satisfied by payment in Common Stock, such Common Stock shall pay a cash adjustment therefor in an amount equal to their be valued at its Fair Market Value (on the date of exercise. If the Optionee desires to pay the purchase price for the Option Shares by tendering Common Stock using the method of attestation, the Optionee may, subject to any such conditions and in compliance with any such procedures as the Committee may adopt, do so by attesting to the ownership of Common Stock of the requisite value, in which case the Company shall issue or if any otherwise deliver to the Optionee upon such exercise a number of Option Shares are not publicly traded, an amount equal to the book value per share at result obtained by dividing (a) the end excess of the most recent fiscal quarter) multiplied by the fraction aggregate Fair Market Value of the fractional share total number shares of Class B Common Stock subject to the Option for which would otherwise have been issued hereunderthe Option (or portion thereof) is being exercised over the purchase price payable in respect of such exercise by (b) the Fair Market Value per Option Share subject to the Option, and the Optionee may retain the shares of Common Stock the ownership of which is attested. Anything Notwithstanding anything to the contrary herein notwithstandingcontained herein, the Optionee agrees that he will not exercise the Option granted pursuant hereto, and the Company shall will not be obligated to issue any Option Shares hereunder pursuant to this Option Agreement, if the exercise of the Option or the issuance of such Option Shares shares would violate constitute a violation by the Optionee or by the Company of any provision of any applicable lawlaw or regulation of any governmental authority or any stock exchange or transaction quotation system. The Optionee agrees that, in which event unless the options and shares covered by the Plan have been registered pursuant to the Securities Act of 1933, as amended (the “Act”), the Company shallmay, at its election, require the Optionee to give a representation in writing in form and substance satisfactory to the Company to the effect that he is acquiring such shares for his own account for investment and not with a view to, or for sale in connection with, the distribution of such shares or any part thereof. If any law or regulation requires the Company to take any action with respect to the shares specified in such notice, the time for delivery thereof, which would otherwise be as soon promptly as reasonably practicable, shall be postponed for the period of time necessary to take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeaction.

Exercise of Option. In order The Option may be exercised for all, or from time to exercise the Optiontime any part, of the Option Holder Shares for which it is then exercisable. The exercise date shall submit to be the date the Company an instrument in writing receives a written notice of exercise signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment(a) full payment for the Option Shares with respect to which the Option is exercised, in a manner acceptable to the Company (which shall which, at the discretion of the Company, may include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised, (b) payment by the Option Holder of all payroll, withholding or income taxes incurred in connection with the Option exercise (or arrangements for the collection or payment of such tax satisfactory to the Committee are made). Payment The purchase price for the Shares as to which the Option is exercised shall be paid to the Company in cash or full at the time of exercise at the election of the Option Holder (i) in cash, (ii) in Shares already owned having a Fair Market Value equal to the aggregate Option Price for the Shares being purchased and satisfying such other requirements as may be imposed by the Committee; provided, that, such Shares have been held by the Option Holder for no less than six months, (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open marketiii) and having a total Fair Market Value (as defined below) equal to the exercise price, or partly in a combination of cash and partly in such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by (iv) through the Company, and delivery of irrevocable instructions to a share certificate dispatched broker to deliver promptly to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at aggregate Option Price for the end of the most recent fiscal quarterShares being purchased, or (v) multiplied through having Shares withheld by the fraction of the fractional share which Company from any Shares that would have otherwise have been issued hereunderreceived by Option Holder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such the Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such the Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange.

Exercise of Option. In order to To exercise the Option, you must deliver a completed copy of the attached Option Holder shall submit Exercise Form to the Company an instrument in writing signed by address indicated on the Option HolderForm, specifying the whole number of Option Shares being purchased as a result of such exercise, together with payment in respect full of which the exercise price for all the Option is Shares being exercisedpurchased. Payment of the option price may be made, accompanied at your election, (I) in cash; (II) by payment, in a manner acceptable delivering to the Company (which shall include a broker assisted notice of exercise arrangement), with an irrevocable direction to a broker-dealer registered under the Act to sell a sufficient portion of the Option Price for shares and deliver the Option Shares for which the Option is being exercised. Payment sale proceeds directly to the Company to pay the exercise price; (III) in cash or Shares already the discretion of the Plan Administrator, through the delivery to the Company of previously-owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period shares of six months or has purchased such Shares on the open market) and Common Stock having a total an aggregate Fair Market Value (as defined below) equal to the Option exercise price, or in a combination price of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched shares being purchased pursuant to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest ; provided, however, that shares of Common Stock delivered in a Share would be deliverable upon the exercise payment of the Option price must have been held by the participant for at least six (6) months in whole order to be utilized to pay the Option price; or (IV) in part but for the provisions discretion of the Plan Administrator, through any combination of the payment procedures set forth in subsections (I)-(III). For the purposes of this paragraphSection 6, "Fair Market Value" shall mean, with respect to a share of Common Stock, as follows: (i) if the shares of Common Stock are listed or admitted to trading on one or more national securities exchanges, the Companyaverage of the last reported sales prices per share regular way or, in lieu of delivering case no such reported sales take place on any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that average of the Shares were traded) last reported bid and asked prices per share regular way, in either case on the principal national securities exchange on which the Shares shares of Common Stock are tradedlisted or admitted to trading, as for the 20 trading days immediately preceding the date upon which the Fair Market Value is determined; (ii) if the shares of Common Stock are not listed or admitted to trading on a national securities exchange but are quoted by the NASD Automated Quotation System ("NASDAQ") or any other nationally recognized quotation service, the average of the last reported sales prices per share regular way or, in case no reported sale takes place on any such day or the last reported sales prices are officially not then quoted by NASDAQ or such other quotation service, the average for each such day of the last reported bid and asked prices per share, for the 20 trading days immediately preceding the date on such exchangewhich Fair Market Value is determined as furnished by the National Quotation Bureau Incorporated or corresponding source or any similar successor organization; or (iii) if the shares of Common Stock are not listed or admitted to trading on a national securities exchange or quoted by NASDAQ or any other nationally recognized quotation service, the "Fair Market Value" shall be the fair market value thereof determined in good faith by the Board of Directors of the Company on a basis consistent with the manner of determining the fair market value of the Company's Common Stock for purposes of offering the Company's Common Stock to equity investors.

Exercise of Option. In order to exercise This option shall be exercised by the Option, the Option Holder shall submit delivery of written notice to the Company (the "Notice") setting forth the number of shares with respect to which the option is to be exercised and the address to which the certificates for such shares are to be mailed, together with (i) delivery of a personal, certified or bank check or postal money order payable to the order of the Company for an instrument amount equal to the option price for the number of shares specified in writing signed the Notice, or (ii) with the consent of the Committee, shares of Common Stock of the Company which (a) either have been owned by the Option HolderHolder for more than six (6) months and are not subject to restrictions under any Plan on the date of surrender or were not acquired, specifying directly or indirectly, from the whole number Company, and (b) have a fair market value on the date of Option Shares in respect of surrender not greater than the option price for the shares as to which the Option such option is being exercised, accompanied by paymentor (iii) with the consent of the Committee, in delivering to the Company a manner properly executed Notice together with irrevocable instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable to the Company (which to pay the purchase price; provided that in the event the Holder chooses to pay the purchase price as so provided, the Holder and the broker shall include comply with such procedures and enter into such agreement of indemnity and other agreements as the Committee shall prescribe as a broker assisted exercise arrangement), condition of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (such payment procedure; provided that the Option Holder has owned Company need not act upon such Shares for a minimum period Notice until the Company receives full payment of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or (iv) with the consent of the Committee, a personal recourse note issued by the Holder to the Company in a combination of cash principal amount equal to such aggregate exercise price and with such Sharesother terms, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly including interest rate and maturity, as the Company may determine in its discretion, provided that the interest rate borne by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company such note shall not be required to issue fractional Shares upon less than the exercise lowest applicable federal rate, as defined in Section 1274(d) of the Option. If any fractional interest in a Share would be deliverable upon Internal Revenue Code of 1986, as amended, or (v) with the exercise consent of the Option in whole or in part but for Committee, any combination of such methods of payment. For the provisions purpose of this paragraphthe preceding sentence, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book fair market value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything Common Stock so delivered to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices closing price per Share share on the immediately preceding date (of delivery as reported by such registered national securities exchange on which the Common Stock is listed, or, if the Shares were Common Stock is not traded listed on that daysuch an exchange, as quoted on NASDAQ; provided, that, if there is no trading on such date, the next preceding day that fair market value shall be deemed to be the Shares were traded) closing price per share on the principal exchange last preceding date on which the Shares are Common Stock was traded, as such prices are officially . If the Common Stock is not listed on any national registered securities exchange or quoted on such exchangeNASDAQ, the fair market value of the Common Stock shall be determined in good faith by the Committee.

Exercise of Option. In order This option shall be exercisable by written notice which shall state the election to exercise the Optionoption, the Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares shares in respect of which the Option option is being exercised, accompanied by payment, in a manner acceptable and such other representations and agreements as to the holder’s investment intent with respect to such shares of Common Stock as may be required by the Company (which shall include a broker assisted exercise arrangement), pursuant to the provisions of the Option Price for the Option Shares for which the Option is being exercisedPlan or this Agreement. Payment to the Company in cash or Shares already owned Such written notice shall be signed by the Option Holder (provided that Optionee or other person entitled to exercise the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal option pursuant to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraphAgreement or the Plan and shall be delivered in person or by certified mail to the Secretary of the Company. The written notice shall be accompanied by payment of the purchase price. Payment of the purchase price shall be in cash, currency and/or shares of Common pursuant to the provisions of the Plan. Unless the shares of Common Stock have been registered under the Securities Act of 1933 pursuant to a registration statement filed on Form S-8 or otherwise, the Company, certificate or certificates for shares of Common Stock as to which the option shall be exercised shall be registered in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end name of the most recent fiscal quarter) multiplied by Optionee and shall contain the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstandingfollowing legend: “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND NOT WITH A VIEW TO THE DISTRIBUTION THEREOF, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable lawAND SUCH SECURITIES MAY NOT BE SOLD OR TRANSFERRED UNLESS SUCH SALE OR TRANSFER IS REGISTERED UNDER SUCH ACT OR THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THESE SECURITIES SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE OR TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeAND UNLESS SUCH SALE OR TRANSFER IS AUTHORIZED UNDER APPLICABLE STATE LAW.”

Exercise of Option. In order (a) Subject to Section 2 and any electronic exercise methods implemented by the OptionCompany, any part of the Vested Portion of the Option Holder shall submit may be exercised by delivering to the Company an instrument in writing signed by on any business day at its principal office written notice of intent to so exercise; provided that the Option Holder, specifying may be exercised with respect to whole shares of Stock only. Such notice shall specify the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment exercised (the “Purchased Shares”) and shall be accompanied by payment in full of the Option Price of the Purchased Shares in cash or by check or wire transfer; provided, however, that, in the sole discretion of the Committee, payment of such aggregate Option Price may instead be made, in whole or in part, by one or more of the following: (i) provided that the Company is not then contractually prohibited from permitting exercise in this fashion, the delivery to the Company in cash of a certificate or Shares already owned certificates representing Stock, duly endorsed or accompanied by a duly executed stock power, which delivery effectively transfers to the Option Holder Company good and valid title to such Stock, free and clear of any pledge, commitment, lien, claim or other encumbrance (provided that the Option Holder has owned such Shares for a minimum period shares of six months or has purchased such Shares on the open market) and having a total Stock to be valued at their aggregate Fair Market Value on the date of such exercise), provided that if a certificate or certificates representing shares of Stock in excess of the amount required are delivered, a certificate (as defined belowor other satisfactory evidence of ownership) equal to representing the exercise price, or in a combination excess number of cash and such Shares, shares of Stock shall promptly be deemed acceptable for purposes hereof. Option Shares will be issued accordingly returned by the Company, and (ii) a share certificate dispatched reduction in the number of Purchased Shares to be issued upon such exercise having a Fair Market Value on the date of exercise equal to the aggregate Option Price in respect of the Purchased Shares, provided that the Company is not then contractually prohibited from permitting exercise in this fashion, or (iii) other cashless exercise procedures approved by the Committee. The Grantee shall not have any rights to dividends or other rights of a stockholder with respect to Shares subject to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon until the Grantee has given written notice of exercise of the Option. If , paid the Option Price in full for such Shares and, if applicable, has satisfied any fractional interest other conditions pursuant to the Plan or this Agreement (including provisions for the payment of applicable withholding taxes, which provisions may be made in a Share would be deliverable upon the exercise any of the ways in which the Option Price may be paid). Notwithstanding anything to the contrary contained in whole this Agreement or in part but the Plan, for the provisions purposes of this paragraphSection 5(a), the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly tradedof a share of Stock shall, an amount equal to the book value per share at the end extent necessary to avoid incurring “additional tax,” interest or penalties under Section 409A of the most recent fiscal quarter) multiplied by Code, not be treated as greater than the fraction “fair market value” of a share of Stock determined consistently with Section 409A of the fractional share which would otherwise have been issued hereunder. Anything to Code and the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high regulations and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeguidance promulgated thereunder.

Exercise of Option. In order To exercise the Option or the Additional Option in whole or in part, Trilon shall deliver to the Company at its principal office in Carlsbad, California, (a) a written notice, in substantially the form of the Exercise Notice appearing at the end of this Agreement, of Trilon's election to exercise the Option or the Additional Option, which notice shall specify the Option Holder shall submit number of shares of Common Stock to be purchased and (b) cash or a certified check payable to the Company, or by crediting such amount against outstanding indebtedness (including principal and accrued interest thereon) of the Company to Trilon, at the time of exercise, in an instrument amount equal to the Exercise Price. The Company shall as promptly as practicable, and in writing signed any event within 15 days thereafter, execute and deliver or cause to be executed and delivered, in accordance with such notice, a certificate or certificates representing the aggregate number of shares of Common Stock specified in such notice. Such certificate or certificates shall be deemed to have been issued and Trilon or any other person so designated to be named therein shall be deemed for all purposes to have become a holder of record of such shares as of the date such notice, with payment of the Exercise Price, is received by the Option HolderCompany as aforesaid. The Company shall pay all expenses, specifying taxes and other charges payable in connection with the whole number preparation, issuance and delivery of Option Shares in respect of which the Option is being exercisedsuch stock certificates, accompanied by paymentexcept that, in case such stock certificates shall be registered in a manner acceptable name or names other than the name of Trilon, funds sufficient to pay all stock transfer taxes that are payable upon the Company (which issuance of such stock certificate or certificates or new agreements shall include a broker assisted be paid by Trilon at the time of delivering the notice of exercise arrangement)mentioned above. Subject to compliance with applicable securities laws and the terms of this Agreement, all shares of Common Stock issued upon the exercise of the Option Price for or the Additional Option Shares for which shall be validly issued, fully paid and nonassessable and, if the Option Common Stock is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for then listed on a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise pricenational securities exchange, or in a combination of cash and such Sharesquoted on an automated quotation system, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 daysduly listed or quoted thereon. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions Additional Option to issue a certificate representing any fraction of this paragrapha share of Common Stock, the Companybut, in lieu of delivering any such fractional share thereforthereof, shall pay a to Trilon cash adjustment therefor in an amount equal to their Fair Market Value a corresponding fraction (or if any Shares are not publicly traded, an amount equal calculated to the book value per share at the end nearest 1/100 of a share) of the most recent fiscal quarter) multiplied purchase price of one share of Common Stock as of the date of receipt by the fraction Company of notice of exercise of the fractional share which would otherwise have been issued hereunder. Anything to Option or the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeAdditional Option.

Exercise of Option. In order to exercise the Option, the Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), payment of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company exercised in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open marketmonths) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the CompanyCompany within fifteen business days, and a share certificate dispatched to the Option Holder within 30 thirty days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange.

Exercise of Option. In order to exercise the OptionThe SIGCORP Option may be exercised by Indiana, the Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for part, at any time or from time to time after the provisions Merger Agreement becomes terminable by Indiana under circumstances which could entitle Indiana to termination fees under either Section 9.3(a) of this paragraphthe Merger Agreement or Section 9.3(b) of the Merger Agreement, provided that the Companyevents specified in Section 9.3(b)(ii) of the Merger Agreement shall have occurred (regardless of whether the Merger Agreement is actually terminated or whether there occurs a closing of any Business Combination involving a SIGCORP Target Party or a closing by which a SIGCORP Target Party becomes a subsidiary), in lieu of delivering any such fractional share therefor, event by which the Merger Agreement becomes so terminable by Indiana being referred to herein as a "Trigger Event." SIGCORP shall pay a cash adjustment therefor notify Indiana promptly in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end writing of the most recent fiscal quarter) multiplied occurrence of any Trigger Event, it being understood that the giving of such notice by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company SIGCORP shall not be obligated a condition to issue any Option the right of Indiana to exercise the SIGCORP Option. In the event Indiana wishes to exercise the SIGCORP Option, Indiana shall deliver to SIGCORP a written notice (an "Exercise Notice") specifying the total number of SIGCORP Shares hereunder if it wishes to purchase. If at the time of issuance of any SIGCORP Shares pursuant to an exercise of all or part of the SIGCORP Option hereunder, SIGCORP shall not have redeemed the SIGCORP Rights, or shall have issued any similar securities, then each SIGCORP Share issued pursuant to such exercise shall also represent SIGCORP Rights or new rights with terms substantially the same as and at least as favorable to Indiana as are provided under the SIGCORP Rights Agreement or any similar agreement then in effect. Each closing of a purchase of SIGCORP Shares (a "Closing") shall occur at a place, on a date and at a time designated by Indiana in an Exercise Notice delivered at least two business days prior to the date of the Closing. The SIGCORP Option Shares would violate shall terminate upon the provision earlier of: (i) the Effective Time; (ii) the termination of the Merger Agreement pursuant to Section 9.1 thereof (other than upon or during the continuance of a Trigger Event); or (iii) 180 days following any termination of the Merger Agreement upon or during the continuance of a Trigger Event (or if, at the expiration of such 180 day period the SIGCORP Option cannot be exercised by reason of any applicable lawjudgment, decree, order, law or regulation, ten business days after such impediment to exercise shall have been removed or shall have become final and not subject to appeal, but in which no event under this clause (iii) later than the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations third anniversary of lawthe date hereof). For purposes hereof, Fair Market Value shall mean Notwithstanding the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that dayforegoing, the next preceding day SIGCORP Option may not be exercised if Indiana is in material breach of any of its material representations or warranties, or in material breach of any of its covenants or agreements, contained in this Agreement or in the Merger Agreement. Upon the giving by Indiana to SIGCORP of the Exercise Notice and the tender of the applicable aggregate Exercise Price, Indiana shall be deemed to be the holder of record of the SIGCORP Shares issuable upon such exercise, notwithstanding that the stock transfer books of SIGCORP shall then be closed or that certificates representing such SIGCORP Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeshall not then be actually delivered to Indiana.

Exercise of Option. In order to exercise the Option, the Option Holder This option shall submit to the Company an instrument in writing signed be exercised by the Option Holder, specifying the whole number delivery of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable written notice to the Company (the "Notice") setting forth the number of shares with respect to which shall include a broker assisted exercise arrangement)the option is to be exercised and the address to which the certificates for such shares are to be mailed, together with (i) cash or check payable to the order of the Option Price Company for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book option price for the number of shares specified in the Notice, or (ii) with the consent of the Committee, shares of Common Stock of the Company which (a) either have been owned by the Holder for more than six (6) months on the date of surrender or were not acquired, directly or indirectly, from the Company, and (b) have a fair market value on the date of surrender not greater than the option price for the shares as to which such option is being exercised, or (iii) with the consent of the Committee, delivery of such documentation as the Committee and a broker, if applicable, shall require to effect an exercise of the option and delivery to the Company of the sale or loan proceeds required to pay the option price of the shares for which the option is being exercised, or (iv) with the consent of the Committee, such other consideration which is acceptable to the Committee and which has a fair market value equal to the option price for the shares as to which the option is being exercised, or (v) with the consent of the Committee, a combination of (i), (ii), (iii), (iv) and/or (v). For the purpose of the preceding sentence, the fair market value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything Common Stock so delivered to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices closing price per Share share on the immediately preceding date (of delivery as reported by such registered national securities exchange on which the Common Stock is listed, or, if the Shares were Common Stock is not traded listed on that daysuch an exchange, as quoted on NASDAQ; provided, that, if there is no trading on such date, the next preceding day that fair market value shall be deemed to be the Shares were traded) closing price per share on the principal exchange last preceding date on which the Shares are Common Stock was traded, as such prices are officially . If the Common Stock is not listed on any national registered securities exchange or quoted on such exchangeNASDAQ, the fair market value of the Common Stock shall be determined in good faith by the Committee.

Exercise of Option. In order Subject to exercise the Optionearlier expiration of this Option as herein provided, this Option may be exercised, by written notice (in the Option Holder shall submit form prescribed by the Company from time to time) to the Company an instrument in writing signed at its principal executive office addressed to the attention of the President or the Treasurer, at any time and from time to time after the date of grant hereof. Acceptable electronic notification through our third party option administrator is deemed written notice. However, this Option shall not be exercisable for more than a percentage of the aggregate number of shares offered by this Option determined by the Option Holder, specifying the whole number of Option Shares in respect full years from the date of which grant hereof to the Option is being exercised, accompanied by paymentdate of such exercise, in a manner acceptable to accordance with the following schedule: PERCENTAGE OF SHARES NUMBER OF FULL YEARS THAT MAY BE PURCHASED -------------------- --------------------- Less than 1 year 0% 1 year 25% 2 years 50% 3 years 75% 4 years or more 100% Notwithstanding the foregoing, in the event Employee takes an unpaid leave of absence from the Company (which a) Employee's right to exercise this Option shall include a broker assisted be suspended three months after the beginning of such leave, (b) Employee's right to exercise arrangement)this Option shall be reinstated if Employee returns to active employment with the Company within 12 months after the beginning of such leave, and (c) if Employee does not return to active employment with the Company within 12 months after the beginning of such leave, then, for purposes of this Option, Employee shall be considered to have terminated employment on the date such leave began. Further, notwithstanding the exercise schedule set forth above, (i) while Employee is on an unpaid leave of absence, further vesting of shares stops and this Option is exercisable (to the extent provided in the preceding sentence) only as to the number of shares Employee was entitled to purchase hereunder as of the Option Price for date such leave began, and (ii) if Employee returns to active employment with the Option Shares for which Company within 12 months after the beginning of such leave, then the exercise schedule set forth above shall be reinstated (subject to the provisions of clause (i) of this sentence). This Option is being exercisednot transferable otherwise than by bequest or the laws of descent and distribution. Payment to This Option may be exercised only while Employee remains an employee of the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period and will terminate and cease to be exercisable upon Employee's termination of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by employment with the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange.except that:

Exercise of Option. In order The Option shall be exercised by Tenant only in the following manner: (i) Tenant shall not be in default beyond all applicable notice and cure periods of any of its monetary obligations or material non-monetary obligations on the delivery date of the Interest Notice and Tenant’s Acceptance; (ii) Tenant shall deliver written notice (“Interest Notice”) to Landlord not more than fifteen (15) months nor less than nine (9) months prior to the expiration of the Term, stating that Tenant is interested in exercising the Option; (iii) within fifteen (15) business days of Landlord’s receipt of Tenant’s written notice, Landlord shall deliver notice (“Option Rent Notice”) to Tenant setting forth Landlord’s proposed Option Rent; and (iv) Tenant shall provide Landlord written notice within fifteen (15) business days after receipt of the Option Rent Notice (“Tenant’s Acceptance”) stating whether or not it elects to exercise the Option and upon, and concurrent with delivery of such Tenant’s Acceptance notice, Tenant shall state whether it accepts or objects to the Option Rent contained in the Option Rent Notice. Tenant’s failure to deliver the Interest Notice or Tenant’s Acceptance on or before the date specified above shall be deemed to constitute Tenant’s election not to exercise the Option. If Tenant timely and properly exercises its Option, then the Term shall be extended for the Option Term upon all of the terms and conditions set forth in this Lease, except that the rent for the Option Term shall be as indicated in the Option Rent Notice if Tenant accepted the same concurrently with Tenant’s Acceptance, otherwise the parties shall follow the procedure and the Option Rent shall be determined, as set forth in Section 31(d) below. If Tenant provides the Interest Notice but informs Landlord within fifteen (15) business days after receipt of the Option Rent Notice that it does not elect to exercise the Option, the Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, then Tenant’s Interest Notice shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, rescinded and a share certificate dispatched to the Option Holder within 30 days. The Company Tenant shall not be required deemed to issue fractional Shares upon the exercise of the have exercised its Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange.

Exercise of Option. In order Subject to exercise the Optionlimitations set forth herein and in the Plan, the this Option Holder shall submit may be exercised by notice provided to the Company an instrument as set forth in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), Section 5. The payment of the Option Exercise Price for the Option Shares for which Common Stock being purchased pursuant to the Option is being exercised. Payment shall be made (a) in cash, by check or cash equivalent, (b) by tender to the Company in cash Company, or Shares already attestation to the ownership, of Common Stock owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and Optionee having a total Fair Market Value (as defined belowdetermined by the Company without regard to any restrictions on transferability applicable to such Common Stock by reason of federal or state securities laws or agreements with an underwriter for the Company) equal not less than the Exercise Price, (c) by delivery of a properly executed notice together with irrevocable instructions to a broker providing for the assignment to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in proceeds of a Share would be deliverable sale or loan with respect to some or all of the shares being acquired upon the exercise of the Option in whole or in part but for (including, without limitation, through an exercise complying with the provisions of this paragraphRegulation T as promulgated from time to time by the Board of Governors of the Federal Reserve System), (d) by such other consideration as may be approved by the Board from time to time to the extent permitted by applicable law, or (e) by any combination thereof. Such notice shall be accompanied by cash or Common Stock in the full amount of all federal and state withholding or other employment taxes applicable to the taxable income of such Optionee resulting from such exercise (or instructions to satisfy such withholding obligation by withholding Option Shares in accordance with Section 8). If the Optionee desires to pay the purchase price for the Option Shares by tendering Common Stock using the method of attestation, the CompanyOptionee may, subject to any such conditions and in compliance with any such procedures as the Committee may adopt, do so by attesting to the ownership of Common Stock of the requisite value, in lieu which case the Company shall issue or otherwise deliver to the Optionee upon such exercise a number of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount Option Shares equal to their the result obtained by dividing (a) the excess of the aggregate Fair Market Value of the total number shares of Common Stock subject to the Option for which the Option (or if any Shares are not publicly traded, an amount equal portion thereof) is being exercised over the purchase price payable in respect of such exercise by (b) the Fair Market Value per share of Common Stock subject to the book value per share at Option, and the end Optionee may retain the shares of Common Stock the most recent fiscal quarter) multiplied by the fraction ownership of the fractional share which would otherwise have been issued hereunderis attested. Anything Notwithstanding anything to the contrary herein notwithstandingcontained herein, the Optionee agrees that he will not exercise the Option granted pursuant hereto, and the Company shall will not be obligated to issue any Option Shares hereunder pursuant to this Option Agreement, if the exercise of the Option or the issuance of such Option Shares shares would violate constitute a violation by the Optionee or by the Company of any provision of any applicable lawlaw or regulation of any governmental authority or any stock exchange or transaction quotation system. The Optionee agrees that, in which event unless the options and shares covered by the Plan have been registered pursuant to the Securities Act of 1933, as amended, the Company shallmay, at its election, require the Optionee to give a representation in writing in form and substance satisfactory to the Company to the effect that he is acquiring such shares for his own account for investment and not with a view to, or for sale in connection with, the distribution of such shares or any part thereof. If any law or regulation requires the Company to take any action with respect to the shares specified in such notice, the time for delivery thereof, which would otherwise be as soon promptly as reasonably practicable, shall be postponed for the period of time necessary to take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeaction.

Exercise of Option. In order to exercise The Options shall be exercised in the Option, the Option Holder following manner: Optionee or Optionee's estate shall submit deliver to the Company an instrument in writing signed by the Option Holder, written notice specifying the whole number of Option Shares in respect shares which he elects to purchase and a date, not more than ten (10) business days after the date of such notice, upon which the Option is being exercised, accompanied by payment, in a manner acceptable such shares shall be purchased and payment therefor shall be made. Upon delivery to the Company on such date of (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment i) cash or certified or bank cashier's check payable to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period order of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched or (ii) shares of Common Stock, or (iii) the irrevocable direction of Optionee to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraphwithhold Common Stock from those exercised, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value the product of the number of shares specified in such notice and the exercise price, together with payment, by (i) cash or certified or bank cashier's check payable to the order of the Company, (ii) or shares of Common Stock, or (iii) the irrevocable direction of Optionee to withhold Common Stock from those exercised, or (iv) by such other method as shall be acceptable to the Company, of such amount, if any, as the Company deems necessary to satisfy its liability to withhold federal, state or local income or other taxes incurred by reason of the exercise or the transfer of shares thereupon, the shares so purchased shall thereupon be promptly delivered to Optionee or Optionee's estate. Provided, however, that if any Shares are not publicly traded, an amount equal securities or other law or regulation of any commission or agency of competent jurisdiction shall require the Company or the exercising Optionee to take any action with respect to the book value per share at the end of the most recent fiscal quarter) multiplied shares acquired by the fraction exercise of an Option, then the fractional share date upon which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not issue or cause to be obligated issued the certificate or certificates for the shares shall be postponed until full compliance has been made with all such requirements of law or regulation; provided that Optionee shall use Optionee's best efforts to issue take all necessary action to comply with such requirements of law or regulation. Neither Optionee nor Optionee's estate will be deemed to be a holder of any Option Shares hereunder if shares pursuant to exercise of the Options until the date of the issuance of a stock certificate to him for such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeshares.

Exercise of Option. In order to exercise The option hereby granted shall be exercised by the Option, the Option Holder shall submit delivery to the Company an instrument in writing Treasurer of the Corporation or his delegate, from time to time, of written notice, signed by the Option HolderOptionee, specifying the whole number of Option Shares in respect of which shares the Option is being exercisedOptionee then desires to purchase, accompanied by paymenttogether with cash, in a manner acceptable certified check, bank draft or postal or express money order to the Company (which shall include a broker assisted exercise arrangement), order of the Option Price Corporation for an amount in United States dollars equal to the sum of: (a) the option price of such shares and (b) an amount sufficient to pay all state and federal withholding taxes (including, without limitation, FICA) with respect to the exercise (the total of (a) and (b) shall be referred to as the `Exercise Amount'). In the alternative, the Optionee may tender payment for the Option Shares for which option shares in the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period form of six months or has purchased such Shares on the open market) and shares of G-P Group Stock having a total Fair Market Value (as defined below) on the date of exercise equal to the exercise price, Exercise Amount or in a combination of cash (i) shares of G-P Group Stock and such Shares(ii) cash, certified check, bank draft or postal or express money order to the order of the Corporation in an amount in United States dollars equal to the difference between the Exercise Amount and the Fair Market Value of the tendered shares of G-P Group Stock on the date of exercise. If the written notice of exercise is mailed, the date of its receipt by the Treasurer of the Corporation or his delegate shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by considered the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the date of exercise of the Optionoption by the Optionee. If An exercise of stock options granted under this Agreement will generate compensation subject to federal and state tax withholding (including, without limitation, FICA withholding) in the calendar year of each exercise, and all such withholding taxes shall be the responsibility of the Optionee. The Committee may also authorize alternative procedures for exercising options under this Agreement. Within thirty (30) business days after any fractional interest in a Share would be deliverable upon the such exercise of the Option option in whole or in part but for by the provisions of this paragraphOptionee, the CompanyCorporation shall deliver to the Optionee a certificate or certificates representing the aggregate number of shares with respect to which such option shall be so exercised, registered in the Optionee's name. The Optionee shall not have the right, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end exercise of the most recent fiscal quarter) multiplied by option, to surrender the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstandingoption granted hereby, the Company shall not be obligated to issue or any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable lawportion thereof, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of laworder to receive shares covered by this option grant. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange7.

Exercise of Option. In order to exercise The option hereby granted shall be exercised by the Option, the Option Holder shall submit delivery to the Company an instrument in writing Treasurer of the Corporation or his delegate, from time to time, of written notice, signed by the Option HolderOptionee, specifying the whole number of Option Shares in respect of which shares the Option is being exercisedOptionee then desires to purchase, accompanied by paymenttogether with cash, in a manner acceptable certified check, bank draft or postal or express money order to the Company (which shall include a broker assisted exercise arrangement), order of the Option Price Corporation for an amount in United States dollars equal to the sum of: (a) the option price of such shares and (b) an amount sufficient to pay all state and federal withholding taxes (including, without limitation, FICA) with respect to the exercise (the total of (a) and (b) shall be referred to as the `Exercise Amount'). In the alternative, the Optionee may tender payment for the Option Shares for which option shares in the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period form of six months or has purchased such Shares on the open market) and shares of Stock having a total Fair Market Value (as defined below) on the date of exercise equal to the exercise price, Exercise Amount or in a combination of cash (i) shares of Stock and such Shares(ii) cash, certified check, bank draft or postal or express money order to the order of the Corporation in an amount in United States dollars equal to the difference between the Exercise Amount and the Fair Market Value of the tendered shares of Stock on the date of exercise. If the written notice of exercise is mailed, the date of its receipt by the Treasurer of the Corporation or his delegate shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by considered the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the date of exercise of the Optionoption by the Optionee. If An exercise of stock options granted under this Agreement will generate compensation subject to federal and state tax withholding (including, without limitation, FICA withholding) in the calendar year of each exercise, and all such withholding taxes shall be the responsibility of the Optionee. The Committee may also authorize alternative procedures for exercising options under this Agreement. Within thirty (30) business days after any fractional interest in a Share would be deliverable upon the such exercise of the Option option in whole or in part but for by the provisions of this paragraphOptionee, the CompanyCorporation shall deliver to the Optionee a certificate or certificates representing the aggregate number of shares with respect to which such option shall be so exercised, registered in the Optionee's name. The Optionee shall not have the right, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end exercise of the most recent fiscal quarter) multiplied by option, to surrender the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstandingoption granted hereby, the Company shall not be obligated to issue or any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable lawportion thereof, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of laworder to receive shares covered by this option grant. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange7.

Exercise of Option. In order to exercise the Option, the Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number Delivery and Deposit of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company Certificate(s). You (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination ---------------------------------------------------------- the case of cash and such Sharesyour death, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the your legal representative) may exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but by giving written notice to the Company on the form attached hereto as Exhibit A (the "Exercise Notice") prior to the Option Termination Date, accompanied by full payment for the provisions Optioned Shares being purchased (a) in cash or by certified or bank cashier's check payable to the order of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value the number of Optioned Shares being purchased multiplied by the Exercise Price (or if any Shares are not publicly tradedthe "Aggregate Exercise Price"), an amount (b) in shares of the Company's Common Stock (the "Tendered Shares") with a market value equal to the book Aggregate Exercise Price or (c) any combination of cash, certified or bank cashier's check or Tendered Shares having a total value per share at equal to the end Aggregate Exercise Price (such cash, check or Tendered Shares with such value being referred to as the "Exercise Consideration"). However, Tendered Shares may be surrendered as all or part of the most recent fiscal quarterExercise Consideration only if (1) multiplied the Common Stock is publicly traded over-the-counter or on a national securities exchange, (2) you shall have acquired such Tendered Shares more than six months prior to the date of exercise and, (3) if such Tendered Shares are then subject to Transfer Restrictions, only with the prior written consent of the Company as provided in Section 3(a) hereof. As a condition to such consent, the Company may require that a number of Optioned Shares acquired by you upon your exercise of the Option equal to the number of Tendered Shares surrendered upon such exercise shall be subject to the Transfer Restrictions and the Company Repurchase Option to the same extent that such Tendered Shares surrendered upon such exercise were so subject immediately prior to such surrender. Receipt by the fraction Company of the fractional share which would otherwise have been issued hereunderExercise Notice and the Exercise Consideration shall constitute the exercise of the Option or a part thereof. Anything to the contrary herein notwithstandingAs soon as reasonably practicable thereafter, the Company shall deliver or cause to be delivered to you a certificate or certificates representing the number of Optioned Shares purchased, registered in your name. If such certificate(s) represent(s) Optioned Shares with respect to which the Transfer Restrictions shall not have lapsed, such certificate(s) shall, immediately upon your receipt thereof, be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable lawdeposited by you, together with a stock power endorsed in blank, in escrow with the Company. In addition, any certificate(s) representing shares of Common Stock, or other property other than cash, distributed (including pursuant to any stock split) in respect of Optioned Shares purchased by you (a "Non-Cash Distribution") with respect to which event the Transfer Restrictions shall not have lapsed shall, immediately upon your receipt thereof, be deposited by you, together with a stock power endorsed in blank (if applicable), in escrow with the Company, and shall be subject to the Transfer Restrictions, and the Company shallRepurchase Option to the same extent as the Optioned Shares in respect of which such Non-Cash Distribution was made. All such deposited certificate(s) may have set forth thereon a legend or legends (in addition to the legend referred to in Section 8 hereof) indicating that the shares of Common Stock (or other property) represented by such certificate(s) are subject to the Transfer Restrictions and, to the extent applicable, to the Company Repurchase Option, as soon provided herein. All shares of Common Stock delivered upon the exercise of the Option as practicable, take whatever action it reasonably can so that such Option Shares may provided herein shall be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high fully paid and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangenon-assessable.

Exercise of Option. In order to exercise the Option, the Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement)Company, of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash (which shall include a broker assisted exercise arrangement) or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the CompanyCompany on the exercise date, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction frac- tion of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange.

Exercise of Option. In order Subject to exercise the Optionlimitations set forth herein and in the Plan, the this Option Holder shall submit may be exercised by notice provided to the Company an instrument as set forth in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), Section 5. The payment of the Option Exercise Price for the Option Shares for which Common Stock being purchased pursuant to the Option is being exercised. Payment shall be made (a) in cash, by check or cash equivalent, (b) by tender to the Company in cash Company, or Shares already attestation to the ownership, of Common Stock owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and Optionee having a total Fair Market Value (as defined belowdetermined by the Company without regard to any restrictions on transferability applicable to such Common Stock by reason of federal or state securities laws or agreements with an underwriter for the Company) equal not less than the Exercise Price, (c) by delivery of a properly executed notice together with irrevocable instructions to a broker providing for the assignment to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in proceeds of a Share would be deliverable sale or loan with respect to some or all of the shares being acquired upon the exercise of the Option in whole or in part but for (including, without limitation, through an exercise complying with the provisions of this paragraphRegulation T as promulgated from time to time by the Board of Governors of the Federal Reserve System), (d) by such other consideration as may be approved by the CompanyBoard from time to time to the extent permitted by applicable law, or (e) by any combination thereof. Such notice shall be accompanied by cash or Common Stock in lieu the full amount of delivering any all federal and state withholding or other employment taxes applicable to the taxable income of such fractional share thereforOptionee resulting from such exercise (or instructions to satisfy such withholding obligation by withholding Option Shares in accordance with Section 8). For the purpose of determining the amount, if any, of the purchase price satisfied by payment in Common Stock, such Common Stock shall pay a cash adjustment therefor in an amount equal to their be valued at its Fair Market Value (on the date of exercise. If the Optionee desires to pay the purchase price for the Option Shares by tendering Common Stock using the method of attestation, the Optionee may, subject to any such conditions and in compliance with any such procedures as the Committee may adopt, do so by attesting to the ownership of Common Stock of the requisite value, in which case the Company shall issue or if any otherwise deliver to the Optionee upon such exercise a number of Option Shares are not publicly traded, an amount equal to the book value result obtained by dividing (a) the excess of the aggregate Fair Market Value of the total number shares of Common Stock subject to the Option for which the Option (or portion thereof) is being exercised over the purchase price payable in respect of such exercise by (b) the Fair Market Value per share at of Common Stock subject to the end Option, and the Optionee may retain the shares of Common Stock the most recent fiscal quarter) multiplied by the fraction ownership of the fractional share which would otherwise have been issued hereunderis attested. Anything Notwithstanding anything to the contrary herein notwithstandingcontained herein, the Optionee agrees that he will not exercise the Option granted pursuant hereto, and the Company shall will not be obligated to issue any Option Shares hereunder pursuant to this Option Agreement, if the exercise of the Option or the issuance of such Option Shares shares would violate constitute a violation by the Optionee or by the Company of any provision of any applicable lawlaw or regulation of any governmental authority or any stock exchange or transaction quotation system. The Optionee agrees that, in which event unless the options and shares covered by the Plan have been registered pursuant to the Securities Act of 1933, as amended (the “Act”), the Company shallmay, at its election, require the Optionee to give a representation in writing in form and substance satisfactory to the Company to the effect that he is acquiring such shares for his own account for investment and not with a view to, or for sale in connection with, the distribution of such shares or any part thereof. If any law or regulation requires the Company to take any action with respect to the shares specified in such notice, the time for delivery thereof, which would otherwise be as soon promptly as reasonably practicable, shall be postponed for the period of time necessary to take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeaction.

Exercise of Option. In order Subject to exercise the Optionlimitations set forth herein, the this Option Holder shall submit may be exercised by written notice provided to the Company an instrument as set forth in writing signed by Section 5. Such written notice shall (a) state the Option Holder, specifying the whole number of Option Shares in shares of Common Stock with respect of to which the Option is being exercisedexercised and (b) be accompanied by a check, cash or money order payable to Lyondell Chemical Company in the full amount of the purchase price for any shares of Common Stock being acquired or, at the option of the Optionee, accompanied by paymentCommon Stock theretofore owned by such Optionee for at least six months that is equal in value to the full amount of the purchase price (or any combination of cash, check or such Common Stock). For purposes of determining the amount, if any, of the purchase price satisfied by payment in Common Stock, such Common Stock shall be valued at its Fair Market Value on the date of exercise. Any Common Stock delivered in satisfaction of all or a manner acceptable portion of the purchase price shall be appropriately endorsed for transfer and assignment to the Company. By acceptance of this Option, the Optionee agrees that he will not exercise the Option granted pursuant hereto, and that the Company will not be obligated to issue any Option Shares pursuant to this Agreement, if the exercise of the Option or the issuance of such shares would constitute a violation by the Optionee or by the Company of any provision of any law or regulation of any governmental authority or any stock exchange or transaction quotation system. Furthermore, the Optionee acknowledges that only shares of Treasury Stock may be issued upon the exercise of this Option. Notwithstanding anything to the contrary contained herein, this Option shall not be exercisable to the extent the Company does not have sufficient shares of Treasury Stock and is not permitted, under the terms of its charter documents or debt instruments, to acquire shares of Treasury Stock to satisfy its obligations hereunder. Whether or not the options and shares covered hereby have been registered pursuant to the Securities Act, the Company may, at its election, require the Optionee to give a representation in writing in form and substance satisfactory to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the effect that he is acquiring such shares for his own account for investment and not with a view to, or for sale in connection with, the distribution of such shares or any part thereof. If any law or regulation requires the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to take any action with respect to the exercise priceshares specified in such notice, or in a combination of cash and such Sharesthe time for delivery thereof, which would otherwise be as promptly as possible, shall be deemed acceptable postponed for purposes hereofthe period of time necessary to take such action. Option Shares will be issued accordingly by Notwithstanding anything to the contrary contained herein, the Company, and a share certificate dispatched acting through the Committee, hereby reserves the right to the deliver cash in lieu of Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraphIn such event, the Company, in lieu amount of delivering any such fractional share therefor, cash to be paid shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount be equal to the book value per share at the end number of the most recent fiscal quarter) multiplied by the fraction of the fractional share which Option Shares that would otherwise have been issued hereunder. Anything to delivered multiplied by the contrary herein notwithstanding, excess of the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share of a share of Common Stock on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeof exercise over $12.9125.

Exercise of Option. In order Subject to exercise the Optionlimitations set forth herein and in the Plan, the this Option Holder shall submit may be exercised by written notice provided to the Company an instrument as set forth in writing signed by Section 6. Such written notice shall (a) state the Option Holder, specifying the whole number of Option Shares in shares of Common Stock with respect of to which the Option is being exercised, (b) be accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder shares of Common Stock (provided that the Option Holder has owned such Shares for a minimum period of six months not subject to limitations on transfer) or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and Common Stock payable to Xxxxxx Geophysical Company in the full amount of the purchase price for any shares of Common Stock being acquired and (c) be accompanied by cash or Common Stock (not subject to limitations on transfer) in the full amount of federal, state and other governmental withholding tax requirements resulting from such Sharesexercise (or instructions to satisfy such withholding in accordance with Section 9); provided, however, that any shares of Common Stock delivered in payment of the option price that are or were the subject of an award under the Plan must be shares that the Participant has owned for a period of at least six months prior to the date of exercise. For the purpose of determining the amount, if any, of the purchase price satisfied by payment in Common Stock, such Common Stock shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by valued at its Fair Market Value on the Company, and a share certificate dispatched to the Option Holder within 30 daysdate of exercise. The Company shall not be required to issue fractional Shares upon Committee may, in its sole discretion, arrange for the exercise of the Optionthis Option through a broker-assisted cashless exercise program. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything Notwithstanding anything to the contrary herein notwithstandingcontained herein, the Participant agrees that he will not exercise the Option, and the Company shall will not be obligated to issue any Option Shares hereunder pursuant to this Agreement, if the exercise of the Option or the issuance of such Option Shares shares would violate constitute a violation by the Participant or by the Company of any provision of any applicable lawlaw or regulation of any governmental authority or any stock exchange or transaction quotation system. The Participant agrees that, in which event unless the options and shares covered by the Plan have been registered pursuant to the Securities Act of 1933, as amended (the “Act”), the Company shallmay, as soon as practicableat its election, require the Participant to give a representation in writing in form and substance satisfactory to the Company to the effect that he is acquiring such shares for his own account for investment and not with a view to, or for sale in connection with, the distribution of such shares or any part thereof. If any law or regulation requires the Company to take whatever any action it reasonably can so that such Option Shares may be issued without resulting with respect to the shares specified in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that daynotice, the next preceding day that time for delivery thereof, which would otherwise be as promptly as possible, shall be postponed for the Shares were traded) on the principal exchange on which the Shares are traded, as period of time necessary to take such prices are officially quoted on such exchangeaction.

Exercise of Option. In order Each Option shall be exercised by Buyer's delivery, during the respective Option Period, of written notice of exercise of each Option (the "Option Exercise Notice") to exercise Seller and Buyer's deposit into the OptionEscrow (as defined below in Section 6.1) of the sum of Twenty-Five Thousand Dollars ($25,000) (the "Option Deposit") in cash (or in the form of a wire transfer or other immediately available funds) for each Option exercised. Upon Buyer's deposit of the Option Deposit into the Escrow, the Option Holder Deposit shall submit be non-refundable, except as expressly set forth in this Agreement. The Option Deposit shall be credited to the Company an instrument in writing signed by the applicable Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value Lots Closing Amount (as defined belowbelow in Section 3.3.1) equal to at the exercise price, or applicable Option Lots Close of Escrow (as defined below in a combination of cash and such Shares, Section 6.3). The Option Exercise Notice shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to specify the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon Lots which the exercise of the Option in whole or in part but for applies and set forth the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end date of the most recent fiscal quarter) multiplied by the fraction of the fractional share closing on such Option Lots which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated sooner than ten (10) days following the date of the Option Exercise Notice and not later then thirty (30) days following the date of the Option Exercise Notice. Seller shall have the right to issue reasonably disapprove of any of the Option Shares hereunder if Lots selected from Seller's Property in the issuance Option Exercise Notice by providing Buyer with written notice of disapproval of such Option Shares would violate Lots within five (5) days of the provision date of the Option Exercise Notice. If Buyer does not receive Seller's written notice of disapproval during such five (5) day period, Seller shall be deemed to have approved of the Option Lots selected by Buyer. If Buyer does receive written notice of Seller's reasonable disapproval of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may Lots during such five (5) day period, Buyer shall have the right to select other Option Lots from Seller's Property, which must be issued without resulting reasonably approved by Seller, to replace those Option Lots disapproved by Seller. Buyer shall have the right to reasonably extend the closing date set forth in such violations the Option Exercise Notice if Seller disapproves of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeany Option Lots selected by Buyer.

Exercise of Option. In order to exercise the Option, the The Option Holder shall submit be exercised upon delivery of written notice to the Company an instrument in writing signed by setting forth the Option Holder, specifying the whole number of Option Vested Shares in with respect of to which the this Option is being exercised, accompanied and specifying a business day not more than fifteen (15) days nor less than five (5) days from the date such notice is given, for the payment of the Exercise Price against delivery of the Vested Shares being purchased. Notice shall be delivered in person or by paymentregistered mail, in a manner acceptable return receipt requested, addressed to the Company at 00000 Xxxxxx, Xxxxx 000, Xxxxxxx, Xxxxx 00000, or at such other office as the Company may designate by written notice to the Holder, and shall be deemed received on actual delivery or within three (which 3) days after the date such notice is deposited in the mail. Subject to the terms of this Option and the Plan, the Company shall include a broker assisted exercise arrangement), cause certificates for the Vested Shares so purchased to be delivered to the Holder at the principal business office of the Company on the date specified in the notice of exercise or as soon thereafter as is reasonably practicable, and in any event within ten (10) days, against payment of the full Exercise Price in cash or certified check, in form and substance satisfactory to Company; provided, however, that in lieu of cash or certified check, the Holder may to the extent permitted by applicable law, exercise this Option Price in whole or in part, by having shares of Vested Stock being purchased withheld or by delivering to the Company shares of Common Stock (in proper form for transfer and accompanied by all requisite stock transfer tax stamps or cash in lieu thereof) owned by such Holder, which in the Option aggregate have a fair market value equal to the purchase price of the Vested Shares for as to which the Option is being exercised. Payment The fair market value of the Vested Shares so withheld or the or Common Stock so delivered shall be determined as provided in the Plan as of the date immediately preceding the date on which the Option is exercised, or as may be required in order to comply with or to conform to the Company in cash requirements of any applicable laws or Shares already owned by the regulations. This Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall may be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option exercised either in whole or in part but and, if in part, from time to time in part; provided, however, that this Option may not be exercised for less than 1,000 Vested Shares (or such lesser number of Vested Shares as is covered by this Option); and, provided further, that this Option may only be exercised by the Holder for the provisions purchase of this paragraph, the Company, in lieu of delivering any such fractional share therefor, whole Vested Shares and not fractions thereof. The Vested Shares so purchased shall pay a cash adjustment therefor in an amount equal be and are deemed to their Fair Market Value (or if any Shares are not publicly traded, an amount equal be transferred to the book value per share at Holder as the end record owner of such Vested Shares as of the most recent fiscal quarter) multiplied by close of business on the fraction of the fractional share date on which would otherwise this Option shall have been issued hereunder. Anything to the contrary herein notwithstanding, the Company exercised and payment shall not be obligated to issue any Option have been made for such Vested Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeaforesaid.

Exercise of Option. In order to exercise the Optionoption pursuant to this Section 7.5(a), the Option a Qualified Holder shall submit provide written notice of exercise of the option to the Company transferring Person and to the LLC not later than fifteen (15) days following the date of the giving of the Transfer Notice, and such exercise notice shall specify whether such Qualified Holder will purchase all or less than all of its pro rata share of the Interest offered (such share being calculated as if no Class D Preferred Capital, Class B-2 Preferred Capital, Class B-1 Preferred Capital and Class B Preferred Capital were outstanding and disregarding the Sharing Percentages of the transferor and all Persons who are not Qualified Holders). If any Qualified Holder elects not to exercise his option in full, then those Qualified Holders that do exercise their options shall have the option, for an instrument in writing signed additional five (5) days following the end of the option period for all Qualified Holders, to agree to acquire the Interest that could have been acquired by the Option Holderless-than-fully exercising Qualified Holders, specifying the whole number again pro rata or in such other amounts as they may agree. Any party with an option to purchase an Interest pursuant to this Article may waive its option at any time by notice of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable such waiver to the Company (which shall include a broker assisted exercise arrangement), owner of the Option Price for the Option Shares for which the Option is being exercised. Payment Interest and to the Company in cash or Shares already owned LLC. A failure by any Qualified Holder to give notice within the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, therefor shall be deemed acceptable for purposes hereofto be a notice of non-exercise as to such proposed Transfer. Option Shares will Any portion of the Interest remaining after the Qualified Holders’ exercise or non-exercise of their foregoing rights may be issued accordingly acquired by the Company, and a share certificate dispatched LLC by giving written notice to the Option Holder transferring Person within 30 daysten (10) days following the expiration of the foregoing period(s) for exercise by the Qualified Holders. The Company Within two (2) business days following the expiration of the foregoing periods, the LLC shall give notice (the “Remaining Interest Notice”) to the Transferring Person and all Qualified Holders whether there remain any Units (but not Class D Preferred Capital, Class B-2 Preferred Capital, Class B-1 Preferred Capital or Class B Preferred Capital) not to be required acquired by Qualified Holders or the LLC pursuant to issue fractional Shares upon the exercise of the Option. If any fractional interest options described in this Section 7.5(a) (a Share would be deliverable upon the exercise of the Option “Remaining Interest”), in whole or in part but for which case the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, Section 7.5(b) shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeapply.

Exercise of Option. In order Unless options hereunder shall earlier lapse or expire pursuant to exercise the OptionArticle 4 hereof, the Option Holder shall submit this option may be exercised with respect to the Company an instrument in writing signed by the Option Holder, specifying the whole aggregate number of shares subject to this Option Shares in respect of Agreement which are vested at any time after the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), first anniversary of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes date hereof. Option Shares will be issued accordingly by To the Companyextent such options become exercisable in accordance with the foregoing, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the Participant may exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option this stock option, in whole or in part but part, from time to time. The option exercise price may be paid by Participant either in cash, or, in the event that an organized trading market in the Stock exists on the date of exercise of the option, by surrender of Stock held by Participant (provided that such shares have been owned by Participant for more than six months on the date of surrender). For the purposes of this Article 5, an "organized trading market" shall be deemed to exist on the date of exercise of the option if: (a) the Stock is listed on a national securities exchange, or (b) the Stock has been quoted on the Nasdaq Stock Market ("Nasdaq") for the provisions 15 trading days preceding the date of this paragraphexercise of the option, or (c) bid and asked quotations for the CompanyStock have been published by the National Quotation Bureau or other recognized inter-dealer quotation publication (other than Nasdaq) during 20 of the 30 trading days preceding the date of exercise of the option. In the event that an organized trading market for the Stock exists on the date of exercise of the option, in lieu of delivering any Participant shall be given credit against the option exercise price hereunder for such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount shares surrendered equal to the book value per share at the end average of the most recent fiscal quarter) multiplied by high "bid" and low "asked" price quotations on the fraction day of exercise of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstandingoption, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if there were no price quotations for such date, on the Shares were not traded on that day, the date next preceding day that the Shares were traded) on the principal exchange such date on which there were high "bid" and low "asked" price quotations for the Shares are traded, as such prices are officially quoted on such exchangeStock.

Exercise of Option. In order to exercise Exercise of the Option, the purchase rights represented by this Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by paymentmay be made, in a manner acceptable whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (which shall include a broker assisted exercise arrangement), or such other office or agency of the Option Price for the Option Shares for which the Option is being exercised. Payment Company as it may designate by notice in writing to the Company in cash or Shares already owned by registered Holder at the Option address of the Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares appearing on the open marketbooks of the Company) of a duly executed facsimile copy of the Notice of Exercise form annexed hereto as Exhibit A and having a total Fair Market Value within three (as defined below3) equal Trading Days of the date said Notice of Exercise is delivered to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and the Company shall have received payment of the aggregate Exercise Price of the shares thereby purchased by wire transfer or cashier’s check drawn on a share certificate dispatched United States bank or, if available, pursuant to the Option cashless exercise procedure specified in Section 2(c) below. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise form be required. Notwithstanding anything herein to the contrary, the Holder within 30 days. The Company shall not be required to issue fractional Shares upon physically surrender this Option to the exercise of Company until the Option. If any fractional interest in a Share would be deliverable upon the exercise Holder has purchased all of the Option Shares available hereunder and the Option has been exercised in whole or full, in part but which case, the Holder shall surrender this Option to the Company for cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered to the Company. Partial exercises of this Option resulting in purchases of a portion of the total number of Option Shares available hereunder shall have the effect of lowering the outstanding number of Option Shares purchasable hereunder in an amount equal to the applicable number of Option Shares purchased. The Holder and the Company shall maintain records showing the number of Option Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise Form within one (1) Business Day of receipt of such notice. Notwithstanding anything herein to the contrary, the maximum number of separate exercises of this Option shall be four (4). The Holder and any assignee, by acceptance of this Option, acknowledge and agree that, by reason of the provisions of this paragraph, following the Company, in lieu purchase of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end portion of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued Option Shares hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any number of Option Shares available for purchase hereunder if the issuance of such Option Shares would violate the provision of at any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares given time may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean less than the mean between the high and low selling prices per Share amount stated on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeface hereof.

Exercise of Option. In order to Delivery and Deposit of Certificate(s). You (or ----------------------------------------------------------- in the case of your death, your legal representative) may exercise the Option, the Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but by giving written notice to the Company on the form attached hereto as Exhibit A (the "Exercise Notice") prior to the Option Termination Date, accompanied by full payment for the provisions Optioned Shares being purchased (a) in cash or by certified or bank cashier's check payable to the order of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value the number of Optioned Shares being purchased multiplied by the Exercise Price (or if any Shares are not publicly tradedthe "Aggregate Exercise Price"), an amount (b) in shares of the Company's Common Stock (the "Tendered Shares") with a market value equal to the book Aggregate Exercise Price or (c) any combination of cash, certified or bank cashier's check or Tendered Shares having a total value per share at equal to the end Aggregate Exercise Price (such cash, check or Tendered Shares with such value being referred to as the "Exercise Consideration"). However, Tendered Shares may be surrendered as all or part of the most recent fiscal quarterExercise Consideration only if (1) multiplied the Common Stock is publicly traded over-the-counter or on a national securities exchange, (2) you shall have acquired such Tendered Shares more than six months prior to the date of exercise and, (3) if such Tendered Shares are then subject to Transfer Restrictions, only with the prior written consent of the Company as provided in Section 3(a) hereof. As a condition to such consent, the Company may require that a number of Optioned Shares acquired by you upon your exercise of the Option equal to the number of Tendered Shares surrendered upon such exercise shall be subject to the Transfer Restrictions to the same extent that such Tendered Shares surrendered upon such exercise were so subject immediately prior to such surrender. Receipt by the fraction Company of the fractional share which would otherwise have been issued hereunderExercise Notice and the Exercise Consideration shall constitute the exercise of the Option or a part thereof. Anything to the contrary herein notwithstandingAs soon as reasonably practicable thereafter, the Company shall deliver or cause to be delivered to you a certificate or certificates representing the number of Optioned Shares purchased, registered in your name. If such certificate(s) represent(s) Optioned Shares with respect to which the Transfer Restrictions shall not have lapsed, such certificate(s) shall, immediately upon your receipt thereof, be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable lawdeposited by you, together with a stock power endorsed in blank, in escrow with the Company. In addition, any certificate(s) representing shares of Common Stock, or other property other than cash, distributed (including pursuant to any stock split) in respect of Optioned Shares purchased by you (a "Non-Cash Distribution") with respect to which event the Company Transfer Restrictions shall not have lapsed shall, immediately upon your receipt thereof, be deposited by you, together with a stock power endorsed in blank (if applicable), in escrow with the Company, and shall be subject to the Transfer Restrictions to the same extent as soon as practicable, take whatever action it reasonably can so that the Optioned Shares in respect of which such Option Shares Non-Cash Distribution was made. All such deposited certificate(s) may be issued without resulting have set forth thereon a legend or legends (in such violations of law. For purposes addition to the legend referred to in Section 8 hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day ) indicating that the Shares were tradedshares of Common Stock (or other property) on represented by such certificate(s) are subject to the principal exchange on which Transfer Restrictions as provided herein. All shares of Common Stock delivered upon the Shares are traded, exercise of the Option as such prices are officially quoted on such exchangeprovided herein shall be fully paid and non-assessable.

Exercise of Option. In order (i) Each Optionholder shall each have the right, but not the obligation, to exercise its Option at 10:00 A.M., New York City time on September 22, 2006 or, if such day is not a Business Day, on the Optionnext succeeding Business Day (the “Exercise Date”), by paying to Sxxxxxx Capital the Settlement Amount in accordance with the following procedures and limitations. Each Optionholder shall give written notice to Sxxxxxx Capital and the other Optionholder during a period beginning on September 11, 2006 and ending on September 15, 2006 (but in no event prior to September 11, 2006) indicating whether it will purchase the Option Holder shall submit Amount pursuant to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the this Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any Any such fractional share therefor, notice shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share become irrevocable at the end of the most recent fiscal quarterBusiness Day on September 15, 2006. If no notice is received from an Optionholder by Sxxxxxx Capital during such period, Sxxxxxx Capital shall so notify such Optionholder and the other Optionholder and for two (2) multiplied Business Days after such notice is received, an Optionholder who had not given notice may give notice as provided above. An Optionholder’s failure to notify Sxxxxxx Capital that it will purchase the Option Amount in accordance with this Section 2(a) shall be deemed to be an irrevocable election by such Optionholder not to exercise its Option. Notwithstanding the fraction of foregoing, an Optionholder’s failure to notify Sxxxxxx Capital that it will purchase the fractional share which would otherwise have been issued hereunder. Anything Option Amount in accordance with this Section 2(a) or to deliver the contrary herein notwithstandingSettlement Amount on September 22, the Company 2006 shall not be obligated deemed an irrevocable election not to issue any exercise its Option Shares hereunder if to the issuance of extent (i) such Option Shares would violate failure is the provision result of any applicable lawoutbreak or escalation of hostilities, declaration by the United States of a national emergency or war, or other calamity or crisis the effect of which is such as to pose extreme difficulty for the Optionholder to timely deliver such notice or exercise its Option on the Exercise Date or a circumstance in which event the Company shallChief Financial Officer, the Treasurer and the General Counsel of an Optionholder are disabled during a period that includes September 11, 2006 and ends at the end of the Business Day on September 15, 2006 (each a “Delaying Event”) and such Optionholder delivers the Settlement Amount as soon as practicable, take whatever action it reasonably can so that but in no event later than five (5) Business Days, following the later of the onset of the Delaying Event or the availability of communication systems sufficient to permit the delivery of such Option Shares may be issued without resulting notice or (ii) (A) such failure is a result of a failure by the Federal Reserve Wire System to deliver the Settlement Amount, (B) such Optionholder delivered the appropriate wire instructions in a timely manner to effect the transfer of the Settlement Amount to Sxxxxxx Capital through the Federal Reserve Wire System prior to the Exercise Date and (C) Sxxxxxx Capital receives the Settlement Amount from such violations of law. For purposes hereofOptionholder no later than five (5) Business Days after September 22, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange2006.

Exercise of Option. In order to exercise the Option, the Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the CompanyCompany within 15 business days, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange.

Exercise of Option. In order The Renewal Option shall be exercised by Tenant, if at all, only in the following manner: (a) Tenant shall deliver written notice to Landlord (the “Interest Notice”) not more than fifteen (15) months nor less than fourteen (14) months prior to the expiration of the initial Term of the Lease stating that Tenant may be interested in exercising the Renewal Option; (b) Landlord, after receipt of Tenant’s Interest Notice, shall deliver notice (the “Option Rent Notice”) to Tenant not less than thirteen (13) months prior to the expiration of the initial Term of the Lease, setting forth Landlord’s good-faith determination of the Fair Market Rental Rate for the Option Term (which determination shall include the amount by which the Fair Market Rental Rate may be increased and the timing of any such increases during the Option Term, which increases may not occur more frequently than annually); and (c) if Tenant wishes to exercise such Renewal Option, Tenant shall, on or before the Optiondate (the “Exercise Date”) which is twelve (12) months prior to the expiration of the initial Term of the Lease, exercise the Renewal Option by delivering written notice (“Exercise Notice”) thereof to Landlord, and upon and concurrent with such exercise, Tenant may, at its option, object in a written notice delivered to Landlord (the “Objection Notice”), to the determination by Landlord of the Fair Market Rental Rate contained in the Option Rent Notice, in which case the parties shall follow the procedure and the Fair Market Rental Rate for the Option Term shall be determined as set forth in Section 4 below; provided, however, if Landlord shall have determined in the Option Rent Notice that the Fair Market Rental Rate therefor is less than the Option Floor Rent, the Option Holder Rent shall submit to the Company an instrument in writing signed by be the Option Holder, specifying Floor Rent and the whole number of Option Shares arbitration procedures set forth in respect of which the Option is being exercised, accompanied by payment, Section 4 below shall not apply. If Tenant does not timely object in a manner acceptable an Objection Notice to the Company (which shall include a broker assisted exercise arrangement), Landlord’s determination of the Option Price Fair Market Rental Rate for the Option Shares for which Term, Landlord’s determination shall be conclusive and the Option is being exercisedarbitration procedures in Section 4 below shall not be applicable with respect thereto. Payment Tenant’s failure to deliver the Company in cash Exercise Notice on or Shares already owned by before the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, Exercise Date shall be deemed acceptable for purposes hereofto constitute Tenant’s waiver of its Renewal Option. Notwithstanding the foregoing to the contrary, Tenant shall have the right to deliver the Exercise Notice to Landlord without having to deliver the Interest Notice and without regard to the foregoing time frames (which delivery of the Exercise Notice by Tenant without the requirement that Tenant also deliver an Interest Notice may also be made concurrently with Tenant’s delivery of Tenant’s Election Notice as permitted by and pursuant to Section 28.1 of the Lease), in which EXHIBIT F event (i) Landlord shall deliver to Tenant, on or before the date which is the later of thirteen (13) months prior to the expiration of the initial Term of the Lease or thirty (30) days after Landlord’s receipt of the Exercise Notice, the Option Shares will be issued accordingly by Rent Notice setting forth Landlord’s determination of the CompanyFair Market Rental Rate, and a share certificate dispatched (ii) if Tenant objects to Landlord’s determination of the Fair Market Rental Rate for the Option Holder Term, Tenant may only do so by delivering an Objection Notice to Landlord within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value ten (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter10) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance business days after Tenant’s receipt of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeRent Notice.

Exercise of Option. In order to exercise the Option, the Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), payment of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company Such payment shall be made in cash or through delivery of Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of more than six months or has purchased such Shares on the open market) and having a total an aggregate Fair Market Value (as defined belowin the Plan) on the date of exercise equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereofaggregate Option Price. Option Shares will then be issued accordingly by the CompanyCompany within fifteen business days, and a share certificate dispatched to the Option Holder within 30 thirty days. The Company shall not be required to issue a fractional Shares Share upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their the Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) a Share multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision provisions of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange.

Exercise of Option. The option shall be exercised by mailing or personally delivering written notice to the Owner 45 days prior to the “Expiration Of Option” and by additional payment, on account of the purchase price, in the amount of $ payable to the Owner or the Owner’s solicitor. Notice, if mailed, shall be by registered mail, to the Owner at the address set forth below, and shall be deemed to have been given upon the day following the day shown on the post office receipt. In the event the option is exercised, the “Original Option Money” and accumulated “Monthly Option Money Payments”, if any, (collectively referred to as the “Option Credits”), shall be credited toward the purchase price for each month full rent has been paid when due. These funds will only be credited if the option is exercised and the sale actually closes. In particular, if the option is not exercised, the tenant forfeits and the Owner retains all “Option Credits”. If the Option is exercised, the Security Deposit and interest will also be credited toward the Purchase Price. initials of acknowledgement By exercising this option, the tenant states that their obligation to purchase is unconditional. In particular, Tenant states that required financing (if any) is in place. If Tenant is not in default, he may assume existing mortgage balance as at Completion Date. The current mortgage balance is approximately: $ dollars. EXPIRATION OF OPTION: This option may be exercised at any time, and shall expire 45 days before the last day of the lease, unless exercised prior thereto. Upon expiration Owner shall be released from all obligations hereunder and all of Tenant’s rights hereunder, legal or equitable, shall cease. THE PURCHASE COMPLETION DATE OF PURCHASE: This date shall be 50 days from the date of exercise of the option or such other date as the parties may agrees on. Both parties shall be obliged to complete this purchase and sale contract pursuant to the real estate purchase contract attached as Schedule “A”. Both parties recognize that this agreement is first and foremost a residential lease and that the Tenant must not be in default under his tenant obligations in order to exercise the Option, the Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeoption.

Exercise of Option. In The option hereby granted shall be exercised by the delivery to the Corporation or its delegate, from time to time, of notice specifying the number of shares the Optionee then desires to purchase, together with cash, certified check, bank draft or postal or express money order to the order of the Corporation for an amount in United States dollars equal to the sum of: (a) the option price of such shares and (b) an amount sufficient to pay all state and federal withholding taxes (including, without limitation, FICA) with respect to the exercise (the Optiontotal of (a) and (b) shall be referred to as the "Exercise Amount"). In the alternative, the Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price Optionee may tender payment for the Option Shares for which option shares in the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period form of six months or has purchased such Shares on the open market) and shares of Timber Stock having a total Fair Market Value (as defined below) on the date of exercise equal to the exercise price, Exercise Amount or in a combination of cash (i) shares of Timber Stock and (ii) cash, certified check, bank draft or postal or express money order to the order of the Corporation in an amount in United States dollars equal to the difference between the Exercise Amount and the Fair Market Value of the tendered shares of Timber Stock on the date of exercise. If shares of Timber Stock are tendered in payment of the exercise price of options hereunder and such Sharesshares were acquired upon exercise of a stock option, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly such shares must have been held by the Company, Optionee for at least six months. Such notices shall in all cases be given in accordance with uniform procedures specified by the Corporation or its delegate and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon effective until filed and received by the Corporation or its delegate for such purposes. In each case, the date of receipt shall be considered the date of exercise of the Optionoption by the Optionee. If An exercise of stock options granted under this Agreement will generate compensation subject to federal and state tax withholding (including, without limitation, FICA withholding) in the calendar year of each exercise, and all such withholding taxes shall be the responsibility of the Optionee. The Committee may also authorize alternative procedures for exercising options under this Agreement. Within thirty (30) business days after any fractional interest in a Share would be deliverable upon the such exercise of the Option option in whole or in part but for by the provisions of this paragraphOptionee, the CompanyCorporation shall make available to the Optionee a certificate or certificates representing the aggregate number of shares with respect to which such option shall be so exercised, registered in the Optionee's name. The Optionee shall not have the right, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end exercise of the most recent fiscal quarter) multiplied by option, to surrender the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstandingoption granted hereby, the Company shall not be obligated to issue or any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable lawportion thereof, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeorder to receive shares covered by this option grant.

Exercise of Option. In order The option contained in this Exhibit “H” shall be exercised by Tenant, if at all, only in the following manner: (i) Tenant shall deliver written notice to Landlord (the “Interest Notice”) not less than 365 days prior to the expiration of the Term stating that Tenant may be interested in exercising its option; (ii) Landlord, within sixty (60) days after receipt of the Interest Notice, shall deliver to Tenant notice (the “Option Rent Notice”) setting forth Landlord’s determination of the Fair Market Rental Rate; and (iii) if Tenant wishes to exercise such option, Tenant shall, on or before the Optiondate (the “Exercise Date”) which is the 270th day prior to the expiration of the Term, exercise the option by delivering written notice (“Exercise Notice”) thereof to Landlord, which exercise shall be irrevocable and unconditional. During the period of time between the date Landlord delivers the Option Holder Rent Notice and the Exercise Date, Landlord and Tenant shall submit to discuss Landlord’s determination of the Company an instrument Fair Market Rental Rate. Concurrently with Tenant’s delivery of the Exercise Notice, if Landlord and Tenant have not already agreed in writing signed by upon the Fair Market Rental Rate, Tenant may object, in writing (within the Exercise Notice), to Landlord’s determination of the Fair Market Rental Rate set forth in the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by paymentRent Notice, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned event such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined Rental Rate shall be determined pursuant to Section 4 below) equal . Tenant’s failure to deliver the exercise price, Exercise Notice on or in a combination of cash and such Sharesbefore the Exercise Date, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by to constitute Tenant’s waiver of its option to extend under this Exhibit “H.” Tenant’s failure to timely object in writing to Landlord’s determination of the Company, and a share certificate dispatched to Fair Market Rental Rate set forth in the Option Holder within 30 days. The Company Rent Notice shall be deemed Tenant’s acceptance of Landlord’s determination of the Fair Market Rental Rate and the following provisions of Section 4 shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeapply.

Exercise of Option. In order Notice of the exercise of this Option or any portion thereof shall be given to the Company, or any other employee of the Company or an affiliate who is designated by the Company to accept such notices on its behalf, specifying the number of shares for which it is exercised; provided, that no partial exercise of this Option may be for fewer than 100 shares unless the Optionremaining shares purchasable are fewer than 100 shares. Payment of the Exercise Price shall be made in full at the time this Option is exercised. Payment shall be made (i) by certified or cashier’s check, the Option Holder shall submit (ii) by delivery and assignment to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already Common Stock owned by the Option Holder (provided Optionee that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined belowin the Company’s 2006 Stock Incentive Plan) on the first business day preceding the date this Option is exercised equal to the exercise aggregate purchase price of the Option Shares, (iii) by irrevocably authorizing a third party to sell Option Shares and remit to the Company a sufficient portion of the sale proceeds to pay the purchase price, or in (iv) by a combination of cash and such Shares(i), shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days(ii) or (iii). The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shallwill, as soon as reasonably practicable, take whatever action it reasonably can so notify the Optionee of the amount of the minimum withholding tax, if Exhibit B to Employment Agreement any, that such must be collected by the Company under federal, state and local law due to the exercise of this Option. The Optionee shall, prior to receiving the Option Shares may purchased under this Option, satisfy the amount of the withholding tax specified in the Company’s notice by (i) certified or cashier’s check, (ii) delivery and assignment to the Company of shares of Common Stock previously owned by the Optionee having a Fair Market Value of such amount, (iii) notice to the Company of the Optionee’s election to require the Company to withhold whole Option Shares otherwise deliverable to the Optionee from the exercise of this Option, which Option Shares have a Fair Market Value of such amount, or (iv) a combination of (i), (ii) or (iii). Certificates for any shares of Common Stock delivered in satisfaction of all or a portion of the Exercise Price and the withholding tax shall be issued without resulting in such violations of lawappropriately endorsed for transfer and assignment to the Company. For purposes hereofof determining the amount, if any, of the Exercise Price satisfied by delivery of shares of Common Stock or the amount of the tax withholding satisfied by delivery of shares of Common Stock or withholding of Option Shares from the exercise of this Option, such shares shall be valued at Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately first business day preceding the date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeof exercise.

Exercise of Option. In order The Option shall be exercisable by Lessee only upon strict satisfaction on or before the Option Expiration Date of the following conditions (the “Exercise Requirements”): (a) Lessee shall notify County in writing of its exercise of the Option (“Exercise Notice”); (b) Lessee shall accompany the Exercise Notice with (i) Lessee’s execution and delivery to County of the Restated Lease with any blank or bracketed terms set forth in Exhibit A hereto completed in accordance with the terms and provisions of this Agreement; and (ii) payment of the amount, if any, by which the Security Deposit required under Article 7 of the Restated Lease exceeds the amount of the security deposit then maintained by Lessee with County pursuant to Section 7 of the Existing Lease; (c) as of the date of Lessee’s delivery of the Exercise Notice there shall not be a Lessee Default under this Agreement nor shall Lessee be in material breach or default under the Existing Lease after written notice from County and the expiration of any applicable cure period set forth in the Existing Lease; (d) the Option Conditions shall have been satisfied and there shall be no change in circumstances after the satisfaction of the Option Conditions that causes the Option Conditions to no longer continue to be satisfied; (e) Director shall have approved all plans, specifications and other materials for the Renovation Work required to be submitted to Director pursuant to Section 7.3 of this Agreement; and (f) Director and Lessee shall have agreed upon the Approved Phasing Schedule and the Phase Cost Amounts pursuant to Section 7.4 of this Agreement. With respect to the Exercise Requirements set forth in clauses (e) and (f) above, Director agrees to process Lessee’s submittals of any remaining required plans, specifications and other materials for the Renovation Work within the time periods required under Section 5.3 of the form of Restated Lease, and to exercise good faith, reasonable efforts to reach agreement with Lessee on the Approved Phasing Schedule and the Phase Cost Amounts within the time period required herein for exercise of the Option. Upon Lessee’s proper and timely exercise of the Option, County shall execute and deliver the Option Holder shall submit to Restated Lease within forty-five (45) days following the Company an instrument in writing signed by the Option Holder, specifying the whole number date of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted Lessee’s exercise arrangement), of the Option Price for Option; provided, however, at Lessee’s request County shall use its commercially reasonable efforts to execute the Option Shares for which Lease within such shorter time period as reasonably requested by Lessee to effectuate the Option is being exercisedexecution and delivery of the Lease on a concurrent basis with the closing of Lessee’s Project Financing. Payment to The Effective Date of the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value Restated Lease (as defined belowin the form of Restated Lease) equal to shall be the exercise pricedate the Restated Lease is executed and delivered by County, or which date shall be inserted into page 1 of the Restated Lease concurrent with County’s execution and delivery thereof. If Lessee’s Project Financing is in a combination position to close within the above forty- five (45) day period, County agrees to cooperate with Lessee to effectuate a concurrent closing of cash the Project Financing and County’s delivery of the Restated Lease such Sharesthat the Effective Date of the Restated Lease is the same as the date of the close of Lessee’s Project Financing; provided, however, in no event shall such agreement to cooperate be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by interpreted to require County to delay the Companyexecution and delivery of the Restated Lease beyond such forty-five (45) day period; and provided, and a share certificate dispatched to the Option Holder within 30 days. The Company further, that County shall not be required to issue fractional Shares upon execute and deliver the exercise Restated Lease unless during such forty-five (45) day period the Option Conditions continue to be satisfied and Lessee’s Project Financing is in a position to close on or before the execution and delivery by County of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeRestated Lease.

Exercise of Option. In order to exercise This option may be exercised only by written notice (the Option, "Exercise Notice") by the Option Holder shall submit Optionee to the Company at its principal executive office. The Exercise Notice shall be deemed given when deposited in the U. S. mails, postage prepaid, addressed to the Company at its principal executive office, or if given other than by deposit in the U.S. mails, when delivered in person to an instrument in writing signed by executive officer of the Company at that office. The date of exercise of the Option Holder, specifying (the whole "Exercise Date") shall be the date of the postmark if the notice is mailed or the date received if the notice is delivered other than by mail. The Exercise Notice shall state the number of Option Shares shares in respect of which the Option option is being exercisedexercised and, accompanied if the shares for which the option is being exercised are to be evidenced by paymentmore than one stock certificate, the denominations in a manner acceptable which the stock certificates are to be issued. The Exercise Notice shall be signed by the Company (which Optionee and shall include a broker assisted exercise arrangement)the complete address of such person, together with such person's social security number. This option may be exercised either by tendering cash in the amount of the Option Price for or by tendering shares of Common Stock (which may include shares previously acquired upon exercise of options granted under the Plan). The Exercise Notice shall be accompanied by payment of the aggregate Option Price of the shares purchased by cash or check payable to the order of the Company or by delivery of shares of Common Stock owned by the Optionee, in form satisfactory to the Company, tendered in full or partial payment of the Option Shares for which Price. If shares of Common Stock are used to pay part or all of the Option Price, the value of such shares for purposes of exercising this option shall be the Fair Market Value of the Common Stock on the Exercise Date. In addition to the foregoing, any option granted under this Agreement may be exercised by a broker-dealer acting on behalf of the Optionee if (i) the broker-dealer has received from the Optionee or the Company a fully- and duly-endorsed agreement evidencing such option, together with instructions signed by the Optionee requesting the Company to deliver the shares of Common Stock subject to such option to the broker-dealer on behalf of the Optionee and specifying the account into which such shares should be deposited, (ii) adequate provision has been made with respect to the payment of any withholding taxes due upon such exercise, and (iii) the broker-dealer and the Optionee have otherwise complied with Section 220.3(e)(4) of Regulation T, 12 CFR Part 220, or any successor provision. In addition to the foregoing, the Company agrees to make one or more loans to Optionee to purchase shares of Common Stock underlying the Option granted hereunder, subject to the terms and provisions of applicable laws, including, without limitation, Regulation G promulgated by the Federal Reserve Board and the Delaware General Corporation Law. The loan(s) shall be (i) for a period not to exceed six (6) months, (ii) interest free, (iii) secured by the shares of Common Stock issued upon exercise and (iv) evidenced by a mutually satisfactory promissory note. The principal amount of any such loans shall be equal to (a) the Option Price multiplied by the number of shares of Common Stock being acquired upon exercise of the Option plus (b) withholding tax less (c) the par value of the shares, which par value must be paid by Optionee in cash at the time of exercise. The certificates for shares of Common Stock as to which this option shall have been so exercised shall be registered in the name of the Optionee and shall be delivered to the Optionee at the address specified in the Exercise Notice. In the case of the exercise of the option by an Optionee who is being exercised. Payment employed by the Company or a Subsidiary on the Exercise Date, the Optionee in exercising such option shall make payment or other arrangements (including, but not limited to, requesting that the Company withhold shares of Common Stock that were to be issued to the Optionee upon such exercise) satisfactory to the Company in cash or Shares already owned for withholding federal and state taxes, if applicable, with respect to the shares acquired upon exercise of the option. In the case of options exercised when the Optionee is no longer employed by the Option Holder (provided that Company or a Subsidiary, such option exercise shall be valid only if accompanied by payment or other arrangement satisfactory to the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on Company with respect to the open market) Company's obligations, if any, to withhold federal and having a total Fair Market Value (as defined below) equal state taxes with respect to the exercise priceof the option. In the event the person exercising the option is a transferee of the Optionee by will or under the laws of descent and distribution, or in a combination of cash and such Shares, the Exercise Notice shall be deemed acceptable for purposes hereofaccompanied by appropriate proof of the right of such transferee to exercise this Option. Option Shares will Neither the Optionee nor any person claiming under or through the Optionee shall be issued accordingly by or have any rights or privileges of a stockholder of the Company, and a share certificate dispatched to Company in respect of any of the Option Holder within 30 days. The Company shall not be required to issue fractional Shares shares issuable upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraphoption, the Company, in lieu of delivering any unless and until certificates representing such fractional share therefor, shares shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to (as evidenced by the contrary herein notwithstanding, appropriate entry on the books of the Company shall not be obligated to issue any Option Shares hereunder if or of a duly authorized transfer agent of the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangeCompany).

Exercise of Option. In order Subject to the following terms, you may exercise the vested portions of the Option during the five (5) year period commencing on the date any such portion shall vest; provided, however, that in the event you cease to be an employee of the Company prior to three years from the date of your original employment by reason of your voluntary resignation or dismissal by the Company for cause, as such term is defined in the Employment Agreement, the Option and any rights underlying the Option, to the extent not previously exercised shall terminate upon the termination simultaneously with your employment with the Company and any shares so purchased by you shall be forfeit to the Company. If your employment with the Company terminates because of your voluntary resignation or dismissal by the Company for cause after the third anniversary of the commencement thereof, you may exercise any all or any part of the then unexercised vested portion of the Option Holder within two years of the date of termination of your employment by the Company. If you shall submit die, become disabled (as such term is defined in the Employment Agreement) or your employment is terminated by the Company without cause, you or your estate, as the case may be, may exercise any vested but unexercised portion of the Option, in whole or in part, within the lesser of (i) the time remaining for exercise of any vested but unexercised portion of the Option or (ii) two (2) years from the date of your death, disability or termination without cause, by written notice delivered to the Company an instrument Company; provided, however, that in writing signed by the event you exercise any portion of the Option Holderfor less than the entire amount of such portion, specifying you must exercise the whole Option for at least 20% of the aggregate number of Option Shares in respect shares of which the Option is being exercised, accompanied by payment, in a manner acceptable Common Stock applicable to that portion of the Company (which shall include a broker assisted exercise arrangement), Option. Payment of the Option Price for the Option Shares for which shares of Common Stock purchased upon exercise shall be made by delivery to the Option is being exercised. Payment Company of a certified or bank cashier’s check payable to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise amount of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) Price multiplied by the fraction number of shares of the fractional share which would otherwise have been issued hereunder. Anything Common Stock you intend to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangepurchase.

Exercise of Option. In order to exercise the Option, the Option Holder shall submit to the Company an instrument in writing signed by the Option Holder, specifying the whole number Delivery and Deposit of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company Certificate(s). You (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination ---------------------------------------------------------- the case of cash and such Sharesyour death, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the your legal representative) may exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but by giving written notice to the Company on the form attached hereto as Exhibit A (the "Exercise Notice") prior to the Option Termination Date, accompanied by full payment for the provisions Optioned Shares being purchased (a) in cash or by certified or bank cashier's check payable to the order of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value the number of Optioned Shares being purchased multiplied by the Exercise Price (or if any Shares are not publicly tradedthe "Aggregate Exercise Price"), an amount (b) in shares of the Company's Common Stock (the "Tendered Shares") with a market value equal to the book Aggregate Exercise Price or (c) any combination of cash, certified or bank cashier's check or Tendered Shares having a total value per share at equal to the end Aggregate Exercise Price (such cash, check or Tendered Shares with such value being referred to as the "Exercise Consideration"). However, Tendered Shares may be surrendered as all or part of the most recent fiscal quarterExercise Consideration only if(1) multiplied the Common Stock is publicly traded over-the-counter or on a national securities exchange, (2) you shall have acquired such Tendered Shares more than six months prior to the date of exercise and, (3) if such Tendered Shares are then subject to Transfer Restrictions, only with the prior written consent of the Company as provided in Section 3(a) hereof. As a condition to such consent, the Company may require that a number of Optioned Shares acquired by you upon your exercise of the Option equal to the number of Tendered Shares surrendered upon such exercise shall be subject to the Transfer Restrictions to the same extent that such Tendered Shares surrendered upon such exercise were so subject immediately prior to such surrender. Receipt by the fraction Company of the fractional share which would otherwise have been issued hereunderExercise Notice and the Exercise Consideration shall constitute the exercise of the Option or a part thereof. Anything to the contrary herein notwithstandingAs soon as reasonably practicable thereafter, the Company shall deliver or cause to be delivered to you a certificate or certificates representing the number of Optioned Shares purchased, registered in your name. If such certificate(s) represent(s) Optioned Shares with respect to which the Transfer Restrictions shall not have lapsed, such certificate(s) shall, immediately upon your receipt thereof, be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable lawdeposited by you, together with a stock power endorsed in blank, in escrow with the Company. In addition, any certificate(s) representing shares of Common Stock, or other property other than cash, distributed (including pursuant to any stock split) in respect of Optioned Shares purchased by you (a "Non-Cash Distribution") with respect to which event the Company Transfer Restrictions shall not have lapsed shall, immediately upon your receipt thereof, be deposited by you, together with a stock power endorsed in blank (if applicable), in escrow with the Company, and shall be subject to the Transfer Restrictions to the same extent as soon as practicable, take whatever action it reasonably can so that the Optioned Shares in respect of which such Option Shares Non-Cash Distribution was made. All such deposited certificate(s) may be issued without resulting have set forth thereon a legend or legends (in such violations of law. For purposes addition to the legend referred to in Section 8 hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day ) indicating that the Shares were tradedshares of Common Stock (or other property) on represented by such certificate(s) are subject to the principal exchange on which Transfer Restrictions as provided herein. All shares of Common Stock delivered upon the Shares are traded, exercise of the Option as such prices are officially quoted on such exchangeprovided herein shall be fully paid and non-assessable.

Exercise of Option. In order Unless terminated pursuant to exercise the OptionSection 7 hereof, the Option Holder shall submit may be exercised as to not more than the Company an instrument in writing signed by the Annual Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value Vesting Amount (as defined belowon Schedule A) equal to of the exercise priceaggregate number of Common Shares originally subject thereto commencing on the first Annual Vesting Date (as defined on Schedule A) following the date of grant. Thereafter, on each Annual Vesting Date and until the expiration of the term of this Agreement (unless earlier terminated or canceled as provided in a combination of cash and such Sharesthis Agreement), shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 daysmay be exercised for an additional Annual Option Vesting Amount. The Company shall not be required to issue fractional Shares upon To the exercise extent that Schedule A provides for amounts or schedules of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for vesting that conflict with the provisions of this paragraph, the Company, in lieu provisions of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal Schedule A will govern. The right to their Fair Market Value (or if any purchase Common Shares are not publicly traded, an amount equal pursuant to the book value per share Option shall be cumulative. If the full number of Common Shares available for purchase under the Option, to the extent the Option is vested, has not been purchased, the balance may be purchased at any time or from time to time thereafter, but prior to the termination of such Option. The Option shall not, however, be exercisable after the expiration thereof; and except as provided in Section 7 hereof, the Option shall not be exercisable unless the Employee is an employee of the Company at the end time of exercise. The holder of the most recent fiscal quarter) multiplied by Option shall not have any rights to dividends or any other rights of a shareholder with respect to the fraction of Common Shares subject to the fractional share which would otherwise Option until such Common Shares shall have been issued hereunderto him (as evidenced by the appropriate entry on the books of a duly authorized transfer agent of the Company), upon the purchase of such Common Shares through exercise of the Option. Anything Notwithstanding the foregoing or anything to the contrary herein notwithstandingset forth herein, upon the occurrence of a Change in Control of the Company, the Company Option shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, become vested and immediately exercisable in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of lawfull. For purposes hereofof this Agreement, Fair Market Value shall mean a “Change in Control” of the mean between Company means the high and low selling prices per Share on occurrence of one of the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange.following events:

Exercise of Option. Subject to the terms and conditions of this Agreement, the Option may be exercised by written notice to the Company at its principal office which is now located at 777 Third Avenue, New York, New York. Such notice shall state the elxxxxxx xx xxxxxxxx xxx Xxxxxx xxx xxe number of shares in respect of which it shall be exercised, and shall be signed by the person or persons so exercising the Option. In order the event that the Option shall be exercised pursuant to paragraph 7 hereof by any person or persons other than the Employee, such notice shall be accompanied by appropriate proof of the right of such person or persons to exercise the Option, the Option Holder shall submit to as may be reasonably required by the Company an instrument in writing signed by the Option Holder, specifying the whole number and its counsel. The notice of Option Shares in respect of which the Option is being exercised, exercise shall be accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), payment of the Option Price for full purchase price of the Option Shares for which the Option is shares being exercised. Payment to the Company purchased in cash or Shares already cash equivalents, in shares of Common Stock which have been owned by the Option Holder (provided that the Option Holder has owned such Shares Employee for a minimum period of at least six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise pricemonths, or in a any combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 daysthereof. The Employee shall have the right to instruct the Company shall not be required to issue fractional Shares withhold a portion of his Option shares to meet the minimum obligations for tax withholding upon the exercise of the Option. If any fractional interest In the alternative, the Employee may tender previously owned shares to the Company to satisfy such tax withholding obligation. The certificate or certificates for the shares as to which the Option shall have been so exercised shall be registered in a Share would the name of the person or persons so exercising the Option and shall be deliverable delivered, as provided above, to or upon the written order of the person or persons exercising the Option as soon as practicable (except as otherwise provided below in this paragraph 9) after the due and proper exercise of the Option. The holder of the Option in whole or in part but for the provisions shall not have any rights of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal stockholder with respect to the book value per share at the end of the most recent fiscal quarter) multiplied shares covered by the fraction of Option unless and until the fractional share which would otherwise certificate or certificates for such shares shall have been issued hereunderand delivered to him or her. Anything It is expressly understood that, notwithstanding anything contained in this Agreement to the contrary herein notwithstandingcontrary, (1) the time for the delivery of the certificate or certificates of Common Stock may be postponed by the Company for such period as may be required by the Company to comply with any listing requirements of any national securities exchange or to comply with any applicable State or Federal law, and (2) the Company shall not be obligated to sell, issue or deliver any Option Shares hereunder if shares as to which the issuance option or any part thereof shall have been exercised unless such shares are at that time effectively registered or exempt from registration under the Securities Act of such Option Shares would violate the provision of any applicable law, in which event the Company shall1933, as soon amended. All shares that shall be purchased upon the exercise of the Option as practicable, take whatever action it reasonably can so that such Option Shares may provided herein shall be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high fully paid and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangenon-assessable.

Exercise of Option. In order At any time during the Option Term, as such Option Term may be extended in connection with one or both of the Extensions described in Section 4 hereof, if Optionee is not then in material default under this Agreement, Optionee may exercise the Option by timely sending Optionor a written notice of Optionee's intention to exercise the Option ("Exercise Notice"). If Optionee elects to exercise the Option, Optionee shall use commercially reasonable efforts to send the Option Holder shall submit Exercise Notice at least sixty (60) days prior to the Company an instrument in writing signed by the Option Holder, specifying the whole number of Option Shares in respect of which the Option is being exercised, accompanied by payment, in a manner acceptable to the Company (which shall include a broker assisted exercise arrangement), of the Option Price for the Option Shares for which the Option is being exercised. Payment to the Company in cash or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything Option Term, but Optionee's failure to the contrary herein notwithstanding, the Company do so shall not be obligated deemed a default by Optionee under this Agreement; notwithstanding the foregoing, Optionee's failure to issue either: (A) send the Exercise Notice to Optionor at least fifty (50) days prior to the end of the Option Term, or (B) exercise the applicable Extension and pay the applicable Extension Payment on or before the date that is thirty (30) days prior to the then current Option Termination Date, then Optionee shall be deemed to be in default under this Agreement. Within ten (10) business days of Optionor's receipt of the Option Notice, Optionor shall deliver to Optionee a draft of the Purchase and Sale Agreement, containing all of the material terms and conditions set forth in Exhibit B attached hereto; and such other terms, conditions, covenants, representations and warranties as are mutually acceptable to Optionor and Optionee (the "Purchase and Sale Agreement"); among other things, the Purchase and Sale Agreement shall provide that the purchase and sale transaction contemplated therein will close within thirty (30) days of the expiration of the Option Term. Optionee acknowledges and agrees that, in the Purchase and Sale Agreement, Optionor will expressly NOT be making any representations or warranties relating to the condition, repair, value, or fitness for a particular purpose of the Property, the Assets, or the Permits, the quantity or quality of the resources or reserves located on the Property, any royalty obligations associated with the Property, types or marketability of products that might be produced using the resources or reserves located at the Property, the potential for Optionee to be able to operate a successful business, or any similar representations or warranties. As a consequence, Optionee expressly acknowledges and agrees that, in the event Optionee acquires the Property, the Assets, and the Permits, insofar as such Permits are transferable, such acquisition shall be on an 'As-is,' 'Where-is,' 'With-all-faults' basis, with Optionee making its decision to purchase or not purchase solely based upon Optionee's Due Diligence investigations. Optionor and Optionee shall use their best efforts and collaborate in good faith to negotiate the full terms of the Purchase and Sale Agreement, which Purchase and Sale Agreement must be executed not later than the Option Shares hereunder if Termination Date, except that, in the issuance event one or both of such the Extensions become effective, the Option Shares would violate Termination Date shall be extended by the provision length of the applicable Extension(s). If Optionee does not timely exercise the Option in the manner described herein on or before the Option Termination Date, or in the event that the Purchase and Sale Agreement is not executed by both parties hereto by the Option Termination Date (except that the Option Termination Date may be extended by the length of any applicable lawproperly exercised Extension(s)), in which event then Optionor shall have the Company shallright to terminate this Agreement and retain the Option Payment and any Extension Payment(s) which, as soon as practicabledescribed herein, take whatever action it reasonably can so are deemed to be fully earned by Optionor upon delivery, and are non-refundable, except upon the occurrence of an Optionor Default or in accordance with Section 8 below. Thereafter, neither party shall have any further obligations hereunder except for those that such Option Shares may be issued without resulting in such violations expressly survive termination of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchangethis Agreement.

Exercise of Option. In order Subject to exercise the OptionPlan and this Agreement, the Option Holder shall submit to vest and be exercisable as follows: EXERCISE PERIOD Number of Shares Commencement Date Expiration Date 30% of the total Option Shares 1st Anniversary of Grant Date Five Years from Grant Date An additional 30% of the total Option Shares 2nd Anniversary of Grant Date Five Years from Grant Date An additional 20% of the total Option Shares 3rd Anniversary of Grant Date Five Years from Grant Date Remaining 20% of the Option Shares 4th Anniversary of Grant Date Five Years from Grant Date The Optionee must be employed by the Company an instrument at all times from the Grant Date through the applicable annual vesting date set forth above in writing signed order to vest in the tranche of Option Shares vesting on such date. Upon a termination of the Optionee’s employment with the Company for any reason or no reason, all vesting of the Option shall cease. The foregoing notwithstanding, if the Optionee’s employment with the Company terminates by virtue of the Optionee’s (i) termination by the Company without Cause; (ii) voluntary resignation for Good Reason; (iii) death; or (iv) Disability (a termination of employment for any of the reasons set forth in the immediately preceding subsections (i) through (iv) to be referred to herein as a “Qualifying Termination”), then the vesting of the Option Holder, specifying shall be accelerated as of the whole date of the Qualifying Termination by that number of Option Shares that would have otherwise vested on the next succeeding annual vesting date, as if the Optionee continued to be employed through such date. Notwithstanding the foregoing, if the Optionee’s services are terminated by the Company without Cause or as the result of the Optionee’s voluntary resignation for Good Reason, in respect either instance at any time within the three (3) month period immediately preceding, or the twelve (12) month period immediately following, a Change in Control, one hundred percent (100%) of the Option Shares that are (or were) otherwise unvested Shares as of the date the Optionee’s employment terminates shall thereafter become vested Shares. For purposes of this Agreement, a “Change in Control” shall be deemed to occur on the earliest of (a) the purchase or other acquisition of outstanding shares of the Company’s capital stock by any entity, person or group of beneficial ownership, as that term is defined in rule 13d-3 under the Securities Exchange Act of 1934 (other than the Company or one of its subsidiaries or employee benefit plans), in one or more transactions, such that the holder, as a result of such acquisition, then owns more than 50% of the outstanding capital stock of the Company entitled to vote for the election of directions (“Voting Stock”); (b) the completion by any entity, person, or group (other than the Company or one of its subsidiaries or employee benefit plans) of a tender offer or an exchange offer for more than 50% of the outstanding Voting Stock of the Company; and (c) the effective time of (1) a merger or consolidation of the Company with one or more corporations as a result of which the Option is being exercised, accompanied by payment, in a manner acceptable to holders of the outstanding Voting Stock of the Company (which shall include a broker assisted exercise arrangement), immediately prior to such merger or consolidation hold less than 50% of the Option Price for Voting Stock of the Option Shares for surviving or resulting corporation immediately after such merger or consolidation, or (2) a transfer of all or substantially all of the property or assets of the Company other than to an entity of which the Option is being exercised. Payment to Company owns at least 80% of the Voting Stock, or (3) the approval by the stockholders of the Company in cash of a liquidation or Shares already owned by the Option Holder (provided that the Option Holder has owned such Shares for a minimum period dissolution of six months or has purchased such Shares on the open market) and having a total Fair Market Value (as defined below) equal to the exercise price, or in a combination of cash and such Shares, shall be deemed acceptable for purposes hereof. Option Shares will be issued accordingly by the Company, and a share certificate dispatched to the Option Holder within 30 days. The Company shall not be required to issue fractional Shares upon the exercise of the Option. If any fractional interest in a Share would be deliverable upon the exercise of the Option in whole or in part but for the provisions of this paragraph, the Company, in lieu of delivering any such fractional share therefor, shall pay a cash adjustment therefor in an amount equal to their Fair Market Value (or if any Shares are not publicly traded, an amount equal to the book value per share at the end of the most recent fiscal quarter) multiplied by the fraction of the fractional share which would otherwise have been issued hereunder. Anything to the contrary herein notwithstanding, the Company shall not be obligated to issue any Option Shares hereunder if the issuance of such Option Shares would violate the provision of any applicable law, in which event the Company shall, as soon as practicable, take whatever action it reasonably can so that such Option Shares may be issued without resulting in such violations of law. For purposes hereof, Fair Market Value shall mean the mean between the high and low selling prices per Share on the immediately preceding date (or, if the Shares were not traded on that day, the next preceding day that the Shares were traded) on the principal exchange on which the Shares are traded, as such prices are officially quoted on such exchange.